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Financial Corruption

The men who created the economic crisis were allowed to make billions of dollars of profits and left the rest of us to deal with mass increases in unemployment and poverty, and national debts

Since the 2008 financial crisis, people are becoming more aware of the corruption within the financial system and a global movement is calling for complete economic change.

As the incredible documentary Inside Job (here) explains in unparalleled detail, how the loss of 11 billion dollars by the world’s largest insurance company, AIG, and the bankruptcy of the US investment bank Lehman Brothers triggered a domino effect of financial consequences back in 2008 which brought the entire capitalist system within a hair’s breadth of total collapse.

But, as the events leading up to the financial crisis were slowly unveiled, it became ever clearer that the crisis was caused, quite knowingly, by the bankers themselves.

In the years leading up to the economic crisis in 2008, banks increased the funding for the riskiest loans (called subprime loans), from $30 billion a year to over $600 billion a year, rigged even higher interest rates on those loans, and then, while the bankers were making billions of dollars of profits off the borrowers’ high interest repayments, they made further profits betting against their customers ever being able to pay back the loans they had just been given.

The FBI warned the government about this in reports as early as 2006, the IMF’s chief economist, Raghurum Rajan, presented a paper to the men in charge of all the world’s major banks, including the Federal Reserve, warning of the potential collapse of the system due to dangerous incentives, and journalist Allan Sloan published articles in Fortune magazine and The Washington Post in 2007 – nothing was done.

Instead, the men who created the crisis were allowed to make billions of dollars of profits before their institutions hit bankruptcy, paid themselves millions of dollars more in bonuses out of the government bailout packages, and left the rest of us to deal with mass increases in unemployment and poverty, and national debts that no amount of austerity measures will ever be able to repay (see national debt clocks here).

7 years later and, as you read this, home foreclosures are still on the increase in many US states, the Chinese stock market is teetering on the edge of its own financial meltdown (here), austerity measures are intensifying in the UK, and the European Union is not unrealistically on the verge of falling apart.

By 2016, 1% will own more wealth than all the rest of the people on planet earthOxfam recently released a report (here) that by 2016, 1% will own more wealth than all the rest of the people on planet earth. In the UK, 1% already owns more wealth than 55% of the population, and in the USA, the top 0.01% are currently worth as much as the bottom 90%.

The ever more concentrated power that forms from a profit-based financial system which puts making more money before any concerns for ordinary people, morals and ethics is leading an ever increasing number of people to call for significant systemic change.

The People’s Assembly is a coalition of major trade unions, the Green Party, socialist parties, and numerous other campaigning groups, celebrities and individualsThe People’s Assembly (here), a political initiative backed by major trade unions, the Green Party, socialist parties, and numerous other campaigning groups, celebrities and individuals, announced an upcoming anti-austerity march to beat all others.

There was a big buzz surrounding the march. More than 250,000 people from all walks of life and political persuasions took part, and filled the streets of London – but there was nothing about it on the news.

More than 250,000 people filled the streets of London on an anti-austerity march in June 2015, but there was nothing about it on the newsAfter the march, at which Russell Brand had also made a speech, Brand desperately continued brainstorming new ideas on The Trews – like demonstrating en masse for the rights of the police to have decent pay and pensions in order to get those that protect the government on the people’s side (here), or to make more videos introducing people to spiritual concepts such as the power of compassion to create change (here), but ultimately it was clear that he was now feeling directionless (here).

What the mainstream media is not reporting though, and what most people don’t realise, is that the global movement for change is happening all over the world, and it is increasing exponentially all the time.

I wrote an article (here) on these global events to show that an organised, collective, global movement is already taking place, and for the third episode of The Truth Behind Politics series (here), I created my first documentary:

The Truth Behind Capitalism critiques capitalism from the perspective of perhaps its biggest adversary, Karl Marx, but this does not mean that you need to be a marxist, socialist or communist to appreciate his perspective today.

Karl Marx himself said: “The philosophers have only interpreted the world in various ways, the point is to change it.”

In just 30 minutes, it covers the history of the central banking system, the Eurozone, the Occupy Movement, the increasing number of new coalitions forming and demonstrations taking place en masse – all over the world – concluding with recent events in Iceland and in Greece.

As people are becoming more aware of the corruption within the current economic model, they can only make an educated decision about what they feel they should do with that knowledge if they are aware of the movements and the global paradigm shift taking place all over the world today – because without such knowledge, it is easy to feel helpless like “a puny little ant” (watch this video here).

So what do you think?

Does the financial system need improving and if so, what changes should be made?

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This entry was posted on August 24, 2015 by in newspaper, posts.