When the Industrial Revolution began in Britain, in the late 1700s, there was lots of money to be made by investing in factories and mills, by opening up new markets, and by gaining control of sources of raw materials. The folks who had the most money to invest, however, were not so much in Britain but more in Holland. Holland had been the leading Western power in the 1600s, and its bankers were the leading capitalists. In pursuit of profit, Dutch capital flowed to the British stock market, and thus the Dutch funded the rise of Britain, who subsequently eclipsed Holland both economically and geopolitically.
In this way British industrialism came to be dominated by wealthy investors, and capitalism became the dominant economic system. This led to a major social transformation. Britain had been essentially an aristocratic society, dominated by landholding families. As capitalism became dominant economically, capitalists became dominant politically. Tax structures and import-export policies were gradually changed to favour investors over landowners.
It was no longer economically viable to simply maintain an estate in the countryside: one needed to develop it, turn it to more productive use. Victorian dramas are filled with stories of aristocratic families who fall on hard times, and are forced to sell off their properties. For dramatic purposes, this decline is typically attributed to a failure in some character, a weak eldest son perhaps. But in fact the decline of aristocracy was part of a larger social transformation brought on by the rise of capitalism.
The business of the capitalist is the management of capital, and this management is generally handled through the mediation of banks and brokerage houses. It should not be surprising that investment bankers came to occupy the top of the hierarchy of capitalist wealth and power. And in fact, there are a handful of banking families, including the Rothschilds and the Rockefellers, who have come to dominate economic and political affairs in the western world.
Unlike aristocrats, capitalists are not tied to a place, or to the maintenance of a place. Capital is disloyal and mobile – it flows to where the most growth can be found, as it flowed from Holland to Britain, then from Britain to the USA, and most recently from everywhere to China. Just as a copper mine might be exploited and then abandoned, so under capitalism a whole nation can be exploited and then abandoned, as we see in the rusting industrial areas of America and Britain.
This detachment from place leads to a different kind of geopolitics under capitalism, as compared to aristocracy. A king goes to war when he sees an advantage to his nation in doing so. Historians can ‘explain’ the wars of pre-capitalist days, in terms of the aggrandisement of monarchs and nations.
A capitalist stirs up a war in order to make profits, and in fact our elite banking families have financed both sides of most military conflicts since at least World War 1. Hence historians have a hard time ‘explaining’ World War 1 in terms of national motivations and objectives.
In pre-capitalist days warfare was like chess, each side trying to win. Under capitalism warfare is more like a casino, where the players battle it out as long as they can get credit for more chips, and the real winner always turns out to be the house – the bankers who finance the war and decide who will be the last man standing. Not only are wars the most profitable of all capitalist ventures, but by choosing the winners, and managing the reconstruction, the elite banking families are able, over time, to tune the geopolitical configuration to suit their own interests.
Nations and populations are but pawns in their games. Millions die in wars, infrastructures are destroyed, and while the world mourns, the bankers are counting their winnings and making plans for their postwar reconstruction investments.
From their position of power, as the financiers of governments, the banking elite have over time perfected their methods of control. Staying always behind the scenes, they pull the strings controlling the media, the political parties, the intelligence agencies, the stock markets, and the offices of government. And perhaps their greatest lever of power is their control over currencies. By means of their central-bank scam, they engineer boom and bust cycles, and they print money from nothing and then loan it at interest to governments. The power of the elite banking gang (the ‘ba
The End of Growth – Banksters vs. Capitalism
It was always inevitable, on a finite planet, that there would be a limit to economic growth. Industrialisation has enabled us to rush headlong toward that limit over the past two centuries. Production has become ever more efficient, markets have become ever more global, and finally the paradigm of perpetual growth has reached the point of diminishing returns.
Indeed, that point was actually reached by about 1970. Since then capital has not so much sought growth through increased production, but rather by extracting greater returns from relatively flat production levels. Hence globalisation, which moved production to low-waged areas, providing greater profit margins. Hence privatisation, which transfers revenue streams to investors that formerly went to national treasuries. Hence derivative and currency markets, which create the electronic illusion of economic growth, without actually producing anything in the real world.
For almost forty years, the capitalist system was kept going by these various mechanisms, none of which were productive in any real sense. And then in September 2008 this house of cards collapsed, all of a sudden, bringing the global financial system to its knees.
If one studies the collapse of civilisations, one learns that failure-to-adapt is fatal. Is our civilisation falling into that trap? We had two centuries of real growth, where the growth-dynamic of capitalism was in harmony with the reality of industrial growth. Then we had four decades of artificial growth – capitalism being sustained by a house of cards. And now, after the house of cards has collapsed, every effort is apparently being made to bring about ‘a recovery’ – of growth! It is very easy to get the impression that our civilisation is in the process of collapse, based on the failure-to-adapt principle.
Such an impression would be partly right and partly wrong. In order to understand the real situation we need to make a clear distinction between the capitalist elite and capitalism itself. Capitalism is an economic system driven by growth; the capitalist elite are the folks who have managed to gain control of the western world while capitalism has operated over the past two centuries. The capitalist system is past its sell-by date, the bankster elite are well aware of that fact – and they are adapting.
Capitalism is a vehicle that helped bring the banksters to absolute power, but they have no more loyalty to that system than they have to place, or to anything or anyone. As mentioned earlier, they think on a global scale, with nations and populations as pawns. They define what money is and they issue it, just like the banker in a game of Monopoly. They can also make up a new game with a new kind of money. They have long outgrown any need to rely on any particular economic system in order to maintain their power. Capitalism was handy in an era of rapid growth. For an era of non-growth, a different game is being prepared.
Thus, capitalism was not allowed to die a natural death. Instead it was brought down by a controlled demolition. First it was put on a life-support system, as mentioned above, with globalisation, privatisation, currency markets, etc. Then it was injected with a euthanasia death-drug, in the form of real-estate bubbles and toxic derivatives. Finally, the Bank of International Settlements in Basel – the central bank of central banks – pulled the plug on the life-support system: they declared the ‘mark-to-market rule’, which made all the risk-holding banks instantly insolvent, although it took a while for this to become apparent. Every step in this process was carefully planned and managed by the central-banking clique.
The End of Sovereignty – Restoring the Ancien Régime
Just as the financial collapse was carefully managed, so was the post-collapse scenario, with its suicidal bailout programs. National budgets were already stretched; they certainly did not have reserves available to salvage the insolvent banks. Thus the bailout commitments amounted to nothing more than the taking on of astronomical new debts by governments. In order to service the bailout commitments, the money would need to be borrowed from the same financial system that was being bailed out!
It’s not that the banks were too big to fail, rather the banksters were too powerful to fail: they made politicians an offer they couldn’t refuse. In the USA, Congress was told that without bailouts there would be martial law the next morning. In Ireland, the Ministers were told there would be financial caos and rioting in the streets. In fact, as Iceland demonstrated, the sensible way to deal with the insolvent banks was with an orderly process of receivership.
In his book, Confessions of an Economic Hit Man, John Perkins explains how the third world has been coerced over the past several decades – through pressure and trickery of various kinds – into perpetual debt bondage. By design, the debts can never be repaid. Instead, the debts must be periodically refinanced, and each round of refinancing buries the nation deeper in debt – and compels the nation to submit to even more drastic IMF diktats. With the orchestrated financial collapse, and the ‘too big to fail’ scam, the banksters have now crossed the Rubicon: the hit-man agenda is now operating here in the first world.
In the EU, the first round of nations to go down will be the so-called PIGS – Portugal, Ireland, Greece, and Spain. The fiction, that the PIGS can deal with the bailouts, is based on the assumption that the era of limitless growth will resume. As the banksters themselves know full well, that just isn’t going to happen. Eventually the PIGS will be forced to default, and then the rest of the EU will go down as well, all part of a controlled-demolition project.
When a nation succumbs to debt bondage, it ceases to be a sovereign nation, governed by some kind of internal political process. Instead it comes under the control of IMF diktats. As we have seen in the third world, and is happening now in Europe, these diktats are all about austerity and privatisation. Government functions are eliminated or privatised, and national assets are sold off. Little by little – again a controlled demolition – the nation state is dismantled. In the end, the primary functions left to government are police suppression of its own population, and the collection of taxes to be handed over to the banksters.
In fact, the dismantling of the nation state began long before the financial collapse of 2008. In the USA and Britain, it began in 1980, with Reagan and Thatcher. In Europe, it began in 1988, with the Maastricht Treaty. Globalisation accelerated the dismantling process, with the exporting of jobs and industry, privatisation programs, ‘free trade’ agreements, and the establishment of the regulation-busting World Trade Organisation (WTO). Events since 2008 have enabled the rapid acceleration of a process that was already well underway
With the collapse, the bailouts, and the total failure to pursue any kind of effective recovery program, the signals are very clear: the system will be allowed to collapse totally, thus clearing the ground for a pre-architected ‘solution’. As the nation state is being dismantled, a new regime of global governance is being established to replace it. As we can see with the WTO, IMF, World Bank, and the other pieces of the embryonic world government, the new global system will make no pretensions about popular representation or democratic process. Rule will be by means of autocratic global bureaucracies, which will take their orders, directly or indirectly, from the bankster clique.
In his book, The Globalization of Poverty, michel chossudvusky explains how globalisation, and the actions of the IMF, created massive poverty throughout the third world over the past several decades. As we can see, with the dramatic emphasis on austerity following the collapse and bailouts, this poverty-creation project has now crossed the Rubicon. In this new world system there will be no prosperous middle class. Indeed, the new regime will very much resemble the old days of royalty and serfdom (the ancien régime). The banksters are the new royal family, with the whole world as their dominion. The technocrats who run the global bureaucracies, and the mandarins who pose as politicians in the residual nations, are the privileged upper class. The rest of us, the overwhelming majority, will find ourselves in the role of impoverished serfs – if we are lucky enough to be one of the survivors of the collapse process.
The End of Liberty – The Global Police State
For the past four decades, since about 1970, we’ve been experiencing a regime-change process, from an old global system to a new global system. In the old system, first world nations were relatively democratic and prosperous, while the third world suffered under police state tyranny, mass poverty, and imperialism (exploitation by external powers). As discussed above, the transition process has been characterised by ‘crossing the Rubicon’ – the introduction of policies and practices into the first world, that were formerly limited, for the most part, to the third world.
Thus debt bondage to the IMF crossed the Rubicon, enabled by the collapse-bailout scam. In turn, mass poverty is crossing that same Rubicon, due to austerity measures imposed by the IMF, with its new bond-holding powers. Imperialism is also crossing the Rubicon, as the first world comes under the exploitative control of banksters and their bureaucracies, a power nexus that is external to all national identities. Unsurprisingly, police state tyranny is also crossing the Rubicon: the imposition of third world poverty levels requires third world methods of repression.
The anti-globalisation movement can be taken as the beginning of popular resistance to the process of regime change. Similarly, the police response to the Seattle anti-globalisation demonstrations, in November 1999, can be taken as the ‘crossing of the Rubicon’ for police state tyranny. The excessive and arbitrary violence of that response – including such things as holding people’s eyes open and spraying pepper into them – was unprecedented against non-violent demonstrators in a first world nation.
Ironically, that police response, particularly as it was so widely publicised, actually strengthened the anti-globalisation movement. As demonstrations grew in size and strength, the police response grew still more violent. A climax of sorts was reached in Genoa, in July 2001, when the levels of violence on both sides began to resemble almost a guerilla war.
In those days the anti-globalisation movement was dominating the international news pages, and opposition to globalisation was reaching massive proportions. The visible movement was only the tip of an anti-systemic iceberg. In a very real sense, general popular sentiment in the first world was beginning to take a radical turn. Movement leaders were now thinking in terms of an anti-capitalist movement. There was a political volatility in the air, a sense that, just maybe possibly, enlightened popular sentiment might succeed in shifting the course of events.
All of that changed on September 11, 2001, the day the towers came down. The anti-globalisation movement, along with globalisation itself, disappeared almost totally from public consciousness on that fateful day. Suddenly it was a whole new global scenario, a whole new media circus – with a new enemy, and a new kind of war, a war without end, a war against phantoms, a war against ‘terrorism’.
Earlier we saw how the orchestrated financial collapse of September 2008 enabled certain ongoing projects to be rapidly accelerated, such as the dismantlement of sovereignty, and the imposition of austerity. Similarly, the events of September 2001 enabled certain ongoing projects to be greatly accelerated, such as the abandonment of civil libirties and international law.
Before the towers had even come down, the ‘Patriot Act’ had already been drafted, proclaiming in no uncertain terms that the police state was here (in the USA) in force and here to stay – the bill of rights was null and void. Before long, similar ‘anti-terrorist’ legislation had been adopted throughout the first world. If any anti-systemic movement were to again raise its head in the first world (as it did, for example, recently in Greece), arbitrary police powers could be brought to bear – as much as might be necessary – to put the resistance down. No popular movement would be allowed to derail the banksters’ regime-change designs. The anti-globalisation movement had been shouting, ‘This is what real democracy looks like’. With 9/11, the banksters replied: ‘This is what real oppression looks like’.
The events of 9/11 led directly to the invasions of Iraq and Afghanistan, and in general helped create a climate where invasions of sovereign nations could be readily justified, with one excuse or another. International law was to be as thoroughly abandoned as was civil liberties. Just as all restraint was removed from domestic police interventions, so was all restraint being removed from geopolitical military interventions. Nothing was to stand in the way of the banksters’ regime-change agenda.
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