[Majorityrights News] Alex Navalny, born 4th June, 1976; died at Yamalo-Nenets penitentiary 16th February, 2024 Posted by Guessedworker on Friday, 16 February 2024 23:43.
[Majorityrights Central] A couple of exchanges on the nature and meaning of Christianity’s origin Posted by Guessedworker on Tuesday, 25 July 2023 22:19.
[Majorityrights News] Is the Ukrainian counter-offensive for Bakhmut the counter-offensive for Ukraine? Posted by Guessedworker on Thursday, 18 May 2023 18:55.
Blackstone Group CEO Steve Schwarzman nterviewed on Fox Business Network, 27 Apr 2018. Photo: Richard Drew/AP
TWO BRAZILIAN FIRMS owned by a top donor to President Donald Trump and Senate Majority Leader Mitch McConnell are significantly responsible for the ongoing destruction of the Amazon rainforest, carnage that has developed into raging fires that have captivated global attention.
The companies have wrested control of land, deforested it, and helped build a controversial highway to their new terminal in the one-time jungle, all to facilitate the cultivation and export of grain and soybeans. The shipping terminal at Miritituba, deep in the Amazon in the Brazilian state of Pará, allows growers to load soybeans on barges, which will then sail to a larger port before the cargo is shipped around the world.
The Amazon terminal is run by Hidrovias do Brasil, a company that is owned in large part by Blackstone, a major U.S. investment firm. Another Blackstone company, Pátria Investimentos, owns more than 50 percent of Hidrovias, while Blackstone itself directly owns an additional roughly 10 percent stake. Blackstone co-founder and CEO Stephen Schwarzman is a close ally of Trump and has donated millions of dollars to McConnell in recent years.
“Blackstone is committed to responsible environmental stewardship,” the company said in a statement. “This focus and dedication is embedded in every investment decision we make and guides how we conduct ourselves as operators. In this instance, while we do not have operating control, we know the company has made a significant reduction in overall carbon emissions through lower congestion and allowed the more efficient flow of agricultural goods by Brazilian farmers.”
Map: Soohee Cho/The Intercept
The port and the highway have been deeply controversial in Brazil, and were subjects of a 2016 investigation by The Intercept Brasil. Hidrovias announced in early 2016 that it would soon begin exporting soybeans trucked from the state of Mato Grosso along the B.R.-163 highway. The road was largely unpaved at the time, but the company said it planned to continue improving and developing it. In the spring of 2019, the government of Jair Bolsonaro, elected in fall 2018, announced that Hidrovias would partner in the privatization and development of hundreds of miles of the B.R.-163. Developing the roadway itself causes deforestation, but, more importantly, it helps make possible the broader transformation of the Amazon from jungle to farmland.
The roadway, B.R. 163, has had a marked effect on deforestation. After the devastation that began under the military dictatorship and accelerated through the 1970s and ’80s, the rate of deforestation slowed, as a coalition of Indigenous communities and other advocates of sustaining the forest fought back against the encroachment. The progress began turning back in 2014, as political tides shifted right and global commodity prices climbed. Deforestation began to truly spike again after the soft coup that ousted President Dilma Rousseff of the Workers’ Party in 2016. The right-wing government that seized power named soy mogul Blairo Maggi, a former governor of Mato Grosso, as minister of agriculture.
Yet even as deforestation had been slowing prior to the coup, the area around the highway was being destroyed. “Every year between 2004 and 2013 — except 2005 — while deforestation in Amazonia as a whole fell, it increased in the region around the B.R.-163,” the Financial Times reported in September 2017. That sparked pushback from Indigenous defenders of the Amazon. In March, Hidrovias admitted that its business had been slowed by increasing blockades on B.R. 163, as people put their bodies in front of the destruction. Still, the company is pushing forward. Hidrovios recently said that, thanks to heavy investment, it planned to double its grain shipping capacity to 13 million tons.
amazon-destruction-map-1-01-1566850165Map: Soohee Cho/The Intercept
The Amazon, where a record number of fires have been raging, is the world’s largest rainforest. It absorbs a significant amount of carbon dioxide, a major contributor to the climate crisis. The Amazon is so dense in vegetation that it produces something like a fifth of the world’s oxygen supply. The moisture that evaporates from the Amazon is important form farmlands not just in South America, but also in the U.S. Midwest, where it falls to the earth as rain. Protection of the Amazon, 60 percent of which is in Brazil, is crucial to the continued existence of civilization as we know it.
We are again reaching the point in the business cycle known as “peak debt,” when debts have compounded to the point that their cumulative total cannot be paid. Student debt, credit card debt, auto loans, business debt and sovereign debt are all higher than they have ever been. As economist Michael Hudson writes in his provocative 2018 book, “…and forgive them their debts,” debts that can’t be paid won’t be paid. The question, he says, is how they won’t be paid.
Mainstream economic models leave this problem to “the invisible hand of the market,” assuming trends will self-correct over time. But while the market may indeed correct, it does so at the expense of the debtors, who become progressively poorer as the rich become richer. Borrowers go bankrupt and banks foreclose on the collateral, dispossessing the debtors of their homes and their livelihoods. The houses are bought by the rich at distress prices and are rented back at inflated prices to the debtors, who are then forced into wage peonage to survive. When the banks themselves go bankrupt, the government bails them out. Thus the market corrects, but not without government intervention. That intervention just comes at the end of the cycle to rescue the creditors, whose ability to buy politicians gives them the upper hand. According to free-market apologists, this is a natural cycle akin to the weather, which dates all the way back to the birth of modern economics in ancient Greece and Rome.
Hudson counters that those classical societies are not actually where our financial system began, and that capitalism did not evolve from bartering, as its ideologues assert. Rather, it devolved from a more functional, sophisticated, egalitarian credit system that was sustained for two millennia in ancient Mesopotamia (now parts of Iraq, Turkey, Kuwait and Iran). Money, banking, accounting and modern business enterprise originated not with gold and private trade, but in the public sector of Sumer’s palaces and temples in the third century B.C. Because it involved credit issued by the local government rather than private loans of gold, bad debts could be periodically forgiven rather than compounding until they took the whole system down, a critical feature that allowed for its remarkable longevity.
The True Roots of Money and Banking
Sumer was the first civilization for which we have written records. Its notable achievements included the wheel, the lunar calendar, our numerical system, law codes, an organized hierarchy of priest-kings, copper tools and weapons, irrigation, accounting and money. It also produced the first written language, which took the form of cuneiform figures impressed on clay. These tablets were largely just accounting tools, recording the flow of food and raw materials in the temple and palace workshops, as well as IOUs (mainly to these large public institutions) that had to be preserved in writing to be enforced. This temple accounting system allowed for the coordinated flow of credit to peasant farmers from planting to harvesting, and for advances to merchants to engage in foreign trade.
In fact, it was the need to manage accounts for a large labor force under bureaucratic control that is thought to have led to the development of writing. The people willingly accepted this bureaucratic control because they viewed the gods as having decreed it. According to their cuneiform writings, humans were genetically engineered to work the fields and the mines after certain lower gods tasked with that hard labor rebelled.
Usury, or the charging of interest on loans, was an accepted part of the Mesopotamian credit system. Interest rates were high and remained unchanged for two millennia. But Mesopotamian scholars were well aware of the problem of “debts that can’t be paid.” Unlike in today’s academic economic curriculum, Hudson writes:
Babylonian scribal students were trained already c. 2000 BC in the mathematics of compound interest. Their school exercises asked them to calculate how long it took a debt at interest of 1/60th per month to double. The answer is 60 months: five years. How long to quadruple? 10 years. How long to multiply 64 times? 30 years. It must’ve been obvious that no economy can grow in keeping with this rate of increase.
Sumerian kings solved the problem of “peak debt” by periodically declaring “clean slates,” in which agrarian debts were forgiven and debtors were released from servitude to work as tenants on their own plots of land. The land belonged to the gods under the stewardship of the temple and the palace and could not be sold, but farmers and their families maintained leaseholds to it in perpetuity by providing a share of their crops, service in the military and labor in building communal infrastructure. In this way, their homes and livelihoods were preserved, an arrangement that was mutually beneficial, since the kings needed their service.
Jewish scribes, who spent time in captivity in Babylon in the sixth century B.C, adapted these laws in the year or jubilee, which Hudson argues was added to Leviticus after the Babylonian captivity. According to Leviticus 25:8-13, a Jubilee Year was to be declared every 49 years, during which debts would be forgiven, slaves and prisoners freed and their property leaseholds restored. As in ancient Mesopotamia, property ownership remained with Yahweh and his earthly proxies. The Jubilee law effectively banned the outright sale of land, which could only be leased for up to 50 years (Leviticus 25:14-17). The Levitican Jubilee represented an advance over the Mesopotamian “clean slates,” Hudson says, in that it was codified into law rather than relying on the whim of the king. But its proclaimers lacked political power, and whether the law was ever enforced is unclear. It served as a moral rather than a legal prescription.
Ancient Greece and Rome adopted the Mesopotamian system of lending at interest, but without the safety valve of periodic “clean slates,” since the creditors were no longer the king or the temple, but private lenders. Unfettered usury resulted in debt bondage and forfeiture of properties, consolidation into large landholdings, a growing wedge between rich and poor, and the ultimate destruction of the Roman Empire.
Media tycoon and former Labour MP Robert Maxwell (father of Ghislaine Maxwell, Jeffrey Epstein’s partner in crime) was given a state funeral in Jerusalem after *accidentally* falling off his yacht – the unluckily named “Lady Ghislaine”.
Later it was revealed Maxwell Sr was a Mossad asset who used his vast network of connections and publishing platforms to run editorial interference over his purchased assets to influence enemies and friends alike, ensuring their fealty to the foreign government that had enlisted him for its espionage work.
His tabloid empire was the piss-colored propaganda organ of the interests he served, overseeing its rapid growth and tentacled reach across the globe. More ominously, he was behind the spy agency’s successful attempt to install a trapdoor in software intended for government use, allowing the Israelis a direct pipeline into a vast network of computers installed with undectable malware.
At the time of his death, the disgraced magnate was under investigation for raiding his companies’ pension funds to cover the losses incurred from his multiple and reckless takeovers, and finance a luxury lifestyle he enjoyed sharing with high profile pals like Henry Kissinger and Barbara Walters. Curiously, many of these fossilized specimens from Robert Maxwell’s roster of friends from the Reagan era would circle around Epstein, most notably Donald Trump whose Mar-a-Lago resort would later become a recruiting center for employer Epstein’s underage “massage therapists”.
Fast forward a couple of decades since the days a casino mogul was gobbling down canapés with the old guard denizens of the ‘swamp’. Notice a similar, if not identical MO in both Maxwell and Epstein’s role in procuring technology for the Israelis, who in turn sold it with undisclosed add-ons, providing an open window into its users’ databases.
Like his predecessor, Epstein had a financial stake in a startup (headed by former Israeli Defense Minister and later Prime Minister Ehud Barak) connected to Israel’s defense industry that provides infrastructure for emergency services as a call handling platform. Considering the company’s connection to military intelligence, it wouldn’t be a stretch to speculate on some of this software’s other ‘special’ features. A variation of the early technology that Maxwell was able to procure for his Israeli bosses was later sold to the Saudis, who leveraged its sophisticated tracking features to assassinate Jamal Khashoggi.
Epstein, like Maxwell, was laying the groundwork for Israeli espionage activities through his interests in companies with a political agenda concealed in products intended for international export. If true, the playboy philanthropist feted and flattered his high profile friends to ensnare them as complicit partners in what amounts to the legal definition of treason. Epstein’s covert activities have undiminished real world consequences for anyone on Israel’s international radar, especially those challenging the status quo policies in place that prioritize “The Jewish State’s” political and financial objectives over actual justice and global stability.
If you’ve ever asked yourself why Israel’s war crimes and settlement expansion go unchallenged by US lawmakers, consider the career-destroying consequences contained within those dossiers compiled by the braintrust behind Epstein’s ’suicide’.
“We’ll trade you one US Embassy in Jerusalem for 10 minutes of hidden camera footage of you . . . let’s say ‘enjoying’ a rolled up Forbes magazine”.
Were the surveillance apparatuses installed throughout Epstein’s properties merely a voyeur’s tools, or did he use them to leverage the moral failings of his former friends for purposes that might have risked exposure of more than the nether regions of wealthy pedo-punters? Considering his connections to Israeli defense industries and his own Achilles penis that required, by his own admission, “three orgasms a day”, the answer points to an unslakable addiction that dovetailed conveniently with his state-sponsored sex crimes.
Did Epstein make the same mistake of Maxwell (who had asked for nearly half a billion dollar in “loans” from his Israeli backers to relieve him of his mounting debts) believing the dirt he had in his possession would prove radioactive if released? By this time, the corpulent tycoon was nicknamed the ‘Bouncing Czech’ a reference in most part to his worsening money woes. The implication of this request, if turned down, was the exposure of Israel’s state secrets. Epstein could have also attempted to collateralize the cache of damning evidence still in his possession to secure his freedom with the same fatal consequences.
Both Maxwell and Epstein somehow evaded the electronics that linked them to the outside world at the time of their deaths, even though the latter had reportedly made an attempt on his own life while in custody. Both men, facing ruination and serious prison time gave their executioners an alibi: They had nothing to left to live for. The establishment media is already trotting out ancient, ding-a-ling conspiracy theories from obscure right wing sources (attributed to Russia, of course) to highlight the absurdity and futility of questioning the official story of Epstein’s death. Verdict: Nothing to see here.
By now, it’s a given that the parasitic and preferred daughter of the deceased tycoon, made the fateful introduction between her new boyfriend and the Israeli operatives seeking an entry level plutocrat to carry out their blackmail operations after the untimely death of his predecessor. An impoverished socialite has to survive in pricey Manhattan somehow, and that somehow was re-establishing the shady connections to the espionage underworld that had recruited Maxwell Sr.
Ghislaine’s later role as Epstein’s Chief Procurement Officer (or pimp for short) gives more credence to the rumors that she is more than just a debased, barnacle-like appendage to a billionaire, desperate to please her platonic partner by “organizing his social life”, but a fully cognizant co-conspirator in an operation aimed at strengthening Israel’s hand in all matters pertaining to its national security interests, or more accurately, its overseas criminal enterprises.
The recent raid on Epstein’s Manhattan apartment was not the result of a so-called Justice Department righting the egregious wrong it committed by letting Epstein off with a slap on the wrist after his initial conviction that allowed him to serve his sentence largely outside the minimum-security facility with an open door policy for its billionaire guest. More likely, the reversal of Epstein’s “sweetheart” deal was a joint operation between the oligarch cabal informally known as the Mega-Group, and the state security apparatuses that do their bidding.
It seems likely that this sudden pivot towards justice from a Justice Department initially spooked into inaction by the spook in his custody, was motivated by the need to remove the most damning bits among Epstein’s vast trove of physical evidence against the pervy punters who visited his island getaway for unintended photo ops with underage girls.
Perhaps his own abuse of these minors was a perk he felt entitled to, and one that would be overlooked in the service of “national security”. It’s hard for most people to differentiate between the government he actually worked for and the ruling establishment on his home turf.
It’s possible that Epstein felt his serial transgressions were merely par for the plutocracy and justified in the service of a higher calling.
The ‘Israel First’ philanthropist shared an unyielding ideological justification for his own criminality as Robert Maxwell, whom the British Home Office had considered recruiting for its own intelligence gathering in the mid 1960’s. Having determined that the well-connected, multilingual, rising star politician was strictly “Zionist”, the spy agency withdrew his candidacy.
Epstein’s real crimes had little to do with raping children, despite the overturned plea deal that came about when a federal judge ruled that prosecutors had violated the victims rights by concealing the agreement from them. The one time teflon-coated “member of intelligence” who was “above the pay grade” of a powerful District Attorney (now scandal-tainted former Labor Secretary) was ultimately (and lethally) penalized for not destroying the contents of his secret-laden safes, leaving his handlers still vulnerable to their explosive contents.
Had the doomed financier divested himself of the toxic assets still in his possession, he might still be roaming the earth today, scouring it for new specimens to populate his underage petting zoo. As a result of the Justice Department’s decision to reverse the non-prosecution deal meant to bury the most incendiary facts of the case, lower-rung punters like former governor Bill Richardson and Senator George Mitchell are being publicly named for their part in the sordid scandal. Someone has to take the fall. (Rule number one of PR crisis management: Crucify the insignificant and let them hang out to dry until the public tires of watching the slow motion spectacle of their undoing.) Meanwhile, documented and/or photographic evidence against more powerful players like Bill Clinton and Donald Trump will have already been destroyed in the pursuit of selective justice.
The fallout of Epstein’s spectacular downfall predictably miss the mark as scandals involving the rich and powerful tend to do. Much of the controversy will dissolve into a Cheetoh dust maelstrom of disinformation, disseminated on Reddit and 4Chan by incel info-warriors before shooting up a shopping mall or playground.
Subsequent reporting of the case will overlook decades of the elite-driven state craft that elevated corrupt and ruthless entities like Epstein and Trump, both ring-kissing acolytes in their youth of influential mob fixer/politcal power broker Roy Cohn – himself a serial sexual predator who similarly caught the fancy of fellow deviants Joe McCarthy and J. Edgar Hoover. Follow the money trail from Tel Aviv and you’ll discover an ancestral link between the corpse of Epstein and his ghostly godfathers waiting with his rewards in hell.
Along with the other disgraced and expendable patsies left in the wake of this ongoing scandal is Alan Dershowitz, Epstein’s octogenarian chief legal counsel and ‘wing man’ aboard the Lolita Express. The now unemployable cable news pundit will live out the remainder of his pointless life under a cloud of suspicion. Despite all the damning testimony against him, the statutory rape allegations never quite stick, but follow him around like a sneaky fart, forcing a distance between himself and the rest of humanity that will last until he is engulfed by the sulfurous fumes of his own making.
The former Harvard law professor’s lifelong service to Israel will go unrewarded – not as a result of victim testimony placing him at multiple crime scenes, but in consideration of his own inept self-defense strategy: ”I’m a scurvy rat aboard a sinking ship eating its own tail to stay alive. Pity me”! Dershowitz at this point will be lucky if he can achieve the same pay grade and social status of Lindsay Lohan. Ditto for Prince Andrew who can at least be relied on to expire slowly of gout in his time-out corner at Windsor Castle.
The moral of this story could be “Lie down with dogs and never wake up again with a prison-issued sheet around your neck”. A variation of the old “Lie down with dogs and and wake up as fish food”.
As you may recall, the timeline of the 2008 financial collapse got serious in March 2008, when the Wall Street firm of Bear Stearns started to go under due to mortgage-based securities. The New York Fed tried to bail Bear Stearns out, but it still became insolvent anyway. Then in September 2008, Lehman Brothers started to drown as well. Thinking that the lesson of Bear Stearns was to not throw good money after bad, the authorities let Lehman go under, which then set off global panic.
Interestingly, Jeffrey Epstein may have personally initiated the dominos falling that eventuated in the collapse of Bear Stearns by asking, on April 18, 2007, for his $57 million back from a hyper-leveraged Bear Stearns hedge fund investing in mortgage-based financial gimcrackery.
Oddly, this might be one of the few actions I’ve heard about Epstein that isn’t obviously shady. He probably got the $57 million in the first place in a crooked manner, but he had the right to try to retrieve what was left of his money.
From the New York Times financial section in 2007:
It was just about a year ago that Jeffrey Epstein, the reclusive financier, was being charged with soliciting prostitutes in Palm Beach, Fla. He may now have another image problem on his hands.
BusinessWeek reports that Mr. Epstein’s Virgin Islands-based money-management firm, Financial Trust Company, is listed in a filing with the Securities and Exchange Commission as a stakeholder in Bear Stearns‘s High-Grade Structured Credit Strategies Enhanced Leverage Fund, which became much easier to refer to in recent weeks as “Bear Stearns’ collapsing hedge fund.”
It is a tantalizing nugget of information about someone who rarely discloses anything about his business or his billionaire clients. Despite his penchant for privacy, Mr. Epstein runs in prominent circles: he once flew former President Bill Clinton on his 727.
Regulatory filings show that Mr. Epstein’s firm had voting power over 10 percent of the equity in the Bear Stearns fund, which, aided by loans from some of Wall Street’s biggest banks, bet heavily on the securities linked to the market for subprime mortgages, or those to homeowners with weak credit histories.
As the subprime mortgage market has been rocked by a rise in defaults, many of those bets have gone bad. As of the end of April, the Bear fund was down 23 percent for the year.
Mr. Epstein did not respond to BusinessWeek’s calls, and his lawyer had no comment.
We now know that Epstein had invested $57 million in this Bear Stearns fund run by Ralph Cioffi and Matthew Tannin, two of very few Wall Street executives ever put on criminal trial over The Crash. (They beat the rap.)
After 40 months of positive returns, the sudden and sharp decline in the two hedge funds was new territory for Cioffi and Tannin. They struggled mightily to figure out what to do. On April 18, one of Cioffi’s investors, who had $57 million invested, informed him that he was considering redeeming his money.
The unnamed investor wanting his money back was very likely Jeffrey Epstein.
Cioffi told the investor that the portfolio managers had $8 million of their own money invested, one-third of their liquid net worth. He neglected to tell the investor that he had taken $2 million of his own money out and invested it in his other hedge fund. …
Epstein appears to have been one day ahead of Cioffi and Tannin in figuring out the end was nigh:
[Tannin] went on to wonder whether the funds should be closed or significantly restructured. The argument for closing the funds was based on the market and on a complex internal April 19, CDO report, which was a new analysis that Tannin had recently perused. “If we believe the [new CDO report] is ANYWHERE CLOSE to accurate, I think we should close the funds now. The reason for this is that if [the CDO report] is correct, then the entire subprime market is toast,” wrote Tannin. “If AAA bonds are systematically downgraded, then there is simply no way for us to make money – ever.”
Wikipedia now synthesizes the bits and pieces that have appeared here and there over the years:
In August 2006, Epstein, a month after the federal investigation of him began,[56] invested $57 million in the Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage hedge fund.[55][59] This fund was highly leveraged in mortgage-backed collateralized debt obligations (CDOs).[59] On April 18, 2007, an investor in the fund, who had $57 million invested, discussed redeeming his investment.[60] At this time, the fund had a leverage ratio of 17:1, which meant for every dollar invested there were seventeen dollars of borrowed funds; therefore, the redemption of this investment would have been equivalent to removing $1 billion from the thinly traded CDO market.[61] The selling of CDO assets to meet the redemptions that month began a repricing process and general freeze in the CDO market. The repricing of the CDO assets caused the collapse of the fund three months later in July, and the eventual collapse of Bear Stearns in March 2008. It is likely Epstein lost most of this investment, but it is not known how much was his.[60][59]
By the time that the Bear Stearns fund began to fail in May 2007, Epstein had begun to negotiate a plea deal with the U.S. Attorney’s Office concerning imminent charges for sex with minors.[55][56] In August 2007, a month after the fund collapsed, the U.S. attorney in Miami, Alexander Acosta, entered into direct discussions about the plea agreement.[56] Acosta brokered a lenient deal, according to him, because he had been ordered by higher government officials, who told him that Epstein was an individual of importance to the government.[40] As part of the negotiations, according to the Miami Herald, Epstein provided “unspecified information” to the Florida federal prosecutors for a more lenient sentence and was supposedly an unnamed key witness for the New York federal prosecutors in their unsuccessful June 2008 criminal case against the two managers of the failed Bear Stearns hedge fund. Alan Dershowitz, one of Epstein’s Florida attorneys on the case, told FOX Business “We would have been touting that if he had [cooperated]. The idea that Epstein helped in any prosecution is news to me.”[55][6][62]
When the Federal Reserve cut interest rates last week, commentators were asking why. According to official data, the economy was rebounding, unemployment was below 4% and gross domestic product growth was above 3%. If anything, by the Fed’s own reasoning, it should have been raising rates.
Market pundits explained that we’re in a trade war and a currency war. Other central banks were cutting their rates, and the Fed had to follow suit in order to prevent the dollar from becoming overvalued relative to other currencies. The theory is that a cheaper dollar will make American products more attractive in foreign markets, helping our manufacturing and labor bases.
Over the weekend, President Trump followed the rate cuts by threatening to impose, on Sept. 1, a new 10% tariff on $300 billion worth of Chinese products. China responded by suspending imports of U.S. agricultural products by state-owned companies and letting the value of the yuan drop. On Monday, the Dow Jones Industrial Average dropped nearly 770 points, its worst day in 2019. The war was on.
The problem with a currency war is that it is a war without winners. This was demonstrated in the beggar-thy-neighbor policies of the 1930s, which only deepened the Great Depression. As economist Michael Hudson observed in a June interview with journalist Bonnie Faulkner, making American products cheaper abroad will do little for the American economy, because we no longer have a competitive manufacturing base or products to sell. Today’s workers are largely in the service industries—cab drivers, hospital workers, insurance agents and the like. A cheaper dollar abroad just makes consumer goods at Walmart and imported raw materials for U.S. businesses more expensive.
What is mainly devalued when a currency is devalued, Hudson says, is the price of the country’s labor and the working conditions of its laborers. The reason American workers cannot compete with foreign workers is not that the dollar is overvalued. It is due to their higher costs of housing, education, medical services and transportation. In competitor countries, these costs are typically subsidized by the government.
America’s chief competitor in the trade war is obviously China, which subsidizes not just worker costs but the costs of its businesses. The government owns 80% of the banks, which make loans on favorable terms to domestic businesses, especially state-owned businesses. If the businesses cannot repay the loans, neither the banks nor the businesses are typically put into bankruptcy, since that would mean losing jobs and factories. The nonperforming loans are just carried on the books or written off. No private creditors are hurt, since the creditor is the government and the loans were created on the banks’ books in the first place (following standard banking practice globally). As observed by Jeff Spross in a May 2018 Reuters article titled “Chinese Banks Are Big. Too Big?”:
Because the Chinese government owns most of the banks, and it prints the currency, it can technically keep those banks alive and lending forever. …
It may sound weird to say that China’s banks will never collapse, no matter how absurd their lending positions get. But banking systems are just about the flow of money.
Spross quoted former bank CEO Richard Vague, chair of The Governor’s Woods Foundation, who explained, “China has committed itself to a high level of growth. And growth, very simply, is contingent on financing.” Beijing will “come in and fix the profitability, fix the capital, fix the bad debt, of the state-owned banks … by any number of means that you and I would not see happen in the United States.”
TOP FINANCIER OF TRUMP AND MCCONNELL IS A DRIVING FORCE BEHIND AMAZON DEFORESTATION
Blackstone Group CEO Steve Schwarzman nterviewed on Fox Business Network, 27 Apr 2018. Photo: Richard Drew/AP
Map: Soohee Cho/The Intercept
Later it was revealed Maxwell Sr was a Mossad asset who used his vast network of connections…
Donald Trump and Chinese President Xi Jinping. (Andy Wong / AP)