How The Elite Took Over

I call it “killing the golden goose.”

David Stockman, a speaker at this year’s Irrational Economic Summit, calls it “the corruption of capitalism.”

Andrew O’Hehir, a contributor for Salon, recently interviewed Yanis Varoufakis about the story behind Greece’s financial crash. He was the prime minister during the height of the Greek crisis, elected in early 2015 in response to the Greece debt default crisis.

And in July of 2015, Varoufakis resigned after the ECB (European Central Bank) and IMF (International Monetary Fund) forced a bailout package that went against what he and his SYRIZA party had promised the Greek people.

The nearly $300 billion record bailout was designed for one purpose: to bail out the banks and financial elites. It combined the worst of free market capitalism austerity with the high taxation of social democracy.

None of the money went towards social programs or infrastructures that could’ve helped the Greek people or the economy.

Instead, it was used to pay back loans to the banks.

The taxpayers of Eurozone countries – like Germany and France – paid to bailout banks that made bad loans.

It’s not that the Greek people, governments, or businesses weren’t to blame for over borrowing and spending. But they got all of the blame and burden for it while the banks got none!

The rise of the financial sector with Alan Greenspan, who constantly goosed the economy with lower interest rates to bail it out every time it slowed down, was the start of it all – beginning with the 1987 crash, then the S&L crisis, then the tech wreck and so on.

The first political takeover happened when the financial elite convinced Bill Clinton to repeal the Glass-Steagall Act in 1994. It was passed in 1933 to prevent another debt bubble and crash like in the Roaring Twenties and the Great Depression. That was just in time to allow the financial sector to create the next great debt and financial asset bubble from 1995, forward.

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