Securing Crony Capitalism
And all of the sudden, Hillary Clinton has been totally self-exposed through her latest statement about her husband, Bill Clinton: “My husband, who I’m going to put in charge of revitalising the economy, because you know he knows how to do it,” Clinton said in Fort Mitchell, Kentucky, on Sunday. “And especially in places like coal country and inner cities and other parts of our country that have really been left out.”
Which is actually a very good sign about her real intentions. Now that Bernie Sanders appears to be left behind in the race for the nomination of the Democratic party, after the fierce war against him by the establishment, she already starts to forget her "Leftist" positions and what happened under the Bill Clinton presidency.
Forget the fact that Bill Clinton brought a bloodbath in Bosnia and Yugoslavia through NATO bombings during 90s. He was a pioneer in establishing for good the bipartisan political system, completely owned by the plutocracy, by demolishing any political differences under the neoliberal doctrine.
At the end of 1992, just days after Clinton’s election as president of the US, Alan Greenspan, head of the Federal Reserve at that time, went to see the new president. The famous economist and supporter of the neoliberal economy of deregulation, warned Clinton to withdraw his campaign promises for social reform, because, as he claimed, the deficit reached a dangerously high level. Greenspan told Clinton that he should cut government spending, so that interest rates would go down and the markets would boom. He believed that markets would transform America, not politics. It was the beginning of the full deregulated market for the US and the world.
It was the start of the worship of the free market by everyone in the political spectrum. And although that in the mid 90s, Greenspan had already realized that something was wrong with the economy, politicians from all the political spectrum fiercely criticized him. He finally convinced himself that computers were increasing the productivity in novel ways, too new to be detected in the data.
After September 11, and given the great speculative bubble that was created during the previous decade, it seemed that the American economy was about to collapse. Then Greenspan took action by cutting down the interest rates several times. The goal was simple: to encourage American consumers to borrow and spend. The consumers’ desires would become the engine that would stabilize the system. It was a huge risk, because cutting the interest rates to almost zero, Greenspan released a flood of cheap money into the economy, which in the past led always to inflation and dangerous instability. But this time it didn’t happen. A huge consuming boom began, bigger than any other in history, without inflation. Everything seemed to remain stable and the system seemed that it could manage itself without any direct political control.
But ultimately, the reason for this unusual booming was the exact opposite. It happened due to the massive exercise of political power, from an elite thousand miles away. The Chinese government kept the exchange rate of the country at a low level. Therefore, the Chinese products became cheap and flooded America. And to pay for them, the US dollars flooded China. But rather than spend this money for the population, the Chinese leaders loaned them immediately back to America by buying government bonds. It was a perfect system of cheap goods and cheap money inflow in the US, all controlled by the Chinese political power. And that’s what created stability. From this, came an orgy of lending from banks to even most unreliable borrowers in the US. Although this time, the deregulated market had been stabilized thanks to the political intervention of China, the bankers wanted to make more money.
So finally, in 2008 the dream collapsed. Greenspan’s vision for a new world and Gordon Brown’s promise that there will be no more bubbles and cracks, turned out to be fantasies based on a wave of financial speculation. Speculation happened, because those who controlled the economy in America and Britain, promised to build a new kind of democracy, based on the markets, which could bring stability. But again and again, it led to the opposite, in chaos and instability around the world. And now, finally it happened in the heart of the West. But again, like in South-East Asia more than a decade ago, those who controlled the economy, triggered the political power this time, to save and protect their sovereignty. They asked from politicians to save them with money and politicians agreed. And again, just like in South-East Asia, the price paid by the citizens of the countries.
It's also remarkable that the US political system, especially after Clinton administration, has been adopted by Europe, with the transformation of the Social-democrats. A characteristic example is Greece, as the Socialist party PASOK under Kostas Simitis, implemented the neoliberal perception of the free market and the financialization of nearly every aspect of economic activity.
So, what do you think the return of Bill Clinton in a key position would mean? Add the donors of Hillary Clinton for her campaign to the myth of the "free market" and you have two words: Crony Capitalism.