Skip to main content

How the banksters took over New York in 1975


We could say that the latest film of Adam Curtis, 'HyperNormalisation', is an update of some of his previous films, which is enriched with the most recent global events and developments. The new film presents also interesting stories about some key figures in the development of cybernetics and the modern perception of non-linear politics.

A special "chapter" is dedicated to an interesting story on how the banksters managed to take over New York back in 1975. This story is very important because it is focusing on the details of the rise of a new era in which the power of the banks and the financialized markets completely dominated over the political power until today.

In 1975, New York City was on the verge of collapse. For thirty years, the politicians who run the city had borrowed more and more money from the banks to pay for its growing services and welfare. But in the early 70s, the middle classes fled from the city and the taxes they paid disappeared with them. So, the banks lent the city even more. But then, they began to worry about the size of the growing debt and whether the city would ever be able to pay it back. And then, one day in 1975, the banks just stopped.

The city held its regular meeting to issue bonds in return for the loans, overseen by the city's financial controller. The banks were supposed to turn up at 11 a.m., but it soon became clear that none of them were going to appear. The meeting was rescheduled for 2 p.m. and the banks promised they would turn up.

What happened that day in New York, marked a radical shift in power. The banks insisted that in order to protect their loans, they should be allowed to take control of the city. The city appealed to the President, but he refused to help, so a new committee was set up to manage the city's finances. Out of nine members, eight of them were bankers.

It was the start of an extraordinary experiment where the financial institutions took power away from the politicians and started to run society themselves. The city had no other option. The bankers enforced what was called "austerity" on the city, insisting that thousands of teachers, policemen and firemen were sacked.

This was a new kind of politics. The old politicians believed that crises were solved through negotiations and deals. The bankers had a completely different view. They were just the representatives of something that couldn't be negotiated with: the logic of the market. To them, there was no alternative to this system. It should run society.

Today, we witness this "logic" in its most brutal form, especially concerning the European debt crisis. The destructive financialized capitalism increases inequality, poverty, unemployment, destroys welfare state, imposes austerity. In eurozone, the ECB dictatorship imposed brutal, neoliberal measures through financial coups. The example of Ireland is quite characteristic with the first silent coup there. The example of Greece is more obvious, as the ECB dictatorship was forced to reveal its true nature through an open financial coup in 2015, when the Greek Prime Minister decided a referendum so that the Greek people should decide on whether they would accept the brutal neoliberal measures.

However, these are signs that the banking mafia starts losing control, as more and more people understand that the free market "utopia" is a fairytale.

Financialized capitalism is about to end, but it seems that the system that will replace it, will be even worse. The economic elites are working to establish the global banking-corporate Feudalism, but more and more people appear to be informed about this new reality. The battle against this dark future will be continued.

Comments

Popular posts from this blog

Donald Trump: the last symptom of a system that is about to collapse

globinfo freexchange
In another interesting interview with Chris Hedges, Richard Wolff explains why the Trump presidency is the last resort of a system that is about to collapse:
Finally, if everybody tries to save themselves (protection), we have a historical example: after the Great Depression that happened in Europe. And most people believe that it was a large part of what led to WWII after WWI, rather than a much saner collective effort. But capitalism doesn't go for collective efforts, it tends to destroy itself by its own mechanisms.
There has to be a movement from below. Otherwise, there is no counter force that can take us in another direction.
So, absent that counter force we are going to see this system spinning out of control and destroying itself in the very way its critics have for so long foreseen it well might.
When Trump announced his big tariffs on China, we saw the stock market dropped 700 points in a day. That's a sign of the anxiety, the danger, even in the min…

Austria has just returned to the Middle Ages

The Austrian government confirmed that the far-right is an emergency reserve of neoliberalism
globinfo freexchange
Haven't you yet convinced that the nationalists and the far-right are the most faithful dogs of the big capital? Then, look at what just happened in Austria. In the end, despite the mass protests in Vienna, Austrian employers will be able to introduce 12-hour working day without increasing wages. The relevant law adopted by the Parliament of the country, reports on Friday, July 6.



What's the first thing that Emmanuel Macron did after his election in France? He rushed to complete what Francois Hollande - the other puppet of the neoliberal establishment - had started: destroy trade unions, completely deregulate the labor market.
Yet, the media in France were promoting him as a 'progressive' (what a joke) who will stop the far-right threat.
In reality, big capital’s reserve, Marine Le Pen, is waiting in the 'bench', ready to take action any moment, now tha…

The idiotic circus of terror leads us to the final collapse

There is a familiar checklist for extinction and we are ticking off every item of it. The idiots know only one word: more. They are unencumbered by common sense. They hoard wealth and resources until workers cannot make a living and the infrastructure collapses. They live in privileged compounds where they eat chocolate cake and order missile strikes. They see the state as a projection of their own vanity.

failed evolution
The idiots seen in the decay the chance of personal advancement in profit, takeover in the final days of crumbling civilizations.

Idiot generals wage endless unwinnable wars that bankrupt the nation.
Idiot economists call for reducing taxes for the rich and cutting social service programs for the poor. And project economic growth on the basis of myth.
Idiot industrialists poison the water, the soil and the air. Slash jobs and depress wages.
Idiot bankers gamble on self-created financial bubbles and impose crippling debt peonage on the citizens.
Idiot journalists and …

The vicious circle of modern slavery

globinfo freexchange
It sounds unbelievable, but in one of supposedly the most advanced European nations, the government plans to allow the working day to be extended to 12 hours!
We are talking about Austria, where tens of thousands of people in Vienna packed the streets on Saturday to voice their opposition to loosening labor laws to allow for a 12-hour workday and subsequent 60-hour workweek. Police in Vienna said some 80,000 people took part, while the trade unions that organized the protest said some 100,000 people attended.
What can someone say about this unimaginably absurd decision?
In an age of all this advanced technology, with AI and hyper-automation, people should work less hours, enjoying all the benefits and extra free time for their families and themselves. Yet, in the homeland of Austrian economics that led us to brutal neoliberalism, it seems that the elites push things to the opposite direction. Why? Is it just because human labor can't compete the machines?
Think ab…

Bernie's revolution starts to wipe out the establishment with a huge political earthquake!

globinfo freexchange
It happened! A 28-year-old super-progressive beat the personification of the establishment in the Democratic primary! Alexandria Ocasio-Cortez won the Democratic primary in New York's 14th congressional district, defeating the establishment baron, Joe Crowley. This has been described by many, rightfully, as the biggest upset victory in the 2018 midterm election season.
What are the origins of this amazing, unprecedented result in the US political process?
We can find them in the 2016 Democratic primaries. Back then, Bernie Sanders put the foundations of a truly progressive movement that could beat the neoliberal establishment. We wrote then that Bernie speaks straightly about things buried by the establishment, as if they were absent. Wall Street corruption, growing inequality, corporate funding of politicians by lobbies. He says that he will break the big banks. He will provide free health and education for all the American people. Because of Sanders, Hillary w…

Corporate media pundits depict establishment's evident panic in front of Alexandria Ocasio-Cortez's huge victory

globinfo freexchange
Shortly after recent political earthquake with Alexandria Ocasio-Cortez's huge victory, the establishment apparatus started to react as expected.
TYT immediately responded by identifying the common narratives used by the corporate media pundits in the following video:

In this video you can track at least two kinds of typical 'arguments' provided by the neoliberal ideological framework. We wrote several times in this blog about such arguments that their carriers present them as being perfectly rational using 'logical leaps', while in reality, they are deeply irrational.
In the first argument, Steve Schmidt labels progressivism as 'dishonest', simply because it fights for free education, free healthcare, etc. The basic 'argument' is the usual: ordinary people can't have such things because of the enormous debt. Of course, the logical leap here is the fact that the neoliberal pundits always avoid to refer to the billions in bailout…

Key parts of the Matrix: the faithful little soldiers of the mainstream media

globinfo freexchange
Ludivine Bénard describes almost perfectly a key part of the Matrix of our times:
Journalistic titles hire journalists whose social background – socially, culturally, educationally and morally – fits perfectly with what the current capitalist order asks for.
People working in media are mostly middle-class types with the same interests, favouring consumerism, hedonism, libertarian individualism and unconditional Europeanism from Brussels. And they're all subject to this form of political illiteracy – they reduce reporting on politics to reporting on political personalities. The journalists and pollsters in the press turn political life into a theatrical stage, where personalities just endlessly talk and debate.
All that talk drowns out any serious criticism of the system.
The French people have been indoctrinated that way for decades – we've had more than 30 years of a certain consensus between the centrist powers of the conservative right of Les Républicains…

The 'anti-establishment' Trump admits he is more elite than the elite!

globinfo freexchange
He said it!
From the first moment in this blog, even before Trump's election, we repeatedly said that Donnie is only a reserve of the establishment.
Finally, he essentially admitted that he is more elite than the elite! Or, more establishment than the establishment if you like. During a campaign rally in Duluth, Minnesota, Trump said "Why are they elite? I have a much better apartment than they do. I'm smarter than they are. I’m richer than they are. I became president and they didn't."
Kyle Kulinski is right. Donald Trump wants to be fully integrated in the Establishment Inc. He wants to be loved by the elites, join them. He sends signals to them, saying 'I did what you want, why don't you play with me?'.
The message to the American citizens is this: do not trust the orange clown. In case that will grab your vote for a second term, he will do whatever the establishment wants, and more. Meaning, more tax-cuts for the rich, more for-pro…

The real E CORPs seek complete control of global food supply

Who controls the food supply controls the people; who controls the energy can control whole continents; who controls money can control the world
globinfo freexchange
In the famous TV series, Mr. Robot, E Corp (which the central character, Elliot Alderson, perceives as Evil Corp), is an extremely powerful company that controls societies through consumer debt.
Yet, in the real world, a couple of mega multinationals could be proved even more ruthless. In another interesting report, James Corbett exposes the ultimate goal behind the merge of two of the biggest corporations in the food, medicine and agricultural sector. These are the real ECORPs:
What does a pharmaceutical giant have to gain from buying out and merging with an agrichemical giant, especially one that carries as much baggage as Monsanto?
If the connection between these corporate behemoths seems tenuous, then perhaps the key to understanding it is presented in that 1995 quote from former Monsanto CEO Robert Shapiro: “We’re talking…

Three years from the coup against Greece by the European Financial Dictatorship

globinfo freexchange
Three years passed (July 5, 2015) since the European Financial Dictatorship through the European Central Bank (ECB) and its head Mario Draghi, was forced to proceed in an open financial coup against Greece.
The start of current decade revealed the most ruthless face of a global neo-colonialism. From Syria and Libya to Europe and Latin America, the old colonial powers of the West tried to rebound against an oncoming rival bloc led by Russia and China, which starts to threaten their global domination.
Inside a multi-polar, complex terrain of geopolitical games, the big players start to abandon the old-fashioned, inefficient direct wars. They use today other, various methods like brutal proxy wars, economic wars, financial and constitutional coups, provocative operations, 'color revolutions', etc.
In this highly complex and unstable situation, when even traditional allies turn against each other as the global balances change rapidly, the forces unleashed are abs…