"The mind is a compact, multiply connected thought mass with internal connections of the most intimate kind. It grows continuously as new thought masses enter it, and this is the means by which it continues to develop."

Bernhard Riemann On Psychology and Metaphysics ca. 1860

Today's Elites


Saturday, September 15, 2012

The Legacy of Political Parties and America's Destruction

In 1799 Aaron Burr set up a fund to build a clean water delivery system in New York City. He did this as a ruse to create a bank by inserting a clause for the incorporation of the Manhattan Company in the eleventh hour in the state assembly where he served at the time. Burr played upon the good intentions of Alexander Hamilton to deliver clean water to the city suffering from perpetual outbreaks of cholera. In a young nation that was founded upon Benjamin Franklin's impulse to carry out Cotton Mather's vision of a "society to do good," Burr had an easy go of such ruthless subterfuge. The water project was a shill to set up what is now known as the "too big to fail" JP Morgan Chase Manhattan mega conglomerate monstrosity.

Later when he was Vice President, Burr finished off his greatest nemesis Alexander Hamilton in a duel that was completely one-sided since Hamilton refused to fire. Under indictment for murder in New Jersey, Burr arrived in Washington to be feted by the enemy of Hamilton's National Bank, President Thomas Jefferson. That bank created by Hamilton to finance material improvements and manufactures was the raison d'etre of the survival of the United States. This was an ongoing object of hatred that culminated in several financial panics when its opponents gained the upper hand to crush its functioning. For example, it was the protege of Burr, Martin Van Buren of Tammany Hall who induced that exemplar of  "democracy" Andrew Jackson in tearing down the Second National Bank.

In 1837 a panic resulted as the sequelae of the Jacksonians creation of speculative land banks. Edgar Allan Poe's satiric burlesques King Pest and The Devil in the Belfry aimed at Jackson and Van Buren's treachery  were understood by his readers as salvos in a political war. The Bostonian and New York "literati" were nothing more than fronts in cultish democratic experiments for the Boston Brahmins opium running Clipper Ship magnates and the Wall St speculators. Poe and Cooper, inter alia, took on these interests in their writings and were scurrilously hounded by them as a result.

Franklin Delano Roosevelt had managed to break the control of JP Morgan, et al., in instituting the Glass-Steagall law that prevented the use of bank deposits to be used for gambling in spurious "bucket shop" type schemes and by setting up Bretton Woods gold back reserve system to settle the imbalance of trade in order to secure stable currencies.

Nixon took the advice of Wall Street's Arthur Burns to end the gold reserve Bretton Woods system in 1971. This led to so-called arbitrage in international currencies thereby creating a bubble of speculation. The likes of JP Morgan were salivating for more speculative loot however. They got that when Glass-Steagall was abolished by their control over both parties in Congress and the White House in 1999.

Today, we are confronted by a crazed attempt by the Federal Reserve's Ben Bernanke to prop up the collapsed worthless trillions of dollars of speculative "derivative securities" that were the outcome of Gramm-Leach-Bliley take down of Glass-Steagall. This is nothing more that history repeating itself.

But there is a twist now. For what is being played out on the stage of the world by the Kissingerian geopolitical interests behind these sordid would-be oligarchs of high finance is far more destructive than merely a bank collapse. The world has been at a crossroads in terms of the potential threat of nuclear war. Never more so than now with the looming countdown of the launching of an Israeli strike against Iran. Meanwhile Obama and Romney parade around in pettifogging political attacks and ludicrous grovelling to curry favor with these very moneyed interests that have seen fit to step by step destroy the very principle of Hamilton's successful rescue of the nation.

2 comments:

  1. Lots of babbling here without really linking history's events. Btw, why attack Kissinger? I don't see the relevance. And note I am a right wing econ believer, I just don't see your purpose here.

    ReplyDelete
    Replies
    1. Well at least you can admit your problem. A good first step...

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