The Truth About Capitalism
In the years leading up to the economic crisis in 2008, banks increased the funding for the riskiest loans (called subprime loans), from $30 billion a year to over $600 billion a year, rigged even higher interest rates on those loans, and then, while the bankers were making billions of dollars of profits off the borrowers’ high interest repayments, they made further profits betting against their customers ever being able to pay back the loans they had just been given.
The FBI warned the government about this in reports as early as 2006, the IMF’s chief economist, Raghurum Rajan, presented a paper to the men in charge of all the world’s major banks, including the Federal Reserve, warning of the potential collapse of the system due to dangerous incentives, and journalist Allan Sloan published articles in Fortune magazine and The Washington Post in 2007 – nothing was done.
Instead, the men who created the crisis were allowed to make billions of dollars of profits before their institutions hit bankruptcy, paid themselves millions of dollars more in bonuses out of the government bailout packages, and left the rest of us to deal with mass increases in unemployment and poverty, and national debts that no amount of austerity measures will ever be able to repay.
10 years later and, as you read this, the effect of home foreclosures is still felt across the US states, austerity measures are intensifying grass roots action and opposition in the UK, and people are losing faith in the European Union, which is not unrealistically now at risk of falling apart.
The ever more concentrated power that forms from a system based on a motive of profit before people, planet, morals and ethics is leading many to turn away from the mainstream narrative towards new political alternatives, and solutions.
Since all the bailout money is only going into paying off interest on the debt that Greece already has – whilst at the same time creating even more debt for Greece thanks to the interest charged on the bailout money itself – for the first time since the Eurozone was created in 1999, people united en masse to stand up against banks and politicians and said ‘no.’July 2015, and Greece’s new left-wing party Syriza gave the people of Greece the option to vote on continued austerity measures and increased bailouts from Germany and the EU.
Since then, people’s movements like Podemos (‘we can’) in Spain and Syriza (‘from the roots’) in Greece keep rising out of the financial ruin of the hardest hit European countries, and the socialist debate has picked up serious momentum in the USA due to Bernie Sanders and the UK due to Jeremy Corbyn, while votes for Brexit and Trump show that ordinary people are willing to take big risks and force change if this is the only way to create a new narrative to capitalism.
However, the first example of people power since the financial crisis began took place in Iceland. People flocked to the streets in protest after the government let the banks borrow 10 times Iceland’s GDP and then left the people of Iceland with a debt to income ratio of 240%.
Ongoing demonstrations that included stones thrown at the parliament building led to a relatively peaceful revolution; the prime minister was indicted, Iceland’s main bank was nationalized, 200 criminal charges were made against the bankers, and debt exceeding 110% of home values was simply wiped clean.
Robert O’Leary, JD BARA, has had an abiding interest in alternative health products & modalities since the early 1970’s & he has seen how they have made people go from lacking health to vibrant health. He became an attorney, singer-songwriter, martial artist & father along the way and brings that experience to his practice as a BioAcoustic Soundhealth Practitioner, under the tutelage of the award-winning founder of BioAcoustic Biology, Sharry Edwards, whose Institute of BioAcoustic Biology has now been serving clients for 30 years with a non-invasive & safe integrative modality that supports the body’s ability to self-heal using the power of the human voice. Robert brings this modality to serve clients in Greater Springfield, Massachusetts and New England (USA) & “virtually” the world. He can also be reached at romayasoundhealthandbeauty@gmail.