Michel Chossudovsky

Global Research

18th March, 2009

The Economic and Social Crisis

The financial meltdown has unleashed a latent and emergent social crisis across the United States. 

What is at stake is the fraudulent confiscation of lifelong savings and pension funds, the appropriation of tax revenues to finance the trillion dollar “bank bailouts”, which ultimately serve to line the pockets of the richest people in America.   

This economic crisis is in large part the result of financial manipulation and outright fraud to the detriment of entire populations, leading to a renewed wave of corporate bankruptcies, mass unemployment and poverty. 

The criminalization of the global financial system, characterized by a “Shadow Banking” network has resulted in the centralization of bank power and an unprecedented concentration of private wealth. 

Obama’s “economic stimulus” package and budget proposals contribute to a further process of concentration and centralization of bank power, the cumulative effects of which will eventually resul in large scale corporate, bankruptcies, a new wave of foreclosures not to mention fiscal collapse and the downfall of State social programs. (For further details see Michel Chossudovsky, America’s Fiscal Collapse, Global Research, March 2, 2009). 

The cumulative decline of real economic activity backlashes on employment and wages, which in turn leads to a collapse in purchaisng power. The proposed “solution” under the Obama administration contributes to exacerbating rather than alleviating social inequalities and the process of wealth concentration.

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