Stephen Lendman is a writer, syndicated columnist, activist, News TV personality, and radio show host. He currently writes for and and hosts, since 2007, a progressive radio show at The Progressive Radio News Hour on The Progressive Radio Network.

Stephen Lendman was born in 1934 in Boston, MA, raised in a modest middle income family, attended public schools, received a Harvard BA in 1956 and a Wharton MBA in 1960. After six years as a marketing research analyst, Lendman became part of a new small family business in 1967, remaining there until retiring in 1999.

Since then, he has devoted his time to progressive causes, extensive reading, and since summer 2005 writing on vital world and national topics, including war and peace, American imperialism, corporate dominance, political persecutions, and a range of other social, economic and political issues.

He is also author of the celebrated books "Banker Occupation: Waging Financial War on Humanity" and "How Wall Street Fleeces America: Privatized Banking, Government Collusion and Class War".

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Capitalism Failed

by Stephen Lendman


Economic/financial systems dependent on wars and predation eventually self-destruct. Western capitalism is no exception.

Money power runs things. War profiteering is policy. Ordinary people have no say. Exploiting them for profit is prioritized. Divisions between rich and poor grow. By some measures they’re unprecedented.

Money power in private hands and democracy can’t co-exist. Banking giants transformed Western societies into vehicles for wealth extraction. Corrupt politicians facilitate their criminality. In return, they’re rewarded handsomely.

Paul Craig Roberts wrote about “The Collapsing US Economy and the End of the World.” Can societies survive Washington’s hubris, he asked?

Federal policy destroys people politically, militarily and economically. Few benefit at the expense of most others. Washington grows more “isolated and despised.” Europe “is on the ropes” and sinking.

Wars rage endlessly. Victories are elusive. Options perhaps are down to “the elimination of life on earth. Is this Washington’s program,” asked Roberts.

Former Secretary of State Madeleine Albright once said what good are nuclear weapons if you don’t use them. Roberts quoted neocon warmonger Bill Kristol saying the same thing.

Formerly he served as vice president Dan Quale’s chief of staff. He’s now a Fox News regular. He and others like him want to blow up the world to exploit it.

These types run America and Western societies. They also conspire with bankers to steal us blind. John Kozy is a Progressive Radio News Hour regular. His latest article headlined “How the Economy Works; the Necessity of Crime.”

Forget about love. Money and fraud make the world go round. Roberts explained in discussing libor and other grand schemes. Kozy said “(w)hether people benefit or are injured is never an economic concern.” They’re “irrelevant.”

Commercial enterprises commit crimes. Growth depends on it. So does GDP. Economies are disconnected from people and their welfare. Money made by stealing it or destroying things works better than by operating honestly.

Western economies are “totally immoral.” Kozy quoted a financial advisor saying:

“As investors, we absolutely must not let our political beliefs, the news media, or anything else stand in the way of our quest to grow our hard-earned money into (more of it for) lasting wealth.”

Who cares what harm befalls others in the process. They’re externality burdens for them to bear. At the same time, chickens are coming home to roost. Years of economic/financial excess head closer to day of reckoning payback.

Troubled EU economies look worse off now than in decades. Money power in private hands bears full responsibility. They’re heading societies off a cliff. Proposed fixes work short-term. Greater problems result.

Unvarnished reality looks dire. Economic numbers heading south show it. Markit Economics provides independent data. Its composite economic index showed contracting activity for six consecutive months. In July, its manufacturing component hit a three-year low.

Markets rise on hopes and prayers. Central bank rhetoric and bravado substitute for sound policies. Economic reality looks bleak.

Powerhouse Germany got a credit warning. Europe’s Economic and Monetary Union (EMU) looks increasingly like a failed experiment.

From inception, the euro was a disaster waiting to happen. Dissolution appears just a matter of time. Existential reality shows breakup draws closer.

Trouble also looms in America. One analyst said it wins first prize in the ugly contest. Europe ranks last. Nomura’s chief European economist Jacques Cailloux asked:

“What can they do and what would bring about a sustained turnaround in market confidence? There I struggle to find something that would really be convincing.”

Regardless of up and down market swings, a secular bear market in equities persists. Two ECB LTROs (Long-Term Recovery Organization) bought little time and nothing else.

ECB president Mario Draghi claims he has more tricks up his sleeve. One analyst said he’s throwing spaghetti at the wall to see what sticks.

Monetary policy is a blunt tool. Structural insolvency issues persist. Central bank intervention is short-lived. Core problems remain unaddressed.

European credit crunch issues cause more problems. Germany’s done heavy lifting for the continent. Cross-border lending by its banks fell nearly 20% in the past seven months. It’s back to 2005 levels.

Deposits keep leaving Greece, Portugal and Spain for safer locations. At the same time, European banking faces a trillion euros worth of bad loans. Today’s numbers are 9% greater year-over-year. Overall, 2.5 trillion euros are non-performing.

Solutions call for more debt. Fires aren’t extinguished by throwing fuel on them. Central bankers and politicians avoid responsible actions. Existential moments await all poorly run economies.

Progressive Radio News Hour (PRNH) regular Jack Rasmus predicts economies will head south ahead. America’s stagnating economy remains weak. Recovery is an illusion.

The economy needs growth above 2.5% to create jobs. Dismal numbers reported are overstated. Jobs are lost, says Rasmus. Tax cuts don’t create them. Neither do corporate handouts. Ahead things look worse.

These type policies have “zero impact on the economy and job creation,” says Rasmus. Claiming otherwise is a myth. Policy-makers and media scoundrels repeat it ad nauseam.

US economic data are grim. Consumer and business spending slowed. Auto sales fell dramatically. Total retail sales fell three straight months in Q II.

Services consumption recorded its lowest growth in two years. Rasmus said consumer spending was driven largely by rising credit card, auto, and education debt. It’s unrelated to real disposable income. It’s falling.

Manufacturing strength is ebbing. Durable goods spending declined sharply. US exports grew more slowly than imports. GDP took a hit.

State and local government spending keeps declining. So does domestic federal spending. During hard times, it’s a prescription for trouble. Spending cuts, layoffs and higher household taxes assure greater problems later on.

Rasmus sums up US economic woes, saying:

In 11 post-1947 recessions, state and local government spending increased. Net private sector job creation averaged 350,000 for six consecutive months. Housing led recovery.

For the past four years, the opposite occurred. No effective jobs program exists. Continuing housing foreclosures harm millions. State, and local government spending heads south. So does domestic federal spending.

Obama betrayed Americans. His alleged economic recovery program was illusory. Ahead things look worse. In Europe they’re dire. Draghi promised help. Some observers think he’s bluffing. Others don’t trust him.

On July 30, Der Spiegel headlined “ECB Divided over Efforts to Save Euro,” saying:

Analysts called Draghi promising to do “whatever it takes to preserve the euro” another “platitude coming from a politician.” Short covering sent markets higher. Expect europhia to be short-lived.

“(E)xperts at the central banks of the euro zone’s 17 member states had no idea what to do with the news. Draghi’s remark was not the result of any resolutions, and even members of the ECB Governing Council admitted that they had heard nothing of such plans until then.”

“A crisis of nerves” persists. Numerous euro summits produced failure. Previous ECB interventions bought time. Nothing else was accomplished. What sounds promising when announced, in fact, shows weakness.

Germany’s Bundesbank called Draghi’s proposal “problematic.” If he backs up his words with intervention, “the climate in Europe’s monetary authority could sink to a new low.”

Northern European creditor countries fear he’s willing to sacrifice sacrosanct monetary principles. Debtor periphery ones think the Bundesbank secretly plans returning to deutsche mark stability.

Commerzbank chief economist Jorg Kramer believes Draghi “exceeded his scope of responsibility.” Maneuvering lost him credibility. Resistance against him grows. Everything he tried failed. Repeating what doesn’t work shows ineptitude. Maybe his days are numbered.

Sovereign debt buying can’t bring lasting market relief or resolve deep-seated structural problems. Draghi’s fighting symptoms, not underlying causes. Economic trouble grows.

The longer real solutions are delayed, the worse things get. What’s intended to maintain monetary union may end up dissolving it. Force-fed austerity hastens it.

Resolving crisis conditions responsibly isn’t even discussed. It’s a recipe for disaster. Only its timing is unknown.

On July 31, the Financial Times headlined “Time for something different from the ECB,” saying:

After becoming president last November, Draghi said the “security markets program” his predecessor launched was seriously flawed.

“ECB hardliners (said) the bank compromised its political independence by wheeling-and-dealing with eurozone governments.”

Something different is needed. “The ECB is responsible for the effective implementation of its monetary policy. But, with eurozone interest rates diverging so much, that is clearly not happening.”

Draghi left key questions unanswered. “Will the ECB overcome the ‘seniority’ problem of a revamped bond-buying program by finally taking losses on its Greek bonds?”

“How will he keep the (leery) Bundesbank on side, or at least prevent it undermining the credibility of any ECB intervention?”

“Will it somehow try to distinguish between ‘convertibility’ premiums and other factors driving up bond yields?”

Draghi’s bravado gave no answers. He’s been ECB president since last November. Formerly he was vice chairman of Goldman Sachs International, governor of the Bank of Italy, Italian executive director at the World Bank, and Financial Stability Board (FSB) chairman.

Established in 2009, the FSB advanced the ball closer to global monetary control. It lets banking giants consolidate power and run world economies. Draghi ran it until appointed ECB president.

Now he’s wrecking Europe. Perhaps Germany will return to deutsche marks and France reissue francs. Doing so might be a step in the right direction to stop him.

About the Author: Stephen Lendman lives in Chicago and can be reached at

His new book is titled “How Wall Street Fleeces America: Privatized Banking, Government Collusion and Class War”

Visit his blog site at and listen to cutting-edge discussions with distinguished guests on the Progressive Radio News Hour on the Progressive Radio Network Thursdays at 10AM US Central time and Saturdays and Sundays at noon. All programs are archived for easy listening.


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Posted by on August 1, 2012, With 1130 Reads Filed under Economy & Business. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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16 Responses to "Capitalism Failed"

  1. Excalibur  August 3, 2012 at 6:33 am

    We must not throw the baby out with the bathwater. Capitalism is savable in a diluted form. Rather that than ‘carbon credits and debits’ issued once again by anonymous and secretive body – apparently based in Tel Aviv.

  2. Worker Bee  August 2, 2012 at 11:37 pm

    The obvious solution is for governments to default on debt “owed” (since it is odious debt) to the 0.001% class, which would allow for lower taxes on the working poor and a balanced budget. And if necessary, to take control of production during the period of financial turmoil – those who thinks the latter idea unworkable should remember exactly that was done during WW2 with great success. Finally, guarantee anyone who is willing to work a living wage job, to break the power of the few holders of capital over labor, so private businesses would actually have to treat their employee decently to keep them.

  3. ricohands  August 2, 2012 at 11:52 am

    Capitalism/Marxism both centrally controlled by the 0.02%, both funded by the Rothschilds.

    • OrdinarySerf  August 2, 2012 at 3:21 pm

      Absolutely correct……Rothschilds funded fall of Tsar in Russia and rise of Communism – it’s heads we win, tails you lose in their world.

  4. Detlef Reimers  August 2, 2012 at 7:08 am

    It’s nothing more than a bad man made depth bubble joke, executed on a worldwide scale, purposefully killing Nations and their people with economic and – if suitable – military destruction. Welcome in the world of wordwide high finance! Be shure, it will get you also, if it not already has.

    This is no joke, but maybe it helps some folks to get it!

  5. LOB2065  August 1, 2012 at 6:58 pm

    One of the biggest problems that America has is that we are now living in a competitive global business environment, margins are being pushed down and Western governments are receiving less revenue than they did in the past, this is why the EU countries must implement huge reforms because their spending habits are out of sync with todays business environment.

    This is why America’s government is spending 50% more than it receives in revenue – IT DOES NOT UNDERSTAND THE WORLD WE LIVE IN.

    Now the big problem that the US is having, outside of being bankrupt, is that it wants its allies to spend a higher percentage of their GDP on military weapons. This just isn’t going to happen.

  6. OrdinarySerf  August 1, 2012 at 2:51 pm

    Nothing wrong with a good capitalist – trouble is there are no good capitalists…….
    Nothing wrong with a good parliamentarian – trouble is there are no good parliamentarians……..

    You chaps over the pond should get back to the Greenback (if you can find a President who won’t get assassinated for trying to reintroduce it)

    Come to think of it, we need something similar over here too:

    • Dan  August 2, 2012 at 7:33 am

      Greenbacks? Really? Are you suggesting we’d be better off if the power to create currency out of thin air now in the hands of the Zionist cabal’s Federal Reserve be handed over to the Zionist cabal’s hundreds of agent-clowns in Congress and then doled out by their marionette in the White House? The Joker in the Batman movie would be an improvement on this scheme.

      A gold-based or -backed currency is sensible, but it presupposes a moral order the cabal’s agents long ago destroyed, and that the gold reserves be unencumbered and owned by the people. Considering Jim Willie maintains nearly all our gold has already been stolen by the cabal, a gold-backed currency puts them right back in business tricking a profit off the honest labors of the world’s working men and women. It looks like we can’t win unless this banking cabal and the captive press and political classes its wealth maintains are broken up once and for all. The weapon of choice is the one they fear most, which is a moral reawakening.

    • End-it  August 2, 2012 at 12:16 pm

      Gold based currency is just as bad.
      The Golden Rule “he who has the gold makes the rules”
      He who creates money from nothing ,makes the rules.
      Who stops the zionist thieves that have bought the gold with the fiat they created?
      The people have to have control of their own sovereign currency but before that can happen the stolen wealth must be confiscated and distributed. Taking the stolen wealth from the criminals is NOT socialism its JUSTICE!

    • OrdinarySerf  August 2, 2012 at 3:17 pm

      No Dan….I’m suggestng that the Fed and B of E (a private bank equivalent here in UK) be abolished and governments stop borrowing off these private bankers to create artificial debt with taxpayers paying the interest on it all their lives…..instead a sovereign nation should be in control of its own money supply, which is basically what Lincoln grasped and probably why he was assassinated – agree with you that it is not practical unless the people wake up and it is certainly true that the system has been hijacked by criminals posing as bankers – but that’s all explained in the link I posted up anyway.

      Gordon Brown sold off most of our gold reserves at the bottom of the market a decade or more ago. Who to ? Why the Rothschilds of course…..( ! )

    • Dan  August 3, 2012 at 7:49 am

      OS, at least we’re in agreement about the urgent need to eliminate the Zionist-controlled central banks whose creation gave the criminals posing as bankers the right to trick a profit off the entire planet’s economic activity. That a nation should be in control of its own money supply is self evident, you would think, but most people, as Bertrand Russell observed, would rather die than think; and in fact, they do so. I still think you need to consider how a new currency controlled by congress would be different when, in fact, the cabal’s agents control our government. For example, over here we have Senate majority leader Harry Reid stridently declaring there will never be an audit of the Fed or accounting of the theft of his country’s gold reserves on his watch, while out of the other side of his mouth this Wall St bootblack is accusing Romney of being unfit for the presidency for being a Wall St bootblack.

      Michael A. Hoffman makes the point that blaming the Zionists alone is a potentially catastrophic mistake for the rest of us as they work hand in glove with Freemasons like Mormons Reid and Romney. Mormonism is masonic kabbala, as is B’nai B’rith. Pike made clear in Morals and Dogma that the all-powerful Scottish Rite of Freemasonry is also pure kabbala occultism in its higher degrees and that it would unleash the greatest horrors imaginable on the world, as the kabbala requires the destruction of all civil society before ushering in the reign of the elect. Communism, finance capitalism (as opposed to industrial capitalism), libertarianism, they all serve the elite’s purposes. Pike was also a Luciferian and Confederate general who relished butchering innocents during America’s Civil War, so the thread of butchery and deceit under the banners of change, hope, democracy, woman’s rights, and so on clearly remains forefront on the agenda. The idea that the cabal’s agents in Congress and in the White House, whether Romney or Obama wins, will move us one step toward sound money is preposterous.

    • OrdinarySerf  August 4, 2012 at 9:25 am

      As I commented earlier Dan, totally understand the practical problems in today’s world….this so called ‘debt’ is a total fiction, the biggest fraud ever perpetrated on mankind – a system maintained by the elite groups that you refer to above which is designed to keep us all controlled and paying from cradle to grave. The subversion has gone way further than anything Lincoln had to deal with – and look what happened to Lincoln ( ! ) So we need an awakening of the people worldwide. That is extremely difficult because part of the subversive process has been to put us (or at least the vast majority of us) to sleep / locked into consumerism. Independent journalism on sites like VT help, but 99% plus are focused on MSM.

  7. Excalibur  August 1, 2012 at 12:45 pm

    I do not believe that capitalism as such is the cause of this problem. Capitalism is just an abacus. The real problems are the mores, do’s and don’ts of society at large that pervert it’s benign application as a mere function of trade.

    Certainly, if I had my way, all forms of speculation would be made a criminal offence. That would kill off all the Goldman Sachs of this world immediately. Neither would their be this stupid rush for ‘growth’ figures for them to gamble on – rather balance and sustainability to keep people in work

    Without speculation – money would simply accumulate with the people that EARNED it or produced it with manufacturing. This way it would retain it’s value indefinately and not be constantly ‘shaved’ by the international crime syndicate.

    Capitalism itself has existed for centuries in a relatively successful and benign way. Two major problems stand in the way of benign capitalism – and BOTH can be easily traced to the zionist menace. One are the zionist gangs that have secretly attacked nations, destabilised them – and wrenched away control of their financial systems – placing themselves between the nation and it’s money supply. This practice is naturally wholly wrong and has to be rendered obsolete around the world. Even a child in a playground could tell us that this incredible version of greed with its psychotic need for control over others – is sick and very wrong.

    The other aspect which renders capitalism useless is the marxist zionist Frankfurt school subversion attack on our current society – breaking it down and appealing to the lowest common denominator. Reducing us to a world where kindness and decency is seen as weak and stupid – and honesty and plain dealing just gets you shafted and pushed to the bottom of the pile. They planned to “Make the west so corrupt that it stinks” in the words of the marxist Frankfurt school instructors – and in that they were very successful.

    Capitalism itself is fine. It just cannot be operated by subverted people. Another fine example of what I am trying to say is shown in politics.

    In Britain the Parliamentary system is superb. There is just one problem though – it was designed over the centuries to be manned by men of honour and integrity to speak their minds and vote in line with their conscience in order to support the interests of their local voters and the nation itself. Therein lies the snag.

    I don’t need to tell you that this no longer happens in today’s Parliament because of the individuals now involved and I am sure that it no longer happens in the American system either. In fact the very last such old style politicians were purged from the system in recent decades – leaving us with the new and modern version. A kind of hyena – more at home on the plains of the Serengeti national park than running a country.

    It is not possible to reason with or appeal to a hyena for fair play. Which is why they all need to go – and a new generation of people measured by their decency and patriotism put in their place.

    I think you will find then that both government and capitalism – will begin to work again.

    • mpennery  August 2, 2012 at 8:02 am

      Well, yes, but you’re judging capitalism based on what’s it’s become rather than what it’s capable of. Which is how you’re able to condemn speculation and applaud manufacturing, while forgetting that quite a bit of speculation leads to strong manufacturing. The problem is that the system is and has been controlled by complete psychopathic criminals for about the last 5 decades strongly (longer than that in some ways, maybe since about 1913). Capitalism hasn’t been allowed to function because that would require a degree of fairness and the elite don’t like to share.
      I personally think we keep capitalism and tweak a couple things. Obviously banking and investment have to be seperated again. Money has got to be taken out of politics and we need to take away some of the perks of the elected offices so we stop getting rich guys looking out just for their own money. We need to cut local, state and federal government by 50 to 75% for starters and get the government back to it’s constitutional roots. Most critical of all is that we need to rescue our technology from the mafia government criminals and get about with our second revolution inspired by near-free and pure clean energy. Then pass a law that says you can’t manufacture anything that releases toxins, doesn’t break down or can be recycled. Pass another that takes the chains off small businesses and says do what you want so long as you don’t hurt the person or property of another or harm the environment. Eliminate property taxes. After that, get the hell out of the way and let the market work….for once.


      Lexington, ky

    • Excalibur  August 3, 2012 at 6:27 am

      Matt – I agree with a lot of what you have to say there. Perhaps I didn’t explain properly but my point was that benign capitalism CAN and has been achieved in times gone by – but it is intrinsically linked to the mores of society. A society that promotes fairness, honesty, clean living and an altruistic mindset – can easily allow capitalism to exist happily and side by side with it’s population. The capitalist money system is, after all, just a financial structure to help us through our lives. We do not exist for ITS benefit – IT exists for OUR benefit. This is why public happiness and a drop in serious crime reached a zenith of contentment in the 1950s.

      When all standards of decency and societal structure are deliberately ridiculed and rubbished by an underhand (government sponsored) programme in order to encourage the descent of capability and acceptability levels in all things – and to INVERT the sensibilities built up over centuries to protect us – then the chaos caused will render capitalism useless along with everything else.

      We have been successfully SUBVERTED as a society for the benefit of a few wicked and perverse criminals – and the sooner that we recognise this and take remedial action the sooner we will emerge from it.

      It must also be quickly recognised and admitted (especially by those left of centre) that most of the subversion has been enacted and enforced on our confused populations disguised as ‘equality’; ‘safety’ or more recently for the ‘environment’.

  8. Gerry  August 1, 2012 at 12:40 pm

    Democracy and capitalist systems invariably fail. If they didn’t we would all be speaking Greek or Babalonyian instead of watching them be the first to get flushed from the current experiment.

    These forms of civil government seem to last approximately 200 years and fail from loose fiscal policy when the voters discover they can vote themselves largesse from the public treasury as the Politcos who promise the most get elected with greater frequency.

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