Here is a generic definition of political economy. It came from the website "Investopedia." Their version is pretty close to any other you will find.
"The study and use of how economic theory and methods influences
political ideology. (It) is the interplay between
economics, law and politics, and how institutions develop in different
social and economic systems, such as capitalism, socialism and communism. Political economy analyzes how public policy is created and implemented."
I've written separate pages about two economic theories. One comes from Adam Smith and the other is called "Keynesian economics." But I believe our nation has been influenced by a more powerful, yet still disguised force.
This political economy in our country has been designed and refined over a century for a single purpose. To protect the status quo among the power elite and the big players in the banking system who control the money flow in America and the world. The lasting gift from Jekyll Island.
The best way for them to maintain control is to be sure that most candidates, in fact almost all candidates in the major races follow the company line. It doesn't matter if those running for office are identified as Democrat or Republican, as long as they understand that this political economy will be protected.
As the system is set up now, unless you are aligned with one of the two major parties you have no chance to be elected to the highest offices. When a candidate will spend half a billion dollars to win a job that pays $400,000 per year, we see a money-corrupted system. The two party system is hurting our country because it prevents real competition. A sitting congress that ever debates anti-trust cases is an example of absolute hypocrisy.
We are given the choice of two representatives of the current political parties and we hope to pick the least destructive. We see the party in the White House at the time...and it doesn't matter which one... offer unemployment numbers that are "seasonally adjusted". They don't even count the large numbers of people not working, nor even looking for work.
We see a congress that wants the other side blamed for everything. But the reality is that it is all a game as they keep each other in power. The political economy just rolls along.
Here are just two examples; one from "each side of the aisle" where the good of the country took a back seat to the will of the big banks and the continuation of our political economy.
In 1989 George Bush pushed through a $66 billion dollar bailout for the devastated savings and loan industry. Estimates are that the $66 billion probably cost U.S. taxpayers over $150 billion. He said this would never have to happen again.
20 years later, the second George Bush asked for $700 billion in bailout money. He also asked for the debt ceiling to be raised. There was a young, junior senator from Illinois who was opposed to that idea. His comment...
"The fact that we are here today to debate raising America's debt limit is a sign of leadership failure. It is a sign that the US Government cannot pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government's reckless fiscal policies. Increasing America 's debt weakens us domestically and internationally. Leadership means that, 'the buck stops here.' Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better."
That junior senator was named Barack Obama. As president, he suggests that he should be able to bypass congress to raise that same debt ceiling as he sees fit. Hmmm?
Citigroup is the end result of a merger between Citicorp and Travelers Group. At the time this new company was called the "biggest financial supermarket" in U.S. history.
The major problem in creating this large company was a law passed in 1933 called the Glass-Steagall Act. This law was passed during the Great Depression. The goal was to keep investment banks separate from savings banks. Investment banks did not have access to funds from the federal reserve, but savings banks did.
One of the issues at hand during the last depression was investment houses making risky loans with depositor money. Fractional banking allowed them to loan far more money than they actually held in reserve. (Fractional banking is still in place today. Why do you suppose banks fear a run on deposits? They don't have the money!) Of course those folks saw a stock market crash as a result.
So the Glass-Steagall Act fixed that problem. Until Citicorp and Travelers hatched their plan. Sandy Weill, an original co-CEO of this new company was not concerned with this roadblock. He stated "the legislation will change...we have had enough discussions to believe this will not be a problem" He said this in advance of any law change!
Discussions? With whom? How about the man sitting in the chair as secretary of the treasury of the Clinton cabinet at that time? His name was Robert Rubin. Or maybe with Timothy Geithner, at the time aligned with the New York branch of the federal reserve?
And the law was changed. Not until after the merger which placed Citigroup in direct violation of federal law. But only if the law is enforced. And in this case, it was not.
Here is part of a comment from Kenneth Guenther who was the CEO of Independent Community Bankers of America.
"Who do they think they are? Other people, firms, cannot act like this... Citicorp and Travelers were so big that they were able to pull this off. They were able to pull off the biggest financial conglomerate ... the largest financial coming together of banking, insurance and securities-when legislation was still on the books saying this was illegal. And they pulled this off with the blessings of the president of the United States, President Clinton, the chairman of the Federal Reserve system, Alan Greenspan; and the secretary of the treasury, Robert Rubin. And then, when it's all over, what happens? The secretary of the treasury becomes a vice chairman of the emerging Citigroup."
Robert Rubin also became one of Barack Obama's chief advisers and Timothy Geithner became his secretary of the treasury. Hope and change?
The fact is that presidents and congress are elected to protect the big banking sector. The federal reserve was created to keep the big banks from suffering permanent losses due to poor decision making. Having their people in place insures the bailout train will never run out of coal. The political economy pays them too much.
As we gear up for another election cycle, we see further examples of this system. We're offered up as one choice, the wife of the president who let Citicorp get around a federal law. The truly scary part is that she is more corrupt and dishonest than her husband.
And we're offered as the other choice, a political outsider, which could be a good thing. But this man seems to have a penchant for bombastic statements that cause us to wonder what he is really thinking.
That doesn't make him unqualified, but does lead to very serious questions that need to be answered before the election. It's one thing to campaign, but he must be able to handle the job.
But he has succeeded in one area already. He has terrified the two-headed monster that dominates politics in America. In this case he is completely unbiased. He has entrenched members of both parties terrified.
If a true outsider ever broke through, the fun could be over for the incumbents from both sides who are more concerned with getting re-elected than they are with moving America forward.
We see other long-time politicians who are well-versed in the intricacies of influencing voters with illusions of change, but no track record of actually supporting such changes.
Every candidate likes to characterize themselves as being different from the current group of elected officials, even if they've been part of it for years. An example being that quote from the young senator and then the actions of the same person when he was sitting in that chair in the Oval Office.
You will have to take charge of your own financial preparation and knowledge. It isn't taught in our schools. Our students are taught to follow the rules and be good employees who hand over their money to the banking system.
Start with "Conspiracy Of The Rich" by Robert Kiyosaki. This book was written entirely on line and readers were able to give input as it was being written. It is available in paperback and is absolutely necessary to help you become financially prepared. It was written around 2009 and it is remarkable the insight he provided on our true political economy.
He will also offer several more good book choices. Our mission at books-empower.com is to offer very good educational options for you. And to encourage you to make a positive difference.
Please check out the videos in the resource library by Mike Maloney. If you understand the history of money, you'll gain an advantage that will help you make sound, informed decisions.
Richard Duncan wrote the, "The Dollar Crisis". This is another very informative book that will shed plenty of light on our political economy. He will offer some excellent comment on the dollar as reserve currency.
The two party system and our political economy are broken. But we can change the future beginning with small groups building momentum. It won't be easy. It won't be fast. The federal reserve system has had 100 years to perfect the art of taking our money and funneling it to the banking cartels.
Study the books listed on this page. Be aware and be active. Books do empower.
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