This article was written at the height of the 2008-2009 economic crisis which coincided with the US presidential election campaign. It was published in the week following Obama’s victory in the November 2008 elections.
The October 2008 economic meltdown was the result of a deliberate process of financial manipulation. Ten years later under the Trump administration, financial warfare has become increasingly sophisticated. Manipulations of foreign exchange markets combined with economic sanctions have been used by Washington in alliance with Wall Street to trigger economic instability in targeted countries, including Iran, Turkey, Russia and Venezuela.
The following article provides a brief history of “financial warfare” from the 1997 Asian Crisis (triggered by the manipulation of forex markets) to the October 2008 financial meltdown, not to mention the bailout procedures put forth by powerful banking conglomerates.
Michel Chossudovsky, August 24, 2018
The October 2008 financial meltdown is not the result of a cyclical economic phenomenon. It is the deliberate result of US government policy instrumented through the Treasury and the US Federal Reserve Board.
This is the most serious economic crisis in World history.
The “bailout” proposed by the US Treasury does not constitute a “solution” to the crisis. In fact quite the opposite: it is the cause of further collapse. It triggers an unprecedented concentration of wealth, which in turn contributes to widening economic and social inequalities both within and between nations.
The levels of indebtedness have skyrocketed. Industrial corporations are driven into bankruptcy, taken over by the global financial institutions. Credit, namely the supply of loanable funds, which constitutes the lifeline of production and investment, is controlled by a handful of financial conglomerates.
With the “bailout”, the public debt has spiraled. America is the most indebted country on earth. Prior to the “bailout”, the US public debt was of the order of 10 trillion dollars. This US dollar denominated debt is composed of outstanding treasury bills and government bonds held by individuals, foreign governments, corporations and financial institutions.
“The Bailout”: The US Administration is Financing its Own Indebtedness
Ironically, the Wall Street banks –which are the recipients of the bailout money– are also the brokers and underwriters of the US public debt.