Preface note from CR:
For many years, I've researched the linear trending of those
 'principalities of darkness' (call them what you may)
which have concentrated power without the principle of love.
Repeatedly I've seen a common pattern of this sinister force,
their intention to bring American down, bring the 3rd world up,
and where they meet is a New World 'Odor' (NWO) that stinks
to high heaven.  Now the FPTB (Former Powers-That Be)
have hit the wall of the public's nonlinear awakening to the
dark-side's "plot out of hell", the tyranny of bad intentions
which have risen to a point that is unsustainable.

The evidence for this is now self-evident in the following article.

It's Official: Rich Declare War on the Middle Class

By Robert Freeman


For the past thirty years the rich have been waging war on the middle class. It's been astonishingly effective, partly because it has been undeclared. But even that pretense is now being abandoned. The President's National Deficit Commission has effectively declared that the rich will now go after what is left of working and middle class wealth and will take whatever steps are necessary to seize it. If allowed to succeed, their plan will reduce Americans to a state of serfdom.

Ronald Reagan began the war on the middle class with his "supply-side" economics. Its very purpose, according to David Stockman, Reagan's Budget Director, was to transfer wealth and income upwards. It cut the marginal tax rate on the highest income earners from 75% to 35% while dramatically expanding spending for war. The results were two-fold: massive federal debt and an astonishing rise in the share of income and wealth going to those who were already the wealthiest people in the world.

The national debt quadrupled between 1980 and 1992. George W. Bush would repeat Reagan's policies and double it again between 2000 and 2008. Meanwhile, the share of national income going to the top 1% more than doubled, from 9% to 24%. The share going to the top one-tenth of 1% of income earners more than tripled. We now have the most unequal distribution of income in the developing world and the inequality is growing rapidly.

Shifts of this magnitude over such short periods of time have never been seen in American history. With the rich getting much, much richer, it means that everybody else is getting poorer. And in fact, real wages for median workers are lower today than they were in 1973. Indeed, while the inflation-adjusted income of the bottom fifth of workers fell by $6,900 between 1979 and 2007, the top 1% saw its annual income increase by $741,000!

To try to keep up with living standards Americans resorted to debt. They increased their personal debt-to-income ratio from 62% in 1980 to 130% in 2008. When housing prices fell 35% nationwide in the recent collapse, it left Americans with a smaller share of equity in their homes, 48%, than at any time since the Great Depression. The share they have lost has been taken by the banks.

In other words, all of the income and wealth gains for middle Americans from the "golden years" between 1945 and 1975 have now been wiped out. Or more accurately, have now been transferred to the very rich. The top 1% holds 34% of the nation's wealth while the bottom 50% holds just 2.5%. The bottom 40% owns absolutely nothing.

These effects and numbers can be numbing, even dizzying. But it's important to understand that they have not been the result of random events or impersonal market forces. Rather, they have followed as the intended consequences of the relentless application of a wide array of government and industry policies.

The massive run-up in debt is one such policy. The wealthy are net lenders. This means that massive public and private debt transfers interest income to them from the rest of the economy. Another method for effecting massive wealth transfer: Beginning in 1981 the Reagan administration effectively stopped enforcing anti-trust laws, allowing monopolies to gouge everyone who had to buy their products.

The government actually provided tax subsidies so that corporations could eliminate jobs in the industrial heartland and ship them to Mexico and later, China, India, and other low-wage countries, reducing wages and pitting American workers against each other for those jobs remaining.

The bank deregulation that began in the early 1980s reached its apex with the repeal of the Depression-era Glass-Steagall Act in the late nineties. This set up the "casino capitalism" of the next decade that would spawn massive criminality and mortgage fraud by the nation's leading banks - none of which has been prosecuted. The result was the greatest economic collapse since the Great Depression.

But even as more than five million homeowners have lost their homes, the wealthy had their losses covered by the Bush and later Obama administrations. Bloomberg news estimates that the transfer to the banks through the financial bailout comes to some $13 trillion dollars.

We could go on and on and on with the roster of ways the wealthy have used the government to transfer national wealth to themselves. Environmental and health laws that are not enforced. Deals with the pharmaceutical industry so they don't have to compete with foreign manufacturers. Health care "reform" that forces tens of millions of Americans to buy questionable insurance products, even as insurers continue to kick legitimate claimants off their rolls. Give-aways of the telecommunication spectrum worth hundreds of billions of dollars to media monopolies that ladle out state propaganda as if were news and never, ever challenge official narratives.

In these and a thousand other ways, the rich have conspired with the government they largely control to shift more and still more of the nation's wealth away from the working and middle classes, to themselves. It amounts to the most insidious class warfare and the most rapacious looting of public and private resources in the history of the world.

The result is vast impoverishment, demoralization, and the destruction of the American middle class. One out of eight Americans are on food stamps. One out of five people are in official poverty. One out of four children are raised in poverty. Twenty five million people cannot find enough work, while their skills atrophy and their families and communities are destroyed. These are not figures describing a banana republic, a disaster-stricken region, or a third world country. They describe the United States of America after three decades of plunder by the rich. And now they want to go in for the kill.

Not satisfied with the staggering wealth they have already siphoned away, the ultra-rich are now using Barack Obama's National Deficit Commission to propose even more brazen plunder. And the looting is no longer taking place behind closed doors or under the cover of arcane public policies.

The commission proposes to cut the federal government's budget deficit by $4 trillion over the next decade. But 75% of the "savings" will come from gutting programs that help stabilize the middle class and their communities. None of it comes from policies that would harm the rich.

For example, the commission proposes cutting the tax deduction for mortgage payments. Not only will this render housing much less affordable for millions of prospective home buyers, it will reduce housing prices, perhaps substantially, for without the tax write-off, buyers will be able to afford much less house. This will decimate the sole source of wealth of tens of millions of Americans.

It is housing wealth that undergirds retirement security for the middle class. Or, at least it did until one out of four homeowners went underwater on their mortgage in the recent bank-triggered collapse. Then, even as the Commission plans to decimate home prices and owner equity, it proposes cutting back benefits to Social Security recipients.

It would lower Social Security cost-of living adjustments while raising the minimum retirement age. And this is being proposed at the very moment that the bank-owned Federal Reserve Board is beginning to print hundreds of billions of dollars to bail out the banks from what's left of their toxic assets still held from the housing crash.

The ensuing inflation is going to destroy the value of retirement incomes at exactly the moment that 77 million baby boomers head off into retirement. It was exactly this process of money printing and bankrupting of retirees that destroyed the German middle class in the early 1920s, giving rise to Adolph Hitler.

The Commission's proposals would increase co-pays and deductibles for Medicare, making it unaffordable to millions. It proposes taxing as income the health insurance benefits millions receive from their employers. The Child Tax Credit would be eliminated as would 10% of all federal government jobs. This, at a time when more than 20% of the workforce is already underemployed and there are five workers trying for every available job.

We should be crystal clear: these policies amount to a mortal assault on what remains of middle class solvency and the democracy that a vibrant middle class makes possible.

Note from CR: At this point, many readers will want to start arguing about how horrible capitalism is and about how wonderful socialism and communism are. But capitalism is not the problem and as we have seen countless times over the past several decades, government ownership of business is not the solution to anything.

What we have in the world today is not capitalism.  Rather, it is monopoly capitalism that more closely resembles "feudalism" than anything else.  The elite are "monopoly men" who use their unbelievable wealth and power to dominate the rest of us.  In fact, it was John D. Rockefeller who once said that "competition is sin".


But even as it girds up for this assault, the Commission barely touches the ultra-rich on whose boards they serve and who have gained so much over the past 30 years. And it cannot go without being said that it was these same professional predators who actually wrecked the economy, pitching it into its greatest collapse since the Great Depression.

The Commission's proposals would actually lower the maximum tax on the highest income earners, from 35% to 24%. The nominal tax rate on corporate income would fall as well, from 35% to 26%. There is nothing proposed to raise taxes after so many decades of steadily amassed wealth. No financial transactions tax (as the IMF recommends) to stanch the kind of tsunami of speculative buying and selling that brought down the economy. Such a tax would raise over $700 billion over the next decade.

Of course, there will be no claw-backs of the trillions of dollars transferred to the rich under the phony duress of "saving the system" during the height of the financial crisis. No proposal that the cap on earnings subject to Social Security withholding should be removed. [Why shouldn't the top 1% superrich pay into the social security account that funds the rest of us? ~CR] That provision alone would raise more than half a trillion dollars over the next decade.

In fact, it is in comparison with other give-aways to the rich that the take-aways from the middle class by the Commission can be seen as so one sided and venal. Remember, they propose to save $4 trillion over 10 years.

But the war in Iraq, which we now know was entirely premised on lies, will cost more than $5 trillion, according to Nobel economist Joseph Stiglitz. It has proven a huge boon to the rich weapons makers, bankers, logistics companies and oil companies that Bush used to coddle as his "base."

As mentioned above, Bloomberg news estimates that the financial bailout cost some $13 trillion, all of it going to the very richest people on the planet. There is not a syllable in the Commission's report proposing getting any of that back to help reduce the deficit.

Or consider the notorious Bush tax cuts of 2001 and 2003 where fully 40% went to the top 1% of income earners. Obama once promised to overturn them but, as is his typically cowardly pattern, is now folding. The Center on Budget and Policy Priorities has estimated that they will cost the government more than $18 trillion over their lifetime-four times what the Deficit Commission claims it will achieve in savings. But God forbid we should ask for even a penny of that back to help battle the deficit.

In other words, there are many, many substantial and just ways that the savings the Commission proposes to create could be secured via small contributions from those who have gamed the system and gained the most over the past three decades. But that is not the Commission's plan. And it is in that omission that its true intent is revealed.

There is no more time for stealth, no more need for subtlety. Western capitalist economies are declining at a pace that is frightening their elite stewards and compelling such desperate, slovenly measures as the wholesale printing of money to postpone the inevitable. While Obama sings lullabies of "hope" and "change" to tranquillize the suckers out front, the rich are backing the truck up to the vault in the back, no longer even deigning to disguise the heist. And of course, why should they? They have the additional diversion of the moronic Tea Party vigilantes ("Keep the government out of my Medicare"), ever ready to cut other people's throats to cure their own nosebleeds.

The Commission's proposal is the most naked, undisguised declaration of class warfare possible. Its agenda is not to reduce the deficit but rather to reduce what is left of the American middle class and American workers, to a condition of servitude, of feudal peonage. Their poverty will make them docile and subservient. This will make possible the final looting of America by those whose sociopathic greed has brought it so low already. The battle over this proposal is the last bulwark against the devastation and final destruction of America. It must be fought and won or our freedom and security ceded forever. There is no other choice.


Robert Freeman writes on economics, history and education. His earlier pieces, "The Five Circles of Economic Hell," and “The U.S. is Facing a Weimar Moment,” were also published on CommonDreams.  He can reached at

--------- Here’s another article from Robert Freeman, written a week earlier:



Obama Was Used, And Is Now Used Up

by Robert Freeman

Barack Obama was used. Of course, he knew he was being used when he made the deal. But what he didn't know was how quickly he would be used up. Now he has to face two years of humiliation knowing that he betrayed the people and the country he claimed to champion - and knowing that everyone else knows it as well - but also knowing that he's gotten what's coming to him.

Obama made a deal to get the job in the first place. The deal was that he would carry on with Bush's bailout of the banks, with Bush's two wars, with Bush's suppression of civil liberties, that he wouldn't prosecute or even investigate any of the enormous fraud that had brought down the country, or the lies that had railroaded it into war.

Even before he took office, he began fulfilling his end of the bargain. He appointed Larry Summers head of the National Economic Council. It was Summers, more than any other person, who was responsible for dismantling the Glass-Steagall regulations that had acted as a firebreak against banks looting the country since the Great Depression. Summers had made millions consulting for hedge funds before taking the office.

Obama appointed Timothy Geithner Secretary of the Treasury. Geithner had been head of the New York Federal Reserve Bank, another central actor in the hear-no-evil-see-no-evil-speak-no-evil dereliction that passed for financial oversight in the Bush administration. He had been a major architect under Bush of the financial bailout that passed trillions of dollars to his former banking cohorts on the pretext of saving the system.

Obama re-appointed Ben Bernanke chairman of the Federal Reserve Board. Before becoming Fed Chair, Bernanke had been Bush's Chairman of the Council of Economic Advisers. Together with Geithner, Bernanke is the person most responsible for the collapse, the one person who could have slowed the asset bubble while it was still possible. He had been at the helm of the Fed since February 2006 and a member of its board for years before that.

Obama re-appointed Robert Gates, Bush's Secretary of Defense, signaling that there would be profitable continuity with Bush's wars, gulags, and other military expressions of empire. And then, of course, he quickly tripled the number of U.S. forces in Afghanistan even without a coherent strategy or even statement of goals.

He put together a "stimulus package" of $787 billion when reputable economists were screaming that the collapse in demand from the Great Recession was at least four times that amount. Then, in an attempt to appease the Republicans, he made one third of it business tax cuts, despite the notorious ineffectiveness of such policies in generating jobs. When states cut back their payrolls and spending in the slump, it effectively neutralized the impact of Obama's program. Yet he never seriously attempted to get more.

He proposed no jobs program to employ the seven million people who had lost their jobs. No infrastructure program to repair the failing roads, bridges, tunnels, water and sewerage systems of the country. His anti-foreclosure program was a joke. Some three million homes will go into foreclosure this year alone while one in four mortgages are under water. The share of equity that middle class Americans own in their homes is now lower than it was before World War II.

And now the conspicuous, embarrassing truth is that he's not needed any more except as a tilt-up dummy sustaining the illusion of democracy. And you can see why. The rich owners of the country who put him into office in the certainty that he would be a smooth liar, able to sell the masses on the empty opiates of "hope" and "change" - they certainly don't need him any more. Do the rundown.

The owners of the banks don't need him. They got their buddies, Obama's appointees Geithner and Bernanke, to buy their trillions of dollars of toxic sludge with taxpayer money, saving them from imminent bankruptcy. They've got the Fed loaning them money at zero percent interest so they can loan it back to the government at three percent and to payday borrowers at hundreds of percent. It is literally a free, no-risk license to print money.

The same bankers, the ones who caused the Great Collapse, got Obama to create the fiction of financial reform that left them bigger than they were before the collapse and with their exotic derivatives - Warren Buffet's "financial weapons of mass destruction" - untouched. They are making the largest profits in their history and paying themselves the biggest bonuses on record. What do they need Obama for any more?

The insurance companies don't need him. They got him to create the fiction of health care reform by requiring 32 million Americans to buy their intentionally defective products and getting middle class chumps to pay for it. Their stock prices doubled as soon as the reform bill was enacted, a pretty clear sign of what the smart money boys knew about the deal.

They got Obama to abandon his campaign promise of enacting a public option that would have actually brought down the cost of health care. So we still have a system that costs twice what any other industrial nation's system costs and which delivers inferior results. It is still on track to bankrupt the country by consuming one out of every six (soon to be one out of five) dollars spent in the economy. What do they need Obama for any more?

[Big Pharma doesn’t’ need Obama.  He has continued the policy of government subsidy of the Big Pharma backbone of a medical-industrial complex which has made drug-per-symptom medicine into a backwards standard which values a pound of treatment more than an ounce of prevention.  Under Obama, his Food and Drug Administration of these disease care standards have increasingly sabotaged holistic preventive health care with not only government-subsidized drug-pushing under Medicare and Medicaid, but also, Obama’s has now opened the door for his FDA to regulate small food businesses, local growers and farmers markets to death. ~C.R.]

The weapons makers don't need him. Since Eisenhower, they've been the king makers in American politics. They've gotten a continuation of the never-ending wars they have always been able to engineer. In fact Bush's Secretary of Defense Gates, now Obama's, commented recently that the U.S. was never going to leave Afghanistan. It's clear who's running that show. What do they need Obama for any more?

The oil and gas companies don't need him. They got the collapse of climate change legislation that they wanted at Copenhagen. Even as their products hurtle the earth toward inescapable calamity, they are left with effectively no restrictions on their poisonous products. What do they need Obama for any more?

Not having the guts to raise taxes on the rich who now corner a larger share of the nation's income than at any time since 1929, Obama has appointed a commission to recommend changes to Social Security. He loaded it with people who, even before it started, made it clear they would recommend gutting the most successful public program of the past 80 years. If past is prelude, they will likely try to turn it over to the renowned stewardship of the finance industry and the stock market, just as Bush had tried to do. It's like when only Nixon could go to China, or when only Clinton could end welfare as we know it.

From the minute he took office, he has carried out his designated role of pacifying a rightly restive populace about their economic security while shifting ever more of the nation's wealth to those who are already the most wealthy; of continuing the country's program to impose its empire on other nations by force; of dismantling historic constitutional protections of the people against intrusive and abusive government; of subordinating the people to their new corporate masters.

For a guy who's billed as a "Great Communicator" he has utterly failed to articulate any narrative whatsoever of national transformation or renewal, of rescuing the nation from the precipitous downward spiral begun under Bush, his predecessor. He couldn't even manage to pin ownership of the failed economy on Bush, even though the Great Recession started in December 2007, more than a year before Obama took office.

And finally, with legislative gridlock the only certainty for the next two years, the Federal Reserve has taken control of the nation's economic policy. Its new policy of "quantitative easing" (printing money) is not only despicable in its own right, the recourse of scoundrels and national failures (think Weimar Germany in the 1920s), it is completely undemocratic, carried out in secret by the most notoriously elitist, private institution in America. It is a capitulation to a self-anointed feudal-like autocracy without modern equal, an undisguised admission that it is the banks and their owners that run the country. And it is the inescapable result of Obama's policies.

It's hard to feel sorry for Barack Obama. When all the politics, posturing, posing and pontification are over, his party lost because he betrayed his base and they could not stomach voting for his people or his party again. He's proven himself a duplicitous executive and a feckless "leader" who has "led" the Republicans to their biggest pick-up in the House in decades. Now he has to live with it. But the damage is incalculable. It will last for generations. It will be an embarrassment to watch him try to pretend to be effective the next two years, with everyone - himself included - knowing that he is used up. But he is. Good riddance.

Robert Freeman writes on economics, history and education. His earlier pieces, "The Five Circles of Economic Hell," and “The U.S. is Facing a Weimar Moment,” were also published on CommonDreams.  He can reached at



For a simply way to understand ‘Quantitative Easing’
that is now promised to relieve the economy,
and for brilliant humor debunking the “BS”
(prevailing Belief Systems about “QE”)
watch this YouTube video cartoon.