australianvoice (australianvoice) wrote,

2016 US Election: Main Street vs Wall Street

Our media talks as if there is only one economy, but really there are two: the economy of things and the economy of money. The focus of media attention is always on interest rates, stocks, bonds, futures, currency trading, etc. These are all part of the economy of money known as Wall Street. On Wall Street you make money from money.

The economy of things involves the production and sale of things to be used by everyone in their daily lives. The production of cars, wheat, bread, clothes, houses, roads, steel, computers etc. are all part of the economy of things on Main Street. On Main Street you make money by making things. These two economies are connected in that the control of the economy of things on Main Street takes place in the world of money on Wall Street.

The US political system has been taken over by too-big-to-fail banks and corporations that make up Wall Street. Both major parties in the US are controlled by Wall Street. The novelty of the Trump campaign, which many have trouble understanding, is that Trump represents the old capitalist enterprises of Main Street – the young Henry Ford – and the workers in these industries.

Trump's opponents are the financiers and bankers from Wall Street who support Hillary Clinton. They have made themselves very wealthy by destroying the Main Street capitalist industries which gave the US its dominant position after WW II.

Most commentators focus on the personalities of the candidates and their daily sound-bites in a never-ending chatter which makes people think they know what is going on. In fact, it simply hides the forces which lie behind the candidates. We can see the difference between Clinton and Trump by using an article by Pepe Escobar entitled “Could Trump Pull Off a Post-Party Coalition?” posted in August this year.(1) It is invaluable not because of his prediction about the election – Trump won't win – but because of his analysis of the economic interests in the US that Clinton and Trump represent.

Escobar's description of Hillary Clinton starts like this: “Hillary Clinton, Queen of Chaos, Queen of War, Golden Goldman Girl (…) the official bipartisan candidate of US neocons and neoliberalcons alike.”(2)

'Queen of Chaos' refers to his description of the US Empire as the Empire of Chaos in a book with the same title.(3) Escobar then lists the interest groups that support Hillary. Her power comes from the fact she wants to advance these interests both in the US and throughout the world.

“Certified add-ons include Wall Street; selected hedge funds; TPP cheerleaders; CFR (Council on Foreign Relations) interventionists; media barons; multinational corporate hustlers; in fact virtually the whole exceptionalist US establishment, duly underwritten by the bipartisan, mega-wealthy 0.0001%.”(4)

The groups represented are:

-Large investors: Wall Street and hedge funds.
-The 500 multinationals behind the TPP and other “trade” agreements.
-Media barons like Rupert Murdoch: There are only a handful of them and they control all respectable sources of information.
-Mega-wealthy 0.00001%: the super-rich investors who control and profit from our financial system.

There are also the “think-tanks” like the influential Council on Foreign Relations and rest of the exceptionalist US establishment who carry out the plans of the groups listed above. What is an 'exceptionalist'? Accoring to President Obama they believe “America must always lead on the world stage.” In other words, the US knows what is best for all the countries in the world. It takes upon itself the job of “Policeman of the World” to make sure other countries do the right thing whether they want to or not.

So Hillary works for and is supported by the largest banks, multinationals and investors who direct US foreign and domestic policy in a way that will maximize their profits. As Escobar notes, where does that leave the egomaniac billionaire outsider Donald Trump? The man “who somehow dreams he can game the whole system on his own, moved by his inexhaustible chutzpah.“

He explains that Trump “has been demonized with medieval fervor by US corporate media.” These are the media barons who support Hillary. However these attacks actually play into Trump's hand because it gives him “widespread sympathy among the angry, semi-destitute, non-college educated white masses” who have grown to hate and distrust that corporate media and the US establishment anyway.

If the “establishment” is against him, who are his supporters? Escobar believes there are “powerful business interests discreetly supporting Trump” based on his opposition to two key policies of the globalist neo-liberal investors.

First, Trump opposes the deliberate destruction of US industries by rigged currencies.
The neo-liberals have for years encouraged a high value for the US currency against other currencies, which makes imports cheaper and US exports for expensive for other countries. Second he opposes the “destruction of the wages of American workers by importing illegal cheap labor from dollar-a-day wage nations.” This is what is behind his attacks on immigration policy.


Trump's backers want to:

-Stop bank credit for currency manipulation, or for cash settlement market rigging.
-Stop bank credit for speculation and absolutely none for hedge funds.
-Wipe out speculative vehicles by huge taxes on short-term trading profits.
-End tax concessions on borrowing.

In other words Trump wants to totally change the US financial system which has concentrated on funding speculation to generate short-term profits. As Escobar explains:

“That, in a nutshell, explains Wall Street’s visceral aversion to Trump – from the Bloombergs to the Lloyd Blankfeins. Anyone familiar with Wall Street knows every market, commodity and indexes are rigged by cash settlement manipulations. As a New York-based Trump backer puts it, “This alone is sufficient reason to support Donald J. Trump. We should make the Carl Icahans and George Soroses do real work by taxing away their speculative profits. We need Henry Fords in this nation who create and build industries, and not Wall Street looters.”(5)

The policies advocated by Trump are calculated to advance the interests of manufacturing industries in the US and their workers. One person who realizes this is Michael Moore, a Democrat and supporter of Clinton in this election. This is his assessment of where Trump's strength lies:

“I believe Trump is going to focus much of his attention on the four blue states in the rustbelt of the upper Great Lakes – Michigan, Ohio, Pennsylvania and Wisconsin. Four traditionally Democratic states – but each of them have elected a Republican governor since 2010 (only Pennsylvania has now finally elected a Democrat). In the Michigan primary in March, more Michiganders came out to vote for the Republicans (1.32 million) that the Democrats (1.19 million). Trump is ahead of Hillary in the latest polls in Pennsylvania and tied with her in Ohio. Tied? How can the race be this close after everything Trump has said and done? Well maybe it’s because he’s said (correctly) that the Clintons’ support of NAFTA helped to destroy the industrial states of the Upper Midwest. Trump is going to hammer Clinton on this and her support of TPP and other trade policies that have royally screwed the people of these four states. When Trump stood in the shadow of a Ford Motor factory during the Michigan primary, he threatened the corporation that if they did indeed go ahead with their planned closure of that factory and move it to Mexico, he would slap a 35% tariff on any Mexican-built cars shipped back to the United States. It was sweet, sweet music to the ears of the working class of Michigan, and when he tossed in his threat to Apple that he would force them to stop making their iPhones in China and build them here in America, well, hearts swooned and Trump walked away with a big victory that should have gone to the governor next-door, John Kasich.”(6)

So who votes for Trump? The people who have been hurt over the last 30 years by the destruction of manufacturing in the US and moves to drive down wages by allowing immigration from low-wage countries. “Trump’s backers consider the real unemployment rate to be a whopping 23% today, based on the 1955 Bureau of Labor Statistical Methodology, and not the rigged statistics of today.”(7)

Accoring to Escobar, the Masters of the Universe are the real deciders of the policy toward Russia. A business source explained to him:

“As far as Russia is concerned, the issue is decided from above, and that is where the battle has been. The decision is above Hillary and Donald, and Hillary will be ordered to create a rapprochement if she is elected, if that is what is decided. If Trump wins, it is easy; and if he doesn't, then the fact he brought it up will be used as a catalyst for policy changes toward Russia. The fight is behind the scenes now.”(8)

While Michael Moore thinks Trump might win because he is more popular than Hillary Clinton, Escobar has a more sober assessment:

“There’s no evidence such an ambitious – and contentious – agenda can be sold to movers and shakers from JP Morgan to the Koch brothers. Trump creating a cross-party, trans-party or even post-party movement will only succeed if substantial players in the Power Elite are behind it, and there are no signs of this happening.”(9)

Remember the US is the great beacon of democracy in the world. Does every democracy need bankers like JP Morgan to make it work?


3. Empire of Chaos: The Roving Eye Collection:
6. Michael Moore: 5 Reasons Why Trump Will Win
Tags: archive, united states

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