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IPFS News Link • General Opinion

Strip-Mining The Middle Class: Neoliberalism Comes Home To Roost

• https://www.zerohedge.com by Charles Hugh Smith

Neoliberalism loves markets, because markets enable the wealthy to own everything that produces income and capital gains. Neoliberalism--the superficially attractive notion that opening local markets to global capital generates prosperity for all involved--is all fun and games when it's stripmining some distant developing-world nation, but since opportunities have dried up globally, the stripmining machine has come home to America and its target is America's middle class.

I have long called this the Neocolonial-Financialization Model: in essence, Neoliberalism is a new, improved version of the old Colonial Model, in which the capital-rich colonial power grabs the political and economic reins via force or subterfuge and proceeds to strip the colonized nation of its wealth and resources and exploits its labor force to manufacture cheap goods for home markets.

In Neocolonialism, the forces of financialization (debt and leverage controlled by central banks and banking cartels) are used to indenture the local populace to the financial center: the peripheral "colonials" borrow money to buy the finished goods sold by the "core" corporations, doubly enriching the center with:

1) interest and the transactional "skim" of financializing assets such as real estate, and

2) the profits made selling goods to the debtors.


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