The 21st Century: An Era Of Fraud – Paul Craig Roberts


Paul Craig Roberts

(RINF) – In the last years of the 20th century fraud entered US foreign policy in a new way. On false pretenses Washington dismantled Yugoslavia and Serbia in order to advance an undeclared agenda. In the 21st century this fraud multiplied many times. Afghanistan, Iraq, Somalia, and Libya were destroyed, and Iran and Syria would also have been destroyed if the President of Russia had not prevented it. Washington is also behind the current destruction of Yemen, and Washington has enabled and financed the Israeli destruction of Palestine. Additionally, Washington operated militarily within Pakistan without declaring war, murdering many women, children, and village elders under the guise of “combating terrorism.” Washington’s war crimes rival those of any country in history.

I have documented these crimes in my columns and books (Clarity Press).
Anyone who still believes in the purity of Washington’s foreign policy is a lost soul.

Russia and China now have a strategic alliance that is too strong for Washington. Russia and China will prevent Washington from further encroachments on their security and national interests. Those countries important to Russia and China will be protected by the alliance. As the world wakes up and sees the evil that the West represents, more countries will seek the protection of Russia and China.

America is also failing on the economic front. My columns and my book, The Failure of Laissez Faire Capitalism, which has been published in English, Chinese, Korean, Czech, and German, have shown how Washington has stood aside, indeed cheering it on, while the short-term profit interests of management, shareholders, and Wall Street eviscerated the American economy, sending manufacturing jobs, business know-how, and technology, along with professional tradeable skill jobs, to China, India, and other countries, leaving America with such a hollowed out economy that the median family income has been falling for years. Today 50% of 25 year-old Americans are living with their parents or grandparents because they cannot find employment sufficient to sustain an independent existance. This brutal fact is covered up by the presstitute US media, a source of fantasy stories of America’s economic recovery.

The facts of our existence are so different from what is reported that I am astonished. As a former professor of economics, Wall Street Journal editor and Assistant Secretary of the Treasury for Economic Policy, I am astonished at the corruption that rules in the financial sector, the Treasury, the financial regulatory agencies, and the Federal Reserve. In my day, there would have been indictments and prison sentences of bankers and high government officials.

In America today there are no free financial markets. All the markets are rigged by the Federal Reserve and the Treasury. The regulatory agencies, controlled by those the agencies are supposed to regulate, turn a blind eye, and even if they did not, they are helpless to enforce any law, because private interests are more powerful than the law.

Even the government’s statistical agencies have been corrupted. Inflation measures have been concocted in order to understate inflation. This lie not only saves Washington from paying Social Security cost-of-living adjustments and frees the money for more wars, but also by understating inflation, the government can create real GDP growth by counting inflation as real growth, just as the government creates 5% unemployment by not counting any discouraged workers who have looked for jobs until they can no longer afford the cost of looking and give up. The official unemployment rate is 5%, but no one can find a job. How can the unemployment rate be 5% when half of 25-year olds are living with relatives because they cannot afford an independent existence? As John Williams (shadowfacts) reports, the unemployment rate that includes those Americans who have given up looking for a job because there are no jobs to be found is 23%.

The Federal Reserve, a tool of a small handful of banks, has succeeded in creating the illusion of an economic recovery since June, 2009, by printing trillions of dollars that found their way not into the economy but into the prices of financial assets. Artificially booming stock and bond markets are the presstitute financial media’s “proof” of a booming economy.

The handful of learned people that America has left, and it is only a small handful, understand that there has been no recovery from the previous recession and that a new downturn is upon us. John Williams has pointed out that US industrial production, when properly adjusted for inflation, has never recovered its 2008 level, much less its 2000 peak, and has again turned down.

The American consumer is exhausted, overwhelmed by debt and lack of income growth. The entire economic policy of America is focused on saving a handful of NY banks, not on saving the American economy.

Economists and other Wall Street shills will dismiss the decline in industrial production as America is now a service economy. Economists pretend that these are high-tech services of the New Economy, but in fact waitresses, bartenders, part time retail clerks, and ambulatory health care services have replaced manufacturing and engineering jobs at a fraction of the pay, thus collapsing effective aggregate demand in the US. On occasions when neoliberal economists recognize problems, they blame them on China.

It is unclear that the US economy can be revived. To revive the US economy would require the re-regulation of the financial system and the recall of the jobs and US GDP that offshoring gave to foreign countries. It would require, as Michael Hudson demonstrates in his new book, Killing the Host, a revolution in tax policy that would prevent the financial sector from extracting economic surplus and capitalizing it in debt obligations paying interest to the financial sector.

The US government, controlled as it is by corrupt economic interests, would never permit policies that impinged on executive bonuses and Wall Street profits. Today US capitalism makes its money by selling out the American economy and the people dependent upon it.

In “freedom and democracy” America, the government and the economy serve interests totally removed from the interests of the American people. The sellout of the American people is protected by a huge canopy of propaganda provided by free market economists and financial presstitutes paid to lie for their living.

When America fails, so will Washington’s vassal states in Europe, Canada, Australia, and Japan. Unless Washington destroys the world in nuclear war, the world will be remade, and the corrupt and dissolute West will be an insignificant part of the new world.

Dr. Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following. Roberts’ latest books are The Failure of Laissez Faire Capitalism and Economic Dissolution of the West, How America Was Lost, and The Neoconservative Threat to World Order.

  • ShotGunRock.Com

    The U.S.A. was abolished in 1949 when the pentagon and the national guard pledged themselves to serve the British Crown in permanent military union. N.A.T.O. is blatant treason. There is no American empire. There is only the British Crown and its vassal servants.

    • alexander the new yorker

      the secret owners of the private, central bank are the only major Trillionaire family dynasty (worth 100s of trillions)
      the British royal family dynasty are the only minor Trillionaire dynasty (worth a few trillion)
      Everybody else is just a Billionaire at best.

  • Carroll Price

    In my opinion, this is one of the best, most comprehensive columns PCR has written in awhile. The only thing that puzzles me, and probably puzzles PCR as well, is how the money managers have managed to avoid a financial collapse as long as they have.

    • Dimitri Ledkovsky

      By doing everything conceivable to maintain dollar hegemony. This includes major tonnage of money from nothing. It’s the only export the USA has left.

    • Trisha Holmeide

      Why do you think Obama has worked so hard to get more immigrants into this country–he can pledge their arms and legs into servitude and get more loans from the fed using the potential work of more slaves.

  • geo1671

    Only sure cure for USA ills–abolish the two party system with all independent candidates.And no President or leader. How is it–USA presidents rarely appear in Senate or Congress–what do they do during the day?

    • Trisha Holmeide

      Actually, the entire federal structure needs to be collapsed and put back within it’s constitutional boundaries with the states in control–which people are working on as I write. Those in power will not easily cede it back to it’s rightful owners, but when the money is denied the beast it will die of attrition.

  • Broos

    JE$T 1 example of the CPI year-to-year Proportional FRAUD. Its not exceeding 0.5% over the previous year has “justified” NO Social Security or federal retirement COLA in 3 separate years of his 0bamanable precedential term! The BarBarack REALITY is that Increased Health Insurance BILL$ ALONE have AVERAGED 0.5% INFLATION, Not COUNTING other Cost-of-Living INCREA$E$ !! He’s $ickening US, $tealing From US and $tarving US Out, “folks” !!!

  • Billca

    Agreed. Plus FDR extended the depression of ’29 with his massive works projects. That included trying to stack the supreme court in his favor to support his New Deal programs. The social security plan, while a ponzi scheme in reality, might have worked if it had been left alone.

    What PCR fails to address in his article is WHY corporations have moved manufacturing offshore and stack up billions of dollars in offshore banks. The increasing appetite of the government for both taxes and regulation of businesses over the last 75 years has driven many jobs overseas. It’s not the workers’ wages that produce drags on earnings. It is the burden of record-keeping and regulatory compliance that increases costs without adding to the product.

    And all those taxes, regulations and rules have been propagated by Congress. And which party has controlled Congress the majority of that time? The party of big government, taxes and regulation. Democrats have controlled both houses about 70% of the time in the 20th century and have created the mess we’re in now.

    • alexander the new yorker

      It’s the increasing appetite of corporations for superprofits and tax avoidance which drives jobs overseas.

      • Billca

        Do you have any CFOs or Corporate comptrollers in your family? We do. Plus several in our extended family (in-laws). Some of the regulations for certain products are absurdly burdensome and can add as much as 40% to the cost of products. That’s money spent that’s not related to the cost of goods, cost of labor or the cost of facilities. It costs even more if you produce things like food, drugs and certain other products. That’s money not available for R&D for new products, investment dividends, worker compensation or better benefits for employees. Depending on your business you spend money to comply with the IRS, OSHA, FDA, USDA, SEC, and EEOC. Now add some duplicate state agencies, sometimes 50 of them if you’re nationwide.

        Keeping overseas operations segregated from on-shore operations is one way to avoid substantial tax problems. In some cases the taxes a business has to pay can double if they don’t – such as when both the US and overseas country tax profits.

        • alexander the new yorker

          both in individual and collective life, we need to find the correct balance.

  • JosephConrad

    I asked my father at age 7 if Good always triumph over Evil i n the end. He said, ‘Yes, but Good must be very Careful… After the US-led invasion Iraq, he added a codicil. He said, ” SOMETIMES, GOOD MUST BE BAD TO BE GOOD.



  • Leland Mellott

    There are no Moneylenders in the House Of The WORD.
    When all debts in this world have been forgiven and when a large portion of this world’s population has agreed that money is being earned in time instead of by labor, a planetary power shift will have taken place.
    Many lives will be saved.