CORPORATISM WATCH: A LOOK BACK AT GM, A LOOK FORWARD ATFORECLOSURE FRAUD

“I have to teach this Obama something about capitalism” — Hugo Chávez.

This was in the wake of the government takeover of GM, chronicled very well right here by B´Man who used this piece by Greg Palast to make the same point Chávez made.

The latter, of course, is a bright man with a very needling yet accurate sense of humor. He knew that while he calls his government “socialist,” it is hardly that, and he knows his reputation in the American propaganda is as some kind of communist dictator, so he took an opportunity to make a very deeply finessed joke. The essential truth at the heart of the joke is while the “socialist” Republic of Venezuela is, like almost all countries, an economic mix of public and private ownership of productive capacity. They vary as to percentage, but all self-governing nations can be said to be “capitalist” in the main with greater or lesser degrees of “socialist features.”

The United States is not one of those countries because it is neither “capitalist” nor “socialist” nor the common blend of the two. It is a CORPORATIST EMPIRE. The wealth and productive capacity of the USA is largely controlled by a triad of the largest banks and corporations, all branches of government by mostly the executive and legislative, and a PRIVATE CENTRAL BANK the world knows as THE FEDERAL RESERVE.

Thus, the country which claims to be the example of capitalism in action, has no respect for the natural rules of capitalism and I don´t need to discuss the role of regulation and/or oversight either to prove it.

One of those natural, commonsense, laws of capitalism is THE LEVELS OF SENIORITY OF CORPORATE FINANCE. Without the existence of this ladder, capitalism could not function. There would be no incentive to lend money and there would be no incentive for any single person to commit themselves to any job at all. The only logical choice would be, as was in the case of the USSR, for everyone to steal everything that wasn´t bolted down at their place of employment.

Palast lays out the case of the government takeover of GM and concurrent theft of workers´and lenders´money and rights to benefit itself and the banking-cartel, at the expense of the natural order of seniority of corporate finance.

(An aside: Chávez and Argentina´s President Cristina Fernández De Kirchner have bragged about allowing the process of seniority of levels of corporate finance to work itself through failing companies and have created 1000s of millionaires out of normal unionized workforces who were able to use their top rung on the ladder of finance to take over failed companies and make successes of them. 1000 millionaires are better than one billionaire screwup, no?)

So, EXHIBIT A, in exactly how the USA is a corporatist empire, not a democratic republic with a mixed economy. H/T again to B´Man for his post from the Summer of 2009.

Grand Theft Auto: How Stevie the Rat bankrupted GM

It is not just the executive and legislative branches of government of the USA which violate another natural tenet of capitalism, THE ILLEGALITY OF FRAUD.

Another aside, this one with more American relevance!: while I have a great deal of respect for Ron Paul, I certainly don´t agree with his free-market absolutism because it does not appear that he has thought through the endgame of it. All that would happen is, while the government might be severed from the corporations, the result would be overt feudalism in the country with the world´s greatest wealth and income concentration. To be fair to Paul, however, he asserts that the laws against fraud properly enforced are better than a corporatist government whose regulation and oversight are themselves fraudulent. I agree with this part of his explanation, though I find it necessary, but hardly sufficient, because the laws pertaining to fraud are completely disregarded as the Palast piece and the following show.

So, EXHIBIT B in our ongoing case against corporatism.

The judicial branch of government at the behest of the banking cartel and executive branches is participating in a cruel fraud against the American homeowner by creating a quasi-governmental, quasi “private,” agency called MERS to rob homeowners of their rights and to speed up the foreclosure process as a gift to the banking-cartel.

Factbox: The role of MERS in foreclosure furor

Once you´ve read it, and understood why it´s a fraudulent entity, watch this video of Matt Taibbi explaining to Cenk Uyger why this is so.

Now, have a look at a chart which partially shows the slicing and dicing and repackaging and sales and trading of mixed mortgages.

My point here is to emphasize that the dispersion of millions of tiny pieces of millions of mortgages to entities far and wide and completely unaccounted for leave any fraudulent entity like MERS or any special courts meant to speed up the foreclosure of homes are not LEGAL. They violate federal laws against fraud, conspiracy, obstruction of justice, restraint of trade, and are wholly unconstitutional because they violate due process and the so-called “takings clause.”

What Taibbi alludes to and I specify is that the “plaintiffs” in these “judicial foreclosures” are not necessarily entitled to pursue foreclosure because as it seems, THEY ARE NOT THE BENEFICIAL OWNERS OF THE HOME LOAN. Thus, they are not the “aggrieved parties” to any foreclosure court proceeding and have no business trying to force anyone out of their homes. Only if the actual beneficial holders of the loans are able to repackage them into the original loan itself (or some threshold percentage of it) can they bring a claim of foreclosure against a homeowner. A bank which briefly owned an MBS/CDO and no longer has any title to any tiny slice of any mortgage in it is plainly not an aggrieved party and ought by law, normal business practice, and the US Constitution, have no right to try to seize something they don´t own only to make yet more free money and oppress yet more people.

But if you look at these two examples, you see that in the Imperial Corporatist States Of America, THERE IS NO LAW, THERE IS NO NORMAL BUSINESS PRACTICE, AND OBVIOUSLY THERE IS NO CONSTITUTION.

There is only a corporatist empire, a police state and all the oppression, coercion, expropriation, and RULE OF FRAUD that accompanies an empire.

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