Some people all they want is power, and will do whatever it takes to get it. Larry Summers is the ultimate example of this. Summers version 2015 just found that the mood is changing, and condemns 100% Summers, version 1990s, when he was Secretary of the Treasury under that class act, Bill Clinton (from dirt poor to dirty rich).
Two immediate family members of Summers were Nobel Prizes in economy.
Summers was part of a clique of young PhDs in economics who studied how to get rich and influential at MIT and Harvard around 1979. Paul Krugman, one of them, lauds them all the time. I sent a scathing comment on the whole mood of economics as the golden calf. It did not get published.
FDR planted a mighty tree, the separation of money creation from financial conspiracy. Larry Summers uprooted it.
Here is my suggestion for Larry Summers’ Family Crest: Who Uproots, Destroys. Summers uprooted the financing of the real economy, and thus destroyed it. As corruption went up, innovation (true innovation, science based) went down.
Corruption is a barrier to innovation, warns Alina Mungiu-Pippidi, in Nature. Greater scrutiny of public spending is needed if science and technology are to fulfil their potential, she intones. However, there is more pernicious than that: when private spending and practice is deregulated by government.
After, deregulation of private practice is how, around 1620, slavery was made lawful in the future USA.
Another of the Harvard-MIT economist conspirators was Mario Draghi.
All these plotters literally knew each other, saw each other, talked to each other, learned form each other… How to please their masters. Mario Draghi got his PhD from MIT, in 1979. Later Draghi became vice chairman at the financial conspiracy outfit Goldman Sachs, and “trustee” at various USA plutocratic institutions of high repute (Brookings, Princeton, etc.).
Draghi is now in charge of giving money to giant private European banks. So they can become richer: then the money will trickle down to European pigeons, and they can thrive, eating the crumbs.
American plutocrats know and trust Draghi. Europeans don’t know anything about him, except they believe he is European (I know better: plutocrats belong to Hades, not the real world).
Larry Summers was put in charge of removing all regulations that this traitor to the plutocratic principle, or, more exactly, trickle down, Franklin Roosevelt, had instituted in 1933.
What had FDR done?
Basically banks create money. So they are agents of the government. Thus they ought not to intervene all over the economy, and, in particular, finance, without important limits to their powers.
Summers removed these limits.
The effect on High Finance was absolute power, thus absolute corruption.
The green light given to bankers to corrupt all of society had an effect on other mighty economic actors.
Those worthies felt a green light had also been given to them, implicitly: if the bankers could use their money creation capacity mandated by the government, to enrich themselves and their friends to infinity, why not the same for all?
Why could not fossil fuel plutocrats corrupt scientists and the media, and claim it was totally OK to augment CO2 in the atmosphere by
The democrats were in power in Congress starting in 2006: they did not stop Bush. The democrats were in absolute power just after Obama got elected: they pursued the program of rescue of the plutocracy, complete with tax cuts for the hyper rich.
Obama, to get elected, needed to mobilize those who do not usually vote, because they do not believe that whatever they do will change anything.
Nowadays so-called “democrats” in the USA are in a bind: to get their champion elected, they need the champion to mobilize those Obama mobilized, and who got very little in exchange.
Moreover, the plutocracy got entrenched in the meantime. To change this would require a revolution. Re-evolving.
Re-evolution is something the People may support, if it believed in it. To avoid it, it’s called “Populism” (sounds like Nazism, Socialism, Communism, Liberalism, Nationalism, Islamism, all pejorative notions).
Fast forward to the New York Times. A long ode to Summers called “Establishment Populism Rising.” by Thomas B. Edsall. Here is how it starts:
“Larry Summers, who withdrew his candidacy for the chairmanship of the Federal Reserve under pressure from the liberal wing of the Democratic Party in 2013, has emerged as the party’s dominant economic policy strategist. The former Treasury secretary’s evolving message has won over many of his former critics.
Summers’s ascendance is a reflection of the abandonment by much of the party establishment of neo-liberal thinking, premised on the belief that unregulated markets and global trade would produce growth beneficial to worker and C.E.O. alike.
Summers’s analysis of current economic conditions suggests that free market capitalism, as now structured, is producing major distortions. These distortions, in his view, have resulted in gains of $1 trillion annually to those at the top of the pyramid, and losses of $1 trillion every year to those in the bottom 80 percent.”
One has to pinch oneself. Summers has of course zero credibility. Trusting him on economics and social questions would be trusting an enemy. Summers put the entire planet on the wrong trajectory. He is part of a coterie mainly centralized on Harvard, which insisted on raping, pillaging, and letting Russia being devoured by plutocrats created ex-nihilo, because, for Harvard types, plutocracy is an absolute good, just as for Saint Louis Catholicism was an absolute good worth killing the world for.
The destruction of the Russian economy (more exactly a lowering of Price Purchase parity, within Russia, of at least 40%) was just one facet of their maelstrom of destruction these USA based public-private plutocrats visited on the world.
The result, in the case of Russia, is the rise of Putin, someone who advocates using nuclear weapons on Warsaw if his conventional attacks get in trouble. Why? Because, as the entire West propaganda and governments lauded, for more than twenty years (time flies), the Rubin-Goldman-Sachs-Summers-Clinton-Greenspan view of the world, Putin just got mad with rage. Rightly so.
But the damage is not confined to Putin. All over the world, from Xi to Assad, to all and any politicians in Brazil, Larry Summers and his ilk preached. They preached that corruption and plutocratization ought to have no limits, as long as the gullibility of We The People went along.
“Forgive your enemies, but never forget their names.”
— President J.F. Kennedy.
The elite is fearing the hatred, which is growing. Even in the naturally rich USA. The rapacious elite wants to marshal the anger, to drive it to a safe place. Safe for itself to keep on enjoying Earth a little bit more, as its feudal domain. It is a race between knowledge and folly.