President Obama is ramping up his phony progressive campaign rhetoric, trying to once again masquerade as something other than a Wall Street servant. But this time around, he is weighted down by his actual record in office, which shows Obama to have been a savior to the bankers and money speculators.
Now, the president has joined with Republicans to create a whole new class of con men and corporate criminals who will further fatten the fees of banksters by blowing up another multi-trillion dollar bubble of doomed and fraudulent hi-tech firms.
To add insult to injury, Obama, his congressional Democrats and his Republican soul mates had the nerve to set the stage for this disaster by passing something they called a "JOBS" bill. Of course, there are no jobs in the bill. The acronym stands for "Jumpstart Our Business Start- Ups Act," and it’s an invitation to a con game.
The new law, passed by 73 senators with Obama’s enthusiastic endorsement, allows corporations with less than $1billion in revenues Â that’s a billion, as in a thousand million Â to avoid hiring a professional auditing firm for five years after the company begins selling stock to the public.
That means five long years of taking other people’s money without having to tell the truth about how your business is really doing. The scheme is designed to encourage what the money guys call "crowd funding" on the Internet, with little oversight by regulators.
Make no mistake: this is not an opportunity for those of you who want to open up a restaurant or a bar or a bookstore. Companies making less than $75 million can already avoid being subjected to professional audits; this bill extends the privilege to corporations at the billion dollar mark, who can now ensnare investors in their webs for twenty consecutive quarters without backing up a word of their sales pitch.
Of course, the banksters that handle these transactions and the Wall Street gamblers who bet on them will get over like fat rats Â for a while. And then it will all come tumbling down, just as President Bill Clinton’s Dot.com bubble did at the end of the roaring Nineties. The collapse destroyed $5 trillion in investments, and led to the first George Bush recession, from which Black folks did not have a chance to recover before being crushed again by the meltdown of 2008.
Where did this phony "JOBS" bill come from? From the bowels of the Obama administration, where the task of creating employment is the purview of the President’s Council on Jobs and Competitiveness, packed with corporate executives from General Electric, Intel, Citigroup, Xerox, Boeing and American Express.
Organized labor was adamantly opposed, seeing no jobs in the bill. But Obama doesn’t listen to unions, because he knows they will take an infinity of abuse rather than fight with a Democratic president. And the Black misleadership class has made itself totally irrelevant.
The lesson here is: late stage capitalism, which is incapable of creating real jobs in the United States, is pinning its hopes on inflating another hi-tech bubble to keep the casino wheels spinning for a few years. When the bubble bursts, they are confident that a bailout will be made available, no matter which party is in office.
And the public will pick up the pieces.
April 10, 2012