FINANCIAL OLIGARCHY RUINING THE ECONOMY
“… recovery will fail unless we break the financial oligarchy that is blocking essential reform. And if we are to prevent a true depression, we’re running out of time.” The Atlantic, May 2009
Many believe that the US has become a financial oligarchy with large financial firms running the government. There is certainly evidence to that effect. Bailouts focused almost exclusively on “big banks.” The cozy interchange of personnel between Wall Street and Government aroused the ire of citizens and some in Congress. “Government Sachs”, once humorous, is now a pejorative. Anger over the secrecy of the Federal Reserve mounts. Corruption and cronyism dominate discussions of what is wrong in Washington.
Simon Johnson is a Professor at MIT (Sloan School of Management) and former Chief Economist at the International Monetary Fund. Dr. Johnson’s experience and expertise provide him with a unique perspective on our economic problems. In The Quiet Coup, an article from Atlantic magazine, he shares his views.
Dr. Johnson observed similar financial crises at the IMF and as consultant to various governments. Usually these crises were in third-world economies. Despite the size of our economy , Johnson believes the current and developing financial condition of the US is little different from an emerging country. According to Dr. Johnson, the common denominator in all financial crises is governmental capture by private, powerful interests. In our case, the oligarchy is the fusion of the financial sector and the
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