Capitalism and Slavery- Rogue Economics

in making his holiday as birthday a federal holiday succeeds thank you as we turn now to our last segment US Treasury Secretary Henry Paulson will unveil his blueprint today for the biggest overhaul of financial regulations since the Great Depression as the dollar continues to sink in the credit crisis continues to grow Paulson's expected to outline the Bush administration's plan for Washington's role in the market but some analysts suggest the proposal will have little to do with the real scope of the current crisis in an article in the Chicago Tribune Italian economist journalist author Loretta napoleoni argues recent events on Wall Street indicate a much larger upheaval and could quote signal the end of the roaring 90s nearly two decades of easy money cheap credit and soaring global debt it's an argument in poliana develops in her latest book called rogue economics capitalism's new reality we're joined right now by Loretta napoleoni just before she heads back to London thank you very much for being with us thank you for inviting me what do you mean by rogue economics rogue economics is a sort of umbrella under which we find the criminal economy the illegal economy but also those gray areas gray areas where there is not a proper regulation where there is not legislation for the economy now this gray areas in this particular crisis have been created by globalization now this happens generally when there are great transformations we have seen it during the industrial revolution but we also seen it during the crisis in 1929 the economy suddenly start moving faster than politics and politics can't manage to keep pace with it so can manage to regulate the economy so the current crisis is the product of the 1990s on the easy money cheap credit of the 1990s you begin your book with a very provocative idea of democracy and slavery coinciding in many different countries at many different times yes that's one of the phenomenon of rogue economics so I found a career relation between the spreading of democracy after the fall of the Berlin Wall and the rise in slavery now s country's former communist countries became so-called democratic people started to be enslaved by their own countrymen the first example is the most shocking example I would say is the rise in sex slave in also prostitution in Western Europe women from the former Soviet bloc were lured into prostitution sex slavery by the Mafia this women were desperate because with the collapse of the communist economy they were unemployed I mean women unemployment went from virtually zero before the fall of the wall to eighty percent this women were desperate they had to feed their own children so they became prostitute so this is just one of the example but we also see this phenomenon in the past I mean decolonization actually boosted slavery as foreign powers withdrew from the colonies people were enslaved by their own countrymen and we see it in Africa we see it in Asia X give more examples well I think one interesting example for examples what's happening in a certain sector for example the cocoa production in the Ivory Coast the majority on the cocoa that we eat it is actually produced by young kids which have been enslaved in the plantation of the Ivory Coast every course is the largest producer of cocoa now why does this happen this happens for a series of complicated reasons which are in also the economic dependency of Africa from industrialized countries so I mean these are large multinational corporations there are cocoa companies absolutely cocoa companies controlled by a group of multinationals so it's coffee coffee is controlled by two main multinational which is Nestle and Starbuck so sometimes when we drink our coffee we don't know that this coffee is actually produced by slave that is produced through exploitation of growers in Africa and this is because of the globalization market and what about going back in history to slavery in this country in the United States well the thing to do what we're facing today is something very very similar to what's happening in these countries you know centuries ago because when I talk about slavery I do not talk about the new form of slavery I talk about people who are deprived of their freedom who are forced to work for you know the slave traders who are given only the sustenance to survive and nothing else it is true slavery do you view the US economy as a rogue economy yes of course the US economy it is a rogue economy all Western economies at the moment a rogue economy for the simple reason that politics has lost control of the economy and I'll give you an example this decision of President Bush for example to give a tax rebate could end up being a rogue maneuver without even the President or the administration wanted that so we give a tax rebate to people in order to boost consumption but if these people buy products we are which are produced abroad for example in the Far East and China the benefit of this new consumption is not gonna stay inside the US economy and that's one aspect the other aspect is how many people will use the tax rebate to pay back part of the credit card debt because you know bankruptcy personal bankruptcy in this country in 2006 was the rate of growth was higher than the rate of growth of the GDP this is country this is a country which is in serious economic problems you talk about high tech as a mixed blessing why well I take it mr. Lessing because to a certain extent he gave us the possibility to spread information the Internet of course all over the world here we are and people can watch us which is fantastic but at the same time the Internet has become a new vehicle for deaf for criminal activities prostitution pornography and so on and so forth we for example pornography child pornography is the biggest business in the internet so why is a Miss Black Sea because nobody can control the internet so that's a very good example of rogue economics back here in this country the bailout of bear stearns the intervention of the fed your analysis of that I think that's very much in line with what has happened in the United Kingdom with Northern Rock the the panic at the moment is that if one bank Falls then we're going to have a domino effect so this is exactly what has happened in 1929 the the crash of 1929 was not really the cause of the depression because of the depression was the failure of banks and people panicking so what the Fed is trying to do is that is trying to prevent another massive failure of banks now why burns turn ended up in that situation that's the key question why was a bank allowed to borrow what way over the amount of money that could actually pay back this is the key question and the answer is a lack of regulation and even this proposal that is on the table today well you in this proposal even be only a temporary a band-aid is not gonna solve the problem I want to thank you very much for joining us Loretta and napoleonic book is called rogue economics and that does it for today's broadcast Makris now is produced by Mike Burke happy birthday Mike Sharif Abdel kouddous armata anjali come at Jeffrey Hickman Stephen Nicole Salazar honey Masood Rafi Karen I'm Amy Goodman our website thanks for joining us

  1. @ Smoochym Your opinion is absurd!
    If people have to work.
    Its better people work for the good of all. To serve the need of the people,
    Not to serve the needs of one or a group of individuals who's desire is to become rich and powerful so they can have control over the land, resources and the people.
    Money is why we are in a recession,people are out of jobs and homeless.
    Free is Freedom.
    Money is Debt , taxes and consensual servitude to a ruling class.

  2. We need a world that doesn't require money for the right to live on it.
    Where no man has the right to charge you for land tto live on or the use of recources this planet provides.
    Where your only responsible for a honest days work no more than 5 days a week 8hrs a day to help contribute in your community to provide your needs and the needs of others in your community,, is all that is asked from you.
    To preserve and protect our freedoms from those that want to control it.

  3. Hm…sounds like she's linking slavery and capitalism but the economic system and the political system are two different things. You can have slavery in a capitalistic place just as any other. She makes some good points though.

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