British Pension Crisis and EU Energy Crisis Signal European Imperialism’s Panic
By Chris Fry, October 13, 2022
During the height of the Covid pandemic, the Federal Reserve, the central bank of U.S. finance capital, did two things to sustain giant corporations during that period when most had to shut down most if not all their operations: 1) It lowered the interest rates offered to companies to near zero, making huge amounts of cash available to Wall Street; and 2) It bought a huge amount of government and corporate bonds, which put a tremendous amount of cash into the financial system and into the coffers of the banks and big business.
Of course, for the laid-off workers and oppressed, they received only some temporary government assistance. Even the tax breaks for children, which took millions out of poverty, dried up at the end of 2021, putting them right back into it. Rental and mortgage assistance disappeared as well.
Federal Reserve’s Chairman Jerome Powell’s current “inflation fighting” strategy includes not only raising the central bank’s interest rates, but also selling the government and corporate bonds that it bought during the Covid pandemic. Powell is falsely blaming the high inflation rate on the temporary relief measures that the working class received during the pandemic, which have in fact all expired. The pandemic actually increased the monopoly power of the biggest companies in each sector of the economy (energy, food, etc.) to set higher prices without the restraint of competition.
In fact, the money that was raised for the banks and corporations during the pandemic by their getting “free money” from the Fed was used by investment banks to finance derivative speculation, amplifying the huge profits that they were and are raking in. So all that cash generated the unprecedented inflation rate that the workers and oppressed face today at the gas pump and grocery store….