Parasitic Capitalism 101: Make Billions of Dollars by Ripping Off African People. Part 2.
U.S. Wages Domestic Counterinsurgency to Protect Parasitic Capitalism
The U.S. government’s COINTELPRO attack on the Black Power Movement of the 1960s assassinated African leaders, imprisoned activists and used agents to destroy organizations.
As part of this counterinsurgency effort the government flooded the African community with heroin brought in from Southeast Asia by the CIA. Later crack cocaine from South and Central America was added.
These drugs served a two-fold purpose. They devastated the African working class community and made organizing nearly impossible. At the same time the drugs destroyed long-standing African community economic stability while turning illegal drugs into nearly a trillion dollar annual industry, generating cash that flows through every bank in the U.S.
Again Jim Crow-like laws such as Three Strikes and discriminatory sentencing mandates were used to round up millions of people and imprison them on the basis of drugs.
Prison Profit Props Up Ailing U.S. Economy
Today more than 7.5 million people—nearly half of them African—are tied to the US prison system. As big as the current government stimulus package is, it is nothing compared to the massive government investments building new prisons in every state.
This proved to be the key economic stimulus for white America over the past 30 years. It was prisons and illegal drugs that saved the US economy during all of the previous economic downturns of the 1970s, 80s and 90s.
Prisons spawned jobs in multiple sectors, such as lawyers and prosecutors, guards, court and prison administration, computer programming, along with construction, housing development and retail malls that often transformed backwards rural towns into bustling metropolises.
Wall Street banks float the loans to cities and states that are used as municipal bonds to finance prison building. These loans are basically mortgages on prisons and rake in the money for the bankers.
Private prisons profit from African slave labor used by a wide range of corporations, essentially a modern form of Convict Leasing.
Additionally, private prisons are traded on Wall Street. Their stock goes up every time another law such as Three Strikes is passed, because these laws guarantee that prison beds will be filled for the long term and that there will be an ever-increasing prison population. Wall Street makes sure that prisons remain a good investment.
“Subprime” Predatory Lending Steals African Assets
In the mid-90s the Clinton administration began changing HUD policies to allow for the targeting of the African community for predatory subprime mortgages.
For the next 10 years, bankers and lenders profited royally from entrapping African families into deceptive mortgages. Africans making over $150,000 a year were more likely to get a “subprime” load than white people making less than $35,000 a year.
Subprime mortgages are adjustable rate loans that start out low and double after a couple of years.
The banks bundled the mortgages, sliced them up and used them as investment instruments, instead of cash. They made trillions of dollars by investing these mortgage-backed securities and then quickly reinvesting their profits multiple times.
As millions of people began to default on their high-interest mortgages, the banks’ investments went bad. This was the basis of the stock market crash in September of 2008.
But the bankers have been bailed out by taxpayers’ money to the tune of trillions of dollars. The banks have never had to publicly reveal their bad debts, the “toxic assets” from the invested subprime mortgages.
Following all the bailouts under both Bush and Obama, the banks have invested the people’s money that they were supposed to lend out to businesses and individuals. Now the banks are claiming some of the highest profits ever. The banking class in fact has benefitted from a huge heist and is lining its pockets as usual at the expense of Africans.
Meanwhile majority Africa cities such as Detroit, Cleveland, Philadelphia, Baltimore, Washington DC and others are decimated beyond description. Whole neighborhoods are foreclosed, abandoned and boarded up. Downtown Detroit is nearly a ghost town, with empty streets and vacant skyscrapers. As Chairman Omali has said, poverty stalks these African communities like a lynch mob.
African Unity is the Only Solution
It’s clear the only answer is the African Socialist International. Parasitic capitalism and the white world have feasted on African people for 500 years.
When Africa is reunited and liberated and in the hands of African people everywhere Africa will be the most powerful and wealthy economy in the world.