Our prime minister has proclaimed Canada the "first post-national state." Economist James Galbraith prefers the term "predator state." To Chris Hedges, it's the "mafia state."
Systems of governance that are seized by a tiny cabal become mafia states. The early years—Ronald Reagan and Bill Clinton in the United States—are marked by promises that the pillage will benefit everyone. The later years—George W. Bush and Barack Obama—are marked by declarations that things are getting better even though they are getting worse. The final years—Donald Trump—see the lunatic trolls, hedge fund parasites, con artists, conspiracy theorists and criminals drop all pretense and carry out an orgy of looting and corruption.
Neoliberalism is state-sponsored extortion. It is a vast, nationally orchestrated Ponzi scheme. ...This fevered speculation [globalisation/free trade] and mounting inequality, made possible by the two ruling political parties, corroded and destroyed the mechanisms and institutions that permitted democratic participation and provided some protection for workers. Politicians, from Reagan on, were handsomely rewarded by their funders for delivering their credulous supporters to the corporate guillotine. The corporate coup created a mafia capitalism. This mafia capitalism, as economists such as Karl Polanyi and Joseph Stiglitz warned, gave birth to a mafia political system. Financial and political power in the hands of institutions such as Goldman Sachs and the Clinton Foundation becomes solely about personal gain. The Obamas in a few weeks will begin to give us a transparent lesson into how service to the corporate state translates into personal enrichment.
Adam Smith wrote that profits are often highest in nations on the verge of economic collapse. These profits are obtained, he wrote, by massively indebting the economy. A rentier class, composed of managers at hedge funds, banks, financial firms and other companies, makes money not by manufacturing products but from the control of economic rents.
To James Galbraith, today's rentiers are the "looter class."
“If you look back in the 1930s, Leon Trotsky said that fascism was the inability of the socialist parties to come forth with an alternative,” Hudson said. “If the socialist parties and media don’t come forth with an alternative to this neofeudalism, you’re going to have a rollback to feudalism. But instead of the military taking over the land, as occurred with the Norman Conquest, you take over the land financially. Finance has become the new mode of warfare.
“You can achieve the takeover of land and the takeover of companies by corporate raids,” he said. “The Wall Street vocabulary is one of conquest and wiping out. You’re having a replay in the financial sphere of what feudalism was in the military sphere.”