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Apr 27, 2012

OUR FUTURE IN CHAINS: THE DEBTORS PRISON SYSTEM RETURNS


By Michael Edwards
Activist PostApril 23, 2012

The recent story of breast cancer survivor Lisa Lindsay being thrown in prison for a $280 medical billthat was sent in error has thankfully gone viral. 

It has brought much-needed attention to the insanity of reinstating the concept of debtors’ prisons.     

Debtors’ prisons have a sordid history that was thought to be best left behind in Medieval Europe and in Charles Dickens' fictionalized accounts of the 19th-century hellholes of Victorian England.

America was not to be outdone, however, debtors prisons were widespread in the United States as well, and stories of the conditions in New York's debtors prisons could make one question if repayment of debts was really the purpose; violent criminals were much better clothed and fed.  


In fact, history shows that terror and slavery have always had a close relationship with debt, and it follows a path from the Romans right through to 17th-century England and into America from English common law.  However, America chose to abolish her debtors’ prisons a full 36 years before England; first in New York in 1831, and by 1833 the rest of the America had followed. (1) 

Now, debtors’ prisons seem to be making a comeback in America.  

An article in the Star Tribune in Minnesota titled, "In jail for being in debt," exposes the growing number of citizens going to jail at the behest of banks and a welcoming judicial system.  They write:
It's not a crime to owe money, and debtors' prisons were abolished in the United States in the 19th century. But people are routinely being thrown in jail for failing to pay debts. In Minnesota, which has some of the most creditor-friendly laws in the country, the use of arrest warrants against debtors has jumped 60 percent over the past four years, with 845 cases in 2009, a Star Tribune analysis of state court data has found.
In our modern era of debt servitude, a PR Push has been designed to reintroduce a serious discussion of debtors' prisons as a sound solution.  What goes beyond alarming is that the full-fledged return of debtors prisons might be seen as both appropriately terrifying, as well as a profitable investment opportunity and politically sound decision to be made by state governments struggling with their own looming bankruptcies, and a Federal government struggling politically with the concept of a jobless recovery that is not materializing.  


de facto debtors’ prison has already been largely accepted in the case of "deadbeat" parents when a failure to pay child support puts them in civil contempt of court.  It is this civil contempt charge that is now beginning to take on an expanded definition to include those who owe for much smaller infractions.  

When a court order to pay a debt is issued and ignored, it then qualifies as a civil contempt of court.  At that point, the judge becomes a literal dictator with the ability to imprison a person indefinitely for the violation.  The Constitution explicitly prohibits incarceration for failure to pay debts, but it is the violation of a court order that gives judges free rein to impose draconian punishments.  In this way, an end-run around the Constitution can become frighteningly commonplace. (2)

America already has a record-high ratio of people in prison, with no signs of the trend reversing as private corporations like Wackenhut Corporation, referred to as a "Free Market in Human Misery," have long been enlisted to turn government directives into shareholder profit.  

One might even deign to call it blatant fascism in its purest form, as government legislation leads offenders directly into private company coffers.   The prison-industrial complex has already capitalized on government actions like The War on Drugs.  

A prime example is how The California Correctional Peace Officers Association helped fuel the prison-building boom as a cozy relationship was established on Capitol Hill through influence peddling. (3) 

Profiting from the suffering of the poor while bailouts and bonuses await the over-leveraged banksters, car companies, and state governments, sets up a prison-industrial complex with a class warfare component that is the domestic mirror of the military-industrial complex sent abroad.   

This domestic prison system seems to be the only industry left to build upon, and it is here that things become truly frightening.  For the federally-owned prison system complex, Federal Prison Industries (UNICOR), more incarceration means a growing supply of cheap labor and a skewing of unemployment numbers, as these inmates are often doing jobs they couldn't even find if they were job hunting on the outside.  But it is the private prison system, with its web fully woven throughout the U.S. government that stands to profit the most from the return of debtors' admission. (4) 

The largest private prison conglomerate in the U.S. is Corrections Corporation of America (CCA), which controls more than 47% of all private prison and jail beds nationwide and is able to produce a 13-15% return annually on new real estate investments.  Wackenhut (now subsumed into G4S, the largest security company in the world) was of course started by an FBI agent, George Wackenhut, who is famous for developing millions of dossiers on America's "potential subversives" in the sixties, and was exposed as being an integral player within the shadow CIA. (5) 

These major security conglomerates are at the top of a growing pyramid of for-profit, international detention center operators that has Wall Street giants like Goldman Sachs simply fawning over the solid, long-term investmentpotential. 

Similar to war, when there is a profit to be made off of incarceration, only more incarceration can be expected to follow.  The U.S. government certainly seems to be working hard to ensure that the numbers of poor continue to increase, as they are well aware that that programs designed to help the downtrodden are an abject failure every time.

The massive government debts that must be repaid directly into the hands of the Federal Reserve-led banking cabal must lead us to an inescapable conclusion: 

More money is to be made from slavery
in the United States,
than from freedom.


OTHER ARTICLES CITED:

1. Jill Lepore, "I.O.U. - How We Used to Treat Our Debtors," The New Yorker (April 13, 2009): 35.




Economic Nostradamus: We Are Literally Witnessing a Collapse


By Mac Slavo
SHTFplan.com  
April 27th, 2012 

With the Presidential election cycle in full swing our incumbent administration, the media, and their financial pundits continue to maintain that the US economy’s green shoots have blossomed into fields of golden sunflowers. Despite what we’re being told, however, the actual data tells a stunningly different story.
Richard Yamarone, a senior economist for Bloomberg Brief, has been called an economic Nostradamus for his prescient forecasting of the 2008 financial crisis, and now he’s warning that the worst is not over. In a recent interview with King World Newshe suggests that not only is the economic outlook a barren desert devoid of any existence of green shoots, but we have a front row seat to witness the collapse of life in America as we know it:
King World News Interview via SGT Report:
I think people are just running out of money. We have contracting, real disposable incomes. Most of the job creation that we have is from minimum wage type jobs.
…you are actually seeing this collapse, contracting on a real basis, of real disposable personal incomes. If you don’t have the money, you can’t facilitate expenditures. So that’s the core of the problem. That’s what’s really going on in the US economy.
You don’t listen to what all of these bigger numbers coming across the screen tell you. You talk to the people who are running the country. 99.7% of all employer firms in this country are small businesses. So when they speak, you have to listen.
You have to listen to what the small businesses are telling you and right now they are telling you, ‘Hey, I’m the head of a 3rd or 4th generation, 75 or 100 year old business, and I’ve got to shut the doors’ or ‘I’ve got to let people go. And if I’m hiring anybody back, it’s only on a temporary basis.

In this current recession, we are not even close (to getting the jobs back) and that’s 50 months and counting.
The fact of the matter is that meaningful jobs won’t be returning any time soon. Recent (un)employment data indicates that cumulatively we are losing jobs each and every month. And, those jobs that do become available are minimum wage jobs that are insufficient to offset the income loss we’ve experienced since 2008.
The bottom line is that if people don’t have money, they can’t consume to keep the economy going. This leads to a vicious negative feedback loop that forces small (and large) business employers to lay off workers, which takes even more money out of the economy, which subsequently leads to more business closures and cutbacks.
As evidence of this effect we need look only at the most recent Gross Domestic Product (GDP) data which indicates that, while the economy is still officially growing, it’s doing so at a snail’s pace of just 2.2%. That’s the official government statistic, so of course it’s loaded with fuzzy math that fails to account for one very critical piece of information – inflation. According to John Williams of Shadow Stats, if we accounted for inflation and calculated GDP as it should be done, without government up-side distortions, our economic growth has not only slowed, it’s actually contracting at a rate 0f negative 2.2%. By all accounts, even though the mainstream narrative is one of growth, recovery and increased consumer spending, the US economy is and has been in a recession since 2005.
Consider that food stamp rates have doubled over that period to 48.5 million participants (that’s one in six Americans!) and that we have an unofficial machination-adjusted unemployment rate in excess of 22% and one thing becomes absolutely clear: the average Joe Sixpack is broke, hungry and dangerously close to ripping to shreds the remainder of our country’s social safety nets.
Every piece of official data the government and their mouth pieces throw at us is and has been fabricated for the better part of a decade. Inflation is four times higher than Ben Bernanke will admit. Foreclosures continue piling up and the shadow inventory of foreclosed homes is now in the multiple millions. Real estate prices are still falling, with even ‘new’ buyers who purchased homes after the 2008 collapse and thought they were getting a deal now underwater on their mortgages.
To top it all off we have the price of essential goods like food and energy going through the roof as a result of easy Fed money to banks and investment firms that has nowhere to go but stock and commodities paper markets. While all those freshly printed Federal Reserve dollars have yet to make their way to consumers in any significant way, we’re already seeing the initial effects of our CTRL+Print  monetary policies and they’re have a devastating impact on consumer gas prices and grocery store trips.
We’ve oft opined that the collapse that so many naysayers believe will never happen is, in fact, happening right here and now. The data suggests it likely occurred well before global stock markets melted down in 2008.
The aforementioned handful of data (there’s plenty more where that came from – we haven’t even gotten into the European debt debacle or the coming Japanese and Chinese economic meltdowns) is providing us a clear picture of where we’ve been and where we’re headed.
We are literally witnessing the collapse of our entire entire borrow-and-consume paradigm, the aftereffects of which will not be pretty, complete with hyperinflationary depression, riots, starvation and bloodshed.
Author: Mac Slavo
Views: Read by 1,608 people
Date: April 27th, 2012
Website: www.SHTFplan.com

Copyright Information: Copyright SHTFplan and Mac Slavo. This content may be freely reproduced in full or in part in digital form with full attribution to the author and a link to www.shtfplan.com. Please contact us for permission to reproduce this content in other media formats.
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Protect Your ASSets: Buy Gold or Silver NOW - If you wait you will be late.
(He who panics first, just may salvage something.