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Obama’s Orchestrated Crisis

October 28, 2009

The financial crisis continuing to brew in America is part of a deliberate strategy to expand the size and scope of government, Glenn Beck argued on his TV show.

It’s called the Cloward-Piven Strategy of orchestrated crisis. It’s an approach to radical social and political change articulated by Marxist university professors Richard A. Cloward and Frances Fox Piven in a 1966 Nation article, “The Weight of the Poor: A Strategy to End Poverty.” They called for “a massive drive to recruit the poor onto the welfare rolls” in an effort to overwhelm the system. [Italics in original.]

The strategy helped to push New York City to the brink of bankruptcy in 1975. Years later, then-mayor Rudy Giuliani, denounced the academic activists by name.

In the Nation article, Cloward and Piven made it clear that they were irritated that plenty of Americans legally eligible to receive forcibly redistributed wealth hadn’t bothered to ask for handouts. They wrote:

“The discrepancy is not an accident stemming from bureaucratic inefficiency; rather, it is an integral feature of the welfare system which, if challenged, would precipitate a profound financial and political crisis.”

One of the leftist activist groups that contributed to the current economic climate is ACORN. Its founder, Wade Rathke, is a big believer in the Cloward-Piven Strategy but he’s given it a new name for a new millennium. He calls it the Maximum Eligible Participation Strategy and has said he wants to use the Internet to swamp America’s social welfare system.

Although the Cloward-Piven Strategy pertains specifically to welfare benefits, the basic idea is that any massively unsustainable financial demands on the government will cause chaos and civil unrest.

Policy makers in Washington either want to cause crisis in order to overthrow the existing system or they simply don’t care. What else could explain the jaw-dropping fiscal irresponsibility in Washington?

Couple this with the fact that in the closing weeks of the Bush administration, incoming White House chief of staff Rahm Emanuel practically admitted the Obama administration was planning to sabotage America in order to force socialism upon the American people:

Rule one: Never allow a crisis to go to waste. They are opportunities to do big things.

A massive increase in the money supply takes roughly two years to cause inflation or hyperinflation in the economy. In the 1970s the government printed money like crazy and added 13% more to the money supply over two years. This caused an inflation rate of 12%.

The Federal Reserve chairman at the time, Paul Volcker, had to raise interest rates in order to stem inflation. He raised interest rates to 20%.

But, Beck noted, the money supply in the U.S. has been increased by 120% in the last year or so in order to meet the impossible demands of a reckless president and Congress.

How high will our interest rates have to rise to in order to tame the inflation that is about to be unleashed? Will those brutal interest rates snuff out economic growth?

We’re going to find out.

Shopping in Weimar Germany with a wheelbarrow of money circa 1923

Editor’s Note: For more about the Cloward-Piven strategy read David Horowitz and Richard Poe’s The Shadow Party.

  1. sean permalink
    October 29, 2009 12:48 am

    Money agregates have long been discredited as a useful measure of economic activity and a guide to inflation. The fed stopped using M1 and M2 as a guide to setting policy rates and stopped targeting them in 2000.
    You can’t speak about inflation in the 70’s without mentioning the oil shocks and failed price controls that actually exacerbated the inflation problem.
    Money agregates in a fractional reserve system offer little clue to the direction of inflation. Bank lending is not reserve constrained, which is becoming more apparent to policy makers who are seeing almost no credit growth despite the huge buildup of excess reserves.
    When demand picks up, loan growth will incrase and we will face inflatioanry pressures. Until then, lots of M1 chasing nothing will do little more than spur some asset price inflation.
    A payroll tax repeal would spur the private sector balance sheet repair necessary to encourage hiring and economic expansion.

  2. oldwolves permalink
    October 29, 2009 4:30 am

    Thank you for the lesson in Kenyan economics , however you missed,(Hopefully unintentionally) the point Glenn was making. That being Obama wanting to manufacture a nonexistent crisis to create a political scam so he could reap the benefits. One of the techniques used by the left, as shown by Thomas Sowell.

  3. Colette permalink
    October 29, 2009 7:41 am

    All I can say to this one is …. “WOW”….

  4. Freeme permalink
    October 29, 2009 8:04 am

    ALL the ‘crisis’ are misnomers, as ALL problems of ISSUES were created to bring USA down the old path to communism…as Obama stated in his speech BEFORE elections to wild throngs in Brussels…
    “America’s Future is Soviet’s past”. Any doubt what his plans were then…when vetted for President decades ago? Marxists surround him, they are his mentors continuing today.

  5. Wayne permalink
    October 29, 2009 9:27 am

    Some economists state that inflation as an increase in the money supply. Glenn Beck notes that the money supply has increased by 120% in the last year, so couldn’t one conclude that such a dramatic increase in the money supply will result in inflation?

    By pointing to the ideas of Cloward and Piven as one of the forces that has led to the current “financial crisis”, Beck show that this state of affairs was not arrived at by accident. Mistakes of such magnitude are not made — so was this a deliberate act by the current and previous administration to collapse the currency? Sadly, I think it was.

    • Linda permalink
      October 29, 2009 5:20 pm

      H.G. Wells said about the New World Order ( and oh yes, the NWO is NOT a new idea)that it was scientifically planned. That’s only a part of the quote. But I think that is enough to illustrate how we are near our final destination as a FREE country.

    • Dr J permalink
      October 30, 2009 1:36 am

      Me too. This is huge.

  6. Prudent Man, CFA permalink
    October 29, 2009 12:20 pm

    Simple question for collectivists: Why, factually, do you think Socialism is better that Free Enterprise? Where is the evidence that Socialism has raised the standard of living for the majority of citizens? The old law and journalism school: Who, What, Where, When, Why and How Much. If one cannot answer those questions on anything, such as Socialism, Government Health Care, the irrational Cap and Trade, Global Warming, etc. there is no argument.

    Collectivists rather rely upon emotional “feelings” rather than facts. That is why collectivism leads to Dictatorship. Who will be their dictator? George Soros, Eric Schmidt, Bill or Melinda Gates, Warren Buffett, Steve Jobs, et al?

    • Dr J permalink
      October 30, 2009 1:52 am

      …and the Clintons, ALGORE, Rockefellers, Bushs, U.N., China,This is huge.

  7. sean permalink
    October 29, 2009 2:18 pm

    oldwolves , I take your point. Thank you. I do believe there is an intent to use the current severe recession to, as Obama himself stated, fundamnetally change” America and that is very worrying.
    I just don’t think they are trying to engineer hyperinflation as a means to that end. I think Obama is letting the far laft draft legislation that he hopes they can pass. He’s being noncommital on what should be in it so if the populace rises up agaisnt it and throws out Pelosi adn Reid he can throw them under his huge bus and move a little to the center. If it passes he takes credit and lets them push for more. I think the danger is in the far left of Congress. Obama is not a leader – hes an opportunist.

  8. Linda permalink
    October 29, 2009 5:17 pm

    My Gosh, it’s about time!!!! I have been trying to educate various of my friends and others online about the Cloward-Pivens strategy for a long time. It needs to be repeated over and over until everyone understands it.

  9. Len Powder permalink
    October 29, 2009 9:38 pm

    The essense of the Cloward-Pivens strategy and Saul Alinsky’s teachings are to make the political and economic systems implode so that capitalism and free markets are reduced to rubble. Out of the rubble the statists will erect their Marxist dystopia in which the individual means nothing and the collective is everything, in which bureaucrats become demi-gods and all of society is controlled by the government. We have many examples to illustrate the handiwork of the statist and plenty of reasons to resist them with our lives if necessary.

  10. Dr J permalink
    October 30, 2009 1:32 am

    Watch the YouTube video w/Lord Monckton. All American taxpayers need to understand what’s a comin’ down the pike. Lord Monckton will be on Glenn Beck’s program Friday…

  11. Seek permalink
    October 30, 2009 8:28 am

    The Piven-Cloward strategy was made manifest in their enormously influential 1971 book, “Regulating the Poor,” one of the most widely-assigned college/grad school texts over the last half-century. The 1966 article in The Nation was just a taste of things to come.

  12. Keith permalink
    October 30, 2009 1:44 pm

    It’s clear the elites are robbing the american people financially,David Rockefeller,Ted Turner,Bill Gates,Henry Kissenger all support this concept of population control.They think it’s too many people on this earth,using too much energy, and it’s going to destroy the planet.Those people that control the money supply, also control our economy,and can collapse it when they want.This capitalistic system wasen’t created to benefit all americans, just some of us.That’s why Rockefeller said competition is a sin.

  13. Michaelle Maloney permalink
    October 30, 2009 2:19 pm

    Obama always says that things are a big crisis and they never are. When it truly is one-he doesn’t do anything or he takes his time-like with Gen. McCrystal.

    Obama only has the power to make a big fool out of himself. When he dies -he will have NO power but to burn and pop like toast if he doesn’t turn around.

    Sean Penn-Ought to move to Cuba since he likes it so much. Have u noticed that the big mouth celebrities never move to the countries they just admire?

  14. Vince permalink
    October 31, 2009 10:23 am

    The next move is to download and document all of the examples of their lies and coruption and share it. Write and email your Senators and Congressmen. Let them know you know. Search for dirt on the Obama’s, Pelosi, Emanuel, Dodd, Waters, Frank, Reed, Axelrod and all of them. Expose, expose, expose. They’re thin skinned and cannot handle the heat, especially Obama! It’s being reported that there are 30 ethics violations being investigated on the hill. Let them know you know. And don’t beleive it was accidentally leaked. Accidentally on purpose maybe.


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