It is fair to say that Wall Street's financial establishment was the real winner on "Super Tuesday" on March 3, when voters in fourteen states went to the polls, and delivered a solid victory to former Vice President Joe Biden, who won in ten of the states. An article published on March 2 by Reuters reported on discussions with fourteen "bankers, hedge-fund managers, private-equity bigwigs and prominent investors" on Wall Street, who spoke openly about their commitment to "making sure Vermont Senator Bernie Sanders does not get the nomination." They said they are "primarily supporting" Joe Biden, although they would also have been willing to back their Wall Street cohort, Michael Bloomberg, if Biden faltered. The victories propelled Biden to a lead over Sanders in the number of delegates needed to win the Democratic Party nomination, precipitating numerous media commentaries about the miraculous resurrection of Biden's campaign.
This is a complete reversal of where things stood just ten days ago. After Bernie Sanders' narrow win in the New Hampshire primary on February 11, and his decisive victory in the Nevada Democratic Caucuses on February 22, a panic bordering on hysteria threatened to overwhelm leaders of the Democratic Party. The media was filled with stories about how Sanders was poised for a huge day on Super Tuesday, and that he might be on the way to wrapping up the nomination, well before the convention in mid-July. Biden, who had been leading in the polls since he announced in April 2019, was floundering, damaging his claim that he was the "most electable", by finishing fourth in Iowa and fifth in New Hampshire.
It was beginning to appear as though the insurgency against the party leadership, which nearly carried Sanders to a victory over Hillary Clinton in 2016, was growing into a monster, despite efforts by the Democratic National Committee to rig the first caucuses, in Iowa, against him, in a transparent repeat of their corrupt efforts on behalf of Clinton in 2016. Pundits worried that he was threatening to sweep away the "moderate Democrats" who were running against him, while party leaders warned that a Sanders' nomination would guarantee Donald Trump's re-election.
Then a strange thing happened. On February 29, the "dead candidate walking", Joe Biden, reversed the narrative, by winning the South Carolina primary. Within days, his leading opponents among the remaining "moderate" Democrats, Senator Amy Klobuchar and Mayor Pete Buttigieg, dropped out of the race, and endorsed him at a campaign rally in Texas, paving the way for his victories on Super Tuesday, including in delegate-rich Texas, where polls had been showing Sanders with a lead. Headlines on March 4 proclaimed that it is now Biden who is on the verge of victory. Adding to this story was the decision of former New York City Mayor, the Green billionaire Michael Bloomberg—who had spent over $500 million to buy votes on Super Tuesday—who announced that he, too, was suspending his campaign, and endorsing Biden. Bloomberg left as his ego-driven claims of political and business acumen were in tatters, as the 44 delegates he won cost an average of $13.6 million each!
Since it is well known that Biden's campaign was faltering due to his stumbling appearances, in which he often "misspoke", forgot where he was and seemed to be in an alternate reality—he even confused his wife with his sister—what explains the sudden turn-around?
ANTI-TRUMP UBER ALLES
The background to Biden's resurgence included a major mobilization of the anti-Sanders apparatus Bloomberg had built in the Southern states, based on an unprecedented expenditure from his personal fortune, coupled with a full activation of the Clinton-Obama-Bush machinery there, to coalesce behind Biden. Additionally, the media helped shape the Biden "miracle" narrative in fawning coverage, while not missing an opportunity to savage Sanders.
But the driver behind this has been the overriding dynamic of hatred and fear of President Trump, which has been on display since his election. What does it mean to be a "moderate Democrat" today? The so-called moderates are controlled by the Wall Street forces which took over the party in the mid-1980s, with the creation of the Democratic Leadership Council, with their Tony Blairite "third way" façade. Those behind the "moderates" are committed neo-liberals, who have made fortunes through participation in the deregulated casino economy, with its "free trade" globalization policies, and its anti-growth Green agenda; they are part of the neo-conservative "Military Industrial Complex", committed to the geopolitical dogma of regime change wars and economic destablilization across the globe, to protect the failed neo-liberal system; and they were behind the defeated Russiagate/Ukrainegate efforts to remove President Trump which, in the process, temporarily sabotaged his efforts to bring the United States into peaceful cooperation with Russia and China.
Biden has been a part of this operation through his long career, first as a U.S. Senator from Delaware, during which time he demonstrated his loyalty to Wall Street as a front man for the leading banks and the shift away from an industrial economy, into a "consumer society", fueled in part by the proliferation of credit card debt, pushed by companies operating in his home state, which funded him liberally. He again proved his worth to the globalists in his role as Barack Obama's vice president. Among his tasks under Obama was overseeing the February 2014 coup in Ukraine, which was used by war-hawks in both parties to exacerbate tension with Russia.
The decision to throw their support behind him means they believe they can somehow hide his dementia, perhaps by nominating a Vice Presidential candidate who can reassure the public, while continuing to inflame broad sectors of the public with the notion that anything, anyone is better than Trump. Should Biden win, it will be a fascist government of national unity, in which Biden would play only a ceremonial role. It is likely that the fragmentation of the Party between the Biden establishment and the Sanders forces will continue, as the forces backing Sanders have been moved not by his "charisma", nor his so-called socialism, but by his attacks on the Clinton-Obama establishment, which is now hated by many who have historically supported the party. This could still lead to a brokered convention in which a new candidate emerges, or perhaps turn to Bloomberg, whose willingness to self-finance an anti-Trump campaign appeals to those who have at least temporarily turned to Biden to rally behind. Biden and his backers hope to put an end to Sanders' campaign with a decisive victory on March 10 in the Michigan primary, propelling Biden to the nomination.
THE SHORT-LIVED "BIDEN BOUNCE"
The absurdity of this scenario is only possible if the population is kept in the dark about the underlying reality they face, with the emergence of the threat from the Corona Virus, which adds to an escalating financial/economic crisis. The wild volatility of the U.S. stock market in the last ten days, in which the overall direction has been down, has been attributed to legitimate fears of an out-of-control pandemic, fed by the media, and to fears that Sanders would be the party's nominee. The upward swing of almost 1,200 points in the Dow Jones average on March 4, a gain of more than 4.5%, reflected a sigh of relief by investors that Sanders did not sweep the Super Tuesday primaries, leading to a "Biden Bounce", backed by the move by the Federal Reserve to cut interest rates by .5%. The Fed's move continues its policy to provide nearly-unlimited funds, to bail out institutions drowning in worthless debt, while using the Fed's funds to continue trading financial instruments leveraged to the hilt.
But the "Bounce" did not last for more than 24 hours, as the underlying dynamic may be influenced by the twists and turns of the presidential race, but is much more a recognition that the stock market boom of recent years is just another bubble, built on flooding markets with cheap credit to bolster stock prices, and fend off the impending bankruptcy of the system for another day. The action by the Fed to cut interest rates follows a recent pattern of short-term crisis management. Similar emergency rate cuts were enacted in 2000, after the popping of the dot com bubble; after the September 11 terror attacks, when President George W. Bush told Americans to "go shopping", to show they are not "intimidated by terrorists"; and in 2008, when the speculative bubble in mortgage-backed securities popped, nearly bringing down the financial system. In each of these cases, the short-term flow of huge volumes of credit was designed to "instill confidence", but the underlying cause of the problem—the deindustrialization of the advanced sector economies, and replacement by a debt-fueled consumer economy—was never addressed.
The rally of the financial establishment behind Biden's candidacy demonstrates that, once again, it is foolishly convinced that voters can be lulled into complacency, while the self-selected elite continue their swindle. It didn't work in 2016, when President Trump appealed to voters to reject Hillary Clinton and her commitment to never-ending wars and permanent bailouts. The danger today is that three years of slander and lies against Trump has prevented him from pushing through an agenda to end those wars and the globalization process behind them—although he has made some progress on this, despite fierce bipartisan opposition—but he has been boxed in on the economy, relying on the stock bubble to appeal for support.
An actual solution, presented by Lyndon LaRouche throughout the years of bubble economics, for a return to the American system of physical economics, was never enacted, as the same establishment now pushing Biden marginalized LaRouche through years of slander, and a legal prosecution which led to his unjust jailing. LaRouche's proposals, for creating an anti-speculative New Bretton Woods financial system, and his Four Laws, which would replace the fractured casino economy with a new economic paradigm of mutually beneficial growth, are now needed more than ever. Support for these proposals are growing among the backers of President Trump, as the rebellion against the Wall Street establishment which made him President continues, and can serve as the basis for his re-election. Were President Trump to use the likely upcoming international summit proposed by Russian President Putin to adopt the LaRouche solutions, the Biden resurrection would come crashing down, and with it the Wall Street would-be Masters of the Universe, victims of their own greed and self-delusions.