Thursday, October 18, 2012

The rich get cheap money to invest in developing nations

Greece lying about the state of its finances to join the Eurozone was a fantasy?
Greece refusing to collect taxes on its wealthiest citizens is a fantasy?
Greece paying its public sector workers inflated wages and pensions is a fantasy?
If Greece is not willing to get its own house in order, why should anyone be willing to loan them any more money?
The rich get cheap money to invest in developing nations where labor and human life is cheap, as well as the chance to bust unions and slash safety net funding. Wall Street is even investing in corporations that are parasites on school funding, at a time when teachers routinely spend their own money on supplies for their kids.
50% youth unemployment is not normal. Whole families moving back in with their parents is not normal. Austerity is the problem, not the solution.
The same thing is happening everywhere. By the governments own estimates, there are already six million children in the United States alone that are either starving, or on the verge of starving. Millions of Americans are homeless, penniless, and are in dire need of supplies and healthcare. Why? Because the wealthiest and most powerful people in America live in a different world than everyone else. Can you imagine how different the world seems to people who are are dependent on no one for anything at anytime for the rest of their lives. There is virtually nothing they can't afford. Everyone else seems alien to them. In their view, the less fortunate are people who made bad choices, and who then want the wealthiest to pay for there mistakes and help them recover. The wealthiest and most powerful people in America view these teeming masses with disdain, disinterest and devoid of compassion. No guilt or deep compassion penetrates the almost magical bubble through which they travel anywhere they want to at any time. Free money and Power. We suffer at their whim. And so we are.....

Saturday, October 13, 2012

The biggest unsatisfied need in the western world

The American pathway... The Federal Reserve targets inflation at 2%. So my purchasing power will be down 10% in 5 years. No interest is paid on savings. So I cannot grow my assets via bank savings. The Fed announces QE3 will purchase about $80 billion a month of Mortgages and Treasury debt. Where did that free money come from. It was created ex nihilo. Spoken into existence. Why QE3? Because the new dollars chasing existing assets will increase the face value of stocks, land, stuff the top 30%, like me, own in quantity. And the Fed wants me to feel wealthy. How earnestly does Bernanke want me to feel wealthy? $80 billion a month is equivalent to the total IRS taxes paid each month by all people and corporations. Its effect? To decrease the purchasing power of the $ US dollar, thus increasing the strain on those without assets. It redistributes wealth from those holding dollars and receiving fixed annuities to speculators, aka holders of tangible assets. Think of it as the Fed pumping a money flow as big as all US taxes (ex payroll tax) to the top 50%.
I saved $3,000, for college back in the day. If I had put that in half dollar coins, pre-1965, I would have 3,000 ( actually 2,700, 90%) ounces of silver, now worth more than $86,000. Quite an impact from Fed policy and free money system. Only by having "assets" like land, metals, equities can you out run the financial system..