Al-USA's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/270430/comments http://seekingalpha.com/article/175440-trade-desk-thoughts-hedge-the-drop?source=feed#comment-779206 779206
As i write futures are 1074.7 1:31 EST, but I'm in CA so it's still early here.]]> Fri, 27 Nov 2009 01:59:07 -0500
As i write futures are 1074.7 1:31 EST, but I'm in CA so it's still early here.]]> http://seekingalpha.com/article/175471-the-new-normal-could-be-that-way-for-a-while?source=feed#comment-779084 779084 Thu, 26 Nov 2009 22:47:49 -0500 http://seekingalpha.com/article/175060-another-crisis-looms-right-around-the-corner?source=feed#comment-777990 777990 "
As a foreign observer of the US scene, however, I find it regrettable that I appear to have more faith than some US citizens in the capacity of the US and its people to work together to find a way forward through the current difficulties. This was done during the Depression and WW II and other past crises and there is no reason to think it can’t be done now.
"

One can not place faith upon the elites running the USA, Mr. Adamson, simply because it is the elites themselves that caused the "financial crisis" which has now precipitated into an economic crisis for the masses of the American working/middle class.

You see, the American working/middle class has been gutted and will continue to be gutted, as per the design of the capitalist elites way back in the passage of GATT in 1994, and perhaps earlier. As is apparent now, the process of capitalist globalization was the beginning of the end for the relatively high living standards of the American masses.

Of course, the absence of increasing wages, relative to inflation, was substituted for a time by the introduction of massive credit, or debt. But the limit of credit or debt, to substitute for the lack of rising wages during the boom period of capital from roughly 1982 to 2000 has now been reached; with the inevitable crisis of capitalism, or crisis of over-production.

But don't take my word for it, get it from one disgruntled billionaire elite, privy to the plans of this elite class, years ago, when, in 1994, he said publicly that globalization would result in reduction of wages, benefits, mass unemployment and soon, increased taxes on the masses of the working/middle class.

This elite, billionaire Sir James Goldsmith laid it all out to Charlie Rose in a 1994 video, titled,

"1994 Globalization Warning"
solari.com/blog/?p=3309

This is the establishment, aka Financial Oligarchy, corrupt capitalist elites, and their political cronies, against everybody else, but principally against the American masses.

Now, a conscious policy decision was set in motion, at least as far back as 1994, to increase the profits of the capitalist elites with the purposeful end game result of persistent mass unemployment, after the massive debt/credit (which substituted for the absence of wages to increase, after inflation) was maxed out.

If you care to see how this parasitic elite class thinks of the rest of us, take a few minutes to see the 1994 video below. I could summarize in text, but getting it from the elite himself is most informative.

"1994 Globalization Warning"
solari.com/blog/?p=3309]]> Wed, 25 Nov 2009 21:43:52 -0500 "
As a foreign observer of the US scene, however, I find it regrettable that I appear to have more faith than some US citizens in the capacity of the US and its people to work together to find a way forward through the current difficulties. This was done during the Depression and WW II and other past crises and there is no reason to think it can’t be done now.
"

One can not place faith upon the elites running the USA, Mr. Adamson, simply because it is the elites themselves that caused the "financial crisis" which has now precipitated into an economic crisis for the masses of the American working/middle class.

You see, the American working/middle class has been gutted and will continue to be gutted, as per the design of the capitalist elites way back in the passage of GATT in 1994, and perhaps earlier. As is apparent now, the process of capitalist globalization was the beginning of the end for the relatively high living standards of the American masses.

Of course, the absence of increasing wages, relative to inflation, was substituted for a time by the introduction of massive credit, or debt. But the limit of credit or debt, to substitute for the lack of rising wages during the boom period of capital from roughly 1982 to 2000 has now been reached; with the inevitable crisis of capitalism, or crisis of over-production.

But don't take my word for it, get it from one disgruntled billionaire elite, privy to the plans of this elite class, years ago, when, in 1994, he said publicly that globalization would result in reduction of wages, benefits, mass unemployment and soon, increased taxes on the masses of the working/middle class.

This elite, billionaire Sir James Goldsmith laid it all out to Charlie Rose in a 1994 video, titled,

"1994 Globalization Warning"
solari.com/blog/?p=3309

This is the establishment, aka Financial Oligarchy, corrupt capitalist elites, and their political cronies, against everybody else, but principally against the American masses.

Now, a conscious policy decision was set in motion, at least as far back as 1994, to increase the profits of the capitalist elites with the purposeful end game result of persistent mass unemployment, after the massive debt/credit (which substituted for the absence of wages to increase, after inflation) was maxed out.

If you care to see how this parasitic elite class thinks of the rest of us, take a few minutes to see the 1994 video below. I could summarize in text, but getting it from the elite himself is most informative.

"1994 Globalization Warning"
solari.com/blog/?p=3309]]> http://seekingalpha.com/article/175323-unemployment-claims-best-data-we-ve-seen-in-a-long-time?source=feed#comment-777815 777815 "
The middleclass has been gutted and I don't see the other sectors - government, teachers, unions being able to take up the slack.
"

Yes, the working/middle class has been and will continue to be gutted, as per the design of the capitalist elites, way back in the passage of GATT in 1994, and perhaps earlier. But, as is apparent now, certainly the process of capitalist globalization was the beginning of the end for the relatively high living standards of the American masses. Of course, the absence of increasing wages, relative to inflation, was substituted for a time by the introduction of massive credit, or debt. But the limit to credit or debt, to substitute for the lack of rising wages during the boom period of capital from roughly 1982 to 2000 has now been reached; with the inevitable crisis of capitalism, or crisis of over-production.

But don't take my word for it, get it from one disgruntled billionaire elite, privy to the plans of this elite class, years ago, when, in 1994, he said publicly that globalization would result in reduction in wages, benefits, mass unemployment and soon, increased taxes on the masses of the working/middle class.

This elite, billionaire Sir James Goldsmith laid it all out to Charlie Rose in a 1994 video, titled,

"1994 Globalization Warning"
solari.com/blog/?p=3309

This is the establishment, aka Financial Oligarchy, corrupt capitalist elites, and their political cronies, against everybody else, but principally against the American masses.

Now, a conscious policy decision was set in motion, at least as far back as 1994, to increase the profits of the capitalist elites with the purposeful end game result of persistent mass unemployment, after the massive debt/credit (which substituted for the absence of wages to increase, after inflation) was maxed out.

If you care to see how this parasitic elite class thinks of the rest of us, take a few minutes to see the 1994 video below. I could summarize in text, but getting it from the elite himself is most informative.

"1994 Globalization Warning"
solari.com/blog/?p=3309]]> Wed, 25 Nov 2009 17:57:35 -0500 "
The middleclass has been gutted and I don't see the other sectors - government, teachers, unions being able to take up the slack.
"

Yes, the working/middle class has been and will continue to be gutted, as per the design of the capitalist elites, way back in the passage of GATT in 1994, and perhaps earlier. But, as is apparent now, certainly the process of capitalist globalization was the beginning of the end for the relatively high living standards of the American masses. Of course, the absence of increasing wages, relative to inflation, was substituted for a time by the introduction of massive credit, or debt. But the limit to credit or debt, to substitute for the lack of rising wages during the boom period of capital from roughly 1982 to 2000 has now been reached; with the inevitable crisis of capitalism, or crisis of over-production.

But don't take my word for it, get it from one disgruntled billionaire elite, privy to the plans of this elite class, years ago, when, in 1994, he said publicly that globalization would result in reduction in wages, benefits, mass unemployment and soon, increased taxes on the masses of the working/middle class.

This elite, billionaire Sir James Goldsmith laid it all out to Charlie Rose in a 1994 video, titled,

"1994 Globalization Warning"
solari.com/blog/?p=3309

This is the establishment, aka Financial Oligarchy, corrupt capitalist elites, and their political cronies, against everybody else, but principally against the American masses.

Now, a conscious policy decision was set in motion, at least as far back as 1994, to increase the profits of the capitalist elites with the purposeful end game result of persistent mass unemployment, after the massive debt/credit (which substituted for the absence of wages to increase, after inflation) was maxed out.

If you care to see how this parasitic elite class thinks of the rest of us, take a few minutes to see the 1994 video below. I could summarize in text, but getting it from the elite himself is most informative.

"1994 Globalization Warning"
solari.com/blog/?p=3309]]> http://seekingalpha.com/article/173977-structural-unemployment-the-only-cure?source=feed#comment-777466 777466
Mr. Gordon, this was planned by the elites years ago, in fact, a disgruntled billionaire elite, said it publicly that globalization would result in reduction in wages, benefits, mass unemployment and soon, increased taxes on the masses of the working/middle class.

This elite, billionaire Sir James Goldsmith laid it all out to Charlie Rose in a 1994 video, titled,

"1994 Globalization Warning"
solari.com/blog/?p=3309

This is the establishment, aka Financial Oligarchy, corrupt capitalist elites, and their political cronies, against everybody else, but principally against the American masses.

Now, a conscious policy decision was set in motion, at least as far back as 1994, to increase the profits of the capitalist elites with the purposeful end game result of persistent mass unemployment, after the massive debt/credit used to substitute for the absence of wages to increase, after inflation, was maxed out, And you think that education is the problem? Mr. Gordon, you have a fundamental failure to see the "big" picture but, if you care to remedy your deficit, take a few minutes to see the 1994 video below. I could summarize in text, but getting it from the elite himself is most informative.

"1994 Globalization Warning"
solari.com/blog/?p=3309

After one watches the video, a few conclusions can be made, principally among them is, of what use is this economic model of capitalism, where the profits flow, per design, to the capitalist elites, while at the same time causing massive structural unemployment for the American masses. Of what use is economic growth that merely enriches the few rich and politically connected while bringing destitution to an increasing number of Americans? ]]> Wed, 25 Nov 2009 14:03:49 -0500
Mr. Gordon, this was planned by the elites years ago, in fact, a disgruntled billionaire elite, said it publicly that globalization would result in reduction in wages, benefits, mass unemployment and soon, increased taxes on the masses of the working/middle class.

This elite, billionaire Sir James Goldsmith laid it all out to Charlie Rose in a 1994 video, titled,

"1994 Globalization Warning"
solari.com/blog/?p=3309

This is the establishment, aka Financial Oligarchy, corrupt capitalist elites, and their political cronies, against everybody else, but principally against the American masses.

Now, a conscious policy decision was set in motion, at least as far back as 1994, to increase the profits of the capitalist elites with the purposeful end game result of persistent mass unemployment, after the massive debt/credit used to substitute for the absence of wages to increase, after inflation, was maxed out, And you think that education is the problem? Mr. Gordon, you have a fundamental failure to see the "big" picture but, if you care to remedy your deficit, take a few minutes to see the 1994 video below. I could summarize in text, but getting it from the elite himself is most informative.

"1994 Globalization Warning"
solari.com/blog/?p=3309

After one watches the video, a few conclusions can be made, principally among them is, of what use is this economic model of capitalism, where the profits flow, per design, to the capitalist elites, while at the same time causing massive structural unemployment for the American masses. Of what use is economic growth that merely enriches the few rich and politically connected while bringing destitution to an increasing number of Americans? ]]> http://seekingalpha.com/article/175056-how-will-the-recession-affect-long-term-consumer-behavior?source=feed#comment-775483 775483
In an environment where massive credit, or debt was used to substitute for missing increases in median wages, it's no surprise the savings rate went down.

Now, having seen the "real" face of capital, the masses are running scared from the reduction in wages, reduced benefits and soon, increased taxes. The attack on the living standards of the remaining workers no doubt "sharpen" them up some, survival is at stake... Anyways, those suffering from decreasing living standards are the lucky ones, the rest, which according to U6 figures is around 18% unemployed, well, being destitute does somewhat crimped your ability to "save".

Other than that, "party" on Wall Street!]]> Tue, 24 Nov 2009 13:28:01 -0500
In an environment where massive credit, or debt was used to substitute for missing increases in median wages, it's no surprise the savings rate went down.

Now, having seen the "real" face of capital, the masses are running scared from the reduction in wages, reduced benefits and soon, increased taxes. The attack on the living standards of the remaining workers no doubt "sharpen" them up some, survival is at stake... Anyways, those suffering from decreasing living standards are the lucky ones, the rest, which according to U6 figures is around 18% unemployed, well, being destitute does somewhat crimped your ability to "save".

Other than that, "party" on Wall Street!]]> http://seekingalpha.com/article/174602-bls-mass-layoffs-continue-to-reign?source=feed#comment-770922 770922
High unemployment is in fact a deliberate policy of the Obama administration, which is seeking to drive down the conditions of the working/middle class in order to restore profitability of American companies. I mean, the Man has rejected any serious jobs program or further stimulus measures so it is, in my opinion, an obvious administration policy goal.]]> Sat, 21 Nov 2009 18:37:23 -0500
High unemployment is in fact a deliberate policy of the Obama administration, which is seeking to drive down the conditions of the working/middle class in order to restore profitability of American companies. I mean, the Man has rejected any serious jobs program or further stimulus measures so it is, in my opinion, an obvious administration policy goal.]]> http://seekingalpha.com/article/173494-roubini-on-unemployment-the-worst-is-yet-to-come?source=feed#comment-766756 766756 "
For now, tighten up our belts, lower wages and salaries, then we could become once again competitive.
"

You mean for the overpaid CEO's right?

Thought so...]]> Thu, 19 Nov 2009 02:29:14 -0500 "
For now, tighten up our belts, lower wages and salaries, then we could become once again competitive.
"

You mean for the overpaid CEO's right?

Thought so...]]> http://seekingalpha.com/article/173954-food-insecurity-another-measure-of-economic-distress-skyrockets?source=feed#comment-766746 766746
However during the last 25 years (can go as far back as 30) median wages have not kept up with inflation. Needless to say, food, a commodity, has gone up much more than inflation. Also during the last 25 years more of the cost of health care has been shifted onto the "back" of the working/middle class. So, for the last 25 years, reduced wages, reduced benefits, and now, with the still developing Greater Depression, in my opinion, millions have been sacked, millions more remained with reduced hours, and further reductions in benefits, if they exist at all.

Barack Obama is qutoed as saying this report is "unsettling". Actually, I find it embarrassing. I am embarrassed that this is international news in the supposed most advanced and civilized nation in the history of the world... right, one by one the contradictions of capitalism, as it is practiced in the USA, are becoming glaringly difficult to ignore.

For the record, I am a capitalist and benefit from it but I'm not blind nor do I ignore its contradictions.]]> Thu, 19 Nov 2009 01:50:10 -0500
However during the last 25 years (can go as far back as 30) median wages have not kept up with inflation. Needless to say, food, a commodity, has gone up much more than inflation. Also during the last 25 years more of the cost of health care has been shifted onto the "back" of the working/middle class. So, for the last 25 years, reduced wages, reduced benefits, and now, with the still developing Greater Depression, in my opinion, millions have been sacked, millions more remained with reduced hours, and further reductions in benefits, if they exist at all.

Barack Obama is qutoed as saying this report is "unsettling". Actually, I find it embarrassing. I am embarrassed that this is international news in the supposed most advanced and civilized nation in the history of the world... right, one by one the contradictions of capitalism, as it is practiced in the USA, are becoming glaringly difficult to ignore.

For the record, I am a capitalist and benefit from it but I'm not blind nor do I ignore its contradictions.]]> http://seekingalpha.com/article/173913-chance-of-a-depression-now-5-percent?source=feed#comment-764621 764621
Good luck to all.]]> Tue, 17 Nov 2009 21:43:01 -0500
Good luck to all.]]> http://seekingalpha.com/article/172493-all-bubbles-are-equal-but-some-are-more-equal-than-others?source=feed#comment-760199 760199 Sat, 14 Nov 2009 11:09:38 -0500 http://seekingalpha.com/article/172965-the-unemployment-rate-illusion?source=feed#comment-758183 758183
To make matters worse, in the Obama administration the question of how to eliminate mass unemployment has become a non-issue. This portends great political shocks and upheavals in the near future to the detriment of both failed political parties: Democrats and Republicans.]]> Fri, 13 Nov 2009 01:51:56 -0500
To make matters worse, in the Obama administration the question of how to eliminate mass unemployment has become a non-issue. This portends great political shocks and upheavals in the near future to the detriment of both failed political parties: Democrats and Republicans.]]> http://seekingalpha.com/article/172480-work-projects-administration-is-it-too-late?source=feed#comment-754228 754228 It was all a slogan, "build bridges instead of bombs". We are still dropping bombs in Afganistan, and we still aren't building bridges at home.
"

Exactly, Obama has been all talk and no "show" for the working class/middle class. His actions show that the primary concern of policy makers, Democrats and Republicans, are to safeguard the wealth and interests of the Financial Oligarchy, or banskers, the very same group responsible for the financial crisis which has precipitated the economic crisis for the American masses.

In short, the masses can expect no relief from the attacks on their livelihoods, increased taxes, decreased benefits, etc., until a third poitical party is formed, independent of the Democrats and Republicans, which does more than "spew" popular slogans while behind close doors writing legislation for the benefit of its oligarchic masters. What is needed is a third party for the masses of the American working/middle class.]]> Tue, 10 Nov 2009 15:16:12 -0500 It was all a slogan, "build bridges instead of bombs". We are still dropping bombs in Afganistan, and we still aren't building bridges at home.
"

Exactly, Obama has been all talk and no "show" for the working class/middle class. His actions show that the primary concern of policy makers, Democrats and Republicans, are to safeguard the wealth and interests of the Financial Oligarchy, or banskers, the very same group responsible for the financial crisis which has precipitated the economic crisis for the American masses.

In short, the masses can expect no relief from the attacks on their livelihoods, increased taxes, decreased benefits, etc., until a third poitical party is formed, independent of the Democrats and Republicans, which does more than "spew" popular slogans while behind close doors writing legislation for the benefit of its oligarchic masters. What is needed is a third party for the masses of the American working/middle class.]]> http://seekingalpha.com/article/172187-what-if-u-s-social-fabric-tears?source=feed#comment-752882 752882
The early Roman Republic army was composed of the lower class citizens who were given a pension, or sizable plot of land after serving 20 years. Unprecedented in ancient times and led to the development of a strong working/middle class which also powered the early Roman Republican army to greatness and eventual domination of most of Europe. I guess you could say the pension was a strong motivator of the citizenry.

However, it was also the practice of ancient times to take slaves, especially to make slaves of the conquered peoples. So, with each new territory/province conquered more and more slaves were brought into the Republic while at the same time, the ruling class corrupted the Senate to allow the confiscation of lands belonging to Roman soldiers who usually were in the field for years, at a time.

The end result was the increasingly large supply of slave labor was used to work the confiscated lands of the lower classes and thus began the decline of the Republic and its transition into Empire; because only through absolute rule could the ruling class continue to have its way.

Needless to say, a long process of deteriorating battle readiness of the Roman army also ensued and as time progressed more and more barbarian mercenaries were brought into the army to deal with this matter. By this time, the mercenaries had better morale than Roman citizen soldiers. I guess having the ruling class take your pension make dampen morale, somewhat...

To make the story short, yes, the ruling class got everything it wanted, it accumulated massive unprecedented wealth, and a few crazy emperors along the way.

But by the beginning of the end, when the barbarian Germanic hordes crossed the frozen rivers beginning in the third century AD, the rich, or ruling class, did not have the numbers in the army to hold back the massive numbers pouring across the border. In fact, most of the Roman Empire army by that time was barbarian mercenaries so we all know the end of that story.

By the end of the beginning of the end, the ruling class had lost it all and had been replaced by a barbarian ruling class. The masses? Well, to them life continue pretty much as it had before, with only a change of overlords.

Morale of the story is this: the middle class is the only thing separating the "barbarians" from the ruling class. The American ruling class destroys it at its peril.]]> Mon, 09 Nov 2009 16:05:06 -0500
The early Roman Republic army was composed of the lower class citizens who were given a pension, or sizable plot of land after serving 20 years. Unprecedented in ancient times and led to the development of a strong working/middle class which also powered the early Roman Republican army to greatness and eventual domination of most of Europe. I guess you could say the pension was a strong motivator of the citizenry.

However, it was also the practice of ancient times to take slaves, especially to make slaves of the conquered peoples. So, with each new territory/province conquered more and more slaves were brought into the Republic while at the same time, the ruling class corrupted the Senate to allow the confiscation of lands belonging to Roman soldiers who usually were in the field for years, at a time.

The end result was the increasingly large supply of slave labor was used to work the confiscated lands of the lower classes and thus began the decline of the Republic and its transition into Empire; because only through absolute rule could the ruling class continue to have its way.

Needless to say, a long process of deteriorating battle readiness of the Roman army also ensued and as time progressed more and more barbarian mercenaries were brought into the army to deal with this matter. By this time, the mercenaries had better morale than Roman citizen soldiers. I guess having the ruling class take your pension make dampen morale, somewhat...

To make the story short, yes, the ruling class got everything it wanted, it accumulated massive unprecedented wealth, and a few crazy emperors along the way.

But by the beginning of the end, when the barbarian Germanic hordes crossed the frozen rivers beginning in the third century AD, the rich, or ruling class, did not have the numbers in the army to hold back the massive numbers pouring across the border. In fact, most of the Roman Empire army by that time was barbarian mercenaries so we all know the end of that story.

By the end of the beginning of the end, the ruling class had lost it all and had been replaced by a barbarian ruling class. The masses? Well, to them life continue pretty much as it had before, with only a change of overlords.

Morale of the story is this: the middle class is the only thing separating the "barbarians" from the ruling class. The American ruling class destroys it at its peril.]]> http://seekingalpha.com/article/171975-how-warren-buffett-is-smarter-than-the-g20?source=feed#comment-751839 751839 I think unemployment is overrrated if 70% of our GDP is consumer driven and 25% of the peopel have over 90% of the assets then the stock market should fine with all this excess liquidity and spending should resume.
"

That's the problem, if your figures that 25% have 90%+ of the assets. That is what brought about the crisis of capitalism, a crisis of overproduction. Quite simply, wealth became, once again, too concentrated, as it did in the 1920's, and the velocity of money collapsed... Which directly lead to the still unfolding, in my opinion, Greater Depression.

But, since the USA mainstream media is controlled by seven men (oligarchs) all you hear is Greater Recession.... If you believe that than you will also believe the unemployment rate is really 10.2% nationally, that recent GDP of 3.5% means "recession over", and that we have two political parties with FUNDAMENTAL differences acting completely on behalf of the American masses.

Ok, I think I made the point although much more can be written about the contradictions of American Capitalism and its "democracy", the best that money can buy. Which is to say, those with the most money get the most democracy.

By the way, another very interesting article by the author.
"
We hollow out the middle of the global economy – with a few people doing ever better and most people struggling to raise their living standards. Increasing commodity prices hit hard at poorer people everywhere (recall the effects of the relatively mild run-up in food and energy prices in the first half of 2008). Global volatility of this nature helps big business but at the cost of undermining the middle class.
"

From the quote it looks like the propaganda machine of the financial oligarchy will have a hard time selling capitalism as the best economic system for the masses. I mean, when the masses come to accept that they are out of a job, out of the means to feed/clothe their families simply because there is no profit in it for the capitalist elites, well, I'm sure readers can put 2+2 together on that one.]]> Sun, 08 Nov 2009 22:14:14 -0500 I think unemployment is overrrated if 70% of our GDP is consumer driven and 25% of the peopel have over 90% of the assets then the stock market should fine with all this excess liquidity and spending should resume.
"

That's the problem, if your figures that 25% have 90%+ of the assets. That is what brought about the crisis of capitalism, a crisis of overproduction. Quite simply, wealth became, once again, too concentrated, as it did in the 1920's, and the velocity of money collapsed... Which directly lead to the still unfolding, in my opinion, Greater Depression.

But, since the USA mainstream media is controlled by seven men (oligarchs) all you hear is Greater Recession.... If you believe that than you will also believe the unemployment rate is really 10.2% nationally, that recent GDP of 3.5% means "recession over", and that we have two political parties with FUNDAMENTAL differences acting completely on behalf of the American masses.

Ok, I think I made the point although much more can be written about the contradictions of American Capitalism and its "democracy", the best that money can buy. Which is to say, those with the most money get the most democracy.

By the way, another very interesting article by the author.
"
We hollow out the middle of the global economy – with a few people doing ever better and most people struggling to raise their living standards. Increasing commodity prices hit hard at poorer people everywhere (recall the effects of the relatively mild run-up in food and energy prices in the first half of 2008). Global volatility of this nature helps big business but at the cost of undermining the middle class.
"

From the quote it looks like the propaganda machine of the financial oligarchy will have a hard time selling capitalism as the best economic system for the masses. I mean, when the masses come to accept that they are out of a job, out of the means to feed/clothe their families simply because there is no profit in it for the capitalist elites, well, I'm sure readers can put 2+2 together on that one.]]> http://seekingalpha.com/article/172100-global-wages-race-to-the-bottom-narrative-too-simplistic?source=feed#comment-751749 751749
lol Sorry, I just had to laugh, about the "benefits", that is.]]> Sun, 08 Nov 2009 21:00:17 -0500
lol Sorry, I just had to laugh, about the "benefits", that is.]]> http://seekingalpha.com/article/171839-a-global-problem-with-no-solution?source=feed#comment-748611 748611
There is no solution within the limits of the profit system, none. Been there tried that, as the historians among us know. Other than a massive expansion into new markets, like the opening up of the New World by the European capitalists in the 15th century, or the opening up of China, and then the former Soviet territories, forget about it.

We can't even try what worked last time the limits of the profit system were reached in the 1930's, World War. I mean, imagine the conclusion to that among combatants armed with nuclear weapons. Sure, there will be massive profits to be made in the reconstruction later, but who will care? As Eisenstein said in reference to a nuclear Third World War, "I don't know how WWIII will be fought, but the fourth will be fought with sticks and stones."

However, for the hear and now, get your shorts ready, because from now on, the "easy" money will be made on the downside as, sad to say, the unfolding Greater Depression sinks into the consciousness of the masses.]]> Fri, 06 Nov 2009 15:06:21 -0500
There is no solution within the limits of the profit system, none. Been there tried that, as the historians among us know. Other than a massive expansion into new markets, like the opening up of the New World by the European capitalists in the 15th century, or the opening up of China, and then the former Soviet territories, forget about it.

We can't even try what worked last time the limits of the profit system were reached in the 1930's, World War. I mean, imagine the conclusion to that among combatants armed with nuclear weapons. Sure, there will be massive profits to be made in the reconstruction later, but who will care? As Eisenstein said in reference to a nuclear Third World War, "I don't know how WWIII will be fought, but the fourth will be fought with sticks and stones."

However, for the hear and now, get your shorts ready, because from now on, the "easy" money will be made on the downside as, sad to say, the unfolding Greater Depression sinks into the consciousness of the masses.]]> http://seekingalpha.com/article/171393-what-if-world-governments-had-washed-their-hands-of-the-financial-crisis?source=feed#comment-745645 745645
Did Mr. DeLong see the financial crisis coming? I have yet to research his archives, but unless he did, I would not put too much credence into his spin of things.

For the record, Mr. DeLong does have other more interesting articles.]]> Thu, 05 Nov 2009 03:50:15 -0500
Did Mr. DeLong see the financial crisis coming? I have yet to research his archives, but unless he did, I would not put too much credence into his spin of things.

For the record, Mr. DeLong does have other more interesting articles.]]> http://seekingalpha.com/article/170528-recession-hardship-is-painful-but-can-be-beneficial?source=feed#comment-745421 745421
Of course, the 30 year hardship period also coincided with 30 boom years for capital and the top 5%, especially the top 1% of income earners, but, for the bottom 95%, well, maybe they will have to endure another couple generations to see the benefit of it all?]]> Wed, 04 Nov 2009 20:15:36 -0500
Of course, the 30 year hardship period also coincided with 30 boom years for capital and the top 5%, especially the top 1% of income earners, but, for the bottom 95%, well, maybe they will have to endure another couple generations to see the benefit of it all?]]> http://seekingalpha.com/article/170758-california-s-high-tax-high-benefit-model-a-constantly-renegotiated-bargain?source=feed#comment-744989 744989
Why, I can even see clearly the San Bernardino mountains in the summer. Something which was impossible before the Greater Depression hit.

So, some things are getting much better but the state fiscal situation will take years to sort out.

In the meantime, I'll take the near perfect weather along with the continuously improving traffic and air quality, and am only sad that it took millions losing their jobs or leaving the state to improve the quality of life here.]]> Wed, 04 Nov 2009 17:30:42 -0500
Why, I can even see clearly the San Bernardino mountains in the summer. Something which was impossible before the Greater Depression hit.

So, some things are getting much better but the state fiscal situation will take years to sort out.

In the meantime, I'll take the near perfect weather along with the continuously improving traffic and air quality, and am only sad that it took millions losing their jobs or leaving the state to improve the quality of life here.]]> http://seekingalpha.com/article/171166-capitalism-vs-the-flu?source=feed#comment-744910 744910
"
Paul Hotchkiss, a support manager at a Wal-Mart store in Hastings, Minn., said the point system pressured him to report to work two weeks ago even though he had swine flu.

There are a lot of people who have swine flu right now who are going in because they worry about getting fired for having too many points,” Mr. Hotchkiss said.
"

I suspect the swine flu will eventually mutate into something more serious. I have no basis for this but I do have an education in immunology so I know something about viruses and immune systems.

Anyways, great article, I'm staying away from as many places as possible that might serve as a vector for the swine flu.

By the way, if it mutates to the extent the 1918 Spanish flu virus did, there will be few places left, outside of massive quarantines, to escape to. Of course, by then capital will take huge losses but that's what capital does: no action if there's no profit or loss of profit potential...

Yes, I can afford to do that.]]> Wed, 04 Nov 2009 16:45:38 -0500
"
Paul Hotchkiss, a support manager at a Wal-Mart store in Hastings, Minn., said the point system pressured him to report to work two weeks ago even though he had swine flu.

There are a lot of people who have swine flu right now who are going in because they worry about getting fired for having too many points,” Mr. Hotchkiss said.
"

I suspect the swine flu will eventually mutate into something more serious. I have no basis for this but I do have an education in immunology so I know something about viruses and immune systems.

Anyways, great article, I'm staying away from as many places as possible that might serve as a vector for the swine flu.

By the way, if it mutates to the extent the 1918 Spanish flu virus did, there will be few places left, outside of massive quarantines, to escape to. Of course, by then capital will take huge losses but that's what capital does: no action if there's no profit or loss of profit potential...

Yes, I can afford to do that.]]> http://seekingalpha.com/article/171155-despite-inflation-the-social-fabric-remains-intact?source=feed#comment-744646 744646
What we have here is, fundamentally, a crisis of capitalism, or, a crisis of over-production. This means that consumption levels that were previously driving economic production were a direct result from having a large portion of the populace, relative to now, earning enough money so that some were able to save what they felt was prudent and still consume enough to absorb their nation's productive capacity.

This is obvious to the serious strategists of capital, and it should also be obvious to you, the "little" investor and predominant reader, so that you're not taken up and swept away by all the propaganda talk of "green shoots", or that Chinese growth will avert a world-wide depression, etc....

The policies and practices that led to the present crisis can be traced back to the coming to power of Margaret Thatcher in Britain in 1979 and the election of Ronald Reagan in 1980. Their dual victories led to a repudiation of the managed capitalism advocated by John Maynard Keynes and the introduction of the free-market “fundamentalism” of Milton Friedman.

However, this change itself occurred as a response by powerful sections of the ruling class in Britain and the United States to an already far-advanced crisis of the capitalist system. If you recall, or care to reference, as far back as 1967, there were growing indications that the mechanisms devised by Keynes to stabilize and rebuild capitalism in the aftermath of World War II were breaking down.

The system of dollar-gold convertibility adopted at the Bretton Woods Conference of 1944, came under increasing pressure and eventually broke down as a result of three inter-related factors:

1) The first was the gradual erosion in the course of the 1950s and 1960s of the dominant economic position that the United States had enjoyed in the aftermath of the Second World War.

2) The second was a general decline in the rate of profit in the mid-1960s that placed considerable pressure on American, European and Japanese corporations and intensified global competitive pressures.

3) Finally, the militancy of the working class, throughout the world, frustrated efforts by the capitalist class to find a way out of the crisis through reduction in wages and benefits of the working class. What is now called "restructuring".

The three factors above, or advanced crisis of the capitalist system, were eventually resolved by three events that signaled the beginning of a successful counter-offensive by the ruling class against the previous decades' concessions won by the masses of the working/middle class. This also planted the "seeds" which directly lead to the present crisis of over-production now some 30 years later.

1) The counter-offensive began with the appointment by President Carter, a Democrat, of Paul Volcker as chairman of the Federal Reserve. Volcker immediately set about to break the back of working class militancy by raising interest rates to unprecedented levels, thus provoking a severe recession and driving up unemployment.

2) The second event was the announcement by Chrysler that it would shut down a major production facility in Detroit, the famous Dodge Main plant in Hamtramck that employed several thousand workers. This decision was accepted by the UAW bureaucracy by deciding to grant Chrysler major concessions on wages and work rules. Thus began a pattern of union-management "collaboration" that cleared the way for subsequent attacks on the jobs, wages, working conditions, and benefits of all sections of the American working/middle class.

3) Finally, Reagans' accession to the presidency in January 1981 accelerated and intensified the war on the working/middle class that Carter had begun in 1979 with the appointment of Paul Volcker. The defining event of the Reagan presidency—the firing of 11,000 striking air traffic controllers, members of PATCO—sent a signal to all corporations that strike-breaking and union-busting was legitimate and would enjoy the support of the government.

However, Reagan’s destruction of PATCO would not have succeeded had he not received the support of the AFL-CIO bureaucracy, which opposed any action in defense of the victimized air traffic controllers. In the years that followed, the AFL-CIO bureaucracy sanctioned a wave of government and corporate strikebreaking following the pattern of union-management "collaboration"

In practice, the alliance of the trade union bureaucracy with the Democratic Party kept the mass movement within the confines of capitalist politics and capitalist economics. This provided the ruling class with an opportunity to reverse its retreats of the previous decades and go on the offensive. In summary, under conditions in which social conflict is suppressed, by the temporary (going on 3 decades now) emasculation of the labor movement in the USA, wealth accumulation increased rapidly among the upper classes resulting in extreme levels of social inequality which has now led us to the present crisis of over-production and another still unfolding, in my opinion, Greater Depression...

Get your shorts ready because, from here on, the "easy" money will once again be made on the downside.]]> Wed, 04 Nov 2009 13:37:35 -0500
What we have here is, fundamentally, a crisis of capitalism, or, a crisis of over-production. This means that consumption levels that were previously driving economic production were a direct result from having a large portion of the populace, relative to now, earning enough money so that some were able to save what they felt was prudent and still consume enough to absorb their nation's productive capacity.

This is obvious to the serious strategists of capital, and it should also be obvious to you, the "little" investor and predominant reader, so that you're not taken up and swept away by all the propaganda talk of "green shoots", or that Chinese growth will avert a world-wide depression, etc....

The policies and practices that led to the present crisis can be traced back to the coming to power of Margaret Thatcher in Britain in 1979 and the election of Ronald Reagan in 1980. Their dual victories led to a repudiation of the managed capitalism advocated by John Maynard Keynes and the introduction of the free-market “fundamentalism” of Milton Friedman.

However, this change itself occurred as a response by powerful sections of the ruling class in Britain and the United States to an already far-advanced crisis of the capitalist system. If you recall, or care to reference, as far back as 1967, there were growing indications that the mechanisms devised by Keynes to stabilize and rebuild capitalism in the aftermath of World War II were breaking down.

The system of dollar-gold convertibility adopted at the Bretton Woods Conference of 1944, came under increasing pressure and eventually broke down as a result of three inter-related factors:

1) The first was the gradual erosion in the course of the 1950s and 1960s of the dominant economic position that the United States had enjoyed in the aftermath of the Second World War.

2) The second was a general decline in the rate of profit in the mid-1960s that placed considerable pressure on American, European and Japanese corporations and intensified global competitive pressures.

3) Finally, the militancy of the working class, throughout the world, frustrated efforts by the capitalist class to find a way out of the crisis through reduction in wages and benefits of the working class. What is now called "restructuring".

The three factors above, or advanced crisis of the capitalist system, were eventually resolved by three events that signaled the beginning of a successful counter-offensive by the ruling class against the previous decades' concessions won by the masses of the working/middle class. This also planted the "seeds" which directly lead to the present crisis of over-production now some 30 years later.

1) The counter-offensive began with the appointment by President Carter, a Democrat, of Paul Volcker as chairman of the Federal Reserve. Volcker immediately set about to break the back of working class militancy by raising interest rates to unprecedented levels, thus provoking a severe recession and driving up unemployment.

2) The second event was the announcement by Chrysler that it would shut down a major production facility in Detroit, the famous Dodge Main plant in Hamtramck that employed several thousand workers. This decision was accepted by the UAW bureaucracy by deciding to grant Chrysler major concessions on wages and work rules. Thus began a pattern of union-management "collaboration" that cleared the way for subsequent attacks on the jobs, wages, working conditions, and benefits of all sections of the American working/middle class.

3) Finally, Reagans' accession to the presidency in January 1981 accelerated and intensified the war on the working/middle class that Carter had begun in 1979 with the appointment of Paul Volcker. The defining event of the Reagan presidency—the firing of 11,000 striking air traffic controllers, members of PATCO—sent a signal to all corporations that strike-breaking and union-busting was legitimate and would enjoy the support of the government.

However, Reagan’s destruction of PATCO would not have succeeded had he not received the support of the AFL-CIO bureaucracy, which opposed any action in defense of the victimized air traffic controllers. In the years that followed, the AFL-CIO bureaucracy sanctioned a wave of government and corporate strikebreaking following the pattern of union-management "collaboration"

In practice, the alliance of the trade union bureaucracy with the Democratic Party kept the mass movement within the confines of capitalist politics and capitalist economics. This provided the ruling class with an opportunity to reverse its retreats of the previous decades and go on the offensive. In summary, under conditions in which social conflict is suppressed, by the temporary (going on 3 decades now) emasculation of the labor movement in the USA, wealth accumulation increased rapidly among the upper classes resulting in extreme levels of social inequality which has now led us to the present crisis of over-production and another still unfolding, in my opinion, Greater Depression...

Get your shorts ready because, from here on, the "easy" money will once again be made on the downside.]]> http://seekingalpha.com/article/170831-what-rebalancing-of-chinese-and-american-consumption?source=feed#comment-743901 743901 "
To revive the consumption levels that ultimately drive economic production a nation needs a large portion of its population earning enough money so that they can save what they feel is prudent and still consume enough to absorb their nation's productive capacity.
"

Well said by writer Derry above. If I may extend it further, what we have here is, fundamentally, a crisis of capitalism, or, a crisis of over-production.

This is obvious to the serious strategists of capital, and it should be also obvious to you, the "little" investor and predominant reader, so that you're not taken up and swept away by all the propaganda talk of "green shoots", or Chinese growth, etc....

The policies and practices that led to the present crisis can be traced back to the coming to power of Margaret Thatcher in Britain in 1979 and the election of Ronald Reagan in 1980. Their dual victories led to a repudiation of the managed capitalism advocated by John Maynard Keynes and the introduction of the free-market “fundamentalism” of Milton Friedman.

However, this change itself occurred as a response by powerful sections of the ruling class in Britain and the United States to an already far-advanced crisis of the capitalist system. If you recall, or care to reference, as far back as 1967, there were growing indications that the mechanisms devised by Keynes to stabilize and rebuild capitalism in the aftermath of World War II were breaking down.

The system of dollar-gold convertibility adopted at the Bretton Woods Conference of 1944, came under increasing pressure and eventually broke down as a result of three inter-related factors:

1) The first was the gradual erosion in the course of the 1950s and 1960s of the dominant economic position that the United States had enjoyed in the aftermath of the Second World War.

2) The second was a general decline in the rate of profit in the mid-1960s that placed considerable pressure on American, European and Japanese corporations and intensified global competitive pressures.

3) Finally, the militancy of the working class, throughout the world, frustrated efforts by the capitalist class to find a way out of the crisis through reduction in wages and benefits of the working class. What is now called "restructuring".

The three factors above, or advanced crisis of the capitalist system, were eventually resolved by three events that signaled the beginning of a successful counter-offensive by the ruling class against the previous decades' concessions won by the masses of the working/middle class. This also planted the "seeds" which directly lead to the present crisis of over-production now some 30 years later.

1) The counter-offensive began with the appointment by President Carter, a Democrat, of Paul Volcker as chairman of the Federal Reserve. Volcker immediately set about to break the back of working class militancy by raising interest rates to unprecedented levels, thus provoking a severe recession and driving up unemployment.

2) The second event was the announcement by Chrysler that it would shut down a major production facility in Detroit, the famous Dodge Main plant in Hamtramck that employed several thousand workers. This decision was accepted by the UAW bureaucracy by deciding to grant Chrysler major concessions on wages and work rules. Thus began a pattern of union-management "collaboration" that cleared the way for subsequent attacks on the jobs, wages, working conditions, and benefits of all sections of the American working/middle class.

3) Finally, Reagans' accession to the presidency in January 1981 accelerated and intensified the war on the working/middle class that Carter had begun in 1979 with the appointment of Paul Volcker. The defining event of the Reagan presidency—the firing of 11,000 striking air traffic controllers, members of PATCO—sent a signal to all corporations that strike-breaking and union-busting was legitimate and would enjoy the support of the government.

However, Reagan’s destruction of PATCO would not have succeeded had he not received the support of the AFL-CIO bureaucracy, which opposed any action in defense of the victimized air traffic controllers. In the years that followed, the AFL-CIO bureaucracy sanctioned a wave of government and corporate strikebreaking following the pattern of union-management "collaboration"

In practice, the alliance of the trade union bureaucracy with the Democratic Party kept the mass movement within the confines of capitalist politics and capitalist economics. This provided the ruling class with an opportunity to reverse its retreats of the previous decades and go on the offensive. In summary, under conditions in which social conflict is suppressed, by the destruction of the labor movement in the USA, wealth accumulation increases rapidly along with the level of social inequality which has now led us to the present crisis of over-production and another still unfolding, in my opinion, Greater Depression...

Get your shorts ready because fortunes will once again, be made on the downside.]]> Wed, 04 Nov 2009 06:51:21 -0500 "
To revive the consumption levels that ultimately drive economic production a nation needs a large portion of its population earning enough money so that they can save what they feel is prudent and still consume enough to absorb their nation's productive capacity.
"

Well said by writer Derry above. If I may extend it further, what we have here is, fundamentally, a crisis of capitalism, or, a crisis of over-production.

This is obvious to the serious strategists of capital, and it should be also obvious to you, the "little" investor and predominant reader, so that you're not taken up and swept away by all the propaganda talk of "green shoots", or Chinese growth, etc....

The policies and practices that led to the present crisis can be traced back to the coming to power of Margaret Thatcher in Britain in 1979 and the election of Ronald Reagan in 1980. Their dual victories led to a repudiation of the managed capitalism advocated by John Maynard Keynes and the introduction of the free-market “fundamentalism” of Milton Friedman.

However, this change itself occurred as a response by powerful sections of the ruling class in Britain and the United States to an already far-advanced crisis of the capitalist system. If you recall, or care to reference, as far back as 1967, there were growing indications that the mechanisms devised by Keynes to stabilize and rebuild capitalism in the aftermath of World War II were breaking down.

The system of dollar-gold convertibility adopted at the Bretton Woods Conference of 1944, came under increasing pressure and eventually broke down as a result of three inter-related factors:

1) The first was the gradual erosion in the course of the 1950s and 1960s of the dominant economic position that the United States had enjoyed in the aftermath of the Second World War.

2) The second was a general decline in the rate of profit in the mid-1960s that placed considerable pressure on American, European and Japanese corporations and intensified global competitive pressures.

3) Finally, the militancy of the working class, throughout the world, frustrated efforts by the capitalist class to find a way out of the crisis through reduction in wages and benefits of the working class. What is now called "restructuring".

The three factors above, or advanced crisis of the capitalist system, were eventually resolved by three events that signaled the beginning of a successful counter-offensive by the ruling class against the previous decades' concessions won by the masses of the working/middle class. This also planted the "seeds" which directly lead to the present crisis of over-production now some 30 years later.

1) The counter-offensive began with the appointment by President Carter, a Democrat, of Paul Volcker as chairman of the Federal Reserve. Volcker immediately set about to break the back of working class militancy by raising interest rates to unprecedented levels, thus provoking a severe recession and driving up unemployment.

2) The second event was the announcement by Chrysler that it would shut down a major production facility in Detroit, the famous Dodge Main plant in Hamtramck that employed several thousand workers. This decision was accepted by the UAW bureaucracy by deciding to grant Chrysler major concessions on wages and work rules. Thus began a pattern of union-management "collaboration" that cleared the way for subsequent attacks on the jobs, wages, working conditions, and benefits of all sections of the American working/middle class.

3) Finally, Reagans' accession to the presidency in January 1981 accelerated and intensified the war on the working/middle class that Carter had begun in 1979 with the appointment of Paul Volcker. The defining event of the Reagan presidency—the firing of 11,000 striking air traffic controllers, members of PATCO—sent a signal to all corporations that strike-breaking and union-busting was legitimate and would enjoy the support of the government.

However, Reagan’s destruction of PATCO would not have succeeded had he not received the support of the AFL-CIO bureaucracy, which opposed any action in defense of the victimized air traffic controllers. In the years that followed, the AFL-CIO bureaucracy sanctioned a wave of government and corporate strikebreaking following the pattern of union-management "collaboration"

In practice, the alliance of the trade union bureaucracy with the Democratic Party kept the mass movement within the confines of capitalist politics and capitalist economics. This provided the ruling class with an opportunity to reverse its retreats of the previous decades and go on the offensive. In summary, under conditions in which social conflict is suppressed, by the destruction of the labor movement in the USA, wealth accumulation increases rapidly along with the level of social inequality which has now led us to the present crisis of over-production and another still unfolding, in my opinion, Greater Depression...

Get your shorts ready because fortunes will once again, be made on the downside.]]> http://seekingalpha.com/article/170828-another-jobless-recovery-part-2?source=feed#comment-742869 742869 What puzzles me is why anyone expects anything but a jobless recovery.
"

Well, the masses still believe that capitalism works for them. In fact, there might still be a rapidly decreasing majority that believe that capitalism is the "best" economic model out there to secure a job, feed/clothe their families, and, in general advance civilization...

The past "jobless" recoveries, but especially the current one, will, in my opinion, sooner rather than later, change the class consciousness of the masses, even despite the massive propaganda machine of the Financial Oligarchy.

When that happens, Capitalism will be under its greatest threat since the 1930's Depression. So today's capitalists should be grateful that the masses still entertain the notion of actually being able to secure a job, feed/clothe their families, and see an advancement of civilization, as they have known it under the economic model of capitalism...]]> Tue, 03 Nov 2009 15:17:09 -0500 What puzzles me is why anyone expects anything but a jobless recovery.
"

Well, the masses still believe that capitalism works for them. In fact, there might still be a rapidly decreasing majority that believe that capitalism is the "best" economic model out there to secure a job, feed/clothe their families, and, in general advance civilization...

The past "jobless" recoveries, but especially the current one, will, in my opinion, sooner rather than later, change the class consciousness of the masses, even despite the massive propaganda machine of the Financial Oligarchy.

When that happens, Capitalism will be under its greatest threat since the 1930's Depression. So today's capitalists should be grateful that the masses still entertain the notion of actually being able to secure a job, feed/clothe their families, and see an advancement of civilization, as they have known it under the economic model of capitalism...]]> http://seekingalpha.com/article/167423-next-economic-crisis-already-underway?source=feed#comment-721682 721682
The masses were "sold" a "bill of goods": if, during the prolonged boom period of capital, starting from 1982 to about 2000, the economic model of capitalism failed to increase the living standards, or wages, of the masses and instead provided the illusion of wealth by substituting with massive debt, or credit, what will happen now? Now, in this crisis of capitalism, or crisis of overproduction?

Barbarism, that is what could happen. One only needs to look at the genesis of the last two world wars to see the results of capitalism when it reaches a senile state which it is now fast approaching, in my opinion. Boom and bust, and world wars or worse... Good luck to all.]]> Tue, 20 Oct 2009 05:08:01 -0400
The masses were "sold" a "bill of goods": if, during the prolonged boom period of capital, starting from 1982 to about 2000, the economic model of capitalism failed to increase the living standards, or wages, of the masses and instead provided the illusion of wealth by substituting with massive debt, or credit, what will happen now? Now, in this crisis of capitalism, or crisis of overproduction?

Barbarism, that is what could happen. One only needs to look at the genesis of the last two world wars to see the results of capitalism when it reaches a senile state which it is now fast approaching, in my opinion. Boom and bust, and world wars or worse... Good luck to all.]]> http://seekingalpha.com/article/158960-the-deflation-of-the-american-dream?source=feed#comment-692263 692263
Regarding the "Deflation of the American Dream", I recall my review of 2008 census data where in 1967-1968 an average household made about $45k/year while in 2008 it was still only $55/year, both adjusted for inflation. That represents about +22% to +30% (doing this from memory so excuse the imprecise numbers) increase in inflation adjusted wages for a period spanning 2 generations but of course, inflation more eroded all of that wage increase, and then some.

I don't have the figures for inflation from 1967 to 2008, but from 1980 to 2008 inflation has increased +175%! Clearly, the deflation has been decades in the making and is well on its way to collapsing into a "black hole": a reference to a dying super massive star which deflates, collapses on itself, and creates a black hole.]]> Sat, 26 Sep 2009 15:41:17 -0400
Regarding the "Deflation of the American Dream", I recall my review of 2008 census data where in 1967-1968 an average household made about $45k/year while in 2008 it was still only $55/year, both adjusted for inflation. That represents about +22% to +30% (doing this from memory so excuse the imprecise numbers) increase in inflation adjusted wages for a period spanning 2 generations but of course, inflation more eroded all of that wage increase, and then some.

I don't have the figures for inflation from 1967 to 2008, but from 1980 to 2008 inflation has increased +175%! Clearly, the deflation has been decades in the making and is well on its way to collapsing into a "black hole": a reference to a dying super massive star which deflates, collapses on itself, and creates a black hole.]]> http://seekingalpha.com/article/157568-ramping-up-china-s-domestic-consumption-what-s-taking-so-long?source=feed#comment-641088 641088
Recall that the masses of the USA enjoyed relative prosperity, and increased incomes, only as a result of successful widespread unionization after the dominance of USA industry with victory of the democratic capitalists vs. the fascists (non-democratic capitalists) of WWII.

Of course, the period after WWII was dominated by the Cold War, with the democratic capitalists of the Western powers vs. the anti-capitalists of the USSR which provided fertile ground for continued successful unionization on the capitalists home ground b/c, to be honest, the Western capitalists were scared to "death" that the masses would, heaven forbid, look towards the anti-capitalists' economies as any proper economic model to aspire to.

It was only under the favorable conditions explained above that the masses were able to achieve and maintain relative prosperity. However, with the decline of the anti-capitalist competitors, the Warsaw Pact countries, the capitalists of the Western democracies were less compelled to allow a greater portion of their profits towards boosting labors' wages so, starting at about 1974 or so, with the opening up of China, the race was on to increase profits at the expense of masses of the working/middle class.

This is always the case, in fact, it is the definition of capitalism, but it intensified by orders of magnitude with the introduction of first, the billion plus workers in China , and later, the hundreds of millions of workers of the collapsed USSR, all paid at "slave" level wages, relative to the working/middle classes of the Western democracies such that, only by the introduction of massive debt was the illusion of wealth able to be maintained for the masses of the Western democracies and allowing economic "game" to continue...

Until now, or rather 2007, where the maximum extent of credit had been met, and in fact, surpassed, since as recently as 2007 the savings of the American consumer were negative, so, the "game was up". The conditions which favored the masses relative prosperity in the Western democracies don't exist in China, so, I see no forces which can compel a similar relative prosperity among Chinese workers, in a scale which would replace, to any appreciable level, that which was lost by the American working/middle class starting with the 1974-1975 opening up of China, and later the collapsed USSR. In other words, it has now come full circle, and the crisis of capitalism, a crisis of over-production, has no fundamental solution, within the limits of the profit system...

If you made it this far, thanks for reading.]]> Sat, 22 Aug 2009 14:12:04 -0400
Recall that the masses of the USA enjoyed relative prosperity, and increased incomes, only as a result of successful widespread unionization after the dominance of USA industry with victory of the democratic capitalists vs. the fascists (non-democratic capitalists) of WWII.

Of course, the period after WWII was dominated by the Cold War, with the democratic capitalists of the Western powers vs. the anti-capitalists of the USSR which provided fertile ground for continued successful unionization on the capitalists home ground b/c, to be honest, the Western capitalists were scared to "death" that the masses would, heaven forbid, look towards the anti-capitalists' economies as any proper economic model to aspire to.

It was only under the favorable conditions explained above that the masses were able to achieve and maintain relative prosperity. However, with the decline of the anti-capitalist competitors, the Warsaw Pact countries, the capitalists of the Western democracies were less compelled to allow a greater portion of their profits towards boosting labors' wages so, starting at about 1974 or so, with the opening up of China, the race was on to increase profits at the expense of masses of the working/middle class.

This is always the case, in fact, it is the definition of capitalism, but it intensified by orders of magnitude with the introduction of first, the billion plus workers in China , and later, the hundreds of millions of workers of the collapsed USSR, all paid at "slave" level wages, relative to the working/middle classes of the Western democracies such that, only by the introduction of massive debt was the illusion of wealth able to be maintained for the masses of the Western democracies and allowing economic "game" to continue...

Until now, or rather 2007, where the maximum extent of credit had been met, and in fact, surpassed, since as recently as 2007 the savings of the American consumer were negative, so, the "game was up". The conditions which favored the masses relative prosperity in the Western democracies don't exist in China, so, I see no forces which can compel a similar relative prosperity among Chinese workers, in a scale which would replace, to any appreciable level, that which was lost by the American working/middle class starting with the 1974-1975 opening up of China, and later the collapsed USSR. In other words, it has now come full circle, and the crisis of capitalism, a crisis of over-production, has no fundamental solution, within the limits of the profit system...

If you made it this far, thanks for reading.]]> http://seekingalpha.com/article/157057-los-angeles-ports-face-a-grim-future?source=feed#comment-640545 640545 Fri, 21 Aug 2009 18:44:50 -0400 http://seekingalpha.com/article/157296-is-a-two-track-economy-emerging-from-the-rubble?source=feed#comment-639275 639275
The only reason why the senile form of capitalism was allowed to exist in Latin America, among other places, was because the masses of the Western "democracies" were under the illusion that their form of capitalism actually was to their benefit so minimal to no effort was put forward in preventing the American military and financial machines in supporting the corrupt elites of the senile capitalistic states of Latin America.

This allowed a perpetual extraction of massive profits by American corporations to the detriment of the local populace and the steady off-shoring of manufacturing American jobs.

It has come back full circle though, and the masses of the Western "democracies" will, eventually, come to see the capitalist bosses as the enemy they always really were. In other words, it looks like capitalism will have another fight for its "life" again, in the early 21st century, as it did in the early 20th century...

People never learn history, and the cycles are doomed to repeat, it seems.]]> Fri, 21 Aug 2009 03:23:42 -0400
The only reason why the senile form of capitalism was allowed to exist in Latin America, among other places, was because the masses of the Western "democracies" were under the illusion that their form of capitalism actually was to their benefit so minimal to no effort was put forward in preventing the American military and financial machines in supporting the corrupt elites of the senile capitalistic states of Latin America.

This allowed a perpetual extraction of massive profits by American corporations to the detriment of the local populace and the steady off-shoring of manufacturing American jobs.

It has come back full circle though, and the masses of the Western "democracies" will, eventually, come to see the capitalist bosses as the enemy they always really were. In other words, it looks like capitalism will have another fight for its "life" again, in the early 21st century, as it did in the early 20th century...

People never learn history, and the cycles are doomed to repeat, it seems.]]> http://seekingalpha.com/article/156832-social-security-time-to-uncap-fica?source=feed#comment-635726 635726
It's also being used for disability benefits, not just for retirements. So, unless you are on the left to far left, you should have a problem with this. Personally, I would rather have socialism for the poor than the wealthy elites of Wall Street or industry... ]]> Tue, 18 Aug 2009 21:24:55 -0400
It's also being used for disability benefits, not just for retirements. So, unless you are on the left to far left, you should have a problem with this. Personally, I would rather have socialism for the poor than the wealthy elites of Wall Street or industry... ]]>