Al-USA

Labor Costs Are Down, but Who Really Benefits?

mgcolin wrote:

"
I don't understand all the hand wringing over lower wages in the US. The need for significantly lower employee costs is neither good or bad. It is reality - the US is a lousy place to do business because workers are just too expensive.
"

I was going to disagree and answer the above post with the theory of the velocity of money, demand destruction, etc... But, I think writer sether above "nailed it" in a different, but still succinct manner.

Very good article Trader Mark. As a short-term trader, I benefit from the market, but I fear that other capitalists, the ones who write policy, are taking this capitalist state to where Lenin described in his famous quote: "The capitalist will sell the rope used to hang him..."

In other words, the conditions for a 19th century style capitalism and the uprising of the still asleep proletariat (working/middle class) with all the bloodshed that entails as the proletariat fought against the excesses of the bourgeoisie (owners of capital) in the 19th century (up until the conclusion of the 1930's, no less) is well underway...

Global Meltdown, Part III

It appears then that the only way American, indeed, Western civilization, can progress, in the forward direction, is by abandoning the decaying form of capitalism now in practice.

It has now been exposed that the ruling class of the USA is, in fact, no different from any other "banana republic", that is, an Oligarchy. How can Democracy work when its economic model, capitalism, has been hijacked to serve the maximum interests of a very small clique?

It appears Lenin was correct after all in his description of capitalism:
"The capitalists will sell the rope used to hang them." This fabricated financial crisis is analogous to that statement.

However, there is still hope. The corrupt American Oligarchy can still be defeated by the mobilization of the masses. In fact, that is the only force which strikes fear into the hearts of soulless rulers...

The Quiet (American) Coup
www.theatlantic.com/do...

America the Tarnished
www.nytimes.com/2009/0...

Welcome to America, the World's Scariest Emerging Market
www.washingtonpost.com...

The Obama Deception Full Length
video.google.com/video...

Obama Insists Cars Improve Fuel Efficiency by 40%

I think it's a great idea.

By all means, increase the mpg.

Since private industry was soo "dump" and focused only on cars people wanted to buy, they were taken to the wall when the price of gas hit a national average of $4.11 (CA hit $4.5).

Then they taken off the wall and knocked unconscious by the present recession, perhaps depression, and now find themselves with no means by which to change strategy, even if the government was not forcing them to.

I mean, does everybody believe the current deep recession (depression?) will last forever and gas prices will remain at $2 per gallon ad infinitum?

No way, as soon as the economy recovers we'll hit $3 then $4 then who knows how much higher per gallon especially with the coming possible hyperinflation scenario as a result of "helicopter" Ben Bernanke printing $trillions of new dollars to bail out the corrupt financial aristocrats whose $trillions in derivative games brought the global economy to the edge of a cliff... And we might still fall of it so...

By all "means", bring on the increased mpg. "means".

Government Saves Beloved Banks, Shuns Automakers

Well, if you're talking about "black holes" , so is the $50 trillion in derivatives, at last count, which, as counterparties insuring against derivative defaults, almost brought down the financial system of the USA, and indeed, the world.

Now what is $700 billion going to do against the "black hole" of $50 trillion? Nothing... And yet, it was passed. Why? Because, it directly benefits the capitalist elites running this country.

Eventually, the derivatives will have to be canceled as illegal contracts, since there is no way to come up with the money, several times the global GDP. In the meantime, $700 billion from Secretary Paulson to his corrupt Wall Street buddies.

Yes, that is how this country is run folks.... If you're part of the capitalist elite, be proud, if you're not, tough, pull yourself up by your "bootstraps" as the saying goes.

By the way, very good article and a good read.