Al-USA

Another Crisis Looms Right Around the Corner

bob adamson wrote:
"
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

The Truth About Unemployment Numbers

Excellent article Mr. Goodman. Keep up the good reporting. My own economic model forecasts the floor dropping out of the economy, again, during first or second quarter 2010. If such happens, there will be no doubt that the Greater Depression will have arrived. Prepare yourself as best you are able.

On the "bright" side, even during the 1930's Great Depression there were many substantial Bear rallies of +20% or more, so, at least for the nimble, and with sad irony, I believe there will be some very good times to make very good money. Good luck to all.

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...

The Perversion of American Capitalism

I wonder what a Marxist would say about this "financial crisis". Just a thought.

Will the Fed's Overkill Succeed?

Excellent article Mr. Kim. I will indeed forward it with my own summary. Thanks for taking the time to put this down on "paper".

Bernanke Desperate, Fed Out of Ammo

Good article. I agree abolish the Fed. I also tend to be on the left economically but on the right socially and while capitalism continues to be the economic model in practice, trading is a good way to go.

A Depression and Recovery in Internet Time

"
Asia and Russia are now capitalizing rapidly because there is simply no viable alternative; Communism has failed.
"

The "communism" that failed in the USSR was but a monstrous caricature created by the monster Stalin after Lenin's death. Get your facts straight sir. Regarding Stalin, he would have been a monster in a capitalist system just as well as in a socialist system.

frflyer made some good comments but I will go further but saying that, from the perspective of the working class, capitalism is no longer delivering the goods. It hasn't been delivering the goods for the last 30 yrs or so as evidenced by the average wage of th American working man seeing no increase after inflation. The lack of increasing income was disguised by massive debt accumulation in order just to stay afloat. Of course, the ruling class used debt (leverage) for record profits during that time so, it seems to be, the capitalism has failed the working man.


frflyer said:

Your comments about the 30s depression and WW2 being the only thing that ended it smack of revisionist history in my opinion. No doubt the massive ramp up for the war played a major role in ending the depression, but I hope you aren't part of the crew who wants to rewrite the history of FDRs presidency. FDR turned more economically conservative in his approach to the depression in the late thirties and the recovery slowed as a result. Those who now claim the New Deal was a complete failure are not thinking clearly or are ideologically blinded. There was no such thing as a working middle class until the new deal. The middle class as we know it is a direct result of FDRs policies. Never before were workers so prosperous as they were after WW2. Those who want to rewrite this chapter in history would not be happy living in the robber barron era that came before it, when workers had no rights, no retirement, no vacations, no unemployment, no GI bill so they could go to college or buy a home, no ability to negotiate for better pay, no worker safety, long long hours. The programs like the CCC and the WPA gave people hope, and a sense of worth and provided sustainance and housing while they improved the infrastructure of the country. The depression followed an extreme concentration of wealth in a few hands, just like the situation today.

When, as in in 2005, the top 1% had a far bigger raise in income than the TOTAL income of the lowest 20%, something is seriously out of whack.

When for over 25 years nearly all the growth in wealth has gone to the top 20%, something is seriously out of wack.
89% went to the top 20% between 1983 and 2004. 33% to the top 1% and about 60% to the top 5%
(Reaganomics prevailed even under Clinton)

When corporate executives made 25 times worker pay in 1978, and now make 250-400 times as much, while the average worker makes 12% less in buying power than in 1978, something is seriously out of whack.

When the top 10% of families owns over 71% of wealth, and the bottom 40% of the population owns way less than 1%, something is out of whack.

When the bottom 60% of households possess only 4% of the nation's wealth, something is out of whack.

When real hourly wages between 2001 and 2004 rose only 1.6%
while the price of homes went up 17.9%, something is out of whack.

When in 2004 the top 10% owned 81% of non-home wealth, something is out of whack.

When the top 20% had 84.7% of net worth
and the same 20% owned 92.5% of non-home wealth, something is out of whack.

In 2004, the top 1% owned 44.8% of stocks and mutual funds, the top 10% owned 85.4% of stocks and funds.

Anyone who ignores this in assessing the state of the economy is just plain dishonest, or uninformed.

But hey, we wouldn't want to redistribute wealth right?

"The Pew report also found that many countries-including Norway, Finland, Canada, Sweden, Germany and France have more economic mobility than the United States does."

Yes, all those countries with mixed economies and mostly more social programs than we have. So much for social programs killing off incentive to move up economically.

And somehow the Republicans manage, each election year, to fool millions of working people into believing it's the welfare people who have taken all their money. It helps to throw the word "socialism" around a few times to scare them into voting against their own self interest.

Doug Casey: What to Do in 'The Greater Depression'

Good comments from Jubilee Year and Dean M.

Jubilee Year seems be referring to the creation of money via the fractional reserve monetary system where debt is necessary to create money.

" What's Behind the Financial Market Crisis?"
mises.org/story/3111

From the perspective of the working class, whose average incomes saw no increase, after inflation, for the last 30 years, coincidental with the beginning of the dominance of global capitalism, "joe sixpack" was, in effect, forced to resort to massive debt accumulation to maintain working class living standards. So, form this perspective Jubilee Year is most correct.

From the perspective of the investor class, and most especially the capitalist elite (ruling class), Dean M, is correct in that massive debt, or leveraging, was used to amass record profits...

So, what the working class lost, and only retained, temporarily through the use of debt, the higher classes obtained. Now however, the "gig" is up. The working class will be crushed by the coming Greater Depression while the others will "ride it out".

The working class is now becoming aware of the lie of the "free markets" that's why President Obama was selected as President to try and defuse some of this "awareness".

I read an artilce recently that long-term investors, if invested since 1995, would have been better off putting their money outside of the "free markets". The "lie" is exposed...

"Recent Policy Decisions and a Greater Depression"
seekingalpha.com/artic...
littlurl.com/2it28

In Today's Environment, Neither Technical Nor Fundamental Analysis Alone Will Work

Great article, and completely sensible, to me.

How the U.S. Government Is Footing the Stimulus Bill

Good article.

This is one of the reasons why I read SeekingAlpha. Thanks for taking the time to write the article.

$850B Stimulus Plan Signals Gold Take-Off

We don't need monetary expansion. The financial elites which bled the system dry in and contributed to its near collapse have more than enough "blood" money. Tax the ___ out of them. No expansion needed. Of course, we'll probably need something close to the French Revolution before that happens, but never say never...

A Depression and Recovery in Internet Time

Writer GMiki has it right...

The FED and its printing or $trillions does not serve the interests of the American people, but rather those of his pals, the ruling class of this courntry, aka the capitalist elites.

I can go on and on but I will instead direct the curious to the following articles:

"THE WALL STREET PONZI SCHEME CALLED FRACTIONAL RESERVE BANKING"
www.webofdebt.com/arti...

"HOW TO RESOLVE THE CREDIT CRISIS"
www.webofdebt.com/arti...

"What Hank and Ben Are Up to"
www.webofdebt.com/arti...

finally
" CRONY SOCIALISM OR FINANCIAL SOVEREIGNTY"
www.webofdebt.com/arti...

Of all the above links, the most important is the first one, "FRACTIONAL RESERVE BANKING".

Interesting times call for interesting knowledge folks.

The Secular Bear Market Continues

Very good article with interesting DJIA perspective.

My Eight Themes for 2008 Are Paying Off

It doesn't matter if he "walked the talk", in my opinion. What's important is that he seems to have the ability to ride broad trends. In my book, that's a job well done - keep it up.

Weapons of Financial Mass Destruction

Indeed, long but good.