Thursday, June 28, 2012
Wealth Redistribution
Wealth Redistribution___
Thursday, June 28, 2012
It seems appropriate for me to write about
the “GLOBAL BANKING EMERGENCE” that has so many economists running around like
a pack of dogs chasing their tails. There is SOOO much talk about the amount of
money that will be needed to cover banks losses and where it will come from;
yet, no one is asking where the money went that was lost. IF…..These banks did
really have this money, and then, at some point lost the money through bad/high
risk investments….where did the money go? If (fx) = vi then –vi = + (fx)
or something to that effect. As a loss at one end of an economy must show up as
profit or savings at another.
No one is talking about who or whom is the
recipient of the BILLIONS and BILLIONS of dollars that moved from the
banks….to someones pocket. While there is no doubt, that the Global Capitalistic
Economy that we all have to endure, has slowed to just a trickle…..even less
for some; this is not the case for everyone. As the tax payer, out of work and
under-employed, is told that he must pay for the banks losses…..the banks they
say....are now too big to fail….some very rich individual is getting even richer
and the working man…..He struggles just to hang on.
NOW…if
we go back and trace the “Evolutionary History of Capitalism” and, using the
common economic terms…..we (in the U.S.) are now as we have been for a very
long time, in our “Post Industrial” period. This simply means that the Economy
now, is based more upon services like “BANKING”, technology, consulting, retail
and investments, (often outside the country) rather than producing goods here. These
being the case….we now find yourselves in the POST….post-industrial period
known as “Economic Collapse”. But what does that really mean………………
“Economic Collapse” is really not a big deal…….if you’re among the very
wealthy. What so many people still fail to realize, even now, after seeing all
the suffering that Capitalism brings, Is that a Capitalistic Economy is not
designed for the worker/consumer to gain wealth; In fact….a Capitalistic
Economy is designed to do just the opposite, that being, to extract wealth FROM
the worker and society as a whole………Once this extraction process nears
fruition, Economic Recession ascends. This is the natural process of
Capitalism.
So what
is left for the worker to do…..well, the only sector of the now defunct Economy
where a person might find employment, is some type of service performed for the
wealthy who made for themselves enormous amounts of money at the expense of
everyone else. As it stands today….the official report from the Federal
Government says that to date…..there are 3.7 people for every one job that is
created. While this (IS) the official report, it does not take into account the
millions of workers who are not part of the data collection process, such as,
those who have maxed-out their unemployment, first time job seekers leaving
school, those leaving prisons and jails and others who would be in similar
situations. If you take the full weight of the unemployed….the number would be
closer to 5.7 or more workers per job.
I
started out this article speaking on the issues that big banks face because of
their high risk investments, which turned out to be no risk at all....as they were
and are, being handed all the cash that they might need to cover their losses
until business picks up. What we have seen thus far is the practice of “Wealth
Redistribution".....in this case, where money is siphoned off from the working tax
payer to pay for the money that the wealthy made……which was lost by the banks.
Friday, June 22, 2012
A Call For Socialism
A Call For Socialism June 21, 2012
Listening to the talkie-man on CNBC (a
financial news network)…..He says, what is needed to stimulate the Economy is
going back to the basics; lowering taxes on the rich and creating an atmosphere
that fosters growth “this means looking to emerging markets”.
This is the same “mindset” that got us
into the Economic mess that we see today. Why is that…..well, it’s relatively
simple. If, you REMOVE the over-all economic structure….of the consumer……..whom
you depend upon to buy your products…..by sending the consumer’s means to earn
a wage to another country….You also REMOVE the consumer’s ability to buy “YOUR”
products. Now….on a small scale….this
would have little effect….However…..this has been the overall trend for many
years……And, as most people know….the manufacturing sector in the U.S. and other
First-World countries, is now, for the most part, non-existent.
This trend coincides with the increased use
of credit by consumers as a way to purchase goods even though their wages have
become stagnate. These factors led to the Economic collapse that the average
worker has had to contend with for the last 7 or 8 years. Other than purchasing
power of the wealthy…..the Economy that we have now is based upon the use of
credit……and government pensions (Social Security). Many Economic observers fail
to point out the Economic impacted that the millions of retiring “Baby-Boomers”
are having upon the Economy as a whole. This fact will, however, become more
and more evident as these retirees pass-a-way……and the money that they use to
spend….is removed from the market.
Without some transference of wealth to the
consumer……There will NO Economy.
What we see
today as the Economic Disaster….is nothing more than the slow concentration and
shifting of wealth or (Buying Power) from labor (The Proletariat) to the very
rich. So where does that leave us….It’s my belief that the only way to rectify
this economy stagnation is through Socialism.
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