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.