Wednesday, April 13, 2016

The Root of Rising Inequality: 
Our "Lawnmower" Economy
[The podcast below is a great discussion of the 'financial innovation games' that enrich the few at the expense of the many. The enrichment that is going on does not create new wealth for the whole economy. It redistributes wealth to the wealthy much as 'welfare' redistributes income. Which is more insidious? Redistribution of income to the poor or to the wealthy? Neither one is a good thing.]
slightly paraphrased: 'After decades of denial, the mainstream has finally conceded that rising income and wealth inequality is a problem--not just economically, but politically, for as we all know wealth buys political influence/favors  .. This is not free market capitalism; it is predatory exploitation being passed off as capitalism. This predatory exploitation is only possible if the central bank and state have partnered with financial Elites to strip-mine the general population to benefit the 'special privileged' few .. This has completely distorted the economy, markets, central bank policies, and incentives' .. [our words:The 'Elites' benefit from a centrally planned economy that deceives the people by claiming to be 'free market'. In reality, it is anything but 'free market'. A tiny but wealthy, powerful & connected group rely on] 'the central bank and state for nearly free money & bail-outs. It guarantees that profits are private but losses are shifted to the government."
- Charles Hugh Smith*
link here to the reference

1 comment:

Anonymous said...

SoT – John Titus: The Only Solution Is A Revolution

The illusion of freedom will continue as long as it’s profitable to continue the illusion. At the point where the illusion becomes too expensive to maintain, they will just take down the scenery, they will pull back the curtains, they will move the tables and chairs out of the way and you will see the brick wall at the back of the theater. – Frank Zappa

Complete criminality has engulfed the United States’ political and economic system. Perhaps the poster-child for this plight is Bill and Hillary Clinton. It was during Clinton’s presidency that the business and political environment transitioned into a new era in this country in which corporate and political crimes began to go largely unpunished. And now Hillary Clinton, who has been committing acts of criminality dating back to her husband’s term as the Governor of Arkansas, is the front-runner to be the next President.

It is likely that even George Orwell would be horrified by this

Take Drexel Burnham and Michael Milken for example. Drexel was caught and found guilty for several acts of criminality during its reign as the “junk bond” king. Drexel was liquidated and Milken actually spent time in jail.

Fast-forward to the present. Goldman Sachs is fined $5 billion for fraud connected with its role in the mortgage market. No jail time for anyone involved and no disgorgement of personal money (bonuses) paid out that was connected with the criminal activity.

Whereas Drexel Burnham played a large role in the collapse of Savings and Loans institutions in the late 1980’s, Goldman’s fraudulent activity contributed to the housing and mortgage bubble and the subsequent de facto collapse of the banking system. For it’s role, Goldman was bailed out by the taxpayers. If Drexel had been around in after 1995, rather than up until 1989, Drexel would have been slapped with a fine and Milken would have avoided jail. Milken should be quite bitter about this.

The entirety of Congress is corrupt – they’re all basically a criminal enterprise – the Department of Justice is entirely corrupt, the entire Executive Branch is corrupt. And really that leads to the Judiciary and frankly there aren’t too many jurists who are awake and aware of what’s going on…you’ve really hobbled your Goverment by taking out two and a fraction of three Branches of Government. So that’s why I say your only solution colletively is a revolution. You have to jettison this entire Government to get us back on equal footing. – John Titus on the Shadow of Truth

The Shadow of Truth hosted John Titus of Best Evidence to discuss the implications of the elimination of the Rule of Law in the United States, gold and the hidden meaning behind the Panama Papers.