EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

02.14.14

A Defunct Economy That Systematically Passes Wealth to the Rich

Posted in Finance at 9:48 am by Dr. Roy Schestowitz

The myth of “trickle down”

Pierre Omidyar and Richard Branson
Pierre Omidyar and Richard Branson, photo by Pierre Omidyar

Summary: Excess debt is created by the rich, who then use it to confiscate public property (austerity) and further increase their personal wealth at the expense of the public

“Central banks around the world,” explains Der Spiegel in a new report, “are pumping trillions into the economy. The goal is to stimulate growth, but their actions are also driving up prices in the real estate and equities markets. The question is no longer whether there will be a crash, but when.” The article is titled “Feeding the Bubble: Is the Next Crash Brewing?”

As explained by many people before, this so-called ‘crisis’ is a crisis of economic distribution; there is no “lack” of money (a man-made concept anyway) and resources are more then sufficient to give everyone on Earth a tolerable lifestyle without debt slavery (neither personal nor national). “Stagnation by Design” [1] is a recommended new article about this. It was written by a famous professor of economics.

It is easy to see that there is no real crisis when bankers get bailed out, CEOs of corporations receive state subsidies [2], and benefits to the public are slashed or eliminated [3] (leaving the vast majority helpless and hopeless [4,5]). The problem is not just the currency [6,7], it’s the system. This trend is spreading everywhere including Europe [8,9]. Corporations are being given welfare [10] instead of people receiving welfare [11] (some children end up in hunger in the US, in part due to this [12]). It’s the “trickle down” fiction. The US spent a great deal of time attacking competing models [13], alienating many nations to its south, so even professors of economics in the US are not speaking out against the US model [14,15], which currently confiscates what’s public [16] and gives it to just a few people [17] — so few in fact that they fit on a double decker bus and own more than the combined ownership of 3.5 billion people on Earth (that’s how unjust and wide the divide has become). Under the leadership of the Tories, the UK heads down the same path.

It was recently reported that the banking cartel now refuses to give people money they deposited [18], putting yet more barriers in this process after using economic warfare to kill people’s banks [19].

Last month we explained why Pierre Omidyar has no credibility when it comes to talking for the poor. He is himself a very rich person and despite claims that he tries to support journalism it finally turns out, based on The Intercept‘s introduction, that he is only in it for the money. Coverage of NSA files has mostly dried up as of late (reiteration of old news and smears against Snowden dominate the news). It’s like Omidyar bought off those who were capable of leading a reaction to a system of looting and oppression.

Related/contextual items from the news:

  1. Stagnation by Design

    The basic point that I raised a half-decade ago was that, in a fundamental sense, the US economy was sick even before the crisis: it was only an asset-price bubble, created through lax regulation and low interest rates, that had made the economy seem robust. Beneath the surface, numerous problems were festering: growing inequality; an unmet need for structural reform (moving from a manufacturing-based economy to services and adapting to changing global comparative advantages); persistent global imbalances; and a financial system more attuned to speculating than to making investments that would create jobs, increase productivity, and redeploy surpluses to maximize social returns.

  2. Crop subsidies kept secret by Congress in new farm bill

    When President Obama signs the farm bill today at Michigan State University, it’s unlikely he’ll mention how the new law undermines his own promises of transparency.

    The new farm bill vastly extends the taxpayer-supported crop insurance program while deliberately keeping recipients of those subsidies secret. Indeed, the final version of the law even dropped a bipartisan provision that would have at least required members of Congress and Cabinet officials to disclose such benefits.

  3. What Will 2016 Political Landscape Look Like? USA Today Has No Clue

    That the actual circumstances under which candidates ran for office in 2008 didn’t at all resemble the situation in early 2006 shows the futility of trying to pontificate about elections almost three years before they happen. But that isn’t going to stop the political press corps.

    In fact, Page is already predicting the policies the next president will have to pursue. Surprise! They involve cutting Social Security…

  4. The American Dream is Dead

    Pessimism, pessimism, and more pessimism. It’s like the whole country is on the brink of despair. Maybe Phil Graham was right, after all. Maybe we are just a nation of whiners. But I kind of doubt it. What’s really going on can be summed up in one word: Frustration. People are frustrated with the government, frustrated with their jobs, frustrated with their shitty, stagnant wages, frustrated with their droopy incomes, frustrated with their ripoff health care, frustrated with living paycheck to paycheck, frustrated with their measly cat-food retirement plan, frustrated with their dissembling, flannel-mouth president, frustrated with the fact that their kids can’t find jobs, and frustrated with the prevaricating US media that keeps palavering about that delusional chimera called the American Dream.

  5. Obama Killed the American Dream
  6. Bitcoin Enables Drug Dealing, Just as Major Banks Do

    Two weeks ago, Pascal Reid and Michel Abner Espinoza were arrested by police in Miami and charged with using the virtual currency Bitcoin to launder money. The week before, Charlie Shrem, co-founder and chief executive officer of BitInstant, was arrested in New York getting off a plane from Amsterdam. Shrem was charged by federal prosecutors with conspiracy to commit money laundering linked to alleged sales of more than $1 million in Bitcoins to people who wanted to buy drugs on Silk Road, a now defunct online marketplace.

  7. Russia Outlaws Bitcoin

    Russia’s Prosecutor General has declared use of bitcoin illegal in the country, charging that the currency is used for money-laundering and other illegal purposes.

  8. “Breathtaking” Corruption In Europe

    A recent article at the BBC discusses the findings of a report by EU Home Affairs commissioner Cecilia Malmstroem on corruption in the EU. According to the report, the cost of corruption in the EU amounts to €120 billion annually. We would submit that it is likely far more than that (in fact, even Ms. Malmstroem herself concurs with this assessment). This is of course what one gets when one installs vast, byzantine bureaucracies and issues a veritable flood of rules and regulations every year. More and more people are needed to administer this unwieldy nightmare of red tape, and naturally the quality of the hires declines over time due to the sheer numbers required.

  9. Anglophilia and the Lure of Neoliberalism in Finland

    There has been much discussion recently about international educational standards and league tables, particularly following Finland’s recent alarm over lower than expected PISA results. However, as Pasi Sahlberg of the Ministry of Education noted in an article published in The Guardian on 8th December 2013, market-based educational reform is proving damaging across the globe. How to read such results seems not entirely straightforward, and Finland’s excellence in education is, nonetheless, still upheld by the results of the Organisation for Economic Co-operation and Development.

  10. Pence mum on plans to cut tax on business equipment

    Indiana Gov. Mike Pence is keeping quiet about negotiations underway to cut the business equipment tax, a proposal that a new report shows might only bring slight economic growth to the state.

  11. AOL chief cuts 401(k) benefits, blames Obamacare and two “distressed babies”

    AOL chief executive Tim Armstrong Thursday offered a number of unusual explanations for why his company pulled back its 401(k) benefits for employees this year. The first reason: Obamacare. The second: two women at the company who had “distressed babies” in 2012.

  12. Utah School Threw Out Students’ Lunches Because They Were In Debt

    According to the Salt Lake Tribune, the child nutrition manager’s original plan was to withhold lunches for kids whose parents hadn’t paid. But cafeteria workers were unable to distinguish who was on that list before serving. Once the food had been dished out, food safety codes say it can’t be given to another student and must be thrown away.

    The children were given milk and fruit instead of a full lunch — the meal that the school says it gives any child who isn’t able to pay.

    “So she took my lunch away and said, ‘Go get a milk,’ ” recalled one student, a fifth grader named Sophia. “I came back and asked, ‘What’s going on?’ Then she handed me an orange. She said, ‘You don’t have any money in your account so you can’t get lunch.’”

  13. Latin America summit wraps up in Cuba on note of peace

    Thirty-three countries from Latin America and the Caribbean are winding up a two-day summit in the Cuban capital Wednesday with the noteworthy absence of the United States and Canada.

  14. Political Corruption and Capitalism

    Nearly daily, mass media report political corruption across the world. Government bureaucrats, from local to national to international, are exposed for having abused their offices for personal gain. That gain is usually financial, but can involve career advancement. Much of that corruption is driven and financed by capitalist enterprises. In that kind of corruption, officials enable tax avoidance, provide subsidies, make purchases and sometimes sales, and decide many other “public” matters (e.g. locating roads, zoning cities, constructing state facilities, repressing strikes, investigating corruption, negotiating international agreements, etc.).

  15. Janet Yellen and I were taught to revere capitalism. But it’s a failing system

    Janet Yellen, the United States’ Federal Reserve’s new Chair, and Iwere graduate economics students around the same time at Yale University. The professor who shaped the macroeconomics we learned was James Tobin. He taught us to be Keynesian economists: that is, to accept capitalism as the sole object and focus of our studies, to celebrate it as the best possible system, and to preserve it against its own serious faults. Keynesian economics teaches that to secure capitalism’s blessings requires systematic government intervention in the workings of the economy.

  16. Costs of Privatization Hidden in Plain Sight

    Privatization is often sold as providing higher quality services and infrastructure at lower cost. In fact, important costs are regularly overlooked. In other words, services and infrastructure have been privatized, even though keeping them public is the better choice.

  17. State of Power 2014: Exposing the Davos Class

    The Transnational Institute is proud to launch its third annual ‘State of Power’ report as the World Economic Forum meets in Davos. This anthology exposes and analyses the principal power-brokers, members of the “Davos class”, who have caused financial, economic, social and ecological crises worldwide. Unless we know which elites control our wealth and resources, understand how they influence political and social processes, and can identify the systems, structures and policies by which they maintain their power, TNI believes our hopes for advancing social and environmental justice are slim. Justice demands a recalibration of power and that requires us to better understand it.

  18. Bank Run Fears: Customers Being Forced to Provide Evidence For Why They Need Cash

    In early 2013 the country of Cyprus locked down private banking accounts and restricted access to depositor funds. It was the first widely documented instance of a “bail-in,” as bank officials and European regulators determined that bad loans taken on by the banks were now the responsibility of the banks’ customers. This led to a country-wide confiscation of 10% or more of all customer funds. In the heat of the Cyprian financial panic banks limited cash withdrawals to around $300 and ramped up security to prevent angry Cypriots from breaking down the doors.

  19. How economic warfare killed the People’s Bank

    US Investigative Journalist Michael Hastings told an incredible story when he returned from his 2010 trip, embedded with US general Stanley McChrystal in Afghanistan. The Pentagon, he revealed in his award winning book ‘The Operators’, spends $4.7bn of public money annually employing 27,000 psychological operations, marketing and public relations staff around the world. Their daily mission: to push the Pentagon line into the West’s national newspapers and broadcast bulletins.

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

What Else is New


  1. Links 17/10/2017: KDE Frameworks 5.39.0, Safe Browsing in Epiphany

    Links for the day



  2. Judge Bryson Rules Against Allergan After It Used Native American Tribes to Dodge Scrutiny of Patents (IPRs); Senator Hatch Does Not Understand IPRs

    Having attempted to dodge inter partes reviews (IPRs) by latching onto sovereign immunity, Allergan loses a key case and Senator Hatch is meanwhile attempting to water down IPRs albeit at the same time bemoaning patent trolls (which IPRs help neutralise)



  3. Rumours That António Campinos Initially Had No Competition at All (for Battistelli's Succession) Are Confirmed

    Succession at the EPO (mostly French) shows that there's little room for optimism and Battistelli's people are too deeply entrenched in the upper echelons of the EPO



  4. EPO Stakeholders Complain That the New Chairman Does Not Grasp the Issues at the EPO (or Denies These)

    Some information from inside the EPO’s Administrative Council, whose Chairman is denying (at least to himself) some of the core issues that render the EPO less competitive in the international market



  5. Another Misleading Article Regarding Patents From Rana Foroohar at the Financial Times

    In an effort to promote the agenda of patent maximalists, many of whom are connected to the Financial Times, another deceiving report comes out



  6. Monika Ermert's Reports About the Crisis at the EPO and IP Kat's Uncharacteristically Shallow Coverage

    News from inside the Council shows conflict regarding the quality of European Patents (granted by the EPO under pressure from top-level management)



  7. Patent Troll VirnetX a Reminder to Apple That Software Patents Are a Threat to Apple Too

    VirnetX, a notorious patent troll, is poised to receive a huge sum of money from Apple and Qualcomm is trying to ban Apple products, serving to remind Apple of the detrimental impact of patents on Apple itself



  8. Links 16/10/2017: Linux 4.14 RC5, Debian 9.2.1, End of LibreOffice Conference 2017

    Links for the day



  9. The Systematic Erosion of Workers' Rights and Holidays at the EPO Goes Years Back

    The legitimacy of the staff's concerns at the EPO, having seen basic labour safeguards being shredded to pieces by Battistelli for a number of years (predating even the escalation of the conflict)



  10. Articles in English and German Speak About the Decline in Quality of European Patents (Granted by the EPO)

    Heise and The Register, two sites that have closely watched EPO affairs for a number of years, speak about the real problem which is declining patent quality (or rushed examination) -- a recipe for frivolous litigation in Europe



  11. Software Patents and Patent Trolls Not a Solved Issue, But the US is Getting There

    A media survey regarding software patents, which are being rejected in the US in spite of all the spin from law firms and bullies such as IBM



  12. US Patent Trolls Are Leaving and the Eastern District of Texas Sees Patent Cases Falling by More Than Half

    The decline of patent aggression in the US and the patent microcosm's response to Justices, having ruled in TC Heartland, curtailing patent trolls



  13. Qualcomm's Nightmares Are Getting Worse as Antitrust Questions Are Raised and Assessed

    Qualcomm is getting itself deeper in trouble as fines pile up and its multi-billion dollar dispute with Apple isn't getting it anywhere



  14. Forget About Apple; Two of the Leading Phone Makers (Samsung and Huawei) Are Bickering Over Patents

    Massive Android OEMs, Huawei and Samsung, are in a big patent dispute and this time, for a change, China is a legal battleground



  15. Tim Heberden From the Glasshouse Advisory is Throwing Stones in a Glasshouse to Create Patent Litigation

    IAM's latest lobbying, aided by the patent microcosm, for a climate of feuds and disputes (to line the pockets of the litigation 'industry')



  16. Access to Medicine is More Important Than Patents

    Some of the latest news about patents that impede/deny access to crucial medication; strategic litigation from the generics sector, seeking to invalidate patents and then offer low-cost alternatives



  17. Links 14/10/2017: Windows Breaks Dutch Law, Wine 2.19 Released

    Links for the day



  18. The Patent Trial and Appeal Board (PTAB) Supported by Congress, a Federal Judge, Soon to be Supported by the Supreme Court Too?

    The Patent Trial and Appeal Board is still widely defended, except by the patent microcosm which likes (and profits from) patent trolls and litigation Armageddon



  19. Patents Are Turning BlackBerry and Nokia, Which Used Android, Into Anti-Android Fronts That Tax Android OEMs

    The Canadian BlackBerry has sued BLU in the US only to compel it to pay 'protection' money; Nokia's patents are being scattered to trolls, which are doing something similar (without risking litigation themselves)



  20. The Unified Patent Court (UPC) is Rotting Like the European Patent Office

    The Unitary Patent litigation pipe dreams (or prosecution/trolling fast lane), which Battistelli's EPO long relied on, turn out to be the road to nowhere



  21. Lying and Faking Now a Standard Procedure at the European Patent Office

    The European Patent Organisation (EPO) under the leadership (or chairmanship) of Christoph Ernst continues to relay lies from Battistelli's Office, SUEPO rejects these, the Office lies about SMEs, prioritises Microsoft (again), and probably buys fake Twitter "followers"



  22. Links 13/10/2017: X.Org Server 1.19.5, pfSense 2.4, Final Stages of Ubuntu 17.10

    Links for the day



  23. Truly Terrible 'Journalism' About António Campinos Boils Down to Lobbying and Agenda-Pushing

    The expectedly shallow coverage of the appointment (succession) of Battistelli's French pick, which will likely change nothing of significance at the European Patent Office (EPO)



  24. Under Christoph Ernst, the Council is Just a Megaphone of Battistelli's EPO, Including on Patent Quality

    The Administrative Council of the EPO does not appear to be interested in a serious, adult, scientific debate about the quality of European Patents (EPs) and is instead relaying lies from Benoît Battistelli



  25. Links 12/10/2017: Cutelyst 1.9.0, Qt Creator 4.5 Beta

    Links for the day



  26. The Hogwash Begins: Patent Microcosm's Media Pretends Campinos is Anything But Battistelli's French Succession Plan

    A survey of media coverage regarding António Campinos, the French person whom Benoît Battistelli selected as his successor at the EPO



  27. Patent Quality at the EPO (European Patents) is Slipping While Battistelli's Office Boasts “Expansion of Early Certainty” (Even Worse)

    The EPO is staring down the abyss as high-level EPO management, quite frankly as usual, looks for new ways to further exacerbate patent quality (for superficial gains in the number of granted patents) rather than improve it



  28. Former Microsoft Employee Explains Why Microsoft 'Embrace' of GNU/Linux and Free/Libre Open Source Software is Like W3C Entryism

    Microsoft's latest moves are "EEE" that "concern" him, according to this new video



  29. Links 11/10/2017: Krita 3.3.1, KDE Plasma 5.12 Plans

    Links for the day



  30. China is Getting Full of -- and Fed Up With -- Patent Trolls

    In China too, as expected, local companies are becoming rather disgusted by a wave of patent trolls, enabled by misguided officials and bad advice from the likes of IAM (which sets up events in China at the behest of the patent microcosm)


CoPilotCo

RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

CoPilotCo

Recent Posts