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. A Lot More Fake News About the UPC, Trying to Convince People That the UK is Ratifying (It's Not, It Cannot)

    Response to some of the latest misleading (self-serving) whispers about the fate of the Unified Patent Court (UPC), which is in a deadlock due to Brexit



  2. Rumours Suggest That EPO Management is Aware of Decline in Patent Quality and is Thus Actively Lying About it to the Media/Public

    Whenever Battistelli brags about patent quality he may be consciously and deliberately lying through his teeth if the latest rumours are correct



  3. Links 17/1/2017: GIMP Plans, New Raspberry Pi Product

    Links for the day



  4. Resumption of EPO Propaganda ('Meet the President') Officially Starts Tomorrow

    Yet another one of these foolish 'Meet the President' stunts, scheduled to take place tomorrow morning



  5. Caricature: Battistelli's New Year's Resolution (More EPO Lies)

    The latest cartoon being circulated within the European Patent Office (EPO)



  6. Donald Trump Gives New Hope to Patent Aggressors and Patent Trolls

    Pessimism about the prospects of patent progress or patent reform in an age of staunchly pro-business Conservatives and glorification of protectionism



  7. More Fake News About the Unified Patent Court (UPC) Based on Lobbying Tactics From Bristows UPC and the Preparatory Committee

    Unified Patent Court (UPC) lobbying has gotten so bad that it now infiltrates general media outlets, where people are asked to just blindly assume that the UPC is coming and is inevitable, even though it's clearly in a limbo and is unlikely to see the light of day



  8. EPO Totally Silent for a Month, But Deep Inside There Are Serious Cracks

    The situation at the EPO seems to be pretty grim, even at the top-level management, and the EPO has gone into permanent silence mode



  9. Links 16/1/2017: Linux 4.10 RC4, Linux Mint 18.1 'Serena' KDE Edition Beta

    Links for the day



  10. 'Financial Director' Publishes Fake News About the Unitary Patent (UPC)

    Response to some of the latest UPC propaganda, which strives to misinform Financial Directors so as to enrich the author and his firm



  11. Independent and Untainted Web Sites About Patents Are Still Few and Rare

    Commentary about news sources that we rely on, as well as the known pitfalls or the vested interests deeply ingrained in them



  12. The 20% Rule: Patent Trolling Suffers Double-Digit Declines and Patent Troll Technicolor is Collapsing

    Significant demise or total catastrophe for the modus operandi (method) of going after companies with a pile of patents and threats of litigation



  13. US Supreme Court Did Not End Apple's Patent Disputes Over Android (Linux), More Cases Imminent

    An overview of some very recent news regarding the highest court in the United States, which has been dealing with cases that can determine the fate of Free/Open Source software in an age of patent uncertainty and patent thickets surrounding mobility



  14. Links 15/1/2017: Switching From OS X to GNU/Linux, Debian 8.7 Released

    Links for the day



  15. Number of New Patent Cases in the US Fell 25% Last Year, Thanks in Part to the Demise of Software Patent Trolls

    Litigation and prosecutions that rely on patents (failure to resolve disputes, e.g. by sharing ideas, out of court) is down very sharply, in part because firms that make nothing at all (just threaten and/or litigate) have been sinking after much-needed reform



  16. America Invents Act Improved Patent Quality, But Right Wingers Threaten to Make It Worse Again

    The past half a decade saw gradual improvement in assessment of patents in the United States, but there is a growing threat and pressure from the patent microcosm to restore patent maximalism and chaos



  17. PTAB -- Not Deterred by Courts -- Continues to Invalidate a Lot of Software Patents

    The Patent Trial and Appeal Board (PTAB) continues to make progress reforming the patent system by eliminating a lot of patents and setting an example (or new standards) for what is patent-eligible after Alice



  18. EPO Abuses Come Under Fire From Politicians in Luxembourg

    Luxembourg is the latest nation in which concerns about the EPO's serious abuses are brought up not only by the media but also by politicians



  19. Constitutionality as a Barrier and Brexit Barriers to UPC Keep the Whole Pipe Dream Deadlocked

    The UPC is still going nowhere fast, but the demise (or death) of the UPC as we know it must not be taken for granted



  20. Links 14/1/2017: Wine 2.0 RC5 and AryaLinux 2017 Released

    Links for the day



  21. Links 13/1/2017: Linux 4.9.3 and Linux 4.4.42

    Links for the day



  22. Brexit Means No UPC (Unified Patent Court)

    Now that Jo Johnson, Boris Johnson's brother, is officially declared the new minister for intellectual property in the UK everything that Lucy Neville-Rolfe wrote is as solid as paper bag on a rainy London day



  23. Patent Trolls and Software Patents: CloudTrade, Patent Practitioners Density, and Via Licensing

    Software patents armament from a British company, charted concentration of the patent microcosm in the United States, and US-leaning patent trolls that prey on China



  24. Patent Maximalism -- Like Copyright Maximalism -- Relies on Misconceptions and Mass Deception

    The latest examples of discussions about patent scope, courtesy of those looking to benefit financially by pushing such monopolies to the max



  25. Software Patents Still Promoted by IBM and Its Lobbyist (and Former Employee) David Kappos, in Defiance of Much-Needed US Patent Reform

    While the corporate media celebrates IBM as though it's some kind of 'champion' for hoarding patents that it then uses to attack companies which actually grow



  26. Brexit/Trump Effect: Patent Systems With Institutional Corruption and Nepotism

    Rumours about Britain's head of patents (and copyrights etc.) being the brother of the Brexit campaigner and Foreign Minister; meanwhile, on the other side of the Atlantic, rumours suggest that the corrupt judge Rader might be the next head of patents in the United States



  27. Links 11/1/2017: X.Org Server 1.19.1, GitHub's Atom 1.13

    Links for the day



  28. The Patent Microcosm is Already Sucking up to Donald Trump in an Effort to Enrich Itself at Everyone's Expense

    Four new examples of patent maximalists embracing/adopting the pseudo-populist slogan to advance their goals of increasing litigation (which they profit from) and undermining PTAB (which made patents great in the quality sense)



  29. Patent Quality in the United States Can Only be Assessed at the Patent Trial and Appeal Board (PTAB) and the Courts

    The travesty of patent offices in the US and China, where the goal or the accomplishment is measured in terms of the number of patents rather than their quality



  30. Gradual Collapse of Microsoft's Extensive (and External) Patent Trolling Operations

    The President of Microsoft Technology Licensing LLC (patent troll) leaves and the founder of Intellectual Ventures, Microsoft's largest peripheral patent troll, joins Sherpa Technology


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