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 31/5/2016: Linux Lite 3.0, Alpine 3.4.0, Krita 3.0

    Links for the day



  2. Data Mining Company: EPO is Like Suicide

    LinkedIn, one of several giants that spy on people to determine what's on their mind and what's similar to them, has yielded the above (for EPO)



  3. Patents Roundup: When the Patent Systems Turn Against People and Adjust According to Patent Lawyers and Their Largest Clients

    A look at the Singaporean, US, and Chinese patent systems, which are all becoming more aggressive and more disconnected from public interests, in favour of large multinational corporations



  4. Microsoft's Former Chief Patent Counsel Praises Elevation of Software Patents in Microsoft Case, Adds to Cherry-Picking and Lobbying by Patent Lawyers

    Microsoft, which is renowned (or notorious) for patent extortion against Linux, is still a big contributor to software patenting policy and Shelston IP -- much like Microsoft's front groups -- pretends to speak for small businesses in an effort to spread software patents outside the US (in spite of Alice)



  5. Extremely Dodgy Dealings at the European Patent Office

    Yet another dodgy contract between Battistelli's EPO and private contractors overseas, this time in an effort to whitewash or cleanse the image of the EPO's current regime



  6. The EPO's Media Partners Like Les Echos Already Produce EPO Puff Pieces (Marketing/Stenography)

    EPO promotion disguised as reporting or journalism, as seen in the media partners of the EPO well before these partnerships even begin



  7. Unitary Microsoft: EPO Excludes People Who Are Not Microsoft Customers From UPC Participation

    The EPO just can't help providing special treatment to Microsoft, not only when it comes to patent applications but also when it comes to rejecting stakeholders/applicants who dare not become Microsoft customers



  8. Links 30/5/2016: Linux 4.7 RC1, Best Linux Distros

    Links for the day



  9. Make Nothing, Sue Everybody: The Reality of Patent Trolls Increasingly Understood by the 'Mainstream'

    New patent stories and even extensive coverage at PBS, which dedicated a whole program to these matters but failed to address the core issue, which is software patenting



  10. [ES] Advertencia: La Vigilancia de la EPO Surveillance Puede Haberse Convertido en Más Intrusiva

    BlueCoat, que la EPO usa para oprimir a sus empleados en sus premisas Europeas, acaba de ajustar más y hacerse más intrusiva y los empleados pueden estar en riesgo



  11. [ES] Tarjeta de Victima Termina en Otra Torpeza para Battistelli Seis de su Guardia Pretoriana

    Battistelli esta destruyéndo lo que queda de la reputación de la EPO (después de las décadas que le costó a ella construírla) mientras los medios continúan escrutinando su desastroso régimen



  12. [ES] La EPO esta Excelente, Dice Sitio de ‘Noticias’ Conectado a Ella

    Los caraduras de la ‘revista’ IAM, viejo aliado de la EPO, da la impresión a la gente de que en la EPO todo esta bien y dandy aunque claramente ese no es el caso



  13. New EPO Caricature: Nouveaux Garde-Vélo (New Bicycle Guards)

    A new cartoon poking fun at Battistelli's bicycles and the perceived threat these are under



  14. Battistelli's 'Special Relationship' With Portugal and the 'Inventor of the Year' Charade

    What makes Portugal rather unique when it comes to Mr. Battistelli, who is allegedly desperate for support from smaller countries whose vote is easier to 'win'



  15. Patent Lawyers' Marketing Dominates and Marginalises Meaningful Analyses of Software Patenting in the US

    In an effort to create demand for software patents again, patent lawyers produce a huge heap of so-called 'analyses' which piggyback just one single decision (the exception, not the norm)



  16. A Mix of Patent Aggression and Sanctions/Raids (Using Controversial Patents) Against East Asian Companies

    New stories that demonstrate patent protectionism and show how Western industry, which barely makes anything anymore, relies on patents (software and design patents included) and this self-serving patent regime perpetuates itself even in Asia, where almost everything is actually being manufactured (and often/increasingly designed/developed too)



  17. Rumour: Battistelli Wants to Extend the Term of Topić's EPO Appointment in Spite of Criminal Charges Against Him

    The EPO's 'ringleader', Mr. Battistelli, is trying to keep his confidants (like Mr. Minnoye and Željko Topić) together for several more years to come, even defying rules regarding retirement age



  18. Links 29/5/2016: NetBSD 7.0.1, Genode OS 16.05

    Links for the day



  19. [ES] La Gerencia de la EPO Bajo Creciénte Estres por las Autoridades Legales Croatas, Políticas Alemanas, y los Medios Italianos

    Las cosas no son color rosa como la calma relativa sugiere, y esperamos en las próximas semanas mayores eventos otros que la protesta en todas las sedes de la EPO a través de Europa



  20. [ES] Los Medios de Comunicación Comienzan a Informar al Público Europeo Acercas de las Desventájas de la UPC Mientras que la EPO Acelera su Cabildeo por Ratificación

    La vergonzósa promoción de la UPC por parte de la EPO da otro paso adelánte mientras que venues de la prensa Europea (incluso canales de televisión) comienzan a explorar el arreglo secreto que es negociado por los abogados de patentes (con clientes corpórativos) y las oficinas de patentes, no el público o cualquier grupo que represente los intereses del público en general



  21. [ES] Algunos Detalles Acerca de ¿Cómo el Presidente de la EPO Es Rumoreado Estar Comprando Votos, y el Porqué es Suficientemente Base Para un Despido Inmediato?

    Algo de información tras las cortinas y una detallada explicación de la dependencia finánciera sistemática, creada por Battistelli a un costode €13 millónes o más, la cuál evita una efectiva supervisión de Battistelli



  22. Mishi Choudhary and Mike Masnick Explain Why India Should Reject Software Patents

    Both an Indian activist-lawyer and a widely-recognised author from the US explain to Indians why over-reliance on patents -- and acceptance of patents on software in particular -- is a very bad idea



  23. Microsoft Boosters Pretend Microsoft Fights for Privacy While the Company Uses Malware Tactics to Put Keyloggers on Everyone's Computers

    In spite of malware-inspired tactics that should land Microsoft in courts of law all around the world (as a defendant), Microsoft-friendly circles pretend that the company fights for people's rights like privacy -- all this when Microsoft installs keyloggers on people's PCs without their consent and obviously against their will



  24. Battistelli's Assault on EPO Staff's Right to Strike in Relation to French Politics and That 'Bicycle' Pretext for Crackdowns

    The latest bicycle 'gossip' and how it's being used, based on expectations from EPO staff, to introduce further crackdowns on human/labour rights



  25. Vice-President of the EPO Under Investigation: Treason, Abuse, Violations, Giving and Receiving Bribes

    An English translation of documents involving the Organised Crime Section of the Criminal Police Department in Zagreb, where the Vice-President of the EPO faces criminal charges



  26. EPO Management Warns People About Scams When the EPO's Management is Itself Falling for Scams

    Jesper Kongstad, the Chairman of the Administrative Council of the European Patent Organisation, helps demonstrate that not even the EPO is intelligent enough to spot an obvious scam



  27. Links 28/5/2016: Wine 1.9.11, New Gentoo

    Links for the day



  28. Links 27/5/2016: Android for Raspberry Pi, Google Beats Oracle in Court

    Links for the day



  29. Warning: EPO Surveillance May Have Just Gotten Even More Intrusive

    BlueCoat, which the EPO uses to enable oppression inside its European premises, has just gotten even nastier and staff may be at risk



  30. Victim Card Ends up in Another Blunder for Battistelli and His Six Bodyguards

    Battistelli is wrecking what's left of the EPO's reputation (after decades it took the Office to earn it) as the media continues to scrutinise his appalling regime


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