The Free Trade Vice To Crush US Middle Class To Dust

Video: Exclusive: Telegraph witnesses student protests from front line at Millbank Tower – Telegraph

ΩΩLook at this video!  It shows clearly how the proper response to government betrayals is to openly attack the party headquarters of the ruling elites. In this case, the Tories in London.  So long as the population is quiet, the elites can skim economies for a long, long time.  But things can erupt very suddenly as we see in England and the rest of Europe.  This rising panic on the part of the lower classes as they realize they will be ruthlessly fleeced and then worked to death means we will now enter a phase of rolling riots, revolutions, repressions and outright warfare.

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ΩΩThis is inescapable: the attempt at bailing out the richest people on earth means crushing everyone else and this, in turn, always leads to great violence or in the case of dying societies, suicidal collapses that are even worse.  We are very deep into a really vicious trade war and the US and UK have been losing every single round of this war thanks to being led by traitors who lie about the impact of trade deficits.  Instead,  they persuaded us that turning our nations into ‘banks’ would lead to us all being wealthy without being even slightly productive in the real world (making real things to sell).

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ΩΩThis, in turn, was a con game: the wealth of England, Ireland, Iceland, the US, etc was being used as the CAPITAL for these international bankers and when they got in trouble, these entire countries had to make good on the bad deals!  To pay for these bad bank deals, the entire population of major countries now have to pay higher taxes and fees and see huge reductions in social spending.  Meanwhile, the very same bankers who did this to us all get their bonuses and keep their palaces.  This ridiculous situation is extremely revolutionary.

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ΩΩIn the US, our rulers have trained us to hate socialism.  But most sane countries don’t hate socialism and now the arrogant voters in the US who cheerfully cut taxes while gobbling up cheaper imported manufactured goods are suddenly being forced to pay the piper and this means somehow conning the US voters into voting to slit their own throats while not touching the very rich who depend on our extremely expensive military to protect their international interests and above all, protect Jews in Israel.

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ΩΩNot one of the budget cut proposals says a peep about cutting aid to Israel.  Indeed, they go out of their way to try to cut Israel’s share of US taxes from other ‘foreign aid’ so this can be cut while all the benefits and looting by Jews in Israel who own our Congress will be preserved and even expanded.

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ΩΩClick here to see another view of the riots in England:  A group of protesters smashed their way into the headquarters of the Conservative party. US students already have been forced to shoulder huge debt burdens for school and can’t escape this via bankruptcy.  This new world order finance is being rammed down the throats of European students now and they are wisely rioting.  There is no other way to force the government to stop aping the US.  Our own system has killed future spending by our youth since they are too deep in debt well before even earning a penny.  They can’t buy houses, they can’t start families (like the Japanese!) and they can only grow a family if they go on welfare!  How stupid is this?

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ΩΩThe GI bill made America richer and stronger because soldiers could go to school and then start a family even while in school and then buy a home nearly right away and this huge boon is what really made our economy possible.  Now, it has been reversed: everyone pays a fortune for skills they need to work in a modern civilization and thus, begin life too in debt to do much of anything except go even deeper into debt.

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ΩΩVideo: NUS leader wants Lib Dem ‘decapitation’ – Telegraph

• Aaron Porter, President of the NUS, has been discussing plans to bring down Liberal Democrat MP’s as students protest in London over plans to raise tuition fees and cut university funding.

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ΩΩEven mild students are being pushed into more and more radical positions.  Just as the Vietnam War did this: when LBJ expanded the draft to college students, there was general panic.  I remember it very well: I was working at the local Peace and Freedom center (I made most of the leaflets) when the president of the Student Body at the University of Arizona came running in, yelling, ‘Tell me how to stop this!’  He was scared!  I went to work on a leaflet, ‘Uncle Sam wants you to die in Vietnam just like kids who can’t go to college!’ Namely, this was a class issue.  The lower working class kids were revolting in Nam, shooting their own officers or refusing to go on patrol, etc.

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ΩΩAll our major cities were burning as riots spread and the lower classes were very angry at carrying the entire load of war deaths.  But the ‘fix’ chosen by the Pentagon and LBJ gave us peaceniks a huge boost: people on the sidelines suddenly were very, very antiwar!  The great antiwar demonstrations began only after the middle class kids were being drafted, too.  So it is in social issues: now that the ruling elites are hammering the middle class kids, their apathy is vanishing very fast as it should vanish.

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ΩΩThis peculiar apathy we saw in the past was due entirely to comforts: all things were pushed into the vague future thanks to debts but now we must pay the piper.  But the rich don’t want to pay anyone, anything!  So we have a target here: everyone is asked to sacrifice something except for the very rich!  They are being told, they are OK and so they will cheerfully hog even more economic resources.  This, in turn, leads to an inevitable revolution or fascism.  I am betting on fascism since much of the richest elites happen to be rather unpopular minorities or aliens.

 

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ΩΩIreland on Brink as ‘Beggar’ for Aid After Losses by Fingleton – Bloomberg.com

 

• The economy shrank 3.5 percent in 2008 and 7.6 percent more last year, and is expected to contract by 0.3 percent this year, according to the International Monetary Fund. The unemployment rate shot up to 13.6 percent in October from 4.7 percent three years earlier, Ireland’s Central Statistics Office reported. Commercial property prices have fallen 59 percent since September 2007, according to an index compiled by London-based Investment Property Databank….Irish Nationwide had the most toxic loan book of the five financial companies whose bailout could end up costing the government 50 billion euros, according to a Sept. 30 estimate by Finance Minister Brian Lenihan. The National Asset Management Agency, set up to help cleanse the financial system, applied the biggest discount to face value — as much as 72 percent — to loans it bought from Irish Nationwide, according to statements on NAMA’s website. The agency is buying all of the building society’s commercial loans, Chairman Danny Kitchen said May 12.

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ΩΩThe banker responsible for the worst of all of this got a pension fund set up which services only himself and it has over $35 million for himself.  He still gets this and a huge multi-million bonus after bankrupting his own bank!  And this is causing huge fury in Ireland so of course, he will decamp to some other nation to feast and have fun while the Irish people pay for his mess by doing without heat, food and jobs.  Already, violence is rising there and the police are being openly attacked as they struggle to protect the elites.

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ΩΩKing Signals U.K. Inflation Is ‘Obstruction’ to More Stimulus – Bloomberg.com

 

• With inflation above the government’s 3 percent limit and economic growth rebounding in the strongest two consecutive quarters for a decade, the Bank of England last week declined to follow the U.S. Federal Reserve in adding stimulus. That halted U.K. policy makers’ creep toward extending aid after a widening debate that King described yesterday as “vigorous.”

 

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ΩΩINFLATION has succeeded in returning to Britain!  Oh yes, this is supposed to fix the mess.  By degrading the currency, savers get cheated even more but debtors can skip off of loans by paying them back with crummy money that buys much less.  This isn’t fixing the mess for the lower working class is hammered particularly hard by inflation if this is running alongside pay cuts.  And I see no ability in raising pay thanks to both the flood of aliens into Britain as well as the flood of cheaper imports!  So wages drop but inflation will rage.

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ΩΩThe government knows this which is why they are anxious to stop inflation above 3%.  But they can’t do this unless they do goofy things like cutting social services!  As well as letting in more cheap imports because this stops inflation.  So the vicious cycle continues.   This same cycle is killing the US working class, too.

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ΩΩCommodity Exchanges Increase Margin Requirements as Prices Surge – Bloomberg.com

• CME Group Inc., the largest futures market, increased margin requirements, or the amount of money traders must keep on deposit, for soybean futures by as much as 10 percent as prices jumped to a 26-month high. The CME’s Comex unit raised the requirement for trading silver to $6,500 a contract from $5,000 as the metal reached a 30-year high. ICE Futures U.S. increased margins for cotton as the commodity rose to a record and LCH.Clearnet is raising them for robusta coffee, cocoa and white sugar next week.

 

• ….Soybean futures are up 27 percent this year and silver has rallied 62 percent. Cotton has doubled in the past 12 months, the most among the 19 raw materials tracked by the Thomson Reuters/Jefferies CRB Index, which is up 16 percent. White sugar prices have jumped to the highest level since at least 1989.

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ΩΩInflation is very easy to create.  The reason why it appears difficult to outsiders is illusory: the regulators of currencies hesitate to do this easy thing because it easily goes into hyperinflation so they have to restrict their desire to simply print money as a means of evading paying for debts.  For example, Germany in 1920 demanded to pay reparations in DM instead of US dollars and was refused so all the inflation was confined to Germany while the government had to convert German wealth (by basically letting foreign powers take over all industrial resources) to US dollars and this bankrupted the government and destroyed the currency.

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ΩΩThe US feels we can use our fiat floating dollar to degrade international trade debts which is why our trade partners are screaming at us right now.  The downside to doing this is hideous: in the future, no one will sell us oil and our civilization which is very much oil based will collapse.

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ΩΩFed Easing Seen Ineffective by 75% in Global Poll Favoring ECB – Bloomberg.com

• Global investors do think the Fed will have some success in lifting inflation, another goal. Half expect inflation to rise modestly as a result of the central bank’s actions. One in five say the Fed will get more than it’s hoping for and that inflation will increase to dangerous levels.

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ΩΩThe Fed hopes most of the QE will flow overseas.  And normally, it would.  But this is limited on the time scale.  That is, we won’t be able to do this forever.  Since we import more than 50% of our oil and a lot of our gas.  Since this is so, we see instant retaliation in these markets.  The more QE we do, the higher fuel inflation goes.  This, in turn, crushes our consumer economy to smithereens.  Gas that was $0.30 ten years ago is now $3.00 a gallon.  This is far more significant that the rise in gold value versus the dollar.

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ΩΩWe are very deep in a trade deficit hole.  Naturally, our government fixes this by digging this pit all the way through the earth to Asia:  Geithner Predicts Deal to Reduce Trade Imbalances – NYTimes.com

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• While the agreement is unlikely to lead to bold new steps by individual countries, Obama administration officials say an accord on broad goals may help calm fears that a flurry of recriminations over who is responsible for trade imbalances could lead to a competitive devaluations or trade war.

 

• “I think it overstates the level of disagreement about the challenges we have ahead,” Mr. Geithner told reporters on the way from Singapore to Seoul for the Group of 20 summit meeting. “We expect we’ll see broad support for the type of cooperative framework the ministers of finance first introduced two weeks ago.”

 

• A senior Obama administration official, speaking in Seoul, said the advance draft of a joint communiqué under consideration by the member nations would adopt a set of “indicative guidelines” that set common standards for assessing trade balances and prompting diplomatic discussions about them when they grow too large.

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ΩΩAll of Asia totally opposed a trade deficit fix since not one of them runs a trade deficit!  DUH.  The US isn’t an ally or partner of anyone.  We are the destination for them.  And they have zero reason to change this.  All we can do is retreat.  This means closing all our bases and running like hell back home and then closing the door to trade.  This is harsh but survival dictates this.  Instead, we are opening the floodgates even more:  Obama: Trade agreement with S.Korea is weeks away – CNN.com

• Free trade needs to grow even freer, U.S. President Barack Obama said Thursday as he and South Korean President Lee Myung-bak held a joint news conference in Seoul.

 

• Obama spoke of weeks, rather than months, till a new free trade agreement is reached with South Korea. Lee has agreed to send a team to Washington to work on the trade pact, which Obama said could mean $10 billion in U.S. exports and 70,000 jobs for Americans….Widespread protests are expected at the G-20 summit, for which South Korea has mobilized its largest security force ever, according to the Yonhap news agency. A total of 50,000 police and riot police are being deployed, authorities told Yonhap.

 

• A number of South Korean union and civic groups are gearing up for large protests against the G-20, while other groups are planning unrelated rallies in hopes of drawing international media attention.

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ΩΩSouth Koreans really know how to riot. They carry these huge drums which they beat with clubs and then they hit the police with these, for example.  They really fight hard and are quite loud, too.  Unlike their snoozing Japanese neighbors who can’t even get up a tiny opposition going.  The government of South Korea fears its own people.  Unlike in the US.  So…Obama, Lee Fail to Agree on Trade Pact on Cars, Beef (Update1) – Bloomberg.com.

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ΩΩLike with our ‘trade’ with Japan, South Korea wants us to protect them from the Chinese, Russians and North Koreans while they protect us from our exports.  Once again, the US is desperate to sell some hamburgers to this Asian power and they refuse to buy these things.  We can’t sell any of them our cars, for example, while they flood us with their cars.  Both nations will not let us export either cows or cars.  End of story.  We have one choice: pull out from both.  This option is never used.  I am baffled as to why.

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ΩΩChina is approaching the strength and power to militarily force us out of Asia and if the only way we will go is due to bankruptcy, I assure everyone, the Chinese will force this to happen.  They will not protect us from bankruptcy, not even a slight chance of this.  As they said years and years ago to me, ‘Losing a trillion dollars but bankrupting America is well worth it.’

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ΩΩJapan won’t let in South Korean cars or cows, either:  UPDATE: Japan Says APEC Backs Its Free Trade Push, But Domestic Issues Loom – WSJ.com

• But support from other nations doesn’t necessarily ensure Tokyo’s eventual entry into the agreement, known as the Trans-Pacific Partnership.  The major obstacles are domestic rather than foreign, including fierce opposition from farmers and broader doubts about the future of the government in the face of tumbling public support.

 

• Tokyo recently announced that it will start “consultations” with other countries on joining the TPP, which aims to eliminate all tariffs among member nations within 10 years…..Japan has been famously protectionist when it comes to agricultural imports. While it buys around 60% of food from overseas, Tokyo has long been eager to protect a few key areas, such as rice and dairy farming. The country uses a combination of hefty tariffs and non-tariff measures, with rice and butter fetching import tariffs of 778% and 482%, respectively.

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ΩΩJapan has been fiercely protectionist on every possible level.  True, they must allow imports but they severely restrict this and make no bones about this.  The US, in turn, has promised to back Japan’s imperial expansions in disputes with China and Russia.  Talk about totally insane.  We can’t threaten Japan with pulling our military alliance.  No, we give this away for free.  No tit for tat.  It would have been totally easy to tell the Japanese elites, ‘We won’t protect you from the Chinese if you don’t let us balance trade!’  End of story.

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ΩΩInstead of pressuring NATO and our Asian ‘allies’, we are fixing this mess the usual way.  That is, the US public must pay for everything, all bank failures, the robosigners who screwed up the banking system, the international banker’s loans to everyone and our government overspending in wars and military over-expansion:  Debt Commission Report Targets Social Security, Medicare

The draft put out by the commission chairs has been released, coming in at 50 pages. The overarching goal, Simpson and Bowles write, is to achieve “nearly $4 trillion in deficit reduction through 2020″ while reducing “the deficit to 2.2% of GDP by 2015.”

How they get there is going to be a matter of contention as other commission members have already stressed their displeasure with the suggestions. But here are a few of the more noteworthy suggestions.

 

• Roll discretionary spending back to FY2010 levels for FY2012, requires 1% cut in discretionary budget authority every year from FY2013 though 2015;

 

 

• Fully offset the cost of the “Doc Fix” by asking doctors and other health providers, lawyers, and individuals to take responsibility for slowing health care cost growth;

 

 

• Reduce farm subsidies by3 billion per year by reducing direct payments and other subsidies;

 

 

• Achieve100 billion in Illustrative Defense Cuts;

 

 

• Index retirement age for Social security to increases in longevity. “This option is projected to increase the age by one month every two years after it reaches 67 under current law, meaning the normal retirement age would reach 68 in about 2050 and 69 in about 2075.” There will be a “hardship exemption” for those unable to work beyond 62;

 

 

• Give retirees the choice of collecting half their benefits early and the other half at a later age to minimize impact of actuarial reduction and support phased retirement options;

 

 

• Reduce corporate tax rate to 26% and permanently extend the research credit;

 

 

• Gradually increase gas tax to fund transportation spending.

 

 

 

In the process of pursuing their reforms for Social Security and Medicare, the commission chairs are expected to suggest that the end result will be a 70 percent cut in benefits and 30 percent increase in revenues, according to the source familiar with the upcoming announcement.

 

“What a crazy proposal, what a crazy proposal,” said a Democratic source briefed on the findings. “I expect that the White House is going to distance itself big-time from this, saying this is just the chairman not the commission.”

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ΩΩA head’s up for all those elderly Tea Party poopers: hey, you are the chumps here!  They depend on you being stupid about this socialism stuff.  Socialism is what keeps most of our elderly alive and well.  As I predicted back when Reagan doubled SS withholding taxes so these can be used today to pay for retirees: it was a scam.  This huge tax hike on the working class was used to run perpetual government deficits. These were created by GOP tax cutters!  And they are still cutting taxes and much of the stupid proposals put out by this insane commission is for more tax cuts at the top and many more taxes on the lower classes including the ugliest one of all: no more inflation indexing so real time payments buy less and less.  This is the infamous ‘starve the poor while debasing the coin of the realm’ game played by say, the Bourbons of France prior to 1789.

 

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ΩΩHere is the Let Them Eat Cake Commission:  http://big.assets.huffingtonpost.com/CoChairDraft.pdf

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ΩΩHell’s bells, our stupid wars cost us well over a trillion dollars and all they can come up with is a $100 in cuts over many years???? How insane is this?  True, they talk about closing half of our bases but this means our 800+ bases will be ‘only’ 400+?  That is 400 too many if this means starving the US workforce even more.  The other key thing here is the plan to reduce SS going to the upper third tier.  This is insidious and totally evil.  It means the people with the most political power will remove themselves from the SS system entirely and then kill it.

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ΩΩWorse, the proposals are for more taxes that hit the lower classes very hard.  Such as the VAT.  This value added tax is OK if it supports social programs, ditto higher gas taxes.  But these won’t do that at all.  It will go for paying our national debts and our war machine that will be trimmed less than 10% of present size which is bigger than all nations on earth combined.  These various low level taxes will be laid on top of a flattened income tax that gives even bigger tax breaks to the very rich.  And as usual, corporate taxes will be cut even more.

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ΩΩI am very angry there is no suggestion to have this paid via TARIFFS.  Once upon a time, tariffs paid for nearly all of our government.  Now, it is nothing at all. And we have to pay and will be forced to pay.  While losing jobs to cheaper labor pools overseas.

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ΩΩThe other irritating thing about this commission is their blatant lies.  Inflation has not been properly tracked since Reagan.  If we can’t buy a steak and by hamburger, this is  not viewed as inflation.  As we descend the scale forced into cheaper and cheaper things, this isn’t deflation.  This is desperation!  This is a cheat.  Already, they told us seniors that there was no inflation last year. BS to that!!!  Fuel costs a fortune now and since I am on a fixed income that is on the low end, this means no fuel, right?  Luckily, I can burn my own trees and thus, add to global warming.  Which makes my home warmer in winter, I may add.

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ΩΩThat is, energy is as always, key to turning Quantitive Easing into Painful Freezing in winter.  One leads to the other.  Also, taxes are not included in inflation stats so a tax hike on energy (just wait until cap and trade begins!) is hammered onto us on top of higher energy costs and no relief in sight.

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ΩΩWhite House Gives In On Bush Tax Cuts

• President Barack Obama’s top adviser suggested to The Huffington Post late Wednesday that the administration is ready to accept an across-the-board, temporary continuation of steep Bush-era tax cuts, including those for the wealthiest taxpayers.

 

• That appears to be the only way, said David Axelrod, that middle-class taxpayers can keep their tax cuts, given the legislative and political realities facing Obama in the aftermath of last week’s electoral defeat.

 

• “We have to deal with the world as we find it,” Axelrod said during an unusually candid and reflective 90-minute interview in his office, steps away from the Oval Office. “The world of what it takes to get this done.”

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ΩΩSo the rich get their damn tax cuts, anyway.  Congress is mostly millionaires so they don’t care!  The budget deficit vanishes if we restore taxes to their normal levels.  It was supposed to be ‘temporary’ but I knew back then, it wasn’t.  The rich want more money and feel they can get it.  They do see the news and they know that most people on earth hate their guts but they feel they are still popular in the US.  This is an illusion.  Very soon, they can become highly toxic.  It can happen very, very fast.  History is crystal clear about this.

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ΩΩAnd here is how the NYT lies about all of this, quite shamelessly:  Some Fiscal Reality – NYTimes.com

• …The reforms should go farther. Raising enough revenue in a global economy driven by trade, finance, services and spending will require new sources, such as energy taxes, a financial transactions tax or a value-added tax. A value-added tax that doesn’t fall most heavily on lower-income Americans could be a significant spur to growth, because it doesn’t tax savings.

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ΩΩMy jaw hit the floor on this one.  Who, in the lower working class has savings?????  What they dare not say is, the poor won’t pay much VAT simply because they would be unable to buy ANYTHING at all!  So ergo, they won’t pay this tax.  Sheesh.  And let those poor bastards eat VAT cake!  Imported from Asia.  If they can.  Just think, if you had the money, you could buy a VAT adde to the cost of a Japanese or South Korean car!  This means we will buy CHINESE cars because they will be even cheaper and thus, the tax won’t hurt so much.  If you have any money, that is.

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ΩΩWe won’t have this.  Any money printed by our government will flow instantly overseas even with a VAT tax.  That is, this works ONLY if there is also tariffs imposed on imports and this the only way out of this hole we are in.  Seriously.  I want a Tariff And Barriers Commission and we will concentrate on keeping out cars and cows.  Just like Asia.

 

 

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