Neither GOP Nor DNC Have Any Intention Of Creating Jobs For Americans

The Bank of America, bailed out by Americans, has tried to play a three card monty game with the FDIC.  They took their noxious derivative deals out of their Merrill Lynch investment sector and tried to bury these toxic deals deep inside the insured part of the bank where deposits from individuals are protected by our government.  This system, to protect deposits of the little guys, was set up way back in FDR’s day.  The entire point here is to make the People of America pay for all losses.  Also, the super rich are whining about ‘productivity’ of workers’ falling.  How charming of these wolves.

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BofA Said to Split Regulators Over Moving Merrill Derivatives to Bank Unit – Bloomberg

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…regulators are grappling with how to protect FDIC- insured bank accounts from risks generated by investment-banking operations. Bank of America, which got a $45 billion bailout during the financial crisis, had $1.04 trillion in deposits as of midyear, ranking it second among U.S. firms.

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“The concern is that there is always an enormous temptation to dump the losers on the insured institution,” said William Black, professor of economics and law at the University of Missouri-Kansas City and a former bank regulator. “We should have fairly tight restrictions on that.”

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A quick look at this ALFRED Graph – ALFRED – St. Louis Fed shows us the dire condition of these banks.  Their ALLL isn’t exceeding their non-performing loans by hardly ANYTHING.  The cushion is approaching zero.  The ratio, which was nearly 100% vanished back in 2008.  The fact that it isn’t zero is due to the huge bail outs by the Fed and the government.

This ALFRED Graph – ALFRED – St. Louis Fed shows the near-total collapse in collecting on debts.  Delinquencies has shot upwards to over half a trillion and this is, again, with the intense help from the Fed and the US Treasury to bail out the bankers.  Note that it never was more than $100 billion in previous recessions.  This is nearly 10 times bigger.

A quick guess as to why there are no ‘fairly tight restrictions’ on this double dealing game!  Naturally, the bankers will fight tooth and nail any attempt at preventing them from doing as they please.  Their game is to insure deals that are bad so someone else takes the losses.  Since all bankers are now totally suspicious of each other, seeing how their AIG-Derivatives Beast game collapsed totally, they know the only insurer left are the governments of various countries which they can dupe into doing this.

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What they want, in a perfect world, is to blissfully give out loans to all and sundry and then have the government take all losses when people default on debts.  This way, they become money printing machines with no responsibilities what so ever.  All they do is under right loans based on zero capital.  For, to a bank, capital is a debit while loans are assets. But they are assets only if they are paid down!  If they are in default, they become debits which comes out of the capital base, which is a debit.

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Credit cards are collapsing, too:  ALFRED Graph – ALFRED – St. Louis Fed.  This shows how ‘revolving credit’ to businesses and individuals has fallen by an astonishing $180 billion.

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So, if someone else has to eat the losses, this is pure assets, the more, the merrier!  Here is the big shot who created the Goldman Sachs Derivative Beast, talking about our national debt:  Cooperman Shuns Treasuries, Favors Stocks – Bloomberg

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“I wouldn’t be caught dead owning a U.S. government bond,” he said today during a presentation at the Value Investing Congress in New York. “Not because I have a problem with the credit. I have a problem with paying 35 percent on the 2 percent to Uncle Sam, and then have a 2 to 3 percent rate of inflation,” he said. “It’s confiscation of my capital. I think I’m too smart to play that game.”

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HAHAHA…here is a graph showing that far from being shy about holding US government debts, look!  Look!  They are hauling it in by the truckload!  It was roughly around $1-20 billion for thirty years and then, suddenly, due to ‘inflation’ caused by the Fed and the bankers lending money too much, it shot upwards along with all our government debts!  And this is due to all the tax cuts beginning with Ronnie Reagan.  Do note the sudden hike beginning in 1982.

Of course, rich gnome Cooperman is lying thorough his teeth.  Surprised?  He and his gnome playmates all park ‘capital’ into these bonds while waiting for a better game to play.  They were putting this capital into gold lately because it was in a bubble mode.  Gnomes love bubbles.  When this played out, they have to park it somewhere else.  Government bonds don’t lose them money EXCEPT with inflation.  Now, they, like I, know very well that government inflation statistics have been cooked so they don’t show us real inflation anymore.

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Foreigners are buying our national debt, still, too.  They are not selling it off, wholesale at all:  ALFRED Graph – ALFRED – St. Louis Fed

The fake inflation statistics are for cutting savings for banks so they don’t have to charge hardly any interest against themselves for holding capital parked there by other people.  That is, this money in banks that is insured by the government, earns less than 2% interest in the ZIRP banking system that has been rigged in the face of raging inflation.  The banks love this since they get savings virtually for free and they use this to back loans that charge far higher interest.

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As for the guys with capital, they need to protect idle capital and can’t do this at ZIRP systems, they know they need at least 3.5% interest just to keep up with inflation.  Inflation created by themselves due to the bank bail outs, the wild commodity bubbles in food and fuel and various material goods and of course, their tax cuts which flood the world’s economies with even more excess dollars coupled with the rising government deficit due to these tax cuts.

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And then there is war spending: we are at war with oil pumping nations!  We are also stuck in a war with angry Afghani and Pakistani peasants who just will not surrender to the empire.  War spending always creates massive government debt and inflation.  Always, throughout history, this has been an iron rule.  The bankers love wars!  They fund these wars!  They love the money flowing and they hate taxes so when government debt soars, they also use it to evade paying savers full value on holding their capital.

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Now, they are all unhappy because the desperate government has evaded paying in full for the tax cuts for the rich so they rig the interest rate returns via fake inflation statistics.  But then, the same people whining about all of this are the ones who rigged the game in the first place.  People on fixed incomes like myself are stuck with SS payments that fall further and further behind the rate of inflation, getting poorer and poorer.  Eventually, the plan seems to be, to starve the elderly to death.  Not to mention, deny them money for heating the house.

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The elites want us to know that the way to save us from inflation is, the U.S. Needs Second Productivity Miracle in 15 Years – Bloomberg

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Worker output per hour has fallen for two consecutive quarters, the first back-to-back decline since 2008, and Labor Department revisions show the measure remains below levels typical for this point in a recovery. Going forward, business efficiency will advance at only about half the 3.4 percent pace during the so-called productivity miracle of 1997 to 2003…As productivity growth fades, it will be harder for companies to contain costs…To offset rising expenses and diminishing demand while productivity is low, U.S. multinationals will need to seek more business in emerging markets such as China and Brazil…

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OK: so what has been going on for the last 20 years?  Oh!  The US corporations have fled the country and moved production overseas!  Ah!  Ever since NAFTA and the Japanese manipulating the value of their yen, the US has run immense trade deficits as our producers seek cheaper labor overseas.  Note that this stupid article NEVER mentions the trade deficit.  Nada.  It is, in my estimation, the #1 problem facing the US.  Naturally, our overseas adventures are also making the deficit worse: money is being poured into our bases and wars overseas, not being spent at home.

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The trade deficit is slightly less than before but it is growing worse by the hour as we see here in this ALFRED Graph – 

The deceleration in U.S. business efficiency contrasts with the booming period between 1997 and 2003, when investment in technology and a more educated workforce combined to create what economists and investors from Nobel laureate Paul Krugman of Princeton University to Pacific Investment Management Co.’s Bill Gross referred to as America’s “productivity miracle.”

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Former Fed Chairman Alan Greenspan recognized early on that the acceleration could contain inflation, even as the economy gained strength and unemployment stayed low.

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This ‘productivity’ did NOT stop inflation at all.  What we did was send all the extra dollars created by tax cuts and running huge deficits, overseas.  That is, we exported ‘money’ and imported manufactured goods and energy products.  We consumed like crazy and printed money like mad.  This didn’t cause ‘inflation’…AT FIRST…due to the money going overseas not returning.  Much of it ended up sitting like so many time bombs, in central bank vaults in FOREX accounts.  These are now well over $4 trillion in size, just in dollars. In all currencies, it is around $6 trillion or more, I don’t know, at this point, I can only guess.

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The expansion in the 1990s made it “an awful lot easier to get the budget under control,” Michael Hanson, a senior U.S. economist at Bank of America Merrill Lynch in New York, said in a telephone interview. The growth generated more revenue, and the annual budget deficit of $221 billion in 1990 became a surplus of $236 billion by 2000.

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These benefits are scarce now, as the revised Labor Department figures underscore a loss of momentum.

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What a ridiculous summary of what went on back then!  The economy grew during the Clinton years due to ‘free trade’ suddenly going viral and sucking out US manufacturing jobs at a very high pace.  A pace that continues.  From the bottom half of our citizenry, this removal of around 4-5 million well-paying jobs has been a total catastrophe.  Wages in the working labor class has collapsed.  They get less and less, every year, for over a decade.

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Unemployment for them has shot upwards.  It has not returned to ‘normal’ at all.  ALFRED Graph – ALFRED – St. Louis Fed shows clearly how the situation for labor has grossly deteriorated over time.  Note that we once enjoyed nearly 90% capacity utilization during Nixon’s years.  It has fallen steadily since then with the peaks being lower and lower and the valleys lower and lower.  So, during a severe recession, it dropped to 72% during the Nixon years whereas today, it fell to below 65%.

The ‘1990’s expansion’ didn’t ever exist in manufacturing!  Note that the peak then was over 10% lower than the Nixon era peak!  And it declined nearly continuously from 1994 to 2003.  Only the housing bubble made it eke upwards to a level that would have shocked us in the Nixon era for being a recession, not ‘good times’.  The feeling of ‘good times’ came entirely from the debt bubbles caused by the tax cuts for the rich.

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The working class got nothing from these tax cuts.  Why bother with this if you have no income?  But to pay for the tax cuts, they had to get rid of inflation.  To gain ‘worker productivity’ they had to reduce wages.   They don’t improve or expand work, they offshore it to cheaper labor pools and thus, force down wages of the remaining workers who are fewer and fewer as they are aggressively thrown to the wolves.

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The GOP wolves are in full howl:  Herman Cain Blames The Unemployed, GOP Debate Audience Cheers (VIDEO)

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“I still stand by my statement,” Cain said.

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“They might be frustrated with Wall Street and the bankers, but they’re directing their anger at the wrong place,” he added. “Wall Street didn’t put in failed economic policies. Wall Street didn’t spend a trillion dollars that didn’t do any good. Wall Street isn’t going around the country trying to sell another $450 billion. They ought to be over in front of the White House taking out their frustration.”

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In response, Rep. Ron Paul (R-Texas) criticized Cain for blaming the people who have been hurt by the financial crisis through no fault of their own.

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“I think Mr. Cain has blamed the victims,” he said. “There’s a lot of people that are victims of this business cycle. We can’t blame the victims. But we also have to point — I’d go to Washington as well as Wall Street, but I’d go over to the Federal Reserve. They create the financial bubbles.”

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Of all the GOP candidates, the only one who is even slightly sensible (though still quite heartless) is Ron Paul.  He also is hated by the media and has been sidelined even though he is the only one who shows any signs of being a human being.   Indeed, we suspect this is exactly why he is being sidelined.  What is infuriating here is, anyone who attempts to do anything about unemployment is stopped by the GOP in the Senate, filibustering any bills. They are the obstruction here.

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The White House is to be blamed, too.  All of them are at fault.  They all want more free trade which is why the GOP all voted for the latest free trade bill, for example.  They want to kill jobs!  They want more wars, except, again, Ron Paul.  Always, he stands far more to the sane side than the insane side.  I must commend him for this.  Note how the GOP audience roars its approval for more garbage.  They want this system!  They want it to get worse, not better!  They want to never pay for any wars while whining about  our debts!  They are insane.  Except for Ron Paul.

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The Democrats are no better:  Leader of Obama Jobs Council, Jeff Immelt, Moves GE’s Health Care Unit to China – General Electric – Fox Nation

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“A handful” of top managers will move to the Chinese capital and there won’t be any job cuts, Anne LeGrand, vice president and general manager of X-ray for GE Healthcare, said in an interview. The headquarters will move from Waukesha, Wisconsin, amid a broader parent-company plan to invest about $2 billion across China, including opening six “customer innovation” and development centers.

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GE makes 60 percent of its profits overseas, and in the ten years since Immelt took over as CEO, the company has trimmed its payrolls in the United States by 34,000 while adding 25,000 abroad.

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This gnome is advising Obama how to create jobs…IN CHINA!  The Chinese dragon is laughing its head off.  As the US government howls about the yuan, the Dragon says, ‘Hold yuan in some way, if you can!’  Since the US has refused to hold yen, the Chinese know we will refuse to hold yuan or euros, for that matter.  We let the bankers play the FX game for us and they do…disastrously, as usual.  Offshoring and playing FX games has made many people in the top 1% very rich.

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Too much easy money makes people go mad.  Here is a fine example:  Walmart heiress spends birthday in jail for DWI | The Raw Story

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According to UK’s The Independent, she had hit a gas meter and tried to intimidate the arresting officer in that case.  “I’m Alice Walton, bitch!” the billionaire allegedly screamed.  She later blew a 0.16 blood-alcohol level at the hospital. The case was settled with a $925 fine.

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In another incident, no charges were filed after Walton killed a 50-year-old mother of two with her Porsche. It’s not clear if alcohol was a factor in that case.

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Forbes lists Walton as the ninth richest person in the U.S. and the third richest woman in the world. She has an estimated wealth of $21 billion.

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This insane woman can hire a driver.  She wants to drive because she can do as she pleases which includes running over people.  The US press has gone insane over the news that no one saved a small Chinese girl who was left to run around, unsupervised, in traffic.  Oh, the Chinese are so evil!  But of course, when our billionaires run over and kill people, this isn’t even news.   This story came from ENGLAND, not the US!  She can do as she pleases here!

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This is the old, ‘Remove the plank from your own eye before talking about splinters in other people’s eyes’ business Jesus was talking about.  Of course, if the poor man came to a GOP rally, they would probably run him over, tear out his hair and beard and spit on him.  Then, crucify him.

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8 Comments

Filed under .money matters, Free Trade, Politics

8 responses to “Neither GOP Nor DNC Have Any Intention Of Creating Jobs For Americans

  1. JT

    Chinese millionaires are moving to US:
    (not so patriotic after all)
    27% of chinese who have more than 100 million already live abroad.

    http://www.uscis.gov/portal/site/uscis/menuitem.eb1d4c2a3e5b9ac89243c6a7543f6d1a/?vgnextoid=facb83453d4a3210VgnVCM100000b92ca60aRCRD&vgnextchannel=facb83453d4a3210VgnVCM100000b92ca60aRCRD

    G. Bush had one thing right.
    Freedom is a powerful message.

  2. Clueless

    @JT: Papa Bush and Jr. got a whole lot more right for the banksters. Check this out: http://tinyurl.com/3p9984l

  3. Paul S

    About the Republican Presidential “debate” and the applause Cain’s comment about the unemployed got: it was a sham debate in front of a sham audience. Members of the audience were handpicked so they wold conform to the result organizers wanted. This “debate” is a good example of why the Daughters of the American Revolution (DAR) withdrew holding these debates. The DAR knew which direction these non-events were going and to save their credibility, the DAR opted out of sponsorig sham debates. What’s interesting is, this time, it’s Republicans who are getting conned. Support for Republican candidates is, among ALL voters, not nearly as strong as the rabid, foaming-at-the-mouth Republicans you see in these phony debate audiences.

  4. emsnews

    http://en.wikipedia.org/wiki/Commission_on_Presidential_Debates

    The Commission sponsors and produces debates for the United States presidential and vice presidential candidates and undertakes research and educational activities relating to the debates. The organization, which is a nonprofit corporation controlled by the Democratic and Republican parties, has run each of the presidential debates held since 1988. The Commission has moderated the 1988, 1992, 1996, 2000, 2004 and 2008 debates. Prior to this, the League of Women Voters moderated the 1976, 1980, 1984 debates before it withdrew from the position as debate moderator with this statement after the 1988 Presidential debates: “the demands of the two campaign organizations would perpetrate a fraud on the American voter.” The Commission was then taken over by the Democratic and Republican parties forming today’s version of the CPD.

    ΩΩΩΩΩΩΩΩΩΩ

    And yes, it is now most definitely a fraud today. Completely and totally. Has been for quite a while. Letting the controllers of the two parties (ie: the rich elites) control the debates has led to the present, stupid, ‘question and answer’ time which is NOT a debate at all.

    I used to be a debater in high school and college. A veritable shark on stage. I love debates. But they have to have rules, not be a yell-fest. Though I can yodel louder than most people. No, the statement/exposition/counter exposition/return reply/counter reply/final summation stuff is dead as a dodo and it is a terrible shame.

    Anyone can no lie about anything without rebuttal. And the dopey questions from the media are all soft balls except when they conspire to eliminate a troublesome candidate (aside from the other way which is assassination).

  5. Paul S

    The debates were and are a fraud for the reasons you mention Elaine, but there’s more fraud than that. For some time now, at least since George W. Bush was “debating”, candidates KNEW which topics would be discussed AND which topics would NOT be brought up. Bush’s people fought long and hard to keep certain topics off the “debate” format.

  6. emsnews

    Correct. They are unable to debate because everyone is spinning stuff so as to FOOL people into supporting them while they all really work for the very rich. Or ARE the very rich, themselves.

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