Diamond Dust Drops: it is below zero today, all day, and the moisture in the atmosphere is turning into ice and falling even as there is no wind nor clouds.
The US/UK empire complex is involved in this massive internal debate about what sort of financial and social systems we should have. The choice so far seems to be a ‘no social system’ and a ‘free money printing hyperinflationary’ system. That is, we will withhold services and cut the pay of the poor whilst flooding the empire with credit and paper capital for the bankers. The alternative solution seems to be social services for everyone…and flooding the markets with incredible amounts of free money via endless ZIRP credit created by the government! Wow! Talk about insane.
ΩΩFirst, let’s go to the far right wing anti-socialist magazine by rich boy Forbes. He absolutely hates socialism and is totally pro-free trade and is perfectly OK with offshoring US jobs. Incidentally, he has an annual ‘which countries are the best?’ lists which include all sorts of things like, is your country pretty? Is it full of goodies? First, let’s look at the list of the winners:
- New Zealand
- They are all borderline socialist states, with generous welfare benefits and lots of redistribution of wealth. Yet they don’t let that socialism cross the line into autocracy. Civil liberties are abundant (consider decriminalized drugs and prostitution in the Netherlands). There are few restrictions on the flow of capital or of labor. Legatum’s scholars point out that Denmark, for example, has little job protection, but generous unemployment benefits. So business owners can keep the right number of workers, while workers can have a safety net while they muck around looking for that fulfilling job.
- Of perhaps utmost importance, nearly all the nations in the top 10 are adept at fostering entrepreneurship and opportunity. Legatum’s researchers concluded that a country’s ranking in this area is the clearest proxy of its overall ranking in the index….Consider that Denmark and Sweden rank first and second in entrepreneurship and opportunity, but only 77% of Swedes and 84% of Danes think that working hard will get them ahead. Compare that with the U.S., the No. 3 country for entrepreneurship and opportunity. Fully 9 of 10 Americans think that hard work will pay off.
ΩΩWell, at least the writer admits that capitalist-socialism works just fine! Hooray! Too bad the entire magazine hates this idea. The US right wing is totally state-sponsored draconian social engineering which is why these lunatics are screaming about making abortions much more dangerous and harder to access. Plus the churches screaming for everyone to have a zillion babies. If you are a Christian, of course, not if you are a pesky Muslim, for example.
ΩΩThere is some propaganda in the reporting of this list. Examples abound: these countries are very certainly NOT ‘few restrictions on the flow of…labor’. Australia, for an example, tremendously restricts legal and illegal immigration. Ditto, New Zealand. Hell, Switzerland is having a huge debate about letting in ANY immigrants right now!
ΩΩThe US rightwing is also against increasing immigration and wants to deport illegal aliens. But Forbes likes this free movement of labor because it destroys unions, kills social systems and provides for cheap mass labor to be exploited for profit. Thus, the lie that the above list is full of countries that seek more movement of labor.
ΩΩOne feature almost all of these countries have in common is a very, very low birthrate coupled with being quite cold. There seems to be a ‘colder=happier’ ratio here. Even New Zealand is relatively colder than most places. Certainly, Switzerland and the Norse lands are all quite chilly. In the US, our population is fleeing the colder regions and moving to the hot regions and these places do not produce mass happiness mainly due to the lack of social services, I might suggest based on the list of happiest countries being mostly cold and socialist.
ΩΩSadly, there is no screaming headlines claiming that cold, immigration-restrictive socialist nations are happier than most other places. The ideological forces on both the right and the left in the US forbid anyone from suggesting Nordic-style solutions. Instead, we have infinite fantasies.
ΩΩAt home, thanks to open bribes via ‘campaign contributions’ we have a corporate socialist system that rewards the very rich and very powerful while punishing the workers and destroying the lower classes: Corporate contributions have surged for new Republican leaders in House
- Much of that money flowed to the GOP chairmen overseeing banking, energy and other key committees – leaders who will play a central role in setting the House agenda over the next two years.
- The impetus behind such largess is simple: Many companies and industry groups hope House Speaker John A. Boehner (Ohio) and other Republicans will succeed in rolling back Democratic policies they find objectionable, including environmental and Wall Street regulations.
ΩΩThe GOP always gives us endless social restrictions and barriers while feeding us to the corporate wolves who enjoy no barriers to moving capital, labor and goods. This corporate rule has utterly decimated our country. The US public opts for this sort of nonsense because we are told, this is the road to free funny money riches. That is, we can cut taxes and still run merrily in the red forever due to our trade rivals bankrolling this game by holding excess US dollars and buying our endless debts.
ΩΩAlas, there is nearly zero difference between this ideology and the Democrat’s positions: Obama Picks Jeffrey Immelt, GE CEO, To Run New Jobs-Focused Panel As GE Sends Jobs Overseas, Pays Little In Taxes
- Immelt’s firm stands as Exhibit A of a successful and profitable corporate America standing at the forefront of the recovery. It also represents the archetypal company that’s hoarding cash, sending jobs overseas, relying on taxpayer bailouts and paying less taxes than envisioned.
ΩΩGE’s Capital Bank is an international money creating machine and naturally, woefully undercapitalized and thus, needed a $140B Bailout -which leads to the question, What’s the Point of AAA? Indeed! So, the fox that was bailed out two years ago is going to tell all the hens how to lay eggs! Loophole Helps GE Benefit From Bank Rescue Program …it seems that GE created $340 billion in new funny money and flooded the planet with this stuff before being bailed out by several governments.
ΩΩThis totally irresponsible corporation has also relentlessly offshored US jobs. Timothy P. Carney: How GE’s green lobbying is killing U.S. factory jobs. GE is closing the last US lightbulb factory this year (which moved from the unionized north to the former slave states before running overseas to communist countries). GE (NYSE: GE) Appliances Unit Will Provide Jobs For 500 American …that is, by 2014, a handful of Americans might (big question here!) get jobs assembling washers and driers.
- Last year, General Electric Appliances & Lighting announced that they would hire 830 new United States employees by 2014 and also invest $600 million into this effort. GE spent most of 2008 trying to sell this unit, but opted to keep up, is now committed to adding around 1,300 jobs in the United States and is investing more than $1 billion in the United States research and manufacturing departments for this.
ΩΩSo, they get rid of 200 jobs this year but create 1,000 jobs so this isn’t going to exactly fix what is wrong with our system since GE offshored 90% of their production in the first place. Expanding it ever-so-slightly won’t make a dent in our job prospects. The fact is, Obama, like the GOP leaders, shows scant interest in protecting US jobs. This should be drummed in to everyone’s heads: NEITHER party is doing anything to protect US jobs! There are plenty of advisors around that could lead the charge towards fixing this problem but the problem here is obvious to me: nearly no one working for job-offshoring corporations or university economics professors support trade barriers and tariffs!
ΩΩI can’t tell the President to wake up and smell the coffee because there is this immense wall of rich corporate bankers and industrialists and an army of propagandized economists telling the US public that barriers to the movement of labor and capital is evil and is the cause of the Great Depression. The idea that WWI debts caused the Great Depression isn’t discussed since this brings up the most obvious cause of nearly all depressions: a post-war collapse in government spending coupled with a mountain of war debts in all sectors and the sudden reentry into the job markets of millions of discharged soldiers.
ΩΩThanks to free trade and our corporate entities moving most US jobs offshore, we have this lovely news tidbit: Hu’s U.S. Trip May Augur Japan-Style Investment Push by China – Bloomberg.com
- Hu’s welcome in the Midwest — Mayor Richard M. Daley called him a “man of vision” — contrasts with the cold shoulder he received from some congressional leaders in Washington. It reflects the desire of local leaders to attract foreign investment, giving China the opportunity to improve its image in the U.S. much as Japan did two decades ago when its car companies began to build auto plants in places such as Tennessee and Kentucky.
- “The Chinese have taken a page out of the Japanese playbook,” Michael Paulus, head of the Asia Public Sector Group at Citigroup Inc. in Hong Kong, said in an interview. “One of the things that the Japanese did is that if you are going to put a plant in Tennessee, suddenly you’ve got most of the congressmen, the senators and the governors saying look, we really want these guys here, and suddenly you change the political dynamic as well as the rhetoric.”
ΩΩAfter utterly decimating our economic system in the name of free trade, we now welcome the victors in this game back into the US and have them colonize our economic system. This is due to the sad fact that few US citizens have the vaguest idea what labor and capital is and how they operate with each other! We cannot look at how many menial jobs, mostly in former slave states, we can eke out of foreign corporations that are invading our country and taking over. We have to understand that ALL PROFITS from this invasion LEAVES THE COUNTRY.
ΩΩThese foreign entities don’t want corporate taxes. Our own domestic corporations are no longer American but international so they, too, don’t want corporate taxes paying for our government! They want to offshore their profits by having an address in the Bahamas or Bermuda islands, for example! They want to suck the country dry of all capital and leave us with only debts. If they struggle, we bail them out so we can keep about 15% of our former job base but then, only if we also cut social services and reduce wages.
ΩΩThis process has totally destroyed major American cities. Here is the most productive business in Detroit these days: MGM Grand Detroit posts second-highest income of casinos owned by MGM Mirage Inc. – Crain’s Detroit Business. Yes, the vampire gambling culture is sucking down the last dregs of the Northern tier manufacturing states. This useless, amoral and destructive economic activity is a destroyer, not a builder of nations. The curse of gambling is spreading like a plague across our decapitalized nation.
ΩΩMeanwhile, thanks to the destruction of US jobs and capital base, the banks continue to flounder and need more bail outs: BofA’s Kitchen-Sink Writedown Means Moynihan ‘Better Do Better’ – Bloomberg.com
- Moynihan’s quarterly report showed Bank of America’s loss widened to $1.24 billion from $194 million a year earlier. Bank of America posted a $2.24 billion net loss for 2010 as revenue declined 7.9 percent to $111.4 billion. That compares with a $6.28 billion profit in 2009.
- The bank paid $2.8 billion to U.S.-owned Fannie Mae and Freddie Mac last month to settle disputes over bad loans, and said that future demands from various mortgage investors eventually could trigger $7 billion to $10 billion in losses.
ΩΩRecapitalizing the banks is impossible if borrowers continue to destroy future earnings. This downward spiral can’t be fixed by GE since GE is directly responsible for these actions happening in the first place. The solutions we got from our corporate bosses have all been total disasters. The track record absolutely stinks. The occasional stabs at creating jobs is a fake designed to fool us, not help anyone. The bad loans situation is directly tied to the job offshoring situation. Free trade is killing our banking system. Even as our bankers expand overseas such as GE did during the last 20 years.
ΩΩMeanwhile, the insane US/Zionist moves to punish the Iranians rolls onwards and this includes stopping trade, of course: US may punish China firms evading Iran sanctions: Clinton. The US is very big on boycotts. The more free trade=the more boycotts it seems. Meanwhile, the flood of US paper dollars to Asia is causing inflation there: India Orders Suspension Of Local Taxes On Food As Prices Soar. China is very aware the people there can be restive. But India is on the verge of a collapse of society like we are seeing in the third world.
ΩΩThis is due to population pressures as well as a corrupt government. Tunisia’s continuing revolution is scaring the elites of India who are virtually all Brahmin. China has a society where one can advance based on education. India is a stratified society where one can make money and still be firmly affixed in the lower strata. This is tinder for revolution. Even as the US madly exports our jobs to India, this can’t keep up with population pressures there.
ΩΩInflation isn’t happening just in the BRIC nations, it is coming back home to roost in the US and UK, too: Millions of savers need 6pc to beat inflation – Telegraph. As usual, savers will be savaged. Someone has to see their wealth confiscated when systems run in the red. This is why the sane solution is to tax the rich. Since the US and UK won’t do this, the solutions are ugly ones and inflation happens to be very bad for savers if the lending rates set by the central bankers is lower than the rate of inflation.
ΩΩThis means, the system will be decapitalized even further as savers run off to gold or foreign currencies to save themselves. Just as all our rich people are already doing in droves. Below is an Australian news story about how Ireland is being forced into poverty to keep the bankers and foreign entities richer:
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