Thursday, November 4, 2010
Thursday, November 04, 2010 9 comments
Obama has indicated that he will completely give in to anything and everything that corporate America wants. Maintaining the Bush tax giveaway to the rich is apparently no longer a problem as long as the middle class gets a few crumbs. The US Chamber of Commerce is circulating the news that they can now work with Obama with his change of heart over expanding free trade. There are at least three agreements leftover from Bush that have been languishing on Obama‘s desk that will soon become the law of the land.
That Consumer Protection agency that you were looking forward to will be nothing but an empty shell if Republicans have their way with funding and regulation reviews by Congressional Committees. The President does have broad powers to go ahead with all manner of regulation thanks to precedents put in place during the Unitary Executive Administration of co-Presidents Bush and Cheney. Although Obama may not want to ruffle the feathers of his new “friends” in the business community.
The Federal Reserve driven market bubble took off in earnest today with the DOW hitting a new post crash high by gaining 2% to close at 11,434. The price of gold also set an all time high as the USD continues to decline with the prospect of 600 billion in new cash being put into the system. The other shoe to drop is the 3 trillion the Fed had already printed up to stimulate the economy that has been sitting around in corporate money bins. Will this money come into play or not? Hyper-inflation anyone? More likely they will continue to sit on it, bringing it out only when a killing can be made.
Some economists think the FED is being far too timid if they really want to jump start a 15 trillion dollar economy and they need to set their inflation goal much higher or the money will continue to just sit there. The big Wall Street banks and corporations are getting this money for little or nothing and have no incentive to do anything productive with it. They are just sitting around waiting for deflation to set in and then they can use all this free money to buy up the remainder of the US economy for themselves.
In the mean time they can continue to churn the markets up and down taking a piece of the action every day. Wall Street will take a record 148 billion in bonuses this year for doing nothing. Keep in mind that since they do nothing that money has to come from somewhere. The economy is a closed system, you can’t just make money, somebody has to do something productive to create wealth.
Wall Street’s preferred method is to steal it from people who have done the work. That’s why Reagan’s people invented the 401(k). All of that 148 billion plus the cost of maintaining the Wall Street ponzi scheme comes from people who have worked for generations to build wealth and it’s just disappearing right in front of them. Ironically the more wealth an American has the more likely he will vote for the people that are stealing it from him.
If Hu Jintao caught any of his people doing the things that Wall Street does, they would be shot and their organs sold. China uses its wealth to build things, we used to do that, when the President of the United States was the most powerful man in the world. www.prairie2.com