Thursday, June 30, 2011

The rich are just like them

The Greek Parliament has finalized the end of their country as a sovereign nation and the entire place is now to be sold off lock, stock and barrel and the money will go to the bankers. The public assets will be sold for pennies on the dollar and will end up in the hands of transnational corporations. Wall Street heard the dinner bell ringing (we’re having Greek tonight!) and the market closed up sharply. 

Currency traders have reacted to the good news by driving up the Euro and the USD down and its headed toward record lows. Republicans blame Obama for the weak USD (everybody knows weak it bad, right?), no matter that we would be better off economically with a weak dollar. (it’s similar to having tariffs on imports)  

A weak USD means imports from Europe and the middle east are more expensive but US exports are much more competitive, too bad we don’t have anything to sell. Increasingly exports from the US to Europe are really just products from South American countries that don’t have free trade with the EU and they just make a quick stopover in a southern US port to have the paperwork stamped. 

The Federal Reserve has officially stopped buying US Treasury bonds on the open market and the price of bonds is falling and driving up interest rates. Not that interest is very high, two year bonds sold at Tuesday’s Treasury auction will yield a whopping 0.395% (paying nearly zero interest does keep the cost of borrowing low for the government) Even with the QE2 over, the Fed will continue to spend a billion dollars a day to replace bonds that mature. So the Fed will get money from the Treasury and spend on the bond market. 

The interest we pay is expected to skyrocket after a default on the debt by Republicans in Congress and we will be in a similar position to Greece. That is if we continue to run the country with Wall Street bankers in charge, if we wake up to the fact that this is our country and not theirs it could all be fixed overnight. The bankers can all go live in Greece, for the rest of their short lives.

Initial unemployment claims were down slightly last week and home sales were up sharply in May. In many markets home prices were up significantly but mostly in condos where sellers can control inventory. Home prices are still at the same level they were at ten years ago which represents trillions in lost wealth for the middle class. The rich have gained trillions over the same period. Funny how the economy can crash but the people who own the business sector don’t lose any money but make trillions instead. Maybe the “crash” of the economy isn’t the right word. Maybe the “looting” of the economy would be more descriptive. 

The tea baggers know they’ve lost money on their houses and 401(k) and the pension is gone but they don’t seem to notice where it went. Where do they think the rich got their money? Tea baggers are sure people who don’t have any money took it from them, like poor people and teachers. They are sure the rich are just like them, except for all that money.


Anonymous said...

Don't forget the Socialist Kenyan Nazi in the White House with his draconian tax rates. He's been sucking them dry as well. Of course, we have accumulated the entire $14 trillion national debt during his 2 1/2 years in office. And the only reason why they lost all that wealth in their homes was because ACORN and Barney Frank forced the banks to make all those bad loans.

IFoundAFlaw said...

#1. Obama is American born per the state of Hawaii.
#2. Most of the debt was racked up by Reagan, Bush, and Shrub.
#3. The Gramm-Leach-Bliley in 1999 and the securitization of mortgages, and Alan Greenspan had more to do with the bad mortgages than. ACORN.
#4. You're a ninny.

Anonymous said...

I presume you are being facetious with your response. I don't mind taxing the walmart children (heirs to old man-Made in USA walmart) at pre-reagan tax rates with no loopholes. I bet they'd squeal like little piggies suckling at the public teat. Joke for ya, how do you identify a WI state worker? Thet are standing in line next to a walmart worker applying for Badger Care. Ha Ha. I will be getting an Identity after I figure out these dang new fangle accounts and such, I don't want to be an anonymous coward.

prairie2 said...

sometimes it is difficult to tell sarcasm from the rightwing trolls. What they say would be funny if it wasn't killing us.

Mobis21 said...

My, my, my The Kool-Aid well must be full of liquid pablum. Your cognitive dissonance speaks volume in your feeble attempts to paint President Obama two opposite biopolar; as a "Socialist" (?);"Nazi"(?). One wonders how he can be both?

Some historical perspective for the proselyte; Nazis were never fans of Socialist or Socialism, since Socialism was based on creating equity. While you can guess what Nazism was about? Clue: They are the present day capitalist(GOP)to whom you have sworn your sacrificial blood oath.

Now on to my comment on crisis in Greece. I am of the opinion that Greece is the "test case" or template for what the money godfathers have in store for the rest of us.

It is conceivable that the U.S. could see serious after shocks should the Right wing Teaparty Repubs get their way and impose their job saving tax/spending cuts.

That is assuming Obama doesn't blink. So far, having heard his rhetoric of tough talk, have yet to witness much more. If his recent history of meekness is any indication of future action, I am not encouraged.

These Corporate demons with horns require the warrior's ethos to defeat. I am understandably skeptical of Obama's.

Anonymous said...

Wow! I didn't think my sarcasm was THAT ambiguous! I guess Bruce is right-it is hard to tell what is jest and what is real with the tea baggers.

IFoundAFlaw said...


Please excuse my hyper-vigilance. I should have known; you're grammar is impeccable. We're in the midst of a shut-down in my blue
state. Neo-liberalism is bad enough but that type of excrement is squeezed out by Fixed News every day.

Anonymous said...

Its a shame to what is going on in your state (I am assuming you reside in Minnesota). The state that gave us VP's Hubert Humphrey and Walter Mondale as well as Eugene McCarthy would be an example of governmental dysfunction is such a tragedy. And your neighbors to the east-Wisconsin-how could a state that produced Fighting Bob LaFollette allow a college-cheat and Koch Bros. lacky like Scott Walker to become governor? I have always loved visiting both states-not only for their natural beauty but the realness and friendliness of the people. Good luck.