Saturday, September 17, 2011

Bloomberg notices some trees

NYC Mayor compares burgeoning student debt and lack of jobs to revolts and riots in Middle East (link to the Mayor's comments)

Mayor Bloomberg may or may not grasp all of this is going on, but he has noticed the trees on fire, if not the forest behind them.

The student debt is expected to pass one trillion dollars by the end of the year. This figure doesn't count credit card debt held by students or money spent for college by middle class families from second mortgages. Then there is the drain on middle class family wealth that won't be replaced by the slave wages of the new college educated working poor. The high degree of indebtedness by the new working generation will drive down wages across the board even for those who had the family money to pay for school.  

Then you must also consider that this debt is completely phony to begin with. We have a currency based on the issuance of debt. The money used for student debt, credit card debt, mortgages, business loans, on and on all comes from the Federal Reserve who create the money out of thin air and loan it to the rich through their banks and corporations who in turn loan it to the peasants at a stiff markup. There is no reason to do this except to support a class of people who do nothing but consume.

 If they would restrict themselves to sitting around the pool that would be bad enough, but they can help themselves and to try and grab it all for themselves by destroying the middle-class completely. This is being done by endless war to distract the peasants and make them fearful, the theft of business assets by predatory practices and the wholesale outsourcing of jobs to hollow out the economy until it all collapses. 


John said...

Great summary of our debt-base currency, economy and entire society (not just class) of "consumers."

John Puma