Now that the all-important events such as Victory Over Labor Day, Obama's Sell-out Speech, and Exploit the 9/11 Dead on 9/12 Day are all past, we can get back to the real news, which is:
Hallelujah! The Trillion-dollar Tribulation is ended! Happy days are here again!
At least, that is what is being touted in the Federal Reserve's Beige Book. The majority (11 of 12) of the Fed's economic regions indicated positive economic progress among the businesses queried about their profit prospects. Only the eggheads – the economists – really understand what is going on at the moment, which is that this good news is only temporary. So when Obama comes on television Monday and brags about the economic good he's done, ignore that man behind the TelePrompTer curtain!
Because the current positive economic numbers reflect the recent and meager public stimulus efforts of the Obama administration, there is doubt about how well the economy will continue once the effect of the CARS program fades out and the next wave of problem mortgage foreclosures looms. The economists warn that consumers will have to spend money to keep the rising slope as currently aligned, but with increased unemployment forecast for the foreseeable future, that isn't expected to happen. We'd do well for Christmas to include a lump of "clean" coal for everyone. We'll call it a "Diamond in the Rough"! But I digress.
Even those who are attempting to to hype the investors by spinning labor gold out of rotten economic straw are pulling their punches, noting that "the jobless are falling off the government's radar because their unemployment benefits have expired." More of a Main Street stimulus plan would have helped here — a lot! No consumption, no prosperity for all.
But don't let that little bit of sorry news deter Rick Santelli's "real Americans" from their revels! Wall Street has managed to bell the federal cat before any meaningful reform could be imposed on them. That way, any "fines" they may now incur in violating the trust of their clients would maybe only amount to a busy month's worth of expense account meals at the Bull Run Restaurant around the corner — including bar tab and tips. The Good Life Lives!
And Santelli's real Americans do have plenty to party about. Just in California alone, My Budget 360 reports that 76.8% of adjusted gross income increases realized in 2006 and 2007 went to the top 20% of California personal income taxpayers while the employment rate in the Golden State is dropped to a 30-year low. What this means in simple Tea Bagger American is that the wealthy aren't suffering the negative effects of the crashing economy that the economists see affecting the rest of us. With a U6 unemployment rate of over 20% in California, even these Toppers should be able to notice the empty strip malls and half-completed business complexes dotting the desert as they trip the light fantastic to drop another million on the Vegas crap tables. But then, "real" people can only see other "real" people. They can't see the rest of us. We're "indivisible", without liberty and justice at all. We'll go away if we're ignored long enough.
I watch with great interest to see whether the Toppers will finally notice the growing ranks of the jobless, homeless, and uninsured, as the forecast is for there to be many more of us po' folks in the near future. We'll be standing in the driveways of those five-star hotels begging to tote your luggage up to the car hops for a portion of the tip you give them! Can you see us now?
There will be many of us, so you should! Our income remained stagnant for the last ten years according to the Census Bureau, and what gains were realized went immediately to fund insurance company executive bonuses. That money Obama "pushed" on the banks would have been much better spent on all those "shovel ready" jobs that seemed to have disappeared into the gaping maw of Wall Street greed. We could have paid for that wonderful "health insurance reform" that Obama is about to push on us. It might really have ended the Great Recession.
One would think that the money mavens would get these points:
• Unemployed people cannot afford health care no matter what Draconian fine the Obama administration gets pushed through the Congress as part of the scam bill they claim is medical insurance reform.
• Without the banks using some of that TARP money for something other than new stock options and executive bonuses, more Americans are going to lose their homes as the next wave of failed mortgages flows across the land in the next few months. This will preclude hocking the house to cover the spouse.
• A significant number of people – such as the handicapped woman heckled at a recent town hall meeting – aren't going to be able to wrestle a refrigerator box to what empty space remains under a bridge somewhere, and no one will be there to help them because they will be too busy protecting their own scant belongings. Are we to die in the streets and decrease the surplus impoverished population? So it seems, both on Wall Street and Pennsylvania Avenue. They didn't lift a finger to help New Orleans, so why expect they will care about any other place — except Wall Street?
We are on our own — and it could still get worse. Will we see the Obama administration look the other way should child labor again rise in America? They would work for less! One US citizen tells of being impressed into supporting his family by working the fields outside of San Luis, AZ since he was 17. What took them so long? He could have been picking watermelons since he was 12! Should we not protect the wealthy by allowing other nationalities and races to send their children to work in the fields instead of to school? The Chamber of Commerce would love having lower wages and a less intransigent workforce to exploit! It would be much cheaper than outsourcing and off-shoring and re-importing! The US government already does little now to deter juvenile labor exploitation in the many countries covered by The U.S. Department of Labor's Bureau of International Labor Affairs report on child labor abuses (as required by the Trafficking Victims Protection Reauthorization Act of 2005 – passed by a majority Republican Congress, and signed into law by a Republican president, I might add). So why should we expect that the Labor Department would care about a bunch of impoverished imps manning the machines at the idle textile mills in the South, for instance? At least the machines would be generating revenue! Profit to the Real People!
So with the kids safely entrusted to the loving employer to keep them out of trouble, gangs, and drugs, what does that leave their unemployed Dad and Mom to do? Dad could grow drugs to sell to the swells while Mom peddles them a good time while enjoying it – just like what is now happening in Chattanooga. That way, every family member indiscriminately contributes to the economic needs of the family. From each according to his abilities, to each equally! So ends another chapter in the ongoing Horatio Alger American success story! Hurrah for capitalism!
But let's get serious, folks. Is this really the sorry state of affairs that the American people voted for last fall? Is this the change they were led by Obama to believe would make the nation different and better in many demonstrable ways?
No, it's not. He's let us down. Instead of bailing out the banks, he should have been bailing out the mortgage holders. In doing so, the banks could legitimately give themselves big bonuses for getting their institutions out from under economic calamity. Obama also would not have increased the federal deficit to a record $1.38 TRILLION of YOUR Money, a move which will prevent him from conducting any more rescues. Without the people working, where are all the revenues necessary to pay off the government debt going to come from? The private sector with its reams of tax breaks and exemptions? The investors who are only taxed 15% after they write off all their expenses? Please! The baby is ready to be drowned in the bathtub, so someone summon Grover Norquist.
Obama has shot his wad. He has lost the confidence of the world's lenders. No more automatic loans are forthcoming to prop up the sinking US Treasury. The Chinese are now about to issue financial securities denominated in renminbi as they ramp down their purchases of US Treasury bonds. Even those Marxists over at The Motley Fool are sounding the alarm over this, because they are reporting that Goldman Sachs is one of the largest foreign investors in Chinese banks. It will take a few years for the security to be viable, but the Chinese are patient and flush with bucks to cover them until it floats on its own. The Fools know this, and are right to be worried. The gravy train that gets spilled will include their own.
It doesn't stop there! The Swiss economy is deemed "more competitive" than the US, in part because of "growing concerns" that the US government would be unable to distance itself from private sector influences. This lack of separation is feared to affect the quality of auditing and reporting standards, which would further erode confidence in the US economic markets, and further aggravate the growing economic problems facing this nation. And Obama wants even more cooperation between dominant business and submissive government!
I tend to agree with the international bankers that the US government and the private sector have become too incestuously close, but there is one connection to the private sector with should have been closer. Warren Buffett, the Wizard of Wall Street, the Prairie Sage, the top investor who inspires the merely wealthy to spend thousands of dollars – no! $1.6 million! – wait! $2.1 million! – just to have lunch with him and talk money. Yet, as the Free Republic noted with unmuted disdain about a Wall Street Journal campaign funding report, The Rich Vote Republican, So Why is Warren Buffet Supporting Obama? You can begin to get an idea why – without spending $2.1 million – here.
Obama named Buffett as one of his advisors (as did Arnold, so Buffett's advice can't be called partisan), yet Obama has yet to clearly indicate or demonstrate that he is heeding the advice of the Oracle of Omaha. One would think that Buffett would advise Obama to heal Main Street before Wall Street, since an average of about 70% of the US economic activity comes from meeting the wants and needs of the working class. Without a healthy consumption base employed at good wages, how does the US economy again stand on its own two right feet?
Obama has abandoned the working class to their cruel fates in the hard, economic-based world he is helping to create. In it, are we to become world policemen or international door-to-door arms sales representatives? The only growth industry in America today is war! To jobs! To jobs! Freedonia's going to jobs!
It is beginning to look like the US is going to need to generate more wars in order to top the 68.4 percent of all world-wide weapons sales (The total value of which was $55.2 billion) made in 2008. The 2009 US weapons sales figure is expected to almost match the 2008 figure at $35.3 billion. But 2008's $37.8 billion in sales is nothing compared to the $128 billion for new wars approved by the Senate Appropriations Committee just a couple of days ago. It isn't clear if the $50 billion for Black Ops is included in this package, but suffice it to say if it's not that it's merely a drop in the Red Ink Sea – otherwise known as the Pentagon budget – which is almost $600 billion deep.
That swag-and-brag would settle a lot of subprime mortgages, rebuild a lot of collapsing infrastructure, develop new green energy technologies, and continue to provide a sufficient defense of the nation without going into deeper debt. We might even make some money on the deal!
But it is clear to me that Obama cares nothing for those of us (not me – I voted for Ron Paul) he once inspired to give him the White House. He's become so enamored of personal wealth that he aspires to it himself. He has become infected with the "More!" virus, and cares nothing for the starving little waif who asked for another portion for his meal. Obama will build us more workhouses and prisons, and he'll send more of us off to new wars fought only for the glory and profitable aggrandizement of the military-industrial corporatocracy.
Just don't expect him to care for "he who has borne the battle" when most of "him" comes marching home unfit to continue to provide "service". Nor expect any support for his widow, nor for his orphans, if he isn't marching anymore. There is no space on the spreadsheet for that uncapitalized expense. There is no profit in it. It would be unproductive, and productivity must increase at all times! The corporatocracy must be served! To Hell with all else!
Submit, citizen! Resistance is futile! You will be assimilated!
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