Political news--August & September of 08

Social and Economic Evolution Out of Control--jk

Summary of the current market bubble collapse--Nobel Lauret Stiglitz
Free Market Meltdown--explained
HOUSING BUBBLE FIX--fed second mortgages--jk
Economic Collapse--you tube
Social and Economic Evolution Out of Control--jk
Saving the Banking Industry
Old Fashioned Cronyism

Neoliberal free-market policies failing again.  Under Reagan it was the S&L debacle, then it was the dot com and teach stock bubble and now the housing market collapse.  Solution, raise the debt, drop and sell more T-bills, which is done through dropping the value of the U.S. dollar. 



Social and economic evolution out of control




Forces that shape human behavior produce results contrary to that which promotes overall happiness.  Our landscape is littered with obesity, lung cancer, conspicuous consumption, absurd religious practices, battling relationships, and wars.  These same forces operate on the economic-political scene speculative bubbles, great inefficiencies, depressions, and a pyramid distribution of returns of profits an enterprise produces. 

     There has been a recorded from the beginning of written history of the social group at the bottom of the pyramid (not including slaves) that have struggled with those at the top over the distribution of the wealth of a nation.  Our own nation from its very founding has acted to protect the interests of those of great wealth from those who would have benefited from a distribution of the land.  During the early period of industrialization, the robber barons used their wealth through political donations to garner special considerations that promoted increased profits and impeded attempts of the masses to improve their lot.  Their considerable influence upon government laws was opposed by an ineffectual union movement.   Unlike European countries, this movement never formed a labor party.  Nevertheless during the collapse of 1929 and the decade following the Democratic Party passed acts that promoted the well being of the masses.  Acts such as unemployment insurance, social security, rights to unionize the work place, regulations on the conditions of work and the benefits such as the requirement of medical insurance and pension plans.  Even the airwaves were regulated as to content so that the considerable influence of content would be not used restore the robber barons to their once dominant position of influence. 

     Even so things change, the influence of the press was supplemented with radio and later television.  Content subtlety implanted values and perspectives which reduced class consciousness.  And with this shift the pressure upon the elected promote the well being of the masses was reduced.  Slowly the laws governing unions and the workplace were changed.  At the same time corporations had evolved a global presents and the structure of decision leadership changed as the practice of dividing the ownership became the norm.  With this division of ownership developed board of directors made up of large shareholders.  They became the decision makers.  Corporations in pursuit of profits developed an international presence. 

     These international corporations and financial institutions have developed their own regulatory structure which promotes their competition in local and regional markets.  The International Monetary Fund (IMF), World Bank, and World Trade Organization (WTO) promote the removal of trade and financial restrictions.  Slowly there influence has grown and with those barriers such as tariffs, financing, and ownership laws have been changed.  Developed countries have put supported these international organizations.  The U.S. has appointed every head of the WTO, and the European Union is allied to them.  Moreover, governments supportive of their policies are far more common than those who aren’t.  Free trade agreements have been ratified by most nations. 

     The reduction in the power of labor unions and other populist structures has permitted the ever increasing influence of the globalizers.    The political power of flat worlders* has risen well above that of the period prior to the Great Depression.  Given current trends, history is repeating itself.  A collapse similar to that which occurred in the orient in 1999 and that in Argentina in 2002 is occurring in the U.S.  The dollar has fallen over 40% against the Euro since 2002.  Trade deficit has promoted mass the buying up of our industries, real estate, and financial institutions.  Our government’s debt has risen to over $10,000,000,000,000.  The housing market is collapsing (like it did during the depression).  We are on an elevator going down, but without the numbers changing on the wall.  The corporate media pretends all is well, yet we are in free fall. 

     A country cannot remain economically strong when a trade deficit each month is over $50,000,000,000, when jobs in mass are outsourced, when manufacturing employment is under 15%*, when the labor market is flooded with foreigners and elderly as social security payments diminish and the age for retirement raised.       

     This shift away from a strong labor movement, which once exerted significant influence upon politics, has occurred in nearly all nations.  They have been forced out by the big bucks of local and international commercial interest.  The opinion making ability of the corporate media has effectively quelled opposition.  There is like a global epidemic, each nation has a significant germ load; the signs of illness are everywhere present.  This disease causes a diminishing return of workers on their production, a reduction in the social nets, a privatization of government services.


*  Four labels denote them:  neoconservatives, neoliberals, globalizers, and flat worlders (from Thomas Freedman’s book, The World is Flat). 

**  Another government lies on our economy; the small print on its method of calculation reveals the lie.  For example manufacturing since 03 includes the workers in the fast food industry.  An examination of the inflation rate, government figure of 2.7% annual rate as of July of 08, reveals a similar deception.  The cost of living is rising at over 12% per year (07 & 08).  



By lying about the rate of inflation our government saves billions of dollars.  For example the increase in social security payments is tied to the rate of inflation, as is government employee salaries.  Most large corporations, and those with unions, give pay raises based on the rate of inflation.  In the last two years the real rate of inflation (how much it costs to do everything you normally do) has gone up over 10% each year--jk. 

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Teddy Roosevelt's advice that, "We must drive the special interests out of politics. The citizens of the United States must effectively control the mighty commercial forces which they have themselves called into being. There can be no effective control of corporations while their political activity remains."