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Posts Tagged ‘"Dow Jones"’

The answer to Senator Warren’s question is simple. The $14.75 has been redistributed into the pockets of the 1 percent mostly via legislation, which is a product of the corruption of government, which is a product of tax cuts for the rich.

That’s $14.75 per worker, per hour, per week, per month, per year, for years and years, that has been redistributed into the pockets of the rich via the votes in congress of such politicians as Wall Street senators Ron Wyden, Mitch McConnell and Orrin Hatch. That’s why the latter two are against raising the federal minimum wage. Principle has nothing to do with their stand on this issue. It’s purely a case of redistributing income from the middle to the top class, and they know this.

All three senators have been generals of the 1 percent in their war against the middle class, and have consistently voted to ship millions of American jobs overseas via corporate trade treaties. The difference between the old higher US wages and the new lower third world wages go into to the pockets of the rich for every third world worker, for every hour they work, as well as every week, every month and every year.

That redistributed money goes into the pockets of the rich, who then use it to purchase more legislation in the political markets, all with an eye to sending the US middle class into extinction. But it all bids the Dow Jones higher, and higher, and higher, into a financial bubble. So that redistributing more and more income from the 99 to the 1 percent increases the paper wealth of the 1 percent.

However, failure to redistribute this income will result in a collapse of the financial markets, in much the same way as during the Great Depression.

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“As Ben S. Bernanke walks away from the Federal Reserve’s marble headquarters on the Mall here after presiding over his last policy meeting on Wednesday, he will leave behind a bittersweet legacy.

On one hand, his unprecedented efforts to drive down interest rates and stimulate the economy are widely credited by his peers with saving the nation from a second Great Depression, strengthening the economic recovery and leaving the nation’s financial condition poised to take off this year.

Yet those same policies have added momentum to one of the greatest surges in economic inequality in US history, helping the wealthiest Americans add to their enormous riches while the incomes of almost everyone else stagnated.”

What isn’t mentioned in Bernanke’s legacy is the probable wholesale corruption going on at the Federal Reserve. The primary purpose of the Fed appears to be to shield rich investors from any market forces they encounter that lessons their wealth. In other words, the Feds primary responsibility appears to be to rescue the rich from their own foolish decisions. This has opened the door to what appears to be a massive amount of corruption, both in the Fed and in the US government. See Breakdown of the $26 Trillion the Federal Reserve Handed Out to Save Incompetent, but Rich Investors–Johnhively.wordpress.com

As for the rest of Bernanke’s dubious legacy, click on the link below.

Ben Bernanke Leaves Legacy of Stimulus and Stagnation–The Sydney Morning Herald

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Yes, are we getting ripped off. From 2009 to 2011, the richest 8 million families (the top 7%) on average saw their wealth rise from $1.7 million to $2.5 million each. Wealth is what you own, income is money coming in. Income is what makes wealth grow, outside of say, the growth in value of an asset.

The Dow Jones just blew past 15,000, a record. How’d that happen? Easy. Income is being massively, and in many cases illegally, redistributed from the 93 percent to the 1 percent. See your-retirement-bottle-champagne-how-wall-street-fraudsters-ripped-you-again and breakdown-of-the-26-trillion-the-federal-reserve-handed-out-to-save-rich-incompetent-investors-but-who-purchase-political-power. The extra money the 1 percent receive in their rip-off scam is invested in the stock and bond markets, and it is precisely this redistribution scheme that is fueling the Dow Jones Industrials.

That’s why the rest of us, that’s 111 million families, suffered on average a decline of $6,000 each. It’s been redistributed to the 1 percent. Free trade treaties also play a role in this scam. Every year, one to three million jobs are exported from the United States to lower wage nations, according to the Federal Reserve. The difference between the old higher wages and the new lower wages are thrust into the pockets of the 1 percent via higher corporate earnings, rising dividends and soaring stock prices.

Do the math and you’ll discover that the top 7% gained a whopping $5.6 trillion in net worth (assets minus liabilities) while the rest of lost $669 billion. Their wealth went up by 28% while ours went down by 4 percent.

It’s as if the entire economic recovery is going into the pockets of the rich because it is. It’s no accident, it’s been carefully planned, whether it’s shipping jobs overseas, or giving bailouts to the 1 percent via the government and the Federal Reserve.

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A Explanation of How the Stock Market Works

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Could the Dow Sink Below 6,000?

In September 2007, I predicted the current recession, the Fed dropping the federal funds rate to zero, deflation, home mortgage interest rates “will drop below 5 percent and possibly 4 percent,” and numerous other things. Of those numerous other things I also said the Dow Jones Industrials will drop below 8,000 and “possibly” drop below 6,000.

My suggesting the Dow could plummet below 6,000 is not a 100% prediction, more of a strong feeling, a musing of a possibility that represents how weak the economy has become under the disastrous Republican economic policies of the last thirty years. And so we may yet reach that sad stage as billions of dollars of illusionary money disappears.

The below 6,000 possibility is now in sight. But we’re not likely to reach there overnight, it’s more a matter of months if we ever reach it, and there is yet a good possibility such a dubious outcome can be had.

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