The plodding US economy, meager job growth and market tensions over Europe’s debt crisis will hang over Federal Reserve policymakers when they meet next week.
A recent string of weak data on the economy, from rising jobless claims to easing inflation as gasoline prices retrench, has raised speculation that the Fed may act to boost growth.
When the Federal Open Market Committee (FOMC) meets Tuesday and Wednesday, policymakers will know the outcome of Sunday’s Greek election, which could see voters reject the country’s EU-IMF bailout and force it to exit the eurozone. That would be a good thing for the 99 percent of Greece.
However, the Fed will not deal with the redistribution of income and wealth that has occurred over the last thirty years in the United States. That’s what ails the US economy.
The US government has enacted legislation during the last thirty years that has redistributed income from the 99 percent to the 1 percent; the 1 percent now receive about 27 percent of all income generated in the US compared to about 8 percent thirty-one years ago. That means the 99 percent have less cash to buy stuff, so the economy remains fragile because demand for goods and services is weak.
In the meantime, the 1 percent use their ill gotten income to find ways to suck more money out of the of 99 percent, like more free income redistribution trade treaties.
In other words, when the mighty officials of the Federal Reserve meet on Tuesday, perhaps they’ll look at ways to tweak the economy, because they have no intention of dealing with the reality of why the US economy sucks for the 99 percent. That would upset members of the 1 percent who control the US government, and who would then demand the political heads of Ben Bernanke and other Federal Reserve officials.
On the other hand, it’s possible the Federal Reserve is meeting to decide just how they can put more money into the hands of the rich, especially since the Fed has given $26 trillion to the banksters and fixed their books to make it look like the money was paid back when it was impossible to have done so. So perhaps they’re meeting to decide how they can suck more cash out of the 99 percent and give it to the 1 percent. That is their job, or so it seems.
Why Wall Street Mitt is Wrong When He Says He’ll Cut Government Spending and That Will Solve All Our Economic Problems
One percent took home 93 percent of total US Income Growth 2009-2010
Breakdown of the $26 Trillion the Federal Reserve Gave Out to Save Incompetent Investors
Read Full Post »