Feeds:
Posts
Comments

The United States Federal Reserve Bank issued a report in September 2017 showing that the top 1 percent of US income earners now own almost twice as much wealth as the bottom 90 percent of Americans. Notice the corporate media did not cover this report. They did not want us to know this stuff.

Anyway, wealth is defined as assets, such as stocks, bonds, futures options, houses, cars, clothes, trinkets and such.

The graph above is straight from the Federal Reserve Bulletin. Notice the bottom 90 percent have seen their wealth drop from nearly 38 percent of the total wealth in 1989 to 23 percent today, a 40 percent drop. Meanwhile, the 1 percent has seen their wealth grow from just under 30 percent in 1989 to 38.6 percent today. The 1 percent also own more wealth than those people among the 90 to 99 percent, but just barely.

The reason the 1 percent has gained so much wealth while the 90 percent has lost it is that the rich are stealing it from everybody else via their corruption of both major political parties, and such corrupt politicians as Donald Trump, Mitch McConnell, Orrin Hatch, Paul Ryan, and Ron Wyden.

In the same report, Federal Reserve researchers discovered the rich stole a record-high 23.8% of the overall US created income in 2016 (See graph below), up from 8 percent in 1980. However, the current figure appears to be understated. At least one report shows the rich are stealing 37+ percent of the total income produced in the United States. The Fed’s report showed the bottom 90% of families now make less than half of the country’s income. That figure slipped to 49.7% in 2016, down by more than 20% since 1992 (It is likely the drop is greater according to another study).

The reason why the billionaires are getting wealthier and the rest of us are becoming poorer is because of such things as trade agreements via political corruption, privatization scams, tax cuts for the rich, unrestricted campaign finance donations, mandatory testing of public school students K-12, student loans, Federal Reserve and US government rescue of mortgage-backed bondholders by the tens of trillions of dollars (See The $26 Trillion Dollar Bailout to Save the 1 Percent, a totally corrupt corporate wing of the US Supreme Court (John Roberts, Clarence Thomas, Samuel Alito, Neil Gorsuch, and Anthony Kennedy),  etc…. Corruption in US politics have not been this bad since the Gilded Age, and this is how the rich are getting richer by stealing from the rest of us.

Millions of US jobs have been exported since 1992, thanks to trade treaties negotiated to ensure US corporations can export jobs to low wage nations, as well as create jobs in these poverty-wage nations rather than here. The difference between the old higher US wages and the new lower extreme poverty wages in Mexico (where the minimum wage is $4.70 a day), China, Bangladesh, Vietnam and elsewhere goes straight into the already fat wallets of the well-to-do parasites of the millionaire and billionaire classes.

The job losers (the producers) might get unemployment insurance if they are lucky. The rich take their stolen loot and purchase wealth, such as stocks and bonds. The job losers often have to sell their assets to cover their expenses as they search for new jobs that typically pay less than what they once earned.

This is a nice income and wealth redistribution scam that every Democratic and Republican senator and member of the House of Representatives know very well. Every president since and including Ronald Reagan and Barack Obama have known this scam.

The billionaires continued their war against the 99 percent when the US Senate passed their tax cut for the rich and their corporations. And so the war continues against the 99.5 percent. This is class warfare at its most one-sided.

You can find the report from the Federal Reserve at https://www.federalreserve.gov/publications/files/scf17.pdf. The graphs are located on pages 11 and 12 if I remember correctly.

Advertisements

Blah
You only need to look at the Bush tax cuts of almost 15 years ago to recognize how tax cuts for the rich destroy jobs and redistribute income from the 99 to the 1 percent in the process. George W Bush was the first president since Herbert Hoover to experience negative job growth during his presidency. Now Trump will be the second president since Hoover to experience negative job growth. Here’s how the scam works.

The tax cuts for corporations will increase their after-tax profits. This will be handed out to the rich in the form of higher stock prices (capital gains) and dividend payments.

Meanwhile, the tax-cuts for the rich will deliver them more after-tax income with which to purchase more speculative investments. Both corporations and the individual wealthy will then inflate the current stock market bubble by purchasing more stocks, futures options, and other things of those natures. (A futures market is an auction market in which participants buy and sell commodity and futures contracts for delivery on a specified future date)

Naturally, this will bid up the price we pay for commodities, such as food, natural gas and oil. The difference between the current prices and the new higher (inflated via tax cuts for the rich) prices we will pay means that more of our income will be redistributed from us to the 1 percent.

In other words, we will be made to pay more to the rich for the food we eat, the natural gas we use to heat our homes, and the gasoline we need to power our cars, as well as other things, and that extra money we will be forced to pay will go straight into the pockets of the billionaires, people like Warren Buffett, the Koch Brothers, and Donald Trump.

The stock market bubble, perhaps the biggest in US history, will now continue to grow as both corporations and the individual wealthy have more money to bid stock prices up. The stock market bears a remarkable resemblance to a Ponzi scheme. A Ponzi scheme is a form of fraud in which belief in the success of a nonexistent enterprise (or artificially high stock prices) is fostered by the payment of quick returns to the first investors from money invested by later investors. In this case, the rich will be paid more and more for so long as the bubble continues to inflate, and for so long as it takes for the bubble to fizzle out. Corporate management will feel the pressure to export more and more US jobs in order to pay what is necessary to prop up their stock prices.

In other words, the tax cuts will produce greater pressure on corporate managements to export more US jobs to low age nations whenever possible. The difference between the old higher US wages and the new lower overseas wages will go straight into the pockets of the superwealthy. The rich will get all the increasing returns on investment from us, the stakeholders, rather than later investors. In that way, along with one other way which I shall not go into now, the stock market closely resembles a Ponzi scheme.

Trump’s disastrous tax cuts will cause a one trillion dollar increase in the federal deficit over the next ten years. Naturally, in order to reduce the deficit, Republicans will demand reductions of federal expenditures on education, road maintenance, social security payments to the elderly and disabled, Medicare, Medicaid, Welfare, food stamps and other programs that benefit the middle class and the poor, because of the deficit they have created with their tax cuts for the rich. In this way, the billionaires will become richer at the expense of everybody else, thanks to the unnecessary tax cuts.

Meanwhile, quite naturally, Republicans will insist on increased federal military expenditures and expanded deportations of undocumented immigrants because these programs are highly profitable to their base, which is the billionaires who control the party, and not the grassroots. The US currently spends more on its military than the next 26 nations combined, 25 of who are US allies. Talk about overkill or unnecessary.

The tax cuts are unnecessary inasmuch as the 1 percent are stealing a record amount of the total national income, going from 8 percent in 1980 to 37+ percent nowadays. Three people, (Jeff Bezos, Warren Buffett, and Bill Gates now own wealth (assets) than the bottom 50 percent of the US population. The top 1 percent now own more wealth than the bottom 90 percent. In addition, corporate profits are at record levels. So neither corporations or the rich need the money except as a way to steal more money from the rest of us, and the money from their theft will keep those stock markets, futures market, and other markets boiling upward until the bubbles pop. And that will produce a disaster for Trump, the Republicans, and us.

Every Republican who voted yes on the bill knows everything that I have written above. Yet, they still voted yes. This shows that the billionaires are their real constituents and not the grassroots. They all know the bill was passed on a series of lies.

Read more: Futures Market https://www.investopedia.com/terms/f/futuresmarket.asp#ixzz507u73Y1m The d
Follow us: Investopedia on Facebook

The billionaires who control the US federal government and both major political parties are quaking in their boots because the Mexican government has increased the national minimum wage ever so slightly, by .45 cents per day. No doubt the billionaires are worried the increase will cut into corporate profits, slow the increase in share prices during the current economic and stock market bubbles, and perhaps even slow the increase in dividend payments. Heaven forbid!

CNN reports that “Nearly 25 million Mexicans are getting a pay raise next week. From $4.25 to $4.70 — a day. Mexican government and business leaders agreed on Tuesday to raise the country’s minimum wage starting on December 1 to 88.36 pesos from 80.04 pesos. The 10% raise is good news for 24.7 million Mexicans who work either one or two minimum wage jobs. But it also resurfaces a key complaint by American workers who voted for President Trump, in part because of his pledge to renegotiate NAFTA, the trade pact between the U.S., Canada and Mexico. Trump blames NAFTA for the loss of many American jobs. Cheap labor has attracted American companies to Mexico for decades.”

Trump, of course, is correct. Millions of US jobs have been exported to Mexico since before Nafta, and millions more have been created there by US corporations rather than here because the terms of Nafta paved the legal road to do so. Generally, the numbers have been egregiously understated by researchers because the methodology they use deliberately understates US job losses.

What Trump doesn’t want US citizens to know, which is also what the billionaires who run the Republican Party and the Democratic Party don’t want you to know is that US income and wealth inequalities have been fueled by Nafta, and the stock markets have been booming since Nafta, precisely because Nafta has allowed US corporations to export millions of US jobs to Mexico. The difference between the old higher US wages and benefits and the new lower Mexican wages with no benefits goes straight into the already super-sized and ultra-fat wallets of the uber-rich via higher corporate profits, surging share prices and rising dividends.

Do you ever wonder how Warren Buffett, Phil Knight, the Koch Brothers, Steve Jobs, Bill Gates and others ever got so much richer than they should be? These wonder boys have always been big-time supporters of cheap Mexican and cheaper Chinese, Vietnamese and Bangladesh wages with no benefits and fewer worker safety and relaxed or nonexistent environmental controls in those and other nations. They also have prospered because of these things.

So these rich folks owe quite a debt to the record income and wealth inequality they have created to Bill Clinton, Hillary Clinton, George W. Bush, Paul Ryan, and Wall Street Senator Ron Wyden. The rest of us pay the price of the massive political corruption they have created.

Trump’s tax scam, as you can see from the video above, is a big tax giveaway to the rich via corporations. When corporations receive tax breaks, this raises their after-tax profits, which is then passed on almost exclusively to the rich via higher dividends and surging stock prices.

We already have an ultra-dangerous stock market bubble about to implode, and Trump’s tax plan will only make it bigger, but it will also make the coming recession worse by a wide margin. It is likely Trump’s tax plan is designed to do precisely this.

This means the tax plan has been written to create greater income and wealth inequalities, which are already at dangerous levels not seen before in US history. US corporate profits have been at record levels for years, gaining in size quarter after quarter.

Is anybody corrupt, stupid or insane enough to believe that corporations and the rich need more money? Trump and the Republican Party are most likely all three of the above, or is it something else?

The corporate tax cuts given by the Trump plan will keep that bubble expanding until it pops. That is the only logical explanation for the tax plan, which is an extremely dangerous idea in itself.

Here is what the corporate news media doesn’t want you to know. What is really odd about the Keystone pipeline is that this Canadian corporation is using eminent domain to dispossess US citizens of their property in order to expand it. The only mention of eminent domain in the US constitution is for “public purposes,” whereas the Keystone Pipeline is clearly a private profit-making venture. Your government is allowing US investors who are heavily invested in the Keystone Pipeline to dispossess less financially endowed US citizens of their property. That’s how corrupt your government is, and especially the corporate wing of the US Supreme Court.

As for the pipeline leak the news media doesn’t want you to know about.

About 210,000 gallons (5,000 barrels) of oil leaked Thursday from TransCanada’s Keystone oil pipeline near Amherst, South Dakota, drawing fierce outcry from pipeline opponents, and meek coverage by the corporate news media.

The leak, the largest spill to date in South Dakota, comes just days before Nebraska regulators decide on whether its controversial sister project—the Keystone XL (KXL) Pipeline—will go forward.

“Enough is enough. Pipelines leak—it’s not a question of ‘if’, but ‘when.’ The pending permit for TransCanada’s Keystone XL pipeline should be flatly rejected by Nebraska’s Public Service Commission (PSC), but know that no matter what the outcome, the fight’s not over yet,” said Scott Parkin, Rainforest Action Network’s Organizing Director. “We need to stop all expansion of extreme fossil fuels such as tar sands oil—and we need the finance community to stop funding these preventable climate disasters—disasters for the climate, the environment, and Indigenous rights.”

President Obama had rejected the Keystone Pipeline expansion, mainly because billionaire Warren Buffett likely told him in gentle terms to do so. Buffett owns BNSF railroad, which is the largest carrier of oil in the United States. Had the pipeline expansion gone through, BNSF’s profits would have suffered, and Uncle Warren didn’t want that.

President Trump reinstated the Keystone Pipeline because the Koch Brothers and other oil investors that invest heavily in the Republican Party made him do it. It’s that simple. The Koch’s, for example, are heavily invested in the pipeline as well as the Canadian tar sands, which produces the oil that will flow through the pipeline.

As for the oil spill, Dave Flute, tribal chairman of the Sisseton Wahpeton Oyate, said. “We are concerned that the oil spill is close to our treaty land, but we are trying to stay positive that they are getting the spill contained and that they will share any environmental assessments with the tribal agency.” If Flute really believes management at Keystone will share any honest “environmental assessments with the tribal agency,” he is an idiot and a fool.

According to TransCanada, the Keystone pipeline system delivers Canadian and U.S. crude oil supplies to markets around North America, stretching 4,324 kilometers (2,687 miles) in length. It starts from Hardisty, Alta., east into Manitoba where it turns south and crosses the border into North Dakota. It then runs south through South Dakota to Steele City, Neb., where it splits. One arm goes east through Missouri for deliveries into Wood River and Patoka, Ill., and the other runs south through Oklahoma to Cushing and onward to Port Arthur and Houston, Texas.

The proposed KXL would add to the massive Keystone system, with its line starting in Hardisty, Alberta and ending in Steele City. Nebraka’s government needs to issue permits in order to construct the pipeline, and public discussion begins soon.

 

Wealth inequality has grown since the Great Recession, according to a new report by the Pew Research Center. This inequality is at a level never seen before in the history of the United States, and it has been fueled by unprecedented income redistribution from the 99 to the 1 percent. Wealth and income inequalities have been created by a level of US political corruption not seen since the Gilded Age; and led by such political hacks as Wall Street Senator Ron Wyden and Wall Street Congressman Paul Ryan.

It is only natural that wealth for the rich has grown since they have stolen via their political hacks 99 percent of all income growth from 2009 to 2014 and the vast majority of income growth since then. However, not willing to anger their corporate donors, the higher-ups at Pew are unwilling to disclose why the rich have acquired more wealth while the rest of us have lagged.

As the next recession unfolds, and it is unfolding, it is likely to be much worse in many ways than the Great Recession simply because the demand for goods and services on the part of the 99 percent has to a large degree been redistributed to the 1 percent since the last recession.

For more information see Federal Reserve’s Survey of Consumer Finances


How corrupt and sick is an economic and political system designed to churn out billionaires at the expense of everybody else? The top three richest Americans (Jeff Bezos, Warren Buffett, Bill Gates) own more wealth than the bottom 50 percent of Americans. Is this what an economy is for?

A report from the Institute for Policy Studies has come out with a study on wealth inequality in the United States, which is a function of redistributing income from those who work for a living to the unproductive and idle ultra-rich.

The ultra-rich control both major political parties. So naturally, politicians enact trade policies and legislation that redistribute income from the 99 to the 1 percent. Republicans, such as the Bush clan, and Democrats such as the Clinton clan, as well as politicians such as Wall Street’s Senator Ron Wyden, and Congressman Paul Ryan have been instrumental in creating financial inequality. Quite naturally, President Trump wants to make income and wealth inequality worse through his proposed tax cuts for the rich. The repercussions of this inequality will likely be enormous. The last time such inequality occurred resulted in the Great Depression.

Key Findings from the study include:

* The three wealthiest people in the United States — Bill Gates, Jeff Bezos, and Warren Buffett — now own more wealth than the entire bottom half of the American population combined, a total of 160 million people or 63 million households.
* America’s top 25 billionaires — a group the size of a major league baseball team’s active roster — together hold $1 trillion in wealth. These 25 have as much wealth as 56 percent of the population, a total 178 million people or 70 million households.
* The billionaires who make up the full Forbes 400 list now own more wealth than the bottom 64 percent of the U.S. population, an estimated 80 million households or 204 million people — more people than the populations of Canada and Mexico combined.
* The median American family has a net worth of $80,000, excluding the family car. The Forbes 400 own more wealth than 33 million of these typical American families.
* One in five U.S households, over 19 percent, have zero or negative net worth. “Underwater households” make up an even higher share of households of color. Over 30 percent of black households and 27 percent of Latino households have zero or negative net worth to fall back on.