The Democratic Establishment is against the candidacy of Bernie Sanders, and that includes the African-American segment of the Democratic Establishment. Not a single African-American establishment politician has endorsed Bernie. That’s natural since they are Democratic Party establishment politicians. However, on the grassroots level, many African-American endorsements are coming out for Bernie, such as in the advertisement above.
The profits of US corporations manufacturing in China and exporting goods to the US will likely explode from 44 to 285 percent if the USA becomes a party to the Trans Pacific Partnership (TPP). What chief executive officer’s (CEO’s) wouldn’t want to export millions of US jobs to China under these circumstances?
This is because the TPP will likely force China to manipulate its currency by 15 percent, making this so-called trade agreement a massive US jobs destroyer, and the next income redistribution scam the corporate big boys are foisting on the US public. That’s because US corporations making products in China for export to the USA earn considerably more profits when China manipulates its currency. This most likely hasn’t been lost on supporters of the TPP, including the CEO’s of hundreds of US companies that employ millions of Chinese to make the goods US corporations export to the USA.
China will be compelled to do this because Vietnam is one of the TPP nations and China is not. Vietnamese exporters, including US corporations, face a ten to fifteen percent tariff when their goods enter the USA. If the TPP is approved, the tariffs will be gone, and China will face the prospect of losing millions of export jobs to lower wage Vietnam unless it manipulates its currency vis-à-vis the US dollar.
Currently, $100 will purchase roughly 600 Yuan. Say, for example, a US company makes shoes in China, exports them to the US, and sells them for $100, with $25 profit per pair of shoes. When China manipulates its currency by 15 percent, $85 will purchase 600 Yuan. The shoes should cost $85 in the USA, rather than $100, but such price declines rarely occur. The shoes will likely still be sold for $100. The manufacturer will still get a 25 percent profit on the first $85, which comes to $21.25. Plus the company will pocket another $15, which is the difference between $85 and the retail price of $100. This means the profits from a pair of shoes will surge from $25 to $36.25, or 44 percent. Using the same math, a company earning a 5 percent profit will experience profit growth to $19.25, a 285 increase in earnings under the TPP.
Most studies show manufacturing jobs support as many as three other US jobs, including lawyers, dentists, plant managers, accountants, cooks and retail clerks, not to mention other manufacturing jobs. That means the loss of five million manufacturing jobs to China will cost an additional 15 million jobs, or a total of 20 million. The loss of tax dollars from these jobs will financially gut our social safety nets, schools, fire, police, social security, infrastructure, military, Homeland Security, and much more, but the stock markets will surge.
This will exacerbate US income inequality since the difference in pay between the former higher paying US jobs and the new lower Chinese wages will go into the pockets of billionaires and millionaires via higher corporate profits, rising share prices, and surging dividends. The job losers might get a few months of unemployment insurance.
According to economist Emmanuel Saez, the top 1 percent income earners took 7.8 percent of all US income in 1970. This more than doubled to 18.33 percent by 2007, but slid to 16.88 percent in 2009 due to the Great Recession. Using Saez’s statistics, economist Justin Wolfers came to the conclusion that 99 percent of all income growth from 2010 to 2014 went to the top 1 percent. Wolfers, however, noted that Saez’s figures understated the real gains made by the 1 percent because they did not include capital gains, which mostly go to the rich.
As noted above, exporting jobs redistributes and transforms middle class income into the rich man’s dividends and rising stock prices, which results in capital gains income. This is also why exporting jobs by the millions most likely accounts for the stock market bubble we’ve experience since the end of the last recession. This bubble could not have been caused by the demand for goods and services since wages have declined, job growth has been weak, and credit is more difficult to obtain compared to the period before the Great Recession. It’s also worth noting that the stock markets rose phenomenally immediately after President Bill Clinton signed NAFTA, paving the way for US companies to export US jobs.
The income figures used by Saez and Wolfers are derived from the Internal Revenue Service. However, according to a new report by Oxfam, “An Economy for the 1 Percent,” worldwide the “richest individuals” have stashed $7.6 trillion in overseas tax havens, meaning that money has never been taxed. Since many of these individuals are likely US citizens, the figures used by Saez likely understates the amount of income going to the 1 percent by a vast amount. Assuming the 1 percent have gotten 99 percent of all income gains since 2010, a perusal of the National Income Accounts of the United States, along with a calculator, suggest the 1 percent are possibly taking as much as 37 percent of all US income, which is quite a leap from the 7.8 percent in 1970.
The TPP will make this imbalance grow, leading to more ominous results for the nation. This government policy of redistributing middle class income to the 1 percent via international income redistribution agreements, falsely marketed as trade agreements, has led to a weakened economy. The statistics show the truth of this.
When President Jimmy Carter was in office, 1977-1980, the US population was 70 percent today’s size, and the gross domestic product was less than a third of today. Yet 208,000 jobs were created every month under Carter, with rising average real wages. In the last 48 months, the economy has created only about 172,000 jobs per month, but with declining real wages. Under Carter, US citizens had more pensions per capita, and higher real wages. A recent study by the Pew Research Center reveals that 59 percent of all US adults were considered middle class in 1980, compared to 50 percent today. In 1980, the 99 percent earned 92+ percent of all income, but today only receive anywhere from 78 percent to 64+ percent, depending on the figures you want to use. The demand for goods and services was much greater then than now because the majority of Americans had more money to spend, and the US economy was stronger because of it.
The economic policies pursued by the US government since 1981 have been a disaster for the majority of US citizens. With the TPP, the government is going down the same road. The TPP will make matters worse for the 99 percent, but it will be a boon for the profits, share prices, and rich investors of US corporations destined to export millions of jobs from the USA if the TPP is enacted. That’s why every American should call and urge their congressional representatives to reject the TPP. Every US senator knows this, including Wall Street Senator Ron Wyden, Orrin Hatch and Mitch O’Connell. So does Wall Street President Barack Obama. I know since every US senator and Obama have received this op-ed in the form of a letter.
Wall Street Senator Ron Wyden is one of the great weapons the rich use in their war against the middle class in the US senate. Walmart is a good case in point. Wyden has voted time and time again to export US jobs and redistribute income from the 99 to the 1 percent. The difference between the old higher US wages and the new lower foreign wages goes straight into the pockets of the rich via higher corporate profits, rising share prices, and surging dividends. The job losers might get a bit of unemployment insurance, if they’re lucky.
Chinese imports made by US manufacturers entering through Wal-Mart in 2013 likely totaled at least $49.1 billion and the combined effect of imports from and exports to China conducted through Wal-Mart likely accounted for 15.3 percent of the growth of the total U.S. goods trade deficit with China between 2001 and 2013. Virtually all of those goods are made in China by companies that formerly used to manufacture in the USA, thanks to Wyden.
The Wal-Mart-based trade deficit with those US companies manufacturing in China alone eliminated or displaced over 400,000 U.S. jobs between 2001 and 2013.
The manufacturing sector and its workers have been hardest hit by the growth of Wyden’s Walmart imports. Wal-Mart’s increased trade deficit with China between 2001 and 2013 eliminated 314,500 manufacturing jobs, 75.7 percent of the jobs lost from Wal-Mart’s trade deficit. These job losses are particularly destructive because jobs in the manufacturing sector pay higher wages and provide better benefits than most other industries, especially for workers with less than a college education.
Wal-Mart has announced plans to create opportunities for American manufacturing by “investing in American jobs.” To date, very few actual U.S. jobs have been created by this program, and since 2001, the growing Wal-Mart trade deficit with US corporations manufacturing in
China has displaced more than 100 U.S. jobs for every actual or promised job created through this program.
Posted in Uncategorized | Tagged american dream, China, exports, income inequality, income redistribution, international income redistribution treaties, manufacturing, Ron Wyden, Trade, Wall Street, walmart | Leave a Comment »
On Feb 4, U.S. Trade Representative Michael Froman joined other trade ministers from throughout the Pacific Rim in signing the Trans-Pacific Partnership (TPP) in New Zealand. Signing is not the same as ratifying. What the signing means is that the negotiations are concluded; the text is done; and that the TPP can now be submitted for a Fast Tracked vote in Congress at almost any time. Because of Fast Track legislation pushed President Obama, Wall Street Democratic Senator Ron Wyden, Wall Street Presidential Candidate Hillary Clinton, and almost all the Republican Party except a few, such as US Senator Jeff Sessions.
The TPP is the largest international income redistribution treaty ever concocted. It will ship millions of US jobs to China and Vietnam, circumvent US law and the US Constitution, and raise prices for US citizens and citizens throughout the area of the Pacific on such things as medicines. The difference between the old higher US wages and the new lower wages, and the difference between the old lower prices and the new higher prices, will go straight into the pockets of the rich via higher corporate profits, rising share prices, and soaring dividends. The TPP will also drive millions of immigrants from Latin America to the USA illegally because their jobs will be shipped to Vietnam and China too, and they won’t have anyplace else to go.
Currently, the 1 percent steal about 37 percent of all the income produced yearly in the USA, up from 8 percent in 1980. Wyden, Obama, Clinton and almost the entire Republican Party intend to redistribute even more to the 1 percent with the TPP. And here we are facing the unfolding storm of the greatest economic crisis since the Great Depression. I’ve been watching it unfold since last summer. It’s picking up steam, and officially should hit somewhere between September 2016 and June 2017. The entire US manufacturing sector has been in recession, for example, since November 2015.
It’s critical that Congress is hearing strong constituent opposition to the TPP right now. Please write your Members of Congress and urge them to come out publicly against the TPP.
For the better part of a decade, we have told our representatives we want a “Fair Deal or No Deal” on Trans-Pacific trade. Now that the text is finalized and changes are all-but-impossible, it’s clear that — while a handful of well-connected corporations got a more-than-fair deal for themselves — for everyone else, the TPP would be a disaster for the economy, the environment and public health.
The TPP Is Bad for Jobs & Wages
As you would expect from a deal negotiated with hundreds of corporate advisors, while the public and the press were shut out, if enacted, the TPP would offshore good-paying American jobs, lower wages and increase inequality by forcing Americans into competition with highly-exploited workers abroad paid less than 65 cents an hour.
The TPP’s much-touted new labor standards are so abysmally weak that countries could literally set their minimum wage at $1/day and their maximum hours of work at 24/day and still be in compliance. The pact simply does not do enough to protect jobs at home or human rights abroad. Instead, it would only accelerate the global race to the bottom in wages and working conditions.
On top of that, the TPP is so poorly negotiated that it contains a massive backdoor for products that are assembled mostly from parts made in third-party countries such as China, with no TPP obligations whatsoever, to enter the US duty free.
The TPP will also force China to manipulate its currency by at least 15 percent. This increases the profits of US corporations manufacturing products in China, and exporting them to the USA. This will compel many US companies to export jobs to China since the currency manipulation will increase the profits of these companies from 36 to 140 percent.
Tell Congress we can’t afford a massive new job-killing, wage-suppressing trade deal.
The TPP Is Bad for Food Safety
The TPP would flood the United States with unsafe foods. Going beyond previous trade deals, the TPP includes first-of-its-kind language allowing corporations to challenge both U.S. food inspection protocols and individual food inspection decisions.
Consumer advocates have warned the TPP could have a major chilling effect on efforts to keep out unsafe foods that don’t meet the same standards that U.S. farmers, ranchers and other producers are required to meet.
Tell Congress we can’t afford a trade deal that jeopardizes the safety of the food we feed our families.
The TPP Is Bad for the Environment
The TPP would actually roll back environmental enforcement provisions found in all U.S. trade agreements since the George W. Bush administration, requiring enforcement of only one out of the seven environmental treaties covered by Bush-era trade agreements.
Beyond just failing to mention the term “climate change” in its thousands of pages, the TPP would also provide corporations with new tools for attacking environmental and consumer protections, while simultaneously increasing the export of climate-disrupting fossil fuels.
Tell Congress we can’t afford a trade deal that threatens the air we breathe, the water we drink and the future we leave for our children and grandchildren.
The TPP Is Bad for Access to Medicine
Many of the TPP’s intellectual property provisions would effectively delay the introduction of low-cost generic medications, increasing health care prices and reducing access to medicine both at home and abroad.
The TPP contains requirements that TPP nations allow additional 20-year patents for new uses of drugs already under patent, among other rules that would promote the “evergreening” of patent monopolies. Other TPP provisions may enable pharmaceutical companies to challenge Medicare drug listing decisions, Medicaid reimbursements and constrain future U.S. policy reforms to reduce healthcare costs.
Tell Congress we can’t afford a trade deal that limits access to life-saving generic medications.
The TPP Is Bad for Human Rights
The TPP includes several notorious violators of international human rights, such as Brunei, where LGBT individuals and single mothers can be stoned to death under Sharia law and Malaysia where huge numbers of ethnic minorities are trafficked through the jungle in modern slavery.
Tell Congress we can’t afford to ignore the actions of notorious human rights abusers.
Too many Congress members have hemmed and hawed about the TPP, refusing to state their position. Now that the text has been public for months, and that the agreement has actually been signed, the time for fence-sitting is over. Please contact your Members of Congress now and urge them to oppose the TPP.
Posted in Uncategorized | Tagged Barack Obama, Fast Track, Great Depression, great recession, Illegal Immigration, income distribution, income inequality, Jeff Sessions, medicine, Michael Froman, patents, Ron Wyden, Tpp, Trans-Pacific Partnership, Wall Street, wealth inequality | Leave a Comment »
You bet she did, according to US Senator Elizabeth Warren. In the debate with Senator Sanders, Hillary said,
“Senator Sanders has said he wants to run a positive campaign; I’ve tried to keep my disagreements over issues, as it should be. But time and time again, by innuendo, by insinuation, there is this attack that he is putting forth, which really comes down to: ‘Anybody who ever took donations or speaking fees from any interest group has to be bought.’ And I just absolutely reject that, senator. And I really don’t think these kinds of attacks by insinuation are worthy of you. Enough is enough. If you have something to say, say it directly,” Clinton continued, “but you will not find I ever changed a view or a vote because of any donation I ever received.”
Yes, she did change her mind on legislation when some of the biggest banks applied pressure on her as a US senator. They wanted her to vote for legislation making it more difficult for people to go bankrupt. As first lady, she had opposed the bill, and gotten her husband, President Bill Clinton, to veto it after he had supported it.
The big banks were behind this for a big reason. Like mortgage backed bonds, credit card debt is also securitized. Wall Street investment banks purchase credit card debt, bundle them in packages, and sell bonds backed by the debt. This is a sector of the banking industry that produces tens of billions upon billions of dollars of profits for banks like JP Morgan and Citigroup. When people go bankrupt, the bonds become valueless.
By supporting the legislation, Hillary Clinton voted to enslave the 99 percent to rich investors and Wall Street investment banks with a steel chain of credit card and other debt. Most bankruptcies, by the way, are caused by medical bills paid off with credit cards.
You want proof that Hillary pulled another whooper on the audience? Check out the Bill Moyers interview with Senator Elizabeth Warren below. Then check out a few other issues Hillary was not quite honest on by clicking on the link below that.
Elizabeth Warren is a rarity nowadays. She is a US senator, unlike most senators, such as Ron Wyden, who is clearly a tool and senator of Wall Street and of perhaps even Phil Knight, the founder of Nike. In a new report prepared for Warren, called Rigged Justice, several not so shocking things are clearly illuminated which prove how corrupt the US government has become, and let’s face it, this government is one of the most corrupt in the world, at least among the so-called Democratic nations.
“The Obama Administration,” the reports says, “has made repeated promises to strengthen enforcement and hold corporate criminals accountable, and the Department of Justice (DOJ) announced in September that it would place greater emphasis on charging individuals responsible for corporate crimes. Nonetheless, both before and after this DOJ announcement, accountability for corporate crimes is shockingly weak.”
This is because both the Democratic and Republican establishments are completely reliant on money from the CEOs and corporations that commit these crimes. Most of the penalties faced by these CEOs and their corporations were so paltry that the report stated, “The examples (from this report) raise the disturbing possibility that some giant corporations—and their executives—have decided that following the law is merely optional. For these companies, punishment for breaking the law is little more than a cost of doing business.
There is a simple set of rules governing how US laws are applied. If you are rich, and you have used your money to corrupt the political system, the DOJ doesn’t look at you after it has caught you. The report goes on.
“When government regulators and prosecutors fail to pursue big corporations or their executives who violate the law, or when the government lets them off with a slap on the wrist, corporate criminals have free rein to operate outside the law. They can game the system, cheat families, rip off taxpayers, and even take actions that result in the death of innocent victims—all with no serious consequences.”
According to Warren, in an editorial in the New York Times, in 2015, “in case after case, federal agencies caught big companies breaking the law, defrauding tax payers, covering up deadly safety hazards, even precipitating the financial collapse of 2008, and let them off the hook with barely a slap on the wrist.” And to think that financially ordinary people go to prison for far less crimes than ripping off billions of dollars from taxpayers and investors, or knowingly selling products that kill.
“The failure to punish big corporations, the report went on, “or their executives when they break the law undermines the foundations of this great country: If justice means a prison sentence for a teenager who steals a car, but it means nothing more than a sideways glance at a CEO who quietly engineers the theft of billions of dollars, (not to mention the theft of the government and their regulatory agencies) then the promise of equal justice under the law has turned into a lie.” That promise died decades ago. “The failure to prosecute big, visible crimes has a corrosive effect on the fabric of democracy and our shared belief that we are all equal in the eyes of the law.
Some of the crimes committed included:
1 “The Cartel”: Citigroup, JPMorgan Chase & Co, Barclays, UBS AG, and Royal Bank of Scotland. In May 2015, Citigroup, JP Morgan Chase & Co, Barclays, UBS AG, and Royal Bank of Scotland (RBS) agreed to pay a combined $5.6 billion settlement to the DOJ. Bank traders from Citicorp, JP Morgan, Barclays, and RBS created a secret group known as “The Cartel,” which for more than five years manipulated exchange rates in a way that made the banks billions of dollars at the expense of clients and investors. And, the fifth bank, UBS, separately agreed to plead guilty to wire fraud charges in connection with interest rate manipulation. Although DOJ required admissions of guilt as part of the settlement – a reflection of the severity of the charges – not one single individual faced any criminal prosecution. Moreover, the SEC granted waivers to each bank so that the banks could avoid the collateral consequences that were supposed to accompany a guilty plea. Those waivers meant that the banks’ much-hyped guilty pleas were ultimately “likely to carry more symbolic shame than practical problems.”
2. Novartis. In November 2015, DOJ announced a $390 million settlement of a civil fraud lawsuit with Novartis Pharmaceuticals over allegations that the company engaged in a kickback scheme with pharmacists to increase sales of their drugs to Medicare and Medicaid patients. These kickbacks allegedly were paid even as Novaris was already under a corporate integrity agreement for previous violations of the law. This $390 million represented just over 10% of the damages sought by the government. It placed no further restrictions on Novartis’ participation in federal government healthcare programs, included no admission of wrongdoing, and did not include an indictment of any individual responsible for the kickbacks. The settlement was so paltry that after it was announced, Novartis’s CEO candidly noted that “whether we change our behavior …[in response to the settlement] remains to be seen.”
3. Education Management Corporation (EDMC). In November 2015, DOJ settled a civil case with EDMC, the second-largest for-profit education company in the country. EDMC illegally paid high-pressure recruiters to enroll students and violated the False Claims Act by falsely certifying that it complied with Title IV of the Higher Education Act. EDMC received $11 billion in payments (90% of it via federal student grants and loans) from 2003-2011 as a result of these efforts. But the settlement recovered only $95 million –less than one percent of this total. The DOJ settlement did nothing to resolve federal student loan debts owed by those who were victims of the illegal recruitment, held no individual executives at EDMC accountable, required no admission of wrongdoing, and did nothing to prevent EDMC from receiving federal funds in the future.
What the report doesn’t mention is that US banks have been caught openly laundering money for Mexican drug cartels. They’ve been fined, and then were caught again, and not a soul has been charged with a crime.
For the complete report click the link below. http://www.warren.senate.gov/files/documents/Rigged_Justice_2016.pdf
Other reasons to vote for Bernie:
1. Honesty in government. We haven’t had an honest president since the great Jimmy Carter.
2. Sanders fights for main street, and always has. Hillary fights for Wall Street and large corporations, and always has.
3. Sanders has been completely honest with us.
4. Sanders will do no harm, while Hillary is chomping at the bit to do Wall Street’s bidding, which means screwing us over.
5. Sanders will try to restore the American dream, while Hillary will continue to do the bidding of Wall Street and continue policies that continue the American nightmare of the last thirty-five years that has seen record corporate profits, and massive redistribution of income from the 99 to the 1 percent so much that the middle class has been reduced from 61 percent of all adults to 50 percent today.
6. Sanders will champion policies that reverse the trend of the last and the percentage of total income produced in the USA has gone from
7. How’s that globalization thing going for you? The US middle class has shrunk, and so has the income of the 99 percent. The 99 percent earned 92 percent of all income produced in the USA in 1980, and now that figure is down to 67 to 77 percent, depending on whose numbers you use. Hillary has voiced support for the Trans Pacific Partnership (TPP), the largest international income redistribution agreement ever, falsely marketed as a trade agreement, 45 times and said she’s against it twice. Bernie has always said he’s against it. The TPP will ship millions of US jobs to China, and the 1 percent will pocket the difference between the old higher US wages and the new lower Chinese wages via higher corporate profits, surging dividends, and rising share prices. Hillary is for that by a count of 45 to 2.