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Good news for the middle class has finally arrived. The 99 percent has a real candidate for US president now. On Tuesday, May 26, US middle class Senator Bernie Sanders officially announced his candidacy to be the Democratic nominee for the US presidency.

Former Wall Street Senator Hilliary Rodham Clinton is Bernie’s only competition for the nomination. Clinton has a boat load of money, but she carries a ton of baggage. Most notably, she and her husband, former Wall Street President Bill Clinton, are notorious redistributers of income from the 99 to the 1 percent.

If you listen to Bernie’s announcement speech above, the defining issue of this election is going to be income distribution, and more specifically, how the 1 percent went from stealing 8 percent of all US income in 1980 to 37 percent today. Who loses on this issue? Clinton does.

Sure the Dems will hold debates, and sure the moderator will make sure the debate issues will be about abortion, gun control, and a ton of social issues, and not income and wealth inequality, and yes the moderator will make certain the television camera’s never light upon Bernie’s face by not calling on him to answer any questions or to respond to Clinton’s answers, but Bernie will win this election, and by a fair margin.

One day after he announced that he intended to run for the presidency, back in April, 75,000 people volunteered to work on his campaign. A month later, he has 200,000 volunteers. By election time, Bernie will have half a million plus, perhaps a million plus, volunteers working on his campaign. Hilliary can spend half a billion dollars, but she can’t beat what Bernie has, volunteers and real hope for the 99 percent, rather than the phoney Obama hope and change!

A message from Bernie:

Friend –

For many months I have been traveling from coast to coast across our country, and have had the opportunity to meet with thousands of good, hard-working, and remarkable people. Like you and me, they are deeply concerned about the future of our country.

They wonder why they are working longer hours for lower wages. They worry about whether their kids will be able to afford college or get decent jobs. They fear that they may not have the savings to retire with dignity and security.

The challenges facing our country are enormous.

After a year of travel, discussion and dialogue, I have decided to be a candidate for the Democratic nomination for president. But let’s be clear. This campaign is not about Bernie Sanders. It’s about a grassroots movement of Americans standing up and saying: “Enough is enough. This country and our government belong to all of us, not just a handful of billionaires.”

Our movement needs people like you involved to help it succeed. Add your name now to say you support my campaign for president.

Http://go.berniesanders.com/launch-photos

Bernie Sanders

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Four Graphs that Will Make You Boiling Mad About the Trans Pacific Partnership–Or Why President Obama, along with executives from Nike, Microsoft, Apple and other US corporations Steadfastly Support China’s Currency Manipulations

income inequality

Originally published May 19, 2015 by John Hively

When China manipulates its currency vis-a-vis the US dollar it increases the profits of US job exporters that produce stuff in China and exports that cheap stuff to the USA.

That’s most likely why President Obama said he will veto any congressional legislation that seeks to stop the Chinese government from manipulating its currency.

Why do President Obama and executives of US based multinational corporations, like Nike, want the Chinese government to manipulate its currency? And what does this have to do with the Trans Pacific Partnership and Fast Track Authority?

The answer to one of these questions is simple: the TPP will force China to manipulate its currency even more than is currently the case.

Take a look at the graph below. On the left side is the Yuan, which is the Chinese currency. On the bottom line is the dollar. Now look at the two intersecting lines, which is the supply and demand for dollars. In this example, 600 yuan can purchase $100 in the currency markets, which is roughly what the two currencies currently exchange for.

So when Nike, Microsoft or Apple Inc. manufacture a product in China that costs the consumers, say, 600 yuan in China, given the exchange rate, the same product will cost $100 in the United States, after, of course, it is exported from China to the USA. Assume these US corporations have a 25% profit margin. That means these companies get 150 Y profits in China per product, and $25 profit when they export their products to the United States.

The same is true for companies that manufacture products in the USA, and then export them to China. American manufacturing companies earn $25 per $100 of product sold in the USA, and 150 Y when their products are exported from the USA to China.

The government of China has been accused of manipulating the value of its currency. So what happens when it does this? It purchases dollars. This shifts the D1 line to the left, because there are less dollars on the market, which is shown in the graph below as line D2. This makes the Yuan less expensive in terms of dollars.

Why would President Obama encourage the Chinese government to manipulate its currency by threatening to veto US legislation aimed at stopping it? Why would Wall Street Senator Ron Wyden only pay lip service to the evil of Chinese currency manipulation, while apparently supporting it? Why are the higher up folks at Nike, Microsoft, Apple and every US corporation that is producing goods in China for export to the United States against any legislation that seeks to address Chinese currency manipulation? There is a very good reason they’re all for this.

Look at the example in the next graph below. When the Chinese government manipulates it’s currency by purchasing dollars, 800 Y will now purchase $75. Do the math; 600 Y will purchase now $56. What does that mean?

It means that when Nike manufactures a pair of shoes in China which costs 600 Y there, in the US it should cost $56 rather than $100, thanks to China’s currency manipulation, but that rarely happens. The US corporate propaganda machine will lie to you and tell you it makes Chinese imports less expensive. However, the truth is that China’s  manipulation increases the profits of Nike.

Nike still gets 25%, or 150 Y, in profits when its shoes are sold in China. When it exports the same shoes to the USA from China, Nike still gets 25% profit on $56, which is $14 dollars. However, Nike still sells it’s shoes for $100 in the United States, which means another $44 in earnings per pair, in addition to the $14.

That means Nike’s profit margin on a $100 pair of shoes goes from 25% at the old exchange rate to 58% at the new exchange rate. This sends its earnings and stock prices higher. The same thing occurs with Microsoft, Dell, Hewlett-Packard, Apple, and every US corporation manufacturing in China, that are exporting their products to the United States.

So who pays the price for this?

You do; if you work for a living in the United States, or if you’re a  small or medium size business owner. Here’s how. Suppose you are a US manufacturer producing shoes in Oregon that sell in the USA for $100. You ship them to China at 600 Y for $100, and earn 150 Y, or $25, in profits. Now suppose the Chinese government, with the encouragement of your corrupt government and many US business leaders, manipulates its currency by purchasing tens of billions upon tens of billions of dollars. The supply of dollars on the international currency markets shrinks, making dollars more expensive, and as noted above, the D1 line shifts to D2, which represents the new supply of money. BTW, the space between D1 and D2 represents the amount of dollars the Chinese purchased.

Those $100 US made shoes now costs 1000 Y in China. Okay, my graph isn’t too high tech, but the actual figure is 1066 Y, if you do the math, but let’s stick with the 1000 Y, for simplicity sake. There’s still a 25% profit margin per pair of shoes, but at the 1000 Y price, there’s not a whole lot of buyers in China. The US manufacturer could lower the price of the shoes to 750 Y, but he or she isn’t making a penny at that price, and they’re still overpriced for the Chinese market. Say goodbye to the Chinese market for all US products at the new exchange rate.

US exports to China are going to shrink quite rapidly under this scenario. This means fewer American jobs, and less wages for everyone. It means less tax dollars going to schools and other government services, it means no retirement pay for a larger percentage of the 99 percent. Rich folks don’t need the money they’re going to steal from us, except to keep the latest stock market bubble surging, at least until it pops. However, greater profits mean the bubble can keep expanding for a while longer.

So how can US corporate leaders and their corrupt politicians encourage the Chinese government to manipulate its currency even more than it already has?

The scams that have been created to do this are called the Trans Pacific Partnership and Fast Track Authority. So what do these two things have to do with Chinese currency manipulation? More importantly, why would the Chinese

government want to engage in currency manipulation?

The answer in one word; Vietnam.

Vietnam is one of the nation’s involved in negotiating the Trans Pacific Partnership. As you can see from the graph below, China’s annual minimum wage is nearly twice that of Vietnam. The wages in China at those Nike and Microsoft and Apple and Hewlett-Packard factories and their suppliers and contractors and subcontractors have been going up rapidly over the past fifteen years. Those labor costs have been able to go up because the Chinese government has increased the profit margins of its US manufacturers by manipulating its currency. But there’s another reason why China needs to manipulate its currency vis-a-vis the dollar.

As you can see from the map below, there are nearly 313,000 Nike workers toiling in Vietnam, and nearly 250,00 in China. Vietnam clearly has lower labor costs than those in China. The Chinese government, however, can offset its labor cost disadvantage by manipulating its currency. So it can keep those jobs in China, and still allow the wages of Chinese workers to expand. But that might not be the case should the Trans Pacific Partnership (TPP) become a reality.

Tariff is another word for tax. When a US company like Nike manufactures its products in Vietnam, and then exports them to the US, a tariff is charged against the products of between 10 and 15 percent. So another $10 to $15 dollars is added to the cost of a $100 pair of Nike’s Vietnamese made shoes exported to the USA. That means less profits, lower dividends, and lower share prices than would otherwise be the case without tariffs. The US tariffs on US corporate goods manufactured in Vietnamese factories helps to offset some of the Vietnamese labor cost advantages vis-a-vis the cost of Chinese labor.

Under the TPP, should it become law, those tariffs will likely be gone, giving Vietnam a much larger labor cost advantage over Chinese workers.

In which case, the Chinese government will have two options; let millions of Nike and Dell and Apple and Microsoft jobs head south to Vietnam, along with the jobs of contractors and subcontractors, or manipulate its currency even more, which means all of those US corporations manufacturing stuff in China for export to the US will see unprecedented and explosive growth of their profits; and all of this will occur at the expense of small and medium sized US companies that make stuff in the United States and export them to China.

That means several unpleasant things will occur to the US economy: US unemployment will grow with the TPP, as exports to China diminish, inequality in wealth and income will continue to increase during the reign of Obama and Wyden, the stock market bubble will continue to expand, the coming stock market crash will be even worse than imaginable, US businesses will need to export more US jobs to China, and all of these bad things will trickle down to more crowded classrooms, less government services, reduced wages, fewer jobs, more poverty, and much more negative stuff for the 99 percent. However, the super rich will become even more super rich. And Chinese currency manipulation will not be the only thing in the TPP contributing to all of these things. See https://johnhively.wordpress.com/2015/04/21/how-the-trans-pacific-partnership-will-destroy-american-jobs-by-destroying-us-exports/

The political game in the US over the TPP and Fast Track Authority currently being played out is a complete farce.

Start with Fast Track Authority, which President Obama, Nike, Microsoft, Ron Wyden, Orrin Hatch, Mitch McConnell and just about every major US corporate CEO and investor desperately want Obama to have. Fast track will limit congressional debate on trade deals, it will scuttle any possible congressional amendments, and eliminate the use of the filibuster in the senate to stop the TPP. Fast track needs to pass through both houses of congress.

As a condition for bringing Fast Track Authority to a debate on the floor of the US senate, on May 13, a number of Democrats who traditionally vote to redistribute income from the 99 to the 1 percent (Ron Wyden, Harry Reid, Patty Murray, Heidi Heitkamp, Bill Nelson, Tim Kaine, Claire McCaskell, and Ben Cardin) agreed to first bring a vote for a bill by which the US will crackdown somehow on China for manipulating currency.

These folks know such a bill may not pass the senate, much less the house of representatives. If it did pass, then it will sit on Obama’s desk until Fast Track Authority passes both chambers of congress. Then he will veto the currency manipulation bill. There’s a ton of income to be redistributed from the 99 to the 1 percent resting on his shoulders.

Then the above senators will pretend to the folks back home that they did all that they could, when in fact, they did nothing when they could have done something to protect the folks back home from the TPP.

Every US senator and every US house representative knows this is the game, and many are willing to play this deadly game so as to justify their support for giving President Obama Fast Track Authority, even though the TPP will likely rip out the guts of the middle class, as well as the US economy.

If the above named Democrats were at all serious about Chinese currency manipulation, then they would agree to wait until Wall Street President Barack Obama signed the bill into law before opening debate on fast track authority.  That won’t happen.

Fast Track Authority is the only way the president can ram the TPP through congress. It’s an income and political power redistribution agreement falsely marketed as a trade agreement. Most of those in the know say the TPP is dead if the president doesn’t receive fast track authority. So fast track is the key.

Save the United States. Fight against this madness called Fast Track Authority. The TPP will only create greater trade deficits in the future than is currently the case. As US Congressman Alan Grayson famously and recently said, “You will find that the largest fourteen trade deficits in the history of the world have been the US trade deficits in each of the last fourteen years….What sane person can look at these trade deficits and conclude we need more free trade?”

The political fight over the Trans Pacific Partnership, Fast Track Authority, and Chinese currency manipulation isn’t about sanity; it’s about greed and government corruption. It’s about raising the already soaring share prices, dividends and earnings of US corporations that have exported millions of US jobs to China and other third world nations, and doing so at the expense of everybody else. It’s about redistributing your standard of living to a small minority of overly rich people who have corrupted and rigged your government in favor of themselves. It’s about redistributing your income and wealth to the 1 percent so as to keep the current stock market bubble expanding. It’s about redistributing the American dream to the 1 percent. It’s about taking the opportunities that once existed for the majority of American citizens and wiping them out by giving 100 percent of all income growth to the 1 percent, and leaving more and more people in poverty.

Currently, the 1 percent steal 37 percent of all income produced in the United States compared to 8 percent in 1980, back when opportunities for financial advancement existed for most Americans. Now the big boys, and the politicians they’ve bought off in one way or the other, want to eliminate your opportunities, as well as those of your children.

Call your senators. Call your congressmen and congresswomen. Stop Fast Track in the senate. Stop the corruption. Stop the insanity.

Over the past fourteen years, since China was granted most favored nation trade status, Nike’s stock price has risen over a thousand percent, from $10 a share to over a $100. Chinese currency manipulation has helped fuel this bubble. So if you purchased a million shares of Nike in the year 2000, today the value of those shares would be over $10 million. With the TPP and Chinese currency manipulation, the value of Nike’s stock will continue to increase, but only at the expense of everybody else. Much of the US stock market bubble is fueled by the same force, and that goes for the stock prices of Apple, Microsoft, Dell, Adidas, Hewlett-Packard and more. And if the TPP goes through, more US manufacturers will need to shift production to China.

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A new congressional study suggests that massive immigration increases in recent decades have hammered middle-class wages. Whether through taking jobs or casting votes, hyper-immigration is revolutionizing the U.S.

We are a nation of immigrants, it is often reflexively said. But it is a little-known fact that our foreign-born population dropped more than 11% in the quarter century after World War II.

Since 1970, however, we have become a nation of hyper-immigration, as the foreign-born among us have exploded from fewer than 10 million to more than 41 million as of 2013 — a staggering 324.5% increase.

If a job cannot be exported, then immigrants are encouraged by business and government leaders to enter the United States to generate greater competition among middle class workers, which lowers wages and benefits. For example, a recent study shows that three out of four high tech workers are unemployed in their areas of expertise, and wages in the high tech sector are the same as during the early 1990s, and yet congressional leaders want to admit more immigrants via the H1-B visa. In this way wages and salaries will continue to stay artificially low, which benefits the 1 percent at the expense of the middle class.

The difference between the old higher wages (what wages should be under normal immigration increases) and the new lower wages with hyper immigration, goes straight into the pockets of the super rich via higher corporate profits, rising dividends and soaring share prices.

The middle class is getting hammered by the loss of millions of jobs that are exported via international agreements falsely marketed as free trade agreements. But the middle and lower classes are also getting hammered by hyper immigration. These two governmental policies are income redistribution scams perpetrated by the leadership of both major political parties and their billionaire and corporate sponsors, such as the Koch Brothers and Warren Buffett.

How badly has immigration and free trade policies been for the middle and lower classes?

“A new analysis from the nonpartisan Congressional Research Service for the Senate Judiciary Committee finds that during this era of free trade and hyper-immigration, incomes of the bottom 90% of Americans flat-lined, then dropped starting in 2000. By comparison, middle-class wages increased between 1945 and 1970.

Last year, Karen Zeigler and Steven Camarota of the Center for Immigration Studies found that, according to federal government data, “since 2000 all of the net gain in the number of working-age (16 to 65) people holding a job has gone to immigrants (legal and illegal).”

In the fourteen plus years since 2000, less than six million net jobs have been created in the United States, and all of them have gone to immigrants. On the other hand, according to the Federal Reserve, 28 million jobs were exported from the USA from 1990 to 2010, and several million more have been exported since 2010.

Salaries, wages and benefits would be going up if the United States had six million less working age immigrants. More significantly, however, US wages would be surging and our tepid economy would be booming if those trade agreements hadn’t been conceived. In both cases, trade agreements and immigration, income and wealth inequality in the USA would not be nearly so significant as it is now.

While so-called international trade agreements are the major cause of the income and wealth inequality of the last thirty-five years, with the 1 percent going from taking 8 percent of all income created in the USA in 1980 to 37 percent today, immigration (legal and illegal) is another, though admittedly lesser, but still significant, culprit in the financial war the super rich are waging against the middle class.

The Trans Pacific Partnership (TPP) is the largest income redistribution scam of all time. It is falsely being marketed as a free trade treaty. The Wall Street wing of the Democratic Party, led by President Obama and Wall Street Senator Ron Wyden, have merged with the Wall Street wing of the Republican Party. The TPP will provide incentives for US corporations to ship millions of US jobs overseas, and drive millions of Latin American immigrants illegally into the United States simultaneously, just like NAFTA did.

That’s why the TPP is another income redistribution scam for the 1 percent.

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Education-in-Finland-300x279

Finland has the highest performing K-12 students in the world, year after year.

“Finland’s schools weren’t always so successful. In the 1960s, they were middling at best. In 1971, a government commission concluded that, poor as the nation was in natural resources, it had to modernize its economy and could only do so by first improving its schools. To that end, the government agreed to reduce class size, boost teacher pay, and require that, by 1979, all teachers complete a rigorous master’s program.

They also banned all standardized testing, as they figured out this takes too much time and too much money out of learning; and now they only give standardized exams to statistical samples of students to diagnose and assess school progress.”

For every 45 minutes of study, Finish students get 15 minutes of free time recess.

In the United States, recess has been curtailed, and in some cases, eliminated.

The average class size in Finland is 19. Teachers are highly respected, highly paid, and highly unionized. So what can the United States learn from Finland?

Absolutely nothing.

That’s because education reform in the USA has nothing to do with education. It’s all about corporate profits, campaign contributions, government corruption, and ever rising profits for the publishing industries. Public K-12 students are merely victims in the profit production process through which these aims can be achieved.

This is why the US has the most tested students in the world. The more tests they complete, the more profits for the publishing corporations, such as Pearson Limited and McGraw-Hill.

This is why educational test standards are always raised in the United States. The higher the standards, the more students fail to pass. Then they must retake another profitable test over and over again until they move up a grade or pass it. The more students fail these tests, the more profitable they are for the testing industry.

Tests are changed every few years because it’s more profitable than retaining them. When school districts change tests, each district must purchase new testing materials from the publishers. In the United States, students are part of the production process for producing profits, and keeping share prices of the publishing giants rising constantly, quarter after quarter.

So don’t expect any real educational reform in the US anytime soon since real educational reform by definition means lower profits for the publishing corporations, which means less money with which to corrupt government. So don’t expect anything to change in education in the US anytime soon. The corruption of government at all levels is far too massive.

Just look at Wall Street Senator Ron Wyden who betrayed the voters of Oregon on behalf of Monsanto and Wall Street when he co-sponsored Fast Track legislation in the senate for the massive income redistribution scam called the Trans Pacific Partnership which Wyden falsely markets as a trade agreement. Wyden once wrote a constituent who wrote to him to complain about the Common “Very Profitable” Core Standards. Wyden wrote back, “Please rest assured that I will continue to do all I can on the federal level to ensure Oregon students receive the highest quality education….” Wyden’s letter shows he supports the Common Very Profitable Standards, which demonstrates how corrupt he is in all areas in which income is redistributed from the 99 to the 1 percent. See Wyden’s letter at, http://oregonsaveourschools.blogspot.com/2014/06/sen-ron-wyden-doesnt-get-it-on-common.html .

Wyden’s idea of students receiving “the highest quality education” is to increase the profits of the publishing corporations, which is another way of enriching the 1 percent at the expense of the 99 percent. In other words, less recess, more tests, and higher standards, which is another way of saying the senator wants all students to be on a college track, even if they had no desire to be on such a track.

Income redistribution from the 99 to the 1 percent; that’s precisely what Wyden does as much as anybody ever has in the US senate. That’s why he supports standardized testing of public school students, as well as Fast Track and the Trans Pacific Partnership. http://www.theatlantic.com/education/archive/2014/06/how-finland-keeps-kids-focused/373544/

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The magic of the market of goods and services sets neither the lowest wages nor the highest. The corruption of the government is what sets the highest and lowest wages, as well as everything in between. When the government is subsidizing record corporate profits via welfare to corporate employees year after year it’s a good sign government corruption is behind the low wages, whether it’s anti-union labor legislation, legislation that exports US jobs, or immigration policies that lower the wages of US workers whose jobs cannot be exported. This is called income redistribution from the 99 to the 1 percetn. The government has rigged the economic and political games against the 99 percent on behalf of the 0.01 percent.

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President Obama has vetoed Congress’s bill that tried to force approval of the Keystone XL pipeline! But the president still has to make his final decision on whether KXL is in our national interest. Let’s face it. It isn’t.

Read More Here From the Sierra Club

Estimates are that building the pipeline will bring a few hundred to a few thousand permanent jobs to the United States, but the potential environmental impact is massive. On the other hand, the battle over the pipeline is a battle between heavyweight billionaires.

In one corner are the Koch Brothers. Warren Buffett is in the other corner. The Koch Brothers have a sizable investment in the pipeline and the tar sands. Buffett owns the Burlington Northern Santa Fe railroad, which is the largest transporter of crude oil in the United States.

If Obama approves of the pipeline, Buffett loses and the Koch’s win. If Obama disapproves of the pipeline, the Koch Brothers lose and Buffett wins.

The Koch Brothers are big investors in the Republican Party. Buffett is a big investor in the Democratic Party. Obama will make his decision based on the priorities of the Democratic Party, just like a Republican president would make this decision based on the priorities of the Republican Party.

Expect Buffett to win.

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People-feel-like-the-system

Sen. Elizabeth Warren (D-Mass.) gave a blunt message to the big Wall Street banks that have threatened to withhold campaign donations to Senate Democrats as a means to get Democrats to convince Warren to shut up about the crimes of Wall Street.

“It will not work,” Warren said in a statement emailed to The Huffington Post.

Warren is not going to be bought off or frightened so easily. The CEO’s of the banks want to continue and extend their unpunished streak of criminal activities dating back more than two decades. Warren insists these banks should pay the price of their criminal activities which includes, fraud and money laundering, among many other crimes. And that’s how corrupt your government is. When you are rich, there is not a single criminal activity that will net you jail time nowadays.

According to the Huffington Post, “Citigroup, JPMorgan Chase, Goldman Sachs and Bank of America have discussed ways to soften Warren’s strong tone, Reuters reports, and representatives of some have raised the idea of cutting campaign donations to Democrats. Only Citigroup — a frequent target of Warren’s criticism — so far is publicly withholding money from the Democratic Senatorial Campaign Committee.”

Cutting donations, Warren said, won’t work against her. She said, “They want a showy way to tell Democrats across the country to be scared of speaking out, to be timid about standing up, and to stay away from fighting for what’s right,” Warren wrote. “… I’m not going to stop talking about the unprecedented grasp that Citigroup has on our government’s economic policymaking apparatus … And I’m not going to pretend the work of financial reform is done, when the so-called ‘too big to fail’ banks are even bigger now than they were in 2008.”

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