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Posts Tagged ‘Donald Trump’

U.S. Senate Republicans cannot figure out the math. As a political party of consequence, they are on the verge of historical irrelevance after the November elections. There are several red (Republican) states turning purple and or on their way to becoming blue (Democratic). Virginia is turning bluer by the moment, and so is North Carolina. Red states such as Texas and Arizona have a blue tinge and are getting bluer.

Now let’s count how many blue states are turning red. Oh, yes! That’s easy. The answer is zero.

According to Senate Majority Leader Mitch McConnell, who will likely be the next senate minority leader come November, fifteen to twenty  Republican senators will not vote yes to a 5th coronavirus aid package even as the unemployment rate soars during the worst economic disaster since the Great Depression.

This crisis was triggered by the coronavirus pandemic to be sure, but forty years of Republican and Democratic Party legislation redistributing trillions of dollars from the 99 to the 1 percent have caused the crisis to be deeper and getting deeper than it otherwise would be. The 1 percent were getting about 8 percent of all income produced in the USA in 1980 while nowadays that number hovers around 38+ percent not counting money the rich have offshore to avoid their fair share of taxes. Three people (Jeff Bezos, Bill Gates, and Warren Buffett) had more wealth than the 90 percent of Americans as of a few years ago. Now it is possible that three people have more wealth than the bottom 95 percent of the population since Buffett has gotten richer since then but has fallen to number eight this year.

The rich receive 2/3rds to 100 percent of their income and wealth from corporations. This is why the CARES ACT legislation was easily passed back in March by both Democrats and Republicans. The two parties voted to give the rich $4.75 trillion in a $2.2 trillion package while giving the rest of us crumbs. Click here for that story. The two parties were voting to protect the financial engine of the rich.

One of the sticking points in negotiations between Democrats and Republicans this week is the $600 a week the unemployed were receiving and that officially ended on July 31th. Republicans argue that this paid more money to some unemployed people than they were actually earning on their jobs. Trump’s brain-dead, incompetent and hypocritical Treasury Secretary Steven Mnuchin said this morning during an Interview with ABC’s “This Week” than nobody should be given more money than they earn but the Republicans did not mind giving away $4.75 trillion to the 300,000 richest of Americans for sitting on their asses and not doing anything.

Senate Republicans and House Democrats are negotiating this weekend to prevent the economic disaster from spreading.

McConnell and the Republicans could only offer a $1 trillion relief package in the current negotiations that will fall far short of saving the nation from this disaster. U.S. House Democrats, under Majority leader Nancy Pelosi, proposed and passed through the House the HEROES Act, a $3.4 trillion stimulus package two months ago, which is also likely to fall short of our nation’s needs.

The failure of the Republicans to take this economic crisis seriously means more states are going to continue to turn blue for generations to come, making the Republican Party a permanent super minority party for decades to come on its way to becoming the political party of irrelevance.

 

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U.S. Republican Senate Majority Leader Mitch McConnell must be as stupid as U.S. Senator’s Rand Paul and Ted Cruz. Paul and Cruz oppose the U.S. House of Representatives Heroes bill sponsored by the Democratic Party that will continue to provide $600 a week to the unemployed until January, as well as tens of billions of dollars to cities and states that are experiencing reduced tax dollars and will likely need to lay off tens of thousands, if not hundreds of thousands or more, of public employees without further Federal aid.

Many Republican senators are opposed to the HEROES Act because it will not reward their billionaire owners to the same degree the CARES Act did, and which gave the superrich and their corporations $4.75 trillion in a $2.2 trillion bill. (Click here for that story.)

McConnell, appearing to be a dimwit, does not understand the issue that will decide the election in November. “It’s the economy stupid,” James Carville used to say. Carville was Bill Clinton’s presidential campaign manager in 1992. They won the election in 1992.

“We swears to serve the master of the precious.”

The U.S. economy is tanking big time. The only thing stopping the economy from further falling and moving into a Great Depression is the CARES Act, one of whose most important provisions for the 99 percent is about to expire. That provision is the $600 a week extra in unemployment benefits.

McConnell does not understand the economy needs people to spend money to keep it afloat. He opposes the $600 extra a week because some people are receiving more money than they were earning at their jobs, giving them an incentive to not look for work. Who cares? That $600 dollars is helping to keep the economy afloat, and there are not a whole bunch of available jobs out there right now anyway.

When cities, counties and states begin to lay off employees by the tens of thousands, along with those folks on unemployment who will stop receiving that $600 at the end of this month, the economy will likely move into a Great Depression, if we have not already done so.

The result will be a Democratic Party wave in November. Then it is likely the Republican Party will begin its fade into the history books as more and younger voters have become Bernie style Democratic Socialists, which is to say New Deal Democrats. McConnell and the rest of the Republican senators are about to send their political party into historical oblivion after voting to reward their billionaire backers $4.75 trillion while providing the vast majority of U.S. citizens crumbs with the CARES Act last March.

Meanwhile, U.S. House Majority Leader Nancy Pelosi decided to placate her Party’s base by sponsoring the Heroes Act, but not that saving the base and the economy from ruin was something she actually wanted to do. The Heroes Act is the fourth stimulus package since March and her attempts to save the billionaires who control her Party and neglect the financial needs of the 99 percent is most obvious by this fact alone. Something must have clicked in her brain to come up with the HEROES Act.

She likely came to understand saving the economy and the billionaires from ruin means having to save the rest of us. McConnell, Rand Paul and “tiny hands” Ted Cruz have not figured out this basic economic issue yet even as Texas, the state Cruz represents, is rapidly turning blue along with Virginia, North Carolina, and several other states the Republican Party reliably once controlled.

When these states turn blue, this will eliminate the Republican Party as a factor in national politics. This has already occurred on several state levels. The Republican Party used to control California. Now it is the super minority party in both of California’s legislative houses. McConnell, Cruz and Paul are hastening the Party’s decline by their economic stupidity. It’s the economy stupid!

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In the 1920s, Argentina was a nation with one of the great middle classes in the world, equal with most Europe nations. Then corruption sunk in and now Argentina is a nation filled with desperate people. We may be at such a tipping point in the United States.

The rich learned a valuable lesson from the Great Depression. Never let the stock market drop in value for too long. Otherwise, their economic and political clout will falter and open up the door for allowing democracy for the vast majority of citizens. Political corruption is so massive in the United States that members of both major political parties enacted the CARES Act in March 28, 2020. This was a $2.2 trillion economic rescue package that was actually a rescue package of over $6 trillion, most of which is making the top 0.01 percent of the U.S. population richer, while keeping political and judicial corruption at elevated levels.

The rich are receiving $4.95 trillion from the $2.2 trillion stimulus bill. You read that right. The $2.2 trillion includes more than $450 billion for large corporations, allegedly in loans. The bill includes a proviso that the Federal Reserve can print up to ten times that amount and lend that $4.5 trillion with a nod and a wink to large corporations. The combined profits of all US corporations in 2018 and 2019 were slightly over $4 trillion before taxes. The rich and their corporations, in other words, are getting more than two years’ worth of profits from the stimulus bill. This money will mainly go to the the 100 to 150 largest corporations, which will then funnel the money to the billionaires and multi-millionaires.

The Fed has been buying corporate bonds by the truckload every day. This money has been used in a large degree to providing dividend payments and keeping share prices up, which enriches the billionaires.

The primary purpose of this program has been to stifle democracy for the vast majority of citizens. If the stock markets had been allowed to continue falling in March 2000, the political, judicial and economic power of the rich would have evaporated and opened the door for democracy for the rest of us.

With the coming of the Great Depression and the New Deal programs of President Franklin Delano Roosevelt (FDR), Kim Phillips-Fein writes in her book Invisible Hands: The Businessmen’s Crusade Against the New Deal, “Many of these programs were measures that American’s business class had resisted for a generation, and the government enacted them at a moment when the power and prestige of business was at its nadir. The employer’s paradise had been lost.” The rich wanted it back in a big way. So they organized over a few generations and brought us to the economic disaster that has been unleashed upon us now.

The 1 percent derive 2/3rds to 100 percent of their income and wealth from owning shares of corporations. During the Depression, they had lost their power and prestige because corporate profits and the stock market had dropped 90+ percent from 1929 to 1933. This opened the door for FDR’s innovative socialist programs, such as Social Security, unemployment insurance, the minimum wage, controlling Wall Street’s depravity with the Securities and Exchange Commission, raising tax rates on the rich so they had less money with which to corrupt all three branches of the federal government and which also functioned to set maximum take-home wages, etc…. The rich appear to have learned a lesson the rest of us have plainly not learned.

The stock market must not be allowed to fall in value for the billionaires to continue their dictatorship of the United States. Both major political parties, the Federal Reserve, the United States Supreme Court, they’re all corrupted to the bone and the only thing allowing the 1 percent to continue corrupting government at all levels is the stock market, the fortunes of which have been disconnected from the real economy for at least a dozen years, and probably more. So long at the rich can use the Fed and the federal government to keep the value of the stock market disconnected from real world economic fundamentals, the door is open to enter that Argentine moment for the vast majority of United States citizens. We will become a nation of desperate people, if we have not already become so.

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I wonder how bad this economic downturn is going to be. This recession just began in February 2020. The economy is opening up for the first time since the coronavirus struck the United States and people are saying the economy is going to pop right out of its slump. I doubt that.

This week, I saw all kinds of people standing in the soup line three blocks long, which was three blocks longer than two weeks ago. Facebook just laid off my friend across the street a couple weeks ago. Just a week ago, a long-time friend was furloughed from her job for the summer. My domestic partner has seen her hours reduced at work. Middle class families are rummaging through my garbage and recycle bins. The rich are getting richer. Maybe that was the big boys plan.

No, I just do not see an economic recovery around the corner. I see a deep recession. One of my local bicycle stores is closed, along with two bakeries, the coffee shop, the chocolate shop, my chiropractor and others. Four blocks away two Vietnamese restaurants have closed permanently along with a pizza parlor. Seven blocks away the Roseway Theater is shuttered. Next to it the wedding store is closed forever, and next door to that the appliance repair store is gone. All have closed permanently since March 2020. All have been open since at least the 1980s. The Roseway Theater had been open since 1924.

The coronavirus pandemic ignited this recession, but its depth and misery for Americans have been caused by 40 years of relentless class warfare by the rich. The opening shots of the war began in 1971 when a little known Republican tobacco attorney named Lewis Powell wrote what is known as the Powell manifesto urging the rich to combine their resources, establish a variety of organizations to turn back the clock to the era of the robber barons, take over the courts, and generally fight back against the Constitutional and democratic rights of the vast majority of people. The rich took his advice. They organized. Out popped the Heritage Foundation, the Cato Institute, the American Legislative Exchange Council, the Federalist Society, and a lot more. Two months after he wrote his manifesto, Powell was sitting on the Supreme Court bench serving the rich as a legalized guerilla fighter in their war against the rest of us.

The Roseway Theater is closed and that financially helps streaming corporations like Amazon and Apple and their rich shareholders become richer. The local restaurants are gone but that financially helps Walmart, Domino’s Pizza and other major corporations and billionaire owned private equity companies by eliminating the local competition, and their rich shareholders are prospering at the expense of local business people, the real entrepreneurs, people who are our neighbors. The local coffee shops are gone, and that helps the affluent shareholders of Starbucks and other major coffee corporations get richer.

A recent poll shows 62 percent of Americans think the United States is in the toilet. Political corruption on a massive scale has done that, with the billionaires in control of both major political parties, as well as the Supreme Court. (Click here for that story)

The CARES Act of March 2020 was supposed to help the economy with loans to small businesses, but apparently, the authorized money is not enough and perhaps deliberately so. Thank you Nancy Pelosi, Mitch McConnell and Donald Trump. The CARES Act authorized $4.75 trillion to save the 1 percent who derive the vast majority of their income and wealth from major corporations.

Bloomberg reports the Federal Reserve is printing and giving billions of dollars to major corporations, such as Walmart, AT&T, and United Health. Technically, those are loans but will likely be forgiven. Meanwhile, those billions find their way into the hands of the rich via higher dividends and capital gains. Click here for that story.

If you count capital gains, the rich have gone from stealing 7 percent of all income produced in the United States in 1971 when Lewis Powell wrote the Powell Manifesto to at least 37 percent by 2016. It is likely closer to 40 percent in 2020. You can thank the corporate wing of the Supreme Court for much of that gain.

Don’t you think it’s time to forget about our petty differences on the social issues the rich have used their news organizations to get us to focus on, and unite to save ourselves against the depredations of the rich? If not for yourselves, why don’t you do it for future generations?

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Divide and conquer; nobody has done it better than the billionaires who have controlled the United States via their two major political parties and their Supreme Court for the last forty years. But first a few comments.

I wonder if the downturn of the stock market on June 9-11, 2020 was just a correction, although I am suspicious it marks an increase in market volatility on its way toward the intersection where the real downtrodden economy meets the robust Wall Street market. In which case, we could be looking at a rapid or slow and long-term decline in share prices.

I do not think a lot of people understand that we are at the beginning of a recession and not at the end. I suspect that many people were buying the stocks of corporations for the last two weeks that are going bankrupt (think Hertz) because of desperation of their financial situations since 40 percent of US adults do not have $400 to cover an emergency, not in savings, not in credit cards or other assets, if I remember correctly.

I have read and listened to many experts on the rise of the stock market since March while the economy has tanked, but I have not heard how income and wealth inequality has driven the stock markets to record highs by redistributing trillions of dollars from the 99 to the 1 percent over the last forty years, nor do I hear how financially desperate many people are; not even those who are buying bankrupt Hertz and J.C. Penny shares. Those subjects are not allowed by the billionaires who own all the major news sources.

I have a good neighbor and he just got laid off from his job and fears losing his house. I see desperation written all over his face and in the tone of his voice when I speak with him. I see the middle class families in nice cars and wearing nice clothes rummaging through the recycle bins the night before the trucks pick that stuff up. Most, but not all of these folks, did not begin their rummaging pilgrimages until March. I watched videos a few days ago of the first food lines for the middle class since the Great Depression of 1929-40, a line of 600+ cars deep, people in their new Toyota Lexus’s, and other high end newer cars, who needed to gather free food in order to feed themselves. 20 to 40 million people are unemployed and all the congress would do was save the billionaires. See The CARES Act; the Rich get $4.75 Trillion and We Get the Crumbs.

We are at the beginning of a recession that will be severe because 40 years of the greed of sociopathic rich folks who control both major political parties and the Supreme Court, and who can never get enough money, and far more than they could ever spend, and who derive almost, and in many cases, all, of their income and wealth from the ownership of corporate shares, either through capital gains, dividends or corporate bonds.

Then you have the gullible grassroots on the political right who have been led to think the communists are controlling things; and then you have the gullible on the left who think the Democratic Party leaders actually give a rat’s ass about them; for the grassroots of both the left and right, the reality is unhidden and staring straight into their eyes.

All you need to do is look at Nancy Pelosi’s Heroes Act, the fifth stimulus since coronavirus shut down the U.S.; this legislation extends the government’s extra $600 unemployment insurance per week through the end of the year, and provides other income to the 99 percent too, although much of the money in the proposed legislation will still go to the rich. Pelosi waited to push the Heroes Act through the Democratic controlled House after both Republican Senate Majority Leader Mitch McConnell and President Trump said they were not interested in a fifth stimulus. Pelosi knew the Heroes Act was grand theatre for the blind faithful even though she could have easily negotiated more money for the 99 percent with McConnell and Trump during the first, second, and third bailouts, when McConnell and Trump were desperate to save the billionaires who pull their strings, which happen to be the same strings they use to pull Nancy Pelosi with. She did not negotiate for us little folks. Did she?

The billionaires pulled the strings of Pelosi, McConnell and Trump to come up with the notorious CARES Act, which bailed out the rich and their corporations to the tune of $4.75 trillion while throwing crumbs at the masses, which made for good theatrical effect. The billionaire’s corporate news media did their duty and only reported on the crumbs and how great they were.

As for the grassroots on the right, the CARES ACT alone should tell them how insanely wrong they are to assume Democratic Party politicians are controlled by communists, and the CARES Act should tell them that Republican politicians would not give a snail’s fart to help them out during the worst economic crisis since the Great Depression. And you would think the blind followers of the Democrats could figure out that the Democratic Party politicians have not cared about them since Jimmy Carter was president.

The voters of both sides, you would think, would by now figure out that both Democratic and Republican Party politicians threw them overboard forty years ago. It only takes one thing: using your brains to put two and two together.

Billionaires own this nation, both political parties, they have at least five United States Supreme Court judges in their back pockets, along with a lot of other judges; they own the media and only tell you what they want you to believe, and most of you believe the propaganda and the lies used to turn the grassroots of the right and the left against each other.

No, this economic crisis will not be over soon. This is going to be a long economic nightmare. The rich have gotten richer while the rest of us have been drained financially dryer during the last few months alone.

We have to figure out how, as a people and as a nation, we want to come out of this crisis. Lurching forward into another economic wasteland like Argentina is for the vast majority of its people; or with a strong political change that reins in the obvious corruption at all levels of the U.S. government, and ensuring a government of, by and for the people, rather than just continuing to impoverish ourselves under the dictatorship of the billionaires.

We have a collective choice to make and the time has come to cast aside our petty differences and organize. The 1 percent were taking at least 37 percent of the income produced in this nation in 2019, up from 8 percent in 1980. They are probably raking in over 40 percent so far this year. Jeff Bezos, Warren Buffett and Bill Gates owned more wealth than the bottom 50 percent of Americans, and that was before the crisis began. They are richer now.

If our situation continues on this path, the rich will steal even more income and wealth than is currently the case. Then we will be a nation like Argentina, once boasting a prosperous middle class on a level with the best European nations, and now with a population of mostly desperate people.

In the USA, the dictatorship of the billionaires will continue and become stronger unless the grassroots of both sides come together and realize they have economic issues that bind them. Until that day, the dictatorship of the billionaires will continue to impoverish us all even more so than today.

The billionaires will continue to use their corporate media to divide us and make permanent their conquest and subversion of our democracy, our Constitution, and our governments at all levels, local, state and federal.

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The rich receive most of their income, from 2/3rds to 100 percent, via corporations, either through capital gains by the selling of shares or with dividends distributed to shareholders. So it should come as no surprise that the billionaires who control the Republican Party got what they wanted in the Federal stimulus bill while the billionaires who control the Democratic Party got theirs, as well. They got more than the bill itself.

The rich will receive $4.95 trillion from the $2.2 trillion stimulus bill. You read that right. The $2.2 trillion includes more than $450 billion for large corporations, allegedly in loans. The bill includes a proviso that the Federal Reserve can print up to ten times that amount and lend that $4.5 trillion with a nod and a wink to large corporations.

The combined profits of all US corporations in 2018 and 2019 were slightly over $4 trillion before taxes. The rich and their corporations, in other words, are getting more than two years’ worth of profits from the stimulus bill. This money will mainly go to the largest corporations, which means the money will go to a small number of corporations, pretty much the 100 to 150 largest. This means a massive stock market bubble is on the horizon fueled by the Fed, lies, political corruption, smoke and mirrors.

In effect, both the Democratic and the Republican members of the US congress decided to save their rich owners by giving them trillions of dollars, most of which will go to the top 1 percent. Then they throw crumbs to the rest of us and their corporate media dutifully failed to report this. Huffington Post and The American Prospect and a few others did report it.

Now, yes, some of you will say, but these are loans. The corporations need to pay the loans back. Wrong! In the future, Fed officials will tell you the loans have been repaid, or the loans were never made, but those will be lies, just like when Fed officials told us the $26 trillions it loaned out to twelve banks during the Great Recession was all paid back by 2011.

That $26 trillion bailout was top secret. Nobody was going to be told about it except the recipients, banks such as Goldman Sachs and JP Morgan/Chase. Then United States House members Ron Paul and Alan Grayson pushed through a bill authorizing the first and only audit of the Fed. The non-partisan General Accounting Office uncovered the $26 trillion bailout. Otherwise, we were never going to be told of it.

The entire U.S. banking industry in the four years from 2008 through 2011 earned $158 billion pre-tax dollars. The $158 billion represents less than 7/10ths of 1 percent of $26 trillion. Obviously, the banks could not have returned the money. It was mathematically impossible. Then Fed Chairman Ben Bernanke after the audit proceeded to lie when he claimed the money had been paid back, and this was mostly ignored by the corporate media.

So you know what’s going to happen. Major corporations will receive close to $5 trillion that they will never need to return, and will never pay taxes on since Fed officials will lie and either say, “They paid it back,” or “They never borrowed the money.” Don’t expect another audit for 100 years. (There has only been one audit of the Fed in its 100+ years of existence, and that is how the $26 trillion bailout was discovered. Click this link for that story.)

0.01 percent of the U.S. population will receive nearly $5 trillion. That money will be used for dividends, CEO compensation, share buybacks in the future (since they are limited with this bill),  and just about anything the billionaires want. That’s why they pay the big bucks in the form of campaign contributions to politicians and spend billions of dollars on lobbyists.

In the meantime, a large portion of us 314,685,000 citizens will share $1.75 trillion (about $5500 each on average) to help keep the economy afloat while the roughly 300,000 richest of parasites share $5 trillion, which comes out to a little over $16.6 million each.

That should tell you how corrupt our democracy and both major political parties have become. You should also be aware that with the $26 trillion bank bailout the Fed went from being a central bank to a money-laundering machine for the banks and their rich shareholders. With the new bailout, the Fed has been given permission by the Federal government via both major political parties to be a money launderer for the rich and the rest of their money-making corporations. In other words, the Fed has been a criminal enterprise for the rich by violating U.S. money-laundering laws since 2008.

For more on this from the American Prospect, click the following link.

For more on this from the Huffington Post, click Democrats Are Handing Donald Trump The Keys To The Country: The Senate coronavirus bill is shocking.

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You can see the effects of the Coronavirus in the nearly empty restaurants, coffee shops, health clubs, etc…. throughout the United States. The U.S. should have gone into recession sometime in 2016 to 2018 after corporate profits peaked during the third quarter of 2014 and annually during that year. The U.S. always follows a decline in total corporate profits with a recession unless corporate earnings pick up. However, something kept this business expansion going far beyond what it historically should have since corporate earnings have been down for almost six years.

The Fed’s $26 trillion bailout of billionaires and multi-millionaires during the last economic crisis, as well as record corporate debt, helped to prolong the record economic expansion and the stock market bubble far beyond what economic fundamentals would normally have allowed. Record corporate share buybacks have helped the bubble and expansion along, although share buybacks had long been considered market manipulation.

Apple, for example, purchased $320 billion of its own shares over the last seven years pushing its stock price after a seven-way split in 2014 from $92 a share to over $320 until January 2020. The shares have lost $50 so far and are likely to lose a lot more. $320 billion are heading down the drain.

President Donald Trump’s tax cuts which largely went to the rich and their corporations should be given plenty of credit for extending this expansion and stock market bubble. Most corporations used the tax savings for share buybacks. All that did was inflate perhaps the largest US stock market bubble in history. As the number of people filing for unemployment insurance rises, the bubble will have further to fall, and it is likely the business contraction will be worse because of it, and the president should be given plenty of credit for that too.

Income and wealth inequality has continued to grow over the last forty years to historic proportions. Consumer debt is at record levels, as is corporate debt. Gross domestic product growth has been much lower over the last decade than under President’s Carter, Reagan, Bush 41, and Clinton. The same is true with job growth. Wages have been stagnant for forty years. Home prices have fallen 8 percent since and including the fourth quarter of 2017. Rich investors are pouring out of the mortgage bond markets.

All of this suggests a recession of historic magnitude, among the worst ever. I am not the only one who thinks this way. The Fed over the last ten days has lowered interest rates, and will likely lower them even further this week. Normally that does not happen until after a recession has officially begun. In addition, the president has declared a national emergency and the Democrats and Republicans have a relief package all set for the Senate to vote on this coming week.

None of the share buybacks, federal stimulus packages, and interest rate decreases will likely defeat the impact of the Coronavirus unless they come with a vaccine. Many months from now expect the folks at the National Bureau of Economic Research to get together and determine the recession began in March 2020, maybe April.

President Trump will not be at fault, though his tax cuts for the rich and their corporations will have played a negative role in the coming debacle.

There is a reason why income and wealth inequality has gotten so bad in the United States that three men own more wealth than the bottom 50 percent of the population.

You can blame the Democrats and the Republicans and the billionaires who pull their strings. For tax cuts for the rich blame Republicans; for exporting millions of jobs and redistributing trillions of dollars of income from the 99 to the 1 percent blame the Democrats, especially the Clinton’s and Joe Biden. For deregulation of Wall Street blame Ronald Reagan and Bill Clinton and Joe Biden. The list goes on but the leaders of the two parties work together behind closed doors to ensure all this stuff occurs.  This is precisely why the two parties have acted so quickly together to fight the Coronavirus and the ensuing economic debacle they have created.

**An hour after I wrote and posted this story the United States Federal Reserve Bank dropped interest rates a full percent down to virtually zero and announced it would purchase $700 billion of U.S. Treasury Notes and Mortgage-Backed Bonds. The recession has not even begun and everybody in power is acting as if the next Great Depression began a year ago. The folks in power know a disaster coming when they see it. Hell, they created it by redistributing trillions of dollars from the 99 to the 1 percent during the last forty+ years. Now the chickens may be coming home to roost.

 

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The red arrow below shows the Exact Moment When President Donald Trump Saved the United States Economy from Democratic President Barack Obama

Donald Trump claims his economy has no relationship to the economy President Obama saved from the incompetent RepubliCON President George W. Bush. That, of course, is a lie. Both presidents reigned during the longest business expansion in United States history. So who had the better economic statistics between the two presidents? Obama did.

During Trump’s first 36 months in office, the US economy has gained 6.6 million jobs. But during a comparable 36-month period at the end of Obama’s tenure, employers added 8.1 million jobs or 23% more than what has been added since Trump took office. The average monthly gain so far under Trump is 182,000 jobs. During the last 36 months under Obama, employers were adding an average of 224,000 jobs a month.

I should also like to point out that at this point in his first and only term, President Jimmy Carter had enjoyed a gain of 10.1 million jobs. Employers added 8.5 million jobs during the first 36 months of Bill Clinton’s term and 7.8 million jobs during the first 36 months of Lyndon Johnson’s tenure, even though the labor force at that time was less than half the size of what it is today.

Total yearly corporate profits were also higher under Obama. Corporate profits peaked during the third quarter of 2014. That year also witnessed the greatest amount of total corporate profits in U.S. history. Corporate profits were higher in every year of Obama’s second term than in any year since Donald Trump became president.

In the three years under President Trump, Gross Domestic Product (GNP) has grown an average of 2.54 percent per year, while under the last three years of President Obama GNP rose 2.8 percent per year. Obviously, the economy grew faster under Obama.

President Trump pushed for and succeeded in getting tax cuts passed through congress almost exclusively for the rich and their corporations. The bill was signed into law by President Trump on December 22, 2017. Most of the changes introduced by the bill went into effect on January 1, 2018.

Since the tax cuts went into effect, GNP has grown 2.4 percent per year, which is lower than during Trump’s first year, and lower than the last three years of Obama’s presidency.  As predicted in this blog, the tax cuts have had a negative impact on the growth of GNP, but they have pushed the United States economy into a far more serious stock market bubble that will have dire repercussions and likely send the United States into the deepest recession since the Great Depression. The official stats show that when Trump says the economy is better because of the tax cuts, he is lying, the numbers do not lie. He will deserve some significant blame for the severity of the coming recession due to his tax cuts.

Under Trump, stocks were up 14 percent per year as of February 14, 2020. That is to be expected given his ruinous tax cuts for the rich, which have pushed the market up higher than it otherwise would have gone. Meanwhile, under Obama, stocks flew higher by 13.8 percent on a yearly basis, and he managed this without the tax cut pushed by Trump.

Overall, it appears with Obama we had an economy on the rise, while with Trump we have an economy on the decline. That is not necessarily the fault of Trump. The business cycle must end, and it just might be on his watch.

Average median home prices have declined since the last quarter of 2017, the yield curve has inverted, U.S. vehicle sales declined last year, the number of individuals and households applying for food stamps has risen since last May, sales of vehicles in China plummeted by 8 percent last year suggesting China may be in recession already and before the coronavirus, total business sales in the United States have declined over the last year, U.S. manufacturing has been tanking since last year, durable goods employment is down, corporate debt is at an all-time high as is corporate share buybacks, and all are signs of a possible looming world recession.

Naturally, whoever is president next January will get the blame. If it is Trump, he will simply be in the wrong place at the wrong time, just like Trump’s economy is riding the tailwinds of Obama’s economic miracle and saw him in the right place at the right time.

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One of the big lies about Bernie Sanders is that he cannot win against President Trump in the general election and that the Democrats need to choose a so-called moderate candidate in order to defeat the president in the general election. The DNC and the billionaire controlled corporate news media know this is a lie. Anybody can look at the polls and discover this claim is false.

By moderate candidate, the DNC and the corporate news media mean a Wall Street/billionaire controlled Democratic Party candidate. Quite naturally, a self-made capitalist millionaire like Bernie is labeled by the corporate press as a hardline Stalinist Communist who wants to burn all churches, put every citizen on farm communes, and burn all billionaires at the stake, rather than as the person who wants to restore and reinvigorate the middle class with such policies as Medicare for all, which every advanced capitalist nation has except for the USA.

So how do the preferred Wall Street candidates stack up against Trump in the latest poll?

In the latest Quinnipiac poll, released last week, Joe Biden defeats Trump by 7 percent, Pete Buttigieg wins by 4, Amy Klobuchar is up by 6, and the heavily advertised former Republicon mayor of New York City, Michael Bloomberg, beats the president by 9 percent.

Bernie defeats the president by 8 percent. Sanders beats Trump by a greater margin than all the rest except for Bloomberg. In other words, a billionaire/Wall Street controlled candidate is less likely to defeat the president than Bernie. By the way, the candidate who has positioned herself as being between Bernie and the Wall Street Democrats on public policy, Elizabeth Warren, beats Trump by 4 percent.

I can read the polls as easily as anybody else. Don’t let the DNC and the billionaire controlled corporate propaganda machine (so-called news media) tell you what to think. You can check out most of the latest polls at realclearpolitics.com. Just click on the polls link in the upper left-hand corner.

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Donald Trump just secured the votes of millions of American citizens by renegotiating NAFTA. However, it has yet to pass congress and may never, just because it is a big-time body blow to the desires of Wall Street and the billionaires in their efforts to redistribute more income from working Americans to the rich by exporting jobs, thereby creating greater income and wealth inequality using U.S. taxpayer dollars in the process.

The millions of U.S. jobs currently occupied by Mexico’s $3 dollar per hour labor will almost certainly see some jobs returning to the United States, or more than likely, they may be exported from Mexico to Pakistan, China or Vietnam.

Regardless, Richard Trumpka, president of the AFL-CIO wrote of the renegotiated treaty, “The United States Mexico Canada trade agreement is a huge win for working people. After a quarter-century of suffering under the failed North American Free Trade Agreement (NAFTA) and 18 months of hard-fought negotiations, the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) is now proud to endorse a better deal for working people: the United States Mexico Canada Agreement (USCMA)…The USMCA isn’t perfect — no deal ever is. But it’s a far cry from the original NAFTA, and that is a huge win for working people in North America. While it won’t bring back every job lost under NAFTA, it will help stop the bleeding and add important new protections for workers across the continent.”

A few things need to be said about the agreement. It will slow the pace of income and wealth inequality that has occurred over the last forty years, but only a little bit. Nowadays, three men own more wealth than the bottom half of the U.S. population and the 1 percent now steal somewhere between 22 to 38 percent of all the income produced each year in the United States, up from 8 percent in 1980; much of this can be attributed to international trade agreements negotiated to export U.S. jobs by the tens of millions.

The difference between the old higher wages and the new third world wages goes directly into the bank accounts of the rich via higher corporate profits, dividends and share prices.

The USCMA passed through the Democratic Party-controlled U.S. House of Representatives last week. However, it now has to pass through the RepubliCon controlled U.S. Senate early in 2020. The RepubliCons and their Wall Street and other corporate masters are dead set against it.

U.S. RepubliCon Senator Pat Toomey, who represents Wall Street and some billionaires, wrote in the Wall Street Journal that he will vote against the trade agreement. Here are a few of his objections;

1. Car manufacturers will need to… “pay wages far above prevailing Mexican rates.” In other words, Mexican auto workers do not deserve to earn more than $3 an hour.

2. “First are the laws to facilitate unionization of Mexican factory workers.” Apparently, Toomey thinks that organized billionaires (shareholders in corporations) is something that has God’s blessing, but organized labor is evil. This is class warfare at its worse.

3. “Another flaw is the drastic reduction of the Investor-State Dispute Settlement mechanism. U.S. investors don’t always get a fair adjudication of their business disputes in foreign courts, even in Canada and Mexico.”

These were secret tribunals that were highly unconstitutional. The U.S. Constitution allows the rules of treaties to override U.S. laws. However, a treaty requires 67 percent of the U.S. Senate to approve of treaties. That was not the case for the North American Free Trade Agreement (NAFTA), which was, and notice this, called an “agreement.”

NAFTA only required a majority vote since it was an “agreement.” Consequently, the always secretly held tribunals of the Investor-State clause of NAFTA has always been unconstitutional. Representatives of local government, citizen groups, labor groups, and others, were never allowed into the tribunals. Only lawyers for the governments of Canada, the U.S., and Mexico, as well as corporate lawyers, were allowed in. Local and state laws were overturned by this unconstitutional tribunal, but Senator Toomey thinks it unfair the power of the tribunals is no more.

Expect Wall Street and the entire RepubliCon party to reject this agreement in the United States Senate, but expect Donald Trump to benefit politically nonetheless.

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