Posts Tagged ‘Income’

The Iranian nuclear deal has done something quite wonderful. It has lowered oil prices by ending the US led embargo of Iran’s products, including oil. Iranian oil is now flooding the international markets, driving the price of oil and gasoline down. Some people in the USA are not happy with this deal, notably Republicans. One has to wonder, however, if that’s because of that oil flooding the world’s markets, or if they’re really worried the Iranians will violate the agreement, launch a suicidal nuclear assault on the United States, which would be a calamity for the Iranians since there would be a dust heap afterwards where the nation of Iran once stood, especially considering the success these same people claim for the US missile defense shield.

One has to wonder if the deal to keep Iran embargoed was intentionally to keep its oil off the world market, which drove oil and gasoline prices higher than they would otherwise have been. In other words, the effect of the Iranian embargo was to redistribute money from the 99 percent to investors and executives of Big Oil. The lack of a nuclear deal kept that embargo in place. Was this a strange coincidence? Or a master plan?

Big Oil is a big supporter of the Republican Party. Did the president strike a deal with the Iranians with an eye toward driving the price of oil and gasoline down, as well as Big Oil’s profit margins. The president’s deal may lower campaign contributions to the Republicans from the masters of this sector of the economy.

The Iranians have never been a threat to the United States, and they won’t be even if they violate any agreement to not produce nuclear weapons. The truth is that the Iranians entered the fray against ISIS at the behest of the Americans many months ago. They also offered to join with the US to eliminate Al Queda in Afghanistan after 9-11. However, President George W. Bush found it convenient to paint the Iranians as a dangerous threat to the US in order to jack up profitable military spending. That administration also most likely did not want Iranian oil flooding the world markets.

Perhaps President Obama had this in mind when he sealed the deal, and perhaps lower gasoline and oil prices is just a happy coincidence.


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There’s a reason the United States is one of the most politically corrupt nations in the world. Stephan Colbert hits the head on the nail with his succinct analysis that wealth inequality will continue to grow in the United States so long as money in politics are at record levels.

The corruption, especially of the federal government, which is massive compared to the years from 1933 to 1980, began when President Ronald Reagan signed into law tax cuts for the rich. Supposedly, this trickle down economics, which had already been a complete failure during the first thirty years of the 1900s, was going to create jobs. Instead, the rich used their new found financial muscle to destroy jobs by pushing legislators for international income redistribution agreements, commonly marketed by those who benefited from these income redistribution scams as “free trade agreements.”

The result has been a progressively weaker US economy as tens of millions of jobs have been shipped overseas, thanks to these agreements. When a job is shipped overseas, the difference between the old, higher, US wages and the new, super low third world wages goes straight into the already fat wallets of the super rich via higher corporate earnings, rising dividends, and soaring share prices. The job losers get a few unemployment checks, if they’re lucky, and maybe a lower paying job, if they’re even luckier.

The proceeds of these treaties find their way into the campaign contributions and pockets of US politicians. And the cycle plays over and over again. More and more income redistributed via legislation from the 99 to the 1 percent, so that nowadays the rich and their legislative henchmen steal 37 percent of all income in the USA, compared to 8 percent before the Reagan tax cuts.

There are several other ways legislators help the super rich to steal from everybody else, such as passing legislation to privatize government services, force school districts to add more and more testing, and numerous other things.

Colbert is completely correct, except for one thing. Nothing will change unless a massive grassroots political movements overwhelms the money in politics, and then the money is taken out of politics. Go Bernie Sanders!


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The governors of the Federal Reserve Bank voted to keep interest rates at historic lows in their September 17, 2015 meeting. The bank has not raised interest rates in nearly a decade. Lucky us, or maybe unlucky us.

Chairwoman Janet Yellen cited a number of reasons why the bank decided to keep rates low. She mentioned, for example, the weakness of manufacturing in China.

However, she didn’t mention that nearly 50 percent of US manufacturing is done in China, which, quite naturally, indicates a slowing down of US outsourced manufacturing, which certainly impacts the US. Like a good politician, she also did not mention that the evil US trade deficit is fueled by US manufacturers exporting jobs overseas, like Microsoft, Apple, Nike and Adidas. These and hundreds of other companies manufacture their products in China and elsewhere, and export their stuff to the US.


This is precisely and the only reason why the US has a trade deficit. The US trade deficit, in other words, is with US job exporters, not with China, Pakistan, Mexico or elsewhere.

Anyway, keeping interest rates low was a good thing for the US economy. Typically, the Fed waits to raise interest rates until just after the US economy begins to slide into recession.

That process begins when US corporations see a slowdown in their earnings growth, in the aggregate. These businesses begin to lay people off, which jacks up their profits. Perhaps the folks running the Fed take this as some sort of sacred signal that everything is all right. However, laying enough people off throughout the economy ignites recessions in the process of jacking up those profits, because the demand for goods and services slackens, jobs and profits decline, and a recession begins even while corporate earnings expand.

This is why I mentioned the slowdown of Chinese manufacturing, which in all likelihood, represents something of a slowdown of US manufacturing abroad. Profit growth has been shaky the last two years, though still growing in fits and spurts with sudden quarterly declines followed by rapid growth.

In other words, the US and world economies are still quite weak, especially since the rich have stolen 95 percent of all income growth in the US since 2009, an historic high by a wide margin. This has meant sluggish US and world economic growth since the more money the 1 percent steal in the US and elsewhere, the weaker the demand for goods and services by the 99 percent.

Yellen has the brains to understand all of this. This is likely why the Fed has kept interest rates at historic lows for years. To maintain their standards of living, the 99 percent had to keep borrowing because they haven’t gotten a raise in 35 years on average and in real terms. Raise interest rates and the demand for goods and services begins to die.

Raising interest rates will likely be the straw that sends the world economy into the monstrous fangs of the biggest economic crisis since the Great Depression. This crisis may already be in its early less visible stages.

Not a single world leader has learned the lesson from the last Recession. The current US economic expansion is fueled by the same artificially created housing and stock market bubbles as the last recession. Wall Street executives are calling the economic shots in the White House, on Capital Hill and the US Supreme Court. That’s why nobody who could do anything did squat about the corrupt forces that brought about last recession, and now the bill is coming due.

The last recession was the worst since the Great Depression. The next one, as I have pointed out in my book, The Rigged Game: Corporate America and a People Betrayed, will be far more hideous.

The Fed has literally no tools to fight off this coming Great Depression, but it will print trillions of dollars to save billionaires and others from their foolish investment decisions. See breakdown-of-the-26-trillion-the-federal-reserve-handed-out-to-save-rich-incompetent-investors-but-who-purchase-political-power–JohnHively.wordpress.com

The federal government will be forced to expand the deficit, and instead of having 48 million people permanently on food stamps, the US will have 60 to 100 million, unless the madness of redistributing income from the 99 to the 1 percent via job exporting trade treaties, unsustainable and illogical immigration policies (both legal and illegal, HB1 visas), and privatization scams.

Much of this can be reversed simply by amending income redistribution schemes known as international trade agreements, limiting immigration by restricting the flow of people moving into the USA at least until wages begin to rise, enforcing current immigration laws, and putting a halt and reversing many privatization follies.

All three of these policies have stolen jobs from American citizens, while enriching the politically and financially affluent in the process, all at the expense of people who produce goods and services.

Of course, that is precisely what the corrupt US government (all three branches), and both corrupt major political parties, have been driven to do by the money unleashed in the political markets since and because of the Reagan tax cuts for the rich.

The ultimate end game of Reaganomics is coming to its ugly conclusion.


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Nabisco Corporation is the maker of Oreo cookies. Nabisco’s CEO has decided the best way to increase corporate profits is to lower wages. So she has authorized the shipping of 600 jobs in Chicago to lower wage Mexico. The difference between the old higher US wages, and the new lower Mexican wages, will go straight into the pockets of mostly rich shareholders and, of course, Rosenfeld’s wallet, as well. This will be achieved via rising Nabisco profits, surging share prices, and soaring dividends. The losers of those jobs will be lucky to get unemployment insurance for a while, until they get a new, lower paying job, if they’re lucky.

This scenario has been replayed over and over again, ever since NAFTA was enacted. NAFTA has redistributed trillions of dollars from the 99 to the 1 percent over and over again. The 1 percent used to steal only 8 percent of all income created in the United States. Now they’re robbing the rest of us blind, and this Oreo cookie (loaded with GMOs by the way) debacle is just one minor example of how income redistribution scams like NAFTA have played out.

President Obama and his henchmen, such as Wall Street Senator’s Mitch McConnell, Ron Wyden and Orrin Hatch, is pressing to resume negotiations on the Trans-Pacific Partnership, the largest income redistribution scam of all time. It’s falsely being labeled as a free trade agreement.


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On Friday, July 31 the negotiators from twelve nations announced in Maui that negotiations for the Trans-Pacific Partnership (TPP) had reached a roadblock. The TPP is massive income redistribution scam for the 1 percent, and particularly for Wall Street, major corporations and their overpriced CEOs and their shareholders, but it is being falsely marketed as a trade agreement.

President Obama wants to be able to deliver this scam before the upcoming elections so that Wall Street and major corporations who stand to gain at the expense of the 99 percent will open up its pockets more to Democratic candidates. However, as the Democratic base realizes this president and many of his Democratic cronies, such as Wall Street Senator Ron Wyden, has sacrificed their interests and redistributed their income and wealth to the 1 percent over and over again, along with Obama’s Republican party cronies (think Mitch McConnell, Orrin Hatch, John Boehner, etc…, the Democratic base has been abandoning ship.

In other words, the Democratic machine might get the cash to compete on television advertisements with the Republican machine if Obama and his henchmen like Wall Street Senator Ron Wyden can deliver the TPP, but in doing so, the Dems will have fewer and fewer votes on which it can count on. So the party will lose more seats in the US senate and the house of representatives.

That means the party base in shrinking and it doesn’t matter how much money the Democratic leadership can conjure up. They will continue to lose voters as more and more of the base can no longer discern any significant difference between the Democratic and Republican parties on bread and butter issues.

Trying to rally the base with social and international issues, such as the Iran nuclear deal, the liberalization of relations with Cuba, and gay marriage, will be less and less effective in helping to win elections if the sole purpose of the party on economic matters is to continue to impoverish the base with scams like the TPP.

According to CNN the negotiations broke down over the following:

Canada is balking at opening its dairy market for more imports — a key demand not just of the United States but also of New Zealand, where dairy giants like Fonterra are eager to expand the country’s top export.

In Japan, the United States wants easier access for its agriculture and automotive companies, but Prime Minister Shinzo Abe faces a legislature strongly influenced by small rice farmers. Long-standing foreign auto trade barriers are difficult to tear down in that country.

And the United States’ push for 12 years of patent protection on pharmaceutical drugs is tripping up poorer countries — such as Malaysia and Vietnam — that fret they’d face public health challenges without access to cheaper generics.

Critics in manufacturing states have said the deal should include a crackdown on countries that manipulate the value of their currencies to give their exports a price advantage in the United States. That, though, is a non-starter and would halt the deal’s progress entirely, negotiators from several countries have said.


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Are the above the only reasons why Canada’s middle class is growing and the US middle class is shriveling? Of course not. Here’s another reason, and the likely biggest factor.

The top 1 percent of Canadians steal slightly more than 10 percent of the total Canadian national income, while the top 1 percent in the US are stealing 37 percent of all income, and this is growing massively since the top 1 percent have stolen 95 percent of all US income growth every year since 2009, thanks to legislation generously supported by US Senators Mitch McConnell and Ron Wyden, such as international income redistribution agreements, commonly and falsely marketed as free trade agreements.

International income redistribution agreements redistribute income from the 99 to the 1 percent by legally paving the way for US corporations to ship jobs overseas, as well as create jobs overseas, rather than investing in the USA. The difference between the old higher US wages and the new lower overseas wages goes straight to the already fat bank accounts of the 1 percent while the job losers get unemployment insurance if they’re lucky, and lower wages when and if they find a new job.

This legislatively induced US income inequality is the reason why the demand for goods and services is so weak in the USA, and why the current business expansion is the weakest on record, which, not so coincidentally, is also following the previous weakest business expansion in US history. The 99 percent only get 63 percent of income in the USA, and now they have less money to spend, resulting less demand for goods and services, in slower and slower job growth, decreasing wages, less tax dollars for schools, roads, fire, the social security trust fund, and police.

According to the Federal Reserve, 28 million jobs were exported from the US from 1990 to 2010, and millions more have been exported since. That means those jobs don’t pay social security taxes any more, as that income has been redistributed to the super rich. And the rich don’t pay social security taxes on their incomes above $118,500 a year. That means hundreds of billions of dollars of US income are no longer paying social security taxes, resulting in the social security shortfall anticipated in twenty years.

In other words, part of your future retirement income has been redistributed by Wyden and McConnell to the 1 percent via their income redistribution scams. And now the pair are pushing through congress the largest international income redistribution scam of all time, the Trans Pacific Partnership, falsely marketed as a trade agreement.







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In the video below, President Franklin Roosevelt talked about the powerful wealthy vested interests that had taken over the USA government prior to his election in 1932. FDR proposed and signed into law legislation that curbed the power and influence of those vested interests in government at all levels, including a 90 percent top marginal tax rate. That reduced the influence of corruption in government, by reducing the money the corrupting people possessed.

President Carter was the last president under the old regime of anti-corruption established by FDR, which is why the US government never fired a missile, or a pistol, or dropped a bomb on another nation during his reign, which, coincidentally, is looking better and better every time we look back at it.

The Reagan tax cuts for the rich unleashed the power of the rich to corrupt government, and that is precisely why, as FDR said in 1936, corporate interests now consider the US government to be a “mere appendage to their own affairs. We know now that Government by organized money (corporate interests) is just as dangerous as Government by organized mob (organized crime).” Parenthesis mine.

This is why the US government,

1. demands state wide testing, because it’s highly profitable for the publishing industry, and it redistributes income from local and state taxpayers to rich investors of the publishing industry.

2. wages constant war, because it is highly profitable in that it redistributes income from the taxpayers to the rich shareholders of the war industry.

3. gives fewer grants to university students, because it forces college students to take out more student loans, which redistributes income from the 99 to the 1 percent. Wall Street banks purchase the loans, and then issues bonds against the loans to rich investors. Students pay back the loans, but a large portion of their payment goes to the rich bondholders.

4. raised student loan interest rates from 3.4 to 6.8 percent on all new loans a year ago. Republicans and Democratic lawmakers supported this because it forces students to pay more interest to rich investors.

5. negotiates trade treaties, which are nothing more than income redistribution scam. The treaties pave the legal way for corporations to ship and create jobs overseas, and the difference between the old higher US pay and the new lower third world pay goes straight into the wallets of the 1 percent via higher corporate profits, surging dividends and rising share prices.

The list goes on and on. The federal government is totally corrupted to the core, as are many state and local governments. This corruption is the only cause of the income inequality that has occurred in the USA over the last thirty-five years, whereby 1 percent of the population stole 8 percent of the total income produced in the USA when Carter was president, but now rob the rest of us blind by stealing 37 percent of all income produced in the USA. Since President Obama took office, the 1 percent have been stealing 95 percent of all income growth.

That’s why President Carter created on average more jobs per year with rising real wages than every president since him. That’s why Carter was one of the great presidents in US history. The 99 percent earned 92 percent of all income back then, and were able to purchase goods and services in sufficient quantities to create more jobs per year, and with rising real wages every year, than during the reign of any president since then. And that’s precisely why the propaganda machine known as the corporate news media, politicians like Wall Street Senator John McCain, and rich parasites are always putting President Carter down, and call him weak and a bad president, If we look back at the economy of Carter, and his foreign policies, we would call his era the last golden age of the American dream.

Today’s economy is the weakest in history by any measure, including wage and job growth. That’s because the 99 percent now receive only 63 percent of all income in the US. Those people can no longer afford to purchase the goods and services necessary to sustain a strong economy, and those in business and political offices know this is the problem that vexes this economy, but they won’t do anything about it due to the massive corruption.

Excerpt from FDR’s speech:

“For twelve years this Nation was afflicted with hear-nothing, see-nothing, do-nothing Government. The Nation looked to Government but the Government looked away. Nine mocking years with the golden calf and three long years of the scourge! Nine crazy years at the ticker and three long years in the breadlines! Nine mad years of mirage and three long years of despair! Powerful influences strive today to restore that kind of government with its doctrine that that Government is best which is most indifferent.

For nearly four years you have had an Administration which instead of twirling its thumbs has rolled up its sleeves. We will keep our sleeves rolled up.

We had to struggle with the old enemies of peace‹business and financial monopoly, speculation, reckless banking, class antagonism, sectionalism, war profiteering.

They had begun to consider the Government of the United States as a mere appendage to their own affairs. We know now that Government by organized money is just as dangerous as Government by organized mob.

Never before in all our history have these forces been so united against one candidate as they stand today. They are unanimous in their hate for me‹and I welcome their hatred.”


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