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Posts Tagged ‘Socialism’

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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A recent Wall Street Journal story claimed socialism was an utter failure and no nation which has embraced capitalism has ever failed. That was a lie, plain and simple. There are plenty of examples and we can begin right here with the complete failure of capitalism in the United States.

The roaring twenties was a time of unprecedented income and wealth inequality. This period was followed by the Great Depression beginning in 1929. The Depression devastated the U.S. economy. From 1929 to 1932, half of all banks failed, unemployment rose from 2.7 percent to 25.3 percent and homelessness became rampant. Housing prices plummeted 30%, international trade collapsed by 65%, the stock market suffered a 90+ percent loss of value, real Gross Domestic Product (GNP) fell 30.5 percent, wholesale prices fell 30.8 percent, and consumer prices fell 24.4 percent. Wages plummeted. In manufacturing, representing 4 of every 9 jobs in the non-farm economy at the time, weekly earnings dropped 37.5 percent from 1929 through 1932.

From 1929 to 1932, the pro-capitalist policies of the incumbent Republican Party President Herbert Hoover and the Republican congress had utterly failed. The market did not correct itself.

In the summer of 1932, Hoover insisted he would easily defeat the Democratic Party challenger, Franklin Delano Roosevelt (FDR). At the time Hoover made this claim, the unemployment rate was 21.3 percent. However, 1932 was the year the Great Depression kicked into high gear. Manufacturing wages dropped more than 19 percent during that year alone, prices continued falling, and unemployment accelerated. The Gross Domestic Product (GDP) collapsed by 12.9 percent, the highest fall on record. The capitalist economy of the United States was in a free fall in 1932, an utter failure of an economic system.

By the time FDR was inaugurated as president in March 1933, the unemployment rate was 25.3 percent. Unrest was occurring all over the nation; tax collectors were tar and feathered, and people were taking to the streets.

FDR infused socialism into capitalism to revive dead capitalism. His socialist policies arrested the collapse; GDP fell only -1.2 percent in 1933, and prices began to grow. GNP grew over ten percent in 1934, while prices and wages continued to rise. Socialist policies enacted by FDR included the Social Security Act to help protect the aged, unemployment insurance to keep people spending money, the minimum wage to stop wages from plummeting beyond a certain level, the Wagner Act which gave organized labor more rights to negotiate a better living with employers, and the Securities and Exchange Commission to police Wall Street criminals. Major federal programs and agencies included the Civilian Conservation Corps (CCC), and the Civil Works Administration (CWA), both of which put hundreds of thousands of people to work. FDR also created the Farm Security Administration (FSA) to provide relief to farmers from drought and falling prices.

As a result of the adoption of these and other socialist policies, GNP grew by robust amounts until FDR decided to curtail federal spending. The result was a short setback to the economy. FDR reversed course and continued federal deficit spending until the unemployment fell to less than 10 percent on the eve of World War II.

The United States has had a robust socialist sector as part of its economy ever since (Actually before then too). Think of all those public schools initiated 200 and more years ago in the United States, the Constitutionally mandated United States postal service (God damn socialist U.S. Constitution), the highway system, the military, the police, public parks, the court system, public employees, the national park system, the Food and Drug Administration, etc…. That is a lot of socialism for a capitalist nation, and the result has been a robust middle class, which has been weakened as the billionaires have taken over both major political parties (and your government in the process), privatized a lot of government services to take money from you and put it into their wallets, and redistributed trillions of dollars from the 99 percent to themselves during the last forty years. The rich love socialism for themselves, but not for you.

As for other capitalist nations that have failed a shortlist would include:

* Imperial Russia; people overthrew the capitalist system and replaced it with a communist system because the capitalist system had utterly failed. Yes, I know, the communist system also failed.

* Sweden: The late Nobel Prize-winning economist liked to tell the tale of the complete failure of Swedish capitalism. The Great Depression ushered in the first known nation that became heavily socialist by a vote of the people during the 1930s. The Swedes never looked back.

* The Weimar Republic was established as the representative democracy of Germany which aimed to give genuine power to all German adults. However, it had major flaws that contributed to its downfall in 1933-34, and it was replaced by Nazi Germany.

* Nazi Germany-the less said about it the better, but it did fall into the dustbin of history in 1945.

* Venezuela-Poverty ran rampant in capitalist Venezuela. Capitalism’s promises of prosperity failed miserably to improve the standards of living for the vast majority of Venezuela’s people, and that is why Hugo Chavez was elected and re-elected time and again up to his death. Thus the failure of capitalism gave birth to socialism. I know! I know! Somebody is going to say socialism has failed in Venezuela too! I will not argue that point.

On the other hand, I can name many successful socialist nations, like Sweden, Norway, Denmark, Finland, China, France, and by the way, you can also include the United States in that list, especially if one looks at all the ways the government enriches the wealthy through legislation, and through military spending, or how the Federal Reserve bailed out the rich with the $26 trillion bailout. $26 trillion? That’s socialism for you, well, not for you, but for the rich.

Socialism and capitalism have meshed together for ages. There is no pure socialist nation nor a purely capitalist nation. Purely capitalist nations have failed, and purely communist nations have failed. By the way, our capitalist health care system in the United States is the least efficient and most expensive system in the developed world, and also the only capitalist one.

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What Kind of Commie Does Pope Francis Sound Like?

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Bill Maher on Why Americans Love Socialism

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