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It’s not quite what you imagine it to be. President Trump is right to shout to the Twitterverse about how its trade deficit with China is costing the United States trillions of dollars and millions of jobs every year.

According to a recent study by the progressive Economic Policy Institute (EPI), which is hated by the conservatives and corporate Democrats alike, “…the growing trade deficit with China…has cost the U.S. millions of jobs throughout the economy since China entered the World Trade Organization (WTO) in 2001, a finding validated by numerous studies.”

Of course, EPI did not report a few things that are important to their study, and for our interests. So, as you read through a few of the EPI highlights below, I will make comments here and there in bolded letters. However, let me state there are a few things in this report that are not mentioned, and the corporate news media do not want you to know.

  • The U.S. trade deficit with China does not really exist in the sense that it is a trade deficit between China and the United States. In reality, the trade deficit is really between US corporations that manufacture their goods and services in the U.S.A. and U.S. corporations that have exported U.S. jobs to China and then exported their-made-in-China goods and services to the USA.
  • Another thing not mentioned is that a variety of studies show the export of every 100 manufacturing jobs from the United States results in the loss of an additional 300 to 1700 U.S. jobs.
  • The difference between the old higher wage exported U.S. jobs and the new lower wage Chinese jobs goes straight into the pockets of the billionaires who control both major political parties via higher corporate earnings, rising share prices, and surging dividends. Thus, much of the income and wealth inequality of recent history is the deliberately negotiated end result desired by corporate-backed U.S. politicians and U.S. negotiators.
  • Currently, three people (Jeff Bezos, Warren Buffett, and Bill Gates) own more wealth than the bottom fifty percent of US citizens. Much of this is caused by the so-called trade deficit with China.
  • Trade treaties are negotiated so that US corporations can export jobs, as well as create them over there rather than over here, and this also helps to manufacture U.S. income and wealth inequality.
  • Pretty much 100 U.S. billionaires control both major U.S. political parties and quite naturally they have rigged the economy using the corrupted U.S. government, and especially a remarkably corrupt corporate wing of the United States Supreme Court, which includes two well-known perjurers in Brent Kavanaugh and Chief Justice John Roberts.
  • In other words, the income and wealth inequality we experience has been caused by the corruption of all three branches of the federal government, which could not have occurred without the complete corruption of the corporate news media.
  • Currently, the 1 percent steal somewhere between 22 to 38 percent of all the income produced in the United States, up from roughly 8 percent in 1980.

Here are a few of the highlights of the recent EPI report:

1. U.S. jobs lost are spread throughout the country but are concentrated in manufacturing, including in industries in which the United States has traditionally held a competitive advantage. Think Nike, Microsoft and Apple.

2. The growth of the U.S. trade deficit with China between 2001 and 2017 was responsible for the loss of 3.4 million U.S. jobs, including 1.3 million jobs lost since 2008 (the first full year of the Great Recession, which technically began at the end of 2007). Nearly three-fourths (74.4 percent) of the jobs lost between 2001 and 2017 were in manufacturing (2.5 million manufacturing jobs lost).

3. The growing trade deficit with China has cost jobs in all 50 states and in every congressional district in the United States.

4. The trade deficit in the computer and electronic parts industry grew the most: 1,209,000 jobs were lost in that industry, accounting for 36.0 percent of the 2001–2017 total jobs lost. (Think Dell Computers, Apple, Microsoft and a lot more.)

5. Surging imports of steel, aluminum, and other capital-intensive products threaten hundreds of thousands of U.S. jobs in key industries such as primary metals, machinery, and fabricated metal products as well.

6. Global trade in advanced technology products—often discussed as a source of comparative advantage for the United States—is instead dominated by China. This broad category of high-end technology products includes the more advanced elements of the computer and electronic parts industry as well as other sectors such as biotechnology, life sciences, aerospace, and nuclear technology. (This is because Dell, Apple and Microsoft, among many other US high-tech corporations, have exported millions of US jobs to China, or created them there rather than here, and then exported their Chinese made products to the USA.)

7. In 2017, the United States had a $135.4 billion trade deficit in advanced technology products with China, and this deficit was responsible for 36.1 percent of the total U.S.–China goods trade deficit that year. In contrast, the United States had a $24.5 billion trade surplus in advanced technology products with the rest of the world in 2017. (See number six in bolded letters above.)

8. Growing trade deficits are also associated with wage losses (in the USA) not just for manufacturing workers but for all workers economywide who don’t have a college degree.

9. Between 2001 and 2011 alone, growing trade deficits with China reduced the incomes of directly impacted workers by $37 billion per year, and in 2011 alone, growing competition with imports from China and other low wage-countries reduced the wages of all U.S. non–college graduates by a total of $180 billion. Most of that income was redistributed to corporations in the form of higher profits and to workers with college degrees at the very top of the income distribution through higher wages.

The China toll deepens–Economic Policy Institute

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When you vote November 6th for the Republican or Democratic Party candidates for the US House of Representatives and the US Senate, with few exceptions, you will be voting to increase income and wealth inequality in the United States and the world.

Below are some of the recent statistics on income and wealth inequality from Inequality.com. Wealth are the things that you own, such as homes, cars, stocks, bonds, businesses, etc…. Income is money you have coming in, such as unearned income like dividends and capital gains; while earned income is derived by actually doing something productive, like working at a job or starting and operating a business. Entrepreneurial folks are different from corporate folks inasmuch as the folks who manage corporations are often employees without clues as to how to make the businesses operate efficiently.

I should point out that control of the government via ownership of both major political parties has brought about an unceasing increase in wealth and income inequality in the USA and throughout the world. In other words, political corruption and corruption of the all major corporate news networks have been used to bring about unprecedented income and wealth inequality in the United States and the rest of the world.

Below are some of the most recent findings.

1. Three dynastic wealth families—the Waltons, the Kochs, and the Mars—have seen their wealth increase nearly 6,000 percent since 1982. Meanwhile, median household wealth over the same period went down by 3 percent. Notice they all inherited great wealth. Note that the rich have used their political power to redistribute income and wealth from the 99 percent to themselves.

2. These three wealth dynasties own a combined fortune of $348.7 billion. That’s more than four million times the median wealth of U.S. families. The dynastic wealth of the Walton family grew from $690 million in 1982 (or $1.81 billion in 2018 dollars) to $169.7 billion in 2018, a mind-numbing increase of 9,257 percent.

3. Three individuals—Jeff Bezos, Bill Gates, and Warren Buffett—still own more wealth than the bottom half of the country combined.

4. A third of the members of the Forbes 400 own fortunes derived from companies that were founded by earlier generations.

5. The 15 wealthiest multi-generational dynastic families on the Forbes 400 own a combined $618 billion. Their parents or other ancestors founded all of the companies from which their wealth is derived.

6. The Forbes 400 combined own $2.89 trillion dollars, more than the combined wealth of the bottom 64 percent of the United States. It’s also more than the GDP of Britain, the 5th-largest economy in the world. Just 45 individuals own half of this wealth.

7. The median family in the United States owns just over $80,000 in household wealth. The richest person in the United States (and the world), Jeff Bezos, has accumulated a fortune nearly 2 million times that amount.

8. The Bezos fortune expanded by $78.5 billion just in the last year to $160 billion. Even at the recently increased wage of $15/hour, a full-time Amazon worker would need to toil for 2.5 million years to generate this much money.

And so it goes. The entire Republican Party leadership has been bought by the billionaires as well as the entire Democratic Party leadership. In other words, the battle between the Democrats and the Republicans is a battle between billionaires. A few relatively honest major politicians remain in the Democratic Party, but they are not in leadership positions. Think Elizabeth Warren, Bernie Sanders, Jeff Merkley, and a few others.

Think Elizabeth Warren for president in 2020.

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Well, here we go again. A viciously anti-Democracy, anti-US Constitution Supreme Court nominee named Brett Kavanaugh can easily be stopped from wreaking more havoc to the US Constitution by the outnumbered Senate Democrats. And they will not do it.

The Democrats simply do not need to show up for the full Senate vote on Kavanaugh’s confirmation, now that US Senator John McCain has died. Article I, section 5 of the Constitution requires that a quorum (51 senators) be present for the Senate to conduct business.

The Republicans hold 50 Senate seats, and the Democrats plus their independent allies, such as Senator Bernie Sanders, hold forty-nine. If all the Democrats show solidarity and simply do not show up for business, as usual, Kavanaugh cannot be confirmed to sit as a justice on the Supreme Court.

However, it is highly unlikely the Wall Street controlled Democratic National Committee will allow this because Wall Street executives want Kavanaugh on the court. Kavanaugh says he is an original intent jurist. That means as a judge, Kavanaugh claims to rule on issues as the founding fathers intended. Nothing could be further from the truth. He is a liar.

The billionaires who control both major political parties want a supreme court justice who is dishonest enough to say that the founding fathers of the United States believed corporations are people, trade treaties are not trade agreements, and money is free speech.

None of our founding fathers uttered such a thing in any of their writings. So all of the conservative supreme court justices (John Roberts, Clarence Thomas, Samuel Alito, and Neil Gorsuch) are simply lying in order to alter the meaning of the US Constitution.

This fundamental alteration based on lies gives the billionaires via their corporations’ significantly more constitutional rights while simultaneously diminishing the Constitutional rights of the vast majority of United States citizens, the 99.5 percent.

In the meantime, the US corporate news media, on behalf of their corporate and billionaire advertisers and owners, are keeping the eyes of the 99 percent on the abortion issue rather than the increase of constitutional rights the billionaires will achieve with the successful nomination of Kavanaugh and his lies, and the lies of the other conservative justices.

So do not expect the billionaires who control the Democratic Party to do the right thing, stopping a quorum and stopping Kavanaugh in the process, by uniting 49 US senators behind a common cause to prevent the US Constitution from the further perversion that Kavanaugh will insist upon with lies.

Expect income and wealth inequality to continue to grow as the billionaires continue to control the United States Supreme Court.

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Racism is something the billionaires have us talking about rather than such mundane things as income, wealth and political inequality, as well as the disintegrating middle class. It’s easy for us to look at videos on Youtube of ordinary people being racist or to keep our eyes on things like cultural appropriation. Those things can hit us emotionally like a cruise missile, but keeping our eyes on those things is precisely what the billionaires and their political elite employees want us to do.

The last things the billionaires want us discussing among ourselves are bread and butter issues, like ever-growing income and wealth inequality and the obvious political corruption of both major political parties, as well as the corporate corruption of all three branches of the US government.

For the billionaires, it is as if the people who divert our attention from income, wealth and political inequality and toward issues like racism and cultural appropriation are on the payroll of the billionaires. It certainly makes me wonder. They have billions of dollars and can certainly pay people to post about racism and fire up people on Internet social networks.

It is easy to see the billionaire-owned corporate media focuses our attention on issues like racism, cultural appropriation and immigration and almost nothing on real issues such as income, political and wealth inequality. However, I am amazed so many people fall for this ruse, but they do.

Below is what the billionaires are protecting:

Currently, the 1 percent own more wealth than the bottom 90 percent of Americans, and six men possess more wealth than the bottom half of humanity on Earth. Worldwide, the 1 percent stole 82 percent of all new wealth produced in 2017. Those numbers are historical records and are still growing at the expense of the rest of us.  (Click here and click here for additional information on those statistics and sources).

Our record-breaking wealth inequality is fueled by record-breaking income inequality. Today, the 1 percent steal anywhere from 24 to 38 percent of all income produced in the USA, depending on which study you choose to use. This is up from 8 percent in 1980, and it is still growing at the expense of the rest of us.

But, hey, let’s talk about racism, and, we need to talk about transgender bathrooms, wars against Christmas, the war against women, Obama’s continuous war against guns and bullets, and don’t forget we desperately need to talk about the war against dirty diapers! And no! I am not on the payroll of the billionaires! Yet, I would be surprised if others were not.

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The people of the United States lead the world in many categories, most of them, however, are not things to brag about. This is where the corruption of both major political parties, all three branches of the US government (that includes the corporate wing of the US Supreme Court) by the rich and their corporate dollars has brought us to during the last forty years.

All three branches of the government and both major political parties have fought tooth and nail to redistribute income and wealth from the 99 to the 1 percent during the last four decades. The corporate news media has been complicit in this rape and plunder of their fellow citizens by the 1 percent.

Studies show that the top 1 percent of the US now own more wealth than the bottom 90 percent. The top 1 percent stole only 8 percent of all income produced in the USA in 1980, while studies show they are now robbing the rest of us blind by stealing anywhere from 23 to 37+ percent of the total income created in the United States. The shares of wealth and income of the 1 percent are still growing and at the expense of the rest of us.

Below are some of the findings from the United Nations study.

By most indicators, the US is one of the world’s wealthiest countries. It spends more on national defense than China, Saudi Arabia, Russia, the United Kingdom, India, France and Japan combined.
US healthcare expenditures per capita are double the OECD average and much higher than in all other countries. But there are many fewer doctors and hospital beds per person than the OECD average. (OECD = Organisation for Economic Co-operation and Development, which includes 37 nations)

  • US infant mortality rates in 2013 were the highest in the developed world.
  • Americans can expect to live shorter and sicker lives, compared to people living in any other rich democracy, and the “health gap” between the US and its peer countries continues to grow.
  • US inequality levels are far higher than those in most European countries
  • Neglected tropical diseases, including Zika, are increasingly common in the USA. It has been estimated that 12 million Americans live with a neglected parasitic infection. A 2017 report documents the prevalence of hookworm in Lowndes County, Alabama.
  • The US has the highest prevalence of obesity in the developed world.
  • In terms of access to water and sanitation, the US ranks 36th in the world.
  • America has the highest incarceration rate in the world, ahead of Turkmenistan, El Salvador, Cuba, Thailand and the Russian Federation. Its rate is nearly five times the OECD average.
  • The youth poverty rate in the United States is the highest across the OECD with one-quarter of youth living in poverty compared to less than 14% across the OECD.
  • The Stanford Center on Inequality and Poverty ranks the most well-off countries in terms of labor markets, poverty, safety net, wealth inequality, and economic mobility. The US comes in last of the top 10 most well-off countries and 18th amongst the top 21.
  • In the OECD, the US ranks 35th out of 37 in terms of poverty and inequality.
  • According to the World Income Inequality Database, the US has the highest Gini rate (measuring inequality) of all Western Countries
  • The Stanford Center on Poverty and Inequality characterizes the US as “a clear and constant outlier in the child poverty league”.
  • US child poverty rates are the highest amongst the six richest countries – Canada, the United Kingdom, Ireland, Sweden and Norway.

Free trade policies that have made it easy for the billionaires and their corporations to export tens of millions of United States jobs to third world nations and the pocket the difference between the old high US wages and benefits and the super low third world wages with no benefits have caused much of the US crisis outlined in the UN Report. These same trade scams also pave the legal road for US corporations to create tens of millions of jobs overseas rather than here at home with the same result of increasing income and wealth inequality. There are other culprits in the current state of US political corruption; deregulation, monopolies, lawlessness on Wall Street, a US Department of Justice unwilling to take on Wall Street corruption, unfettered campaign contributions leading to the political corruption of both major political parties, a Supreme Court corrupted by the influence of the billionaires, such as the Koch Brothers.

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Income inequality and genetically modified foods (GMOs) are interrelated. Just like tumors and other health maladies, GMOs help income and wealth inequalities grow.

GMO’s entered the US food chain in 1994. The United States Food and Drug Administration (FDA) had approved GMO’s for the US food chain for humans in 1992. The GMO corporations provided the evidence of its safety, which, reportedly, were tests demonstrating that rats fed GMO food for three months did not develop health problems.

The folks at the FDA apparently did not care what happened to GMO fed rats after three months. What mattered is that pesticides and herbicides were genetically placed within the seeds of food plants, such as corn, canola, and soy. As the seeds grow into plants, so, too, do the pesticides and herbicides. When you eat corn, canola, and soy, you eat the pesticides and herbicides. More than 80 percent of corn, canola, and soy grown in the US today are GMOs. So are large amounts of many other crops.

Numerous studies show GMOs cause health issues. For example, a study in France found that rats fed GMO foods for over three months developed all sorts of health issues, such as tumors and other organ damage (Click here for more information). Also, see the video above.

Why are we eating this poison on such a massive scale? The answer is simple. GMO plants have the herbicides and pesticides in them. The pesticides kill bugs that bite into the plant, while the herbicides kill weeds that might otherwise grow within a few feet of the plant. That makes GMO crops less labor intensive, thereby reducing labor costs, and raising profit margins.

Increased profit margins mean higher corporate earnings and share prices than would otherwise be the case in the absence of GMOs. That’s why many corporations use GMOs, such as Kelloggs, McDonalds, Purina, Quaker Oats, PepsiCo, Swansen, Heinz, and on and on. The list is almost endless.

GMO’s are one of the reasons why income and wealth inequality are at such high levels. The rich disproportionately benefit from rising corporate profits and share prices. Currently, the top 1 percent own more wealth in the United States than the bottom 90 percent. For more information see The 1 Percent Own More Wealth Than the Bottom 90 Percent. The top 1 percent are stealing up to 37 percent of all income created in the United States nowadays, compared to just 8 to 10 percent in 1980. See The rich are now getting more than 36 percent of all income.

There is one more advantage the rich derive from GMO foods. Profits can be increased on GMO foods without raising prices. In some cases, prices might even decline while profits rise. In the face of rising inequality, the increase in food prices is slowed by using GMO crops. Otherwise, prices might rapidly increase, resulting in consumer dissatisfaction and even perhaps food riots. Cheap food depresses the discontent of the masses, helping to keep them in line even as the rich rob them of their health and money.

Ultimately, your health is being redistributed to the rich via GMOs, increased corporate profits, and rising share prices, and your government has approved this health and income redistribution scam.

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As expected, since the Trump and Republican Party tax cuts were written to benefit the rich and their corporations, only the rich and their corporations are benefiting from them, for the most part. The tax cuts were intended to increase income and wealth inequality in favor of the billionaires and multi-millionaires, and that is precisely what they have done, according to a perusal of a story in the May 11, 2018 issue of the Wall Street Journal (Buybacks Surge, Steadying Market, Wall Street Journal).

The Journal reported “U.S. companies are buying back their shares at a record pace, providing fresh support during a rocky stretch for the stock market when many investors have rushed for the exits. S&P 500 companies that have reported earnings for the first three months of 2018 bought $158 billion of their own stock in the quarter…. About 85% of S&P 500 components (companies which are also known as corporations) have reported so far.”

The Journal reports corporations can do this since the “new tax law” is “freeing up cash.” This is something corporations badly need since total US corporate profits fell during the fourth quarter of 2017. One can be reasonably suspicious that before-tax corporate profits during the first quarter of 2018 might also have fallen, especially since the US and world economies are at the tail end of an economic expansion. Those first quarter statistics are not yet available.

One can be reasonably suspicious that, as I pointed out in a previous story, much of the tax cut money would be used by corporations and the rich to fuel the stock market higher, rather than create jobs building products for which there is no demand.

The S&P 500 peaked at $2853.53 on January 26 of this year. It has been down ever since, influenced to a large degree by the fall in fourth-quarter profits. The Dow also peaked in January and has been down since then. This is likely why investors are fleeing the stock market.

When the Journal reporters write about “investors,” they are not writing about you and me. They are writing about billionaires, multi-millionaires, Wall Street Banks like Goldman Sachs, hedge funds, wealth fund managers, and other financial institutions that invest mostly for rich people.

So corporate managements are buying their own shares and taking them off the market. This is done in order to push share prices higher, which is a simple case of supply and demand. Reduce the supply of shares on the market, and this should jack up prices, so long as no other variables happen to come along. One of which is the decline in corporate profits.

Of course, there is something else CEO’s of corporations are doing to entice investors into the market.

They are taking the savings from tax cuts and offering higher dividends, which are payments made to shareholders. Notice these payments will go mostly to billionaires and millionaires, along with the higher priced shares due to the buybacks.

So the stock market bubble continues thanks to the Trump/Republican tax cuts for the rich and their corporations. Naturally, this only increases income and wealth inequality. Worst yet, with a recession right around the corner, all that money in buybacks and increased dividends is simply throwing good money after bad.

As a final note, I should point out that the Journal reporters (Ben Eisen and Akane Otani) are either stupid, poor reporters, or liars. They write, “The S&P 500 is up only modestly for the year.” Apparently, they do not count the month of January as being part of the year 2018 because that is when the S&P 500 reached its peak value, at least according to Yahoo. On the other hand, they write, “…many analysts believe major indexes would have suffered losses without the support of buybacks.” This is, of course, the purpose of the buybacks.

There is no doubt about the purpose of the tax cuts for the rich; increase income and wealth inequality in their favor and at the expense of the 99 percent. The federal government is now looking at reducing programs for the infirmed, the needy, the elderly, children, and others, in large measure due to the tax cuts. The federal deficit is now growing, thanks to the tax cuts. Fewer taxes collected mean fewer dollars for government programs that benefit anybody except the rich.

The federal government and the United States Federal Reserve Bank will only print up trillions of dollars to save the rich. The rest of us, being cannon fodder for the rich, are expendable.

For more information on this see Breakdown-of-the-26-trillion-the-federal-reserve-handed-out-to-save-rich-incompetent-investors-but-who-purchase-political-power–JohnHively.Wordpress.com

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