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Economy

How Junk Economists Help The Rich Impoverish The Working Class

ast week, I explained how economists and policymakers destroyed our economy for the sake of short-term corporate profits from jobs offshoring and financial deregulation. That same week Business Week published an article, “Factory Jobs Are Gone. Get Over It,” by Charles Kenny. Kenny expresses the view of establishment economists, such as Brookings Institute economist Justin Wolfers who wants to know “What’s with the political fetish for manufacturing?  Are factories ...Read full article...

How Economists and Policymakers Murdered Our Economy

The economy has been debilitated by the offshoring of middle class jobs for the benefit of corporate profits and by the Federal Reserve’s policy of Quantitative Easing in order to support a few oversized banks that the government protects from market discipline. Not only does QE distort bond and stock markets, it threatens the value of the dollar and has resulted in manipulation of the gold price. See http://www.paulcraigroberts.org/2014/01/17/hows-whys-gold-price-manipulation/ ...Read full article...

The Inside Story of Gold Price Manipulation

The deregulation of the financial system during the Clinton and George W. Bush regimes had the predictable result: financial concentration and reckless behavior. A handful of banks grew so large that financial authorities declared them “too big to fail.”  Removed from market discipline, the banks became wards of the government requiring massive creation of new money by the Federal Reserve in order to support through the policy of Quantitative ...Read full article...

Greece is at the Political Mercy of the EU

Less than two years ago, Greece was handed over to its creditors, the European bankers who promised to “voluntary ” remove its debt if the country abided by their rules. This decision, Greek politicians and creditors said, would return the country back to fiscal sanity. Instead, it became a financial inquisition that resulted in greater evils. Today, life remains the same for politicians and creditors. They are still rich ...Read full article...

Corporate Taxes in America

Raising them should be a national imperative. Corporations should pay their fair share. Not according to Laurence Kotlikoff. He’s a right-wing economist. He’s a corporatist writ large. He claims  abolishing corporate taxes will create jobs. Doing so requires dropping money on Main Street. Get it in people’s pockets directly. Do it by cutting their taxes. Guarantee a living wage. Support worker-friendly legislation. Restore their bargaining power with management. Return ...Read full article...

The Case of the Missing Economic Recovery

Have you seen the economic recovery?  I haven’t either.  But it is bound to be around here somewhere, because the National Bureau of Economic Research spotted it in June 2009, four and one-half years ago. It is a shy and reclusive recovery, like the “New Economy” and all those promised new economy jobs.  I haven’t seen them either, but we know they are here, somewhere, because the economists said ...Read full article...

2014 Will Bring More Social Collapse

2014 is upon us.  For a person who graduated from Georgia Tech in 1961, a year in which the class ring showed the same date right side up or upside down, the 21st century was a science fiction concept associated with Stanley Kubrick’s 1968 film, “2001: A Space Odyssey.”  To us George Orwell’s 1984 seemed so far in the future we would never get there.  Now it is 30 ...Read full article...

Manipulations Rule The Markets

QE helps the big banks, and manipulation of the gold price downward protects the US dollar from its dilution by QE. The Federal Reserve’s announcement on December 18 that beginning in January its monthly purchases of mortgage-backed financial instruments and US Treasury bonds would each be cut by $5 billion is puzzling, as is the financial press’s account of the market’s response. The Federal Reserve conveys a contradictory message.  ...Read full article...

Rigging Foreign Exchange Markets. Finance Capital’s “Control Fraud”

It’s the world’s largest financial market. It trades around $5 trillion daily. It’s more than all global equity markets combined. It operates round-the-clock. It’s manipulated for profit. Grand theft reflects official Wall Street policy. Bankers make money the old-fashioned way. They do it through fraud, grand theft, market manipulation, front-running, misrepresentation, scamming investors, naked short selling, precious metals price suppression, controlling Washington, getting open-ended low or no interest rate ...Read full article...

The Economic Recovery is a “Statistical Illusion”

The payroll jobs report for November from the Bureau of Labor Statistics says that the US economy created 203,000 jobs in November. As it takes about 130,000 new jobs each month to keep up with population growth, if the payroll report is correct, then most of the new jobs would have been used up keeping the unemployment rate constant for the growth in the population of working age persons, ...Read full article...

Detroit bankruptcy: Open Season for Pensions and Salaries

Detroit is officially the largest city in U.S. history to declare bankruptcy. Judge Steven Rhones gave permission to its operators to begin looking for ways to put the scissors to public accounts in order to balance them and reduce massive debt. All this happened while fears of a revolt from the workers, who are likely to see how their salaries and pensions are cut because of the rampant corruption ...Read full article...

China Reduces its US Dollar Holdings

China and Russia are quitting US dollar or at least significantly cutting the dollar share in their forex reserves.  Politically correct American analysts call this process “rapid forex reserves diversification”. In fact, some economists see this trend as a threshold in the unfolding world crisis because the whole pyramid of global finance is based on one simple fact – financial regulators around the world buy the US debt (dollar & treasuries) no ...Read full article...

Market Euphoria During Troubled Times

Major equity markets approach nosebleed levels. Experts disagree on whether bubble extremes approach. They’re not unusual. They happen often. The myth about markets reflecting reality is hokum. Keynes once warned about “enterprise becom(ing) the bubble on a whirlpool of (destructive) speculation.” Hard times usually follows. Easy credit fuels speculation. Euphoria follows. Greed trumps good sense. Folly pays a big price. This time is different talk proliferates. Momentum drives prices ...Read full article...

Banksters plot publicly to keep your deposits in their pockets

Leaders of the global banking cartel have publicly stated that they are planning to impose charges on depositors should the U.S. Federal Reserve cut the interests rate it pays banksters for deposits it holds from individuals and companies. Meanwhile, Federal Reserve Board Governor, Daniel Tarullo, proposed this week measures to avoid what he called “massive runs on the banks”. As it is well known, the United States Federal Reserve, ...Read full article...

The Federal Reserve and Wall Street “Assassinate the US Dollar”

Since 2006, the US dollar has experienced a one-quarter to one-third drop in value to the Chinese yuan, depending on the choice of base. Now China is going to let the dollar decline further in value.  China also says it is considering undermining the petrodollar by pricing oil futures on the Shanghai Futures Exchange in yuan. This on top of the growing avoidance of the dollar to settle trade imbalances means ...Read full article...