Michael Hudson’s New Book: Wall Street Parasites Have Devoured Their Hosts — Your Retirement Plan and the U.S.
AAV:/ Fiscal Multiplication explained http://anotherangryvoice.blogspot.com/2012/10/what-is-fiscal-multiplication-explained.html?spref=tw
Money is not only the life-blood of the economy – but of society. As a means of exchange it allows constructive work to be done and legitimate needs to be met. In exchange for work, the worker receives money which he then uses to pay for shelter, food and taxes to the government which enables the government to do its work. Additional income supports many shops and manufacturers as he buys clothes and a car. Don’t pay the worker – and why should he work? He doesn’t have money to furnish his needs and becomes desperate. The government receives no taxes, people who provide services and produce cannot earn, and society grinds to a stop.
Money in the workers hand keeps society functioning. Draining money out of the economy has the opposite effect. Five people earning £20k will spend all that money in the local economy, supporting business. One person earning £100k will not be spending it in the local economy, but likely stashing most of it in tax-exempt off-shore accounts. The local economy is shrunk by the amount of money drained from it.
Low paid or no-paid workers have no money to spend, again starving the local economy.
Customers buying imported goods are draining money overseas.
Migrant workers, sending most of their money home are draining the local economy.
Customers spending in non-tax paying multi-nationals and not local firms are draining money out of their local economy.
The governments excessive taxes, especially when they are not re-invested in providing local services (which returns money to people to spend, supporting business) are another drain.
Governmental apathy in the face of off-shoring jobs are draining the economy.
It is simple economics. A child could understand it, so it is not credible that our government with all the expertise at their disposal, doesn’t. So why have they deliberately adopted policies which are not only damaging to the economy but very destructive for the population?
The direction of these policies is to strip the wealth from everyone in society into the pockets of the elite, while reducing most of us to slavery. A glance at the history books or even a newspaper would confirm that governments which attack, abuse and enslave their populations are not rare.
It has happened before. It has happened elsewhere. And there is no reason why Western democracies should be exempt.
To protect ourselves we need to challenge the government’s lies and use every legitimate device to hold them to account.
Scapegoating the unemployed, the ill and elderly for the situation our governments have deliberately brought about, is despicable.
None of us voted for serfdom. Nobody needs a class of overlords. Kings and aristocracy are historically redundant. Let it stay that way.
“Labour economics used to be easy,” lamented David Blanchflower in Monday’s Independent. He continued:
All you had to do was watch the unemployment rate and that told you most of everything. As it went up things were bad and pay weakened. When the unemployment rate fell that meant the economy was getting better and that meant pay rises. Low unemployment meant big pay rises. High unemployment meant smaller rises. Simple.
But, over the past few years, falling unemployment hasn’t led to higher wages in the UK or the US. If anything, wages have continued to fall as employment has picked up.
The picture is even stranger when you look at skills. Employers have been talking about skills shortages for some time now. Earlier this week, the UK Commission for Education and Skills (UKCES) published a paper saying that Britain is already facing a skills challenge and that the country will need 2…
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We were ruminating recently upon Murphy and his well-known law, one that like Obamacare, Congress will not repeal regardless of rhetoric. Unlike Obamacare thoug, Murphy’s is a simple law: “What can happen, will happen.” That seems built into our universe and surely ought to be found in the Old Testament somewhere. But we search in vain for the Book of Murphy. His law is nonetheless if not Holy Writ, physically and statistically inescapable. We have been thinking about what that means.
First, as we wrote recently, we noted that the American stock market reflects in its prices, nearly double the market value of the enterprises property, products and markets listed therein. Some half the stock market’s value then, is emotion, or air or hokum or however you wish to characterize it. Such vacuoles are renowned for their tendency to collapse unexpectedly. That is rather like the unexpectedness of a blind…
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We have read in the last few days, that the world’s billionaires are buying up a lot of gold bars and now, that they are hoarding cash. We add to that: “He wo has eyes to see, let him see.”
In 1933, President Roosevelt closed the failing banks for a “bank holiday” that left a lot of people scrambling. In 2008 President Bush covered the failing banks with Fed cash via the “TARP” program; he didn’t therefore have to close them. But next time, since we’ve already overused that gambit, it won’t be available. So the availability of banking shouldn’t be taken for granted these days as the billionaires are, by example, advertising.
It is beginning to seem wise to have some cash on hand, a couple of weeks’ worth at tleast. Unadvertised, of course in these days of home invasions. Given that we can’t expect to earn any useful…
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There are two opposing theories of globalisation. The one which monopolises most of the debate tells of a Utopian future where dismantling of the nation states and enabling free movement of labour will usher in a new age of peace (no nations to wage war) and everyone’s human needs being met. The alternative view suggests that dismantling national borders, and permitting free movement of labour will result in astonishing wealth for the ruling oligarchs, while everyone else works for a bowl of rice. It is astonishing that the first theory holds any credibility when all the historical and contemporary evidence demonstrates that free market capitalism produces huge profits for the few and grinding poverty for the many.
“The Global Class War” by Jeff Faux is one of the best and most readable books on the subject on the current changes from nation-based democracies to – we know not what. Those who are engineering the changes presumably know where we are being driven, but for the passengers it is a bit of a mystery tour. We’ll find out when we get there. And by then it might be too late to say – well no, actually, I didn’t vote for this.
Faux is American, so his book is written from an American standpoint. Non Americans may be baffled by the early chapters with their emphasis on American politics. But don’t be put off. What is happening in America is broadly the same as what is happening in Britain, Australia and Europe. The rest of the book gives a realistic appraisal of the political and economic changes we have been undergoing, and suggests where they might be leading – and why.