Tuesday, April 8, 2014

IMF report: No end to economic breakdown - DID OBAMA'S CRONY BANKSTERS DESTROY THE GLOBAL ECONOMY?

IMF report: No end to economic breakdown

 
SOARING POVERTY IN AMERICA – soaring profits for banksters and Wall Street – IS IT OBAMANOMICS AT WORK?


IMF report: No end to economic breakdown

8 April 2014
Almost six years after the eruption of the global financial crisis, the International Monetary Fund has effectively ruled out any return to the economic growth rates that preceded September 2008.
Two major chapters of the IMF’s World Economic Outlook, published for the spring meetings to be held in Washington at the end of this week, provide a gloomy assessment of the state of the world economy. In the advanced economies, investment is falling as a proportion of gross domestic product (GDP), while in the “emerging markets,” there is no prospect for growth rates to return to pre-2007 levels.

The IMF notes that real interest rates have been declining since the 1980s and are “now in slightly negative territory.” But this has failed to boost productive investment. On the contrary, what it calls “scars” from the global financial crisis “have resulted in a sharp and persistent decline in investment in advanced economies.” Between 2008 and 2013, there was a two-and-a-half percentage point decline in the investment to GDP ratio in these countries. The report adds that ratios “in many advanced economies are unlikely to recover to pre-crisis levels in the next five years.”

This conclusion is of immense significance given the critical role of investment in the functioning of the capitalist economy. In what are deemed “normal” conditions, investment—the expansion of productive capacity—is the key driving force of capitalist economic growth. Undertaken in anticipation of future profits, investment creates new demand in labour markets and the markets for machinery, raw materials and the means of production in general. This, in turn, creates further demand and expanded profit opportunities, stimulating additional investment, thereby setting in motion a virtuous economic circle.

But if investment stagnates or declines, the circle turns vicious. This is what is now taking place.
As the IMF puts it: “An important concern is the possibility of a prolonged period of very low growth (‘secular stagnation’) in advanced economies, especially if new shocks were to hit these economies or if policies do not address crisis legacies as expected.”

The IMF writes gloomily that “the evidence … suggests that a full reversal of the downward investment shift in advanced economies is unlikely.” In other words, there is no prospect for a genuine economic recovery at any time in the foreseeable future.

The situation is no better in the “emerging markets,” once touted as the new basis for global capitalist expansion. According to the IMF: “The recent slowdown in emerging market and developing economies has caused much angst in policy circles.”

While these economies rebounded much more strongly in 2009–2010 than the advanced economies, growth decelerated thereafter and “is now significantly below levels recorded before the global financial crisis.”

During the period of rebound, talk of “decoupling” was all the vogue. But emerging markets and developing economies have proved to be highly sensitive to economic trends in the rest of the world.
The IMF found that of the two percentage point decline in emerging market growth rates since 2012, China accounted for half a percentage point, other external factors accounted for one-and-a-quarter percentage points, and other, mainly internal, factors accounted for only a quarter of a percentage point.

These economies are “likely to face a more complex and challenging growth environment than in the period before the global financial crisis, when most external factors were supportive of such growth,” the report states.

If interest rates in the US rise, even by only small amounts, then, as the financial turbulence in the summer of 2013 and at the beginning of this year showed, “emerging markets will suffer.” They will also be adversely affected by a slower growth rate in China.

This week’s IMF meetings have been preceded by warnings from the organisation’s managing director, Christine Lagarde, that the world faces “years of low and sub-par growth” unless countries come together to undertake the “right kind of policy measures.” But six years into the global breakdown, there is no clear indication of what those “right policies” might be—beyond deeper attacks on the conditions and social rights of the working class.

In the United States, Lagarde noted, job-creation is “not at potential.” With the latest figures indicating that US payrolls rose by only 192,000 in March, the numbers “could be and they should be higher,” Lagarde said. That they were not was due to uncertainty, a lack of confidence and “the fact that a lot of companies are investing into themselves more than actually investing into capacity and job-creation.”

Lagarde was referring to the fact that major US corporations are using their profits not to finance increased productive capacity, but to buy back shares and inflate stock prices to boost the fortunes of the financial elites.

Figures from the Commerce Department show that US corporate profits are at their highest levels in at least 85 years, while employee wages are sliding. The Commerce Department said that in 2013, wages accounted for 42.5 percent of the economy, down from 42.6 percent in 2012 and lower than in any year previously recorded.

Comparing the situation in 2013 with that in 2006, an article in the New York Times noted that after adjustment for inflation, corporate profits had increased by 28 percent, before taxes. But with taxes down by 21 percent, corporate after-tax profits increased by 36 percent over the past seven years. However, as the IMF figures show, this money is being used not to finance economic expansion, but to increase the incomes of the ultra-wealthy.

Together with the quantitative easing program of the Federal Reserve, which has made available trillions of dollars to the financial elites, the increasingly parasitic character of the US economy has boosted American and global stock markets.

Last week, the American S&P 500 index reached an all-time high, while the All World Index of equity markets compiled by the Financial Times reached its highest level since the end of 2007.
The IMF chief, who generally reflects the views of US finance capital, wants the program of quantitative easing (the printing of money by central banks to purchase securities from banks) extended into Europe. Last week, on the eve of a policy meeting of the European Central Bank (ECB), she called for the ECB to do more to stave off the threat of deflation.

Lagarde’s call came in the wake of figures showing that European prices rose at an annual rate of just 0.5 percent in March, with prices actually falling by 0.2 percent in Spain. This is well below the ECB’s target rate of 2 percent inflation. The concern over what Lagarde has called the “ogre of deflation” arises from the possibility of a deflationary spiral, such as that experienced in Japan, increasing the real debt burden of banks and other financial institutions.

Following the ECB meeting, the central bank’s president, Mario Draghi, said the bank’s governing council was “unanimous” in its commitment to looking at new policy initiatives, including purchases of financial assets. “There was a discussion about QE [quantitative easing], it wasn’t neglected,” he told reporters.
But in a sarcastic aside, he thanked the IMF for being “extremely generous in its suggestions” to him about monetary policy, far more than it is with the Fed. Lagarde shot back that the IMF also made recommendations to the Fed. “We do say what we have to say when we think it’s appropriate to say it,” she said, adding that the IMF had “for a long time taken the view that the ECB should be addressing the issue of inflation.”

The verbal shots fired across the Atlantic point to the growth of tensions between the major economic blocs as the capitalist breakdown continues. Unable to advance any solution to a series of mounting economic problems, the ruling elites do, however, agree on fundamental issues: that the interests of the banks and financial oligarchs must be defended, whatever the cost, and the working class must be made to pay for the crisis that their actions have triggered.

Nick Beams


On fifth anniversary of Wall Street crash, Obama tries the Big Lie technique


17 September 2013
 

On Monday, US President Barack Obama marked the fifth anniversary of the Wall Street crash of September 15, 2008 with a White House speech that only underscored the unbridgeable chasm that separates the entire political establishment from the broad mass of working people.

 
http://mexicanoccupation.blogspot.com/2013/09/crony-capitalism-obama-celebrates-5.html

 

Forbes magazine reported that the wealth of the 400 richest Americans had climbed to $2 trillion, a jump from $1.7 trillion in 2012.

Wealth of world’s billionaires doubles since 2009…under Obama Bankster donors’ profits AND crimes have soared. So has poverty for Americans (legals), foreclosures and the number of illegals that get our jobs and welfare! Almost 70% of all illegals receive some kind of welfare along with our jobs!


11 November 2013  

Even as workers in the US and other countries have seen their incomes plummet, the combined net worth of the world’s billionaires has doubled since 2009, according to a report published Tuesday by UBS and Wealth-X, a consultancy that tracks super-rich individuals.

 
WHY BILLIONAIRES LOVE OBAMA

 
more here:



In 2008, candidate Obama preached: "We need a president who will look out for the interests of hardworking families, not just their big campaign donors and corporate allies."… AND HE NEVER STOPPED LYING TO US OR LOOTING US ON BEHALF OF HIS WALL STREET BANKSTERS.
 

TOP ECONOMIC MELTDOWN

 
GLOBAL ECONOMIC MELTDOWN! THE GIFT of LOOTING THE ECONOMY FROM CRONY KING OBAMA and HIS CRIMINAL WALL STREET BANKSTERS… does he still call it “HOPE and CHANGE” or has Obama finally confessed to being BUSH’S THIRD and FOURTH TERMS???
 

http://mexicanoccupation.blogspot.com/2013/10/what-banksters-and-their-politicians.html

 

the figures are in on Obama’s looting of America for Wall Street!

STAGGERING POVERTY IN AMERICA CAUSED BY OBAMA, HIS CRONIES AND WALL STREET DONORS…AND THEN ILLEGALS GET THE JOBS!


http://mexicanoccupation.blogspot.com/2013/09/obamanomics-and-obamas-crony-capitalism.html

According to a new report by University of California Berkeley Professor Emmanuel Saez, the gulf between the wealthy and the rest of society has sharply expanded under Obama. The richest one percent now monopolize more than 22 percent of all household income in America. The richest ten percent of the population now control more than half of the nation’s income, 50.4 percent—the highest proportion since the government began collecting income statistics in 1917.

Since 2009, the richest one percent has captured a staggering 95 percent of all income gains. The class war policies of the government—including bank bailouts, “quantitative easing” and an attack on wage and benefits for the working class—have led to a 31.4 percent rise in income for the top one percent. The wealthy have more than recovered the losses that came from the Wall Street collapse of 2008.

Meanwhile, the bottom 99 percent has seen a negligible 0.4 percent rise in income. Tens of millions of workers—who never recovered from the record household income drop of 2007 to 2009—continue to reel from the effects of mass job losses, falling wages, home foreclosures, indebtedness and social service cuts.


THE LOOTERS: OBAMA and his CRIMINAL CRONY BANKSTERS…. their looting only gets better by the day!

Democracy in America and around the world is collapsing under the weight of immense and ever-growing levels of social inequality, bound up with the domination of a financial mafia that uses its political power to enrich itself at the expense of society. Congress, the White House, the courts, the regulators, the Democrats and Republicans are all subservient to this financial aristocracy.



THE OBAMA and WALL STREET ASSAULT ON AMERICA… YOUR CITY IS NEXT!
This report is another example of the obscene concentration of wealth in America that has raised inequality to a level not seen in more than a century. Wages for workers in the United States are at their lowest level since the 1950s.

more at this link – post on your Facebook and email broadcast

 
Income inequality grows four times faster under Obama than Bush
The study noted that, in the aftermath of the Great Depression, the US undertook policies “during the New Deal [that] permanently reduced income concentration until the 1970s.” In contrast, the study noted a striking absence of any measures to reign in social inequality in the present crisis. Far from it, the Obama administrations’ bank bailouts, austerity program and wage-cutting policies have vastly expanded the prevalence of social inequality.

REALITY of HOPE & CHANGE…. will we survive Wall Street’s ongoing looting?
State of the Union: A bankrupt ruling class talking to itself
30 January 2014
President Barack Obama’s State of the Union speech was a cynical propaganda piece, filled with fraudulent claims and promises that no one, least of all his audience at the US Capitol, believes in the slightest.


With Obama’s speech Tuesday night one had more than ever the sense of the president as chief representative of the financial aristocracy that rules America, speaking to a house filled with millionaire congress members and bought-and-paid-for representatives of big business.


The OECD’s “Society at a Glance” report: a portrait of a failed system

Particularly devastating are the figures relating to the United States, the center of world capitalism, the heart of the financial crisis and the “richest country in the world”—in which poverty, hunger and social inequality have grown more than nearly any other country surveyed.


REBUILDING THE AMERICAN MIDDLE CLASS… looted by Wall Street and Mexico!

… or should we keep building the LA RAZA welfare state in our borders?


Look around yourself… how many Mexicans are in our jobs?

THERE ARE NOW MORE MEXICANS LOOTING IN OUR BORDERS than AMERICANS (Legals) UNEMPLOYED!



"They hauled them down to the border," Sakuma said. "Three days later, they were standing in our office, but they had a different name and a different Social Security number."


INEQUALITY IN AMERICA: HOW DEMS HAND OVER BLUE STATES TO LA RAZA – BUILDING THE MEX WELFARE STATE IN OUR BORDERS… they already get our jobs!


THE OBAMA and WALL STREET ASSAULT ON AMERICA… YOUR CITY IS NEXT!

This report is another example of the obscene concentration of wealth in America that has raised inequality to a level not seen in more than a century. Wages for workers in the United States are at their lowest level since the 1950s.

more at this link – post on your Facebook and email broadcast


Income inequality grows four times faster under Obama than Bush


The study noted that, in the aftermath of the Great Depression, the US undertook policies “during the New Deal [that] permanently reduced income concentration until the 1970s.” In contrast, the study noted a striking absence of any measures to reign in social inequality in the present crisis. Far from it, the Obama administrations’ bank bailouts, austerity program and wage-cutting policies have vastly expanded the prevalence of social inequality.


REALITY of HOPE & CHANGE…. will we survive Wall Street’s ongoing looting?

State of the Union: A bankrupt ruling class talking to itself

30 January 2014

President Barack Obama’s State of the Union speech was a cynical propaganda piece, filled with fraudulent claims and promises that no one, least of all his audience at the US Capitol, believes in the slightest.


With Obama’s speech Tuesday night one had more than ever the sense of the president as chief representative of the financial aristocracy that rules America, speaking to a house filled with millionaire congress members and bought-and-paid-for representatives of big business.

OBAMA EXPANDS BACKDOOR AMNESTY TO KEEP WAGES DEPRESSED FOR HIS PAYMASTERS


FROM JUDICIAL WATCH:

March 04, 2014                                  

Besides blowing off congress to give illegal immigrants backdoor amnesty, the Obama administration is also letting businesses that hire undocumented workers off the hook by drastically reducing fines and enforcement, a new federal audit reveals.

THE MEXICAN TAX-FREE UNDERGROUND ECONOMY IN LOS ANGELES COUNTY ALONE IS CALCULATED TO BE IN EXCESS OF $2 BILLION PER YEAR!

HERITAGE FOUNDATION: OBAMA’S AMNESTY WOULD ADD 100 MORE ILLEGALS AND COST AMERICANS (Legals) BILLIONS AND BILLIONS

the staggering cost of Mexico’s looting:

 
Obama’s plan for long-term jobless: A teaspoon to bail out the ocean
By Patrick Martin
1 February 2014 
The heavily publicized meeting between President Obama and several hundred corporate CEOs and other business leaders will do little or nothing to alleviate long-term unemployment. Those out of work for six months or more, the nominal beneficiaries of the effort, are only slightly more likely to get a job thanks to the Obama administration than they are to be struck by lightning.
 
AMERICA…. NO LEGAL NEED APPLY!!!
JOBS – THE REALITY THEY DON’T WANT US TO KNOW… only illegals get them!
WORST JOB MARKET IN 40 YEARS… and getting worse!
AMERICA’S YOUTH TURN ON THE “HOPE & CHANGE” GUY…. in massive numbers!
 “Slowly, Mr. Obama has changed the United States into another country — the Soviet States of America — an authoritarian state where false promises of "hope and change" were used to manipulate the public.”



THE DEATH OF THE AMERICAN MIDDLE CLASS

OBAMA’S WALL STREET DRIVE CRONY CAPITALISM


The Great Recession should have put the victim-blaming theory of poverty to rest. In the space of only a few months, millions of people entered the ranks of the officially poor—not only laid-off blue-collar workers, but also downsized tech workers, managers, lawyers, and other once-comfortable professionals. No one could accuse these “nouveau poor” Americans of having made bad choices or bad lifestyle decisions. They were educated, hardworking, and ambitious, and now they were also poor—applying for food stamps, showing up in shelters, lining up for entry-level jobs in retail. This would have been the moment for the pundits to finally admit the truth: Poverty is not a character failing or a lack of motivation. Poverty is a shortage of money.

HOPE and CHANGE and endless lies and con jobs as his WALL STREET DONORS’ LOOTING of AMERICA CONTINUES!

Having presided for the past five years over an unprecedented growth of social inequality, President Barack Obama, down in the polls because of popular indignation over his fraudulent health care “reform,” adopted the unlikely pose of tribune of egalitarian values in a speech on Wednesday at the pro-Democratic Party Center for American Progress in Washington DC.


http://mexicanoccupation.blogspot.com/2013/12/the-bankster-owned-president-for-1.html 

In typical fashion, Obama decried the growth of inequality in America as though he were an innocent bystander and had absolutely no role in the process he was criticizing. The most remarkable aspect of the speech was the contempt for the intelligence of the American people it expressed.

 



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