THE CRONY CLASS:
OBAMA-CLINTONomics was created by BILLARY CLINTON!
Income inequality grows FOUR TIMES FASTER under Obama than Bush.
“By the time of Bill Clinton’s election in 1992, the Democratic Party had completely repudiated its association with the reforms of the New Deal and Great Society periods. Clinton gutted welfare programs to provide an ample supply of cheap labor for the rich (WHICH NOW MEANS OPEN BORDERS AND NO E-VERIFY!), including a growing layer of black capitalists, and passed the 1994 Federal Crime Bill, with its notorious “three strikes” provision that has helped create the largest prison population in the world.”
The significance of the Chinese stock market rout
8 July 2015
The ongoing fall of the Chinese stock market, despite strenuous efforts by government and financial authorities to bring it to a halt, has major economic and political implications, both within China and globally.
Yesterday, Chinese stocks again fell, with the Shanghai Composite Index down by 1.3 percent and the Shenzen Composite losing 5.3 percent. Today, Shanghai opened down 8 percent before the losses were cut back to 4.7 percent by midday. Shenzen also lost 3.3 percent. Even more significant was the announcement that trading in 1,476 stocks—more than 50 percent of all listed companies on China’s two principle exchanges—had been suspended, freezing $2.6 trillion worth of equity.
The further declines this week have come in the wake of emergency meetings over the weekend between Chinese Premier Li Keqiang and banking officials and financial regulators. As a result of their deliberations, the central bank was given authority to provide virtually unlimited liquidity to China Securities Finance, a state entity, to finance brokerage houses and uphold “market stability.” So far, the emergency measures have proved to be of no avail.With China now the world’s second largest economy—the largest according to some measures—and the source of at least 30 percent of global economic growth, there are rising concerns that the fallout from the stock market plunge will spread to the rest of the economy and impact the world at large. Significantly, copper price futures dropped to their lowest level since 2009 yesterday, after falling 8.4 percent during the past two days.
“Doctor Copper,” as it is sometimes called within financial circles, is regarded as a key economic indicator. As the world’s major manufacturing centre, China is the largest consumer of the metal. Iron ore and oil prices have also fallen on the back of the stock market crash.
The roots of the stock market crisis lie not in the Chinese economy as such, but in the breakdown of the global capitalist system that began with the financial meltdown of 2008.
Its impact on China was immediate. With the collapse of world trade in the latter part of 2008 and the early months of 2009—at one point, the rate of decline was on par with that experienced in the early 1930s—Chinese exports plunged, leading to the loss of 23 million jobs.
Confronting a potentially explosive social crisis, the Chinese regime responded with a $500 billion stimulus package, coupled with a massive expansion of credit to local government authorities to undertake infrastructure projects and real estate development. New urban complexes and, in some cases, virtually entire cities, sprang up almost overnight. The regime entertained the hope that the world economy was experiencing a cyclical downturn and the previous expansion would resume.
But the events of 2008 marked the end of the conditions that, over the previous two decades, had enabled ever-expanding exports into the markets of Europe and the United States to power Chinese growth. Today, expanding exports contribute very little to China’s economic growth.
For a time, expanding credit-fuelled infrastructure and real estate development boosted the Chinese economy, sustaining its expansion at, or near, the pre-2008 rates. This prompted the claim by short-sighted economic pundits that, despite the financial collapse, capitalism had yet again demonstrated its inherent resilience, because China, along with other so-called emerging markets, would provide a new basis for global growth. This prognosis was rapidly exposed, and is now officially acknowledged by the International Monetary Fund and other global economic authorities to have been a chimera.
The Chinese government recognised that the structure of the economy, in which investment, backed by credit, comprised around 50 percent of gross domestic product (GDP), while consumption spending accounted for barely 35 percent, was ultimately unviable.
Consequently, in 2013, the regime initiated a new economic orientation, declaring that henceforth market forces would play an even more “decisive role.” Setting out his agenda in November 2013, at a major meeting of the Communist Party leadership, President Xi Jinping, who had come to power the previous March, declared: “We must deepen economic system reform by centering on the decisive role of the market in allocating resources…”
The new orientation was comprised of two key components: lessening state intervention and controlling the financial system, which would increasingly be opened up to international capital flows; and lifting the level of consumption spending in the domestic Chinese economy.
An obvious way to boost domestic spending would be to increase the wages of the multi-millioned Chinese working class. But this road was closed off by the competitive struggle on global capitalist markets.
Any significant rise in workers’ wages would mean that Chinese manufacturing firms, which operate on low profit margins as they carry out contracts for major US- and European-based transnational corporations, would be priced out of the markets by cheaper investment sites in Southeast Asia, such as Vietnam. With the suppression of American wages under the Obama administration, Chinese firms even face competition from the United States, which has, itself, become a cheap labour site.
For this reason, the regime, which rules in the interests of the oligarchs who dominate the upper echelons of the Chinese Communist Party, sought to boost consumption spending by another route. It set out to create a “wealth effect,” by encouraging privileged sections of the middle class to invest in the stock market. It lured small investors into the market with the implicit guarantee that the Chinese government, its hands firmly in control of the levers of the financial system, would secure their investments.
The result was a flood of money into the stock market, lifting the Shanghai index by more than 150 percent in the year before it reached its peak on June 12. Much of this investment was provided through margin loans, in which the shares purchased by investors provide the collateral for the loans they receive, with the proviso that a portion of the debt will have to be repaid if the shares lose a certain amount of value.
These loans boost the market during an upswing but exacerbate any fall, with investors confronted by margin calls having to sell some of their shares to meet their debts, thereby creating a downward spiral.
Last April, with margin loans roaring ahead—this form of debt increased five-fold in the year to June, comprising, at one point, 17 percent of market capitalisation—the government poured more petrol on the flames, allowing individual investors to open as many as 20 stock trading accounts.
The result was a further spurt in share values. Confronting a massive financial bubble, the government initiated a crackdown on margin lending on June 13, setting in motion the present sell-off. The decision to rein in margin lending was premised on the assumption that, with its wide-ranging powers, the government could control the situation and gradually let air out of the bubble.
But the laws of the capitalist market have proven to be stronger than even the most powerful regime. The Chinese government now confronts a runaway plunge, threatening to destabilise the entire debt-ridden financial system. Local government authorities alone are estimated to have some $4 trillion in outstanding loans.
The meltdown has potentially explosive political consequences. Having lost all claim to stand for social equality, let alone represent socialism, the “red capitalists” of the Chinese Communist Party live in mortal fear of an eruption of social and political struggles by the Chinese working class.
Now, as the Chinese economy slows—GDP growth may fall below the official target of 7 percent, and possibly to as low as 4 percent—that prospect looms ever larger, even as the social constituency on which the CCP sought to base itself becomes increasingly hostile and the façade of the regime’s “infallibility” is shattered.
The financial crisis in China will lead not only to a further slowdown in global economic growth, intensifying the struggles of the international working class, it will create the conditions for those struggles to be joined by one of its most powerful battalions.
Nick Beams
JUDICIAL WATCH:
OBAMA
RANKS AS THE MOST CORRUPT PRESIDENT IN MODERN AMERICAN HISTORY
BARACK
OBAMA and the DEATH of the AMERICAN MIDDLE-CLASS.
RASMUSSEN POLL: Hillary Clinton is a bad clone of Barack
Obama owned by the same bankster paymasters as Obama
CRONY CAPITALISM and the FALL of A DEMOCRATIC NATION
OBAMA’S LOOTING BANKSTERS AGREE TO FUND HIS
DICTATORSHIP…. They owned him from day one!
“The
vast sums of money pocketed by bank executives are bound up with activities
that range from borderline legal to flagrantly illegal. Nearly all of the CEOs
included on the list head banks that have been the subject of multiple
investigations and fines related to the rigging of global interest and foreign
exchange rates, mortgage fraud, money laundering, tax evasion and other crimes.”
OBAMA-CLINTONomics:
CEO PAY 300 TIMES GREATER
THAN WORKERS….
AMNESTY WILL MAKE THOSE FIGURES SOAR HIGHER!
AMNESTY WILL MAKE THOSE FIGURES SOAR HIGHER!
“Historically
speaking, the rise in CEO compensation is tied to the global decline of
American capitalism and the increasing financialization of the economy. In 1965
the ratio of CEO to worker pay was 20 to 1. By 1978 the ratio had only grown to
30 to 1. It was only in the 90s that CEO pay reached absurd heights, rising
from 59 to 1 in 1989 to 376 to 1 in 2000.”
“In 2014 the
Russell Sage Foundation found that between 2003 and 2013, the
median household net worth of those in the United States fell from $87,992 to
$56,335—a drop of 36 percent. …While the rich also saw their wealth drop
during the recession, they are more than making that money back. Between
2009 and 2012, 95 percent of all the income gains in the US went to the top 1
percent. This is the most distorted post-recession income gain on record.”
median household net worth of those in the United States fell from $87,992 to
$56,335—a drop of 36 percent. …While the rich also saw their wealth drop
during the recession, they are more than making that money back. Between
2009 and 2012, 95 percent of all the income gains in the US went to the top 1
percent. This is the most distorted post-recession income gain on record.”
OBAMA-CLINTONomics: the final death of the
American middle-class
AMNESTY:
IT’S ALL ABOUT KEEPING WAGES DEPRESSED.
"While it is
not spelt out directly, the BIS critique of the present policies is an
expression of the fact that, in the final analysis, the source of all forms of
profit is the surplus value extracted from the working class. Therefore, the
only way for capital to overcome its crisis and restore stability is a massive
increase in exploitation."
While the growth of social inequality has dramatically accelerated following the 2008 crash, this is a continuation of a decades-long process. The report notes, “Top 1 percent incomes grew by 80.0% from 1993 to 2014. This implies that top 1 percent incomes captured almost 60% of the overall economic growth of real incomes per family over the period 1993-2014.”
In fact, the US government’s response to the 2008 crash has been dedicated to inflating the wealth of the super-rich while driving down incomes for the vast majority of the population. The White House has protected Wall Street executives from legal prosecution, while the Federal Reserve has handed out trillions of dollars in cheap money through “quantitative easing” programs, leading share values to triple on major US exchanges.
On Thursday, US President Barack Obama plans to unveil what he has called a major new policy initiative in a speech in La Crosse, Wisconsin. The proposal entails new federal rules that would make an additional 3 percent of the US population eligible for overtime pay. If adopted, the change would add a mere $1.3 billion to worker’s wages annually. This is a tiny fraction of the trillions of dollars that have been transferred to the financial elite since the 2008 financial crisis.
THE
MAN THAT CALLED HIS HOAX “HOPE & CHANGE”
'Incompetent' and 'liar' among most frequently used words to
describe the president: Pew Research Center
OBAMA: SERVANT OF THE 1%
Richest one percent controls nearly half of global wealth
The richest one percent of the world’s population now controls 48.2 percent of global wealth, up from 46 percent last year.
The report found that the growth of global inequality has accelerated sharply since the 2008 financial crisis, as the values of financial assets have soared while wages have stagnated and declined.
OBAMA’S CRONY BANKSTERS DESTROY THE GLOBAL ECONOMY
OBAMANOMICS:
The escalation of global financial parasitism
OBAMAnomics:
OBAMA AND HIS WALL STREET CRONIES LOOTING AMERICA!
These are only the most striking of a barrage of numbers reported in
recent weeks, demonstrating that for the US financial aristocracy, the Crash of
2008 has been used to engineer a historic redistribution of wealth.
Sen. Bernie Sanders – America’s answer to
Wall Street’s looting, the war on the American middle-class and jobs for
legals!
“At this point, Clinton is the choice of most
multimillionaires to be the next occupant of the White House. A recent CNBC
poll of 750 millionaires found 53 percent support for Clinton in a contest with
Republican Jeb Bush, 14 points better than Obama’s showing in the 2012 election
with the same group.”
AMERICAN
BANKS and the CATASTROPHIC DEATH OF AMERICA
The
2008 crash and subsequent developments have revealed certain fundamental
realities about American society. All of the official institutions, including
the presidency, the courts, Congress and the financial regulators, have worked
single-mindedly to shield the banks and the financial elite and enable them to
grow even richer.
THE OBAMA ASSAULT
ON OUR PENSIONS
BIGGER PROFITS FOR
HIS WALL STREET DONORS IF PENSIONS ARE SLASHED
“Feinberg, who as the
Obama administration’s “pay tsar” rubber-
stamped multimillion-dollar executive bonuses to Wall Street
banks bailed out with taxpayer funds, will now be given power to
slash workers’ benefits at his discretion.”
stamped multimillion-dollar executive bonuses to Wall Street
banks bailed out with taxpayer funds, will now be given power to
slash workers’ benefits at his discretion.”
OBAMA-CLINTONomics:
the never end war on the American middle-class. But we still get the tax bills
for the looting of their Wall Street cronies and their bailouts and billions
for Mexico’s welfare state in our borders.
While the wealth of
the rich is growing at a breakneck pace, there is a stratification of growth within
the super wealthy, skewed towards the very top.
In 2014, those with over $100 million in private wealth saw
their wealth increase 11 percent in one year alone. Collectively, these
households owned $10 trillion in 2014, 6 percent of the world’s private wealth.
According to the report, “This top segment is expected to be the fastest
growing, in both the number of households and total wealth.” They are expected
to see 12 percent compound growth on their wealth in the next five years.
In 2014 the
Russell Sage Foundation found that between 2003 and 2013, the median household
net worth of those in the United States fell from $87,992 to $56,335—a drop of
36 percent. While the rich also saw their wealth drop during the recession,
they are more than making that money back. Between 2009 and 2012, 95 percent of
all the income gains in the US went to the top 1 percent. This is the most
distorted post-recession income gain on record.
Richest one percent controls nearly half of global wealth
The richest one percent of the world’s population now controls 48.2 percent of global wealth, up from 46 percent last year.
The report found that the growth of global inequality has accelerated sharply since the 2008 financial crisis, as the values of financial assets have soared while wages have stagnated and declined.
He’s got WALL STREET’S BIGGEST CRIMINALS
PUMPING MONEY INTO THE CLINTON – JEB BUSH MACHINES!!!
HILLARY CLINTON – SERVANT of the
1%, her FIRST FAMILY of CRIME, MUSLIM DICTATORS and the MEXICAN FASCIST PARTY
of LA RAZA…. can we really afford more OBAMANOMICS?
THE CRONY CLASS:
OBAMA-CLINTONomics was created by BILLARY CLINTON!
Income inequality grows FOUR TIMES
FASTER under Obama than Bush.
“By the time of Bill Clinton’s election in 1992, the
Democratic Party had completely repudiated its association with the reforms of
the New Deal and Great Society periods. Clinton gutted welfare programs to
provide an ample supply of cheap labor for the rich (WHICH NOW MEANS OPEN
BORDERS AND NO E-VERIFY!), including a growing layer of black capitalists, and
passed the 1994 Federal Crime Bill, with its notorious “three strikes”
provision that has helped create the largest prison population in the world.”
*
“Calling income and wealth inequality the "great
moral issue of our time," Sanders laid out a sweeping, almost unimaginably
expensive program to transfer wealth from the richest Americans to the poor and
middle class. A $1 trillion public works program to create "13 million
good-paying jobs." A $15-an-hour federal minimum wage. "Pay
equity" for women. Paid sick leave and vacation for everyone. Higher taxes
on the wealthy. Free tuition at all public colleges and universities. A
Medicare-for-all single-payer health care system. Expanded Social Security
benefits. Universal pre-K.” WASHINGTON
EXAMINER
JOBS 71% GO TO FOREIGNERS.
Report: 71 Percent of New Jobs Go to Foreign
Born Legal, Illegal Immigrants in NH | CNS News …. THE AMERICAN MIDDLE CLASS
STILL GETS THE TAX BILLS FOR MEXICO’S CRIMES AND WELFARE STATE IN OUR OPEN BORDERS!
While the growth of social inequality has dramatically accelerated following the 2008 crash, this is a continuation of a decades-long process. The report notes, “Top 1 percent incomes grew by 80.0% from 1993 to 2014. This implies that top 1 percent incomes captured almost 60% of the overall economic growth of real incomes per family over the period 1993-2014.”
In fact, the US government’s response to the 2008 crash has been dedicated to inflating the wealth of the super-rich while driving down incomes for the vast majority of the population. The White House has protected Wall Street executives from legal prosecution, while the Federal Reserve has handed out trillions of dollars in cheap money through “quantitative easing” programs, leading share values to triple on major US exchanges.
On Thursday, US President Barack Obama plans to unveil what he has called a major new policy initiative in a speech in La Crosse, Wisconsin. The proposal entails new federal rules that would make an additional 3 percent of the US population eligible for overtime pay. If adopted, the change would add a mere $1.3 billion to worker’s wages annually. This is a tiny fraction of the trillions of dollars that have been transferred to the financial elite since the 2008 financial crisis.
JOBS
OBAMA-CLINTONOMICS:
Keep wages depressed with endless hordes of illegals jumping our borders, jobs
and welfare lines!
“But any serious
look at the latest figures reveals why Jim Clifton, head of the Gallup polling
agency, has denounced the official unemployment rate as a “big lie” that
largely ignores the continued prevalence of mass unemployment in the United
States.”
“Obama’s trivial proposal
on overtime pay is in line with the record of his entire presidency, which has
sought to impose the full cost of the global capitalist crisis on the backs of
the working class, while doing everything possible to protect and expand the
wealth of the financial oligarchy that controls political life in the United
States.”
Barack
Obama… the man that conned a nation and still called it “CHANGE”… but was only
Bush’s 3rd & 4th terms.
THE YEAR WAS 2009…
At the town hall in New Orleans, Obama appealed for patience. He said, “Change is hard, and big
change is harder.” Is that the excuse? Now where have I heard that before? Oh,
yeah. From George Bush.
OBAMA’S WALL
STREET and the LOOTING of AMERICA – SECOND TERM
The corporate cash hoard has likewise reached
a new record, hitting an estimated $1.79 trillion in the fourth quarter of last
year, up from $1.77 trillion in the previous quarter. Instead of investing the
money, however, companies are using it to buy back their own stock and pay out
record dividends.
Megan McArdle Discusses How America's
Elites Are Rigging the Rules - Newsweek/The Daily Beast special correspondent
Megan McArdle joins Scott Rasmussen for a discussion on America's new Mandarin
class.
PATRICK
BUCHANAN: OBAMA’S ASSAULT ON AMERICA
BEGINS AT OUR BORDERS
No comments:
Post a Comment