WALL STREEET PLUNDERS AND JOE BIDEN ORCHESTRATES THE LOOTING

 

The Fed's Urgent WARNING: Prepare for Economic Collapse

https://www.youtube.com/watch?v=GYUFoejo63I

The Biden administration is leading the campaign to deny economic reality just as it is on COVID. At a press conference after the GDP figures were announced, Yellen said economists and most Americans had a definition of recession that included job losses and mass layoffs, private sector activity slowing considerably and “family budgets under immense strain,” and that is “not what we’re seeing right now.”

JOE BIDEN’S ‘GREEN AMERICA’ WHICH TRANSLATES TO MASSIVE PROFITS FOR BIG OIL. IT’S BIDENOMICS UP CLOSE!

https://mexicanoccupation.blogspot.com/2022/06/corporatist-joe-biden-and-bid-oil.html

The top 25 oil corporations made a combined $205 billion in profits in 2021. Since the beginning of 2022, the five largest oil companies—Shell, ExxonMobil, BP, Chevron and ConocoPhillips—have enjoyed a 300 percent increase in profits over the first quarter of 2021. ConocoPhillips, for example, earned profits of $4.3 billion between January and March, an increase of 375 percent over the previous year.

VIDEO

Ralph Nader: Biden's First Year Proves He Is Still a "Corporate Socialist" Beholden to Big Business

https://www.youtube.com/watch?v=2jTIUtjkDss&t=28s

 

Hauser also didn’t like the prevalence of Big Law talent on the Department of Justice team, which signaled to him that the Biden administration could go soft on corporate malefactors. Alexander Nazaryan

 

In an effort to burnish her “left” credentials in sections of the Democratic party, Senator Elizabeth Warren wrote an op-ed piece in the WSJ this week that partially lifted the lid on what is really taking place.

She noted that the aggressive rate hikes by the Fed are largely ineffective against the inflation spike and warned that the interest rate hikes were aimed at “dampening demand.” If the Fed hiked too much or too abruptly, she wrote, “the resulting recession will leave millions of people… with smaller paychecks or no paycheck at all.”

Warren pointed to the remarks of former Democratic treasury secretary Lawrence Summers, who recently told the London School of Economics: “We need five years of unemployment above 5 percent to contain inflation—in other words, we need two years of 7.5 percent unemployment or five years of 6 percent unemployment or one year of 10 percent unemployment.”

But always anxious to ensure that the working class remains corralled within the confines of the Democratic party, Warren praised the actions of the Biden administration and said it recognised that the US had “many tools for fighting inflation that wouldn’t make the economy smaller and Americans poorer.”

Such claims ignore two facts: that the limited measures of the administration will do little or nothing to bring down prices, and that Biden has declared he stands four-square behind the actions of the Fed.

Elizabeth Warren Seemingly Blames ‘Big Corporations’ for Current State of Economic Affairs

JOSEPH PREZIOSO/AFP via Getty

HANNAH BLEAU

29 Jul 20220

2:21

Sen. Elizabeth Warren (D-MA) is setting her focus on “big corporations” rather than Democrat policies as Americans grapple with 41-year high inflation and experience two consecutive quarters of negative economic growth.

“It’s time for Congress to do its part to get our economy on a sounder footing, and the Inflation Reduction Act would do exactly that—bringing down costs for families and stopping giant corporations with massive profits from skipping out on the bill at tax time,” Warren said on Thursday:

She followed up with a similar sentiment on Friday, placing the blame on “big corporations” in a tweet to her 6 million Twitter followers.

“When giant corporations have all the power, they wriggle their way out of paying taxes. They gobble up smaller competitors. They jack up prices just because they can. I’m fighting to put power in the hands of working people, where it belongs—and I’m in this fight all the way,” she added:

Warren’s remarks coincide with news of the U.S. Gross Domestic Product (GDP) shrinking 0.9 percent in the second quarter this year, marking two consecutive quarters of negative economic growth under Democrat leadership — a reality many use as a marker for a recession:

The economy contracted by 1.6 percent in the first quarter. Many Americans consider two straight quarters of recession to be the marker of a recession. Economists, however, rely on the determination of the National Bureau of Economic Research (NBER) to say when a recession starts. The NBER has a more complex and subjective definition of recessions and typically does not declare a recession until several months after it has begun.

Like President Biden, Warren appears to be wilfully ignoring the impact Democratic policies have had on the economy during their reign in Washington, DC, over the last year and a half — from dismantling American energy independence to spending trillions of dollars:

This is not the first time the Massachusetts Democrat has rerouted blame for the current state of economic affairs. Earlier this month, Warren blamed 41-year high inflation on Russian President Vladimir Putin, the coronavirus, and corporate monopolies:

US economy starting to move into recession

Nick Beams

29 July 2022

The US economy has taken another significant step towards recession with economic output contracting for the second quarter in a row, a situation often referred to as a “technical recession.”

When the first quarter results were released, they were generally passed off as having no real significance, the result of a statistical aberration. But the latest data indicate they were the start of a trend.

The Wall St. street sign is framed by the American flags flying outside the New York Stock exchange, Friday, Jan. 14, 2022, in the Financial District. (AP Photo/Mary Altaffer)

The official definition of a recession in the US is determined by the National Bureau of Economic Research (NBER) and it will not make a determination for some time. But whatever it decides, the data for the last two quarters indicate a significant slowdown over the past six months. In the December quarter of 2021, the US economy was growing at an annualised rate of 6.9 percent.

Breaking down the data, there were a number of results which point to the underlying trends. Consumer spending, which accounts for around two thirds of total economic output, grew by only 1 percent for the quarter, down from the 1.8 percent increase in the first. Consumer spending growth is now at its lowest rate since the start of the pandemic.

Real wages are falling, with real disposable income falling by 0.5 percent for the quarter, the fifth straight quarterly fall.

The biggest drag on growth was the drop in business inventories, which cut 2 percent off the headline result. Earlier, Walmart, America’s biggest retailer, reported that it was cutting prices in a bid to clear out inventories that had built up because of falling demand. Business investment was also down.

There is a concerted attempt to deny that recession is taking hold. Earlier this week, US Treasury Secretary Janet Yellen said the US economy was not in recession and she would “be amazed” if the NBER declared it was.

One of the bases for such assertions is the low unemployment rate of 3.6 percent. How can there be a recession if the jobless rate is at a 50-year low? This ignores the fact that hirings are starting to be cut back by major corporations and rising unemployment is generally one of the last indicators to emerge if there is a downward trend.

Furthermore, there also seems to be a repeat of the COVID playbook: continually deny reality by pointing to the low unemployment rate and somehow underlying economic conditions will cease to exist.

But a key factor in what is continually referred to as the “tight labour market” is the death of more than one million people—many of them of working age—and the millions who have been impacted by COVID and are unable to work for periods because of immediate infection, the need of others to drop out of the workforce to take care of family and loved ones, and the growing impact of Long COVID in reducing the labour supply.

Statements aimed at covering up the situation are one thing, but objective reality is another.

Wall Street Journal (WSJ) writer Greg Ip noted that whether a recession is eventually declared, “the message from the latest economic data is just as sobering: The recovery is, effectively, over.”

He pointed out that “key indicators of economic activity have ground to a halt.”

“Total spending by households and businesses didn’t grow in the second quarter after averaging 6 percent annualised growth in the prior six quarters,” he added.

In another article, the WSJ cited remarks by James Knightly of the financial giant ING, who said a downturn was “really only a matter of time” because of the pressure on households from inflation and equity markets in conditions where “the housing downturn [is] really gathering pace now.”

The Biden administration is leading the campaign to deny economic reality just as it is on COVID. At a press conference after the GDP figures were announced, Yellen said economists and most Americans had a definition of recession that included job losses and mass layoffs, private sector activity slowing considerably and “family budgets under immense strain,” and that is “not what we’re seeing right now.”

Family budgets “not under immense strain?” One can only ask what planet Yellen is living on.

President Biden issued a statement shortly after the data were released saying it was no surprise the economy “is slowing down as the Federal Reserve acts to bring down inflation.”

The inducement of a slowdown and recession is the deliberate policy of the Fed, not to bring down inflation—its measures will not reduce the price of food or gas or untangle global supply chains—but are aimed at supressing the growing wages movement of the working class.

The objective of the Fed is widely known in ruling economic and political circles, but is kept under wraps, covered over by the mantra of the need to fight inflation, lest its exposure further fuel the mounting anger in the working class.

In an effort to burnish her “left” credentials in sections of the Democratic party, Senator Elizabeth Warren wrote an op-ed piece in the WSJ this week that partially lifted the lid on what is really taking place.

She noted that the aggressive rate hikes by the Fed are largely ineffective against the inflation spike and warned that the interest rate hikes were aimed at “dampening demand.” If the Fed hiked too much or too abruptly, she wrote, “the resulting recession will leave millions of people… with smaller paychecks or no paycheck at all.”

Warren pointed to the remarks of former Democratic treasury secretary Lawrence Summers, who recently told the London School of Economics: “We need five years of unemployment above 5 percent to contain inflation—in other words, we need two years of 7.5 percent unemployment or five years of 6 percent unemployment or one year of 10 percent unemployment.”

But always anxious to ensure that the working class remains corralled within the confines of the Democratic party, Warren praised the actions of the Biden administration and said it recognised that the US had “many tools for fighting inflation that wouldn’t make the economy smaller and Americans poorer.”

Such claims ignore two facts: that the limited measures of the administration will do little or nothing to bring down prices, and that Biden has declared he stands four-square behind the actions of the Fed.

In the US, the world’s biggest economy, the GDP figures were announced just days after the International Monetary Fund revised down its estimate for growth and warned that the global economy was “teetering” on the brink of recession.

In the world’s second largest economy, China, growth in the June quarter was only 0.4 percent, narrowly avoiding a contraction, with estimates for growth over the next months being revised down.

The third key driver of the world economy, the euro zone, is on the edge of recession, with warnings of a major downturn by its leading economy, Germany, by the end of the year due to cuts in Russian gas supplies as a result of the US-led war in Ukraine.