Busted: Bankers and The Global Economy

November 16, 2011

Financial Nonsense of GDP & Jobless Figures

Third quarter GDP numbers have no relation to reality  says John Williams of Shadow Stats. He believes that unemployment hasn’t really recovered from the 2001 recession. GDP has become a nonsense number, worthless in terms of having any meaning in terms of the real economy.

February 14, 2011

Scary Facts About Getting a Job in America

Filed under: business, economy, money, recession, stagflation — Tags: , , , , — digitaleconomy @ 12:23 pm

Business Insider published “19 Scary Facts About Getting a Job in America.”

This recession is not another run-of-the-mill post-war recession, nor is it simply what globalism looks like. The recession in the U.S.A.  is a prolonged structural unemployment caused by multinational corporations fleeing high-cost labor markets to exploit low-cost labor markets. The impacts are real and devastating:

1) If you lose your job today, there’s a 70 percent chance you won’t find a job in the next month.

2) If you’ve been unemployed for a year, there’s a 91 percent chance you won’t find a job in the next month.

3) Two million people have exhausted 99 weeks of unemployment benefits. Another four million will do so in 2011.

4) There was zero job growth in the past decade, the worst 10 years on record.

5) In the most optimistic scenarios, payrolls won’t return to 2008 levels until 2013. In that time, the population will grow by 5 percent.

6) More than one in four jobs added to the economy last year were temporary.

7) At 2000 levels of labor force participation, the unemployment rate would be 13 percent.

8) When you count the unemployed, underemployed and discouraged workers, only 47 percent of the work force is fully employed.

9) The number of workers over 55 has increased nearly 8 percent in three years. No retirement means no hiring.

10) Four out of 10 baby boomers said they will have to “work until they drop.”

11) The average length of unemployment is 22 weeks.

12) For workers over 55, the average length of unemployment is 43 weeks.

13) In one of the hardest cities to find a job, Las Vegas, there are nine applicants for every job opening.

14) No jobs crash since the Great Depression of the 1930s even compares to what’s happening now, in terms of the number of jobs lost by the economy as a whole.

15) A 1 percent increase in unemployment leads roughly to a 1 percent increase in suicides.

16) More than 3 million manufacturing jobs have been lost since 1998.

17) The number of motor vehicle manufacturing jobs will decline by 20 percent in the next decade.

18) The number of apparel manufacturing jobs will drop by 57 percent over the next decade.

19) Here is the competition: A network engineer in Bangladesh makes $6,000 a year, while a CEO earns $30,000 on the average.

The Business Insider report concluded with the following observation: “Getting a job today means going up against terrifying odds.”

November 10, 2010

Obama: Embrace Globalism And The Emerging One World Economy

Barack Obama made some interesting comments about the USA economy and American attitudes during a joint commentary in Mumbai, India.

President Obama made these comments about the Federal Reserve, effectively a “no comment” statement.

The Federal Reserve is an independent body. It doesn’t take orders from the White House, and it’s important as a policy matter, as an institutional matter, that we don’t comment on particular Fed actions.

About offshoring or outsourcing, President Obama made the following remarks:

I don’t think you’ve heard me make outsourcing a bogeyman during the course of my visit. In fact, I explicitly said in my address in Mumbai to the Business Council that I think both countries are operating on some stereotypes that have outlived their usefulness.

I want to be able to say to the American people when they ask me, well, why are you spending time with India, aren’t they taking our jobs? — I want to be able to say, actually, you know what, they just created 50,000 jobs. And that’s why we shouldn’t be resorting to protectionist measures; we shouldn’t be thinking that it’s just a one-way street. I want both the citizens in the United States and citizens in India to understand the benefits of commercial ties between the two countries.

Essentially, the attitude of President Obama and Indian Prime Minister Singh is one of tough nuts to America. They advertise outsourcing as good for India and the world.

October 14, 2010

Banks invent money out of air

The financial system is a model of fraud, now out in the Austrian newspaper, Der Standard per Viennese economist Franz Hörmann. Franz Hörmann explains the fraudulent workings of the fractional reserve banking system in this  interview.

“If one creates money out of thin air and then passes what did not exist before on charging interest and using physical assets as collateral, then that is in reality a model for expropriation (acquiring property without making any payment).”

Hörmann explains in clear language how the money system works, why the financial system is a global fraud, how the use of  balance sheets contributes to this fraud and why a gigantic crash is now approaching. He says the whole financial system could well collapse in the next three years. Hörmann argues that the time has come for a paradigm shift in the economics studies as well as in society. This is because economic studies are built on false values.

Information on how the banking system works in reality that used to be available only on websites like Infowars and Global Economy (formerly Digital Economy) have long been classified as a conspiracy theory. This knowledge is now mainstream, established as fact.

The next step can only be to call into account the various bankers and politicians that know how this system operates. They have engineered the banking subprime crisis in order to have a pretext to take liquidity out of the money supply, crash the economy, buy up assets for a pittance, get trillions in tax payer money as “bailouts” in return for worthless thin air paper debts. They demand gigantic interest payments on the national debt that they and their politicians friends have created in an exact repeat of economic events in the 1930s preceding the rise of Adolf Hitler.

The whole point is to drain the wealth of economies while subjecting the labor pool to economic servitude and slavery. The system can destroy national economies and ignite hyperinflation. This world banking system is controlled by corporate brotherhood of central bankers, generally with globalist thinking on their mind.

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October 12, 2010

U.S. on the Way to the Third World?

Everyone is talking about unemployment, but nobody is talking about the long-term reality of the U.S. economy. Wall Street is playing investment games with agricultural commodities to make money, which is now impacting prices apart from traditional supply and demand. This translates to higher prices despite a poverty-stricken economy. Food processors and manufacturers are cutting products sizes and raising prices, which means that Americans continue to get the short shrift on all sides.

Then there are the jobs. This month the U-6 category from the Bureau of Labor Statistics (a measure of unemployment that includes those who have stopped looking for work)  jumped to 17.1%, yet another red flag.

Also, consider the U.S. trade deficit that sends billions of dollars overseas to foreign countries, never to return, evaporating into the global economy. The deficit means that the Fed will print more money to add to an already robust global dollar supply.

The nation has another banking crisis, where it has been revealed that fraudulent foreclosure documents were signed without evaluation. This could plunge both the the mortgage industry and the banking industry into another “too big to fail” bailout. Who are we kidding? Messy lawsuits could be the order of the day as buyers and investors seek redress for damages, either real or imaginary. All this financial pressure will undoubtedly influence exporting more jobs outside of America to cut corporate costs. That is why you are hearing all the media hype about Americans not being trained enough for sophisticated jobs that they no longer qualify for. They are preparing you for the ugly truth, even if the reasons are really fiction.

Many Americans struggle to pay for necessities now as those prices continue to rise. Food basics are once again on the rise. Food processors are likely to pass that on American consumers. To counter all the bad news, the Fed is considering creating inflation with the hope of boosting the economy. Printing more dollars to send overseas is hardly a solution. Printing dollars to keep those dollars here is the only viable solution, but hardly an option since most corporate shareholders only care about the bottom line as they send the bulk of their work to cheaper labor markets. Whether that bottom line rests on foreign factories or in American ones doesn’t matter to them.

This short-sided thinking is unsustainable at best, even as corporations seek government funding because they are unwilling to take risks in the U.S. marketplace. They seek that money only because the U.S. government is stupid enough to offer incentives to those that don’t really need the cash. It just pads the bottom line for larger corporations, as that money evaporates forever with little reward for Americans. Meanwhile, the media continues to boast that small business is responsible for a robust economy, even as the U.S. government penalizes small business. Enjoy the new American third world and the decline of the nation in favor of funding multinational corporations.

July 24, 2010

U.S. Worries Over Deflation

The nation has a nasty case of stagnation, fueled by significant employment issues and rising defaults. Prices are falling while most consumers resist buying. When deflation begins and prices fall, it seems like a good thing. Then, lower prices cut into business profits which results in trimming payrolls. This further undermines buying power, which leads to lower profits, fewer jobs and lower wages. All this results in economic contraction.

With all the cutbacks, buyers that have the funds wait for better deals through even lower prices, which magnifies deflation. As a result, the nation plunges into a downward economic spiral that is hard to escape. This is exactly what the United States faces.

The nation’s capital is feeling the guilt as they look at other in dismay about the rising deficit and inflation, even though they advertise to the world that inflation doesn’t exist here. Economists around the world see great potential for deflation of the dollar, which already would be the case, were it not for declining currencies across the globe.

The statistics say it all. Consumer prices have declined each month for the last three months, putting inflation above last year. They claim that the core inflation rate is at a 44 year low at less than one percent. So why are they worried? The Federal Reserve likes to see an inflation rate of 3% because this puts more money in their corporate pockets.

Private economists and financial experts are more concerned. Some of them see the possibility of deflation at more than fifty percent. This is compounded by unemployment, lack of production and lower spending.

Should deflation occur, the central bank has the tools to reverse it according to Ben Bernanke, even though the Federal Reserve has interest rates at historical lows and has pumped trillions into the financial system. The books have been cooked baby, to the loss of the United States. Bernanke claims the U.S. economy is more vibrant and productive than Japan’s was in the 90s. The difference is supposed to be that Japan’s labor face was actually declining, while the States has plenty of labor.

In my words, there are plenty of financially-broken and impoverished Americans to take advantage of, with the hope of restoring the economy on their collective backs. Wall Street and multinationals aren’t suffering beyond the losses of jobs they incurred during the recession. Let’s face facts, they didn’t suffer much at all. Their employees did. That’s the way it is.

The little guy at the bottom, so far, is the one that has truly paid for the recession and the remainder of its fallout. They are ones that will continue to pay.

June 27, 2010

Jobs & G20: Budget Slashing Fever & Fantasy

To hear the G-20 proclaim it, the U.S. and other “prime economies” had better slash their budget deficits before the world comes to an end. The U.S. Senate quashes continued aid for the unemployed. Wall Street investment firms and banking succeeds in watering down financial reform. The fantasy continues while economists and politicians worry behind the scenes.  Even VP Joe Biden openly admitted that the United States will not regain the jobs that were lost in the “Great Recession.”

The official jobless rate, projected at below 10%, is pure fiction and must treated as such by those that seek the truth. It doesn’t consider many unemployed people that have dropped off the charts into oblivion. Underemployment is a national plague that the Labor Bureau of Statistics has revealed. Many are the discouraged job seekers and those that have settled for part-time work. The U.S. Labor Department shows that there are 79 million men in America between the ages of 25 and 65. Nearly 18 million of them, a record 22%, are out of work. This doesn’t include the underemployed. The impact is larger in African-American men.

The financial markets, like the government lawmakers, could care less about the deficit. Perhaps they should. As a result, investment rates in bonds is down. Almost all of them ignore engineered inflation which pays off central bankers to the tune of about 10% yearly, the real loss in buying power for the nation. In the meantime, the official inflation rate is a “convenient” 3% most years. Powers that be project an inflation rate 2.3% yearly for the next 30 years. Dreamland. Because of what is really a stagflation economy, falling prices and deflation of the dollar are more likely.

Wall Street and multinational capitalism seems to be in robust condition, to the cost of everyone but them. Corporate profit margins have reached record levels at 36% as the average American is short circuited entirely. These profits have never been so high since record keeping began. These figures are much the same as they were in the Reagan administration.

More than half of the national budget funds defense (don’t forget the wars), national debt interest and Social Security/Medicare. Politicians are eyeballing cuts on the latter, often silent as a senior political voice fades away. Don’t kid yourself. You’ll pay for seniors and the disabled one way or the other. Don’t kid yourself about the other major expenses either. Meanwhile, the national budget has climbed steadily for decades in the 6% to 10% range, much higher than the professed inflation rate.

There are no easy answers beyond beginning to live within our means as a nation. For years, Americans had forgotten about this necessity, encouraged by the system to spend endlessly, until the recession hit us between the eyes. Only bankers, multinationals and Wall Street have profited in their own economic bubble. Government has forgotten what economic balance and locally productive jobs mean, threatening to destroy their own system of weights and balances with unfettered spending and wars overseas, designed to keep terrorist attacks overseas and out of America. We have created our own reality. Are we willing to change?

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