Busted: Bankers and The Global Economy

July 26, 2010

Plague of Home Foreclosures in U.S. Continues

The miraculous recovery that has been proffered by the Banking Elite hasn’t happened. Central Bankers and Wall Street profiteers believed that they could continue to operate with wild speculation while reaping the results and encouraging more of the same. The financial wizards have not proved their financial literacy. Their speculative downfall started with bundling speculative instruments tied to U.S. housing debt that never should have happened to begin with. Hundreds of thousands, maybe millions, of Americans bought homes that never really qualified. The hot market was bolstered until the superheated financial bubble burst, leaving a worldwide recession based on what amounts to Wall Street gambling on highly leveraged contracts that have bankrupted the system. The reality is that the problem isn’t with foreclosures themselves, but with the bundled securities and expected profits that are tied to the failing mortgages. No doubt, these securities have been packaged and sold dozens of times even though they are worth nothing now.

More than three years into a U.S. housing crisis that started a worldwide recession, home foreclosures continue to further the devaluation of the U.S. economy. The waves of foreclosures no longer come from sub-prime loans that have defaulted. Foreclosures come from formerly respectable borrowers that have lost their jobs in an impoverished and drained economy that no functions to support a nation of hard-working Americans, but functions only to serve the Banking Elite.

In the first half of 2010, more than 1.6 million U.S. properties are in the midst of foreclosure filings, which include bank repossessions, default notices and auction sale notices. This is an 8 percent increase from the first half of 2009 which puts the United States on target to reach 3 million filings this year. These numbers show the fragile state of housing and real estate investment, which has been decimated. Government programs have been ineffective at stopping the national hemorrhage. Little has changed except that more Americans are living in rentals, with friends and family, in tents or on the streets, depending on their financial fortunes.

The U.S. government and banking profiteers built a house of cards on the idea that the cost of housing would always rise and that the profits would never cease. After massive bailouts, they are still stuck without a financial course to chart and exploit, beyond tapping government bailouts. The Federal Reserve holds trillions in useless notes and obligations in the hope that someday they will be worth more than the paper they are printed on. The economy continues to spiral downward despite limited attempts by big money multinationals to bolster the market.

Corporate multinationals and banking bigshots aren’t here as charities. They demand to make money for shareholders. For decades they have profited from U.S. tax law and from the backs of manufacturing slaves in the third-world. Now they seek to hold the bottom line and to keep their organizations alive. Now they are cannibalizing inept governments to sustain themselves. Stagnation is preferable to loss as the United States becomes the new third-world in their great plan to level the national playing field through globalization. Welcome to the brave new world of globalism, where everyone is equal except for the corporate oligarchy.

It isn’t pretty, but is pretty much as advertised.

April 12, 2010

Multinational America & Cheap Labor

Even highly educated Americans can hardly win with a nationwide crisis of underemployed and unemployed. Clearly, America lives in the age of the wage slave, a time of mindlessness and lack of creativity. Corporate America remains addicted to outsourcing overseas, especially where cheap Indian labor is concerned. Now globalist academia, notably the University of Houston, is outsourcing teaching assistant jobs to India. Globalists are doing much more than that. Even Houston is a new center of foreign training basking in the warmth of  globalist conceit. Meanwhile, Bill Gates vis-à-vis Microsoft, has continued to sack the prospect of American jobs by sending them overseas. Since Gates can’t bring Indian help legally into America by the truckload, he is sending precious jobs overseas at a time when an unprecedented number of qualified educated Americans are out of work. Almost half of the those on the unemployed rosters have been out of work for more than six months. It seems to me that the time is nigh to outsource the national sociopaths.

It is high time to move away from the falsehood of corporate globalism to consider employing educated U.S. citizens. Having experience myself in dealing with teams of the hired from Mumbai, I must admit that they seem to be bright people on the surface. They are humble and do what they are told. Hell yes, they are eager to please! That is where the panacea ends folks! You will tell them again and again, yes… and again. You will spend hours in special conference calls dealing with “the meeting of the minds,” as they continue to pour out work that most children can do.

Multinationals: your jobs building another nation.

The communication and cultural barrier looms large as work is redone over and over. As far as being eager to please, this is hardly a surprise since corporate buildings spring from some of the worst slums of India, corporate neighbors that gleam in contrast to some of the worst ghettos the world will see. Who wants to leave a pretty polished office in favor of a human black-hole of mud and cardboard? It is time to fully realize that this is a human rights issue. Elevating foreigners that live in mud holes seems to be the human thing to do, unless you are merely elevating them to the underpaid wage-slave status as they fight in their minds about what the hell is in the minds and attitudes of managers in Corporate America. Surely “Bob Cratchit” had it no better and we have the nerve to think that globalism is doing them a favor, kind of like how imperial Britain was good for India too.

Meanwhile, the good boys and girls at Deloitte, Price Waterhouse , Microsoft, IBM and the whole lot of lousy multinational sleezoids continue to undermine and use an entire planet of human beings for what is good for corporate needs at the moment while basking in the glow of sustainability and green politics. You can add all of Wall Street and their overseas markets to the list too because this behavior is all the same thing.

Behind the corporate scenes in India, destined for a third world U.S.A.

That isn’t enough for “Multinational America.” This well-funded, organized racket is built on lies of an American labor shortage that oozes from ivy league “innovation.” They have legitimized the crime of selling out “spoiled Americans” in the hope of instilling and importing India’s caste system into the United States for their own benefit. They are debasing the nation so they can continue to ply their usury on the nation as they pimp globalism to proffer their bottom line and the meaning of their miserable existence. So much for socially responsible behavior. Too bad that President Obama doesn’t have the good sense to charge this modern-day pack of miscreants with treason. These are the sort that only Benedict Arnold could love.

Meanwhile, they can bask in the glow of globalism, an effort to justify the behavior of sociopaths. Believe me, these kids from India aren’t paying the bill. Multinational corporations are.

November 16, 2009

Why Job Cheerleading Won’t Save the Economy

Filed under: banking, corporatism, economy, government, recession — Tags: , , , , , , , , , — digitaleconomy @ 10:55 am

Unemployment is at a “26-year high” with 17.5 percent of formerly employed Americans that are no longer looking for work or underemployed.  The unemployment rate for workers aged 16 to 24 is at 19 percent. The unemployment rate for young African-Americans at 30 percent. The average length of unemployment is at a record high as the ratio of job seekers to open positions is currently 6 to 1. This is dismal news for Americans. As their “patriotic duty” many firms are now telling their employees that hours must be cut in order to save jobs. No less than 60 million American households are living at or below the poverty level. The nation is not seeing real ideas or action that even remotely resemble the urgency and aggressive action when banks and investment firms needed saving.

Behind the scenes, political powerhouses and their talking heads hope that cheerleading will do the trick. Surely the talent of the American people will save us says the court jester of economics, Warren Buffett. I cite the CNBC party show that is sure to insult your intelligence. The economy and the American people don’t need upbeat civic cheerleading about greatness. The nation needs serious action outside of more wars overseas. We need to realize that we have war going on right here.

The nation can expect weak recovery of consumption and economic growth coupled with larger budget deficits. The nation can expect greater delinquencies in real estate and the continued fall in real estate prices. The nation can expect greater losses for banks and financial institutions across the board in all sectors and a corresponding rate of bank failures.

Noriel Roubini’s Global Economonitor says: “we can expect that job losses will continue until the end of 2010 at the earliest. In other words, if you are unemployed and looking for work and just waiting for the economy to turn the corner, you had better hunker down. All the economic numbers suggest this will take a while. The jobs just are not coming back.”

Mr. Roubini says “that the unemployment rate will peak close to 11% and will remain at a very high level for two years or more.” This will put the real unemployment rate soundly past 18%. Last year, I predicted a real unemployment rate of 25%. Either way, the nation has some suffering to go through since the political powers that be firmly refuse to bail out the American people. The land of politics continues to bail out the world with free handouts and political programs. We can bankroll and void toxic debt for freewheeling investment bankers and financial geniuses that abused the system, but we can’t risk lowering the debt or responsibility of the American people without making them homeless. Clearly, the American people are simply too talented. Politics still needs slaves to grist the mill. We need martyrs for the cause. The nation has them while China gains mastery over the national economy. What will politics sell next?

You can now appreciate why the world of U.S. politics doesn’t want to end the wars in the Middle East. With all the men and women in the armed forces coming home, we really would be a nation without work.

 

May 4, 2009

Krugman: Falling Wages and a Recovery

Paul Krugman makes some excellent points:

So what should we conclude from the growing evidence of sagging wages in America? Mainly that stabilizing the economy isn’t enough: we need a real recovery.

But the unemployment rate is almost certainly still rising. And all signs point to a terrible job market for many months if not years to come — which is a recipe for continuing wage cuts, which will in turn keep the economy weak.

To break that vicious circle, we basically need more: more stimulus, more decisive action on the banks, more job creation.

Credit where credit is due: President Obama and his economic advisers seem to have steered the economy away from the abyss. But the risk that America will turn into Japan — that we’ll face years of deflation and stagnation — seems, if anything, to be rising.

The Falling Wage Syndrome by Paul Krugman

Inflation-adjusted American wages have remained ‘stagnant’ since 1975 but the cost of living has steadily increased. This contributes to the use of credit, the nation’s current plight regarding credit slavery and the high prices of market goods, notably automobiles. The recovery of the auto industry, for example, depends on moving cars and trucks. The problem remains in high prices versus wages of Americans. Houston: we have a problem.

In a review of the Census Bureau’s Historical Income Tables, the truth is not stagnation in an actual sense.  For example, the median income for white men fell nearly 10% between 1974 and 1982. The income for the same group climbed 15% from 1982 to 2007. Income for women increased only slightly between 1974 and 1982 and actually fell slightly for blacks during the same period. Meanwhile costs and expenses spiraled out of control at an annual average inflation rate hovering around 10%, fostered by runaway spending created by credit.

Some argue that wages have increased by 40% since the 1970’s. A recent study by the Federal Reserve Bank of Minneapolis discovered that wages for the average American worker went up by 20 percent between 1975 and 2005. However, one cannot accept the current 3% inflation rate pushed by the Federal Reserve and the federal government as fact. Assuming an average 10% inflation rate which is closer to truth, neither 20% or 40% hold a candle to the real and hidden inflation rate. Given a median inflation rate of 10%, you are looking a loss of buying power at a staggering 100% every ten years instead of a professed 30% reduction in buying power. Now you know where the problem really is. Inflation is not our friend. Living on predatory and usurious credit has come at great cost to the entire globe. The bottom line is that a liberal fractional reserve that has allowed runaway credit is truly responsible for the current plight of global financial malaise. The current mindset continues that monetary credit is the answer to the global meltdown. The actions of central bankers continue to dilute the value of the dollar as global currency.

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