The Wealth Gap: Chickens, Pots, and the American Dream

Regardless of how the economy is doing it seems the super-rich come out ahead. The rest of the nation, not so much.

If you’re on the lowest economic rung you might as well just step off now, because your life is getting steadily worse – even if you’re only there “temporarily” while you’re laid off from a job that’s not coming back, waiting for the foreclosure notice, or for the repo-man to come for your car or first-born child – whichever fetches the most money. You folks living in homeless encampments have no worries at all, malnutrition and illness will kill you off soon enough. And hey – no death panels to worry about thanks to the reforms of the healthcare reforms!

You folks in the middle? Sure, you have to work two or three jobs but the foreclosure notice hasn’t arrived yet. You’ll squeeze another 50,000 miles out of your AMC Gremlin, while choosing which meal to forego to pay BP for $3.00 per gallon (and rising) gas. Yes, you’re worried about a leak in the roof, but you’ll cover it with a cheap tarp. Besides, if it causes damage it won’t be your problem when your friendly CitiBank “wealth manager” breaks drops in to get the key.

His house. His leak.

The Express Elevator to Fabulous Wealth
But those folks on the top? They’re not even on the ladder anymore. They’ve  jumped in a plush, express elevator that goes so high it doesn’t even have up buttons. However, they keep the elevator operator because, well, why not? He tells good jokes and they can afford him.

Many people think this outsized upper-end income growth is just fantastic. It’s the American way they say. It’s what the free market dictates they explain. Besides, they can’t be expected to “compete” with Chinese prison labor without the “efficiencies” (layoffs and declining wages) for which they’ve so handsomely rewarded themselves. Oddly enough, this view happens to be most prevalent among those who are making the big bucks.

Who could’ve guessed?

But as the folks in the newly remodelled corner offices take off for their Aspen homes via private dirigible, the US wealth gap grows and their inflated sense of self-worth shines like a new Maserati.

The World According to Greenspan
You hear about the wealth gap sometimes, mostly from those “liberal” media outlets like the Wall St. Journal. But now even Ayn Rand‘s evil spawn, Alan Greenspan, is sensing a little irrational exuberance in the wage disparity.

He understands that when the proletariat complains about The Suits’® penchant for uber-high living and not having a clue about what the average American puts up with, it’s more than just a case of sour grapes. He can see that if we expect to put a chicken in every pot, we need someone to grow the grain to feed the chickens and make the pot in which to cook them. Today, many don’t even have the pot left to piss in and they get their chicken on KFC’s liver and gizzards night.

The thing is that Ayn Rand and hundreds of executives notwithstanding, we’re close to killing the chicken and that’s bad for 100% of workers. The market for chickens and pots is pretty small when it’s restricted to the Top 1 Percenters®. But, the other 99%? Now that’s a big market, but nobody’s going after it except the Top 1 Percenters® who are the only ones left with enough cash to make the weekly chicken and pot-buying trip to the Super Wal-Mart.

Dear rich and powerful persons, feast well because you’re steadily choking your own chicken.

Cross posted at The Omnipotent Poobah Speaks!

 

 

 

The Wealth Gap: Chickens, Pots, and the American Dream

Regardless of how the economy is doing it seems the super-rich come out ahead. The rest of the nation, not so much.

If you’re on the lowest economic rung you might as well just step off now, because your life is getting steadily worse – even if you’re only there “temporarily” while you’re laid off from a job that’s not coming back, waiting for the foreclosure notice, or for the repo-man to come for your car or first-born child – whichever fetches the most money. You folks living in homeless encampments have no worries at all, malnutrition and illness will kill you off soon enough. And hey – no death panels to worry about thanks to the reforms of the healthcare reforms!

You folks in the middle? Sure, you have to work two or three jobs but the foreclosure notice hasn’t arrived yet. You’ll squeeze another 50,000 miles out of your AMC Gremlin, while choosing which meal to forego to pay BP for $3.00 per gallon (and rising) gas. Yes, you’re worried about a leak in the roof, but you’ll cover it with a cheap tarp. Besides, if it causes damage it won’t be your problem when your friendly CitiBank “wealth manager” breaks drops in to get the key.

His house. His leak.

The Express Elevator to Fabulous Wealth
But those folks on the top? They’re not even on the ladder anymore. They’ve  jumped in a plush, express elevator that goes so high it doesn’t even have up buttons. However, they keep the elevator operator because, well, why not? He tells good jokes and they can afford him.

Many people think this outsized upper-end income growth is just fantastic. It’s the American way they say. It’s what the free market dictates they explain. Besides, they can’t be expected to “compete” with Chinese prison labor without the “efficiencies” (layoffs and declining wages) for which they’ve so handsomely rewarded themselves. Oddly enough, this view happens to be most prevalent among those who are making the big bucks.

Who could’ve guessed?

But as the folks in the newly remodelled corner offices take off for their Aspen homes via private dirigible, the US wealth gap grows and their inflated sense of self-worth shines like a new Maserati.

The World According to Greenspan
You hear about the wealth gap sometimes, mostly from those “liberal” media outlets like the Wall St. Journal. But now even Ayn Rand‘s evil spawn, Alan Greenspan, is sensing a little irrational exuberance in the wage disparity.

He understands that when the proletariat complains about The Suits’® penchant for uber-high living and not having a clue about what the average American puts up with, it’s more than just a case of sour grapes. He can see that if we expect to put a chicken in every pot, we need someone to grow the grain to feed the chickens and make the pot in which to cook them. Today, many don’t even have the pot left to piss in and they get their chicken on KFC’s liver and gizzards night.

The thing is that Ayn Rand and hundreds of executives notwithstanding, we’re close to killing the chicken and that’s bad for 100% of workers. The market for chickens and pots is pretty small when it’s restricted to the Top 1 Percenters®. But, the other 99%? Now that’s a big market, but nobody’s going after it except the Top 1 Percenters® who are the only ones left with enough cash to make the weekly chicken and pot-buying trip to the Super Wal-Mart.

Dear rich and powerful persons, feast well because you’re steadily choking your own chicken.

Cross posted at The Omnipotent Poobah Speaks!

 

 

 

Part 4: Golden Lily’s Liar Loans and the Subprime Meltdown

In parts one, two, and three a narrative was formed around covert right wing activities stretching from the end of World War 2 up until the start of the War on Terror. In a nutshell, a giant horde of stolen riches known as the ‘Black Eagle Trust’ were used to fund a shadow American empire tucked under the meme of anti-communism.

At the end of the Cold War, a large number of ‘off-balance sheet’ securities were issued by banks such as UBS and Deutsche Bank against this wealth and funneled into the USSR.

In September 1991, George H. W. Bush and Alan Greenspan, both Pilgrims Society members, financed $240 billion in illegal bonds to economically decimate the Soviet Union and bring Soviet oil and gas resources under the control of Western investors, backed by the Black Eagle Trust and supported later by Putin who for the right price purged certain oligarchs.

After the Soviet Union fell, the cabal in possession of these resources made plans to cycle them into the legal economy and cover-up the dirty deeds that they were associated with. The original 10 year Brady bonds, set to mature in September 2001, were destroyed in the attack on the World Trade Center. The firm that held the securities was Cantor Fitzgerald, which suffered catastrophic losses including the death of every employee.

Under a suspension of regular rules by the SEC, the illicit bonds were cleared by the Bank of New York and added to the capital reserves of banks holding ‘Black Eagle’ gold including Chase, Citibank, Credit Suisse, HSBC, Deutsche Bank, and UBS. To obfuscate its trail, the money was quickly shifted into the mortgage market, where the demand for subprime loans would rise by $246 billion.

Loans that require little or no documentation of income soared to $276 billion, or 46 percent, of all subprime mortgages last year from $30 billion in 2001, according to estimates from New York- based analysts at Credit Suisse Group. Homebuyers with those loans defaulted at a 12.6 percent rate in February, compared with 1.5 percent of fully documented prime mortgages, said San Francisco- based First American LoanPerformance, a mortgage consulting group.

The global financial crisis, like the massive pyroclastic clouds flowing through the streets of New York on 9/11, has served as a smokescreen for the criminal syndicate which inherited Golden Lily’s loot to get away...

Click "fullscreen" for better viewing

Part 2: From Golden Lily to the War on Terror

In part one, it was revealed how $3 trillion in treasure plundered from Asia by Japan in the WW2 operation 'Golden Lily' was confiscated by the United States and funneled into a covert fund used by the CIA to fight communism.

This ‘Black Eagle Trust’ would bankroll numerous secret actions taken by the U.S. throughout the second half of the twentieth century.

One of the hidden accounts, called the ‘M-Fund’, was used to purchase political influence in Japan. It allowed the country to illegally rebuild their army while the U.S. moved troops to Korea. Richard Nixon repeatedly dipped into the fund as vice president to buy influence in the region. As president in 1971, he sent $35 billion to Japanese Prime Minister Kishi, an indicted war criminal.

In addition to foreign activity, the black accounts were used to fund operations within the United States. Nixon’s Japanese fascist friends, elements of what would become the World Anti-Communist League (WACL), are believed to have participated in the Kennedy assassination. This event was part of the larger war on the American Left known as COINTELPRO. The WACL went on to back Latin American death squads under President Reagan.

However, the greatest achievement of the ‘Black Eagle Trust’ would come under his successor, President George H.W. Bush. He would reach the ultimate goal, destruction of the U.S.S.R.

In 1989 President George H. W. Bush began the multi-billion dollar Project Hammer program using an investment strategy to bring about the economic destruction of the Soviet Union including the theft of the Soviet treasury, the destabilization of the ruble, funding a KGB coup against Gorbachev in August 1991 and the seizure of major energy and munitions industries in the Soviet Union. Those resources would subsequently be turned over to international bankers and corporations…

Project Hammer was staffed with CIA operatives and others associated with the National Security apparatus. Covert channels were already in place as a result of other illegal Bush activities. Thus, it was a given that the project would use secret, illegal funds for unapproved covert operations, and that the American public and Congress would not be informed about the illegal actions perpetrated in foreign countries. The first objective was allegedly to crush Communism, a growing political philosophy and social movement that was initially funded by the usual group of international bankers who now supported their demise. To this end, the "Vulcans" under George H. W. Bush, waged war against the Soviet Union…

During the process of accomplishing the main objective of destroying the Soviet Union, the operatives made massive profits. In September 1991, George H. W. Bush and Alan Greenspan, both Pilgrims Society members, financed $240 billion in illegal bonds to economically decimate the Soviet Union and bring Soviet oil and gas resources under the control of Western investors, backed by the Black Eagle Trust...

Herein lays the rub. With the removal of the world’s greatest purveyor of communism, the mission of the ‘Black Eagle Trust’ was complete. Nevertheless, it would be necessary to cover up its existence. Records of the Brady bonds, borrowed against illicit holdings, remained in the offices of Cantor Fitzgerald in New York City.

From early 2000 to June 2001, several workshops were held between the Naval War College and Cantor Fitzgerald at the top of the North Tower to discuss “globalization’s future and the threats that could derail it” One day before the 10 year bonds reached maturity, the attack on the trade centers struck directly below Cantor, killing all of its employees and destroying all documents.

The final step to bury evidence of the great stolen treasure was to target outsiders who had touched the Black Eagle Trust. The CIA had used money laundering schemes through dictators such as Saddam Hussein and dirty banks like the B.C.C.I. With the advent of the War on Terror, every rogue agent affiliated with the trust could be targeted...

Related Posts

Part 1: Golden Lily: How the CIA Funded a Covert Empire

Part 3: The Collateral Damage of Golden Lily

Part 4: Golden Lily's Liar Loans and the Subprime Meltdown

Greenspan on the Bush Tax Cuts: "Let Them Lapse"

Former Federal Reserve Chairman Alan Greenspan, whose backing of George W. Bush’s 2001 tax cuts was instrumental in persuading Congress to pass them, said lawmakers should allow the reductions to expire at the end of this year in an interview with Judy Woodruff to be aired this weekend.

The story from Bloomberg News:

“They should follow the law and let them lapse,” Greenspan said in an interview on Bloomberg Television’s “Conversations with Judy Woodruff,” citing a need for the tax revenue to reduce the federal budget deficit.

The former U.S. central bank chairman also said the economy is in “a temporary slump” and would emerge with a “sluggish” 3 percent growth rate in the second half of the year. He said banks’ lending will remain constrained because financial markets are pressing them to maintain higher capital levels and predicted the Wall Street regulatory measure the Senate passed yesterday will reduce credit available for low- income consumers.

Greenspan’s comments on taxes, to be broadcast today and over the weekend, place him in the middle of an election-year struggle over extending Bush’s trillions of dollars of tax cuts.

President Barack Obama campaigned for election in 2008 on a promise of extending the Bush tax reductions for families earning up to $250,000 while eliminating the cuts for higher- income Americans, a position also embraced by most congressional Democrats. Republicans have pressed for continuing the cuts for higher-income families, arguing that a weak economy is no time for a tax increase.

House Majority Leader Steny Hoyer, a Maryland Democrat, stoked the debate with comments on June 22 that permanent extension of the middle-class tax cuts may no longer be affordable because of the growing U.S. debt burden.

If by "temporary slump" Greenspan means a decade plus, then I suspect he may be right. The other big economic news of the day comes from Ezra Klein who published a Brookings Institute chart that shows that "adding new jobs at a rate of 200,000 a month would take us 150 months -- or 12.5 years -- to get back to normalcy." Normalcy being a pre-recession level of employment. The bad news is that so far this year only in April did the economy generate 200,000 new jobs.

You can read the full Job Gap report written by Michael Greenstone and Adam Looney here. As of June, employment numbers, the job gap stands at almost 11.3 million jobs.

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