US Economy Is A House Of Cards

 

by Dr. Paul Craig Roberts

 

The US economy is a house of cards. Every aspect of it is fraudulent, and the illusion of recovery is created with fraudulent statistics.

American capitalism itself is an illusion. All financial markets are rigged. Massive liquidity poured into financial markets by the Federal Reserve’s Quantitative Easing inflates stock and bond prices and drives interest rates, which are supposed to be a measure of the cost of capital, to zero or negative, with the implication that capital is so abundant that its cost is zero and can be had for free. Large enterprises, such as mega-banks and auto manufacturers, which go bankrupt are not permitted to fail. Instead, public debt and money creation are used to cover private losses and keep corporations “too big to fail” afloat at the expense not of shareholders but of people who do not own the shares of the corporations.

 

 

 

Profits are no longer a measure that social welfare is being served by capitalism’s efficient use of resources when profits are achieved by substituting cheaper foreign labor for domestic labor, with resultant decline in consumer purchasing power and rise in income and wealth inequality. In the 21st century, the era of jobs offshoring, the US has experienced an unprecedented explosion in income and wealth inequality. I have made reference to this hard evidence of the failure of capitalism to provide for the social welfare in the traditional economic sense in my book, The Failure of Laissez Faire Capitalism, and Thomas Piketty’s just published book, Capital in the 21st Century, has brought an alarming picture of reality to insouciant economists, such as Paul Krugman. As worrisome as Piketty’s picture is of inequality, I agree with Michael Hudson that the situation is worse than Piketty describes.

Capitalism has been transformed by powerful private interests whose control over governments, courts, and regulatory agencies has turned capitalism into a looting mechanism. Wall Street no longer performs any positive function. Wall Street is a looting mechanism, a deadweight loss to society. Wall Street makes profits by front-running trades with fast computers, by selling fraudulent financial instruments that it is betting against as investment grade securities, by leveraging equity to unprecedented heights, making bets that cannot be covered, and by rigging all commodity markets.

The Federal Reserve and the US Treasury’s “Plunge Protection Team” aid the looting by supporting the stock market with purchases of stock futures, and protect the dollar from the extraordinary money-printing by selling naked shorts into the Comex gold futures market.

The US economy no longer is based on education, hard work, free market prices and the accountability that real free markets impose. Instead, the US economy is based on manipulation of prices, speculative control of commodities, support of the dollar by Washington’s puppet states, manipulated and falsified official statistics, propaganda from the financial media, and inertia by countries, such as Russia and China, who are directly harmed, both economically and politically, by the dollar payments system.

As the governments in most of the rest of the world are incompetent, Washington’s incompetence doesn’t stand out, and this is Washington’s salvation.

But it is not a salvation for Americans who live under Washington’s rule. As all statistical evidence makes completely clear, the share of income and wealth going to the bulk of the US population is declining. This decline means the end of the consumer market that has been the mainstay of the US economy. Now that the mega-rich have even more disproportionate shares of the income and wealth, what happens to an economy based on selling imports and off-shored production of goods and services to a domestic consumer market? How do the vast majority of Americans purchase more when their incomes have not grown for years and have even declined and they are too impoverished to borrow more from banks that won’t lend?

The America in which I grew up was self-sufficient. Foreign trade was a small part of the economy. When I was Assistant Secretary of the Treasury, the US still had a trade surplus except for oil. Offshoring of America’s jobs had not begun, and US earnings on its foreign investments exceeded foreign earnings on US investments. Therefore, America’s earnings abroad covered its energy deficit in its balance of trade.

The economic stability achieved during the Reagan administration was shattered by Wall Street greed. Wall Street threatened corporations with takeovers if the corporations did not produce higher profits by relocating their production of goods and services for American markets abroad. The lower labor costs boosted earnings and stock prices and satisfied Wall Street’s cravings for ever more earnings, but brought an end to the rise in US living standards except for the mega-rich. Financial deregulation loaded the economy with the risks of asset bubbles.

Americans are an amazingly insouciant people. By now any other people would have burnt Wall Street to the ground.

Washington has unique subjects. Americans will take endless abuse and blame some outside government for their predicament–Iraq, Afghanistan, Libya, China, Russia. Such an insouciant and passive people are ideal targets for looting, and their economy, hollowed-out by looting, is a house of cards.

 

About Dr. Paul Craig Roberts

Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following. Roberts’ latest books are The Failure of Laissez Faire Capitalism and The Failure of Laissez Faire Capitalism and Economic Dissolution of the West and How America Was Lost.

 

 

 

Retail Apocalypse: The Slow Steady Death Of The American Middle-Class Consumer

 

 

The Emperor’s New Clothes‘  describes a kingdom where only a fool dare admit that the emperor has no clothes.

 

 

Family Dollar And Coldwater Creek Are The Latest ‘Retail Apocalypse’ Victims 

20 Stunning Facts On The US Retail Apocalypse 

 

 

 

 

All The Presidents’ Bankers: 100 years of ‘Bromance’ Between Presidents And International Bankers

Via: Democracy Now

With U.S. inequality at its highest point since 1928 and Wall Street bonuses hitting pre-2008 levels, we look at the 100-year history of secret collusion between Washington and the financial industry. In her new book, “All the Presidents’ Bankers: The Hidden Alliances That Drive American Power,” financial journalist Nomi Prins explores how a small number of bankers have played critical roles in shaping a century’s worth of financial, foreign and domestic policy in the United States. Prins examines how these relationships have influenced events from the creation of the Federal Reserve, the response to the Great Depression, and the founding of the International Monetary Fund and the World Bank. Now a senior fellow at Demos, Prins is a former managing director at Bear Stearns and Goldman Sachs, and previously an analyst at Lehman Brothers and Chase Manhattan Bank.

 

 

 

 

Banks Are Like ‘Government-Sponsored Mafias’

It Takes A Pillage        ebook preview

ebook preview: All The Presidents’ Bankers

 

 

 

 

 

‘I’m Forever Blowing Bubbles’ Sing The Globalists To Fleece The Public

 I’m Forever Blowing Bubbles

Lyrics

Verse 1

I’m dreaming dreams,
I’m scheming schemes,
I’m building castles high.
They’re born anew,
Their days are few,
Just like a sweet butterfly.
And as the daylight is dawning,
They come again in the morning.

Chorus

I’m forever blowing bubbles,
Pretty bubbles in the air,
They fly so high,
Nearly reach the sky,
Then like my dreams,
They fade and die.
Fortune’s always hiding,
I’ve looked everywhere,
I’m forever blowing bubbles,
Pretty bubbles in the air.

 

Economic bubbles are generated when governments work together with monopolies and cartels. The biggest monopoly is the Federal Reserve Bank, a privately owned monopoly that prints money out of nothing and charges principal and interest to the swindled debtor. Since the 1933 bank holiday by President Roosevelt, American taxpayers have been exploited by a ‘debt-money‘ system. This system ony creates the principal when a loan is made, the interest that is charged to the debtor is not created, so, like a game of musical chairs, only some of the debtors can pay off their loans. 

A debt-money system by definition is a fraud because it demands the impossible. There is not enough money in the economy for all the debtors to pay the principal+ interest because only the principal enters the economy. So debt must increase and we all, no matter how productive or wealthy, become slaves to a private monopoly enforced by the government.

Look at history: the South Sea Bubble, The French Mississippi Bank Bubble, The Roaring  20s Bubble and the crash of ’29, The numerous real estate bubbles, stock market bubbles, Dot-Com Bubble, Housing Bubble, Higher Education Bubble, Obamacare, all involve government in partnership with cartels and monopolies.

It’s a formula that worked in the past, is working right now, and will work in the future.

 Government + Monopoly =’Bubbles R Us’

Monopoly = 2 Big 2 Fail = Profits are private and only for the privileged few, while losses are public and become debts the taxpayers will pay.

 

 

 

The Best Way To Rob A Bank Is To Own One

John Law’s Mississippi French Bank Bubble

The South-Sea Bubble

Bill Black: Two Sentences Explain The Housing Bubble

The Federal Reserve Created The Roaring 20s Bubble and The Crash Of 1929 

ebook preview: The Demographic Cliff

The Higher Education Bubble

‘Artificial Scarcity’ Weapon Concentrates Wealth And Power!

Artificial scarcity describes the scarcity of items even though the technology and production capacity exists to create an abundance. The term is applied to non-rival resources, i.e. those that do not diminish due to one person’s use, although there are other resources which could be categorized as artificially scarce. The inefficiency associated with artificial scarcity is formally known as a deadweight loss.   (Wikipedia)

Scarcity may be a weapon manufactured to concentrate wealth and power or advance an agenda.

Sugar  Tobacco  Opium  Oil  Diamonds  Tea Cotton Silk

Airline fares  McRibs   Disney

 

 

 

Have You Ever Tried To Sell a Diamond?

Your Freedom To Travel On Public Roads Is Under Attack!

Via: Activist Post

Drivers Forced onto Tollroads in Texas

by Aaron Dykes

Private Interests Inhibiting Free Travel on Public Roads – Paid for By Taxpayers 

The overlapping control grid of the Trans-Texas Corridor/ NAFTA Superhighway and Agenda 21 urban redevelopment in the Texas Triangle (ref: America2050.org) is taking over public roadways and directing human behavior.

Read Aaron Dykes full article

 

List of toll roads in the United States

Toll Roads and Double Taxation

Taxpayers Footing The Bill For Foreign-Owned Toll Road In Texas

Spain’s Cintra Goobles Up Sixth U.S. Toll Road Contract

Foreign Companies buying taxpayer funded roads and bridges

The State Of The Union 2014: Analysis Of What’s Really Going On!

The State Of The Union 2014 as delivered by Barrack Obama does not reflect the reality that I observe happening in America.  Obama and ‘Government Statistics‘, as reported by the ‘Presstitutes‘ in the lamestream media, paint a rosy picture of Americas’ culture, politics, economics and foreign policy. We are told that ‘things’ are improving. Oh really?

Listen to Joel Skousen: Jesse Ventura: Daniel Estulin for their analysis of what is really going on!

 

Jesse Ventura: Off The Grid

Joel Skousen: World Affairs Brief

Conspiracy Is A Thread That Runs Throughout The Tapestry Of Roman History

“Conspiracy is a thread that runs thoughout the tapestry of Roman history”  – Victoria Emma Pagan

Cicero:

“When, O Catiline, do you mean to cease abusing our patience? How long is that madness of yours still to mock us? When is there to be an end of that unbridled audacity of yours, swaggering about as it does now? Do not the nightly guards placed on the Palatine Hill—do not the watches posted throughout the city—does not the alarm of the people, and the union of all good men—does not the precaution taken of assembling the senate in this most defensible place—do not the looks and countenances of this venerable body here present, have any effect upon you? Do you not feel that your plans are detected? Do you not see that your conspiracy is already arrested and rendered powerless by the knowledge which every one here possesses of it? What is there that you did last night, what the night before— where is it that you were—who was there that you summoned to meet you—what design was there which was adopted by you, with which you think that any one of us is unacquainted?”

M. Tullius Cicero. The Orations of Marcus Tullius Cicero, literally translated by C. D. Yonge, B. A. London. Henry G. Bohn, York Street, Covent Garden. 1856.

full text

 

43 Emperors died from Assassination/murder/execution

Conspiracy of Cataline   Wikipedia

ebook preview:  Conspiracy Narratives in Roman History

Do you question the ‘official story’ version of historically important events?

When the ‘official story’ versions of history don’t fly

Commodus, Perinnis, Cleander, Papeirius Dionysius and the engineered grain shortage 

Wikipedia: Commodus

Are We Rome?

No More Fake News

Via: worldaffairsbrief.com

by Joel Skousen

HOW TO ANALYZE THE NEWS AND WHAT GOES ON AROUND YOU

Critical analysis of current events is a complex process that is not systematized or rigid. All the information you see or gather is, generally, a combination of truth, half-truths, and error. Filtering out the truth begins with finding reliable sources, as well as critically scrutinizing sources that are known to have a specific bias.

Reliable Sources: No journalist or historian bases his writings on original material, except when relating what he or she personally experiences. This world is much too big with much too much going on for anyone to directly witness anything but a small fraction of life’s happenings. Thus, we all have to rely on sources of information. As all of my readers know, most of the world has become heavily reliant upon the establishment media. People are busy, with little time to study and analyze current events. So they scan the front page each day, or watch the TV evening news, relying on these easy, quick sound bites to “inform” them about the world.

Almost everyone who gets this minimum dose of daily news thinks that they know what is going on in the world. This is not so, even though the media rarely tells an outright lie. What writers and editors do is purposefully omit key pieces of information that would significantly change people’s opinion about what is being presented. This brings up the first rule in finding reliable sources. Search for someone who is skeptical of the official version, and who searches out key information that has been withheld by establishment sources.

It is fascinating to see how uniform the evening news is. No matter which channel you turn to, the same stories appear with the same general emphasis, even with regard to local stories. A common illusion today is that Fox News is significantly more conservative than the other big three networks. Not so. Fox is merely playing the role of the pro-government cheerleader, just like CNN did during the Gulf War, when it came out of obscurity to become an instant major player. That never happens without government ties. Meanwhile, the other three majors are doing their part. They criticize the current administration mildly, sufficient to appear as the opposition. In reality, however, they are part of the same machine designed to protect any insider administration, whether Democratic or Republican, from its strongest critics on the constitutional right. They make sure they keep the most damaging evidences of conspiracy out of the public eye.

Virtually every major metropolitan area in the US has a major liberal, establishment newspaper which promotes this hidden agenda. In turn, every state of the Union is more or less controlled by the concentration of voters in liberal metro areas. Even though most states have a sizeable body of rural conservatives, their voice is rarely heard at the polls.

The one thing you can learn from the controlled media, including arch liberal newspapers like the Washington Post, NY Times, and LA Times, is the direction in which the conspiracy against liberty is going. I spend about a third of my time watching what the opposition does. When they start uniformly promoting certain issues in all the establishment journals (global warming, smart growth, gun control, etc.), it is obvious that there is some coordination going on. But remember, you can only learn to see through the selectively filtered news dispensed by the establishment media if you have other sources that feed you the missing pieces.

Read The Full Article at:  Joel Skousen’s World Affairs Brief (http://www.worldaffairsbrief.com)

 

Tens of Trillions of Dollars are Being Extracted From The United States of America.

“We’ve got a real problem! This is a mathematical fact! Tens of trillions of dollars are being extracted from the United States of America. Democrats aren’t doing it, Republicans aren’t doing it. An entire integrated system, financial system, trading system, taxing system, that was created by both parties over a period of two decades is at work on our entire country right now. And we’re sitting here arguing about whether we should do the $4 trillion plan that kicks the can down the road for the president for 2017, or burn the place to the ground, both of which are reckless, irresponsible, and stupid.”    Dylan Ratigan

The U.S. Economy Is Being ‘Extracted’ By Bankers, Taxes And Trade

Beware Of The G20s’ ‘Totalitarian Tiptoe’ Toward A Collectivist World Government