Thursday, June 25, 2009

America Gets Poorer (Part II)

Twenty years ago few educated people listened when anyone talked about the obvious plan by Wall Street to use the Federal Reserve system to transfer all wealth to them from us.

Now they all listen as they see retirement plans and jobs go up in smoke while homes are being foreclosed and state and local governments slide into bankruptcy. Our unemployment rate is actually higher than it was in 1930.

In many other ways we are much worse off today than in 1930. Our current Gross Domestic Product (GDP) has contracted to just under 14 trillion dollars. But 40% of that measure of domestic output of goods and services includes government which produces nothing we consume like food and clothes. If we were charitable and subtracted 35% and not 40% from 14 trillion dollars for government, we would see that Americans are producing 9 trillion dollars in real consumable wealth.

Yet today we have an 11.4 trillion national dollar debt to service. We are adding 2 trillion dollars a year to that debt and have allowed the Congress and two Presidents to obligate us to pay up to 13 trillion dollars in Bail Outs to their benefactors in Wall Street who own the Republican and Democratic parties.

Nobody disputes the fact that we are on track to a 20 trillion dollar debt. Interest rates have been inching upwards. For the next several weeks the US Treasury will be selling more than 100 billion dollars a week in bonds in order to finance the deficit and the Bail Outs. So what happens to us when we have to pay 2 trillion dollars a year in interest with a GDP of only 9 trillion dollars in real output? What happens when the Chinese tell us to double the interest rate and we have to pay 4 trillion dollars from that 9 trillion dollars that used to be ours?

Already there are people in China and Japan who are saying they should only sell us bonds in Chinese yuan and Japanese yen so they can protect themselves from a devaluing American currency.

In my last essay I explained that when we went over 150,000,000 in population we had to begin importing oil and other natural resources. To earn enough foreign currency to buy oil from overseas we were supposed to lower our wages so foreigners making fifty cents to a dollar an hour could afford to buy our exports. We did not do that.

Instead Wall Street decided to give 156,000,000 legal and illegal immigrants plus their children our standard of living by borrowing money from foreigners to buy oil and other imported goods and resources. When, not if, foreigners refuse to accept IOU Nothing Federal Notes and demand that we earn yuan and yen and euros to buy our imports, we will have to cut off all oil imports for the bottom half of American consumers. We will do that by raising the price of gasoline to $4 a gallon and then to 7 and then 10 and then to $20.

I have heard that we are on target to add another 50,000,000 and then another 100,000,000 and even another 150,000,000 people. As it stands, we will have to cut after tax and inflation real wages in half to balance our trade deficit. That means foreigners will be able to buy our exports and the working class and the middles class will not be able to either buy foreign cars or even to buy gas to drive to work.

Of course if we add another 100,000,000 people, we will have to boldly face a 65% or even a 70% permanent pay cut.

I believe that the bankers on Wall Street knew this would happen when they deliberately supported unlimited legal and illegal immigration. Wassilly Leontieff did an input output analysis of the American economy in the 1930s where the outputs of the mining industry for example, coal and iron, became inputs to the steel industry whose output in turn became inputs to the construction, automotive and appliance industries, such as, washing machine manufacturers.

A follow up study at Stanford in 1955 found that Americans enjoyed high wages because they added valuable skilled labor to their abundant natural resources. The study specifically warned us that if we went above 150,000,000 in population we would have to cut wages to pay for imported oil, minerals and other natural resources.

Yet Wall Street went ahead with their plans to impoverish Americans. Why? I believe their goal is to reduce Americans to slavery.

There has been in place since 1913 another scheme to transfer all wealth from the working and middle classes to Wall Street. As I said, we are on track to a 20 trillion dollar national debt and an annual interest only payment of 4 trillion dollars. And yet, as my long time readers know, all government debts are fictions. I promise to explain just why government debts are fictions in the next installment in this series.

In Part I of this essay I pointed out that housing prices were forced up through massive immigration and that savings went below zero. Wall Street created a system where 85% of youmg couples could no longer afford to buy homes. The Congress which is owned by the bankers passed the Housing and Economic Recovery Act of 2008 which had a provision which will now be used by the nre administration to bulldoze whole sections of towns with dozens of foreclosed homes.

Think what this means. They will be bulldozing homes and denying housing to the 80% who will never be able to afford to buy a home. And never forget that they did that after running up the housing bubble and crashing the market so that they could take away all the savings whether it was in our 401K or in our home equity. And they did that while knowing their unlimited immigration policy would permanently cut our wages in half. This kind of clever but insane cruelty boggles the mind.

I have talked many times in the past of Wall Street’s divine right to steal billions of dollars each week from unaudited federal spending under Democratic and Republican administrations alike. They have sent this money overseas where they combined it with their profits from laundering more than a trillion dollars in drugs and up to 400 billion in illegal weapons plus the money for cleaning 500 billion dollars a year in bribes for politicians around the world.

All that money will soon be repatriated after the dollar crashes and they buy what is left of America for pennies on the dollar.

And now the new administration has decided to turn regulatory control of the economy over to the privately owned Federal Reserve Bank. The Congress gave the FED a license to create our money long ago and now they will soon have the power both to create our money and to run the economy as well.

We will be turniing over control of all our savings, our investments, our banking system, our companies and our government to criminals who have systematically looted this nation for more than one hundred years.

Does this mean we are to formally acknowledge Wall Street as Master and ourselves as slaves? I say no. I was born a free man and will die a free man.

I agree with Gerald Celente when he says we will very, very soon have food riots in major American cities. I also predict that if we do nothing to stop the bankers, millions of Americans will decide to kill themselves rather than either to steal from their neighbors or to die slowly of starvation.

Are we to have widespread starvation in America and suicides in the millions because Wall Street will not allow us to tell people through our universities and the mainstream media that government debts are fictions? Will the Lords of Wall Street forever deny us common folk the right to audit federal spending? Were we predestined to become slaves in service to our betters at Goldman Sachs and the Federal Reserve?

I do not think so.

What is more important, our real lives or Wall Street’s dreams of power and glory?


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