IT’S THE FUNDING STUPID!

It’s always the funding be it politicians, corporations, governments, or individuals , funding is the name of the game.

Let’s do the political side of funding first.  As the current health reform debate has proven in spades , what the people want, or think they want, or what a whole bunch need has nothing to do with the end product if there even is one.  Just to name a few of the maneuvers we have seen in this process, first the President makes a back room deal with the drug companies to ban the negotiation of drug prices in Medicare D or in any of the new programs, you saw committees hold hearings where single payer advocates were thrown in jail for trying to participate in the hearings, you have seen individual congressman force deals for their states to get to 60 votes (which they don’t even need) , you have seen a single senator kill most of the progressive parts of the proposed legislation to get his vote, you have seen the executive branch cut deals with just about everyone but us to get support  for the watered down version of the bill, hell they even got unions to sign on.  So here we sit in the middle of the biggest citizen hold up since Jessie James and we have no real idea what’s in the bill.  In this case NOthing is better than something.

Finance Reform is more of the same , by the time deals are done being cut any changes will not stop the thievery on the Street.  Banksters have to buy pants with bigger pockets to hold the rolls of cash they are getting as bonuses.  The banks are using our money (graciously given by the FED) (to who they won’t tell us) and are playing the derivative market bigger than before.  Bank CEO’s testify before congress they are doing the work of God (told you he was a vindictive prick)  and come to find out if they are doing his work then he is a crook too.

The economy is in recovery , of course they are only looking at the stock market as a lone indicator, while every other indicator is in the tank headed down , down, down.  Meantime the FED has dumped 10’s of trillions somewhere , and as myself and others have pointed out it has been going into the back entrance to the stock market through various ingenious schemes (in more honest circles , called crimes)  or some say the Plunge Protection Team has been playing the futures market big time.  Banks have been getting zero interest loans from the fed and if they just buy T-Bills they are making 3 or 4 % on money that costs them nothing, or they might be lending it to us on our credit cards at 18 to 30% .  When you look at the bank cash reserves you can plainly see a huge chunk of money that came from (where)?

They are already building another bubble and most have not figured it out yet, some believe that they are trying to rebuild the housing bubble, I don’t think so.   Cap and Trade is being set up to make the housing bubble look like a kindergarten scheme.

So here we sit, anxiously awaiting the President’s State of the Union Speech.  Will he have the balls to say “MY FELLOW AMERICANS , WE ARE FUCKED”  ?  Oh hell no he won’t , there will be all kinds of bells and whistles that say we are in recovery and that it is time to cut spending  , Oh Sweet Jesus, some saw this coming a long time ago.  God knows what the reasons he is going to go this route, I seriously doubt he’s doing it to get the lone republican vote he might get.  Some would have you believe that Scott’s victory in Mass. has caused the Dems to panic and turn hard to the middle,  I think it has been the game plan all along to bail out the banksters, and letting us swing in the wind.  It really doesn’t matter what he says or does tonight , the cards are already dealt and the little amounts they are talking about will have no effect on the economy.

Enough said about the Political side, now for our side of the problem.  Let’s keep it simple, we will not look around to point fingers at whose fault this mess really is , instead let’s just look at where Average Joe American Is today.  For 30 years the goal has been to destroy the MIddle Class of America thru various means.  From the beginning with the firing of the Air Traffic Controllers to the outsourcing of 7 million manufacturing jobs, to the outsourcing of back room jobs, to the complete relocation of entire industries, to the insourcing of jobs they supposedly coudn’t find qualified people to fill.  The bottom line in the job market at least 22% are unemployed using numbers figured the old way like Shadow Stats shows you every month.  At the same time the makeup of the remaining workforce has changed from being a single wage earner to a two wage earner family.  Now as some say this change in workforce is a good thing and perhaps it should have been but when you look at wages from 1970 till 2008 explain to me please why household income has gone from 40,000 to 51,000 bucks  almost 40 years.  You don’t get very far in trying to compare costs to wages during the same time, you only get to the cost of housing and the cost of debt servicing to eat up more than half your income.  When you add on just the cost of the necessities of life you quickly see why the Average Joe was forced to hit his credit card or his equity line just to keep from loosing ground.  All the while being encourage by Government to spend it ,it’s your money, and they did. Now most are sitting in houses whose mortgages are underwater, whose credit cards are maxed, whose job is gone or downsized and is fast approaching the point of action.

What action you Scream.  Why the only one left.  I have cringed at the saying ‘OLD ECONOMICS DOESN’T APPLY ANY MORE”  I always though the same rules apply today as they always did.  I think I may have been wrong.  The government and the corporations don’t honour their commitments, their contracts, their word, or their obligations.  When they get in trouble , they walk away from it all.  Owe a lot of money that you can’t pay, then don’t , default on it or go bankrupt.  Have a contract on a nice new shiny plane, let them come get it if they can find it.

The Supreme Court has just ruled that Corporations have the same rights as all other citizens.  What’s Sauce for The Gander is Juice for the Goose must apply here.  If Corporations and governments can just walk away from their obligations, then we must be able to do it too.   MAKE IT SO!

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Explore posts in the same categories: BOUGHT AND PAID FOR, CHECKBOOK ECONOMICS, depression, economics, HOW WE GOT HERE, IT'S THE RIGHT THING TO DO, predictions, RUNNING ON EMPTY

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One Comment on “IT’S THE FUNDING STUPID!”

  1. Junior Says:

    Obama is a feaky powerful public speaker. He can promise you less than nothing, which he did in his first state of the union address, and make you feel like he’s on your side. The tale is in the numbers: His measly jobs program funded by $20 billion we already loaned to the banks and they paid us back. Couple that with a spending freeze on domestic spending, and what do you got. That’s right. NOTHING. Barrack Obama is a failure, a Republican stooge. It’s time to start shopping for a Third Party candidate now. I’ll take Warren Buffet at this stage.


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