"The Capitalists will sell us the rope with which we will hang them."
Commentary & Analysis
Everybody loves the Street!
It used to be we only had bulls, bears, bucket shops, manipulators (aka specialists), syndicates (aka manipulators), sheep, wolves, tipsters, and an assorted array of those fond of larceny occupying Wall Street; in short, the embodiment of what Goldman Sachs built its reputation upon. Now, we have to add nut jobs, socialists, Marxist, Communists (yes you Van Jones; ex-Green Jobs Advisor of the Obama administration: I’m talking about you), movie stars (sorry, I said nut jobs and socialists and communists already), the clueless, union members (again, sorry for the redundancy), the self-righteous, idealists, kids who hate school and Cramer (very scary I know). Wow! In short, everyone loves the Street now.
Why is this important? It is important for a lot of different reasons, I guess, depending on where you sit or stand. But I think it is important as a reflection of mood–bad mood on the part of everyone. And despite my less than flattering summary of the participants, many have legitimate gripes about a system that has become increasingly imbalanced in terms of haves and have-nots as well as corrupt with crony capitalism.
And if markets ultimately follow mood, it could get very ugly out there.
Consider these statistics, especially for those of you who believe in the hokum that what we do with China has anything whatsoever to do with free trade–a mantra continually espoused by both sides of the calcified corrupt cronies we call Congress.
Here is what those so-called “platform” companies, “free-trade” deals, and superpower status has wrought upon us in the last 10-years:
- $1.4 trillion in deficit
- Loss of triple-A credit rating
- Almost half the country on some form of welfare
- Massive voluntary technology transfer to a budding future enemy – China
- Debasing of the currency making all of us poorer for it
- The mind-numbing quest for empire and all its misery (George Washington is rolling in his grave)
- US semiconductor and electronic component producer employment down 42%
- Communications-equipment producers’ employment down 48%
- Textile and apparel employment down 63% and 61%, respectively
And what have the dunces in congress, both sides, done recently to help this problem: Oh yeah, passed more “free-trade” deals to enrich their big campaign contributors who are always there to demonize when the need be; no matter these recent deals, especially the Korean deal, will likely lead to another hundreds of thousands of more job losses in the United States. Don’t worry; I am sure “retraining” for any lost jobs is included in the package. And these guys have the gall to tell us government can “create jobs.”
*Platform Companies – this means trading jobs for corporate profits (it is what shareholders demand and helps explain why there has been such a huge disconnect between the financial economy (Wall Street) and real economy (Main Street). Platform companies manufacture offshore (read: China, mostly) and keep some value-added locally, such as R&D and technology integration, etc.; the really brainy stuff for example. This is the stuff that enriches the Davos-type elites so plugged into the global economy, and those in the work force who have above average educations and skill sets demanded for the value added part. However, the rest of the serfs in their home country either cannot find jobs, are woefully underemployed, prefer sitting home with 99-weeks of unemployment compensation, or are getting “re-training”, which is a joke in its own “right” to a large degree, albeit the private companies that take on this task because the need for specifically skilled workers has vanished along with the manufacturing content that used to keep them skilled.
Sorry I had to cut this missive short; I am grabbing my back pack, cans of tuna, laptop, cell phone, and other accoutrements afforded me thanks to the wonders of capitalism and heading off to Wall Street to make some new friends.