It is really almost beyond belief. But, nonetheless true. Even in the midsts of a horrible economic depression, it is still the official U.S. governmental policy to reward companies for off-shoring jobs.
Not just be neutral about it. But to REWARD them.
"...a bill that would have ended certain tax credits and deferrals to companies expanding or moving overseas was voted down in the Senate last week." (from the LA Times, here, the very last sentence in the article)
This is the danger of handing government over to the money powers. The money powers then use government to advance their own interests, over those of the people.
It also speaks to the dangers of the handing the voice of the media over to the money powers. They will not bring these issues up to the public consciousness, and will, in fact, suppress any discussion of them.
Read the whole Times article. The pace of off-shoring, even in the midst of this depression, continues to increase. It is an economic truism that without a job, you have nothing to trade; i.e., productive jobs are the foundation of economic activity.
Thus, on the immediate horizon: long stagflation, meaning rising inflation along with shrinking wages and fewer jobs. In other words, we continue to get poorer and poorer.
And this is the official governmental policy.
That is all.
Showing posts with label Unemployment. Show all posts
Showing posts with label Unemployment. Show all posts
Wednesday, October 6, 2010
Thursday, December 31, 2009
Why are We Facing a Jobless Recovery?
Most people view the economy in a primitive fashion, like a force of nature out of their control, as our ancestors viewed the fertility of the land. Unfortunately, this primitive conception of the economy is false in today's world. The industrial economy is a product of policy. Economic problems today require an informed political response, not just a "gee, sure hope it get's better next year" attitude.
For example, today we are being told that we face a jobless recovery, and we should expect to wait 5-10 years for unemployment to drop down to natural levels. But we are never told WHY this is so, why this recovery is so much worse than others.
Such obfuscation is not surprising, as the reason involves a deliberate exploitation of the masses by the parasitic financial elite. In plain terms, our governmental policy is to sacrifice the interests of the workers of America, for the sake of the interests of the bankers of America. Here's how:
It all starts with the price of land, residential and commercial property. In order for a general economic recovery to occur, those prices must fall. For job creation, quite simply, we need lower rents, which allows business formation, cost cutting, and economic expansion.
The big problem here is that if property values were allowed to fall, banks would be wiped out. Supporting property values props up banks, but keeps rents and costs high, preventing economic recovery.
But it is current economic policy to prevent banks from realizing their losses. Free market price discovery has been eliminated. Now, instead of mark-to-market, we have mark-to-fantasy, and instead of realizing losses on loans, we have extend-and-pretend. Debt is to be modified outward by rate reductions, deferral of reserves, deferral of amortization, or any method conceivable EXCEPT principal reduction.
This is a textbook example of how the parasitical banking class destroys the health of the larger economic body, as parasite bankers maintain their wealth while impoverishing the masses.
The solution is plain. Wipe out the debt, liquidate the banks, flush the parasites, and enable the real economy to get going again -- Jubilee! It is only a matter of political awareness and will.
For example, today we are being told that we face a jobless recovery, and we should expect to wait 5-10 years for unemployment to drop down to natural levels. But we are never told WHY this is so, why this recovery is so much worse than others.
Such obfuscation is not surprising, as the reason involves a deliberate exploitation of the masses by the parasitic financial elite. In plain terms, our governmental policy is to sacrifice the interests of the workers of America, for the sake of the interests of the bankers of America. Here's how:
It all starts with the price of land, residential and commercial property. In order for a general economic recovery to occur, those prices must fall. For job creation, quite simply, we need lower rents, which allows business formation, cost cutting, and economic expansion.
The big problem here is that if property values were allowed to fall, banks would be wiped out. Supporting property values props up banks, but keeps rents and costs high, preventing economic recovery.
But it is current economic policy to prevent banks from realizing their losses. Free market price discovery has been eliminated. Now, instead of mark-to-market, we have mark-to-fantasy, and instead of realizing losses on loans, we have extend-and-pretend. Debt is to be modified outward by rate reductions, deferral of reserves, deferral of amortization, or any method conceivable EXCEPT principal reduction.
This is a textbook example of how the parasitical banking class destroys the health of the larger economic body, as parasite bankers maintain their wealth while impoverishing the masses.
The solution is plain. Wipe out the debt, liquidate the banks, flush the parasites, and enable the real economy to get going again -- Jubilee! It is only a matter of political awareness and will.
Friday, November 13, 2009
Can the Whole World be Export-Driven?
News is all about the falling dollar causing panic across the world, as higher currencies undermine exporting efforts. Said the leader of Brazil's state development bank (source here): “We have to be careful that our exchange rate doesn’t appreciate too much as to deindustrialize the country. The capital goods industry has suffered tremendously.” Brazil's Finance Ministry says Brazil’s currency needs to weaken as much as 19 percent for sustainable economic growth. As another example, France’s Finance Minister also stated that her government favors a strong dollar as an appreciating euro threatens to hurt European exports.
Everyone wants to expor their way to prosperity, which begs the obvious question of how that could even be possible. Implicit is the obvious truth (obvious to everyone but brainwashed free-marketeers) that exports increase a country's wealth. Yet obviously, not everyone can be a net exporter!
The chief beneficiaries are, of course, Americans, for at least as long as the export-at-all-costs party lasts. Americans get access to the cheapest stuff on the planet, because everyone undercuts their own currency to keep their exports to America up.
Unfortunately, it also means that aforementioned and wisely despised deindustrialization occurs in America at the same time! woops
What are the foreigners even getting out of it? Rapidly depreciating dollars. The world is currently being flooded with dollars, pumping up developing economies. "An unprecedented net $47 billion flowed into equities in India, Indonesia, the Philippines, South Korea, Taiwan and Thailand in the last three quarters." and this: "Chile’s peso has strengthened 26 percent this year versus the dollar, the second-biggest gain among Latin American currencies after the 33 percent rise in the Brazilian real."
As long as US rates stay low, money will flow out of the US into other countries, in what is called the carry trade. Cheap imports flow in, dollars flow out.
And we stare years of chronic high-unemployment in the face! It's no wonder, is it??? The whole process is just wacky.
The only sustainable solution is balanced trade based on policies of local development.
Everyone wants to expor their way to prosperity, which begs the obvious question of how that could even be possible. Implicit is the obvious truth (obvious to everyone but brainwashed free-marketeers) that exports increase a country's wealth. Yet obviously, not everyone can be a net exporter!
The chief beneficiaries are, of course, Americans, for at least as long as the export-at-all-costs party lasts. Americans get access to the cheapest stuff on the planet, because everyone undercuts their own currency to keep their exports to America up.
Unfortunately, it also means that aforementioned and wisely despised deindustrialization occurs in America at the same time! woops
What are the foreigners even getting out of it? Rapidly depreciating dollars. The world is currently being flooded with dollars, pumping up developing economies. "An unprecedented net $47 billion flowed into equities in India, Indonesia, the Philippines, South Korea, Taiwan and Thailand in the last three quarters." and this: "Chile’s peso has strengthened 26 percent this year versus the dollar, the second-biggest gain among Latin American currencies after the 33 percent rise in the Brazilian real."
As long as US rates stay low, money will flow out of the US into other countries, in what is called the carry trade. Cheap imports flow in, dollars flow out.
And we stare years of chronic high-unemployment in the face! It's no wonder, is it??? The whole process is just wacky.
The only sustainable solution is balanced trade based on policies of local development.
Thursday, February 12, 2009
American Media Mind Control
Classic mind control in today's headlines:
"New jobless claims drop slightly"
What a joke. They are even higher than initially reported last week. Last week's were revised UPWARD from where they were originally reported, and both weeks are WAY above anywhere we have been before. Why not some real reporting, like "Record jobless claims continue" or something like that.
From the same article: "The latest tally still was above analysts' expectations of 610,000 claims..."
Yup, it is still getting worse, faster than the experts expected.
"New jobless claims drop slightly"
What a joke. They are even higher than initially reported last week. Last week's were revised UPWARD from where they were originally reported, and both weeks are WAY above anywhere we have been before. Why not some real reporting, like "Record jobless claims continue" or something like that.
From the same article: "The latest tally still was above analysts' expectations of 610,000 claims..."
Yup, it is still getting worse, faster than the experts expected.
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