Posted 10 years ago on Jan. 9, 2012, 3:41 p.m. EST by LloydJHart
from Vineyard Haven, MA
This content is user submitted and not an official statement
Obama's Transfer Of The Public's Equity To The 1%
By Lloyd Hart 01/09/2012
So they steal your house and will now rent it back to you at outrageous artificially inflated rent while still taking 50% of your deflated income to earn a profit margin off what used to be your equity. The number would pay for housing used to be 29% of a one person's income regardless of marriage. Now housing is 50% of two people's deflated income combined. And this is because the 1% have chosen to invest in the housing market instead of investing in the next big thing, the next trans-generational technology, manufacturing it here in America and selling it not only to consumers in America but to the world.
They put the squeeze on consumer income by artificially inflating the cost of living first by radically inflating the cost of housing in the eighties. Then they began the process of free trade by stealing high paying Canadian jobs and moving them into "Right to Work" states, mostly in the south where workers were being paid one third of what Canadian workers were earning for those same jobs. Then once the American and Canadian unions failed to stop it they push through the North American Free Trade Agreement moving those same jobs to the NAFTA zone in Mexico and then expanding those deals further and creating a very special deal with China. China only pays a 2.5% tariff on their goods entering the US but US goods going into China must pay a 25% tariff. Now those American workers that benefited from the first free trade deal are back down to the poverty that they had in the sixties in the south.
All this explains why the 1% use investment in housing as a means to create bubbles in the market in America and why highly skilled workers that would otherwise be working in manufacturing went into the construction industry. The 1% are spending the outrageous profits they are earning off of the slave labor in China and other slave labor states to invest in commercial and residential real estate here in America but as a secondary investment scheme only. Primarily to avoid taxes and to maximize earnings but the 1% really aren't interested in investing in the America worker because the bulk of their investment capital is already invested in slave labor abroad. To the 1% view investing in America is more like going to the casino rather than building a civil society. You win some, you lose some but those cute little slaves in China are still putting money in the pocket of the 1%. This also explains the expansion of casino style risk taking in banking in America, the bulk of 1% investment is not being made in America. So banking has to be loosen up to make it more attractive and less risky (credit default swaps or rich man's stupidity insurance) for secondary capital investing to be acceptable to the 1% (Thank you Bill Clinton). And of course, once the bubble bursts the 1% cash in their credit default swaps which are then bailed out by the tax payers, (AIG). And of course the 1% then use the slow economy to impose social engineering austerity plans to insure their loans to the government be paid back first before the government is allowed to invest in the economy making it economically harder for workers in America to fight back let alone get back on their feet.
The only way to stop this trend of the 1% stealing almost all of our income from the artificially inflated cost of living is to impose price controls and increasing tariffs on foreign goods but with the Obama regime giving away the workers housing equity to the 1%, who will then rent that same housing back to us, Obama is building the next housing bubble. If a house costs a contractor $250,000 to build a four bedroom house in wages and materials then that is what the consumer should pay for it but because the 1% that were once involved in investing in the next technology to manufacture here in America transfered the manufacturing profit model to housing a completely unregulated part of the economy we now have one housing bubble after the next.
So, Obama is giving in once again to the greed factor instead of the consumer equity model that drove the economy for sixty years keeping consumer prices low and consumer savings and purchasing power high. Well, all you young people out there better get used to paying rent and saving nothing. Unless your a really great ass kisser and can sell out your friends and can worm your way into the equity class.
Government Set to Sell Foreclosures in Bulk http://www.cnbc.com/id/45925851
The connection between artificially inflated prices in fossil fuels and housing bubbles is that the next big thing, green energy is being ground to a halt by the fossil fuel industry in America even though wind and the new printed solar panel invented in America have proven they can bring electricity in cheaper than coal and nuclear. Way cheaper when you factor in the real costs of coal and nuclear to society. A fact being aggressively suppressed in the media now that Fukushima has become a China Syndrome.
We are being collectively held back from advancing to a clean energy society by a kind of corporate Stalinism from the fossil fuel industry that refuses to embrace the future because there is no one energy monopoly that they can lord over as they do with fossil fuels. With their offshore accounts the fossil fuel industry has successfully cornered the oil, gas and coal markets driving the price of fossil fuels way beyond anything the consumer market is demanding. They do this by buying enormous amounts of call contracts on the commodities exchange to deliver fossil fuels to the greater consumer market. This is called cornering the market. Gas prices alone created by the commodities market caused the recession that drove Jimmy Carter from office. The 1% have become completely entrenched in using the commodities market to not only steal even more from consumers pockets but to create political climates around the world. Hence the cooking oil riots of the last decade.
Instead of opening the flood gates of total tax breaks and investment to the next big thing which will radically increase worker equity in the market Obama is giving away to the 1% all the worker's equity, setting back the consumer economy to the 1890s making the workers housing slaves to oligarchs who will lord over the worker's labor as if it was their own.
I guess there is no solution other than American workers fighting the labor battles of the first half of the twentieth century all over again but it will take a great deal more blood, sweat and tears than the existing worker movements in America are willing to put on the line. With 50% of Americans at or below the poverty line we will hopefully start to see some real fight come out of the American worker instead of the phony Tea Party Movement and the lame, wet rag Occupy Wall St. movement. Poverty has a way of motivating people to really fight and even die for their children's and grand children's future. I guess we have to wait until 60% of Americans are at or below the poverty line like in 1890 before we see some real action taken by the American worker.
Worker Solidarity! Brothers and Sisters. Because It's What Works.
Lloyd Hart 508-687-9153