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Corporate Profits Suck the Life Out of The Economy

Yes.

It’s market is shrinking.

Lowering taxes may make cost levels  improve but they won’t  raise the amount of revenue coming in.  Reason is, because the global population has less to spend.

Data covering the entire globe is sketchy at best.  So if we look at the US and Europe, both of which have good data, and extrapolate, we can see why we are in a slowdown period right now.

Corporate profits in the USA are the highest ever.  According to the Reagan Doctrine and Mitch McConnell, the current Republican head of the US Senate, we should be in boom times.   We aren’t.

Imagine a pie.  You cut one piece larger.  The rest get smaller shares.

Now imagine if the owners of those smaller shares, were supposed to go out, sell those slices and use that money to buy more pies?  That is how our economy works.   We work for a business, they make money, we get a salary, and we spend.  Our spending keeps the economy running so they can stay in business, keeping us employed and continuing our spending.

If we stop spending because we have to, then the corporations will fall upon hard times.

Too much of the pie is being taken out before the economic transactions can begin….

We’ve reached the point where we are asking outside investors,  to provide more pie.   That works until they start asking for their share too, as a cost of lending us their part.  Suddenly there is even less pie.

Simply put,  the money being siphoned off by corporate profits, needs to get back into the pie.

There are ways of doing that.

1) Raise taxes.  Simple, effective, and requires very little change.

2) Nationalize companies.  Often done in Latin America.  Creates stagnant economies.

3) Mandate amount of profit by forcing businesses to invest a certain percentage.  Hard to monitor and hard to prosecute.

4) Break apart all large companies so they have some competition.  Puts our nation at a disadvantage in the global marketplace.

5) Leave as it is.  America dies an economic death and  the world goes with it.

Being a political year I should make note that Romney/Ryan’s plan is to give corporations a bigger slice of the pie, shrinking the economy even more by taking more money away from those who “buy the next pies”…

A good way of seeing this is to image a modern family  consisting of a grandmother, husband, wife, and two kids.  For the longest time, the grandmother was a less then average burden.  Hardly eating any food, hardly expensive at all.  She gets sick, goes into the hospital, and medical bills are due.  Suddenly her percentage of the families income has increased.  The rest of the family has to tighten their belts so her expense is covered.

Basically corporations have become that grandmother.  Sucking up our resources on the line that says “net profit”…  It is money we pay to them, which we never see back.

Supporting a party that advocates giving them more, not less, can only lead to our each individual family’s, .. ruin.

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It’s time I put this in perspective.

Here are the news feeds.

A Different Romney Wins The Debate.
The Family Intervenes and Pushes Stuart Stevens Out of Inner Circle
Titians of Finance to Fight for Raising Taxes

Coupled with the opinion polls, what is happening is very obvious.

Americans support Democratic middle class values, they abhor the wing nuts of the Republican Party.

The opinion polls tell it all. While Romney was campaigning to see who could be the most conservative, he did very poorly against the Democrats when polled. Americans far preferred “the imploders” at first, people more mainstream in appearance, like Rick Perry, Newt Gingrich, Rick Santorium, .. that is until they became familiar with their values…

It is not coincidental, that the last two Republican presidential candidates were the ones with the most LIBERAL credentials. Because America accepts those credentials. What America rejects, is slash and burn Conservative policies, that require no personal freedoms to individual Americans, whether it is economic, vaginal, religious, or political. Everyone is expected to conform to a very narrow norm.

So we now have a Republican who did exactly what he said early during the primaries. He shook the Etch A Sketch and is now running as the Liberal Governor of Massachusetts.

“I will not give a tax break to the top 20%.
There will be no tax cut on the top one percent.
I will not get rid of Roe versus Wade. Abortion is here to stay.
I will not put religion into government. Government is Government. Religion is Religion.
I will not nuke Iran.
I will not cut one penny from government spending.
I will support the rapid growth of wind farms and solar energy.
I will not cut 716 million from Medicare, even if it IS in my economic plan.
I never proposed $5 Trillion in Tax cuts.
I will not cut spending. I will raise it by 2 Trillion Dollars.
Government is too small. I will grow government to make it better.
I will not stop women from getting abortions.
I will not stop the removal of God from government….
Homosexual marriage is not really that bad after all, as long as they LOVE each other and it’s not just sex.”

These were all in the debate. It was a different Romney speaking. Why? Because as a conservative he was losing. As a conservative he was out of touch with America. As a conservative HE WAS IN THE MINORITY WITH MINORITY VALUES.

As Conservatives long expected, Romney is a liberal. They know it. Really? How does anyone expect a Mormon to support Pat Robertson and the 700 Club? You do it out of expediency; not a genuine shared system of belief….

But the point of this is not about Romney. It is about Conservatism. Conservatism fails, and simply for that reason alone, it is not upheld by a majority of Americans.

Which means, to win, one has to be a Liberal Republican… Just look at the polls. As soon as the Liberal Romney comes out of the closet, the polls get real tight….

But, as we saw with Bush W. You may run as a Liberal, but when you get in, it’s the Conservatives who take over. Two wars, a pharmacy company bailout, and regular government operation, all which were financed by our grand children’s future payroll deductions. They get to make less money so today’s Republicans can take it all.

In other words, to be a Republican President, you have to “trick” yourself into that position.

So, America, I know it sounds nice now, but over and over and over you have said, no that is not what we want.

What we do want, is someone who will do what we want, when they get into running America. let’s take the last president for example. Obama got us out of a recession in record time. One that was far worse than the Great Depression to some extents. Obama saved the American Automobile Industry. To do so he had to drive hard bargains against all parties . Obama killed Osama Bin Laden. America got what it paid for when they voted Obama.

Why change horses in the middle of the stream, especially when the other horse is heading back in the other direction? The wrong direction according to almost all Americans?

Romney knows that backwards direction leads to ruin. That is why the new Romney pushed the campaign message- minder outside the inner circle, and why Romney is now currently running for women’s rights. for the secularization of government, for the complete protection of the environment, for the elimination of greenhouse gases, and for the increase of taxes on the wealthy. That is why Romney is doing better in the polls….

Conservatism is truly dead.

Under severe pressure led by US Corporate interest, the British Government has revoked embassy privileges of Ecuador, thereby allowing British police to enter and snatch Julian Assange, who is wanted by the Swedish government on a rape charge made by an accomplice in a consensual relationship gone wrong.

A brief history. Sweden under diplomatic pressure from the United States, prosecuted Assange on charges no other Swede would ever have to face. There is considerable evidence that the person bringing the charge is doing so, only to avoid prosecution and future incarceration themselves. So, if this is valid we have a trumped up charge being made by Sweden.

They have asked Britain to extradite him. How many rapists has the US asked to be extradited back here? None? Britain complied, and Assange took refuge in the Ecuador Embassy and requested asylum. Ecuador yesterday said they would grant it, then, their president said he hadn’t decided yet, after the new feeds were buzzing with the news.

Britain, then revoked Ecuador’s embassy privilege and amassed police in front of the building. Word got out and protesters quickly lined up protecting the building.

At stake is the sanctity of law. Can laws be arbitrarily enforced or not whenever authority feels like it? Obviously yes, if the power to do so is greater than the forces arrayed to stop it. But, the proper question should be…. Can laws be arbitrarily enforced and still maintain their sanctity as law? No, that’s the rub. Having a law that affects one party, but not another, is exactly the same as not having laws at all. If your authority violates a standard law that says diplomats and diplomatic residences have immunity and are treated as foreign soil. then you have no authority to stand behind the Magna Carta. For all will wonder, when will you change your mind about that one too?

There is no difference between the British revoking embassy privileges and taking someone hostage inside, than Iran students doing the same in 78. Britain’s actions just justified Islamic takeovers of every embassy on Muslim soil. We actually went through a Cold War, where we had known spies working out of embassy, and we never, never removed that embassy’s status and moved in taking prisoners. It would be an act of war….

If the Brits move forward, then war needs to begin anew upon corporate America. Yes, don’t get misled by the surrogates who exacerbate the problem, like Crabbe, Goyle and Malfoy. The Voldermort is American Corporate power.

Assange is not a criminal; any more than the New York Times is a criminal for publishing the Pentagon Papers….. He was a publisher, not the person leaking the story. Somehow the British Government by now arbitrarily making up rules like the Ministry of Magic under Cornelius Fudge, shows a Voldermortish dark streak running through it.

That dark streak is the Corporate headlock on American politics, who then use American muscle to pressure Britain into doing something no one really wants to do. Sweden doesn’t want him. Britain doesn’t want him. Ecuador doesn’t really want him. The only people who want him, and they want him hung,… are corporate America.

They are the problem. Not the Dumbledore…. who is made into looking like the bad guy…..

If you didn’t live baseball, this is probably over your heads.  You can get background here.

But this just came out.  Eric Cantor, the Tea Party Republican who documented here was solely responsible for the Budget Crises of August 2011, who was solely responsible for the lowering of America’s Standard and Poors Rating, who was solely responsible for the stock market crash and ensuing two quarters of luckluster growth that put the recovery back on its heels as well as putting many out of work,  that Eric Cantor who killed the $4 Trillion agreement between Speaker Boehner, Mitch McConnell, and the White House, actually heavily bought US Treasuries short in late June and early July.

When you buy something short, it means you make money when they lose value.  In baseball terms, it means you bet on an outcome and then use your position to “throw the game”…

There is no difference between what Eric Cantor did, and what Pete Rose did.  The only possible explanation is that Congress is not run by standards of excellence as high as that of baseball.

It needs to be.

Eric Cantor is not in your district.  But, you can take it out on Republicans.  All of them.  If they feel your anger, your hate, your passion, your fire, it will be a long time before the likes of  Eric Cantor return to the hallowed halls of Congress.

This is corruption in its most viable form.

How can you deny Pete Rose his spot in history, when you have someone much, much worse as second in command of the Republican Party?

How?

 

Roehmer on Morning Joe
Courtesy of Morning Joe

This came on over the background and as it sunk in, I clicked tabs to watch, not believing what I was hearing… I had to rewind and listen to the first part all over again….

He says it like it is… I didn’t know there were Republicans who still cared for this country…..

Listen especially as to the details of how he has been blocked out by the “process”… in trying to get his message out to the nation…..


Right click to open full image… Pictograph Courtesy of Viral..

So, can someone tell me again, why we shouldn’t tax the rich, and instead, balance the budget on the backs of everyone else?…….

I seem to be missing that little detail where that all makes sense……

Call it temporary insanity but let’s pretend, let’s just say, …that at one moment in time, if I chose to donate my youth out for my country, to be compensated back in the form of low pay; to completely and unjudgingly offer my fate up to the will of bureaucrats, all for the loss of my own self esteem, all for unending stretches of boredom, sparsed with interludes of a few intense seconds, that fortunately thorough my reactions and training, enabled me to continue living as I do today………….

I could reasonably be expected to be honored for that service to my nation, right?

In a perfect world, that is….

One would think, that in a perfect world, as needs were being debated across the universe of public funding, that a hierarchy resembling this, would sort of be the guideline, if not the rule?

National Heroes…..

over

We, The People…..

over

LLC corporations….

After all, if it weren’t for us, there’s a good chance those LLC. corporations wouldn’t be able to do business in a free and prosperous society, you would think?….

One would think, that if one of these heroes needed medical care, with the tremendous amounts of money being thrown away by our government daily, in the forms of corporate tax breaks enabling corporations to make “record breaking profits”…. that they would be put at the top of the list.. don’t you think?

Sorry, CEO… your operation will have to wait… We have a veteran who is in dire need ahead of you….

In a perfect world….

One would think, that a voucher system would be in place, or a blank check, where any veteran could walk into any hospital, and get immediate, necessary medical attention, have his prescriptions filled as a privilege for his service, and that the bill would be willing be paid by those with monetary resources more than adequate for their own needs?

One would think, (right?)… that it would be CEO’s, those who give pink slips so they can break profit records, those who cut benefits so they can break profit records, those who don’t invest in America so they can break record profits, ….who should be the ones finding themselves regulated to CEO hospitals, where they would then have to settle in on a waiting list for the next opening to occur, where they had to endure budget cutbacks and go without life-saving medicine because there was no money left in the CEO fund, perhaps because it had all gone to Veterans to pay THEIR expenses?

In a perfect world…..

In a perfect world, veterans would need no freebies…. They would not need welfare, or a pension, or a humble stipend to eke an existence… They would be working, contributing to society, in any way they could… If they had no legs, they would be outfitted at corporate’s expense, so that would not be an issue… If they had no arms, they could be outfitted at corporate’s expense so that was not an issue. If they had psychological damage, (and who wouldn’t?) they could be treated at corporate’s expense… so that was not an issue.

If they were so badly damaged that they create an efficiency drain on society, they could be honored for their sacrifice, and a useful voluntary capacity could be created to honor that commitment once made so long ago… Perhaps speaking about serving one’s country in every class, in every school, in every county? Can you think of any better civic’s lesson?

There’s a lot that can be done…

The problem is that veterans are deemed as just another expense…. Because to corporate America, that is just what they are… An expense, an obligation to be met that gets in the way of their making more money…

Unfortunately, our Congress is owned by Corporate America….

What should and does need to happen, is this relationship needs to be exposed. We need to call them out on it…

Republicans and Democrats are both complicit in allowing corporate raiders this unprecedented power. But Republicans are the symbol of Corporate America. Republicans are the ones who championed the Corporate Takeover. Republicans are the ones who dismanteled the safeguards that had been put in place to prevent that takeover from happening. That is why they need to go. Disappear… Whoever is left, the remainder, most likely after seeing the elimination of a large majority of their peers, will think twice before following their Dark Lord, now a soul less wanderer eking existence.. ……

In a perfect world…

Unfortunately, today we need to contend with obscene amounts of money saying Corporate is Good; Government Fairness is Bad….

But we have our lives telling us the opposite… It will take courage and strong will, to override all the overload of sensory data being pipelined into our soul, but we still have hearts, and those hearts are attuned to what makes America special. great, and the best place to live on this earth….

WE can still dream….

And those dreams should include a perfect world… one we CAN make happen, at least for those without whom we would not have the freedom, the resources, the nation, we have today….

Here’s to a perfect world?

Yep, that’s about it.

Late Friday afternoon, as books were being closed all over the financial world for the upcoming weekend, one of the last great ones of summer, Standard and Poors dropped the Federal Government’s bond rating from AAA+ to AA+…….

Moody’s and Fitch’s, the other two bond rating institutions, did not…

Weird…………………………………………….

Here is their explanation as to why…..

S&P has said their decision to downgrade the U.S. was based in part on the fact that the Budget Control Act, which will reduce projected deficits by more than $2 trillion over the next 10 years, fell short of their $4 trillion expectation for deficit reduction.

They let the Treasury know before announcing (even though word was leaked during the day’s stock trading…)

The Treasury responded with an…..” Uh, it looks here like you made a $2 Trillion math error…” Once corrected there is a $4 Trillion savings in this bill…. ”

Standard and Poor’s, sheepishly caught in their miscalculation, responded, “Oh, did you say only two trillion? That’s nothing; we’re keeping the bond rating as it is….”

So Standard and Poors thinks the amount of $2 Trillion is significant enough to destroy faith in the US Government.. and drop our rating from AAA+ to AA+ ….. but when they make a $2 trillion math error, a very basic one at that, it is not significant enough to change it back….

Obviously they have another reason for dropping the rating that has nothing to do with the reality of economics or politics… Usually when something like this happens, it means someone is on the take…..

How could they make such an error…

Specifically, CBO calculated that the Budget Control Act, including its discretionary caps, would save $2.1 trillion relative to a “baseline” in which current discretionary funding levels grow with inflation. S&P incorrectly added that same $2.1 trillion in deficit reduction to an entirely different “baseline” where discretionary funding levels grow with nominal GDP over the next 10 years. Relative to this alternative “baseline,” the Budget Control Act will save more than $4 trillion over ten years – or over $2 trillion more than S&P calculated. (The baseline in which discretionary spending grows with nominal GDP is substantially higher because CBO assumes that nominal GDP grows by just under 5 percent a year on average, while inflation is around 2.5 percent a year on average.

The impact of this mistake was to dramatically overstate projected deficits—by $2 trillion over 10 years…..

S&P did not believe a mistake of this magnitude was significant enough to warrant reconsidering their judgment, or even significant enough to warrant another day to carefully re-evaluate their analysis.

They said, “That’s our story and were sticking with it…”

Even though they know it is completely a lie and a bunch of crap.”

The magnitude of this mistake – and the haste with which S&P changed its principal rationale for action when presented with this error – raise fundamental questions about the credibility and integrity of S&P’s ratings action.

Obviously, obviously, obviously, obviously, obviously, obviously, obviously, obviously, obviously, Standard and Poor’s is more concerned with their impact on the market, than they are with whether what they say, is true, or not….
They, are the Rupert Murdoch of the bond rating services…..

There are two choices before us:

One, we tax the top 1% and live the quality of life we deserve…..

Two, we continue the tax cuts, allowing the top 1% to not pay their fair share in taxes, and continue the quality of life we’ve suffered since 2001..

Simple microcosmic view: find a pothole in today’s state road system… You can’t, it’s covered up with stimulus funded new pavement… Nice, crisp, sharply painted blacktop, as far as the eye can see….

Compare that to the Bush Era… Potholes galore and getting them fixed was like pulling teeth…

Now pull back and look at your entire lifestyle with all it’s moving parts…. first see one where everything outside your control is operating smoothly like clockwork ( a Visa commercial comes to mind), and the other where it is all cacophonous and catastrophic…..

So, in which type of lifestyle do you prefer to live?

Decide and vote.