President Joe Biden will wreck the economy. Are we talking about another depression like Trump says on the stump? Probably not, but it’s not going to be pretty.
The Wall Street Journal editorial board looked at the Biden agenda, analyzed its costs, and the conclusion is that this plan is only good if you want Trump gone. That’s about it. There will be tax increases.
The thing about Democrats wanting to only tax the rich is that they have these big government programs that will require taxes on the middle class and the working poor. I credit Bernie Sanders for one thing: honesty. He admitted that his single-payer, Medicare-for-All program would lead to tax increases. He was unapologetic. Joe Biden thinks he can make all his economic plans a reality by just taxing those who make $400,000 or more. It won’t work.
The Journal had a lengthier op-ed this time because they know the liberal media will bury the details. They also said that the economy is on the rebound and it’ll shoot up like a rocket ship once we have acquired a COVID vaccine. For the past few weeks, Trump’s message has been hitting Joe on his socialist agenda items, his mental clarity, and the booming economy. It writes itself. We’ve seen over 10 million new jobs in four months, half of the jobs lost due to China’s incompetence in handling COVID. The president’s message is, “re-elect me and I’ll finish it.” That should be the unified GOP line.
With “Bidenomics,” we see a median household income drop by $6,500 by 2030. So, let’s say Biden wins, Trump may be gone, but you’ll be poorer and dealing with tax increases. Oh, and Biden will have to offer something big to the green Left. It’ll probably increase the cost of American families’ energy bills, for sure. That’s a double-whammy—and something that’s especially lethal to the home budgets of fixed-income seniors (via WSJ):
The issue is whether Mr. Biden’s policies will nurture this strong recovery, or slow it down as Barack Obama’s policies did after the 2009 recession. This is where the Hoover study comes in, as it examines the Democrat’s proposals on health insurance, taxes, energy and regulation. The authors are economists Timothy Fitzgerald, Kevin Hassett, Cody Kallen and Casey Mulligan. Messrs. Hassett and Mulligan were members of the Council of Economic Advisers in the Trump White House, but then the boosters of Bidenomics are veterans of the Clinton-Obama Administrations.
Mr. Hassett has done pioneering work on the impact of corporate taxation and Mr. Mulligan of the University of Chicago on the impact of government subsidies that raise the marginal tax-rate barriers as workers try to climb the economic ladder. The 50-page Hoover study is valuable because it examines policies for their incentive and supply-side effects, rather than merely macroeconomic demand-side spending.
Overall, the authors estimate that the Biden agenda, if fully implemented, would reduce full-time equivalent employment per person by about 3%, the capital stock per person by some 15%, and real GDP per capita by more than 8%. Compared to Congressional Budget Office estimates for these variables in 2030, this means there would be 4.9 million fewer working Americans, $2.6 trillion less in GDP, and $6,500 less in median household income.
…consider Mr. Biden’s expansion of the Affordable Care Act and Medicare for those above age 60 (versus 65 now). These subsidies affect the incentive to work, and the authors estimate the ACA changes would increase the average marginal tax rate on labor by 2.4 percentage points. That’s nearly half as much as the six percentage points from the original ACA, which is part of the explanation for the agonizingly slow labor recovery in the Obama era.
Mr. Biden is also proposing substantial increases in business tax rates that will raise the cost of capital. The former Vice President likes to say he’d only raise the top corporate tax rate to 28% from 21%. But so-called pass-through entities (often small businesses) employ more than 40 million Americans, and most pay taxes at the individual tax rate.
“Biden’s plan to raise personal income and payroll tax rates would push their federal rates from below 40 percent to, often, above 50 percent, and these are on top of state income taxes,” the authors write.
There is much more in the Hoover study, especially on the costs of returning to Obama-style regulation. Most of the media will ignore it, which is why we thought we’d provide readers with more than usual detail.
This Thursday is the last presidential debate. Trump should be aggressive, yes, but also allow the former VP to talk. Joe will ramble and hang himself. When Trump responds, he should be laser-focused on the policy, with digs that this is the reason, besides Hunter Biden’s emails, that Joe hides in the basement.
The Broadway League has announced yet another extension of the stage shutdown in New York City.
The organization confirmed that it is suspending ticket sales and performances through May 30, 2021. This marks more than a year of COVID-19-induced delays before live theater productions can return, according to a Twitter announcement on Friday. Ticket-holders should contact their point of purchase for exchanges and refunds.
Tens of thousands of livelihoods ruined
“With nearly 97,000 workers who rely on Broadway for their livelihood and an annual economic impact of $14.8 billion to the city, our membership is committed to re-opening as soon as conditions permit us to do so,” president of the Broadway League, Charlotte St. Martin, said in a statement. “We are working tirelessly with multiple partners on sustaining the industry once we raise our curtains again.” Returning productions are tentatively projected to resume performances over a series of rolling dates beginning June 2021, according to BroadwayWorld.com.
Broadway performances were suspended on March 12, 2020. At that time, 31 productions were running, including eight new shows in previews. Rehearsals for eight other productions, set to open in the spring, were also shutdown. (Opening night of Hugh Jackman’s hyped up revival of “The Music Man” is being pushed until Feb. 10, 2022, producers Scott Rudin, Barry Diller, and David Geffen announced Friday.)
On April 8, a reporter in Albany asked Governor Andrew Cuomo about Broadway’s initial cancellation of performances with a hoped-for reopening date of June 7, 2020. At the time, the governor responded, “I wouldn’t use what Broadway thinks as a barometer of anything unless they’re in the public health business and have seen better numbers and models.”
Actors’ Equity Association, the national labor union representing professional stage actors and managers, released the following statement on Friday regarding the Broadway League’s “difficult but responsible decision to put the safety and health of their workers and audience first.” “My heart breaks for everyone who works on Broadway or depends on it to make their living,” said Mary McColl, executive director for Actors’ Equity. “This is a deeply painful time for everyone who depends on the arts for their livelihood. We are at this moment because, seven months into the pandemic, our nation still lacks a coherent national strategy for masks and testing which could help bring the virus under control.” McColl also made a public plea for support on a federal level. “Too many in the industry need help now as we face another six months without work,” McColl said. “The ongoing lack of work in the arts means we face a critical need for a federal COBRA health insurance subsidies, renewed federal unemployment benefits and arts funding. Washington must act.”
“Sex and the City” star weighs in
Sarah Jessica Parker, who was set to appear in a spring revival of “Plaza Suite” opposite husband Matthew Broderick, wrote in an op-ed for Variety this week that she hopes people who fled New York during the pandemic will return and open their wallets for theater tickets. “I’m encouraging people to come back to New York and reinvest in our community,” the 55-year-old actress wrote. “Whether it’s a theater or a small business, you can’t reopen a business until you have the patrons there — it’s a psychological thing. And I believe it’s incumbent upon people who’ve had success in this city to reinvest, to come home.”
Parker also shouted out all the people directly and indirectly employed by the industry, which attracted a record 15 million tourists last season. “Theater is the way we induce visitors to come to our city and plan those special afternoons and evenings, which keep such a vast web of my fellow citizens employed and afloat,” she continued. “All the people I know and all the people I don’t know who are out of work need theater for the rent, and the mortgage, and children’s educations — all the countless ‘ands’ that are creating so much anxiety across the city and the nation.”
Although the shutdown still holds firm, the long-delayed 2020 Tony Award nominations for excellence in theater are set to be announced at noon on Thursday, October 15, via their official YouTube channel.
“We are thrilled to have the opportunity to recognize Broadway’s magnificent work during the 2019-2020 season,” American Theatre Wing President Heather Hitchens and Broadway League’s St. Martin said in a joint statement. “Our Broadway community has been incredibly resilient during this difficult time, and we look forward to paying tribute to the performers and artists.”
A group of 16 Republican senators has endorsed giving more money to airlines to avoid layoffs right before the November election, giving a boost to a lobbying effort by airlines and their unions.
The GOP senators did not specify an amount on Wednesday, but a proposal by several airline unions would give the hard-hit aviation industry $32 billion, including $25 billion for passenger airlines.
Airline stocks rose. American Airlines, viewed as financially the most troubled among the major airlines, gained the most, closing up 9.5%
The senators said they support relief because air travel remains depressed and several airlines have warned of possible job cuts on Oct. 1, when a prohibition on airline layoffs expires. They said in a letter to Republican and Democratic leaders that Congress should also consider more help for airport concessionaires and aircraft manufacturers.
In March, aviation companies got $32 billion to help cover payroll costs for six months in exchange for not laying off workers.
Nine of the 16 GOP senators who signed the letter are up for re-election in November and could be hurt by headlines about thousands of airline furloughs the month before the Nov. 3 election. Some face difficult re-election races, including Susan Collins of Maine and Cory Gardner of Colorado. Others represent states with large numbers of airline workers, such as John Cornyn of Texas.
Senate Majority Leader Mitch McConnell of Kentucky made no provision for airline workers in his $1 trillion proposal for additional virus relief. A spokesman for McConnell had no comment.
A majority in the House, including more than two dozen Republicans, have endorsed the spending. The Treasury Department has so far declined to comment on the Trump administration’s position.
No lawmakers have spoken out against the airline provision, although aides say some object to helping workers in one industry when there are millions of other workers who have already lost their jobs during the pandemic.
Air travel isn’t expected to return to previous levels for several years — not until 2024, according to a trade group for global airlines — leading some industry observers to say airlines should be allowed to shrink to match lower demand, even if it means fewer jobs.
Sara Nelson, president of the Association of Flight Attendants, responded by calling the airline provision the most successful jobs program in the $2.2 trillion virus-relief measure approved in March. The bill maintained air service to cities that had flights before the pandemic.
Things have certainly gotten really crazy here in 2020. First we witnessed the eruption of the worst global pandemic in 100 years, then the U.S. economy started collapsing, and then we watched major U.S. cities burn from coast to coast as rioting and looting spiraled out of control. Everywhere you look, people are very angry and deeply frustrated, nearly 46 million Americans have filed for unemployment benefits over the past few months, and fear of COVID-19 continues to paralyze our society to a frightening extent. But can this really be called the lowest point in modern U.S. history? According to one recent survey, a whopping 72 percent of all Americans actually believe that this “is the lowest point in the country’s history that they’ve ever been alive to see”…
Across two polls, more than 5,000 adult U.S. residents were recently surveyed on the state of America right now. A staggering 83% say that worrying about the future of the United States is a big source of personal stress. Also, 72% believe this is the lowest point in the country’s history that they’ve ever been alive to see.
That appears to be quite a consensus.
Of course many of those that were alive during the Great Depression of the 1930s and the early days of World War II would strongly argue that what we are experiencing today is nothing compared to what they had to deal with.
And without a doubt, the twelve years from 1968 to 1980 were not easy years by any stretch of the imagination. Just like now, Americans of that era were facing great civil unrest, tremendous economic problems, major political shaking and a global pandemic that killed a lot of people. If you don’t know about that pandemic, just Google “the flu pandemic of 1968”.
Having said all that, there is definitely a case to be made for 2020. Not even during the Great Depression did we ever see the kind of apocalyptic spike in unemployment that we have witnessed this year. Even though nearly 46 million Americans have already filed for unemployment benefits since the COVID-19 pandemic began, big firms continue to lay off thousands upon thousands of workers. On top of that, more than 100,000 businesses have already permanently closed their doors, and Americans have already skipped payments on more than 100 million loans.
And as I explained the other day, the most severe pain from this economic downturn won’t even begin to hit us until about six weeks from now.
As emergency government assistance starts to fade, an increasing number of Americans will have a very difficult time keeping up with paying the bills. In fact, another new survey has found that about half of all homeowners are “worried about making future mortgage payments”…
New research offers a glimpse into struggling households, discovers out of the 2,000 American homeowners polled, over half (52%) of respondents say they’re routinely worried about making future mortgage payments and nearly half (47%) considered selling their home because of the inability to service mortgage payments.
The study, conducted by OnePoll and the National Association of Realtors, determined 81% of respondents had experienced unexpected financial stress due to the virus-induced recession. Over half (56%) reduced spending so they could service mortgage payments.
Meanwhile, fear of COVID-19 is going to continue to paralyze our society for the foreseeable future.
I don’t know if you have taken a look at the numbers lately, but the truth is that the number of confirmed cases in the U.S. is starting to surge again. For the planet as a whole, Friday was the worst day of the pandemic so far by a very wide margin, and that means that this crisis is a long, long way from over.
There are already whispers that there may be new lockdowns here in the United States. I seriously hope that does not happen, because that would be another crippling blow for our collapsing economy, and the virus just continued to spread during the first round of lockdowns anyway.
On top of everything else, more rioting, looting and violence could erupt at literally any moment. Since this is an election year, tensions are going to be running even higher than usual, and even a relatively minor spark could cause another round of major civil unrest.
But as bad as things are right now, what most people don’t understand is that this is just the beginning.
As I have warned so many times before, we have entered a time when we are going to be facing one crisis after another, and this is going to be true no matter what happens during the election in November.
We have reached a moment in history when all of the cycles are ending, all of the bubbles are bursting, and we are going to experience the consequences of all the very foolish decisions that we have been making for decades.
At this point, the immediate outlook is so bleak that it is turning all sorts of people into raging pessimists. For example, Wolf Richter just posted an article in which he explained why he just shorted the entire stock market…
I’m sharing this trade so that everyone gets to ridicule me and hail me as a moron and have fun at my expense in the comments for weeks and months every time the market goes up. And I do not recommend shorting this market; it’s nuts. But here’s why I did.
The stock market had just gone through what was termed the “greatest 50-day rally in history.” The S&P 500 index had skyrocketed 47% from the intraday low on March 23 (2,192) to the close on June 8 (3,232). It was a blistering phenomenal rally. Since June 8, the market has gotten off track but not by much. It’s still a phenomenal rally. And it came during the worst economy in my lifetime.
I know that a lot of people will criticize him for making such a move, but I applaud him for his bravery.
Even if his timing turns out to be a bit early, I certainly concur with him that this latest Fed-fueled bubble will inevitably burst.
But ultimately we are going to be facing problems that are much more severe than a stock market crash. In fact, a market crash will be among the least of our problems.
Because it isn’t just our economy that is collapsing.
Our entire society is in the process of imploding, and if you don’t like 2020, then you really aren’t going to like what is going to happen in 2021 and beyond.
About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse Blog, End Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The End, Get Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help. During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.
April was the second consecutive month of job losses for the U.S. economy following the record 113 months run of expanding employment rolls.
Economists had forecast that the economy would lose 21 million jobs and that the unemployment rate would climb from 4.4 percent to 16 percent. So the April figures were better than expected.
March’s job losses were revised up from a loss of 701,000 to 870,000. February, which saw job gains, was revised down by 45,000 from 275,000 to 230,000, a reminder of how just how strong the jobs market was prior to the onset of the coronavirus crisis.
Employment fell sharply in all major industry sectors, with particularly heavy job losses in leisure and hospitality, the Labor Department said. Both average hourly earnings and average hours worked moved up in April, likely reflecting businesses shedding newer and lower-paid employees first and attempting to make do with smaller payrolls by increasing hours.
Manufacturing shed 1.3 million jobs, including 381,500 in the auto sector. Construction lost 975,000 jobs. Health care and social assistance shrank by more than 2 million jobs.
White-collar positions have not been immune to the coronavirus jobs catastrophe. Information technology and financial services sectors shrank by more than one-quarter of a million jobs. Business services lost 2.1 million jobs.
The scale of the job loss has been breathtakingly sudden despite an unprecedented level of support for the economy from the federal government and the Federal Reserve. Over the past seven weeks, more than 33 million Americans have filed claims for unemployment benefits. But the number of claims has been declining for five consecutive weeks.
The Trump administration successfully pushed Congress to authorize direct payments to U.S. households to support incomes and to raise the amount paid by unemployment benefits by $600 a week, making it possible for some Americans to earn more through losing a job than they made working. The federal government is also backing over $600 billion of loans to small businesses that can be forgiven if those businesses avoid layoffs.
The Fed cuts its interest rate target to a range between 0 and 0.25 percent. In addition, it is in the process of launching a number of new lending facilities aimed at providing liquidity to struggling businesses.
But loans and direct payments can only go so far to offset orders that many businesses close their doors entirely or dramatically reduce the number of customers they serve. The customers were told to stay at home and avoid going out except to purchase essential items. Bars, theaters, and gyms were shuttered in much of the country. Restaurants were required to close dining rooms, remaining open only for take-out and delivery. Manufacturers often had to shut down altogether, including the plants of most automakers in the U.S. Health care establishments found themselves bereft of businesses as patients canceled elective procedures and even regular check-ups.
In the five weeks covered by the U.S. jobs report for April, 26.5 million people applied for unemployment benefits. The job loss reported Friday is lower than that because the two are measured differently: The government calculates job losses by surveying businesses and households. It’s a net figure that also counts the hiring that some companies, like Amazon and many grocery stores, have done. By contrast, the total jobless claims is a measure of just the layoff side of the equation.
Even Friday’s numbers don’t fully capture the scope of the damage the coronavirus, social distancing, and government shutdown orders has inflicted on jobs and incomes. Many people who are still employed have had their hours reduced. Others have suffered pay cuts. Some who lost jobs in April and didn’t look for a new one in light of their bleak prospects won’t even be counted as unemployed.
During the Great Recession of 2008-2009, the nation lost 6.5 percent of its jobs over a two-year span. It was the worst loss in any recession since World War II. The unemployment rate hit 10 percent in the fall of 2009, the highest level since 1982’s 10.8 percent unemployment.
Few economists expect a rapid turnaround.
The Congressional Budget Office has forecast that the unemployment rate will still be 9.5 percent by the end of next year. A paper by economists at the San Francisco Federal Reserve estimates that under an optimistic scenario that assumes shutdowns are lifted quickly, the unemployment rate could fall back to about 4 percent by mid-2021.
But if shutdowns recur and hiring revives more slowly, the jobless rate could remain in double-digits until the end of 2021, the San Francisco Fed economists predict.
Raj Chetty, a Harvard economist, is tracking real-time data on the economy, including consumer spending, small business hiring and job postings. Chetty noted the economy’s health will hinge on when the viral outbreak has subsided enough that most Americans will feel comfortable returning to restaurants, bars, movie theaters and shops.
The data suggests that many small businesses are holding on in hopes that spending and the economy will rebound soon, he said. Small business payrolls have fallen sharply but have leveled off in recent weeks. And job postings haven’t dropped nearly as much as total jobs have. But it’s unclear how much longer those trends will persist.
“There’s only so long you can hold out,” Chetty said.
We are at the leading edge of a once-in-a-lifetime opportunity to earn historic profits.
The Internet of Things has taken off, changing our lives in countless ways and launching a Fourth Industrial Revolution I’m calling America 2.0.
Few periods in history have combined tech mega trends with business-friendly governments. These periods have produced historic bull markets. But most Americans have missed out…
And by the time the media start talking about America 2.0, the big gains will be gone.
So don’t wait. Watch my update right now to find out how to profit from America 2.0 stocks today.
INVEST IN THE BACKBONE OF THE AMERICAN ECONOMY
Finding the right America 2.0 stocks can be tough. Which is why I’m here to guide you and show you exactly what companies to invest in.
And I just put the first one in a brand-new special report.
This relatively small company is disrupting a $2.2 trillion industry. You could say this industry is the backbone of the American economy.
And this company’s technology could ignite an economic boom the same way the assembly line did. Find out how you can get all the details in my new report here.
AMERICA 2.0 IS COMING: ARE YOU PREPARED?
America 2.0 is coming. This extraordinary, astonishing and amazing event which is a once-in-a-generation opportunity to participate in historic gains in the stock market.
Our research has shown there have been only two other opportunities to participate in a cultural shift of this magnitude like this in modern history. One was in the 50s and the other one was in the 80s. Each time, the opportunity to make life-changing gains was right there in front of you.
Sadly enough, our research also shows the vast majority of people missed out on the big gains. They did not invest in time, or they did not invest in the right thing.
Often because they had the wrong ideas, the wrong advice, paying attention to the wrong things and focusing on the wrong stocks.
Today, I want to illuminate the America 2.0 opportunity that is sitting right in front of you. For me, the America 2.0 opportunity begins with what you already know and what you have been listening to from us for many years now.
It begins with technological mega trends.
The Internet of Things (IoT)
Let’s start with the biggest one of them all the Internet of Things (IoT).
Today no one questions the IoT. We have trillions and trillions of devices that are going to end up getting connected to the internet. Over the next few years, we will be able to monitor, anticipate and predict a lot of the standard things we do from day to day, in real-time.
IoT will bear the burden. We will no longer waste time on mundane tasks that add no real value to our life. For example, turning switches on and off or opening doors or any number of simple things that we take the time and trouble to do day after day.
These are part of our regular routine.
When you think about it, that is true not just for you as an individual, not just for your family or friends, it’s true for every company and organization. There are millions of tasks today that we spend time, energy and resources on that can be automated, that can now be something we are free of and is done for us.
That’s a simple example and you might be thinking, “Paul, that’s crazy. That’s just a little thing.” However, just think, there are billions of people around the world who spend their time doing this and we even sometimes hire people to actually do these small tasks. When you put it all together it’s an extraordinary amount of work, time and resources.
The IoT is going to change the way we live. That’s mega trend number one.
The IoT by itself has also generated a huge amount of data. That data is being dissected, patterned and developed to useful information which is what we are now referring to as artificial intelligence (AI).
In other words, we take that data and we parse it. A lot of it is not that useful, but there are little nuggets that are absolutely critical.
AI can use that information to predict when something is going to break, know when to maintain something, give us advance information as to when we should replace some things. And it’s going to be surprisingly accurate.
Critical information for you as an individual and if you’re a business owner and you know your door is going to fall off a hinge, you’d rather it didn’t fall off and take the whole doorway with it. Or you know your windows are leaking cold air or hot air and it’s causing your house to heat or cool itself inefficiently.
If you can get that information, you can make informed choices.
THE FOURTH INDUSTRIAL REVOLUTION
I can go through example after example.
Blockchain will change how much time we spend verifying identify at the DMV or the airport or any place you show your ID. No more time wasted proving you are who you say you are.
Precision medicine will match your genetic code to the perfect medication you need to medically treat you after any diagnoses.
When you stack these mega trends together — IoT, AI, blockchain, precision medicine — there is a revolution that is brewing that I am calling the fourth industrial revolution.
It’s going to remake our country and the world. There is no doubt about it.
If you look at each sector individually you might say, “No big deal.” However, multiply it across people, across companies, across our economy, across our society and our country and you will realize this a massive cultural change that will redefine existence.
This is why I am still so optimistic, so positive, so bullish about America 2.0 and America 2.0 stocks. You might be thinking, “Paul, you’ve me plenty about this. What can I do?” There are two things you can do.
First, I would tell you if you are interested in getting America 2.0 stocks — no other stocks, only America 2.0 stocks — this is the only place you can get them. In my Profits Unlimited service, we focus exclusively on America 2.0 stocks.
Later, when this cultural shift is on the front page of the Wall Street Journal and all your friends and family are telling you about it too, the vast majority of gains are going to be gone. Now is the time to take action.
We live in an extremely covert world when it comes down to how things get done. I mean, really get done. This is a world of shadows where a lot of things get done in the dark. Most of the time one must scratch beneath the surface to get to the truth.
“There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt.” John Adams 1735-1826
John Perkins, former Chief Economist for Chas. T. Main Inc. states that we would find a country with great resources (we being the United States) to covet. The World Bank, International Monetary Fund, or another one of its sister organizations will furnish a loan to that country. But, the money never gets to the country in question. Instead, our big corporations get the money to build the infrastructure. So, these big companies proceed with building things like gas stations, power plants, industrial parks, etc. Only the wealthy in these countries benefit but the people are left to foot the bill. Which they can not.
The next stage that takes place is when the economic hitman would go over to the country in question and propose that they should sell our corporations that are already in position in their country at the current time after the loan the oil rights for cheap or let us set up a military base, etc. This is when the privatization of utilities and social systems come into play. The conglomerate of international countries which includes the U.S. position themselves for the control of these assets. Often times they (government and bankers) would give additional loans or refinance the original loan causing the country to fall even deeper into a hole that they can not climb out of. Eventually, these countries become annexes and ruled by outside interests. There are a few examples of this malignant process that come to mind.
In Iran, Dr. Mohammad Mossadegh was democratically elected as the Prime Minister from 1951-1953. Hope for democracy in the Middle East (N. Africa) until he mentioned that foreign countries should give the Iranian people more money for the oil they are getting. He simply was saying that the Iranian people should benefit from their own oil. What’s wrong with that, right? Iran made it public that they were going to take over the British oil assets. The U.S. didn’t take too kindly to that so they sent in K. Roosevelt, cousin of Teddy Roosevelt, who was a Jackal or Economic Hitman. With a few million dollars, he managed to get Mossadegh overthrown and then replaced by the Shah of Iran. Roosevelt was a CIA agent which would have been a problem if he was caught. The government, going forward, would then begin using private companies and civilians to do their dirty work.
Jacob Arbenz Guzman was the President of Guatemala from 1951-1954. He stood against The United Fruit Company and stated he wanted to give the land back to the people. The people loved him but the United Fruit Company not so much. They were very powerful. The United Fruit Company got the U.S. behind them by convincing the U.S. government and military that Guzman was backed by the Soviets. According to John Perkins, the CIA in conjunction with the military had him assassinated. His replacement reinstated the policies that would be favorable towards The United Fruit Company as if was related to land rights.
This covert process to take control of a country and its assets has basically four steps: First, the loan is given to the country with high levels of interest attached to it. The second step is after the country has trouble paying the loan back, send in the Economic Hitman to bribe them with a restructured loan and/or talk them into making a deal. Thirdly, is after the Economic Hitman fails, they send in the Jackals to take down the regime covertly. Fourth and finally, when the Jackals fail, send in the military. Coincidentally, all four of these steps took place in Iraq with Saddam Hussein.
One could make a claim that money is the one thing that makes the world go around. Currently, currency is as precious as water or air. One must have it to survive. But, there is a lot more to money that most people understand. What if I told you that money is really debt?
We live in a world where 1% of the earth’s population owns 40% of the world’s wealth? 50% of the world’s population lives on less than $2 a day. Daily, 350,000 children die around the world from poverty and diseases that are curable in this present time while the rich get richer. This is a staggering number no doubt. One of the reasons for financial imbalance could be because most people use money but don’t understand money, how it relates to debt and how it relates to the monetary system itself.
Money Is Created Out Of Debt Through Loans
September 30th, 1941 at the House Committee Hearing on Banking and Currency, Marriner Eccles, Governor of the Federal Reserve, wrote, “ If there was no debts in our money system, there wouldn’t be any money.” Modern Money Mechanics was a document produced by the Central Bank or Federal Reserve some years ago. This document detailed the institutionalized practice of money creation by the Federal Reserve and the web of global commercial banks it supports. The first page clearly states it’s purpose which is to describe the basic practice of money creation in a “fractional reserve” banking system. The document goes into detail and breaks down how it works. It goes something like this, the US Government needs a loan. They go to the Federal Reserve and asks for $10 billion. The Fed. (Federal Reserve Bank) says, o.k. We’ll buy some government bonds from you. The government then creates some pieces of paper all nicely decorated and puts a value on these pieces of paper or bonds to the sum of $10 billion and deliveries them to the Fed.
The Fed. then have drawn up some nicely decorated pieces of paper also known as money and names them Federal Reserve Notes. The Fed. gives these notes to the government in return for the bonds. They exchange colorful paper in other words. After the exchange, the government takes the notes and deposits them into a bank account. This makes the notes legal tender henceforth adding $10 billion to the U.S. money supply. This is a generalization. Nowadays, of course, the transaction would be electronic. Like a direct deposit, etc. 97% of all money is now digital. Government bonds are basically instruments of debt. When the government gives the Fed. the bonds they are actually promising to pay back that money to the Fed. So the money was created out of debt. Money Is Debt!
It gets more crazy. That $10 billion deposit becomes part of that bank’s reserve that can be used against or to supply additional loans given out to additional businesses and individuals. The Modern Money Mechanics document states that all banks are required to keep a fraction or percentage of its deposits as reserve. Ten percent is the amount stated by the MMMD (Modern Money Mechanics Document). So, $10 billion gets deposited, $1 billion of that is placed in the bank’s reserve, and the other $9 billion is considered excessive reserve and can be used to issue out brand new loans. Now, one would think that the $9 billion is coming out of the initial $10 billion deposit. But, what is actually happening is that the $9 billion is magically created out of the thin air. This is how the Fed. and the banks expand the nation’s money supply. So, when someone applies for a loan, they sign a loan document and in return, they get money that was generated from nothing. Fiat money. Now, when this civilian deposits the money into a bank account, the process begins all over again.
The process could continue into infinity. On average, about $90 billion can be created on top of the original $10 billion deposit. All out of the ether or thin air. One has to ask, what gives a piece of paper or our dollar any value at all? The answer is that it’s the existing money currently in the system. So, the new money essentially robs the current currency of its value. This devalues the U.S. dollar and also causes inflation. When the money supply increases while the goods and services do not, when they shou7ld simultaneously, that’s when we have inflation.
When one takes a clear look at our money system, one could say that the banking system is set up to deliberately devalue our currency. We once used a silver standard to back our money. What are we using now to give our dollar any value? This and many other questions need to be answered.
All gloves were off in Houston last night, as the nearly 3 hour long Democratic debate, quickly turned into a slugfest between, former VP Joe Biden, and progressive Senators Bernie Saunders and Elizabeth Warren.
Long-simmering policy disputes between the top three contenders and a slew of other candidates exploded onto the stage during the third televised Democratic primary debate, as the candidates — often with loud and angry voices – duked it out on “Medicare-for-all,” immigration, and more.
Intermittent efforts by some candidates to show unity and keep the heat on President Trump repeatedly failed, with most striving instead to score an aggressive debate “moment” onstage in Houston.
Amid the verbal sparring, Pete Buttigieg offered an exit ramp from the feuding as he criticized the Democrats for “scoring points against each other” — prompting Julian Castro to interject, “That’s called an election!”
“Yeah, but a house divided cannot stand,” Amy Klobuchar retorted, to no avail. As the candidates continued to fight with each other, instead of taking jabs at Trump, it could only leave the President smiling.
The economy, which, thanks to Trump’s policies, has performed well by virtually all major metrics in the past year, went largely undiscussed during the raucous three-hour debate. And, even as House Democrats made a push towards potentially impeaching the President this week, that topic conspicuously did not come up either.
A Rumble From the Outset
A tone of conflict was set from the very start of the contentious debate, when Biden set the agenda by going after Warren directly, saying to her, “I know the senator says she’s for Bernie,” Biden said. “Well, I’m for Barack.”
He then tossed this barb at Sanders.
“For a socialist, you’ve got a lot more confidence in corporate America than I do,” Biden shot back at Sanders when the U.S. senator from Vermont suggested corporations would return the money they currently make on high insurance premiums if his sweeping plan were implemented.
Sanders responded by referring to cancer treatment, leading Biden to sharply reply, “I know a lot about cancer — it’s personal to me.” Brain cancer killed Biden’s son Beau four years ago.
These almost immediate clashes settled any questions about whether the top-tier candidates – meeting onstage for the first time – would be pulling any punches. Biden was clearly mindful that Warren has been surging in recent weeks and came out fighting to hold onto his frontrunner status, while several candidates continued to pile on Biden as they have at past debates.
But perhaps the night’s most heated exchange came between Biden and fellow Obama administration member Julian Castro, who tangled at length indirect and seemingly personal terms.
“I’m fulfilling the legacy of Barack Obama, and you’re not,” Castro said, referring to the millions of Americans who lack health coverage — leading Biden to respond, “That’ll be a surprise to him.”
Castro hammered Biden for claiming that individuals would not be required to buy into his health care plan in order to receive coverage.
“You just said two minutes ago they would have to buy in. Are you forgetting what you said two minutes ago?” Castro asked, a seeming pointed jab at Biden’s age. However, Biden did not say during the debate that individuals would have to buy in. Instead, Biden said that individuals would automatically be enrolled if they lost their jobs.
Joe’s Goofs and Gaffes
While Castro’s dig at Biden’s age may have seen meanspirited, the former VP was showing signs of wear during the almost 3 hours on his feet, and he did have his share of goofs and gaffes. He repeated more than once the inaccurate claim that children were not kept in cages under the Obama administration. In fact, the most widely circulated photo of children in cages in immigration detention centers, though falsely attributed to the Trump era, was taken during Obama’s presidency.
When asked how can school children be better informed and more articulate today, Biden said they should be sure to, “Play the radio. Make sure the television, excuse me, make sure you have the record player on at night, the phone…”
But perhaps he “stepped in it” the worst time of the night, when he suggested that those who commit “white collar” crime, should never see the inside of a jail cell. “Nobody should be in jail for a non-violent crime,” Biden said. “When we were in the White House, we released 36,000 people from the federal prison system.”
As Biden continued to trip over himself, and the rest of the field ate each other up, or made outrageous statements like Beto O’Rourke’s, “yes, we are coming for you guns…” clearly, once again, he winner of the 3rd Democratic Debate, was Donald J. Trump!
A new poll has revealed that a two-thirds majority of Americans think that the United States government should not make cash reparation payments to the descendants of slaves.
According to the Gallup poll which was conducted in June and July, 67 percent of Americans opposed the idea of providing cash payments as a form of reparations to the descendants of slaves. The percentage of Americans who supported cash reparations stood at just 29 percent – up from 14 percent in 2002. The poll revealed that 73 percent of black Americans support cash reparations.
In June, the U.S. House Subcommittee on the Constitution, Civil Rights, and Civil Liberties held a hearing on reparation where the considered HR Bill 4 – a piece of legislation which calls for the establishment of an expert committee that would study the idea of reparations and make suggestions to lawmakers.
The sponsor behind the proposed bill is Rep. Sheila Jackson Lee, a Democrat from Texas. The legislation itself doesn’t propose how descendants of slaves would be compensated.
Democrats are starkly divided on the issue of reparations. While 49 percent of polled Democrats supported the idea of cash reparations, 47 percent opposed the idea. Democrats who support the idea is up nearly 100 percent from 2002, when just 25 percent supported it.
Independents, however, weren’t so keen on the idea, with 35 percent in support and 65 percent in opposition.
Among Republicans polled, just 5 percent were for reparations, up from 4 percent in 2002. Conversely, an astounding 92 percent of Republicans opposed the idea.
Lastly, the poll also revealed a bit of a racial divide on the issue. Among black Americans, 73 percent supported the idea, while just 16 percent of white voters supported it. Hispanics were more split down the middle, with 47 percent supporting the idea and 46 percent being against it.