(Prologue) - The following information shows the disparity in income between the wealthiest sector of the U.S. Economy versus those in the bottom 80%. You need to understand how the Power structure works in this country. That is what has led to the growing disparity of income and subsequent loss of status of the regular citizens of this nation. This is the reason why no one follows the will of the American people. The bottom 80% have no influence over the direction of the country. Money Talks! George William (Bill) Domhoff (Wikipedia) - (born August 6, 1936) is a research professor in psychology and sociology at the University of California, Santa Cruz. His first book, Who Rules America?, was a controversial 1960s bestseller which argued that the United States is dominated by an elite ownership class both politically and economically.
He was born in Youngstown, Ohio, the son of George William and Helen S. (Cornet) Domhoff. He received a B.A. in Psychology at Duke University, a MA in psychology at Kent State University, and a Ph.D. in psychology at the University of Miami.
In the early 1960s, Domhoff served as an assistant professor of psychology at Los Angeles State College. In 1965, he became an assistant professor at the University of California, Cowell College, Santa Cruz, where he is now professor of psychology and sociology.
Domhoff is the author of Who Rules America? (1st ed. 1967, most recent edition 2009) and many other well-known books in sociology and power structure research, as well as Finding Meaning in Dreams (1996) and The Scientific Study of Dreams (2003)
In the United States, wealth is highly concentrated in a relatively few hands. As of 2007, the top 1% of households (the upper class) owned 34.6% of all privately held wealth, and the next 19% (the managerial, professional, and small business stratum) had 50.5%, which means that just 20% of the people owned a remarkable 85%, leaving only 15% of the wealth for the bottom 80% (wage and salary workers). In terms of financial wealth (total net worth minus the value of one's home), the top 1% of households had an even greater share: 42.7%. Table 1 and Figure 1 present further details drawn from the careful work of economist Edward N. Wolff at New York University (2010).
Table 1: Distribution of net worth and financial wealth in the United States, 1983-2007
Total Net Worth
Top 1 percent
- Next 19 percent
- Bottom 80 percent
1983
33.8%
47.5%
18.7%
1989
37.4%
46.2%
16.5%
1992
37.2%
46.6%
16.2%
1995
38.5%
45.4%
16.1%
1998
38.1%
45.3%
16.6%
2001
33.4%
51.0%
15.6%
2004
34.3%
50.3%
15.3%
2007
34.6%
50.5%
15.0%
Financial Wealth
Top 1 percent
- Next 19 percent
- Bottom 80 percent
1983
42.9%
48.4%
8.7%
1989
46.9%
46.5%
6.6%
1992
45.6%
46.7%
7.7%
1995
47.2%
45.9%
7.0%
1998
47.3%
43.6%
9.1%
2001
39.7%
51.5%
8.7%
2004
42.2%
50.3%
7.5%
2007
42.7%
50.3%
7.0%
Total assets are defined as the sum of: (1) the gross value of owner-occupied housing; (2) other real estate owned by the household; (3) cash and demand deposits; (4) time and savings deposits, certificates of deposit, and money market accounts; (5) government bonds, corporate bonds, foreign bonds, and other financial securities; (6) the cash surrender value of life insurance plans; (7) the cash surrender value of pension plans, including IRAs, Keogh, and 401(k) plans; (8) corporate stock and mutual funds; (9) net equity in unincorporated businesses; and (10) equity in trust funds.
Total liabilities are the sum of: (1) mortgage debt; (2) consumer debt, including auto loans; and (3) other debt. From Wolff (2004, 2007, & 2010).
Hey Burr, Hey Hagan get off your @55e$ and make something happen. You say you want to create jobs. What are you going to do to bring jobs back to America? Who do you represent the Chinese and Wall Street or the people of North Carolina?
I can't believe I am in the position of supporting Donald Trump! Are we running Mexico or this country. Our country is not the force it used to be. It is no longer respected the way it used to be. Wilmington, Ohio; Newton, Iowa; Hickory, North Carolina and many, many more. Cities that used to thrive with manufacturing and entrepreneurship and you politicians have left the citizens hanging. You have brought this country to its knees.
I know that Senator Hagan is in the pockets of the banksters and Senator Burr has been bought by the Insurance industry. They both voted to reappoint the Goldman Sachs toady Ben Bernanke to Chairmanship of the Federal Reserve. These two have shown me no understanding of Common Sense Economics. I know they understand politics, but what about business and what is in the economic interests of the State of North Carolina.
Job Creation is the issue of the day. The problems are clear as the day is long. We need tariffs on these Third World Imports. We need to stop supporting these companies that have taken our jobs overseas.
I don't care if Nike is paying the University of North Carolina at Chapel Hill and its coaches millions of dollars to be marketing prostitutes for their product. No State supported Universities should be outfitting their teams with goods made from Chinese Slave Labor or for that matter made in the Maquiladoras of Latin America. They should be wearing clothing made in the United States. Heck! North Carolina State University should be designing and manufacturing their own athletic equipment!
I want to ask you. Who do you think is going to provide you a better product. An employee that you take care of and invest in or someone with a metaphorical or virtual gun pointed at their head? What incentive do these people in the third world have to create a top notch product. It seems like workers are considered expendable these days. They don't even enter into the equation. That is wrong! We can't build communities like this.
Your eyes do not deceive you. Only the Wizards of Wall Street and their marketing guru, mind programmers have you convinced to the contrary. You buy an electronic gadget from China and it doesn't work. Shuck it in the garbage and we will send you a new one. Oh, that toy has lead paint, here's your money back. Now come buy some more. That lot of furniture you imported is shoddy. Burn it and we'll send some more. Oh, the dog food killed your dog -- Oops.
The multi-national companies doing all of this are treated as though they are above the law. They aren't held accountable to the extent American based small companies are. This has had a dire effect on our economy. I know that they will pull the Smoot-Hawley card out of the playbook. Folks, we were already in the depression in 1930 when this Tariff Act passed and at that time we were net exporters. All we have been asking for for the last 20 years is a level playing field!
We don't have free trade. We are getting ripped off for the interests of a few people on Wall Street and the oligarchs of other nations. We have wasted so much money over the last few years through so called stimulus plans that sent our money to foreign nations, because we don't produce anything. How was anyone expecting these stimulus plans to have any impact on our economy?
This has been criminal. It is fraud. Forget Julian Assange who is not even a U.S. citizen. He is a diversion. Are our foreign trade problems and diplomacy issues created from incompetence or is this treason? Probably a little of both.
I'm not saying that Donald Trump is the right man for the Presidency, but I will say that I am onboard with pushing this agenda forward. And if you aren't with us, then I need to hear some tangible reasons why.
You say you want to create jobs. HOW? You say you want to rebuild the entrepreneurial spirit. What are we going to sell? You say you want to help small business. Where's the proof? What does the past show? Look at NAFTA, the WTO, GATT... Why are we creating incentives for businesses to leave our country?
You are either for us or against us! THIS IS THE UNITED STATES OF AMERICA!!!
The reports below are the result of the economic squeeze put on citizens from Greece and Italy. Unemployment there is worse than here and the citizens are having guaranteed benefits cut, loss of unemployment benefits, and increases in already burdensome taxes. The governments are also cutting payrolls.
Does this not sound familiar? Do you really believe that the U.S. Government might not cut off Social Security payments? Do you really believe that the U.S. government won't cut off retired military pensions? Cutting off unemployment benefits for those who truly can't find work? Do you not think our government is capable of raising taxes drastically? If not, why not? The government has shown a drastic willingness to protect the interests of the bureaucracy over those of the people.
The images are dramatic and breathtaking, but you need to see this, because this is reality. Are you seeing this on America's nightly news? Why?
In America Crime pays, while the American people turn their heads away from issues of importance and towards mindless pop culture. I will help those who are humble, but don't come trying to steal from me when it hits the fan. Remember how you laughed at those of us who warned you about this path. When we asked you to rise up, you told us to sit down!
I believe that about 1% of the people in our area care about what is going on. In the City of Hickory that would equate to 400 people. In Catawba County about 1,300. That is what I see from the numbers that I run. What will it take for people to wake up? It's going to be too late when they do!
Donald Trump - Taxes Should Remain as Low as Possible - Tax China - China is laughing at us!
Ben, you want to express to us just how bad of shape the economy is really in. I thought we were in a recovery? How does a recovery equal the economy being in such bad shape? This does not compute!
We understand how bad the economy is. It is you who does not. I guess you want to express to us how fragile the economy is for the Haves, because the Have Nots completely understand Common Sense Economics.
Unemployment is not going down, because you and your bankster buddies have sent our jobs to the Third World. You say it will take years to get the unemployment rate back down to normal levels -- I'm sure that you are talking about U-3 and not U-6. As Scott Pelley states, "We have lost 8 million jobs from the peak."
This is a structural problem that is caused by imbalances in Economic and Trade agreements, which were created by bad policies that only reward the people at the top of the economic food chain. I think you understand this, but you are ingratiated to the elitists who put you in your puppet position at the Federal Reserve. So let's carry on with the interview and more charades.
Bernanke says at the rate we are going that it could take 4 or 5 years before we get back to a more normal rate of 5% or 6% (U-3). I almost think that he hopes that the Old School Manufacturing people would disappear, because it is clear that he has no solution to getting these people back into the labor force.
Pelley then goes into the situation with the Financial Institutions who are making billions, yet keeping a lid on lending. Lending to small businesses declined in the third quarter. Bernanke laughably blames this on the small businesses, 'They aren't seeking the credit.'
Pelley hits it on the head. "Is this a case of banks who took risks that ruined the economy being unwilling to take risks to support the recovery?" Look at the Moral Hazard associated with the banks. They are enjoying fruit from the mess they created, while many are forced to endure the rot and decay left in the wake of this economic collapse that the tool Bernanke won't even admit to.
Then we get to the crux of the matter where the Fed wants to sell the public on the idea of Quantitative Easing 2 (QE2). Chairman Bernanke is in the midst of monetizing $600 billion in debt by directing the Federal Reserve to purchase treasuries. No ifs, ands, or buts; this devalues the dollar and lets the inflation genie out of the bottle.
Don Quixote Bernanke is fighting the battle of the 1930s economic collapse. He believes that inflation is low and we are getting to the point of deflation. Honestly, does this man have any common sense? Is he in touch with reality? Yeah wages are going to fall, because of trade policy that has the American worker competing against Chinese slave labor! Not because there are too few dollars chasing too many goods. There is plenty of money in the system. There isn't enough breadth. People without jobs or worried about losing their jobs or not getting raises to keep up with rising prices cannot afford to spend freely. This is the reason why the economy has tightened. Many people have come back to reality and practicality. A few Billionaires on Wall Street can't sustain a legitimate economy.
Bernanke says that the Fed is not printing money, the amount of money in circulation is not changing, and that the Money Supply is not changing. Below is a graph of the Money Supply. Tell me, are they printing money?
It is obvious to see that the Federal Reserve has been involved in the process of printing (digitizing) money. Look at the parabolic "hockey stick" curve. Look at how the recovery coincided with the jump in the money supply. The growth that we have seen has been from inflation.
Retail sales were up .8% from October and up 7.8% from a year ago for the three-month period through November (Shopping Spree Fuels Surge - Wall Street Journal - 12/15/2010). That would be great news on its face until one looks at the Producer Price Index, which a separate report showed increased more than expected last month. The 0.8% gain was pushed higher by rising energy and food costs, but the Labor Department data indicated underlying wholesale inflation remained tame (Retail Sales, Producer Prices Increase - Wall Street Journal - 12/14/2010).
Retail Prices matching Producer Prices means that we have inflation. The retailers are pushing the prices through to the consumer and the consumer has no choice, but to pay. Food and fuel are necessities and that is where we are seeing real inflation.
The Fed is buying treasuries, which are dollars. Have you ever seen a treasury note? It looks like a big dollar bond:
The Federal Reserve is lending money to the Treasury and in return they receive these notes that they are paid interest on. The U.S. government in turn creates digits of currency on their computers (printing money). The Treasury then issues the money to the public through the banks. The problem is that the Federal Reserve is the Banks. In essence the Banks are lending themselves money and they aren't issuing the credit to the people. They are keeping it themselves and investing to create and consolidate wealth for themselves. They are not fulfilling their role to perform the "Public Good." This is the fatal flaw in the Federal Reserve Central Banking System. The Foxes have complete control of the Hen House and they are devouring everything including the house itself.
At this time the Fed has no interest in the interest rate earned. They are interested in money generation, which devalues the currency, but gives them greater control over the total money supply. They are consolidating the economy in Wall Street's interest, which gives them greater influence over the nation's policy directives.
We won't have a Double Dip Recession, because we are in a Depression. This is not a Deflationary Depression like in the 1930s, when the country basically operated off of a cash and barter system. This is an inflationary depression created from spiraling debt. People in the 1930s were not in deep debt. Today we are in deep debt.
Wall Street Gives Uncle Sam Too Much Credit - (Forbes - Michael Pento - 12/13/2010) - Household debt as a percentage of GDP is 91%. According to the Federal Reserve’s Flow of Funds Report, total non-financial debt reached an all-time high of $35.8 trillion in the third quarter of 2010. In fact, household debt, business debt, and government debt increased at a 4.2% annual rate last quarter.
To put that record level of nominal debt into perspective: in 1980, the total non-financial debt-to-GDP ratio was 144%. In the height of the credit boom, at the end of 2007, that figure was 226%. Today, the figure stands at a mind-blowing 243%! So you can forget about all that deleveraging talk. The US is in fact still leveraging up, both in nominal terms and as a percentage of GDP.
Bernanke states that the Housing market is already weak and it can't get much weaker. In my opinion it can get a lot weaker. I think part of this charade is an artificial facade that has been placed on Real Estate. The Real Estate market is being manipulated and not allowed to find its own equilibrium. I think the government is attempting to inflate nominal prices back to pre-crash levels as a manner of saving face. And yes I do believe that the government has displayed a level of hubris over the last few years to follow through with such a shallow philosophy. I think that the banks believe that they can eventually find an equilibrium between nominal prices of available inventory and the Troubled Asset Shadow Inventory. Then they will slowly attempt to release the shadow inventory back into the market. That means that those who have conservatively taken care of their property won't see a real appreciation in their home value for generations.
Remember that your Congressmen and Senators supported President Bush's decision to first put this man into this position as Chairman of the Federal Reserve and then President Obama's decision to renominate and reappoint him to the same position after the meltdown in 2008. Does Mr. Bernanke instill confidence in you?
Bernanke states that the Federal Reserve needs to be able to make policy without regard to short term political concerns. How can we be so sure that no politics play a role in decision making policies? The Fed definitely picked winners and losers two years ago when allowing Bear Stearns and Lehman Brothers to fail, while propping up AIG and Goldman Sachs. Look at the 21,000 transactions that the Fed invested in over the last two years -- $3.3 trillion at low to no interest. Ask Mom and Pop if they could have used that money!
I want people to understand and this is the Gospel. The Fed is the Mega-Banks and the Mega-Banks are the Fed. Bernanke works for the banks. He does not work for us. He is a Keynesian, which means he believes in loose monetary policy. He is not accountable and he answers to no one. The Fed is the fourth branch of Government and with no Checks and Balances. If Ben Bernanke wants to crank up the presses and spend us into oblivion, who is going to stop him?
