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Guest Post: Why the Rich Love High Unemployment

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Wed, 05/25/2011 - 08:23 | 1308395 Azannoth
Azannoth's picture

Look it's all over, stop splitting hairs, just be prepared for a post-human world

Wed, 05/25/2011 - 08:31 | 1308416 oh_bama
oh_bama's picture

Durable goods slighly lower BUT LAST READING REVISED HIGHER!!!

Wed, 05/25/2011 - 10:42 | 1308946 TruthInSunshine
TruthInSunshine's picture

Frontline always is one of my tells, and it was a dead ringer back in 2007/2008.

Bang Dae-Ho, bitchez.

Norway's Frontline, which operates the world's largest oil tanker fleet, announced an 81-percent decline in net income for the first quarter compared to last year. The company issued a grim outlook...

The operator of the world's largest tanker fleet gives up on the global recovery

 

Wed, 05/25/2011 - 12:36 | 1309427 silberblick
silberblick's picture

Click below to see a graphic illustration of bankster's dirty of hierarchy of needs: http://thesilvergoldhedge.blogspot.com/2011/05/banksters-dirty-hierarchy...

Wed, 05/25/2011 - 09:15 | 1308557 Xibalba
Xibalba's picture

back to the coal mines for little Johnny and the sweatshop for little Suzie.  Who needs Unions, Labor Laws, and Civil rights anyways?!?!  As Clinton would say "We can't be so fixated on our desire to preserve the rights of ordinary Americans."
- Bill Clinton, USA Today on 3/11/93, page 2a

Wed, 05/25/2011 - 10:55 | 1308994 Retired_Day_Tra...
Retired_Day_Trader_Wannabe's picture

back to the coal mines for little Johnny and the sweatshop for little Suzie.  Who needs Unions, Labor Laws, and Civil rights anyways?

.  

Unions are legalized monopolies (monopolizing the supply of labor), Labor Laws are just the way government ingratiates itself to the unions, Civil Rights are just the codification of the Natural Rights provided to man by God himself.   If we have too much supply in the human commodity then the price (wage paid) needs to come down.  Government cannot alter the laws of supply-and-demand over the long term, and government shall damage the economy in the short term if they try.   What is the answer?  Stop having so many kinds, and stop illegal immigration. 


Wed, 05/25/2011 - 11:53 | 1309247 JW n FL
JW n FL's picture

are you fucking retarded?

 

the reason we dont have jobs.. is becuase of your republican meth snorting homo dick sucking fags! who shipped 50,000 jobs a month to China since 2000! and gave Corporate America a Fucking Tax Credit for Shipping 50,000 jobs a Month to China!

 

someone find this fucking scumbag lying fuck and send him and all that he spawned to China!

Wed, 05/25/2011 - 11:32 | 1309153 Thisson
Thisson's picture

The problem is all the taxes on the working person here, which make labor demand higher (uncompetitive) wages.  Lower taxes, then companies can lower wages, and we can regain our outsourced jobs while maintaining a decent standard of living.  Unfortunately (/sarcasm), that means the public sector leaches and rentiers need to be cast aside.

Wed, 05/25/2011 - 08:21 | 1308396 trav7777
trav7777's picture

Acting in shareholders' interests would have meant dividend growth kept up with profit growth, not that share prices ponzi'd up then crashed while CEO pay kept rising every year.

Executives act in their own interest and only their own interest.  Bitchez

Wed, 05/25/2011 - 08:26 | 1308409 the not so migh...
the not so mighty maximiza's picture

Once you get the shareholders cash they are disposable.   What are you going to do arrest the CEO? hahahahahaahahah

Wed, 05/25/2011 - 08:33 | 1308419 Ray1968
Ray1968's picture

It truly is the new American Way. Profit for the top... screw everyone else.

Its always been like that, just never so blatent, pervasive and extreme.

Wed, 05/25/2011 - 09:32 | 1308604 Bob
Bob's picture

My thought exactly.

Wed, 05/25/2011 - 09:45 | 1308660 Flakmeister
Flakmeister's picture

Yeah, all those board members and directors were responsible for the productivity growth....

Just look at CISCO, awesome company, horrible stock... At least MO and RAI kick back a little cash to the shareholders.

It is for this reason that I prefer MLP type corporate structures. The shareholders benefit. The management has to own stock to benefit. 

Wed, 05/25/2011 - 10:59 | 1309014 trav7777
trav7777's picture

CSCO is an interesting case-in-point for what I'm saying.

Dunno who it was, maybe Frontlline, who did an expose on this tech bubble and found that via options and share buybacks, CSCO kicked a full DECADE's worth of profits to management and never paid shit to shareholders.

Shareholders rode the ponzi of "price appreciation," which turned out in most cases in .com to be classic and explicit fraud and book cooking by the managers, who yet still paid themselves bonuses as if the profits WEREN'T bullshit.  The profits were phantom but the bonuses were definitely real.

Who can forget Worldcom or Tyco or any of the dozens of major frauds that went down as the Nasdaq crashed 75%?  All the illusory gains managers "delivered" for 10 years were shown to be nonexistent and were undone within the span of a year.

And during this span, management relentlessly reinforced its entrenchment.  During the price ponzi, the true ownership was so drunk with bullshit valuations fed to them by management that they acquiesced to every additional step management took to buttress management's power and control.  Now that all those illusory gains have been wiped away, management is left in complete power to continue to funnel all profits to themselves.

Wed, 05/25/2011 - 11:59 | 1309287 Flakmeister
Flakmeister's picture

Isn't this good capitalism? Buy low, sell high?

Wed, 05/25/2011 - 08:28 | 1308406 Clint Liquor
Clint Liquor's picture

"The stimulus provided relief, but it was too small and did not focus on job creation."

Taking a trillion dollars out of the economy and giving it to State and Local Governments wasn't enough?

If brains were made of shit, this guy couldn't stink.

Wed, 05/25/2011 - 08:26 | 1308408 southsea13
southsea13's picture

The unemployed are now an asset like anything else. I guess the `philosophy` in most boardrooms will be `Treat `em mean to keep `em keen" (for those who are still lucky enough to have a job). The other boardroom dictum will probably be "Keep `em lean" when it comes to staffing as every possible iota of value is wrung thoroughly out of the value chain. The result will be more and more families becoming unemployed and losing their homes, but that`s not going to be of much concern to the `great and the good`. :(

Wed, 05/25/2011 - 12:56 | 1309499 trav7777
trav7777's picture

The philosophy in boardrooms is "how can we pay these executives more so that when they sit on OUR boards, they can pay us more too?"

That is in actuality, at its lowest level, literally how this shit works.  Every board member is an executive of some other company and the interlocking directorates are vast.  It is a big club.

Executives try to decrease cost by firing people even at the expense of the long-term viability of the company.  That is because their mentality is to take every bonus NOW.  Who gives a shit if this company still exists 5 years out; I will have maximized my immediate gains.  They also look to backscratch as boardmembers in order to provide nice, soft landing places for after they deploy their golden parachutes.

The interlocking executives club isn't just about golden parachutes, it's about golden landing zones.

Wed, 05/25/2011 - 08:26 | 1308410 tellsometruth
tellsometruth's picture

remeber this one: "jobeless recovery"

really sold us on that one from late 2008

Wed, 05/25/2011 - 08:38 | 1308426 Alcoholic Nativ...
Alcoholic Native American's picture

Yea that was so 2008, when not EVERYTHING was a lie.  At least they admitted it was a jobless recovery back then, now it's just a full blown recovery.

Wed, 05/25/2011 - 08:27 | 1308411 JW n FL
JW n FL's picture

Corporate America has a well funded and entrenched LOBBY!

The American Worker is neither well funded or any where near entrenched in Washingtion DC...

http://www.opensecrets.org/

WAKE! UP!!

and figure who owns the elected officials in your part of the world.. type in your congressman / senators name and POOF! there it is..

Find out for yourself that Washington DC Votes with the LOBBY Dollars! EVERY FUCKING TIME!! then figure out how you are going to support a Lobby Push without a 0.25% FED Window to draw down from???

Wed, 05/25/2011 - 08:41 | 1308437 pan-the-ist
pan-the-ist's picture

But, but, a raising tide lifts all ships and if you sink a few ships the tide won't lift anymore.

Wed, 05/25/2011 - 08:55 | 1308492 JW n FL
JW n FL's picture

if it trickles down the rich guys leg it will cause all ships to rise? LOL

Wed, 05/25/2011 - 08:51 | 1308429 Mercury
Mercury's picture

Things have never been better at the top.  Remember back in 2005 when all those moneyed varlets from the exburbs clogged up the harbor with their cheap motorboats and made landing a reservation someplace decent such a hassle?  That totally sucked. 

Keeping U6 is in-line with the age of your au-pair...that's the sweet spot.

Wed, 05/25/2011 - 09:25 | 1308568 sdmjake
sdmjake's picture

"Keeping U6 is in-line with the age of your au-pair...that's the sweet spot."

Thanks for the humpday laugh. or should I cry??

Wed, 05/25/2011 - 10:36 | 1308915 Mercury
Mercury's picture

These days its often necessary and hard not to do both.

Wed, 05/25/2011 - 08:40 | 1308434 writingsonthewall
writingsonthewall's picture

Of course the corporates love high unemployment - it allows them to repair their profit margins by driving down the only cost they can (labour cost) as technology is easily adaptable to your competitors and only provides a short term relief.

 

Jeepers - does nobody go to college these days? This was all explained by Marx - and it's still 100% true today. There is no mystery - other than the mystery of how the world still cannot accept that Captialism is flawed and that booms and busts are inherent to capitalism ddue to it's contradictory nature.

...and still people believe that 'someone can fix it' - well give up for God's sake - you are never going to fix it.

 

It's like those people who talk of 100% employment in Capitalism - they must be totally stupid - it's not possible - otherwise there would be no 'motivation' for existing workers to work any harder as there would be no threat of someone from the unemployment queue to replace them.

As Capitalism is purely based on 'profit motive' this is entirely logical. This is why we need to organise our economic systm on something other that profit motive.

What is (monetarily) profitable is not always the right or best thing to do. For that example you only need to look at those CDO squared packages to realise that 'profit' is not always a good indicator. In fact it's probably more wrong than right.

Wed, 05/25/2011 - 08:42 | 1308443 pan-the-ist
pan-the-ist's picture

High unemployment also puts more competition in the workplace which means lower wages and fewer benefits.

Wed, 05/25/2011 - 09:47 | 1308651 writingsonthewall
writingsonthewall's picture

...but without lower prices (which is not guaranteed) - you end up getting closer and closer to slavery - as people are forced to work for "their daily feed" - no aspiration, no progress - total debt slavery.

 

That is why the working people cannot simply accept lower and lower wages - eventually something will have to give. Especially when it becomes more time efficient to self sustain yourself and not require any wages.

Wed, 05/25/2011 - 08:44 | 1308462 samsara
samsara's picture

...otherwise there would be no 'motivation' for existing workers to work any harder as there would be no threat of someone from the unemployment queue to replace them.

 

George Carlin

There are 3 types of people

The Rich,  They receive most of the money

The Middle Class, they pay for everything.

The Poor,  They're there to scare the shit out of the middle class to keep'm going to their jobs....

 

Higher Productivity = Less People working.  That is what that metric actually measures.  More Machines,  less people,  Higher Productivity.

Wed, 05/25/2011 - 09:10 | 1308542 writingsonthewall
writingsonthewall's picture

I would argue there are only 2 types.

The middle class are in fact 'the poor' - but they are given special roles by the rich to raise them to a 'higher status' - which ensure they act on behalf of the rich to suppress the poor.

When times are bad - the middle class dissapear as the rich have no loyalty to them - then they are also rejected by the poor (for past transgressions).

If it weren't for capitalism then we would be living simpler lives....but only working about 3 hours a day (technology would have made the rest redundant) - however Capitlaism requires constant growth - so it constantly creates it's own demand - even if that means selling people things they don't need and using advertising and marketing to cadjole them into thinking there is a need.

...and they start with your children, they have no scruples - the weakest of society are the easiest to manipulate - hence 'pester power'

Wed, 05/25/2011 - 11:27 | 1309139 Vashta Nerada
Vashta Nerada's picture

If it weren't for capitalism then we would be living simpler lives....but only working about 3 hours a day (technology would have made the rest redundant)

That is ridiculous. If it weren't for capitalism, we sure would be living simpler lives - in caves, but we would be working 19 hour days to survive, because all of the technology wouldn't have been invented, as there would be nothing to gain for inventors to develop any technology.

Wed, 05/25/2011 - 12:00 | 1309258 Flakmeister
Flakmeister's picture

Umm... you clearly have not thought this through completely, have you?

Wed, 05/25/2011 - 13:10 | 1309557 trav7777
trav7777's picture

the Wright Brothers weren't looking to get rich.

Smart people do cool shit just for the sake of doing it.  Something you obviously don't grasp.

Wed, 05/25/2011 - 15:21 | 1310016 Vashta Nerada
Vashta Nerada's picture

You've never heard of the Curtis-Wright Corporation, have you?

Wed, 05/25/2011 - 15:32 | 1310069 Flakmeister
Flakmeister's picture

What does that have to do with anything? Do you think the Hahn et al were trying to get rich? Hell, how about Franklin or Count Rumford?

Wed, 05/25/2011 - 08:55 | 1308491 Calmyourself
Calmyourself's picture

"This is why we need to organise our economic systm on something other that profit motive."
Like what pray tell the urge of the proletariat to jointly own all assets? Just be sure not to look at the oligarchy behind the curtain with the massive police state. No thanks, I prefer to take my chances with individual greed at least that has continuing leverage.

Wed, 05/25/2011 - 09:09 | 1308530 writingsonthewall
writingsonthewall's picture

Yeah - because that's working out juuuuuuust fine isn't it?

All your assets are owned by the banks - and if they aren't yet, they soon will be. Even if you are the 'super special investor' you think you are - how long are you going to last as your free market compatirates lie dying in the road beside you?

 

...and you're already in a police state - didn't anyone tell you? The banks dictate to the Government what to do - don't believe me? - well go to the next shareholder meeting of a bank you have shares in and make a fuss - see how long it is before you're arrested under some dubious law.

Greed always leads to corruption - and it is corruption which prevents free trade and hinders human progress - and yet you think this is the best way forward?

Wed, 05/25/2011 - 09:29 | 1308580 TheTmfreak
TheTmfreak's picture

Your arguments for communism are typical and crap.

Crony capitalism isn't the same as capitalism.

Yes the profit motive brought the largest increase in living standards the world has ever seen. All of the problems we see today, have been "brought to you by" government sticking its damn nose where it doesn't belong.

This article was crap beyond crap.

Wed, 05/25/2011 - 09:39 | 1308628 writingsonthewall
writingsonthewall's picture

Once I waded through the crap I can see you're producing the same baseless arguments as all free market flunkies do.

1) Crony capitalism is the logical conclusion to capitalism. Accumulating capital is the aim of capitalism - using 'cronyism' is just an extension of this, but an extension only available to the wealthy. You talk as though cronyism simply 'appeared' from the sky one day - but actually it's been building up over a number of years. Even without any Government regulation - cronyism would still be the result of capitalism. I mean surely every capitalist will do everything in his power to accumulate and protect his capital - or are you saying captialists are bound by some agreement otherwise???

2) The argument for captialism bringing increased living standards is FALSE. There is no baseline with which you can measure against so the argument cannot be substantiated. However the increase in living standards are all to do with TECHNOLOGY and have nothing to do with captialism. This is an age old argument trundled out by blinded capitalists but for which they have no evidence to prove it. It's not even demonstratable as both the centrally planned economies of the USSR and the Chinese have comparable increases in the standards of living - and yet neither employed the market in their resource allocation. In fact it could easily be argued that the standard of living the USA has been false for a long, long time - only loss of purchasing power has given the impression of progress.

...and this isn't an argument for communism - this is an argument against capitalism - one which evidently you have lost as Capitslism goes into 'yet another crisis' and where the only way to prevent total economic collapse is to revert to 'socialism' i.e. the people covering the losses of private banks.

 

...or would you prefer we let them fail and see what happens? - I'm game for that because I have enough gold stashed under my bed for such an eventuality - but not eveyone knows what I do - so is it fair to 'drop the bomb' on people who have no interest in finance?

 

You need some better arguments - they have failed and are failing and simply repeating the same old shit isn't going to change it. Capitalism failed the first time someone (i.e. Government) had to step in to protect the consumer from unscrupilous traders - probably in the middle ages - to want to go back to such an era pretty much sums up your 'progressiveness'

Wed, 05/25/2011 - 10:04 | 1308744 TheTmfreak
TheTmfreak's picture

1. Crony capitalism requires the government to pick winners and loosers. Or at least assisting in the creation of an illusionary safe system by which allows people to "Trust the system" rather than using their own fucking instincts. "Ahhhh these investments are safe we have them backed up." Such as muni bonds. Safe? No. Deception? Yes.

2. Look, if you're going to give this "baseline can't be measured, therefore you can't say that" argument you can go off the deep end on many, MANY other logical arguments and entailments. I'd recommend not opening a philosophical can of worms you're not prepared to handle. Or at a minimum not be used on your OWN "arguments." If you'd like me to go on a long tangent about the logical inconsistencies and assumptions made with everything that is "measuring", than I'll kindly do that. I'd rather refrain from doing it since it doesn't have a purpose here. Your arguments are no more "grounded" on fact than mine, in the "real" sense of it.

Technology wasn't created through capitalism? Really? You're telling me that people did not innovate for profit? You've really gone off the deep end on this one. If we have lived in a system that has "brainwashed people" (some might say, i say its natural) to want to profit and to do better, than it MUST be the case that somebody innovated FOR profit. You're telling me NOBODY innovated technology for profit? Not even Ford? Just one person would be required for your argument to false. Technology doesn't just appear, poof out of thin air. Somebody has to have a REASON to create/discover (choose) technology.

Russia only RECENTLY has had increase in standard of living across the board. Why? They accepted capitalism (more so than before). China? The same fucking thing. They are a state assisted capitalist society. If this wasn't the case then how could all of these private businesses be moving to China? While I have utter contempt for their government and their actions, I will not deny that a state assisted crony capitalism country is better than purely a state ran one.

 

Lastly the banks should fall for bad investments and all those who deceived and stole should be destroyed.

Wed, 05/25/2011 - 10:13 | 1308793 I did it by Occident
I did it by Occident's picture

but wait, isn't Crony communism also the logical conclusion to communism?  and Crony socialism the logical conclusion to socialism? and Crony fascism the conclusion to fascism?  etc, etc. 

 Cronyism is the end result to any and all systems administered by human interests.  Greed for personal gain (profit, personal gain, or otherwise) is a feature not only in the capitalist model but all models.  They just don't call it profit in the other models, maybe it is called something else like power, position, reputation, esteem etc. in other models.  One can even make the argument that it is hardwired from the ol' evolution days.  So your arguments against capitalism may as well be arguments against ANY other system.

Wed, 05/25/2011 - 10:16 | 1308822 TheTmfreak
TheTmfreak's picture

Well said.

The only system this doesn't apply to is anarchy. The only system by which there isn't an entity that can abuse its power. That creates an illusion of less risk involved with trades and transactions.

I don't call it a utopia nor that everything will be amazing roses, I call it not fucked up and onesided.

Wed, 05/25/2011 - 10:23 | 1308862 Flakmeister
Flakmeister's picture

I looked and couldn't find the link to apply for an exit visa to Somalia...

Pop Quiz: Can you provide a list of societies that are anarchist that can be termed sucessful?

Wed, 05/25/2011 - 11:01 | 1309003 TheTmfreak
TheTmfreak's picture

While your comments are snide, arguing against anarchy and then citing "i can't get a visa" is pretty lame. As somebody who thinks visa and licenses are stupid as hell, why should I care about that?

Define successful? There have been plenty of governmentless communities. Since all societies have fallen at some point in time, are therefore any successful? Are only the ones that are currently existing successful? I don't see the merit or purpose of your question.

So long as people believe they can live in a community that is governmentless it is possible and has been possible.

Wed, 05/25/2011 - 10:58 | 1309006 Flakmeister
Flakmeister's picture

Quit dancing around, list them...

Wed, 05/25/2011 - 11:08 | 1309023 TheTmfreak
TheTmfreak's picture

http://en.wikipedia.org/wiki/List_of_anarchist_communities

Here is a wiki list since you can't do your own research.

You didn't answer my post whatsoever. Define successful.

"I have gained this by philosophy: that I do without being commanded what others do only from fear of the law."

-Aristotle

Since I know this quote is "real" and people actually do believe in this, I believe people can work out their own problems. Government creates an illusion of security so that people may fully free themselves to lay all their chips down on the table. In otherwords be as productive and willing to trade with others because you know the contract will be fullfilled on the otherside. While I will state that this is a very nice state that people would be able to conduct themselves with the "full faith" in others, it remains completely illusionary.

Wed, 05/25/2011 - 11:19 | 1309092 Flakmeister
Flakmeister's picture

 I looked at your list.... Sorry, it does not cut it, "sucessful" sort of implies that they stuck around for a while... I also note that 3 of the 4 were the result of a civil war.... The 4th does not even have a link...

Yes, people can work out problems. The real problem is how you deal with the 5% of the population that are socio-paths. All political economic systems must account for this... Some liberty must be restrained to protect the liberty of others.

Wed, 05/25/2011 - 13:15 | 1309565 blunderdog
blunderdog's picture

The real problem is how you deal with the 5% of the population that are socio-paths.

In the US, we promote them to the highest ranks of our corporations and elect them to public office.

Hard to imagine how anarchism could possibly be worse.

Wed, 05/25/2011 - 13:15 | 1309566 trav7777
trav7777's picture

far more than 5% are sociopathic

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