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The Definitive Rich Vs Poor Chart: "The Rich Hold Assets, The Poor Have Debt"
This chart from Citi's Matt King pretty much sums it up (and contrary to what Magic Money Tree growers will tell you, debt is not wealth).
Why is it important? Simple - contrary to the Fed's flawed DSGE models, it is the poor who are more likely to consume. And logically with their purchasing power being funneled to the rich with every $85 billion in monthly debt monetization, they purchase less and less. As the slow but steady contraction in the economy over the past five years has proven beyond a reasonable doubt.
But hey: at least Hamptons' houses have never been more expensive and the Russell2000 keeps on hitting daily all time highs. Thank you "wealth effect."
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The way I heard it broke people have big TVs. Rich people have big libraries.
rich people build libraries for tax writeoffs
It's so homeless people have a place to go during the day. The compassion they must feel !
With all the available resources online you do not need a big library (at this time... ) just a good internet connection and the skill set necessary to find the information you seek.... this doesn't require a large fortune.. but it does take TIME to read, research, filter and absorb the knowledge and information...
I am retired, have no TV and spend my down time reading online.... ZH has some information worth reading but more importantly it also provides a links to other sites that have more detail and specifics, the biggest problem I have with ZH is that the "tone" of ZH has changed over the years... it panders to the "hype" crowd......
I like my education/information "served" to me well researched, cited and without any "emotional hype" or bullshit.........<sarc>
Would you be so kind as to toss out some links you consider worthy?
Always looking for new sources of solid unhyped info.
Thanks in advance.
I agree with hardcleareye about the tone of ZH over the years. Since you asked for links (albeit not from me so I apologize in advance for the liberty I take in replying), here's one I found particularly useful: http://www.prefixsuffix.com/rootchart.php; I use it to re-examine what words mean.
Ex. Corp -or -ation = body + condition/activity + action/resulting state
Otherwise stated "The state, condition, or action that results in a body".
Based on this understanding of the language, wouldn't we all be corporations?
That's it, I will now go mind my own business.
Just watch videos, smoke pot, run up your EBT and then blame the rich for not paying their fair share. You'll get a free Obamaphone!
yeah and they should also teach you how to ride a horse and how to grow potatoes. there used to be a game, forget the name of it, they dropped you off in a strange place with no money, and wait to see how long it takes you to get home. that's your financial education
There is plenty of financial education taught in schools:
You go in because "you're supposed to", borrow lots of money, give it to them, they tell you to "study what you like", you graduate, and now you stand on street corner w/useless piece of sheepskin and a large bill.
Your financial education: "Think for yourself. Watch where the money comes from and where it goes. People will lie for money. The name of the game is 'marketable job skills'. Intern during the summer instead of screwing off because you will need a job." Take classes that enhance your appeal to those who offer internships."
The System teaches what the System needs to mantain the status quo.
Read Althüsser.
(Pocket) Change You Can Believe In.
Your pocket - his change.
The trouble is that the money that is tied up in assets held by the wealthy elite in one way or another, at a fundamental level, is not available for the debt slave to earn to pay off their debts. Thus, we get a deflationary death spiral that can only fought off with injections of new money based debt vis-à-vis QE programs. Of course the reason the debt ceiling debate is such a big deal is that it threatens this very shaky foundation of our very, very fucked up money system.
But King Obama told us that we could borrow our way out of debt.
Re: But King Obama told us that we could borrow our way out of debt.
He simply believed King Cheney when he said: "Reagan proved deficits don't matter".
Who's the bigger sociopath?
The one who added the most debt!
Yes, Master Obama told you that while he spent your money! Master Obama would have a different slogan if you were proposing to spend his money.
Gold is the Currency of Kings
Silver is the Currency of Gentlemen
Barter is the Currency of peasants
Debt is the Currency of Slaves
There is a reason for the term Debt Slave.
Uber Vandal; yes. Debt is simply piecing off your own future to satisfy a need in the present; because you have nothing else.
Here is the law, in black and white:
"To them that have it shall be added; and from them that have not it shall be taken away, even that which they have."
Luckily not many debt slaves hang out here (or similar locals), so the kings and gentlemen don't have much trouble keeping the gold and silver to themselves.
Bitcoin is the Currency of Criminals!
you walk into a rich persons house and you see uncluttered rooms, a few items of tasteful furniture, lots of space. when you walk into a lower middle class home you see stuff, the walls are full of it, they can't get the car in the garage, they need storage rentals to keep it all. its seems the rich are less materialistic, or maybe they're just more abstract in their thinking. no surprise what separates exceptional from average people is better abstract mental reasoning skills. rich people are also known for not paying their bills on time, but their creditors seldom complain. (they took my neighbors trash containers this week because he didn't pay his bill) the rich don't understand money, that is sweat money, which you can see if you look at their liquid assets.
Grateful; that's about it. They prefer wealth in long-lasting and concentrated form - fine art, precious gems, rare books. Better taste, better education.
This is not going to change or even be seriously challenged, unless we go full Maoist.
The idea of Democracy is flawed because it bypasses a natural fact; that people are not born equal, their labor is not of equal value, their minds are not of equal value and for god's sake their vote sure as hell should not be equally valued or weighed. Look what we got here in the states; endgame.
Look at the quality of men who founded the country, as opposed to those who run it now. If you can do it without the "oh, but they were slave owners" chest-pounding you will begin to get my point.
She was in the wrong place at the wrong time. Unless you are her family, you are feeding off the emotion, like any media vampire. Give it a rest already. Go back to the other porn, on your other screen. Or zip up and go look for a job.
I confess I did very much enjoy watching that prowler go over the, um, speed bump.
this terrible shooting of this confused human being who happens to be black is disgusting, lawless and TRUE terrorism - make a wrong turn in capital streets and this is your fate. This women needs Justice DONE..where are the law enforcement officers of our country? the Lawyers and Judges? who willdeliver justice to her killers? The MSM will never speak to this, freedom lost justice lip service. the silence of people that took on the mantel of civil rights shows us who are the real takers of our freedoms and the servents of evil reptile elite.
confused? maybe she was trying to sign up for Obamacare?
She was armed with an assault baby. Obama should ban assault babies, they are everywhere.
Song playing on Matt King's smart phone as he typed this note.
That's the way, uh huh uh huw, we like it, do a little dance ...
I thought the Fed had already decided that assets and debt were the same?
they refer to their MBS paper as a"deferred asset". to my thinking the only real "deferred asset" is gold and silver, which is an interesting confusion on their part.
Scroll down to the 1st comment in this article. PRUDEN: The cheap tricks of the game - Washington Times
Was Obama the Father of the child?
Yes! And Reggie was the mother!
So... Rich people have money and assets. Poor people do not.
Wait till someone figures out that income taxes target people who have income. And that having assets and having income are not the same things.
Shhhh. We're taxing "the rich" by increasing income taxes.
My assets have been well taxed before they became accumulated after-tax assets. They are looking to get some more tax from me when I die.
Taxes on earning income and spending income are more than sufficient already. We do not need to add another tax for not spending income (aka assets).
The US does need to have a candid discussion about whether it wants to level outcomes. If so, they just need to go full socialism or communism. Many want that outcome, but are just afraid to say it.
Well, get jewelry, art, coins, Ferraris, stamps, etc. and "gift" them to your grandchildren. Voila! Estate tax bypassed.
And this won't make differences of any kind between people.
NHK Newsline, Oct. 4, 2013: “I’m terribly sorry for the mistakes we have made. We mishandled the leaking wastewater, and that is affecting the environment.” – Naomi Hirose, Tepco President
Hallmark should have a sad-face Hello Kitty card for that.
And for best effects that would be a MUTATED-sad-faced Hello Kitty image on that card. Though this might cause problems with the copyright lawyers arguing over whether it really IS an image of Hello Kitty.
The first chart is from 2010... I wonder how much has changed since then? Bet the amount in principle residence has gone up...
debt is not wealth? sure it is, just not
your wealth; it is your demise and the holder
of the notes wealth so long as it is converted
into an asset before the debt is recognized as
fraudulent in either its induction or composition.
that it is a terminally flawed mathematical impossibility
as a sustainable money system is a feature, not a flaw.
it is systemic dehumanizing usury under god
and there we are encouraged to trust !
oh, and it doesn't work well for the 90% of the
people.
.
that is the game they would have you play anyway..
poems *t
see debt as money II.
Yup, there's a possibility of debts being repudiated. Although I always intend to pay what I've contractually agreed to I take advantage of a hedge that mortgage collectors might all come to be out of work: I keep paying on a mortgage that was acquired with cheap money; this allowed me to retain more money to leverage in other things; if the collectors stop coming then I'll have come out ahead.
So... where's the problem? This is what illegal immigration and subsequent QE ^ was set up to do.
But I thought the Takers were making life hell for the makers. America is taxing it's wealth producers to death. Corporations are taxed and regulated into bankruptcy. The class warfare of Obama aginst the well off has made them second class citizens, in fact most w2ant to leave Amercia since they are treated so badly.
Seriously, I have seen discussions here on ZH where dozens of posters make the claim that the poor are attacking and driving the wealthy out of America, using their man Obama to tax the rixh to death. Oddly, these posters never quote the figures of income growth or tax rates. Like the light touch of capital gains compared to income from wages.
Rest easy in your beds. The rich ar taking all the productivity gains, they are getting all the free Fed money, they are long the stocks that the Fed manipulates up and up. The game is rigged, the wonners can't lose anymore. The media will not tell you that fact.
Workers jobs are going to China, while the Fed manipulates the wealth of the rich in a constant ascent upwards. That 85 billion a month does not end up down in the hood with the takers!
I am sorry if people believe conggressional republicans and fix news when they say class warfare is be mean to the rich. I maintain that this is a lie. The wealthy have never ever had it so good. I think the income and tax numbers prove this beyond debate. So I expect a lot of down arrows, but no figures to back up the negs. Look at the numbers, they tell the stroy, not the fox and kock boys.
Fox and Kock?
It's accelereated under Barry and the Bob Rubin accolytes which started under Willy and Hitlery. Throw in Soros, Buffett, Dimon, Blankfein, Corzine and all the other Blue Team assholes raping the country.
Why bring some truth into reality and fuck up a Friday for the Hosts of the Parasites?
Filthy rich becomes a disease. As an executive chet I met and worked for some filthy rich people in country clubs. The ones that earned it were generally better to work for than the ones born into it. Money like, sex, drugs, fame, all can be addicting if you let it. Thing about a certain percentage of the filthy rich is as long as you have a dollar in your pocket they want that as well. Kind of like how do you drive a Hollander crazy? Put him in a round room and tell him there is a penny in the corner. I am of Dutch decent so no crazy Europeans need to down arrow me as I am not being Razist.
Crossed my mind this had the appearance of what might become more of a bail-in "menu." "I'll pass on the private equity tonight, waiter. Think I'll try some pension." "Good choice sir." You're welcome Ben.
MSM and other blame game clowns blaming it on postpartum depression, more like debt depression. When I heard she was dental hygienist and saw her in video driving G37, one of two things either she has man(ruled that out after seeing picture = 60%+ chance she was single mom) that has money or she doesn't own a thing and lives beyond her means.
"dental hygienist and saw her in video driving G37" and a single mom with an 18th month old baby. Who watched the kid while she worked? HOW MUCH DO TOOTH CLEANERS GET PAID IN Connecticut?
Somebody should check to see if Obama was in Connecticut 2+ yrs ago? Maybe she was trying to get to the Baby daddy?
MOOshel gonna be awful mad!
The rich hold the debt of the poor. Its an asset on their balance sheet. The poor are going to default en masse and in the process destroy the rich. Then 99% poor will then set upon the 1% rich and slit their throats.
The scales will be balanced in the end. They always are.
to paraphrase one of the wealthiest men of all time
take everything away from me expcept my 4 best men and I will rebuild what I have in 3 years.
most of the poor are poor because of their actions unless they change those nothing changes.
and the rich get richer on the fees and charges
associated with bailing themselves out and then
blame the poor ! what an evil racket, biblical
proportions ! dogs and cats, living together,
mass hysteria !
Have to go after the business equity next.
Do away with all taxes and replace it with increased luxury and Estate Tax. This wealth is creating rich dynasties that impeads growth. Estate Tax is a form of creative destruction.
The Rich hold all the Assets. No $hit $herlock.
This is like someone "discovering" that pig manure stinks - (the Federal Government still doen't no why and is funding research to find out.)
HEY DUMB DIX!
Here it is again.
GIVE QE TO THOSE WHO WILL SPEND IT
GIVE QE TO THOSE WHO WILL SPEND IT
GIVE QE TO THOSE WHO WILL SPEND IT
SEE the 2nd chart. Hello FED are you that stupid? It's time, bloody revolution on your severed head if you fail to act.
The riches' businesses have most of the debt.
It's called modeling for inequality using segmentation...banks been doing it for years...former Larry Summers quant explains...stay tuned for the q and a here for bonus comments...she nails his behavior to the tee...
http://ducknetweb.blogspot.com/2013/04/modeling-for-inequality-with.html
24/7 barrage of C-R-A-P Ads ... cars to houses, to dresses to furniture.....
All yours, No Money Down!
People, even educated ones are drawn into the 24/7 Drivel that lands them in deep debt. Only the amoutn varies from $780,000 for a zero down house....to $49.99 zero down, no interest for five years new sofa.
Even the plastic surgeon down the road offers $8,000 TiT jobs no money down, 5 years to pay [but at least his interest rate is a reasonable 7%].
Sounds like debt settlement might be a viable business for a few years or so.....
I believe wealth concentrates naturally: the system was not created this way by design. The consequences of too much wealth concentration may not be good for anybody in the longer term though.
http://falsificator.com/post/Wealth-concentrates
The wealthy consume less of the money they earn and this may reduce overall consumption. The increasing wealth gap probably has concequences for democracy (i.e. the way people vote) as well.
The answer is to forget about all taxes except for a tax on land and resources. We all own the Earth. I know, I'm a God damn Commie.
We have a woman here who won $50 million in the lotto. By the end of the first week she had said to a businessman who wouldn't sell her some beds on a Sunday, "Do you know who I am?" She is now thought well of though, because she gives some money to some causes. I'd probably be the same as her at some point if I won the lotto. Money is difficult to handle.
To resolve this problem, most people need to stop spending, save money and start new companies that are competitive. Unfortunately, today most people are lazy, like buying stuff, and are simply far too content with status quo (even though that is only perceived).
If people don't spend then your new company will go broke.
lol, the POOR go from ZERO assets TO MINUS thousands/ Cap assets...That is some Math.
What a great legacy the last twenty years have created in first world.
Freuchen tells how one day, after coming home hungry from an unsuccessful walrus-hunting expedition, he found one of the successful hunters dropping off several hundred pounds of meat. He thanked him profusely. The man objected indignantly:
"Up in our country we are human!" said the hunter. "And since we are human we help each other. We don't like to hear anybody say thanks for that. What I get today you may get tomorrow. Up here we say that by gifts one makes slaves and by whips one makes dogs.
... The refusal to calculate credits and debits can be found throughout the anthropological literature on egalitarian hunting societies. Rather than seeing himself as human because he could make economic calculations, the hunter insisted that being truly human meant refusing to make such calculations, refusing to measure or remember who had given what to whom, for the precise reason that doing so would inevitably create a world where we began "comparing power with power, measuring, calculating" and reducing each other to slaves or dogs through debt. It's not that he, like untold millions of similar egalitarian spirits throughout history, was unaware that humans have a propensity to calculate. If he wasn't aware of it, he could not have said what he did. Of course we have a propensity to calculate. We have all sorts of propensities. In any real-life situation, we have propensities that drive us in several different contradictory directions simultaneously. No one is more real than any other. The real question is which we take as the foundation of our humanity, and therefore, make the basis of our civilization.”
- David Graeber, Debt: The First 5,000 Years
DUH!!
There is a radio talk show that has a system that teaches people to how to avoid debt.
The reason the poor have debt is because a very small number of the richest correctly foresaw that through the twin mechanisms of the economic progress trap and consumerism/consumption fetishism, they could extend massive amounts of credit to the plebs with which the plebs could then buy the energy and stored-energy products (owned/produced by the very same richest persons) which, for a while at least, would allow them to service their debt. I'll mention in passing that these creditors have fractional reserve lending privileges and other competitive advantages which ensured that even when large numbers of their debtors went bankrupt, they still made a profit. I call it the debt trap.
The credit being extended to finance capital expenditures is THE missing link. Without it, the whole thing never gets off the ground - it's impossible for these burgeoning new industries to become profitable by acheiving economies of scale, etc. etc - look at green energy in the past decade or so, the "adoption" cost of these technologies has (still) not fallen enough for them to be affordable to large markets and get the growth going. It is exactly the same process that occurred during the coal and oil revolutions, only back then, there was plenty of willingness and ability to profitably invest in these new technologies - but that's a topic and can of worms for another time.
Without this energy, there is no rational reason to extend all this credit as the plebs can't service the debt and opportunities for productive investment largely don't exist because no one else in turn can afford to make them profitable (even if you build it, they won't come) - things like disposable income and retirement don't exist in the contemporary senses of these terms.
Turns out the people's demand for energy and stored-energy products is basically limited only by the number of people, which coincidentally will always grow if given the opportunity, and what an opportunity it was. More consumers needing more debt to finance more consumption of more energy and stored-energy products - both out of economic necessity (say, to get a job) and cultural/social imperative (to be cool, fashionable, modern, chic, respectable, etc.). All of this was baked into the cake since industrialization got into stride over a century-and-a-half ago. Virtually everyone was thrilled to be "movin' on up" the energy-consumption-per-capita ladder when it was their turn - look at the aspirational classes within Chinese and Indian society in recent decades for contemporary examples. Doing so requires debt, because there are upfront costs to bringing energy resources, in usable forms, to market - costs which "the poor" (obviously) cannot afford to clear via lump-sum payments. And this works okay so long as the debt can still be serviced and can still bid competitively for scarce energy resources in a global market and in general while it's cheap-as-shit to extract those energy resources.
Very soon it will no longer pay to give all this credit to the plebs. For decades now, on an exponential trajectory, the overextension of credit has been growing, but the amount of crap that debt both produces and can be used to purchase is decreasing.
What the Masters of the Universe are attempting right now is to keep energy prices in the Goldilocks Zone of about $100 to $110 per barrel. Not below marginal cost of extraction ("production", for the econotards), not above the marginal clearing price which the world's energy consumers can bear, if it skews too far in either direction, the wheels start to fall off in very short order. Take a loot at charts of oil priced in gold or silver, vs oil priced in the currencies of your choice. It's pretty darn stable. The Goldilocks Zone. There was a commenter - username something like cpw or cdr - who was fond of repeating the notion that oil above ~$80 basically meant no growth, that it would have to go back to around $50 to permit any real growth. This is not really the case, because in the time since oil was at $50 or $80, the marginal cost of extraction has risen, and will keep rising (forever). Oil at $50 or $80 a barrel today would mean nationalization of the entire oil industry within a few months - actually it would lead to world war before that, as the petrodollar system would rapidly implode. Technically you can set any price you like for the oil, as long as you have the (military) capability to physically acquire it. In reality, this has already happened in all but name, this is the petrodollar system. In any case, this is a self-defeating endeavor, as the resources needed to extract the energy will rise, absolutely regardless, and whatever is extracted will not be available to you or I at any price - the global economic system will be obliterated rather quickly, it's barely holding together as it is right now.
This is a slow boil, as anyone can see that things will just continue to fall apart as more and more people are priced out of the energy market. We experience this as staglfation, but an equally appropriate term is energy deflation - all these worthless claims - the number of which is growing at an accelerating rate - known as dollars/yen/yuan/euros/etc. are chasing after the same energy resources of which there is less and less each second. The deleveraging, in this case, means (forcefully) destroying demand for energy. Plan accordingly.