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"The Biggest Redistribution Of Wealth From The Middle Class And Poor To The Rich Ever" Explained...

Tyler Durden's picture




 

While the growth of inequality in America has been heavily discussed here, it was Stan Druckenmiller's outbursts (and warnings that "from beginning to end - once markets adjust from these subsidized prices - that the wealth effect of QE will have been negative not positive") that brought it more broadly into the average American's mind. QE, taxes, income disparity, and entitlements are four major means by which wealth is transferred from the poor and the middle class to the rich. The following simple chart explains it all...

 

Via Shane Obata-Marusic ( @sobata416)

 

A - “the rich hold assets, the poor have debt” is how Citi’s Matt King described the distribution of wealth in the US.

B - QE has resulted in a loss of purchasing power for the US dollar. Faced with this problem, consumers in the middle class are taking on more non-housing debt in order to maintain the same standard of living. In addition, the US government – which continues to run a deficit year after year – continues to accumulate debt. Due to these facts, total debt outstanding – aka credit market instruments for all sectors - is at all time highs. More debt means more interest payments and lower savings rates. These trends do not bode well for the middle class consumer.

C - On the other hand, QE has been great for the rich. QE has inflated the prices of assets such as property, bonds, stocks, and non-home real estate:

Home prices in Detroit are going up despite the fact that the city is bankrupt. The “housing occupancy” table is meant to show what appears to be a higher than average amount of speculative demand i.e. lower than average owner occupancy rates.

The rich have most of the assets which is why the average family income of the top 0.01% increased by 76.2% from 2002 to 2012. In contrast, the average family income of the bottom 90% decreased by 10.7% over that same period.

D - Taxes as a percentage of real disposable income have more than doubled since 1980. This trend has not been kind to the bottom 90%.

Conversely, favourable tax rates on dividends and capital gains have allowed the rich to become wealthier over time.

E - Median household income has been in a downtrend since the late 90s.

In opposition, corporate profits are at all-time highs.

F - The entitlement problem is only going to get worse as more baby boomers leave the work force. Future generations will have to pay for the debt that the old and rich continue to take on.

Growing benefits and sympathetic tax rates on investments enabled the old to increase consumption by 164% from 1960-1991 .

G - In conclusion, QE, taxes, income disparity, and entitlements are contributing to “the biggest redistribution of wealth from the middle class and the poor to the rich ever” If things continue the way they are going, then millennials and future generations will pay the price:

Despite the fact that inequality in the US is nothing new:

Today, it might be worse than it ever has been:

Unless the distribution of wealth in America begins to change for the better, assets will continue to benefit the rich and debt will continue to burden the middle class and the poor.

For an economy that’s largely based on consumption, excess debt only serves to reduce expenditures and to slow economic growth over time.

Quality of life for the median American household is only going to get better if the issues associated monetary policy, entitlements, taxes, and income are addressed and dealt with.

For now, the best thing that you can do is to discuss these issues with your friends, family and colleagues and try to come up with solutions.

 

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Fri, 01/03/2014 - 08:56 | 4296076 tip e. canoe
tip e. canoe's picture

the good thing about the local is that folks can do exactly what the people in your township did.

the Feds, not so much.

Thu, 01/02/2014 - 21:33 | 4295143 q99x2
q99x2's picture

If I don't have debt am I middle-class?

I have a 1992 Toyota Corolla that breaks down on the Freeway during rush hour from time to time.

I don't feel rich. I feel free bo bo bo bo bo bo. I feel free bo bo bo bo bo bo.

Fri, 01/03/2014 - 02:08 | 4295767 Clowns on Acid
Clowns on Acid's picture

Upgrade to a 2002... ya cheap bastid...

Fri, 01/03/2014 - 02:27 | 4295791 Skateboarder
Skateboarder's picture

The 2002 Camry is one of the most reliable beasts ever made!

Thu, 01/02/2014 - 21:39 | 4295156 eddiebe
eddiebe's picture

Sucks to be trickled on, doesn't it.

Thu, 01/02/2014 - 21:40 | 4295163 Xanadu_doo
Xanadu_doo's picture

Thnx for the chart pron and always good reporting.

 

Oh, and Bernanke, Obama, Ried, Palosi, Beiner, McCain, et al: FUCK YOU!!!

Thu, 01/02/2014 - 21:44 | 4295186 IridiumRebel
IridiumRebel's picture

Do not forget Yellen.

Fri, 01/03/2014 - 00:18 | 4295588 Soul Glow
Soul Glow's picture

Don't forget Madame Lagarde.

Thu, 01/02/2014 - 21:40 | 4295172 Jack Burton
Jack Burton's picture

I dare say I knew all this for years. Nice to see it given coverage, as many still think 2014 America is a socialist dictatorship in which the rich and corporations are being robbed by the poor and lower middle classes. A nation where corporate incomes, capital gains and incomes of the wealthy are being looted by Obama and handed around to the poor and minorities. I suggest a few trips to rural America and to big city America outside the several rich suburbs each metro area has. The collapse in housing stock and the empty shells of business and industry should maybe be seen for what it is, the collapse of the income stream for the bottom 70%.

Thu, 01/02/2014 - 21:54 | 4295209 Tulpa
Tulpa's picture

Who is this "many" you speak of?  Assuming you're referring to Randians and the like.. Atlas Shrugged featured plenty of rich people and corporations who profited greatly by allying themselves with the government.

Big government and big business are BFFs regardless of the ideological label of the former.  Libertarians have understood this for ages.

Fri, 01/03/2014 - 00:51 | 4295653 TruthInSunshine
TruthInSunshine's picture

I was at a social function where some dickhead was going on and on about how brilliant Warren Buffett is, and I came so close to smashing his fucking face in with the palm of my hand that I had to excuse myself & go get another drink.

Fri, 01/03/2014 - 02:27 | 4295796 Element
Element's picture

Ah ... the unsated rage agaist the idiocracy ... know it well ... be cool TIS. ;-)

Fri, 01/03/2014 - 03:02 | 4295820 TruthInSunshine
TruthInSunshine's picture

The last time I had to imbibe to refrain from lashing out violently was 2008.

It may be a harbinger of bad things on the immediate horizon.

Fri, 01/03/2014 - 00:14 | 4295184 IridiumRebel
IridiumRebel's picture

i skip the middle man now and drive a couple neighborhoods over and knock on the first mansion I see and just ask, "Who do I make the check out to?" I've also been to a couple corporate whores like GE offering to work for free. They gotta get their welfare too. May just have to cash my next few checks and drive through the hood tossing Benjamin's to keep them in the loop too. I'm middle class. I gotta dole it out to everyone. Just fuckin shackle me to a desk and let's quit fuckin around. 

Thu, 01/02/2014 - 21:48 | 4295197 richsob
richsob's picture

I'm sick of reading this kind of stuff.  Unless and until people start fighting back nothing is going to change.  What's fighting back?  Voting right.  Marching in the streets until the Justice Department gets off its ass and starts indicting the right people.  Stop buying shit you don't need.  Write a check to whoever is running against any incumbent.  In other words, start scaring the shit out of them and don't let up.  Never let up.

Thu, 01/02/2014 - 21:58 | 4295225 denverdolomte
denverdolomte's picture

I understand your sediment, but voting? Marching on the streets is for sure a way to make a sound and start a movement, but look at the militarization of our police departments across the country, they know when all is taken from the citizens that things won't remain so calm day to day. 

Stop buying shit, agree completely on that. Dropped my mobile phone service this year, cable bills, don't buy new clothes, ride my bike instead of driving anywhere, etc.

I wouldn't agree with writing a check to support a politician in any way, as birds of a feather flock together. Until people start bring their fights back to the local level and clean house from there on out, it will never work trying to fight from the top down. As none of us have the funding to fight against political dynasty partys which is why we are stuck in a two party fight which is complete and utterly fake. Both owned by centralized banking and corporate greed.

Fri, 01/03/2014 - 00:23 | 4295596 Soul Glow
Soul Glow's picture

The "financial" "system" is going to collapse, so, you know, don't worry, a change is 'a comin'.

Thu, 01/02/2014 - 22:53 | 4295363 drendebe10
drendebe10's picture

Lock and load 

Thu, 01/02/2014 - 23:49 | 4295502 el Gallinazo
el Gallinazo's picture

They select them and we elect them.  If voting made a difference it would be illegal.

To paraphrase Buckminster Fuller, the only way to get rid of this shit system is to build an alternate one and stop using it.  Stop complying with it to whatever degree your courage at any moment allows.  The largest mass protest the world has ever seen was prior to the invasion of Iraq.  Like it proved shit.  They like to see us exercise so we can starve that much faster

Sat, 01/04/2014 - 03:19 | 4299219 Dr. Bonzo
Dr. Bonzo's picture

Every name on the ballot is vetted before it ever gets to the ballot. I was just listening to a talkshow I recorded for exercise walks. The show aired in 2007. They were still talking about Howard Dean and John Edwards as viable candidates for the '08 Dems ticket to run against Hillary. LMFAO. Barry literally snuck up on the entire pack and hoodwinked them with Change You Can Believe In. And look what they got for their troubles... the shit Barry pulls makes Dick Cheney cream his swastika panties.

 

Thanks, but no thanks.

Thu, 01/02/2014 - 21:52 | 4295208 FredFlintstone
FredFlintstone's picture

I have a question: Is anyone truly forced to take out a loan and become a slave to a bank? Where are the libertarians?

Thu, 01/02/2014 - 21:57 | 4295216 Tulpa
Tulpa's picture

No, but I am forced to pay taxes that are then donated to a bank, and watch my savings lose value as money is printed and given to a bank.

Thu, 01/02/2014 - 23:24 | 4295433 FredFlintstone
FredFlintstone's picture

Listen, I am not a fan of banks, which is why I don't take out loans anymore. The charts above paint us all at the mercy of banks and the rentier class. The fact is that we make choices and should take some responsibility for our lives. You say that you pay taxes that are donated to a bank. I am assuming that you are referring to TARP, which was in the past. I did not support this action, which gave money not only to banks, but industry as well. Fortunately this money has been paid back and the TARP the ledger is now in the black from what I understand. I don't like the idea of my savings being eroded either. I just don't like articles that try to whip us into a frenzy and paint us all as hopeless, helpless little cunts.

There are so many freaking idiots in this country that can't stop buying shit they don't need on credit. They buy and buy and buy and then cry in their beer about the big, mean rich man holding him down. Jesus H. Christ. Grow up and take some responsibility for your lives.

Thu, 01/02/2014 - 23:39 | 4295481 el Gallinazo
el Gallinazo's picture

You chose your name wisely Fred.  You obviously are not paying attention to the biggest private bank in the USA, namely the Fed.  They admit to printing (as of this month) $75 B a month which dilutes the value of our savings and goes directly to the TBTJ banks (who own the Fed) to pump the market (until they don't).  TARP was just a distraction from the main heist.  As SIGTARP Neil Barofsky famously quoted in the process of resigning, "

" Tarp bailout may reach 23.7 Trillion dollars."

http://prm-1.newsvine.com/_news/2009/07/22/3051707-neil-barofsky-tarp-ba...

Yabadabadoo!!

Thu, 01/02/2014 - 23:58 | 4295510 FredFlintstone
FredFlintstone's picture

I did not contest the issue of QE as I said I did not like having my savings eroded either. The graphic shows the fact that the rich have assets and the poor have debts. Yaba daba cunts.

Some people get sensitive when personal responsibility is brought up. We wouldn't have a lot of this bullshit if people didn't buy shit they can't afford.

Fri, 01/03/2014 - 02:56 | 4295824 TruthInSunshine
TruthInSunshine's picture

---> Debt

---> Death

What is worse? Vote now.

Thu, 01/02/2014 - 22:01 | 4295229 Catullus
Catullus's picture

Are we done reviewing the 80/20 rule for the 11 billionth time?

Thu, 01/02/2014 - 22:03 | 4295230 Catullus
Catullus's picture

Dup

Thu, 01/02/2014 - 22:01 | 4295234 Peter Pan
Peter Pan's picture

Perhaps the rich are not as rich they (and we) think they are.

When the supports of ZIRP, QE and the rest are withdrawn what will happen to the value of their stocks and bonds?

 

Thu, 01/02/2014 - 22:07 | 4295247 Stuck on Zero
Stuck on Zero's picture

All that is required is that someone organize a strike by the people who actually produce things of value.  Factory workers, truckers, builders, repairman, utility workers, etc. could walk and and quickly cripple the nation.  The rich would instantly realize they actually have nothing wihtout this small cadre of productive people.

 

Thu, 01/02/2014 - 22:23 | 4295297 zanez
zanez's picture

Imagine a total and effective janitor strike in NYC. Dirty toilets for Wall Street.

Thu, 01/02/2014 - 23:29 | 4295449 el Gallinazo
el Gallinazo's picture

Imagine the indignity of Demon and Bankfiend cleaner their own toilets.  The realization that their shit doesn't smell like ice cream would probably kill them.

Thu, 01/02/2014 - 22:17 | 4295274 MSO
MSO's picture

As if the poor would have gotten the money if the rich didn't. Nothing is going to help the poor, ever, except the poor themselves. The real hurt is placed upon the ever shrinking middle-class, just as our financial policy has been designed to do. Get rid of the middle-class the world belongs to the elite.

Fri, 01/03/2014 - 00:05 | 4295548 DaveyJones
DaveyJones's picture

I thought the middle class was the working poor

which, I guess, makes the one percent the non working poor taste

Thu, 01/02/2014 - 22:24 | 4295289 ozzzo
ozzzo's picture

"try to come up with solutions"

 

The Coup has the solution: 

http://www.youtube.com/watch?v=acT_PSAZ7BQ

 

Thu, 01/02/2014 - 22:43 | 4295341 Bacon
Bacon's picture

This guy needs to add Obamacare to the mix. The middle class will be indirectly transferring enormous sums to the poor and to the rich, most of whom are old boomers.

Thu, 01/02/2014 - 22:47 | 4295355 hooligan2009
hooligan2009's picture

well now....take the last 13 years ...has technology been the answer?

not if the nasdaq is any guide

http://advisorperspectives.com/dshort/commentaries/SPX-Dow-Nasdaq-Since-Their-2000-Highs.php

course the survivorship bias (and a liberal amount of goal post selection) has a lot to with the tail chasing of what "the market" actually is. JDSU, CSCO, MSFT, WCOM are the equivalent of todays GOOG, TWTR, FB and AMZN...as sure as night follows day.

democracy has only existed with the support of a slave caste, whether in physical or debt chains.

you could say that the rich have lent all their money to the poor and we have a diminishing pool of rich people to take money from. 

i find the generational theft argument the most compelling in defeating monetarism. there is an assumption, started in the reagan era, that deficits dont matter and hence neither does debt. i sure as hell hope that those using my savings are going to be around to pay me back, otherwise i have worked 40 years for double O, triple O fuck all blank.

Thu, 01/02/2014 - 22:58 | 4295376 CheapBastard
CheapBastard's picture
"The Rich Hold Assets, The Poor Have Debt"

Re-read "The Millionaire Next Door." The author emphasizes this aspect and why the poor stay poor; i.e., mainly b'c of continued debt accumulation and over-consumption.

Fri, 01/03/2014 - 01:05 | 4295678 TDoS
TDoS's picture

The rich get paid to be rich.  By virtue of having money, the rich get paid more money.  Even if they don't try, they just park cash in a bank account, they get paid.  The poor work their asses off, and owe every dollar they ever make before it's even in their hands.  Whom do they owe it to?  Some rich fuck.

I for one, am glad the rich are going full stupid.  The more people they step on, the more people will be ready to string them from lamp posts. 

Sat, 01/04/2014 - 11:15 | 4299623 post turtle saver
post turtle saver's picture

the rich hold assets that are productive and/or likely to appreciate over time... an asset that gains in worth while generating revenue is the "home run" you want in your portfolio

the poor have assets as well, but they're typically less productive and more likely to depreciate over time

LeBron James is rich... the people who write LeBron's paychecks are wealthy

Thu, 01/02/2014 - 23:03 | 4295393 StrawberryBlonde
StrawberryBlonde's picture

Happy New Year, Tyler. :-)

Fri, 01/03/2014 - 00:59 | 4295666 Clowns on Acid
Clowns on Acid's picture

Really now....

Thu, 01/02/2014 - 23:27 | 4295444 Yardfarmer
Yardfarmer's picture

Why should I fear in evil days

the malice of foes who surround me,

men who trust in their wealth,

and boast of the vastness of their riches?

 

for no man can buy his own ransom,

or pay a price to God for his own life.

The ransom of his soul is beyond him.

He cannot buy life without end, 

nor avoid coming to the grave.

 

He knows that wise men and fools must both perish

and leave their wealth to others.

Their graves are their homes forever,

their dwelling place from age to age, 

though their names spread wide through the land

 

In his riches, man lacks wisdom:

he is like the beasts that are destroyed.

Thu, 01/02/2014 - 23:43 | 4295483 ak_khanna
ak_khanna's picture

The whole system of crony capitalism works towards making a minute portion of the population rich at the cost of the others. In true capitalism, weak and inefficient organisations fail to be replaced with better managed ones whereas in the current democratic system those very incompetent organisations are made bigger by tax payers funded bailouts.

llusion of Democracy today.

People sponsored by the rich, make false promises to the masses to get elected. Distribute national wealth amongst themselves and their sponsors (Industrialists) and when that is not enough borrow money from rest of the world and continue the distribution process. The borrowed money has to be paid back by taxing the masses keeping in mind that tax rules are made such that the politicians and their sponsors pay minimum or no taxes.

End of political tenure, rinse and repeat till the whole system breaks down and the world wealth is cornered by a minuscule of the population.

http://www.marketoracle.co.uk/Article40231.html

Fri, 01/03/2014 - 08:07 | 4296010 ACasey
ACasey's picture

With capitalism there is capital and the strong survive and the weak fail; if there is capital.  The bank system in place does not have capital.  Its strange because the debt based fiat currency is created out of thin air with no assets.  Its imbalanced from the start.

As for democracy, the last form of governance you want is democracy.  The Ku Klux Klan was democracy.  The slave trade was democracy.  Borrowing money to bomb Syria was democracy.  Democracy is mob rule constantly changing.

The US was created as a Republic founded on liberty and independence.  The mob rule of democracy continually chews away at liberty and independence and lays the foundation of chaos. Taxes bleed off anything left available and take away capital leaving only debt.

Every provision of the US Constitution was pitched to the wind as democracy slowly eroded the Republic and offered bankers the chaos neccessary to achieve the outcome in the charts and data above.  Now, without liberty or independence, democracy offers no hope of free market capitalism and now we slave ourselves as chattel to the bankers.

Fri, 01/03/2014 - 00:02 | 4295536 A_latvian
A_latvian's picture

Why should I care if some idiot makes 1000x more than I do, so long as I have enough to be comfortable for me and my family?  If these charts are to be believed, the greated time in the US was the height of the depression era, when everyone was closer to equal... IN THEIR MISERY.  This is socialist propaganda.  The only sliver of truth is that Leftist policies serve to reduce the standard of living for all, and still manage to widen the gap between rich and poor.

Fri, 01/03/2014 - 07:48 | 4295984 ACasey
ACasey's picture

Well, the depression followed the creation of the Federal Reserve Act in 1913.  The Federal Reserve immediately went to work printing money at interest and created rises in an economy, and as the controller of the currency, raised rates creating collapse.  Its really not about left, right, socialism, etc. 

The truth is a global group of bankers control finance and wrench it from countries.  It was the loss of control of currency to this global cartel that led nation after nation to experience the devastating inevitable losses.  These banks operate independently from the interests of a country.  Banks are concerned with profit and structure their actions in the interest of banks.

Since 1948, the US currency lost 98% of its value.  At one time it was based on a standard of gold.  With that gone, debt based on nothing is a lot like skydiving and you hope you have a parachute.  The focus belongs on paying bankers interest on currency that the Treasury could print for itself at no interest.  Escalating debt owed to bankers for our own currency, not socialism, facism, the leftys, the rightys, communist, or any of the ...ism's are the problem.  The problem is greed for power by very few men.

 

Fri, 01/03/2014 - 00:15 | 4295571 Constitutional ...
Constitutional Republic's picture

The age-old money power is shifting from West to East. By whom, and why? It's the same old feudalists campaigning for the new feudalism, only this time with fancy words and a smiley face. Cajole or coerce. It's both the same to them.

Who are 'them'? Follow the money. The Vatican is the world's biggest financial power. For those with an inquiring mind, you may like to view on YouTube this lecture by Professor Walter Veith, 'The Secret Behind Secret Societies'.

It is not a conspiracy 'theory'. It reveals worrisome facts, well documented. I'm not interested in his speculation. I am interested in facts.

Not that it will stop this heinous crime against humanity, but I would rather know who steals from me and mine, rather than pretend they don't exist. Rather resist the oppressor than give in meekly.

Pope Francis is the first Jesuit General to be made Pontiff of the world's biggest financial power, the Vatican. 

The Jesuit Order was established to slay protestants and liberals; those who would think for themselves rather than obey a 'world order', the State under the Vatican.

When you understand that, then the world's present woes are more comprehensible - even if reprehensible.

Jews, Christians, Arabs, people of every nation are to be subjects of the Vatican; the old feudalists, pulling the strings of governments, and commerce.

Including the Chinese, and their grab for gold, now that the West has been plundered, weakened, ready for subjugation once again.

Fri, 01/03/2014 - 07:37 | 4295971 ACasey
ACasey's picture

That shift from West to East can be seen in the volume of gold going East.  Just like water flows downhill, gold flows from a country with a trade deficit to a country with a trade surplus.

As for the Jesuits and the Vatican, that is more real than I ever knew.  Check out Senior Attorney Karen Hudes, of the World Bank.  She is a whistle-blower and she has her own website.  Also YouTube has videos and what she discloses, well, best to strapped to the chair. 

People can easily see who the losers of the current financial system are.  Check out Karen Hudes, its revealing and its a doosy.

Fri, 01/03/2014 - 00:28 | 4295615 alfbell
alfbell's picture

 

 

The masses are too ignorant, indebted and busy trying to make ends meet to do anything about their plight. This will continue for a long time until the perpetrators blow themselves up. Then, when the dust settles, it will be time to build a new mousetrap.

Fri, 01/03/2014 - 01:01 | 4295671 TDoS
TDoS's picture

There has been one story since before America was even a nation: Wealthy owner class and the expendable livestock class.  Guess which one you are?  If you even talk about politicians or political parties, you don't have a clue.  Capitalism aint your friend.  You might be the fattest cow on the lot, with your face firmly planted in the feeder, but youre still making some other fool higher up the chain than you rich.

 

 

Fri, 01/03/2014 - 03:05 | 4295832 Oldwood
Oldwood's picture

The thing is we used to have a choice and still do to a lesser extent as to if we are the cattle or the farmer. If you choose to buy shit you don't need cause its cheap and they will loan you the money, then you are officially the livestock. Capitalism allows you to choose poorly. Your socialist  worker's paradise simply wants to eliminate all the independent farmers for one large government farm, run by idiots, that will focus not on a full feedbag for the livestock, but spending countless resources dividing the dwindling feedstocks into equal but ever shrinking allotments. Fairness rather than personal responsibility. Equality rather than meritocracy.

Fri, 01/03/2014 - 07:21 | 4295960 ACasey
ACasey's picture

Way to go, the livestock class! 

I sat through a semester of business law at Univeristy of Hawaii with the Honorable Judge Dean Cost presiding, an allstar in constitutional law. Law contains so many references to WeThePeople as chattel, or property, that realization sets in fast.  Chattel, [sounded like cattle] reveals the contempt for people that the aristocracy of finance have for us; printed in volumes of law books. 

--From the Urban Dictionary:  ...Chattel comes from a Middle English word meaning "property." It is commonly used to refer to degraded or enslaved people; those seen as property...

Time to break the bonds and try another system based on people as humans, not chattel.  Outrageous huh?

Fri, 01/03/2014 - 01:23 | 4295705 Central Ohio
Central Ohio's picture

Here is an exchange with my local federal rep.

 

 

Thank you for your letter regarding the Bipartisan Budget Act of 2013. I appreciate this opportunity to correspond with you.

For the first time in nearly five years both the House of Representatives and the Senate reached an agreement on a budget resolution. This is the first step towards returning to a more normal budget process and a step away from funding the government through continuing resolutions, which simply extend spending rates at their existing levels. While the budget deal does not appropriate funds for the federal government, it does set internal limits on upcoming appropriations bills. Continuing resolutions and appropriations bills absent a budget resolution include few constraints and spend more taxpayer money. This modest budget deal does not accomplish all I want it to, but it does move our fiscal policy in the right direction. On December 12, 2013, I voted in favor of this budget resolution and it passed the House of Representatives by a vote of 332-94. It was passed by the Senate on December 18, 2013 and signed into law by the President on December 26, 2013.

I understand many of my constituents have concerns regarding the budget resolution, especially with regards to the sequester relief over the next two years. As you may recall, sequestration is the automatic cuts in discretionary spending authorized by the Budget Control Act (BCA) of 2011 which I supported and some conservative groups opposed. The cuts from sequestration were roughly divided equally between defense and non-defense programs. Let me be very clear. The Bipartisan Budget Act does not repeal sequestration levels for the next two years, nor does it remove or reduce sequestration after fiscal year 2015. The budget agreement trades the easing of sequestration caps for two years with long term reforms to mandatory spending and targeted spending cuts in the discretionary spending.

I voted for this bill for a number of reasons. First, mandatory spending is the main driver of our structural debt and this budget focuses on mandatory spending reforms. While discretionary spending may increase in the short run, this budget would reduce spending by $85 billion over the next 10 years, resulting in a reduction of the deficit by roughly $20 billion more than the BCA, even when considering the short term easing of sequestration. As a fiscal conservative, a "no" vote would have been a vote against further deficit reduction.

Second, a majority of the savings we achieve in this budget agreement come from changes in mandatory spending programs. As you know, discretionary spending has to be approved by Congress each year and can be increased or decreased, while mandatory spending increases automatically without Congressional approval. Mandatory spending is the real driver of our debt and deficit. In fact, the non-partisan Congressional Budget Office projects mandatory spending will make up roughly 60 percent of all spending in fiscal year 2013. The Bipartisan Budget Act reduces mandatory spending in programs like Medicaid, Medicare, and federal pensions. The budget agreement also cuts from discretionary programs by ending wasteful energy research programs sponsored by the federal government, ending improper payments to prisoners who are receiving federal benefits, and preventing government checks from going to deceased people.

Third, what we have heard time and again from officials from the Department of Defense (DoD) is that the across the board sequestration cuts are harming military training and readiness, and jeopardizing our ability to respond to a threat to national security. The next round of sequestration was set to cut $20 billion from the DoD in January 2014. I believe that while we need to continue to cut spending, sequestration is an imperfect tool for achieving deficit reductions. This budget deal would ease sequestration for defense and non-defense programs for the next two years and allow Congress to make more targeted cuts elsewhere in the budget. This allows us to maintain both national security and fiscal responsibility.

Fourth, while discussing a budget agreement, there were certain Republican defense hawks who were willing to work with Democrats to fully repeal sequestration all together in order to forgo further cuts to the military. Again, I believe we must find a way to ensure both national security and fiscal responsibility, and this budget puts us on that path. The budget agreement keeps the spending caps of the BCA, reforms mandatory spending, and helps ease the cuts to the military.

Finally, even though Democrats have pushed continuously to raise taxes in order to balance the budget, this budget does not increase income taxes on any American. I believe the American people should be allowed to keep more of their own money to invest or spend as they like. This budget does not raise federal taxes and ensures that Americans can keep their hard earned income and investments.

This is far from a perfect bill; however, we have a divided government where Republicans control the House of Representatives and the Democrats control the Senate and the White House. Both sides compromised, and the budget agreement reduces the deficit through smarter spending cuts without increasing taxes and sets the precedent of addressing out-of-control mandatory spending, which is the driver of our structural deficits and debt. Rest assured I will continue to support reforms to our mandatory spending programs, more targeted cuts in our discretionary budget, and reforming and simplifying our tax code.

Thank you again for your letter. Please contact my office if I can be of assistance in the future.

                                                                                   Sincerely,

                                                                         

                                                                                   Representative to Congress

Thank you for your detailed response.  My basic premise is that while the BBA may make some achievements, it does little to change the direction of our government.   It is a small step and its significance on deficit and debt reduction will fade away over 10 years.  


 

Here is a link that shows the trend line for discretionary spending.  It still goes up!  http://budget.house.gov/uploadedphotos/highresolution/2f928347-43b1-4a84-8436-16f2151e01d7.jpg 


 

Here is another interesting graph.  It basically shows that while the the deficit has been decreased and debt has somewhat stabilized, federal receipts have grown and the trend line is up.  That is the wrong direction!  The BBA has minimal effect on the growth in federal receipts.

http://research.stlouisfed.org/fred2/graph/?id=FYFSD,FYGFD,FYFR, 


 

The results of support of a minimal effort have resulted in an outcome that has lead to stagnation of our economy and loss of wealth to those in the lower and middle income brackets.  Here is a graph that shows the decline in purchasing power.  http://research.stlouisfed.org/fred2/graph/?s[1][id]=CUUR0000SA0R 

So, the BBA the BCA and all that behavior, your’s included, hasn’t really helped.  I don’t like being negative and appearing nasty, but the facts are the job is not getting done and timid responses as reflected in small numbers isn’t getting the job done!  


 

We now have the FED with a huge balance sheet because it must finance the treasury’s-congress’s spending.  This has lead to low growth, mediocre employment gains and opportunity, and national stability risk.  The FED is just reacting to what the congress is doing.  


 

I’m sure you worked hard on the BBA and the BCA and work hard every day.  I saw a cartoon with Representative Ryan plugging a small leak in a dam while a large leak loomed nearby.  The cartoon represented the situation well.  http://washingtonexaminer.com/editorial-cartoon-little-dutch-boy-and-the-budget-compromise/article/2540863 


 

Even if the Republican party makes gains in the next election cycle, I have doubts that there will be any effect on government growth trends and the lack of GDP growth.  What is the difference between a party that calls a user/baggage tax a fee and party that calls a tax a health care mandate?  


 

I wish you well in the future and thank you for your service to our nation and thank you for listening.  


 

Sincerely,

 

 

Fri, 01/03/2014 - 01:51 | 4295735 Decimus Lunius ...
Decimus Lunius Luvenalis's picture

And all that wealth and debt is denominated in fiat currency.  The fucksticks won't charge a single wall street executive for fraud, but will go after anybody pushing for an alternative currency.  I'm not a violent person by nature, and I don't advocate violence, but I am a student of history, and I'm beginning to see the benefit of the guillotine.  Most of these fucks simply are following the path to what they thought was success.  They went to the right schools, got the right degrees, talked the right talk, schmoozed the right schmooze, kissed the right ass, became experts in talking about how busy they are and how important their work is while doing very little actual work, and then use the state's monopoly of violence to ensure their just artificial reward.  Sure, chaos probably blows especially when the pentagon armed a bunch of underpaid undereducated meathead police forces across the country, but to be on the Capitol lawn to watch that blade fall, the head fall into the basket, and to know that the head was still alive for about 10-15 seconds after that might be worth the ensuing over military police state.

Fri, 01/03/2014 - 07:11 | 4295952 ACasey
ACasey's picture

Okay, that's a start, but here is something to keep in mind: From emotion comes reaction; From discipline comes resolve. 

Lets do first aid. Rule 1, stop the bleeding.  Feeding into a financial system that produces everything you mentioned is the bleeding.  You are right on the money about the chaos, and triage for the CitizenPatients of this train wreck called the US financial system is stop feeding into a system that produces this kind of madness.

Its going to be painful, like any injury, meaning sacrifice and change.  Changing our habits and looking at how we acquire the things we need is paramount to survival.  We need to look outside this financial system and look for ways that do not injure ourselves anymore.  We have to accept that a financial system built on fiat debt printed at interest is the road to ruin and look for alternative means to trade for our needs.  Big challenge boss, big challenge.  We can do it and we CitizenPatients will make it through stronger and wiser. 

We have to chuck emotion or we are gonners.  Discipline and resolve, that's the ticket.

Fri, 01/03/2014 - 01:49 | 4295738 I Write Code
I Write Code's picture

Y'know, I think that from Bernanke's perspective QE is very democratic.  A trillion that trickles down from the banksters.  A trillion that trickles up from supporting fed bond sales and food stamps et al.  A trillion that supports the stock market and all those 401ks.

The problem is that the trillion trickling down is spread among 0.01%, the trillion in the middle is spread among about 90%, and the trillion on the bottom goes to the rest.  Or some kind of numbers like that.  So it's still a transfer from the middle out, once you net net this thang.  And if you asked Ben about it, I guess he'd just shrug.  You might say something about how more taxes are paid by the 0.01% especially per capita, but the Fed is not concerned with taxes.  I think that may have escaped Bernanke's model makers, or perhaps they still think they just did the best they could.

Fri, 01/03/2014 - 06:57 | 4295944 ACasey
ACasey's picture

I have to call you on this one.  The only thing trickling down is debt printed at interest creating more debt that is throttling those that build America.  In 2012, business took me from North Carolina to California and the situation is the same; unemployment, bankruptcies, and business closures.  None of the debt issued by the Federal Reserve is making it to the street but is given, at interest, to the largest banks.

Stock market prices today are not founded on profits.  Look at the financial statements.  Business is not making capital purchases or hiring.  The Federal Reserve purchases 70% of all stock purchases driving the price to ludicrous levels and at the same time, the biggest banks have massive short positions awaiting the collapse.  The gullible that chase today's stock prices instead of looking at a companies balance sheet and income statement think they are making money but the offsetting devaluation in their currency changes those imagined gains to greater and real losses. 

As for taxes, you better believe the Federal Reserve is interested in taxes.  Taxes siphon available funds away from capital purchases business needs to make and diverts it back to Treasury in order to pay interest on the debt printed at interest. 

You are right about one thing; those controlling finance in the US are doing the best they can; for themselves.

Fri, 01/03/2014 - 01:57 | 4295746 CamoZ
CamoZ's picture

The top 1% never fail to amaze me with the level of brutal ruthlessness with which they take from the bottom 99%.

Fri, 01/03/2014 - 02:04 | 4295761 darteaus
darteaus's picture

AND, it never ceases to amaze me how stupidly eager many of the 99% are to sell the souls of their children for trinkets.

Fri, 01/03/2014 - 02:12 | 4295771 Walt D.
Walt D.'s picture

Very misleading article -  does not know the difference between wealth and income. The net worth of the poor is zero, or negative if they have credit cards or student loans. If your net worth is zero you can not transfer wealth to anyone. What can be transferred to the rich is a percentage of your income. When the poor buy iPhones, they transfer any money they have  to Apple and AT&T.

The rich have definitely got richer as the result of QE, TARP, Wall Street bailouts. However, very little actual money was collected from the poor to do this. The Fed simply created the money out of thin air. In fact money was transferred to the poor - food stamps, unemployment benefits, income tax refunds to people who paid no income tax again with money created out of thin air.

People with stock portfolios got rich by riding the stock market bubble that was created by Fed policy - no money was taken away from anyone to do this (particularly if the Fed is pumping the stock market).

The poor, who voted twice for "Hope and Change" got what they should have expected - nothing. 

Fri, 01/03/2014 - 02:22 | 4295783 dunce
dunce's picture

The poor have no wealth to transfer, it is the productive middle class that produces most of the wealth that is taxed away from them. the rich do not take money from others, the government does. The rich earn their money if they are in the private sector, many people aquire substancial wealth in the public sector,but every dollar is taken from the real producers in the private sector by the force of law thruogh taxes.

Fri, 01/03/2014 - 03:01 | 4295830 litemine
litemine's picture

It seems that the Interest on Investment has a different tax Rate. When the very rich invest, more of the profits are kept. The poor can not get ahead of day to day bills to aquire money to Invest. The requirement of gaining a profit which  caused the risks from Wall street to increase. These failed and again the Poor, had to pay their share while the rich pay accountants to manipulate every tax advantage. Thats what I see.  

Fri, 01/03/2014 - 06:36 | 4295933 ACasey
ACasey's picture

I am an accountant and I know exactly what you are talking about.  Double entry bookkeeping comes to mind.  The greatest advantage those that control financial institutions have is the creation of debt.  Double entry would indicate there is an asset offsetting the debt, however, this is not so.  There is no asset only the debt.  The debt is created out of thin air.  The poor get the honor of paying the debt while the controllers of financial institutions game the proceeds of the debt and keep all the profits. 

It is no different than an identity thief shopping with someone elses credit card; your eyes open wide when you get the bill for the vacations and purchases someone purchased on your credit.  Adding insult to injury, when you can not pay the bill created from that stolen credit card, the same identity thieves come and foreclose on whatever assets you have remaining. 

Fri, 01/03/2014 - 09:09 | 4296113 tip e. canoe
tip e. canoe's picture

excellent summation of THE BIG LIE that underpins the entire global farce.

to quibble over the minutae is simply playing willing victim to a misdirection play.

Fri, 01/03/2014 - 13:11 | 4296823 Drifter
Drifter's picture

"The greatest advantage those that control financial institutions have is the creation of debt. "

Nope, the advantage is creating money from nothing.  Or what they call money. 

A pawn shop can make a loan (create a debt) but they can't create money.   Only banks can do that.

I can loan money to someone (create a debt) but I can't create money.   Only banks can do that.

Creating money from nothing is the first fraud, and it's the fraud the founders tried to prevent by specifying only gold and silver as money (not "demand deposit" balances on some ledger sheet).

The second fraud is booking a promissory note as an asset.   A promissory note really isn't an asset.  It's just a promise to pay an asset.  A promise is not ownership.  It's just hope of ownership, and hope isn't an asset.

But our crazy accounting laws allow promises to be booked as assets, so bankers can do their money creation game and keep the books in balance.

Fri, 01/03/2014 - 03:16 | 4295841 satoshi101
satoshi101's picture

Silly post, the middle class was just a blip in USA history,

Forever the USA was a nation of aristocracy, and that the POOR,

The agriculture, industrial, and information age are now over, ...

At best america might revert to agriculture had they not destroyed their water,

***

You have a choice you can be RICH or POOR, if you want to be rich then study rich people, JP Getty wrote a book in the 1960's "how to be RICH", read it, PT BARNUM in 1915 wrote a book "MONEY", read it,

If you want to be poor then follow the advice of 99% of the ZH flock.

***

80/20 rule my ass, its always been 97/3,

97% in all civilization are poor, and 3% have the loot, want to be part of the 3%? Then read "Richest man in Babylon".

Fri, 01/03/2014 - 06:29 | 4295928 ACasey
ACasey's picture

History shows that inequality at this level never lasts.  Just like water finding its own level, top-heavy misallocations inevitablly lead to collapse.  History shows we are repeating the same mistakes of collapsed civilizations before us but history also provides examples of failures that can be avoided.  This inequality resembles an inverted pyramid that inevitablly collapses onto its base.  Your point is good, but lets go for better and then best solutions.  History hands us all good, better, and best options on a plate.  Its a choice.

Fri, 01/03/2014 - 09:10 | 4296123 tip e. canoe
tip e. canoe's picture

+1 for the Richest Man in Babylon reference though not necessarily for the reasons you suggested it.

The famous works of ancient Babylon, its walls, temples hanging gardens and great canals, were built by slave labor, mainly prisoners of war, which explains the inhuman treatment they received. This force of workmen also included many citizens of Babylon and its provinces who had been sold into slavery because of crimes or financial troubles. It was a common custom for men to put themselves, their wives or their children up as a bond to guarantee payment of loans, legal judgments or other obligations. In case of default, those so bonded were sold into slavery. — George S. Clason

Sat, 01/04/2014 - 02:18 | 4299153 Kelley
Kelley's picture

Should we put you down as one vote FOR slavery?

Sat, 01/04/2014 - 09:34 | 4299490 negative rates
negative rates's picture

Woody Allen said if you can aviod the aging process I suggest you do it, you have the choice you say,  why is it then you can barely live to be 100 years old in your world? And the last 70 of that was pure suffering in silence and hypocrisy. No, you don't have that choice, you have an unsustainable argument which I call bull shit on right now.

Fri, 01/03/2014 - 05:55 | 4295916 The Heart
The Heart's picture

Heavy chemtrailing over the mid-west today indicates bad weather and sickness is going to hit the eastern coastal areas in the next few days. They both happen after the chemtrailing every time. Stay tuned for more cold weather distractions from the slime bag media.

THE REAL ISSUE IS THE FAST MELTING DOWN OF FUKUSHIMA REACTOR NUMBER THREE. THERE COULD BE MORE HAPPENING IN OTHER PLACES ALSO. THE BANKSTERS HAVE ORDERED THE MINIONS TO DISTRACT EVERYONE FROM THIS REAL ELE ISSUE AT ALL COSTS. THE WEST COAST IS BEING SLAMMED NOW AND PEOPLE ARE WAKING UP TO HIS HORROR AT THIER DOORSTEPS.

What you must realize is, WHEN this thing falls over, or there is another explosion in the ongoing china syndrome that is happening now in japan, it will be all over for you all. You will all be hit hard from this evil stuff in the jet stream. It will decimate the entire continental west coast, and then everyone is going to PANIC!!! THEY CAN NOT DO ANYTHING TO STOP THIS AND DO NOT WANT PEOPLE TO KNOW THIS. NOW YOU KNOW IT. WHAT ARE YOU GOING TO ACTUALLY DO ABOUT IT NOW? THE TIME TO PREPARE IS SHORT.

After a major earthquake in japan, or something happens like an explosion in the now steaming three reactors, and fissioning starts to go out of control as it is NOW, it will irradiate the entire west coast of Amrica until there is NO LIFE at all left. Some civilization will see this evil for what it is a million years from now. The stupid of the world will not.

There are lots of things you can do to protect yourself like in this valuable information below, but your best bet is to get the hell out of there NOW before the panic. Every bit of food, and especially the dairy products are becoming more and more contaminated every day. DO NOT EAT CALIFORNIAN foods at all.

YOU MUST READ THESE ARTICLES RIGHT NOW AND PASS THEM ON!!!

Here is the actual govt order for potassium iodide below. It is not enough for the entire west coast population. They plan to give it all to the criminals back east, and in the underground hideouts they have spent your tax dollars building for the last fifty years so you can die, and they might live.

Potassum Iodide

Solicitation Number: 14-284-SOL-0015A

Agency: Department of Health and Human Services

https://www.fbo.gov/index?s=opportunity&mode=form&id=5cd0c1800435272c80a...

Nuke Fears: US Government Orders 14 Million Doses of Potassium Iodide:

http://rinf.com/alt-news/breaking-news/nuke-fears-us-government-orders-1...

Is The Government Stockpiling Iodine In Preparation for Fukushima Meltdown?:

http://www.storyleak.com/government-stockpiling-iodine-fukushima-meltdow...

VIP!!! - Plumes of mysterious steam rise from crippled nuclear reactor at Fukushima:

http://rinf.com/alt-news/breaking-news/plumes-of-mysterious-steam-rise-f...

Fukushima Meltdown?

http://americanfreepress.net/?p=14448

BBC Interview: “News about Fukushima… keeps getting worse” — Japan Professor: “Rash of disease” in Fukushima children, rate of cancer in thyroid up to “dozens of times higher than usual” — Expert: Forcible radiation exposure by gov’t (AUDIO):

http://enenews.com/japan-professor-rash-of-disease-in-fukushima-children...

Gundersen: Very visible steam at Fukushima Unit 3 is from constant radioactive releases — Coming from hot rubble, not related to new explosion:

http://enenews.com/gundersen-very-visible-steam-releases-at-fukushima-un...

VIP!!! - The Petkau effect(extended low dose radiation dangerous to cellular membranes):

http://www.nuc.berkeley.edu/node/2947

Understand radiation and HOW TO PROTECT YOURSELF!

http://www.davistownmuseum.org/cbm/Rad3.html#prot%20actions

http://www.washingtonsblog.com/2013/10/how-to-protect-yourself-from-fuku...

http://whatisradiation.com/radiation-protection

More and more people are learning every day about how bad this really is and getting the heck out of there. Millions know what is really happening. The panic will be hellascious!

DO NOT THINK YOUR CORRUPTED CRIMINAL GOVT(SUPPORT THE TROOPS) IS GOING TO HELP YOU. THEY WANT YOU ALL DEAD TOO. THE WHOLE ECONOMY IS SET TO CRASH MAYBE AFTER, OR BEFORE MARCH. WHO KNOWS WHAT THE BANKSTERS PLAN? THAT IS ABOUT HOW LONG YOU HAVE TO PREPARE FOR THIS, OR TO ESCAPE AND TRY TO SURVIVE. SPEAKING FROM PURE EXPERIENCE, NO MATTER WHAT YOU SAY NOW, THE FLIGHT OR FIGHT INSTINCT IN MAN IS POWERFUL AND EVERYONE WILL REACT IN A PANIC. IT WILL NOT ALL BE NICE. PEOPLE GET CRAZY WHEN THEY ARE HUNGRY AND PRAYERS WILL NOT SAVE ANYONE FROM THEIR OWN IGNORANCE.

It is another warm chemtrail day. They will be hit hard with weather back east in a few days. Watch the SATAN news for this new distraction. The sheep are so stupid. It makes it easier to kill them all off and control them that way.

Here is some advice for reducing the impact of radiation.

Subject: Baking Soda and Sea Salt Remedy For Radiation Poisoning

If you have been exposed to any form of radiation, either for medical diagnostic purposes (fluoroscopy / mammography / other medical x-ray exams) or in the course of radiotherapy treatment, or if you are otherwise concerned by excessive radiation exposure, overload or poisoning (such as living near a nuclear reactor facility, working with diagnostic radiological equipment / in the nuclear processing industries / uranium mining / uranium or plutonium processing), or if you have been exposed to radioactive particles or higher ionizing radiation doses stemming from other sources such as depleted uranium (DU), testing of atomic weapons, frequent flights in higher altitudes, a nuclear disaster (radiation fallout from the Japan nuclear power plants) etc., here are a number of tips and suggested remedies how to naturally help your body excrete damaging radioactive elements (e.g. strontium and radioactive iodine) or detoxify their noxious byproducts such as free radicals as well as deal with radiation burns.

If you are having any kind of radiation treatments, macrobiotic is the cure. Macrobiotics is very effective in curing radiation sickness and cancer.

If you are diagnosed with cancer and you want to survive the cancer avoid any and all exposure to radiation treatment. Radiation treatment of any kind is what actually kills people diagnosed with cancer.

Exposure to radiation causes a cascade of free radicals that wreak havoc on the body. Free radicals damages DNA, protein, and fats. Free radical damage has been clinically proven to be a major contributor to cancer. That being said, people don’t die of cancer, they die of radiation poisoning. The repeated exposure to radiation through so-called treatment overwhelms the body’s immune system. Cancer doesn’t cause hair loss for cancer patients, the radiation treatment is solely responsible for that. Cancer doesn’t cause weight loss, the radiation treatment causes that because it suppresses your appetite. Cancer doesn’t cause a cancer patient to become very weak and sick, the radiation treatment poisons the body and makes them very weak and sick.

According to Michio and Aveline Kushi, in his book Macrobiotic Diet, Michio Kushi states: ‘At the time of the atomic bombing of Nagasaki in 1945, Tatsuichiro Akizuki, M.D., was director of the Department of Internal Medicine at St. Francis Hospital in Nagasaki. Most patients in the hospital, located one mile from the center of the blast, survived the initial effects of the bomb, but soon after came down with symptoms of radiation sickness from the radioactivity that had been released.

Dr. Akizuki fed his staff and patients a strict macrobiotic diet of brown rice, miso* and tamari soy sauce soup, wakame and other sea vegetables, Hokkaido pumpkin, and sea salt and prohibited the consumption of sugar and sweets. As a result, he saved everyone in his hospital, while many other survivors in the city perished from radiation sickness."

In case you missed it the secret to surviving all forms of radiation exposure is sea salt. If you are concerned about the radiation fallout from the Japan nuclear plants disaster or if you had an X-ray (from hospitals and airport screening) or radiation treatments for cancer, soak your body in sea salt (not iodized table salt) baths to help pull out the radiation from your body.

If you were diagnosed with mouth or throat cancer and you were subjected to deadly radiation treatments gargling with baking soda mixed in water will help neutralize the radiation.

Baking soda is so powerful in curing radiation contamination that at Los Alamos National Laboratory in New Mexico, researcher Don York has used baking soda to clean soil contaminated with uranium.

Sodium bicarbonate binds with uranium, separating it from the dirt; so far, York has removed as much as 92 percent of the uranium from contaminated soil samples. Still not convinced? Would it help to know that the United States Army recommends the use of baking soda to protect the kidneys from radiation damage.

Radiation is very toxic. Exposure to radiation of any amount is harmful to your body. Exposure to radiation through x-rays (hospitals and airport screening) or any of the so-called cancer treatments are the most dangerous source of radiation poisoning. X-rays and radiation cancer treatments are far deadlier than radiation fallout because the exposure is concentrated and frequent.

To pull the radiation poison out of the body, try bathing in half a cup of sea salt and half a cup of baking soda. Soak for at least 20-30 minutes, every day for three weeks or every other day for six weeks. . . or go on a vacation to the West Indies or South Pacific and swim in the ocean every day for three weeks! Why the Indies or South Pacific? Because of the higher concentration of sea salt.

Where is the best place on Earth to go for curing yourself of radiation? The Dead Sea. The Dead Sea salt content is four times that of most world’s oceans. Sea salt draws the radiation out of the body.

Can’t afford to travel to the Dead Sea and cure yourself of the radiation poison from nuclear plant fallout, x-rays and radiation cancer treatment? A tiny pinch of good quality sea salt in several glasses of distilled water each day will provide one with all the minerals and trace elements you need to rid your body of the radiation and stay healthy.

Can’t stomach sea salt? The amino acid, cysteine also protects against the damaging effects of radiation by terminating the free radicals produced by ionizing radiation. Cysteine, together with methionine, cystine, and their derivatives, is numbered among the “sulphurated amino acids” due to the fact that these amino acids contain sulfur in addition to carbon, hydrogen, nitrogen and oxygen.

The end?

Fri, 01/03/2014 - 09:18 | 4296132 tip e. canoe
tip e. canoe's picture

funny how the most simplest of ingredients & methods can help solve the most complex of problems, isn't it?

Sat, 01/04/2014 - 01:39 | 4299066 emersonreturn
emersonreturn's picture

sea salt, good quality sea salt---i guess that means non pacific sea salt?  or japanese seaweed or seavegtables or japanese sea salt all pre-2011?  i wish you well, heart, and above all serenity.   you sound a tad frazzled, and really all we can do is do what we can and continue to care about one another.  fukus has if nothing else put everything in perspective.  thank you for your tips.  also check out curcumin on pubmed.  i think you might find it somewhat helpful. 

Fri, 01/03/2014 - 06:18 | 4295922 ACasey
ACasey's picture

This is fantanstic detail for the reader.  The US produced such tremendous abundance by the hard work of people there is no reason for the shortages.  The inequality comes from very few subjecting others to their will. 

Those that subject others to their will have two [2] characteristics; they are unhappy with their bodies and they are unhappy with their minds.  These are characteristics of mental illness.  The few that subject others to their will are mentally ill.  They are sick.  I am not a doctor but I do realize the mentally ill can no longer be followed while spiriting the abundant wealth created by others to themselves.  Allowing the taking from others and giving to themselves needs to change.

Individuals can stop feeding into systems that promote this kind of inequality.  Its difficult, but reviewing and modifying individual trading behavior can change the flow of resources away from the minority that dominate a financial system serving so very few.  By looking what individuals can do together and without these corrupt financial institutions we can begin to realize a fair share of the wealth. We can not change a corrupt financial system; its too powerful, but we can change our habits and stop feeding into it.

Good follow up is Greg Hunter's USA Watchdog, Catherine Austin Fitts Solari Report, Stacy & Max Keiser on the Keiser Report, and of course stay with ZeroHedge. Good job with the homework on the article.

Fri, 01/03/2014 - 06:47 | 4295937 ebworthen
ebworthen's picture

Welcome to Potterville.

Fri, 01/03/2014 - 07:10 | 4295954 Know shit
Know shit's picture

Knowing what is wrong is one thing.
Realizing only blunt force will change the game is what makes me sad.

Fri, 01/03/2014 - 07:49 | 4295961 Czar of Defenes...
Czar of Defenestration's picture

HOW TO AVOID POVERTY IN AMERICA*

1. Complete at least a high school education.

2. Work full-time.

3. Wait until at least age 21 and get married before having a baby.

 

* Brookings Institute data. Based on an ananlysis of census data, people who followed all 3 of these rules had only a 2% chance of being in poverty.

 

SO: ENOUGH of this "eloqiuent Marxist CHART PORN" rationalizing** the redistribution of wealth!

** in typical Leftist fashion, merely PROJECTION of their own behavior and intentions onto others.

Sat, 01/04/2014 - 07:54 | 4299378 TPTB_r_TBTF
TPTB_r_TBTF's picture

 

 

  1. get indoctrinated at least up to high-school level
  2. be a wage slave
  3. get somebody's approval before fucking
Sat, 01/04/2014 - 11:35 | 4299662 RaceToTheBottom
RaceToTheBottom's picture

Be real.  Nonsense like this solves nothing

Fri, 01/03/2014 - 07:49 | 4295983 Heroic Couplet
Heroic Couplet's picture

If 49 states don't have Wall Street, New York State doesn't need it either. There might have been a time for investors when the colonies were developing. Those days ended about 200 years ago.Where are developing colonies today on Planet Earth? there are very few and there is very little need for Wall Street scum.

 

Fri, 01/03/2014 - 08:21 | 4296023 ACasey
ACasey's picture

Good one.  North Dakota broke rank on the Federal Reserve ponzi scheme and is the only state with real life solvency.  As for Wall Street, it looks like a big funnel to drain the peoples resources into someone elses tank.  Whistleblower Andrew McGuire reveals solid evidentiary facts Wall Street operates outside any constraints where fraud rules the day.

Fri, 01/03/2014 - 13:45 | 4296900 Drifter
Drifter's picture

Wall Street's looting of America via TARP and QE wouldn't be possible without the Fed, so the Fed is the core problem.

Fed is also the enabler of defict spending by the govt (spending way more than they collect in taxes), and massive welfare, and wars of aggression, and all the other evils this govt does.

Creating money out of nothing is the real core problem.  If banks couldn't do that, they couldn't loot wealth from the people.

Say what you want against a gold and silver money system, but it's the only thing that would stop banks from creating money out of nothing.

Fri, 01/03/2014 - 23:10 | 4298697 therevolutionwas
therevolutionwas's picture

The Fed could be done away with and still the Treasury could take over printing fiat money, with the phoney baloney nonsense that it is saving millions by avoiding interest payments.  You are right though, gold and silver in the hands of individuals is the way to sound currency and markets.

Fri, 01/03/2014 - 08:18 | 4296021 ACasey
ACasey's picture

If the data and reading above is overwhelming, it should be because it is.  Its hard to accept just how bad off things have gotten economically.  Excellent latest-greatest supplemental reading that really stiches things above together is;

"Gold Wars" by Kelly Mitchell 

Read this article a couple times and if you read the book, you are going to be ticked.

Fri, 01/03/2014 - 13:36 | 4296942 Walt D.
Walt D.'s picture

What is also happening is that more poor are being created - the people who should be coming into the workforce who can not find a job. Also there is a much larger migration from the middle class to the poor as people become unemployed and either stay unemployed or go back to working part time or for much lower wages.

Fri, 01/03/2014 - 17:09 | 4297787 Know shit
Know shit's picture

i'm looking at places where things allready went for the bad, not yet worst though...
Greece, Spain, Ireland, Cyprus etc.
They could provide lessons to be learned...

And although kept away from the big public, lessons can allready be learned. Villages turning into small barter places ignoring government ( taxes) completely.
I'm wondering what it will take before real revolution on a big scale will happen ? When will people overtrown covernment, banks etc ?

But most of all what will come after that....?

Will we be able to do it better?
Are we capable of doing it better?
Are humans ready and able to function in bigger systems than a small village without getting currupt, chasing money and power without seeing, realizing what consequences that behaviour has for others......

Most of us are so conditioned to chase material issues instead of spiritual issues.
And nowaday not even capable to take care of themselves.
Lack of wisdom is replaced by hunting power, and when gained almost always abused.

We have a long road to go......

Sat, 01/04/2014 - 01:10 | 4298995 jack stephan
jack stephan's picture

There is no spoon

Sat, 01/04/2014 - 01:24 | 4299028 Atomizer
Atomizer's picture

New wealth is only defined as how much debt you can accumulate and resell into small drug induced packages.

Think Breaking Bad meth dealers. / lol

 

Sat, 01/04/2014 - 01:54 | 4299095 FightingtheFed
FightingtheFed's picture

Great article and comments..

We know that the major Media does the bidding of Corporate America and most know who controls the Media in the US; hence they will never report on this income inequality until the 9th inning and the robbery is over.. Then they will only push for highter taxes on the wealthy..

I'm for the wealthy and not for higher taxes either but this damn crony Capitalism is for the shitter!

Someone should pay and pay dearly for what is being perpetrated upon the middle class.

my 2 cents. ha!

Sat, 01/04/2014 - 01:59 | 4299108 reader2010
reader2010's picture

"All official and liberal science defends wage-slavery, whereas Marxism has declared relentless war on that slavery." - Lenin

Sat, 01/04/2014 - 08:46 | 4299425 GetZeeGold
GetZeeGold's picture

 

 

“But if you go carrying pictures of Chairman Mao, You ain’t going to make it with anyone anyhow.” – John Lennon

Sat, 01/04/2014 - 06:59 | 4299309 falak pema
falak pema's picture

REAGANOMICS AND THATCHERISM explained in charts over the time line of this wealth transfer.

THe CATHOLIC KINGS of NEOLIBERALISM hatched this scheme in their thatchery of 1981/1982, subsequent to the crisis of 1979 (When Petrodollar debt which was being recycled to the Latinos of Brazil and Mexico went belly up and when the Great Society and Nam expenditures  in the US, as the Labour welfare/union follies  of UK, led to the inflation in first world. Oxam's razor was Volcker's High Interest deflationary play which set the stage for subsequent Welfare State demise in first world).

Reaganomics threw the BABY of middle class wealth out with the bath water as we went DEEP into "supply side" FIRE economy-- Oh the quarterly report syndrome and the ASSET stripping mayhem-- which became the NWO "slave labour arbitrage outsourcing rampage" of Neoliberalism after fall of BErlin wall. (We tower like a colossus-- hubris of Wolfowitz and Operation Desert Storm to take out Sunni point man Saddam; doing GOd's and DC's work in Iran, then turned renegade; which prepared the subsequent criminal plays of ME Pax Americana to this day).

Our Kings of DC had built their own grandiose castle, à la Mad Ludwig II's Neuschwanstein,  for subsequent fiat and debt hubris demise. 

THe age of the American Wittelsbach dynasty ( Bush and Neocon Consorts) is here !

Play on Richard Wagners of FED we want to hear your next Der Ring des Neibelung Opera of fiat concocted  destruction; epic Gotterdammerung.

Consequence or Karma is a bitch as Wagner would say!  To the ancient Greeks : Nemesis...

ZH is good at pointing at the facts but does not follow through to explain CAUSE and EFFECT and the prevalent mindset of  TPTB who protect this whole resuscitation of Charles V Universal Empire as the legacy of the Catholic Kings of this Counter-reformist neoconservative age.

History does rhyme doesn't it?

Sat, 01/04/2014 - 09:29 | 4299486 22winmag
22winmag's picture

The late 70s and early 80s were dangerous times full or intrigue for sure. I liked Killer Elite because was set in 1980.

 

http://www.imdb.com/title/tt1448755/

Sat, 01/04/2014 - 10:18 | 4299545 falak pema
falak pema's picture

the killer elite today uses financial WMD...if you had noticed that James Bond of yester year is now Jamie Dimon.

Sat, 01/04/2014 - 10:23 | 4299551 centerline
centerline's picture

"the pen is mightier than the sword"

Seems that history is a cycle of pens followed by swords, then more pens and more swords, etc.  I suppose that the pen part of this cycle is almost over.

Sat, 01/04/2014 - 10:40 | 4299571 falak pema
falak pema's picture

Yep. If you want to be binary its always been a match between "power play" and "knowledge play".

Alexander vs his mentor, Aristotle who told him: even if you conquer the world by the sword your syncretism will fall!

Caesar vs Cicero : Republic gutted and Despotism proclaimed.

Abelard vs Saint Bernard : Or the Saint Augustine soldier-monk metaphysics vs Plato/Aristotelian secular metaphysics.

Innocent III vs Philip Augustus of France : THe first won the wars by tolerating rape of Constantinople and Cathar revolt but the latter created the Ersatz Nation State of France.  (In this instance the power play was from Pope and the knowledge play was from King who created a SECULAR university in PAris to teach Abelardian dialectics NOT dogmatic credo).

Popes vs Charles V and Francis I and Henry VIII : Birth of reform and humanism and Renaissance philosophy.

The Enlightenment vs Absolute Kings : End of Divine Rights and rebirth of Republic on two Continents.

Age of Colonial Rule : Industrial age, social conflict and Human Rights via Socialist Manifestos fed on 19 th century philosophers.

Pax American age ( FDR) : Demise of Colonial cum Fascist Europe and birth of global Democracy meme.

Pax Americana Dystopia : Money vs democracy in current neo feudalism gone global. 

Not very optimistic about the next few decades. We will hit turbulence bigtime! 

Just a sample; we all have our pet subjects! 

Sat, 01/04/2014 - 09:40 | 4299496 negative rates
negative rates's picture

Can't say that was much of a rhyme, I see your pain though and raise you a debt.

Sat, 01/04/2014 - 10:12 | 4299538 falak pema
falak pema's picture

Stick to negative rates and comments; its your trademark.

Substance is of the constructive mind.

Sat, 01/04/2014 - 08:38 | 4299417 Mongoose
Mongoose's picture

Tylers, Tylers, Tylers... Did you not read Charles Hugh-Smith's writings that you posted earlier?

It's not all about the money! http://www.zerohedge.com/news/2014-01-03/guest-post-new-way-defining-wealth   Go back and read my comment there.

Hmm, not sure sarc really explains it well enough so I'll use this (C.M.S.S-I.W.J.F.J.)

Back to killin' snakes

Sat, 01/04/2014 - 09:05 | 4299447 Gromit
Gromit's picture

Articles like this ignore the ability to demand transfer payments from the government.

Such as pensions, healthcare.

A person aged 60 who cannot afford to pay for medical bills essentially has a government credit card to access health services - to be financed by taxation on the increasingly few who have taxable income.

It is easier to tax than face down angry voters and I expect that this is what the government will do.

Eventually creates an Inner Party with police and taxing power.

 

Sat, 01/04/2014 - 10:02 | 4299526 centerline
centerline's picture

"Eventually" as in hindsight I hope, because it is already here and has been from quite some time.  Some of the pieces were put into place right at the get-go (cough... IRS.... cough).

Sat, 01/04/2014 - 09:23 | 4299476 ak_khanna
ak_khanna's picture

Federal Reserve of the Banks, by the Banks and for the Banks. 

The rest of the country and its citizens be damned. The main aim of the political class and the central bankers worldwide is to create one bubble after another for the zombie bankers to feed on. The majority of the population who actually work hard to earn their living by engaging in productive work have to pay the price by either loosing a majority of their earnings in the form of taxes, interest on loans or paying the bill for the bailouts. 

 www.marketoracle.co.uk/Article40231.html

Sat, 01/04/2014 - 09:30 | 4299477 ak_khanna
ak_khanna's picture

The true extent of slowdown in the world economy can be judged by the data points which are not subjected to adjustments by the government. Eg. Change in Electricity and Fuel consumption, Ratio of working population to the total population of a country, Miles driven, Baltic Dry Index, Change in commercial Rental Rates etc

www.marketoracle.co.uk/Article40231.html

Sat, 01/04/2014 - 10:11 | 4299535 centerline
centerline's picture

Don't forget about birth rates (and later on death rates).  The ponzi scheme that is modern finance at it's bottom requires growth and growth in it's most simplest terms means people.  People of course need resources (water and food primarily).  Resources require energy inputs, etc. and so on.

Solid post ak.  I agree.  Watch the metrics of real growth.  Economies will follow accordingly.  Doesn't matter if countries blow up thier currencies along the way (hyperinflation).  The primary trend is deflation.

 

Sat, 01/04/2014 - 10:21 | 4299553 MarcusAurelius
MarcusAurelius's picture

Over the past thirty year you could have chased assets like everyone else as the baby boomers spent money or you couldl have saved and done nothing. I have friends who have done both. The ones that came out on top were the ones who did nothing. Simply invested conservatively in the bank, had no children and incurred no debt. However this is not a reality for most families and working class people. 

   The problem with chasing assets to find wealth is that it eludes most while a scant few make it. Like the housing bubble, the tech bubble and just about any other bubble i can think of including gold. AlthoughI see gold rising higher time will be the judge of that and so far mom and pop have been left holding the bad once again. 

    I am of the boomer generation and we are simply too large and have too many entitlements that others must pay for. Simply yet another transfer or wealth or ponzi. Taxing the piss out of the rich won't change this one bit. What will change it is a complete over haul of the present status quote. Eliminate all these assinine programs and make people more accountable for caring for each other. There is no reason why opportunity shouldn't be there for future generations simply because of an over abundance of credit. 

    It comes down to how efficiently you use your resources as a nation that determines your wealth. Previous generations were hard workers. They were savers and they built the country from the ground up. Then cam the entitlement generation where living off someone esles struggles became the thing to do. Uping the ante until there was no more ante left. 

     This is going to require a complete mentality shift and it won't likely happen until it is forced down most people's throats. The security that most people see in money was never there to begin with. It came as a result of helping others or making great change. It can be this way again if people regain some pride and ownership in their own actions. 

Sat, 01/04/2014 - 10:28 | 4299559 Woodrox
Woodrox's picture

OT... looking for an article past 2 to 3 weeks spent 1 hour looking cannot find...

about investor asset allocation and stock market direction...best correalation according to article goes back 50 -80 years. talks about the fundamentals of bond and equity supply, ipo and buybacks and investor asset allocation ? thought it was doug short? but could not locate

Sat, 01/04/2014 - 10:30 | 4299565 Woodrox
Woodrox's picture

found it after rethinking google lookup....

correation of investor asset allocation to stock market returns

www.philosophicaleconomics.com/wordpress.. some guy with the jese livermore handle

Sat, 01/04/2014 - 10:44 | 4299575 paint it red ca...
paint it red call it hell's picture

Newt's Contract on America has come to fruition.

He has to be proud of himself for his arraigning of the deck chairs, and well reward.

Sat, 01/04/2014 - 10:54 | 4299587 Benign
Benign's picture

Raise marginal tax rates on incremental income over $1 million to 75%, bring the f*ckers down to Earth and let them live like the rest of us. Nothing else will work.

Sat, 01/04/2014 - 16:13 | 4300140 SocialismIsCancer
SocialismIsCancer's picture

There is another approach: eliminate every entitlement recipient and applicant, then entitlement payments (80% of govt spending) go to zero, and all taxes can be reduced by corrresponding amount, every tax payer then gets to keep enough of their earnings to pay for their own expenses and save, AND no longer any need for individuals or govts to run budget deficits and rack up debt. Earn your own income, save for your own retirement, buy all your goods and services with only what you earn yourself or get removed. It is just natural law applied to humans, long, long, long overdue.

 

Sun, 01/05/2014 - 13:31 | 4301850 fedupwhiteguy
fedupwhiteguy's picture

come on.. that doesn't work. people that make that kind of money are sophisticated enough to hire experts that show the rich how to park their money to avoid excess taxes. what i think you should be hoping for is for government to remove all of the freakin barriers to starting your own business. 

Sat, 01/04/2014 - 11:05 | 4299616 muleskinner
Sat, 01/04/2014 - 11:27 | 4299652 RaceToTheBottom
RaceToTheBottom's picture

This is a very good article, it shows quite clearly that the FED only serves the rich and the middle and poor are meant to deal with trickle down nonsense.

I wish the numbers would have been inflation adjusted.  The indication of wages stagnating since the mid/late 90s would have changed to wages stagnating since the 70s-80s.  In fact entire careers wages have gone down after inflation...

Sat, 01/04/2014 - 11:43 | 4299669 rsnoble
rsnoble's picture

Trickle Down went far from Pissed ON to Sucked Dry, rolled over and ass fucked.

Millenials trying to figure out the path of the previous generations successful high points such as retirement and owning a home had better stop wasting time on those ideas it's over.  Not for all of them but a very large %.

Oh.......and now they need the guns too.

Sat, 01/04/2014 - 11:55 | 4299697 Money Squid
Money Squid's picture

It is only a redistribution if you lose wealth. If you gain wealth its because you are so smart.

Sat, 01/04/2014 - 12:07 | 4299716 muleskinner
muleskinner's picture

"An election is a pre-arranged auction of already stolen property"

Wasn't hard to steal Manhattan.

This robbing and thievery never stops and has been going on for decades and centuries now.  The real deal is to have land, precious metals, some protection, like a rifle, some ammo, err on the side of caution.  Never know when a rabid skunk invades your yard and the makes your world less than desired.  Getting rid of the skunk is the number one priority. 

When gold and silver took off during the eighties, the world was going to go to war until hell wouldn't have it.  Reagan bombed Libya, US Marines were slaughtered in Lebanon, Iran and Iraq were killing each other by the thousands.  All sorts of gloom and doom in the early eighties.  The return of the Crusades and other dog eat dog business.  The Soviet Union was in Afghanistan.  All of the Israelistanis were freaking out ad nauseum. Hopi Koynaanisqatsi 'life in turmoil', the end of the world as we know it has occurred.  That's when I began to accumulate silver and a little gold a little at a time.  Haven't stopped buying PM's since then.  It's the only way you can save.  

Here's how I got rid of 2 skunks.  I knew the skunk was hanging around and had made a home for himself under an old building.  His point of entry into his underground palace was easy to see.  So I figured, 'piss on him', so I just pee'd where the skunk entered and exited.  The skunk was gone and never came back.  Had the same problem in a different year, did the same thing and the skunk was gone overnight.  They're so low to the ground, they are hard to see even when close in distance.  Tough to get a good shot, might as well shoot the moon.

Today, I am going to drink a New Glarus Pale Ale.  

 

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