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Guest Post: Wealth Inequality In America, Understanding The Source

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Submitted by Arkady of The Right Condition

Wealth Inequality In America, Understanding The Source

With the OWS movement leaving many Americans confused as to whether they should support or stay away, one thing is for certain, Americans are aware of a certain truth that is happening in our country.  We have a certain combination of events that is leaving many people struggling and asking very good questions.

The truth is this; We have structurally high unemployment, salaries are stagnant, debt burdens are rising, costs for education, health and energy are on the rise and we are increasingly overwhelmed with clear and present danger coming from every corner of the earth.

To make matters worse the ruling elite of this country and the very wealthy are continuing to benefit while the remainder of the population struggles.  This is the appeal of the OWS movement despite the fact that the members making up the movement are advocating entirely unappealing solutions in the form of wealth distribution, punishing success and other hard left ideologies.

Of course in a country where American Idol and the Jersey Shore are better known than who currently runs the Federal Reserve it is hardly a wonder that cries for Socialism just sound appealing.  To further exacerbate the overall ignorance of the populace our education system and emphasis on history and economics appear to be tilted in the direction that highlight correlation and anecdotal evidence rather that fundamentals.  I understand it does not behoove me to openly ostracize a large segment of the population, but until we address core understanding of our economy and core principles of what makes our society tick then the partisan rifts will continue.

So let us tackle this "explanation" of inequality which is now being circulated on the internet and shared on Facebook with proud posters feeling rather enlightened about their "discovery".  Unfortunately the explanations are nothing more than illusory and are further fueling the partisan divide and the protests against the "haves" of the society.  The explanations either blame capitalism or Congressional policy favoring the rich.

Consider for example:  Plutocracy Reborn by Business Insider which attempts to convince the readers that it is our policy that is causing another Great Depression in America. Without digging deeper than the surface they present for most people what appears to be a very convincing argument as to why the current Congressional taxation policy has created our wealth gap.  

Another example: It's the inequality, stupid by Mother Jones showing a combination of pretty charts, graphs and bubbles that all attempt to convince the reader that the policies of America are entirely responsible for all the inequality in this country.

Too bad both sources are wrong.  They are showing the effect, without any explanation.

It is easy to scratch the surface, notice a correlation and run with it.  So stick with me for a little bit and I will show you the simple truth.  Yes, we have inequality, but this inequality is neither driven by the free market nor by tax policy.

I have taken the plutocracy picture and placed two graphs under it:

What you are looking at:

Top - Average income and the uncanny relationships between inequality and economic calamity.
Bottom left - Monetary base from 1918 to 1930 (amount of money controlled by the Federal Reserve)
Bottom right - Interest rates from 1954 to 2010.

I have also added green and red lines that clearly demonstrate the relationship between the amount of money in the system and income inequality.

Unfortunately we only have interest rate data going back to 1954, so the monetary base will have to suffice for the earlier years and while this comparison is not exact - the idea is the same, price of money.

If you treat money as a commodity, which it should be, then like any commodity there is a price.  We can measure the price of money by either looking at its value as it relates to other money (Euro vs Dollar) or its purchasing power or the rate of interest.  Interest rates are always a measure of how valuable money is at any given time.  If money is scarce then the interest rate is higher, if money is widely available then interest is lower.  Right?  Good.

As you can plainly see our centrally planned authorities dictate the price of the most vital and precious aspect of our economy, our money.  When these authorities incorrectly price our money we develop massive distortions.

Why does this happen?

Because money is priced through the banking system.  That is, the quantity of money increases (when rates are low) through the banking system first and then into the general economy later.  Therefore banks benefit first and foremost as they are the recipients of newly created money, while the rest of us poor shmucks see this increase in money through price increases.  If you think about it, provided production capacity remains the same then the price of all goods invariable increase *if* the supply of money goes up.  Yes?

So what does that look like?

Observe the massive price increase that began to occur around the 1970s.  There were two things that happened in the past 40 years that contributed to this jump.

1)  1971:  End of Bretton Woods and the US Dollar disconnecting from any material store of value (gold).
2)  1982:  A thirty year prolonged effort of systematically lower and lower rates, thus making money/credit cheaper and more plentiful.  As you can see in the first chart, we have now reached the floor at 0% interest rates or in more simpler terms the price of money is the lowest it has been in history.

Are there other effects of cheap money other than price increases?

Yes, salaries tend to go up.

Unfortunately the rate of salary increases does not keep up with the rate of price increases.  You can tell in fact that at the moment of the writing real income is now lower than it was before the recession of 2008, yet price increases are at their highest!

Why does that matter?  Because of the following:


Rise in prices affect the lower income families the most.   It is useful to look at the expenditure ratio of things like gas and food because these items are required for survival.

You need food and energy in order to produce and build capital.  Without capital there is no wealth.

Visually the picture is starting to coalesce.  The lower income families are having a harder and harder time building capital because they are spending at least half of their entire income on survival!   The bad news does not stop there unfortunately because the price of money causes yet another distortion.  It forces people to move potential capital into acquiring tangible goods instead of actually saving the money for more prudent purchases or investments.

This is the sad state of our society over the past 30 years:

As money becomes cheaper and more plentiful the rate of savings declined with it.  This was happening DESPITE the fact that prices for all items were going up.  Essentially this means that Americans were spending more and more, but getting less and less for it while diminishing their capital formation (wealth).  
You could argue for instance that purchasing items can be translated into wealth, but that is only true to a limited extent.  Most items that you buy depreciate and this is is precisely why gold was always used a store of value, it never depreciated.   Housing was another popular item for storing wealth, but houses also depreciate and the past few years demonstrated just how sharply prices can decline in what appears to be a traditional "store of value".
So what is the conclusion here?
In order for more and more Americans to participate in the American dream, there needs to be an accumulation of wealth.  Wealth is accumulated through capital formation or more simply put, saving money. Saving money is effective only when the savers are guaranteed that the money saved provides the same purchasing power before the saving, as it does after the saving.  In a climate where the amount of money is constantly expanded the saver gets no such guarantee.  Incidentally, people chasing stocks, houses and other risky mechanisms for capital formation are doing so precisely to mitigate the hardship of saving in the western world.
In order for money to be saved there must be excess income generated after the staples have been purchased.  As we saw up above, due to massive price increases due to money expansion the amount of disposable income is constantly getting reduced.   The days where a man could provide for his family and send kids through college are long gone,  price increase cause this and nothing else.
The last consequence of cheap monetary policy, credit.  Because money is cheap, debt is spurred.  Therefore people can much more easily accumulate debt because the interest paid on this debt is "negligible".  So not only are Americans not saving, but they are spending more and more on goods that they technically should be buying.  Whether that is electronics, cars or houses matters not.  As you can see, the appetite for consumption has steadily increased: 
Credit expansion causing housing bubbles is nothing new,  consider for example the Florida housing bubble of the 1920s.
Unfortunately when large portions of income are spent on survival items, savings are destroyed and debt obligations rise - you are left with nothing, hell, nothing would be preferable to the mountains of debt that people have accumulated. 
This is the source of our income inequality, this is what happens when the free market and capitalism are replaced with central planners and cronyism.  This is our America. 
Now what will you do to change it?

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Sat, 10/22/2011 - 17:57 | 1800480 Seize Mars
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This is Austrian economics in action! (Bitchez!)

Sat, 10/22/2011 - 18:00 | 1800487 I am Jobe
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Are you sitting on a server somewhere to be posting number 1

Sat, 10/22/2011 - 18:30 | 1800544 bank guy in Brussels
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When I used to read Mish Shedlock's blog, there was a guy there whose user name was something like 'Thirdston Howell the 3rd' - and he did an amazingly good job of being the 3rd poster commenting on Mish's new posts.

That was real art - being third instead of just first. I don't know how he did it.

ZeroHedge doesn't quite lean in this child-like 'Me First!' direction, but I often have gotten a good laugh out of people claiming 'FIRST!' on blog comments and then others commenting on the 'first' ... rather like the post above.

('Thirdston' was a spoof on the name of a character in an old US television programme called 'Gilligan's Island', millionaire 'Thurston Howell III', played by Jim Backus who was the cartoon voice for 'Mr Magoo'.)

Sat, 10/22/2011 - 18:36 | 1800559 AldousHuxley
AldousHuxley's picture

That's a trick so that all the trolls expose themselves right from the get go as idiots.


That's like yelling "shotgun" when getting into a stretched limo.

Sat, 10/22/2011 - 22:47 | 1801096 UP Forester
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What's a stretched limo? 

Sun, 10/23/2011 - 16:07 | 1802497 Pegasus Muse
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Two excellent interviews/talks:


Austrian economist Thorsten Polleit talks to James Turk.  


Judge Napolitano: A must see...  A National Treasure, worth every minute of viewing!!


Sat, 10/22/2011 - 18:39 | 1800562 Seize Mars
Seize Mars's picture

Well, I didn't intend on being first. In fact I have never been a first post before. But I am curious as to why it would bother you.

Anyway, the reason I posted is that I think this article is a great empirical study along the lines of the Austrian school's theory of the structure of capital. It is the only economics school that actually understands the role of interest rates and their effect throughout the "economy," that is, the structure of capital. In fact they are the only economists that acknowledge that capital has a term structure to it.

It's fascinating, and this empiricism seems to back it up.


Sat, 10/22/2011 - 20:20 | 1800770 slewie the pi-rat
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"The lower income families are having a harder and harder time building capital because they are spending at least half of their entire income on survival!"



Sat, 10/22/2011 - 18:56 | 1800593 MaxMax
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Thirdston pretty much stopped posting on Mish's site after his third posting trick get explained.  Something changed on Mish's site and Thirdston's script that monitored his site for new postings got screwed up.  Instead on posting a canned "pithy comment", part of his script got posted.  When you see someone always posting like that, you will notice that the comments are generalized because the comments were all writtten beforehand.

Sat, 10/22/2011 - 19:03 | 1800608 Seize Mars
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Well I didn't do anything like that. I couldn't script my way out of a paper bag.

My comments are real, and if I may say, correct.


Now, go forth and read Hayek, Hazlitt, Rothbard and von Mises!! This article is good because it is correct!!!

Sat, 10/22/2011 - 21:20 | 1800903 Ned Zeppelin
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Perhaps it is the content of your posts (which I enjoy) he finds disturbing.  

Sat, 10/22/2011 - 22:37 | 1801076 yabyum
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Mish blamed on the unions;)

Sun, 10/23/2011 - 16:04 | 1802493 sgt_doom
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The posers are out in force:

"They are really decent, good people; it's the system."  ---- Noam Chomsky,

discussing the billionaire bankers of Wall Street.

"They are decent people. It's the system."  ---- Lawrence Lessig, Harvard Law,

discussing the US Congress (later he claims that "..Wall Street took advantage of a corrupt congress." – Riiigght!)

"They are just doing their jobs."  -- Richard Wolff,

discussing the Wall Street bankers, and others.

The disinformation specialists would have everyone believe this "just happened"  -- the meltdown "magically appeared"  -- it was all "an accident."

A forensic audit of the above three's consulting fees and other assorted fees over the past fifteen years would prove might interesting!

In 1921 or '22, an ultra-leveraged run took place, ending in the Great Crash of 1929, and securitization was later ended officially in 1933.

Starting around 2000, up until mid-2007, another ultra-leveraged run took place, resulting in the global economic meltdown.

Nothing magical about it, and well planned and well designed with much effort, thought and lobbying to enact predatory jurisprudence and predatory legislation to allow the banksters to sell $100 to $1,000 worth of debt for every $1 of debt on hand.

And they made billions upon billions selling hundreds of trillions worth of debt --- then want to blame the rest of us, while claiming no one is really at fault.

Bank Bernanke and this guy's blog post can ramble on about monetary policy all they want....but they can only obfuscate reality for so long until it becomes obvious as to the real causes and the real culpability.

'Nuff said.....

Mon, 10/24/2011 - 11:56 | 1804596 Bring the Gold
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Ding, ding, ding. We have a winner. Money supply was the accelerant but not the matches or fuel source.

Sat, 10/22/2011 - 18:02 | 1800485 Quixotic_Not
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Lech Walesa Not Attending #OccupyWallStreet in New York After Discovering Hard-Left Organizers

The Polish champion of freedom and liberty, founder of Solidarity, winner of the 1984 Nobel Peace Prize, and first President of modern Poland Lech Walesa had been rumored to possibly be traveling to New York to stand with Occupy Wall Street protesters.

Based on our discussion and intervention, President Walesa is not going to get involved with the OWS.  He is not comfortable with the “organizations” behind the movement.

This spring, when President Obama visited Poland, President Walesa refused to meet with him.

America is a center-right country politically.  The Occupy movement, at its core, is a hard-left movement. If successful, America would cease to be governed on our founding principles of freedom and liberty. Thus, we react to the news that Lech Walesa will not support the OWS movement with much thankfulness.

Sat, 10/22/2011 - 18:15 | 1800510 Uncle Remus
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I'm guessing Lech Walesa knows a socialist pig gussied up with red, white and blue lipstick when he sees one.

Sat, 10/22/2011 - 18:21 | 1800526 Pure Evil
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I thought the OWS thing was just a chance for college kids to take a shit in the park.

Sat, 10/22/2011 - 18:25 | 1800534 Uncle Remus
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There is that.

Sat, 10/22/2011 - 18:51 | 1800584 AldousHuxley
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I'd pay to see some college fresh shit thrown at banksters still getting bonuses from tax payer bailouts.


hell, these screwed up banksters are probably into that shit pardon the pun.

Sat, 10/22/2011 - 19:27 | 1800658 Pure Evil
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Personally, I would prefer to see the college kiddies shittin' on the politicians heads inside the beltway, for without them the bankstas wouldn't be collecting any bonuses.

Phil Graham first of course, Alan Greenspan second.

Sat, 10/22/2011 - 19:37 | 1800687 Uncle Remus
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I'd pay to see mandatory military service before you can attend college.

Sat, 10/22/2011 - 21:47 | 1800984 midtowng
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Mon, 10/24/2011 - 01:37 | 1803516 Uncle Remus
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Well, we don't have a draft and we're still starting wars. Maybe Country Joe can get the band back together.

Sat, 10/22/2011 - 22:13 | 1801035 AldousHuxley
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freedom hater. big government lover.


that kind of thinking is what the American NAZI party needs!


WAR for all, all for WAR.

Sun, 10/23/2011 - 09:36 | 1801576 GCT
GCT's picture

Qix I think we got your point on the OWS thing.  Can you post something else this is getting old seeing the same ole crap in every thread!

Mon, 10/24/2011 - 01:33 | 1803519 Uncle Remus
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Actually, quite the opposite. And the Fascists are already in power.

Sun, 10/23/2011 - 11:45 | 1801851 Marley
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I'd pay to see the next war inductees indexed by daddy's tax bracket.  What they ow, not what they pay.  Top down of course.  Oh, oh, and their medical facilities wouldn't have any supplies, requiring amputation (from the neck up) for minor injuries.

I'd pay to see the top 1% shiver to death in a drafty alley.

I'd pay to see the top 1% go hungry for 6 days at a time.

I'd pay to see the top 1% drink contaminated water.

I'd pay to see the top 1% stranded on an island for a year without any supplies.  That'd be reality TV worth watching.

Hell, I'd pay to see the top 1%, "I worked for MY money," work.

Physical labor Bitches.


Sat, 10/22/2011 - 21:48 | 1800986 midtowng
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I guess you would think that if all you knew about it was from right-wing sources.

Sat, 10/22/2011 - 18:49 | 1800578 dizzyfingers
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They're being paid! The ad is on Angie's List.

Sat, 10/22/2011 - 18:57 | 1800595 AldousHuxley
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More than tea party folks by Koch bros?


More than lobbysts on K-St and CONgress representing bankster interests?


What is your priority? complain at college grads getting free food or bankster exec bonuses into millions?


When banksters are out in wall st. protesting that they get paid their fair share, then you can complain about college kids getting paid.

Sat, 10/22/2011 - 18:52 | 1800585 Quixotic_Not
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OWS: The Perestroika Deception Develops a Face

In recent weeks, every American has watched with morbid curiosity as swarms of hate-filled, sputtering communist loons and Hippie-wannabees have taken to the streets, shutting down cities and leaving a path of destruction wherever they go.  Although many Americans disagree with the stated agenda of these radicals, most think them harmless, dismissing their acts as pathetic attempts to resurrect the failed social movements of the sixties.

But this group of determined radicals is not to be laughed at.  Lisa Fithian, the primary OWS organizer, is an unrepentant communist and proponent of government and economic destabilization as a means of achieving totalitarian centralization along communist lines.  Writing for a socialist rag, Fithian once stated, “I have no issue with property destruction…We’re in a society where property is idolized, so a lot of people don’t get it yet that it doesn’t really matter.”

While this should shock Americans (and would, if the facts were being reported) this is nothing new.  This is just the latest tactic in a long-term strategy that has been quietly moving forward for decades.  I am speaking of a high-level strategy designed to thwart American resistance to communist infiltration known as “Perestroika.”

Sat, 10/22/2011 - 19:01 | 1800604 AldousHuxley
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yes because socialists and communists are in power and they own governments and banks and they caused the world financial melt down?


yes because socialists and communists own the mass media and is telling the truth about bailouts and corruption?


I don't trust RT (Russian TV) but on matters of finance and wall st. corruption, they have been reporting the truth rather than hiding it like the US mass media.


The real socialists are the banksters getting bailed out. What part of that don't you understand? Oh you must have inherited shit tons.

Sat, 10/22/2011 - 21:52 | 1800990 midtowng
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Since there is no official OWS list of demands, has it occured to you to question your sources?

Sun, 10/23/2011 - 03:50 | 1801412 Rynak
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Bigots do not question anything except of their imaginary enemies.

Sun, 10/23/2011 - 00:47 | 1801263 John_Coltrane
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"yes because socialists and communists are in power and they own governments and banks and they caused the world financial melt down?"

Yep, you get it unless you are being ironic.   Obama, Bernake and Geitner are all Fabian socialists as are their leftist NWO donors like Soros.  Indeed, they are in power.  Keynes was also a Fabian Socialist.  Their goal, own world centralized government with the elite (them) in charge of everything, especially the means of production and the creation of money.  Central banking cartels like the FED are their instrument, debt their method, and bailouts and wars part of the scheme to insure serfdom.  And, like Lenin, they believe the end justifies the means.  (Unlike, Libertarians who know the means determine the end!) 

Their enemy,  Libertarians and limited government types like Ron Paul and the tea party.  It is a fight to the finish:  the collective or the individual.  There is no middle ground, so pick your side.

Start by reading " the creature from Jeckyl Island".  Its better than Brave New World, Aldous, 'cause its not fictional.

Sat, 10/22/2011 - 19:27 | 1800657 s2man
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LIke we need communists to provide "government and economic destabilization"?  I think we're doing just fine on our own.

Sat, 10/22/2011 - 21:22 | 1800908 Ned Zeppelin
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Quix: what are you smoking? 

Sun, 10/23/2011 - 03:53 | 1801414 Rynak
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I think that about sums up his state of mind.

Sun, 10/23/2011 - 09:38 | 1801579 topcallingtroll
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Did you read the quote?

It makes you a communist if you think private property is meaningless.

Sat, 10/22/2011 - 18:00 | 1800486 prodigious_idea
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OWS has about as much interest in understanding modern economics as the Tea Party does understanding history and science.

Sat, 10/22/2011 - 18:10 | 1800502 ISEEIT
ISEEIT's picture

Fail. Were that true then OWS would be targeting the FED and BOTH political parties. OWS demands authoritarian government and keynesian voodoo in spades.

Sat, 10/22/2011 - 19:07 | 1800615 AldousHuxley
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Does "FUCK THE FED" chant in front of Boston Fed sounds like authoritarian government to you?


Where is the tea party proof that they are not in bed with the status quo of Fed and bailouts?


If you don't understand OWS, you deserve to have the Fed to rip you off. BTW, they are considering QE3, WHERE IS THE TEA PARTY protesting this?


Tea Party is bunch of boomer idiots who wants Fed to rescue their overinflated homes, because they spent all the money treating homes like an ATM and didn't save for their retirement.

Sat, 10/22/2011 - 19:34 | 1800680 Pure Evil
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The mask of reason and tolerance has been ripped from the monster.

Sun, 10/23/2011 - 09:41 | 1801585 topcallingtroll
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Yeah this is aldous huxley's big government socialist twin.

Why pick the name of an anticommunist? To misdirect?

Sat, 10/22/2011 - 19:50 | 1800720 Missiondweller
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BTW, they are considering QE3, WHERE IS THE TEA PARTY protesting this?


The Tea Party helped elect people to stop the insanity in 2010. They're the reason Obama has only run up $5T in additional rather than $7T. Even now, they are preventing Obama from pissing away another $500B on another "stimulus". The TP has worked within the system rather than calling for a violent revolution and Marxism.

Fuck OWS. They're just a bunch of George Soros poseurs.

Sat, 10/22/2011 - 21:56 | 1801002 midtowng
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The Tea Party has completely sold out.

Sat, 10/22/2011 - 22:17 | 1801040 AldousHuxley
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Tea Party refinanced at lower rates (which in the long run is more money for banksters+refi cash now)and QE 1 & 2 brought their 201k back up to 401k.


Too bad they don't quite get the concept of INFLATION.





Sun, 10/23/2011 - 00:33 | 1801241 DaveyJones
DaveyJones's picture

why support any political party. they all serve something else first.

Sun, 10/23/2011 - 00:33 | 1801242 tyler
tyler's picture

The tea party sleeps in swanky hotels and paid a dim wit like palin $250,000 to read shit off her hand.  OWS has been sleeping outside, in the cold for over a month to adress an issue the tea party won't touch.  The most important issue there is.  The bankers.  The hypocrites on the right have probably never heard of the koch brothers.  Tunnel vision and playing the victim are the first rules of being a neo-con.  

Your boogeyman george soros sure is cheap if he can't even put the protesters up in a motel or give them some out houses.  By the way you must of been super excited when the tea party cut less than one percent from obamas budget.  2 trillion sounds good but I bet you can't back that up.  It's more like 2 trillion over ten or twenty years.  If your guys had their way the deficit would still expand dramatically. 

Both parties are to blame but the bankers and mega corporations hijacked america and turned us into a wasteland, wake up!  We've been gutted.

Sun, 10/23/2011 - 01:01 | 1801288 John_Coltrane
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Read the Ron Paul budget which cuts $1T from the budget and eliminates 5 specific departments in the first year.  We "tea party" people are quite serious about limited government.  The role of the federal government is just that envisioned by Jefferson, national defense and enforcement of the rule of law-not social engineering by Fabian socialists.  Consider also the cut, cap, and balance bill which passed overwhelmingly in the house and the Paul Ryan's budget (block granting medicaid, vouchering medicare) before you attempt the fiction there is no philosophical difference.  Believe me, we want a repeal of all of LBJs "great society" problem which are a sole source of our huge debt.  There should be no TSA, dept. of education, energy, commerce, housing etc.  Eliminate all foreign aid, UN, IMF, world bank support etc.  These are the central tenets Ron Paul and the tea party.

Sun, 10/23/2011 - 08:44 | 1801536 midtowng
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Sun, 10/23/2011 - 15:07 | 1802389 Buckaroo Banzai
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the reason tea partiers don't sleep outside for a month is because we have businesses to run, and people depending on us, and by the way...we are the ones who pay the taxes. So take your holier than thou attitude and stick it in a sack.


Sun, 10/23/2011 - 18:32 | 1802838 Boner Jamz 03
Boner Jamz 03's picture

Fuck that shit. While there are definitely some enlightened tea partiers, yourself probably included, in my experience those guys are a bunch of pseudo-populist, disenfranchised fuckups who are mad as hell because they didn't get to be yuppies; they don't have a problem with the status quo, they're just mad that they didn't win the middle class lottery. 


I'd rather chill with a bunch of OWS protesters, who are genuine in their intentions but ignorant of the object of their scorn, than some hypocritical, sourpuss motherfuckers pretending they're revolutionaries in some small town Chamber of Commerce.

Sun, 10/23/2011 - 15:12 | 1802396 Buckaroo Banzai
Buckaroo Banzai's picture

the reason tea partiers don't sleep outside for a month is because we have businesses to run and people depending on us, and oh by the way... we're the ones paying most of the taxes. So take your holier than thou attitude and stick it in a sack.

Sun, 10/23/2011 - 02:16 | 1801353 Lord Koos
Lord Koos's picture

Where was the tea party when that white guy George Bush was spending all that money? 


Who gave more money to Obama's campaign, Goldman Sachs or George Soros?

Sun, 10/23/2011 - 15:01 | 1802373 Buckaroo Banzai
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We were there, but the movement had a different name back then. It was called "Ron Paul for President."

Sat, 10/22/2011 - 21:53 | 1800993 midtowng
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They ARE targeting the Fed, dumba**.

Sat, 10/22/2011 - 18:21 | 1800525 Uncle Remus
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Parallels your partisan perspective.

Sat, 10/22/2011 - 18:02 | 1800490 I am Jobe
I am Jobe's picture

I wonder if Krugman Agrees with this? Lets ask Krugman shall we?

Sat, 10/22/2011 - 18:24 | 1800532 Pure Evil
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I have Krugman down here roasting on the spits of hell, and yes, he nods his head in agreement.

Sat, 10/22/2011 - 18:04 | 1800492 melanie
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9:30PM BST 22 Oct 2011

Europe's leaders are threatening to trigger a formal default on Greek debt and risk a “credit event” if banks refuse to accept losses of up to €140bn (£120bn) on their holdings. 
Hardline eurozone members, backed by the International Monetary Fund (IMF), delivered the ultimatum this weekend after an official report found that in a worst-case scenario Greece could need a second bail-out of €450bn – twice the current package and more than the entire €440bn in the eurozone’s rescue fund. 
Vittorio Grilli, a senior EU official, travelled to Rome yesterday to present the “take it or leave it” deal to the Institute of International Finance, which is leading the negotiations for the banks. “The only voluntary element for the banks now is to take a 50pc haircut or face a credit event, a default,” said an EU diplomat. 
The threat marks a dramatic change of stance in Brussels, and follows early warnings that a Greek default would set off a chain reaction that would result in a worse financial crisis than in 2008. 
Although wary about the markets, they are now thought to believe that a “big bazooka” solution could contain the crisis in Greece. 
The “haircut” would be accompanied by details of plans to recapitalise the banks and reinforce the European Financial Stability Facility (EFSF), the €440bn bail-out mechanism. 
If the banks called the EU-ECB-IMF troika’s bluff, they would potentially face nationalisation. A “credit event” would risk triggering credit default swaps – the scale of losses from which cannot be accurately quantified.


Sat, 10/22/2011 - 18:13 | 1800507 kaiserhoff
kaiserhoff's picture

Sounds like they are still long magical beans.

Sun, 10/23/2011 - 08:09 | 1801512 gillimus
gillimus's picture

the scale of losses from which cannot be accurately quantified.


That's a chilling statement from someone not named Tyler.  So the Troika is telling the banks to forgive 50% of Greece's debt or forgive it all.

Sat, 10/22/2011 - 18:05 | 1800493 Corn1945
Corn1945's picture

Zero interest rate policies make the problem worse also. Capital formation becomes incredibly difficult when the savers income goes to bailout insolvent Wall Street institutions.

Sat, 10/22/2011 - 18:19 | 1800521 whiskeyjim
whiskeyjim's picture

Exactly. TARP. Worst. Legislation. Ever.

Easy answer. End the Fed. Allow a market to determine interest rates. Print only enough money to allow a gentle 1% deflation. Do not allow the government to borrow. Ever. Allowing the government to borrow is like your kid getting a loan from the bank based on the allowance (taxes) you give him and trying to help you fix the house you've been saving for.

Sun, 10/23/2011 - 00:35 | 1801244 DaveyJones
DaveyJones's picture

"This Time is Different

Sat, 10/22/2011 - 18:10 | 1800498 SteveNYC
SteveNYC's picture

In short, Bernanke is going to be responsible for the complete impoverishment and debt slavery of the masses, while making the rich/ultra rich so wealthy words have not yet been created to describe what they will be referred to as once his plan is complete.

Job well done, Ben.

Sat, 10/22/2011 - 18:19 | 1800519 kaiserhoff
kaiserhoff's picture

There once was a bald Jew named Ben

Who destroyed many lives with his sin.

They called him unhanged,

They called him unhinged,

'till he finally pulled his own pin.

Sat, 10/22/2011 - 18:45 | 1800570 buzzsaw99
buzzsaw99's picture

For the name of God is blasphemed among the Gentiles because of the bernank. Romans 2:24

Sat, 10/22/2011 - 19:14 | 1800628 redcorona
redcorona's picture

Guest Post: Wealth Inequality In America, Understanding The Source

(the source is anything but the Jews)

Sat, 10/22/2011 - 19:39 | 1800696 kaiserhoff
kaiserhoff's picture

The little limerick wasn't really about the Jews, but if you don't know that the Jews own Hollywood, all of the mass media, and nearly all of Wall Street, you're simply not paying attention, and yes that is one hell of a source of income inequality.

Sat, 10/22/2011 - 20:09 | 1800748 buzzsaw99
buzzsaw99's picture

the federal reserve guarantees that the rich get richer and never lose. therefore, ergo, the fed is the source of all evil.

Sat, 10/22/2011 - 20:17 | 1800759 Pure Evil
Pure Evil's picture

Uh, they're just a little side job, sorta like a little girls lemonade stand, I've got running to keep the masses enslaved.

I'm running hell down here, that's no easy job, and the air conditioning bill is killing the bank account.

Sat, 10/22/2011 - 21:00 | 1800858 buzzsaw99
buzzsaw99's picture

sorta like a little girls lemonade stand...


sorta like a little girls lemonade stand that gives out trillions of dollars to support the status quo? Damn, you are evil!

Sat, 10/22/2011 - 22:23 | 1801048 AldousHuxley
AldousHuxley's picture

you can't have lemonade stands without a proper license and fee paid.


Sat, 10/22/2011 - 18:11 | 1800503 Return2Sanity
Return2Sanity's picture

I would agree we need policies to keep savings and debt in balance overall. However, the thing that I think has created so much anger is seeing people get rich through fraud and deception, while paying off politicians to stop enforcing the laws. We need to listen to William K. Black and start prosecuting those who have committed crimes in the financial industry.

Sun, 10/23/2011 - 10:32 | 1801666 DaveyJones
DaveyJones's picture

Hes the living breathing proof that our country has been stolen

Sat, 10/22/2011 - 18:13 | 1800505 Eeyores Enigma
Eeyores Enigma's picture

The Occupy movement and all the other movements around the world is about the fact that 99% of the population have no voice, no representation, no control over the direction things are going.

Governments the world over only represent the 1% who have the wealth and power. 

It's not specifically about the wealth, it's the disproportionate amount of control over...everything...that that wealth gives them.

All the 1% need to do is allow direct democracy and give voice to the 99% and then the people will leave them alone...oh wait a minute...if that happened they probably wouldn't be ridiculously wealthy and powerful any more...never mind.


Back to good old taxation without representation


Sat, 10/22/2011 - 18:20 | 1800524 X.inf.capt
X.inf.capt's picture

i keep hearing about the 99% is hard left

in one short word.....BS

its not about wealth redistribution....

its about holding the upper crust to the same standard as everyone else...

i know, i made a trip down to talk to them....

no hard left, marxist, tatooed faced, dread locked stinky people...

alot of ex middleclass...and vets.....and clean cut students....

before i went, man, these trolls sure had me fooled....

Sat, 10/22/2011 - 18:53 | 1800588 bankruptcylawyer
bankruptcylawyer's picture

i take issue with this. while i agree that the idea that 99% of any group claiming to represent the whole of society is not easily pidgeon holed ( they are not all hard left--right, x,y,z) and thus...that the catch phrase of 99% , is totally absurd and meant to suck people in and 'alientae' people standing against the so called 99% by playing into a trap of being pre-identified as the '1%' by opposing them.........


this is 100%  about wealth redistribution. when wall street steals and decieves for DECADES to obtain absurd amounts of wealth through every which way of deception, 

the idea of 'holding them to account' , and changing the system and policies by which they fraudulently obtain their wealth.........

is an idea of taking control over the mechanism --which is the very ownership of the banking system itself.

this is about redistribution of the most important kind---who own the system and its reigns.


the solution could not be as simple as 'land approportiation' , because we are not living in a society where the 'upper crust' have their wealthy rooted primarily in land. it is rooted in control of the banking system. ownership of this system is a property right, and needs to be redistributed as fast as possible. by nationalizing the banks, liquidating them, and splitting up the rights of the banks into those to be retained by government ( distributed equallly amongst the states governments i hope, rather than primarily fed)  and treated as public utility services, and those that are to be auctioned off to the highest private bidder.

the fed system is a redistribution system owned and operated by and for the benefit of a banking cartel which is the wealth transfer mechanism of a number of banking clan families and hyper wealthy individuals.

if you want to save capitalism from itself, from communoklepto-plutocraticapitalism that is what we are suffering from now, these property rights in the money system itself must be redistributed. THIS IS REDISTRIBUTION OF THE MOST IMPORTANT KIND.  


Sat, 10/22/2011 - 18:58 | 1800597 X.inf.capt
X.inf.capt's picture


i just said thats what theyre saying...

im leaving my own opinion out of it...

Sat, 10/22/2011 - 19:18 | 1800624 AldousHuxley
AldousHuxley's picture

tax cuts without spending cuts are tax deferral to your kids. That's why the kids at OWS are mad. They will pay higher taxes years own the road after boomers die to save boomer exec and bankster bonuses today. That's why there is roth 401k, because people know that taxes will be higher later to pay for the wars and all the bullshit bailouts today.


You got children then listen to this marine.


Both democrats and republicans WANTS you to believe that OWS is a fringe group. Why shake the ship when the gravy is flowing so well into their pockets?

But the beauty of OWS is that because they are scattered and unorganized, the rich and the powerful does not have one enemy to attack and discredit. elites know that they can't attack the middle class publically so they try to label OWS as some outcast group.


Sat, 10/22/2011 - 19:22 | 1800646 X.inf.capt
X.inf.capt's picture


glad to see ya, huxley

its called leaderless resistance, we studied it years ago....

so much for the hard left, marxist leadership....

p.s. i was army NG....


Sat, 10/22/2011 - 19:23 | 1800650 Uncle Remus
Uncle Remus's picture

I am curious as to who is going to pay for the unfunded entitlements; public union pay, COLA and retirement benefits? And of course Warapalooza. This is so much more than Wall Street, the Fed and rampant corruption, but it is most certainly that as well.

It is also about individual expectations of what someone else, usually the government, can do for them, never what individuals can do for themselves. It is about the entitlement mentality that has metastasized.

Sat, 10/22/2011 - 19:14 | 1800627 Uncle Remus
Uncle Remus's picture

But doesn't calling it BS render an opinion?

Sat, 10/22/2011 - 19:25 | 1800636 X.inf.capt
X.inf.capt's picture


that and leaderless resistance is the strategy thier using

no hard left marxist leaders at all...

just an idea

Sat, 10/22/2011 - 19:29 | 1800668 Uncle Remus
Uncle Remus's picture

Appearances are deceiving.

Sun, 10/23/2011 - 00:51 | 1801269 grid-b-gone
grid-b-gone's picture

"The Fed system is a redistribution system"

Correct, and they have no problem calling their actions "intervention." When there is intervention in a free market system, the level of freedom is compromised. When intervention creates consecutive bubbles, the redistribution also becomes continuous. 

The FDIC had the proper controls and limits of risk in place. When Sheila Bair was prevented from activating the actions that banks had help put in place, the level of acceptable risk in the banking system was exceeded.

One sign of the banks having too much power is the fact that they could rewrite the rules on the fly as this crisis unfolded.

If the riskiest banks were contained in 2008 and the general public that still has decent credit could take out Fed loans at 0-0.25%, a real recovery would already be underway.

Sat, 10/22/2011 - 21:41 | 1800965 moneymutt
moneymutt's picture

Really, is there an organized hard left in this country? we once had waetherman,black panther party,And I. The 20 30s and 40s we had straight up communists and socialists trying to organize govt takeover of all private businesses...good luck finding anying like this on college campuses today...maybe a few stray anarchists at one reading Maos book, flying to hang out with No vietnamese etc..I wish these kids were more radical as they would move the country to better awareness....remember the hippies, spoiled college kids, and black panthers were right that we should not have been in Vietnam...but these kids today are not radicals, I don't think they even want us to be Sweden let alone something way to the left of that.

Sat, 10/22/2011 - 22:01 | 1801008 midtowng
midtowng's picture

When you go far enough to the right, even the center looks like the hard left.

Sat, 10/22/2011 - 18:12 | 1800506 zeroman
zeroman's picture

blah blah blah.. of course we know that the fed is an inflationary addict and debt expansion addict. this is nothing new. Here is the bottom line. If people have nothing to lose then they are willing to sacrifce everything to take a shot at things being better. This has bee historically proven time and time again through the russian revolutions, Nazi Germany, and on and on we go. The problem with power and greed, is that it becomes self perpetuating to those who are in control. We now have a system that allows for major corporations and/or interest groups to control our society. To end inequality, simply begin to stop all lobbyists from infiltrating the political process. As long as the fortune 1000, unions, military, and big oil, China, and other countries have the ear of our elected officials moreso than we the people, you will continue to see wide spread disparity until it becomes too late. At that point, the self perpetuating power will cause revolution.  This is plain and simply going to happen until we the people are heard and honored.

Sat, 10/22/2011 - 18:23 | 1800530 whiskeyjim
whiskeyjim's picture

And people being people, the simple answer to your comment is to significantly shrink the size of the federal government so it does not have the power to sell itself. All politics should be local anyway. And take away its ability to borrow. Government borrowing is insane, and not just because it bases its revenue stream on a Ponzi scheme of taxes without investment ROI.

Sat, 10/22/2011 - 18:24 | 1800533 X.inf.capt
X.inf.capt's picture


but it may never happen...

taking the money out of politics....

Sat, 10/22/2011 - 22:40 | 1801084 AldousHuxley
AldousHuxley's picture

coup d'éta happens within


When even small time lobbysts and politicians lose out because the big donors favor their opponents, they will reform within.



Sat, 10/22/2011 - 22:57 | 1801110 UP Forester
UP Forester's picture

I vote for Petraeus for Bonapartism.  He won't go the way of Smedley Butler, and he's used to imposing military rule on countries.

Word is he concocted the new Iran-Cartel scam....

Sat, 10/22/2011 - 18:13 | 1800509 LetThemEatRand
LetThemEatRand's picture

All true, but not the only cause of the wealth gap by a long shot.  You forgot to mention globalization and free trade.  If a tiny percent of the populaton can freely hire slave or near-slave labor, the middle class in the developed countries are going to be in a race to the bottom.  The free market purists fail to account for the greed of the oligarchs.    

Sat, 10/22/2011 - 18:33 | 1800553 whiskeyjim
whiskeyjim's picture

Sorry, but this is simplistic. Globalization and 'free trade' has allowed billions of people in India and China and South Korea to crawl out of poverty into the middle class. Our own increased taxation, regulation, and increased legal liability of employees and real estate, not to mention the regulation inhibiting whole industries, has more to do with our unemployment and low growth rates than whether we still make T-shirts on American soil.

BTW, a lot of that off-shoring was just stupid consultant claptrap. It turns out if you aren't near where you manufacture, or outsource it 'so you can concentrate on what you are good at,' you both lose the emergent benefits of multi-disciplinary teams, but you often bankroll your own competition. Ask Dell how Asus got started. Some of that manufacturing will come back as managers open their eyes, and if USA stops cutting off its nose to spite its litigious face.

Sat, 10/22/2011 - 21:54 | 1800994 LetThemEatRand
LetThemEatRand's picture

I'm sure the bankers agree with you that less regulation is the best answer.  It worked so well leading up to 2008 -- for the bankers.  As for your point about the benefits of free trade on other countries, I'm pretty sure the article above is about wealth inequality in America.  To the extent globalist mega-companies have helped build up a psuedo middle class in India and China and elsewhere, it has been on the backs of the Western middle class and to the direct benefit of the oligarchs who have become enormously wealthly transfering the industrial base to countries with no labor laws and no environmental laws.   That is the real path of the free market unicorn -- the path of greatest wealth for the oligarchs.

Sat, 10/22/2011 - 22:03 | 1801012 midtowng
midtowng's picture


Sat, 10/22/2011 - 22:44 | 1801091 AldousHuxley
AldousHuxley's picture

With no regulation Chinese government owned banks will crush any private wall st. banks with state sponsored lies.


In a global true free market, wall st. will lose out to shanghai, hongkong, etc. who provide higher interest. Bankers are being subsidized by US government and tax payers.

Sun, 10/23/2011 - 01:20 | 1801320 John_Coltrane
John_Coltrane's picture

You forgot to mention the bell shaped (i.e. Gaussian) IQ curve.  In a complex, knowledge based society those with IQs below the mean of 100 (i.e. 1/2 the population by definition) cannot possibly add signficant value to production.  They can be easily replaced by either robots, computers, and/or foreign workers.  Unless government intervenes by creating "make work" jobs and/or social welfare programs which distorts the economy via malinvestment.  

The entire history of nations, from Alexander, the Persian and Greek empires, to Genghis Khan and Great Britain supports the idea that only free trade can create new wealth.  Isolated societies usually stagnate.  Greed (and fear) is an emotion shared by all economic classes.  Its what makes markets possible for example.  If you want to understand the source of both human strength and weakness, just grab a mirror. 

Sun, 10/23/2011 - 10:03 | 1801604 LetThemEatRand
LetThemEatRand's picture

Narcissist.  Let me guess -- you will never be deemed worthless in your cut-throat worldview, because you are special and deserving of everything you take out of our society, right?

Sat, 10/22/2011 - 18:15 | 1800513 kaiserhoff
kaiserhoff's picture

Is the Slut's name on Joisy Shoah Coochie or Nookie, I forget.  Nevermind, same difference.

Sat, 10/22/2011 - 18:18 | 1800516 Hohum
Hohum's picture

Well, I thought the article was going to be a two word philosophical discussion on whether inequality of income matters: Who cares?  Instead, same old, same old.

Sat, 10/22/2011 - 18:19 | 1800518 Cugel
Cugel's picture

Good article, but don't forget that some of that inflation was used to mask the declining competitiveness of American labor from itself. Even if you got rid of all the inflation, Americans would still have to face this problem with either productivity increases or wage cuts. Or by taking rich people's stuff.

Sat, 10/22/2011 - 22:07 | 1801024 midtowng
midtowng's picture

Funny how our "decline in competitiveness" coincided with free trade agreements with 3rd world countries that had no labor laws or environment regulation.

America went from a frontier backwater in the early 1800's to an industrial powerhouse in the mid-1900's behind the highest tariffs and protection of domestic industries in the world.

  We tore those things down first and then suddenly we were no longer "competitive".

Sat, 10/22/2011 - 23:00 | 1801118 UP Forester
UP Forester's picture

That big-eared Texan and his "giant sucking sound" doesn't sound so fucked-up kooky anymore, does he?

Sun, 10/23/2011 - 11:07 | 1801748 LetThemEatRand
LetThemEatRand's picture

I voted for that crazy fucker.  Meanwhile, both the Red Team and the Blue Team continue to spout the same free trade/globalism-will-make-us-all-rich mantra as the western middle classes disappear into the history books. 

Sat, 10/22/2011 - 18:24 | 1800528 Navigator
Navigator's picture article is the first ZH article I think I've EVER stopped reading at the 3rd paragraph.  You know, right where you say:

"To make matters worse the ruling elite of this country and the very wealthy are continuing to benefit while the remainder of the population struggles.  This is the appeal of the OWS movement despite the fact that the members making up the movement are advocating entirely unappealing solutions in the form of wealth distribution, punishing success and other hard left ideologies."

You see Arkady, America knows that OWS isn't making ANY demands.  It's not their job.  Fixing the problems in America is the job of the Republicans and Democrats that hold elected office.

But your paragraph above links, as source material, to the same right wing extremist blog that your name Arkady, at the top of this post, says you're from!  Then, if one follows your link for source material for your claim, one finds that you're your own source material.  Cool.  

Very cool, that self-sourcing thingy, except for one thing, you also list the OWS website and imply it's your source.  Unfortunately for you, the OWS website says the same thing I said at the top:

"This is not an official list of demands. This is a forum post submitted by a single user and hyped by irresponsible news/commentary agencies like Fox News and This content was not published by the collective, nor was it ever proposed or agreed to on a consensus basis with the NYC General Assembly. There is NO official list of demands."

Note the use of the word IRRESPONSIBLE Arkady.  Could this be you?



Sat, 10/22/2011 - 19:09 | 1800619 arkady
arkady's picture

Take it easy, lay off the coffee.   It is entirely acceptable to link to yourself, many bloggers do that and it is not some sinister ploy to dupe the reader.


Your defense of OWS is just simple proof that many on ZeroHedge are leftists, hard leftists at that.  You calling my blog extreme right wing is a perfect example of that, in fact I doubt you even understand the difference between the left and right in America.  


Oh well, can't please everyone.

Sat, 10/22/2011 - 19:27 | 1800645 Navigator
Navigator's picture

OK...I have an open mind.

Keeping in YOUR mind that OWS has made NO demands and has advocated nothing, and America knows it....what's your source for this statement in your 3rd paragraph:

"...the members making up the movement (OWS) are advocating entirely unappealing solutions in the form of wealth distribution, punishing success and other hard left ideologies."

Sat, 10/22/2011 - 19:28 | 1800661 Uncle Remus
Uncle Remus's picture

Advocating and demanding are two different things.

Sat, 10/22/2011 - 19:31 | 1800673 Navigator
Navigator's picture

True...and OWS done neither.

Your point is?

Sat, 10/22/2011 - 19:49 | 1800713 Navigator
Navigator's picture

Try to keep up here Quixotic.  OWS HAS MADE NO DEMANDS.  

Your link is the same link that Arkady used and it still says those demands are NOT anything OWS is responsible for posting.  In fact it says those are just the words of one poster on their website....and the OWS website says that people quoting that poster's words and claiming it's the OWS position are irresponsible.  Here's what the website you cite says about your link:

"This is not an official list of demands. This is a forum post submitted by a single user and hyped by irresponsible news/commentary agencies like Fox News and This content was not published by the collective, nor was it ever proposed or agreed to on a consensus basis with the NYC General Assembly. There is NO official list of demands."

Maybe you should have read your link before you posted it Quixotic.  You know, read more, post less.

Sat, 10/22/2011 - 19:52 | 1800722 Quixotic_Not
Quixotic_Not's picture

In order to facilitate the timely election of the 870 Delegates to the National General Assembly by July 4, 2012 and petition the government for a redress of grievances before the 2012 elections, the Working Group on the 99% Declaration, founded and duly announced to the New York City General Assembly on October 15, 2011, shall draft a suggested list of grievances to be respectfully submitted to the Delegates of the National General Assembly no later than June 30, 2012. The final version of the PETITION OF GRIEVANCES ratified by the National General Assembly, MAY or MAY NOT include the following issues suggested by the Working Group on the 99% Declaration:

1. Implementing an immediate ban on all private contributions of money and gifts, to all politicians in federal office, from individuals, corporations, "political action committees", "super political action committees", lobbyists, unions and all other private sources of money or thing of value to be replaced by the fair, equal and total  public financing of all federal political campaigns. We categorically REJECT the concepts that corporations are persons or that money is equal to free speech because if that were so, then only the wealthiest people and corporations would have a voice. The complete elimination of private contributions must be enacted by law or Constitutional amendment because it has become clear that politicians in the United States cannot regulate themselves and have become the exclusive representatives of corporations, unions and the very wealthy who indirectly and directly spend vast sums of money on political campaigns to influence the candidates’ decisions when they attain office and ensure their reelection year after year. Our elected representatives spend far too much of their time fundraising for the next election rather than doing the People's business. The current system's propagation of legalized bribery and perpetual conflicts of interests has reduced our once great republican democracy to a greed driven corporatocracy run by boardroom oligarchs who represent .05% of the population but own 38% of the wealth.

2. The immediate abrogation, even if it requires a Constitutional Amendment, of the outrageous and anti-democratic holding in the "Citizens United" case proclaimed by the United States Supreme Court. This heinous  decision, equates the payment of money by corporations, wealthy individuals and unions to politicians with the exercise of protected free speech. We, the People, demand that this institutional bribery and corruption never again be deemed protected free speech.

3. Prohibiting all federal public employees, officers, officials or their immediate family members from ever being employed by any corporation, individual or business that they specifically regulated while in office;  nor may any public employee, officer, official or their immediate family members own or hold any stock or shares in any corporation they regulated while in office until a full 5 years after their term is completed; and a complete lifetime ban on accepting all gifts, services, money or thing of value, directly or indirectly, to any elected or appointed federal official or their immediate family members, from any person, corporation, union or other entity that the public official was charged to specifically regulate while in office. In sum, elected politicians and public employees in regulatory roles, may only collect their salary, generous healthcare benefits and pension. Any person, including corporate employees, found guilty and convicted of violating these rules in a court of law by proof beyond a reasonable doubt, shall be sentenced to a term of mandatory imprisonment of no less than one year and nor more than ten years. 

4.  Term Limits. Members of the United States House of Representatives shall be limited to serving no more than four two-year terms in their lifetime. Members of the United States Senate shall be limited to serving no more than two six-year terms in their lifetime.  The two term limit for President shall remain unchanged. Serving as a member of Congress or the President of the United States is one of the highest honors and privileges our culture can bestow. These positions of prominence in our society should be sought to serve one's country and not provide a lifetime career designed to increase personal wealth and accumulate power for the sake of vanity.

5.  A complete reformation of the United States Tax Code to require ALL citizens to pay a fair share of a progressive, graduated income tax by eliminating loopholes, unfair tax breaks, exemptions and deductions, subsidies (e.g. oil, gas and farm) and ending all other methods of evading taxes. The current system of taxation favors the wealthiest Americans, many of whom, pay fewer taxes to the United States Treasury than citizens who earn much less and pay a much higher percentage of income in taxes to the United States Treasury. We, like Warren Buffet, find this income tax disparity to be fundamentally unjust.

6. Medicare for all American citizens or adoption of a single-payer healthcare system. The Medicaid program, fraught with corruption and fraud, will be eliminated except for the purpose of providing emergency room care to indigent non-citizens who will not be covered by the single-payer healthcare system.

7. New comprehensive regulations to give the Environmental Protection Agency expanded powers to shut down corporations, businesses or any entities that intentionally or recklessly damage the environment and/or criminally prosecute individuals who intentionally damage the environment. We also demand the immediate adoption of the most recent international protocols, including the "Washington Declaration" to cap carbon emissions and implement new and existing programs to transition away from fossil fuels to reusable or carbon neutral sources of energy.

8. Adoption of an immediate plan to reduce the national debt to a sustainable percentage of GDP by 2020. Reduction of the national debt to be achieved by BOTH a cut in spending to corporations engaged in perpetual war for profit, the "healthcare" industry, the pharmaceutical industry, the communications industry, the oil and gas industry, and all other sectors that use the federal budget as their income stream. We agree that spending cuts are necessary but those cuts must be made to facilitate what is best for the People of the United States of America, not multinational and domestic corporations who currently have a stranglehold on all politicians in Washington, D.C. in both parties.

9. Passage of a comprehensive job and job-training act like the American Jobs Act to employ our citizens in jobs that are available with specialized training and by putting People to work now by repairing America's crumbling infrastructure. We also recommend the establishment of an online international job exchange to match employers with skilled workers or employers willing to train workers in 21st century skills. In conjunction with a new jobs act, reinstitution of the Works Progress Administration and Civilian Conservation Corps or a similar emergency governmental agency tasked with creating new public works projects to provide jobs to the 46 million People living in poverty, the 9.1% unemployed and 10% underemployed.

10. Implementation of a student loan debt relief forgiveness program. Our young students are more than $830 billion in debt from education loans alone with few employment prospects due to financial collapse directly caused by the unbridled and unregulated greed of Wall Street. Interest on these debts should be reduced and  deferred for periods of unemployment and the principal on these loans reduced or forgiven by using a Wall Street corporate tax surcharge as reparations for their conduct leading to the economic collapse of 2007-2008 and current worldwide recession. The tax code must also be amended so that employers will receive a student loan repayment tax deduction for paying off the loans of their employees.

11. Immediate passage of the Dream Act and comprehensive immigration and border security reform including offering visas, lawful permanent resident status and citizenship to the world’s brightest People to stay and work in our industries and schools after they obtain their education and training in the United States.

12. Recalling all military personnel at all non-essential bases and refocusing national defense goals to address threats posed by the geopolitics of the 21st century, including terrorism and limiting the large scale deployment of military forces to instances where Congressional approval has been granted to counter the Military Industrial Complex's goal of perpetual war for profit. The annual estimated savings of one trillion dollars per year by updating our military posture will be applied to the social programs outlined herein to improve the quality of life  for human beings rather than assisting corporations make ever increasing profits distributed to the top 1% of wealth owners.

13. Mandating new educational goals to train the American public to perform jobs in a 21st Century economy, particularly in the areas of technology and green energy, taking into consideration the redundancy caused by technology and the inexpensive cost of labor in China, India and other countries. Eliminating tenure and paying our teachers a competitive salary commensurate with the salaries of employees in the private sector with similar skills because without highly skilled teachers, there will never be a highly skilled workforce.

14. Subject to the elimination of corporate tax loopholes and exploited exemptions and deductions stated above, offering tax incentives to businesses to remain in the United States and hire our citizens rather than outsource jobs. An "outsourcing tax" should be introduced to discourage businesses from sending jobs overseas. Providing tax breaks to companies that invest in reconstructing the manufacturing capacity of the United States so that we again make everyday products in the United States rather than importing them from countries like China and India.  

15. Implementing immediate legislation and WTO intervention if need be, to encourage China and our other trading partners to end currency manipulation and reduce the trade deficit.

16.  Immediate reenactment of the Glass-Steagall Act and increased regulation of Wall Street and the financial industry by the SEC, FINRA and the other financial regulators. The immediate commencement of a Justice Department criminal investigations into the Securities and Banking industry practices that led to the collapse of markets, $700 billion bail-out, and financial firm failures in 2007-2008. Introduction of a small financial transaction fee to collect a tax on each and every stock trade and all other forms of financial transactions. Uniform regulations limiting what banks may charge consumers for ATM fees, the use of debit cards and other miscellaneous "fees". Ending the $4 billion a year "hedge fund loophole" which permits certain individuals engaged in financial transactions to evade graduated income tax rates by treating their income as capital gains which are taxed at a much lower tax rate (approximately 15%).

17. Adoption of a plan similar to President Clinton’s proposal to end the mortgage crisis and instead of the Federal Reserve Bank continuing to lower interest rates for loans to banks who are refusing to loan to small businesses and consumers, the Federal Reserve Bank shall buy all underwater or foreclosed mortgages and refinance these debts at 1% or less to be managed by the newly established Consumer Financial Protection Bureau (and foreclosure task force described below) because 1% or less is the interest rate the Federal Reserve Bank loans to the banks directly who hoard the cash rather than loan it to the People and small businesses. The immediate formation of a non-partisan commission, overseen by Congress, to audit and investigate the economic risks and possibility of eliminating the privately owned Federal Reserve Bank and transferring its functions to the United States Treasury Department.

18. An immediate one year freeze on all foreclosures to be reviewed by an independent foreclosure task force appointed and overseen by Congress and the Executive Branch (in conjunction with the  Consumer Financial Protection Bureau ) to determine, on a case by case basis, whether foreclosure proceedings should continue based on the circumstances of each homeowner and the propriety of the financial institution's conduct when originating the loan.

19. Subject to the above ban on all private money and gifts in politics, to enact additional campaign finance reform requiring new FCC regulations granting free air time to all candidates; total public campaign financing to all candidates who obtain sufficient petition signatures and/or votes to get on the ballot and participate in the primaries and/or electoral process; shortening the campaign season to three months; and allowing voting on weekends and holidays; issuance of free voter registration cards to all citizens who are eligible to vote so that they cannot be turned away at a polling station because they not have a drivers license or other form of identification and expanding the option to mail-in voter ballots in all elections especially for the elderly and disabled voters who cannot physically get to polling places.

20. An immediate withdrawal of all combat troops from Iraq and Afghanistan and a substantial increase in the amount of funding needed for veteran job training and placement. New programs dedicated to the treatment of injuries sustained by veterans. Our veterans are committing suicide at an unprecedented rate and we must help now.

Sat, 10/22/2011 - 20:14 | 1800744 Navigator
Navigator's picture

Very good research Quixotic.  You've correctly identified a list of "suggestions" that "may or may not" become some sort of official communication from OWS by the middle of next summer.

This is not a list of demands.  OWS HAS MADE NO I tried to tell Arkady, above.

By the way, are you posting this list of suggestions because you agree with them?  Are you posting them because you disagree with them?

Why do you agree or disagree with the ones you have an opinion on?

I suspect you're part of the 99% like....about 99% of please post your opinions.

Sat, 10/22/2011 - 20:29 | 1800785 Pure Evil
Pure Evil's picture

I think OWS's main demand is that New York City clean up all the trash and feces left behind by the protestors.

And, if OWS has no demands, then what is the purpose of their protest?

Is it all just a 60's hippie revival where everybody gets together to smoke some grass and share the same slutty whore?

Sat, 10/22/2011 - 20:40 | 1800811 Navigator
Navigator's picture

Maybe you should read actual news Pure.  

The NYPD were going to shut down OWS last week using the cleanliness issue as an excuse, but they checked out the park and found it to be spotless.  The OWS people had even cleaned chewing gum off the sidewalk that the city hadn't cleaned.

Maybe you should go to an OWS occupation and decide on your own what the purpose is.  I can't tell you if you can't decide on your own.

Nope, no drugs....but it does sound like you're a fan of Faux.

Sat, 10/22/2011 - 22:14 | 1801036 midtowng
midtowng's picture

How long before people like you start accusing OWS of rape and murder based on a source of some obscure right-wing blog?

Sun, 10/23/2011 - 09:34 | 1801568 Raging Debate
Raging Debate's picture

Navigator. Wish lists that contain the words "Must" are demands. I am no lawyer but this is a list of demands. It is a good wish list and list of demands that would rebalance trade and the economy and perhaps save 2 B people from dying off and the rest eating bugs and having radiated heads for a year.

 Because if that is the consequences of leaderships decisions going back the last twenty years, I would expect the sentencing to meet the crimes. So it is a wish list that is also inclusionary even though the marketing message is 99% vs. 1%. One portion of the demands states cause of inequality while the other makes an appeal to avoid violence or mitigate loss.

BUT THESE ARE DEMANDS. Quix is right and you are wrong. What, do the people have to create a special ink raised seal and stamp a document? This is a manifesto, a preamble to a new declaration of independence. I am proud of these people for their initial restraint because if and when it comes down to the dying over God given rights, a society is much better attempting loss mitigation first as all other actions exacerbate the losses on both sides (99% and 1%). Considering the death toll in the age of massive weapon system, the casualties will also be 99 to 1. It is the folly of the 1 to really believe they'll be safe anywhere on earth. Too late for a moon base perhaps. As for the lack of an 'official' document and it being in electronic form, I thought print was becoming dead...

Sun, 10/23/2011 - 14:11 | 1802270 Navigator
Navigator's picture

Sure enough're not a lawyer.

If, for example, a man suggests to his wife that maybe they should demand a rent reduction from their landlord next that a demand to the landlord that he reduce their rent?

That's what the 2nd list Quixotic found is...a list of "suggestions" that "may or may not" be made part of a communication that goes outside of OWS late next summer.

And, this was Quixotic's 2nd attempt at the question.  His first try was to link to the same link Arkady used.  That link begins with OWS disavowing the post of one poster and explaining that OWS HAS MADE NO DEMANDS and the poster's views are his own view and have no link to OWS.

Apparently there are a lot of people, including you, who seem to really, really, want OWS to put out demands.  Why do you suppose that is?  I'm not advocating for OWS here...except to point out that anyone who desperately wants to be able to say that OWS has published demands is not being accurate.

Sat, 10/22/2011 - 21:30 | 1800936 Ned Zeppelin
Ned Zeppelin's picture

Sounds like a good start.  Is prosecution of Hank Paulson on the list yet? 

Sat, 10/22/2011 - 23:04 | 1801123 SWCroaker
SWCroaker's picture

Of your 20 points, some right; many wrong.  The solution isn't to dream that the government will finally stand up and protect the people, through regulations and laws, but that people will finally stand up off of their hind legs, stop looking like dumbfounded sheep, and firsthand present fraud with the the just reward of failure.  They need to insist that matters reside in *their* hands, not the government, or they'll always be subject to corruption and graft.

Small, limited government is the answer.  The problem isn't that they haven't been policing things right, it is that they've been pretending to police things while we pretend that they're on our side.  Utter BS, and the best way to fix it is to remove the rules and pretense, and let the chips brutally fall where they may.  Gov get out of the way; we've banks to run, brokerages to boycott, crooked lawyers and judges to lynch, exchanges to leave high and dry because they treat our funds as raw meat for the benefit of their friends.  People must collectively stop being fleece-able and gullible and looking for free mana from the sky; outlawing cons and scams when the government is the #1 crook is beyond naive, and using the power of majority to wrest property from a minority is flat out wrong, even if the minority is that of high income citizens.

I see your outrage; where are your morals?


PS.  Technically, I *am* part of the 1%, if your definition is based purely on income.  If that is all you need to judge me as guilty, and seize from me what I have worked for, then I pity you for the wreck of a society you wish to create.  Do it, and watch me wave bye-bye as I expatriate.  (I fervently wish the OWS would clue into to the relevant nicety of *how* people have obtained their wealth, and focus on stamping out ridiculously parasitic ways and methods, rather than the simple *fact* of wealth; I personally feel like I've more than earned every penny I have, against some substantial odds and through fair and upright means.  So my wealth should be given to others because I have it, they see it, and they outnumber me?  Right...)

PPS.  Ned Zep, my reply to the 20 points thread ended up as a reply to your post instead.  You aren't the "you" I'm replying to; please accept my apology for fumbling.

Sun, 10/23/2011 - 09:52 | 1801598 Raging Debate
Raging Debate's picture

I totally agree with you SWCroaker. I am not in 1% but I am told I was born with some good gifts to help get me there. So what I did was begin funding utilities that from an investment stand-point, diffuse tensions by spreading information far and wide. If your guilty of something, it sounds like negligence or the encapsulation effect. It didn't effect you then so you didn't do anything about it. I am guilty of that too. Actually, all 300 M of us in America are. But that its. Such guilt is now no reason to permanently welcome the communist manifesto or return to the Fascist model of the Central Bank system. I encourage you to fund the evolution of this system.

For a couple of years, I was pissed at people like Marc Faber for being afraid of directly funding independent media. It seemed cowardly but I now realize the extent of the risks he took. Now the investment and political climate is right to invest in independent, digital media as a sector. Even Jay Rockefeller misses his event-based news and facts. Lack of such is a consequences of actions to suppress the 1st Amendment. Any God given right will snap-back in place even harder like a rubber band if stretched too far. Reflexivity theory by Soros.

 But if I continue using Marc Faber as an example, he DID take some risk and publically state the banking system must be broken up. Same with Soros. Now finally Murdoch is stating it. The chap played too dirty in the Faustian Bargain so now gets the devils due.

So if you want to seperate yourself from the .001 that blatantly use government to steal - AKA Fascism, you SHOULD fund trying capitalism for once, otherwise doing nothing means a continuation of Fascism in the short term and guaranteeing communism in the medium term. Moving to China or Russia is not going to help you. They also use Fascism but veil it in a new marketing term of "State Run Capitalism". The rulers of this world do forget the Internet was a pretty big disruptive technology in terms of education and preserving status quo. You could move to a small island and that may keep you physically safe for a few years until either East or West empires demand your property. Your choice could be to completely join the Fascists and annihalate the plebes for a couple more percentage points of asset accumulation but that does require a pretty sadistic mind which you don't appear to be, at least at surface glance..

Sun, 10/23/2011 - 08:22 | 1801521 uniman
uniman's picture

All you're doing is stirring the same pot of shit over and over again.  You cannot reform Leviathan.  Like an old mattress from the local crack house, infested with God knows what (and even he's not sure), it's best burned and replaced with new.  Here's an alternative ....


The existing political system is simply unacceptable to us. The privileged ones have taken far, far more than their fair share of the available natural resources and have systematically and intentionally deprived us of our freedom.  This system is not merely broken.  It is so profoundly antagonistic towards our rights and well-being that nothing short of our secession will cure these evils.  These are our demands:

1. We Demand the Return our Freedom
The fundamental root of the problem that we the people face is that we have been deprived of our freedom so therefore our first general demand is for the return of that freedom.  Our loss of freedom is evident in that our efforts to live our lives are being massively, systematically, and intentionally thwarted in the following ways:

  • Too many actions we wish to take are prohibited.
  • Too many actions we wish to avoid are mandatory.
  • We are deprived of our rightful share of natural resources.
  • Governments, media, and “big ed” intentionally lie to us via explicit deceit, logical fallacy, and by rewriting the facts of history.
  • Governments are systematically poisoning the strength and relationships of business, family, and society in general.

These evils are unacceptable and will no longer be tolerated by us.

2. We Demand Respect for our Inalienable Rights
Another important element of this puzzle is the concept of inalienable rights.  “Inalienable” means that we cannot loose or dispose of these rights.  We cannot sell them and they never expire.  But most importantly, no political machination or trickery can deprive us of these rights.  Political words and “law” that purport to “prove” that any of our inalienable rights are lost or even diminished are absurd on their face.

3. We Demand to be Governed Only by our Explicit Consent
One of the most important inalienable rights is our right to consent to be governed or not.  I for one never recall consenting to any of what is going on in today’s world.  And in the unlikely event we did, we hereby revoke said consent now. We were born into this system and had nothing to do with creating it, we do not get to share in its abundance nor are we responsible for any of its misdeeds.

4. We Demand our pro-rata Share of Natural Resources
The privileged ones live a good life because they control all of the natural resources while we live a miserable life because we must subsist on the scraps.  We do not covet the hard work and creativity of others.  But nobody created the natural resources and we demand our fair share of them.

5. We Demand the Right of Free Passage
The privileged ones have tiled the Earth with cages and fences and passports and visas.  Nobody has the right to draw lines on a map and then tell us that we have to get permission to cross these lines.

6. We Demand the Right of Free Trade
We demand the recognition of our rights to produce, buy, and sell, whatever we want, to whomever we want, under any conditions that are mutually agreed upon.

7. We Demand the Right of Free Communication
We demand the right of free communication without any prior censorship or interference.

8. We Demand Privacy
We demand that our homes, our persons, our personal property, and our communication is to be private.

9. We Demand to be Left Alone
Which part of don't fuck with us don't you get?

10. We Demand the Right of Self Defense
The privileged ones live a very secure life inside their war machine.  We demand that our right of self-defense be recognized as well.


Sat, 10/22/2011 - 22:10 | 1801029 midtowng
midtowng's picture

The fact that you think that ZH is full of "hard leftists" just shows how far right you really are.

Sat, 10/22/2011 - 18:27 | 1800538 anony
anony's picture

What I want to do about, the only thing that can be done about it, is instill a cold, icy cold FEAR into the minds of the top 1%.

They, like anyone else, they won't do anything until they FEAR me (you, everyone who is losing out to these kleptocrats). No other motive to act on their part, to stop buying the government employees we vote to send into their representative roles, will work.  They won't do it for love, humanity, morality, ethicality or anything else but FEAR.

Since there is no way I (you, everyone) can create FEAR in them, without resorting to SAMs aimed at their most treasured locales while they are in residence, or the full metal jacket of a high-powered rifle that places a quarter inch hole in their foreheads, there is nothing to be done.

No Exit.



Sat, 10/22/2011 - 21:31 | 1800939 Ned Zeppelin
Ned Zeppelin's picture

The time is coming.  Popular discontent is on the rise, and mere promises from politicians for "Change" will not be enough. 

Sat, 10/22/2011 - 18:29 | 1800542 kaiserhoff
kaiserhoff's picture

The WSJ had a not bad article on this topic today.  Income in the top 1% is highly unstable, like everything else in this country.  There is always a top one percent, but they are not the same group for long.  Certainly matches my experience doing tax work for contractors and farmers. 

Sat, 10/22/2011 - 22:16 | 1801037 midtowng
midtowng's picture

The WSJ has overlooked the fact that social mobility in America is at its lowest level in decades, and is at the bottom of all other 1st world countries.

Sat, 10/22/2011 - 18:29 | 1800543 thatthingcanfly
thatthingcanfly's picture

This article fails on a critical thought near the middle: "If you treat money as a commodity, which it should be, then like any commodity there is a price."

Money is not a commodity. It is a fungible, portable store of wealth and medium of exchange. As such, it is essential for orderly functioning of an economy for money to remain stable, rather than volatile - like the price of corn or steel. When corn is more scarce, its price goes up in terms of money. When corn is plentiful, its price goes down. But when money is allowed to fluctuate in its value the same way corn does, as has happened to the USD since FDR took us off the gold standard, you get chaos in markets. There can be no bedrock measurement of value if money is just another competing commodity.

This is the central problem with our financial world today. We don't use "real" money any more.

Sat, 10/22/2011 - 18:44 | 1800569 whiskeyjim
whiskeyjim's picture

I read that also. But in a way, he is agreeing with you. He is in effect saying that destroying the dollar and the value of it through interest rates is what is hurting the poor. So despite calling money a commodity, he kind of ends up at the right place.

The Fed is using the dollar as a cudgel and to prop up the banks. You can not do that and not regressively hurt the poor and their capital formation.

One thing the writer does not mention is that as the rich are at the top of the chain, they are also the first to preserve their raises and the last to get fired. They also do not have to rely on credit exposure which is hurtful during recessions. So part of the disaster of artificially low interest rates is increased private debt that doubly hurts the poor and middle class when we have financially induced recessions, again the fault of the Fed. And we have had a number of them since Breton Woods. In fact, ALL recessions are now financial.

Sat, 10/22/2011 - 18:51 | 1800582 arkady
arkady's picture

"Therefore banks benefit first and foremost as they are the recipients of newly created money, while the rest of us poor shmucks see this increase in money through price increases. "  

I suppose that is the top fo the chain. 

Sat, 10/22/2011 - 18:46 | 1800571 arkady
arkady's picture

Hmm...mediums of exchange are by their nature commodities.  If we switch 100% to gold money, gold is still a commodity.

Sat, 10/22/2011 - 18:49 | 1800572 arkady
arkady's picture

<sorry, double>

Sat, 10/22/2011 - 18:29 | 1800545 ex VRWC
ex VRWC's picture

Easier to understand right here - the cause of wealth inequality:


Sat, 10/22/2011 - 18:31 | 1800547 Westcoastliberal
Westcoastliberal's picture

Nice try, but your arguement doesn't make sense.  What really is causing the unemployment is greedy motherfuckers who, even at the expense of crashing their own companies, did things to artifically stimulate short-term income thus triggering massive bonuses.  Taxpayers are eating the results in way too many ways, including unemployment and depletion of savings.  Many people have been rendered homeless; entire families.  The Human suffering has finally reached the point where these people and those who care for them have had enough and are making their feelings known.  What happens next depends on how seriously their actions are taken into account in effecting change.  As I understand it, these required changes will be enumerated as the result of general assemblies meeting across the country.

Sun, 10/23/2011 - 09:12 | 1801555 weinerdog43
weinerdog43's picture

Well said.  One would hope the example of M. Gaddadfi should start to make the Bob Rubins of the world start to fear us just a little.

Sat, 10/22/2011 - 18:34 | 1800554 bankruptcylawyer
bankruptcylawyer's picture

the end is nigh!

Sat, 10/22/2011 - 18:35 | 1800557 quacker
quacker's picture


The engine of wealth inequality is of course that happy cartel of privately owned international banking interests aka the Federal Reserve.

We’re used to looking at the Fed in terms of its policies, but I think the correct way to view it is as a religious organization.

The Fed holds on to an economic ideology so rigorously, so dogmatically, so wholly infirm in its ability to even consider another way, that it in fact is the most fundamentalist organization operating in our society today. It will not even consider any path that makes bankers and rich bondholders own up to their own gambling debts. Doesn't matter how many millions are impoverished, how many may die in social unrest across the globe and some day here - no amount of human suffering can shake it from economic dogma held so tightly it crosses into religion.
Anwar Al-Bernanke is absolutely unwilling to consider any path that does not put the people on the hook for gambling losses of the bankers, and he holds to this with a religious zeal equal to that of the Taliban. 
Pretty much everything we're told is backwards. The radicals are the central bankers of the Western world. They're the ones wearing the turbans. They're the ones unshakable in their ideology. They're the ones that would unleash untold suffering for the preservation of their religion. They are the true chains on humanity. 
What a simple and human thing it is for those who are already rich to own up to their own bad bets. But this simple concept is too much for Anwar Al-Bernanke and his buddies across the globe to allow. Their rigid, unmovable ideology only allows for finding schemes to spread banker losses to the people. No matter how many more mountains of debt have to be added to previous mountains of debt, no matter how many people lose homes, jobs, businesses and savings – nothing is more important to Anwar than making sure bankers are insulated from their own mistakes. 


Sat, 10/22/2011 - 18:47 | 1800575 whiskeyjim
whiskeyjim's picture

Why don't you think the author is saying that? Who is destroying the dollar and artificially lowering interest rates, which is the point of the article? Barney the idiot Frank?

BTW, I like your rant.

Sat, 10/22/2011 - 20:19 | 1800769 quacker
quacker's picture

Thanks. I didn't mean to imply the author WASN'T saying that, if that's how it sounded. I should have been more careful .. I was just eager to rant.

I'm also eager to go back in time to the Constitutional Convention and tell the authors that apparently just stating that only Congress has the authority to issue coin and regulate the value therof will not be enough. Sooner or later will come the Christmas envelopes stuffed full of goodies from the private bankers, and lo and behold the unholy abomination that is the Federal Reserve will get shoved down our throats in a middle of the night vote when no one is paying attention.

So you better stipulate in five different places that private bankers NEVER get to control the public currency or set interest rates. Not through charter, commission, delegation, osmosis, or any other machination they can come up with.  

Sat, 10/22/2011 - 18:37 | 1800561 Snakeeyes
Snakeeyes's picture

Austrian economics indeed!

Slow wage growth coupled with higher real inflation produced INFLATION GREATER THAN WAGE INCOME GROWTH EVERY YEAR SINCE 1987!

Sat, 10/22/2011 - 18:39 | 1800563 Revolution_star...
Revolution_starts_now's picture

"No Exit."

There is no out, only in.


There fixed it for ya.

Sat, 10/22/2011 - 19:31 | 1800671 real
Sat, 10/22/2011 - 18:39 | 1800564 Variance Doc
Variance Doc's picture

I stopped when the author stated interest is the price of money and money should be treated as a commodity.  Interest is not the price of money, it is the price of credit.  Money is not a commodity, it is a medium of exchange as a result of the division of labor.  By definition, FRNs are not money, since they do not store value (thanks private Fed fuckers!)

Sat, 10/22/2011 - 18:42 | 1800566 thatthingcanfly
thatthingcanfly's picture

Beat you to it. See my post at 18:29.

Do NOT follow this link or you will be banned from the site!