Read the Beforeitsnews.com story here. Advertise at Before It's News here.

By CoyotePrime (Reporter)
Contributor profile | More stories

Story Views
Now:
Last hour:
Last 24 hours:
Total:

Another Billionaire to the Rescue

Monday, April 22, 2019 19:57

% of readers think this story is Fact. Add your two cents.

“Another Billionaire to the Rescue”

by David Stockman

“Among the rich you will never find a really generous man even by accident. They may give their money away, but they will never give themselves away; they are egotistic, secretive, dry as old bones. To be smart enough to get all that money you must be dull enough to want it.”

– G.K. Chesterton, “A Miscellany of Men” (1912)

“Ray Dalio seems to be the latest aspirant to a coveted place in the Acela Corridor Establishment, the wise and benevolent billionaire. Warren Buffett’s been the go-to for a long time, nearly 30 years. Others have presented themselves recently, including Starbucks (Nasdaq: SBUX) founder and presidential candidate Howard Schultz. Michael Bloomberg is always looming. And, of course, Flyover America already identified its favorite, Donald Trump.

But even in that light, Dalio’s recent appearance on what’s still America’s most-watched news program brought a whole new level of billionaire bullshit. Dalio – whose $160 billion hedge fund is the largest in the world and whose personal net worth is a tidy $18 billion – told millions of “60 Minutes” viewers that the “American Dream” is dead, that capitalism is in desperate need of reform, and that wealth, income, and opportunity maldistribution in the U.S. is so severe that the President should call a national emergency. He followed up by telling Bubblevision viewers that people like him need to be taxed good and hard. But not once did he mention the overwhelming cause of the baleful condition he rightly identifies.

Wealth distribution in America started to go to hell in a handbasket about 1987, shortly after the 22% market meltdown of October 19 that year. Alan Greenspan had taken over the Federal Reserve in August. “Black Monday” led to his discovery of the printing press in the basement of the Eccles Building. Since then, the share of national wealth held by the top 1% has gone from 34% to 40%. The bottom 90% now holds just 21%, down from 33%.

Folks, the essential ideas of capitalism didn’t change during that interval. Nor did Ronald Reagan’s so-called trickle-down tax cut policy skew even more to the rich. In fact, the low-water mark on the top marginal tax rate was 28%, set by the 1986 tax reform act. It’s risen steadily since then, to 42% as of December 2017.

Still, the best explanation Dalio could muster was that people are being left behind by technology. In Dalio’s conception, technology is some sort of economic neutron bomb – that is, the jobs are wiped out, but production is left standing and keeps growing. But that hasn’t happened. Manufacturing output in February 2019 was no higher than it was in March 2007… That’s a 12-year round-trip to square one. And it’s the primary reason high-paying manufacturing jobs have disappeared.

It’s not about “technology” or “robots” or “automation,” which have been with us for decades. We’ve seen five business cycles since the early 1970s. In each case, output that was temporarily lost during the recession. But it was quickly recouped, with industrial production rising steadily higher with each recovery. Overall, the physical index of manufacturing output rose by 3% per year for 35 years.

When the trend rate of output growth abruptly downshifts from 3% to 0%, something is surely wrong. But it’s not robots replacing workers. Nor was it an outbreak of asceticism among American households. During the 12 years during which industrial output grew by 0%, real household consumption of non-durable goods rose by 17% and of durable goods by 52%. There’s only one way to explain this asymmetry.

The U.S. economy, on the margin, has imported essentially 100% of growth in goods consumption since the pre-crisis peak. It’s because of offshoring and bad money. The Fed kept the lower 60% of households treading water with cheap mortgage debt, underwater car loans, unrepayable student debt, and a tail-chasing rise of higher-cost credit card finance. Artificial debt-fueled support of living standards doesn’t make for durable prosperity.

Easy money is no way to the American Dream – for any but the 1%. Main Street has been so badly pummeled by our monetary central planners that hardly any “breadwinner” jobs have been created during the 21st century. We’ve seen 9,700 jobs per month in an economy where the working-age population has been growing by about 200,000 per month.

Click image for larger size.

Capitalism doesn’t need either the “saving” or the “reforming” folks like Dalio suggest. Nor is technological progress eating the middle class alive. The only thing that’s really changed in the last few decades is central banking. It’s been taken over by Keynesian economy-wreckers.”

- http://deepstatedeclassified.com/

◆

And despite all the lessons of history they refuse to

understand where this delicacy eventually comes from…

Source: http://coyoteprime-runningcauseicantfly.blogspot.com/2019/04/another-billionaire-to-rescue.html

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)

Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!

Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).

Comments

Online:
Visits:	1,603,888,823
Stories:	8,151,670