Nail
Biting Time
By David Truskoff
23 September, 2007
Countercurrents.org
Hallelujah!
The Fed cut the interest rates. Newspapers clear across the USA had
front page Headlines such as, "Rate drops, Dow leaps. The New York
stock exchange gained more than three hundred points.
All that it means to the
average American is that the rich will get more rich and the poor will
get poorer. For days before the increase actually happened it was expected
by those close to the market. If you had your computers ready and bought
early and bought big can you imagine the profits that you would have
gained? Let’s say you invested $250, 000 on 9/18 or 9/17/2007
and the market went up as you expected over 300 points; your profit
would be tremendous. Of course you would have to be the person or organization
that could have the $250,000 to invest in the first place.
After the market went down
50 points on the twentieth the Associated Press ran this story, "profit
taking sends stocks lower." Wall street had driven the Dow Jones
industrials up more than 400 points in just two days after the Fed’s
half-point rate reduction, so it was expected that investors would eventually
stop to cash in gains."
The fact is that the foundation
the market was built on was the premise that if workers put their money
into the market to help companies grow it would mean more jobs and a
better economy. That has not been the case for a long time. If the average
worker puts money into his company that same company may send his job
overseas. The Average worker does not benefit from the stock market
gyrations.
Mr. Greenspan the ex chairman
of the United States Federal Reserve Board, which oversees the Federal
Reserve Bank, said In his book, that he worries if wages for the average
US worker do not start to rise more quickly political support for free
markets may be undermined.
Greenspan also said the chances
for a recession in the United States were still "somewhat more"
than 1 out of 3, despite the cut in the Fed's overnight federal funds
rate to 4.75 percent, but cautioned it was hard to be more precise.
In the American game of football,
when a quarterback is running to his right and does not see a defender
about to hit him on his left it is called being blind sided. That is
exactly what Wall Street has done to the average worker in America.
They are made to think that they are running for a score when in fact
they are losing ground.
When Alan Greenspan was on
the Jon Stewart program (9/19/2007) he admitted that the need to stimulate
the economy was to get the people to have the confidence to spend more.
Ever since the market crash of 1929 Americans have always been told
that the market crash was the reason for the great depression. The reason
for the market crash and the roles of the uncontrolled robber barons
is seldom discussed. So Americans are led to believe that if the market
is doing well, America is doing well.
On the same program Greenspan
said that the big boost in the market was to give the American public
that confidence.
In 2006 USA Today ran this
story, "U.S. income inequality has risen to such a level that "there
are signs that (it) is intensifying resistance to globalization, impairing
social cohesion, and could, ultimately, undermine American democracy,"
San Francisco Federal Reserve Bank President Janet Yellen said.
Federal Reserve Chairman
Ben Bernanke recently cautioned that without steps to smooth the effects
of a changing economy, people could "become less willing to accept
the dynamism that is so essential to economic progress. Although we
Americans strive to provide equality of economic opportunity, we do
not guarantee equality of economic outcomes, nor should we," Bernanke
said. "That said, we also believe that no one should be allowed
to slip too far down the economic ladder."
The last twenty years have
shown the top 300,000 Americans collectively enjoyed almost as much
income as the bottom 150 million Americans. Thomas Piketty of the Paris
School of Economics, said such growing disparities were significant
in terms of social and political stability.
Prof. Emmanuel Saez, the
University of California, Berkeley, economist who analyzed the Internal
Revenue Service data, said such growing disparities were significant
in terms of social and political stability. "If the economy is
growing but only a few are enjoying the benefits, it goes to our sense
of fairness," Professor Saez said. "It can have important
political consequences."
One can now see why the mass
media, in particular Rupert Murdoch’s world wide media empire,
in the USA and UK and the Australian press are almost daily running
stories about the evil of Communism. They very often tell their readers
that Communism is dead. If that is so why do they refuse to bury it?
The answer is that it is nail-biting time. They know as those quoted
above know. A social upheaval is on the horizon and no one knows who
or what is going to fill the void.
USA is no longer a world
leader and has not been such since it lost the war in Vietnam.
A political surge is growing
in Asia, Latin America, Eastern Europe and yes even in the UK toward
new leadership and new politics.
www.erols.com/suttonbear
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