Tuesday, May 13, 2014

The Games People Play Part 4 - Voodoo Economics - Who Loses?


Oh the Games People Play Now

Every night and every day now
Never meaning what they say now
Never saying what they mean now

Where is Dr. Who when you need him?  We gotta get out of this place...

There are a few things they forgot to teach us in Economics 101 and they have nothing to do with algorithms, exchange rates, return on investment or earned income.  You see, basic economics is a mathematical function but the underlying factor in American Capitalism has nothing to do with mathematics.

Our system of capitalism has fallen into the age old trap of being controlled by ethics and morality rather than math tables and the masters of capitalism are those who manipulate the system for only one purpose, the accumulation of wealth and the power that comes with it.

Once upon a time in America there was such a thing as a fair and relatively honest system but it has long been banished to the land of fairy tales and mythology as if it never really existed in the first place.

Now we eat, sleep and dream the lies that have been implanted in us as if we never knew better in the first place.  Economics must be derived from the word control because that is what it is all about and because control is what the 1% of the population have over all the money earned by the 99% .

In my studies and experience over the years there are a handful of guiding principles I found in all those who make their fortunes on the backs of the middle class.

1. OPM -  Always use "Other People's Money" to make money.
2. DOY -  Always make the little people "Dependent On You".
3. DTBS - Always "Dazzle Them with Bull Shit" to keep them confused.
4. WCF -  Always "Work to Create Fear" to keep people in line.

As a result, if we have any disposable income, money we don't need to survive, we invest it in the stock markets based on the promise to grow your portfolio.  Then, as a card-carrying member of what I call the Raggedy People, we are denied the right to buy new stock issues at the offering price.

Nor are we allowed to have our money invested by the massive computer generated strategies of the super rich (high frequency trading) in which they intercept your pension fund strategy and beat you to the punch.

We are drowning in financial news, analysis and misinformation.  What we need is a little truth.  Here is some.

On October 9, 2007 the Dow Jones hit 14,164.  By March 6, 2009 it collapsed to 6,443, a loss of 54% of it's value.  That is what happened to your investments and pension funds other than your home equity which was also crashing.

As of today, May 13, 2014 it has risen to 16,715, an astonishing increase of 259% in just shy of 4 years.  Ask yourself, do you now have almost 3 times as much money from investments, or in your pension or 401k as you did just 4 years ago?

As far as stocks, the wealthiest 10% of Americans own 80% of all stock.

Just this year it was reported that the wealthiest 1% of Americans possess 40% of the nation's wealth while the bottom 80% possess 7% of the wealth.  The other 19% just below the super rich possess 50.5% of the nation's wealth.  As a result, the top 20% control 90% of all the nation's wealth.

Of course these are the people sucking the stock market profits up.

So why invest in the market - don't.  You are only padding the pockets of those who could care less about you.  And while you are at it demand that Congress protect the pension and 401k funds managed by the rich as these funds seem to make a lot less money than the stocks owned by the people doing the managing.

It is too easy to use your money to manipulate the market so the high frequency boys can steal a few hundred million or billion dollars a day at your expense.

What can we do?  Be aware of how you are being used.  Keep abreast of the market fluctuations and demand to know from your broker or pension manager why you aren't benefiting just like the rich.

Pay attention to all the things they say are right like inflation, are you really not seeing massive increases in health care and food, and wild changes in gasoline?  How could we be at a 1-2% inflation when the price of meat can double?

The unemployment rate is down but not because of economic recovery but because millions of  people have dropped out of the labor force because they can't find jobs.

In America all people are entitled to equal opportunity but when it comes to capitalism that is far from the truth.  Demand answers to how your money is being manipulated.  Demand now before it is too late.


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