July's employment numbers came in better than expected (negative 247,000) lowering total unemployment from 9.5 per cent to 9.4 per cent. That's good. Things are getting worse at a slower pace. But what's striking about the BLS report is that there's no jobs surge in any sector of the economy. No signs of life. Outsourcing and offshoring are ongoing, and downsizing the path to profitability. That's why revenues are down while profits are up. Businesses everywhere are anticipating weaker demand. The jobs report is a one-off event; a lull in the storm before the layoffs resume.
Unemployment is rising, wages are falling and credit is contracting. All the money is flowing upwards to the gangsters at the top. Here's an excerpt from a recent Don Monkerud article that sums it all up:
"During eight years of the Bush Administration, the 400 richest Americans, who now own more than the bottom 150 million Americans, increased their net worth by $700 billion. In 2005, the top one per cent claimed 22 per cent of the national income, while the top ten per cent took half of the total income, the largest share since 1928.
"Over 40 per cent of GNP comes from Fortune 500 companies. According to the World Institute for Development Economics Research, the 500 largest conglomerates in the U.S. "control over two-thirds of the business resources, employ two-thirds of the industrial workers, account for 60 per cent of the sales, and collect over 70 per cent of the profits."
In 1955, IRS records indicated the 400 richest people in the country were worth an average $12.6 million, adjusted for inflation. By 2006, the 400 richest increased their average to $263 million, representing an epochal shift (more than a 2000% increase) of wealth upward in the U.S." ("Wealth Inequality destroys US Ideals," Don Monkerud, www.consortiumnews.com/2009/070409a.html click here)
Working people are not being crushed by accident, but according to plan. It is the way the system is designed to work. Bernanke knows that sustained demand requires higher wages and a vital middle class. But Bernanke works for the banks, not the middle class, which is why the Fed's monetary policies reflect the goals of the investor class. Bubblenomics is not the way to a strong/sustainable economy, but it is an effective tool for shifting wealth from one class to another. The Fed's job is to facilitate that objective, which is why the economy is headed for the rocks.
The financial meltdown is the logical outcome of the Fed's monetary policies. That's why it's a mistake to call the current slump a "recession". It's not. It's a planned demolition.
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