Tuesday, May 20, 2014

State Violence Defined: The Distribution Of Wealth, Capital Income And Returns Since 1913

In other words, since the year the Federal Reserve was created and thus permanently enabled a criminal class of looters in this nation and in the process stole whatever was left of the rule of law and freedom.

I got this work of Professor Emmanuel Saez from Alan Grayson.  (Link at the very bottom)  So, I am going to take the liberty of summarizing it through some of his observations.  But first a reminder.  I have noted on here before that we are going to see a massive wealth redistribution from those who have stolen everything to those they have stolen it from.  It’s just a matter of when and how.  Every time in history we have seen such massive theft, the outcome is the same.   It’s coming.   This is part of the battle between good and evil that is taking place in this world.   And, that may be one reason why we see such a radicalization of the domestic  government.  That is, to protect the criminal class of state actors that have stolen everything.   To protect them from We The People. 

Some key data points from this work are below. (The link to the entire document is at the bottom of this post.) 

For the bottom 90% of Americans, since the late 1980s:

  1. The bottom 90% of Americans had to spend more than they earned every year from 1997-2008.   Credit has tightened since the 2008 bust and people have pulled back their spending, a form of forced austerity has reigned in this dynamic.   Now, some of this is nonliving wages forcing people to take on debt and some of it is people buying into the state’s propagandized (violence) consumption mania and  living beyond their means.  (Remember, I have written on here ad nauseam that it was Clinton & Reagan who created this mess.  Even though party hacks and those who outsource their thinking to them tell us both Clinton and Reagan were great leaders.   Ahem.  Oh, and Al Gore.  This data confirms what I have said many times.  That is, George Bush inherited this mess from Clinton.  Although he and Obama did nothing but perpetuate it.  The supposed liberal intellectual who supports the Democratic Party is literally creating their own suffering or future suffering.)
  2. The value of home equity has crashed. (Remember, my downside target for housing prices could possibly reach early 1990s or even 1980 levels.)
  3. The value of small businesses has crashed. (Something else written of on here.  There is no such thing as small business being the backbone of America.  That’s another myth.  The corporate state ensures this to be so.)
  4. The value of liquid assets – cash, stocks and bonds minus auto and credit card debt -- has been wiped out entirely.
  5. The only form of middle class wealth that has sustained itself is pensions/401(k)’s, and more than a quarter of all American workers don’t have one.  (401ks and pensions are headed for the scrap heap.  Most defined benefit pensions have been gutted by corporate criminals and instead turned into gambler’s 401ks helping to fuel the massive financial bubble.   Public pensions are headed for a major reset, if not zero too.  There is no way out.)

The bottom 50% of Americans cumulatively own nary a nickel free and clear.  Most in some way or another are wards of the state.  Even if they have a job.   This is state violence defined.  That is, destroying individual’s economic rights and turning them into chattel to be exploited and ultimately disposed of. 

The capitalist criminals and Republicans would tell you that the bottom 50% or thereabouts are the people who caused the 2008 crisis.  Because they were getting loans they had no right getting.  Hahaha.   That’s right.  Those poor sonofabitches should know their place as wards of the state or wage and debt serfs.  Homes are for the rich and people of class title and privilege.  Your place is in the poorhouse and they aren’t going to let you forget that if they get their way.   Because people not of class aren’t actually citizens with rights.  If you don’t have any money, you don’t have any rights.  Rights are to be purchased by the highest bidder. 

Contrarily, if this trend continues, 400 American will own the entire country by 2114.  Now, that certainly isn’t going to happen but it highlights the brutality and violence of this system.    Remember, one of my long-time themes on here is the investor class is headed for the poorhouse.   In other words, the investor class is headed for a bout of karma.   It’s called Newton’s Third Law.

The rich now earn 6% on their money so they are loving the Federal Reserve’s attempts at reflation.  If you aren’t making at least 6% annually through wages or gambling on the Ponzi scheme, you are losing ground.   Compound that a few times over a handful of years and you appreciate why people cannot retire or even subsist on their savings anymore.

One final remark about all of this.  I have noted on here for the better part of this blog’s existence that the U.S. and China are in a Nash Equilibrium.  ie,  Essentially a state where neither participant has any reason to change the current arrangement.  And at some point that equilibrium would break.  I have said for the last couple of years that it seemed the time for China’s crisis to metastasize beyond its control was near.  My timing hasn’t been accurate.  But, the basic analysis is still completely valid.   China will break.  It’s just a matter of what will break it and when.  My assumption has generally been that China would be forced to devalue its currency or face collapse.  We have seen signs of this happening in the last few months as the yuan has started south from its peg against the dollar.   If this happens, it would generally lead to “dumping” or selling goods at an unfair advantage or below subsidized cost (devaluation) and we could expect the U.S. would retaliate with economic actions.   Thus possibly slamming the door on China’s corrupt mercantilist scheme and forcing its economy to completely unwind.  

Then, our masters would pivot their economic policies back into the United States where worker’s rights have been obliterated and people are begging to be employed at any cost.   At least, that is how capitalism wants this to work with its comparative advantage.  Whether they are successful at this pivot is quite another story.  There are many failure points that I don’t see any way of overcoming.   But one must appreciate that our masters certainly see their U.S. field slaves (the working class) getting restless and now that they have looted China with impunity, their future policies may be more concerned about keeping what they have rather than looting with impunity.  If so, they may try to keep the us from escaping the plantation or sacking our masters and upsetting their looting mechanism of class-based corporate capitalism by pivoting to job creation in the U.S.  Good luck.  We have 100 million people underemployed or unemployed. 

I see possible evidence that the U.S. has been baiting China more and more.   And China is feeling its newfound power as well.  Or so they think.   Those two dynamics will ultimately collide.   This week the U.S. announced high profile charges against China for economic spying.  Which almost certainly is true in a broader scale.  Whether these are trumped up or “timed” charges with an intent, no one really knows.   But China, like the U.S., Russia, Europe, etc are predatory states that steal and loot with impunity.   I have a friend who works in a very sensitive field of technology and seven or eight years ago people in his firm found that China had planted spying “stuff” in some of the unrestricted technology equipment they manufactured in China.   In other words, China was attempting to steal their restricted technology just as the NSA has been exposed of doing.

As this economic crisis re-intensifies, at some point a line will be crossed between state actors and there will be no going back.  That is, unless humanity stops them.   The only question is if these actions will be willful and planned.  There is ample reason to believe they may be.   That the U.S. has created China only to destroy it.  I wrote that on here eight or so years ago but never expounded upon it.  At that time no one ever would have considered anything to be possible that I would have written on the topic.  So, I have saved those remarks and will be posting them this year.   With the revelations of Wikileaks, Edward Snowden and others, people have shed much of their beliefs and are more open to discovery and are willing to consider that this system is much more rotten than anyone could ever imagine.  The evidence of such policy of economic warfare is lacking due to secrecy but the motive and actions are not.   It’s just a matter of whether this is the way the system works or if there is willful intent.   No one knows.

Regardless, one thing everyone should appreciate is that the world is not as it seems.  We are spoon fed what the state and its actors - corporations, the media, politicians, Wall Street – want us to think rather than how to think from the time we enter pre-school.    And I doubt most anyone other than a handful of deep state actors have any idea of what is contrived and what is real.   Certainly most elected officials are simply pliant stooges willing to do the bidding of others for a payoff.  But the stakes are much higher than that.  So, the true intents are likely to be much more sinister.

The state and its power have really only coalesced globally in the last 100 years.   100 years ago, much of the world still lived in laws and customs created through local communities and local governments.   Even in the U.S., 100 years ago state power had not coalesced to the degree of being able to exert much, if any, power or violence against its own citizens.   Now that we see the maturation of the state globally, we see its true nature and intent.   Make no mistake, the state exists for only one reason.  Violence.   Capitalism, an invention of the state, is clearly a form of state violence that enriches state actors just as it did the political stooges, bankers and corporate titans in the British Empire of 1776.  And now everyone around the world can see reality clearly.  That is, if they are willing to open their eyes.   In this moment, the state is highly vulnerable to collapse everywhere.   Europe, South America, Asia, North America, Africa, it doesn’t matter.  Or, at least massive reform of state functions and power that pushes power back to the people to allow them to make decisions about their own lives as the original Age of Enlightenment intended.    The tenet of people being better able to make decisions about their lives than the state, a founding principle of this nation, has been obliterated globally.

These statistics by Professor Saez and the resultant suffering we see globally are completely contrived by state actors.    This crisis is completely contrived.   There has been no thermonuclear bomb dropped on our cities that has devastated our economic abilities.   This whole scheme is a state-driven fraud.   This degree of suffering and theft we see around the world is only possible through state violence.  The promise state actors make for such control is protection of its citizens.  That is the only reason the state exists.  How’s that working out for you?   How many hundreds of millions dead, imprisoned, living in squalor and exploited courtesy of state actors during the 20th century?  The state, being fundamentally of class and power, is and always has been a miserable failure in the evolution of human progress.  State actors have fought human progress every single step of the way.

At some point, we will almost certainly enter a stateless world.  A world where China, Russia, the U.S., European states, etc will cease to exist.  I don’t have any idea when that will happen.  But it almost certainly will.  Or we will see massive reforms in how government works.  Reforms that substantially neuter state control, power and violence.  Because it’s the only way humanity can ever achieve a peaceful state of being with the planet and each other. 

Title link report here.

posted by TimingLogic at 12:38 PM