Robinhood Traders And A Quick Reality Check That Is The Disastrous, Unsustainable, Fragile US Financial System And Humpty Dumpty Economy

I noted on here in at the beginning of the year how horrible the economy was before the pandemic.  In fact, since 2008, real GDP has broken its regression uptrend for the first time since the Great Depression.  In other words, growth of real, not nominal, GDP has stalled.

If we take away Trump’s deficit spending, the real economy contracted in each of his years of service.  That’s a little bit different than the hooey fed to you by Fox News.  In fact, if I take away Obama’s deficit spending, take away the balance sheet of debts the Federal Reserve had to purchase from Wall Street banks during and after the 2008 collapse (that the Federal Reserve still has on their books), and Trump’s deficit spending, the US economy had collapsed before the pandemic. In fact, it has never recovered post 2008.  And in 2008, I wrote that globalization was dead.  It is.  China’s debt to GDP rocketed from nearly nothing in 2008 to now 400% of GDP.  This same dynamic is playing out in Europe and around the world.  2008 was the end.  Employment participation in the US collapsed and never recovered.  Small business creation collapsed and never recovered.  If I add in negative multifactor productivity which simply means it takes more than a dollar of money to produce a dollar of goods, and I add in the massive corporate debt explosion since 2008, its even worse.  If you subtract the $29 trillion (link here) bailout of Wall Street criminals in 2008 while five million Americans were kicked out of their homes……… We are in humpty dumpty land.

Why doesn’t MSNBC, Wall Street, politicians or Fox News tell you any of this? Well, first of all, no politicians or news outlet would actually would have any idea what they are talking about.  With this week’s shenanigans with Reddit and Wall Street hedge funds blowing up, I think its safe to assume you know why Wall Street would never utter anything.  Free markets, free speech, free elections, free press and your freedom have always been a myth.  Always. People can’t believe the rot in today’s world because they are just waking up from a stupor of brainwashing.  It’s always been here.  And I can prove it scientifically.  And, will soon enough. But, right now, I’m just sitting down at my computer for a few minutes.  I’m not ready to type up any details behind these statements.

Curiously, in addition to the sample of efforts above to prop up corporate capitalism since 2008, how much lower would GDP have been if we took away tens and tens of trillions of dollars in mergers and acquisitions over the last few decades?  If we hadn’t seen retail space per capita increase by 600% since Reagan to be now 1200% TIMES THE PER CAPITA rate of Germany as an example?  That’s not a misprint. 1200%.  If we backed out forty years of building corporate commercial real estate for this unsustainable retail, and take away all of the corporate employment it and retail, logistics, distribution and the like have created, how many trillions would this slice off of GDP?  What about without the seven trillion dollars of wars since 2001 that kept US corporate factories going?  Or the more than ten trillion dollars in defense spending, which goes into corporate pockets and is now well over $1 trillion dollars when including defense, veterans expenses and costs into other agencies such as the NRC? US GDP is a farcical number based purely on lies.  The United States is not the richest nation on earth.  It isn’t even close.  Without the world’s reserve currency that enslaves most of the world and steals their wealth, we’d be living in caves and eating dog food.  Poverty in many states has left the life expectancy in many states, not neighborhoods, is equivalent to that of Ethiopia. (Published rates). Half of all Americans are forced to live like animals or close to it. And, that is why many outwardly act like animals in scenes we see on TV.

This is corporate capitalism.  It’s not corporatism. That’s not even a real thing and I’ll expose that myth too. Corporate capitalism, socialism for the rich, (easily provable) requires endless policy riggings and taxpayer bailouts and that is mathematically provable.  If you don’t understand that, I would suggest you brush off your investigative skills and start to learn about the reasons corporations were created and what their intent is and why our founders fought the Revolutionary War against them.   And, how they destroyed small businesses, municipality-owned businesses, employee owned businesses, cooperatives, family owned businesses and how corporations create our money, fund our wars, control our media, have destroyed our healthcare and devoured our government just to name a few examples. That didn’t happen under Obama or Trump. It has been happening since World War II. And, it caused the Great Depression and had a hand in the Civil War.  And, business creation with employees has collapsed by 90% since Reagan’s policies allowed for the completion of the corporate takeover that devoured whatever was left of democracy. The world didn’t just end up here because Sean Hannity or Joy Reid told you it did.

The Robinhood traders, Taco Bell workers forced to make $7.25 an hour, taught the masters of the universe a lesson in the last few days.  Blowing up their monopoly on credit and money.  Now, I don’t condone this act because it’s no different than stock pools, boiler rooms and other criminal rackets used to attack specific stocks for inflation that then contributed to massive collapse in the Great Depression. But, let’s be clear.  Wall Street does this every day and a government devoured by corporate capitalism and the mythical free market does nothing about it.  Wall Street is a criminal racket of corporations that loot democracy for the investor class and rich elites.

Many groups of Americans are partying like its 1999.  The stock market is up and their “investments” ahem are making them rich.  I noted many years ago I pulled out of financial markets and would never return because of the gross level of fraud that exists.  In 2021, its being exposed. And, like everything else in American society, it’s normalized.  So, we accept the grift that’s everywhere.  Or, at least those who believe some version of propaganda put out by corporations, the media, the military and either of the two political parties. Is the actions of others that are outraging us or that we aren’t part of the grift?  American society created by corporations is morally-challenged.

So, here’s something to ponder that again, you won’t read anywhere else.  GDP was traditionally calculated by value add.  In other words, you had to make or provide something where value was added.  Turning coal to electricity.  Making the turbine to capture the steam created by burning the coal.  Creating a machine tool to manufacture the turbine components.  In that calculation, finance provides no value add.  Nor do its profits.  It adds nothing to GDP.  Trading stocks, mergers & acquisitions, providing millions of corporate Wall Street jobs to enslave society to monetary debt, etc, etc, etc.  But in some dystopian nightmare, finance is added to US GDP.  So, what’s the real GDP of the United States when excluding non value add?  And, how does the government rig this statistic to capture economic value add by corporate finance?  It’s normalized fraud.

So, let’s look at the stock market.  Everyone thinks the economy must be great because stocks are doing great.  What would the stock market be if trillions of dollars weren’t spent in stock buybacks since 2008? And, if the Federal Reserve wasn’t continuously buying Wall Street’s debts and fanning the bailout flames of asset prices by giving them even more money to spend on frivolous financial scams and schemes?  What is the value added price to earnings, price to book, free cash flow, price to GDP, etc of the stock market?  Well, a quick blush calculation tells us its 400% higher than the stock market was in 1929 before corporate capitalism collapsed and stocks fell 90%.  If I take a swag at normalizing those earnings for the dollar reserve currency or globalization, it may possibly be upwards of 800% higher than 1929.  Just using GDP, which has become a magical number, the US stock market went from 30% of GDP before Reagan was elected to office to 200% of GDP today.  That’s stock market expansion against a static baseline.  It’s much higher than that if one actually understands economic sustainability and how unstable our society and our economy is thanks to corporations.  I’m curious, what would your pension or our society look like if that fraud never occurred?  I’ll tell you.  Like everything else I noted above, we’d have already had a revolution.  The world is in the biggest bubble in history and its creator is the US and the dollar as the world’s reserve currency. 

I’ve written endlessly on here that US wealth peaked around 1980.  And, my goal in 2021 is to piece together sixteen years of postings into a mathematical understanding of why that is so. And, how corporate capitalism and its propagandized manipulation of our citizens destroyed the United States.

The economy, republicanism and the financial system are confidence games in both sense of the words.  They are both con games and they rely on confidence.  I noted on here years ago that when both political parties eventually fail the American people, the confidence game will be exposed.  And, here we are. The masses are now “woke”.  And, regardless of the manipulation to divide us, the grievances of every American are exactly the same.  And, it’s just a matter of time until they coalesce around that truth.