Consider
this another "conspiracy theory" for your amusement ... if
you like
by
system failure
More
than two years ago, we wrote
that neoliberalism drops its final big leaf with Donald Trump.
Right
after the 2016 US elections we wrote
that Donald Trump played well his role as an anti-establishment
candidate, but in reality, he is only a reserve of the establishment.
Many
were almost laughing with these estimations, but just one year in
office and Donnie did everything he could to justify them:
-
Literally hired Goldman Sachs to run USA.
- Signed
a bill to deregulate again Wall Street, so that the parasites of the
financial mafia to be able to play their games at the expense of the
majority, as happened so many times in the past, causing big
financial crises.
-
Quickly aligned with the neocon agenda and bombed Syria. In fact, the
Donald did even more than the puppet of the establishment, Barack
Obama, by provoking dangerously war games in Asia-Pacific.
-
Maintained US forces in Iraq, Afghanistan, continued the US
interference in Yemen and elsewhere. Now, permanent US military
presence in Syria.
-
Pursued a totally unacceptable health care program that will push
millions of Americans further to the cliff, without even a
rudimentary social safety net.
-
Continued to hunt fiercely all Whistleblowers.
-
Passed
more
tax-cuts for the plutocracy.
- Passed
a bill that will give him vast warrantless spying powers.
So,
while the US political establishment totally bankrupted after 2008
crisis, the only way for the elites to continue the neoliberal
project, was to bring in power someone like Donald Trump who could
sell plenty of patriotism and 'anti-establishment' rhetoric. He could
also be used as a
diversion
tool from the real progressives, like Bernie Sanders, who are a real
threat to the neoliberal regime.
So,
hurricane Donnie does what corporate Democrats, or even ordinary
neoliberal GOP couldn't have done without him performing in the
political theater. And while he passes his awful bills that will
screw further the US working class, he "feeds" his
patriotic vote tank with decoys like the "little rocket man",
or the "shithole countries".
So, it's
not a surprise that Donnie runs even faster (probably because he sees
his ratings in free fall), to fulfill the final dream of the
neoliberal regime: kill the state.
The
government shutdown has been done in the past, but the secret mission
of Donald Trump is to make it become a permanent situation. It's not
accidental at all that it happened shortly
after
he gave another massive tax-cut for the super-rich. Because the
ultimate dream of the plutocracy is exactly to kill the state and
completely get rid of the taxes which are necessary for the
government to pay public employees, maintain and
modernize infrastructure
in every public service.
And he
found another ridiculous excuse to take the approval of the patriotic
right audience: he claimed he has to shutdown the government in order
to build that wall and protect the Americans!
And
that's why Bernie Sanders is furious with both tax-cuts bill and
government shutdown.
With the
permanent government shutdown Donald Trump is about to deliver the
country entirely and openly to the big private interests that would
be able to establish the next stage of neoliberalism: 21st century
neo-feudalism. Then, it would be a lot easier for the plutocrats to
bypass "annoying barriers" like Bernie Sanders, Tulsi
Gabbard, Elizabeth Warren, who want free healthcare, free education,
end of wars and dirty interventions, breaking the banks and regulate
Wall Street. The American people will be left fighting in a brutal
arena of zero social protection.
For
those of you who still believe in that Trickle-down fiasco, just
check what happens when you deliver problems to private
institutions with the complete absence of public provision:
Take a
small taste of the Dystopian close future because this is only the
beginning ...
...The primary change that has fundamentally changed the economy can be best described by Warren Buffett, CEO of Berkshire Hathaway, who said, "Through the tax code, there has been class warfare waged, and my class has won," to Business Wire CEO Cathy Baron Tamraz at a luncheon in honor of the company's 50th anniversary. "It's been a rout"...
ReplyDeleteRich people have much higher marginal propensities to save and invest than non-rich people who have higher marginal propensities to consume. The world-wide shift in tax burdens from the rich to the middle class has created a tremendous imbalance where there is a much greater supply of lendable and investable funds relative to securities to invest in or projects to lend to with high probabilities of good returns. Bitcoin (COIN) and the explosion of new cryptocurrencies is only the latest manifestation of the worldwide excess of loanable and investable funds.
The dominating force propelling securities prices is the massive tax-policy-induced increase in inequality that causes the excess of loanable and investable funds, and that just got a lot stronger with the new tax bill. However, factors such as monetary policy, inflation and the unemployment rate will still have significant impacts on securities prices. There are also geopolitical factors and events that can influence financial markets.
The quandary for investors can be described as someone who has seen the first and last page of a book, but does not know either how long the book is or what happened between the first and last pages. We know that a massive transfer to the rich will happen. We know that the middle class has a much higher marginal propensity to consume than the rich. We know that initially the rich, or if you rather the job creators, use their additional after-tax income to invest. This extra investment initially boosts securities prices. The higher prices for securities enable investments to occur that might have otherwise been undertaken. These can range from factories, shopping centers and housing. What we don't know is the path that equity prices and interest rates will take between the enactment of the tax shift and the eventual financial crisis or other event occurs, at which time the massive excess supply of loanable funds as compared to demand for loans will push risk-free short-term interest rates down to near the lower bound, as was the case during the 1930s, in Japan for decades and in America since 2008..."
https://seekingalpha.com/article/4139026