Saturday, March 2, 2013

Matt Busigin On Peak Capitalism - Business Insider

Matt Busigin On Peak Capitalism - Business Insider

There are lies, Damn lies, and statistics. This article represents the lies, damn lies through statistics.

Here are some things I said about the chart, which shows transfer payments from government to the private sector are fairly stable:

But transfer payments also include bailouts of banks, right? What about banks ability to borrow at zero and buy bonds that yield more? Are those counted as transfer payments? If not, Joe, why not? 
and:
  
Also banks make massive profits on interest backed securities, that governments are forced to pay because of low interest rates. Those are transfer payments and I bet those take a mighty toll on mainstreet. And what about speculation in commodities? Speculation comes from transfer payments to Wall Street, but act as a tax on mainstreet as gasoline is about a buck fifty higher than it would be without the speculation.

I think you need to take a closer look at the transfer payments and what they really are.

and in response to a new world order guy who supports the article I said:

 Excess reserves can be used for interbank lending, freeing up other assets for massive speculation that hurts mainstreet. Wouldn't a New World Order Guy know that?

and the new world order guy said social security will one day be too expensive. I said:

 Yeah, we will only be able to fund the banks. Isn't that what austerity is all about, New World Order?? You make me sick.
Here is the bottom line, GDP grows, but more is being funneled to the banks than ever before in the form of interest backed securities, QE, easy terms at the discount window, etc. And less is being transferred to mainstreet, plus they pay a tax for bank speculation

A person named Millie Cooper said this as well regarding the transfer payments:

The interesting point is: SSI/Medicare/Medicaid or Welfare/Unemployment are related to wages, because the employed pay them with their tax dollars, not the corporates which have 5% tax rate in reality after all tax dodging.

How come wages are going down but the transfer payments are going up? The deficit. The capitalists are not paying their share unlike the post lied. And the readership is too stupid to figure this out themselves. 

As big finance gets huge, it will swallow up the wealth of the rest of us. How far that can go before it breaks is anyone's guess. Could it be permanent? I leave that for economics professors to figure out. But there is a war, and it is being waged by big finance against the rest of us. And here is why it is being waged, the constant quest for secure assets to be used as collateral, all the while pushing for risky loans that become secure through government backstops. 

If the assets go bad, or the government is unable to backstop the assets without destroying financial well being of the nation, then it will be time to hang the bankers, assuming the nation survives. I leave that assumption to the economists to figure out as well.



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