Income-Inequality = Low Interest Rates

Imagine that you are an esteemed captain of industry and you decide to go to Small Town, Kansas to bequeath the little people with your beneficence, sort of like young Lex Luthor in Smallville. Shortly after arriving, you discern that the town’s entire economy revolves around a refrigerator factory, and you laugh out loud: “Don’t these yokels know that manufacturing is for idiots? Don’t they know that they have to move up the value chain to raise their standard of living by inventing the next Facebook, or curing cancer?”

The idea that mere factory workers are getting paid $25 per hour in this day and age is ludicrous. So, you set out to put things straight, to bring Small Town into the modern age by purchasing the factory. You immediately set the workers to dismantling the machine tools, packing them into crates, and loading them into boxcars. When the job is done, an engine comes to fetch the boxcars and hauls them down to Mexico where the factory is reassembled, and staffed with $2 per-hour workers.

With your modern sweatshop factory churning out huge profits, you decide to put the money to work by making loans to Small Town residents at 5%. But to your dismay, none of the applicants qualify because they are all unemployed. So, you decide to lower your prices and cut the rate to 4%. Still no takers. And so on. Turns out, it’s not only the factory workers that are bad-credit risks. All the mom & pops who ran the shops and restaurants frequented by the factory workers have also gone belly-up. Even at 1%, there are still only a few qualifying borrowers. You make a loan for a pickup truck to a guy who scavenges copper from abandoned buildings and sells it to the Chinese. And another loan for a bulldozer to a guy who demolishes dilapidated houses. But that’s about it.

What has happened is very simple: before you came to town, everybody was working and prosperous, and the local bankers did good business making mortgages, car loans, etc. But after your glorious arrival, nobody was working.

Then a light bulb goes off over your head: “Forget these lazy loser Americans. I’ll go south of the border and make loans to the hardworking Mexican people.” But then you are crestfallen when you remember that you are only paying them $2 an hour and they can’t afford to buy anything either.

So, congratulations, you outsmarted everybody and got all the money, putting an end to civilization in the process.

The above scenario is not a thought experiment; it’s something that has been going on for decades. Those 45 million people on food stamps didn’t just fall from the skies. We as a society decided that instead of having everybody working, we would instead allow a handful of people to amass a vast trove of capital in the Cayman Islands. It is literally an economic policy for creating mass poverty.

However, if you ever see a concerted effort being made to rollback globalization and bring the factories home, that would likely be an excellent time to bet the farm on bank stocks. Don’t hold your breath though; low interest rates will likely be with us for a very long time to come.

America’s Dead Zones

A while ago, I heard somebody say that the there are so many homeless people in the Skid Row neighborhood of Los Angeles that it looks like a scene from The Walking Dead. Now they say that large swathes of adjacent neighborhoods have been absorbed into the dead zone. The situation is so dire that the city of Los Angeles has declared a state of emergency. Click here to see some pictures.

You know those economists who said that offshoring thousands of factories while simultaneously importing millions of workers was a perfectly wonderful economic policy? This is their handiwork. Oligarchy bootlickers; every last one of them.

How many more dead-zones like this are there across the nation? I don’t know, but I’ll bet there are quite a few. This would be a good topic for an investigative journalist. I would recommend looking into Fresno next, having recently watched the documentary: “The City Addicted to Crystal Meth.” The Brits seem to really enjoy documenting that depths to which the USA has sunk. And yes, the USA has become a laughing stock.

Monetary Policy has no Effect on Wages in a Slave Society

Imagine that you are Fed chairman in 1830, and at an FOMC meeting you ask the committee: “how can we adjust our policy levers here at the central bank to get a wage boost for the slaves down south?” What would happen? Your fellow fed-heads would probably look at you like you were insane. Then they would offer suggestions, trying not to giggle in the process.

In the future, a big milestone in the march toward a fascist slave-state will go into the history books when Congress formally relieves the Fed of its mandate to strive for full employment. Perhaps this will be done in the aftermath of a global financial catastrophe caused by the Fed pumping absurd amounts of liquidity into the global financial system.

This is inevitable because with the ever-expanding policies of free-trade and mass-immigration, what is left of the USA’s economic boarders are rapidly melting away. And that’s why the wage data is still punk after trillions of stimulus from the Fed: wages in the formerly-sovereign USA cannot rise until after wages rise in the “Mexico” and “China” and “India” regions of the neoliberal global empire.

It’s pretty obvious that the Fed, and the ECB, have succeeded only in creating massive distortions in global financial markets (such as negative rates on German bunds). Perhaps this is why Janet Yellen is so hesitant to make even a teensy quarter-point rate hike: she knows that she will have to engineer the mother of all soft-landings. The path of least resistance for her would be to keep rates at zero until a rise in inflation forces her hand. Once the CYA is in place, she can blow up the world.

If David Rockefeller and his neoliberal oligarchy were competent, they would have removed the Fed’s full-employment mandate long before they reached their goal of commoditizing global labor at a wage-rate of $2 per hour. But they are anything but competent, and the 2008 financial crisis was only a small taste of the havoc they will wreak upon this nation.

Godspeed Janet Yellen, Godspeed.

Brush Your Teeth

Did you know that poor people walk around with their mouths stuffed with cotton balls to avoid that toothless, sunken look? They do that because it’s very difficult to get, and keep a job otherwise. For example, have you ever seen a Starbucks barista missing teeth? Probably not, right?

With bad teeth, your job opportunities will be limited to areas where you are out of public view, like chopping carrots in the back of a restaurant, or working as a sled dog in an Amazon warehouse mushed by neo-Nazi overseers. So, brush your teeth, because when it is your turn to be kicked to the curb by the razor-sharp claws of the great neoliberal pincers of off-shoring and mass-immigration, your teeth are the very last thing you should sacrifice.

Don’t think it can happen to you? Consider this survey: 80 Percent of U.S. Adults Face Near-Poverty, Unemployment (at some point in their lives).

Here is Linda Tirado on the subject. If you Google her, you will find plenty of controversy, but her point about teeth is indeed valid.

Is Russell Brand an Illuminati Agent?

Comedian Russell Brand wants us to believe that he is some kind of revolutionary. But look at what he said during his Messiah Complex comedy special (at 1:21:00):

“…free movement of global capital will necessitate free movement of a global labor force to meet the demands created by the free movement of that capital.”

He wasn’t making a joke there, but rather was ridiculing the Republicans on Fox News. But what’s important is that he was singing from David Rockefeller’s hymnbook. Compare what Brand said to what Rockefeller wrote in his Memoirs:

“The free flow of investment capital, goods, and people across borders will remain the fundamental factor in world economic growth…”

Brand was regurgitating Rockefeller’s neoliberal credo; that corporations should be free to rearrange the peoples and nations of the world to their liking. Would Che have approved of that? Hell no; he would have executed Brand on the spot. But if you go and look at Brand’s YouTube site, you will see him portraying himself in the iconic Che Guevara pose.

During the 2014 Congressional elections, Brand told his young audience not to vote, and everybody knows that low turnout helps the Republicans. So, I’m calling bullshit on Brand. But wait! There’s more!

Also in Messiah Complex Brand carries on about “The Divine Female Sexual Energy” (at the 1:29:00 mark). This is very reminiscent of Dan Brown’s “Divine Feminine” in The Da Vinci Code, his best-selling novel of Catholic-bashing Masonic propaganda. The Illuminati likes to criticize its arch enemy, the Catholic Church, as being patriarchal to score points with women. Ironically, the Masons are just as patriarchal, not allowing female members, and segregating them into their own ghetto organization called the Eastern Star.

Here is an inane scene from The Da Vinci Code movie where the hero, Robert Langdon (played by Tom Hanks) reads his own book, Symbols of the Sacred Feminine (2:42:37):

Langdon

Whether or not women are divine is not the issue. The point is that this meme, as far as I can tell, only exists in two places: a Masonic propaganda film, and Russel Brand’s comedy show. Curious, no? And this ties back to David Rockefeller because he has the Masonic symbol, the compass, carved into the facade of Rockefeller Center:

Great Architect

The next photo shows the evil mastermind of the 1927 film Metropolis holding a compass. That film later became a favorite of German Nazis in the 1930s:

Metropolis

And finally, the most notorious police state in history, East Germany, put the compass right on their flag:

East_Germany

According to Wikipedia: “The hammer represented the workers in the factories. The compass represented the intelligentsia, and the ring of rye the farmers.”

Russel Brand is certainly an intelligent guy. And by repeating elitist memes, he has outed himself as a member of the ruling oligarchy. So, is Brand just cashing in on the pseudo-revolutionary market as a left-wing version of Alex Jones? Or does he forward your email address over to the CIA when you subscribe to his YouTube channel?

I don’t know the answers to those questions, but in my opinion, Russel Brand ain’t no revolutionary.

Note: Putting an intelligentsia in charge, regardless of its political flavor, is the dumbest thing a nation can do. Eastern Germany is still a basket case, and our own banker intelligentsia almost destroyed this country in 2008. The multinational corporations that write our laws today are no different. If they were, we wouldn’t have 46 million people on food stamps. Being smart is not an asset when you are evil.