Government Shutdown and Appointment of Janet Yellen Guarantees Flow of Funds to Wall Street: They are reducing “two-thirds of this country to subsistence level”, Chris Hedges

via chycho

Yellen Submarine

It’s no secret that the only reason the markets have been roaring – since bottoming out in March 2009, the DOW is up approximately 125% and The S&P 500 approximately 120% – is because of unlimited quantitative easing to the tune of $85 billion a month, a last resort, desperate measure that the FOMC began in 2012 to maintain its ‘growth’ targets. The end result of this program has essentially been the transfer of wealth from Main Street to Wall Street.

In terms of types of financial wealth, the top one percent of households have 35% of all privately held stock, 64.4% of financial securities, and 62.4% of business equity. The top ten percent have 81% to 94% of stocks, bonds, trust funds, and business equity, and almost 80% of non-home real estate. Since financial wealth is what counts as far as the control of income-producing assets, we can say that just 10% of the people own the United States of America.”

click to enlarge – source

How this plays out with the ‘government shutdown’ and the fears that we will enter a recession if the U.S. Treasury has to step in to prevent a default was summed up in the opening sentence of the following article: “Dollar Seen as Shutdown Loser as Growth Hit Spurs QE”:

“The first U.S. government shutdown in 17 years is stoking speculation that the longer it lasts, the more likely the Federal Reserve will delay reducing its monetary stimulus program.”

This, in conjunction with the nomination of Janet Yellen as chairman of the Federal Reserve can be considered a one-two punch that guarantees the continuation of flow of funds to Wall Street:

“‘She has extended Bernanke’s view that policy needs to be accommodative for a long period of time in a post-crisis environment.’… Yellen has backed Bernanke’s efforts to boost the economy through three rounds of asset purchases that have swelled the Fed’s balance sheet to $3.66 trillion.”

continued at chycho

3 Comments on "Government Shutdown and Appointment of Janet Yellen Guarantees Flow of Funds to Wall Street: They are reducing “two-thirds of this country to subsistence level”, Chris Hedges"

  1. BuzzCoastin | Oct 11, 2013 at 1:15 pm |

    what amazes me about this story is
    the majority of the 99.9999% know the financial fix is in
    and yet
    nothing happens and this shit rolls on
    bigger & better for the 0.0000015%

    • bobbiethejean | Oct 11, 2013 at 7:42 pm |

      Ya know…… when I first picked up Skyrim, I got about 6 hours in and I was like damn….. I fucked this shit up. RESTART! And I took GREAT pleasure in redoing things with the knowledge I had gained. I got 12 hours in the next time and restarted again because I am THAT OCD and I had learned even more cool shit. Then I learned I could play it on the computer instead of my PS3, use mods, and console commands. It was AWESOME. There was much fun to be had.

      I really, really, really REALLY wish we could do that with our government. Imagine just being like…… ok, this shit is fucked up. RESET TIME. All new congress, all new laws, all new constitution, all new system. I suppose we could keep some of the good stuff like freedom of speech, habeus corpus, and the checks and ballances system but Michelle Bachmann and Ted Cruz definitely need to go and they can take all their bureaucraptic BS with them. 😛

      Alas, real life is not like Skyrim, much to my deep sadness. Now pardon me, I think I’m going to go pretend reality doesn’t suck and escape into a nice game of Fallout New Vegas.

  2. Alan Morse Davies | Oct 11, 2013 at 2:14 pm |

    The U.S. is now a plutocracy, fine, even CitiBank describes it that way to Chinese investors.

    The weird thing is that being rich depends on the ability of consumers to spend.

    If the rich push the people they rely on to spend into poverty, they lose, they have no income.

    This short-termism is bad for them. They can respond by reducing wages, which reduces costs but also the spending power of those that could make them richer. It’s very stupid to push the people that buy into a place of not being able to buy.

    It’s almost as if they believe they became wealthy on their own merit and that they could have done it without anyone funding them, they did it on their own, nothing to do with the people that funded it.

    Alas, I think their world view is largely selfish and short-term…

    I think maybe they need help in order to be happier, more well-adjusted, less cruel. It’s probably a condition of some kind driven by a sense of not being worthy…

    – My Mummy never loved me
    – My Daddy never loved me
    – No-one ever loved me
    – They called me fat, stupid, gay, short, tall blah blah blah

    If we can identify this sickness, we can help them. Perhaps they shouldn’t hold public office, or own businesses if the results of what they do work against their own interests.

    We should prevent their self-harm. Right?

    Stop cutting yourself!

    Take this pill, it will make you forget how much you should be achieving and the pain that caused it.

    Take this second pill so you can see others not inside your family and friends as real people.

    Is being schizophrenic more damaging than this?

    If not, then what are we treating?

    Let’s call it maniacal insecurity and stop believing we’d be happy if we were them.

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