Black People : What is the State of the US Economy

Discussion in 'Black People Open Forum' started by Ankhur, Jul 14, 2011.

  1. Ankhur

    Ankhur Well-Known Member MEMBER

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    After bailing out corporate heads for mismanagement, at the tune of 3 trillion dollars ver TARP,
    outsourcing encouraged instead of discouraged,
    and the devaluation of real property,
    the nation according to Gerald Celente, and Michael Hudson, is not only presently in a depresion but heading to a greater one then in the 30s.

    Gerald Celente;


    Michael Hudson (Economist)
    Myths of Recovery

    By MICHAEL HUDSON

    Any dream of “recovery” in today’s debt-leveraged economy is a false hope. Yet high financial circles expect Obama to insist that the economy cannot recover without first reimbursing and enriching Wall Street. To re-inflate asset prices, Obama’s team looks to Japan’s post-1990 model. A compliant Federal Reserve is to flood the credit markets to lower interest rates to revive bank lending –- interest-bearing debt borrowed to buy real estate already in place (and stocks and bonds already issued), enabling banks to work out of their negative equity position by inflating asset prices relative to wages.
    The promise is that re-inflating prices will help the “real” economy. But what will “recover” is the rising trend of consumer and homeowner debt responsible for stifling the economy with debt deflation in the first place. This end-result of the Clinton-Bush bubble economy is still being applauded as a model for recovery.
    We are not really emerging from a “recession.” The word means literally a falling below a trend line. The economy cannot “recover” its past exponential growth, because it was not really normal. GDP is rising mainly for the FIRE sector – finance, insurance and real estate – not the “real economy.” Financial and corporate managers are paying themselves more for their success in paying their employees less.
    This is the antithesis of recovery for Main Street. That is what makes the FIRE sector so self-destructive, and what has ended America’s great post-1945 upswing.
    There are two economies – and the extractive FIRE sector dominates the “real” economy
    When listening to the State of the Union speech, one should ask just which economy Obama means when he talks about recovery. Most wage earners and taxpayers will think of the “real” economy of production and consumption. But Obama believes that this “Economy #1” is dependent on that of Wall Street. His major campaign contributors and “wealth creators” in the FIRE sector – Economy #2, wrapped around the “real” Economy #1.
    Economy #2 is the “balance sheet” economy of property and debt. The wealthiest 10 per cent lend out their savings to become debts owed by the bottom 90 per cent. A rising share of gains are made in extractive ways, by charging rent and interest, by financial speculation (“capital gains”), and by shifting taxes off itself onto the “real” Economy #1.
    http://www.counterpunch.org/hudson01262010.html


     
  2. Clyde C Coger Jr

    Clyde C Coger Jr going above and beyond PREMIUM MEMBER

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    In the Spirit of Sankofa,

    .......America is the Fall before Rome.

    Peace In,


     
  3. Monetary

    Monetary going above and beyond PREMIUM MEMBER

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    This video was made in 2009. Given what we know now about the economy, these guys are wrong from my perspective. I see Wall Street and the Republicans cutting off the flow of money in the economy (receiving TARP assistance without loaning out the money, voting against funds for small businesses, making record profits and not investing in projects which will require hiring, etc). The result of these actions is a high unemployment over an extended period of time.

    The question: Why are they cutting off the flow of money in this economy?

    The answer: POWER, presidential power to be exact.

    They want President Obama to be a one-term president...and they have stated as much.

    Peace
     
  4. Clyde C Coger Jr

    Clyde C Coger Jr going above and beyond PREMIUM MEMBER

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    In the Spirit of Sankofa,

    .......Excellent post Monetary, which speaks directly to the aim of Republicans against the first African American President, Mr. Barack Obama; to make him a one term President.

    However, what's problematic in that regard would be the lack of formidable candidates running in opposition to the sitting President; leaving only the mark of double digit unemployment to do the job.

    But this economy is tied Globally to the world wide demise, for instance, Greece is about to fold creating a domino affect around the world. The argument on raising the debt ceiling here becomes eminent, in order to freeze future interest rates when borrowing. Moreover, there are other tale telling attributes which strongly indicate the possible fall of America and the rest of the world as we know it, to be inevitable.

    Peace In,
     
  5. $$RICH$$

    $$RICH$$ Lyon King Admin. STAFF

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    I have to agree with brother Monetary for the truth is never hidden
     
  6. Clyde C Coger Jr

    Clyde C Coger Jr going above and beyond PREMIUM MEMBER

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    In the Spirit of Sankofa,

    .......This just in and hot off the press, lol.... speaking directly to the points I've raised in this conversation:

    Obama underscores urgency of debt talks




    [​IMG][​IMG]

    WASHINGTON (AP) — President Barack Obama said Friday Congress has a "unique opportunity to do something big" and stabilize the U.S. economy for decades by cutting deficits even as it raises the national debt limit ahead of a critical Aug. 2 deadline. But, he declared, "We're running out of time."

    Obama said he was ready to make tough decisions — such as on Medicare costs — and challenged Republicans to do the same. He attempted to turn the Republicans' opposition to any tax increases back against them, warning starkly that failure to raise the debt ceiling would mean "effectively a tax increase for everybody" if the government defaults, sending up interest rates.

    Administration officials and private economists say that if the U.S. fails to raise its borrowing limit and begins to stop paying its bills as a result, the fragile U.S. economy could be cast into a crisis that would reverberate around the globe. Democratic and Republican congressional leaders agree on the need to avert that outcome, but that hasn't been enough to get Republicans to agree to the tax hikes on corporations and the wealthy sought by Obama — or to convince Obama and Democrats to sign onto the steep entitlement cuts without new revenue that Republicans favor.

    http://news.yahoo.com/obama-chance-something-big-calm-economy-151552379.html

    Peace In,


     
  7. Ankhur

    Ankhur Well-Known Member MEMBER

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    Well let's try an intellectual experiment, take a look at the presidents fiscal polices and appointees, and then use the imagination to see him as a white president;

    1 Obama placed over 3 trillion in the hands of Wall street over the 700 billion that idiot bush put in place with TARP

    2 Why not bail out the public first with jobs and mortgage moratoriums?

    3 Obama appointed the knuckleheads that created the Allowance for Bush to wreck the economy, not in Guantanamo, but in Washington and at the healm of national finance.
    Larry Summers and Timothy Geithner worked to destroy Glass Steagall, the act FDR put in place to prevent another depression;
    Glass Steagal made hedge funds , subprimes, and derivatives illegal,
    also they worked with Gnewt Ginrich to outsource 70% of national manufacturing via GATT and NAFTA

    So this Heckyl and this Jeckyl cut of both legs of the American working public,
    savings and home value stablilty, and jobs

    Larry Summers was made economic advisor and Geithner was made treasurer

    4 After a NYC investigation for fraud regarding several investment firms, Bush's boy bernanke was reinstated to head the Federal Reserve

    5 A major jobs outsourcer, Jeffrey Immelt was put in place as jobs czar, and 2 new senseless wars wewre engaged in to waste billions, the war in Pakistan and Libya

    Now lets be honest, after bailing out folks who should have been fired and firms that should have been left to fail with over 3 trillion

    what money is there left to do anything?? or sit in Washington and put a show to the public like they are debating a budget????


    lets be clear the Republicans have gotten dawgone everything they wanted;
    1The 4 wars continue
    2 Corporate welfare continues
    3 black folks are neglected
    4 Nuclear energy , coal and offshore drilling are still subsidized
    5 Sch0ols and public utlilties are being privatized
    6 outsourcing is rewarded
    7 lobbying and Revolving doors continues
    8 No outcry from democrat Washington about union bashing
    9 And the bush tax cuts were re-established

    now if one takes the time there are threads, with reliable references, regarding each and every one of these issues
     
  8. Ankhur

    Ankhur Well-Known Member MEMBER

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  9. chuck

    chuck Well-Known Member MEMBER

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    On point/on time! FYI...
     
  10. Monetary

    Monetary going above and beyond PREMIUM MEMBER

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    Rather than go point for point in a thread, I will keep my comments general. If you would like, we can discuss these issues in our chat room. I am more than willing to do that.

    Major Point: The Republicans have as their goal a one-term presidency for President Barack Obama.

    To Achieve the Goal: Reject EVERYTHING President Obama is trying to do to improve the economy and put this country on better footing going forward.

    • The Republicans held up votes on extending unemployment compensation for millions of Americans out of work.
    • The Republicans are blocking trade bills that could increase demand for goods and services from businesses in this country. A higher demand for goods and services will cause businesses to hire, thereby, lowering the unemployment rate.
    • The Republicans are blocking the nominees of important positions in President Obama's cabinet which pertain to the economy.
    Wall Street and some commercial banks participated in the agenda to make President Obama a one-term president. They were NOT loaning funds to businesses who had to layoff workers because they could not meet their payroll through borrowing funds. The banks, that underwrote loans prior to 2007, would not modify mortgages of their customers who were under water. President Obama has a mortgage initiative to compensate these banks for modifying these mortgages. And yet, they refuse to do so.

    The "Strong Cities, Strong Communities Initiative" by President Obama invests millions of dollars in urban cities around the country. Detroit has been selected as one of those cities to receive funds for the completion of transportation/rail projects which will result in the hiring of hundreds/thousands of people from those inner cities. Take one guess at the race of the people who live in the inner cities and who will receive those jobs?

    Let me say this. You have legitmate points. Hopefully, the intricate tapestry that is this country is becoming clearer with both of our comments being shared on this site.

    Thanks for allowing me to share.

    Peace
     
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