classical economics
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All-Out Assault
Pillaging of Energy, Health Care, Finance Continues
By Wayne Jett © July 17, 2009

    No more aggressive, ruthless assault against the American middle class has occurred since World War II than has been on-going from 2007 to the present day. The numbers show this is not hyperbole. Mort Zuckerman this week wrote that job losses during the first half of 2009 were higher than during any other half-year since World War II, including the post-war demobilization period. The current “recession” has destroyed more jobs than were created during the entire nine-year expansion preceding it – the first time since the Great Depression this has occurred.
    This disgusting state of affairs is by no means the worst of it. What lies ahead is darker by an order of magnitude. Goldman Sachs, Wall Street and their functionaries in Washington, D.C., are steam-rolling Congress with “cap-and-trade” legislation that will end middle class access to economical energy and health care “reform” which will empower government to control the life-line of every person in the middle class. These two bills, if enacted by Congress, will disable the middle class from ever again competing with the elites in business or in politics, short of revolution.
    For any who may believe “the rich” will finance federal takeover of health care, consider that the actual proposal is to impose a surtax on earned income above $250,000 or above $1 million. Earned income is what the middle class produces, because the middle class comprises those who work for a living, including the most successful who earn six figures or more.
    Elites do not “earn” income as the middle class does, so they will have little or nothing to fear from a health care tax on income. Just last year, the special pass given by the IRS to hedge fund managers allowing their billion-dollar-plus annual incomes to be taxed as “long term gains” came to light. By contrast, Congress’ health care tax would hit the most productive, competitive members of the middle class very hard.
CBO: Federal Budget “Unsustainable”
    Federal spending is already so far out-of-hand, even before seizure of energy and health care, the Congressional Budget Office declares “[u]nder current law, the federal budget is on an unsustainable path, because federal debt will continue to grow much faster than the economy over the long run.” CBO says this means spending must be cut, taxes raised, or both. Some in government will urge taxes should be raised, even higher than the hikes proposed in the health care bill passed today by the House Committee on Ways & Means. If they so conclude, regardless of good intentions, they will be wrong.
    Under existing economic conditions, higher tax rates will not produce higher revenues. Just as California is experiencing, higher tax rates will produce a shrinking economy, higher unemployment and lower tax revenues. Nonetheless, indications are that the Obama administration and leadership in both houses of Congress will push hard to enact higher tax rates.
Parallels with Great Depression Policies
    This is what occurred when elitist mercantilists led by Wall Street financial gangsters gained control of U. S. economic policy in 1929 under President Herbert Hoover. Purposely shrinking national production to the smaller model favored by monopolists, they began raising tax rates and adding new taxes in 1932. This continued every year of Franklin Roosevelt’s presidency through 1945 (except 1939, after House Democrats lost 81 seats in 1938).
    Economic policies of the U. S. government during 1929-1945 were not motivated by good intentions, and neither are they now. U. S. policy is dominated now more than ever by Wall Street’s gangsters, mightily enriched by hundreds of billions taken in loot during the past two years. Financial gangsters hold billions in reserves, while the U. S. Treasury is both penniless and deeply in debt. Even the national currency is driven into complete disrespect, again for illicit gain of those whose pecuniary appetites know no bounds.
Goldman Sachs Rules
    This week Goldman Sachs reported net profits of $3.44 billion for April, May and June, equaling about $54 million per business day during the three months. This news came only days after the public learned from a criminal court hearing on July 4 that Goldman Sachs owns computer software “codes” which enable a knowledgeable user to manipulate financial markets worldwide. Criminal scandal of lower magnitude has caused democratically elected governments to fall elsewhere, but in the U. S. A. of 2009 elitist-dominated media do not even report it as news. Such is the depth of the national dilemma.
    Goldman’s earnings report inspired Matt Taibbi to write again about the firm’s symbiotic relationship with federal power which pours so much good fortune, not to mention dollars, into Goldman’s coffers. Financial commentator Max Keiser, speaking in a Paris television interview on July 16 directly condemned Goldman Sachs for financial crimes and terrorism deserving indictment and trial before an international tribunal at The Hague in The Netherlands. The more reserved professor of finance interviewed alongside Keiser expressed hope the G20 nations can bring sufficient pressure on U. S. government to reform its financial markets.
    In summation, significant observers detect great danger, urgency and crisis in U. S. circumstances, but none of this is addressed by government leadership or in major media due to elitist domination. According to past experience, events will await another crisis, which will be used again by elitists to loot more and to consolidate power even further. Somehow humanity must gather its forces to confront the onslaught. ~