classical economics
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Elitist Agenda Advances

From the Front
By Wayne Jett © March 1, 2010
    The social agenda propagandized by H. G. Wells in the early 20th Century is on the march 100 years later, most importantly in the U. S. “Social” in this sense has everything to do with economics and finance, as the dominant elite use powerful influence emanating from their vast capital to press for control of health care access, control of energy use and subjugation of the middle class. The middle class stirs, uncontrollable factors present setbacks, but the elitist onslaught advances.
The World Turns: Monetary Mess Worsens
    If only U. S. monetary policy were as steady and reliable as planetary mechanics in a good way. Instead, the Federal Reserve and Treasury are dependably disastrous for domestic and global patrons of the dollar and U. S. national interests.
    Fed chairman Ben Bernanke and Treasury secretary Henry Paulson claimed the mantle of heroism for forestalling a second Great Depression in 2008, but their aims and results were otherwise. They poured hundreds of billions in inflationary and debt-creating dollars into the private accounts of Wall Street’s favored club of four: J. P. Morgan Chase, Goldman Sachs, Morgan Stanley and Citigroup. All this was done at the future expense of middle class producers and taxpayers. Federal debt is already so sharply higher it practically assures default, even before interest rates rise.
    The financial sector’s perennially smart customers’ men say inflation is the answer. Simply inflate the dollar even more (today’s dollar is worth three cents of the 1970 dollar), they say, and big debts are washed away. Au contraire. Disregarding inflation’s robbery of middle class work and ingenuity, it will not overcome the debt burden. Even Keynesian academics agree on this point.
    Bernanke testified in the House on February 25 that the Fed will not inflate the dollar to overcome the federal debt. This might be discounted in light of the Fed’s on-going monetization of Treasury borrowing. But the overriding fact is that big banks, including the Federal Reserve, are creditors who are owed dollars. Inflating the dollar wipes out their assets. Assuming U. S. banks and hedge funds position themselves correctly at the right time, deflation (rise in dollar unit value to a gold price below about $600/oz.) is their preferred outcome.
    Deflation would be very painful for business, financial markets, the middle class and the U. S. government. But for those with capital liquidity, the buying opportunity would enable consolidation of competition, precisely the objective of the dominant elite. This would be consistent with the sharp increase in unemployment since 2007: a mercantilist, monopolist economic model provides less production and fewer jobs than the free market competitive model. The Obama domestic agenda is directed towards achieving the former model – not the latter.
Health Care Federal Cram-Down Arrives
    Nationalized health care – not job creation – is the Obama administration’s focus. How much more evidence must be piled on that Obama is driving the agenda of the dominant elite, while masquerading as savior of the poor and common people? Sadly, the Left persuades too many middle class voters that it takes money from the dominant elite (George Soros being one) only to champion the poor and downtrodden. The point is not to be partisan, but to encourage examination of underlying effects of policy.
    As foreseen, the dominant elite intend to wait no longer for control of access to health care. The operative word is “control” not “improve” access to health care in the U. S. The Senate majority leader Harry Reid (D-NV) will shove aside the filibuster rule and permit federal takeover of health care by majority vote, although a few short years ago Democratic senators insisted the right to filibuster applied even to confirmation of presidential appointees to executive and judicial offices.
    As the Senate blows away the filibuster rule it will be tempted to move even more sharply towards single payer nationalization of health care. This would attract more support from radicals in the House, even if funds for abortion are removed from the bill to attract Democrats opposed to abortion. This combination of drafting changes is most dangerous so far as chances of passage are concerned.
    One thing should be completely clear by this point. Job creation is not an Obama priority. It is not even an objective. To the contrary, the mercantilist economic model envisions lower production, lower employment and lower standard of living for middle and lower classes. Nationalization of health care to achieve population growth control is the top priority because the dominant elite are confident of their financial strength and their control of federal policy. They are not reluctant to play hardball in ramming their health care bill through Congress regardless of popularity polls. Majority leader Reid and Speaker Pelosi are committed to the elitist agenda. Middle class strength will be tested in the crucial fight in the House.
SEC Adopts Fake Uptick Rule
    The SEC repealed the uptick rule in the first week of July, 2007, only three months after settling a mammoth case against Goldman Sachs and its clients for a measly $2 million fine paid by Goldman. Goldman had permitted its clients to mark short sales as long sales throughout the market crash of March, 2000, through October, 2002. Those clients deceitfully avoided compliance with the uptick rule, and were able to crush stock prices by selling without upticks.
    After incessant criticism from investors of its irresponsible action, on February 24 the SEC adopted an insultingly useless substitute for the uptick rule. Manipulators may continue to pound any stock price down 9.9% every day with no restriction whatsoever. But if the price of a stock falls more than 10% in any trading session, the SEC really comes down hard: the shares may not be sold short during the balance of that trading session or the next.
    Short sellers can take a stock’s price down 60% within two weeks and never trigger the new rule. In 334 pages of regulatory mind numbing, the SEC says (p. 325) its new “circuit breaker [rule] will better target short selling that may be related to bear raids and other forms of manipulation.”  The SEC vote was three to two in favor of adoption, with Democrats voting for and Republicans voting against. The two Republicans wanted no rule at all limiting short selling. This is testament to Wall Street’s ruthless capture of this pathetic agency.
    Harry Markopolos, the financial analyst who tried nearly nine years to get the SEC to stop Bernard Madoff’s fraud – unsuccessfully, of course – has written a book out describing his experience. The New York Times Magazine of February 28 reports this exchange in a brief interview of Madoff:
    NYT: “You met last year with Mary Schapiro, the current head     of the S.E.C. How did that go?”
    HM: “I would say she was coldly polite. Her general counsel,     David Becker, did most of the talking. He and I did not get     along at all. He was getting ready to come across the coffee     table     and strangle me.
How much more evidence must be compiled that the SEC does not work for the American people or for ordinary investors? The agency is “owned” by the dominant elite of Wall Street.
Climate Change Digs In
    In the midst of the most severe winter in decades across North America and Europe, the always contrived case for man-made climate change or global warming has continued to disintegrate. The limited, suspect data used to theorize the “hockey stick” rise in global temperatures have gone missing, and the head of the British climate research unit at the University of East Anglia now accepts that the Medieval Warming Period between 800 and 1300 A.D. may have been worldwide. This is not such a revelation, since other reputable climate scientists have believed that to be the case for some time, and that the MWP was actually warmer than the present. The former CRU head also concedes no significant global warming has occurred since 1995.
    Al Gore has resurfaced, still spouting “truth” that global warming is happening, humans are causing it and they must be stopped from dumping tons of carbon dioxide into the atmosphere daily. He says that carbon dioxide is the culprit, despite the fact that carbon dioxide comprises only three one-hundredths of 1% of air. Again, CO2 is 0.0314% of air, while water vapor is 3% to 5% of air, meaning water vapor is about 100 to 159 times as prevalent in air as carbon dioxide. Water vapor has specific heat capacity more than twice that of an equal volume of carbon dioxide.  
   Water vapor in the air has the capacity to capture and retain at least 100 times more heat than carbon dioxide. Shouldn’t Gore be imploring Congress to destroy 200 times as many jobs to stop water evaporation as to stop use of carbon-based energy? Gore, the truth-telling scientist-statesman who, “as a businessman, is an investor in alternative energy companies,” so far has not implored all nations to stop evaporation from oceans and lakes. The world waits with bated breath and another Nobel Prize for anti-evaporation technology.
    Gore is cashing in on elitist objectives to take control of energy use by the middle class and to raise the cost of energy. Cap-and-trade laws would transfer additional hundreds of billions from middle class earnings through Wall Street to financial schemers like “professor” Gore.
    What a shame the scarlet letter got a bad name back in 1850 when Nathaniel Hawthorne wrote of its unwise application to beautiful, young Hester Prynne in colonial Massachusetts. A permanent means of identifying climate change charlatans would be useful about now. ~