Wednesday, December 16, 2009

Today's America: Oligarchy? Financial plutocracy? Tax trickle-up economy? Whatever it is, it's no longer capitalism

Obama is proving to be another handmaiden of the plutocrats
(Online Journal) -- By Paul Craig Roberts --

Goldman Sachs senior executives are arming themselves with New York gun permits, according to Alice Schroeder on Bloomberg.com. The banksters “are now equipped to defend themselves if there is a populist uprising against the bank.”

One can understand why the banksters are worried. The company, now known as Gold Sacks, has a large responsibility for the financial crisis and the fraudulent “securities” that wrecked the world economy and Americans’ pensions. A former Gold Sacks CEO had control of the US Treasury during the Bush regime from which he diverted $750 billion to bail out the banks, thus supplying them with free capital. Gold Sacks made $27,000 million during the first three quarters of 2009 and is paying out massive bonuses, leaving the busted taxpayers with the debt and interest charges.

Little wonder the US can’t afford health care for the uninsured and unemployed. It is far more important to finance multimillion dollar bonuses for investment bankers. I mean, what would we do without capitalism?

Of course, it is not really capitalism. It is an oligarchy or a financial plutocracy.

In a failed state, the government’s priorities are totally separate from those of the people. The US can’t afford health care or a bailout for jobless homeowners, but it can afford a pointless war and multimillion dollar bonuses for banksters who wrecked the economy.

Millions of laid-off workers lost their health insurance subsidies on December 1, the day President Obama announced a $30 billion “surge” in Afghanistan.

The expensive “surge” came 24 hours after the Detroit Free Press published a 127-page supplement of home foreclosures in its metro area. In Michigan 48 percent of mortgages are on properties that are worth less than the loan, according to a report from First American CoreLogic.

As bad as it is in Michigan, the state ranks seventh in foreclosures, so six states are in even more dire straits.

Why does President Obama think the US can afford a war in Afghanistan when the US economy is falling apart? Massive joblessness. Massive homelessness. Millions of Americans without medical care.

The additional $30 billion for the war comes on top of the $65 billion already appropriated for the year. These appropriations are always fattened with supplementary appropriations. The true cost is well in excess of $100,000,000,000.

Who’s going to pay for it? Democratic Representative David Obey, chairman of the House Appropriations Committee proposes to raise income taxes on everyone earning more than $30,000.

This is called “trickle-up” economics. You tax the little guy and give the money to the armaments companies...MORE...LINK

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