Media Elite Denounce Looting Even as Billionaires Reap Record Profits from Taxpayer-Funded Bailouts

Media Elite Denounce Looting Even as Billionaires Reap Record Profits from Taxpayer-Funded Bailouts

Report from the Institute for Policy Studies (IPS) reveals that the looting in Minneapolis pales into insignificance compared with the enormous wealth American’s billionaire class has managed to accrue during the pandemic. In the ten weeks since the nationwide lockdown first began, the group calculates that billionaires have increased their wealth by $485 billion – equal to 16.5 percent. This half-trillion-dollar rise, for Chuck Collins, Director of the IPS’ Program on Inequality and the Common Good, is something close to looting the whole economy.
Some of the biggest winners in the last few weeks, according to the IPS, include Amazon CEO Jeff Bezos (up over $34 billion in two months), Facebook co-founder Mark Zuckerberg (up over $25 billion) and Microsoft’s Bill Gates, who increased his already enormous fortune by $8 billion. Meanwhile, Elon Musk, whose California Tesla car plant was closed for months, has seen his net worth increase by almost 50 percent, to over $36 billion. Even in the last week, America’s billionaires’ fortunes have increased by $50 billion.
At the same time, unemployment has surged to over 40 million, and food banks across the country are inundated with customers desperate for anything they can get. Around one third of renters in the United States failed to pay their rent in April and May.

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The Great Depression 2.0 & Corona Shock

COVID-19: The Great Depression & the Corona Shock

Many economists believe that a recession is already underway. So do millions of Americans struggling with bills and job losses. While the ghosts of the 2008 financial crisis that sent inequality soaring to new heights in this country are still with us, it’s become abundantly clear that the economic disaster brought on by the Covid-19 pandemic has already left the initial shock of that crisis in the dust. While the world has certainly experienced its share of staggering jolts in the past, this cycle of events is likely to prove unparalleled.
While the U.S. has come a long way since the Great Depression, there are still lessons to be learned from it about where we might be heading today. Four key factors from that era — unemployment, the economy, the market, and the Federal Reserve’s response — can provide us with a roadmap for putting this era into historical context.

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Corona Pandemic Enriching the Billionaires

Study: Coronavirus Has Been a Massive Boon for America’s Billionaires

A new study found that in the past eight weeks alone, the country’s super wealthy have added a further $368.8 billion to their already enormous fortunes. All this comes at the same time that the economy has undeniably imploded for working people. A record 36 million Americans have filed for unemployment insurance, with millions more losing their employer-based healthcare plans, and around a third of the country not paying its rent. Of course, the money is not coming from nowhere. It is certainly not coming from billionaires’ hard work. It is coming from us: from our pockets and those of the global poor, who will be forced to pay for the virus and the huge tax cuts later. The fact that billionaires’ wealth is rising so rapidly in a period of economic collapse is a sign that the rich’s wealth is barely even connected to productive forces anymore and has more to do with how much wealth one can take from public coffers.

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Wall Street Wins Agains, Bailouts in the time of corona virus

COVID-19: Wall Street Wins Again

Once the virus recedes, stock and debt bubbles inflated over the past 12 years are likely to begin to grow again, fueled as then by central bank policies and federal favoritism. In other words, we’ve seen this movie before, but call the sequel: Contagion Meets Wall Street.
Below the surface, however, an epic debt bubble was once again growing, fostered in part by record corporate debt levels. In 2009, as the economy was just beginning to show the first signs of emerging from the Great Recession, the average American company owed $2 of debt for every $1 it earned. Fast forward to today and that ratio is about $3 to $1. For some companies, it’s as high as $15 to $1. For Boeing, the second largest recipient of federal funding in this country, it’s $37 to $1.
What that meant was simple enough: anything that disrupted the system was going to be exponentially devastating. Enter the coronavirus, which is now creating a perfect storm on Wall Street that’s guaranteed to ripple through Main Street.

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Monetary Easing

The Monetary Abyss Stares Back And Asks Who’s Next?

That’s why all money printing is fundamentally immoral. It’s thievery, transferring wealth from the holders of money, savers, to the holders of the new money. This system is ultimately a Ponzi scheme piling credit on top of credit until there are no more greater fools to sell the new debt to.
Bankruptcies or bailouts? That’s the question you should be asking yourself. Are you willing to take that pain to stop the money machine that funds the death and destruction? If not then you aren’t serious about wanting it to end.

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popping-financial-bubble

The Everything Bubble, Fictitious Capital and Coronavirus

The moral of the story is that it is not possible to print wealth or value. Money in its paper representation of the real thing, e.g., gold, is not wealth it is a claim on wealth.
With regard to Investment banks like Goldman Sachs and the commercial banks they do not create value; they are purely rent-extractive. For example, commercial banks make a loan out of thin air, debit this loan to the would-be mortgagee who then becomes a source of permanent income flow to the bank for the next 25 years.
And what has all of this to do with Coronavirus? Well, everything actually.
The grotesquely over-leveraged world economy was heading for massive correction. The world was a bubble of paper money looking for a pin. It found one.

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Covid-19 Pandemic and World Hegemony Battle USA vs China

Corona Pandemic: The Perfect Scapegoat for the Financial & ‘Everything Bubble’ Market Crash (The Great Depression 2.0)

As the financial collapse is inevitable as the Federal Reserve can’t keep printing money and creates more bubbles that at some point definitely will pop, the Covid-19 pandemic provided the global elites with the perfect scapegoat where it will be blamed (and it already started) for all the economic and financial crisis, for the massif layoffs, and the economic depression.
Not only that the virus pandemic provides the right excuse, scapegoat and cover up for the economic and financial crash which is going to be worse than the 2008 “Great Recession”, it also attacked severely China and Iran, two countries USA perceives as enemies. It also caused huge number of deaths in Italy, the only and the first country in EU to sign China’s Belt and Road Initiative. With the mysterious origin of the corona virus is Covid-19 pandemic “Killing Several Birds with One Stone” strategy?
While most of the world is figthing the virus pandemic, the battle for world hegemony continues as the global superpower will do everything it can to stay at the top and attack any country it considers as threat or enemy. At the core of it all, it is about United States maintaining its hegemony as the world top power and maintaining its currency as the world reserve currency.

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weekly change in the Fed Balance Sheet from Deutsche Bank

I, Who Vowed to Never-Ever Short Stocks Again, Just Shorted the Entire Market

And even after today’s dip, the S&P 500 is up nearly 29% for the year, and the Nasdaq 35%, despite lackluster growth in the global economy, where many of the S&P 500 companies are getting the majority of their revenues.
Mega-weight in the indices, Apple, is a good example: shares soared 84% in the year, though its revenues ticked up only 2%. This is not a growth story. This is an exuberance story where nothing that happens in reality – such as lacking revenue growth – matters, as we’re now told by enthusiastic crowds everywhere.
Until just a couple of months ago, the touts were out there touting negative interest rates soon to come to the US and thus making stocks the only place to be. Those touts have now been run over by the reality. Now they’re touting QE4 by the Fed, or whatever. And people were looking for any reason to buy.
The unanimity of it all was astounding. I’ve seen this before, but not in this magnitude.

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Elon Musk, founder, CEO and lead designer at SpaceX and co-founder of Tesla, speaks at the International Space Station Research and Development Conference in Washington

Broke Billionaires (and Other Ridiculous Signs of The Top)

Uber, WeWork, Lyft, Slack, Peloton, Pinterest– there are so many tech companies, or companies masquerading as tech companies– that consistently lose tons of money. It’s absurd. In finance, a startup that eventually becomes worth more than a billion dollars is referred to as a ‘unicorn’ because it’s supposed to be so rare that it borders on impossible. And that’s basically what these companies are– donkeys with fake horns. They’re not real unicorns.
They bleed cash. Many of them have no hope of ever turning a profit. And the rock-star famous people who own them are often just “Billionaires In Name Only,’or BINOs.

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jerome-powell-pinocchio-300x208

The Fed Is Lying To Us

Things are now serious. Here in late 2019, both the Federal Reserve and the ECB are now both easing again – or back to ‘fraudulent money printing’. A fraud is meant to deceive while removing something of value from one or more parties.
When printing money, the central banks say they are doing it to protect the economy, jobs and the financial system.
But what’s actually happening is that wealth is flowing like a raging river towards a select few individuals and corporations.
It’s critical to understand that the central banks cannot print up prosperity. All they can do, being redistributive organizations, is take purchasing power away from one side and hand it to another. So the key question to be asking now is: Who’s winning and who’s losing? Well, here in the US, we already know that it’s the tippy-top 0.1% that is doing almost all of the ‘winning.’ The next 0.9% are doing pretty well, too. But by the time we get just slightly below the top 10%, we run out of “winners”.

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Peter Schiff - Great Recession's Coming

Peter Schiff: The Fed Will Try Again But It’s Not Going to Work

The Fed managed to “rescue” the economy after the financial crisis, but in the process, it created an even bigger bubble than the one that popped in ’08. This bubble is about to burst and the Fed will try to repeat the process. The difference is this time it won’t work, as Peter explains. He added: “We’re going to have a deep recession with rising interest rates and this whole thing is going to come imploding down.”

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Largarde (IMF) and Moreno (Ecuador)

Ecuador – and the IMF’s Killing Spree

For close to 40 years the IMF has weaponized its handle on the western economy through the dollar-based western monetary system, and brutally destroyed nation after nation, thereby killed hundreds of thousands of people. Indirectly, of course, as the IMF would not use traditional guns and bombs, but financial instruments that kill – they kill by famine, by economic strangulation, preventing indispensable medical equipment and medication entering a country, even preventing food from being imported, or being imported at horrendous prices only the rich can pay.

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