MORE FREE MONEY!
That's right, brand new BOE Governor and GS sock puppet, Mark Carney, has said that inflation running 50% over their 2% mandate won't stop the BOE from continuing to pump money into the market – until the unemployment rate is below 6.5% – and not even then right away.
After doing as much damage as possible to the Canadian Economy as their Central Bankster, Goldman Sachs dispatched Mark Carney to the UK this year to run the UK Bank where he, along with Mario Draghi and other key GS alumni placed in EU Banks are setting the policy of promising to keep giving Big Business near-zero percent loans – UNLESS THEY START HIRING PEOPLE.
As long as we keep 7% of the population or more unemployed – the BOE, the ECB and the FED have all promised to keep interest rates at 0 – 0.5%. That's become very clear. That's why our markets sell off after a GOOD jobs number and burst higher on a bad one.
The top 1% and their Bankster buddies don't give a crap about whether or not the bottom 80% can afford to live – only that they can keep borrowing money for a little and lending it back out for a lot.
The Monetary Policy Committee left its forecasts for inflation broadly unchanged. It expects the inflation rate to remain close to 3% in the near-term, and be above its 2.0% target for much of the coming two years. The European Central Bank has been issuing a vague form of forward guidance since July, saying its governing council of rate-setters expects the main policy rate to be at current levels or lower for "an extended period of time," as long as inflation looks set to be subdued over the medium term.
3% inflation may not sound too bad, unless you consider that wages are not growing at all. That then means that, if this condition persists for 33 years, all workers officially become slaves, forced to work for 0 under the inflated economy. This is, of course, the actual goal of the Goldman Sachs Global Economy – a future full of wage slavery as more and more money funnels up to the top 1%.
We may, in fact, be barrelling into what Marx called the end-game of Capitalism, where self-expanding growth, consists of “imaginary” and “fictitious” capital inasmuch as it cannot be realized over time. When fictitious financial gains are obliged to confront the impossibility of paying off the exponential growth in debt claims – that is, when scheduled debt service exceeds the ability to pay – breaks in the chain of payments cause crises. “The greater portion of the banking capital is, therefore, purely fictitious and consists of certificates of indebtedness (bills of exchange), government securities (which represent spent capital), and stocks (claims on future yields of production).”
A point arrives at which bankers and investors recognize that no society’s productive powers can long support the growth of interest-bearing debt at compound rates. Seeing that the pretense must end, they call in their loans and foreclose on the property of debtors, forcing the sale of property under crisis conditions as the financial system collapses in a convulsion of bankruptcy.
To illustrate the inexorable force of usury capital unchecked, Marx poked fun at Richard Price’s calculations about the magical power of compound interest, noting that a penny saved at the birth of Jesus at 5% would have amounted by Price’s day to a solid sphere of gold extending from the sun out to the planet Jupiter. “The good Price was simply dazzled by the enormous quantities resulting from geometrical progression of numbers. … he regards capital as a self-acting thing, without any regard to the conditions of reproduction of labour, as a mere self-increasing number,” subject to the growth formula Surplus = Capital (1 + interest rate) * n, with n representing the number of years money is left to accrue interest.
In other words, you can't simply expand the money supply and expand the PRICE of stocks and commodities without any actual labor contributing to create actual VALUE – otherwise you have a bubble or a house of cards, with no foundation that is just looking for a reason to collapse. Clearly the Goldman Sachs Alumni Club is building a multi-Trillion Dollar Global house of cards, where the growth of labor and the benefit of the bottom 90% has been completely wrung out of the equations!
Most of you reading this are in the lucky top 10% so I guess we can just close our eyes and hope Marx was wrong and Goldman is right and that we can have an economic recovery without the participation of 80% of the people who happen to live in that economy.
To some extent, that's true – our level of income disparity today is about the same as it was in the Great Depression, when 25% of the people were out of work but this time is different because, unlike the Great Depression, our Government immediately assumed Trillions of Dollars in debt to make sure investors and bankers were able to ride out the crisis unscathed.
We are currently witnessing the greatest transfer of wealth in the history of mankind as the bottom 90% of the people in the US, and around the World, are called upon to make sacrifices (austerity, unemployment, cuts in social services) while simultaneously going into debt (through the Government as well as directly to banks and credit lenders) in order to funnel Trillions of Dollars (through inflation, Government Debt, tax breaks and wage concessions) to the top 10% (mostly the 1%) and their Corporations – as reflected in the growth in their wealth and the record Corporate Profits.
Call me a Marxist but I don't see this as sustainable. Even if I get my share, what are we going to do with all those poor people we're creating? In the old days, we of the ruling class used to be trained to use a riding crop at an early age because the skill of whipping horses could easily be translated to whipping slaves.
Perhaps we could put chips in poor people that give them shocks and all we have to do it hit a button on our smart-phones – that's a skill we've been training for our whole lives! It's a very easy step from discipline to being able to crunch the numbers on who should live and who should die – Congress is doing it now and, if Obama hadn't vetoed the termination of food-stamp funding – CAT would be selling bulldozers like crazy to sweep away the bodies of inner-city poor.
See, there's always a bright side to Capitalism – just make damned sure you're on it!
