View Single Post
Old 11-18-2014, 03:03 AM
Danny B Danny B is online now
Platinum Member
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,886
Regulatory capture and short-term gains

" Corporate profits as a percentage of GNP skyrocketed from 4% to 10% in the space of six years. The banking cabal had captured the system."
"Corporate profits soared from 4.5% of GNP to an all-time high of 10.5% in the space of three years and have remained at this elevated level."

"From the end of World War II until the mid-1970s employee compensation as a percentage of GNP was consistently between 49% and 51%. "
"From the moment Nixon closed the gold window, employee compensation as percentage of GNP relentlessly declined for the next quarter of a century from 51% to 44%. "
"Their financial engineering machinations on behalf of Wall Street did nothing for the average worker on Main Street. Employee compensation as a percentage of GNP declined from 47% to 44% BEFORE the financial collapse.
Unequivocal proof that Bernanke’s sole purpose of QE and ZIRP was to benefit his Wall Street owners can be seen in the continued decline from 44% to 42% since 2008."
" When profits are at record highs and tax payments at record lows you know they have captured the system. "
WHAT THE FED HAS WROUGHT « The Burning Platform

" The main point is that housing exploded from 3 times median income to 12 times median income as a direct result of Fed policies."
The cost of an education has risen at 3 times the rate of inflation.
With regulatory capture, all controls on the upper loop of the economy were removed. BUT, the upper loop creates money and NOT wealth. The lower loop must work hard to create wealth or,,, they won't eat.
The productive loop of the economy is starved for capital, wages and consumption. Transfer payments help people survive but, the Dole is not a substitute for an economy.

The problem with ZIRP and free money is that you get addicted to it. Only THREE companies in America have AAA credit rating. If interest rates returned to their historical number of 5--6% , 50% of companies would be immediately bankrupt.
A corporation is simply a pile of money looking to grow bigger. It doesn't consider the finer points of trade. if you impoverish all your potential customers, your business dies.
Reply With Quote