Newspaper logo  
 
 
Local Stories, Events

Ref. : Civic Events

Ref. : Arts & Education Events

Ref. : Public Service Notices

Books, Films, Arts & Education
Letters

Ref. : Letters to the editor

Health Care & Environment

04.16 'That Backfired': Watch Bernie Sanders Counter Right-Wing Talking Point, Make Case for Medicare for All on Fox News

04.16 Cause of cancer is written into DNA of tumours, scientists find, creating a 'black box' for origin of disease

04.16 Scientists Unveil World's First Human Heart 3D-Printed From Patients' Own Cells

04.15 What It Was Like to Have a Baby in Sweden

04.14 'Shut the country down': British climate group Extinction Rebellion heads to US

04.13 With Youth Climate Actions Backed by Leading Experts, Latest Round of Protests Highlights Call for Bold and Urgent Action

04.11 Will You Rise Up for Climate Justice Next Week? Don’t Let Fatalism and Cynicism Hold You Back

04.11 300+ Groups to Congress: #GreenNewDeal 'Must Transform Our Food System and Revitalize Rural America'

04.10 Glaciers and arctic ice are vanishing. Time to get radical before it's too late [Willfully ignorant "conservatives" and corporately-bribed liberals diddle self-obsessively while life on earth dies]

04.10 Is there a beautiful, briny solution to the world’s clean water crisis?

04.08 'The perfect storm': hydrogen gains ground on LNG as alternative fuel [Good!]

04.08 Himalayan glaciers on the eve of destruction

04.08 Russia moves to free nearly 100 captive whales after outcry [Good!]

News Media Matters

04.12 DOJ Charging Docs: Julian Assange Committed Journalism

Daily: FAIR Blog
The Daily Howler

US Politics, Policy & 'Culture'

04.16 How Progressives Can Fix the Progressive Income Tax

04.16 Why the US Elected a Despot, and Why It's Poised To Do It Again

04.16 'This Is a Big Deal': Warren Vows to Ban New Leases for Fossil Fuel Drilling Offshore and on Public Lands

04.15 'We're not a dump' – poor Alabama towns struggle under the stench of toxic landfills

04.15 Bernie Sanders Accuses Liberal Think Tank of Smearing Progressive Candidates

04.14 Cummings moves to subpoena Trump financial records

04.14 'Shut the country down': British climate group Extinction Rebellion heads to US

04.14 Progressives Urge Democratic Leaders to Fight Back Against '200 MPH Right-Wing War Machine' Targeting Ilhan Omar

04.14 Why Conservative Attacks on an Out-of-Context Ilhan Omar Quote Are Dangerous

Justice Matters
High Crimes
Economics & Corrupt Capitalism

04.12 Socialism for the Rich, Capitalism for the Rest [4:30 video]

04.09 Neoliberalism promised freedom – instead it delivers stifling control [Walmartization]

04.09 Wall Street loves socialism for bankers – but not for ordinary people

International & Futurism

04.16 Our Zero Emission Future [Be smart or life dies]

04.16 'The Time for Excuses Is Over': Extinction Rebellion Protests Shut Down European Cities

04.16 The Trump-Netanyahu Alliance

04.15 The Guardian view on Extinction Rebellion: one small step

04.15 Only rebellion will prevent an ecological apocalypse

04.15 Thousands join Extinction Rebellion protests across London

04.15 Fear and despair engulf refugees in Libya's 'market of human beings' [EU policy should more directly minimize factors creating immigration. Essential infrastructure projects and jobs are desperately needed for villages in poverty, most especially including renewable energy, clean water and waste managment.]

04.14 World leaders ignore David Attenborough at their peril

04.14 The Guardian view on Assange and extradition: say no to the US

04.14 Finland election: voters may pick first leftist prime minister in two decades

04.14 Rape and abuse: the price of a job in Spain’s strawberry industry?

04.14 What does the rest of Europe think about our Brexit shambles?

04.14 Brexit: Corbyn told to back new EU referendum or lose millions of supporters

04.14 Progressive Leaders Condemn Netanyahu's Vow to Annex West Bank as Unlawful 'Moral Catastrophe'

We are a non-profit Internet-only newspaper publication founded in 1973. Your donation is essential to our survival.

You can also mail a check to:
Baltimore News Network, Inc.
P.O. Box 42581
Baltimore, MD 21284-2581
Google
This site Web
  The Rich Have Stolen the Economy
Newspaper logo

COMMENTARY:

The Rich Have Stolen the Economy

From Offshoring Jobs to Bailing Out Bankers

by Paul Craig Roberts
Originally published on 16 October 2009

The gifts of billions of dollars of taxpayers’ money provided the banks with an abundance of low cost capital that has boosted the banks’ profits, while the taxpayers who provided the capital are increasingly unemployed and homeless.

Bloomberg reports that Treasury Secretary Timothy Geithner’s closest aides earned millions of dollars a year working for Goldman Sachs, Citigroup and other Wall Street firms. Bloomberg adds that none of these aides faced Senate confirmation. Yet, they are overseeing the handout of hundreds of billions of dollars of taxpayer funds to their former employers.

The gifts of billions of dollars of taxpayers’ money provided the banks with an abundance of low cost capital that has boosted the banks’ profits, while the taxpayers who provided the capital are increasingly unemployed and homeless.

JPMorgan Chase announced that it has earned $3.6 billion in the third quarter of this year.

Goldman Sachs has made so much money during this year of economic crisis that enormous bonuses are in the works. The London Evening Standard reports that Goldman Sachs’ “5,500 London staff can look forward to record average payouts of around 500,000 pounds ($800,000) each. Senior executives will get bonuses of several million pounds each with the highest paid as much as 10 million pounds ($16 million).“

In the event the banksters can’t figure out how to enjoy the riches, the Financial Times is offering a new magazine--”How To Spend It.” New York City’s retailers are praying for some of it, suffering a 15.3 per cent vacancy rate on Fifth Avenue. Statistician John Williams (shadowstats.com) reports that retail sales adjusted for inflation have declined to the level of 10 years ago: “Virtually 10 years worth of real retail sales growth has been destroyed in the still unfolding depression.”

Meanwhile, occupants of New York City’s homeless shelters have reached the all time high of 39,000, 16,000 of whom are children.

Overwhelmed by the number of homeless on the streets, the New York City government is offering one-way free airline tickets to the homeless if they will leave the city.

New York City government is so overwhelmed that it is paying $90 per night per apartment to rent unsold new apartments for the homeless. Desperate, the city government is offering one-way free airline tickets to the homeless if they will leave the city. It is charging rent to shelter residents who have jobs. A single mother earning $800 per month is paying $336 in shelter rent.

Long-term unemployment has become a serious problem across the country, doubling the real unemployment rate from the reported 10 per cent to 20 per cent.

Long-term unemployment has become a serious problem across the country, doubling the unemployment rate from the reported 10 per cent to 20 per cent. Now hundreds of thousands more Americans are beginning to run out of extended unemployment benefits. High unemployment has made 2009 a banner year for military recruitment.

A record number of Americans, more than one in nine, are on food stamps. Mortgage delinquencies are rising as home prices fall. According to Jay Brinkmann of the Mortgage Bankers Association, job losses have spread the problem from subprime loans to prime fixed-rate loans. At the Wise, Virginia, fairgrounds, 2,000 people waited in lines for free dental and health care.

While the US speeds plans for the ultimate bunker buster bomb and President Obama prepares to send another 45,000 troops into Afghanistan, 44,789 Americans die every year from lack of medical treatment. National Guardsmen say they would rather face the Taliban than the US economy.

In the midst of the worst unemployment since the Great Depression, US corporations continue to offshore jobs and to replace their remaining US employees with lower paid foreigners on work visas.

Little wonder. In the midst of the worst unemployment since the Great Depression, US corporations continue to offshore jobs and to replace their remaining US employees with lower paid foreigners on work visas.

The offshoring of jobs, the bailout of rich banksters, and war deficits are destroying the value of the US dollar. Since last spring the US dollar has been rapidly losing value. The currency of the hegemonic superpower has declined 14 per cent against the Botswana pula, 22 per cent against Brazil’s real, and 11 per cent against the Russian ruble. Once the dollar loses its reserve currency status, the US will be unable to pay for its imports or to finance its government budget deficits.

Offshoring has made Americans heavily dependent on imports, and the dollar’s loss of purchasing power will further erode American incomes. As the Federal Reserve is forced to monetize Treasury debt issues, domestic inflation will break out. Except for the banksters and the offshoring CEOs, there is no source of consumer demand to drive the US economy.

The political system is unresponsive to the American people.

The political system is unresponsive to the American people. It is monopolized by a few powerful interest groups that control campaign contributions. Interest groups have exercised their power to monopolize the economy for the benefit of themselves, the American people be damned.


Paul Craig RobertsPaul Craig Roberts is an economist who served as an Assistant Secretary of the Treasury in the Reagan Administration earning fame as the "Father of Reaganomics". He is a former editor and columnist for the Wall Street Journal, Business Week, and Scripps Howard News Service. He is the author of Supply-Side Revolution: An Insider's Account of Policymaking in Washington; Alienation and the Soviet Economy: The Collapse of the Socialist Era and Meltdown: Inside the Soviet Economy, and is the co-author with Lawrence M. Stratton of The Tyranny of Good Intentions: How Prosecutors and Law Enforcement Are Trampling the Constitution in the Name of Justice.

This article is published in the Baltimore Chronicle with permission of the author.



Copyright © 2009 The Baltimore News Network. All rights reserved.

Republication or redistribution of Baltimore Chronicle content is expressly prohibited without their prior written consent.

Baltimore News Network, Inc., sponsor of this web site, is a nonprofit organization and does not make political endorsements. The opinions expressed in stories posted on this web site are the authors' own.

This story was published on October 22, 2009.

 

Public Service Ads: