Hey if you knew Friday what Republicans were going to do over the weekend you could place bets on the stock market, and make millions.
Because no one on Wall Street ever does.
* In December 2008, the Fed hired Pimco, along with three other big Wall Street firms, to implement enormous purchases of agency MBS to keep interest rates low and spur the U.S. economy.
* Over the next few years, Pimco repeatedly invested heavily in those same securities – far more than other big investors, even considering its size.
* Pimco’s mortgage plays in 2009 and 2012 – when Fed buying was heavy – handed the firm and investors in the Total Return Fund a gain of $10 billion, excluding net investment flows, according to Reuters estimates.
PS I also mean people at the Fed should go to jail for this.
But we already know they won’t.
Another PS – $10 billion could but nice things for We the People. But it won’t.
If I had knowledge of what the Republicans were going to do with the government shutdown and the debt ceiling, and when they were going to do it, I could make billions on the stock market.
And if I was one of those billionaires who funds the Republican Party, I WOULD have that knowledge.
Just sayin’ …
While our government is laying off hundreds and hundreds of thousands and cutting services in the name of cutting deficits, a new report exposes that taxpayers are handing more than $1 trillion a year to the wealthiest.
DC Focused On Deficits Not Jobs
Instead of focusing on jobs, Congress and the White House obsess on how to cut the budget -– the things We the People do to make our lives and economy better. While the “sequester” has already cost 900,000 jobs — 1.6 million thru 2014 — Republicans are threatening to shut down the government and force the country to default on its debt as leverage to force even more cuts.
Republican Speaker of the House John Boehner has repeatedly said the country is “broke.” For example, “We’re broke, broke going on bankrupt,” Boehner said Feb. 28, 2011. Here he is saying it on Dec. 11, 2012, “Let’s be honest. We’re broke.”
So we have to cut and cut and cut, even though the cuts are costing millions of jobs and damaging the economy and the prospects for our country and peoples’ future, because supposedly “we’re broke.”
New Report: More Than $1 Trillion Per Year Handed To Wealthiest
But a report out today from the National Priorities Project (NPP) shows that the country is handing more than $1 trillion to the already-wealthy.
That’s right, the government is cutting services and laying off hundreds upon hundreds of thousands in the name of cutting deficits, while handing more than $1 trillion a year to the wealthiest. The rest of us pay taxes and suffer cuts in jobs and services to make up this lost money.
According to the report, lots of 1%ers will pay no taxes at all this year, while the country cuts jobs and services in the name of cutting the deficit.
“Ten major tax breaks that together total more than $750 billion in tax savings in 2013 are tilted heavily in favor of the top income earners; according to the Congressional Budget Office, 17% of the benefits from these major tax breaks go to the top 1% of households. In fact, according to the Tax Policy Center, nearly 1.2 million taxpayers in the top 1% will owe no income tax at all in 2013, thanks in large part to tax breaks that help them reduce their tax liability down to zero.”
Two of the key findings in the report tell the story:
- Corporate tax breaks will total $108 billion in FY2013 – more than 1.5 times what the U.S. government spends on education funding. Between 2007 and 2013, the revenue lost from U.S. corporations deferring taxes on income earned abroad rose 200%, going from $14 billion to $42 billion.
- All tax breaks for individuals will exceed $1 trillion this year, with about 17% of the biggest individual tax breaks going to the top 1% of earners. In fact, many individual tax breaks disproportionately benefit wealthy households.
The country’s budget shortfall is not from “entitlements” (things We the People are entitled to as citizens in a prosperous democracy) and “government spending” (the things We the People do to make our lives and economy better). The deficit is down to $640 billion while $1 trillion in tax breaks goes to the 1%. (Actually mostly the 1% of the 1%.)
Deficit Talk Is A Rigged Discussion
So why is the country terrified that budget deficits are going to eat us alive? Why don’t people know that the deficit is already down more than 50% from the levels Bush left behind and is falling at the fastest rate since the end of World War II? Why are Republicans able to get away threatening to shut the government and force the country into default in their drive to cut spending on the things that make our lives better?
The reason is that there is a massively-funded PR campaign underway to convince people of these things. Fix The Debt, for example, has pumped at least $60 million into a PR campaign to convince people that we have a deficit emergency and must therefore cut back on the things government does. Wall Street billionaire Pete Peterson has pledged $1 billion toward the same end. These are just two sources of the massively-funded campaign to convince people that the government should be cut back, instead of hiring people to fix the infrastructure, instead of having universal health care, etc.
And those are just two examples. How many headlines like these has the public seen? Budget deficit reaching point of no return, 20 Must-See Charts On America’s Disastrous Level Of Government Spending, Budget, Deficit, Debt Disaster, Deficits Must Be Curbed or It’s Disaster For Economy: Study and on and on and on.
And now we learn that the government is handing more than $1 trillion to the 1% and their corporations, while the deficit in only $640 billion and falling.
A Corruption Spiral
We are witnessing here a corruption spiral. This is big money using money to influence the government to give them even more money. And they then use that more money to influence the government even more to give them even more more money. And they then use that more money to influence the government even more more to give them even more more more money. And they then use that more more money to influence the government even more more more to give them even more more more more money. And then …
What Can We Do About This?
This is about the powerful predatory pigs feeding at the trough and taking it out on the weak. It has to stop.
How do we stop the corruption spiral that is eating our economy, our jobs and the things We the People do to make our lives better? We must get the money out of politics — and out of the national discussion. Money is not “speech.” In a democracy each person having an equal say is “speech.”
Corporate money is supposed to be used to run the corporation, period. Corporations use their money to drive the purposes of the corporation. So corporations by definition cannot use their money without the expectation of getting something in return. Even the use of corporate money to fund a Little League team is for the purpose of advertising and “brand development.” So giving money to a politician is done with the expectation of getting a tax break, a contract, a patent or some other form of advantage over competitors or otherwise increasing its profits. According to the law giving anything of value to any public official with the intent of influencing that official is bribery. It is not speech to give money to a politician, it is bribery. It is corruption.
By the same token, corporations giving their money to lobbying operations is done with the same intent. It is done to influence politicians or use front groups to drive support to politicians (a thing of value) to get them to do something that financially rewards that corporation.
And of course those with the most money are able to have the most influence. Which brings them more money. Which brings them more influence. This increased influence brings them more money, which brings them more influence. This increased influence brings them more money, which brings them more influence. This increased influence brings them more money, which brings them more influence. This increased influence brings them more money, which brings them more influence. This increased influence brings them more money, which brings them more influence. This increased influence brings them more money, which brings them more influence.
Again, a corruption spiral that eats our economy, jobs and democracy.
Corporate money must be banned from politics or otherwise influencing policy. Corporate money should be used to operate the corporation, period.
So how do we stop the influence of the billionaires? We just learned that the Koch brothers ran a group that pumped almost a quarter of a billion dollars into the last election (that we know of). Aside from that, according to the Sunlight Foundation, the 1% of the 1% funded a huge share of the election all by themselves.
The answer here is of course limiting the amounts individuals can put into campaigns and banning efforts to influence elections outside of campaigns themselves. This includes a complete crackdown on the use of special-tax-status organizations in election activities, front groups, etc.
These steps will at least be a start, and will give democracy a bit of breathing room. Then We the People might be able to figure out where to go from there.
There is a phrase I hear from DC people a lot: He/she is going to “go make some money.”
Usually this means that someone in government is going to take a job for a corporation, likely on Wall Street, “for a while” and then come back. It is, of course, collecting the payoff for playing along with the corporate agenda.
Of course, in progressive circles it means someone is going to find any old NON-progressive-organization job because that means actually making enough to live on…
Absolute must-read: Richard Eskow at Campaign for America’s Future, Banknado.
“Our leaders stand motionless, one hand covering their eyes and the other outstretched for cash.”
Why isn’t Richard writing for the NY Times?
I should do a series… Is keeping the minimum wage low really part of an ideology? Or is it really just big companies paying legislators to keep their profits high at the expense of We, the People?
It that ideology, when giant companies pay legislators to boost their profits? Is it ideology when big companies fund conservative “think tanks” that are really just propaganda machines, to tell people that there is an “ideology” that demands that wages be lowered?
Or is this just corruption?
I have been thinking that a lot of the fight going on isn’t about ideology at all, it is about corruption and the influence of money and how money uses its ability to influence society behind a MASK of ideology. You can justify a lot more if what you are doing is seen as an ideological effort, because that is about ideas and the clash of ideas and free speech, where money is just about money and power and force.
When it is ideas, it is ideology, when it is money it is just corruption. But calling it ideology keeps you out of jail.
I am just back from England… Toured a lot of castles, etc. and studied a lot of the history of the monarchy. The royalists used to justify their rule by saying God mandated it, etc.. So there was an “ideology” that kings should rule and royalty was sacred etc., but really it was about thugs who were stronger than other thugs, and then it was about keeping that power in the hands of a chosen few.
Was that really ideology?
Tim Geitherner is getting paid huge “speaking fees” by the big banks he helped while in his government jobs…
… receiving about $400,000 for three speaking engagements.
A speech at a Deutsche Bank conference last month netted him about $200,000…
… He spoke in June alongside Nicolas Sarkozy, France’s ex-president, and Mario Monti, Italy’s former prime minister, at Deutsche Bank’s annual conference in the UK.
… Mr Geithner was also the main attraction at Blackstone’s annual meeting in April, and the following month appeared at Warburg Pincus’s annual meeting. He was paid no more than $100,000 by each of the private equity groups, according to people familiar with the matter.
…Within a week of stepping down as Federal Reserve chairman, for example, Alan Greenspan was paid about $250,000 to speak at a dinner for hedge fund clients of the now-defunct Lehman Brothers.
$400K so far, just three “speaking” engagements… His time as Treasury Sec will prove incredibly lucrative.
Not so good for you and me, though.
Borosage, in Democrats Must Overcome Clinton Nostalgia,
The sad fact is that the old economy is coming back. Austerity continues to starve public investments vital to our future. The banks emerged from the crisis bigger and more concentrated than ever. Despite the domestic natural gas explosion, the trade deficit is still more than $1 billion a day, with the deficit with China setting records.
Extreme inequality is getting worse. The wealthiest 1 percent of Americans captured a stunning 121 percent of the income growth in the first two years after the economic collapse. Everyone else, on average, lost ground. The jobs being created offer less pay and fewer benefits than those that were lost. More than 20 million people still need full-time work.
I wrote about this in Just Stop It: This Is NOT A Good Economy. We Can Fix It.
PS Borosage makes a key point: “No matter how repellant Republicans may look to these voters, they are unlikely to turn out in large numbers for a party whose policies have failed them.“
Step back and see what this is.
A Canadian oil company wants to cross our country with a pipeline so they can sell oil to China. A political party and the Tea Party are working, for-hire, as the agents of this company.
This is one revenue-generating project for a company, not a cause.
How MUCH are they paying the Republicans?
And then on top of that Obama might approve it? Here is what Van Jones has to say:
Americans for Prosperity (AFP) is a 501(c)(4) group. This special tax status allows the organization to hide its donors from the public. But this also means it is prohibited by law from engaging in political activites. Founded with the support of the Koch brothers, AFP ran more than $30 million of 2012 election attack ads targeting President Obama.
Just HOW political were these ads? Political enough that the Chair of the Repubican Party released a statement accompanying the announcement of these ads. From Americans For Prosperity Ad Blasts Obama For Hope And Change Failure,
“Four years ago Americans entrusted that President Obama would truly bring ‘Hope and Change’ to Washington,” RNC Chair Reince Priebus said in a statement accompanying the new ads. “It is clear that he has failed to live up to his promises and has left our country with a mountain of debt and a health care bill that has cost the taxpayers trillions.”
A bit more on this from Tobacco giant funded conservative nonprofits, bt the Center for Public Integrity,
These groups, which obtain their nonprofit status because they say their “primary purpose” is not political activity, are generally under no legal obligation to detail their funding sources. Super PACs and other recognized political committees, by contrast, must report the names of their contributors who give more than $200 and the amounts they give.
Yet during the 2012 election cycle, various social welfare nonprofit organizations, emboldened by the U.S. Supreme Court’s Citizens United v. Federal Election Commission decision in January 2010, spent more than $250 million to promote or attack federal political candidates, according to the nonpartisan Center for Responsive Politics. The source of most of that money remains a mystery.
This is blatant, flat-out, unquestionable illegal campaign spending.
Maybe THIS has something to do with why the right is drumming up a false “scandal” claiming that the IRS “targeted” conservative groups. This is about scaring the IRS away from doing its job.
One reason is because everyone understands that there is a big check waiting for them later if they “play ball.”
Jim Messina, the former Obama 2012 campaign manager, Robert Gibbs, the former White House press secretary, and David Plouffe, the former Obama senior adviser, all received five-figure checks to deliver remarks at the event.
5-figure checks to “deliver remarks.” It adds up.
Big names get the biggest checks, of course. Lobbying jobs, “speaking fees,” etc. But members of a legislator’s staff move over to a lobbying firm or big corporation and get good 6-figure jobs.