A few observations on the current state of the Union. The MSM continues to feed the public with Tiger Woods gossip as the preferred distraction of the moment.
The public needs to be informed so they can watch the final destruction of the American middle class now playing out on the small screen. It is currently the longest running reality show.
It has recently been estimated that the loss in capitol from the collaspse of the private home real estate market has drained out over 6 billion dollars from the wealth of the American middle class. More observations below.
Working class people in America are being given a bare knuckle demonstration of exactly WHO wields political power in the United States. Just follow the money and the political votes in Congress and it becomes crystal clear. Corporate wealth easily commands trillions of Taxpayer’s dollars to bail out failing investment houses on Wall Street, including some offshore banks. American corporate wealth built an army of lobbyists who have successfully bribed and bought members of the Senate to slowly but effectively shred the Health Care Reform Bill so that all that is left is the mandate to push 40 million Americans into private health care plans that will do little for their health, but will allow the insurance companies to collect a stupendous windfall of profits from the government.
Corporate wealth engaged the complete and uncompromising support of the Main Stream Media to brainwash and confuse the public with an unrelenting 24/7 propaganda campaign against the Health Care Reform Bill. They sent their CEOs to White Conferences and meetings to capitalize on the good will of the President while lying about supporting his effort to achieve Health Care Reform.
White House slight of hand accounting and cooking the books produce glowing reports announcing a slow down in home foreclosures. Meanwhile, actual foreclosures are still increasing. The announced increase in home sales, actually was spurred by the extension of the $8,000 home buyer credit provided by the government. The remaining new sales was actually due to the sale of distressed properties at foreclosure firesale auctions, where properties were sold at less than 40% of their market value.
A new wave of foreclosures are expected in 2010 when the millions of ARMs will reset, suddenly adding an average increase of $1000 to the home owner’s monthly mortgage. Most of these home owners in this current economic climate will not be able to meet this new increase, hence a new wave of foreclosures is expected about mid 2010. A great deal of concern exists over just how a new wave of foreclosures will impact the weak recovering economy. The concern is that such a new wave of negative economic activity might cause the recession to slide back into a another dip which would result in a national economic catastrophe.
Just before the high tech bubble burst, America was creating millionares at the rate of over a thousand new millionares a week. Many of these people strategically invested their wealth and did not lose it through Madoff or Bear Sterns or any other Wall Street gamblers. So over the years, the middle class contracted, the poor class expanded, but the wealthy class expanded.
Most economists are predicting a “jobless” recovery, which means a recovery for America’s corporations with offshore operations and their Wall Street associates. However, a jobless recovery means an economic depression for main street and a never ending fiscal disaster for city and State governments. America will become a two class society, the super rich and the extreme poor. The Obama administration does not give this possible scenario the seriousness that it deserves. All of the severe economic events that I have described above coupled with a double dip recession WILL KILL the middle class. In this climate where American corporate interest is directed primarily towards offshore business functions, it will be impossible for the American middle class, who used to work at these companies, to find jobs again here in the United States. Small business will be able to restart and hire small groups of people, but it is a huge leap from a light manufacturing operation in a small suburban plant to a full scale multi-facility large industrial manufacturing corporation. Many small successful small business owners will most likely participate in international sales as well as domestic sales. But their expansion capability will be limited.
From my perspective we are currently watching the demise of the American middle class, and since the global marketplace is here to stay, I see little possibility of a recovering American middle class. Further, no country can exist with domestic peace and prosperity with ONLY TWO CLASSES, the very rich, and the very poor. Without a strong viable middle class no country can remain stable.
