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Paul Craig Roberts on the death of the dollar

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  • #31
    Re: Paul Craig Roberts on the death of the dollar

    Wow, well at least Gross is starting to tell it like it is (and has been)

    ...
    Having benefited enormously via the leveraging of capital since the beginning of my career and having shared a decreasing percentage of my income thanks to Presidents Reagan and Bush 43 via
    lower government taxes, I now find my intellectual leanings shifting to the plight of labor.


    ...
    But (mostly you guys) acknowledge your good fortune at having been born in the ‘40s, ‘50s or ‘60s, entering the male-dominated workforce 25 years later, and having had the privilege of riding a credit wave and a credit boom for the past three decades. You did not, as President Obama averred, “build that,” you did not create that wave. You rode it. And now it’s time to kick out and share some of your good fortune by paying higher taxes or reforming them to favor economic growth and labor, as opposed to corporate profits and individual gazillions

    ...
    Expenses” have been cut significantly as the share of wages to GDP has declined from 47% to 43% during the past decade. Before-tax profits as a percentage of GDP on the other hand have increased from 10% to 14% over the same period, mimicking what has happened with Company X. And here’s a rather incredible kicker to this theoretical comparison. The U.S. economy – thanks to the Fed – has been operating a 1 trillion dollar share buyback program nearly every year since late 2008, buying Treasuries but watching much of that money flow straight into risk assets and common stocks instead of productive plant and equipment. My goodness! If X can’t grow revenues any more, if X company’s stock has only gone up because of expense cutting and stock buybacks, what does that say about the U.S. or many other global economies? Has our prosperity been based on money printing, credit expansion and cost cutting, instead of honest-to-goodness investment in the real economy?

    ....


    http://www.pimco.com/EN/Insights/Pag...e-McDucks.aspx

    Comment


    • #32
      Re: Paul Craig Roberts on the death of the dollar

      Originally posted by vinoveri View Post
      Having benefited enormously via the leveraging of capital since the beginning of my career and having shared a decreasing percentage of my income thanks to Presidents Reagan and Bush 43 via lower government taxes, I now find my intellectual leanings shifting to the plight of labor.
      Bravo...glad you are thinking of them. The problem is, none of the economy created by debt creation has been to labor's benefit. The more we print, the more the laborer will pay...in taxes, in loss of real opportunity, because they are not living, or working in a real world, with real ups and downs that shake out poorly run businesses and shoddy products.

      The delightsome economy I grew up in, and supposedly benefited from so greatly was designed for the false virtual world so many people now drown their intellects in, since the entire charade was built on lies...lies that fiat currency was good for you; lies that debt was a good thing and to be used; lies that the government was on the little guy's side, because the government was of the people, by the people, and for the people. America and apple pie was mostly a lie too, and now, the whole world can see it.

      Originally posted by vinoveri View Post
      But (mostly you guys) acknowledge your good fortune at having been born in the ‘40s, ‘50s or ‘60s, entering the male-dominated workforce 25 years later, and having had the privilege of riding a credit wave and a credit boom for the past three decades. You did not, as President Obama averred, “build that,” you did not create that wave. You rode it. And now it’s time to kick out and share some of your good fortune by paying higher taxes or reforming them to favor economic growth and labor, as opposed to corporate profits and individual gazillions
      Actually, despite riding the credit wave, and even being a Mortgage Broker to help keep the credit flowing on, I saw the underbelly of the beast, and the trap it was setting for all of us. Fortunately a car wreck got me out in '95, before the last soul destroying mania. I paid my taxes as I went, as did we all, and every cent that was paid in only went to line the pockets of The Powers That Be, or we would not be in a collapsing infrastructure under a government that seeks to put visible chains on us all, rather than the invisible ones we didn't know we had.

      There is no economic growth, and no real productive innovation to labor at...the business world has sucked out our juices, and tossed the empty rind away as they stroll on to greener pastures. The Federal Reserve based, politically colluded at Ponzi scheme rolls on, leaving broken lives behind, and a lot of little guys who do not even understand what has happened to the country they were brought up to believe in.

      Originally posted by vinoveri View Post
      Expenses” have been cut significantly as the share of wages to GDP has declined from 47% to 43% during the past decade. Before-tax profits as a percentage of GDP on the other hand have increased from 10% to 14% over the same period, mimicking what has happened with Company X. And here’s a rather incredible kicker to this theoretical comparison. The U.S. economy – thanks to the Fed – has been operating a 1 trillion dollar share buyback program nearly every year since late 2008, buying Treasuries but watching much of that money flow straight into risk assets and common stocks instead of productive plant and equipment. My goodness! If X can’t grow revenues any more, if X company’s stock has only gone up because of expense cutting and stock buybacks, what does that say about the U.S. or many other global economies? Has our prosperity been based on money printing, credit expansion and cost cutting, instead of honest-to-goodness investment in the real economy?

      You have to ask? The entire 'prosperity' we have enjoyed since WWII enabled America to dive tooth and nail into The Big Lie that engrosses us still. All the comforts we enjoy, all the intellectual growth, all the technological achievement is built on the idea that not only can you get something for nothing, you can get a lot more of it by using Other People's Money.

      If we here at iTulip had all been complicit in the scheme, we wouldn't be trying to figure out a way around all that has gone wrong.

      The fact that any of us are doing well, or even surviving just now is because of people like EJ and Michael Hudson and Bill Black pointing out carefully, and kindly, to watch for the knife blades embedded in what we were being sold, and that the intent was for the liars to bleed us dry.

      If we had known what was going on, we too might have sold our souls, and be relaxing together with a good cigar, and fine brandy as we toasted the 'little people', and plotted how to continue the scheme, as the Fed, and the Politicians, and The Powers That Be are doing just now, and laughing up their sleeve the entire time.

      Instead, all we want is to survive what is happening to us without others telling us how good we had it, and who we owe for surviving a treacherous economic and social landscape, when we are grateful to see what we have escaped, and that, with a little care, and watchful eyes, we can end our days with our families and our life's work still meaning something, and knowing that we never deliberately did anyone any harm, and that we paid our way.

      I am glad I was born when I was (1955), and learned what I did, and enjoyed my life as I fought my way forward. But I have been kicking out and sharing my good fortune since the first paycheck I ever had at the age of 15. Don't confuse me, or the other iTulipers with the makers of the Big Lie...living off the efforts of others...we were never within that stratum of knowledge and contacts, or in league with the Big Guys and the Politicians and the Banksters.

      We wouldn't need the counsel of each other's expertise and experience if we had been part of the Big Lie.

      You are preaching to the wrong choir.

      Comment


      • #33
        Re: Paul Craig Roberts on the death of the dollar

        Originally posted by Forrest View Post
        Bravo...glad you are thinking of them. The problem is, none of the economy created by debt creation has been to labor's benefit. The more we print, the more the laborer will pay...in taxes, in loss of real opportunity, because they are not living, or working in a real world, with real ups and downs that shake out poorly run businesses and shoddy products.....
        ....
        ...
        Don't confuse me, or the other iTulipers with the makers of the Big Lie...living off the efforts of others...we were never within that stratum of knowledge and contacts, or in league with the Big Guys and the Politicians and the Banksters.

        We wouldn't need the counsel of each other's expertise and experience if we had been part of the Big Lie.

        You are preaching to the wrong choir.
        +1 to all this, forrest - but just to clarify - vino was quoting bill gross and his latest(?) statement to pimco's clients

        and i too agree with mr gross - taxes on HIS stratum are TOO LOW - the 1st thing that should be hit is the 'carried interest' scam.

        that and an increase in the income limit on FICA, along with a surtax on income - from ALL SOURCES - over 1 million/year - with means testing for social 'security' - which VT has rightfully/correctly called "oldage and survivor INSURANCE" - with some kind of cutoff of socsec payments above say 2or3x per capita income in 'retirement' - since if one has... oh... i dunno - say 10grand/mo income in 'retirement' ?

        then they DONT NEED payments from socsec - in what has become an 'entitlement' to pad the retirements of the upper income brackets - something i dont believe was ever intended.

        bottom line?

        in keeping with my philosophy of USER FEES for gov services - if one USES gov services, one SHOULD PAY FOR THEM - tollroads - owned by The Public - vs 'freeways' being the best example -

        you drive on em YOU PAY FOR EM.

        and if the entitlements - particularly socsec/medicare-caid are The Problem?

        THEN RAISE THE USER FEES - FICA - TO PAY FOR IT (and then no need cut benefits, cept those who DONT need em)

        vs o'bomba and the dems actually _cutting_ it the past few years and being precisely THE DEFINITION of insanity, if not SABOTAGE of their own programs!!???

        and then calling it a 'taxcut' ?

        talk about BS propaganda...

        just .02 from a 'small-r' type
        Last edited by lektrode; November 30, 2013, 10:41 AM.

        Comment


        • #34
          Re: Paul Craig Roberts on the death of the dollar

          Originally posted by lektrode View Post
          +1 to all this, forrest - but just to clarify - vino was quoting bill gross and his latest(?) statement to pimco's clients

          and i too agree with mr gross - taxes on HIS stratum are TOO LOW - the 1st thing that should be hit is the 'carried interest' scam.

          that and an increase in the income limit on FICA, along with a surtax on income - from ALL SOURCES - over 1 million/year - with means testing for social 'security' - which VT has rightfully/correctly called "oldage and survivor INSURANCE" - with some kind of cutoff of socsec payments above say 2or3x per capita income in 'retirement' - since if one has... oh... i dunno - say 10grand/mo income in 'retirement' ?

          then they DONT NEED payments from socsec - in what has become an 'entitlement' to pad the retirements of the upper income brackets - something i dont believe was ever intended.

          bottom line?

          in keeping with my philosophy of USER FEES for gov services - if one USES gov services, one SHOULD PAY FOR THEM - tollroads - owned by The Public - vs 'freeways' being the best example -

          you drive on em YOU PAY FOR EM.

          and if the entitlements - particularly socsec/medicare-caid are The Problem?

          THEN RAISE THE USER FEES - FICA - TO PAY FOR IT (and then no need cut benefits, cept those who DONT need em)

          vs o'bomba and the dems actually _cutting_ it the past few years and being precisely THE DEFINITION of insanity, if not SABOTAGE of their own programs!!???

          and then calling it a 'taxcut' ?

          talk about BS propaganda...

          just .02 from a 'small-r' type
          My apologies to Vino...I should have caught that in the original post.

          +1 on the rest...being a Liberal Constitutionalist, I might also be termed a small 'r', except that I prefer multi-party systems with referendums...the old Tory/Whig platform the founders used was and is inadequate.

          Comment

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