THE SATURDAY AFTERNOON POST

I thank my friend Paul Bolin for having turned me on to this brilliant piece which originally appeared at www.counterpunch.org. It is hard to believe, but this writer once served in the REAGAN White House. It is reassuring to have conservatives see the error of their ways...

I have taken the liberty of putting what I believe to be key phrases in the article below in bold.



RULE BY OLIGARCHS
A COUNTRY OF SERFS
By Paul Craig Roberts

The media has headlined good economic news: fourth quarter GDP growth of 5.7 percent ("the recession is over"), Jan. retail sales up, productivity up in 4th quarter, the dollar is gaining strength. Is any of it true? What does it mean?

The 5.7 percent growth figure is a guesstimate made in advance of the release of the U.S. trade deficit statistic. It assumed that the U.S. trade deficit would show an improvement. When the trade deficit was released a few days later, it showed a deterioration, knocking the 5.7 percent growth figure down to 4.6 percent. Much of the remaining GDP growth consists of inventory accumulation.

More than a fourth of the reported gain in Jan. retail sales is due to higher gasoline and food prices. Questionable seasonal adjustments account for the rest.

Productivity was up, because labor costs fell 4.4 percent in the fourth quarter, the fourth successive decline. Initial claims for jobless benefits rose. Productivity increases that do not translate into wage gains cannot drive the consumer economy.

Housing is still under pressure, and commercial real estate is about to become a big problem.

The dollar’s gains are not due to inherent strengths. The dollar is gaining because government deficits in Greece and other EU countries are causing the dollar carry trade to unwind. America’s low interest rates made it profitable for investors and speculators to borrow dollars and use them to buy overseas bonds paying higher interest, such as Greek, Spanish and Portuguese bonds denominated in euros. The deficit troubles in these countries have caused investors and speculators to sell the bonds and convert the euros back into dollars in order to pay off their dollar loans. This unwinding temporarily raises the demand for dollars and boosts the dollar’s exchange value.

The problems of the American economy are too great to be reached by traditional policies. Large numbers of middle class American jobs have been moved offshore: manufacturing, industrial and professional service jobs. When the jobs are moved offshore, consumer incomes and U.S. GDP go with them. So many jobs have been moved abroad that there has been no growth in U.S. real incomes in the 21st century, except for the incomes of the super rich who collect multi-million dollar bonuses for moving U.S. jobs offshore.

Without growth in consumer incomes, the economy can go nowhere. Washington policymakers substituted debt growth for income growth. Instead of growing richer, consumers grew more indebted. Federal Reserve chairman Alan Greenspan accomplished this with his low interest rate policy, which drove up housing prices, producing home equity that consumers could tap and spend by refinancing their homes.

Unable to maintain their accustomed living standards with income alone, Americans spent their equity in their homes and ran up credit card debts, maxing out credit cards in anticipation that rising asset prices would cover the debts. When the bubble burst, the debts strangled consumer demand, and the economy died.

As I write about the economic hardships created for Americans by Wall Street and corporate greed and by indifferent and bribed political representatives, I get many letters from former middle class families who are being driven into penury. Here is one recently arrived:

"Thank you for your continued truthful commentary on the 'New Economy.' My husband and I could be it's poster children. Nine years ago when we married, we were both working good paying, secure jobs in the semiconductor manufacturing sector. Our combined income topped $100,000 a year. We were living the dream. Then the nightmare began. I lost my job in the great tech bubble of 2003, and decided to leave the labor force to care for our infant son. Fine, we tightened the belt. Then we started getting squeezed. Expenses rose, we downsized, yet my husband's job stagnated. After several years of no pay raises, he finally lost his job a year and a half ago. But he didn't just lose a job, he lost a career. The semiconductor industry is virtually gone here in Arizona. Three months later, my husband, with a technical degree and 20-plus years of solid work experience, received one job offer for an entry level corrections officer. He had to take it, at an almost 40 percent reduction in pay. Bankruptcy followed when our savings were depleted. We lost our house, a car, and any assets we had left. His salary last year, less than $40,000, to support a family of four. A year and a half later, we are still struggling to get by. I can't find a job that would cover the cost of daycare. We are stuck. Every jump in gas and food prices hits us hard. Without help from my family, we wouldn't have made it. So, I could tell you just how that 'New Economy' has worked for us, but I'd really rather not use that kind of language."

Policymakers who are banking on stimulus programs are thinking in terms of an economy that no longer exists. Post-war U.S. recessions and recoveries followed Federal Reserve policy. When the economy heated up and inflation became a problem, the Federal Reserve would raise interest rates and reduce the growth of money and credit. Sales would fall. Inventories would build up. Companies would lay off workers.

Inflation cooled, and unemployment became the problem. Then the Federal Reserve would reverse course. Interest rates would fall, and money and credit would expand. As the jobs were still there, the work force would be called back, and the process would continue.

It is a different situation today. Layoffs result from the jobs being moved offshore and from corporations replacing their domestic work forces with foreigners brought in on H-1B, L-1 and other work visas. The U.S. labor force is being separated from the incomes associated with the goods and services that it consumes. With the rise of offshoring, layoffs are not only due to restrictive monetary policy and inventory buildup. They are also the result of the substitution of cheaper foreign labor for U.S. labor by American corporations. Americans cannot be called back to work to jobs that have been moved abroad. In the New Economy, layoffs can continue despite low interest rates and government stimulus programs.

To the extent that monetary and fiscal policy can stimulate U.S. consumer demand, much of the demand flows to the goods and services that are produced offshore for U.S. markets. China, for example, benefits from the stimulation of U.S. consumer demand. The rise in China’s GDP is financed by a rise in the U.S. public debt burden.

Another barrier to the success of stimulus programs is the high debt levels of Americans. The banks are being criticized for a failure to lend, but much of the problem is that there are no consumers to whom to lend. Most Americans already have more debt than they can handle.

Hapless Americans, unrepresented and betrayed, are in store for a greater crisis to come. President Bush’s war deficits were financed by America’s trade deficit. China, Japan, and OPEC, with whom the U.S. runs trade deficits, used their trade surpluses to purchase U.S. Treasury debt, thus financing the U.S. government budget deficit.

The problem now is that the U.S. budget deficits have suddenly grown immensely from wars, bankster bailouts, jobs stimulus programs, and lower tax revenues as a result of the serious recession. Budget deficits are now three times the size of the trade deficit. Thus, the surpluses of China, Japan, and OPEC are insufficient to take the newly issued U.S. government debt off the market.

If the Treasury’s bonds can’t be sold to investors, pension funds, banks, and foreign governments, the Federal Reserve will have to purchase them by creating new money. When the rest of the world realizes the inflationary implications, the US dollar will lose its reserve currency role. When that happens Americans will experience a large economic shock as their living standards take another big hit.

America is on its way to becoming a country of serfs ruled by oligarchs.


Paul Craig Roberts was an editor of the Wall Street Journal and an Assistant Secretary of the U.S. Treasury. His latest book, HOW THE ECONOMY WAS LOST, has just been published by CounterPunch/AK Press. He can be reached at: PaulCraigRoberts@yahoo.com
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Now that's what I call thorough and factual relevant analysis! It would certainly seem that the time to end our overseas military misadventures, and begin to tax our wealthy the way the rest of the world taxes their wealthy (instead of rewarding them for doing nothing like Bush has done) is now in order, moreso than ever!

"I hope we shall crush in its birth the aristocracy of our moneyed corporations which dare already to challenge our government to a trial of strength and bid defiance to the laws of our country."
- PRESIDENT THOMAS JEFFERSON our 3rd President and FOUNDING FATHER OF THIS COUNTRY -









"Although they make enormous contributions to our society, corporations are NOT actually members of it. They cannot vote or run for office. Because they may be registered and controlled by nonresidents, their interests may conflict in fundamental respects with the interests of eligible voters."
- SUPREME COURT JUSTICE JOHN PAUL STEVENS, speaking in a dissent, 1/21/10 -




Yesterday marked the worst decision in the history of our Supreme Court, and effected a corporate coup-de-etat of our government. In a hasty, poorly researched, and very poorly reasoned decision, the Roberts Court ceded, by a 5-4 vote, all de facto control of this government of, by, and for its people to the moneyed corporate aristocracy Thomas Jefferson warned us of two centuries ago. Voting with the majority were conservative Justices Anthony Kennedy and Antonin Scalia (dumped on us by Ronald Reagan), Clarence Thomas (dumped on us by George H.W. Bush), and John Roberts and Samuel Alito (dumped on us by George W. Bush). Enemies of the people all, they granted corporations the right to contribute, without any restriction whatsoever, to the political candidate of their choice in any election. Even a child can understand how this ruling will give unprecedented power and ability to buy the favor of any congressperson or President in the future to those with the most money. You can be certain that corporations will use this newly granted power to flex their muscles this fall. They will do so in a way that will make what they did to sabotage health care reform these past six months look like they were only fooling around. Average, ordinary, individual working Americans and the poor will be completely unable to effectively elect candidates to best serve their needs and interests, as their candidates will invariably be underfunded and buried in relation to those funded by big money. Liberals and progressives will become oddities of the past. We are now entering a political dark ages of unchallenged conservative plutocracy.

This ruling is an abomination and will radically transform the way this country is governed in a terrible manner. Several weeks back, I painted a horror story set in 2017 whereby plutocratic conservative Republicans had regained total control of government and were enslaving the rest of us for the benefit of the elite, wealthy few. The implications of yesterday's hideously flawed Supreme Court ruling are far more terrifying than was my little story. They have legally instituted a plutocracy to replace our democracy.

So now it's "Hello CSA (Corporate States of America), R.I.P. USA (United States of America)". Say goodbye to the country you grew up in, everybody, and savor the memories. This will be a diabolical new phase in our history, and our lives will never be the same. Keep your eyes and ears open, folks. Regrettably, now, in our lifetime, we may have to all go underground to protect ourselves from the invariable corporate excesses this horrible decision will create!

"I hope we shall crush in its birth the aristocracy of our moneyed corporations, which dare already to challenge our government to a trial of strength and bid defiance to the laws of our country."
- Thomas Jefferson, Founding Father and former President -



"We are not a democracy. It's a terrible misunderstanding and a slander to the idea of a democracy to call us that. We are a PLUTOCRACY: a government by the wealthy."
-Ramsay Clark, former Attorney General under President Lyndon B. Johnson -


I'm not a hard guy to get along with. Yes, I bash conservatives and Republicans pretty harshly here at times in this blog, but by and large, I'm quite easygoing and good-natured. Good-hearted, too. Generally, I also have a fair amount of patience with most things. But two things really try that patience: mechanical objects that don't work properly, and electronics with intermittent short curcuits that are tough to pin down. Those types of things have been known to make me erupt and use language which would cause even Rush Limbaugh to blush. But the third thing which really makes my part-Irish blood boil is plutocrats, and those who stupidly aid and abet them. The latter, of course, are economic and social conservatives, and are usually (but not always) Republicans. And oh yes---ignorant, ill-informed people, and certain media talking heads also fall into that category of plutocrat-enablers, too .

I am not against wealth. I have the highest regard and admiration for those who go from rags to riches, and who do so honestly, without exploiting others in the process. But unfortunately, that is not how many at the very top of the income scale came to be perched there, or maintain their presence there. What I AM against is the way the wealthy (the plutocracy) have set things up so as to ensure they nearly always come out on top, most often at the expense of those far beneath them on the income scale, and how they have repeatedly used their wealth to effectively buy out our government for their own benefit. Thankfully, it is not impossible to become wealthy in this country. That is one of the wonderful things about the United States. But the wealthy have rigged the system heavily in their favor.


A number of people support conservatives and Republicans on the issue of taxes, and mistakenly believe that the GOP is more adept at running our economy. They believe that Republicans will hold the line on government spending and will cut their taxes; effectively being the best possible stewards of the economy. This is naivete at its worst. During George W. Bush's administration, he and his rubber-stamp conservative Republican Congress increased spending at a gigantic rate, far more than had ever been previously done. For the first time in our entire history, these Republicans went to war while simultaneously cutting corporate and ultra-wealthy individuals' taxes. Everybody else got very little or nothing at all in real tax relief. The GOP even accelerated a plan to privatize a large segment of our military by offering select companies non-bid military supply contracts. Middle class and poor taxpayers footed the tax bill for nearly all of this, and will be doing so for many years to come unless the plutocracy is finally taxed much more heavily. The misconception that Republicans are somehow better for business is disproved by a Ned Davis Research study. The study shows that, since 1901, Standard and Poor's 500 stock index has risen on average 7.2% per year under Democratic administrations, but only 3.2% under Republican administrations. According to International Strategy and Investment, in more recnt years (1944-mid-2008), the S & P was up on average 10.7% per year under the Democrats, but only 8% per year under the Republicans. The conservatives and Republicans also pressed for and got a large amount of deregulation in the banking and mortgage industries. The net result? A ballooning of our trade and government deficits which are being underwritten by China and other countries. That's right, folks: tax breaks for the rich and a war in Iraq that didn't need to be fought have put us into huge debt with China and other potentially hostile countries. Another result? Reckless market speculation that caused the government to have to bail out those careless Wall Street bankers who caused their own failures in the first place! Again, middle class and poor taxpayers footed nearly all the tax bill. Deregulation and irresponsible market speculation also caused rampant gasoline and energy price rises in 2008 and the near-collapse of our mortgage and banking industries. Record post-World War II unemployment, too, and a massive shift of good-paying American jobs to cheap foreign labor markets overseas. And who benefitted from all this? Did your paychecks and buying power rise dramatically as a result of these actions? Absolutely not. The only real beneficiaries of these policies were wealthy bank and corporate CEOs, their boards, their mainly wealthy stockholders, and our vast and growing military/industrial complex. In other words, the only real benificiaries were plutocrats. Does this sound like good stewardship of the economy to you? Would you call this "government of, by, and for the people"? I certainly wouldn't! Remember, folks, the best friends of this plutocracy are conservative REPUBLICANS and compliant conservative Democrats. Best remember this as you head to the polls next November!

Some people support conservatives and Republicans under the misguided notion that the country is safer and less likely to suffer attack from outside under Republican rule. These folks are simply listening to all the Republican bluster and talking points. They are ignoring several important facts. One, 9/11 occurred under REPUBLICAN watch, not Democratic. On August 6, 2001, while on one of his many vacations in Crawford, TX, President Bush was briefed that an attack by Osama Bin Laden on our soil was in the works. This warning was not acted upon, and 5 weeks later came the 9/11 attacks. Two, the Republicans dropped the ball by not finishing the job in Afghanistan in the fall of 2002. Bin Laden was able to escape into the mountains of Pakistan and remains free to this day. Three, the Republicans, led by George W. Bush and Dick Cheney, began a very prolonged and costly war in Iraq which did NOT need to be fought. In the process, they unnecessarily ran our deficit sky high and also infringed on our constitutional rights by suspending the writ of habeas corpus. Four, they violated international law and the Geneva Convention through the use of rendition and prisoner torture, acts which may have dire effects on the well-being of future captured American soldiers. These errant actions, strongly supported by Republicans, weakened, rather than strengthened, our country's security and standing in the world. Voting for conservatives and Republicans in 2010 and 2012 will be voting for more of these same costly and wasteful kinds of mistakes. Their support of the military/industrial complex jeopardizes our national as well as economic security. Is THIS what you consider to be a competent, safe, and practical way to handle our national security? Hardly.

Finally, some people support conservatives and Republicans on grounds that they view them to be a more morally sound and pro-religious party than any other. Some are even foolish enough to assert that God Himself is on the side of the Republican Party. The Republicans make all kinds of noise about being pro-life and anti-abortion, and say they promote strong "family values," but in practice these claims prove to be fraudulent, too. For during the Bush administration, when they had solid conservative majorities in both houses of Congress and a de facto conservative majority on the Supreme Court, they made NO effort to eradicate abortion. Instead, they USED it as a political tool to steal Catholic votes away from Democrats. They have also routinely opposed practical contraception methods which would drastically reduce the numbers of unweed teens becoming pregnant and then opting for abortion. Beyond that, look at the numbers of prominent Republicans who have admitted to, or were alleged to have had, illicit sexual affairs over the past three or four years alone: Sen. David Vitter (LA), Sen. John Ensign (NV), former Sen. Larry Craig (ID), former Rep. Mark Foley (FL), and Gov. Mark Sanford (SC). Not a very clean slate for the supposed party of morality and religious purity. So when it comes to moral values, just as in the areas of the economy and national defense, the conservative Republicans love to talk the talk, but often fail to walk the walk. Don't buy their nonsense this November.

Ramsay Clark hit the nail on the head. This is indeed a plutocracy rather than a democracy. Ever wonder why Wall Street got bailed out by taxpayers and not Main Street? Or why legislation beneficial to average, everyday citizens rarely gets passed anymore? Corporate lobbyists write much of the legislation for individual congresspersons. Ever wonder why the public seems so ill-informed at times? Or why our news is shallow, repetitive, and not very broad? Why we only seem to get PART of the story so often? Six major corporations own nearly all of our news media, and present and reinforce their corporate values and bias constantly. Ever wonder why banks lavish perks and freebies on large depositors, and why they penalize accounts with small balances each month? It's brcause banks favor the wealthy and discriminate against everyone else. Ever wonder why YOUR wages remain frozen or are reduced, while corporate CEOs receive huge annual bonuses and golden parachutes even if their companies perform poorly? It's plutocracy in action, folks. The deck in this country is stacked against the poor and working American because our government and business are run for and by the wealthy for the benefit of the rich. Everyone else is a mere accessory.

Remember when voting this fall, everybody: the overwhelming majority of conservatives and Republicans are PLUTOCRATS. They do not understand, care about, or even look after, your best interests. They aim for power so they can continue serving the wants of the few; the wealthy; and corporate America. THEIR friends are on Wall Street, not Main Street. Watch out for those non-wealthy types like Sarah Palin, Mike Huckabee, Tim Pawlenty, and some of the Fox "News" and CNN talking heads and pundits, who consciously or unconsciously do the plutocrats' bidding by issuing false or shoddily researched public statements on their behalf. These people are PARROTS FOR THE PLUTOCRACY, and are not to be listened to, trusted, or followed! Instead, let us campaign for and elect true public servants who care about and really understand the needs of average people! This year, let's nominate and elect more Bernie Sanderses, Dennis Kuciniches, Russ Feingolds, Ron Wydens, and Barbara Boxers to Congress, and dump plutocrats and enablers like Michele Bachmann, Virginia Foxx, and John Ensign! Let's dump plutocrats, their parrots, and their enablers once and for all!


BELOW: Your typical corporatist, conservative Republican we need to divest ourselves of.

"AWWWKKK! MORE FOR THE RICH! MORE FOR THE RICH! AWWWKKK!"

"AWWWKKK! POLLY WANT A TAX CUT! POLLY WANT A WAR! AWWWKKK!"

When we were very young, we were all taught that the United States was the land of the free; the best country in the world, where virtually anyone could become rich and successful if only he or she studied diligently, applied themselves, and worked hard and long. We were told repeatedly that our form of government, and our economic system, were the best the world had ever produced, because they permitted free expression along with equal opportunity and the free pursuit of wealth.

Then we got jobs and grew up in a hurry. We found out very quickly that it was not us, but the owners we worked for who actually determined our income levels and set the prices for the goods and services we purchased. They actually made a LOT of money from our work, but only paid us a fraction of what they made as a result. We saw that this method of doing things made for an orderly system, but it also held us back for the benefit of, or advantage of, the owner. If we wanted to branch out and start our own business, we were free to do so, but doing that meant we had to borrow large sums of money from these owners or their banks, and had to do so by their rules. We had learned about slavery in school; that it was evil and had been abolished by that great liberal, and first Republican President, Abraham Lincoln, during the Civil War. But what we weren't told, and had to learn by ourselves, was that this form of slavery was replaced by a less visible, new form: the slavery of exploitation and manipulation. This was a kinder and gentler form of slavery. It never beat us or abused us physically, and we didn't have to wear chains. But it nonetheless kept us in place, by limiting our economic freedom and making us beholden to a new set of masters - our employers who owned or managed the businesses where we worked, and/or the bankers, who lent us and those businesses the money to acquire personal or business property and posessions. We were left with only a little more real economic freedom or flexibility than a migrant worker in a field.

Throughout our school years, we were also taught that we had fought a war of independence to ensure we would not be taxed or regulated without representation, and that the government which had been established for us was therefore supposed to listen to us and actually represent us, so as to best protect us and help provide for our needs. We were never told, though, that its primary function would be to listen to and provide for the needs of the wealthy owners and bankers FIRST rather than the rest of us who didn't belong to that class. As a result, we have slowly but surely been shut out of influencing the government directly almost from the start, and it has largely ignored us many times in this country's history. Especially now and over the past three decades, this process has greatly accelerated. Thus, we have become a PLUTOCRACY, where the wealthy effectively control the government through bribery and manipulation, and are no longer a democracy, in which there is simple majority rule.

To be fair, we have indeed had more truly democratic periods of governance, most notably during the first fifteen years or so of the 20th century, the New Deal era of the 1930s-early 1940s, and the 1960s-early 1970s. During these periods, the government actually acted in varying degrees on behalf of the majority of the population, including the poor, working class, middle class, and even enacting laws deferential to racial and cultural minorities, effectively legislating for their benefit and protecting them from or even reversing exploitation from the far-less-in-number wealthy, big business owners, and bankers. Workers', women's, and minority rights were established and defined in law and upheld in courts. Wages and buying power rose across the income spectrum, and consumer protections were instituted. However, over the past 30 years, conservative politicians like Ronald Reagan, and ultra-conservative ones like Tom DeLay, Dick Armey, Bill Frist, George W. Bush, and Dick Cheney have muted or effectively eliminated nearly all of the gains made by the aforementioned non-wealthy groups. Today's workers have relatively far less self-determination and upward mobility than they had attained only a generation or two ago. The term "free market" has come to mean the freedom of big business and concentrated capital to eliminate or severely cripple labor unions, not the freedom of workers to negotiate more equitable pay and benefit scales. The result has been frozen or declining worker wages and a simultaneous skyrocketing of executive pay. What was once a progressive tax system which heavily taxed the rich to provide for those beneath them (a system strongly favored by both Founding Father Thomas Jefferson, and subsequent President Lincoln) has given way to a regressive system which funnels money upward rather than down the income scale. But worst of all, our government, which those same conservatives love to proclaim is "of, by, and for the people" has effectively now become one of, by, and for the few. Lobbyists funded by big business interests have effectively bought out a majority of Congress, and many Congresspersons, Joe Lieberman being a prime example. He, like many, now habitually votes against the wishes of his own constituents to please the desires of lobbyists and big businesses, which shovels huge sums of campaign cash to elected officials such as he. In some cases, lobbyists have even authored bills which members of Congress have affixed their names to!

All of this is explained brilliantly in a gem of a book called Democracy For The Few by noted scholar Michael Parenti. It is a book I would highly recommend. It is a MUST for those who wish to understand how and why our government and business community have become so out of touch and unresponsive to our needs. Parenti points out how this country's government was drawn up and put in place mainly by white, wealthy, land-owning aristocrats (which is what the majority of our Founding Fathers werre), the precedents that were set early on, and the effects of which remain in place to this day. He gives numerous examples of how and why the wealthy and powerful elite have shut the rest of us out of power throughout our history, as well as how that is occurring today. He traces the rise of big business and corporate influence over government. It is a fascinatingly comprehensive and accurate analysis of how this country has come to be dominated by special interests, and has undergone class wardare and political and cultural polarization. The book provides much food for thought! It helps us better understand what is really happening in our society and government today, and why. Most importantly, though, it provides a number of proposed solutions for fixing the mess we're in and for restoring some semblance of balance to the current economic and political jumble we are trapped within at present. Though scholarly in scope, Democracy For The Few is a relatively easy read. It is available in paperback form Amazon.com, and it is well worth owning. Due to its classification as a college textbook, its price is spendy, but don't let that scare you off. See if your local public library has a copy (many do), or try to find it used if you don't want to invest the money in it. But DO read it, and I'm certain you will trasure it as I have come to do! It is THE definitive account of why this country is as screwed up today as it is!