On The Real Causes Of The Recession And Debt Cycle

The Wall Street bankers say their greatest concern is inflation (small surprise since they own the majority of wealth in this country). But the real problem is a lack of demand, a collapsing middle class, a rise in low-income jobs. All the result of corporations wanting to destroy American manufacturing by cutting labor costs. They were so upset that their profitability base would need to be reduced as a result (just as Rosa Luxemburg predicted), so Wall Street came in as their savior, issuing more credit cards and mortgages than ever before. The Washington cronies accepted the credit expansion, because they received a lot of campaign funding. The corporations made lots of money, because they could sell all their products and still keep labor costs down. Wall Street made a lot of money, because of the fees and interest they charge. Now, the economy stands on no solid footing, the only way for Wall Street to make more money is to buy up important commodities like food and oil (explaining the massive price hikes and the Middle East uprising: Enough is enough!). The only way for corporations is to continue evading taxes, receive more tax subsidies and expand overseas (look at China). Now this Ponzi scheme is collapsing. David Harvey wrote that capitalism always tries to transcend barriers with heavy societal costs. But we will see when it will ultimately collapse. It will hurt all of us, but it could force a paradigm change, it could obliterate Reaganomics into the dustbins. It is empty, exhausted, but rages our economy still full-steam ahead into chaos.

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