How Market Forces Operate
redacted, from 8/2007
Who is more important in society, the banker or the farmer? This is the question we will have to answer in the very near future. Society will have to decide to save the producing masses or the small, greedy ruling class. This decision does not appear to be a difficult one, except so far all the wrong decisions have been made. This reflects the crisis in thinking that has resulted from the war of misinformation being waged against people everywhere. Those waging this war want society to believe their interests are the important ones, the interests of capital. However, we have to understand that this is a battle to the death. If the ruling class wins, the vast interwoven social fabric of our planet will suffer. We have to pose the questions in the simplest terms. It is a choice between workers and bosses, between farmers and bankers.
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Now, the art of the con game originated in America and spread across a World which had little concept of the swindle, since rulers and chieftains had held their own subjects in peonage from antiquity. So today's fat cat swindlers – like lawyers, politicians, bankers, insurers, accountants and stock traders – drive Imperialism. They drive it solely in their own venal interests, for their own self-enrichment.
Whatever Karl Marx sed about capitalism being a thoroly rotten, bloodsucking system, well, he barely pipped the shell.
Of course, everybody kno that the labor product is converted into values appropriated and exchanged for commodities ultimately held as futures, securities or some other stake floated on paper to peel a profit off of anything produced, traded or consumed by honest, hard-working people. Based upon a sometimes faulty yet most often dishonest assessment of what happens in this economy, working people get lured into an investment scheme which persuades them to believe they may actually own part of the "American Dream".
This swindle has been used against workers repeatedly in the housing market, the Savings and Loans busts, and stock-based retirement plans. Bank notes, shares, bearer bonds, stocks, mutual funds – their conversion from paper into real assets defines the best part of a process that 98% of all people lack any inkling of whatsoever.
For that reason, working people should be discouraged from participating in stock plans.
Then there's the saying, after every boom follows a bust. The Dot Com shake out bankrupted 401k plans, KEOGHs, and other retirement funds. The Enron scandal era – which included MCI-WorldCom, Tyco and other notables – sucked up what was left. Teachers, clerks and other "educated" workers, whom most people expect to play it smart, got soaked. Think they would have learnt from the S&L swindles of the Eighties, when lenders robbed people outright and no perpetrators were ever prosecuted.
The current housing bust earnestly began in 2006 and has shaken out dozens of investors who purchased asset-backed commercial paper with the expectation they would make a killing when interest rates rose. They never counted on the massive default rate from the introduction of exorbitant rates when Bernankhe dictated a deregulation which adjusted the predatory mortgages upwards.
Currently, stock market surges and losses have reached an unpredictability which investors characterize as volatile. Subprime housing loans drove the stampede towards mortgage lenders during the Greenspan era, now the crash bludgeons even buyers with perfect credit. Retail sales lagged during last Christmas; gas prices kept seasonal vacationers home and affect food prices, while the debate over drilling ignored the fact that oil is a privately-owned commodity and deregulation drives price, not costs.
Fear, because your house is a real asset that can be sold out from under you due to no fault of your own. Mortgages, bought and sold by investors the moment one gets signed, are pieces of paper floated all over the globe. A minute number of deep pocket investors controlling the voluminous horde of mortgage debtors, a.k.a. "homeowners", determine that sooner or later the herd will be eaten. Homes, stores, factories, office buildings and malls all sit on mortgaged property so the investment belongs to those making the loan. Tho it is the loan which investors interest themselves in, they acquire supremacy over the market (economy) because of the massive value accumulated in so very few hands. When they enforce collections, that results in market corrections.
During a "market correction", businesses fail or curtail production, resulting in higher unemployment. This spiraling effect has nothing to do with production but is based on seedy speculators whose very existence obstructs the flow of goods and services. Resources bottled up by a parasitic redundancy in trade relations can lead to the point where conflicts and wars erupt. Recent results have produced famine, shortages, hyperinflation, border wars, so-called piracy and other by-products of Imperialism.
Indeed, the farmer can't sell futures in his orange crop because the bank owns them and controls the market where they must be sold. Third-party negotiators then acquire rights to the futures and so on in transactions which do not benefit the real producer. A paradox, society can thrive without the banks and stock market, but not without the farmer. This system of wild market speculation drives prices not costs, accounting for the rise of fuel, interest rates, food, college degrees, health insurance, everything.
Keep dreaming. Anyone without a convenient $150k to sink into a mutual fund cannot even think about becoming a real capitalist. That designates the level where investments begin, as any commercial advertising portfolio prerequisites during PGA tournaments or NBA and NFL games may well tell you.
International finance capital, Imperialism, operates thru a political system which protects the swindlers and cares little for the masses. IMF-World Bank policies account for the horrendous wars in Africa, Asia and Latin America. Credit-Suisse, Deutsche Bank, CITICORP, Ameriquest Mortgage, Washington Mutual and HSBC Finance Corp. led the shake out in the current housing bust. Some are defendants in discriminatory lending suits being pressed by the NAACP. Nobody can quite quantify the social impact, but look forward to a renewed phase of the racist wars against America's colonized workers like the police murder of Oscar Grant or the New York Post negrophobic war against the black president.
Meanwhile, investors holding complex mortgage securities and Wall Street bankers always manage to come out on top. Homeowners, on the other hand, will never be winners under this system. The only advantage for the people is to decolonize their minds, return to the source, and break down Imperialism like kung fu masters…
What is the dollar value of one point on the NYSE? Anyone who doesn't kno has no business letting their employers talk them into an IRA, CDs or a 401k. Refuse to let your union leaders follow the advice of business agents who want to invest dues money in the stock market. Have they explained how that loot is converted, transferred, traded, exported and reinvested, ultimately prompting you to rant about foreign products and their threat to American workers?!
At the same time lenders poise to snatch the roof from over your family's heads, you want to bomb China, India, Pakistan, Mexico and the ghetto, America's black colony.
Dirty, sexy money is the root of great evils. Its finance scams originated when the folks who violently swindled North America from the Indians redistributed it amongst the haves. This swindlers regime imposed itself upon the "new" Indians, working people. These same suckers pay record prices for gas swindled from Iraq, then send their kids to fight terrorism.
Yes, they blame Mexicans for trying to flee a more repressed economy. Suckers blame the Arabs for resisting a Beast who occupies their land. They blame neocolonies like China and India for jumping at dollars held out to them by American financiers. Homesteaders who slaughtered American Indians for the robber barons turn to racist political theory out of expedience. They blame Blacks, just because. But in the heartland of the Homelanders, an ideological campaign must be carried out to turn society right side up. A society on the ball will choose farmers over bankers. We better fight for workers and not bosses. Make it hard, if not impossible, to find a sucker for America's racist, bloodsucking anti-labor con game.
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