IN THE BEGINNING, BEFORE LOBBYING AND MULTIPLE LAYERS OF FINANCIAL CHARGES RAPED THE ECONOMY, THE SHARE OF GDP COLLECTED BY FINANCE WAS 3 1/2 % NOW IT IS 8 1/2 %.
IN 2008 MONEY WAS MADE AVAILABLE TO THE BIG BANKS TO LEND TO REGULAR BUSINESSES TO GET THE ECONOMY FUNCTIONING AGAIN AND INSTEAD THEY INVESTED IT AND BOUGHT BONDS.
IN THE PAST,MONEY WOULD BE LENT AT LOW RATES TO BANKS WHO WOULD LEND THE MONEY IN TURN TO SMALL BUSINESSES WHO WOULD INVEST IN HIRING MORE WORKERS AND CREATING MORE INFRASTRUCTURE FOR THEIR COMPANY, CREATING GROWTH IN THE GENERAL REAL GOODS AND SERVICES ECONOMY AND CREATING JOBS.
DONALD TRUMP GAVE HUGE TAX BREAKS TO THE WEALTHY SO THEY KEPT THE PROFITS MADE BY SUBVERTING THE FREE MONEY PLAN TO GET THE ECONOMY GOING.
ALL THE MONEY WAS IN THE HANDS OF THE RICH WHO BID UP THE STOCK MARKET AND CONCENTRATED THE OWNERSHIP OF ASSETS IN THE HANDS OF PRIVATE EQUITY GROUPS.
STOCKS WENT UP BUT THE COMPANIES WERE NOT ACTUALLY MORE VALUABLE IN PRODUCTION OR ADVANCES IN TECHNOLOGY. SERVICES STOCK VALUE SKYROCKETED. WHO WILL PAY FOR THE INCREASED VALUE OF THE SERVICES?
CHEAP MONEY ALLOWED STOCK BUY BACKS WHICH PUSH STOCK VALUATION UP BUT NO JOBS, VALUE OR WEALTH ARE CREATED.
NO MONEY HAD BEEN EARNED, NO GOODS OR SERVICES SOLD, BUT THE OVER VALUED STOCK PRICES WERE ON THE CORPORATE BALANCE SHEETS.
IN ADDITION, THE CHEAP MONEY ALLOWED INVESTMENT BANKS AND HEDGE FUNDS TO BUY UP EVERYTHING. BUSINESSES, RENTAL BUILDINGS AND HOUSES WERE BOUGHT.
THE INSTRUMENTS OF THE WEALTHY BOUGHT UP HOSPITALS AND INDUSTRIES, BLOCKS OF CONDOMINIUMS AND MANY INDEPENDENT BUSINESSES, HUGE SWATHS OF THE ECONOMY WERE BOUGHT UP BY PRIVATE EQUITY FIRMS.
MONEY WOULD HAVE TO FILL THOSE COFFERS FOR REAL EVENTUALLY BY EXTRACTING MORE MONEY FOR THE CORPORATE INVESTORS FROM THE GENERAL ECONOMY AND THE MIDDLE CLASS BY MEANS OF HIGHER PRICES AND HIGHER INTEREST RATES. DON'T FORGET, DEBT WAS EVERYWHERE IN THE MODERN LOW INTEREST FINANCIAL LANDSCAPE. CRANK IT UP!
CHECK THIS OUT, PUBLISHED IN 2021:
I PREDICTED A GIANT DECLINE IN THE VALUE OF MONEY WHEN TRUMP CUT TAXES FOR THE RICH
THE US SPECULATIVE ECONOMY WAS SUPERCHARGED WITH MONEY WHILE GOVERNMENT WENT INTO DEBT.
THE EXTRA CASH FROM THE TAX CUTS TO HIGH INCOME CORPORATIONS AND INDIVIDUALS HAS CAUSED THE PRICE OF US STOCKS TO BE INFLATED.
The high price which stocks have attained is not a wonderful achievement. The purchase price of Stocks is high due to the fact that a 1/2% interest rate is not much of an investment return and that is the Bank Interest Rate for Savers.
Another time shortening price boosting factor would be the effect of computer controlled alglorithmically predicted, perhaps self fulfilling automatic trading.
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