Short term profits mismanage an economy

In his book “The Age of Greed the triumph of finance and the decline of America, 1970 to present” Jeff Madrick states, “Expansion of financial firms does not lead to economic growth.” and “executives make decisions that are best for themselves.”

Government sanctioned tax deductible debt led to corporate take overs and opportunities for hedge funds to further channel more capital into their pockets.

According to Madrick, in 2010, hedge fund manager John Paulson’s firm earned one billion in short sales (betting against securities) while investors lost one billion. Paulson was selecting the securities to be sold to investors and “chose the securities because he believed they whose go bad”. John Paulson earned four billion in total that year.” “In 2006 CDO’s ( junk bonds) produced $8.6 billion in underwriting and management fees for Wall Street.” “That same year Merrill paid $500 million in bonuses to 100 employees.”

In the news on July 18, 2012 from the MWDN 7-18-2012- “Goldman Sachs Administration Services administers about $200 billion in hedge fund assets for approximately for 150 clients.”

The Washington Spectator states-“Alexander Hamilton believed a strong centralized government should shepherd private enterprise toward goals in the national interest. On the other hand is the school of Thomas Jefferson, who preferred a nation of small farmers, small business owners, and a limited government to serve them.”

Having an economy based on rapid short term profits for the few is in neither one of these beliefs, precisely because it is not a fair and equitable way to manage a nation’s economy.

Concentration of wealth is occurring, and Bain Capital is very much a part of this dysfunctional system. Electing a man whose company helped corrupt the country’s economy will bring more suffering.

Season of campaign cash

David Brooks said on the NewsHour, that the huge amounts of money being spent on the presidential election will not have any influence. Now why would the wealthy and the powerful spend millions when it won’t have any effect? Why don’t they spend that money on charities or veteran’s organizations where their money would have a huge effect? It doesn’t make sense, but then again we live in unreasonable and non sensical times; and that’s why David Brooks expects people to believe something that just isn’t true, such as the wealthy will spend millions and billions for nothing while expecting no results.

The laws of science state that for every action there’s an equal and opposite reaction. Spending millions and billions on elections will most assuredly have an effect, and it’s irrational to believe it won’t. It’s a well proven and practiced concept that more money spent on advertising increases sales. If your message is the only one heard, or your message drowns out the opposition, you’re golden. If your message is the only message the consumer/voter hears, they have no choice.

Nobody spends money for nothing, and that’s the reality of the situation. We haven’t seen the end results of all this campaign cash yet; the laws of human nature dictate it will turn government by the people and for the people into a government of the Corporation, by the corporation, for the corporation, just as Eisenhower predicted; Military/Industrial Complex here we come.

Ilusionary indignation

The indictment of Attorney General Eric Holder misses a point. One reason cited, is that the family of the slain American border agent deserve an investigation. Which is not to say this shouldn’t be investigated, but the politically selective use of this governmental responsibility just keeps a broken system going.

The family of Pat Tillman certainly deserved an investigation which his mother had to undertake, because the government refused to investigate. Where were the Republican calls for that family? They were mute.

Shortly after the invasion of Iraq, trucks full of pallets of cash and weapons just disappeared into thin air. This certainly warranted inquiry, but of course resulted in no investigations and no indictments, as the republicans ran the war.

The US has just sold $10 billion in military equipment to Saudi Arabia who is now supplying the rebels in Syria. Anyone keeping track of those weapons supplied by the US?

The Pentagon Papers proved that what the government knows, and what they tell us, are two different things. In light of this, we should understand that the government lies to us about everything, in this case the misappropriations of guns.

Blackwater Security was accused of killing innocent Iraqis. The investigation was silenced. That’s why this indictment is so hypocritical.

Mark Shields suggests this is political, stating Eric Holder is a nemesis and adversary to voter ID laws.

Guns, weapons and wars are some of the most lucrative businesses in the world. The current Republican indignation isn’t going to change it. That’s the sad part.