American Ruling Class

Bill Bonner: Why I Sued Washington 28 Years Ago

"When the Spanish conquered South America, their encomienda system of slavery typically required only 40 days of work from their victims. The French conquered Madagascar; they forced male Hovas between 16 and 60 to work 50 days a year. The US example is closer to that of Russia – where Emperor Paul I, in 1797, declared that three days a week was enough for serfs to give their lords and masters. That works out to nearly 150 days a year. A 50% tax rate – federal, state and local – is the equivalent of about 125 days of forced labor a year. Pretty steep. But that’s just the beginning. In our system of crony democracy, all the major industries have whips in their hands." Continue reading →

Continue ReadingBill Bonner: Why I Sued Washington 28 Years Ago

Peak Real Median Income In USA = 1999; Washington DC = 2012

"Real Median household income peaked way back in 1999 at $56,000 and by 2012 it was down 9%—an unprecedented decline. It goes without saying that Washington’s Keynesian ministrations on the money printing and national debt front didn’t much help. In fact, the Fed’s balance sheet has expanded from $450 billion to $4.4 trillion during that period or by nearly 10X. Likewise, the national debt has nearly quadrupled to $17 trillion during the same period. Well, all this monetary and fiscal profligacy did apparently help in one precinct: Namely, the Washington beltway where median household income reached its all-time high in 2012 and undoubtedly continues to rise." Continue reading →

Continue ReadingPeak Real Median Income In USA = 1999; Washington DC = 2012

Former Fed Employee Charged With Felony For Threatening To Kill Boss

"After reading an article about the psychotic behavior of a former Federal Reserve employee, I would be reluctant to criticize the Fed in the presence of an employee of the world’s most powerful banking cartel. Zero Hedge has some stellar coverage about a former San Francisco Fed employee, and current employee at the Federal Housing Finance Agency (FHFA), that threatened to kill his boss and then take his own life. Richard Hornsby, Chief Operating Officer of the FHFA, was arrested and charged with a felony for threatening to kill Edward J. DeMarco. Mr. DeMarco was Hornsby’s superior at FHFA. The death threat was supposedly the result of a poor job performance rating." Continue reading →

Continue ReadingFormer Fed Employee Charged With Felony For Threatening To Kill Boss

Bank of Israel’s Fischer, Treasury’s Brainard to push for more activist Fed

"The arrival of former Bank of Israel Governor Stanley Fischer and former U.S. Treasury official Lael Brainard will add two strong voices to back Chair Janet Yellen's view that loose monetary policy needs to be extended to turn around a slack labor market. Fischer intervened directly in Israel's mortgage market to tackle a real estate bubble, while Brainard pushed EU governments hard for more aggressive action from the European Central Bank during the euro zone crisis. Interviews with former colleagues and a review of their public statements also suggest both will want the Fed to remain in activist mode long after its current programs wind down and its bloated balance sheet shrinks." Continue reading →

Continue ReadingBank of Israel’s Fischer, Treasury’s Brainard to push for more activist Fed

Yellen tells graduates: Show grit like Ben Bernanke

"Federal Reserve Chairwoman Janet Yellen on Wednesday delivered what you’d expect from a commencement speech: graduates, she said, should 'tend the fires of curiosity,' listen to others, and show grit in the face of failure. Yellen reminded New York University students in Yankee Stadium that even Babe Ruth, Lou Gehrig and Joe DiMaggio failed most of the time they stepped to the plate, according to a text of her remarks. And what example did Yellen find for such an inspirational beacon of bravery? Why, her predecessor, Ben Bernanke." Continue reading →

Continue ReadingYellen tells graduates: Show grit like Ben Bernanke

Bill Bonner: Here’s Proof That Wealthy Elites Control Washington

"We had no proof. Just an observation. But it looks to us as though government always begins and ends as a tool for those who control it. It is not the product of a 'social contract.' It is not an expression of the 'general will.' It is not the 'price we pay for civilization.' It is not 'captured by wealthy special interests.' On the contrary, it is as blunt and stupid as a crowbar. It is used by the elite to pry wealth, status and power away from everyone else. Few victims of the public school system believed us, but now cometh a study from Princeton and Northwestern universities proving we were right." Continue reading →

Continue ReadingBill Bonner: Here’s Proof That Wealthy Elites Control Washington

Oligarchy in the 21st Century … Get Used to It?

"Alan Greenspan no doubt would have answered in a way that allowed for multiple interpretations. But Yellen took the question with little equivocation. We can see that Yellen is being cautious, even as she is granting the possibility that the US is an oligarchy. Sanders has an agenda, but Yellen is certainly not about to discount it outright. That this question came up at all is the result of a Princeton study on the subject. A TalkingPoints post back in April reported on the study, which asks 'who really rules the US.' The study concludes that in the past few decades America's political system has evolved from democracy to oligarchy." Continue reading →

Continue ReadingOligarchy in the 21st Century … Get Used to It?

Former US Consumer Finance Watchdog Voices Support for Bitcoin

"Raj Date, the former Deputy Director of the US Consumer Financial Protection Bureau (CFPB), a consumer finance watchdog, said in an interview this week that he supports – and is now investing in – bitcoin. During a segment of Bloomberg Television’s 'Street Smart,' Date commented that, on a personal level, he sees a lot of potential in digital currencies like bitcoin. In the interview, Date said that bitcoin has the potential to deliver faster and more secure payments than is currently possible for most consumers, and remarked that the pace of innovation could result in a broader evolution in digital currencies." Continue reading →

Continue ReadingFormer US Consumer Finance Watchdog Voices Support for Bitcoin

Cheap Printing vs. Expensive Drilling

"Yellen explained that the Fed helps people secure employment 'by influencing interest rates.' She followed, 'Although we work through financial markets, our goal is to help Main Street, not Wall Street.' Her predecessor used the same rhetoric in 2012. 'This is a Main Street policy. Many people own stocks directly or indirectly. The issue here is whether or not improving asset prices generally will make people more willing to spend.' Oil, unlike the Fed’s fiat dollars, can’t be created out of nothing. And, job or no job, people are driving. Mrs. Yellen tells crowds, Don’t worry be happy, your job will be printed anytime now. Let’s just say, for those with a job to go to, getting there will not be getting easier." Continue reading →

Continue ReadingCheap Printing vs. Expensive Drilling