Wednesday, November 21, 2012

A Conspiracy of Dunces

In case other countries are wondering how American workers became Third World wage slaves in their own country - below are step-by-step instructions.
(Warning: Do Not Try This At Home):

Step 1: Maximize Profit Margins

Outsource as much as possible to ensure the highest profit margins and lowest wage input costs

Corporate Profits as % of GDP:  All Time High.  Those who own stocks at this juncture are making the implicit bet that profit margins can go even higher or remain at these inflated levels indefinitely.  Given that Walmart's revenues are no longer meeting expectations, the self-cannibalizing model is starting to go in reverse...

Wages as % of GDP:  All Time Low.  As we see, for most Americans the transition to a Third World standard of living is already well underway.  

Step 2: Leverage the unemployed middle class by lowering Interest Rates to 0% and encouraging them to borrow as much as possible.  Milk them for all they are worth, and then some...

Unemployed Middle Class: (Labor Participation Rate)

Total Debt: 350% of GDP

Debt Growth Relative to GDP:  That's what 30 years of Supply Side Economics buys you - bankruptcy

Step 3: Lower taxes to ensure maximum ROI from historically massive profit margins

Taxes as % of GDP:  Make sure to repeat over and over again that low taxes are the key to growth and debt reduction (but make sure they never see the chart above and the one below at the same time)...

Step 4: Maximize government expenditures while minimizing taxes to leverage the Government to maximum extent possible (red line is expenditures, blue line is tax receipts).  Make sure the government is as broke as possible going into the collapse:

Step 5: Divide up the wealth so that 10% of the people own three quarters of the country.  But brainwash the hell out of the masses so they don't realize that the American Dream is a lottery.

Step 6: Marinate liberally in junk food and junk culture to ensure the masses are stewed in their own juices.  Propagate Faux News to ensure anyone who questions the status quo is immediately deemed "Unmerkan"

Step 7: Entrench the party of anger and war in Congress as gatekeepers to make sure nothing changes whatsoever.

Step 8: Elect a "liberal" figurehead President who pretends to be on the side of the middle class, while he turns a blind eye to all of the factors mentioned above.  This is a crucial step to ensure total inaction, by making sure all of the limousine liberals feel that they have done their part to help the less fortunate. 

Step 9: Let simmer as long as possible until it eventually explodes in a molten hot fury of pent-up rage. 

Some would say that this was all a planned conspiracy by the "elites" to take over the country.  I see only the footprints of greed and stupidity - at best, a conspiracy of dunces.  Granted, I have no doubt that the Romney Class has plenty of wealth offshore in Swiss bank accounts denominated in Swiss Francs; however, the overwhelming amount of wealth on this planet - measured in the tens of trillions, is still tied to this pyramid scheme.  So when it collapses, the RomneyBots will learn an important lesson from history, which is never go all in leaving the masses with nothing left to lose.  Even the Kings of old were not that stupid.

No bailouts, No Wall Street, No problem.