The American "Economy" (Summed Up In 1 Cartoon)

Zero Hedge ^ | 05/28/2015 | Tyler Durden

[Arm_Bears]

So, are we slipping into class warfare here on FR?

If so, I will go elsewhere.

[ctdonath2]

The Federal Reserve, in collusion with the Mint and the Treasury, “print” more money (details irrelevant).
Where does that money go? they “loan” it to the banks.
“Banks”, of course, are now a broad term pretty much covering the entire financial investment industry.
So, speaking colloquially, the Fed dumps trillions of dollars into Wall Street.
Of course the Dow Jones Average is at an all-time high.

Interesting that nobody is discussing HOW that new money should be pumped into the economy.
Being one politically positioned such that I’m to the right of the Tea Party, may I humbly suggest (if you disagree, objective mutual discourse preferred):
All “new money” should be divided among citizens, evenly (or, alternately, as a tax credit proportional to one’s tax liability; other suggestions welcome).
Don’t just dump new money where mostly just big-money people can get at it - seeing as the creation of new money sorta “teleports” value away from existing cash (to wit: doubling the money supply halves the value of the money previously held, imputing the other half to the new money), best to exercise something closer to a stock split where every unit held is multiplied accordingly and the new currency/stock appears in the holder’s hand, not in someone else’s.

[JoeProBono]

[Axenolith]

That’s not class warfare, it’s Criminals vs Americans warfare.

Trillions in bailouts, NO ONE goes to jail even up to rigging global interest rates and laundering billions for drug dealers et. al. but GOD forbid you cross the wrong state line with a legally held CCW weapon or fill a wet spot on your land or dig an unauthorized hole...

[Moonman62]

If Obama were a Republican they would be calling this the trickle down economy without the trickle.

[COBOL2Java]

So, are we slipping into class warfare here on FR?

If so, I will go elsewhere.

Is the term "crony capitalism" foreign to you? If so, I guess you've been asleep for the last several years.

[NoCmpromiz]

slipping into class warfare here on FR?

I find your interpretive processes... interesting.

Maybe you could explain why, considering that the DOW is inflated, the middle class - you know, the ones who used to have jobs - is shrinking, the welfare recipients and the minimum wage no-skill jobs are increasing, and ObiWon's policies are causing it, you see class warfare in this cartoon?

Are you perchance the beneficiary of the Won's largess?

[sparklite2]

With zero percent interest rates
(a $10,000 Bank of America money
market account I opened grew
by 29 cents the first year), putting
retirement funds into stocks and bonds
is the only alternative.

If the middle class isn’t investing
any of their money in the market,
whose fault is that? How do they
plan to finance their kids’ college
educations and their own retirement?

[COBOL2Java]

If the middle class isn’t investing any of their money in the market, whose fault is that? How do they plan to finance their kids’ college educations and their own retirement?

It's all part of their plan...

[NoCmpromiz]

If the middle class isn’t investing any of their money in the market, whose fault is that?

The middle class.. You mean the ones with the highest percentage of un/under employment?

Yeah - I'm sure they have a couple of spare dimes to invest..

[Las Vegas Ron]

So, are we slipping into class warfare here on FR?

That might be a fair accusation if we were living in a truly capitalistic society instead of the crony/fascist/pay to play and win/ etc society we're living in now.

Personally I thought the cartoon was simply going to be a picture of a house of cards....

[sparklite2]

They must like it. How else to explain Obama’s re-election?

[varyouga]

“All “new money” should be divided among citizens, evenly”

Then all the new money becomes “zeroed out” and nobody benefits. (i.e. if you give everyone an identical pay raise, costs would increase the same amount)

The market requires imbalances and inequalities to work. Your value in the market is purely what other people are willing to pay for your service or product at that moment. Every human in the marketplace is NOT materially equal or valuable to others at every moment in time.

Today, the new money is “given” out to people in the form of loans. The banks decide who is best to loan to and how much they deserve. Mostly to businesses and developers with proven records of increasing capital.

The only other option right now is pure communism where committees allocate ALL resources and capital. And I’ve seen the results of that in the USSR: friends of the government get everything, everyone else gets the leftovers and eventually everyone stops trying.

[sparklite2]

An excellent response.

[newfreep]

Under Comrade obamatollah, the Fed has printed $5 TRILLION in new money out of thin air (aka “QE”) and funneled it to Wall St to prop up the stock prices....cuz the economy isn’t pushing up the values.

In a rare moment of honesty, Stanley Druckenmiller (one of Soros’ minions) stated on CNBC “QE was the largest transfer of wealth in the history of the world.”

[Toddsterpatriot]

Where does that money go? they “loan” it to the banks.

Banks are not borrowing from the Fed, they're lending the Fed over $2 trillion.

All “new money” should be divided among citizens, evenly

The new money was spent buying Treasuries and guaranteed MBS. You could have sold some to the Fed, if you wanted to sell. You'd reduce your bond holdings, yielding 2%-4%, and you'd have more cash. Not sure how that's any sort of windfall.

[nomad]

Bye.