Saturday, October 23, 2010

Wall Street Rallies...on the lie of economic gains

Earnings indicate that the rally in the stock market will continue according to the shills and pundits, however many of those gains came on the backs of laid of workers(they call it job productivity and cost cutting), continuing the out-sourcing of jobs(increased by 30% in 2010)and QE2(the devaluing of our dollar for the profits for the banking industry, lobbyists for US companies that export and the hope that the housing industry will stabilize.
Time for a Haircut
If the truth in reporting by the media were complete, our corporate gains due to sales growth did not happen. You cut workers hours and you make them do more with less is the facts behind those profits. Foreign affiliates of US companies increased employment 30% to 10 million on foreign shores while at home the US version of these same companies lost a total of 5.5 million workers since 2001. It continues when Dell announced it is closing its last large US facility in North Carolina. Our economic job haircut comes from the lie of free trade. Isn't it a shame that we invented items like the cell phone and 1.2 billion of them were manufactured elsewhere? Rawlings is the official supplier of Major League Baseball, but not made here. It is the same for many brands like Converse, Hanes and almost any US company. Keep in mind that sovereign wealth funds and foreign companies have gobbled up the likes of Bud, Gerber and many more.  
Finally, when the Fed devalues our dollar we all suffer daily due to the rising cost for food and energy while the few exporting companies(we only export 14% of GDP)made gains due to this decline in the value of the dollar. So, did any of the Feds actions help every day Americans? No! Terminate the Fed. Place protective tariffs on all imports and swing the pendulum back to job security and social mobility at home. Of course, if this policy were to be adopted, Wall St. would tank - let it, afterall the Yankees lost.