Best of the Week
Most Popular
1.US Dollar Crashes, Gold And Bitcoin Skyrocket As Economic Recovery Lie Is Exposed - Jeff_Berwick
2.Now Obama Warns Americans to ‘Be Prepared’ for Disaster… What Does He Know? - Jeff_Berwick
3.EU Referendum - Britain's Immigration / Migrant Crisis Explained - Nadeem_Walayat
4.EU Referendum - British People vs Establishment Elite, Vote LEAVE an Act of Defiance! - Nadeem_Walayat
5.Prominent Billionaire Investors Warn of Financial Crash, Quietly Position Themselves - MoneyMetals
6.Bankers Warn of BrExit Financial Armageddon if British People Vote for Freedom - Nadeem_Walayat
7.Bad U.S. Jobs Report Prompts Stocks Bear Market Rally Towards New All Time Highs! - Nadeem_Walayat
8.Gold And Silver – Friday May Have Marked A Pivotal Turnaround - Michael_Noonan
9.EU Referendum - British People vs Establishment Elite, the Illusion of Democracy and Freedom - Nadeem_Walayat
10.Felix Zulauf: Monetary Stimulation Creates Bubbles, Not Prosperity Nor Growth - GoldandLiberty
Free Silver
Last 7 days
Gold, Silver And PM Stocks Summer Doldrums Risk - 24th June 16
Here’s Why China “Economic Hard-Landing” Worries Are Overblown - 24th June 16
Jubilee Jolt: Markets Crash, Gold Skyrockets as Britain Takes Brexit - 24th June 16
BrExit Morning - New Dawn for Britain, Independence Day! - 24th June 16
LEAVE Wins EU Referendum - Sterling and FTSE Hit Hard, Pollsters, Bookies and Markets All WRONG! - 24th June 16
Trading BrExit - British Pound Plunges, FTSE Stock Futures Slump on LEAVE Shock Referendum Win - 24th June 16
EU Referendum Shock Results Putting BrExit LEAVE in the Lead Hitting Sterling Hard - 24th June 16
Final Opinion Poll Gives REMAIN 52% Lead, Bookmakers, Markets and Pollsters ALL Back REMAIN Win - 23rd June 16
Does BREXIT Matter? Outlook for Sterling - 23rd June 16
Keep Calm and Vote BrExit - Last Chance to Break Free of EU Superstate - 23rd June 16
Here’s the Foreign Policy Trump and Clinton Really Want - 23rd June 16
Details Behind Semiconductor Stocks Leadership - 23rd June 16
Trading BrExit - Stocks, Bonds, Sterling, Opinion Polls, Bookmaker Odds and My Forecast - 23rd June 16
BrExit Looks Set to Win EU Referendum, Final Opinion Polls Give LEAVE Lead Over REMAIN - 22nd June 16
Proof that the Gold Bears are Wrong - 22nd June 16
Here’s a Trillion-Dollar Investment Opportunity for Those Few with No Debt - 22nd June 16
BrExit to Save Europe from Climate Change Refugee Migration Apocalypse - 22nd June 16
Increase In U.S. Rig Count Will Not Cap Oil Prices - 22nd June 16
Are Copper and China Stocks Set to Rally? - 22nd June 16
SPX May Break Its Trendline - 22nd June 16
Believe it or Not: More Kids Live At Home Now than Since The Great Depression - 21st June 16
EU Referendum Latest Opinion Polls Show LEAVE Halting REMAINs Surge - 21st June 16
British Pound Outlook - BREXIT, Europe and You - Does your vote matter? - 21st June 16
Fascist Victory Behind the European Union - 21st June 16
EU Referendum Opinion Polls Analysis Shows Strong Momentum in REMAINs Favour - 21st June 16
Is It Time to Dump Gold and Buy Platinum? - 21st June 16
Could Central Bankers Be Gold and Silver's BIGGEST Allies? - 20th June 16
Words Still Mean Things – Brexit With Graham Mehl - 20th June 16
Baroness Warsi the Manchurian Candidate Quits LEAVE for REMAIN, Boris Johnson Next? - 20th June 16
FTSE Soars, Stock Markets Bounce on LEAVE Polls Surge, Bookmakers Widen BrExit Odds - 20th June 16
Brexit Would Trigger Devolution of Europe - 20th June 16
Stock Market Week Of Uncertainty - 20th June 16
Will Gold’s Bullish Price Chart Outperform Gold’s 5 Bearish Indicators? - 20th June 16
Bonds And Stocks At All-Time Highs: Are Markets Confused Or Broken? - 20th June 16
Silver Sleeping On the Job - 19th June 16
BrExit Odds Sink, REMAIN Polls Boost by Jo Cox Killing by Radical Right Extremist, Conspiracy? - 19th June 16
How Elliott Waves Tell You When to "Jump In" & When to "Jump Out" of Markets - 18th June 16
Stock Market Inflection Point During Bifurcation - 18th June 16
Gold And Silver – Insanity Is World “Norm.” Keep Stacking! - 18th June 16
Gold Stocks - Bull Markets that Follow Epic Bears - 18th June 16
The Fed Giveth and the Gold Bullion Banks Taketh Away… - 17th June 16
Brexit: "The Vote Heard Around the World" - 17th June 16
Gold Stocks Summer Breakout? - 17th June 16
Stock Investors Get Higher Returns and More Dividend Income - In Less Time With Less Risk - 17th June 16
How to Use the Gold-to-Silver Ratio? - 17th June 16
Inflation, Deflation & Associated Trading Prospects - 17th June 16
Overnight Markets Struggling to Stay Flat - 17th June 16
Gold Price Surges to Highest in Nearly Two Years On Central Bank and Brexit Haven Demand - 17th June 16
Stock Market Thinking Upside Down; Dow 18k Still Key - 17th June 16
Jo Cox MP Terror Attack Killing Claimed for "Britain First" - Witness Report - 17th June 16
Stock Market, Iron Ore, Bitcoin – Is Silver Next for Chinese Momentum Investors? - 16th June 16
EU Referendum Campaigning Suspended Following Shooting of MP Jo Cox, Suspect Named as Tommy Mair - 16th June 16
Why People are Migrating to the UK, Illegal Immigration, Housing Crisis Consequences - 16th June 16
Stocks Fluctuate Following Recent Decline - Bottom Or Just Pause Before Another Leg Down? - 16th June 16
The US Consumer-Driven Economy Has Hit a Brick Wall - 16th June 16
Bitcoin Price Going Parabolic Again, Now At $730 and Up 60%+ In Last Three Weeks - 16th June 16
China's Hard Landing Has Already Begun! - 16th June 16
Crude Oil Price - Oil Bears vs. Support Zone - 16th June 16
Central Bankers Are Wrong About Inflation and Deflation - 15th June 16
Alignment Of The Dow, Interest Rates, Debt and Silver Cycles Will Deliver A Fatal Blow - 15th June 16
Stock Market Bounce May be Over - 15th June 16
EU Referendum: Have the Bookmakers Got it Wrong? LEAVE Opinion Polls Lead - 15th June 16
Gold Price Rally - 15th June 16
How to Invest for Brexit Report - 15th June 16
Stock Market Short of the Decade? - 15th June 16
Stock Market Sell Off Coming! - 14th June 16
QE - The Good, Bad & Ugly - 14th June 16
This Demographic Shift Makes Our Social Security Useless - 14th June 16
Gold Stocks Ultimate Objective in a World of Monetary Transition - 14th June 16
Philosophy of the New World Order - 14th June 16
The Brexit Game - Boris Johnson vs David Cameron EU Referendum Zombies - 14th June 16
EU Referendum: LEAVE Opinion Poll Lead of 51% to 49% Whilst Bookmaker Odds Still Strongly Favour REMAIN - 14th June 16
George Soros Making Big Bets on Gold - 14th June 16

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Why 95% of Traders Fail

A Wealthy Economic Stimulus Needed

Politics / Economic Stimulus Aug 06, 2010 - 11:36 AM GMT

By: James_Quinn

Politics

Best Financial Markets Analysis ArticleJust when things seem like they can't get any worse, we receive the distressing news that the wealthy are starting to cut back. An Associated Press article earlier this week As Spending by Wealthy Weakens, so does Economy detailed the sad plight of the wealthy. Economists say the economy is slowing because the richest 5% of Americans — those earning at least $207,000 — are buying less. They account for about 14% of total consumer spending. According to the article:



"Think of the wealthy as the main engine of the economy: When they buy more, the economy hums. When they cut back, it sputters. The rest of us mainly go along for the ride."



So the 5% of the population are the engine in the Hummer and the other 95% of us are the baggage strapped to the roof just going along for the ride. I'm sure if the engine isn't humming along as well as expected, we can throw some of the baggage overboard to lighten the load. It's OK if the middle class suffers a little more. They are used to it. We must follow the Too Rich To Fail policy in order to keep America in its proper disequilibrium. Everyone needs to accept their spot in the pecking order. The American middle class are the piss boys for the wealthy aristocracy residing in NYC and Washington DC. Wait for the shake "little people".

Official spokesperson for the wealthy Larry Ellison, CEO of Oracle who "earned" $146 billion over the last decade while shareholders received a negative 45% return on their investment, has announced a dramatic cutback in his lifestyle. He has voluntarily agreed to reduce his compensation to $145.5 billion over the next decade while cutting back on his yacht racing from 4 days per week to 3 days per week. The impact on the San Jose economy could be devastating.

There are multiple reports of the wealthy making dramatic cutbacks such as:

  • Cutting their staffs of butlers, cooks, house cleaners, gardeners, and piss boys from 45 to 43.
  • They are only sending their personal shoppers to Tiffanies 4 days per week rather than 5 and they have reduced the daily spend from $5,000 to $4,800.
  • Using the small helicopter to fly the 15 minutes from their gated 45 acre estate to JP Morgan's headquarters.
  • Many of the rich are only filling their Olympic size pools to 4/5 of capacity to save on water.
  • John Kerry is reportedly considering downsizing from his 76 foot yacht called Isabel to a 75 foot yacht named Bourgeoisie in order to send a message to the "little people", that he feels our pain.
  • Many of the Wall Street ruling class are only eating out six days per week and have purposely restricted themselves to Le Bernardin and Masa only for lunch.
  • The ruling elite have scaled back their month long vacations in the Hamptons to only 3 1/2 weeks.
  • I understand that the menus for dinner parties in the Hamptons have been downsized from yellowtail tartare tidbits, green olive pesto crescents, and firecracker shrimp canapés to just caviar, yellowfin tuna ribbons, and sea trout sashimi draped in trout eggs. Oh the humanity. 

Mark Zandi, the brilliant Obama shill economist, chimed in with this scary factoid:

"They are the bellwether for the economy. The fact that they turned more cautious is why the recovery is losing momentum. If they panic again, that would be the fodder for a double-dip recession."

Unless we can stimulate the wealthy to keep spending we are all doomed to a double dip recession. The plight of the wealthy should be at the forefront of anything we do. Since the top 1% wealthiest Americans own 43% of the financial assets in the country, they were particularly hard hit by the stock market crash. These poor souls were quite disillusioned by their losses. It has taken millions in bribes, "political contributions", and lobbying "investments" to recapture 13% of their lost wealth since last year. The recent hiccup in the stock market has made them nervous and edgy. The hysterical "financial reform bill" did cheer them up briefly, but they are back in the doldrums. They are wondering whether the cyber-bot supercomputers being employed by their friends and colleagues on Wall Street to fraudulently push the stock market higher can continue to fend off the reality of a Great Depression II.

"The affluent — as their wealth goes down — they'll become more and more conservative," predicts David Levy, chairman of the Jerome Levy Forecasting Center.

We cannot allow the affluent to become more conservative. Therefore, we must contribute all we can to their wealth, by any means necessary. I'm proposing a multi-pronged strategy to increase the wealth of the wealthy:

  1. All this debate about the Bush tax cuts is silly. The solution is simple. Extend the tax cuts only for those making over $200,000 and screw the peasants, who don't spend money they don't have. This is sort of a reverse Robin Hood strategy. Of course, this would make the budget deficit go up by $2 trillion or so, but only suckers pay interest anyway. The wealthy pay cash.
  2. All these shiftless lazy dregs wandering the streets unemployed are very disconcerting to the rich. They favor extending unemployment compensation to 5 years, paid for by a surtax on those making between $30,000 and $100,000 per year. We need to keep the unemployed masses sedated. Visions of pitchforks, torches and guillotines are distressing to the affluent, as they are not sure their gated estates and private security forces would be able to fend off the angry hoards.
  3. The rich do favor a jobs plan. The CEOs of corporate America generally fall into the rich category based upon their $30 million per year pay packages. These titans of industry have been able to generate awesome bonuses for their top executive cronies and their Board of Director lackeys by shipping  jobs overseas. The solution to our jobs issue is so simple. It is right in front of our noses. Ship the unemployed to Thailand, Vietnam, China, and Indonesia. We have thousands of surplus cargo ships from when we used to make stuff. The shiftless dregs get jobs paying $2 per day, a couple bowls of rice, and are far enough away that they can't revolt against the rich. The government doesn't have to pay unemployment, executive bonuses stay high as profits are maintained, and we ship the American work ethic to our competitors abroad.
  4. All the remaining unemployed will immediately be enlisted into the armed services. The rich control the Military Industrial Complex and will shortly be creating a war with Iran. The unemployed will provide the cannon fodder for this venture. Profits in the Defense industry will soar. This is definitely a win win.
  5. Cash for Clunkers was such an outstanding success that a similar program should be rolled out for the wealthy. The new program would be called Dollars for Diamonds. We know the rich have diamonds just lying around the mansion. We will offer them $20,000 per diamond traded in, if they upgrade to a bigger and better diamond. This will do wonders for Warren Buffett, as he owns most of the jewelry stores in the U.S.
  6. The HAMP program and the homebuyer tax credits did wonders for the peasant housing market. Since the rich have absolutely no scruples, morals, or sense of right and wrong, they have been defaulting at a much higher rate on their million dollar homes as detailed in this chart:

It is clear that the rich are hurting and need their own housing plan. It will be called RAPE (Rich Always Program for Elite). Anyone with net worth exceeding $5 million who verbally tells the RAPE Administrator that they are struggling with their mortgage will immediately receive a check for $500,000. This program will be paid for by eliminating food stamps for the 40 million lazy good for nothings at the bottom rung of the economic ladder.

As I have made perfectly clear, it is our patriotic duty to help the rich regain their confidence. I know you will all agree and do what's right to support the ruling elite.

Join me at www.TheBurningPlatform.com to discuss truth and the future of our country.

By James Quinn

quinnadvisors@comcast.net

James Quinn is a senior director of strategic planning for a major university. James has held financial positions with a retailer, homebuilder and university in his 22-year career. Those positions included treasurer, controller, and head of strategic planning. He is married with three boys and is writing these articles because he cares about their future. He earned a BS in accounting from Drexel University and an MBA from Villanova University. He is a certified public accountant and a certified cash manager.

These articles reflect the personal views of James Quinn. They do not necessarily represent the views of his employer, and are not sponsored or endorsed by his employer.

© 2010 Copyright James Quinn - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

James Quinn Archive

© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife