Best of the Week
Most Popular
1.Independent Scotland Will Disintegrate as Unionist Regions Demand Referendum's to Rejoin UK - Nadeem_Walayat
2.Bank of England Panic! Scottish Independence Bank Run Already Underway! - Nadeem_Walayat
3.Scottish Independence Referendum Result NO 55%, YES 45% - Vote Forecast - Nadeem_Walayat
4.Scotland Independence Result NO Win 55% to Yes on 45% - Nadeem_Walayat
5.US Dollar Forecast to Go Much Higher - David_Petch
6.Russian Union Of Engineers Accuses Ukraine Airforce In MH17 Crash - Raul_I_Meijer
7.The Emergence of the US Petro-Dollar - Gary_Dorsch
8.Don't Miss This Gold Buying Opportunity - Brien Lundinr
9.Silver Price: A Collapse and a Rally - DeviantInvesto
10.Silver Buyers Keep Stacking And Demand Higher Despite Falling Prices - 18th Sept 14 - GoldCore
Last 5 days
Singapore Becoming Global Gold Hub - Launches Kilo Bar Contract And Gold ATMs - 30th Sept 14
Germany Fights on Two Fronts to Preserve the Eurozone - 30th Sept 14
Turn the Tables on the Gold and Silver Market Manipulators - 30th Sept 14
U.S. 2014 Election Business as Usual - 30th Sept 14
Gold - Time to Buy the Dip? - 30th Sept 14
Urging Investors to Stay Liquid for the Coming Gold Stocks Boom - 30th Sept 14
The Japanese Deflation Myth and the Yen’s Slump - 29th Sept 14
Epic Investor Optimism that Can Be Reversed Only by a Huge Stocks Bear Market - 29th Sept 14
Russia’s Gokhran Buying Gold Bullion In 2014 and Will Buy Palladium In 2015 - 29th Sept 14
The End of Monetary Policy - 29th Sept 14
Here's What Rising Interest Rates Really Do to Your Shares - 29th Sept 14
Is a Credible Stock Market Top Forming? - 29th Sept 14
Silver Price At or Very Close to an Important Low - 29th Sept 14
Gold Price Very Close to an Important Low - 29th Sept 14
Nihilism And The Unknown Future - 29th Sept 14
Stock Market S&P, NAS Change In Trend? None Apparent, But A Caveat - 29th Sept 14
UK Saved From I.S. Threat But Scottish Independence Nightmare is Not Over! - 29th Sept 14
U.S. Aggression - Will Russia and China Hold Their Fire? - 28th Sept 14
Currency Wars and the Death of the Euro - Audio - 28th Sept 14
Obscure Maritime Law Practically “Guarantees” Profits for These Energy Companies - 28th Sept 14
Stock Market Primary IV Underway? - 27th Sept 14
Darwin And The Climate Apocalypse - 27th Sept 14
The Global Middle Class and Copper Consumption, A Stop Spike Event - 27th Sept 14
Can Money Save The Climate? - 27th Sept 14
Gold And Silver - PetroDollar On Its Deathbed? PMs About To Rally? No - 27th Sept 14
Debt and Inflation Consquences of American Fear - 27th Sept 14
U.S. and Global Confidence are in Divergence - So Are Stock Markets - 27th Sept 14
Are U.S. Cars About to Crash? - 27th Sept 14
Why the U.S. Created and Armed ISIS From Libya to Syria - 27th Sept 14
Stock Market vs the Developing Bear Market for Liberal Democracy? - 26th Sept 14
Stock Market Major Selloff Looms - 26th Sept 14
How My Charts Uncovered Two Big Stocks That Are Soaring Like Small Caps - 26th Sept 14
What Cycles Reveal About Stock Market Crash - 26th Sept 14
Gold Not A Safe Haven On Terrorism, Middle East Bombing, Russia ... Yet - 26th Sept 14
Valuing Gold and Turkey Farming - 26th Sept 14
Gold $1200 Underpinned by Physical Demand - 26th Sept 14
Inflate or Die! When Leverage Fails and Market Hope Turns to Fear - 26th Sept 14
Market Forecasts for Stocks, Gold, Silver, Commodities, Financials and Currencies - 26th Sept 14
Gold and Silver Bear Phase III Dead Ahead - 26th Sept 14
The Home Depot Breach Boils Our Blood – and It Should - 26th Sept 14
Why the Pundits are Wrong About Crude Oil Prices - 26th Sept 14
Where’s the Economic Growth? - 26th Sept 14
Stock Market Future Bull - 25th Sept 14
The Specter of Global Debt Default is Once Again Rearing its Head - 25th Sept 14
All Major Market Analysis and Forecasts Investor Open House has Started! - 25th Sept 14
Federal Reserve Policies Cause Booms and Busts - 25th Sept 14
Currency Wars Deepen - Russia, Kazakhstan Buy Very Large 30 Tons Of Gold In August - 25th Sept 14
Strong U.S. Dollar Pressures Gold - 25th Sept 14
10 Things That Affect Your Purchasing Power - 24th Sept 14
US Government - The World’s Largest Subprime Debtor - 24th Sept 14
Venezuela's Gold Appears To Be Still In Venezuela But For How Long? - 24th Sept 14
The Washington-Wall Street "Corruption Corridor" - 24th Sept 14
The Poison Eating at the Heart of Macroeconomics - 24th Sept 14
Gold And Silver Voodoo Analysis Price Forecasts - 24th Sept 14
Stock Market Decline Below Wave (iv) Low - 24th Sept 14
How Falling Oil Prices Could Trigger an "Unpredictable and Dangerous Mess" - 24th Sept 14
The Quick Slide From Hope to Despair As War Returns--If It Ever Went Away - 24th Sept 14
Hedge Funds Surpass 2007 Leverage; New Era of 'Permanent Investigations' Confirms Imminent Reversal - 23rd Sept 14
Home Healthcare Cuts Threaten 500,000 Jobs and Female-Owned Businesses - 23rd Sept 14
Silver, Gold, Debt and Taxes - 23rd Sept 14
A Post-Petrodollar Play for Triple-Digit Gains - 23rd Sept 14
Regime Uncertainty Weighs on U.S. Economic Growth - 23rd Sept 14
Bread, Circuses and Bombs - Decline of The American Empire - 23rd Sept 14
Has The Gold Price Drop Run Its Course? - 23rd Sept 14
Stocks Rally Following Janet Yellen's Conference and Scotland's Historic Referendum Result - 23rd Sept 14
Why Isn’t U.S. Housing Market A Bubble? - 23rd Sept 14
The Macro View and the Stock Market - 23rd Sept 14
Gold, the Fed and the Looming Stock Market Correction Q&A - 23rd Sept 14
Can Gold Act as a Safe Haven Again? - 23rd Sept 14
Tesco Super Market Giant Fast Disappearing Down a Financial Black Hole - 22nd Sept 14
Where China and Japan Are Investing Billions - 22nd Sept 14
Scotland YES 71% - Global Youth Intifada Moves On - 22nd Sept 14
U.S. Dollar: The Last Hurrah? - 22nd Sept 14
China Moves To Dominate Gold Market With Physical Exchange - 22nd Sept 14
One Giant Cluster Ponzi - 22nd Sept 14
The Millenial Cult Of Global Warming - 22nd Sept 14
Dubai Residential is NOT a Property Bubble But the Party’s Over - 22nd Sept 14
Stock Market Topping Process Update - 22nd Sept 14
Indian Stock Market BSE SENSEX The Encore Rally - 21st Sept 14
ISIS Fear-Mongering Ahead of Another US False Flag? - 21st Sept 14
Ecology Politics And Haeckel's Tree Of Meaning - 21st Sept 14
ASX200 Stock Market Index Set For New Highs - 21st Sept 14
Scottish Referendum Not Avoiding The Future - 21st Sept 14
Five Lessons Learned from the Scottish Referendum - 21st Sept 14
The Problem With UKIP And Other I I P's - 21st Sept 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

The Most Exciting Event in the History of Technical Analysis

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

© 2005-2014 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

Free Report - Financial Markets 2014