Plutocracy

8/8/2019 Plutocracy

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Plutocracyisrulebythewealthy,orpowerprovidedbywealth.Thecombinationofbothplutocracyandoligarchyiscalledplutarchy.MosteveryoneIknowisworseoffthantheywerejustfiveyearsago.Areyou?

Ifsowhy?Inhisarticleentitled“HowtheMiddleClassIsShrinking”,October15,2010,RickNewmanwrites“AsAmericalimpstotheendofthefirstdecadeofthe21stcentury,themiddleclassthatonceformeditscorestrengthseemstobeintatters.Themanufacturingjobsthatoncehelpedmillionsgetaheadhavebeeninsharpdeclineforadecade,andnownumberone-thirdlessthantheydidin2000,despiteagrowingpopulation.Wageshavefallenasjobshavemigratedoverseas,withthetypicalfamily'sincome,afterinflation,down5percent

since2000.Newsheadlineswarnthatthemiddleclassisbecoming"extinct"orbeing"wipedoutofexistence."ElizabethWarren,chairoftheCongressionalOversightPanelcreatedtooverseethebankingbailouts,providedsomesoberingstatisticstosupportNewman’spremise.OnanarticleshepostedonTheHuffingtonPost,December3,2009,shewrites,“Today,oneinfiveAmericansisunemployed,underemployedorjustplainoutofwork.Oneinninefamiliescan'tmaketheminimumpaymentontheircreditcards.Oneineightmortgagesareindefaultorforeclosure.OneineightAmericansisonfoodstamps.Morethan120,000familiesarefilingforbankruptcyeverymonth.Theeconomiccrisishaswiped

morethan$5trillionfrompensionsandsavings,hasleftfamilybalancesheetsupsidedown,andthreatenstoputtenmillionhomeownersoutonthestreet.Shesaidrecently"thesystemisbrokenandit'scrushingfamiliesallacrossthiscountry." AccordingtoaCitibankMemoonPlutocracy,thesystemisnotbroken;infactitisworkingperfectly-forabout1percentoftheCountry.CitibankhasdeclaredthatoureconomyisnowaPlutonomy.(Aneconomythatisdrivenbyorthatdisproportionatelybenefitswealthypeople,oronewherethecreationofwealthistheprincipalgoal.[Blendofpluto-(wealth)andeconomy.])

TheSummaryofthememoreads:➤TheWorldisdividingintotwoblocs-thePlutonomyandtherest.TheU.S.,UK,andCanadaarethekeyPlutonomies-economiespoweredbythewealthy.ContinentalEurope(ex-Italy)andJapanareintheegalitarianbloc.➤Equityriskpremiumembeddedin“globalimbalances”areunwarranted.Inplutonomiestherichabsorbadisproportionatechunkoftheeconomyandhave

8/8/2019 Plutocracy

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amassiveimpactonreportedaggregatenumberslikesavingsrates,currentaccountdeficits,consumptionlevels,etc.Thisimbalanceininequalityexpressesitselfinthestandardscary“globalimbalances”.Weworryless.➤Thereisno“averageconsumer”inaPlutonomy.Consensusanalysesfocusingonthe“average”consumerareflawedfromthestart.ThePlutonomy

StockBasketoutperformedMSCIACWorldby6.8%peryearsince1985.Doesevenbetterifequitiesbeathousing.Selectnames:JuliusBaer,Bulgari,Richemont,Kuoni,andTollBrothers.Inotherwords,asfarasthePlutocracyisconcerned,Americanconsumers,oraconsumereconomyarenolongernecessarytosupporttheAmericanPlutonomy.Thisexplainsthe"jobless"recoveryunderway.Cananyonesayserfdom?citibankmemoonplutocracy