Plutocracyis rulebythewealthy, orpowerprovided bywealth.The combinatio nofbothplut ocracyando ligarchyiscalledpluta rchy. MosteveryoneI knowisworse offthanthey werejustfiveyears ago.Areyou? Ifsowhy? Inhisarticle entitled“HowtheMiddleClassIsShrin king”,October 15,2010, RickNewmanwrites “AsAmericalimps totheendof thefirstdecade ofthe21stc entury,themiddle classthatonceformedits corestrengthseemstobein tatters.The manufacturing jobsthato ncehelpedmillionsget aheadhavebeen insharp declineforadec ade,andnow numberone-third lessthanthey didin2000, despiteagrowin gpopulation.Wageshavefallena sjobshavemigrated overseas,with thetypicalfamily's income,after inflation,down 5percent since2000. Newsheadlineswarn thatthemid dleclassisbeco ming"extinct" orbeing"wipedoutofexistence." ElizabethWar ren,chairoft heCongressiona lOversightPanelc reatedto overseetheban kingbailouts, providedsomesob eringstatist icstosupport Newman’spremise. Onanartic leshepostedon TheHuffingtonP ost, December3,2009,shewrites ,“Today,one infiveAmericans isunemployed, underemployedorjus tplainouto fwork.Onein ninefamiliesca n'tmakethe minimumpayment ontheircredit cards.Onein eightmortgages areindefault orforeclosure. OneineightAmeric ansisonfo odstamps.Mo rethan120,000 familiesarefilingf orbankruptcy everymonth.The economiccrisishaswiped morethan$5 trillionfrompens ionsandsavin gs,hasleftfamilybalancesheets upsidedown,a ndthreatenst oputtenmillion homeownersou tonthestree t. Shesaidrecent ly"thesystemis brokenandi t'scrushingfamilies allacross thiscountry." Accordingto aCitibank MemoonPlutoc racy,thesyste misnotbroken;infact itisworkingperfectly-forab out1percent oftheCountry.Citibank has declaredthato ureconomyisn owaPluton omy.(Anecono mythatisdriven by orthatdispr oportionatelyb enefitswealthypeo ple,oronewhere thecreation ofwealthistheprincipalgoal. [Blendofpluto-(wealth)andeconomy.]) TheSummaryofthememoreads: ➤TheWorldisdi vidingintotwo blocs-theP lutonomyand therest.TheU.S ., UK,andCan adaarethek eyPlutonomies- economiespowered bythewealthy. ContinentalEurope(ex-Italy)and Japanareint heegalitarianbloc. ➤Equityriskpremiumembeddedin“globa limbalances”are unwarranted. In plutonomiesthe richabsorb adisproportion atechunkof theeconomyand have

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8/8/2019 Plutocracy

http://slidepdf.com/reader/full/plutocracy 1/2

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

http://slidepdf.com/reader/full/plutocracy 2/2

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