Will the 99% bring down capitalism? Protests on Wall Street and across America highlight the inequalities of life in a materialistic and financially centred society. Millionaires are common place, whilst Billionaires abound in this new world of the super rich. Protesters in London only managed to close St Paul’s cathedral, not the Bank of England or the Stock Exchange, because these only exist in the clouds not in reality, and that is their problem. How do you protest against electronic impulses? not easy, as some people in prison will verify.
But perhaps the protesters do not have to take direct action, it is possible that capitalism has an enemy within. What is its greatest strengths? Greed! what is its greatest weakness? Greed! how rich can I get, how much can I make without having a social conscience? do I care that someone lives in a tent, without basic services, no medical care or any of lifes amenities? Who cares about them? well not the American Government or any politicians in Washington and certainly not Wall Street.
Warren Buffett can see some of the dangers, so he suggests extra taxes on the super rich to ease some of the suffering. But the vultures are not interested, they can borrow money from the Banks at an extremely low-interest rate because they get money from the Federal Reserve for nothing. They can then speculate on oil forcing up your petrol prices at the pump, or corn and rice futures forcing up food prices. What do they care they are still getting richer. However, like many bubble economies, do they wonder what will happen when the Fed withdraws the cash? or will they be like junkies, wondering where they can get the next fix. What happens when they have to use their own money instead of leveraged purchases?
It is time for The Federal Reserve to return to the real economy. Stop feeding the junkies on Wall Street. Give people an interest rate that they will feel confident with. Reward their savings with a decent return for all their years of hard work. Who knows, for such a small return, these people may decide to vote against the rich.
The bureaucrats in Washington may feel safe, but how about the politicians? will you still be there in four years time? What then, if they turn against the money men? more regulation, more control? Perhaps it is time for financial institutions to develop a social conscience. You can still be very wealthy and spread some wealth about, provide jobs inside the USA, not move everything to China. Without work and wages you do not have a mass market to sell into, there is no one to provide the bulk of finance to keep the wheels turning, just more discontent. It is cheaper this way. Or is common sense a dirty word in your world? Just remember what happened to Marie Antoinette…