The headline right now at CNN reads “Grim Bernanke Offers Grave Threats.”
The premise is, apparently, that unless the Federal Government gives money — with no strings attached — to the companies that caused this whole economic mess the economy will take a huge downturn.
Newsflash for Mr. Bernanke: The economy took a huge downturn a year ago and continues to slide as people are less and less able to purchase items, less able even to make payments on existing debt. We are, as a nation, stagnating, drowning under huge debt loads we cannot pay — debt we would not have incurred without predatory lenders… who were being encouraged by corporations to extend credit so that consumers would purchase things they would otherwise have waited for or never bought. This artificial prosperity allowed “investors” to take profits in advance of people actually paying for the products that were delivered. And, it drove up prices for many items for above their actual value because of temporarily increased demand.
Does it sound complicated? Think about this: 50 years ago, few people had credit cards of any kind. Purchases were made in cash — or on store accounts that were carefully monitored, and immediately frozen if a payment was late. People went into debt to buy a house, to purchase a car, to pay doctor bills – NOT to buy vacations and video games! Today, most people have credit cards, and many (more and more as the economy bleeds jobs) are juggling their accounts to try to keep current… meaning there is less actual cash flowing in to the economy because salaries and wages are pre-spent.
What is apparent is, the federal government and pundits don’t care about the real economy — the one average people deal with. They care about the economy of the rich people, the ones who hold investments and run the banks and other financial institutions.
And yet… their wealth depends on the hard work and prosperity of the actual workers.
Think about it.