Wednesday, December 9, 2015
The Result of Financial Repression:
After 30 years of Financial Repression - in the form of negative real rates which constitute a heavy tax on the household sector and an enormous subsidy to the banking sector and the corporate sector - the vast middle class of the United States feels angry and cheated.
Financial Repression also takes the form of other policy initiatives that result in an outcome where worker compensation has sorely lagged worker productivity for 30 years. This also constitutes a tax on the household sector and a subsidy for the corporate sector.
Few understand this, but everyone feels it.
We all feel screwed.
We all feel cheated.
We all feel angry as hell.
We all want somebody to stand up and screw and cheat somebody else in return.
Enter Donal Trump.
And the more he pledges to cheat and screw OTHERS the more we love him.
Unfortunately, Financial Repression is very hard to understand. It shouldn't be. But it is.
And we all want to get someone back. So rather than direct our intense anger at the source of Financial Repression: The Fed and our own Government, we direct our anger at the easiest targets: IMMIGRANTS.
The goddam brown people who are stealing our jobs and murdering our grandparents. If we screw and cheat them we'll all feel better. And the more Donald Trump pledges to screw and cheat people the better we like him.
Of course, the corporate/banking/government sector that spawned him - that taught him to cheat and screw - doesn't like him. Because he'll cheat and screw them too, if it profits him. And right now, it does. He'll screw every last one of them if it gets him the presidency. Everyone and everything. And we love him for it.
We reap what we sow.