Posted by greydogg, 99GetSmart

* BOMBSHELL: PLUTOCRATS BRAZENLY COLLUDE TO HURT STATE ECONOMIES AND SCREW WORKING PEOPLE

By Lynn Parramore, AlterNet

Illinois fatcats discuss plan to sabotage state bond ratings in scheme to destroy pensions.

These days, many Americans walk around feeling like no matter how hard they work, how much they manage to save or how carefully they plan for the future, the game is rigged against them. They suspect that behind closed doors, CEOs and Wall Street honchos are eagerly scheming to rip them off.

Their worst fears of corruption and collusion just came true in Illinois, where corporate titans were caught red-handed in the act of Rigging the Game.

…snip…

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READ @ http://truth-out.org/opinion/item/17917-bombshell-plutocrats-brazenly-collude-to-hurt-state-economies-and-screw-working-people

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* CHICAGO NEXT? WINDY CITYCASH BALANCE PLUMMETS TO ONLY $33 MILLION AS DEBT TRIPLES

By Tyler Durden, zerohedge

While everyone’s attention is focused on the Detroit bankruptcy, and just what assets the city will sell in lieu of raising a DIP loan, perhaps it is time to refocus attention to the city 300 miles west: Chicago. According to the Chicago Sun Times citing year-end audits, Obama’s former right hand man, Rahm Emanuel, closed the books on 2012 with $33.4 million in unallocated cash on hand — down from $167 million the year before — while adding to the mountain of debt piled on Chicago taxpayers. In addition to a liquidity problem, Chicago may also be quite insolvent as the city’s total long-term debt soared to nearly $29 billion. That’s $10,780 for every one of the city’s nearly 2.69 million residents. More than a decade ago, the debt load was $9.6 billion or $3,338 per resident. Of course, in a world in which debt is “wealth”, this is great news… at least until debt becomes “bankruptcy.”

Ironically last year, now-retiring City Comptroller Amer Ahmad argued that the city’s debt load was not “troubling” because, “We still have a very strong bond rating. Our fiscal position is getting better every year and we are aggressively managing our liabilities and obligations” (very much awhat the ECB’s Mario Draghi tells the world when he gives the periodic monthly update of European capital markets during the central bank’s press conference). It is ironic because last week, Moody’s downgraded Chicago from Aa3 to A3 in an unprecedented three notch cut in the city’s bond rating, citing Chicago’s “very large and growing” pension liabilities, “significant” debt service payments, “unrelenting public safety demands” and historic reluctance to raise local taxes that has continued under Emanuel.

Moody’s noted that the city’s total fund balance at the close of 2012 was $231.3 million and that Chicago has just $625 million in “leased asset reserves.” Had the city fully funded its $1.5 billion “actuarially required contribution” to its four under-funded city employee pension funds in 2012 alone, “these two reserves would have been entirely depleted,” Moody’s said.

The “unassigned” balance is $33.4 million. Experts recommend a cash cushion of at least $200 million for a budget the size of Chicago’s, according to the Civic Federation. The city ended 2009 with an unallocated checkbook balance of just $2.7 million. […]

READ @ http://www.zerohedge.com/news/2013-07-28/chicago-next-windy-city-cash-balance-plum

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* BANKS VERSUS THE PEOPLE: THE UNDERSIDE OF A RIGGED GAME! (PART 1)

By Eric Toussaint, CADTM, London Progressive Journal

Translation: “Snake” Arbusto

Since 2007-2008, the major central banks (the ECB, Bank of England, the “Fed” in the USA, and the Swiss National Bank) have been making it their absolute priority to attempt to avoid a collapse of the private banking system. Contrary to what has been said more or less everywhere, the principal risk threatening the banks is not that a government will suspend payment of sovereign debt |1|.

None of the bank failures since 2007 have been caused by that kind of payment default. None of the bank bailouts organized by the various governments has been made necessary by suspension of payment by an over-indebted State. What has threatened the banks since 2007 is the structured private-debt holdings they have gradually built up since the major deregulations, which began in the late 1970s and culminated during the 1990s. The balance sheets of private banks are still packed with bad assets |2] which range from completely toxic assets – veritable time bombs – to non-liquid assets (meaning they cannot be sold or shifted on financial markets), and include assets of which the value is completely over-estimated in the banks’ balance sheets. The sales and depreciations of assets banks have booked until now in order to reduce the weight of these explosive assets have been insufficient. A significant number of them depend on short-term financing (either provided or guaranteed by the Public Authorities with taxpayers’ money) to stay afloat |3] and handle debts that are themselves short-term. That explains why the Franco-Belgian bank Dexia, which in fact amounts to a very large hedge fund, has been on the brink of bankruptcy three times in four years – in October 2008, in October 2011 |4|, and again in October 2012. During the most recent episode, in early November 2012, the French and Belgian governments provided aid amounting to 5.5 billion euros (53% of which was borne by Belgium) to recapitalize Dexia SA, a moribund financial company whose equity has melted away.

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READ @ http://londonprogressivejournal.com/article/view/1559/banks-versus-the-people-the-underside-of-a-rigged-game-

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* PLUTOCRACY AND CORRUPTION: HARMING THE AVERAGE U.S. CITIZEN

By Margaret Elkis, EconomyInCrisis

In today’s society, plutocracy and political corruption go hand in hand, especially in Washington.

Simply put, plutocracy is a government ruled controlled by wealthy individuals. It is no secret that wealth buys power, and that is exactly what we are seeing today. Unfortunately, with wealth and power often comes corruption. Author J.R. Martin stated in chapter nine of his book, Selling U.S. Out, that political scandal and corruption are not new. They have always existed. Indeed, all one has to do is read the news to learn of the corruption and greed taking place between the big players of our government:

  • political parties: Republicans and Democrats
  • lobbyists and overpaid consultants
  • the mainstream media

Over the past forty years, power, money and greed have corrupted our elected government officials at every level. What’s most alarming is that the blatant corruption has been tolerated and accepted by the American people. Unfortunately, members of both parties act as if their jobs are nothing more than a big political game. They’re so focused on insulting the other side and getting their own agendas passed that they forget they’re supposed to be working for the U.S. public.

As J.R. Martin writes:

“Neither party represents the interests of the American people since both are controlled by foreign and domestic corporations and special interest groups that provide the majority of their funding…both parties practice dishonest, divisive politics aimed at dividing and manipulating public opinion instead of seeking to build an honest national consensus on important issues confronting our nation.” […]

READ @ http://economyincrisis.org/content/plutocracy-corruption-harming-the-average-u-s-citizen

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* 44 FACTS ABOUT THE DEATH OF THE MIDDLE CLASS THAT OBAMA SHOULD KNOW

By Michael Snyder, The Economic Collapse blog

As Obama parades around middle-America, promoting hope-and-change amid a “Better-Bargain for the middle-class,” it seemed only appropriate to lay out a few ‘facts’ before his next pronouncement …

What is America going to look like when the middle class is dead?  Once upon a time, the United States has the largest and most vibrant middle class in the history of the world.  When I was growing up, it seemed like almost everyone was “middle class” and it was very rare to hear of someone that was out of work.  Of course life wasn’t perfect, but most families owned a home, most families had more than one vehicle, and most families could afford nice vacations and save for retirement at the same time.  Sadly, things have dramatically changed in America since that time.

There just aren’t as many “middle class jobs” as there used to be.  In fact, just six years ago there were about six million more full-time jobs in our economy than there are right now.  Those jobs are being replaced by part-time jobs and temp jobs.  The number one employer in America today is Wal-Mart and the number two employer in America today is a temp agency (Kelly Services).  But you can’t support a family on those kinds of jobs.  We live at a time when incomes are going down but the cost of living just keeps going up.

As a result, the middle class in America is being absolutely shredded and the ranks of the poor are steadily growing.  The following are 44 facts about the death of the middle class that every American should know…

1. According to one recent survey, “four out of five U.S. adults struggle with joblessness, near poverty or reliance on welfare for at least parts of their lives”.

2. The growth rate of real disposable personal income is the lowest that it has been in decades.

3. Median household income (adjusted for inflation) has fallen by 7.8 percent since the year 2000.

4. According to the U.S. Census Bureau, the middle class is taking home a smaller share of the overall income pie than has ever been recorded before.

5. The home ownership rate in the United States is the lowest that it has been in 18 years.

6. It is more expensive to rent a home in America than ever before.  In fact, median asking rent for vacant rental units just hit a brand new all-time record high.

7. According to one recent survey, 76 percent of all Americans are living paycheck to paycheck.

8. The U.S. economy actually lost 240,000 full-time jobs last month, and the number of full-time workers in the United States is now about 6 million below the old record that was set back in 2007.

9. The largest employer in the United States right now is Wal-Mart.  The second largest employer in the United States right now is a temp agency (Kelly Services).

10. One out of every ten jobs in the United States is now filled through a temp agency.

11. According to the Social Security Administration, 40 percent of all workers in the United States make less than $20,000 a year. […]

READ @ http://www.zerohedge.com/news/2013-07-31/44-facts-about-death-middle-class-obama-should-know-about