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Govt Ponzi Scheme Threatens US Multi-Nationals

By Monday, 18 July 2011 08:07 AM Current | Bio | Archive

The standards we use to measure the health of the stock and bond market — the Dow or the S&P 500 for example — are effectively dependent on the value of “American" multi-national corporations. The attacks on them by our cadre of professional political opportunist and populists are creating an enormous investment risk, seemingly yet "unpriced," which threatens the value of all our investments in the public marketplace.

To hear the politicians and their television and newspaper proxies tell the story, it would seem the multi-nationals are the evil creatures which are destroying the U.S. economy with their obscene pursuit of profits and shareholder value.

Listening to them, you would think that the corporations are creating the recession, or possibly depression, instead of the government's Ponzi scheme, which goes under the guise of spending and borrowing to enable the government to do more spending and borrowing.

It's a Ponzi scheme that is running out of sucker investors and is now collapsing.

Like all crooks who are about to get completely exposed, the government and all the parasitic conspirators who have made millions supporting the scam all these years are desperately trying to get the voting public to blame the evil multi-national companies instead of where the blame really belongs.

The fact is that the United States government has become essentially a huge criminal enterprise. Congress and the administration are hell bent on surviving — that is, getting voted back into office — even thought it means crippling or, more likely, destroying the free-market capitalist economy, which is the basis for maintaining our ability to retain individual liberty.

The importance to you in realizing this is that your personal wealth and everyone else who has investment portfolios is at risk. Those multi-nationals are really just us. We like public companies to make profits and be financially successful. We are the shareholders and the beneficiaries of these investments.

Attacking corporations because they don't pay enough tax is part of the scheme to divert attention. The fact is that corporations don't really pay tax. Oh, yes, they may write a check to the Treasury. But this isn’t their tax, it is our tax. It is a tax on us as consumers of the products and services. Corporations and others not only need earnings per share, but to survive, we all need earnings per share after tax.

One of the rackets politicians engage in, that is all the politicians since 1913, is to use big corporations as the scapegoats for failed governmental policy. No politician or regulator really wants the public to know how much tax the consumers are really paying or what the government is really spending.

This business of politicians saying that they are going to balance the budget and help the little guy by taxing multi-national corporations is nothing more than another ongoing fraud. That is, fraud in the criminal sense.

What about the mantra that the multi-nationals are intentionally shipping jobs overseas — that they should be forced to employ people in the United States and not overseas. After all, they have a duty to the country.

This is more of the same fraud. The politicians feed everyone with this line of baloney and then expect you, whose investments are now put at risk, to do two things. They want you to not only vote for them since they will save the country from the evilness of these corporations, but also want campaign contributions to get more votes to keep them in power.

It's all just propaganda. Globalization is, as one commentator observed, a tremendous boon for the biggest names in corporate America, their stockholding investors, and even some of the people who work for these companies. Without the foreign profits many companies would have substantially less or no profits — and no shareholder value — at all.

These companies have diversified their earnings ability by entering the emerging markets, which enable them to make significant markets and reduce their exposure to the weaknesses of the American economy. A particular weakness being the Washington, D.C., establishment politicians and a long string of failed presidencies. The current president and his administration is, however, in a league of their own in that regard.

The biggest threat to our investment in the shares or bonds of the multi-nationals isn’t their global competition, but our own government.

Let's take the current crisis of the debt. What part of the definition of "ceiling" in the debt ceiling don't they understand?

And like any Ponzi scheme, the "raising of the ceiling" is based on one assumption which always proves to be untrue. In this scenario it is that there will be some countries to buy the new trillions of dollars of debt.

Just who will those buyers be under the current global circumstances and the environment in the United States? Or will the Federal Reserve and the Treasury just counterfeit t more paper which they then exchange?

It all just boggles the mind.

The politics in Washington, D.C., and in some states as well, is bringing the U.S. economy to its knees, if not destruction.

The bogus attack on our multi-nationals is a real threat and danger to our collective and individual financial survival.

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The standards we use to measure the health of the stock and bond market the Dow or the S P 500 for example are effectively dependent on the value of American multi-national corporations.The attacks on them by our cadre of professional political opportunist and...
Monday, 18 July 2011 08:07 AM
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