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Raymond J. Learsy

Raymond J. Learsy

Posted: August 8, 2010 08:58 PM

Over the last decade this nation has experienced a massive loss of productive and high value jobs in manufacturing, trade, and the professions sending many overseas and having many destroyed through the egregious misdirection of the self serving priorities of our financial institutions encumbering viable companies making real goods and services with untenable debt. Leveraging their assets in order to maximize profits for the financial engineers before flipping the company or taking it to market as an IPO. Too often the workers who made the company are left with little or nothing while the Wall Street "whiz kids" march off with a bundle having destroyed the vision, imagination and the hard work that went into creating these companies, to their benefit and to the detriment of its workers and society at large.


'Disproportionate' is the freighted word that shackles our society. Over the past few years some two-thirds of the gain in national income has gone to the top one percent of Americans. Mostly those in the financial industry harbored in such government protected entities as 'bank holding companies', part of something that has come to be ominously called the "shadow banking system". They bring virtually nothing viable to the economic landscape other than egregious speculation gorging on complex derivatives enriching the financial players, while through their malign impact, impoverishing great swaths of the American and world economy (i.e. betting on the collapse of the housing market). When these bets go dramatically wrong also collapsing the institutions that took the long side of the bets, they are then bailed out by the government making good the value of these 'bet' instruments whose function had no greater economic justification than a compulsive gambler's casino bets. And the grim irony, when the red comes up instead of black it's the local inhabitants of the casino's venue who are asked to pay to keep the casino afloat, while the casino lets the gambler keep his chips.


And the local inhabitants pay dearly. Their services are curtailed, their stores are forced to close, their local banks are driven to the edge, the value of their houses plummet or are repossessed. Not having insider status their financial assets deteriorate dramatically and even in desperation had they wanted to get back into the casino to try their own luck given their new world being bereft of all other opportunity, the house wont extend them credit. Its just as well, because they wouldn't have to see our compulsive gambler swilling Dom Perignon and downing a small mountain of Pate de Foie Gras after having feasted on Beluga Caviar at the casino's resplendent restaurant.


The gambler is there, and he or his proxy will always be there. And the town and its inhabitants, tattered and poorer are still there trying to make do as best they can and trying to contain their simmering anger at the unfairness of it all, not quite knowing what to do. Some joining in the regional meanderings of the Tea Party, or some equivalent movement that promises to address the clear wrongs that are being inflicted and tolerated by those in charge.


When all is said and done it becomes clear that it is the Casino that needs fixing because it is the Casino that the set the rules, it is the Casino that has permitted the outrages that have resulted in the destabilizing of the norm and sanctioning the unexpected and unfair.


Now with a small leap of imagination lets transpose our government for the nefarious Casino. Clearly it needs a new management or a new way of managing. What has come before is not functioning and major changes are needed. The local inhabitants need a voice in running the Casino, which in a sense has been denied them because they are unable to foot either the entry tab, or the needed cash to play at the tables. And that is what it has come to be, without access and without money no one at the Casino pays attention.


And that must now change for the inhabitants to ever again have a chance to rectify the wrongs imposed by the Casino's management and to fairly share in an equitable distribution of benefits should they accrue ahead.


As here, today too much of our political system is bought and paid for. Too much of our political system is self serving, responsive to the wings of our two parties and indifferent to the day to day concerns of middle Americans in spite of the incessant lip service extended to them. Yes, there is limp Wall Street reform, but no clawback of the exigencies that drove the nation to the brink. Yes there is a stimulus program, but faltering shamelesly through lack of clear direction. Yes, there is an alternative energy program without clear mandates nor meaningful results as the transfer of billions to the oil providers continues unabated. Yes, there are our soldiers dying in fragmented nation states far away without a modicum of sacrifice being asked of the home front. Yes, there are moneyed interests both domestic and foreign who have access to those who govern, without limitation and a shameless Congress ready to do their bidding in spite of the promises made in Presidential campaigns to curtail their influence. Yes we have courts of law who, through judicial minutiae rather than pragmatic sense of national welfare have given these moneyed interests even greater influence by striking down financial restraints on the powerfully funded in election laws, that make the middle class even more disenfranchised. Yes, there is talk of restraining government spending while special interests with access to government and its earmarks are encumbering the nation into ever greater indebtedness. Yes, while Main Street and middle class Americans continue to lose jobs, the pay checks on Wall Street and corporate boardrooms continue in their unabated and inflated manner while middle class Americans are absorbing pay cuts or shortened work weeks if they have any jobs at all, while teachers, the backbone of the nations future, police and firemen are losing their employment.


And so it goes, leaving the nation with a Frankenstein system whose core objective of governance has become self preservation of power and personal influence. This, while governing for the greater good of the nation has become a secondary and distant gerrymandered priority leaving the great body of the American electorate virtually without meaningful representation and forestalling and diminishing America's middle class' engagement with its government with every passing day.


And yet something is stirring. People throughout the land understand that the political system is broken, and Americans throughout the length and breadth of the country, that their government no longer speaks for them no matter which party happens to be in power. They feel the system is gamed from within, for and about those who have access and the money to follow through to assure their parochial interests are taken into account and acted upon. How those interests impact the greater good has become dangerously secondary. Checks and balances seem to have gone by the board long ago.


Grass roots movements are beginning to stubbornly emerge from the depths of these frustrations of which I have touched on only a few, as the list could go on almost endlessly. Yes, there are the Tea Parties, and they should be listened to in order to begin to understand how people feel. But out there something much more significant is beginning to take hold. A movement new to many, headed by people of impeccable credentials who are devising a program using the new age technology to bring all Americans back into the political process in a meaningful way and most importantly in a way that each American can once again feel that he/she as a citizen has the stature and sense of prideful responsibility that his vote was meant to convey unto him as a meaningful participant in the process of nationhood.

The new organization is called "Americans Elect". I don't want to steal its thunder because it can much better directly convey its goals and points of engagement. It has the potential of becoming the salutary wave of America's political future. Their contact information is given as Kahlil.Byrd@AmericansElect.org.

 
 
 
Over the last decade this nation has experienced a massive loss of productive and high value jobs in manufacturing, trade, and the professions sending many overseas and having many destroyed through t...
Over the last decade this nation has experienced a massive loss of productive and high value jobs in manufacturing, trade, and the professions sending many overseas and having many destroyed through t...
 
 
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HUFFPOST SUPER USER
Theo
01:11 PM on 08/25/2010
"Americans Elect" looks like a scam site, no real details, just "more coming soon" and a slot for your email address.

Even if Americans Elect is well intentioned this line proves how ineffectual they will be:

"nominate a balanced Presidential ticket that will bridge the vital center of American public opinion"

What "vital center" would that be?

A "center" between those who believe the scientists who warn us of the potentially catastrophic impact of Global Warming and those who believe talk of Global Warming is a Liberal conspiracy to bring down modern America. Perhaps it's a "center" between those who believe Obama is an American Citizen who was democratically elected President and those who believe he is an islamist/socialist/fascist/communist dictator.

Sorry Friend, but your little "grass roots movement" reeks of the same obsession with the Fallacy of the Golden Mean which has made our current ruling elite so useless.
02:22 PM on 08/14/2010
The process we are seeing now is:

Trade deficit increasing --> Unemployment increasing --> Lower wages -->Not any recovery in consumption expected --> less tax collection--> High indebtness of government, companies and families --> lower expectations of all the economic agents ---> less investment (public and private) ---->less industrial production ----> Trade deficit increasing

The same process have been hapenning from more than 15 years ago, but to avoid the recession, the economy was based in a long succession of bubbles (mergers, dotcom, raw mats, real state...) and in the cheap credit (due to low interest rates), and the industrial outsourcing were growing exponencially, all in a unsustainable way.

Now the fiduciary money and their bubbles is gone, and we need a REAL economy based on the production of REAL products, not merely smoke

The administration needs to start to think on protectionist measures to reverse the outsourcing trend as the only way to save the middle class
02:19 PM on 08/14/2010
Here are some data from the Washington post about the lost of manufacturing jobs in USA:

"Since the Great Recession began in December 2007, America has lost 16 percent of its manufacturing payroll jobs. While there has been a slight uptick in manufacturing jobs in the last seven months, only 11.7 million Americans work in this sector, down from 17.3 million 10 years ago"

And it is false it is due to the increase in productivity, at the same time China has created tens of millions of jobs

That means almost HALF of the jobs in the manufacturing sector have been lost in ONLY 10 years, the process start to accelerate more and more when our dear Mr. Bush brings China to the WTO in 2001 and remove all the tariffs to their products, good job George!, the richests love you!
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HUFFPOST SUPER USER
Habman
10:18 AM on 08/11/2010
Awesome piece.

Just hope people will take this to heart and start holding the politicians feet to the fire and get past the illusion that the parties are in the least bit different.
01:04 PM on 08/12/2010
Obama and the dems are Infinity better that more GOP McCain Palin.

Don't let the fact that Obama's admin is relatively conservative, compared to what Americans wanted.

Vote Liberal in the Primaries and VOTE democrat in the elections.

VOTE

Don't let the "it's all the same" folks bs you.
11:24 AM on 08/10/2010
It's not a "Metaphor" The decline of the middle class, IS the decline of America.

Conservatism's goal is to bankrupt the republic till the multinationals can buy it, while conserving serfdom for the former citizens.
nothingchanges
too soon old, too late smart
07:51 AM on 08/10/2010
If you go in for a routine physical. The one thing most people fear to hear from their physician, more than any thing else is the proclamation...............I'm sorry, your lab tests just came back, and they are positive, you have cancer.

American has a cancer that is killing it. It's called greed. I wonder if the patient will survive long enough for someone to find a cure. Personally I'm inclined to doubt it.
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HUFFPOST SUPER USER
CosmicIrony
09:34 PM on 08/12/2010
Greed is certainly part of the problem, but the eagerness of the electorate to vote for candidates that transparently lie to them compounds the effects of greed by channeling public resources into private pockets. The deficits will ultimately bring the country down, and all the money extracted from the public will support the wealthy in great style in their offshore havens.

I rather expect businesspeople to be greedy in some sense, but I hoped that the general public would act as a check on their excesses. The anti-government sentiment has allowed the rich to pilfer the pockets of the middle class with impunity.
HUFFPOST SUPER USER
zell
01:43 AM on 08/10/2010
Thank you, Mr. Learsy, for sharing the name of the group, America's Elect, with us.........We, the People, need an alternative political party...........I have a feeling that this one may grow by leaps and bounds..........
01:26 AM on 08/10/2010
we’re gonna might need bullets should we get stuck
any which way, we’re gonna need a little luck

you can still get gas in heaven and drink in kingdom come….

In the meantime, I’m cleaning my gun

-Mark Knopfler
HUFFPOST SUPER USER
emh
12:32 AM on 08/10/2010
i believe it to be true from experience, but i would really like to have a reference for the 2/3's to the 1% statistic. does anyone out there have a link to a credible source for this information? i'd like to share it with my classes (and a few relatives who either seem to be in that 1% or don't believe that a massive redistribution of wealth - to the ridiculously wealthy - is already taking place in this country).
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HUFFPOST SUPER USER
MikeWebster
Always happy.
12:16 AM on 08/10/2010
The American Government has been legislating for corporations against the people for a long time now. The idea of trickle down economics has been used to take money from the less wealthy and re-distribute it up to the super rich - who then send it overseas. The idea of Government regulation as an infringement of individual liberty and the free market has been sold to the people by the Corporations and their paid politicians and News agencies.

No country can maintain a good economy and standard of living if they are not producing anything. The inevitable result of the speculation of the finance sector is the destruction of worthy productive enterprise. The inevitable result of trading intangible financial products to produce super wealth, is the kind of economic collapses seen recently and in previous global depressions.

Regulation is not there to curtail people's freedom of action, except where those actions impinge on others freedom. In this case, regulation is much like the criminal law, except applied to much richer criminals.

In earlier generations, a strong ethical responsibility to one's neighbours and peers would have allowed self regulation to work much better. Now we have a completely individualistic self-centredness that pervade's media and corrupt corporation funded politicians. All of this needs to be addressed if a functioning democracy is to be returned to the US.
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HUFFPOST SUPER USER
Habman
09:55 AM on 08/10/2010
Take a look at what regulation has done in the Gulf Oil Spill, then explain to me how it helps anyone.
We have the government saying that everything is good and it's all cleaned up, so no need to worry, and grossly under estimating the amount of oil release because they are using data supplied by BP for craps sake!!! So much for effective regulation.

The government is in on the fix, so governmental regulation is just one more case of putting the foxes in charge of the hen house. What we actually have is corporate interests and the interests of the elite placed above the interests of the people. So allowing them more power to regulate is not at all the answer. Cleaning out the cesspool our government swims in is the only answer. And to do that people have to understand that both parties are in on this, and that there is no difference between them.

Until the people wake up to this, we have no chance to move forward.

And I doubt that most of you really want democracy, as it is mob rule that allows one group to enslave any other group with enough votes, so let's get back to our constitutionally limited republic.
11:20 AM on 08/10/2010
you wouldn't know a democracy if you were born in one.

Both modern and ancient republics vary widely in their ideology and composition. The most common definition of a republic is a state without a monarch.[5] In republics such as the United States and France, the executive is legitimized both by a constitution and by popular suffrage. In the United States, James Madison defined republic in terms of representative democracy as opposed to direct democracy[6], and this usage is still employed by many viewing themselves as "republicans".[7] In modern political science, republicanism refers to a specific ideology that is based on civic virtue and is considered distinct from ideologies such as liberalism.[8]

http://en.wikipedia.org/wiki/Republic
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HUFFPOST SUPER USER
MikeWebster
Always happy.
09:07 PM on 08/10/2010
I agree with most of what you say. On the other hand, the failure to regulate in the gulf occurred before the oil spill. Afterwards it was just a disaster that pretty much noone knew how to deal with.

I agree that the Government is corrupted by corporate donations and lobbyists. On the other hand, the corporations are lobbying for less regulation not more.

The Government needs to regulate more in such a way that relatively independant bodies actually implement the regulation.

A second issue is that the major influence of commercial interests on Government through donations (bribery) and lobbying should be removed.

There is still a difference between the parties in that the Republicans have dropped even any pretense at trying to fix problems with the system. They were just doing the bidding of medical insurance and big Pharmaceuticals in trying to destroy any possibility to provide Americans with affordable top standard health care. They are doing the bidding of big oil when they stymie efforts to prevent the biggest disaster the world has ever faced in climate change. They have acted to prevent re-regulation of the financial industry that is so obviously needed after the GFC.

Certainly some Democrats are equally corrupt - but as a party they are not so completely amoral yet.
10:00 PM on 08/09/2010
The accounting profession should reclassify labor as an asset and not an expense. Then, when corporations lay people off they are not cutting expenses, which temporarily improves their financial outlook ("temporary" because you cannot downsize your way to growth,) but they are losing assets, which makes their balance sheet look worse.

The only financial instruments that should be allowed are ones that create wealth, and not those that merely make money. For example, short selling should be outlawed. Betting on failure leads to questionable descision making and destroys wealth. If a company is going to fail, let it, but no one should be motivated to help by profiting from it.

Reduce employment in and size of financial industry, which creates nothing and makes money by its participants serving each other cups of coffee.

Industries in America that physically make things should get highly preferential tax treatment over service industries that create nothing.
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HUFFPOST SUPER USER
Timma
nihil habentes omnia posidentes
09:45 PM on 08/09/2010
Back in the 1970's I worked for an oil field service products group. What once was a relatively robust manufacturing base of operations in the US did fine until a new wave of upper management began to take over and to invest increasingly in insurance and banking. Today this former Fortune 500 company ceases to exist. Learsy is absolutely correct - Predatory practices of casino sytle betting, self serving priorities, leveraging assets, maximizing profits by shipping jobs overseas, and devaluing the American labor force - in short a ruthless strategy of take no prisoners is what this class of financial wizards learned in business school. There is no sense of shame in this country - we've learned to equate wealth accumulation with success and intelligence. We point the finger at gays, debate legalizing pot, and wrangle over a woman's right to decide for herself what she wishes to do with her own body, as the causes of societal rot. Time to drain the swamp.
09:23 PM on 08/09/2010
The Roman Empire fell because it was bankrupted by its leaders; well, look at the red ink now! Budget deficits, trade deficits, a huge national debt that tripled when George W Bush took power and has now grown even faster under Obama. At least the deficits Obama is running now might prevent further economic catastrophe--if the bailout funds aren't all stolen by the high-fliers, and if the bloated financial system is radically reformed. What are the chances?

Does anyone remember when we were actually paying down the debt?

Romans, and now Americans, have had the misfortune of being ruled by a Selfish Class. Rome fell because of it. Will America replay the Fall of Rome?

http://americandaily.com/index.php/article/4228
HUFFPOST SUPER USER
Theo
01:32 PM on 08/25/2010
Yes, we will fall, and unless corrective actions are taken in the next few years that fall will be hard and violent. Just imagine a mob scene like we saw in Atlanta exploding into a full blown riot. Local cops start shooting people like we now know they did in N.O. following Katrina. Violence escalates, the riot expands, the city burns, and eventually the Governor calls in the National Guard. Assuming the Guard can handle it, and isn't to depleted from years of support foreign military adventures, the city is effectively placed under Martial law for days or weeks at a time.

Wash, rinse, repeat for most major cities in US. All in the next 10 years or so would be my guess, watch for the next financial crisis to push the economy into a depression and set it off.
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Hiphopcrates
Kicking the money lenders out of the Temple
08:46 PM on 08/09/2010
Doesn't the phrase "Greed, predatory finance, robber-baron capitalism, and corrupt politicians" cover it?
08:42 PM on 08/09/2010
Until you repeal NAFTA your pissing up a rope.
HUFFPOST SUPER USER
Theo
01:17 PM on 08/25/2010
some how I don't think repealing NAFTA is the "balanced" approach to finding "the vital center of American politics" which is what Americans Elect seems to be about. As I recall NAFTA was justified and pushed by exactly those kind of mealy mouthed "Centrist" sentiments.