If You Are Profiting from Wall Street's Current Merger Boom, Then the US Government Works for You

The Democrats claim to be the party of the poor, but if you have been following my blog you know that is pap.  Since November 2008 the economy has done poorly for the average American.  According to the Bureau of Labor Statistics, unemployment is 9.6 percent. Americans on Social Security saw no increase but local taxes increased, leaving them short.  Inflation, at 1.1 percent, has been modest, but people are beginning to suspect inaccuracies in the BLS numbers.  I hear complaints about food prices' going up.  In any case, there is no reason to think that anything will reduce the unemployment rate in the near future.

Thus, the stimulus and the bailout have failed to produce significant results.  This is not surprising. Keynesian policies failed during the Great Depression as well.  Pundits assert that as a result of the recent failure of the Bush-Obama policies (failure on paper, not in their intent, which is to help Wall Street, not to reduce unemployment), Larry Summers and Rahm Emanuel have handed in their resignations.

One of the Bush-Obama strategies has been to massively expand the monetary base and the money supply.   The argument for this policy is monetarist, and the monetarists don't differ much from Keynesians. Both believe that printing money can beneficially stabilize the economy.  Neither accedes that the new money is a wealth transfer device to Wall Street.

Forbes reports that the wealthiest Americans have gotten wealthier this year.  The wealthiest among them are Warren Buffett and Bill Gates, both of whom are Democrats.  According to the Los Angeles Times mergers and acquisitions are at an all time high.  A guest on Bloomberg radio today was saying that Wall Street has never had a better year.  Although this is never stated in the Wall Street-controlled media, Wall Street's economic flourishing depends entirely on the Federal Reserve Bank. It is not attributable to free markets and it is not capitalist.

The Wall Street investment banks and law firms are profiting handsomely due to the Fed's monetary creation and the Bush-Obama administration. The merger activity is directly due to the administration's new money.  It has had no hand in reducing unemployment, in improving the economy or making the public better off.  Rather, it serves to harm the economy by reducing competition and paying commissions to bankers and Wall Street lawyers for destroying rather than creating wealth.

If you have seen a commission check or have a salary that depends on the recent expansion of merger activity, the US government is working for you.  If not, you are its patsy.