GOP Is Wrecking Your Retirement Savings

The rich get richer, and the poor will never be able to retire.

The #GOPTaxScam was the straw that broke the markets’ back. Here’s why and how.

First, America is hugely in debt (known as “overleveraged” in econ wonkspeak).

There’s over $1.4 trillion in student debt, a number never, ever before seen in the US, and nonexistent in the rest of the world because we’re the only developed country in the world that makes students pay so much for college that they can’t attend without taking out loans.

Consumer credit card debt is over $1 trillion (the highest in history), because people have been using household debt (including low-interest of mortgages and car loans for a total of $13 trillion, a record) to maintain what was once a middle-class lifestyle, once easy with a union job.

This trend has been going on ever since Reagan declared war on working people in 1981 and began the process of destroying good union jobs.

As a result, wages have been flat or declining for over 30 years. Corporations, feeding off artificially low interest rates provided by the Fed, are also massively in debt. In fact, one of the most common hustles running over the past 7 years has been to borrow billions at less than 1% interest rate and “invest” that borrowed money in the stock market that’s been giving much higher returns than bonds.

All of these mini-economies (markets) are based on cheap and easy credit that was largely produced by the Fed pouring money into the economy by buying up trillions' worth of US government bonds (debt) and filling the market with low-interest cash.

Because of the repeal of Glass-Steagall, and thus the deregulation of banks and investment houses, banks have actually bought or become investment houses (gamblers; for example, Bank of America now owns Merrill Lynch).

They’re even now making and selling derivatives based on student loans, car loans, and credit card debt, just like they were with mortgages in 2007 (and they’re securitizing mortgages again, too).

Like the GOP deregulation of the “roaring 20s” led to the Republican Great Depression in 1929, this puts the entire economy at risk.

Read more here.

Comments

Riverplunge's picture
Riverplunge 1 year 40 weeks ago
#1

So when the Democrats win the house, or senate, the trap will be complete!

Or, if the Republicans win they will continue their folly all the way to this country's grave.

Kend's picture
Kend 1 year 40 weeks ago
#2

Where do I start. Student debt isn't only a US problem. Canada has the same problem. What scares me is how many students go into debt and don't graduate. Depending on which study around 40%. Consumer credit debt is because most Americans do not live within their means. They have to have the best of everything instead of buying only what they need. Why is it that Trump goes into debt a trillion but the trillions Obama spent was just fine. That is like saying I am hungover because of the 12th beer I had not the first 11.

2950-10K's picture
2950-10K 1 year 40 weeks ago
#3

I always refer to stats on the current extreme concentration of wealth when thinking about the inevitable economic collapse coming. As Richard Wolff stated today.. the perfect storm of greedy circumstances is brewing up a giant crash.

In my opinion, because of the inept individuals in power right now, we're loooking at 1929 again. The stock market is fools gold and it looks like consumer credit is pretty much tapped out.

A forced Fed reaction to the 2008 drill has set us up for the big quake. This is what happens when we let the rich and powerful control our government...it's called Fascism.

2950-10K's picture
2950-10K 1 year 40 weeks ago
#4

Where do I start with you Kend? Are you aware that the President alone has no authority to just spend trillions? Do you know the basics about how government works? Obama certainly didn't sign legislation handing a couple trillion to a few billionaires. Maybe the billionaires should try living within their means of self control Kend.

Legend 1 year 40 weeks ago
#5

Kend just posts factless opinion that he gets from Fox News. The same as all of the right wing trolls.

Dianereynolds's picture
Dianereynolds 1 year 40 weeks ago
#6

Nice post Kend and right on the money. Leftie/socialists never want to talk about the over paid college professors ( Elizabeth Warren was paid $429,981 as a Harvard law professor from 2010 to 2011), or the tenured highly paid professors who never personally teach a class but instead have a staff of assistants who do their job for them. The athletic department whose football coach and his/her/alphabet's staff is usually paid millions, and the millions in benefits paid to the management and board of these precious institutions that lefties like to say "are serving the public good".

Wonderful side note that must have been "accidently" missed by Thom and his staffs daily scouring of Al Gores internet for good news to report on those evil corporations.

"Hourly workers at the General Motors Spring Hill Manufacturing Facility will receive bonus checks of $11,750, the automaker said Tuesday."

A great example of successful negotiations between unions and management. Hard work pays off. "UAW bonus checks, tax overhaul play role in growth"

I know it is just a "pittance" and "crumbs" to many of the elitist pricks in the democrat party but a few crumbs here and a few crumbs there and pretty soon you can bake a slice of bread.

Legend 1 year 40 weeks ago
#7

Easy to figure that one out Diane. In order for a top name University to attract top name staff it has to pay. You have to remember that top name lawyers with doctorates can make millions in the private sector. I agree that it seems like college coaches are drastically overpaid but College Football more than pays for itself. It supports many other sports and activities at a University. It is also highly competitive. If you do not make a bowl game you loose millions. If you do the payoff is around $54 million. It also provides scholarships to poverty youth. There are abuses and some do not graduate but it is a money machine in a free enterprise system. A few lucky ones continue on to the NFL and make millions which I am sure that you are against. You are obviously against free enterprise.

https://www.forbes.com/sites/kristidosh/2017/12/30/college-football-play...

Legend 1 year 40 weeks ago
#8

Just read part of your GM article which you obviously did not read. They have negotiated profit sharing in the pay base. The $11,750 was actually down from $12000 last year because profits were slightly down. It had nothing to do with the Republican tax cut giveaway to the 1%. Profit sharing is a great incentive and at least shows a resourceful company plan. If the company does not make a profit they get no bonus.

Dianereynolds's picture
Dianereynolds 1 year 40 weeks ago
#9

I am sorry but I have to, Rick Steve you have noe officially passed Thom Hartmann as the most negative person on the planet. What a pain in the ass employee you must have been.

I love your defense of the leftie/socialist bastions, the colleges and universities. You know the places where they forbid any conservative to speak. "In order for a top name University to attract top name staff it has to pay." I will come back and run that right up your ass the next time you ever squeal about executive pay.

I did read the article and that is why I posted it. I did give credit to the unions and management for negotiating together and I was aware the bonus was reduced because of the new tax law which permitted GM who actually made MORE money in 2017 vs. 2106 but took full advantage of the old tax laws and wrote off sale of a European subsidiary.

Now, go lash on a tin bill and pick shit with the chickens.

Coalage3 1 year 40 weeks ago
#11

I think you will have a very difficult time convincing most people that a 20% return on their 401K is wrecking the economy. But go ahead and try.

Where were you when the debt was exploding during the Obama terms? Its only when a republican is in the White House, and with the GOP controlling congress, that suddenly progressives seem concerned about the national debt.

HotCoffee's picture
HotCoffee 1 year 40 weeks ago
#12

As a citizen you must pay a federal income tax, and, in places like California, a state income tax. Then you must pay sales taxes on almost everything you buy. Then there is the property tax; even renters pay it, for it is included in their rent. This means that even if you have paid off your mortgage you do not really own your home, for, in effect, you are paying rent to local government (largely to support the ruin of your children in the indoc centers).

But then things really get interesting. Leftists call for high corporate taxes to “soak the rich.” But the CEOs and stockholders do not pay these taxes; they are passed on to you, the consumer, embedded in the price of whatever you buy. Take the example of the groceries you buy. You are paying the farmers’ corporate income taxes, and their property taxes, and the corporate and property taxes of the food processing companies, and the rail and trucking companies that ship the food to your area, and the corporate and property taxes of the supermarket.

Most people are completely unaware of all these hidden taxes, and very few are aware that the Federal Reserve, a consortium of private banks wedded in unholy matrimony with the government, creates fiat money out of thin air, causing a permanent inflation, the ultimate hidden tax. No one even knows how much all of this impacts us, but, by even the most conservative estimate, the average citizen is robbed of well over half of what would have been his purchasing power.

If you but anything on credit you then have a usary tax.

That doesn't even consider fines and fees.

To realize fully what the elites have done to us, consider what the world and America would probably be like if there had been no rigged wars and depressions, no IRS or Federal Reserve, no rule by judicial decree, no invasion by aliens. Imagine life with no IRS, and less government spending and lower taxes. Government could be funded by tariffs and a national income tax, and we could have a stable currency based on precious metals. Or we could even have the government, not a central bank, create fiat money, but do it openly and subject to strict limitations.

Absent high taxes and a regulatory burden, absent the debt and deficit spending, innovation would flourish and our economy would be strong and stable. But above all we would be free…free of the IRS, NSA spying, and the corrupt and murderous FBI and CIA. And this is without even considering the possibility that the elites may have suppressed technologies that would have given us unlimited energy and better health care.

2950-10K's picture
2950-10K 1 year 40 weeks ago
#14

Coalage 3: if you wanted a 20% gain you needed to cash out a month ago. Good luck now pal....after today, panic will begin setting in! The handful of financial institutions like Vanguard that control 70% of all stock manipulations are running out of time and crime strategies.

I guess you Kochbaggers were never instructed to bitch about the crushing national debt. Thats only a Dem thing, really?.....give me a freaking break. LMAO.

2950-10K's picture
2950-10K 1 year 40 weeks ago
#15

Reynolds..it's way too late to defend out of control greed anymore, turn off the propaganda and wake up! It's going to take a lot more than over politicized crumb tossing. This country is in deep sht.

2950-10K's picture
2950-10K 1 year 40 weeks ago
#16

Coffee: Nobody would complain about all those taxes if we got the same benefits Democratic Socialist countries give back to citizens for the same tax rates.,,but we have war for profit sucking up the commons. Maybe a parade will make it all worth while.

Legend 1 year 40 weeks ago
#17

#6 Diane, Why are you so suddenly concerned about Elizabeth Warren ( i am amazed that you did not use an immature Pocahontas slur) income. You are the one that criticizes me for being concerned ablaut what CEO's make. And being concerned about what college coaches make really buts you at the top of hypocrisy. Actually you are concerned about what a Democrat makes but could give a rats ass about what a Republican makes.

Maybe you should look at Mitch McConells net worth https://www.opensecrets.org/personal-finances/net-worth?cid=N00003389

Or look at Paul Ryans net worth which is not nearly as spectacular but has dramatically changed since he became speaker of the house. https://www.opensecrets.org/personal-finances/net-worth?cid=N00004357

By the way, in post #13 CVS will be taking at least some of its employees off of welfare and SNAP by raising there pay.

Are you going to the military parade? To watch the troops admire our strong POTUS?

HotCoffee's picture
HotCoffee 1 year 40 weeks ago
#18

Off topic but not well known

https://fredoneverything.org/ready-mexico-as-it-is-and-wasnt-some-stuff-...

His spelling is a little off as he's losing his eyesight. He's a vet, an ex. cop...married to a Mexican woman living in Mexico.

jefflisse's picture
jefflisse 1 year 40 weeks ago
#19

A little off topic... But ties in to discussion.

Here in Janesville WI. The birth place and home of ( the Ayn Rand brain child) Paul Ryan. We have a YMCA. As you're all probably aware.. The YMCA is a non-profit organization. And being so; is exempt from all state and federal taxes. Yet..
This "so called" non-profit (Christian) organisation has a CEO who's salary is 280,000 dollars a year. In fact: he's by far,the highest payed CEO of any non-profit organisation in Rock County, WI. In contrast: the CEO of the YMCA in neighboring Beloit, Wl. makes 100,000 a year. The vast majority of employees working there (the front desk, cleaning, daycare, lifeguards, etc..) make minimum wage, or just slightly over...

So.. In a 2000 hour a year job ( which he most certainly doesn't work) he makes 140.00 an hour. And they make about 7.25 an hour. WTF!!

Non-profit?!? Tax exempt?!? CHRISTIAN?!?
Just a little microcosm of our "rotten to the core"corrupt, unregulated, capitalist society...

Legend 1 year 40 weeks ago
#20

At the risk (hah hah) of Diane attacking me for being concerned about others salaries (abuse of):

https://www.google.com/search?source=hp&ei=M_R8Woy0DuL-jwSwtKiYDw&q=top+...

stopgap's picture
stopgap 1 year 40 weeks ago
#21

Oh! Mein Trumpsters! Mein Trumpsters!

The Stock Market is falling!!! The Stock Market is falling!! Quick!! Quick!! Jam your heads up Sean Hannity's ass!! Ah! That's better…I knew it! Its all Hillary's fault! Its all Obama's fault. Damned text messages!!! Damn emails!!! Damn terrible black president!!! Damn deep-state conspiracy!! Damn all those Democrat FBI Trump-hating traitors!! Damn Benghazi! Benghazi! Benghazi! Benghazi! Benghazi…..!

Bless you Mein Herr Trump. This stock market crash is just your way of proving that the Obama economy was just Fake News. It may hurt a bit, but it had to be done.

No doubt the big military parade will turn everything around. Only a stable genius like our Dear Leader Trump could have thought of saving the country with a big showing of military tanks carving up the streets of DC. Of course this will stimulate the economy by employing hordes of street maintenance repairpersons to return the streets back to serviceability. This could only be from the mind of a great stable genius like Herr Trump.

Coalage3 1 year 40 weeks ago
#22

And only a progressive idiot would claim that Trump wants to "turn everything around" with a parade. I must have missed that quote.

And by the way, the stock market hasn't crashed. But I appreciate your immature German references. The problem is you are applying them to the wrong political party....dummkopf.

Coalage3 1 year 40 weeks ago
#23

My 401K is still worth much more now than when Obama left office. I am still way ahead despite the drops in the last few weeks.

Where is that panic you are speaking about? Where is it? I watch the news just about every night and I have seen no reports of panic. Months ago I did see panic among left leaners as Trump continued to bamboozle them. Is that the panic you speak of?

stopgap's picture
stopgap 1 year 40 weeks ago
#24

Coalage, Calm yourself. You might want to look up the definition of the words satire and sarcasm.

So was your 401K and your property values worth more at the end of the Bush presidency or the end of the Obama presidency? Was the stock market higher at the end of the Clinton presidency or the Bush presidency? As Trump likes to say, "we'll see." But if history is any gauge, prepare for the worst!

Coalage3 1 year 39 weeks ago
#25

If history is any gauge, then the market will always come back. Not the worst. You need to reread your economics history.

Of course my 401K was worth at the end of each presidency because the stock market always goes up over time. If you hold stocks, then you will see a positive return over time despite the occasional hiccups and corrections.

Now, tell us...where is the panic you were talking about?

bretepete's picture
bretepete 1 year 38 weeks ago
#26

TO WHOM IT MAY CONCERN..

fredalanny@india.com

I was lucky to get a cure from ricksimpson.. i was dying..i had lung cancer and then i lost hope..... you know how that feels?..... terrible.but now i am alive,i can Breath and take control of my life becauseGod healed me and i

looked towards the right direction.. for anyone dying out there,you could get that same help.. dont give up... people who do you not know off know you, and you have you in mind... i was loosing my mind to a lot of things, my

ailment broke me down as if i was gonna die.. i made it.....

i got help from here:cannabismeds@outlook.com

just do the same,everyone... anyone reading this..... and thanks to everyone who made it through with me... i love you guys so much ....

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