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Blue Point Trading Market View – January 11, 2013

Blue Point Trading Market View – January 11, 2013

Wealth gap, biggest problem – says Davos 2013. Severe wealth gaps and unsustainable government finances were seen as the biggest economic threats facing the world, says the folks at the World Economic Forum in Davos, Switzerland. Other risks, dubbed “X-Factors,” from the brilliant men of Davos, include the rogue deployment of geo-engineering to counter climate change, or the discovery of alien life, which would challenge many assumptions underpinning religion. The Davos delegates must have thought that last one up in the bar – alien life?

As the chief executives arriving in beautiful Davos, nestled in the picturesque Swiss Alps, on their private jets – these prestigious business leaders and academics main fear to the global economy, is that politicians are failing to address fundamental problems. This is the conclusion of the group’s Global Risks 2013 report, which surveyed more than 1,000 experts and industry bosses. The report also found they were slightly more pessimistic about the outlook for the decade ahead than a year ago.

So, you see … these elites are not the problem, the government is the problem. In fact, you are the problem. After all, are you not part of the “we the people,” the ones that voted into power these politicians? Imagine political pandering to voters with expensive unsustainable government programmes, like wasteful pensions and health care – yes a real problem for these elites. But wait a minute, are not corporations already doing well? Are not the people already taking less? Yes, take a look at the thumbnail chart – this shows this very clearly. So the Davos solution to severe wealth gaps is even more severe wealth gaps – via austerity, to control government spending to the people?

The Davos people can see this wealth gap and it scares them. They know well that it is their schemes that is the cause of this gap. The list of their schemes is long: buying of politicians to get them special government contracts, tax breaks for the rich, tax havens, bank fraud (a week does not go by with out some story on this), undemocratic central bank policies that favor them, third world resource exploitation, war economy, crushing middle class pay to fund CEO salaries, market monopolistic manipulations, etc … Did you hear much talk at Davos on these subjects?

Yes, soon the people with “pitchforks” will be after them. So they have to pretend they care about this wealth gap – but of course, money is like a drug, they can not help themselves. This trend will continue until the crash – they know this – they have reason to fear. The problem is they themselves with the system they have created.

Daily Market View: (click here for the video)

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There are 7 comments .

Ron —

communism haha! how do they keep in power? because the people are bought off with money too. Everyday life is way better than the 80′s with material goods and technology and no more back breaking manufacturing jobs. The problem you see? The growing pie has mostly gone to the rich. But the better consumer goods keep the people happy.

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Ron —

Bork did it. He’s the most influential person on the planet. He said in 1960 “why do antitrust laws prohibit bigger business mergers if removing duplicated staff leads to lowers prices? There is no reason! Unless you like protecting inefficient small businesses!”

And thus antitrust law was changed by the Chicago School. And now we have hyper efficient huge businesses. And no we are not paying higher monopoly prices now.

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William Thompson

Ron, we are better off now than the 80s? Thats a joke right? Where the button to go back to the 80s? IS not Bork dead? But seriously:

Your assumptions are wrong. Large business are not necessarily more efficient. Its their size that can allow them dominate the market. I see many things that large businesses do, that I would be willing to do at half price. But the way the market is set up, it can not be done. Smaller businesses are alway more efficent and quicker. There is a bell curve however to get critical mass for a product for sure. But after that its market manipulation and using the stock as a banking vehicle.

Protect inefficient small businss? No just equal fair access to the market. Beside why not just get into slavery, its even more efficient. Ron recheck your value system and understand why we have a market. To enable the fair, free and equal access for every one to pursuit their own opportunity. People like your friend Mike Lee don’t want that. They want large corporations to control and dominate at the expense of others. He likes to be close to power and money. That why he is government right now. Mike Lee = Tyrany !!!

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Ron —

If by more efficient you mean better prices for consumers, then Walmart and others who replaced smaller chains have resulted in massive efficiency gains for the economy. The benefits have gone to the few owners of these businesses true (mainly as a result of economies of scale i.e. you dont need as many middle managers), but have also gone to consumers.

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William Thompson

The only reason Walmart is cheap is because of labor arbitrage to slave Asian labor. If they had to buy products in country their prices would not be cheap. Then add in all the expensive management and investor overhead its not cheaper. Little guys can not do this because they don’t have the cheap capital due to our banking polices. We have free flow of products but not labor. Its a market manipulation. Just think – the independent gas stations were always cheaper. But they have been run out of town as they can not get the products at the same prices due to the manipulation of large oil companies. Big companies are expensive !!!! Not to even speak of how it destroys middle class wealth and the demand market….

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Ron —

homedepot was way cheaper and a had bigger selection than builders emporium they replaced. True the tiny small local hardware store survives and has a niche because you can ask them home repair questions, but they definitely not cheaper. Yes the arbitrage of labor of walmart definitely makes goods cheaper. This is the point of larger companies being more efficient. They can go to the cheapest production source. Who benefits? The shareholders of the big companies as well as the consumers who have lower prices. Even non walmart retail chains offer cheap goods now to the benefit of purchasers. Just think, by opening US auto market we have way better car quality. Of course this hurts the union factory workers of Detroit, but even their jobs are replaced by high paying Toyota jobs in the south. The overall pie is bigger. Do the 1% get most of the benefits financially? Yes, but the consumers get much better products for cheaper as well. The problem is they dont have jobs. But to say working in a factory grind with no computers is better is not true. Thats like saying eveyone was better off doing backbreaking labor on the farm because they owned their own farm (never mind they only made a few 10′s of thousands of dollars!).

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William Thompson

Yes the pie is getting bigger, but if your piece is getting smaller whats the point? Salaries go down and prices go up. Does not sound like an interesting formula to me. But ok I will let you win the debate. Tea Party rocks – we just will bow down to our masters and believe them – until it falls appart…they will then blame the people of course.

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