Will computers cause the next market crash? Our electorate is run by the economy, the economy run by Wall Street. Investors control America’s wealth, the economy and the elections. The stock market investing used to be about scrutinizing companies, weighing cash flow, products, mergers, interest rates and the dollar. Today’s trading is short term. Computers look through a magnifying glass at millisecond changes buying and selling on what they “expect” will happen before it does. High speed makes the market subject to “spoofing;” buy/sell orders that are never carried out but cause panic-flood more orders, creating buy low/sell high opportunities. High speed creates feedback loops that mimic other strategies and amplify price swings. High speed means the market is less stable, prone to breakdowns and subject to “flash crashes,” like May 6, 2010 where the market lost 6% for no reason. Computer automated makes the stock market cheaper, faster, and more accessible, but controlled by the hands of robots, intuitive reasoning can be suborned by instantly obsoleted programming. It is bad enough to allow wealth to control elections, but automated wealth puts us on track where moving money around could destroy us faster than a nuclear bomb. Richard Dorsey, Hacienda Heights, CA.
America’s manufacturing losing out to finance: In the 1980s General Electric CEO Jack Welch turned his multi-billion dollar corporation away from manufacturing appliances and lighting to financial investment, including what turned out to be a major cause of the Great Republican Recession, the Prime Lending Mortgage Fraud. Millions of dollars––half normally invested in product R&D engineering––was allocated to a new corporation, GE Capital Finance, and directed at consumer lending, credit cards, leasing, real estate, and leveraged buyouts. Unlike banks, GE Capital was not as regulated. In a decade, GE went from a major manufacturer to a major financing business. By the 2000s more than half of GE profits came from non-labor manufacturing operations. Anti-government regulations became the byword and making something, unimportant. GE’s Jack Walsh was emulated by CEOs across the nation. Jobs in manufacturing died up, the market crashed, and 600 million Americans were out of work. Unlike manufacturing, finance is a risky business, especially if you are unregulated. When business and banks failed, consumer taxpayers were left to pay for their failures. Twenty five years of disinterest in manufacturing has resulted in two trillion dollars in lost product output. Manufacturing, not finance, had previously been the major innovator of new product development. Short term profit and greed replaced American know how and marketing. We learned nothing from the Crash. House Republicans are already dismantling regulations put in place to kill, “Too Big To Fail.” Big investors continue to dominate the stock market. Wealth increasingly dominates politics. CEOs and Hedge Fund Managers are making more bonus money now than ever. The economic gap is widening. The middle class is no longer essential. A good education is over priced. Less young marrieds can afford a new home. New jobs at good pay are hard to find. Manufacturing will continue to decline as long as Capitalism is unregulated and quick profits reign supreme. America will never again be the world’s greatest growing economy until it starts listening to Main Street not Wall Street. Richard Dorsey, Hacienda Heights, CA
Accumulated wealth tolls the death of equal opportunity: Where wealth accumulates, such as Republican legislation to Repeal Estate Taxes, inherited wealth controls the power to establish rules of business and society. Inherited wealth and conservative power has always been an issue behind States Rights. Local affluence creates socially subordinated communities, foments local class distinctions, and denies rights to those who do not fit community profiling. America fought a Revolution against accumulated wealth, the entrenched divine right of kings, and the power of privilege. But some Americans never did and still do not want to destroy inherited wealth, they merely want such privileges only for themselves. Today’s GOP represents the interests of accumulated wealth. To maintain control and increase power, conservatives demonize government public services. The powers that be want the public beholding to wealth in the form of jobs, charity, and social advancement. Accumulated wealth controls finance, controls the media, controls congress and dominates the public message. The only way to compete against accumulated wealth is to tax it out of existence or at least down to a fair proportion. Accumulated wealth is the antithesis of equal opportunity, which is vital for a worthwhile Democracy. Richard Dorsey, Hacienda Heights, CA.
Good education only for the wealthy: In 2013 the Department of Education earned $50.6 billion from student loan interest. Over the past five years the program has generated nearly $120 billion in profit. The most common type of educational loans made to students are guaranteed by the government under Stafford Loans. ALARM BELL: Congress sets the interest rate. The current interest rate is a whopping 6.8. In 2013 a bipartisan committee sought to lower the rate to 3.5, but Republicans in the House of Representatives killed the student relief proposition.
20 million Americans attend college each year. Some 12 million borrow annually to help cover costs. In June 2010, the amount of student loan debt at $830 billion exceeded the amount of credit card debt held by Americans. 80% was federal student loan debt and 20% was private. In October 2011, student loan debt exceeded $1 trillion. The rise of student debt is the direct result of Republican demand for a high interest rate.
Critics of financial aid claim that, because schools are assured of receiving their fees no matter what happens to their students, they have felt free to raise their fees to very high levels, to accept students of inadequate academic ability, and to produce too many graduates in some fields of study. These same critics focus on blaming and punishing the victim instead of punishing the perpetrators. The Republican House is telling the public that the solution to skyrocking student loan debt is to maintain high interest rates to keep more students from taking out loans, rather than lower rates, and limit University fees and institute reasonable policies. Republicans would prefer fewer students attend Universities than to lower interest rates.
In 2007, the Attorney General of New York State investigated practices and anti-competitive relationships between student lenders and universities. Many universities steered student borrowers to “preferred lenders” that charged higher interest rates. Some of these “preferred lenders” allegedly rewarded university financial aid staff with kickbacks. This led to changes in lending policy at many major American universities. Corruption and High Interest Rates are the cause of student debt. Conservatives have to stop blaming the victims who are trying to get ahead, and start blaming criminals who legislate policies that restrict privilege to wealth.
Richard Dorsey, Hacienda Heights, CA.
Climate change deniers on course of destruction: Climate change deniers are on a course of destruction that could destroy the planet. Though a majority of scientists have determined that climate change is mostly caused by humans, deniers want to believe it is not happening. Climate change deniers are said to suffer from a disease called climate change denial disorder (CCDC). The disease is said to attack neurons in the brain, making it impossible to grasp the meaning of words such as “science,” “factual,” and “melting.” An example, CCDC sufferers might not comprehend: “The ice caps are melting at an unprecedented rate.” Other symptoms include: delusion, arrogance, and voting for profits over public health. According to reports, 56 percent of congressional Republicans suffer from extreme CCDC. The goal of these I-only-believe-what-I-see congress people is to block proposed regulations aimed at limiting carbon pollution from coal-fired power plants. A Republican found canoeing in an asphalt parking lot to overcome drought, told reporters: “I am not a scientist. I’m just a senator. But I get to make decisions based on what’s good for those who fund my election. Who listens to scientific nerds anyway?” Richard Dorsey, Hacienda Heights, CA.
Republicans want women “in their place.” While Republicans bandwagon scandals like Clinton’s emails, one in three women is experiencing physical violence, one in ten under the age of twenty is forced into sexual acts, thirty nations allow men to beat their wives, and eighty-three percent of girls twelve to sixteen are sexually harassed in school. While the rate of mayhem regularly imposed on half of humankind is alarmingly high, Republicans march lockstep not to legislate protection for women, but to scandalize politics. Instead of dealing with issues, Republicans laud the strongman Putin/Netanyahu, while bemoaning Clinton’s strong-woman response to email privacy: “I opted for convenience.” Clinton is setting the stage for her presidential campaign discussing real female conditions; political exclusion, discrimination, rape as weapon of war, genital cutting, forced illiteracy, forced aborting, and sterilization. Women’s rights are human rights. Meanwhile, the four horsemen of apocalypse-by-innuendo Fox is outraged, Hannity suspicious, O’Reilly incredulous, and Limbaugh aghast at a woman like Clinton who does not know her place. Instead of dealing with momentous women’s issues, Republicans are trying to force Clinton to allow Louie Gohmert to sniff out her “yoga experience.” The stakes for the White House are too important for nonsense. The world is waiting to see how things go when a woman is in charge. The rights of half the world’s population are at stake. Who you are is how you vote. Richard Dorsey, Hacienda Heights, CA.
Can capitalism reform itself? History says it won’t. Leading economist says, it must. Philip Kotler author of Marketing Management, a major textbook in Business Schools worldwide, says: “Low Wages are bad for the economy. Low wages lead to poverty and inequality,” ––and hello, Mr. and Mrs. Business Owners––“they lead to over production, declining investment and low economic growth.” Kotler says, “Business has to realize that only when prosperous wage earners spend do capitalists earn. Only people who can afford to pay, buy freely.” But business has never reformed on its own. Capitalism has existed for centuries. The only time the economy is great is when consumer demand is great. Without good wages the economy always stagnates. Business knows that is own self-interest lies with good wages, but business cannot overcome greed. Dangling dollars distort reality. Only when people complain through government is business forced to face historical facts. The very thought of reform is fought tooth and nail. Billions are spent by business to sell the public that unregulated capitalism is good for them. Every single talk-show host promoting unregulated capitalism is a multi-millionaire. History shows business will never reform itself. Like a child who won’t let others play with its toys, business requires a parent to redirect misbehavior. When you vote, remember, consumers are the parents of capitalistic behavior. How you vote is who you are as an adult member of society.
Richard Dorsey, Hacienda Heights, CA.