07/19 Update; The economics of wealth consolidation and an analysis of how the wealthy benefit from deficit spending

To download the podcast – Right mouse click here (duration 40:13)

-An analysis of how the large multinational corporations are best positioned to benefit from deficit spending. These firms are the most effective at extracting the wealth of the bottom 50% (up to bottom 90%) of the population. These are just normal functions of deficit spending and the QE environment.
-Think I’m wrong? Just look at the following two charts that show how the S&P 500 earnings have exploded since the early 80’s, when the massive deficit spending campaigns were initiated under the first Reagan regime.

S&P 500 index (blue), S&P 500 earnings (gold); Prior to 1980, fiscal deficit spending was minimal and stock earnings and price growth were subdued. Post 1980, stock prices and earnings exploded in tandem with the deficit spending.
S&P 500 index (blue), S&P 500 earnings (gold); The largest firms are best able to exploit the explosion in fiscal deficit spending. The accumulation of wealth by these firms will continue as long as the nation-states continue to spend recklessly.
S&P 500 PE Ratio – 60 Year Historical Chart (log scale). This chart shows the trailing twelve month S&P 500 PE ratio since 1960.

-The largest corporations control the media and will always encourage deficit spending. All these liberal causes mean massive deficit spending.
Ben Bernanke and Janet Yellen testified on Friday that robust fiscal action is needed. They authored an article on the Brookings Institute’s website. I suspect that COVID will drag on and accelerate in the winter months. This will necessitate at least 3 trillion in additional spending. All of which will trickle up to the balance sheets of the elites and their income-generating assets. The Fed can easily build their balance sheet to 100% of GDP. At that point we wlll need to address what will happen next.
-I analyze the mechanics of how this wealth extraction works in real time through the exothermic and endothermic phases of deficit spending programs.
-I am the only analyst who is explaining this in a way that encourages us to make the correct financial and personal decisions. The YouTube alt-media personalities with +100k followers are useful to the Synagogue of Satan elites, because these people provide the sheep with a release valve to vent their anger and frustration. Virtually all their followers are instructed to take antithetical actions for their well-being.

 

Related Posts