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The Great Divide: the Death of the Middle Class - Jeff Nielson

The Great Divide: the Death of the Middle Class - Jeff Nielson
By Jeff Nielson 3 years ago 14264 Views 14 comments

Jeff Nielson is co-founder and managing partner of Bullion Bulls Canada; a website which provides precious metals commentary, economic analysis, and mining information to readers/investors. Jeff originally came to the precious metals sector as an investor around the middle of last decade, but soon decided this was where he wanted to make the focus of his career. His website is www.bullionbullscanada.com.

March 30, 2016

Several months ago, a chart produced by one of the Big Banks was presented to readers . It was supposed to be innocuous data on global wealth distribution, but instead portrayed a horrifying picture.

The focal point of the aforementioned article was that when it came to “the world’s poorest people,” the Corrupt West has now produced a greater percentage of severe poverty in its own populations than in India, and an equal percentage of such poverty as exists in Africa.

Stacked beside this, we see that when it comes to the richest-of-the-rich, the Corrupt West remains in a league of its own. Supposedly, we are living in “the New Normal,” where life is supposed to get increasingly harder and harder. So why does the New Normal never affect those on top?

Of course all of these extremely poor people being manufactured by our governments (as these regimes give away our jobs, destroy wages, and eviscerate our social programs) have to come from somewhere. Certainly they don’t come from the Wealthy Class.

Indeed, the chart above provides us with a crystal-clear view of where all these poor and very-poor people are coming from: the near-extinct Middle Class. In order to manufacture hundreds of millions of impoverished citizens in our nations, the Old World Order has had to engage in a campaign to end the Middle Class.

We are conditioned to consider economic “classes” within our own societies, but with the chart above, we’re given a global perspective. Where does the Middle Class exist today, globally? At the upper end, it exists in China, and to a lesser extent, in Latin America and other Asian nations. At the lower end of the Middle Class, we see such populations growing in India and even Africa.

Only in the West, and especially North America, is the Middle Class clearly an endangered species. Two incredibly important aspects of this subject are necessary to cover:

1) How and why has the One Bank chosen to perpetrate Middle Class genocide?

2) What are the consequences of the Death of the Middle Class?

Attempting to catalogue the nearly infinite number of ways in which the oligarchs of the One Bank have perpetrated their Middle Class genocide is impractical. Instead, discussion will be limited to the five most important programs responsible for the Death of the Middle Class: three of them relatively new, and two of them old.

a) Globalization

b) Union decimation/wage destruction

c) Small business decimation

d) Money-printing/inflation

e) Income taxation

Globalization was rammed down our throats in the name of “free trade,” the Holy Grail of charlatan economists . But, as previously explained, real free trade is a world of “comparative advantage” where all nations play by a fair-and-equal set of rules. Without those conditions, “free trade” can never exist.

The globalization that has been imposed upon us is, instead, a world of “competitive devaluation,” a corrupt, perpetual, suicidal race to the bottom. The oligarchs understood this, given that they are the perpetrators. The charlatan economists were too blinded by their own dogma to understand this. And, as always, the puppet politicians simply do what they are told.

Next on the list: union decimation and wage destruction are inseparable subjects, virtually the flipside of the same coin. “But wait,” shout the right-wing ideologues, “unions are corrupt, everyone knows that.”

Really? Corrupt compared to whom? Are they “corrupt” standing next to the bankers, who have stolen all our wealth ? Are they “corrupt” standing next to their Masters, the oligarchs who are hoarding all our stolen wealth ? Are they “corrupt” standing next to our politicians, who betrayed their own people to facilitate this economic pillaging? No, compared to any of those groups, unions (back when they still existed) were relative choir-boys.

When it comes to corruption, nobody plays the game as well as those on top. Compared to the Fat Cats, everyone else are rank amateurs. When unions were strong and plentiful, everyone had jobs. Almost everyone earned a livable wage (or better). Gee, weren’t those terrible times! Look how much better off we are now, without all those “corrupt unions.”

The other major new component in the deliberate, systemic slaughter of the Middle Class was and continues to be Small Business decimation. “Small business is the principal job-creator in every economy.” Any politician who ever got elected can tell you that.

If this is so, why do our corrupt governments funnel endless trillions of dollars of Corporate Welfare (our money) into the coffers of Big Business, while complaining there is nothing left to support Small Business? Why do our governments stack the deck in all of our regulations and bureaucracies, greasing the wheels for Big Business and strangling Small Business in their red tape?

Why do our governments refuse to enforce our anti-trust laws? One of the primary reasons for not allowing the corporations of Big Business to grow to an illegal size is because these monopolies and oligopolies make “competition” (meaning Small Business) impossible. One might as well try to start a small business on the Moon.

Then we have the oligarchs’ “old tricks” for stealing from the masses (and fattening themselves): banking and taxation. Of course, to the oligarchs, “banking” means stealing, and you steal by printing money. As many readers are already aware, “inflation” is money-printing – the increase (or inflation) of the supply of money.

In the absence of the gold standard, there is no way to protect savings [i.e. wealth] from confiscation through inflation .

- Alan Greenspan (1966 version )

Remove the Golden Handcuffs , as central banker Paul Volcker bragged of doing in 1971, and then it’s just print-and-steal – until the whole fiat currency Ponzi scheme implodes.

Then of course we have income taxation: 100 years of systemic thievery. No matter what the form or structure, by its very nature every system of income taxation will:

i) Provide a free ride to those at the very, very top

ii) Be revenue-neutral to the remainder of the wealthy

iii) Relentlessly steal out of the pockets of everyone else (via over-taxation)

This is nothing more than a matter of applying simple arithmetic. However, many refuse to educate themselves on how they are being robbed in this manner, year after year, so no more will be said on the subject.

These were the primary prongs of the oligarchs’ campaign to exterminate the Middle Class. As always, skeptical readers will be asking “why?” The answer is most easily summarized via The Bankers’ Manifesto of 1892 . This document was presented to the U.S. Congress in 1907 by Republican congressman, and career prosecutor, Charles Lindbergh Sr.

It reads, in part:

The courts must be called to our aid, debts must be collected, bonds and mortgages foreclosed as rapidly as possible.

When through the process of law, the common people have lost their homes they will be more tractable and easily governed through the influence of the strong arm of government applied to a central power of imperial wealth under the control of the leading financiers [the oligarchs]. People without homes won’t quarrel with their leaders.

We have “the strong arm of government.” The oligarchs saw to that by bringing us their “War on Terror.” When it comes to throwing people out of their homes, and creating a population of serfs, that’s a two-part process.

Step 1 is to manufacture artificial housing bubbles across the Western world, and then crash those bubbles. However, this is only partially effective in turning Homeowners into Homeless. To truly succeed at this requires Step 2: exterminating the Middle Class. A Middle Class can survive a collapsing housing bubble, assuming they remained reasonably prudent. The Working Poor cannot.

Finally, after more than a century of scheming, the oligarchs have all of their pieces in place. In the U.S., they’ve even already built many gulags – to warehouse these former Middle Class homeowners – since a large percentage of those people are armed.

This brings us to one, final point: the consequences of the Death of the Middle Class. What happens when you destroy the foundation of a house? Just look.

As readers have been told on many previous occasions, the “velocity of money” is effectively the heartbeat of an economy. It is another way of representing the economics principle known as the Marginal Propensity to Consume, probably the most important principle of economics forgotten by charlatan economists.

The principle is a simple one, since it is half basic arithmetic and half common sense. Unfortunately, these are both skills beyond the grasp of charlatan economists. If you take all of the money out of the pockets of the People, and you stuff it all into the vaults of the Wealthy (where it sits in idle hoards), then there is no “capital” for our capitalist economies – and these economies starve to death .

What is the response of the oligarchs to the relentless hollowing-out of our economies? They have ordered the puppet politicians to impose Austerity: taking even more money out of the pockets of the people. It is the equivalent to someone with anorexia going to a doctor, and the doctor imposing a severe diet on the patient (i.e. victim). The patient will not survive.

The Middle Class is dying. Unlike the oligarchs’ Big Banks, we are not “too big to fail.” Our jobs are gone. Our unions are gone. Our Middle Class wages are gone. Very soon, our homes will be gone. But don’t worry! It’s just the New Normal.

The views and opinions expressed in this material are those of the author as of the publication date, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.

james 3 years ago at 7:33 PM
If only the sheep would rise up....nice work thanks
John McGinnis 3 years ago at 1:04 PM
The piece that always seems to be missing from the Oligarchs calculations is "who" is going to provide them all the fancy toys they desire? Very few products are available unless there is a mass market for it. So when the Middle Class crashes so does the price support for new toys. I don't think the Oligarchs have considered second order affects.
Jeff Nielson 3 years ago at 11:19 AM
John, going even farther down that road, our economies are being "hollowed out" (looted) to such an extreme extent that there is no way we can continue to support a high-tech economy. And I question if we will even be able to remain fully industrialized.

You can't have a "high-tech" economy where the majority are Homeless people and/or Working Poor. There isn't even circulating wealth to support all the infrastructure, nor is there the necessary education base to maintain such a society.

The oligarchs have created their high-tech, "1984" Big Brother society, while simultaneously they are destroying the capacity to maintain such a society.
BigD 3 years ago at 8:57 AM
This chart is somewhat and doesn't really tell indicate living standards because the difference in populations are so great.
Jeff Nielson 3 years ago at 11:24 AM
No BigD, that's not correct.

The numbers are all percentiles, so the chart is representative. If the Masses were well-off in our societies, but poorer in China, the "China bulge" would occur significantly lower in the wealth spectrum.

Conversely, if our societies had HEALTHY wealth-distribution (i.e. most of the wealth in the center), we would see a corresponding bulge in the middle (like China) -- it simply would not as large a bulge.

What the chart above indicates (in the West) are TERMINALLY ILL societies, where the Middle Class genocide has gone to such an extreme that total collapse is inevitable.
deltajent 3 years ago at 11:04 AM
@ BigD & Jeff Nielson: "This chart is somewhat..." what? Confusing? Inscrutable? Misleading? Incomplete? Irrelevant? ? ?
And why are the links to bullionbullscanada.com not working? All I get is a blank page. Is that just my computer or isp?
Angee 3 years ago at 11:28 PM
Yip I agree, but if they are killing the Middle Class then why are they trying to resuscitate it by giving away free non taxable money? I think its called here in NZ Universal Basic Income. Its a plan to give every citizen an income above what they already earn? Goes against your theory I would have thought unless of course they are trying to inject liquidity into a stagnant market for the big corporations?
Jeff Nielson 3 years ago at 11:29 AM
"Giving away free non-taxable money" to whom? The large corporations? That's who gets the majority of EVERY tax dollar collected in our corrupt regimes. Haven't you heard of "Austerity"? NOTHING for the people. EVERYTHING for the Rich.

You seem to be confusing our economies with Iceland, where they kept ALL of their social programs fully-funded, and thus now have the healthiest economy in the West.

P.S. I'm not familiar with the New Zealand economy, but if your own government is maintaining social programs, then that will PROTECT not harm your economy.
rodkerr09@gmail.com 3 years ago at 4:44 PM
They are still corrupt. It is all corruption. I do believe they need to have some money floating around out there so they can keep on collecting. They think they need to maintain a balance to maintain themselves but like everything man tries to control it usually backfires. This will as well.
Jeff Nielson 3 years ago at 11:15 AM
Rodkerr, I will politely disagree here.

Part of the reason why I have labeled these oligarchs as "psychopaths" is the fact that they appear to be totally oblivious to the consequences of their rapacious stealing. I've called them "parasites", but a reader corrected ME, and pointed out that the correct term to use here is "parasitoid."

A parasitoid is a form of parasite which does not merely feed on its host, but rather KILLS (and usually consumes) the host. This is what we are dealing with here. These Parasitoids are relentlessly dismantling the foundation of their own empire.

Our economies have ALREADY been hollowed-out to the point where total collapse (not merely some temporary depression) is inevitable. Look again at the U.S. velocity of money chart above.

That's not the picture of an ill economy, or even a dying economy. It's a picture of a DEAD economy -- a heart which has stopped beating. There is literally only ONE way to resuscitate life into this corpse: a massive transfer of (stolen) wealth FROM the Wealthy Thieves BACK to the people from whom that wealth is stolen.

In our current condition, these economies can no longer even sustain a high-tech economy. If they deteriorate much further, our nations will not even be able to sustain INDUSTRIALIZATION.

Serf-societies, with destitute governments cannot sustain industrialization. There is no money for even maintaining infrastructure. Income levels are too low to sustain the DEMAND necessary to fuel industrialization.

If we continue on the present downward spiral which these psychopathic Parasitoids have created, we are literally headed for another Dark Age.
rodkerr09@gmail.com 3 years ago at 10:35 PM
So what is the solution? Revolt, war. I would think as history has shown the serfs would take back what is theirs or ours.
Jeff Nielson 3 years ago at 2:10 PM
Yes, unfortunately what History teaches is that when corruption, oppression, and injustice/inequality reach such extremes that such scenarios always end in one form or another of revolution.

My own "mission" (and what should be the mission of other Alternative media writers) is to try to create a sufficient level of education and awareness that we can rise above our past, and achieve change via more civilized means.

Needless to say, I'm not optimistic at the present time...
Mike. mouse 3 years ago at 11:01 PM
I like to read Jeff Nielsen. It makes me feel like he knows some answers to the craziness I see in everyday's newspapers. Still, I'd like more discussion. 300 million handguns in the USA are available if the middle class gets upset--- and why wouldn't they listening to Bernie Sanders?
Jeff Nielson 3 years ago at 5:16 PM
Thanks for the support Mike!

Regarding Bernie Sanders, he's the Democrat Ron Paul -- an HONEST person running for president. I expect his campaign to be sabotaged, as was Paul's.

As for the 300 million handguns (not to mention all the heavy weaponry), different subject matter for different audiences. Over at Bullion Bulls Canada, I'm getting into some of the ramifications of the "craziness" South of the Border.

The Rise of the Fourth Reich, Part I

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