"The Biggest Redistribution Of Wealth From The Middle Class And Poor To The Rich Ever" Explained…

While the growth of inequality in America has been heavily discussed here, it was Stan Druckenmiller's outbursts (and warnings that "from beginning to end – once markets adjust from these subsidized prices – that the wealth effect of QE will have been negative not positive") that brought it more broadly into the average American's mind. QE, taxes, income disparity, and entitlements are four major means by which wealth is transferred from the poor and the middle class to the rich. The following simple chart explains it all…

 

Via Shane Obata-Marusic ( @sobata416)

 

A – “the rich hold assets, the poor have debt” is how Citi’s Matt King described the distribution of wealth in the US.

B – QE has resulted in a loss of purchasing power for the US dollar. Faced with this problem, consumers in the middle class are taking on more non-housing debt in order to maintain the same standard of living. In addition, the US government – which continues to run a deficit year after year – continues to accumulate debt. Due to these facts, total debt outstanding – aka credit market instruments for all sectors – is at all time highs. More debt means more interest payments and lower savings rates. These trends do not bode well for the middle class consumer.

C – On the other hand, QE has been great for the rich. QE has inflated the prices of assets such as property, bonds, stocks, and non-home real estate:

Home prices in Detroit are going up despite the fact that the city is bankrupt. The “housing occupancy” table is meant to show what appears to be a higher than average amount of speculative demand i.e. lower than average owner occupancy rates.

The rich have most of the assets which is why the average family income of the top 0.01% increased by 76.2% from 2002 to 2012. In contrast, the average family income of the bottom 90% decreased by 10.7% over that same period.

D – Taxes as a percentage of real disposable income have more than doubled since 1980. This trend has not been kind to the bottom 90%.

Conversely, favourable tax rates on dividends and capital gains have allowed the rich to become wealthier over time.

E – Median household income has been in a downtrend since the late 90s.

In opposition, corporate profits are at all-time highs.

F – The entitlement problem is only going to get worse as more baby boomers leave the work force. Future generations will have to pay for the debt that the old and rich continue to take on.

Growing benefits and sympathetic tax rates on investments enabled the old to increase consumption by 164% from 1960-1991 .

G – In conclusion, QE, taxes, income disparity, and entitlements are contributing to “the biggest redistribution of wealth from the middle class and the poor to the rich ever” If things continue the way they are going, then millennials and future generations will pay the price:

Despite the fact that inequality in the US is nothing new:

Today, it might be worse than it ever has been:

Unless the distribution of wealth in America begins to change for the better, assets will continue to benefit the rich and debt will continue to burden the middle class and the poor.

For an economy that’s largely based on consumption, excess debt only serves to reduce expenditures and to slow economic growth over time.

Quality of life for the median American household is only going to get better if the issues associated monetary policy, entitlements, taxes, and income are addressed and dealt with.

For now, the best thing that you can do is to discuss these issues with your friends, family and colleagues and try to come up with solutions.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/XE8NTXbQ6YY/story01.htm Tyler Durden

Guest Post: Why 2014 Doesn’t Have To Be 1914

Submitted by Mira Rapp-Hooper via The Diplomat,

In a recent Brookings Institution essay entitled “The Rhyme of History: Lessons of the Great War,” historian Margaret Macmillan argues that there are strong and haunting parallels between today’s geopolitical landscape and Europe of 1914. Pivoting off the well-know Mark Twain adage that history does not repeat itself, but does rhyme, Macmillan suggests that the one-hundredth anniversary of World War I encourages us to reflect on the “valuable warnings” of the past. The actual and potential conflicts in the year ahead are many, and some of the same structural forces that lead to the Great War a century ago will be prevalent in 2014.

Macmillan is an eminent historian (her book, Paris 1919 is a must-read), but analogies between 1914 Europe and the world today should not be drawn hastily. World War I continues to preoccupy scholars and pundits alike, in part because it was so destructive, and in part because there is still no consensus on why exactly it occurred. With the centennial of the conflict approaching, we can expect to see 1914 references made a great deal — particularly with respect to the power transition that is currently in progress in the Pacific —  but we should remain duly skeptical of this tempting parallel. Many of the conditions that were present in antebellum Europe do indeed prevail today.  Whether these forces actually raise the risk of war is far from established, however, and the expectation that they do may itself increase the chance of conflict.

In her Brookings essay, Macmillan identifies several conditions that were present in Europe before the Great War that, she argues, also raise the risk of conflict today.  The first of these conditions is globalization and its unintended consequences. In both 1914 and at present, there existed the common assumption that the world was becoming too interconnected to resort to war — conflict would be prohibitively costly. But, Macmillan points out, a hundred years ago as now, those who preached interdependence often ignored the fact that globalization can lead to job loss, foster intense localism and nativism, and provide a breeding ground for radical ideologies and movements (including those that employ terrorism). Globalization, Macmillan warns us, can also heighten interstate rivalries.

Related to this is a second trend — rising nationalism and sectarianism. Once trapped in interstate rivalries, leaders may seize upon nationalism and bitter historical enmity to appeal to their publics. In 1914, the predominant antagonisms were the Anglo-German and Russo-German rivalries; today they include Sino-American and Sino-Japanese competition.  Third, Macmillan reminds us that tightly-knit defensive alliances may encourage conflict or cause it to spread. In 1914, Germany saw itself as inextricably bound to Austria, as France did to Russia. Today, she warns, the United States could easily be drawn into war in either the Middle East or East Asia by its alliance ties.

Finally, Macmillan warns that “World Policemen” may be forced into retirement, leaving a vacuum of instability and uncertainty. By the early 20th century, the British clearly could not sustain the demands and costs of their empire. Likewise, Macmillan avers, the United States will not be able to preserve hegemony indefinitely. Even if it its reach is primarily confined to Asia, the most obvious challenge to U.S. influence will come from a rising China, and crises or conflicts may break out unless the dominant powers can establish a stable international order.

Macmillan is hardly the first to point to these conditions as potential precursors to conflict. With respect to China’s rise, analysts have argued frequently that Washington and Beijing’s national security interests put the two countries on a collision course. Some have gone so far as to insist that this clash is inevitable But in her comparison of the international conditions that preceded the Great War and those that prevail today, Macmillan fails to address one truly crucial question: Why did the forces of globalization, nationalism, interlocking alliances, and power transition combine to produce war in 1914 specifically?

The prevailing patterns that Macmillan identifies as historical rhymes may all be thought of as permissive conditions to conflict: these forces may have helped to pave the way to the Great War’s onset, but none alone was the immediate cause of war in 1914.  Moreover, these forces were almost certainly present in Europe prior to that fateful year. Why, then, did they not combine to produce a major war when Austria annexed Bosnia in 1908? Why did they not stoke the Balkan Wars of 1912 and 1913 and produce global conflagration then? If we are to accept that any specific set of conditions caused the First World War in 1914, we must also be able to explain why those forces did not produce war earlier or later, or why conflict could not have been avoided altogether despite their prevalence.

Indeed, in the copious literature on World War I, scholars have attempted to dissect these important counterfactuals. Some argue that the structural conditions that Macmillan identifies really did make a European conflict inevitable — interlocking alliances, the Anglo-German power transition, nationalism, and other factors meant that war would have occurred in 1915 or 1916 if it did not in 1914. But other analysts insist that the Great War was the immediate result of assassination of the Austrian Archduke Franz Ferdinand. If he had not been killed in Sarajevo on June 28, 1914 — or if he had been shot and lived — the great powers might have avoided war, not just in that year, but in perpetuity. If an idiosyncratic event like the Archduke’s assassination is the key to explaining the war, however, it is not clear how much credence we should give to other underlying factors. Macmillan’s background conditions for conflict may be insufficient to bring about a war, and indeed, may not even be necessary. And if this is true, then the parallels that can be drawn between the onset of the First World War and geopolitics today may be impoverished at best.

So is this a simple warning that decision makers should approach historical analogies with caution? It is that, but also more. Among the many causes of the First World War that international relations scholars have identified was the widespread belief in European capitals that a great power conflict was highly likely. Combined with prevailing military technologies and strategies of the time, this assumption led statesmen to think that they would be advantaged if they struck first, rather than waiting for an adversary attack that was sure to come in due course.  By overemphasizing historical parallels, we risk convincing ourselves that conflict is imminent, when in fact it remains eminently avoidable. If we were to combine Macmillan’s warnings about economic interdependence, nationalism, alliances, and power transitions, for example, it would be tempting to flag the next fracas over the Senkakus/Diaoyus, where all of these forces are clearly present, as the new Sarajevo. Combined with great power military strategies that may be escalatory, conflict anticipation via analogy could produce disastrous results indeed.

With the one-hundredth anniversary of the First World War fast upon us, and a power transition manifestly under way, Macmillan’s essay will certainly not be the last analysis to draw connections between 1914 and present-day geopolitics. Indeed, there is surely value in paying heed to the similarities and differences between the two eras. By listening anxiously for historical rhymes that portend major conflict, however, we risk deafness to the multitude of factors that make the challenges of the present day unique, and soluble far short of war. A rhyme, after all, is a correspondence of sound, but not of meaning.

Here’s to wishing the world a 2014 that is considerably more peaceful than the centennial it will mark.

 


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/QUWwEIOIkpA/story01.htm Tyler Durden

The Re-ARM-ing Of The Housing Market Bubble

Worried about being priced out of the housing market once again? Concerned that longer-term fixed rates will rise? It seems the general public, guided by the always full of fiduciary duty – mortgage broker – has reverted to old habits and is charging back into Adjustable-Rate Mortgages. As The LA Times reports, ARMs, which all but vanished during the housing bust, are back – accounting for 11.2% of homes purchased in November (double that of the year before)! While not the Option Arms of yesteryear, it would appear people, pushing for lower monthly payments, remain completely oblivious to the word “adjustable” when they shift their risk to the shorter-end. Though, as the ‘experts’ continue to tell us, rising rates won’t affect housing negatively – not at all…

 

Via The LA Times,

It seems we never learn…

When Michael Shuken recently bought his family’s first home, a four-bedroom in Mar Vista, his adjustable-rate mortgage helped them stay on the pricey Westside.

 

For now, his interest-only loan costs him about 35% less per month than a 30-year fixed mortgage, he said. But he’ll have a much bigger monthly bill in 10 years, when the loan terms require him to start paying off principal at potentially high rates.

 

What is going to happen if I can’t restructure my loan and extend it? Are interest rates going to be 7%, 8%?” the 43-year-old commercial real estate broker said. “The home is big enough for me to grow into. The question is, will I be able to?”

So, because they absolutely have to stay on the “pricey side” as opposed to move to what they can afford… it seems this attitude is becoming ubiquitous…

More homeowners in Southern California were willing to take that risk last year. In November, 11.2% of homes bought with loans carried adjustable-rate mortgages, or ARMs. That’s double the rate of the same month a year earlier, according to San Diego-based research firm DataQuick.

 

You saw a big swing in people taking adjustable versus fixed rates” when prices and rates shot up last year,

 

Of course, it’s not about what house you can afford, it’s about what monthly nut you can cover…

With interest rates expected to rise this year, the proportion of ARMs could increase further.

 

“Generally, as rates increase ARMs become more popular,”

 

But that could be a penny-wise, pound stupid idea…

“I don’t think the product, in and of itself, is inherently a bad product,” he said.

 

Of course, rates could adjust downward in favorable market conditions. But ARMs are still riskier than fixed-rate loans — especially when rates remain at historical lows but are expected to rise.

 

Shuken, the Mar Vista borrower, says he understands the risks. He plans to pay down some principal before such payments are required, he said. And he’ll start planning years before the interest rate adjusts to either restructure the loan or sell the house.

 

“If people aren’t thinking about that,” he said, “they need to.”

Yes, they do… With 5/1 ARMs the most popular, perhaps it is worth noting that 1 Year Treasury rates are expected (based on the forward curve) to rise from 10.9bps today to 3.977% in 5 years


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/J0y6VzIkYtk/story01.htm Tyler Durden

The Ivy League’s New Dream Job: Not Wall Street, But Waiting Tables

As recently as October, we joked that the “best-performing” job category in the US was also the most miserable one – i.e., “bartenders and waiters“, also known as jobs which often times get paid below minimum wages and rely on the goodwill of their customers for tips to survive. And indeed, as of November, there were a record 10.4 million waiters in the US, representing a record 45 consecutive monthly increases in this job category – hardly the stuff robust recoveries are made of.

However, it turns out the joke may be on us after all because as the WSJ explains, “Waiting Tables at Top-Tier Restaurants Is New Career Path for Ivy League and Culinary School Grads.”

It appears that gone are the days when every Ivy graduate’s fast-track to stardom dream was to become a banker (or in the worst case, a corporate lawyer). And with Wall Street’s increasing conversion into a utility, the aspirations of the best and the brightest will progressively shift elsewhere. But waiting tables? Well, as it turns out that’s where the money is because “head waiters at top-tier restaurants can earn from $80,000 to as much as $150,000 a year including tips, according to industry executives. In comparison, a line cook might earn as little as $35,000 to $45,000 a year while working longer hours. The nation’s highest-rated restaurants, including Per Se, Le Bernardin and Eleven Madison Park in New York and Alinea in Chicago, hire as few as 10% of the individuals applying for waitstaff jobs.”

Perhaps what is just as important, is that there is no universal revulsion against head waiters across the US and if and when the great uprising finally crosses the Hudson River, while bankers will be the object of public scorn, to put it mildly, waiters and other servent will probably be cherished. So why not make some good money in the process?

This thought process seems to have spread and as the WSJ reports, “at the Culinary Institute of America in Hyde Park, N.Y., 20% of graduates from two- and four-year programs go into “front of the house” positions in the dining room, which also include maitre d’s, bartenders and sommeliers, compared with 5% roughly 15 years ago, says Jennifer Purcell, an associate dean overseeing the hospitality and service curriculum. In the past six years, the Culinary Institute has added customer-focused courses, including one on brewed beverages and one on advanced serving. This year, 350 students completed the course work, she says.”

And, as noted earlier, it isn’t just anyone who is waiting on the rich and famous: it’s those graduates who (or whose parents) have spent north of $200,000 in the past four years so they could get comfortable jobs:

Many of the servers at Eleven Madison are recent grads of the Culinary Institute, Cornell, University of Pennsylvania and Harvard. To attract young talent, Mr. Guidara says, the restaurant cultivates a teaching atmosphere, with events such as a weekly “happy hour” course on cocktails and wine often taught by experienced servers on staff. “It’s hard for us to keep our staff from coming in three or four hours early,” he adds. “They are not just here for a job; they give themselves fully.”

 


 

Several servers who have moved from Eleven Madison Park to more casual restaurants have instituted a similarly professional atmosphere, he adds. A networking group called the Dining Room Collaborative began in New York in 2013 to foster education and a sense of professionalism among wait staff at fine-dining establishments. The idea is to make server “a sexy dining-room job,” says Anthony Rudolf, the group’s co-founder and former general manager at Per Se, in New York.

 

Celia Erickson, a 24-year-old server at Eleven Madison, has an undergraduate degree in hospitality from Cornell University and completed a yearlong wine and beverage program at the Culinary Institute of America (where her father is provost). When starting at Eleven Madison Park last summer, she shadowed kitchen staff as part of her training and had an entry-level server role. She says she has gained insight into managing a top restaurant. “My first two months, it was really hard for me. I spent five years in school and now I was waiting tables,” she says.

So while we salute this “upwardly mobile” recovery in 6 figure-earning waiters, we wonder what will happen when the day comes that the patrons of such ultra-exclusive establishments as Eleven Madison can no longer afford $60 steaks and $20 truffle fries. Because as hard as we try, we fail to imagine just what portable and marketable skills America’s nearly 11 million waiters will offer when the time comes to move on (aside, of course, for any insider trading “chat rooms” the Dining Room Collaborative may secretly unleash upon an unsuspecting world).

But here we go again: concerned about the future in a world when clearly only the here and now matters.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/zScyf9T1-HQ/story01.htm Tyler Durden

The Ivy League's New Dream Job: Not Wall Street, But Waiting Tables

As recently as October, we joked that the “best-performing” job category in the US was also the most miserable one – i.e., “bartenders and waiters“, also known as jobs which often times get paid below minimum wages and rely on the goodwill of their customers for tips to survive. And indeed, as of November, there were a record 10.4 million waiters in the US, representing a record 45 consecutive monthly increases in this job category – hardly the stuff robust recoveries are made of.

However, it turns out the joke may be on us after all because as the WSJ explains, “Waiting Tables at Top-Tier Restaurants Is New Career Path for Ivy League and Culinary School Grads.”

It appears that gone are the days when every Ivy graduate’s fast-track to stardom dream was to become a banker (or in the worst case, a corporate lawyer). And with Wall Street’s increasing conversion into a utility, the aspirations of the best and the brightest will progressively shift elsewhere. But waiting tables? Well, as it turns out that’s where the money is because “head waiters at top-tier restaurants can earn from $80,000 to as much as $150,000 a year including tips, according to industry executives. In comparison, a line cook might earn as little as $35,000 to $45,000 a year while working longer hours. The nation’s highest-rated restaurants, including Per Se, Le Bernardin and Eleven Madison Park in New York and Alinea in Chicago, hire as few as 10% of the individuals applying for waitstaff jobs.”

Perhaps what is just as important, is that there is no universal revulsion against head waiters across the US and if and when the great uprising finally crosses the Hudson River, while bankers will be the object of public scorn, to put it mildly, waiters and other servent will probably be cherished. So why not make some good money in the process?

This thought process seems to have spread and as the WSJ reports, “at the Culinary Institute of America in Hyde Park, N.Y., 20% of graduates from two- and four-year programs go into “front of the house” positions in the dining room, which also include maitre d’s, bartenders and sommeliers, compared with 5% roughly 15 years ago, says Jennifer Purcell, an associate dean overseeing the hospitality and service curriculum. In the past six years, the Culinary Institute has added customer-focused courses, including one on brewed beverages and one on advanced serving. This year, 350 students completed the course work, she says.”

And, as noted earlier, it isn’t just anyone who is waiting on the rich and famous: it’s those graduates who (or whose parents) have spent north of $200,000 in the past four years so they could get comfortable jobs:

Many of the servers at Eleven Madison are recent grads of the Culinary Institute, Cornell, University of Pennsylvania and Harvard. To attract young talent, Mr. Guidara says, the restaurant cultivates a teaching atmosphere, with events such as a weekly “happy hour” course on cocktails and wine often taught by experienced servers on staff. “It’s hard for us to keep our staff from coming in three or four hours early,” he adds. “They are not just here for a job; they give themselves fully.”

 


 

Several servers who have moved from Eleven Madison Park to more casual restaurants have instituted a similarly professional atmosphere, he adds. A networking group called the Dining Room Collaborative began in New York in 2013 to foster education and a sense of professionalism among wait staff at fine-dining establishments. The idea is to make server “a sexy dining-room job,” says Anthony Rudolf, the group’s co-founder and former general manager at Per Se, in New York.

 

Celia Erickson, a 24-year-old server at Eleven Madison, has an undergraduate degree in hospitality from Cornell University and completed a yearlong wine and beverage program at the Culinary Institute of America (where her father is provost). When starting at Eleven Madison Park last summer, she shadowed kitchen staff as part of her training and had an entry-level server role. She says she has gained insight into managing a top restaurant. “My first two months, it was really hard for me. I spent five years in school and now I was waiting tables,” she says.

So while we salute this “upwardly mobile” recovery in 6 figure-earning waiters, we wonder what will happen when the day comes that the patrons of such ultra-exclusive establishments as Eleven Madison can no longer afford $60 steaks and $20 truffle fries. Because as hard as we try, we fail to imagine just what portable and marketable skills America’s nearly 11 million waiters will offer when the time comes to move on (aside, of course, for any insider trading “chat rooms” the Dining Room Collaborative may secretly unleash upon an unsuspecting world).

But here we go again: concerned about the future in a world when clearly only the here and now matters.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/zScyf9T1-HQ/story01.htm Tyler Durden

India’s Invincible Love Story With Gold

Despite the government’s ongoing efforts to cut gold imports – aimed at closing a widening current account deficit among other status-quo-questioning factors, the following brief clip from Bloomberg TV sums it all up perfectly – For this country of over one billion, “Gold is, was, and always wlll be… money.” And now, following import bans and higher taxes, the government is considering restrictions on the holiest of holies – wedding gifts, and “legislating against love.”

 

By trying to discourage gold-buying, India’s government is trying to roll-back centuries of tradition (“and an abiding love for the world’s only enduring currency”) and has created a major black-market for the precious metal…

 

 

 


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/_vabOXYY7bg/story01.htm Tyler Durden

India's Invincible Love Story With Gold

Despite the government’s ongoing efforts to cut gold imports – aimed at closing a widening current account deficit among other status-quo-questioning factors, the following brief clip from Bloomberg TV sums it all up perfectly – For this country of over one billion, “Gold is, was, and always wlll be… money.” And now, following import bans and higher taxes, the government is considering restrictions on the holiest of holies – wedding gifts, and “legislating against love.”

 

By trying to discourage gold-buying, India’s government is trying to roll-back centuries of tradition (“and an abiding love for the world’s only enduring currency”) and has created a major black-market for the precious metal…

 

 

 


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/_vabOXYY7bg/story01.htm Tyler Durden

Italy’s Pitchfork Movement Slammed For “Delirious” Nazi-Like Comments

Italy’s anti-austerity Pitchfork movement, who described Italy as being “enslaved by wealthy Jewish bankers,” has come under fire for “shamelessly recall[ing] a historical period characterised by death, violence and denial of the most elementary rights.” The nation’s Jewish community, writing in La Repubblica, said the Pitchfork leader’s remarks demonstrate a “deeper sense of discomfort” fuelled by “the most violent and grimmest anti-Semitic stereotypes”. Despite Italian stock and bond markets surging to multi-year highs, IB Times notes that mass demonstrations continue to rile the company’s economy as Pitchfork followers demand the total removal of the ruling political class.

 

Via IB Times,

Italy’s Jewish communities have hit back at the spokesman of the anti-austerity Pitchfork movement, who described Italy as being “enslaved by wealthy Jewish bankers”.

 

The Pitchfork protestors’ spokesman, Andrea Zunino, who made the anti-Semitic comments, represents thousands of demonstrators who took to the streets in towns and cities across Italy to voice anger at austerity measures.

 

Renzo Gattegna, representing the Jewish community, said the words were “delirious”.

 

“[Those words] shamelessly recall a historical period characterised by death, violence and denial of the most elementary rights,” he told daily La Repubblica.

 

Conspiracy theories regarding Jews and banking were popular during the rise of National Socialism and the Nazis.

 

Earlier, Zunino had claimed: “We want government resignation. We want sovereignty over Italy which is now the slave of bankers, like the Rothschild: it is odd that five or six among the world’s richest people are Jews.”

 

The Pitchfork movement, which started with a loose group of Sicilian farmers concerned about rising taxes and cuts to agricultural state funds, has evolved into a nationwide umbrella grouping of truckers, small businessman, the unemployed, low-paid workers, rightwing extremists and football supporters.

 

Zunino cites Hungary’s controversial premier Viktor Orban, whose government has been accused of being weak in fighting rising anti-Semitism, as his role model.

 

But Gattegna said the Pitchfork leader’s remarks demonstrate a “deeper sense of discomfort” fuelled by “the most violent and grimmest anti-Semitic stereotypes”.

 

 

Thousands of Pitchfork demonstrators, riled by the country’s struggling economy, have demanded the total removal of the ruling political class, as well as calling for tax cuts, lowered fuel prices, and dumping the euro.

 

Mass demonstrations threw some Italian cities into chaos on Monday with police officers using teargas on protesters who had been throwing rocks and bottles at the headquarters of Italy’s tax collection agency.

 

Roadblocks, demonstrations and sit-ins continued from Milan to Bari in the south.

 

Shop-owners were reportedly threatened by demonstrators to either close their stores and join the protest, or face violence.

Of course, we have discussed the rise of social unrest and its linkages to austerity in the past but perhaps it is the huge gap between markets and high earner wealth and the struggling-with-record-unemployment working class that has fuelled the problems in Italy to this point.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/y4HF712PNAk/story01.htm Tyler Durden

Italy's Pitchfork Movement Slammed For "Delirious" Nazi-Like Comments

Italy’s anti-austerity Pitchfork movement, who described Italy as being “enslaved by wealthy Jewish bankers,” has come under fire for “shamelessly recall[ing] a historical period characterised by death, violence and denial of the most elementary rights.” The nation’s Jewish community, writing in La Repubblica, said the Pitchfork leader’s remarks demonstrate a “deeper sense of discomfort” fuelled by “the most violent and grimmest anti-Semitic stereotypes”. Despite Italian stock and bond markets surging to multi-year highs, IB Times notes that mass demonstrations continue to rile the company’s economy as Pitchfork followers demand the total removal of the ruling political class.

 

Via IB Times,

Italy’s Jewish communities have hit back at the spokesman of the anti-austerity Pitchfork movement, who described Italy as being “enslaved by wealthy Jewish bankers”.

 

The Pitchfork protestors’ spokesman, Andrea Zunino, who made the anti-Semitic comments, represents thousands of demonstrators who took to the streets in towns and cities across Italy to voice anger at austerity measures.

 

Renzo Gattegna, representing the Jewish community, said the words were “delirious”.

 

“[Those words] shamelessly recall a historical period characterised by death, violence and denial of the most elementary rights,” he told daily La Repubblica.

 

Conspiracy theories regarding Jews and banking were popular during the rise of National Socialism and the Nazis.

 

Earlier, Zunino had claimed: “We want government resignation. We want sovereignty over Italy which is now the slave of bankers, like the Rothschild: it is odd that five or six among the world’s richest people are Jews.”

 

The Pitchfork movement, which started with a loose group of Sicilian farmers concerned about rising taxes and cuts to agricultural state funds, has evolved into a nationwide umbrella grouping of truckers, small businessman, the unemployed, low-paid workers, rightwing extremists and football supporters.

 

Zunino cites Hungary’s controversial premier Viktor Orban, whose government has been accused of being weak in fighting rising anti-Semitism, as his role model.

 

But Gattegna said the Pitchfork leader’s remarks demonstrate a “deeper sense of discomfort” fuelled by “the most violent and grimmest anti-Semitic stereotypes”.

 

 

Thousands of Pitchfork demonstrators, riled by the country’s struggling economy, have demanded the total removal of the ruling political class, as well as calling for tax cuts, lowered fuel prices, and dumping the euro.

 

Mass demonstrations threw some Italian cities into chaos on Monday with police officers using teargas on protesters who had been throwing rocks and bottles at the headquarters of Italy’s tax collection agency.

 

Roadblocks, demonstrations and sit-ins continued from Milan to Bari in the south.

 

Shop-owners were reportedly threatened by demonstrators to either close their stores and join the protest, or face violence.

Of course, we have discussed the rise of social unrest and its linkages to austerity in the past but perhaps it is the huge gap between markets and high earner wealth and the struggling-with-record-unemployment working class that has fuelled the problems in Italy to this point.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/y4HF712PNAk/story01.htm Tyler Durden

Guest Post: Local Perceptions And Bitcoin’s Future In Singapore

Submitted by Keith Hilden, Squawkonomics

Squawk Walk Singapore: Local Perceptions and Bitcoin’s Future in Singapore

I have just returned from a very enjoyable trip to Singapore, in which our goal was to determine the sentiments and level of knowledge people had about Bitcoin in order to better determine Bitcoin’s future in Singapore. That journey took me to the pulsating central business district of a vibrant Singapore, traditional neighborhoods completely recast in the face of new immigration and rigorous central planning, and the newcomer immigrants and permanent residents where languages like Thai and Japanese punctuate the linguistic air of Singapore accentuated English. What we found out about Bitcoin sharply contrasted with that of what we learned about Bitcoin in Taiwan.

 

Bitcoin has a future here in Singapore, but it is a future that inevitably will be co-opted by central planning and control. The majority of locals who did not have the best sentiments regarding Bitcoin cited the lack of central control, ironically the reason in other countries why Bitcoin enjoyed its meteoric rise. Bitcoin is expected to be pilloried with payment gateways and other payment process implementation mechanisms to streamline the Bitcoin protocol into a fashion that the locals are familiarized to and prefer- a robust payment method with savings applications that is guaranteed by an actual organization against loss. Look no further than this lagging indicator, taken around the Promenade of the central business district overlooking the Marina Bay Sands casino, that Bitcoin’s future in Singapore is a co-opted system run on the familiar rails of global multinational corporations.

Source: Squawkonomics

Bitcoin’s culture in Singapore seems set in the trajectory of government involvement and control, far different than the cryptophile tech savvy liberty proponents calling for a much different future of decentralization, individualism, and confidence through peer-reviewed transaction confirmations. Indeed, it appears that Bitcoin is headed for a schism in how governments and populations in different countries wish to administer and implement Bitcoin in their own countries, resulting in strange family gatherings of statism and libertarianism driving Bitcoin’s future across various countries in the world. The big picture is an unfolding dynamic of converging discordant forces of libertarianism and statism at the crux of a grand showdown, as the battle lines for control of Bitcoin are drawn in places like Singapore, Germany, and China.

Singaporeans we talked to seemed to prefer government control over Bitcoin due to their perception of government being able to control price fluctuations and guarantee against loss. However, when asked if they would accept an independent organization guaranteeing Bitcoin transactions, most of the Singaporeans we talked to would also be fine with that. Almost all Singaporeans we talked to were not satisfied with the current Wild West status quo they perceived as a downfall to Bitcoin’s development.

Singaporeans we talked to as a whole expressed a rock-solid confidence in their government’s ability to guarantee the financial system, banking system, and the stability in the Singapore dollar. Singaporeans also questioned the need for Bitcoin when there was a plentiful array of payment methods around Singapore. Very few Singaporeans saw Bitcoin in the light of an advantageous vehicle in which to store savings, and most cited volatile fluctuations in the Bitcoin price for that reason.

Singaporeans further were not clear what was backing Bitcoin and thus were not clear as to how Bitcoin’s price could be so high. However, when the US came into conversation, the conversation veered many a times to the US money printing by Ben Bernanke, and the inflation and debt arising from that. Some of them had even likened Bitcoin to the US dollar, in the sense they felt nothing was backing either of them, and had no guarantee behind it. However, many Singaporeans spoke of US monetary and economic problems as if from a different part of the world that didn’t impact them in the slightest.

In comparison between what we learned in Singapore and Taiwan:

#1 People in Singapore had a drastically lower concern about cyber security with Bitcoin than did people in Taiwan.

#2 People in Singapore trusted the government to guarantee the financial and monetary system much more than people in Taiwan did. No one in Taiwan explicitly said they didn’t need Bitcoin due to confidence in their government.

#3 People in Singapore were at the same time more willing to try Bitcoin out, while people in Taiwan were much more conservative and cited the need to limit their exposure in Bitcoin and use it from arm’s length.

#4 Knowledge about Bitcoin in Singapore was remarkably higher than it was in Taiwan.

And for a fascinating insight on how people in Taiwan view Bitcoin, check out our Squawk Walk Taipei from last week:


    



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