How Will Corporate America Ever Survive Without the Export-Import Bank?

by: the Common Constitutionalist

To listen to the wails from Democrats and the socialistic “financial media,” you’d think business will cease to exist in America. Certainly American corporations will no longer be able to compete on a global scale without the help of our government.

You see, the big meanie conservative Republicans in the House allowed the Export-Import bank authorization to lapse – so now, other than previously agreed-upon commitments, the bank is no more.

Last week General Electric, one of the largest corporations on the planet, “announced it would create 500 jobs in France instead of the United States because it can no longer access the kind of financing once offered by the now shuttered agency.”

“Congress left us no choice when it failed to reauthorize the Ex-Im bank this summer,” said John Rice, G.E.’s vice chairman. You do have a choice Mr. Rice – but I’ll address that in a bit.

The liberal Fiscal Times felt the need to add: “but G.E.’s announcements suggest that more companies may start blaming Congress for destroying American jobs.”

Guess they got that right out of the Democrat playbook. It is widely known that the spineless Republican leadership can’t stomach criticism. But to that, my man Ted Cruz said: “I understand the crony capitalism is an easier way to do business, simply getting politicians in Washington to carve out billions in favors for giant corporations, but it’s not what Congress should be doing.” read more

America – A Bastion of Socialism

By: the Common Constitutionalist

“Well, this is it. The last bastion of pure capitalism left on Earth. Buy low, sell high. Fear? That’s the other guy’s problem. Nothing you have ever experienced will prepare you for the absolute carnage you are about to witness. Super Bowl, World Series – they don’t know what pressure is. In this trading placesbuilding, it’s either kill or be killed. You make no friends in the pits and you take no prisoners,” Louis Winthorpe III – from the classic 1983 movie Trading Places.

Winthorpe (Dan Aykroyd) was describing to his partner Billy Ray (Eddie Murphy – when he was still funny), the atmosphere he was to encounter in the trading pits of the Commodities Exchange in New York City. How oddly appropriate that this “bastion of pure capitalism” was housed in the World Trade Center.

This is what we think of when we envision Wall Street. This is what we’ve grown up watching – Quintessentially American capitalism.

But of course that was during the dark years of Reaganomics and Trickle Down. Oooohhh! Just think thinking of that decade gives socialists and weak-kneed liberals the vapors. read more

Thomas Piketty – The Latest Leftist Hero

by: the Common Constitutionalist

All this talk by the president of “Income Inequality” seems to be quite well-timed.

It seems to coincide quite nicely with the blitzkrieg of promotion regarding the book “Capital In the Twenty First Century”, by French economist Thomas Piketty. Who better to attempt to trash the capitalist system than a French socialist and obvious Keynesian.

In his book, Piketty argues that worsening income inequality is an inevitable outcome of free-market capitalism where a select few get richer – widening the gap between the haves and have-nots.

There’s only one problem with Piketty’s theory and it is his assumption that we actually have a free market. Of course to him, anything that isn’t a top-down centralized authoritarian socialist state would be considered a free market.

But we don’t have a free market. We have a skewed system – some call it crony capitalism – I call it crony corporatism. Whatever you call it, it bears little resemblance to a free market. read more

Profiting From Food Stamps

by: the Common Constitutionalist

 

When one thinks of the poor in America, one might think of the welfare system, or government (section 8) housing, or maybe the Supplemental Nutrition Assistance Program (SNAP). You know, food stamps.

 

Actually, it’s been quite a while since I’ve seen anyone at the grocery store pull out a paper “food stamp”. Now it’s the EBT (Electronic Benefits Transfer) card. You’ve seen it, even if you haven’t realized. The EBT card mimics a standard credit card.

 

So that’s what may come to mind when reflecting on America’s less fortunate. It certainly wouldn’t be J.P. Morgan, Xerox or eFunds Corporation.

 

Now why in the world would anyone think of these three large corporations in relation to the poor?

 

Well, you see, the federal government pays for the food stamp program, but it does not administer it.

 

Have you ever heard the term public/private partnership? Well, this is a classic example of its real-world application. It also sounds better than what it is; crony capitalism.

 

These three corporations hold the EBT contracts for the various states. J.P. Morgan has 24 state contracts alone. In other words, the government pays J.P. Morgan as the administrator of SNAP funds in almost half the states.

 

Have you heard that dopey saying, mostly uttered by socialists and other leftists: “they’re getting rich on the backs of the poor”?

 

Logically, that’s an impossibility except in this case, where corporate executives and investors are doing just that. It’s an ingenious scam and here’s how it works.

 

J.P. Morgan wins state EBT contracts. It in turn lobbies Congress and the White House. It pays particular attention to those of the Department of Agriculture and members of Congress that oversee the department’s budget.

 

Maybe Morgan might donate money to a politician’s election or reelection campaign, similar to the almost $1 million in donated in 2008 to the Obama presidential campaign. It’s just coincidental that shortly after taking office in 2009 Obama signed the “American Recovery and Reinvestment Act”. Buried in the Bill was a 13% increase in EBT benefits and also broadened acceptance into the program. In other words, allowing many more to enroll in SNAP.

 

My guess, you like me have heard the ads promoting food stamp enrollment. As more and more unfortunate Americans are forced into the EBT program, J.P. Morgan’s profit increases and investors reap the benefits. Investors such as Obama, which has invested upwards of $1 million.

 

They are the number 3 campaign contributor to Senate Agriculture chair Debbie Stabenow.  Sen. Jay Rockefeller has invested over $50 million in J.P. Morgan.

 

Don’t get me wrong. I’m all for investment profits. Just not rigged profits. And that’s what they are. Companies like J.P. Morgan reap huge profits and increased stock value by manipulating political hacks. At the same time these political hacks reap profits by investing in the same companies they promote. That’s crony capitalism.

 

And with more and more people enrolling and the addition of the WIC (Women, Infants and Children) program into the EBT system, the circle of profits and corruption will continue unabated.