Wednesday, October 26, 2016

Work harder so speculators can get more

Click here to access article by Pete Dolack from Systemic Disorder.
Class warfare is poised to reach a new milestone as this year’s combined total of dividends and stock buybacks by 500 of the world’s largest corporations will exceed US$1 trillion.

So large is that figure that, for the second year in a row, the companies comprising the S&P 500 Index (a list of many of the world’s biggest corporations) will pay out more money in dividends and stock buybacks than the total of their profits. Yes, times are indeed good for speculators. Not so good for employees — you know, the people who do the actual work — whose pay is stagnant or declining so that those at the top can scoop up still more.
Dolack once again explains how certain aspects of capitalism works in today's world. Today he focuses on stock buybacks that drive up stock prices. This phenomenon appears to start with the privately owned and controlled central banks and their recent policy of creating money on their computers which they refer to as "quantitative easing". It's a convoluted process, and I'm  not sure I understand it.