Darlings enriched by latest speculative tech bubble oblivious to the coming financial tsunami
February 19, 2016
Justin Keller, founder of startup Commando.io, a website dedicated to the Internet of Things, recently wrote an open letter to the mayor and police chief in San Francisco complaining about the homeless.
During his transit to work Keller endures “people sprawled across the sidewalk, tent cities, human feces, and the faces of addiction. The city is becoming a shanty town… Worst of all, it is unsafe.”
While gallivanting around town and dining at chic restaurants with his parents, Keller says his family is often “approached for money and harassed” by the mentally ill and drug addled.
He demands government tackle the problem. “What are you going to do to address this problem?” he asks officials.
“The residents of this amazing city no longer feel safe. I know people are frustrated about gentrification happening in the city, but the reality is, we live in a free market society. The wealthy working people have earned their right to live in the city. They went out, got an education, work hard, and earned it. I shouldn’t have to worry about being accosted. I shouldn’t have to see the pain, struggle, and despair of homeless people to and from my way to work every day. I want my parents when they come visit to have a great experience, and enjoy this special place.”
The visible homeless are only the ugly face of a much larger problem Keller is not addressing.
In 2015, according to the Joint Venture Silicon Valley Institute for Regional Studies, there were more than 800,000 people in the Bay Area living below the poverty level. Alameda County’s poverty rate was 12.9 percent, Contra Costa County was 10.8 percent and Santa Clara County was 10.5 percent, according to the study.
The 12 percent benchmark was reached during the so-called Great Recession that began in 2009, seven years ago. The situation is only worsening.
The recession—actually a depression—was engineered by the Federal Reserve and the financial class and the “great vampire squid wrapped around the face of humanity,” as Matt Taibbi characterized Goldman Sachs.
This parasitical class, in league with government, specializes in producing speculative financial bubbles that enrich the elite while undermining the larger economy. It is directly responsible for the slow destruction of the middle class.
Transnational corporate brokered “free-trade” deals have added to the misery by sending relatively high-paying manufacturing jobs to third world hell holes in Asia and Mexico. The bastard child of Bill Clinton’s NAFTA, the the Trans-Pacific Partnership (TPP), will continue this process and also allow corporations to dictate the details of future trade deals by removing Congress from the treaty process.
The Ponzi scheme economy fostered by the Federal Reserve is possible due to nearly worthless money printed out of thin air. This funny money has flooded financial institutions lorded over by the great vampire squid through so-called quantitative easing. This fake liquidity and lending is now in the process of spiraling out of control and will soon result in a monumental market crash. After this happens the lords of financial class will once again demand the long beleaguered American worker bail-out “too big to fail” banks, but it will not be as easy this time around.
Blindsided Keynesians argue “easy money” produced by the Federal Reserve will result in a reduction of unemployment. Currency devaluation does in fact create jobs—for waiters, waitresses, low-paid clerks and other service economy workers—while undermining the gains of higher skilled laborers who have their wages cut or stagnate against a tidal wave of artificially created inflation.
Bubble economics is responsible for the success Justin Keller enjoys. Keller, however, may soon be a waiting tables if the current trend continues.
In 2015 the IPO market came to a screeching halt and a full 60% of IPOs that went public in 2015 were trading well below their IPO price.
Big money “tourists,” however, for now, are pumping money into Silicon Valley startups, but as the economy falters this source of financing will inevitably dry up. The speculative dot-com bubble crash of the late 1990s is set for a repeat and the Justin Kellers of the world are oblivious.
This article was posted: Friday, February 19, 2016 at 11:12 am