I was writing a comment on pgrundy's hub "Radical Money Saving Strategies You Can Implement Today"

Anyway she brought up the analogy of the poker table theory of economics. Long story short everyone can stay in the game as long as they are borrowing money from the winner but once the winner decides to take his winnings and go home. Well the losers are left with nothing.

It is this very theory, is why I don't believe there is an actual financial crisis for the have nots. What I think we have here is a financial crisis for the Haves. The 2 percent of the worlds population have successfully culled the financial resources of everyone else in the world. This reality has caused there profits to plummet, because there is nothing left to take. So what you see now is a period of Deflation.

Deflation is only bad for the haves (and only once the have nots figure out what is going on) for the rest of us that are the have nots well it is actually a good thing. But, if you look not only our Government in the United States, but every government in the world are trying to stop deflation. Why?

Think for a minute since 98% percent of the world own nothing, then nothing they have is losing value. Therefore, the only thing they have which is currency is gaining value.

This creates a very scary moment for the haves, for this is period in which the have nots actually have buying power and that scares the hell out of them.

That is why there is a call to action to stop this deflation. Now, inflation is what the haves like, they like to see the value of their holding increase.

They have learned over the years that if they increase their value to fast and make currency worthless, revolts happen and they lose their wealth. So for the Rich the best case scenario is low to moderate inflation. Which is what most governments work to achieve in order to best serve their masters.

So, back to the Poker Table. Why is the average person concerned about this financial crisis. Well as best I can tell the propaganda machine has successfully convinced a large majority into believing their interest are in fact the same as the rich. They are not!

So what is going on in the world? I call it the Fallacy of Ownership. I hear on the news how so many people are losing their homes.

I find this impossible to believe that more than maybe 100 people in this country have lost their home in the last year. You say What!!!! No, you say, "people are losing their homes I know so cause I heard it on TV." Nope, no one is losing their home. Their Savings yes their homes no.

I state that the banks have meerly retaken possession of property they own! That is correct the banks, which there are only a handful left own 95% of all property in the United States. People losing their home is a misnomer used in order to perpetuate the Fallacy of ownership.

I have seen this cycle twice in my life and I truly believe what we are seeing is a land grab. It is a buy low sell high strategy of the ultra wealthy.

Think about it all wealth is ultimately derived from the land. What ever comes from the land plus the value of labor added equals total wealth.

Unfortunately in this equation labor is the cheaper part of the equation. The resource is always the bulk of the value. So how is this a land grab?

So, during inflation the value of land increases (Remember land is fixed value short of a massive volcanic eruption their isn't anymore coming) people buy land plus improvement (the House which we have established is the least valuable part of the equation) by using a mortgage on the part which they cannot afford which is anywhere from 80 to 100% of the price.

Then the value increases, and the land is sold and purchased in the same way any number of times (none of this matters because land is fixed and the bank paid currency for the land so the percentage of ownership of the bank is never altered only the value of the currency).

So now deflation comes and the 0% to 20% that each successive buyer placed into the land is wiped away because the purchasers only ever have currency never anything of actual value.

The bank retakes the property and claims a paper loss. We know this is a paper loss as the percentage of wealth that is controlled is a fixed value. Now the bank owns 100% of the land. Now they sell the land, and finance the purchase and repeat the cycle over again. Taking in more and more of each successive buyers currency through down payments and interest.

Now after a few of these cycle all of the money is milked out of the system. That is why you see most of the bailout money going to help first time buyers and not people who got foreclosed on.

See the only new money or the money to be had, is in this usually younger crowd who have not yet given away the fruits of their labor. That is the Fallacy of Ownership in the housing market.

This Fallacy is carried forward in the automobile market as well. As all cars purchased from the manufacturer by the dealer are purchased on credit; therefore the bank owns close to 100% of all automobiles.

You buy a car from the dealer whether you pay cash or credit the bank posts a profit. Now they prefer you to use credit. Why?

The bank posts an even bigger profit. The dealer works for the bank, because if the dealer gets you to use credit the bank lets the dealer keep more money on the sale.

So the best case scenario is you buy a car with a little down, and make payments for a year or two and lose your job. Why is this the best, you have to look at the break down.

They get the money from the dealer on his loan and all the principle back from the initial purchase. Next they get your down payment, then they get practically nothing but interest payments for the first two years.

Then wholesale the car for a return of nearly 100% profit as they got the bulk of the principle from the dealer. This cycle continues until everyone gives over their money.

The best part of this is they financed this empire on the workers dollars that is correct they used our deposits in the bank to finance this heist.

Lastly the stock market Fallacy of Ownership. First and foremost both the stock market and the commodities market were created to create liquidity between the owner class.

This is done by using our money to finance their enterprise and enhance their ownership stake by letting you believe you are a part owner and have a vested interest.

We have already established that the top 2 percent own 95 % of all the wealth. What does that mean all that 401k money all the personnel savings we have all been saving for all that crap the TV shoves down on us is only 5% of the pie.

Pretty much nothing. What is worse our money paid for close to 100% of the operation, but our ownership is only 5 percent how the hell is that?

Let us say that TheMoneyGuy is going to start an enterprise. For arguments sake let's assume I am part of the ruling class as this scenario is different if a worker takes his company public (trust me these guys get screwed even Bill Gates got taken to the cleaners by the "Real wealthy" taking his company public)

OK picture this sitting in a private club me and friend of mine of the ruling class get an idea on how to make a fortune on apartment buildings. But we say to ourselves this is a great idea, but I don't want to risk my own money just in case it tanks. Plus, we don't want to be responsible if it catches on fire and people are hurt.

So we get our lawyers to draw up the corporation articles and get a group of our friends (there are only about 100 people in this group in the United States to give you an idea on how exclusive this club is) to be the board of directors. Now we have our minions at Lehman Brothers push our crappy stock onto their customers. Now what does this mean.

Let's see, we just say we need 100 million dollars to build the apartments and run the corporation until it is profitable.

So we say 1 million shares represents 25% percent ownership (you see they dictate the numbers) then we sell them for 100 dollars per share and push them onto the public.

We write some press release and get everyone pumped up and excited and the shares sell in a day now we own 75%, we make all the decisions, and we get most of the profit.

You paid for the whole ball of wax and have no say whatsoever, as your ownership is through a mutual fund in your 401k.

So how does the bank get their piece of the pie? It is called the margin account. Unlike your house this takes a little longer since they cannot finance 100% they are limited to 50% but trust me they get it almost as fast.

So same thing happens they run the market up get you to put your money in then dump it down make margin calls you either pay them cash or they take your shares just like they car they don't care they already made their cut once in the Initial public offering.

The thing to remember is percent ownership just like land, and does not change only the value of the currency again the bank gets the same ownership but for less money plus interest.

So the TV tells you how bad it is, the companies lay off the employees, whatever the mechanism that happens the end result is the same you sell your shares out of fear or necessity, and give them to the owner class for pennies on the dollar. Think about it? Somebody is buying if you are able to sell.

That is the Ownership Fallacy the media, governemnt propaganda machine keeps pushing it at us, remember Clinton and Bush, both harping the American dream of home ownership. What they meant was the capitilast dream of getting it all.