Was Marx Right?

Cramer is not your friend.

Jim Cramer wants Americans to pay the reduced principle on the back of your housing loan. He doesn't care about the middle class!
Jim Cramer wants Americans to pay the reduced principle on the back of your housing loan. He doesn't care about the middle class!

Marx Was Right

Communism, the system that grew out of the thought of Karl Marx failed. But that does not mean that Marx may not be right regarding the predictions he made about "capitalism". I am not yet 100 percent positive that Marx was right. But if the middle class doesn't get some help and we fall into the mother of depressions, he will have been proven right. Karl Marx was a smart economist. Yes, the resulting communistic form of government that resulted from his views failed, and was a failure. But Marx predicted exactly what happened in this credit crisis and economic meltdown. He was correct regarding the global economy and the wealthy class's need for new markets, free trade, a new world order, ie international wealth dictating governmental action.

But most had believed that downward pressure on wages that Marx predicted would not come to pass. Most believed that the middle class, which Marx never really saw in his time, would keep us from falling into capitalist failure. But many have argued that the middle class, which has been knocked to its knees, is tapped out.

Capitalists certainly need to realize that they will not have much of an economy without a strong middle class. I do not hear that concern for the middle class on CNBC. All I hear on CNBC is a sob story for the rich. Wake up CNBC morons! Most commentators on CNBC believe that all people need is for credit to flow again and everything will be hunky dory. WRONG! People in the middle class are tapped out. They just don't get it.

We have supply problems with credit not being furnished, to be sure. But we also have demand destruction, I repeat, demand destruction because people no longer want loans they cannot afford.

The European and Asian nations engineered a strong middle class. Of course that brings about economic imbalances. But the free market in the United States has spiraled into a lender's market. People in China make things, and people in the United States lend, borrow and sell each other insurance. While it is true that people in the early 1990's had equity in their houses, in the face of price declines they still had the power economically to ride out the storm in a slave like manner, being slaves to their mortgages.

As Americans got poorer and house prices continued to rise in the late 1990's and in the early turn of the century, there was only one way the Bush administration thought of to get us out of the dot com crash. That was to create a war in Iraq and a borrowing binge to pay for it. This was planned before 9/11. And it culminated in the government sponsored ponzi scheme that was caused by the introduction of mortgaged backed securities, pools of bad mortgages dressed up to look like good mortgages, and sold throughout the world. Instead of a garden variety recession, we have a credit crisis and the financial system is threatened. All of this occurred because Greenspan wanted to pump the economy to pay for the oil war in Iraq.

But the problem now is, we still don't make anything, and the few industries that produce anything aren't selling them because they are inflated in price in this time of deflation. Americans are poorer without down payments for cars or houses. And on top of all that we have a massive debt crash as well, caused by the Bush administration's reliance on debt to fuel a bogus lying murdering administration

and middle east wars. The neocons and their wall street buddies have committed a giant fraud upon the American people and war crimes abroad.

The government, then, is still trying to screw the middle class. Instead of putting more money into the hands of the middle class, responsible for buying most of the products that the world makes, the rich bankers and their government lackeys want to rip a pound of flesh out of the middle class again and again.

I am so disgusted with this cabal of bankers and their closest friends, the oil and military industrial complexes. My warning is this, don't buy a house with credit under these terms, rent until either the crisis brings Wall Street to its knees, or the government helps the middle class. Rent and invest the rest, and that very carefully!

If Marx was right it will be because the greed of the bankers and the central banking system that knows no bounds. And the ignorance of the American middle class seems to have no boundaries either. We will fall for the banker scams against us over and over again. Lets hope this time I am wrong.

I am not alone concerning the low interest rate trap!

While I have been formulating my views about the interest rate trap that awaits those who buy at low rates artificially crammed down by the federal government, others have come to the same view. The link below will direct you to the Irvine Housing Blog where there are nifty charts about how this downward pressure on house prices will continue. My concern is that as this attack on the middle class economic well being intensifies, the greater chance we have of severe recession or even a deflationary depression.

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Was Karl Marx Right? 11 comments

GaryLeeVilleneuve profile image

GaryLeeVilleneuve 7 years ago from Cheyenne

"If Marx was right it will be because the greed of the bankers and central bank knows no bounds. And the ignorance of the American middle class seems to have no boundaries either. We will fall for the banker scams against us over and over again. Lets hope this time I am wrong. "

I couldn't agree more. Thanks for publishing this hub, sir. Education and public dialoge are critical right now.


bgamall profile image

bgamall 7 years ago from Las Vegas, Nevada Author

Yes if people would opt out of the financial system and put their cash or gold underground, ie away from banks, it would weaken the banking system and perhaps weaken the ability of the United States to empire build. The Bush types cannot borrow too much for war or else the credit rating of the United States will be in jeopardy.


estopher profile image

estopher 7 years ago from Bainbridge, Ohio

I agree Marx was more intelligent and his ideologies are not as far fethced as the government that tried to employ his philosophy. However, I think we are uneducated as a populace in the Marxist train of thought, and we are headed in a direction consistant with his ideologies. I feel this is dangerous terrain.


bgamall profile image

bgamall 7 years ago from Las Vegas, Nevada Author

Estopher, I think we have to be careful about just what is going on with the banks. Communisim is a permanent nationalization of industry. Fascism is industry control of government and of the treasury. So far we are experiencing a fascism, as the big banks and the hedge funds are in control. I would not be adverse to a TEMPORARY nationalization, if it would limit the raiding of the treasury of the USA. The bondholders of the banks would have to take a haircut, and the pain would be shared with them. So far, the hedge funds are resisting. Look how they howled about the Chrysler bankruptcy. Anyway, I have more at http://www.dontpaycreditcards.com   


Amelia Blick profile image

Amelia Blick 5 years ago from UK

Thank you for putting together a well written article that's coherent, sensible and lucid.


bgamall profile image

bgamall 5 years ago from Las Vegas, Nevada Author

Thank you Amelia. In my better moments I do try for lucidity!


Frank 5 years ago

Over 130 million people have been murdered because of the inevitable despotism that arises from giving the political "elite" the power that well meaning but out of touch "academics" believe is necessary to create a Marxist utopia. When we you learn? If you think that the current world economic situation is caused by greedy capatilists then you have been duped by the "useful idiots" of the media. God save us.


bgamall profile image

bgamall 5 years ago from Las Vegas, Nevada Author

Frank, I never said Marx's solutions were correct, only his analysis. Likewise Ron Paul has good analysis sometimes but his solutions are incorrect. Glass-Steagall worked for years to keep the banks at bay. Then the repeal ushered in the time of securitization of crap loans, and the ponzi housing bubble was created. Trillions were stolen from main street. It is a form of capitalism because the profits are privatized, and the losses are socialized. Only that Koch Brother lover, Glenn Beck, would say that was communism.


bgamall profile image

bgamall 4 years ago from Las Vegas, Nevada Author

Well said, Tubbs.


Josak profile image

Josak 4 years ago from variable

tyInteresting, yes anyone who has not read Marx is badly missing out, as far as the world changing significance of a text there is the bible (which whether you are a believer or not shaped human history) and Marx/Engels whose texts completely changed the world forever in the way we see our class system, the way we treat our poor and the way we judge what a nation has to be. There are none more foolish than those who criticize what they haven't read.


bgamall profile image

bgamall 4 years ago from Las Vegas, Nevada Author

Thank yo Josak. Certainly he had understanding of the ills of society. I don't think he necessarily had the answers, but he wrote when society was not concerned with it's duty to help poor, sick and old. I hope the libertarians don't take us back to those days.

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