Tuesday, September 17, 2013

Financial Armageddon is Building in the Shadows, And You Bear the Risk

From:  AlterNet 

by Ellen Brown, Web of Debt

Banking policies are perversely pushing self-destruction in the financial sector.

Increased regulation and low interest rates are driving lending from the regulated commercial banking system into the unregulated shadow banking system. The shadow banks, although free of government regulation, are propped up by a hidden government guarantee in the form of safe harbor status under the 2005 Bankruptcy Reform Act pushed through by Wall Street. The result is to create perverse incentives for the financial system to self-destruct. 

Five years after the financial collapse precipitated by the Lehman Brothers bankruptcy on September 15, 2008, the risk of another full-blown financial panic is still looming large, despite the Dodd Frank legislation designed to contain it. As noted in a recent Reuters article, the risk has just moved into the shadows:
[B]anks are pulling back their balance sheets from the fringes of the credit markets, with more and more risk being driven to unregulated lenders that comprise the $60 trillion “shadow-banking” sector.
Increased regulation and low interest rates have made lending to homeowners and small businesses less attractive than before 2008. The easy subprime scams of yesteryear are no more. The void is being filled by the shadow banking system. Shadow banking comes in many forms, but the big money today is in repos and derivatives. The notional (or hypothetical) value of the derivatives market has been estimated to be as high as $1.2 quadrillion, or twenty times the GDP of all the countries of the world combined. 

According to HervĂ© Hannoun, Deputy General Manager of the Bank for International Settlements, investment banks as well as commercial banks may conduct much of their business in the shadow banking system (SBS), although most are not generally classed as SBS institutions themselves. At least one financial regulatory expert has said that regulated banking organizations are the largest shadow banks. 

The Hidden Government Guarantee That Props Up the Shadow Banking System

According to Dutch economist Enrico Perotti, banks are able to fund their loans much more cheaply than any other industry because they offer “liquidity on demand.” The promise that the depositor can get his money out at any time is made credible by government-backed deposit insurance and access to central bank funding.  But what guarantee underwrites the shadow banks? Why would financial institutions feel confident lending cheaply in the shadow market, when it is not protected by deposit insurance or government bailouts? 

Perotti says that liquidity-on-demand is guaranteed in the SBS through another, lesser-known form of government guarantee: “safe harbor” status in bankruptcy. Repos and derivatives, the stock in trade of shadow banks, have “superpriority” over all other claims. Perotti writes:
Security pledging grants access to cheap funding thanks to the steady expansion in the EU and US of “safe harbor status”. Also called bankruptcy privileges, this ensures lenders secured on financial collateral immediate access to their pledged securities. . . .
Safe harbor status grants the privilege of being excluded from mandatory stay, and basically all other restrictions. Safe harbor lenders, which at present include repos and derivative margins, can immediately repossess and resell pledged collateral.
This gives repos and derivatives extraordinary super-priority over all other claims, including tax and wage claims, deposits, real secured credit and insurance claims. Critically, it ensures immediacy (liquidity) for their holders. Unfortunately, it does so by undermining orderly liquidation.
When orderly liquidation is undermined, there is a rush to get the collateral, which can actually propel the debtor into bankruptcy. 

The amendment to the Bankruptcy Reform Act of 2005 that created this favored status for repos and derivatives was pushed through by the banking lobby with few questions asked. In a December 2011 article titled “ Plan B – How to Loot Nations and Their Banks Legally,” documentary film-maker David Malone wrote:

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Tuesday, September 10, 2013

The State As An Attractor for Sociopaths


by Butler Shaffer

What the government is good at is collecting taxes, taking away your freedoms and killing people. It’s not good at much else.
                                                                                                                            -   Tom Clancy
In the science of chaos, “attractors” are operational principles around which turbulence and apparent chaos are harmonized. What the limited nature of our prior experiences dismisses as randomness or disorder, the study of chaos and complexity is revealing as deeper patterns of regularity. Attractors help to identify the dynamics by which complex systems organize themselves. Thus, it could be said that an earthquake fault line serves as an “attractor” for geologic forces in plate tectonics, just as river systems are attractors for water engaging in its ongoing relations with the forces of gravity. At a social level, an estate sale can be seen as an attractor for antique dealers; dumpsites as attractors for abandoned property; or hospitals as attractors for diseases. In marketplace economics, the pricing system is an attractor for buyers and sellers seeking to exchange property claims.
The study of chaos is helping us understand why all political systems are disruptive and destructive of life processes. Through this new science, we are discovering – contrary to Plato’s hubristic assumptions – that complex systems produce behavior that is both determined and yet unpredictable. Left to the playing out of the forces operating within and upon it, a complex system will spontaneously generate consequences that are implicit – albeit unpredictable – within it.
But we know that many people do not like a world that is unpredictable and indifferent to their particular interests. Thus, a business owner who is unable to effectively compete for customers in a free market, may seek to disrupt the order that does not accommodate his whims. He might begin by pursuing voluntary agreements with his competitors to reduce the pace with which they pursue their respective interests, a strategy that is rarely successful. When the voluntary approach doesn’t satisfy all industry members, he and many of his business rivals turn to the state to compel, by force, results unobtainable in the marketplace. My book, In Restraint of Trade: The Business Campaign Against Competition, 1918-1938, documents this politicization of the business system.
The state is almost universally defined as a system that enjoys a legal monopoly on the use of violence within a given territory. Despite all of the media hype, government schools conditioning, and other institutional propaganda to paint political systems as noble, morally principled agencies devoted to serving the general welfare, the state is capable of doing no more than this: compelling people – through violence and the threat of violence – to do what they do not choose to do, or to refrain from doing what they do choose to do. Like the subjugated and exploited proletariat of Animal Farm, increasing numbers of men and women read those opening words to the preamble of the Constitution – “We the People” – and discover the identity of “the people” who control and benefit from the system that was created.
If the state is defined in terms of its enjoying a monopoly on the use of violence, what is the character of people who would be attracted to the use of its violent tools and practices? What sort of people would be attracted to careers that gave them the arbitrary power to force others to their will; work premised on the imperative of obedience? It is almost amusing to see legislators conducting hearings on the problem of bullying in schools: I often wonder whether these politicians are projecting their own “dark side” forces onto others; using playground ruffians as scapegoats for the more widespread bullying that is the raison d’etre of politics. Or might these solons simply be trying to eliminate competition, in much the same way that local governments war with the street-gangs that violently dominate urban neighborhoods, a role to be monopolized by the state’s police system?
There is a continuum running between “sociopathic” and “psychopathic” behavior separating degrees of antisocial conduct. A Post Office mail clerk, or a receptionist at a DMV office, may not exhibit such traits. But what about state officials whose functions are to enforce some governmental edict or program? The man or woman who is prepared to initiate an act of punishment to compel obedience to a governmental mandate easily segues into the SWAT team member or police brute or one who tortures another. It is the appetite for ultimate power over others that drives such people. We have now reached that most vicious end-point on the continuum, the war system, where the indiscriminate killing of innocent people – many of them children – becomes justified by the psychopathic war-lovers on no more compelling ground than that they have the power to inflict death on a massive scale.
During World War II, allied forces engaged in war crimes every bit as vicious as those perpetrated by the defeated enemies. The Nazi psychopaths who ran death camps were matched by the allied officials who bombed such non-military cities as Dresden and Hamburg, and vaporized tens of thousands of civilians along with some U.S. military prisoners of war, in Hiroshima and Nagasaki. The nuclear bombing of these Japanese cities was done primarily to impress the Soviet Union, while erstwhile beautiful cities such as Dresden were leveled because, in the words of one RAF official, “we didn’t have any other cities left to bomb.”  The RAF Bomber Command chief, Arthur “Bomber” Harris, said, thirty years later, that he would do the same thing again if presented with the same choices. Such is the mindset of the psychopath!
If, as Randolph Bourne advised, “war is the health of the state,” those who are attracted to the exercise of violence over others can delude themselves to be health-care practitioners for a system at war with life itself.
No more than we would expect Mother Theresa to operate a brothel can we imagine advocates of peace and liberty to be welcomed into the management of the state. This is why Ron Paul was so persona non grata to members of the political elite. He wanted to reduce – perhaps even eliminate – the violent nature of the American nation-state. He was almost booed off the stage at a Republican gathering for suggesting that this country employ the “Golden Rule” as the basis for a foreign policy! He wanted to minimize that which attracts the sociopaths and psychopaths to the state: the opportunity to use ever-increasing levels of destructive violence against their fellow humans.

Wednesday, September 4, 2013

The New Economy, your ticket to security and freedom

by Melinda Pillsbury-Foster, MacPherson Investment Group, a Rebuild America Company




Never in history have a people around the entire world been faced with the potential for economic meltdown confronting us today. You will hear others say this. But what they tell you to do about securing the well being and safety of your family and community will be very different.

Here, we outline for you an approach which works, keeping you secure while at the same time providing the means for building a new economy, one which simultaneously allows you to get out, taking your capital with you, while facilitating the same effect for others. Doing so provides you with essential protection. There is strength in numbers.

Many believe they can follow the isolation strategy, given enough resources, but this conclusion stems from insufficient understanding of the facts and direction events are now taking.

This plan significantly reduces the power of those responsible for the problems we face. These investments save your capital while building an entry way into a very different future, both for Americans and people around the world.

The people who have designed the trap now confronting us have been referred to as Corporatists, Bankers, Multi-National Corporations, along with other identifiers. We call them Greedville because their absolute numbers are small, about the size of a town of 100,000. However, their impact on the world, is impossible to calculate.

These few, greedy, and conscienceless individuals, have destroyed nations, subjected millions to death through violence, starvation, and disease, brought the balance of nature to a precipice, and consumed the carefully saved earnings of generations of hard-working, decent, people.

The present Grid Economy is the business model originated by the folks of Greedville. It is designed to extract money from all of us in two ways.

How Greedville Profits

First, externalization of their costs of doing business was central to a plan which, as is true today, allows for the accumulation of vast wealth through misdirection and stealth. They do this by eliminating competition and by ensuring we pay their real costs of doing business.

What they practice is crony capitalism without a free market in sight.

As we see today, with the ugly, calloused, behavior of oil companies, it is very much in their business plan to cut their costs, externalizing the damage done to people and the environment. The same is true of the present producers of energy in any form along with multiple other industries.

Government, an extension of their corporate business model, enables these thefts.

Not only do they take no responsibility for the damage they do, they demand we subsidize them through the government for which we also pay.

Our monetary system has also become a source for predatory greed in a mind boggling number of ways. Why should government or corporations charge us for every transaction, every purchase, every exchange between people?

This began as small amounts which many of us overlooked. But greed begets more greed and they found ever more ways to increase what they take covertly.

Through our system of banking, and then moving on to every imaginable application of their business model, they enriched themselves. When new technologies approached the market which would end their ability to tap into our wallets these were opposed and sidelined.

New technologies, ones which take you and your money off the grid, becoming invested in the New Economy, are at the core of this strategy

Government has limited the options available to the rest of us, enforcing this through government fiat. This is why nuclear energy was foisted on us, instead of solar energy. How do you tap income from someone who is using the sun as their source for power? Eliminating options is another aspect of their approach to 'business.'

As your available options grow more limited, the amounts Greedville extracts rises. They know you have no choices left. Other clever cons were installed in their system as well. Tremendous effort goes into planning each of these by experts in systems analysis and economics. There were no accidents.

How This Happened

For Greedville's plan to work they needed to control what we believe.

The main stream media is an extension of public relations for Greedville. As most of us now realized, it is not a reliable and accurate source of information and news. Most of the major media have been owned by Greedville, and its governmental partners, for two generations.

Although the first successful American PR campaign was waged for the adoption of the Pledge of Allegiance in 1892 by a coalition of Nationalists, driven by ideology, managing public opinion started with Edward Bernays in the 1920s. Bernays' book, “Propaganda,” remains an early Bible for manufacturing public opinion for profit.

War is also a corporate tool. Organized, focused, violence is used both to manufacture public attitudes and acquire resources. Brave soldiers are dying for corporate profits, persuaded to risk their lives for the nation they love by people without conscience. These individuals are experts in the use of our honor, and love, to manage what we believe and what we will sacrifice for our beliefs.

In the past, men of conscience, who knew the truth, have tried to warn us.

From the blunt statements of Major General Smedley Butler, whose book, “War is a Racket,” pulled no punches, to retiring president Dwight David Eisenhower, with his eloquent final speech, January 17, 1961, on the Multi-National Corporations, and more recently with the personal narrative of John Perkins in his book, “Confessions of an Economic Hitman,” how military force supports policy is clearly illustrated. And today, Americans are learning how the militarization can be used to negate our Constitution and alter our relationship with America's law enforcement, both local and national. YouTube, and the Internet, leave no doubt.

The professions of national defense and law enforcement have become tools, used to advance the interests of Greedville, along with our courts.

Greedville has been diligent in cutting off potential escape routes, witness the 'policies' which criminalize the means used by people to avoid non-currency exchange, for instance by growing their own food, using technologies which allow them to generate their own energy, among many, reduce the small, and sometimes larger amounts, of currency which flows into the control of a relatively small number of individuals.

Traditional investments are now traps which bleed you like a roulette wheel. Big banks, the bond market, the stock market, are calibrated to take you capital and leave you broke.

Despite this, there is an opening which can take us into the light of a new, Post-Greedville, economy.


Welcome to the New Economy

Today, despite the housing meltdown, panicky investors have recognized they need to put their capital in something real. This is the source of the uptick in sales of homes in such places as California and Florida, areas which are known to have a continuing high demand.

Investors may have millions, or much less, but they are looking for something which provides potential for growth and security against the predators now looming in every market.

Today, the United States housing market is still the fifth largest market on earth, despite everything. It is large enough to provide the fulcrum for substantial shift, if those investments change the makeup of the market. These are the right investments, one made into the New Economy. These investments produce more benefits than you imagined possible.

Knowing what the right investments are is essential to more than just saving your capital. It includes saving your life and your freedom.

The New Economy and how it changes our world

There has been a steady rise in voices which challenge the assumptions most of us accepted about business. Greedville uses commerce as a weapon of war, and war to close off options for nations and individuals. The New Economy will be a tool for peaceful exchange, helping people from diverse backgrounds trust each other while lowering their absolute need to compete just for necessities.

Trust is a form of capital which changes the future interactions between people.

The New Economy provides tools which make it possible to trust each other as we move to a new way of living, one which rebuilds communities and relationships. The New Economy provides alternatives for exchange between people along with technologies which lower recurring costs for simply living. What it does not do is make it possible for a few to accumulate profits using deceit and manipulation, removing this as a human strategy.

In parallel with the proven success of microfunding and, more recently, online sites which allow people to donate funding for projects and small businesses, the shift point for the New Economy is activated by millions of people who can make choices for reasons which make good sense for them. It is not altruism, but informed self-interest for individuals who are now finding themselves in grave circumstances because of the loss of options caused by Greedville.

The best way to tell you is to use one example for choices, small choices made by one couple.

George and Kim were both retiring and decided to follow the advise of a friend and relocate back to the town where they both grew up.

Both of them were stressed, tired from long commutes to jobs which they did not enjoy. Both had medical problems and were overweight.

Located in the midwest, the town has shrunk in size and they could buy a home for 25% of what they could sell their home for in Long Beach, California. It was a tough choice, but they knew George's pension was gone in the bankruptcy of the company he had worked for and Kim's 401K was small, barely enough to pay for their move. As it turned out, they received the money not long before her fellow former employees lost their 401Ks.

After years of careful savings, they would be dependent on their social security and what they got from the sale of their home.

Determined to lower their recurring monthly costs, George and Kim decided to have a home built which was Deep Green Passive, using part of the money from the sale of their home in Long Beach. This meant no heating or cooling bills in an area where summers were hot and it snowed in the winter. They had been there for nearly a year when they realized nothing had needed fixing, either.

Kim had always wanted to garden. She found plans online while they were still in California for a geothermal system which allowed them to grow all year, even in the snow. They bought the plans online and took them with them when they moved. They included some citrus trees in their garden. George decided this made good sense and also put in an aquaponics unit from a company which encouraged customers to start teaching others how to grow their own food.

Their new neighbor raised chickens and Kim began trading with her, and then others, for eggs, chicken and other meat, using her produce and fish. The local grow community was also expanding, and many of these people became their close friends.

George and Kim joined a local time bank and began exchanging work with people in their town. No money changed hands. Folks were interested in their geothermal system and their aquaponics. George started building them for others, some through the exchange, and others for money.

Then Kim met a couple who were installing a new kind of solar system which also generated hydrogen. George and Kim exchanged time with him, allowing them to get a unit for themselves.

Another family in the exchange was modifying automobiles to run on hydrogen and hours were exchanged so George and Kim's car needed no gasoline.

Kim and George had been overweight and stressed when they left California. Now, each was thin and relaxed. Their diets had changed dramatically. Without realizing they had nearly eliminated GMO and additives from their diets.

Kim and George got active in their community, using spare time to help organize a local theater and brush up on skills which they had not used in decades. Benjamin, a rescue cat, became a fixture in their lives. Their lives had changed, and all of it for the better.

George and Kim signed petitions to change the way their local government was organized, moving along with other towns and counties to local control, but were not particularly active, spending time instead with relief work for their church.


What happened with George and Kim was a transition from grid economy to New Economy. The shift begins with people making choices which are right for them. These are not ideological choices which demand sacrifice.

Right now, people are looking for choices. Alternatives must be available. This is the window of opportunity for investors and all of us. These are, at one time, the only secure investment available and the best way to turn off the flow of funds to those who are presently eating us alive.

In this war of economies, the grid is pitting itself against the freedom of people to choose. Investing in technologies, starting businesses based on them, growing local, all of these allow us to move into the New Economy. Every time one of us does the power flowing to those who have been eating us alive is diminished.

All you have to lose is enslavement. All you have to gain is freedom.

Is The United States Going To Go To War With Syria Over A Natural Gas Pipeline?


By Michael Snyder, on September 3rd, 2013

PipelineWhy has the little nation of Qatar spent 3 billion dollars to support the rebels in Syria?  Could it be because Qatar is the largest exporter of liquid natural gas in the world and Assad won't let them build a natural gas pipeline through Syria?  Of course.  Qatar wants to install a puppet regime in Syria that will allow them to build a pipeline which will enable them to sell lots and lots of natural gas to Europe.  Why is Saudi Arabia spending huge amounts of money to help the rebels and why has Saudi Prince Bandar bin Sultan been "jetting from covert command centers near the Syrian front lines to the ÉlysĂ©e Palace in Paris and the Kremlin in Moscow, seeking to undermine the Assad regime"?  Well, it turns out that Saudi Arabia intends to install their own puppet government in Syria which will allow the Saudis to control the flow of energy through the region.  On the other side, Russia very much prefers the Assad regime for a whole bunch of reasons.  One of those reasons is that Assad is helping to block the flow of natural gas out of the Persian Gulf into Europe, thus ensuring higher profits for Gazprom.  Now the United States is getting directly involved in the conflict.  If the U.S. is successful in getting rid of the Assad regime, it will be good for either the Saudis or Qatar (and possibly for both), and it will be really bad for Russia.  This is a strategic geopolitical conflict about natural resources, religion and money, and it really has nothing to do with chemical weapons at all.
It has been common knowledge that Qatar has desperately wanted to construct a natural gas pipeline that will enable it to get natural gas to Europe for a very long time.  The following is an excerpt from an article from 2009...
Qatar has proposed a gas pipeline from the Gulf to Turkey in a sign the emirate is considering a further expansion of exports from the world's biggest gasfield after it finishes an ambitious programme to more than double its capacity to produce liquefied natural gas (LNG).
"We are eager to have a gas pipeline from Qatar to Turkey," Sheikh Hamad bin Khalifa Al Thani, the ruler of Qatar, said last week, following talks with the Turkish president Abdullah Gul and the prime minister Recep Tayyip Erdogan in the western Turkish resort town of Bodrum. "We discussed this matter in the framework of co-operation in the field of energy. In this regard, a working group will be set up that will come up with concrete results in the shortest possible time," he said, according to Turkey's Anatolia news agency.
Other reports in the Turkish press said the two states were exploring the possibility of Qatar supplying gas to the strategic Nabucco pipeline project, which would transport Central Asian and Middle Eastern gas to Europe, bypassing Russia. A Qatar-to-Turkey pipeline might hook up with Nabucco at its proposed starting point in eastern Turkey. Last month, Mr Erdogan and the prime ministers of four European countries signed a transit agreement for Nabucco, clearing the way for a final investment decision next year on the EU-backed project to reduce European dependence on Russian gas.
"For this aim, I think a gas pipeline between Turkey and Qatar would solve the issue once and for all," Mr Erdogan added, according to reports in several newspapers. The reports said two different routes for such a pipeline were possible. One would lead from Qatar through Saudi Arabia, Kuwait and Iraq to Turkey. The other would go through Saudi Arabia, Jordan, Syria and on to Turkey. It was not clear whether the second option would be connected to the Pan-Arab pipeline, carrying Egyptian gas through Jordan to Syria. That pipeline, which is due to be extended to Turkey, has also been proposed as a source of gas for Nabucco.
Based on production from the massive North Field in the Gulf, Qatar has established a commanding position as the world's leading LNG exporter. It is consolidating that through a construction programme aimed at increasing its annual LNG production capacity to 77 million tonnes by the end of next year, from 31 million tonnes last year. However, in 2005, the emirate placed a moratorium on plans for further development of the North Field in order to conduct a reservoir study.
As you just read, there were two proposed routes for the pipeline.  Unfortunately for Qatar, Saudi Arabia said no to the first route and Syria said no to the second route.  The following is from an absolutely outstanding article in the Guardian...  MORE

Sunday, September 1, 2013

Keeping Deposits Safe, Local, and Working for Local Economies...with Public Banks

From:  Public Banking Institute

Two months after the Public Banking 2013 Conference, awareness of Public Banking continues to increase. Folks are waking up to the fact that the Big Banks are extracting much wealth from our communities via usurious and rigged interest rates at all levels--individual, business, and government--and burdening our communities with debt. It is no longer safe even to keep our individual and local governments' deposits in the Big Banks, as "bail-outs" are being replaced by "bail-ins." Even Detroit's bankruptcy, fleecing pensioners to save the banks, is looking suspiciously like the bail-in template originated by the G20's Financial Stability Board in 2011, which exploded on the scene in Cyprus in 2013 and is now becoming the model globally.

If ever there was an argument for public banking, this is it: Keeping deposits safe, local, and working for local economies. The Public Banking Institute has released a new video stating that there is a serious threat, in the event of another derivatives debacle, that deposits are vulnerable to confiscation in Wall Street banks, making the point that government officials have a fiduciary responsibility to keep our local governments' funds safe and accessible.


 Some local governments are fighting back. Philadelphia is the latest of a number of U.S. municipalities to sue these banks for financial losses incurred due to Libor interest rate rigging, claiming that they "have cost state and local governmental entities hundreds of millions or even billions of dollars, depleting treasuries, ruining budgets, and hindering the delivery of public services." The city of Richmond, CA, in an effort to stabilize the community and prevent foreclosures, has offered to buy 624 underwater mortgages at discounts to the homes' current value, concentrating on ones that are held in Wall Street instruments called private securitization trusts, and threatening to use the power of eminent domain to seize the mortgages if its offers are spurned. The idea of "eminent domain for the people" is also gaining traction with the city of El Monte. Predictably, Wall Street is fighting back by directing a lawsuit at blocking Richmond's proposed use of eminent domain to write down mortgage loans for certain residents.
Efforts toward promoting and establishing publicly-owned banks also continue at both the local and national levels. A city-owned bank in San Francisco has been given the green light, with a legal opinion that a charter city likely would not be in violation of state law if it were to form its own bank. About one quarter of California cities are charter cities. A national infrastructure bank through the post office is proposed by the president of the National Association of Letter Carriers in his July address.

Equipped with the knowledge of "The Public Bank Solution," people are realizing there's an equitable and sustainable alternative to our current system--that banking and credit should become public utilities, feeding the economy rather than feeding off it. Please continue to spread awareness of Public Banking as we work to achieve a sustainable and shared prosperity.

Ann Tulintseff, Member of Board of Directors, Public Banking Institute
ann@publicbankinginstitute.org

At the Very Least, Your Days of Eating Pacific Ocean Fish Are Over

From:  Collapsing into Consciousness

Opinion by Gary Stamper

'The heart-breaking news from Fukushima just keeps getting worse…a LOT worse…it is, quite simply, an out-of-control flow of death and destruction. TEPCO is finally admitting that radiation has been leaking to the Pacific Ocean all along. and it’s NOT over….'

  • Pacific herring in Canada bleeding from eyeballs, faces, fins, tails — I’ve never seen fish looking this bad — All 100 examined were bloody — Officials informed of hemorrhaging soon after 3/11 — Gov’t ignoring problem.

  •  A WARNING TO SEAFOOD LOVERS EVERYWHERE 


    Are We Being Ruled by Self-Centered Jerks? What New Studies Reveal About the Ultra Wealthy

    From:  AlterNet 


    And why increasing economic disparities will make it worse.
    Photo Credit: Shutterstock.com/ holbox
    August 29, 2013  | 
     
    Two studies released last week confirmed what most of us already knew: the ultra-wealthy tend to be narcissistic and have a greater sense of entitlement than the rest of us, and Congress only pays attention to their interests. Both studies are consistent with earlier research.

    In the first study, published in the current Personality and Social Psychology Bulletin, Paul Piff of UC Berkeley conducted five experiments which demonstrated that “higher social class is associated with increased entitlement and narcissism.” Given the opportunity, Piff also found that they were more likely to check themselves out in a mirror than were those of lesser means.

    Piff looked at how participants scored on a standard scale of “psychological entitlement,” and found that those of a high social class — based on income levels, education and occupational prestige — were more likely to say “I honestly feel I’m just more deserving than others,” while people further down the social ladder were likelier to respond, “I do not necessarily deserve special treatment.”

    In an earlier study, published last year in the Proceedings of the National Academy of Sciences, Piff and four researchers from the University of Toronto conducted a series of experiments which found that “upper-class individuals behave more unethically than lower-class individuals.” This included being more likely to “display unethical decision-making,” steal, lie during a negotiation and cheat in order to win a contest.  MORE