The World is dividing into two blocs – the Plutonomy and the rest. Citigroup Research is a division of Citigroup Global Markets Inc. (the “Firm”). Maybe I’m the last person who’s hearing about the Citigroup “plutonomy memos”, but they’re blowning me away. Wait, now that I look around. In October 16, , Citigroup came out with a brochure for investors called “ Plutonomy: Buying Luxury, Explaining Global Imbalances” urging.
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The GFC resulted in massive transfers of dollars from ordinary taxpayers to the wealthy via the bail-outs when the big financial institutions momentarily embraced socialism.
Continental Europe ex-Italy and Japan are in the egalitarian bloc. Almost all the smart ctigroup we know — our investors, our colleagues, our friends in academia, politicians believe in some variant of these two stories. They are also perfectly happy to suppress these explosive memos. On the History of the U.
Plutonomy and the Precariat
OWSfinancerant. Corporate tax rates could rise, choking off returns to the private sector, and personal taxation memso could rise — dividend, capital-gains, and inheritance tax rises would hurt the plutonomy. My email is civileconomies gmail.
Often these wealth waves involve great complexity, exploited best by the rich and educated of the time. This is a cause championed, generally, by left-wing politicians. Low-end developed market labor might not have much economic power, but it ctigroup have equal voting power with the rich. It took two hours.
In plutonomies the rich absorb a disproportionate chunk of the economy and have a massive impact on reported aggregate numbers like savings rates, current account deficits, consumption levels, etc. There are a lot of reasons for it.
Citigroup’s plutonomy memos | mathbabe
Do you have information you want to share with HuffPost? While there is evidence that this is positive for the average worker for example Ottaviano and Peri it is also clear that high-cost substitutable labor loses. The Managerial Aristocracy, like in the Gilded Age, the Roaring Twenties, and the thriving nineties, needs to commandeer a vast chunk of that rising profit share, either through capital income, or simply paying itself a lot.
Meanwhile Private Equity and LBO funds are filling the risk-seeking and re-leveraging void, expecting and realizing disproportionate remuneration for their skills. Meanwhile, it opened a period of stagnation or even decline for the majority of the population. You got to admire the cluelessness of people who deny the down and praise the up as if gravity had nothing to do with it. The name is familiar. Thank God that we have such splendid police forces whose members seem to be very happy to quash any unrest with batons, tear gas, pepper spray and a high degree of rough behaviour in order to keep the plutonomists happy!
Perhaps one reason that societies allow plutonomy, is because enough of the electorate believe they have a chance of becoming a Plutoparticipant. Before the s, banks were banks. It used to be that if a person in Congress hoped for a position such as a committee chair, he or she got it mainly through seniority and service.
And the s accelerated it. Could the plutonomies die because the dream is dead, because enough of society does not believe they can participate?
Plutonomies have occurred before in sixteenth century Spain, in seventeenth century Holland, the Gilded Age and the Roaring Twenties in the U. We see three reasons to take another look at those plutonomy stocks. Perhaps one reason that societies allow plutonomy, is because enough of the electorate believe they have a chance of becoming a Plutoparticipant.
You are commenting using your Facebook account. Nothing that surprising, economically speaking, except for maybe the fact that their reaction, far from being outrage, is something bordering on gleeful.
Cities by number of billionaires Countries by number of billionaires Most expensive things Wealthiest animals. Despite not having received widespread mainstream coverage, the Citigroup memos have been discussed in a handful TV-clips or documentaries. Here, we believe lies a cornerstone of the current wave of plutonomy, and with it, the potential for capitalists around the world to profit.
Citigroup’s Plutonomy Memo: “There are rich consumers, and there are the rest”
It led to the concentration of wealth increasingly in the hands of the financial sector. You are commenting using your Facebook account. These are class reasons, and reflect the lack of popular political mobilization.
Back when I worked mdmos ThinkProgress, I repeatedly broke stories using leaked memos and memoe internal documents from powerful corporations. Usually one should think that once such important documents are in the “public domain”, nothing should stop them any more from being distributed and being openly discussed. In determining whether the use made of a work in any particular case is a fair use the factors to be considered shall include: A multinational decided to close down a profitable, functioning facility carrying out some high-tech manufacturing.
In this ccitigroup, he shows a strong long-term trend toward more concentrated income and wealth. Buying Luxury, Explaining Global Imbalances. I mentioned before that, in the s, one of the most effective actions was the me,os strike. At the heart of plutonomy, is income inequality. Finally, from the third memo: Therefore it is apparent that Citigroup is paranoid that these memos by their analysts are being widely distributed.
And concentration of political power gives rise to legislation that increases and accelerates the cycle. These memos prove the opposite, that the elite are perfectly happy to let us drown.
Plutonomy – Wikipedia
For decades, Citigroup has been one of the most corrupt of the major investment banking corporations, repeatedly bailed out by pllutonomy taxpayer, starting in the early Reagan years and now once again. There might be a connection with Robert Gordon. Still true, as per evidence by Thomas Piketty and others.