Bill Gross: “Class Warfare By The 99%? Of Course, They’re Fighting Back After 30 Years Of Being Shot At”

A protester holds a sign at the Occupy Wall Street protest last weekend

Richest Capitalists Decry Class Warfare … By the Wealthy Against the Poor

Pimco boss Bill Gross – one of the 1% – tweeted today:

Class warfare by the 99%? Of course, they’re fighting back after 30 years of being shot at.

(No word on whether the protesters marching on New York City billionaires’ houses had any influence on the timing of Gross’ tweet.)

Gross joins Warren Buffet, who pointed out in 2006:

There’s class warfare, all right, but it’s my class, the rich class, that’s making war ….

Asher Edelman – the well-known corporate raider who helped inspire the character Gordon Gekko in the 1987 film “Wall Street” – supports the protests and says:

The greed of the banks are the cause for the terrible economic situation that we have today.

And the Chief Investment Officer for Calpers – California’s $235 billion dollar pension fund – said today:

I understand why people are protesting: Wall Street is a rigged game.

Of course, the father of modern economics himself – Adam Smith – didn’t believe that inequality should be a taboo subject.

And libertarian champion Ron Paul says that the system is rigged for the rich and against the poor and the middle class:

Libertarians and conservatives support the protests because everyone hates corporate socialism, and the Federal Reserve and the giant banks are part of a single malignant, symbiotic relationship. So conservatives and liberals are uniting in breaking up both.

As I noted last month:

Yes, this is class warfare. But it is class warfare by the 1% against the other 99% (and see this). Specifically, it is the looting of the country by the top .1% through fraud.

That is another reason that conservatives and liberals are uniting in protesting the status quo. We currently have crony capitalism, socialism or fascism … not free market capitalism. Those who commit the biggest frauds and are part of the aristocracy get richer, while everyone else gets poorer. That is anti-American, and conservatives and liberals are pissed about it.

Indeed, being against governmental policies which will increase inequality in the future is not anti-capitalist. In free markets, dumb, speculative and risky bets mean that you go bankrupt, not that you’re bailed out by the taxpayers. And the poker game can only continue if everyone has some chips.

Studies show that runaway inequality makes the middle and lower classes poorer. Leading economists note that rampant inequality was one of the main causes of the Great Depression and of the current economic crisis.

Indeed, the 1% has caused a depression for the 99%. (Yes, in case you didn’t get the memo, we are currently in a depression. And see this).

Dizzying levels of inequality also corrupt the political system. In other words, when the 1% control D.C., we no longer have a democracy or a republican form of government. We have the best system money can buy.

Given that inequality in America is worse than Egypt (or Tunisia, or Yemen or most Latin American banana republics), that inequality in the U.S. hasn’t been this bad since 1917 (even before the Great Depression), and that social mobility is lower in America than in most European countries (and see this), we have been predicting these types of protests for years.

Why the Elite Hate the “We Are the 99%” Protests

Conservatives – as well as liberals – are against rampant inequality. If more Americans understood how much inequality we have, they would be outraged too.

For example, Dan Ariely of Duke University and Michael I. Norton of Harvard Business School demonstrate that Americans consistently underestimate the amount of inequality in our nation. As William Alden wrote last September:

Americans vastly underestimate the degree of wealth inequality in America, and we believe that the distribution should be far more equitable than it actually is, according to a new study.

Or, as the study’s authors put it: “All demographic groups — even those not usually associated with wealth redistribution such as Republicans and the wealthy — desired a more equal distribution of wealth than the status quo.”

The report … “Building a Better America — One Wealth Quintile At A Time” by Dan Ariely of Duke University and Michael I. Norton of Harvard Business School … shows that across ideological, economic and gender groups, Americans thought the richest 20 percent of our society controlled about 59 percent of the wealth, while the real number is closer to 84 percent.

A new Washington Post poll shows that the majority of Republicans – 53% – support raising taxes on people making more than $250,000 a year:

While eight in 10 Democrats and two-thirds of independents support raising taxes for Americans earning $250,000 or more, that drops to 53 percent among Republicans. Conservative Republicans split about evenly on the issue: 49 percent in support, and 46 percent opposed.

(Whether you oppose or support raising taxes on the wealthy, this shows the dramatic change of sentiment in the country right now.)

That is one of the primary reasons that the powers-that-be hate the Wall Street protests and it’s message of “We are the 99%” … it helps to wake people up to the class warfare by the 1% against everybody else.

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  • Bruce


    “People only accept change when they are faced with necessity,
    and only recognize necessity when a crisis is upon them.” – Jean Monnet

    “Successful crime is dignified with the name of virtue; the good become
    the slaves of the wicked; might makes right; fear silences the power of
    the law.” Lucius Annaeus Seneca

    “The issue which has swept down the centuries and which will have to be
    fought sooner or later is the people versus the banks.” – Lord Acton

    “We’re essentially continuing a system where profits are privatized and…
    losses socialized,” – Nouriel Roubini

    “The last duty of a central banker is to tell the public the truth.”
    – Alan Blinder, former Vice Chairman of the Federal Reserve

    “When a government is dependent upon bankers for money, they and not the
    leaders of the government control the situation, since the hand that gives
    is above the hand that takes. Money has no motherland; financiers are without
    patriotism and without decency; their sole object is gain.” – Napoleon Bonaparte

  • Dave Mowers

    According to the I.R.S.;

    There are 235,413 persons earning $1,000,000.00 or more a year.

    8,274 earning $10,000,000.00 a year or more.

    1,470 worth $100,000,000.00 or more.

    959 billionaires.

    These people own 80% of all publicly traded stock and make 40% of all the money annually.

    …and half of the United States doesn’t earn enough income to pay taxes. 1 in 3 children live in poverty. 1 in 6 adults live in poverty. 40% of households are receiving some form of government assistance. 46 million adults are on food stamps.

    308 million people never get bailed out when they make a bet and it doesn’t pay off.

    308 million people don’t get loans directly from the Federal Reserve.

    308 million people don’t get free health care, guaranteed pensions, government backed insurance on business deals, government back loan guarantees, tax subsidies, government financing, legislation protecting markets. The current Congress and Senate are the richest in the nation’s history with 90% of them in the top ten percent of wealth. The news media finds nothing wrong with this, your government can’t figure out what is wrong with this, the rich feel like they deserve free tax payer bail outs, loans, guarantees because that is what capitalism is…free money for those who already have more than they will ever need. America has failed as a democracy.

    Will Cain, Romney, Bachman, Santorum, Perry, Gingrich change this? Will any of them allow equal access to credit and capital from the Federal Reserve?


    Ron Paul would.

  • Pat

    Glass Steagall was the protection of the little was eliminated by the 1%–which includes the members of the Council on Foreign Relations and the Bilberburgers. Greenspan, Rubin, Clintons. Summers, ALL CFR MEMBERS who did away with the Glass Steagall Act so the Big Banks -Owned by the CFR members, and The Big Banks who OWN the Unconstitutional FED could use “Financial Engineering to use Derivatives while under the Bushes, Cheney, Obama, Soros all CFR–to rape the American population of its future! Credit Default Swaps have no useful purpose–a direct quote by Bill Clinton—

    In 2009, Maria Bartiromo interviewed Evelyn Rothschild who moved to New York to “Oversee the rebuilding of the US Banking system” WHY, for WHO–Bilderburgers I presume–

    The top 1% rich should be taxed 50% of their net worth to be sent to the Soc Sec fund to make up for their abuse of the population and moral laws to build such obscene wealth–