Second Round of Stimulus?

There seems to be no doubt that a second round of stimulus is needed. States budget gaps are near the breaking point and unemployment is not improving, which is no wonder when you pay people to not work. Stimulating the economy to provide jobs is the correct course of action, jobs which corporate America was allowed to send overseas, or hire immigrants who will work for less than their American counterparts, and send the bulk of what they make back home to feed their families there.

Jobs will not magically appear until a concerted effort is made to employ people. Corporations should be held accountable for their actions, but instead are deemed "too big to fail" while American families are the ones left to suffer.

"Never have so few, done so little, and made so much, while screwing so many."

THE AGE OF MAMMON (Featured Article) � The Burning Platform

interfluidity � Monetary policy for the 21st century

I appreciate your article. Almost any proposal is better than the chaos that could ensue if the downward spiral of unemployment and depressed demand isn’t contained. It’s a shame the powerful and the elite have acted so recklessly in the pursuit of gain, that the average person may be potentially left with nothing. It isn’t too far removed from feudalism, and the peasantry may well rise against the elite if things get bad enough. The history of civilization is one of conquest and man’s rising against oppression.

You stated that “central bankers understood very well the importance of wage suppression, and emphasized their willingness, their “credibility”, to push back hard against any increase in the share of income accruing to labor.” Given the three inputs of production are capital, labor, and material and assuming $1 of input from each, we can dismiss the cost of material as a form of rent. The laborer is paid their $1 of wages and told, thank you very much, but the capitalist assumes more than $1 in return. This is in effect the flaw in capitalism that can be easily corrected by profit sharing.

I was an undergraduate in Economics in the mid 80’s, the fall of the Soviet Union and the stock market crash of 1987 were the prominent events of the decade. Businesses had suffered during the 1970’s with peak oil and tight credit. The crash of 1987 was merely a hiccup during the highest period of prosperity of the 20th century. Stocks gained ten-fold in value and the tech bubble of 2000 came near the end of the period. When stocks weren’t making two digit returns, the baby boomers saw real estate as a natural avenue for their accumulated wealth, and we saw the gentrification of urban areas and vacation retreats. It was around this time that Congress, for whatever misguided reason, felt it their duty to increase housing ownership for those unable to afford it. Mortgage lenders saw an opportunity to generate commissions, passing the obligation on to the secondary mortgage market, and investment firms made commissions selling packaged mortgages to the clients. When it became apparent the investments were sour, the problem became compounded by the derivatives market, which had become unduly highly leveraged by the manipulation of a few firms and the lack of regulation and oversight by the institutions in place to prevent such practices.

If the US economy recovers within the next ten years, it will be due to the resiliency and to the credit of the man and woman on the street, the average citizen. New York has long been the financial capital of the world, but it has not been without the protection afforded by the borders of this nation, and indeed the league of nations, which aren’t ruled by the few, but by the many who have put their faith in a system of government with checks and balances. The enemy is the same enemy of old, rule by the few. Wall Street and the central bankers must be stood up to and forced to capitulate by any means necessary. Please read my article at Politics and Economics for a discussion of the spiritual nature of the conflict in which we are engaged.

interfluidity � Monetary policy for the 21st century

MASS DELUSION – AMERICAN STYLE (Featured Article) � The Burning Platform

It's curious why Jim is such a contrarian when there's so much to focus on that's positive. Where Jim's attitude belies him is he gets so wound up about all that's wrong that he conveniently omits proposing any solution. It's one thing to whine about everything, but entirely another to be part of the solution. Jim is perfectly within his right to be part of the problem. I continue to read him because I have nothing better to do, but when you make statements like, "The sociopathic powers .. need to be brought to justice" and "The criminals ... must be routed out" without proposing by what mechanism, and what laws beyond those of common decency have been broken then this post is much ado about nothing.

Americans aren't deluded, a con has been perpetrated with the complicity of their elected representatives. The proper response is to throw the bums out. If that doesn't fix the problem, a proper general revolt may be in the making. And we're not talking about malcontents burning a few city blocks of downtown LA, but more along the lines of the 60's civil rights riots.

On another note, It's heartening to read about God in the comments, and make no mistake, the leaders of the synagogue in time of Jesus Christ were a pit of vipers, as Jesus told them to their faces, "You are of your father the devil, and your will is to do your father’s desires." (John 8:44, ESV). There is no doubt in my mind the top levels of government and finance are similarly corrupt today.

To Jim's last pessimistic point, "before it's too late". Too late for what? And, of course, Jim offers no solution. The simple matter is that with $52T in unfunded federal entitlements, it's already too late, yet the seeds were sown in the 1960's with Medicare and Welfare. Medicare hid the real cost of health care in the federal deficit, Insurance companies must have paid a pretty dime for that one. Welfare effectively paid recipients to procreate, so they procreated. Fast forward 50 years to today, and when you pay people to not work, they don't work. America is on a road where the bridge ahead is out. There are a number of scenarios that could play out, but I have faith in the indomitable spirit of man, and in the goodness of God to preserve his remnant. Call it delusion if you will, but as surely as the sun will rise, God Almighty, the God and Father of the Lord, Jesus Christ, will not forsake his own. The devil doesn't take a day off, and neither should anyone who cares about the future of our country, and our children.

MASS DELUSION – AMERICAN STYLE (Featured Article) � The Burning Platform

Florida – Much Worse Problems Than the Oil Spill � The Burning Platform

First of all, normal has been redefined. Secondly, the tourism business most likely will return, just as it has in New Orleans. To say otherwise, is conveniently ignoring the fact we're all in the same boat, and Florida is in no worse shape than the rest of us, they just got there quicker.

Except we're not all in the same boat, as Jim Quincy full well knows. Our society is stratifying into the haves and the wants, and the haves will return to the panhandle of Florida, maybe with a few less T-shirt stands, but who goes for the souvenirs anyway?

This blog is about on par with the MSM, with it's "only bad news is good news" philosophy.

Florida – Much Worse Problems Than the Oil Spill � The Burning Platform

AIN’T NO REST FOR THE WICKED (Oldie but Goodie) � The Burning Platform

The leaders of the synagogues during the time Jesus Christ was on the earth were Evil, as Jesus told them to their faces, "You are of your father the devil, and your will is to do your father’s desires." (John 8:44, ESV). The synagogue was more than a place of worship in the Hebrew culture, it was the center of commerce. There is no question the Devil has shifted his focus to the secular world of national governments and global finance, and would desire a one world government.

See my response to DEBT TRAIN IN THE TUNNEL for further discussion.

AIN’T NO REST FOR THE WICKED (Oldie but Goodie) � The Burning Platform

DEBT TRAIN IN THE TUNNEL

Steve, a fire sale is precisely what is needed. The larger the government entity, the more pruning needs to done. Look at the city councils in California making hundreds of thousands of dollars a year in salary. New York City has been on the verge of bankruptcy more than once, and 11 of 50 states are effectively bankrupt. Exponentially worse is the Federal Government, which employees the largest unionized work force in the world, with Obama expanding the number of those employees at a record pace.

The Constitutional role of the US federal government is to provide for the common defense and promote the general welfare. Welfare is a word derived from the old English, "weal", meaning "wealth", and promote doesn't mean redistribute. Just as I am a first century Christian, and refuse to accept tenets based on Roman compromise with paganism in order to establish a state religion, an analogy can be made that our federal government has become as corrupt and vile as the leadership of the synagogue had become in Jesus's day.

Jesus Christ exposed the kingdom of the devil, yet the devil did not go away to quietly await his fate and has conspired to wreak as much havoc and mayhem upon this earth in the short time he has left. Romans 10:10 tells us "The thief comes only to steal and kill and destroy". While the appointed time of the Lord is known only to God, the devil is gearing up for Armageddon. It's not too late to save ourselves, individually and as a nation, "because if you confess with your mouth that Jesus is Lord and believe with your heart that God raised him from the dead, you will be saved" (John 10:9) and "Blessed is the nation whose God is the Lord" (Psalm 33:12). If all else fails, there's always Hope, even in death, Hope for the Return of the Lord God Almighty, which may be all we have left after the devil and his minions are done sucking the last vestiges of wealth out of this nation and the world. Who will oppose the devil? Who can withstand him? Now we see why it will take the return of the Lord. It's shaping up as a replay of War of the Worlds, except the aliens are Wall Street, the Fed, and their willing accomplices in the Congress and Administration.

Who, indeed! Surely not all at the helm of power in this country are corrupt. Surely there is a remnant who believe the truth of God's word. Are we to descend into a pit of chaos for lack of leadership in our government. Now is the time to stand up and be counted. Tell your elected representatives to stand up to the leadership in the House and stop the lame duck session in Congress. Pelosi and Company got us into this mess with sub-prime lending, and it cascaded from there due to poor regulatory oversight and greed. Throw out the leadership in the House of Representatives. Stop the insanity of government giveaways, cut taxes to put money back in the private sector and cut spending to stop competing with the private sector for goods and services. The alternative is capitulation and defeat, a totalitarian government and new world order, which can be only exponentially worse.

DEBT TRAIN IN THE TUNNEL � The Burning Platform

THE BERNANKE PUT

@Whippet, why blame apathy, what could 98 out 100, or an even more infinitesimal number in reality, possibly do in response to the rape and looting of the national treasury? One doesn't hear too much from the likes of Pelosi, Frank and Reid these days, except sound bites of their rants to insiders. They have to recognize the gig is up, their days of pulling the levers of power at the behest of the highest bidder are coming to an end. Yet, who will replace them. A good first step is to vote against any incumbent who can be connected to Wall Street Gate. I noted that the US Congress's interest in maintaining the viability of the dollar in order to maintain status quo and thus their own retirement in perpetuity made strange bedfellows with Wall Street Financiers, who are complicit in the smoke and mirrors game being run by the Fed and Treasury to prop up the dollar. It would have been better to let the banks fail and deal with the aftermath, than to sell off the assets of the American People to keep the Banks and Investment Bankers alive. Either way, the end result is going to be the same, the people of these United States will still be here to pick up the pieces, what remains to be seen is whether our federal government will be the enemy.

@Gaffer, almost the same response as to @Whippet, what could the average person possibly do, or even why should they care. It's up to their elected representatives in government to represent them as constituents, instead we have a failed system of government. What could anyone possibly do except fight against that system by any means necessary, and to what end? If you can't answer these questions, then you're just blowing smoke. The average American isn't to blame. Answer the question, what can they do? We learned during the Vietnam War that the MSM is not to be trusted. Even if the Internet had been available, it would have taken a ground swell of public disapproval to have changed anything. I think we're seeing the same thing. Our government is acting independently of the interests of the American People, and there isn't a damn thing anyone CAN do about it, except to communicate and share information. It's an uphill battle, and we may have already lost the war. Peace, out.

THE BERNANKE PUT

oftwominds: Why Japan Is Doomed (and the U.S. and E.U., too): Demographics, Low Savings, Ballooning Debt

Interestingly enough, if not appallingly frightening, is the three largest economies in the world are all on the same path.

oftwominds: Why Japan Is Doomed (and the U.S. and E.U., too): Demographics, Low Savings, Ballooning Debt

Wake schools can cope with state cuts - Local - NewsObserver.com

"I thought the state was going to hurt us more." The state is in denial and has deferred any tough spending decisions until after November elections. With the economy slipping back into a recession, I expect furloughs and layoffs. No doubt the senior administrators are eligible for retirement, and I applaud and commend Mr. Margiotta for making the best of a very difficult budget cycle.

Make no mistake, though, leading economic indicators show the economy slipping, and the low hanging spending fruit has picked. It's time to prune the trees.

Wake schools can cope with state cuts - Local - NewsObserver.com

billy blog � Blog Archive � The old line back to free market ideology still intact

billy blog � Blog Archive � The old line back to free market ideology still intact

Thank you for the graduate level education in what has been going on in the halls of high finance over the course of the past 10 years, bringing about the collapse of western civilization as we know it, but having it's roots, no doubt, in the likes of Alexander Hamilton, The Federalist. It's astounding that less than 60 years after the end of the civil war, and the consolidation of power in the US Government, that the world slid into a global depression, and here we are 70 years after the war to end all wars having slid into a second global depression.

If I understand the article's conclusion correctly, then the sovereign debt of the US is insignificant compared to the consequences without increased federal spending. Even so, there's a tipping point at which public sector spending crowds out private spending. And, to whom does the benefit of all of this spending accrue? I would prefer to teach a man to fish so that he might have to provide for himself and his family, than to dole out unemployment benefits. Has the pendulum swung so far in preserving the financial institutions which caused the collapse, along with the complicity of the federal government, that equilibrium with the private sector cannot be re-attained?

The important thing, I think, is to reduce federal spending and reduce taxes to return the American economy back to the private sector. Aside from the Fed and Treasury's unfailing errancy and inability to acknowledge the failure of their collective world view, our federal government is still operating in a vacuum of denial. They figure as long as they can print and spend, the barbarian hordes will be kept at bay. The defense of the dollars they count on to fund their own retirement is their only motivation, which makes peculiar bedfellows of politicians and financiers. In the meantime, state governments are struggling to balance their budgets. with 11 states meeting the definition of bankrupt, and federal deficit spending continues it's upward trajectory. This imbalance and lack of parity between Washington and the rest of the country could very well lead to a second American Revolution. The economy can not be centrally managed, this has been proven time and again. The longer the delay in returning the economy to the people, by cutting spending and taxes, i.e. shrink the federal government by any means necessary, the longer it will be before a recovery begins, and the more severe will be the consequences.