Part Two>>

2. Reform the currency and expand credit based on the public interests:

Proposal sent to Obama: (4) Nationalize the Federal Reserve, its’ banks, and also nationalize the US Treasury! No more bonds, notes, or credits use to benefit the exclusionary special-interests of the plunder-elite and no more exclusive control of public social wealth by banks as stock holding institutions and as privately owned corporations. (5) Bring back Greenbacks and transfer the power to create and to expand credit directly to the American people . . . Put the financial Pirates and bankster thieves out of business. . . (6) Lock down the national debt, and the accumulative personal debt of every American citizen along with it, and put all of this into a Debt Fund Trust, to be (7) paid-off with a new Green Back People’s currency (underwritten by the resourcefulness, productivity, and technological proficiency of the American people) with an individual and corporate taxpayer liability used to cover interest-obligations set at fixed low-interest rates favorable to future US taxpayers with necessary installment obligations paid on this interest and its’ principal over a period of one-thousands years. (8) summary: No more private stock Banks or privately owned “public” institutions and no more private controls over the US Federal Reserve and Treasury and bring an end immediately to the Feds contracted monopoly on creating credit “out of thin air” that their strata uses currently to squeeze mountains, flowing rivers, and clouds-full of wealth that trickle up out of the American people‘s sweat and tears while generating economic depression as a dominant and repetitious way of life. Bring an end to this Piracy!

President Obama: please remember that recessions, depressions, and wars of aggression are not accidents of history or psychological quirks but intentional political and economic policies aimed at stimulating lending opportunities and plunder that are correspondingly used to enhance the process of monopolization of wealth and to create pain through militaristic conquest.—with war and military spending an additional heavy burden placed on the American people and taxpayer.

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* In analyzing the cause an cures of the Great Depression,  Harry Elmer Barnes said,

“The chief obstacle to recovery today lies in the fact that the great mass of potential purchasers does not have enough money to buy a sufficient quantity of even necessities of life, to say noting of luxury goods.” (page 6)

Barnes, Money changers vs. The New Deal : A Candid Analysis of the Inflation Controversy.(New York: Ray Long & Richard Smith Inc., 1934)

** On the current economic crises check out the important articles linked at the beginning of:

“Fake inflation numbers hid crisis”

http://articles.moneycentral.msn.com/News/TheEconomyDyn.aspx?cp-documentid=15302724

~Bruce

Part One>

Friends:

Are the bailouts given to the banks and corporation an effective use of the taxpayer’s money? Will this “stimulate the economy”( ?) or will this gift simply be an excuse to demolish unions (?) and to drive down the standard of living of Americans while allowing the monopoly of capital and credit markets to proceed at an accelerated pace? And in the end, squandered away?

Inflation is an economic condition where prices climb faster than the median income of the work force. “Disposable-income doesn’t purchase much.”

Deflation is when prices fall due to overproduction or to mis-marketed or wrongly designed products that slow down the economy and lead to a decline in the median income of the workforce. “Disposable -income dwindles.” While prices decline wages come up short. Goods are not purchased or the wrong goods are available at the right price. And due to a decline in retail profitability small businesses suddenly vanish. Many jobs are lost in all sectors of the economy. Personal income drops even faster than prices.

Both, or either, of these conditions can be a symptom of economic depression.

The Great Depression of the 1930’s was inflationary.*

On the current course the America economy is headed towards a Great Deflationary Depression. **

The solution to the first economic condition (inflation) is to increase wages and consumption.

The solution to the second economic condition (deflation) is to increase consumption by generating higher wages and income.

Perspective

What needs to be done is to simply get more money into the hands of workers and consumers, and to raise the median income of individuals and households quickly. Most Economists agree that that government revenue (which means, in this case, government and national debt) should be used to accelerate consumption. This cannot be accomplished unless the median income of the American workforce is raised dramatically. (And, if economic experience is a guide, it means a practical and rapid increase of income used to stimulate consumption, because this will be a boon to industry and it will help expand production and thus help create jobs). There is nothing wrong with this in theory but practical economic measures and applied government policy must advance - rather than hinder- this objective.

I would argue that giving bail-outs to the banks to the wealthiest institutions and to the wealthiest individuals (through regressive taxation measures) amounts to a gross mis-allocation of resources and taxpayer money.

Pragmatic Proposals:

1. Pass an Emergency Appropriation of 25 Trillion Dollars and distribute this directly and equally to the American people in the form of individual bonuses. (This amounts to only 2.5% of the GNP ).

The practicality here is that (1) in order to increase production and create jobs, monies must be made available directly to citizens (to help increase and to expand disposable income) (2) by using increased consumption rather than supplementing bank profit, or in the case right now, by a policy of giving public monies to increase CEO salaries and benefits, for “Golden parachutes,” or for the use of taxpayers money to speed-up the transfer of dollars selectively into (un-audited) off-shore accounts under the pretext of (3)  “stimulating the economy” with the existing bank bailout measures –the money would go instead directly to the consumer.

I listen to LR&C;every week, and love the show. Bob keeps saying something that I wish he would clarify.  He keeps mentioning that we have to do something to keep people out of foreclosure, and stabilize the housing market, keeping people from going under water.  But in my area many people like myself are waiting for the prices to drop.  Between 2000 and 2006 prices in my neighborhood went up from 30-100%, making single people like me unable to afford a home any longer.  There are tons of us waiting for the prices to revert to the mean, then we will start buying.  The only people who are upside down are those who bought at the peak of the inflated market.  People who have owned homes since the 90’s and before are fine.  Propping up the market at current prices will only serve to keep people like me out of the market, and force people who want a home to continue to pay more than they can reasonably afford.  I’m not sure if Bob sees this, since he’s never spoken about it.
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