Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts

Tuesday, April 12, 2011

Quit yer bitchin'!


Some historical context on federal individual income tax rates can help us understand the gravity of this proposed budget plan:
  • In 1945, at the end of World War II, the top marginal tax rate was 94 percent.
  • In 1954, when Republican Dwight Eisenhower was president, the top marginal tax rate was 91 percent.
  • In 1980, the year Reagan won his presidential election, the top marginal tax rate was 70 percent.
  • By 1989, the year Ronald Reagan’s presidency ended, the top marginal tax rate was 28 percent.
  • When Clinton took office in 1992, he raised the top marginal tax rate to 39.6 percent, where it stayed throughout his presidency.
  • Clinton balanced the budget and left office with a surplus.
  • Bush Jr. chipped away at the top marginal rate until it rested at 35 percent in 2003, where it remains to this day.
Americans (Republicans and Democrats) used to take pride in paying their taxes. Our contributions made this nation great. We lived on less and paid our fair share to make sure all of our most basic needs were met. That changed in the 1980s with the onset of Reagan’s “trickle-down” economics. Reagan slashed the budget more than any president before him and drastically lowered the top marginal tax rate. And we found the trickle didn’t go far. Most Americans never felt one drop.
Read the article I got this from at the God's Politics Blog: http://blog.sojo.net/2011/04/12/the-ryan-plan-a-declaration-of-war-on-the-poor

Sunday, October 31, 2010

A corollary to yesterday's post about political bedfellows

George W. Bush Bush dumped $848,000 worth of Harken Energy stock back in 1990, two months before the company announced a $23.2 million loss; he was 34 weeks late in filing a form the Securities and Exchange Commission required to record the sale... According to Time Magazine, "...Harken concealed losses by selling most of a subsidiary to an off-the-books entity controlled by company insiders. Bush was on the audit committee, which, at least in theory, approved the deal. It's the same tactic used by Enron—on a massive, more pernicious scale..."
Time reported in the same issue that "Halliburton, while Cheney was CEO, greased the books to boost the firm's flagging fortunes." Creative accounting.

Dennis Kozolowski, Ken Lay, Merrill Lynch, Enron, Andersen, Halliburton, Adelphia, R.J. Reynolds, Tyco, Bristol-Meyers, Global Crossing, the list goes on and on of individuals and corporations involved in abuse and corruption during early part of Bush's FIRST term. It's as if there was no S.E.C. no accountability or transparency or ethics of any kind in business, finance, and government.

The Bush years were a new gilded age or cancer-stage capitalism. A culture of corruption flourished.

Is it any wonder that we're now dealing with the likes of Bernard L. Madoff, Goldman Sacs, Lehman Brothers, the entire mortgage-based-securities, and auto executives flying in on private jets to ask Congress for bailouts?

Obscene greed. Yet Conservative Christians only get worked up about abortion and gay marriage. When I wrote columns scrutinizing John McCain's connection to the "Keating 5" and the S&L bailout scandal of the 1980's and how his role in deregulation of the financial sector may have helped lead to our current meltdown I was raked over the coals as some kind of unpatriotic, America-hating, abortion promoting liberal.

Transparency and accountability, and a whole lot of self-discipline is what America needs now.
Time for Relief, Recovery, and a whole lot of REFORM.

But what do I know? People have labeled me a "liberal" and now I have to wear that label like a scarlet letter.

Wednesday, October 21, 2009

Chemo Therapy Sucks, but we seem to need it

Cancer (malignant neoplasm): is a class of diseases in which a group of cells display uncontrolled growth (division beyond the normal limits), invasion (intrusion on and destruction of adjacent tissues), and sometimes metastasis (spread to other locations in the body). These three malignant properties of cancers differentiate them from benign tumors, which are self-limited, and do not invade or metastasize.

Capitalism is not bad, it can be pretty good. Unfortunately, what Ayn Rand, Ronald Reagan and Alan Greenspan's philosophy of absolute libertarianism for big business has brought us is not free markets, but "cancer-capitalism."

It meets the definition of having three malignant properties. Derivatives schemes began as uncontrolled growth on Wall Street, it invaded mortgages, financing and credit, which effected our entire economy and most aspects of our lives and culture, including health care and unemployment.

We need regulation. We need it on Wall Street to prevent wild speculation, and we need it on K Street to prevent the unfettered influence of special interest groups on Washington.

This is not Socialism, Communism, or Marxism. It's common sense. Some people seem to think that the Revolutionary War was just about King George III, but it was also about the abuses of mercantilism, monopolies like the East India Company, and the super rich in Parliament. America used to be about fairness, equality and justice. Its time to stop being afraid of government and start using it to restore balance to the system and protect the little guy again.

You don't play a football game without rules and referees, how can you expect to have competition in the markets without regulation? Where's Teddy Roosevelt when we need him?


Read more or watch the Frontline documentary about Brooksley Born, head of the Commodity Futures Trading Commission who tried to warn us back in the 90's. http://www.pbs.org/wgbh/pages/frontline/warning/etc/synopsis.html

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Friday, April 24, 2009

Beware of sharks



Clay Bennett
Chattanooga Times Free Press
Apr 24, 2009
Here, I think this is a more cartoonist (& copyright) friendly way to post other people's cartoons on my blog.

I just love Clay Bennett's work. And this is an amazingly clear and potent statement about the abuses of credit card companies. Maybe all the religious--wingers who make such a big stink about gay marriage need to consider these Bible verses too-
Ezekiel 18:13
He lends at usury and takes excessive interest. Will such a man live? He will not! Because he has done all these detestable things, he will surely be put to death and his blood will be on his own head.

Ezekiel 22:12
In you men accept bribes to shed blood; you take usury and excessive interest and make unjust gain from your neighbors by extortion. And you have forgotten me, declares the Sovereign LORD.
Turns out that charging an unconscionable or exorbitant rate interest is a sin! Who would've thunk it? Kinda like torture and unprovoked, unjustified war. Hmmm. Just something to think about.

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Tuesday, March 03, 2009

Christian Nation?

For decades now, religious right-wingers have been telling us that we need to be a "Christian Nation," and that God is punishing us for permitting abortion and homosexuality. I've always held that America was founded on commerce, specifically mercantilism and imperialism dependent on slavery- not on the Bible or mighty, idealized Christian principles. I also have the philosophy that a "Christian Nation" begins at home- in other words, we all need to work on producing good fruit (love, joy, peace, patience, kindness, etc. etc.) rather than trying to impose or legislate a religious morality.

But in the wake of yet another stock market dive and almost daily revelations about CEOs', Madoff, and the Bush Administration's abuses and misuses of money and government- someone said to me that we seem to be a LONG way from being a "Christian Nation," and that we seem to be a society based on greed , lobbying, deregulation, loopholes, off-the books accounting, mortgage-backed securities, schemes, plots, and getting richer quicker without any consideration of the impact on others. And Rush Limbaugh warns that the Democrats will take away our liberties. What he means is that they'll demand accountability and transparency so that the fat cats won't have the liberty to rob the rest of us blind anymore. We've already seen out privacy and Constitutional protections revoked by the Cheney/Bush government who eliminated habeus corpus, tortured and secretly listened to us.

I may sound like a liberal, even a (gasp) "socialist," and people may accuse me of inciting "class warfare," but the Bible I read says that it is "easier for a camel to go through the eye of a needle than for a rich man to enter the kingdom of God." (Matt 19:24, Mark 10:25, and Luke 18:25). I think that if we were to truly become a "Christian Nation," we would have to become our brothers' keepers. We should not just return the tax structure to what it was like under Reagan, but pre-Reagan (the middle class grew most robustly between 1932 and 1980). The Obama administration is finally starting to talk about the cost of health care and insurance, and it's high time.

The Republicans had control of all three branches of government under George W. Bush. Supposedly, their "base" are conservative-Christians. Not only did we lose our standing in the world in terms of foreign policy, but the current recession (some suspect depression) created by the supply-side, laissez faire economic faith worshiped so devoutly since Ronald Reagan began deregulating markets and busting unions, rhis recession is pulling the entire world's economics into crisis. This isn't God's divine retribution, but it IS direct result of our collective, corporate sin. The sins, not of homosexuality or abortion, or teaching evolution but the sins of greed, arrogance gluttony and avarice.

Gays and illegal immigrants aren't the problem. Iran and Iraq aren't the problem. Muslims and foreigners and Hollywood and high school and college science teachers aren't the problem. We're losing jobs and homes and insurance and benefits and maybe we want to blame Bernie Madoff or George Bush, but let's face it, as the cartoon character Pogo said back in the 50's, "we have met the enemy and he is us." Matthew 28 is important, Jesus did die for our sins so that we can join Him in Heaven someday, but you know what? Matthew 25 is ALSO important. If we aren't feeding the hungry, healing the sick, visiting those in prison, loving the unloved and unlovable- loving our neighbors and even our enemies- if we aren't caring for the poor, the aliens, the widows and orphans- if we are more intent on protecting our profits and avoiding taxes than sharing the fruit of our labor with others in need, then how DARE we call ourselves Christian, let alone a "Christian Nation."
"Listen, my dear brothers: Has not God chosen those who are poor in the eyes of the world to be rich in faith and to inherit the kingdom he promised those who love him? But you have insulted the poor. Is it not the rich who are exploiting you? Are they not the ones who are dragging you into court? they not the ones who are slandering the noble name of him to whom you belong?" ~James 2:5-7

Friday, February 06, 2009

Don't they get it?

I was trying really hard not to post other people's cartoons on this blog anymore but I'm so frustrated with the crap that's going on in DC that I had to. And these three are abosolutely awesome.

Wednesday, January 21, 2009

End of Supply-Side selfishness and short-sightedness?

"Our economy is badly weakened, a consequence of greed and irresponsibility on the part of some, but also our collective failure to make hard choices and prepare the nation for a new age...

...I say to you that the challenges we face are real. They are serious and they are many. They will not be met easily or in a short span of time. But know this, America: They will be met.

On this day, we gather because we have chosen hope over fear, unity of purpose over conflict and discord.

On this day, we come to proclaim an end to the petty grievances and false promises, the recriminations and worn-out dogmas, that for far too long have strangled our politics.

We remain a young nation, but in the words of Scripture, the time has come to set aside childish things (1 Corinthians 13:11). The time has come to reaffirm our enduring spirit; to choose our better history; to carry forward that precious gift, that noble idea, passed on from generation to generation: the God-given promise that all are equal, all are free, and all deserve a chance to pursue their full measure of happiness." ~BHO Inaugural address Jan 20, 2009

In other words, it's time to stop being selfish and short sighted and "Man-up," put on our "big-boy pants" and start looking out for our common best interest, not our personal comfort. High time. I say to this Amen.

Friday, January 09, 2009

A corollary to yesterday's post about political bedfellows


George W. Bush Bush dumped $848,000 worth of Harken Energy stock back in 1990, two months before the company announced a $23.2 million loss; he was 34 weeks late in filing a form the Securities and Exchange Commission required to record the sale... According to Time Magazine, "...Harken concealed losses by selling most of a subsidiary to an off-the-books entity controlled by company insiders. Bush was on the audit committee, which, at least in theory, approved the deal. It's the same tactic used by Enron—on a massive, more pernicious scale..."

Time reported in the same issue that "Halliburton, while Cheney was CEO, greased the books to boost the firm's flagging fortunes." Creative accounting.

Dennis Kozolowski, Ken Lay, Merrill Lynch, Enron, Andersen, Halliburton, Adelphia, R.J. Reynolds, Tyco, Bristol-Meyers, Global Crossing, the list goes on and on of individuals and corporations involved in abuse and corruption during early part of Bush's FIRST term. It's as if there was no S.E.C. no accountability or transparency or ethics of any kind in business, finance, and government.

The Bush years were a new gilded age or cancer-stage capitalism. A culture of corruption flourished.

Is it any wonder that we're now dealing with the likes of Bernard L. Madoff, Goldman Sacs, Lehman Brothers, the entire mortgage-based-securities, and auto executives flying in on private jets to ask Congress for bailouts?

Obscene greed. Yet Conservative Christians only get worked up about abortion and gay marriage. When I wrote columns scrutinizing John McCain's connection to the "Keating 5" and the S&L bailout scandal of the 1980's and how his role in deregulation of the financial sector may have helped lead to our current meltdown I was raked over the coals as some kind of unpatriotic, America-hating, abortion promoting liberal.

Transparency and accountability, and a whole lot of self-discipline is what America needs now.
Time for Relief, Recovery, and a whole lot of REFORM.

But what do I know? People have labeled me a "liberal" and now I have to wear that label like a scarlet letter.

Sunday, December 28, 2008

We need Progress

Recently I was reading about Teddy Roosevelt again and I came upon the speech he made to the newly created Progressive Party after the Republican party powers that be disenfranchised their own primary voters by nominating William Taft in 1912. How different would the political landscape be today if they'd picked up the torch of progressive reform instead of maintaining their practice of protecting the wealthy at the expense of the middle and working classes? I've written a lot about how I think Obama needs to follow the patterns of Franklin Roosevelt since we're in such an economic mess, but maybe he'd do just as well to learn from FDR's Republican cousin (that is, until the Republican Party betrayed him). I wish I could convince all my Republican friends that Teddy's philosophies are far more beneficial for America than Reagan or Bushes. Whatchya gonna do?

"...our aim should be the same in both State and Nation; that is, to use the Government as an efficient agency for the practical betterment of social and economic conditions throughout this land. There are other important things to be done, but this is the most important thing...

I am well aware that every upholder of privilege, every hired agent or beneficiary of the special interests, including many well-meaning parlor reformers, will denounce all this as "Socialism" or "anarchy"--the same terms they used in the past in denouncing the movements to control the railways and to control public utilities. As a matter of fact, the propositions I make constitute neither anarchy nor Socialism, but, on the contrary, a corrective to Socialism and an antidote to anarchy...

the most pressing and immediate need is to deal with the cases of those who are on the level, and who are not only in need themselves, but, because of their need, tend to jeopardize the welfare of those who are better off. We hold that under no industrial order, in no commonwealth, in no trade, and in no establishment should industry be carried on under conditions inimical to the social welfare. The abnormal, ruthless, spendthrift industry of establishment tends to drag down all to the level of the least considerate...

The present conditions of business cannot be accepted as satisfactory. There are too many who do not prosper enough, and of the few who prosper greatly there are certainly some whose prosperity does not mean well for the country. Rational Progressives, no matter how radical, are well aware that nothing the Government can do will make some men prosper, and we heartily approve the prosperity, no matter how great, of any man, if it comes as an incident to rendering service to the community; but we wish to shape conditions so that a greater number of the small men who are decent, industrious and energetic shall be able to succeed, and so that the big man who is dishonest shall not be allowed to succeed at all.

Our aim is to control business, not to strangle it-- our aim is to promote prosperity, and then see to its proper division. We do not believe that any good comes to any one by a policy which means destruction of prosperity; for in such cases it is not possible to divide it because of the very obvious fact that there is nothing to divide. We wish to control big business so as to secure among other things good wages for the wage-workers and reasonable prices for the consumers. Wherever in any business the prosperity of the business man is obtained by lowering the wages of his workmen and charging an excessive price to the consumers we wish to interfere and stop such practices. We will not submit to that kind of prosperity any more than we will submit to prosperity obtained by swindling investors or getting unfair advantages over business rivals. But it is obvious that unless the business is prosperous the wage-workers employed therein will be badly paid and the consumers badly served. Therefore not merely as a matter of justice to the business man, but from the standpoint of the self-interest of the wage-worker and the consumer we desire that business shall prosper; but it should be so supervised as to make prosperity also take the shape of good wages to the wage-worker and reasonable prices to the consumer, while investors and business rivals are insured just treatment, and the farmer, the man who tills the toil, is protected as sediously as the wage worker himself...

One camp has fixed its eyes only on the need of prosperity, loudly announcing that our attention must be confined to securing it in bulk, and that the division must be left to take care of itself (Supply-side, free-market, Reaganomics). This is merely the plan, already tested and found wanting, of giving prosperity to the big men on top, and trusting to their mercy to let something leak through to the mass of their countrymen below--which, in effect, means that there shall be no attempt to regulate the ferocious scramble in which greed and cunning reap the largest rewards.


Read the entire speech at http://www.theodore-roosevelt.com/trarmageddon.html
From Teddy Roosevelt's speech at the Progressive Party Convention, August 6, 1912 in Chicago

Saturday, October 18, 2008

Bulls, Bears, Donkeys and Elephants

http://www.nytimes.com/interactive/2008/10/14/opinion/20081014_OPCHART.html

Since 1929, Republicans and Democrats have each controlled the presidency for nearly 40 years. So which party has been better for American pocketbooks and capitalism as a whole? Well, here’s an experiment: imagine that during these years you had to invest exclusively under either Democratic or Republican administrations. How would you have fared?

As of Friday, a $10,000 investment in the S.& P. stock market index* would have grown to $11,733 if invested under Republican presidents only, although that would be $51,211 if we exclude Herbert Hoover’s presidency during the Great Depression. Invested under Democratic presidents only, $10,000 would have grown to $300,671 at a compound rate of 8.9 percent over nearly 40 years.

See the charts in the New York Times

Grandpa always said, "If you want to live like a Republican, you gotta vote for Democrats."

Thursday, October 02, 2008

A problem 30 years in the making

Back in the early 1980’s when John McCain first entered the Senate, the Reagan administration was encouraging savings and loans to compete with banks without having to abide by the same regulations that banks had to. It started a real estate boom fueled by cheap mortgages and risky investments. Commercial office developments sprang up in cities like Phoenix and Dallas and Denver like weeds, but they remained empty.

The Federal Home Loan Bank Board saw the potential for a mess and set rules to limit the amount and kinds of investments that S&Ls could get involved in. Lincoln Savings and Loan Association of Irvine, California, run by Charles Keating III was one of many S&Ls that choose to ignore the rules.

In 1985 Reagan appointed Edwin Grey, a friend of Keatings to the FHLBB. John McCain and four other senators (the “Keating 5”) meet with the FHLBB and the management of Lincoln S&L. Alan Greenspan and McCain both thought that Lincoln should be allowed to keep on conducting business as usual, ignoring the rules. They pressured the board to let Lincoln get by.

In 1987 Lincoln Savings and Loan Association failed, leaving at least 21,000 investors, mainly elderly and retired, loose their life savings. The Resolution Trust Company was formed by the Federal government to bail out Lincoln and hundreds of other S&Ls, The whole bail out cost us tax payers $125 billion.

One of the other S&Ls was Silverado S&L in Denver that cost $1 billion to bail out itself. Neil Bush, one of President George W. Bush’s brothers was on Silverado’s board of directors. Neil settled out of court when the FDIC filed a civil action against him for fraud and conflict of interest.

McCain and Keating were close friends for years. They took vacations together in the Caribbean on Keating’s private jet. McCain failed to report these trips until the Keating 5 came under investigation. Meanwhile, Keating and Lincoln S&L contributed as much as $112,000 to McCain’s senate campaign.

In 1999 Senator Phil Gramm of Texas (up until recently, one of McCain’s “senior” advisors) co-authored the Gramm-Leach-Billey Act which repealed important regulations imposed back in 1933 to control rampant speculation that led to the banking collapse in the Great Depression. Thanks to Gramm, banks could now get directly involved in the stock market and insurance and encouraged mass mergers so that banks like Goldman Sachs and Lehman Brothers could become “too big to fail.”

Within days of the Supreme Court declaring George W. Bush president in 2000, Gramm added the Commodity Futures Modernization Act into the budget bill. The Modernization Act was designed to keep regulators from controlling new financial tools described as credit "swaps,” like sub-prime mortgages bundled up and sold as securities. Under the Gramm law, neither the Securities and Exchange Commission (SEC) nor the Commodities Futures Trading Commission (CFTC) were able to examine financial institutions like hedge funds or investment banks to guarantee they had the assets necessary to cover their potential losses.

Much of the Commodity Futures Modernization Act was written by lobbyists, including a loophole which exempted companies that trade energy futures, like Enron, from being regulated. CFMA also let banks accept lower down payments on homes and offer loans without having to run credit checks, salary checks or asset checks on customers first. Keep in mind that Phil Gramm has been John McCain’s chief economic adviser.

In 2003 Bush tried to privatize regulation of the financial industry, fortunately he couldn’t get it past the Republican majority held Congress. In 2005 John McCain sponsored a Senate bill which would have created an independent (private, non-government) agency to “regulate” the Federal Home Loan Bank Finance Corporation, Fannie Mae, and Freddie Mac. Once again, a Republican Congress knew better than to eliminate all regulation whatsoever.

Now the Bush Administration proposes spending $700 Billion to support banks. And John McCain throws a “hail Mary” by “suspending” his campaign and begging to cancel the Presidential debates.

Incidentally, as of last week, the Iraq war has cost us in the neighborhood of $557 Billion. By the way, Treasury Secretary Henry Paulson is the former CEO of Goldman Sachs. Could it be that or are the very people in government making these decisions looking out for their own personal wealth?

Paulson’s proposal to Congress insists that any decisions he makes with this $700 Billion must be “Non-reviewable and committed to agency discretion, and may not be reviewed by any court or law or any administrative agency.” What? Is he setting himself up to be the banking Czar?

Republicans should be appalled by the bail out proposal because it amounts to socialism, with the federal government taking control of billions of dollars of private assets. Democrats should be vigilant because that much concentrated power in the executive branch in the interest of corporations and billionaires basically meets all the criteria of fascism except the racism.

Be certainly do need to do something, but it should be carefully crafted in a bi-partisan manor and it needs to include more, not less oversight and regulation. CEOs shouldn’t be paid 500 times as much as workers and they certainly shouldn’t be entitled to millions of dollars in compensation packages or pensions when they’ve driven their banks into the ground.

Working stiffs facing foreclosure need to be helped more than Wall Street speculators. Trusting John McCain to get us out of this mess would be like trusting the fox to guard the hen house.

Thursday, September 25, 2008

Speculation with other people's money; 1929 and 2008


The Michael Douglas/Charlie Sheen movie "Wall Street" explains that the markets have only two emotions, greed and fear, basically the greed ran things for too long, so now fear is running rampant.

The problem really started with a thing called “the global pool of money.” And if the name “pool” makes you think of gambling, as in “an office football pool,” you’re not too far off. Much of Wall Street’s woes have to do with speculating, risk taking, in other words, gambling.

Families can’t afford to save much anymore, but companies and countries are always saving (sort of). Insurance companies save for a catastrophe, pension funds are supposed to save money for your retirement, etc. etc. All the world’s savings amounts to around 70 trillion dollars. Generally, you want your savings to grow, right? Throughout history, countries and major corporations made really safe boring investments- treasury bonds and municipal bonds.

Part of our problem is prosperity. Thanks to technology and globalization, lots of countries that didn’t used to have much money to save, started to. China, India, Saudi Arabia… whether they made their money selling us TVs or oil, they started doing as well as the US, Japan and Western Europe.

In fact, the global pool of money had doubled since 2000. In 2000 this was about 36 trillion dollars. It took hundreds of years for the world to get to 36 trillion. Then, in six years, to get another 36 trillion So there was twice as much money to invest- the world wasn’t ready for it. Twice as much money to invest, but there definitely not twice as many good investments.

For almost two decades, former Federal Reserve Chairman Alan Greenspan kept the prime interest rate at insanely low levels, as low as one percent. In some ways that was good, it staved off inflation and it meant that people could afford cars, computers, college and houses because the rates we’d have to pay on credit, financing and loans was low.

However, that’s also part of why our personal savings rate is so low- because it’s almost not worth saving money because it doesn’t earn much interest.

This meant that investors and fund managers weren’t going to make any money at all on US treasury bonds. So, they started looking around for some low-risk, high-return investment.

Homeowners were paying 5, 7, 9 percent to borrow money from banks.

Wall Street, already famous for “leveraging” and “short-selling” found a way. Leveraging means borrowing money to lend to someone else who’s a bad risk and short-selling is borrowing stocks so you can sell them now because you expect to be able to buy them back later at a lower price and return it to the real owner and pocket the difference between the two prices.
These money changers in the temple figured out how to get the global pool of money involved in high risk mortgages.

Brokers sell mortgages to small banks. Small banks sells them to big investment firms. The market firm takes thousands of mortgages and puts them together. They had thousands of mortgage checks coming in monthly. They counted on that river coming in for at least thirty years. These were called “mortgage backed securities.”

The problem is, this greedy monster demanded TONS of mortgages, so they started buying up mortgages. Banks couldn’t keep up, so they started lowering their standards. They loaned tons of people mortgages without checking their backgrounds. Many even offered “No Income, No Asset” (NINA) loans.

Bottom line, too many people were too anxious to make too much money too quickly.

Boils down to this, too much laisser-faire (hands off) policy for too long has turned capitalism (ordinarily a good thing) into a cancer. For almost thirty years now, we’ve been following a philosophy of giving tax breaks and unsupervised freedom to big corporations, financial institutions and the super-wealthy in hope that prosperity would “trickle-down.”

But what we see again and again is that rather than re-investing in the American economy and providing jobs- what they do with their profits is to gamble with it in hope of getting even richer, or moving their operations overseas. What makes it worse, is that they don’t just use their profits and their tax cuts- time and time again, they’re using our homes and our retirement funds.

Isn’t it time to return to a philosophy of “we’re all in this together,” “I AM my brother’s keeper,” and of noblesse oblige- “to whom much is given, much is expected.”

Maybe you prefer Reagan to Roosevelt, but I gotta tell you, I think that right about now Wall Street and Washington both need to hear two important quotes from FDR's first inaugural address-

"There is nothing to fear but fear itself" and

"in our progress toward a resumption of work we require two safeguards against a return of the evils of the old order; there must be a strict supervision of all banking and credits and investments; there must be an end to speculation with other people's money, and there must be provision for an adequate but sound currency."

Both McCain and Obama would do well to bone up on economics and read Roosevelt's speech. We certainly can’t afford to stay the course on this one. Let's all pray that we come through this storm safe, sound, and SOON!

Thursday, July 31, 2008

Senile, Sneaky, or a little of both?


It's not that he'd be Bush III, it's that he'd be Reagan II; Either McCain is an evil genius or a doddering old codger. Haven't we been down that road before? Yeah, say back in the eighties...

I got to meet John McCain once, it was when he first ran for the Senate in 1986. He gave a press conference at the offices of the Arizona Republic and Phoenix Gazette. He seemed a little stiff and stand-off-ish, but not nearly as smug as Jon Kyle who was running to replace him as one of Arizona’s Congressmen.

I liked that McCain was willing to buck his party for the sake of what he believed was in the best interest of the country. I considered myself a fiscal conservative and was mad as heck at the Reagan administration for letting the federal deficit and the national debt run amok. McCain was a principle supporter of the Gramm-Rudman Act, which was supposed to automatically cut spending in the event of a budget deficit.

But most of politics is smoke and mirrors. One of the authors of Gramm-Rudman, was Texas Republican Phil Gramm.

Gramm had been McCain’s senior economic adviser. He isn’t anymore. You may remember a few weeks ago that he tried to tell people that we aren’t in a recession. "You've heard of mental depression;” he said, “this is a mental recession.” Gramm said that “we have sort of become a nation of whiners, you just hear this constant whining.”

I don’t know about you, but not only do I whine every time I fill up at a gas station, but if the price of oil doesn’t drop soon, I plan to whine a lot when it’s time to fill up the home heating fuel barrel. Coincidently, Gramm was being paid by Swiss bank, UBS to lobby Congress about the U.S. mortgage crisis. McCain has been proudly campaigning on how he won’t be influenced by lobbyists.

What with the Housing crisis going on and failure and looming bail outs of Bear Stearns, Fannie Mae, and Freddie Mac, I think it’s important to have a President who’s comfortable making decisions about the economy. McCain has admitted that “economics is not something I’ve understood as well as I should”

But he has plenty of experience in dealing with issues of banking and predatory loans. Remember he was a member of the so-called "Keating Five.” Between 1982 and 1987, McCain accepted $112,000 in political contributions from Charles Keating Jr. and friends at the Lincoln Savings and Loan Association, along with trips on Keating's jets.

But I’m more concerned with McCain’s performance in the areas of history and geography.
Just last week in an interview with Katie Couric on CBS, McCain boasted that President Bush’s “surge” in Iraq made a movement possible called the Anbar Awakening,” in which Sunni tribes united to resist Al Qaida. The problem is that the Anbar Awakening happened in 2006, whereas the American surge took place in 2007. I can’t help but remind you that Al Qaida wasn’t ever in Iraq until AFTER the United States invaded, because Saddam Hussein hated them, as do most Iraqis. Also keep in mind that it was Al Qaida who attacked us in 2001, not Iraq.

Also, has anyone told McCain that there is no Chezkslovakia anymore? How about that Iraq and Pakistan don't share a border?

At least McCain’s friends, Connecticut Senator Joe Leiberman had the decency to explain to him that Iran was training Hamas members, not Al Queda members.

Obama has utilized the internet not only to bring in millions of small dollar donors instead of relying on the conventional hand full of multi-thousand dollar donors that politicians used to, but also to establish a vast ground-roots movement, especially vitalized by young voters. On the other hand, 72 year old McCain doesn’t do the internet. I appreciate that not many 72 year old would feel the need to establish their own Facebook accounts, but too much information, education, communication and commerce take place on the web for any future President to be able to afford to be technologically illiterate.

He thinks that the media has been giving too much attention to Obama, but come on, if Barrack Obama had made the same kind of gaffes that McCain has been making- especially in say a two or three week period, wouldn't the media have eaten him alive?

There was a time when I had patience for, even a level of comfort with McCain, but I just can't seem to take him seriously anymore.

And here's another thing- (and please forgive me for using these ugly words, it's just to make a point) if it's wrong for Jesse Jackson to use the word "nigger," why is it okay for McCain to use the word "Gook?" Isn't it insanely racist against Asians?

Thursday, March 27, 2008

Raiders of the Lost Rs

Professor Jones had just finished his lecture and was explaining to the museum curator about how a competing archaeologist had set a trap for him and taken the idol which Jones had spent months trying to procure.

“Of course, Indy, of course, you know the museum will pay for anything you have, but my friend,” Brody urged, you may have something bigger to tackle for now,” and he ushered his colleague into the college library where two very official looking men were waiting by a research table in trench coats, brief cases, gray fedora hats and dark glasses.

“Dr. Jones,” the bigger man greeted him as all four settled into library chairs, “what do you know about the ‘invisible hand’ of Adam Smith?”

“Legends mostly, it’s a powerful myth among some western civilizations, especially the oil seeking tribes of old white male elephants and war hawks in North America,” the grizzled adventurer noted, “they treat it like a deity, really, supposed to guide the ebb and flow of financial markets.”

“We’ve found evidence in the beltway of this cult, policy makers chanting an obscure incantation ‘Laissez-faire,’ and something about a great god ‘Reagan’ and cutting things call ‘the prime rate,’ does any of this make sense to you?"

“Oh, sheez ,” Jones mumbled as he rubbed his face. “Let me read you something that a very wise man once wrote,” he started as he pulled a yellowed and dog-eared edition from his leather satchel.

“…Practices of the unscrupulous money changers stand indicted in the court of public opinion, rejected by the hearts and minds of men…they have tried, but their efforts have been cast in the pattern of an outworn tradition. Faced by failure of credit, they have proposed only the lending of more money-” Jones read with the help of his seldom worn spectacles.

“He, he’s ssu su-saying that they had let things get out of hand because of their own greed and materialism and then when they tried to fix it, they just did more of the same- like throwing gas on a ff-fa-fire, is that right?” asked the smaller of the two men, nervously fiddling with his own glasses.

“Something like that,” sighed the hard-boiled hero.

“Is there anything we can do? A better way? Even if it’s difficult and takes years to get back on track?” Inquired the big man. “There’s great fear of an ancient demon, the elephant and hawk tribes fear it so much that they dare not even utter it’s name, ‘Ree-Sez-Eon’ or something like that.”

This drew another heavy sigh from the archaeologist. He stood up slowly, ran his hand threw his hair, and headed for a section of books behind where the g-men were sitting.
“What is it?” asked the bigger man.

“The Rs the Rs” Jones muttered almost under his breath.

“Ah, the ARRRs,” nodded his friend Marcus Brody in recognition.

“What are these ‘ares?’ wh-what are they?” asked the little man in glasses.
Indiana Jones traced his finger along the spines of several large books until he finally found the one he needed. He slipped it off the shelf, dragging cob webs and the smell of mildew with it. Insects scurries into the dark gap left by the heavy volume.

“Here,” Jones said as he heaved the massive book in front of the two agents, opening it to the middle, a cloud of dust in it’s wake. He carefully brushed away another layer of dust with his hand and began tracing a column of paragraphs with his finger, stopping in the middle and pointing, “Here,” he said, pointing again with his finger to emphasize the discovery. Each of the men scooted closer in their seats, the one straightened his glasses while the other pulled a pair out of his coat pocket and put them on, straining to read the ancient words.

“Relief, Recovery, and Reform?” read the larger man who’d just donned his glasses.

“Yeah,” sighed Jones, as if the weight of the world depended on the words. “Relief, Recovery, and most importantly REFORM,” he repeated.

“In the first part of the century, the people practiced strange religions, ‘materialism,’ ‘unsupervised capitalism,’ ‘conspicuous consumption,’ ‘social-Darwinism,’ they were ruthless, heartless, and above all reckless cults that not only raped the land of resources but built empires on the backs of the poor and the middle classes. Ironically, the elephants and hawks held onto power by making the under-classes afraid of what they called ‘class-warfare’ and socialism, not to mention immigrants and Blacks.” He explained, “It was terrible, banks failed, unemployment skyrocketed…”

“And these three ‘R’s fixed everything?” the large man pressed.

“Well, you’re never going to have things perfect,” said Jones, “The deal was that you had to be pragmatic. The important thing was to try to make things fair for the most people, not just the people who already had it good. Of course there were also some very important pieces like collective bargaining for workers- which of course meant letting them to organize in the first place. A progressive tax structure, the idea was that we’re all in this together and the more you could handle, the more you were asked to take on. That way, it was easier for the people who actually worked for a living to save and get ahead. And then there was the biggest R of all was what prevented things like bank failures in the first place,” Jones paused for dramatic effect, and gave the g-men an intense look, “Regulation.”

"What kind of a book is this?" asked the two men it ogether.

"U.S.History, what else?" he replied.

Thursday, March 20, 2008

Markets low, oil high?

"...the rulers of the exchange of mankind's goods have failed through their own stubbornness and their own incompetence, have admitted their failures and abdicated. Practices of the unscrupulous money changers stand indicted in the court of public opinion, rejected by the hearts and minds of men.

True, they have tried, but their efforts have been cast in the pattern of an outworn tradition. Faced by failure of credit, they have proposed only the lending of more money.

Stripped of the lure of profit by which to induce our people to follow their false leadership, they have resorted to exhortations, pleading tearfully for restored conditions. They know only the rules of a generation of self-seekers.

They have no vision, and when there is no vision the people perish.

The money changers have fled their high seats in the temple of our civilization (see Matthew 21:11-13). We may now restore that temple to the ancient truths.

The measure of the restoration lies in the extent to which we apply social values more noble than mere monetary profit.

Happiness lies not in the mere possession of money, it lies in the joy of achievement, in the thrill of creative effort.

The joy and moral stimulation of work no longer must be forgotten in the mad chase of evanescent profits. These dark days will be worth all they cost us if they teach us that our true destiny is not to be ministered unto but to minister to ourselves and to our fellow-men.

Recognition of the falsity of material wealth as the standard of success goes hand in hand with the abandonment of the false belief that public office and high political position are to be values only by the standards of pride of place and personal profit, and there must be an end to a conduct in banking and in business which too often has given to a sacred trust the likeness of callous and selfish wrongdoing.

Small wonder that confidence languishes, for it thrives only on honesty, on honor, on the sacredness of obligations, on faithful protection, on unselfish performance. Without them it cannot live."

From FDR's first inagural address, 1933- the speech where he declared we have nothing to fear but fear itself.

Do you ever feel like our leaders have been trying to use fear to manipulate us?

  • Fear of terrorists (trying to link AlQuaeda to Iran, even though Iran is Shi'a and hates Muhabeist Suniis like AlQuaeda)
  • Fear of "the other"- blaming our economic and crime problems on immigrants desperate for a better way of life
  • Fear of what is different, a black man with an Arab middle name, or homosexuals or anyone who believes differently that the most visible and vocal television preachers.

But fear is wrong, even in the most difficult times. "There is no fear in love. But perfect love drives out fear, because fear has to do with punishment. The one who fears is not made perfect in love." 1 John 4:18

Just some things to think about.

Thursday, September 13, 2007

Mourning in America


So, thanks to Ronald Reagan, George H. W. Bush (41) and now George W. Bush (43), the people who have to work for a living and can't afford to invest enough and don't inherit enough to have their wealth work for them- are responsible for more of the tax burden, and are earning and retaining less of our earnings. Meanwhile, inflation is creeping up, the economy is a wreck, unemployment is soaring, gasoline and milk are at all time highs, and homes are being foreclosed on. In 1970 25% of Americans were members of Labor Unions, today that's less than 8%. Thanks to Free Trade and irresponsible corporations, all of our manufacturing jobs have been sent overseas and the things we buy from China poison us.

Believe me, you don't want me to show you charts on our National Debt. But I can tell you that we owe most of it to China, and we keep borrowing from them. This war in Iraq? Something in the neighborhood of $8 BILLION a week. Who do we borrow it from? Take a guess.

I have nothing against China (Nixon) but as a middle aged Midwestern guy with blue-collar roots, I have had enough with Republican bullshit. They are not conservative, and they're not patriotic. They care more about their investment portfolios and their stockholders than their citizens or the principles contained in the Constitution and the Bill of Rights. Their world view has wreaked havoc on the American Dream for the last 27 years. Isn't it time for a change?

Something serious to think about

"In a country well governed, poverty is something to be ashamed of. In a country badly governed, wealth is something to be ashamed of."
~Confucius