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Do the Democrats Really Want to Bear the Blame for a Crash that Wall Street Will Cause?

This post by Lynn Parramore makes the point that the next crash is coming and probably will be blamed on the Democrats. It’s a great point, but it needs to be pursued further.

What if we have another Republican sweep in 2014, like 2010, but worse? Then we’re going to have more policies that increase inequality. Even less regulation, causing even more domination of our politics by corporations and the financial sector.

We’ll have more military spending and more wars, along with more shredding and privatization of the social safety net. We’ll have even less environmental regulation, and even more global warming; more drill baby drill, and less and less of public education. At the State level, we’ll have more of the war on women, blacks, seniors, and hispanics; more corruption from corporations and the rich giving “gifts” to officeholders; more voter suppression, even more police brutality and denial of first amendment rights, more religion in our schools accompanied by more guns everywhere, and more Scalias, Alitos, Thomases, and Robertses subjugating everyone to corporations.

And what’s frightening about all this is that the people who want to see this kind of America, also are the people with the power to gamble irresponsibly in the international financial innovation products gambling casino, and to bring about the very crash that will be laid at the door of the Democrats. Of course, the Democrats deserve this because when they had the power in early 2009, all through 2010, they cared more about the filibuster in the Senate, and their campaign contributions, and their possibilities of lucrative work after Congress, then they did about economic recovery with full employment, taking the big banks and Wall Street down, and getting truly universal health care through passing an enhanced Medicare for All program.

But whether they deserve it, or not, doesn’t change the likely result of a Republican sweep. It will be a disaster for most of us, even worse than the sweep of 2010, because now the Republicans are starting from a stronger position in the State and Federal Governments, and afterward they are likely to be even more unobstructed in working their will than in the past.

The only way to avoid another crash that would be blamed on the Democrats, is to act decisively to get the financial sector under very tight regulatory control, as soon as possible. But, in turn, to do that, we must hope that there is no crash before the election of 2014 and also, if we can get there without a crash happening first, to then manage a sound Republican defeat in that election, so that the Democrats can get back the House and keep the Senate. But how can that be done?

In only one way. The Democrats must bring about a radical change in the American political climate that places the burden of the Federal Government’s continued failure to ease the declining economic state, and anxiety about the future, of most of us, squarely on the shoulders of the Republicans, while leaving no rationalizations, or excuses the Republicans can use to place blame for those failures on the Democrats. The way to change that climate lies with the President and the Democrats in Congress.

The President must put an end to the normative standard of mandating fiscal neutrality for domestic programs and non-emergency domestic legislation having fiscal implications. When every fiscal policy initiative is evaluated first for its fiscal neutrality, rather than for the balance between its anticipated real costs and benefits relative to public purpose, then green eye shade private sector accounting norms replace the public purpose as the goal of government policy. The President can and should make fiscal neutrality an obsolete standard, by ordering the Secretary of the Treasury to have the US Mint produce a $60 Trillion platinum coin, and then deposit it in its Public Enterprise Fund (PEF) account at the New York Fed, where the Treasury can fill the Treasury General Account (TGA), the public purse, by sweeping the seigniorage from the PEF.

The President should then announce his action and explain its implications including:

CommunityMy FDL

Do the Democrats Really Want to Bear the Blame for a Crash that Wall Street Will Cause?

This post by Lynn Parramore makes the point that the next crash is coming and probably will be blamed on the Democrats. It’s a great point, but it needs to be pursued further.

What if we have another Republican sweep in 2014, like 2010, but worse? Then we’re going to have more policies that increase inequality. Even less regulation, causing even more domination of our politics by corporations and the financial sector.

We’ll have more military spending and more wars, along with more shredding and privatization of the social safety net. We’ll have even less environmental regulation, and even more global warming; more drill baby drill, and less and less of public education. At the State level, we’ll have more of the war on women, blacks, seniors, and hispanics; more corruption from corporations and the rich giving “gifts” to officeholders; more voter suppression, even more police brutality and denial of first amendment rights, more religion in our schools accompanied by more guns everywhere, and more Scalias, Alitos, Thomases, and Robertses subjugating everyone to corporations.

And what’s frightening about all this is that the people who want to see this kind of America, also are the people with the power to gamble irresponsibly in the international financial innovation products gambling casino, and to bring about the very crash that will be laid at the door of the Democrats. Of course, the Democrats deserve this because when they had the power in early 2009, all through 2010, they cared more about the filibuster in the Senate, and their campaign contributions, and their possibilities of lucrative work after Congress, then they did about economic recovery with full employment, taking the big banks and Wall Street down, and getting truly universal health care through passing an enhanced Medicare for All program.

But whether they deserve it, or not, doesn’t change the likely result of a Republican sweep. It will be a disaster for most of us, even worse than the sweep of 2010, because now the Republicans are starting from a stronger position in the State and Federal Governments, and afterward they are likely to be even more unobstructed in working their will than in the past.

The only way to avoid another crash that would be blamed on the Democrats, is to act decisively to get the financial sector under very tight regulatory control, as soon as possible. But, in turn, to do that, we must hope that there is no crash before the election of 2014 and also, if we can get there without a crash happening first, to then manage a sound Republican defeat in that election, so that the Democrats can get back the House and keep the Senate. But how can that be done?

In only one way. The Democrats must bring about a radical change in the American political climate that places the burden of the Federal Government’s continued failure to ease the declining economic state, and anxiety about the future, of most of us, squarely on the shoulders of the Republicans, while leaving no rationalizations, or excuses the Republicans can use to place blame for those failures on the Democrats. The way to change that climate lies with the President and the Democrats in Congress.

The President must put an end to the normative standard of mandating fiscal neutrality for domestic programs and non-emergency domestic legislation having fiscal implications. When every fiscal policy initiative is evaluated first for its fiscal neutrality, rather than for the balance between its anticipated real costs and benefits relative to public purpose, then green eye shade private sector accounting norms replace the public purpose as the goal of government policy. The President can and should make fiscal neutrality an obsolete standard, by ordering the Secretary of the Treasury to have the US Mint produce a $60 Trillion platinum coin, and then deposit it in its Public Enterprise Fund (PEF) account at the New York Fed, where the Treasury can fill the Treasury General Account (TGA), the public purse, by sweeping the seigniorage from the PEF.

The President should then announce his action and explain its implications including:

— The seigniorage from the $60 T coin (nearly all of the $60 T) would be used to pay off all Federal debt subject to the limit as it falls due, so that eventually all such “national debt” will be paid down to zero.

— The seigniorage can also be used for 15 – 25 years to remove the need to issue any new debt instruments when the Executive wants to spend Congressional deficit appropriations.

— The US Treasury now has plenty of money to repay all previous Treasury debt and to perform all deficit spending Congress is likely to appropriate for a very long time to come.
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