[Majorityrights News] Alex Navalny, born 4th June, 1976; died at Yamalo-Nenets penitentiary 16th February, 2024 Posted by Guessedworker on Friday, 16 February 2024 23:43.
[Majorityrights Central] A couple of exchanges on the nature and meaning of Christianity’s origin Posted by Guessedworker on Tuesday, 25 July 2023 22:19.
[Majorityrights News] Is the Ukrainian counter-offensive for Bakhmut the counter-offensive for Ukraine? Posted by Guessedworker on Thursday, 18 May 2023 18:55.
In what is being called the worst financial crisis since 1929, the US stock market has lost a third of its value in the space of a month, wiping out all of its gains of the last three years. When the Federal Reserve tried to ride to the rescue, it only succeeded in making matters worse. The government then pulled out all the stops. To our staunchly capitalist leaders, socialism is suddenly looking good.
The financial crisis began in late February, when the World Health Organization announced that it was time to prepare for a global pandemic. The Russia-Saudi oil price war added fuel to the flames, causing all three Wall Street indices to fall more than 7 percent on March 9. It was called Black Monday, the worst drop since the Great Recession in 2008; but it would get worse.
On March 12, the Fed announced new capital injections totaling an unprecedented $1.5 trillion in the repo market, where banks now borrow to stay afloat. The market responded by driving stocks 8% lower.
On Sunday, March 15, the Fed emptied its bazooka by lowering the fed funds rate nearly to zero and announcing that it would be purchasing $700 billion in assets, including federal securities of all maturities, restarting its quantitative easing program. It also eliminated bank reserve requirements and slashed Interest on Excess Reserves (the interest it pays to banks for parking their cash at the Fed) to 0.10%. The result was to cause the stock market to open on Monday nearly 10% lower. Rather than projecting confidence, the Fed’s measures were generating panic.
As financial analyst George Gammon observes, the Fed’s massive $1.5 trillion in expanded repo operations had few takers. Why? He says the shortage in the repo market was not in “liquidity” (money available to lend) but in “pristine collateral” (the securities that must be put up for the loans). Pristine collateral consists mainly of short-term Treasury bills. The Fed can inject as much liquidity as it likes, but it cannot create T-bills, something only the Treasury can do. That means the government (which is already $23 trillion in debt) must add yet more debt to its balance sheet in order to rescue the repo market that now funds the banks.
The Fed’s tools alone are obviously incapable of stemming the bloodletting from the forced shutdown of businesses across the country. Fed chair Jerome Powell admitted as much at his March 15 press conference, stating, “[W]e don’t have the tools to reach individuals and particularly small businesses and other businesses and people who may be out of work …. We do think fiscal response is critical.” “Fiscal policy” means the administration and Congress must step up to the plate.
What about using the Fed’s “nuclear option” – a “helicopter drop” of money to support people directly? A March 16 article in Axios quoted former Fed senior economist Claudia Sahm:
The political ramifications of the Fed essentially printing money and giving it to people – there are ways to do it, but the problem is if the Fed does this and Congress still has not passed anything … that would mean the Fed has stepped in and done something that Congress didn’t want to do. If they did helicopter money without congressional approval, Congress could, and rightly so, end the Fed.
The government must act first, before the Fed can use its money-printing machine to benefit the people and the economy directly.
The Fed, Congress and the Administration Need to Work as a Team
On March 13, President Trump did act, declaring a national emergency that opened access to as much as $50 billion “for states and territories and localities in our shared fight against this disease.” The Dow Jones Industrial Average responded by ending the day up nearly 2,000 points, or 9.4 percent.
The same day, Democratic presidential candidate Rep. Tulsi Gabbard proposed a universal basic income of $1,000 per month for every American for the duration of the crisis. She said, “Too much attention has been focused here in Washington on bailing out Wall Street banks and corporate industries as people are making the same old tired argument of how trickle-down economics will eventually help the American people.” Meanwhile the American taxpayer “gets left holding the bag, struggling and getting no help during a time of crisis.” H.R. 897, her bill for an emergency UBI, she said was the most simple, direct form of assistance to help weather the storm.
“Dissident Discourse /w Majority Rights - Ethnocentrism Extravaganza”
The title would probably more accurately read “Daniels Speaks with Faustian Spirit”, who, with the help of a bit of right wing trolling from the chat, “an extravaganza” of right wing trolling, offers up challenges to the platform that DanielS is promoting. I was expecting a more unfettered occasion to set out some ideas, and not particularly delighted to deal with challenges from right wingers, particularly those advocating Christianity/Jesus, Nazism/Hitler, Scientism/Might Makes Right etc., but with Faustians’ platform of Dissident Discourse and his obvious concern for our common cause and enemies of the interests of European peoples, the underlying will is good to allow our discourse to move on its course to agreement, alignment and coordination.
Posted by DanielS on Sunday, 16 December 2018 13:39.
Democrat Alexandria Ocasio-Cortez is part of a group of Congress members pushing for a Green New Deal. (Charles Krupa / AP Photo)
TruthDig.Com, “This Radical Plan to Fund the ‘Green New Deal’ Just Might Work”, 16 Nov 2018:
With what author and activist Naomi Klein calls “galloping momentum,” the “Green New Deal” promoted by Representative-elect Alexandria Ocasio-Cortez, D-N.Y., appears to be forging a political pathway for solving all of the ills of society and the planet in one fell swoop. Her plan would give a House select committee “a mandate that connects the dots” between energy, transportation, housing, health care, living wages, a jobs guarantee and more. But even to critics on the left, it is merely political theater, because “everyone knows” a program of that scope cannot be funded without a massive redistribution of wealth and slashing of other programs (notably the military), which is not politically feasible.
That may be the case, but Ocasio-Cortez and the 22 representatives joining her in calling for a select committee also are proposing a novel way to fund the program, one that could actually work. The resolution says funding will come primarily from the federal government, “using a combination of the Federal Reserve, a new public bank or system of regional and specialized public banks, public venture funds and such other vehicles or structures that the select committee deems appropriate, in order to ensure that interest and other investment returns generated from public investments made in connection with the Plan will be returned to the treasury, reduce taxpayer burden and allow for more investment.”
A network of public banks could fund the Green New Deal in the same way President Franklin Roosevelt funded the original New Deal. At a time when the banks were bankrupt, he used the publicly owned Reconstruction Finance Corporation as a public infrastructure bank. The Federal Reserve could also fund any program Congress wanted, if mandated to do so. Congress wrote the Federal Reserve Act and can amend it. Or the Treasury itself could do it, without the need to even change any laws. The Constitution authorizes Congress to “coin money” and “regulate the value thereof,” and that power has been delegated to the Treasury. It could mint a few trillion-dollar platinum coins, put them in its bank account and start writing checks against them. What stops legislators from exercising those constitutional powers is simply that “everyone knows” Zimbabwe-style hyperinflation will result. But will it? Compelling historical precedent shows that this need not be the case.
Michael Hudson, professor of economics at the University of Missouri-Kansas City, has studied the hyperinflation question extensively. He writes that disasters such as Zimbabwe’s fiscal troubles were not due to the government printing money to stimulate the economy. Rather, “Every hyperinflation in history has been caused by foreign debt service collapsing the exchange rate. The problem almost always has resulted from wartime foreign currency strains, not domestic spending.”
As long as workers and materials are available and the money is added in a way that reaches consumers, adding money will create the demand necessary to prompt producers to create more supply. Supply and demand will rise together and prices will remain stable. The reverse is also true. If demand (money) is not increased, supply and gross domestic product (GDP) will not go up. New demand needs to precede new supply.
The Public Bank Option: The Precedent of Roosevelt’s New Deal
Infrastructure projects of the sort proposed in the Green New Deal are “self-funding,” generating resources and fees that can repay the loans. For these loans, advancing funds through a network of publicly owned banks would not require taxpayer money and could actually generate a profit for the government. That was how the original New Deal rebuilt the country in the 1930s at a time when the economy was desperately short of money.
The publicly owned Reconstruction Finance Corporation (RFC) was a remarkable publicly owned credit machine that allowed the government to finance the New Deal and World War II without turning to Congress or the taxpayers for appropriations. First instituted in 1932 by President Herbert Hoover, the RFC was not called an infrastructure bank and was not even a bank, but it served the same basic functions. It was continually enlarged and modified by Roosevelt to meet the crisis of the times, until it became America’s largest corporation and the world’s largest financial organization. Its semi-independent status let it work quickly, allowing New Deal agencies to be financed as the need arose.
The Reconstruction Finance Corporation Act of 1932 provided the financial organization with capital stock of $500 million and the authority to extend credit up to $1.5 billion (subsequently increased several times). The initial capital came from a stock sale to the U.S. Treasury. With those resources, from 1932 to 1957 the RFC loaned or invested more than $40 billion. A small part of this came from its initial capitalization. The rest was borrowed, chiefly from the government itself. Bonds were sold to the Treasury, some of which were then sold to the public, although most were held by the Treasury. All in all, the RFC ended up borrowing a total of $51.3 billion from the Treasury and $3.1 billion from the public.
In this arrangement, the Treasury was therefore the lender, not the borrower. As the self-funding loans were repaid, so were the bonds that were sold to the Treasury, leaving the RFC with a net profit. The financial organization was the lender for thousands of infrastructure and small-business projects that revitalized the economy, and these loans produced a total net income of $690,017,232 on the RFC’s “normal” lending functions (omitting such things as extraordinary grants for wartime). The RFC financed roads, bridges, dams, post offices, universities, electrical power, mortgages, farms and much more, and it funded all this while generating income for the government.
The Central Bank Option: How Japan Is Funding Abenomics with Quantitative Easing
The Federal Reserve is another Green New Deal funding option. The Fed showed what it can do with “quantitative easing” when it created the funds to buy $2.46 trillion in federal debt and $1.77 trillion in mortgage-backed securities, all without inflating consumer prices. The Fed could use the same tool to buy bonds earmarked for a Green New Deal, and because it returns its profits to the Treasury after deducting its costs, the bonds would be nearly interest-free. If they were rolled over from year to year, the government, in effect, would be issuing new money.
This is not just theory. Japan is actually doing it, without creating even the modest 2 percent inflation the government is aiming for. “Abenomics,” the economic agenda of Japan’s Prime Minister Shinzo Abe, combines central bank quantitative easing with fiscal stimulus (large-scale increases in government spending). Since Abe came into power in 2012, Japan has seen steady economic growth, and its unemployment rate has fallen by nearly half, yet inflation remains very low, at 0.7 percent. Social Security-related expenses accounted for 55 percent of general expenditure in Japan’s 2018 federal budget, and a universal health care insurance system is maintained for all citizens. Nominal GDP is up 11 percent since the end of the first quarter of 2013, a much better record than during the prior two decades of Japanese stagnation, and the Nikkei stock market is at levels not seen since the early 1990s, driven by improved company earnings. Growth remains below targeted levels, but according to Financial Times, this is because fiscal stimulus has actually been too small. While spending with the left hand, the government has been taking the money back with the right, increasing the sales tax from 5 to 8 percent.
Abenomics has been declared a success even by the once-critical International Monetary Fund. After Abe crushed his opponents in 2017, Noah Smith wrote in Bloomberg, “Japan’s long-ruling Liberal Democratic Party has figured out a novel and interesting way to stay in power—govern pragmatically, focus on the economy and give people what they want.” Smith said everyone who wanted a job had one, small and midsize businesses were doing well; and the Bank of Japan’s unprecedented program of monetary easing had provided easy credit for corporate restructuring without generating inflation. Abe had also vowed to make both preschool and college free.
Not that all is idyllic in Japan. Forty percent of Japanese workers lack secure full-time employment and adequate pensions. But the point underscored here is that large-scale digital money-printing by the central bank to buy back the government’s debt, combined with fiscal stimulus by the government (spending on “what the people want”), has not inflated Japanese prices, the alleged concern preventing other countries from doing the same.
Abe’s novel economic program has done more than just stimulate growth. By selling its debt to its own central bank, which returns the interest to the government, the Japanese government has, in effect, been canceling its debt. Until recently, it was doing this at a whopping rate of $720 billion per year. According to fund manager Eric Lonergan in a February 2017 article:
The Bank of Japan is in the process of owning most of the outstanding government debt of Japan (it currently owns around 40%). BOJ holdings are part of the consolidated government balance sheet. So its holdings are in fact the accounting equivalent of a debt cancellation. If I buy back my own mortgage, I don’t have a mortgage.
If the Federal Reserve followed suit and bought 40 percent of the U.S. national debt, it would be holding $8 trillion in federal securities, three times its current holdings from its quantitative easing programs. Yet liquidating a full 40 percent of Japan’s government debt has not triggered price inflation.
Posted by DanielS on Wednesday, 21 November 2018 06:00.
Innocent until proven guilty we are.
Nobody alive should be presumed guilty and made to suffer and pay with their lives and ethnonationhood, even if it is true that forebears may have over corrected, even vastly. Where people manifest traits of prior generations so as to act criminally, as homicidal imperial supremacists, that’s another matter.
Until then, it is a general UN agreement that collective punishment is not valid….let alone for the historical misdeeds of regimes from prior generations.
Nevertheless, the vast wounds, the gaping chasms of genetic capital that many may vaguely perceive as family and loved ones lost, yearn over, if not feel acutely - these losses in our genetic capital will likely well up through our unconscious and conscious systemically and must be recognized.
That caveat having been issued, having absolved present generations, we will move on to correct the record of imperialist misdeeds of prior generations and attempted cover-ups by a more recent generation.
We will be addressing the notion that Hitler and the Nazis were acting in sheer defense and that they were making bonafide peace offerings, that the Allies were the true aggressors.
To get a more accurate and fair understanding of the sources of the conflict, we need to be fairly comprehensive about the history - will begin with the more recent history and work back into historical origins… reversing the usual Nazi sympathetic order of historical survey, from Versailles to the present, as if history started there.
We will indeed begin with that fairly recent history of the conflict of imperialism and nationalism, The Treaty of Versaille’s division of national boundaries…and then we’ll work back into the relevant histories from there. Most Westerners don’t really know that in addition to the Treaty of Saint Germain’s retention of the Sudetanland for Czech, that there were only a handful relevant cities that Versailles designated for Poland and one neutral - Danzig - that Hitler was disputing or claiming as eminently warranted to recapture.
In addition to that area of Czech and those few cities of Poland, there were only villages and areas occupied by Germans within what would be a necessary corridor to the Polish nation for strategic and economic access to the sea; but there was the additional factor to their having historical claim and value to national morale, issues which we will address as well.
The common idea spread among White Nationalists that the Versailles borders were thoughtlessly drawn, arbitrarily taking land from Germany that Hitler merely and justifiably wanted back for Germany is far from beyond question; nor is it accurate to say that his designs stopped there.
Regarding territory granted to Poland, we are are talking about a handful of cities of appreciable size - Bromberg, Thorn, Posen, Gaudzen, Kulm, Gessen and a smaller one, Lisa, along with one being made into a free city, Danzig, that the Nazis and their sympathizers would dispute as rallying propaganda, as “rightfully German.”. ..and “places where the Poles demonstrated their pugnaciousness against Germans.” We’ve touched upon Danzig, setting it out as a central issue for elaboration later…
Daily Telegraph, “Can German and Polish claims to Danzig be reconciled?” - May 5, 1939
Are we to realise soon the significance of Frederick the Great’s words, “Who rules over the mouth of the Vistula, rules over Poland better than the King of Poland himself”? Herr Hitler received a birthday gift of the freedom of Danzig. It remains to be seen whether this will involve Danzig’s receiving the “freedom” of Herr Hitler.
The answer, of course, was no, Hitler would not grant Danzig its freedom and he thought of it much the same as did Frederick the Great. We’ll talk about the history of Polish Gdansk and the conflict between Germans and Polish in history which seem largely to have been sparked over Danzig to begin with.
Poznan, where the first Polish kings are buried.
Suffice it to say, Roman Dmowski, called the father of Polish nationalism and a representative of Poland at Versailles, thought Danzig should be Polish, as it was in 1793 when Frederick the Great took it away for Prussia.
Having set the issue of Danzig out, lets set forth disputes which should have been more clear to the Polish side - Poznan and Gniezno.
Poznan is the original founding city of Polish nationhood - in fact, the first Polish kings are buried there; nearby Gniezno represented its consecration into Christendom, which at the time was corollary to the birth of nationhood.
Fort VII, Poznan, where the Nazis exacted revenge against intelligentsia of the Greater Polish Uprising and experimented with their first gas chambers.
Leszno, another smallish Polish city near Poznan, took in some Czech refugees from the German slaughter of Czechs in the Thirty Years War - which we will discuss as a likely historical factor in the Treaty of Saint Germain’s figuring, logistical and historical calculation that the Sudetenland should remain part of Bohemia. But for now, we just need to mention that these three cities, Poznan, Gniezno and Leszno would be among those audaciously retaken by Pilsudski and the Poles in the Greater Poland Uprising of 1918-19….. and confirmed though correctly by Versailles as Polish, would cause great consternation and will to revenge on the part of Hitler and the Nazis.
In fact, those who were partisans or military intelligentsia in this uprising were targeted by the Nazis two decades later, killed in places like Poznan’s Fort VII.
Posted by DanielS on Thursday, 25 October 2018 15:46.
Student Debt Slavery II: Time to Level the Playing Field
2018 by Ellen Brown
This is the second in a two-part article on the debt burden America’s students face. Read Part 1 here.
The lending business is heavily stacked against student borrowers. Bigger players can borrow for almost nothing, and if their investments don’t work out, they can put their corporate shells through bankruptcy and walk away. Not so with students. Their loan rates are high and if they cannot pay, their debts are not normally dischargeable in bankruptcy. Rather, the debts compound and can dog them for life, compromising not only their own futures but the economy itself.
“Students should not be asked to pay more on their debt than they can afford,” said Donald Trump on the presidential campaign trail in October 2016. “And the debt should not be an albatross around their necks for the rest of their lives.” But as Matt Taibbi points out in a December 15 article, a number of proposed federal changes will make it harder, not easier, for students to escape their debts, including wiping out some existing income-based repayment plans, harsher terms for graduate student loans, ending a program to cancel the debt of students defrauded by ripoff diploma mills, and strengthening “loan rehabilitation” – the recycling of defaulted loans into new, much larger loans on which the borrower usually winds up paying only interest and never touching the principal. The agents arranging these loans can get fat commissions of up to 16 percent, an example of the perverse incentives created in the lucrative student loan market. Servicers often profit more when borrowers default than when they pay smaller amounts over a longer time, so they have an incentive to encourage delinquencies, pushing students into default rather than rescheduling their loans. It has been estimated that the government spends $38 for every $1 it recovers from defaulted debt. The other $37 goes to the debt collectors.
The securitization of student debt has compounded these problems. Like mortgages, student loans have been pooled and packaged into new financial products that are sold as student loan asset-backed securities (SLABS). Although a 2010 bill largely eliminated private banks and lenders from the federal student loan business, the “student loan industrial complex” has created a $200 billion market that allows banks to cash in on student loans without issuing them. About 80 percent of SLABS are government-guaranteed. Banks can sell, trade or bet on these securities, just as they did with mortgage-backed securities; and they create the same sort of twisted incentives for loan servicing that occurred with mortgages.
According to the Consumer Financial Protection Bureau (CFPB), virtually all borrowers with federal student loans are currently eligible to make monthly payments indexed to their earnings. That means there should be no defaults among student borrowers. Yet one in four borrowers is now in default or struggling to stay current. Why? Student borrowers are reporting widespread mishandling of accounts, unexplained exorbitant fees, and outright deception as they are bullied into default, tactics similar to those that homeowners faced in the foreclosure crisis. The reports reveal a repeat of the abuses of the foreclosure fraud era: many borrowers are unable to obtain basic information about their accounts, are frequently misled, are surprised with unexpected late fees, and often are pushed into default. Servicers lose paperwork or misapply payments. When errors arise, borrowers find it difficult to have them corrected.
Abuses and fraud in handling student loans have brought the Education Department’s loan contractors under fire. In January 2017, the Consumer Financial Protection Bureau sued Navient, one of the largest contractors, alleging that the company “systematically and illegally [failed] borrowers at every stage of [student loan] repayment.”
Getting a Fair Deal
The federal government could relieve these debt burdens, given the political will. A stated goal of the changes being proposed by the Trump Administration is to simplify the rules. The simplest solution to the student debt crisis is to make tuition free for qualified applicants at public colleges and universities, as it is in many European countries and was in some US states until the 1970s. If the federal government has the money to lend to students, it has the money to spend on their tuition (capped to curb tuition hikes). It would not only save on defaults and collections but could turn a profit on the investment, as demonstrated by the seven-fold return from the G.I. Bill. (See Part 1 of this article.)
Alternatively, the government could fund tuition costs and debtor relief with a form of “QE for the people.” Instead of buying mortgage-backed securities, as in QE1, the Fed could buy SLABS and return the interest to students, making the loans effectively interest-free (as were the $16+ trillion in loans made to the largest banks after the 2008 crisis). QE that targeted the real economy could address many other budget issues as well, including the infrastructure crisis and the federal debt crisis; and this could be done without triggering hyperinflation. See my earlier articles here, here and here.
Needless to say, however, the government is not moving in that direction. While waiting for the government to act, there are things students can do; but first they need to learn their rights. According to a new survey reported in November 2017, students are often in the dark about key details of their student loan debt and the repayment options available to them. To get started, see here and here.
Under the Borrower’s Defense to Repayment program, you can get your loans completely discharged if you can prove they were based on deception or fraud. That is one of the alternatives the Administration wants to take away, so haste is advised; but even if it is taken away, fraud remains legal grounds for contract rescission. A class action for treble damages against offending institutions could provide significant financial relief.
Students also have greater bankruptcy options than they know. While current bankruptcy law exempts education loans and obligations from eligibility for discharge, an exception is made for “undue hardship.” The test normally used is that paying the loan will prevent the borrower from sustaining a minimum standard of living, his financial situation is unlikely to change in the future, and he has made a good faith effort to pay his loans. According to a 2011 study, at least 40 percent of borrowers who included their student loans in their bankruptcy filings got some or all of their student debt discharged. But because they think there is no chance, they rarely try. Only about 0.1 percent of consumers with student loans attempted to include them in their bankruptcy proceedings. (Getting a knowledgeable attorney is advised.)
For relief as a class, students need to get the attention of legislators, which means getting organized. Along with degree mill fraud and contract fraud, a cause of action ripe for a class action is the student exclusion from bankruptcy protection, a blatant violation of the “equal protection” clause of the Fourteenth Amendment. If enough students filed for bankruptcy under the “undue hardship” exception, just the administrative burden might motivate legislators to change the law.
Senate Majority Leader Mitch McConnell blamed rising federal deficits and debt on a bipartisan unwillingness to contain spending on Medicare, Medicaid and Social Security, and said he sees little chance of a major deficit reduction deal while Republicans control Congress and the White House.
“It’s disappointing, but it’s not a Republican problem,” McConnell said Tuesday in an interview with Bloomberg News when asked about the rising deficits and debt. “It’s a bipartisan problem: unwillingness to address the real drivers of the debt by doing anything to adjust those programs to the demographics of America in the future.”
McConnell’s remarks came a day after the Treasury Department said the U.S. budget deficit grew to $779 billion in Donald Trump’s first full fiscal year as president, the result of the GOP’s tax cuts, bipartisan spending increases and rising interest payments on the national debt. That’s a 77 percent increase from the $439 billion deficit in fiscal 2015, when McConnell became majority leader.
McConnell said it would be “very difficult to do entitlement reform, and we’re talking about Medicare, Social Security and Medicaid,” with one party in charge of Congress and the White House.
“I think it’s pretty safe to say that entitlement changes, which is the real driver of the debt by any objective standard, may well be difficult if not impossible to achieve when you have unified government,” McConnell said.
Politically Unpopular
Shrinking those popular programs—either by reducing benefits or raising the retirement age—without a bipartisan deal would risk a political backlash in the next election. Trump promised during his campaign that he wouldn’t cut Social Security, Medicare or Medicaid, even though his budget proposals have included trims to all three programs.
Poznan, where the first Polish kings are buried.
Fort VII, Poznan, where the Nazis exacted revenge against intelligentsia of the Greater Polish Uprising and experimented with their first gas chambers.
Ellen Brown is an attorney, chairman of the Public Banking Institute; author of twelve books including “Web of Debt” and “The Public Bank Solution.”
Democrat Alexandria Ocasio-Cortez is part of a group of Congress members pushing for a Green New Deal. (Charles Krupa / AP Photo)
