[Majorityrights News] Trump will ‘arm Ukraine to the teeth’ if Putin won’t negotiate ceasefire Posted by Guessedworker on Tuesday, 12 November 2024 16:20.
[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.
Posted by DanielS on Saturday, 21 March 2020 12:21.
Millennial Woes, in his premature assent to e-celebrity, exercises a 20/20 “hindsight” that actually serves the wishful blindness and seeks to gain audience from the large market of America’s beleaguered White demographic - particularly German/Irish - susceptible in reaction to be overly sympathetic to Nazi Germany, circulating false currency through their internet bubble with it’s insulated and instant “historical expertise”...and in Millennial Woes rookie mistake to go with that blindered perspective, he serves Jewish divide and conquer.
MW Ostracises half of Britain
Millennial Woes says “World War II shouldn’t have happened.”
Daniel Sienkiewicz
7 hours ago (edited)
World War II shouldn’t have happened: Take it to Hitler. He was the one attacking other European ethnonstates. The Nations to his east, which he wanted to take over imperialistically, were all AGAINST the Soviet Union and were All Anti-Semitic - willing to work on deportation plans. I.e, Hitler/Nazi Germany were NOT fighting a defensive war.
FiveLiver
7 hours ago
My agreement with this comment has vanished twice now despite different spellings.
Anglus Patria
2 hours ago
Chamberlain and Hitler both made grave mistakes, both cost their nations everything.
Churchill, FDR and Stalin are evil. Churchill and FDR consciously went against their own people’s interests.
Daniel Sienkiewicz
12 minutes ago
Anglus Patria and Hitler wasn’t evil? Baloney. If you want to exercise 20/20 hindsight then wish that Hitler was not such an asshole as to attack other European countries, including ones that were A) Against the Soviet Union and B) Anti Semitic and willing to deport them.
Turnip Townshend
46 minutes ago
What is this Polish trickery?
Daniel Sienkiewicz
10 minutes ago
@Turnip Townshend There is no Polish trickery here, douche bag. You just conveniently overlook the facts EVEN WITH what should be 20/20 hindsight.
If you want to exercise 20/20 hindsight then wish that Hitler was not such an asshole as to attack other European countries, including ones that were
A) Against the Soviet Union and B) Anti Semitic and willing to deport them.
Daniel Sienkiewicz
1 second ago
@Turnip Townshend And what is this J trickery of yours? “Turnip Townshend” ...you’ve got ONE subscriber. It’s a sock account with an avatar of Hitler’s idol, Frederick the Great Faggot. You obviously aim at divide and conquer of European ethnonationalisms. How kosher of you.
Turkish regime leader Recep Tayyip Erdogan said on Monday that his government had no intention of stopping the relentless westward flow of migrants toward continental Europe, warning that “millions” would soon be headed toward the EU.
“Since we have opened the borders, the number of refugees heading toward Europe has reached hundreds of thousands. This number will soon be in the millions,” Erdogan said today in Ankara during a televised speech, Greek daily newspaper Kathimerini reports.
“After we opened the doors, there were multiple calls saying ‘close the doors.”
“I told them ‘it’s done. It’s finished. The doors are now open. Now, you will have to take your share of the burden’,” he said.
Late Sunday night, Turkish interior minister Süleyman Soylu said that 100,577 migrants had left Turkey through Erdine, at the border with Greece.
Despite the regime leader and his interior minister’s claims that hundreds of thousands of migrants are already amassed at the Greek border, figures from the International Organization for Migration suggest that these figures are vastly inflated.
According to the IOM, more than 13,000 migrants have now arrived at the Turkish-Greek border.
Earlier today, Voice of Europe reported that the Greek government has announced that it is preparing itself for 150,000 migrant invaders to try and reach its various islands in the Eastern Aegean Sea. Over 1000 migrants have already slipped by Greece’s coastguard and have managed to land on Greek islands in the Eastern Aegean.
Arthur Lyons
@ALyonsvi
Individual citizens are going to have to stand up and fight against this invasion. twitter.com/AlexLeroy90/status
Alex
@AlexLeroy90
Des grecs empêchent l’invasion des migrants islamistes envoyés par Erdogan Dégagez ! Nous sommes chrétiens ici !
video
Clashes escalate between Greek army and migrants on Turkish border
Over the weekend, Greece’s Deputy Defense Minister Alkiviadis Stefanis announced over that the migrants who’ve gathered at Greece’s border – most of whom are fighting-age men – made around 9,600 unsuccessful attempts to breach the border illegally.
The migrant invaders set fires and attacked Greek security forces, shouting things like: “The dogs can’t see us anymore. Burn them. Allahu Akbar.”
Imam of Peace
@Imamofpeace
“The dogs can’t see us anymore. Burn them. Allahu Akbar”
Turkey: Migrants cut through barbed wire at Greek border
“It will be difficult to stop the massive flow of people who have set out on their journey. That is why we can expect an increase in pressure in the coming days — even in the event that Turkish authorities act to prevent people from crossing the border,” an internal Frontex report said.
Posted by DanielS on Tuesday, 18 February 2020 07:32.
DAILYKENN.com—Had a 29-year-old black woman been shot to death by her white boyfriend, it would likely be national news. Had the victim been white and the suspect black, the story would be limited to local media and race would not be mentioned.
Cassia Renee Duval, 29, was seven months pregnant when she was found shot to death. Her unborn baby was also killed. Arrested is James Isaac Jones Jr. 33. Jones and Duval lived together, reports say.
Why was she killed? We can only speculate. Is it because she mated with an individual with low impulse control, low intelligence, low affective empathy, and psychopathic tendencies? We can’t say for certain.
Note: This blog is based on my notes for a speech at the Harvard Class of 1957 55th reunion in Cambridge, Mass. on May 22nd.
Armageddon was threatening the financial system on Wednesday, September 17, 2008. The largest bankruptcy in American history, that of investment bank Lehman Brothers on Monday, September 15, had roiled global markets, accelerating the stupendous decline in values of every possible investment vehicle—common stocks, corporate bonds, real estate, commodities like oil, copper and gold, private equity and hedge funds alike. In the midst of the chaos Merrill Lynch, the firm that had brought Wall Street to Main Street, was absorbed in a shotgun marriage by Bank of America BAC +0%.
Only days earlier came the recognition at the New York Federal Reserve Bank and the US Treasury that AIG, the largest insurance company in the world was running out of money. This required an immediate injection of $85 billion in bail-out funds. And later another $100 billion, still not paid back to Uncle Sam.
That day, Sept 17, an even greater crisis was pending. All day long the chairman of General Electric, a company recognized across the globe as a leading industrial giant, was calling the Secretary of the Treasury, Hank Paulson to warn that the next day, Sept. 18, that GE would no longer be able to roll over its short term debt. The American business system was on the cusp of faltering mightily. The US economy was on the brink of a precipice into the unknown.
Messrs Paulson and Bernanke, at the Fed, knew the nation could not suffer the risk of a total breakdown in industry and finance. So, they decided to instantly guarantee the $600 billion commercial paper market, which is widely used to finance day-to-day operations of all major firms. This guarantee became part of the total cost of bailing out Wall Street, which totaled over $7 trillion—when you added guarantees to loans, investments and outright grants. The bailouts were key to raising the Fed’s balance sheet from $1 trillion to $3 trillion—and to upping the nation’s total amount of debt some $5 trillion to a record $15 trillion.
Conversely, the household wealth of the nation, measured by losses in financial markets and the historic drop in residential real estate—was reduced by a sickenly humungus $12-$14 trillion at the very bottom of the whole process in March, 2009. You take that money—$12-14 trillion away from the asset side of the ledger and add another $5 trillion in debt—- and you are bound to experience a decline in the nation’s GDP and a very much slower rate of recovery from such a trauma. A recovery that could take 10 years or more according to Harvard economist Kenneth Rogoff. That brings us to 2018. Need I say more?
How did we reach this very near call on a total systemic breakdown?
Firstly, there were no cops on the beat. Laissez-faire free market economics was the prevailing public policy. Federal Reserve chairman Alan Greenspan spoke of irrational exuberance but took no steps to cool off markets in the late 1990s. In fact, he was asked by Loews chairman Larry Tisch and former Goldman Sachs co-chairman John Whitehead to raise the margins on trading, and refused, claiming falsely that such a move was up to the SEC—and not the Fed. Not true.
In 1999 the Glass-Steagall Act—which had separated commercial banking from investment banking for 66 years, was overturned—a move that opened the door to more speculative trading on the part of Wall Street firms.
Then, in 2000 Messrs. Greenspan, former Treasury Secretary Rubin and his successor Lawrence Summers pressed to pass a bill that would prohibit the regulation of derivatives—the fastest growing and most complicated and murky new financial product. This was an incredible mistake, as derivative contracts like mortgage backed bonds and credit default swaps mushroomed in across the globe without any oversight, strict capital requirements and on an organized exchange where buying and selling were handled daily.
The result of this vacuum; no one anywhere knew who owed what to whom across the world. Despite the danger lurking in the rapid depreciation of these contracts, Bernanke publicly stated the absurd amount of sub-prime mortgages being sold to unsuspecting buyers would not spread to a much wider, deeper crisis. He didn’t know what he was talking about, sadly..
Lastly, in 2004 the major firms convinced the SEC to let them value certain assets on their balance sheet at values they chose—rather than marking them t o market—which would reveal what losses they were carrying. This added another dangerous laxity to financial regulation. The system was falsifying its accounts believing the investments would bounce back.
The entire catastrophe’s underlying theme was summed up later by this admission from former Fed chairman Greenspan . ” I made a mistake,” he admitted in a hearing, “in presuming that the self-interests of organizations, specifically banks and others, were such that they were best capable of protecting their own shareholders and their equity in the firms.” And we made this man into the wise parental guardian of American capitalism for 18 years. We journalists, that is.
Pressed again later on, Greenspan admitted to “shocked disbelief, (because his whole) intellectual edifice had collapsed.” Naive at minimum. At worst, locked into a narrow limited ideological viewpoint that set the stage for the meltdown. Let Goldman Sachs and Citigroup master their own appetite for profits. So much for reining in animals spirits.
Secondly, the banks and investment banks were using reckless amounts of leverage. They borrowed, in many cases, $30 to $40 of debt for every dollar of capital they had. In truth, this was a recipe for disaster, since a decline of only 4% in their capital put them on the road to insolvency. It was as if you bought a million dollar house, put down a payment of $30,000 and borrowed $970,000. What sense of irrational optimism allowed this mad way of doing business.
By the fall of 2008 the decline in the value just of subprime mortgage backed bonds—which lost up to 80% of their value in the market—meant that Fannie Mae, Freddie Mac, Lehman, Merrill Lynch, Citigroup, Bank of America, Washington Mutual and Wachovia were in a state of peril. The only way to make money in bank stocks was to short them. My favorite day trader told me after it was all over that I should be worth $50 million. With the run on Lehman Bros. both Morgan Stanley and Goldman Sachs were in danger of experiencing a run on their accounts.
Perhaps AIG is the most extreme example of leverage as financial hari-kari. It had sold protection to banks and insurance companies across the globe by issuing $540 billion of credit default swaps, which meant AIG promised to make good on any losses in value of their mortgage holdings.
Posted by DanielS on Monday, 27 January 2020 10:47.
Christopher Caldwell: America’s two constitutions — since the ‘60s, competing visions of a more perfect union
Christopher Caldwell, author of the book ‘The Age of Entitlement,’ says Democrats and Republicans have two different conceptions of what the country is about. Fox News, 27 Jan 2020:
Not long after he left the White House, Bill Clinton gave what is still the best description of the fault lines that run through American politics. “If you look back on the ’60s and on balance you think there was more good than harm, you’re probably a Democrat,” he said. “If you think there was more harm than good, you’re probably a Republican.”
What could he have meant by that?
Though Americans are reluctant to admit it, the legacy of the 1960s that most divides the country has its roots in the civil rights legislation passed in the immediate aftermath of John F. Kennedy’s assassination. It was enacted in a rush of grief, anger and overconfidence — the same overconfidence that had driven Kennedy to propose landing a man on the moon and would drive Lyndon Johnson to wage war on Vietnam. Shored up and extended by various court rulings and executive orders, the legislation became the core of the most effective campaign of social transformation in American history.
This campaign was effective both for its typically American idealism and for its typically American ruthlessness. It authorized Washington to shape state elections, withhold school funds, scrutinize the hiring practices of private businesses and sue them. It placed Offices of Civil Rights in the major cabinet agencies, and these offices were soon issuing legally binding guidelines, quotas and targets. Above all, it exposed every corner of American social, business and political life to direction from judges.
Americans assumed that solving the unique and extraordinary problem of segregation would require handing Washington powers never before granted in peacetime. In this they were correct.
But they were also confident that the use of these powers would be limited in time (to a few years at most), in place (to the South), and in purpose (to eliminating segregation). In this they misjudged, with fateful consequence for the country’s political system.
Civil rights law may have started off as a purpose-built tool to thwart the insidious legalism of Southern segregation and the violence of Southern sheriffs. It would end up a wide-ranging reinvention of government.
After the work of the civil rights movement in ending segregation was done, the civil rights model of executive orders, regulation-writing and court-ordered redress remained.
This was the so-called “rights revolution”: an entire new system of constantly churning political reform, bringing tremendous gains to certain Americans and — something that is mentioned less often — losses to many who had not necessarily been the beneficiaries of the injustices that civil rights was meant to correct.
The United States had not only acquired two codes of rules (two constitutions), as people rallied to one code or the other, they also sorted themselves into two sets of citizens (two countries). To each side, the other’s constitution might as well have been written in invisible ink.
Civil rights became an all-purpose constitutional shortcut for progressive judges and administrators. Over time it brought social changes in its wake that the leaders of the civil-rights movement had not envisioned and voters had not sanctioned: affirmative action, speech codes on college campuses, a set of bureaucratic procedures that made immigrants almost impossible to deport, gay marriage, transgender bathrooms.
In retrospect, the changes begun in the 1960s, with civil rights at their core, were not just a major new element in the Constitution. They were a rival constitution, with which the pre-1964 one would frequently prove incompatible — and the incompatibility would worsen as the civil-rights regime was built out.
Our present political impasse is the legacy of that clash of systems. Much of what we today call polarization” or “incivility” is something more grave. It is the disagreement over which of the two constitutions shall prevail: the pre-1964 constitution, with all the traditional forms of jurisprudential legitimacy and centuries of American culture behind it; or the de facto constitution of 1964, which lacks this traditional kind of legitimacy but commands the near-unanimous endorsement of judicial elites and civic educators, and the passionate allegiance of those who received it as a liberation.
As long as the baby boom generation was in its working years, permitting the country to run large debts, Washington could afford to pay for two social orders at the same time. Conservatives could console themselves that they, too, were on the winning side of the revolution. They just stood against its “excesses.” A good civil rights movement led by the martyred Rev. Dr. Martin Luther King Jr. had been hijacked, starting in the 1970s, by a radical version that brought affirmative action and eventually political correctness.
But affirmative action and political correctness were not temporary. Over time they hardened into pillars of the second constitution, shoring it up where it was impotent or illogical, the way the invention of judicial review in Marbury v Madison (1803) shored up the first constitution.
Both affirmative action and political correctness were derived from the basic enforcement powers of civil rights law. And this was the only civil rights on offer. If you didn’t like affirmative action and political correctness, you didn’t like civil rights. By 2013, when Americans began arguing over whether a cake maker could be forced to confect a pro–gay marriage cake, this was clear.
The United States had not only acquired two codes of rules (two constitutions) —as people rallied to one code or the other — they also sorted themselves into two sets of citizens (two countries). To each side, the other’s constitution might as well have been written in invisible ink. Democrats were the party of rights, Republicans of bills. Democrats say, by 84 to 12 percent, that racism is a bigger problem than political correctness. Republicans, by 80 to 17 percent, think political correctness is a bigger problem than racism. The Tea Party uprising of 2009 and 2010, and its political mirror image, the Black Lives Matter uprising of 2015 and 2016, were symbols of that division.
Much happened this century to bring matters to the present boil. Barack Obama, both for his fans and his detractors, was the first president to understand civil rights law in the way described here: as a de facto constitution by which the de jure constitution could be overridden or bypassed. His second inaugural address, an explicitly Constitution-focused argument, invoked “Seneca Falls and Selma and Stonewall” — i.e., women’s rights, civil rights and gay rights — as constitutional milestones.
In this view, the old republic built on battlefield victories had been overthrown by a new one built on rights marches and Supreme Court jurisprudence. When Justice Anthony Kennedy wrote his decision in Obergefell v. Hodges, the 2015 gay marriage case that was in many ways the culmination of this new rights-based constitution, he said as much.
The election of 2016 brought the change into focus. Today two nations look at each other in mutual incomprehension across an impeachment hearing room. It appears we are facing a constitutional problem of the profoundest kind.
Ellen Brown is an attorney, chairman of the Public Banking Institute; author of twelve books including “Web of Debt” and “The Public Bank Solution.”
Turkish president Erdogan has previously 
