[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.
Posted by DanielS on Wednesday, 10 July 2019 13:19.
Ellen Brown is an attorney, chairman of the Public Banking Institute; author of twelve books including “Web of Debt” and “The Public Bank Solution.”
Posted on July 10, 2019 by Ellen Brown
How to Pay for It All: An Option the Candidates Missed
The Democratic Party has clearly swung to the progressive left, with candidates in the first round of presidential debates coming up with one program after another to help the poor, the disadvantaged and the struggling middle class. Proposals ranged from a Universal Basic Income to Medicare for All to a Green New Deal to student debt forgiveness and free college tuition. The problem, as Stuart Varney observed on FOX Business, was that no one had a viable way to pay for it all without raising taxes or taking from other programs, a hard sell to voters. If robbing Peter to pay Paul is the only alternative, the proposals will go the way of Trump’s trillion dollar infrastructure bill for lack of funding.
Fortunately there is another alternative, one that no one seems to be talking about – at least no one on the presidential candidates’ stage. In Japan, it is a hot topic; and in China, it is evidently taken for granted: the government can generate the money it needs simply by creating it on the books of its own banks. Leaders in China and Japan recognize that stimulating the economy is not a zero-sum game in which funds are just shuffled from one pot to another. To grow the economy and increase GDP, demand (money) must go up along with supply. New money needs to be added to the system; and that is what China and Japan have been doing, very successfully.
Before the 2008-09 global banking crisis, China’s GDP increased by an average of 10% per year for 30 years. The money supply increased right along with it, created on the books of its state-owned banks. Japan under Prime Minister Shinzo Abe has been following suit, with massive economic stimulus funded by correspondingly massive purchases of the government’s debt by its central bank, using money simply created with computer keystrokes.
All of this has occurred without driving up prices, the dire result predicted by US economists who subscribe to classical monetarist theory. In the 20 years from 1998 to 2018, China’s M2 money supply grew from just over 10 trillion yuan to 180 trillion yuan ($11.6T), an 18-fold increase. Yet it closed 2018 with a consumer inflation rate that was under 2%. Price stability has been maintained because China’s Gross Domestic Product has grown at nearly the same fast clip, by a factor of 13 over 20 years.
In Japan, the massive stimulus programs called “Abenomics” have been funded through its central bank. The Bank of Japan has now “monetized” nearly 50% of the government’s debt, turning it into new money by purchasing it with yen created on the bank’s books. If the US Fed did that, it would own $11 trillion in US government bonds, four times what it holds now. Yet Japan’s M2 money supply has not even doubled in 20 years, while the US money supply has grown by 300%; and Japan’s inflation rate remains stubbornly below the BOJ’s 2% target. Abe’s stimulus programs have not driven up prices. In fact deflation remains a greater concern than inflation in Japan, despite unprecedented debt monetization by its central bank.
China’s Economy: A Giant Ponzi Scheme or a New Economic Model?
Critics have long called China’s economy a Ponzi scheme, doomed to collapse in the end; and for 40 years China has continued to prove the critics wrong. According to a June 2019 report by the Congressional Research Service:
Since opening up to foreign trade and investment and implementing free-market reforms in 1979, China has been among the world’s fastest-growing economies, with real annual gross domestic product (GDP) growth averaging 9.5% through 2018, a pace described by the World Bank as “the fastest sustained expansion by a major economy in history.” Such growth has enabled China, on average, to double its GDP every eight years and helped raise an estimated 800 million people out of poverty. China has become the world’s largest economy (on a purchasing power parity basis), manufacturer, merchandise trader, and holder of foreign exchange reserves.
Facebook May Pose a Greater Danger Than Wall Street
Payments can happen cheaply and easily without banks or credit card companies, as has already been demonstrated—not in the United States but in China. Unlike in the U.S., where numerous firms feast on fees from handling and processing payments, in China most money flows through mobile phones nearly for free. In 2018 these cashless payments totaled a whopping $41.5 trillion; and 90% were through Alipay and WeChat Pay, a pair of digital ecosystems that blend social media, commerce and banking. According to a 2018 article in Bloomberg titled “Why China’s Payment Apps Give U.S. Bankers Nightmares”:
The nightmare for the U.S. financial industry is that a technology company—whether from China or a homegrown juggernaut such as Amazon.com Inc. or Facebook Inc.—replicates the success of Alipay and WeChat in America. The stakes are enormous, potentially carving away billions of dollars in annual revenue from major banks and other firms.
That threat may now be materializing. On June 18, Facebook unveiled a white paper outlining ambitious plans to create a new global cryptocurrency called Libra, to be launched in 2020. Facebook reportedly has high hopes that Libra will become the foundation for a new financial system free of control by Wall Street power brokers and central banks.
But apparently Libra will not be competing with Visa or Mastercard. In fact, the Libra Association lists those two giants among its 28 soon-to-be founding members. Others include Paypal, Stripe, Uber, Lyft and eBay. Facebook has reportedly courted dozens of financial institutions and other tech companies to join the Libra Association, an independent foundation that will contribute capital and help govern the digital currency. Entry barriers are high, with each founding member paying a minimum of $10 million to join. This gives them one vote (or 1% of the total vote, whichever is larger) in the Libra Association council. Members are also entitled to a share proportionate to their investment of the dividends earned from interest on the Libra reserve—the money that users will pay to acquire the Libra currency.
Nouriel Roubini
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@Nouriel
It will start as a private, permissioned, not-trustless, centralized oligopolistic members-only club. So much for calling it “blockchain”. Like all “enterprise DLT” it is blockchain in name only and an monopoly to extract massive seignorage from billions of users. A monopoly scam https://twitter.com/coindesk/status/1140620454262124545 …
CoinDesk
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@coindesk
Noted economist Nouriel Roubini (@Nouriel) has said Facebook’s soon-to-be unveiled cryptocurrency is not really crypto or blockchain. http://ow.ly/Srmc50uG7Yk
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12:36 AM - Jun 18, 2019
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Another Zero Hedge writer calls Libra “The Dollar’s Killer App,” which threatens “not only the power of central banks but also the government’s money monopoly itself.”
From Frying Pan to Fire?
To the crypto-anarchist community, usurping the power of central banks and governments may sound like a good thing. But handing global power to the corporate-controlled Libra Association could be a greater nightmare. So argues Facebook co-founder Chris Hughes, who writes in The Financial Times:
This currency would insert a powerful new corporate layer of monetary control between central banks and individuals. Inevitably, these companies will put their private interests — profits and influence — ahead of public ones. …
The Libra Association’s goals specifically say that [they] will encourage “decentralised forms of governance.” In other words, Libra will disrupt and weaken nation states by enabling people to move out of unstable local currencies and into a currency denominated in dollars and euros and managed by corporations. …
What Libra backers are calling ‘decentralisation’ is in truth a shift of power from developing world central banks toward multinational corporations and the US Federal Reserve and the European Central Bank.
Power will shift to the Fed and ECB because the dollar and the euro will squeeze out weaker currencies in developing countries. As seen recently in Greece, the result will be to cause their governments to lose control of their currencies and their economies.
Pros and Cons
Caitlin Long, co-founder of the Wyoming Blockchain Coalition, recently agreed that Libra was a Trojan horse but predicted it would have some beneficial effects. For one, she thought it would impose discipline on the U.S. banking system by leading to populist calls to repeal its corporate subsidies. The Fed is now paying its member banks 2.35% in risk-free interest on their excess reserves, which this year is projected to total $36 billion of corporate welfare to U.S. banks—about half the sum spent on the U.S. food stamp program. If Facebook parks its entire U.S. dollar balance at the Federal Reserve through one of its bank partners, it could earn the same rate. But Long predicted that Facebook would have to pay interest to Libra users to avoid a chorus of critics, who would loudly publicize how much money Facebook and its partners were pocketing from the interest on the money users traded for their Libra currency.
But that was before the Libra white paper came out. It reveals the profits will indeed be divvied among Facebook’s Libra partners rather than shared with users. At one time, we earned interest on our deposits in government-insured banks. With Libra, we will get no interest on our money, which will be entrusted to uninsured crypto exchanges, which are coming under increasing regulatory pressure due to lack of transparency and operational irregularities.
United Kingdom economics professor Alistair Milne points to another problem with the Libra cryptocurrency: Unlike Bitcoin, it will be a “stablecoin,” whose value will be tied to a basket of fiat currencies and short-term government securities. That means it will need the backing of real money to maintain its fixed price. If reserves do not cover withdrawals, who will be responsible for compensating Libra holders? Ideally, Milne writes, reserves would be held with the central bank; but central banks will be reluctant to support a private currency.
Long also predicts that Facebook’s cryptocurrency will be a huge honeypot of data for government officials, since every transaction will be traceable. But other reviewers see this as Libra’s most fatal flaw. Facebook has been called Big Brother, the ultimate government surveillance tool. Conspiracy theorists link it to the CIA and the U.S. Department of Defense. Facebook has already demonstrated that it is an untrustworthy manager of personal data. How then can we trust it with our money?
Why Use a Cryptocurrency at All?
Why has Facebook chosen to use a cryptocurrency rather than following WeChat and AliPay in doing a global payments network in the traditional way? Yan Meng, vice president of the Chinese Software Developer Network, says Facebook’s fragmented user base across the world leaves it with no better choice than to borrow ideas from blockchain and cryptocurrency.
“Facebook just can’t do a global payments network via traditional methods, which require applying for a license and preparing foreign exchange reserves with local banking, one market after another,” Meng said. “The advantage of WeChat and AliPay is they have already gained a significant number of users from just one giant economy that accounts for 20 percent of the world’s population.” They have no need to establish their own digital currencies, which they still regard as too risky.
Meng suspects that Facebook’s long-term ambition is to become a stateless central bank that uses Libra as a base currency. He writes, “With sufficient incentives, nodes of Facebook’s Libra network would represent Facebook to push for utility in various countries for its 2.7 billion users in business, investment, trade and financial services,” which “would help complete a full digital economy empire.”
The question is whether regulators will allow that sort of competition with the central banking system. Immediately after Facebook released its Libra cryptocurrency plan, financial regulators in Europe voiced concerns over the potential danger of Facebook running a “shadow bank.” Maxine Waters, who heads the Financial Services Committee for the U.S. House of Representatives, asked Facebook to halt its development of Libra until hearings could be held. She said:
Home ownership has been called “the quintessential American dream.” Yet today less than 65% of American homes are owner occupied, and more than 50% of the equity in those homes is owned by the banks. Compare China, where, despite facing one of the most expensive real estate markets in the world, a whopping 90% of families can afford to own their homes.
Over the last decade, American wages have stagnated and U.S. productivity has consistently been outpaced by China’s. The U.S. government has responded by engaging in a trade war and imposing stiff tariffs in order to penalize China for what the White House deems unfair trade practices. China’s industries are said to be propped up by the state and to have significantly lower labor costs, allowing them to dump cheap products on the U.S. market, causing prices to fall and forcing U.S. companies out of business. The message to middle America is that Chinese labor costs are low because their workers are being exploited in slave-like conditions at poverty-level wages.
But if that’s true, how is it that the great majority of Chinese families own homes?
Ellen Brown is an attorney, chairman of the Public Banking Institute; author of twelve books including “Web of Debt” and “The Public Bank Solution.”
… 90% of families in the country own their home, giving China one of the highest home ownership rates in the world. What’s more is that 80% of these homes are owned outright, without mortgages or any other liens. On top of this, north of 20% of urban households own more than one home.
Due to their communist legacy, what they get for their money is not actually ownership in perpetuity but a long-term leasehold, and the quality of the construction may be poor. But the question posed here is, how can Chinese families afford the price tag for these homes, in a country where the average income is only one-seventh that in the United States?
The Misleading Disparity Between U.S. and Chinese Incomes
Some commentators explain the phenomenon by pointing to cultural differences. The Chinese are inveterate savers, with household savings rates that are more than double those in the U.S.; and they devote as much as 74% of their money to housing. Under China’s earlier one-child policy, many families had only one heir, who tended to be male; and home ownership was a requirement to score a wife. Families would therefore pool their resources to make sure their sole heir was equipped for the competition. Homes would be purchased either with large down payments or without financing at all. Financing through banks at compound interest rates doubles the cost of a typical mortgage, so sidestepping the banks cuts the cost of housing in half.
Those factors alone, however, cannot explain the difference in home ownership rates between the two countries. The average middle-class U.S. family could not afford to buy a home outright for their oldest heir even if they did pool their money. Americans would be savers if they could, but they have other bills to pay. And therein lies a major difference between Chinese and American family wealth: In China, the cost of living is significantly lower. The Chinese government subsidizes not only its industries but its families—with educational, medical and transportation subsidies.
According to a 2017 HSBC fact sheet, 70% of Chinese millennials (ages 19 to 36) already own their own homes. American young people cannot afford to buy homes because they are saddled with student debt, a millstone that now averages $37,000 per student and will be carried an average of 20 years before it is paid off. A recent survey found that 80% of American workers are living paycheck to paycheck. Another found that 60% of U.S. millennials could not come up with $500 to cover their tax bills.
In China, by contrast, student debt is virtually nonexistent. Heavy government subsidies have made higher education cheap enough that students can work their way through college with a part-time job. Health care is also subsidized by the government, with a state-run health insurance program similar to Canada’s. The program doesn’t cover everything, but medical costs are still substantially lower than in the U.S. Public transportation, too, is quite affordable in China, and it is fast, efficient and ubiquitous.
Brexit Party leader Nigel Farage, left, reacts as results are announced at the counting center for the European Elections for South East England region, in Southampton, England, Sunday, May 26, 2019. (AP Photo/Alastair Grant)
LONDON (AP): Britain’s governing Conservative Party was all but wiped out in European Parliament election as voters sick of the country’s stalled European Union exit flocked to uncompromisingly pro-Brexit or pro-EU parties.
The main opposition Labour Party also faced a drubbing in a vote that upended the traditional order of British politics and plunged the country into even more Brexit uncertainty. The big winners were the newly founded Brexit Party led by veteran anti-EU campaigner Nigel Farage and the strongly pro-European Liberal Democrats.
With results announced early Monday for all of England and Wales, the Brexit Party had won 28 of the 73 British EU seats up for grabs and almost a third of the votes. The Liberal Democrats took about 20% of the vote and 15 seats — up from only one at the last EU election in 2014.
Labour came third with 10 seats, followed by the Greens with seven. The ruling Conservatives were in fifth place with just three EU seats and under 10% of the vote.
Scotland and Northern Ireland are due to announce their results later.
Farage’s Brexit Party was one of several nationalist and populist parties making gains across the continent in an election that saw erosion of support for the traditionally dominant political parties.
Conservative Foreign Secretary Jeremy Hunt said it was a “painful result” and warned there was an “existential risk to our party unless we now come together and get Brexit done.”
The results reflect an electorate deeply divided over Britain’s 2016 decision to leave the EU, but united in anger at the two long-dominant parties, the Conservatives and Labour, who have brought the Brexit process to deadlock.
Britain is participating in the EU election because it is still a member of the bloc, but the lawmakers it elects will only sit in the European Parliament until the country leaves the EU, which is currently scheduled for Oct. 31.
Farage’s Brexit Party was officially launched in April and has only one policy: for Britain to leave the EU as soon as possible, even without a divorce agreement in place.
Farage said his party’s performance was “a massive message” for the Conservatives and Labour, and he said it should be given a role in future negotiations with the EU.
“If we don’t leave on Oct. 31, then the scores you have seen for the Brexit Party today will be repeated in a general election — and we are getting ready for it,” said Farage.
But the election leaves Britain’s EU exit ever more uncertain, with both Brexiteers and pro-EU “remainers” able to claim strong support. Labour and the Conservatives, who in different ways each sought a compromise Brexit, were hammered. The result raises the likelihood of a chaotic “no deal” exit from the EU — but also of a new referendum that could reverse the decision to leave.
The Conservatives were punished for failing to take the country out of the EU on March 29 as promised, a failure that led Prime Minister Theresa May to announce Friday that she is stepping down from leading the party on June 7. Britain’s new prime minister will be whoever wins the Conservative party leadership race to replace her.
The favorites, including ex-Brexit Secretary Dominic Raab and former Foreign Secretary Boris Johnson, have vowed to leave the EU on Oct. 31 even if there is no deal in place.
Most businesses and economists think that would cause economic turmoil and plunge Britain into recession. But many Conservatives think embracing a no-deal Brexit may be the only way to win back voters from Farage’s party.
Labour was punished for a fence-sitting Brexit policy that saw the party dither over whether to support a new referendum that could halt Brexit. Labour foreign affairs spokeswoman Emily Thornberry said the party needed to adopt a clearer pro-EU stance.
“There should be a (new Brexit) referendum and we should campaign to remain,” she said.
Daniel Sperglord and Mangina-in-black enjoy pounding each other’s gay asses!
DanielS:
Captainchaos, while you are trying to deride mancinblack as effeminate for supporting me and MR, why don’t you instead question the wisdom of those who expect Whites to drop all concerns for every other antagonism to our system and attack the ‘pathogen’ ....markedly, it is not going to help us to separate and achieve autonomy from the pathogen if we do not also address our naive susceptibility to the pathogen or deliberate, traitorous introduction of it to our system that happens typically through vulnerabilities and entry by liberal/right wing thin or even pseudo warranted objectivism; also typically a reaction to the contradictory language games that YKW are playing in order to keep our people associated with the right, its rational blindness, mystification, confusion, short shrift of social accountability (viz. even to our people) and with it, disruption of our social systemic homeostasis? - obviously one of the chief aims of the pathogen is to break through systemic defense. Thus, it is obviously valid and important to look at our system and its vulnerabilities.
In short, it is going to be hard to take-on an enemy full throttle while you’ve got people confused, thinking you’re doing wrong, or naively “clearly” thinking that you are wrong because they are abiding by right wing/liberal (their lefts are our liberalism, rupturing our unionization when pitted against our bounds) language games, or outright stabbing us in the back because right wing pseudo objectivity serves to “excuse” why it is that they take the liberties or pay-offs afforded, and “why” we are getting destroyed in their abiding language games as “just a fact of nature” that they have no part in aiding and abetting.
I’ve been looking at this problem since the early 90s, and started to bring it to a double entry with the YKW as the chief problems to our social systemic homeostasis in 2009 ..and have been cultivating it since.
Now, regarding “pathological altruism” (the Taylor, MacDonald thing, circa, what? 2011? I never paid much attention to it) I only suggested that it may have been their naive attempt, even a misdirected attempt to look at our part, as it would likely be (misdirected), still caught up in right wing objectivism by its very means of “description and diagnosis”, but to suggest that I was part of misdirection and not taking the YKW seriously enough because I also believe it is necessary to address vulnerabilities and other antagonism (which will usually lead to their being organized to imposition upon us by YKW, true), and the fact that I recognize serious errors in Hitler’s philosophy and regime (misdirected and misdirecting headlong into disaster for Europeans, as his right wing premises would), are things that I, and Majorityrights, deserve credit for in service of European peoples, not harassment and denunciation.
And isn’t it a perfect example, wouldn’t Trump’s vanity just have him lap-up objectivist flattery and have the YKW walk right into his system, knocking his daughter up, directing his campaign to undo the Iran Deal, get him elected, and move right into Oval Office meetings to set his administration’s agenda?
Brexit Party leader Nigel Farage, left, reacts as results are announced at the counting center for the European Elections for South East England region, in Southampton, England, Sunday, May 26, 2019. (AP Photo/Alastair Grant)
Ellen Brown is an attorney, chairman of the Public Banking Institute; author of twelve books including “Web of Debt” and “The Public Bank Solution.”
Facebook CEO Mark Zuckerberg (Mike Deeroski/Flickr)(CC BY 2.0)
Michael Levine-Clark / CC BY-NC-ND 2.0