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HUMANITY DOOMSDAY CLOCK - Moves forward to 2125 due to election of US President trump.

Estimate of the time that Humanity will go extinct or civilization will collapse. The HUMANITY DOOMSDAY CLOCK moves forward to 2125 due to US President trump's abandonment of climate change goals. Apologies to Bulletin of the Atomic Scientists for using the name.


While this material is copyrighted, you are hereby granted permission and encouraged to copy and paste any excerpt and/or complete statement from any entry on this blog into any form you choose. In return, please provide explicit credit to this source and a link or URL to the publication. Email links to

You may also wish to read and quote from these groundbreaking essays on economic topics with the same permission outlined above

The Jobs Theory of Growth []

Moral Economics []

Balanced Trade []

There Are Alternatives to Free Market Capitalism []

Specific Country Economic Policy Analyses - More Than 50 Countries from Argentina to Yemen []


Sunday, July 22, 2018

What is an American?

Some have wondered about what is an American - Who are we?

I will take a moment to offer my opinion on that question.

Mostly we are nation of people who honor their family, their country and have hope for a better future.

The institutional structure of the Constitution and our legal system serves to promote those values.


No man or woman, regardless of what position s/he holds, is above the law. We rebelled from England largely because the King thought he was above the law.

Anyone breaking the law will first be granted due process and then be punished according to the law.


No foreign person or nation may impose their laws on our citizens on our soil.

But, Americans who break the law in another country are subject to that country's processes.


Authority over institutions in the several States is reserved to the citizens of that State except as provided in the Constitution. In practice, this means that the institutions affecting citizen's lives are subject to control by the citizens whose lives are affected; we do not have centralized institutions.


Every person in the United States is deserving of the respect and courtesy due any citizen, regardless of race, creed, color, faith or citizenship status. And every person shall be subject to the law.


All people who are in the United States are expected to protect the weaker among us from the depradations of the stronger. These can include but not be limited to children, the elderly, the disabled for any reason and any disadvantaged person.


All religious faiths are welcomed and protected in the United States, but no faith has any prior claim on government processes or policies.

Wednesday, July 18, 2018

UPDATE - Handing Americans to Putin

US Senate voted 98 - 0 to prevent trump from doing this, so he changed his mind.

But, he can change that back in an instant.


Hey TRUMP - You are considering handing over some American Citizens - including Michael McFaul - to Putin for 'questioning'

I am not him, but



You know where to find me...

Here's how Putin 'questions':

'Magnitsky alleged there had been large-scale theft from the Russian state, sanctioned and carried out by Russian officials. He was arrested and eventually died in prison seven days before the expiration of the one-year term during which he could be legally held without trial.[4] In total, Magnitsky served 358 days in Moscow's Butyrka prison. He developed gall stones, pancreatitis, and a blocked gall bladder, and received inadequate medical care. A human rights council set up by the Kremlin found that he had been physically assaulted shortly before his death.[5][6] His case has become an international cause célèbre.[7]'wikipedia

Sunday, July 15, 2018

Class War In the United States of America in 2018

Class war happens when one economic class of people harms another class.

It can happen that the poor, underclass can revolt and simply kill the rich classes as happened in Russia in 1917 and China in 1949; or, it can happen that the rich class uses the political system to steal money from the poor and underclass, as is happening in the USA today.

One of the lesser discussed facets of the Trump phenomenon is the systematic theft of money and property from the American middle and working classes being engaged in by the United States government.

Here are some fronts on the class war:

1. Income redistribution from poor to rich - tax cuts:

'The median household income, adjusted for inflation, has grown by just 1.5 percent ― $839 ― since the beginning of the Great Recession. Over the same period, the total annual economic output of the United States has grown at 10 times that rate.' All that money has been funneled into the hands of the rich. See this for details:

2. Income redistribution from poor to rich - unions:

'In the Great Depression, F.D.R. pushed through the Wagner Act, which gave workers the legal right to found unions and bargain collectively. During the postwar decades, partly thanks to the negotiating clout of the trade unions, many ordinary Americans with no great education did so well that they stopped thinking of themselves as working class...Ronald Reagan fired the striking air-traffic controllers, launching what has turned out to be a thirty-year onslaught on trade unions and workers’ prerogatives. Under successive administrations, labor laws were weakened, and those that remained on the books were no longer vigilantly enforced. Union membership fell sharply—from twenty per cent of the labor force, in 1983, to twelve per cent, in 2011. (In the private sector, the decline has been even more precipitous.)'

3. Income redistribution from poor to rich – education:

The rich class wants public schools cut so that education is a privilege of the rich.

'The administration’s new “America First” budget, released Thursday, follows through on this promise by slashing funds for the Education Department by 13.5 percent, or $9.2 billion.'

The Secretary of Education is a campaign contributor who has made millions by collecting student loans in default. Additionally, Betsy DeVos has no interest in education beyond creating more students in debt. Today's students are the indentured class of the United States.

4. Income redistribution from poor to rich - Social Security and Medicare:

Welfare reform is '…Talk of “structural changes” is political jargon for the privatization of these bedrock programs upon which hundreds of millions of people depend and their destruction as guaranteed entitlements.'

Privatization is code for ending any government guarantees and handing the trust funds to Wall Street bankers. The rich class has wanted to destroy Social Security since it was enacted in the 1930's because the rich think poor people are stealing money from them to fund a pension.

This conversation could be extended indefinitely, but the point will be consistent - under Trump and the Republican majority, the Rich class is stealing systematically from the poor and middle class.

It is a little discussed but long lasting issue that will haunt the country for years to come.

Saturday, July 14, 2018

Trade War: The Endgame

Among nations today, there are a variety of policies concerning international trade. Some nations use trade as a weapon to enhance their domestic economies at the expenses of other nations.

The United States of America has practiced the idea of FREE TRADE for a number of years. In other words, matters of trade are left to 'free' markets to resolve without government interference.

But, since we compete in a world where our trading partners use trade as a weapon while we do not, some imbalances have been created.

The complete discussion is available here:

A short discussion of historical trading systems is shown below. For now, the best alternative for the United States is to restrain the 'free' trading system of the past and move to a system of BALANCED TRADE [hereafter BT].


BT is a simple concept which says that a country should import only as much as it exports so that trade and money flows are balanced. A country can balance its trade either on a trading partner basis in which total money flows between two countries are equalized or it can balance the overall trade and money flows so that a trade deficit with one country is balanced by a trade surplus with another country. A discussion of how BT will create jobs and protect the environment follows.

Balanced Trade (BT) considers the nation/state as the crucial decision maker for economic policies. Within a nation/state, BT recommends a free market economy together with individual citizens' political freedom as the proven means of creating wealth and jobs. Note that under this definition entrepreneurial enterprises may be owned by individuals, corporations or government bodies so long as each such enterprise is subject to the discipline of the market.

BT recognizes that the national government must provide the infrastructure for a free market to be effective and that the government has the right to regulate entrepreneurial firms in return. Such regulations reflect the culture of the country and provide for business opportunities within the culture. Ideally such regulation provides for high worker incomes, environmental protection, subjecting all firms, whether publicly or privately owned, to the rigors of the market place, effective fiscal and monetary policies which control inflation, and so forth. The national government has the power to regulate the internal free market to reduce or eliminate environmental degradation. Thus, BT has the capacity to maximize job creation in every country while limiting environmental damage. Some will debate that national governments will do a better job of protecting the environment and that international regulation is required; it is an open question.

Currently, a large part of most governments' national trade policies results from business interests lobbying. Every country has huge lists of products which may be imported, products which may not be imported and how much tax must be paid on imported goods. When domestic manufacturers worry about foreign competition, the taxes on competing products are high and the restrictions are onerous. But, when powerful business interests make money from imports the taxes on imports are low and the restrictions are easily managed.


Several economic theories about the proper role of government in managing trade relations have been developed over the centuries. Here is an introduction to some of those theories:

AUTARCHY: No trade. Autarchic governments attempt to eliminate all imports and exports, forcing their subjects to live with whatever the local economy can provide. These governments apparently believe that all other cultures are so evil or corrupt that any contact will harm their people. No responsible government engages in this practice today because the benefits of trade are so apparent. Recently, North Korea and Albania came close.

MERCANTILISM: Trade for national advantage. Mercantilists believe that the world has a finite store of wealth; therefore, when one country gets more, other countries have less. Mercantilists restrict imports and encourage or subsidize exports as a conscious policy to make their citizens better off. Some Asian countries use this policy to good effect in expanding their wealth by expanding exports and curtailing imports. Japan is an example of a country that has taken this policy too far - now its export surplus has raised the value of its currency so high that much of its labor is priced out of the world market. Many developing countries use this practice to secure good markets for their exports while protecting their market from foreign imports.

PROTECTIONISM: Protectionists restrict or tax imports to benefit domestic manufacturers and keep as many jobs at home as possible. Protectionists believe that the benefits from keeping jobs at home outweigh any loss of consumer surplus resulting from higher prices after tariffs. Exports are ignored by protectionist governments as are imports for which there is no domestic competition. Although rarely used as a stand alone policy, protectionism is frequently used as an accusation by those promoting free trade access to foreign markets for their own companies.

STRATEGIC TRADE: This policy requires or encourages domestic companies to make goods needed by the military instead of relying on foreign companies for strategic goods. Also, this policy seeks industries that will grow in the future and provides protection and encouragement to companies in those industries in the home market. For example, some argue that the United States' space program is a method of helping the aerospace industry by providing government funded R & D for new products.

FAIR TRADE: This is a new movement that tries to provide more of the profits from trading directly to the producers in third world countries by using consumer preferences for helping people and by eliminating the middlemen from the trade process: for example, grocery wholesalers in Europe buy fruit directly from growers in Central America, eliminating profits to the large, multi-national trading companies. ("Free Trade vs. Fair Trade", Global Exchange, 2017 Mission Street, Room 303, San Francisco, CA 94110; (415)255-7296) Consumers appear to prefer fruit labelled as coming from a Fair Trade system. This is a laudable idea and will help those producers who benefit from it; unfortunately, it requires so much entrepreneurial effort from the participants that it is unlikely to become a serious, long-term threat to large trading companies except in some limited markets. Further, these efforts rely on the private sector for implementation. Government policies can do little more than remove barriers to their implementation in a free market economy.

FREE TRADE: No restrictions on trade. Free Traders say that unrestricted market forces will create the most good for the most people by directing resources to the most efficient countries. To achieve worldwide efficiency, trade must be conducted without regard to national concerns; therefore any temporary imbalance in a country's foreign exchange settlements or domestic living standards is without consequence. Free Traders also believe that any action to interfere with free trade will result in a "trade war", wherein a country's trading partners will enact retaliatory laws to eliminate any benefit the initiating country receives from a protectionist policy.

To read more, click on this link: Balanced Trade - Essay on Balanced Trade

Thursday, July 12, 2018

Fighting Putin in Swing Elections

Here's an idea for combating any attempt to influence voters from Putin and his trolls.

At the FIRST suspicion and/or indication of a Russian attack or hack in a political campaign,


It s critical that our denouncement of Russian interference is publicized immediately in all social and other media - do not wait for evidence. This is not about truth or facts, Putin will be trying to stir up emotion. The goal is for the public to remember the denunciation of Russia instead of any fake news.

Most likely content will be

1. Our candidates' past statement taken out of context and provided a malicious interpretation

2. False claim that our candidate supports some abhorrent idea

3. Claims that some group hates and despises our candidate.

4. Claims that our candidate hates some group.

This is not an exhaustive list - be openly looking for any ads, news stories or social media content with any similar theme. Anything that pushes hatred or fear of any person or group is likely a Russian fabrication.

Every candidate in any swing election will need at least one full time staffer devoted to Russian meddling.

Putin WILL Smear Democrat Candidates

Putin's minions in Russia will target democrat Congressional candidates in an attempt to sway the Mid-term elections of the United States of America toward the Republican Party; the goal will be to maintain Republican control of both Houses.

In all likelihood it will be a targeted smear and social media campaign to denigrate Democrat candidates in swing districts.

The Government of the United States will do little to interfere with these illegal campaigns, largely due to Trump's failure to act to ensure the integrity of US elections.

Therefore, Democrat candidates must be vigilant in their campaigns and call out Russian influence whenever and wherever they see it.

It will be ugly and it will be treasonous, but we cannot let it pass unchallenged.

Please take heed.

Friday, July 6, 2018

Trade War

I have been an advocate of more rationality in United States trade polices for a long time. I recommend the book FREE TRADE DOESN'T WORK, by my friend Ian Fletcher [free download here -] for some background.

Since the fix is fairly simple as seen below, one is led to question Trump's motives in calling for a trade war. Merely fixing trade policy and gaining some votes from tariffs fails to address the overall impact of his actions.

Rather, it is likely that he is attempting to create division in the world where there was none before. This trade war might create a real recession. Methinks perhaps he is serving some mysterious master of discord.

Or, he could be a simple dolt, but that is unlikely.

At any rate, here are some numbers to consider.

US GDP was $18.6 trillion in 2016.

Total imports were $2.9 trillion in 2017 [or 16% of GDP] while the trade deficit [excess of import value over export value] was $0.57 trillion [ or 3% of GDP], also in 2017.

A simple, across the board tariff increase spread among all countries and all goods of $600 billion would solve any economic problem from a deficit. I don't know what percent tariffs would increase by to achieve that goal, but I am pretty sure that our trade agreements allow for such adjustments in the interest of national well-being.

That would amount to a 20% of our current account deficit as an increase in tariff revenue collected and would balance our trade. This would solve our economic issues from trade. Trade would then be in balance with no deficit or surplus.

Since we are the only large economy with a trade deficit, it could be soft-pedaled to our trading partners as a corrective device and not meant to harm them deliberately.

Saturday, June 30, 2018

Exploring Consciousness

I am going to have a go at the idea of consciousness.

'Consciousness is the state or quality of awareness, or, of being aware of an external object or something within oneself.' Wikipedia

Several research scientists are looking into the role of the brain in creating that state. Here are links to some of the work:

1. Christof Koch ""

2. ""

I kind of like Koch's idea that there is a web of neurons which spread over the brain's surface and provide connections to some of the brain structures. This idea might support my thought.

Think for a moment of a dog chasing a ball. The first time that the ball is thrown in that particular field, I expect that the dog simply focuses on the ball without paying attention to the field or the thrower. The dog is living in the moment. It is fair to say that the dog is not conscious of the moment.

Perhaps the next time the ball is thrown, it takes a hop in a direction different from the previous throw. Our dog reacts to the direction change by adjusting his body to follow the new path.

Perhaps he also says to himself - 'wait a minute, the ball bounced differently this time. Maybe I should react differently next time to allow for the possibility of different hops.'

Some part of the dog's brain - perhaps Koch's 'claustrum' - compares the first and second memory and makes a notation: 'I must back off a bit and allow for the possibility of at least two different directions.'

I submit that would be 'conscious' for the dog.

Extrapolating the idea to humans, perhaps our larger brains allow us to make countless notes about differences in how the world works.

If so, that may explain the idea of 'consciousness'.

UPDATE - An article on brain research which may explain it:

Sunday, June 24, 2018


Russia under Putin is systematically attacking the organizations and institutions which provide the United States, NATO and the EU their well being.

It is cyber warfare.

The goal is to destabilize NATO, the EU and the United States. If Putin's war succeeds, then the West will see chaos, depression and political instability.

In this war, Putin uses whatever tools he can. One of those tools are people he calls 'USEFUL IDIOTS'.

USEFUL IDIOTS are people who support Russia's destabilizing tactics without knowing they are doing so.

trump and his administration charitably can be called USEFUL IDIOTS since many of their actions are aiding in the destruction of the NATO, the EU and the United states.

There is the possibility that some of trump's supporters are in fact Russian agents or assets.

But, whether or not they are assets or idiots, the damage they do is real.

It is a war.

AND, it is time to choose sides.

Either you can stand with Putin and chaos or you can stand with the United States, NATO and the EU and democracy and prosperity.

I choose to stand with the United States, NATO and the EU.

Where do you stand??

Wednesday, June 20, 2018

Water and Plastic Trash are Coming

Global warming causes ocean water to flood 300,000 coastal properties in the next 35 years.

Copy and paste this link for full report:

And, the plastic waste will be here soon.

Copy and paste this link for details

Friday, June 15, 2018

All Families - Show up in DC at 6.00 am June 19.

Please share widely

My dream is for 10,000 American families to go to the U S House of Representatives starting at 6.00 am on June 19 to see the folks who separate children from mothers.

Babies, toddlers, mothers, fathers.

No message - just look. Let them see who we are.

Friday, June 8, 2018

UPDATE What Motivates trump's Treason

trump is fighting in a war with Putin over the political future of the United States.

trump is fighting to harm our country by attacking the foundations of the United States of America on behalf of Putin and the Russian oligarchy.

This is treason of the highest order.

This idea may appear outlandish at first glance, but a study of political motivations will suggest its logic; and, I have studied Russian political motivations for a long time.

One way to interpret governmental actions is to find an explanation - regardless of how illogical the explanation may sound - which can explain past actions and also PREDICT future actions.

It is not enough to claim that he is a con-man creating distractions. He is that of course, but simple greed fails to account for many of his initiatives. It is wise to ask the basic question: What is the broader objective of each specific action?

It is better to examine any action and ask if it furthers the de-stabilization of the United States AND also furthers the interests of the Russian Oligarchs. If the action does those things simultaneously, then it is likely that it is so designed.

In other words, each action which contributes toward the de-stabilization of the United States is a deliberate act agreed upon by Putin and trump.

For example, trump just fired the entire board of the Consumer Financial Protection Agency. []

This helps trump secure the approval and campaign contributions of the financial services and banking industry. AND, it benefits Putin by furthering the American population's fear that the game is rigged against them.

ALSO, the Congress just approved the DOJ's act to steal the private email and phone records of a reporter in furtherance of finding the leak of classified information.

This act erodes the constitution and contributes to the public mistrust in both the institutions of government and the reliability and patriotism of the press.

Both trump and Putin share this objective.


In the spirit of speculation.....trump has taken a lot of money from Russian thugs or oligarchs; they are the same people no matter what you call them.

When you accept a favor from gangster, he thinks he owns you. When he asks for a return favor, you must grant it. Or, he will hurt you and your family.

And, Putin has demonstrated that he will kill anyone anywhere whom he considers a traitor to Russia. He has said and done exactly that.

trump simply may be afraid that he and his family will be killed if he refuses to grant a favor.

The simplest way out of this mess is to pay trump one billion dollars in exchange for his immediate abdication.

Pence is an offensive dolt, but possibly has taken no money from the Russians

Monday, June 4, 2018

Spring Country Studies

The Mike P. McKeever Institute of Economic Policy Analysis [MIEPA] takes pleasure in announcing the publication of its Spring 2018 Country Studies.


Of extraordinary interest is the publication of the study on Norway by Specialist Rune Nilsen. Norway participates in the NORDIC economic model which has been suggested as a functional alternative model to the Free Market Capitalism model currently practiced by the United States and several other Western nations.

Specialist Nilsen's Norway analysis is available here:


PERU - Specialist Diana Li Sam has examined the economy of Peru and her study is available here:

TURKEY - Specialist Doga Akpinaroglu has examined the economy of Turkey and his study is available here:

UNITED STATES - Three Specialists, Carmen Cortina, Mitchell Hom and Simon Shi have examined the economy of the United States. All three studies can be accessed here:

MIEPA home page:

Too Much Capital

There is a structural problem within most of the industrialized world's economies. It is most pronounced in the United States of America.

It is an imbalance between the amount of capital available and the level of incomes available to consumers.

Simply put, there is too much capital and not enough income.

The evidence is clear: historically low real [inflation adjusted] interest rates and stagnant real consumer incomes.

In practice it means that capital is available for projects that promise low profits. Historically, the expected profit rate has driven capital toward more profitable, hence more efficient, projects.

Thus some investment is driven toward marginal projects - which do not contribute materially to the economy's well being - since they are the projects available.

More damaging is the trend toward monopoly control of markets and supply chains. Monopolies are incentivized to provide fewer products at higher prices than a competitive market would absorb, thus reducing employment and incomes.

Monopolies and oligopolies also attempt to control the regulation environment so that their dominant positions are sustained. One needs only to look closely to the banking and financial services industries to see the pernicious effects of such regulation control.

The problem is hidden today because the numbers are good - low unemployment rates and GDP growth.

But, these numbers are not sustainable unless consumers have the real purchasing power to sustain them. Real growth happens only when consumer demand is strong.

Monday, May 14, 2018

Please Ignore Trump on the Iran Nuclear Agreement

I address the Government of Iran:

Most of the responsible people in the United States of America recognize the benefits of the nuclear arms agreement your country and several others have signed and adhered to.

Our current President has withdrawn the United States of America from the Agreement.

Please understand that he does not speak for the majority of the country and he will soon be either impeached or ineffective due to our mid-term elections.

Your policy of adhering to the agreement is the correct policy.

Please continue with your current course in the knowledge that most Americans, and Europeans as well, agree with you.

The United States will correct the current aberration in due course.

In the meantime, responsible parties in all countries are encouraged hereby to ignore the President and his foolish actions.

Sunday, April 29, 2018

Help the Homeless - Because They Are Us

Our current economic policies are creating more and more homeless people.

This is a note from a reader that deserves wider notice:

'I feel really grateful for all of the information you have on your site for those who are facing homelessness. It’s a subject that means a lot to me personally. At the height of my addiction, I lived out of my car for a few months -- and I know that’s more shelter than many people have.

I was thinking that you might like to update this page with some additional information for those struggling with homelessness, and if you do, here are a few pieces of information I think would fit well there:

[ links below are hyper links]

Homeless Shelter Directory - Homeless Shelter Directory

Talking to Your Kids About Losing Your Home: 4 Mistakes to Avoid -

Talking to Your Kids About Losing Your Home: 4 Mistakes to Avoid

6 Charitable Resources to Use When You Can’t Cover the Basics -

6 Charitable Resources to Use When You Can’t Cover the Basics

Homeless Students and Education: Resources and Advocacy for K-12 and College Students Experiencing Homelessness -

Homeless Students and Education: Resources and Advocacy for K-12 and College Students Experiencing Homelessness

Pets of the Homeless - Pets of the Homeless

Thanks again for helping people who are going through this unimaginable time.

Thank you,


Monica Smith,

Thursday, April 26, 2018

UPDATE: New Links, Robots and Universal Basic Income

Artificial Intelligence machines, popularly known as Robots, are taking over the production and delivery of goods and services. While this trend is exciting and promises a rosy future for many, the inevitable consequence is a large scale loss of jobs for Americans.

With rising unemployment from Robots, society will face an intractable problem: Namely, a loss of consumer demand for all goods and services since a larger share of workers will be unemployed as a result of Robot replacements. It is estimated that this will seen in 2018: In 2018 9% of jobs will be automated while 2% will be created in automation for a net loss of 7% of American jobs.

One of the proposed solutions to maintaining a reasonable standard of living for most Americans is the creation of a Universal Basic Income [UBI] for all Americans who lose their jobs to robots.

While this may appear to be a radical proposal for the United States, UBI or some similar program will be required to avoid a serious recession.

You can read a thoughtful and short paper on this idea by clicking here: Universal Basic Income to see Benjamin D Goodwin's paper on Universal basic Income.

AND, read Cory Booker here: Cory Booker's Big Idea

The Congress of the United States has prepared a report on the National Security implications of AI: Report to Congress

Sunday, April 15, 2018

The Short Term Political Future of the United States of America

It is probable that the influence of President Trump will diminish either before, or because of, the 2018 Congressional elections.

The continuing investigations of his possible criminal actions will impede his focus and may contribute to his initiating some irresponsible actions. It is arguable that the recent Syria bombing was timed to divert attention away from his political difficulties.

Potential impeachment or other prosecutions will also cloud his judgment.

It is reasonably certain that after the election the House of Representatives will be controlled by the Democrat party and also possible that the Senate will as well. The President will be less able to initiate actions since some of his actions will require approval of both houses of Congress.

We can hope that America witnesses a resurgence of good will and a lessening of the fear and hate which arose from the negatively populist movement which contributed to his electoral victory.

It is time to find common ground and focus on the values which unite us and Americans.

I expect that Americans will look for that commonality in the near future.

But, underneath the political discussions lie some real economic problems. While we have a good economy at the moment, not everyone is seeing the benefits.

There is a continuing concentration of wealth, income and power among a small minority of citizens. If this trend is not reversed, it will create real instability in the political process. Americans at the bottom of the wealth and income hierarchy are suffering with real problems. Should we continue to ignore those problems, the conditions may lead to a revival of the populist trends in America. These same trends today support potentially Fascist regimes in Hungary, Poland, Turkey, Venezuela and the Philippines, according to Madeleine Albright, former Secretary of State.

One of the common causes of these trends is that the governments incrementally lose touch with their populations. As a result, the populations can become frustrated and support a demagogue who appeals to their frustrations and scapegoats a minority while consolidating his power and installing and/or extending corruption.

Tuesday, April 3, 2018

For further Reference on the Author

It may be of interest to learn more about this blog's author, Mike P. McKeever. Here are some links to his work:

You can go here to see Mike P. McKeever Institute of Economic Policy Analysis

You can go here to see the Amazon Author page for Mike P. McKeever.

And, you can go here to see the Biography and Lifetime Achievement page

For a Public Relations Announcement Resume, go here: Public Relations Announcement

See also Marquis educators citation here: Top Educators

And, you can go here to see the Linkedin Profile.

Saturday, March 3, 2018


The SECRET banks HIDE - Revealed in my new book

by Mike P. McKeever (Author)

Ancient banking practices in use today create large pools of money in private, for-profit banks. These money pools are large enough to destabilize the entire economy

Sunday, February 25, 2018

Russian Interference in USA is Real

There is no doubt now that Russians are actively engaged in an attempt to destabilize democracy in the USA and other countries.

It is an actual and virtual war.

Read the Mueller indictments here

Monday, January 15, 2018

WHY fix banks??

WHY fix banks?? They work fine, don't they?

BUT, traditional banking practices create HUGE incentives for criminal behavior by bankers.

Here's how.

For literally thousands of years bankers have known and used the FRACTIONAL RESERVE SYSTEM. This means that banks do not keep all your money in their vault for you. After all, it's easier for you to leave your money in the bank when you're not using it. Bankers know you will leave your money there as long as you are sure you can get cash when you want it.

They keep a small percentage - say 10% or 20% - in cash on hand for you, knowing that you and other depositors will never ask for all your money at once.

What that means in practice is that when you make a bank deposit of, say, $1,000, you have just given $800 to a banker to do whatever he wants with it. He can, and does, gamble, build big houses, buy back his stock, etc, etc.

After all, it IS a for profit bank run by individual bankers. The only obligation he has to you is to be able to give you your money when you want it. And that's only because he does not want you to take your money out of his bank.

NOW, consider the slush finds of for-profit banks as a group:

According to FORBES, []....the top 5 US banks have $5.2 Trillion in demand deposits while the entire system has S12.9 trillion. That's almost as much as the US GDP!!!

Here's what it really means: the TOP FIVE [5] banks have a slush fund of FOUR TRILLION DOLLARS [80% of the deposits] !!!!


What CAN they do with a $4 TRILLION SLUSH FUND!!

Well, here's what they say they do: they make some loans and buy some company shares. AND, they pay a lot of lobbyists to keep restrictive regulations from becoming law.

BUT, here's what they REALLY want: They WANT Depressions!!!

Not to say, banks CREATE recessions on purpose, BUT they do make profits from recessions.

Because, when we are all suffering in a recession, that means they can buy real estate and other assets and bargain basement prices. Then they make a fortune when prices rise again.

AND, if you lose your job and your house in a recession - it's just the 'market' after all.

ONE of the causes of the Great Recession of 2009 is that a few banks sold bonds to other banks which were backed by home loans. Even though many of the loans were non-performing, i.e., were in arrears, the bonds were sold as AAA rated. AND, they bribed the rating agency to keep the rating. [See the aclaimed movie 'THE BIG SHORT' [].

Non-traditional banks are the ONLY answer to protect consumers. Both of these solutions protect ordinary people from banker's greed by removing the profit potential from criminal activity.

1. Nationalize the commercial banking functions where banks receive deposits and make loans. The Federal government will own them. See detailed explanation here:

2. Place all deposits into non-profit credit unions. This will prevent individual bankers from taking risks with deposit reserves.

Find a Credit Union near you here:

Thursday, January 11, 2018

Senate Report Details Putin Attacks on U S Democracy

THE study showing what Putin has been doing to the United States:

Wednesday, January 10, 2018

Long Con at the White House

We KNOW he is a con man, but everybody has bought the hustle.

Folks, he doesn't care about issues, he is just delaying progress with blather.

He is clearing personally ONE MILLION DOLLARS PER DAY [approximately] from his position.

He just wants to stay as long as possible.


List of trump conflicts :

Tuesday, January 9, 2018


Big banks caused the last recession AND also fund lobbyists who support inequality with bad laws.


If One Million people close accounts worth at least $2,000 EACH at BIG BANKS, the banks will lose 2 TRILLION DOLLARS!!!

That's enough to take away their power to ruin us.

WE CAN DO IT - Just transfer your money to a credit union; you'll get the same service including insurance AND higher interest on savings as well as cheaper credit cards.

AND - it'e BETTER for the economy since Credit Unions are more likely to support small businesses than Big Banks who support MONOPOLIES!!




Tuesday, January 2, 2018

New Country Studies Published

The Mike P. McKeever Institute of Economic Policy Analysis [MIEPA, at] is pleased to announce the publication of seven new country studies, four for the United States of America, two for the Philippines and one for South Korea.

The United States of America is analyzed by Specialists Emma Hogan, Brian Collica, Liam Azulay and Hanna Batla; their analyses can be accessed at

The Philippines has been analyzed by Specialists Lemon L. Calulut and Kimberly Escario; their analyses can be accessed at

South Korea is analyzed by Specialist Kathy Lee; her analysis can be accessed at

Mike P. McKeever, Founder MIEPA

Friday, December 15, 2017


Our American system of governing is corrupt. This page wants to promote alternative economic actions that will take money away from the corrupting few. Boycotts, demonstrations and non-traditional economic systems are encouraged here. Violence is discouraged. Please submit your actions and ideas at the FB group

Tuesday, October 3, 2017

Public Banks Needed for Coming Recession

An elementary introduction

Read the entire paper by copy and paste this link:


This paper presents a concept on reforming the commercial banking system in the United States of America.

The concept is to transfer all the assets and liabilities involved in commercial banking today from private ownership to public ownership. New entities will be created by establishing public ownership of those items formerly owned by a commercial bank into a new entity, perhaps utilizing current locations and offices. Consequently, there will be many new banking organizations and not a centralized organization.

The assets to be transferred include all deposit liabilities as well as loans receivable and cash reserves held against deposit liabilities currently on the books of US banks. Any assets and liabilities which are not involved in accepting deposits and making loans will remain with the now existing business. The now existing banks which remain will be free to buy and sell equities, sell investments and insurance and participate in stock markets as an investor or seller of products.

With the revision proposed, the new commercial banks will be more stable than the current banks since the new banks will be unable to participate in other activities. This will be a re-invention of the Glass-Steagal law which coincided with a 50 year period of financial system stability in the USA.

Several attempts have been made to re-introduce those provisions after they were repealed in the late 1980's, but all such attempts have failed.

Nevertheless, those provisions are needed today.

It is likely the USA and the world will experience a recession and deflationary period in the coming years similar to the 2008 to 2009 bank crisis and recession; many cities in the world are experiencing a bubble in residential property values. While the US banking industry has proposed regulations to prevent a similar collapse to 2008, the legislation was watered down and failed to address the concerns. That is the reason change is needed. (1).

read more at this link:

©October 3, 2017, Mike P. McKeever
San Francisco, CA, USA

While this material is copyrighted, you are hereby granted permission and encouraged to copy and paste any excerpt and/or complete statement from any entry in this paper into any form you choose. In return, please provide explicit credit to this source and a link or URL to the publication. Email links to

Saturday, September 23, 2017

Restoring the US Middle Class - 10. Single Payer Health Care

Insurance Profits Do Not Belong in Healthcare

Regardless of the outcome of the Supreme Court's decision about the ACA Act, there is no place for profit in the healthcare system. If we can eliminate insurance company profits, we can pay for our healthcare with current expenditures.

Our current health care system does not make sense. It will be a little better if the 'Supremes' validate the current Affordable Care Act [ACA] system.

But even if the ACA program is upheld, the system will cost too much, deliver too little care and leave too much money in private insurance companies.

Single Payer Could Eliminate Insurance Profits and Cover All Healthcare Costs with no Increase in Total Expenditure

By moving to a single payer system, we can deliver better care to all citizens at a lower cost.

In a study of the Minnesota Health Care system, the Lewin Group forecasts that a single payer system will reduce total health care spending in the State by 8.8% as compared to a fully implemented ACA:

Market Failures Hurt People Today

The current and proposed ACA systems create market failures which leave significant numbers of people without health care.

Those market failures reduce our Economic National Security since sick people are unable to contribute economically and since the sick and uninsured are directed to the emergency system.

Saturday, September 16, 2017

Restoring the US Middle Class - 9. Keep Social Security and Medicare as they are

Some Politicians want to Destroy Social Security

Not only do these programs provide dignity to people who have worked all their lives, they provide significant income to help support Aggregate Demand.

There are pressures to reduce or destroy these programs. The stated reason is the budget deficit, but the real reason is simple greed from the financial system.

Countries which have chosen to reduce pensions and healthcare because of a fiscal deficit problem are now experiencing recessions and high unemployment.

No country in history has been able to cut its way to prosperity. Many countries have found prosperity by borrowing in bad times to sustain employment.

Social Security and Medicare are the most successful government programs of all time. And, we cannot cut these programs and expect economic recovery and job growth at the same time.

They have achieved the goals of making old age for United States citizens a happy time instead of a time for terror.

Not only that, but the economic impact of the programs is considerable; any reduction in these programs will have a dramatic and immediate impact on GDP and job creation.

Economics of Social Security

Some facts about Social Security from Roberto Gallardo and Al Myles were published in Daily Yonder [] :

Social Security supports 8.4 million jobs and makes annual payments to recipients of about $1.2 trillion. 51 million people receive checks from Social Security - that's about 15.7% of the total population.

Gallardo and Myles have calculated that a 5% reduction in Social Security payments will reduce GDP by $63 billion, reduce employment by 419,000 jobs and reduce federal tax collections by $7.8 billion.

While there may be an argument in favor of adjusting the formulae used in the programs, it is clear that significant reductions must be prevented in order to secure recovery and growth.

Tuesday, September 5, 2017

UPDATE: Russia - WHY??

I propose a theory of why trump does what he does.

It is only a theory and it is open for challenge.


trump won the election by appealing to groups suffering economic hardship and real misery.

Most of these folks have real concerns but are not sophisticated politically.

Then, it is easy to rouse emotions from the core group and to propose actions which will appeal to them and which will also enrich the elite, like trump.

This is one of the constant themes of the administration: 'I feel your pain and I will take care of it for you. My [tax cut, education privatization, environmental regulation gutting, etc., etc.] will help you.' But, the actual policies do NOT help the people to whom he promises relief - instead they serve to further enrich him and the richest 1%.

That part is pretty well known.


Here's what to say about Russia and trump.

Foreign spending on United States election campaigns is a crime. Russia is a Continuing Criminal Enterprise [see 21 U.S. Code § 848 - Continuing criminal enterprise, here], so Putin disregards United States law.

Facebook has announced that internet troll farms in Russia paid $100,000 for fake news ads disparagng Hillary Clinton in the 2016 election [].

Whether this criminal activity affected the elections' outcome is moot at this point.

But, if it is proven that trump's campaign colluded with the Russian campaign then some people in the administration may go to jail. trump used Russian money and support in his campaign for office regardless of its illegality.


While this can explain some of the short term actions and choices, it does not necessarily provide an endgame strategy.

It may appear fantastical at first read, but the following theory does seem to fit many of the facts.

trump's endgame may be to create a fascist dictatorship while removing the current United States Government and the Constitution. This endgame may or may not be conscious and deliberate.


Consider these:

1. He seems to be destroying the fabric of the country by doing two things. First, he proposes laws and removes regulations which act to protect working families and the environment. Second, he appoints ignoramuses to influential governmental positions with the expectation that they will support his actions in the first instance.

2. He decides that really rich people will be successful in government service. They are thus good stewards of our public assets. Further, they, and he, can and will take advantage of their governmental position for personal financial gain.

3. Every statement or tweet he makes is designed to obfuscate facts and make listeners lose trust in their senses and beliefs. The endgame here is the destruction of the population's belief in 'facts'.

4. Because of 3 above, nothing trump says is objectively 'true'; each statement is designed to appeal to an ignorant base, hide the facts and cast doubt on anyone who disagrees with him.

5. He panders to this base since nearly everyone else on the planet does not trust him. Unfortunately, some of his base supporters are racist, fascist, ignorant and desperate people who cannot trust anyone else since their lives are miserable now. Their misery is due in fact to the poor economic policies of the Bush era and the resulting poverty and unemployment. But, since misery and unemployment help him in his pursuit for power, he consciously pursues the identical economic policies of the Bush era which created the problems. Then, he blames Obama and Hillary for the resulting misery.

Some of his supporters are well-off folks who seemingly share the distrust of media and politicians endorsed by the poorer members of the base. And, some of them are simply racist.

6. trump's support of violent, fascist tendencies in his base is clear and obvious. He has encouraged an armed base of alt-right supporters ready to march at his command. This base is pandered to by the NRA as well.


The real danger is that trump may create a movement which he cannot control.

As I said, this is a theory. I will be very happy to be wrong.

Install Punitive Bank Regulation - Restoring the US Middle Class - 8

Bankers’ Criminal Actions Caused the 2008 Crisis

Stability in our financial system is required for our national security.

We know absolutely that the financial system cannot regulate itself without great harm to our economy. Bankers who cause great national harm should be punished with jail terms. Merely fining bankers does not prevent future criminal behavior. A fine is considered a cost of doing business and not a deterrent.

There is a Simple Solution

Under Glass-Steagal we had stability for 50 years.

Restore it. It prevents criminal behavior.

It is the only choice.

The United States of America in which most of the population lives has learned a lesson. We have learnt this clearly and absolutely; we know it as well as we know our names.

The lesson is this: Bankers will not consider the effects of their actions on other parties. They have proven repeatedly that they act as if they are in a vacuum. They take no responsibility for any harm they cause.

Banks caused the recent economic meltdown; they will cause future recessions and depressions unless they are restrained.

Government’s Job is to Protect Citizens from Criminals

From that lesson it follows that the government of the United States has the responsibility to protect the population from bank practices.

As citizens, we have the distinct impression that the bank lobby has corrupted the political and regulatory processes thoroughly.

This is the source of our discontent.

Once in our history after great misery and social malaise, we created a bank regulation process that protected the population.

This group of laws was passed in the 1930's. These laws were based on the assumption that banks cannot be trusted to act in the public interest.

These laws were successful in providing a stable financial system for half a century. During this stable period, we enjoyed great prosperity. The laws were extensive and punitive.

The basis of the system was the Glass-Steagall act which prohibited a commercial bank from buying or selling stocks or insurance. Commercial banks are banks which take deposits and make loans.

Some of the other laws are listed below.

The Federal Deposit Insurance Corporation [FDIC] was created to insure the safety of commercial bank depositor's accounts. When a bank failed, the FDIC paid off the depositors, but allowed bank owners to lose their investment.

Investment banks were created to make investments in stocks and other instruments. They were allowed to fail and there was no insurance to protect the owners or investors.

The Securities and Exchange Commission [SEC] was created to protect investors from criminal stock promoters.

All companies which took deposits and/or made loans were regulated; there were no unregulated financial institutions.

Savings and thrift institutions were regulated so that they could take deposits, but were allowed to make loans on residential real estate only. They were not allowed to issue checking accounts.

Insurance companies could not trade in stocks, make loans or take demand deposits.

The Federal Reserve Bank established limits on interest rates that could be charged to borrowers and paid to depositors by banks. The FED also examined banks carefully to ensure their loan portfolios were sound and the managers were capable. And, the FED established and enforced capitalization ratios to ensure that banks would stay sound during hard times.

This is only an introduction to the concept of ensuring the financial stability of the United States of America.

All the listed laws, and the array of acts, laws and statutes not covered here, have as their common foundation a simple idea.

That common foundation is this: banks cannot be trusted.

In case of any doubt, the article in the link here provides evidence of criminal bank behavior:

Friday, September 1, 2017


The foundations of Liberal Democracy as implemented in the United States of America and the Constitution are under deliberate assault today by armed troops.

President trump is encouraging this attack through his actions and his pronouncements.


Yale Professor Timothy Snyder describes how trump compares to Hitler and Mussolini in the 1930's here:

"Picking out a group of your neighbors and citizens and associating them with the worldwide threat, that’s the 1930s' says Snyder.


The American Fascist troops carrying out this attack are the Alt-Right and NAZI supporters who use our liberal concept of tolerance to subvert our institutions.

They assemble under the guise of freedom of speech and incite intolerance of Jews, African Americans and Hispanic immigrants. Usually the NAZI and Alt-right troops carry weapons to their political assembly.

If they are countered by ANTIFA protesters, they claim that ANTIFA are the instigators and are the terrorists.

It is as Karl Popper said in 1945:


The paradox of tolerance, first described by Karl Popper in 1945, is a decision theory paradox. The paradox states that if a society is tolerant without limit, their ability to be tolerant will eventually be seized or destroyed by the intolerant. Popper came to the seemingly paradoxical conclusion that in order to maintain a tolerant society, the society must be intolerant of intolerance.

If NAZIs remain unchallenged today, they march down the street shouting 'Jews will not replace us,' and 'Blood and Soil,' both NAZI chants from the 1930's.

We must counter them at every turn. We cannot assume that the threat will dissolve:


First they came ..." is a poem written by German Lutheran pastor Martin Niemöller (1892–1984). It is about the cowardice of German intellectuals following the Nazis' rise to power and subsequent purging of their chosen targets, group after group.

'First they came for the Socialists, and I did not speak out—
Because I was not a Socialist.

Then they came for the Trade Unionists, and I did not speak out—
Because I was not a Trade Unionist.

Then they came for the Jews, and I did not speak out—
Because I was not a Jew.

Then they came for me—and there was no one left to speak for me.'



At the moment there is only one group actively defending our freedoms: ANTIFA.

And yet, ANTIFA protestors are called terrorists because they stand in opposition to NAZIs. There are no good Nazis. Americans stand against NAZIs and Fascism. Those who stand against NAZIs are not terrorists, they are heroes fighting for good against evil.

ANTIFA must continue its campaign of actively countering every NAZI demonstration. One would like it that there is no violence, but the fight is between good and evil. Sometimes, there may be blood spilled,; if so, it is on the NAZI heads. For they are the ones attacking our values. Those who stand against evil will obey the law and will suffer the punishment of the law if the law is broken.

If left unchecked in the name of freedom of speech, the NAZIs will aim to overthrow our constitutional form of government and replace it with a fascist dictatorship wherein minorities and protesters are jailed and disappeared.

Thursday, August 31, 2017

Restoring the US Middle Class - 7

7. Extend Utility Regulation

Utilities are Necessary Monopolies

There are some businesses which require a government protected monopoly for some reason; for example, some industries like electricity generation and distribution require such huge capital investments that investors will not make that investment unless assured of freedom from future competition.

In these cases it makes economic and national security sense to regulate the prices charged to the public so that the company earns a normal profit, which allows a return to investors sufficient to ensure survival and uninterrupted service provision, but does not allow for monopoly profits.

Utility Defined

Any industry whose products or services are regularly used by more than one third of the population and in which there are few suppliers is a candidate for public utility designation.

'A public utility, or utility, is an organization that maintains the infrastructure for a public service (often also providing a service using that infrastructure). Public utilities are subject to forms of public control and regulation ranging from local community-based groups to state-wide government monopolies.' [wikipedia]

Public services regulated as monopolies in the United States have included water, sewer, electricity, natural gas, highways and roads, telephone and telegraph, airlines and railroads.

Often the service provided by the utility is a monopoly or oligopoly for a variety of reasons. One reason can be capital requirements: Perhaps the provision of the service requires huge capital investments such that the service provider could not attract the capital required to provide the service without a guarantee of returns to the capital providers. The guarantee is usually in the form that the provider will be insulated from competition.

Monopoly Power

Regardless of the reason for achieving or granting such monopolies or oligopolies, the effect is that the providers have such enormous power over customers that there is a great temptation to achieve monopoly profits by pricing the product or service at a higher price than would obtain in a competitive marketplace.

Monopoly profits can occur whether the industry is a monopoly or not. The test is whether the firm faces a sloping demand curve and can achieve monopoly-style profits by raising the price above and reducing the quantity sold below a competitive equilibrium.

If monopolies and oligopolies are allowed to earn monopoly style profits, the result will be greater inefficiencies in the market place and a transfer of significant portions of consumer surplus to monopoly profits; the effect would be to reduce middle class incomes further.

Regulation to Prevent Monopoly Abuse is Common

A common solution to this problem is to regulate the utility carefully so that it has the ability to earn a sufficient return to attract capital but is prevented from usurping consumer surplus into monopoly profits.

For example, many communities have Public Utility Commissions which regulate the pricing and practices of utilities. These are elected bodies which have the power to approve or reject rate changes and capital investments. This concept has been recognized in the United States for more than 100 years; for example, a Public Utility Commission was established as part of the Colorado Constitution adopted in 1876 as 2.26 ARTICLE XXV. Public Utilities.

When left to function in the public interest, these commissions frequently succeed in pricing the service close to what a competitive market might establish.

When that occurs, the public interest is served since the Utility is prevented from achieving monopoly profits.

In today's economy there are numerous examples of monopolies and oligopolies which do secure monopoly profits but are not regulated to prevent that occurrence.

Expand Utility Designation and Regulation

It is time to expand the number of industries subject to Public Utility Commission style regulation. Such an extension would reduce the accumulation of monopoly profits and the consequent reduction of middle class purchasing power. By that mechanism, we would see additional economic growth springing from an increase in middle class buying power.

And, I suggest we extend the candidates for such Public Utility Commission style regulation to include industrial products as well.

Utilities should include industries in which the final product or service is used by more than one third of the households AND in which the four firm concentration ratio exceeds 60%. Such a calculation will be allowed for city, county, and state as well as national public utility designations.

When considering industrial products which are not sold directly to households but are raw materials or components of other products, then we should consider only the concentration ratio. Whenever the revenues of the top four firms in such an industry exceeds say 70% of the total industry revenues, then the industry should be deemed a utility and a Public Utility Commission should be assigned to regulate it.

By adopting such a course, the United States of America will strengthen its Economic National Security by reducing the power of some monopolies and oligopolies to accumulate capital and by transferring some of that capital to consumers in the form of lower prices and greater access to products and services.

Monday, August 28, 2017

Alt Right Violence

When ANTIFA members physically attack alt-right NAZIs, it raises a question about tolerance and violence.

The answer is simple: NAZI intolerance is fundamentally evil and it must be resisted whenever it appears.

[See below the PARADOX OF TOLERANCE, Karl Popper in 1945; he suggested that we cannot tolerate intolerance among us.]

We have history of what happens when NAZIs win. It is not acceptable.

The Bible is clear: Evil is violence and must be resisted.

Then ANTIFA - Go forth and resist evil when it appears. Do not enjoy the violence, it is just a means to the end of defeating evil. Break their spirit but not their bones or their skin. Send NAZI evil back to the darkness.

Biblical statements:

Proverbs 13:2 'From the fruit of a man's mouth he enjoys good, But the desire of the treacherous is violence.'

Ezekiel 7:23. 'Make the chain, for the land is full of bloody crimes and the city is full of violence.'

Micah 2:1-2. 'Woe to those who scheme iniquity, Who work out evil on their beds! When morning comes, they do it, For it is in the power of their hands. They covet fields and then seize them, And houses, and take them away They rob a man and his house, A man and his inheritance.'


The paradox of tolerance, first described by Karl Popper in 1945, is a decision theory paradox. The paradox states that if a society is tolerant without limit, their ability to be tolerant will eventually be seized or destroyed by the intolerant. Popper came to the seemingly paradoxical conclusion that in order to maintain a tolerant society, the society must be intolerant of intolerance.

wikipedia - The Paradox of Tolerance

Sunday, August 27, 2017

We Need Stronger Unions

See Restoring the US Middle Class - 1

The graph below shows which state have pre-empted federal Minimum wage, meaning that employers in these states do not have to pay workers the federal minimum.

Thursday, August 24, 2017

Restoring the US Middle Class - 6

In the interest of restoring a viable middle class to the United States of America, I will reproduce sequentially chapters of my book in this space. The title is 'Occupy Wall Street Plan 12: A Proposal for Twelve Specific Governmental Actions to Correct Some Economic Imbalances in the United States of America Kindle Edition'

The book is available as a Kindle book here :

My hope is that a more viable middle class will reduce class tensions.

NASA Study predicts end of civilization unless we equalize incomes:

Occupy Wall Street Plan 12

6. Create a National Industrial Policy

Create a Blueprint for the Future

The United States should create a blueprint for our future economic growth. We should establish industries in which we wish to participate and then establish policies which encourage and protect companies in those industries.

Industries should be chosen on the basis of the likelihood that they will create good jobs in the future.

Critics Claim the Government Cannot Predict the Future

Critics argue that the government is unable to make sound predictions in this area since even private companies have difficulty doing so.

While that may be, there are countries which use this practice with great success and many more countries which are beginning to establish this process. The government of South Korea established this practice in the 1950's and was able to convert a nation of rice farmers and fishermen into an industrial powerhouse.

An economic policy is any law, regulation or practice through which citizens and companies can find profit opportunities or can be taxed or harmed. Considered as such, policies can be national, state or local, but usually attention is paid to policies at the national level because they have the greatest impact.

The United States Already Has a Policy

When considered in this fashion, it is clear that we already have a national industrial policy.

But, our existing national policy has been developed in a haphazard manner and does not protect our Economic National Security adequately.

For example, it can be argued that our existing industrial policy calls for exporting manufacturing jobs, sustaining a large trade deficit, transferring technology to foreign companies regardless of the effect on our domestic economy and allowing a privileged class of bankers to speculate in a variety of markets while under the protection of government sponsored insurance against failure.

That does not make sense.

Other Countries Plan Better

Other countries like Japan, China, Korea and Germany have created a conscious industrial policy with some effect in creating a better economy for their citizens.

It is time that we emulated those successful countries. Our future Economic National Security requires it.

It will be a serious undertaking, however, since it will involve changing some powerful economic sectors. We can predict that any industry or influence which seems threatened by economic change will mount a strong campaign against change.

And yet, our future depends on it.

How Japan Does It

As an example of how such a policy might appear, here is a description of the Japanese policy from POLITICS AND PRODUCTIVITY : HOW JAPAN'S DEVELOPMENT STRATEGY WORKS, Chalmers Johnson, Laura D'Andrea Tyson, and John Zysman, Harpercollins (January 1991) :

‘The allocation of resources among industries and activities can be evaluated not only according to its Ricardian efficiency but also according to two other performance criteria:

1. Its growth efficiency or its effects on long-term rates of growth of economic activity

2. Its Schumpeterian efficiency or its effects on the pace and direction of technological change.

These two criteria clearly dominated Japanese economic policymaking in a self-conscious way. Japanese industrial policy targeted industries and activities that appeared to the Japanese planners to have the greatest future growth potential and the greatest technological potential over the long run.

As Freeman argues in his insightful book on Japanese technology policy, "MITI saw as one of its key functions the promotion of the most advanced technologies with the widest world market potential in the long run."

Under conditions of imperfect competition and technological change, an allocation of resources that is Ricardian efficient-in other words, efficient by current market indicators-may not be efficient in the growth or Schumpeterian sense.'

Suggestions for A United States Industrial Policy

When we think about an Industrial policy for the United States, we recognize that it will be a huge undertaking because we have such a large and diversified economy.

Here are some things to consider:

** Encouraging oil replacement technologies to reduce dependence on foreign oil supplies is a natural

** Auto manufacturing industry is a great job creator and a success for Federal intervention

** Reducing or eliminating our BOP deficit will save many jobs in the USA

** We should not do obvious acts which can harm our military strength or increase the military strength of our potential adversaries - we should not sell missiles to Iran, for example

Mostly, let us recognize that mistakes will be made as we move forward, but the biggest mistake is to do nothing.

As the sage Yogi Berra is reputed to have said: 'You've got to be careful if you don't know where you're going because you might not get there.'

Monday, August 21, 2017

Restoring the US Middle Class - 5

In the interest of restoring a viable middle class to the United States of America, I will reproduce sequentially chapters of my book in this space. The title is 'Occupy Wall Street Plan 12: A Proposal for Twelve Specific Governmental Actions to Correct Some Economic Imbalances in the United States of America Kindle Edition'

The book is available as a Kindle book here :

My hope is that a more viable middle class will reduce class tensions.

NASA Study predicts end of civilization unless we equalize incomes:

Occupy Wall Street Plan 12

5. Tax Away Great Fortunes, Great Incomes

Wealth Concentrations Reduce Wealth Generation

Huge concentrations of wealth and annual income harm our economy by diverting money away from risky investments in economic growth and into safety seeking investments.

It is well known that the primary criterion of investing is safety of principal. People with large amounts of money are risk averse and do NOT wish to risk that money in new ventures, preferring to find safer investments.

Our economy will grow faster and we will be more secure when we do not have extraordinarily large income and wealth concentrations. Then will capital have greater incentives to take risks and create growth.

The accumulation of great fortunes and large incomes in the United States has a deleterious effect on economic growth and job creation.

Wealth Creation Requires Risk

Economic growth and job creation comes from people who invest in businesses. It is well known that business investing is risky.

'Of all the new business startups, 1/3 eventually turn a profit, 1/3 break even, and 1/3 never leave a negative earnings scenario. According to a study by the U.S. Small Business Association, only 2/3 of all small business startups survive the first two years and less than half make it to four years', []

And, since most jobs are created in small businesses, then it follows that economic growth and job creation requires risky investments.

Wealth Owners Want Safety, Not Risk

People who create large fortunes are mostly interested in preserving their capital. They become risk averse as their fortunes become larger. They do not want to invest in risky businesses.

This was first recognized by Keynes in his description of the Marginal Efficiency of Capital. In Keynes' graph, the Marginal Efficiency of Capital is a negatively sloped curve where higher returns are associated with lower capital amounts and lower returns are associated with higher capital amounts. In the graph the vertical axis represents percentage returns, the horizontal axis represents the dollar amount of capital and the MEC line represents the downward to the right sloping, negatively sloped curve of actual investments made.

We can see this demonstrated through classifying some investments as low risk and some as high risk in the United States today.

HIGH RISK INVESTMENTS ARE COMPARATIVELY SMALL - The total amount invested annually in venture capital business start ups and expansions, which are high risk, high profit investments is about $250 billion per year.

SAFE INVESTMENTS HAVE HIGHER DOLLAR TOTALS - At the other extreme, the value of United States Treasury bills is now about $15 trillion with some one or two trillion added each year. T-Bills are widely regarded as the safest investment in the world and are now paying about 2%.

All the gold mined in the world by 2009 was about 165,000 tons with a value of about 10 trillion dollars at $1,900 per ounce. Of that, some 19% is held by central banks as currency reserves.

The total valuation of homes in the United States is about $ 9 trillion after the price meltdown of the last few years. Residential real estate is usually considered a safe investment.

Commercial real estate is also considered a safe investment although somewhat more risky than houses. It is also worth about $ 9 trillion.

Although somewhat more risky than T-Bills, the NYSE is considered a safer investment than new business start ups for a number of reasons. The total valuation of all the companies on the NYSE is about $ 15 trillion.

In conclusion, it is clear both theoretically and practically that people with large incomes and fortunes do not wish to invest in business start-ups. Any activity that increases already large fortunes will take money away from people wishing to start new businesses, thus reducing economic growth and the Economic National Security of the United States.

Thomas Picketty Suggests Changes to Keynesian Model

However, the situation has changed so much that Thomas Picketty in his book CAPITAL IN THE 21ST CENTURY has documented that the return curve is now a positively sloped curve. This means that the more money you invest, the higher returns you receive. The likely cause of this revolution in the capital to return ratio is that the large fortunes are now so large that they can control the institutional environment so that the laws favor their investments over smaller ones.

While the large returns Picketty attributes to large capital accumulations suggest a possibility of wealth creation investments, the actual effect may be very different since the primary motive of wealth owners remains safety of principal. It is likely that the owners of large fortunes look for safe, low risk investments and manipulate the regulation environment so that the returns are increased.

The implications of this change have yet to be determined.

Sunday, August 20, 2017

Restoring the US Middle Class - 4

Restoring the US Middle Class - 4

In the interest of restoring a viable middle class to the United States of America, I will reproduce sequentially chapters of my book in this space. The title is 'Occupy Wall Street Plan 12: A Proposal for Twelve Specific Governmental Actions to Correct Some Economic Imbalances in the United States of America Kindle Edition'

The book is available as a Kindle book here :

My hope is that a more viable middle class will reduce class tensions.

Occupy Wall Street Plan 12

4. End Free Trade

Free Trade Doesn’t Work

United States trade policy does not work. We adhere to a low tariff concept that undermines our National Security. It does so by transferring jobs to foreign countries and by facilitating huge trade imbalances which serve to transfer wealth created in the United States to our trade partners.

It is time to change trade policies so that we import only as much as we export.

Our trade partners do not reciprocate our trade encouraging practices and in fact use their trade laws and national customs to protect their domestic industries. It is time to recognize reality in trade.

Free Trade Doesn't Work; it's a fact and it's also the title of a book by Ian Fletcher [].

US Trade Policy Enforces Free Trade

Trade policy in the United States of America has been wedded to the idea of Free Trade since the 1950's.

One of the justifications for Free Trade and low tariffs for the USA was that we could promote industry in other countries by opening our consumer and industrial markets to the world.

Since the USA emerged from World War 2 as the world's major industrial power, we could afford to, we had an obligation to and our security was made stronger by raising living standards in other countries.

Since then many countries have developed strong economies by protecting their domestic companies and exporting products to the USA: China, Korea, Japan, etc., etc.

Due to their success, our relative economic strength has declined significantly to the point where our economy is now the first among equals instead of the acknowledged leader ; further, we are tied together with the other industrialized countries in an electronic embrace that we cannot break.

The time has come to abandon that policy and conduct our trade policy with attention to the real world and not to the theoretical world constructed in the 1700's.

Make no mistake, trade with other countries can promote our Economic National Security if it is managed carefully. Equally it can damage our security if it is left to market forces.

Harm to the US Economy

It is sufficient here to offer an estimate of the harm done to our economy by our recent and overwhelmingly negative trade balances.

By the term 'negative trade balances' I refer to the monthly and annual difference in current dollars between the exports of goods and services from the USA to other countries and the imports of goods and services to the USA from other countries as published by the US Census Bureau, Foreign Trade Division. This number is known as the Balance of Payments or BOP.

The BOP for the United States was either a small positive number - meaning the total dollar value of our exports exceeded the dollar value of our imports - or a small negative number until the mid 1980's.

In 1984, the BOP of the United States exceeded a NEGATIVE $100 BILLION for the first time. That means that in 1984 we bought $109.1 BILLION more of stuff from other countries than we sold to them.

In monetary policy analysis that means that our money supply was REDUCED by $109.1 BILLION in that year.

BUT, with the deposit money multiplier, it means that our GDP was reduced by about ONE TRILLION DOLLARS in 1984 alone. In that year, the GDP in current dollars was about Four Trillion Dollars.

SO, our GDP could have been reduced by about 20% in 1984 alone.

While there is some debate as to whether all that money was taken permanently from our domestic money supply and GDP or whether some of it was returned to the USA and used to buy T-bills, there is no doubt that the GDP reduction is significant.

That is just 1984.

We have consistently run a negative BOP ever since then.

Between 1984 and 2009, our cumulative NEGATIVE BOP was 7.3 TRILLION DOLLARS.

Using a conservative money multiplier of 10,that means our GDP was REDUCED by about SEVENTY TRILLION DOLLARS during the period.

In simple terms, we are not so rich we can afford to lose such substantial GDP every year to foreign trade. Unless this problem is corrected, it will bankrupt the United States of America.

Saturday, August 19, 2017

Free Hugs in San Francisco

The NAZI, alt-right is planning a big march in San Francisco for August 26.

Many marchers will be frightened young men worried about their future.

Here's a good idea:

Let's create stations, many stations with signs, that offer FREE HUGS, with no obligations, to marchers worried about their future, especially alt-right and NAZI marchers.

The only requirement is that anyone wanting a hug must show they carry no weapons. Bouncers will stand by to ensure safety.

Hugging volunteers can, and should be all kinds, men, women, gay, straight, etc., etc.

That's it.

Love will triumph..