Volcker Rule Proposal - Impossible

Hey Barry:

I was looking for ways to improve the proposal to help our country. Given the political system realities we face today, it is my opinion that the Volcker proposal will fail to help the country.

A reasonably careful reading of the Draft proposal provides clear evidence of numerous exceptions, qualifiers, definitions and other obfuscatory statements which may well compromise the Rule's efficacy or, alternatively, provide ample work for litigation attorneys and financial industry lobbyists.

We do not need that.

We need financial industry stability.

The Glass-Steagall act provided that stability for fifty years.

The Volcker rule will not provide stability.

Drop the Volcker rule and reinstate the Glass-Steagall Act.

Please.

Your pal,

Sensible Plan for Bank Failures

Hey Barry:

We know that we will see even more major bank failures very soon, probably as a result of the European situation as a proximate cause, but primarily due to underlying conditions of corruption and greed.

We need a plan of what to do when it happens.

Here is the plan:

1. Fire Timothy Geithner now. He will be unwilling or unable to implement any sensible solutions since his loyalties seem to lie elswehere than what is good for the country.

2. Upon a request for financial assistance from the Treasury or the FED beyond normal requests for short term loans by any bank of any size, or upon clear evidence of insolvency, immediately seize all the bank's assets and properties.

3. Close the bank for ten days.

4. Fire all managers.

5. During that time, liquidate all operations and assets involved in non-lending and non-depositor operations.

6. Ensure that the FDIC makes depositors whole.

7. Immediately begin a criminal investigation of bank management to locate which persons committed crimes or extra poor judgment.

8. Sue any bank manager found guilty of a crime to recover bank assets.

9. Re-open the bank under strict Glass-Steagall rules. Until Glass-Steagall is reimplemented by Congress and aggresively enforced by appropriate authorities, station a federal marshall in the bank to ensure that those rules are followed.

10. Under no circumstances allow the FED or the Treasury to rescue the bank without these changes.

These actions will ensure the stability of the country's money supply and prevent widespread catastrophes.

It is NOT throwing good money after bad.

Time for a change, Barry.

Your pal,

OWS - A New Way

Hey Barry:

Occupy Wall Street taps into all our frustrations about our country - the good ol U S of A.

We are broken.

The old ways don't work.

The new way has been developed by the Occupy Wall Street folks.

It is very different.

It has the potential to change the country.

I hope it does so, Lord knows we need changing.

Here's a report on how it looks from the inside:

http://www.truthdig.com/report/item/why_the_elites_are_in_trouble_20111009/

Pay attention to what they're saying Barry.

Your pal,

Volcker Rule Proposal: Problems 1, 2 & 3

Hey Barry:

I see some problems with the Volcker rule proposal.

PROBLEM ONE: CLARIFY STATUS OF 'NONBANK FINANCIAL COMPANIES'

While the proposal 'generally prohibits any banking entity from engaging in proprietary trading or from acquiring or retaining an ownership interest in, sponsoring, or having certain relationships with a hedge fund or private equity fund (“covered fund”), the language that may extend this coverage to 'nonbank financial companies' is unclear.

It should be made clear that all the provisions of the proposed rule apply to all nonbank financial companies as well as any banking entity.

It should also be made clear that any institution which accepts deposits from the public or other institutions and/or lends money to any person or entity is considered a 'banking entity' or 'nonbank financial company' and is subject to the rules.


PROBLEM TWO: Section 13 of the BHC Act.

While 'Section 13 of the BHC Act generally prohibits banking entities from engaging in proprietary trading or from acquiring or retaining any ownership interest in, or sponsoring, a covered fund,' the rule does not specify 'nonbank financial companies'.

This should be amended so that the rule applies to all 'banking entities' and 'nonbank financial companies'.

PROBLEM THREE: EXEMPTIONS

Section 13(d)(1) of the BHC Act includes exemptions from these prohibitions for certain permitted activities, including:

'Trading in certain government obligations;

Underwriting and market making-related activities;

Risk-mitigating hedging activity;

Trading on behalf of customers;

Investments in Small Business Investment Companies (“SBICs”) and public interest investments;

Trading for the general account of insurance companies;

Organizing and offering a covered fund (including limited investments in such funds);

Foreign trading by non-U.S. banking entities; and

Foreign covered fund activities by non-U.S. banking entities.'


All these exemptions should be removed so that the rules apply to all 'banking entities' and 'nonbank financial companies'.


Allowing these exemptions will allow some 'banking entities' and 'nonbank financial companies' to circumvent its provisions and render the rule impotent. Such rendering of the rule will place the entire financial system at risk.

These should be fixed, otherwise the rule will be useless.

Your pal,

Speak Truth to a Bank

Hey Barry:

Well - we can make comments on the Volcker rule proposal.

My comment is this: It's too weak. Make it stronger.

It was passed as part of Dodd-Frank. I thought it was already adopted; but it seems that it is just now available for comment.

Please go to the site and tell them what you think - a chance to tell the bankers directly and exactly what you think.

Find the site here: http://cdn.americanbanker.com/media/pdfs/093011VolckerRulePreamble_FINAL_DRAFT.pdf

Then follow links to post your comment.

Go for it - don't be shy or pull punches.

The banks got us into this mess and a strong Volcker rule can help prevent another mess.

We can postpone some future crisis if we restore the Glass-Steagall law so that commercial banks can NOT buy assets. Killing this law was the single biggest mistake we have ever made as a country; now commercial banks can now speculate in the stock and commodity markets with free money from the FED. Not only does it create the mega-fortunes we see, but it also kills any effective monetary policy. Monetary policy cannot work when banks have no incentive to make low profit loans and every incentive to gamble. Further, the BMB's keep bribing Congress and regulators so the situation won't change.

The Volcker rule proposal is a weak attempt to address this. Banks will try to water it down.

Don't let them.

Your pal,

Revisiting Bank Regulation

Hey Barry:

One of the biggest problems we face today and one which contributes to unemployment, destroys jobs and generally is bad for the country is the current state of bank regulation.

Bankers caused this mess around the world. So far we have not developed a way to prevent further problems caused by banks. The Dodd-Frank bill is just a start toward effective regulation, but even it has been gutted to impotence by our corrupt legislature.

I will outline the McKeever Method of regulating banks below.

If put in place, our world would be better for all.

You can read a paper I wrote on bank regulation in 2009 here: www.mkeever.com/bank_regulation_usa.doc

Here's a simplistic view of how bank structure would work in a McKeever world:

COMMERCIAL BANKS

Commercial banks can lend money for businesses, houses, commercial property and cars. They may not be the beneficial owner of those assets, I think that is the correct term. They cannot sell stocks, insurance or any other products.

They may own real estate that they occupy only - no investment property.

Commercial banks can receive money from the public for demand deposits, CD's, time deposits and any other instrument backed by the FDIC. They may not receive money from the sale of any asset unless they sell it as result of foreclosure.

Commercial banks will be monitored closely by the FED for good financial structure, management, loan portfolio soundness, etc.

Failing commercial banks, since they possess part of the country's money supply, should be wound down slowly and absorbed where possible, after making depositors whole.

INVESTMENT BANKS

Investment banks can buy shares of stock in any company or any asset they choose. They may not borrow funds from the FED.

Any security or product sold by an investment bank must be approved by the SEC - there are NO black boxes. All is disclosed.

Investment banks can go bankrupt regardless of size.

Of course, making these changes is difficult and politically charged. And, even if all these were implemented tomorrow, they would not solve our current mess, but the changes would help prevent future problems, IMHO.

Your pal,

99 to 1

Hey Barry:

Wow!

99 to 1.

We're winning!

USA!

USA!

USA Number One!

...............Wait a minute, I'm hearing something.....

Whattya mean the 99 is losing to the one?

That aint even possible.

How can 99 lose to just one?

Measly loner one?

They musta bribed the ref, fixed the rules, poisoned the opposition, changed the field.

They did all that, you say?

They had to.

No way does one beat 99 in any fair fight.

That fight caint be fair, its a dive, a fixed fight.

It aint right, that's all.

So Barry, whattya gonna do in a fixed fight?

Ya gonna fight fair or ya gonna fight dirty?

So, Barry, I guess it really is the one percent that's winning the fight and the rest of us 99ers is losing big time.

It's like Wilt Chamberlin is the one and the rest of us is just little pipsqueak, two pound chihuahuas barking at his heels.

We gotta take down Wilt.

No big thang. He's just a man.

But we gotta think real big.

Caint take down a giant with no piddly baby steps.

Wait a minute, you sayin that right now, today, there's a bunch of 99ers walking around and talking about how they been screwed outa their life by Big Wilt.

Well alrighty then.

Seems we gotta genuine movement here.

Ima thinkin what the 99ers want is a brand new system because the old one is just rotten.

Wow, a whole new system.

Where y'all gonna get that, Barry? Where's that gonna come from?

So, here's how to find that new system, Barry.

Ya gotta tie big Wilt's shoelaces together so he falls down and breaks his nose.

Then, ya gotta come up with a new system that makes the 99ers happy.

And, you know what?

That new system probably gonna look just like the one I already gave you.

You know, the 11 points I gave you last week, for free no less.

So far as of today, the 99ers are real peaceful and just finding their stride.

Now's the time to get big ideas out there, Barry.

Big ideas.

Because the first time some police shoots somebody, then we is in a whole new ballgame.

No rules then, Barry.

No rules.

So, Barry, get big for us.

Get Big.

We rootin for you.

Here's the 11 points Barry:

1. Laws which make it easier for unions to organize workers.

2. More Justice Department regulators to prosecute companies which break laws which encourage workers to form unions.

3. Enforce all anti-monopoly laws and pass more.

4. Make oil, gas, electricity, water, sewer and telephone services into Public Utilities and regulate them with a Public Utility Commission.

5. Cancel all Free Trade agreements and replace them with tariffs that protect American jobs and companies.

6. Create a national industrial policy which identifies those industries we want and protects them.

7. Tax away the great fortunes and incomes for they drain resources away from job creation.

8. Restore Glass-Stegall so that commercial, lending banks can NOT buy assets - fix the biggest mistake we have made since 1789.

9. Keep Social Security and Medicare as high as possible. You need a better examination of both programs and a sound proposal that focuses on how to keep each program viable. Simply demanding that the programs be reduced for deficit reduction purposes is unworthy of a leader.

10. Manage our debt so that we borrow when we need stimulus. We can keep the average annual fiscal deficit around 3% of GDP over time with a little work, but with high unemployment, it is the time to stimulate, not contract.

11. Require that broadcasters provide free access to qualified political parties as a condition of their FCC license.

Your pal,

Price of Existence: $74,000 Per Year

Hey Barry:

Talking about the middle class.

Now it costs $74,000 per year, or $6,170 per month for BASIC LIVING EXPENSES [Self-Sufficiency Standard], for a family of four in the San Francisco Bay Area of California.

There are lots of poor people in the Bay Area, but I never thought of $74,000 per year as POOR.

No restaurant meals, no vacations, no joy - only existing instead of living.

It costs $74,000 per year just to exist.

This is NOT the American Dream - it is the American nightmare.

Read it here: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/10/05/MNB11LD969.DTL

Your pal,

Fear and Death in the Water

Hey Barry:

That's us. Dead. No jobs. Bleak future.

So far, it just keeps getting worse.

One of the reasons for the downward spiral is that corporations are sitting on piles of cash and not investing.

Now, the Reps say that business doesn't invest because of uncertainty.

That's just pure BS.

They don't invest because they think things are gonna get worse. They are not uncertain about it either.

It's common sense. When you fear the future, you save money.

Consumers are feeling the same things - fear about the future. So, consumers stop buying and start saving. Good for us, bad for the economy; technical term is 'fallacy of composition.'

So Barry, where does that fear come from, anyway?

Itsa simple answer Barry. The fear comes from the Tea Party.

They have shut down the government and created fear about the future.

The entire system is gridlocked because of the Tea Party's shutdown of government in conjunction with our sellout to the oligarchs. We are an oligarchy now.

From now on, we ARE the third world where extreme disparities create misery and violence.

So, Barry, there aint no middle here.

There is either oligarchy or there is demonstration and revolution.

There aint no incremental solutions either. Any change has gotta be wholesale and dramatic and way more extreme than your jobs plan. Y'all can read my solutions in earlier posts below.

It may be too late already.

So, Barry, Where are you? Where are you?

Go down to Liberty Square in New York and show us where you are.

Itsa a double dog dare for you. Go down there and show us that you can lead.

It's our last hope.

Your pal,

Strike in New York

Hey Barry -

This is for the demonstrators in New York and elsewhere, but y'all can read it.

Hey Guys:

I totally love what you're doing. Keep it up.

Nothing else is working.

Here's an idea to get attention from the oligarchs who run our country now. Show them our power as citizens by closing one place each day.

Scout out a corporate business or government agency like a subway station or bank branch that allows easy access. Then send in way too many people so that the place is completely crowded. No one else can get in. Obey the fire marshalls if they ask for an emergency fire lane.

Tell all the employees and customers that you want the place to close for one hour in sympathy for Americans having a hard time. Ask for their cooperation.

Then leave after one hour. While you're there, act completely peacefully and lawfully. Don't take or leave anything - don't even use the bathroom.

You will get noticed.

Your supporter

USA Sold to Banks, Time to Cry

Hey Barry:

There's a book out there claiming that Geithner conned you into letting banks off the hook in 2009.

See the interview with Ron Suskind here: http://dailybail.com/home/dylan-ratigan-with-author-ron-suskind-tim-geithner-ran-the-w.html

The book is CONFIDENCE MEN by Ron Suskind.

What I get from the film clip is that you wanted to skin the banks and asked for a plan but that Geithner 'mugged' you and did not provide the plan you asked for.

So, Geithner's gotta go and some of the bankers gotta go to jail.

They sold out the country, Barry, the good ol USA was sold to the banks on your watch.

Makes me wanna cry, Barry.

Your pal,

UPDATE 10.16.11 - CHANGE NOW: Ross-Issa Postal Reform Act of 2011

Hey Barry:

UPDATE - I was conned or careless and I missed the fact that the proposed Ros-Issa law STILL sticks the USPS with accelerated pension and healthcare costs.

USPS needs to downsize some, but not to fund its future pension costs.

Amend the law to stop the prefunding or drop it altogether.

***********************
The US Postal Service was started by Ben Franklin. We have always had a good postal service.

But in 2006, the Reps passed a law requiring the USPO to fund future pensions. It applies only to the USPO because the Reps want to kill it.

We need to pass the Ross-Issa Postal Reform Act of 2011 so we can save some jobs and keep the Post Office.

If we don't pass the law, then the Reps may privatize the Post Office. That will mean less service, higher prices and the end of a pillar of the country.

Make the call Barry, encourage Congress to pass this law.

Your pal,

Republican Presidential Candidates: If You Can't Say Anything Nice.....

Hey Barry:

I began writing this blog during the 2007 primary campaign to replace George Bush. I attempted to examine each of the candidate's policy positions and determine which policies would likely have the best result for the United States.

For 2012, I do not believe this is necessary.

Each and every Republican Presidential candidate and unannounced, potential candidate has demonstrated by his or her policy pronouncements and pesonality that if one of them should be elected, the decline of the United states as a world power and as a good place to live would accelerate.

As my late Grandmother said: "If you can't say anything nice, then don't say anything.'

Run fast, Barry, we need you there.

Your pal,

Grading Barry's Economic Plan

Hey Barry:

Thought I'd put on my professor hat for a bit and look at your economic plan as presented here:

http://www.whitehouse.gov/sites/default/files/omb/budget/fy2012/assets/jointcommitteereport.pdf

Now, I understand that this is not a real economic plan - it is just a political move to direct criticism to the Reps. And, if this plan is stalled or watered down by the Reps - which it probably will be - then we can hope that voters will react by electing more Dems. The y'all can get together a real economic plan.

Make no mistake Barry: we are in a real crisis here and we need some real and effective action to correct negative trends in the economy.

But, this plan does not provide those.

This plan is a band-aid - if passed into law, it would bring some small comfort to a few folks and would not really hurt anything. So, from the Hippocratic perspective, y'all do no harm.

However, from the perspective of really fixing our country's economic ills, the plan is way short.

It is too timid and does not address the big, real issues.

We need 25 million jobs, not the 1.9 million that this plan might provide.

At the risk of repetition, here are the items that would be in a sound economic plan which WILL create millions of jobs:

1. Laws which make it easier for unions to organize workers.

2. More Justice Department regulators to prosecute companies which break laws which encourage workers to form unions.

3. Enforce all anti-monopoly laws and pass more.

4. Make oil, gas, electricity, water, sewer and telephone services into Public Utilities and regulate them with a Public Utility Commission.

5. Cancel all Free Trade agreements and replace them with tariffs that protect American jobs and companies.

6. Create a national industrial policy which identifies those industries we want and protects them.

7. Tax away the great fortunes and incomes for they drain resources away from job creation.

8. Restore Glass-Stegall so that commercial, lending banks can NOT buy assets - fix the biggest mistake we have made since 1789.

9. Keep Social Security and Medicare as high as possible. You need a better examination of both programs and a sound proposal that focuses on how to keep each program viable. Simply demanding that the programs be reduced for deficit reduction purposes is unworthy of a leader.

10. Manage our debt so that we borrow when we need stimulus. We can keep the average annual fiscal deficit around 3% of GDP over time with a little work, but with high unemployment, it is the time to stimulate, not contract.

11. Require that broadcasters provide free access to qualified political parties as a condition of their FCC license.

OK Barry - if you want an 'A', that's what your plan should look like.

As it stands today, I will grade your paper with a 'C-'.

You show promise, but you need to read more about economic policy and job creation. Please revise your work and resubmit it for reconsideration.

Professor McKeever

Reasons for Pessimism

Hey Barry:

Since I have turned pessimistic about the future of the Grand Experiment that was the Good Ol' U S of A, maybe I can explain some of where that pessimism comes from by looking at the economic trends that will wreak havoc in the coming years.

Our documented political gridlock will prevent us from addressing our economic concerns and those issues will continue to worsen our economy. In my considered opinion, the big fortunes have turned totally selfish and are actively harming the security and future of the country for short-term financial gain. I do not see a way out of this.

There are some steps we can take to postpone a crisis, but I doubt we have the will or ability to do so.

Here are those steps:

1. We can postpone crisis if we pass laws which make it easier for unions to organize workers; this will increase overall demand by raising wages. But, Congress has shown that it is captured by the Big Money Bastards and it is unlikely any pro-union laws will be passed. This situation will mean a continuing downward pressure on wages, lower aggregate demand, increased unemployment, deflation in housing and other key sectors and basically a downward spiral of GDP, jobs and wages.

2. We can postpone crisis if we hire more Justice Department regulators so we can prosecute companies which break laws which encourage workers to form unions. The BMB have co-opted the approval process of Congressional appointees and lowered the budget of regulatory agencies. This means companies will continue to be free from prosecution for any illegal union busting activities they may choose. Results summarized in #1 above.

3. We can postpone crisis if we enforce all anti-monopoly laws and pass more. Once again, Congress is in the pocket of big money corporations and I can see no likelihood of effective monopoly regulation. Since any monopoly creates economic inefficiencies from a lack of competition, it means that Americans will continue to pay too much for all the products and services they consume while the corporations enjoy monopoly profits which enable them to pay Congress for laws and regulations which protect their monopolies. Further, when monopolies control most major markets, their market power prevents any effective competition from arising, thus limiting job creation.

4. We can postpone crisis if we hire more regulators to enforce existing anti-monopoly laws........... I can only laugh - see #3 above.

5. We can postpone crisis if we make oil, gas, electricity, water, sewer and telephone services into Public Utilities and regulate them with a Public Utility Commission. Any time a product or service is used by most people and also requires large capital investment to achieve scale economies, there is a potential for monopoly abuse. That's why we had State PUC's and Federal anti-monopoly laws. Now it is time to control the utilities so their monopoly power is limited to reasonable returns on investment instead of monopoly profits.

The Nuclear power industry deserves special mention. This industry has corrupted the NRC so that our population is in imminent danger of an American Chernobyl. What is the hubris that suggests we can control the atom when we cannot keep bridges from falling down? I am torn between drinking myself to stupor and pissing my pants.

Fukushima WILL happen here.

UPDATE 10.7.11: Shut 'em down - http://barnegat.patch.com/articles/petitioners-fight-for-suspension-of-fukushima-style-nuclear-plants

6. We can postpone crisis if we cancel all Free Trade agreements: they destroy American jobs. And, we should quit the WTO, NAFTA and other agreements. There is enough evidence that Free Trade is a job-killing disaster. It is time to recognize the truth and cancel these job-killing deals. They benefit no-one except the corporations that send our jobs overseas.

7. We can postpone crisis if we create a national industrial policy which identifies those industries we want in the future and then encourages those industries with tariffs, subsidies and government contracts. While this would be a sensible approach to our future and one which is actively practiced in more rational countries, the politics of it in Washington DC make it DOA. Too bad.

8. We can postpone crisis if we tax away the great fortunes. Behind every great fortune lies a great crime. We are creating great crimes and great fortunes every day. The effect of this is to steal the means of making a living from the middle class and doom the country to a two tier economy: super rich and desperately poor. Welcome to the Third World. These fortunes stifle innovation, competition and job creation. The result is a static society with no growth - which is what we have today.

9. We can postpone crisis if we tax away the great incomes. Great incomes produce great fortunes - they are bad for the country. See #8 above.

10. We can postpone crisis if we restore Glass-Stegall so that commercial banks can NOT buy assets. Killing this law was the single biggest mistake we have ever made as a country; now commercial banks can now speculate in the stock and commodity markets with free money from the FED. Not only does it create the mega-fortunes we see, but it also kills any effective monetary policy. Monetary policy cannot work when banks have no incentive to make low profit loans and every incentive to gamble. Further, the BMB's keep bribing Congress and regulators so the situation won't change.

11. We can postpone crisis if we keep Social Security and Medicare as high as possible so that we do not reduce aggregate demand among the elderly and handicapped. Besides, it's the right thing to do. The shadow forces of big money want to take away any help for those who need help. Roughly 25% of the population receives checks from the federal government. Like it or not, we have a dependent population - it is unconscionable to walk away. But, that is exactly what the BMB will have us do.

12. We can postpone crisis if we manage our debt so that we borrow when we need stimulus and pay down when we don't need it. If we manage our fiscal policy with the sense we have displayed before, we can do that. But, I do not think we can do so in the current political climate.

13. We can postpone crisis if we eliminate paid political ads - require that broadcasters provide free access to qualified political parties as a condition of their FCC license. Paid political ads create the need for money that corrupts the process. It is sensible to eliminate the need for paid ads by requiring the media to provide a reasonable amount of free ads as a condition of their license. But, of course, those media empires will simply bribe Congress and the regulators so that will not happen.

As I said earlier, it is time to fight and die for the flag and the future.

The battlegrounds are listed above.

I'd love to be wrong, Barry. But I am not betting on being wrong.

Your pal,

Time to Fight AND Die

Hey Barry:

Well I promised to take a look at the economics of the moment.

But, Barry, it aint about economics - it's about the survival of the country in any manner recognizable to any adult alive today.

So, the proper question is this: Will the USA implode and disappear?

If we take the USA to mean a country with a functioning democracy, a coherent social structure and a viable middle class, then the short answer is:

Yes it will.

The grand experiment that began in 1776 will disappear.

It is probably gone already.

Regarding the reasons for our country's disappearance, I refer you to Mike Lofgren's excellent piece here: http://www.truth-out.org/goodbye-all-reflections-gop-operative-who-left-cult/1314907779

The only question remaining is what kind of country we will have in 20 years. We can get some ideas by looking backward at European countries when royalties were in charge. Ugly.

Well, Barry, stopping the rot is probably a suicide mission, but I'm with you if you want to fight.

If you want to really fight, y'all gotta get down and dirty. I know you have the stomach for it because you can kill in the night.

It's our last hope - fight the Big Money Bastards any way we can.

It's very clear: it's time to fight and die.

It's not fight OR die.

It's fight AND die.

Your pal,

Pride and Full Employment

Hey Barry:

Just got back from a trip to France to check in on some ancient family. You know what, they are different than us.

Big surprise, I know.

But, here's the thing: maybe we can learn something. My French language skills are horrible, but I did get some impressions.

Main thing, everybody is working and the trains are full at commuter time. Easy to find work there. We did not see a lot of bums and homeless.

In trying to figure out why, I had this idea: maybe it's because the French people are proud of their country and they are proud of what they do.

For example, when you ask a person on the street for directions to someplace, after you are sure that you have communicated exactly where you want to go, you will receive an absolute dissertation on how to get there - which streets to take, which not to take, which places are confusing and which are clear, and so on.

See, the French take pride in their everyday actions. And they expect respect for their efforts. And, last but not least, they take pride in their country. Such a simple idea.

Their solution for the folks who disrespected them was to cut off their heads. I saw a bust of Marie Antoinette, and you know what, I'd be happy to do the deed myself, if her attitude was anything like the statue.

But, I don't think we have a lot of pride in what we do everyday in the good ol' U S of A. We sure don't get any respect.

In fact, most jobs here seem to be structured to take pride out of the job. The implicit direction is this: Just do it quick and cheap, or we'll find someone who can do it quicker and cheaper.

Seems to me that if we can put a little room for pride into our jobs, then maybe we can put some respect into our country.

Most - not all - Americans who serve the public have that pride. Country and quality first, personal gain second.

Now, you Barry Obama cannot solve that question tomorrow, but maybe you can create a method to recognize the everyday folks who display that pride in work and service. Sure we do it for the military, but maybe we can do it for the rest of us.

If we can do that, then the question comes up: Should we recognize those who shame the country? I mean those folks who take advantage of the system and do not give anything back.

Personally, I'd rather see vigorous law enforcement directed at the cheats and crooks. Shame is not a bad thing, but jail may be more effective.

I'll be looking at the economics in a little bit.

Your pal,

Closed for Sabbatical

Hey Barry:

This forum is closed until September 14, 2011.

Your pal,

Monetary Policy is Dead

Hey Barry and Benny:

Times are tough out here in the real world - the world away from the DC Beltway.

Out here we understand a few things that don't seem to register on the Beltway brain.

Y'all talk some about jobs, but you don't do nothing.

The effin tea Party has shut down the country. They is just a bunch of spoiled kids with no sense of responsibility to the rest of us. But, that's where you folks seem to be these days: afraid to upset someone throwing a tantrum. It'd be a joke if it weren't bout ready to kill us all.

On top of that, the tools that y'all in DC expect to fix the economy and get us some jobs are jes plain broke - they is all kaput.

Y'all relyin on them tools to fix things. But, Barry, they cain't fix anything because they are broken.

Take the biggie: FED monetary policy. The way that it is supposed to work is that the FED creates some extra money in bank reserves and then the banks will lend out the extra reserves to businesses to make investments.

That don't work no more - plain and simple, it don't work now and it won't work tomorrow, period.

Listen up Benny, your QE has been a big problem, so stop already. You are just making things worse.

Here's why it don't work: Banks can buy stocks and speculate in oil futures with the free money that you give 'em.

That's a lot more fun and a lot more profitable than making loans, so why do you think they will make loans to businesses? They won't. Period.

Money is already cheaper than free. Keeping it free will NOT solve any problems.

The only way to fix it is to prohibit commercial banks from buying things and require that they make loans instead.

Now, we all know that - it ain't a mystery. So why don't we fix it?

We don't fix it and restore Glass-Stegall because the system is crooked. It is corrupt. Them big bankers jes buys off some politicians, and Presto! The law stays the same.

So, listen up Benny, you gotta get on some folks and get the law changed. I know that is outside your office, but it's what you gotta do. Quit your job and start a campaign. We're talking the future here and it's time to think outside the box.

Be a patriot - take one for the team.

It don't seem there's any other way.....

Your pal,

We Need Glass-Stegall

Hey Barry:

Here's another reminder that letting banks buy stocks was the dumbest thing we have ever done in the USA.

The FED bailed out big banks with trillions of dollars during the crisis. The losses were caused by their purchases of mortgage derivatives, not their loan portfolios.

Maybe I can become a bank like that Barry, then I can buy any old thing from Bernie Madoff and the FED will cover my losses and let me keep any profits.

It's a system designed to create crooks, and , guess what, it does a very good job.

Read it here: http://www.commondreams.org/headline/2011/08/28-3

Positively depressin.

Your pal,

Gadafi Gone

Hey Barry:

Gadafi is gone.

Hundreds of thousands of Libyans still alive.

USA on the right side of history.

Hope lives in the Mid-East.

No Americans killed, no American planes shot down.

NATO forces carry the load.

The world is a safer place today.

Terrorists have at least one less place to hide.

Y'all did good, Barry.

Y'all won't get any credit, not until the history is written.

So, enjoy the moment.

Your pal,

UPDATE TOKYO 10.21.11

To the NRC:

Here's latest from Tokyo: http://enenews.com/breaking-neutron-ray-measured-in-tokyo-uranium-235-found-in-chiba-cant-be-detected-by-most-geiger-counters-photo-video


How many Americans must die before you order sensible safety precautions?

The dead will be on you.

I do not want to be one of them.

Read the Ed Markey report: http://markey.house.gov/docs/05-12-11reportfinalsmall.pdf

UPDATE 9.2.11: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2011/09/01/national/w110341D19.DTL&type=politics

After the earthquake:

NRC is afraid to wake up Mother nature, and so tiptoes around nuclear facilities and declares them all 'safe'.

http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2011/08/24/national/a060421D78.DTL

Big Money Bastards Kill Hope

Hey Barry;

Here's the thing. It's kinda personal and it won't make any waves because it's real small. Nobody will even notice.

But Barry, maybe it's an indicator.

Y'all know I am American and concerned about where our country is heading.

Real concerned.

OK, there's some hope out there. And, keeping that hope alive is pretty much up to you, Barry Obama.

Our situation that triggers our question is this: We are thinking about a small investment, very small.

Question is this: What country is a safe place to invest?

The good ol U S of A is not looking very good right now. It's hard to see a good bet on the future here.

See, the Big Money Bastards [BMB] have taken so much that the entire country is at risk of folding like a house of cards. Even the BMB are taking lots of cash out of the country.

That brings us back to you.

Y'all thinking about how to manage the economy. That's a good thing.

And, y'all planning to roll out some new ideas in September.

Well, Barry, we are gonna decide on which country to invest in after we read your plan.

For us, the bottom line is real simple: Either you take on the Big Money Bastards or you don't.

There's hope for the good ol U S of A if you take on the BMB.

If you don't, then all our hope will just fade away.

And, we'll follow the BMB money out of the country.

Wish it were different, Barry, wish it were different.

Your pal,

PS 8.29.11: Here's the BMB list from Forbes:

http://www.forbes.com/2010/03/10/worlds-richest-people-slim-gates-buffett-billionaires-2010_land.html?partner=popstories

Paris Meet, September 8-13, 2011

Meet in Paris, September 8-13, 2011

Hey Barry:

My wife and I visited Paris between September 8 and 13, 2011 for some sightseeing and R & R.

Turns out that my family tree includes some members of the royal Capet and Plantagenet families who are interred in the Basilique Saint-Denis.

We'll make a trip there to see if we can find these:

Henry II (1519–1559)

Isabella Queen of France Princess of Aragon; Birth in Montpellier, Hérault, Languedoc-Roussillon, Death 28 JAN 1271 in Auvergne, France

Marriage to Philippe III or Philip III The Bold King of France de Valois Capet

Invitation still open to meet for informal economic policy talks. If any readers in Paris are interested in some friendly, informal economic policy discussion or debate over a glass of wine or cup of coffee, please send me an email to: mckeever.mp@gmail.com

Ciao

Your pal,

Dog Days

Hey Barry:

Dog days of summer are here, so relax and enjoy some time.

Listen to Florence here:

http://www.youtube.com/watch?v=iWOyfLBYtuU


The dog days are over
The dog days are done
The horses are coming
So you better run

Run fast for your mother run fast for your father
Run for your children for your sisters and brothers
Leave all your love and your longing behind you
Can't carry it with you if you want to survive

The dog days are over
The dog days are done
Can you hear the horses
'Cause here they come

And I never wanted anything from you
Except everything you had
And what was left after that too. oh.

Your pal,

Rick Perry State Socialist

Hey Barry:

Now that another Texas governor wants to be in charge, it's worth looking at his record in his home state.

Y'all know I'm not against socialism or government owned businesses on principle, but I am surprised that a Conservative Republican would be proud of a program that invests taxpayer money into business start-ups.

It's called the 'The Texas Certified Capital Company Program' and it acts as a VC firm, but is uses taxpayer money instead of private money.

Read it here: http://www.window.state.tx.us/capco/overview.html

Lord knows there is a LOT of private money around for good and not-so-good ideas these days; there is so much money around that no real good idea will lack for money. So, what's left over is crooks, dogs and Ponzi schemes - apologies to Ponzi.

History buffs will recall that Germany and Italy both had Fascist regimes in the 1930's and 1940's wherein the state funded private companies to work on government contracts. It did not work out so well for them.

The trouble I see as an economist is that such a scheme can become simply a 'crony capitalist' program where politician's friends get the contracts instead of letting contracts on a bidding process.

Lo and behold, it turns out that has already happened in good ol Texas.

Surprise, surprise.

Charles Dameron of the WSJ calls it out here: http://online.wsj.com/article/SB10001424052702304760604576428262897285614.html

Nobody can make up this stuff.

Holy cow.

Your pal,

How To Really Create Jobs

Hey Barry:

There was a news article saying that you were taking a few days off to think about how to approach economic issues.

That's a good idea, but Barry, y'all gotta be real careful.

Here's why: conventional economic thinking is wrong. Flat wrong.

Worse, it actually harms American people - real Americans, the ones who pay taxes and vote.

See, I'm one of those guys, and you know what, we all get it.

We all get that DC Beltway economics just screws us. It's been bought and paid for by the Big Money Bastards.

And, we are not happy about it.

So, that means y'all gonna have to go outside the box and color outside the lines. That's IF you really want to help the good ol U S of A and also get re-elected.

Now, much as I hate to sound like a paranoid wing-nut, there are some real issues here.

The central issue in real simple: the shadow forces of Big Money will not allow Congress to pass ANY policy which will actually help us real folks make more money and get a job.

That's because the shadows make their money by taking it from us. That's why there are no jobs: we don't have any money to spend. And, since consumer spending is still 70% of the economy, no spending means no jobs. The Big Money Bastards who own Congress would rather send the country down the drain than give up any of their cash.

In order to save our sorry a-- and save the country, you, Barry Obama, are gonna have to figure out how to get us more money so we can buy stuff.

Plain and simple - that's it.

Now, you can scratch any economist, or Democratic Congressperson and get a list of job creating policies. And, none of those policy ideas are gonna hurt anything. And, it's downright sad, but you cannot get a policy list from any Rep.

But, none of their policies will actually solve the problem.

To really solve the problem, we have to do some big things. Things the Big Money won't like.

Here they are again, the list of things we gotta do:

1. Pass laws which make it easier for unions to organize workers, this will increase demand by raising wages.

2. Hire more Justice Department regulators so we can prosecute companies which break laws which encourage workers to form unions.

3. Enforce all anti-monopoly laws and pass more.

4. Hire more regulators to enforce existing anti-monopoly laws.

5. Make oil, gas, electricity, water, sewer and telephone services into Public Utilities and regulate them with a Public Utility Commission.

6. Cancel all Free Trade agreements: they destroy American jobs. And, leave the WTO, NAFTA and other agreements.

7. Create a national industrial policy which identifies those industries we want in the future and then encourages those industries with tariffs, subsidies and government contracts.

8. Tax away the great fortunes.

9. Tax away the great incomes.

10. Restore Glass-Stegal so that commercial banks can NOT buy assets.

11. Keep Social Security and Medicare as high as possible so that we do not reduce demand among the elderly and handicapped. Besides, it's the right thing to do.

12. Manage our debt so that we borrow when we need stimulus and pay down when we don't need it.

13. Eliminate paid political ads - require that broadcasters provide free access to qualified political parties as a condition of their FCC license.

So there you are Barry. Those are the things we gotta do. Nothing wrong with the other things - WPA style work, more stimulus and so on - but those other things won't get the job done. Best we can hope for from those is a delay of more catastrophe.

To solve the real problem, we gotta get radical.

On August 28, Robert Reich called for some policies in his column titled President Obama needs a bold jobs plan. [http://www.sfgate.com/columns/reich/]

It's worth reading, but I don't think those ideas are bold enough. They won't hurt anything, but I don't think they'll get the job done.

We are hoping that you put us on the bold track, Barry.

If you give in to the Reps, we are goners.

Your pal,

RANT UPDATE 8/11/11: To the Mattresses

Hey Barry:

Hear the Rant by Dylan Ratigan - it's where we are now:

http://www.huffingtonpost.com/2011/08/09/dylan-ratigan-rant-debt-negotiations_n_922855.html

Holy Cow! You can't even get a good night's sleep after your birthday before another budget battle starts.

We all want, and the country really needs, big tax increases for the coming budget.

But, the Reps have just stacked the committee with tax-hardliners who will not raise revenues.

So, Barry, y'all gonna have to go to the mattresses because another war is coming.

And, this time, the Rep gang won't take any compromises because they want you - and the Country - dead.

So, Barry, you caint make a deal with them: y'all gonna have to 'kill' them in the political sense instead.

The deal is this: you kill them before they kill you and the Country - our Country, the good ol U S of A.

Is too bad, but that's the cards out there.

There is a real chance that the Country will go down for the count as collateral damage this time, Barry. Those guys don't care if the country dies, they jes wants what they wants. It's effin' absurd.

We are rootin' big time for you to get them before they get us because it's our future on the line.

Your pal,

Jobs, Jobs, Jobs

Hey Barry:

It's late, but Happy Birthday. The 50th was a big one for me - it was the one where I realized that I was fully grown and was all I was going to be. So, you should be real proud at your 50th: you are on the brink of some very big things and millions of people love you.

It’s time for some more real talk about economic policy in this informal forum. Be happy to expand any or all of the themes at your request.

So, Barry, we gotta be real clear here: traditional economics will NOT help us. Even Goolsbee said in an interview that the profession has to undertake some serious examination of its theories and policies. We need to acknowledge that the problem is inadequate domestic demand. It's not taxes or monetary policy.

So, we have to follow policies which increase demand. The policies we have used for the last 100 years WILL NOT WORK.

Here are some things we can do which will create jobs by increasing domestic demand:

- Pass laws which make it easier for unions to organize workers, this will increase demand by raising wages.

- At the same time, we need to hire more Justice Department regulators so we can prosecute companies which break laws which encourage workers to form unions.

- Enforce all anti-monopoly laws and pass more. The goal is to break up big companies so that smaller companies can be formed and hire more people. Some economists will holler about losing 'efficiency' from some duplication, but the goal is more jobs and not cheaper stuff.

- Hire more regulators to enforce existing anti-monopoly laws.

- If there are some industries which are essential and which benefit from economies of scale and for which breaking up monopolies is too costly, then make those industries public utilities with a Public Utility Commission to oversee them. Industries like oil, electricity, natural gas, telephone companies and internet service providers will qualify. To those people who complain about socialism, this is not socialism since the businesses are owned by private capital; this model has worked well in our past and today as well.

- Free Trade agreements destroy American jobs; do not approve any more such agreements. And, leave the WTO, NAFTA and other agreements.

- Create a national industrial policy which identifies those industries we want in the future and then encourages those industries with tariffs, subsidies and government contracts.

- Tax away the great fortunes. Nobody needs more than $100 million and the great fortunes are bad for the country. Our system is based on the public deciding which priorities our wealth should pursue - not some billionaire pursuing a better name in the history books.

- Tax away the great incomes - we need the money for our citizens and those with huge incomes do not have any incentives to promote the common welfare.

- Restore Glass-Stegal so that commercial banks can NOT buy assets.

- Keep Social Security and Medicare as high as possible so that we do not reduce demand among the elderly and handicapped. Besides, it's the right thing to do.

- Manage our debt so that we borrow when we need stimulus and pay down when we don't need it. I am pretty sure this will require a serious political revolution, but the alternative is simply not acceptable.

Well, Barry, that's a start.

Now I know that all of these will be political dynamite.

But, ideas like these are our only alternative.

If we don't do all of these and more, the future is bleak.

Your pal,

Light, Shadow, Tea Party

Hey Barry:

It's time to think a bit about light and shadow, good and evil.

We are smack in the middle of a continuing struggle between two extremes of human society. It's been that way for a long time, but now it's becoming very pronounced.

Ever since before Rome, humans have organized into large groups to manage our lives. Roman civilization was based on violence and slavery - Roman legions scoured new territories for healthy slaves to sell and murdered many of the rest of the people they conquered. It's fair to say that Rome was a shadow society, regardless of how many incredible engineering feats they accomplished. Rome is a classic model of highly unequal, slave based society; it may have been preceded by Egyptian and earlier societies as well. However, there are some studies which show that some earlier societies used paid labor for large construction projects as opposed to slave labor.

Fast forward to today..............what do we see? We see a number of shadow societies where wealth and power accumulates toward the top and the rulers keep order with force and violence. Societies like Syria and Libya are models of shadow societies today.

Well, most of the people who live in shadow repressive societies are trying to change things so they can have a decent life free from fear and violence. We call it the Arab Spring, but it's a universal longing to be free from the shadows.

The good ol U S of A came from the same desire. We rebelled from England to throw off the repressive society and create a world where ordinary folks are free from state sponsored theft, fear and violence. We are an imperfect society, but we have made some progress from our beginnings.

It has taken - and will continue to take - extraordinarily gifted people to illuminate the shadows. The Founding Fathers, Abraham Lincoln, FDR are some of the people we thank for our American experiment. We hope that you, Barry Obama, will join that illustrious group. If you do, then we will be safer.

Shadow powers in the USA have been working diligently to reduce the average person's freedom from want and fear for hundreds of years. Those powers were upset by FDR's creation of Social Security and the other protections from want he installed in the 1930's. They scored a big victory with the repeal of Glass-Stegall in 1999. Now, they are looking for even more such victories.

See the report on ALEC - a group of state legislators and corporate executives which approves laws that are then presented to state legislatures: http://www.slate.com/blogs/weigel/2011/08/05/the_alec_wars_escalate.html

I am ashamed to say that my discipline of economics is used regularly by some economists to provide a justification for national policies that reduce the levels of protection from want and fear for the general population. The economists who practice that version of the discipline should be ashamed. Not only is it destructive of society, it is bad economics. That's a discussion for another day, but there are some implications for today.

People of wealth and power will always have sycophants near them who will further their accumulations of both. It has always been that way and it always will be. Even studying apes shows social interactions reminiscent of some Shakespeare plays.

Perhaps well-intentioned, the Tea Party has been usurped by shadow forces. Tea Partiers are not terrorists; they are worse, for they seek to impose state sponsored fear and want on all of us.

It is charitable to think that they are not aware of the implications of their policies, but rather blinded by economic gobboldy gook.

Tea Partiers may be abusers - at least they are behaving that way. Here's Julie Driscoll explaining how to combat the personality type: "It's interesting, but the one thing abusers respond to is the prospect of being harmed themselves. When faced with a threat, they back down."

See it here: http://www.examiner.com/liberal-in-chicago/republicans-fit-the-profile-of-a-classic-abuser

So, Barry, here's the deal: We gotta threaten and fight them and we gotta threaten big and fight hard. Today we are fighting with politics. It's better than fighting with violence.

Make no mistake, it is a fight and the shadow are well armed.

We are with you Barry, stand up for us.

Your pal,

Gut Check Time

Hey Barry:

Well, times are tough.

It was a hard time negotiating and we got what we could.

You saved the country from a real crisis.

But, now y'all gotta do some more.

It aint enough to just get through.

You sellin us to the Big Money when you do that. Then we is cooked big time.

Here's how to get out of the trap:

Find something Big Money really wants, then repeat this phrase:

"I will veto any spending bill that does not raise tax revenue by four times the amount spent."

"I will veto any spending bill that does not raise tax revenue by four times the amount spent."

"I will veto any spending bill that does not raise tax revenue by four times the amount spent."

"I will veto any spending bill that does not raise tax revenue by four times the amount spent."

"I will veto any spending bill that does not raise tax revenue by four times the amount spent."


And, by the way, you gotta veto about three laws because they won't believe you.

You can't negotiate with hostage takers, you gotta terminate their game. Sometimes you'll lose a hostage. Caint be helped.

It's like they say - 'You can't make an omlet without breaking a few eggs.'

So Barry, break some eggs. It's time.

It's like Harry Truman said: 'If you want a friend in Washington, buy a dog.'

Reps aint gonna cooperate, you gotta force them to do the right thing. The only way to do that is to make any other action they can take more painful to them than doing the right thing for the country. Think about it, y'all gotta make every other course of action more painful to them than what you want them to do.

They have demonstrated that they will not do the right thing for the country. They have not and they will not, unless you, Barry Obama, force them to do it.

We with you, be tough.

Your pal,

Mugged by Big Money

Hey Barry:

Well, it's different, all right.

I mean when you're mugged, it's usually from some poor soul who's desparate and down and out. You can be afraid and sympatehtic at the same time.

But, Barry, we been mugged by Big Money and their dupes - the Tea Party.

It's just the latest mugging. It's a class war just like Syria, Libya and the rest. Different methods, same result: power in a few hands and theft and violence to keep it that way.

So, I'm really p----d.

Whatta we gonna do, Barry?

Whatta we gonna do?

Your pal,

Reich: Ignore Debt Ceiling

Hey Barry:

Robert Reich says 'Just ignore the debt ceiling and continue to issue and redeem T-bills. No big thang.'

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/07/29/EDD01KGFVC.DTL

I defer to him on the legalities, and it sounds very good.

So, Congress can't act. Ignore them and continue business as usual. Some folks sayin y'all can use the 14th Amendment, anyways.

So, go ahead. This is where we really need you to act, Barry.

We know y'all will lose some sleep, but that's why we pay you the big bucks. Hahahahaha. I needed a laugh.

Once the mess is resolved, then we can target some of the ignorant Tea Partiers and elect some folks who know what they're doing.

We with you Barry. Run our country the best way you can.

Your pal,

Still A No-Brainer: Disclose Political Contributions

Hey Barry:

According to the WAPO: [http://www.washingtonpost.com/politics/house-dems-to-obama-require-contractors-to-disclose-political-donations/2011/07/28/gIQAgOg1eI_story.html] the Dems want disclosure of political contributions.

This is a follow up to an earlier posting of the same idea.

What's to think, Barry?

If some corporations like Lockheed, Boeing and even the Acme Road-Runner Fireworks Company, Inc., LLC, LLP, LtD. all want to get some of my tax money from a government contract, they gotta tell us all how much will go to bribing folks to get more money. It should be a part of every contract application, big and small: disclose all payments to anyone conducting business with an elected or empoyed official of the United States Government. Period.

Thought it was already there.

Holy cow, Barry, it's a no-brainer.

Keep on it.

Your pal,

Tea Party Agreements

Hey Tea Party:

Let's have a short talk about the economy of the good ol U S of A.

After all, it's the place we all call home and the place we want to make better.

Now, I know that you folks sincerely want to make the country a better place and we sure agree there.

It'd be just wonderful if we could lower taxes and then get more jobs and also reduce federal spending.

After all, you folks have a good point, namely we just have to get a better handle on our fiscal policy pretty soon or we will be in big trouble.

We can all agree on that.

So, the bottom line here is that we can agree on the broad objectives for the country.

Our only, little disagreement is on how to get there.

There are a couple of things that you folks need to consider pretty seriously in trying to get to the goal we share.

First thing is this: lowering taxes does NOT create more jobs.

I'll grant that there is a small logic there: namely, if people have more money to spend then businesses will hire people to fill the new demand.

Well, even though that sound plausible, it does not work. The record shows that lowering taxes within limits actually reduces the number of jobs. We have proven that several times over the years, most recently with G W Bush policies. I know it does not make sense. It just is.

So, why do some politicians keep on saying that same old thing? The only reason I can figure out is that it gets them votes and campaign contributions. It would be good if politicians did not say things that are not true - well, we can sure agree on that.

So, we can expect politicians to keep on saying that lowering taxes creates jobs - it's our job to see through the BS.

Now, a reasonable person is going to ask this: How is it that keeping taxes high actually creates jobs?

And the answer is something they don't tell you in Econ 1, which I should know about because that's what I teach.

Here's the thing, there are about 70 million people who receive checks from the federal government every month. That's about one out of every 4.4 people [our population is about 311 million today]. If you know ten people, then you know at least two people who depend on the federal check to buy food and rent and medications and so on.

Now if all those folks don't get regular checks, well they won't be able to buy stuff. And, if they can't buy anything, that means that all the businesses they buy stuff from will have to lay off people.

So, by not sending out regular monthly checks, the Federal government will actually KILL about 25% of the jobs in the country.

That would create a very big Depression. It would be social and economic chaos with huge increases in crime and gang activity. Most folks, including you and I, would be afraid to go out of the house after dark.

Now, the second thing you folks need to be very careful about is the idea to stop the federal government from borrowing any more by refusing to raise the debt ceiling of the USA.

That idea seems to make sense - after all if you can’t borrow any more, then you can't spend any more, right?

Trouble is this: we have already spent the money.

Now we have to pay it back.

It's a simple idea.

Pay for what you buy - no brainer there.

But, here's the thing: the only place to get the money is to borrow it.

Of course in theory we could raise taxes to pay for what we spent, but that option is only a theory because of our catatonic political system.

Borrowing is our only option.

Now, I am not saying that is where we want to be.

However, that is where we are.

We agree that we have to fix that.

But, first we have to increase the debt ceiling.

Because, if we don't raise the debt ceiling now, then we will have a great Depression and we will never fix the problem.

If we buy some time, then maybe we can act as real patriots who place country ahead of personal advantage and really fix the problem the way our Founding Fathers expected us to: by political compromises in the best interests of the country.

Here's how the Rolling Stones said it:

'No, you can't always get what you want
You can't always get what you want
You can't always get what you want
And if you try sometime you find
You get what you need'

Well, anyway, if any of you want to explore our common areas, feel free to email me at: mckeever.mp@gmail.com

Your pal,

Budget: Big Money Class War

Hey Barry:

Well, you know it's kinda hard to figure out what's really going on with the debt and budget thing.

All I can do is to watch TV and try not to get angry.

Here's what it looks like from this end: Big Money is pullin the Reps strings so they're negotiating tough, real tough.

Thing is, the Reps and their puppeteers don't give a rosy red rat's a-- for what happens to the country so long as their taxes don't get raised. It's just a game for them. They lie, they steal.

I guess our only hope is that enough voters out here get the message. Then, we can vote out all the Reps and elect some patriotic people. Patriots, you remember them, the folks who put country before money. There are still some around.

But, in the meantime, Ya gotta feel sorry for the Tea Party folks who buy the Rep's hook, line and sinker.

We also gotta get those Tea Party folks out of power before they give even what we have left to the fat cats.

We know one thing: if the country defaults, Big Money will be OK and the rest of us will pay the price with even more $5 per hour jobs, unemployment and hunger.

So, Barry, since it's all politics at this point - get tough. Out tough the Big Money. We with you.

Give an inch so we can stick it to the the Reps down the road. Save the country, fight the Class War.

It's where we are.

Your pal,

JP Morgan Chase: 'Dance forever with the devil'

Hey Barry:

Here's a song about bankers:

'Dance forever with the devil on a cold cell block
But that's what happens when you rape, murder and sell rock'

[Lyrics for Dance With The Devil as interpreted by MrMojoRisin5552]

Alabama's most populous county is deciding whether to file bankruptcy.

Why? They made a deal with JP Morgan Chase. They are paying the price.

Maybe it's time.

Let's put the bankers in a cell.

Your pal,

Tame the Gods, Tame the Politics

Hey Barry;

Holy Cow, Barry.

I'd really like to be optimistic, Barry, maybe there's a chance that we can really solve all the issues.

But, Barry, it don't look real good right now.

Y'all in DC caint get the simplest thing done. It's just a budget and a self imposed borrowing limit. It's just a simple thing. But, it don't seem like we can do it.

And, Barry, we are the ones who can unleash nuclear holocaust on ourselves.

We know we can do that.

But, can we prevent it?

For example, Entergy Corp is refueling its Vermont Yankee plant with more nuclear fuel even though the State of Vermont wants to revoke its operating permit. Read it here: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2011/07/25/national/a052752D25.DTL

So, Barry, here's the question: If we caint even do the simplest thing, how in the Hell are we going to control Mother Nature?

Is this my choice? Whether to die from radiation poisoning or to grow hungry and sick from political malpractice?

Barry, ya gotta tame the Gods and ya gotta tame the politics.

We're counting on you - for the grandchildren, yours to come and mine: Victor, Sydney, Brooke and Carson.

Your pal,

Meet in Paris, September 8-13-11

Hey Barry:

My wife and I visited Paris between September 8 and 13, 2011 for some sightseeing and R & R. Had a great time and took lots of photos.

If any readers in Paris or California are interested in some future friendly, informal economic policy discussion or debate over a glass of wine or cup of coffee, please send me an email to: mckeever.mp@gmail.com

Ciao

Your pal,

Tunisia, IMF and USA - Economic Theory and Practice, Revised

Hey Barry:

Sometimes I just have to talk about economics. I'll try to be clear, but it's important; so, pass it along to the econs if you want.

Pretty sure it is established in fact - not in theory yet, but absolutely in fact - that the NeoCon, Washington Consensus your predecessor used to run our government is dead, dead, dead.

Now just because something is actually dead does not mean that it has no influence. 'S like the old story of the dinosaur which was so big that he was dead for a week before his tail knew about it.

Well, the folks at the IMF are jes another example of the dinosaur's tail. I'll tell you why in a sec.

Back in the day when Keynes created the IMF, it was a pretty good idea. It was a simple idea back then: if a national government ran into a patch of difficulty with negative trade balances - importing more than exporting - then the IMF would provide a short term loan while the government did the necessary things to redress the trade imbalances. After all, if the government did not fix the trade balances, then the markets would correct the situation by devaluing the offending country's currency. And, since economic growth is helped when exchange rates are stable, it made sense to try and stabilize exchange rates.

Things the government could do included raising tariffs, installing quotas and so forth so that the trade imbalance went away.

Well, since then, the NeoCon dogma has held that governments can't fix trade imbalances with any interference in trading patterns. What happens to exchange rates is not considered important. The Holy Grail has become Free Trade. You and I know that Free Trade does not work, but there are lots of places where the facts of reality have not penetrated the cloister of theoretical purity.

Recently, government financial problems have morphed to include problems from too much borrowing. Governments need to borrow because they spend a lot on social problems like pensions, medical care and demand stimulus. Well, the IMF has stepped up and will sometimes lend to those countries as well, with the same requirements from their version of NeoCon Dogma: cut social programs and balance the budget regardless of consequences. It's a bad idea.

One of the places where NeoCon Dogma lives is the economics department of the IMF. They still cling to the Free Trade and Cut Social Programs Dogma like a starving dog to a bone.

Anytime a national government has a trade balance problem or borrowing problem and asks the IMF for help, the IMF requires that the country accept a STRUCTURAL ADJUSTMENT policy in order to get help. Since the IMF is the only place in the world countries can get help, then countries that need help are forced to install IMF policies.

Well, Barry, the problem is that the IMF Structural Adjustment policies are cookie cutter NeoCon dogma. And, since NeoCon dogma is dead, then the IMF continues to require that countries install wrong policies.

Imagine that. It's exactly the same as if George Bush and his crowd are running the economics department of many countries.

To see what that means in practice, consider Tunisia. Here is a country that underwent a people's revolution to overthrow a corrupt and brutal regime and is now trying to establish a democracy that shows respect to the Tunisian people.

But, Barry, wherever they look for help, all they get is more NeoCon dogma.

They get it from the IMF and they get it from the United States. Now, they know that it is wrong advice, but they don't seem to have a choice unless we, the United States of America offers some more realistic advice.

Below is a link to an in depth study of the impact of economic policies on the government and people of Tunisia. The study was written in June by a group of American lawyers who visited Tunisia and met with many of the important groups in Tunisia.

Please show the link to Hillary and to your econs - we need to understand how we can really help the people in all the countries rebelling against corrupt regimes.

Link: http://www.mkeever.com/tunisia2011.pdf

It is The Report of the March 2011 Delegation of Attorneys to Tunisia from National Lawyers Guild (US), Haldane Society of Socialist Lawyers (UK), and Mazlumder (Turkey) Published: June 2011

Your pal,