Martial Law Trumps Coup d'Etat

Barry, My Liege :

On January 20 of this year, this space suggested the possiblity that some elements of the government of the United States might initiate a coup d'etat and replace you as the President with some sort of dictatorship.

This suggestion arose from the observation that your administration has continued the enervation of the Constitution begun in earier administrations. Several specific actions as listed on January 19 have been cited as evidence that Constitutional protections for American citizens have been weakened.

To the extent that any such coup is possible, then we can read your declaration of Martial Law of [EXECUTIVE ORDER NATIONAL DEFENSE RESOURCES PREPAREDNESS, March 16] as a precautionary step against such an action : with the martial law powers apparently enumerated in your order, you will have a deterrant against any untoward action.

For that, I, for one, applaud your action.

However, and it is a big however, such an action may suspend the Constitution for the duration of the order.

This is in spite of the statement on March 19 by Mr Carney that the Order is a 'routine piece of business'. I do not see in the Order a specific method of ensuring that Constitutional protections for citizens are enforced ; I do see a detailed system of support for locating and aprehending any citizen who is judged a 'terrorist'. The methods of determining that definition are left unsatisfactorily vague.

Should the Order survive your administration, it is possible that the United States of America permanently will cease as a Constitutional Republic and permanently become a dictatorship.

Please walk carefully in this minefield, My Liege.

Your faithful servant,

Hope and the National Security of the United States

Barry, My Liege :

As you know this space concerns itself with the National Security of the United States of America.

In this space, I interpret that concept in the broadest sense of the concept as opposed to a narrow focus on armed forces and international conflicts.

In that respect and in broad terms, I agree with your National Security Strategy of May 2010. [http://www.whitehouse.gov/sites/default/files/rss_viewer/national_security_strategy.pdf]

The reason for taking a broad as opposed to a narrow focus is that any nation's military power rests on the economic and social strength of the country. The place of economic performance as the underpinning of military strength was thoroughly explored in THE RISE AND FALL OF THE GREAT POWERS : ECONOMIC CHANGE AND MILITARY CONFLICT FROM 1500 TO 2000, Paul Kennedy, Random House, New York, 1987.

In essence, any nation that builds its military strength at the expense of its population's economic well-being is doomed to failure and decline.

Any nation which attempts to lead other nations must, therefore, create a sound economy and a prosperous populace. And, since we in the United States aspire to lead, we must create a successful economy for our citizens.

In order to further the concept of a broad as opposed to a narrow view of national security, I have systematized the interaction of national government policies and the creation of wealth in any political arrangement into a list of 34 specific economic policies. That list of polices is readily available on the website www.mkeever.com.

Further, that website provides detailed studies of how well or poorly the national governments of more than 45 countries including the United States frame and implement each of the 34 policies and contribute to the economic well-being of their respective populations.

As a result of those analyses performed over several years I have reached some conclusions about our national security ; these conclusions may be of interest to you in your capacity as President.

On the plus side of the ledger, the United States is the pre-eminent military power in the world and has no serious challenger. Our economy is rich and generates vast wealth, some of which supports that military power. We are the world's leader in providing jobs and a road to a secure life for families. As a result we are a magnet for immigration for the populations of many countries. Those immigrants bring their energy and creativity and contribute positively to our wealth and security. Our citizens enjoy the admiration and respect of populations of most countries due to our open and generous nature.

But, Barry My Liege, there are clouds on the horizon which may affect our national security negatively.

The central challenge we face is the danger that our basic social compact - known as the American dream - is breaking before our eyes. That compact has been that the children of any generation will have a better life than the parents. A corollary to that compact is that any person can succeed in building a better life with talent and hard work in America.

That is where our Hope comes from - the idea that we can create a better life for our children. When we have that hope, then we work harder with enthusiasism to make the country a better place. Then is the country more secure. When we don't have that hope, we don't care about the country and it is less secure.

Barry, My Liege, we don't have that hope anymore. We don't think that our children's lives will be better than ours.

Even Mexican illegal immigrants are staying home because the American Dream is no longer available to them; it's called 'net zero' emigration.

That is why the Occupy movement exists and why it will continue. I, for one, hope that their energy will encourage positive changes in our national policies.

There are some specific factors which are breaking our social compact.

First and foremost is the recent creation of a huge gap between the Very Rich and the rest of us. The economic effect of the super rich is that they siphon wealth away from the general population ; that also stifles new business formation and job creation by taking away the purchasing power needed to support Aggregate Demand. Without expanding Aggregate Demand, the economy cannot grow.

Second is the inability of the Federal Government to accomplish anything. Our system of government relies on compromise and negotiation to accomplish public good. At the moment, Republican leaders simply refuse to compromise for the good of the country. We cannot be a world leader unless we can accomplish the business of government.

Third, our security apparatus appears to be out of control and to willfully disregard the wishes of the population. Several laws and practices have compromised the Constitution severely. This has led to dangerous national practices and has contributed to the deterioration of our social compact.

Those are the most important factors damaging our national security at this time. Barry, My Liege, I could go on and comment on more specifics and will be happy to do so at your request.

For now, I will be grateful if you consider these thoughts seriuosly since that may contribute to a stronger United States of America.

Your faithful servant,

Peacetime Martial Law

Barry, My Liege:

On the dark of newsdays, Friday, March 16, your press ofice released an executive order spelling out the mechanics of martial law in the United States.

http://www.whitehouse.gov/the-press-office/2012/03/16/executive-order-national-defense-resources-preparedness

This action appears to be an unforgivable violation of the Constitution and of the basic rights of American citizens.

And, My Liege, you have offered not the slightest explanation of this far-reaching order.

When combined with the various violations of the Constitution the office of President has undertaken under you and your predecessors, it constitutes the installation of a military dictatorship in the United States of America.

There is no threat extant to the United States which justifies this action.

My Liege, in the vernacular: What in the HELL are you doing?

You owe us all an explanation and, perhaps, a Congressional review of this action.

Your faithful servant,

US Spooks Spying on Americans

Barry, My Liege:

This is for CIA Director David Petraeus, but y'all can read it.

Hey Dave:

Well, it's pretty likely that I am on a list somewhere of 'persons of interest'.

I am critical of your government.

That will make the CIA, FBI and NSA suspicious.

So, listen up, spook dudes:

Here's the deal -

I am a natural born American citizen. I can trace my family back to Plymouth, Massachussets in the early 1600's.

Mostly I obey most laws. Sometimes when I am sure there is no traffic coming, I roll through a stop sign. Stuff like that.

I'm kind of a history buff and I like to pay attention to the US Constitution; I can't recite it, but usually I can tell when it's being screwed over.

And you, the CIA, FBI and NSA dudes and dudettes, are doing a big screw over of the US Constitution right now.

That's right, I am calling you out.

Y'all need to prove that your brand new Utah 'data center' [http://rt.com/news/utah-data-center-spy-789/] is NOT a system to spy on all American citizens in direct violation of the Fourth Amendment to the Constitution.

'The Fourth Amendment (Amendment IV) to the United States Constitution is the part of the Bill of Rights which guards against unreasonable searches and seizures, along with requiring any warrant to be judicially sanctioned and supported by probable cause. It was adopted as a response to the abuse of the writ of assistance, which is a type of general search warrant, in the American Revolution. Search and arrest should be limited in scope according to specific information supplied to the issuing court, usually by a law enforcement officer, who has sworn by it.'

[http://en.wikipedia.org/wiki/Fourth_Amendment_to_the_United_States_Constitution]

What is blindingly apparent is that you - the CIA, FBI and NSA - are systematically trampling our Constitutional rights.

So, here's the deal: You spook dudes need to go on the talk shows and tell us exactly what you do and how you do it. Because if you don't do that, then we have to trust you to do the right thing.

And, you know what - NOBODY TRUSTS YOU.

NOBODY.

Now, you're gonna go all:
'We can't tell anybody what we do or how we do it because then Osama bin Laden and Al Queda will know our secrets and they will attack us. So, you must trust us to do our jobs.'

Couple things.

One, OSAMA BIN LADEN IS DEAD.

DEAD.

Read the damn newspapers.

Two, we do NOT trust you.

Three, YOU HAVE NO SECRETS.

We already know that you spy on us and we know pretty much know how you do it. The CIA Director says 'We'll spy on you through your dishwasher.' Read it here: http://www.wired.com/dangerroom/2012/03/petraeus-tv-remote/#more-76086

Four, OK that's more than a couple.

Four, any idiot already knows how to create terror in the USA: Grab a machine gun at any legal gun show and go to a mass transit and blast away.

As far as stopping organized terror from domestic or foreign agents, what stops them is good old fashioned police work.

If you have any evidence that your spying has caught anybody or prevented anything, y'all better produce it - because your escalating covert activities are destroying our trust of the entire government.

Could you have warned of the attack on Gabrielle Giffords? I really doubt it. And, if you can't do that, what good are you?

Fifth, and most importantly: You do NOT have permission to collect data from me. I specifically and categorically refuse permission to collect any personal data without my express and written agreement.

Remember that any effective government rests on the consent of the governed to obey the laws. Any law that is universally ignored has no effect on the population or society.

It's way time to rein in you domestic spooks. You gotta prove you're respecting the Constitution and that you're worth the money. I don't think you are.

I look forward to hearing your justification of your actions.

UPDATE - Mary Schapiro Says 'Fix it.' HR3606

Barry, My Liege:

Securities and Exchange Commission Chairwoman Mary Schapiro has urged Senate leaders to "improve investor protections"in HR3606.

Holy Cow. What do y'all need anyways.

Gimme me some pepper spray and a flight to DC.

Y'all been suckered, hoodwinked and made fools.

Them bankers are at it again.

Y'all bout to pass a bill which will open up the pigpen and let the bankers run wild.

Gotta stop it.

It's gotta be deep sixed - soon, like tomorrow, Monday March 12, 2012.

'Under the guise of creating jobs, the House bill [HR3606] would make it easier for companies to raise money from the public without fulfilling some - or in certain cases virtually all - of the obligations designed to protect investors in public companies. However, there is no requirement or guarantee that companies would use any of the money to hire a single person.

...Columbia Law School Professor John Coffee has nicknamed the bill's crowd-funding provision, which would let private companies raise money from mom-and-pop investors over the Internet, the "boiler room legalization act."'

That's from Kathleen Pender; here's the link: http://www.sfgate.com/columns/networth/

My Liege, we have to do better than this.

Your faithful servant,

American Exceptionalism and Due Process

Barry, My Liege:

The genius of the United States Constitution has always been that it places trust in processes and the whole people instead of placing trust in any particular office or person.

European Kings ruled by Divine Right - whatever the King said was a revelation from God and could not be questioned.

We decided that we don't like that idea in America.

But, like a cockroach infestation, it keeps coming back. If we want to be free of cockroaches, it's not enough to squash the roach you see, really killing a roach infestation requires that you take away their nutrients and water supply. Then they'll die naturally or leave.

And, it appears that our government today has a bad roach infestation.

What the Founding Fathers knew from practical experience is that the wisdom of many people is always greater than the wisdom of any single person, whether or not that person is 'on a mission from God'.

And, our entire Federal government structure is replete with checks and balances so that a single person cannot subvert the will and wisdom of the people.

Those checks and balances are also supposed to apply to the President as well.

But we have seen a great diminshing of those checks and balances on Presidential powers.

It is harming our ability to conduct the business of government.

Any time a single person can dictate any policy, or kill any person legally, then we have reverted to the Divine Right era.

Not only is that totally unjust, it is also not smart.

It is not smart from the simple idea that any one person can, and will be wrong at any time.

We get better decisions when any single person has to secure the approval from another branch of government before implementing any action.

So, Barry, My Liege, you are dumber than the collective wisdom of any group of 20 or more citizens.

I'd say any ten citizens, but I don't want you to feel too bad.

If you're really smart, you'll listen to the people and ignore the theocratic cockroaches around you.

And, even more importantly, you'll take down the Divine Rights your minions keep giving you.

When you do that, you'll earn the right to be called My Pal, instead of My Liege.

Your faithful servant,

Due Process?

Hey Eric:

So, here's the thing.

It is not OK to kill American citizens.

Repeat after me: 'It is NOT OK to whack citizens.'

And, it is YOUR JOB to make sure that does not happen.

You're the one who holds the Constitution intact.

YOU.

If we have no Constitution, then we are just the same as Sharia - no difference.

You are the one person holding the line between the USA and darkness.

YOU.

And, Eric, you don't seem to understand what is going on.

That sounds harsh and I'm sorry if it does. But Eric, the shoe fits, so wear it.

You have described our 'due process' as making sure any killing meets four 'principles.'

So, Eric, where do those 'principles' come from anyway?

But, even more important than the origin of those 'principles' to our existence as a free people is this simple idea: you cannot allow a person holding a gun - that would be your boss Barry My Liege Obama - to decide whether or not the 'principles' are met.

In order for there to be due process under our constitution, then somebody who is NOT involved in the killing process has to approve and certify that the 'principles' are met in fact.

That's why we fought that little war in 1776, for that idea.

Riddle me this Eric:

Why is that so hard to understand?

Constitution Update: Congress proposes Laws to Restore Due Process

Barry My Liege:

Congress is proposing laws to take away your right to detain citizens without due process.

We need these laws My Liege.

Please, please cooperate with Congress on this.

Details here: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2012/03/01/MN701NDUR3.DTL&type=politics

Your faithful servant,

Electioneering 2012

Barry, My Liege:

With all your faults, you are the best hope to strengthen the National Security of the United States for the next four years.

Luckily and coincidentally, the Republicans are demonstrating unbelievable levels of political incompetence. Just about any public policy which has 70% approval from voters is opposed actively by Republicans.

It appears that your re-election is highly likely.

Perhaps you can extend your fortune to all the Democrat candidates this year.

I would suggest running for the Democratic principles shared by most voters and against the Republican principles abhored by most voters.

That way many Democrat candidates can share your popularity.

The opposite strategy is to run against the Republican Presidential candidate. That might be a mistake in a year where there is an opportunity to make gains in Congress and State Legislatures.

While none of this is a surprise, I hope you will consider it all seriously.

Here is a working list of issues on which the parties offer significant differences and on which most voters agree with the Democrat positions:

Job creation policies favoring tax cuts for high income people - voters want to tax high incomes and understand that Rep policies do not create jobs. It never hurts your campaign to remind voters of the recent history of failure for this policy.

Raising incomes for middle class workers - Republican policies of restricting union activity and undermining worker protections hurt middle class workers. Voters understand that Democrats have worker supportive policies. It is not as clear to voters - although indisputable - that raising middle class incomes is essential to a prolonged recovery and maximum job creation.

Birth Control and Planned Parenthood - Most voters want women to have choices about contraception and abortion. There is confusion about Planned Parenthood. Some voters think it supports abortion and don't understand its mission of women's health.

Social Security and Medicare - Voters are angry at Republican positions.

War and security - voters are repulsed by Republican bellicosity and want a mature approach to foreign policy and aggression.

Duplicity and betrayal - Many voters understand that several Republican office holders imposed a radical agenda on their state populations despite making no mention of their intentions while campaigning for office. This can correctly be described as backstabbing, backbiting, betrayal or double-cross. You can call out these office holders without fear voters will object.

Godspeed My Liege.

Your faithful servant.

Bloodthirsty Republicans Say: 'Bomb Iran'

Barry, My Liege:

I watched the Republican Prseidential candidate debate last night.

You know what, it was pretty scary.

There were Romney, Santorum and Gingritch all agreeing that we should bomb Iran.

In fact it was about the only thing they agreed on.

Oh, and they agreed that you are damaging the USA because you don't want to bomb Iran.

These guys are just nuts. Seriously, they are crazy and need to be locked up and medicated. We cannot let any of them near a decision making position.

And, each of them fully intends to harm the national security of the United States beyond repair if elected by starting a war with Iran.

While we may sometime actually be in a war with Iran, it should be with great regret and only after exhausting all other options.

Just the thought of killing untold thousands of Iranian civilians and troops as well as thousands of American boys and girls......well, words fail at the horror.

On top of the death and destruction, it will just about kill our economy. We'll have to borrow the money to pay for it and that will eliminate our ability to borrow in the future.

We pray you find a way, My Liege.

Your faithful servant,

Bankers Run Amok

Barry, My Liege;

In 2009, Iceland's government took over banks to help citizens. 25% of Iceland's population had home loans that were underwater. So, the government forced banks to forgive any loan amount over 110% of the home's current market value.

That was a debt forgiveness of 13% of GDP.

Additionally, the government protected all bank accounts in local currency with deposit insurance and let the owners of bank accounts in foreign currencies lose all value when the banks failed.

Result, Iceland will show nearly 3% GDP growth this year.

In Greece, bankers are in charge.

In fact, based on Iceland's experience, it can be argued that the policies in Greece will make the situation worse and not better.

The situations are not directly comparable, but do present opposite resolution strategies.

The banks which hold Greece's sovereign debt are reducing the debt by a number that is hard to establish in exchange for some cash to make debt service payments. Additionally, those bankers demand that public employment be reduced severely and that pensons be cut while taxes are raised. Youth unemployment is about 50%.

Nothing is included to help people find jobs or to grow the economy. Predictable result: GDP will decline further, there will be more riots and further debt problems.

It is reminiscent of Germany between the two 20th Century wars.

There is a simple lesson, My Liege: Do NOT let bankers run things.

Your faithful servant,

Structural Difficulties with Recovery

Barry, My Liege:

Our recovery has started. That's all good.

But, how far will it go? That's the question.

Justice Louis Brandeis said it best: “We can either have democracy in this country or we can have great wealth concentrated in the hands of a few, but we can’t have both.” –Louis Brandeis, U.S. Supreme Court Justice (1856-1941)

In addition to a biting commentary, here's how that relates to our recovery - as a society we have chosen to have great concentrations of wealth in the hands of a few.

Aside from the obvious corruption that produces, there is an even bigger problem.

The big problem is simply this: Americans don't have any money to spend.

And, if average Americans don't buy anything, then the economy will not recover. It takes demand from consumers to fuel corporate profits - no consumer demand means no profits and further job losses.

Putting aside the rhetoric, there is real evidence that the Amercian economy is losing purchasing power from average citizens.

According to the St. Louis Federal Reserve Bank, the share of total GDP acounted for by wages and salaries - that is where consumer demand comes from - was around 51% between the late 1940's and about 1969 when it peaked at 53.5%.

Since that peak, it has declined steadily until it stands at a low 44% of GDP today.

Here is a graph: http://theeconomiccollapseblog.com/wp-content/uploads/2012/02/Wages-And-Salaries-As-A-Percentage-Of-GDP.png

Although that does not seem a large percentage, it represents a huge drop in consumer purchasing power. At a GDP of about $13 trillion, that 9% drop is a little more than a trillion dollar drop in aggregate demand.

What that means is that any recovery is likely to be shallow until more purchasing power is restored to average Americans.

Now we see why the Brandeis quote is important. It is critical because restoring purchasing power to Americans means raising our wages and salaries.

And, our concentrations of wealth in the hands of a few likely will block any increase in wages and salaries because such an increase will reduce their personal fortunes.

My Liege, there is only one peaceful exit from this situation and into a better future.

That way is to enact legislation which will raise wages and salaries and reduce the concentrations of wealth.

My prediction is that our circumstances will need to become even worse before we can align enough political power to support such changes.

I would that it were not so, My Liege.

Your faithful servant.

Legislative Agenda - 3 Items

Barry, My Liege:

There are a few items which warrant your full attention, despite the election process:

1. Restoration of Chain of Title in Real Estate:

I do not know of a specific act proposed to address this question, but the need for one is urgent. A clear chain of title to real property is required for the formation of wealth in the country. That chain is broken and needs repair. Without the repair, any economic recovery will be slow and problematic.

'More than 80 percent of the residential mortgage loans that have gone into foreclosure in San Francisco contain one or more clear violations of the law, Assessor-Recorder Phil Ting said Wednesday.'

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2012/02/15/MN691N857R.DTL#ixzz1mf2ytEYP

2. Reduction of Nuclear Arsenal:

It is possible to reduce our stockpile of nuclear arms without damaging our national security. This will save enormous sums of money and should be implemented as soon as possible. Beware the Military/Industrial complex which may lobby for retention of high dollar contracts and a large nuclear stockpile.


3. Bankruptcy Equity between Individuals and Corporations:

Representative Earl Blumenauer, (D, OR) offers a bill to provide similar treatment for both individuals and corporations in the Bankruptcy process which is currently tilted in favor of corporations.

A no-brainer, we should pass this one.

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2012/02/16/EDKF1N8M4N.DTL#ixzz1mf4LooFc

Thank you for your consideration, my Liege.

Your faithful servant,

Cops Down 40%, Vigilantes Shoot Kids - Is Detroit Our Future?

Barry, My Liege:

We all know the future MAY be bleak; Detroit is a case study.

Officers down by 40%, self-defense homicides up by 79%.

Read it here: http://www.thedaily.com/page/2012/02/05/020512-news-detroit-vigilantes-1-5/

We don't want that My Liege. We don't want Detroit in our neighborhood.

We hope you can help us out, My Liege.

Your faithful servant,

Super PAC

Barry My Liege:

Pay no never mind to the folks complaining about your decision to use a PAC to raise campaign funds.

Ever since the Supremes changed the law so that foreign and domestic corporations can buy any election they want, it is just something you have to do.

But, My Liege, remember the old adage: If you give to my campaign before I am nominated, you might get a job in my administration, but if you give after I am nominated, you'll get good government.

You are already nominated, so you don't have to give up anything for the money.

So, My Liege, please avoid the appearance of impropriety - don't give away anything.

Your faithful servant,

Mercy for Manning

Barry, My Liege:

It is a nagging question: Exactly what is it that you want from Bradley Manning?

He has been held for almost a year in apparent violation of the 8th Amendment to the Constitution which forbids cruel and inhumane punishment. He has not been convicted of a crime nor faced a trial in that time.

His treatment can reasonably be classified as torture. He is subjected to detention conditions likely to create long-term psychological injuries. [See Glen Greenwald at: http://www.salon.com/2010/12/15/manning_3/]

My Liege, what can he possibly give you that he has not already given?

A strong sovereign shows his strength by the quality of his mercy, My Liege. Perhaps it is time to show mercy to Bradley Manning.

His crime, if convicted, may have derived from a patriotic act of conscience. It could have been a traitorous act as well. Those qualities are not necessarily inconsistent.

Or, maybe it was an act of a confused kid who made a mistake.

Is it more merciful to keep him in inhumane conditions in violation of the Constitution than it is to convict him and hang him or release him?

Consider, My Liege, the words of Ray Charles from 'America the Beautiful':

****************************************

'Oh beautiful, for heroes proved,

In liberating strife,

Who more than self, our country loved,

And mercy more than life,

America, America, may God thy gold refine,

Till all success be nobleness

And every gain devined.'

*****************************************

Mercy, My Liege, Mercy.

Your faithful servant,

Counterbalancing Free Market Fog

Barry, My Liege:

It seems an appropriate time to discuss the purpose of this column: the philosophy and method which underlie my comments in this space.

My intent here, My Liege, is to produce an alternate structure of ideas which will lead to conclusions opposite to the current fog of ideas. Since this different structure is opposed to the current Free Market Fog of ideas, on occasion this fundamental, basal structure of ideas has to be presented in a dramatic manner in order to produce any reaction. On other occasions, parts of that structure can be presented more or less straightforwardly.

Be aware that some of the ideas herein are extrapolations from current real world events while other ideas are designed to create a response in folks who have endured the Free Market Fog of rhetoric for many years.

This space does not purport to present scientific, evidence based discussions of real world events; it is instead a political discussion of ideas which affect the national security of the United States of America.

In the USA today there is a constant outpouring of a Free Market Fog of wrong ideas about how the world works and the best methods to secure peace and stability. But, the current discussion is heavily one sided - much of the political discourse leads to a predetermined political conclusion.

And, My Liege, that conclusion is RUBBISH.

Make no mistake, much of the received wisdom in the United States about how the economy works and the proper role of government in the economy is demonstrably incorrect inasmuch as it produces real world results opposite to what it predicts.

The purpose of this space is to provide a counter weight of ideas based on economic theory so that the received, conventional wisdom has another challenger to its hegemony. While there are such counterweights provided already, the field is vastly under-populated as compared to the Free Market Fog of ideas we see today.

Even more disturbing to me personally is that my discipline of economics provides much of the rhetoric which supports these WRONG ideas.

Here is a specific example of how economic thought is distorted for political ends: traditional economic thought proposes the idea that the laws of supply and demand, when they are left to operate without interference, will provide the best outcome for society. Buyers will buy the quantity of products they want at the price they want to pay and suppliers will supply the quantity of products they wish to sell at that price. With this principle, the Invisible Hand ensures that both parties receive the maximum benefit possible and society at large is well served.

This idea is used to support an economic theory where any action of government which affects the laws of supply and demand reduces the welfare of society. Therefore, under this misguided philosophy, that government is best which governs least.

My Liege, you may have heard that canard before.

John Maynard Keynes effectively refuted that idea in the 1930's with a detailed critique of how that economic philosophy gave us the Great Depression and intolerable levels of human misery.

This space is inadequate to reproduce Keynes' critiques in detail, but there is one criticism which bears repeating here.

That is this: When markets are left to their own devices with little or no controls, they inevitably produce winners and losers. The winners then change the rules so that the laws of supply and demand can no longer operate effectively and the losers are destroyed.

In effect then, any call for free markets with no regulation becomes a smokescreen for allowing the winners to rewrite the rules and ensuring that the losers stay poor.

And that is precisely the fog of ideas which permeates American thinking about the proper role of government.

This fog is perpetuated by a loosely organized band of pundits and politicians who, wittingly or not, serve the interests of the moneyed elite and harm the interests of the general population.

My positioning among all the counter balancing efforts is that this particular effort is rooted in economic theory and that many of the alternate ideas presented in this space will resonate with people's perceptions of everyday experience: they will just 'feel' right because they correspond closely to reality. The Free Market Fog, on the other hand, produces ideas which resonate primarily because they are familiar and for those who benefit monetarily from them.

My goal is to stand against the volume of intellectual, Free Market Fog rhetoric to the best of my ability; by so standing, perhaps I can help change the direction of public policy toward more realistic policies and more even handed results.

I pray that you will find these musings helpful.

Your faithful servant,

Constitution and Dissent

Barry, My Liege:

One question for our time is this: How can the USA avoid sliding toward societal polarization with extremes of poverty and wealth concentration?

Other countries have done it successfully in the past. That gives rise to the hope that we can also.

Both Sweden and Norway had polarized societies at the turn of the 20th Century with massive poverty and a rich class that controlled the country.

In both countries, workers formed unions and cooperatives that called general strikes and challenged the existing system.

Troops were called out and the strikes and cooperatives were broken. But, the movement toward equality continued on a non-violent path and ultimately won power away from the one percent. Here's how George Lakey says it in 'wagingnonviolence.org': "Not until three decades later could the Conservatives return to a governing coalition, having by then accepted the new rules of the game, including a high degree of public ownership of the means of production, extremely progressive taxation, strong business regulation for the public good and the virtual abolition of poverty."

My Liege, you may be wondering what this has to do with the USA and our Constitution. Put very simply, the Swedish and Norwegian governments did not have anti-terrorist secret police in place at that time. There was no procedure to arrest, torture or kill strike leaders in secret. Any police or military action had to be public.

The inability of both governments to arrest and detain or kill union leaders in secret allowed unions to continue striking and pressing for equality.

If we come forward to the USA of today, we find a Constitution which has been compromised in response to terror threats to the point that procedural protections against criminal or violent acts by government agents acting in secret appear broken. Plus, we have a vast array of technology directed toward identifying terrorists and troublemakers.

My personal experience with No-Fly lists and terrorist screening databases involves a very close relative who is a business man and father and a completely upstanding citizen. Because of business obligations, he travels frequently with short notice and an undetermined return schedule. He is routinely selected for extra screening and has missed flights because he is on some list. He cannot find out which list or why he is there, nor can he find a procedure to remove his name from that mysterious list.

My Liege, I am pretty sure that both the Swedish and Norwegian governments of the time would have used those extra legal powers to crush dissent, if the technology and the laws were available.

Here is the conundrum we face in the United States: We need protest movements to continue pressing for more equality, but we have police and legal structures in place with the ability to neutralize those protest movements.

Forgive me, My Liege, if I am restating the obvious. But, the problem is compelling.

Of course, I would like to point a way out of the maze and will try to do so.

Let us recognize this fact: Some rich and powerful among us do not want change for they fear losing power. That fear will likely compel them to press for suppression of dissent. If they succeed in mobilizing government resources against protest, the USA will likely continue its slide toward polarization.

The remedy is simple, My Liege. This is the remedy: Install a new procedure or Court that must review and approve any action taken to monitor, detain, arrest or kill any American citizen involved in dissent or protest. Such a procedure is likely to be a review court composed of elected or appointed experienced legal scholars and judges.

The intention of such a Court is to prevent monied powers from perverting secret police powers and using them to suppress dissent and the peaceful seeking of redress of grievances.

My hope, My Liege, is that such a procedure can conform to the spirit of the Constitution which trusts no man, but trusts only processes.

With such a process in place, then we will have the ability to secure a more just society. Of course, perhaps such a process already exists and I am simply unaware of it.

Your faithful servant,

Rearing CEO Criminals

Barry, My Liege:

This is a true story which illustrates one theory of how sociopathic or criminal behavior is created.

An acquaintance teaches elementary school at an exclusive private school. Recently she had occasion to tell a child of maybe six or seven years that he could not do something he wanted to do.

He reacted very badly and proceeded to call his mother on his cell phone and complain to her that the teacher told him 'No'.

That day, the mother drove to see the principal to complain.

The principal told the teacher that if she did that one more time she would be fired.

In an under privileged community, the child would probably end in jail.

But, where will he end in a privileged community?

Your faithful servant,

Perp Walk Paulson

Barry My Liege:

It was a good speech. Some polls show that 91% of us liked the speech.

You have captured our mood; we are happy for that.

I suppose that it was necessary to give a surface treatment to your points since you wanted to include a lot of ideas.

Some may have hoped for a more practical approach where you might have said that you can take executive action in this instance and here is the action you have taken, while other items require Congress to act.

After all, my liege, we do not know all the ins and outs of our political process.

We are hoping that you will implement as many ideas as possible.

One of the actions I especially liked is the action to investigate and prosecute bankers for their crimes during the recent financial meltdown.

This action tells us that you will pursue equal justice for all and not let the Big Money Bastards avoid punishment or jail time.

Here is my suggestion for the first prosecution: Henry Paulson was former CEO of Goldman Sachs and acting United States Secretary of the Treasury when he went before Congress and lied under oath by telling Congress that both Fannie Mae and Freddie Mac were 'well capitalized'.

At that time he knew that both were under serious pressure and would likely fail. We know he knew because shortly after his testimony he held a private meeting composed of 20 hedge fund managers - the Big Money Bastards - and told them that both institutions would fail and be taken over by the Government, wiping out the share value held by private investors.

This is corruption at the highest level of the government. We cannot ignore it.

If you bring Paulson to justice, we will have a lot more faith in your commitment to fairness.

And, bankers will watch their step more carefully in the future.

That would be good for the country.

Your faithful servant,

USA Coup d'Etat 2014

Barry, My Liege:

We can look ahead to 2014.

It is NOT a pretty picture.

You are in a trap, Barry. A big trap.

Here's the trap: Your administration has suspended the Constitution.

This opens the way for a Corporate/Military coup.

Here's the danger: They will come for you and place you under house arrest with your family.

It will be claimed that you have suspended the rights of citizens and the population is clearly in a revolutionary mood.

Therefore, a 'temporary' military dictatorship will be installed to protect the country from your actions.

In case you think this is too far fetched, it is exactly what happened to Gorbachev in Russia. Yeltsin had him placed under house arrest while a dictatorship was installed.

Here's how this comes about: You and the Democrats win a huge plurality in 2012. With that mandate you and the party proceed to address the imbalances in our society.

These actions will infuriate the monied interests and create an emotional imperative within them for action to preserve the status quo.

If you don't try to correct the financial and social imbalances, our country is doomed to a slow decline and third world societal structure.

If you do try to correct the financial and social imbalances, the Corporate/Military power structure will arrest you and install a dictatorship. Today they are pushing the destruction of the Constitution so that tomorrow there will be both an excuse for a coup and a structure to accomplish the coup.

You'll be arrested if you do and villified if you don't correct the imbalances. It's Hobson's Choice and a rock and a hard place, Barry - it's a 50/50 shot.

Here's the only way to avoid this problem: Reverse all the un-Constitutional actions taken recently AND eliminate the Crony Fascism that currently exists between big business executives and top government jobs. But, my liege, these are long shots with uncertain chances of success.

Be careful out there.

Your faithful subject,

US Constitution Dead

Hey Barry:

You know what? I am going to have to give you a very hard time, Barry. And, Barry, I don't care what Mario Puzo said: it is PERSONAL - it's not just business.

Maybe you are doing all this real bad stuff on purpose and maybe you are doing it by accident. And, maybe some bad folks on your staff are pushing all this.

Here's the clear statement, Barry. You took our freedom from us. You took away the Constitution our Founding Fathers died for.

It does not matter who in your government took it or why they took it.

They are bad and they are traitorous and they are cowardly. The taking of these steps constitutes the overthrow of the Constitution of the United States of America.

As an educated man, you surely know that the genius of the Constitution is that it does not trust any man - it trusts only laws and processes.

Only through established processes and laws can Americans be free. Without those processes and laws, then we are simply subjects of a King and slaves to his whims. We are not citizens.

The Founding Fathers knew first hand what it is like to live under a regime with no laws and no controls. They chose to die fighting rather than to live under that system.

And, Barry, your administration has completed the installation of an arbitrary and potentially despotic Kingship in the USA.

You have made us into slaves subject to your whims.

It does not matter at all that these actions were taken in the name of protecting us from terrorists.

The taking of these actions has given victory to the terrorists. And Barry, you did it.

The specific actions you have taken were described by George Washington University Professor Jonathan Turley in a recent article in the Washington post titled “10 reasons the U.S. is no longer the land of the free”.

Here is a list of the actions as taken from a piece by Boris Volkhonsky in the Voice of Russia; read it here: http://english.ruvr.ru/2012/01/19/64179378.html

' 1. Assassination of U.S. citizens – “President Obama has claimed, as President George W. Bush did before him, the right to order the killing of any citizen considered a terrorist or an abettor of terrorism.” He also notes that countries such as Nigeria, Iran and Syria have been routinely criticized by the U.S. for extrajudicial killings of enemies of the state.

2. Indefinite detention – under the National Defense Authorization Act, terrorism suspects are to be held by the military; the president also has the authority to indefinitely detain citizens accused of terrorism. Here the U.S. finds itself in the company of often-criticized Cambodia. Even no less criticized China has recently codified a more limited detention law for its citizens.

3. Arbitrary justice– the president now decides whether a person will receive a trial in the federal courts or in a military tribunal (the way it is done in China and Egypt).

4. Warrantless searches – the president may order warrantless surveillance, including a new capability to force companies and organizations to turn over information on citizens’ finances, communications and associations (similar laws exist in Saudi Arabia and Pakistan).

5. Secret evidence – the government routinely uses secret evidence to detain individuals and employs secret evidence in federal and military courts.

6. War crimes– in 2009, Obama administration said that it would not allow CIA employees to be investigated or prosecuted for such actions as waterboarding terrorism suspects which amounts to torture and crimes against humanity. Other countries that resist independent investigations of similar war crimes include Iran, Syria and China.

7. Secret court – the government has increased its use of the secret Foreign Intelligence Surveillance Court and the administration has asserted the right to ignore congressional limits on such surveillance. Similar Pakistan surveillance under the unchecked powers of the military or intelligence services exists in Pakistan.

8. Immunity from judicial review – the Obama administration has successfully pushed for immunity for companies that assist in warrantless surveillance of citizens, blocking the ability of citizens to challenge the violation of privacy (similar practice is common for China).

9. Continual monitoring of citizens – the Obama administration has the right to monitor every move of targeted citizens without securing any court order or review. Similar massive surveillance systems exist in Saudi Arabia and Cuba.

10. Extraordinary renditions – the government now has the ability to transfer both citizens and noncitizens to another country under a system known as extraordinary rendition, which has been denounced as using other countries, such as Syria, Saudi Arabia, Egypt and Pakistan, to torture suspects.'

The laws which you have enacted give absolute life and death power to the President of the United States over any citizen for any reason.

While I might trust you, I surely do not trust a Newt Gingrich or a Rick Perry or a Mitt Romney with that power.

But, it is not about trust. It is about laws and freedom.

I am willing to die fighting to protect my freedom from the arbitrary power of you, Barry Obama.

I do not support a country where a private company can corrupt a government so that a war is fought to make that private company richer.

Under your laws, that can happen with no challenge. And, if I speak out, you can have me killed in order to protect those profits.

It is NOT acceptable and it IS worth fighting and dying to overthrow, just as we did in 1776.

Your subject, and not liking it.

Bankers Must Take a Haircut UPDATE 2.20 HAIRCUTS WORK

Barry, My Liege:

Hhere's a link to a Bloomberg story about Iceland - their banks forgave debt and the country is growing.

Good news - it CAN be done:
http://www.businessweek.com/news/2012-02-20/icelandic-anger-brings-debt-forgiveness-in-best-recovery-story.html

Your faithful servant.



Hey Barry:




In a copyrighted article, economist Michael Hudson suggests a new economic model to correct misperceptions about current trends which can arise from using older models.

Here is his first paragraph:

'Now that the Bubble Economy has given way to debt deflation, the world is discovering the shortcoming of models that fail to explain how most credit creation today (1) inflates asset prices without raising commodity prices or wage levels, and (2) creates a reciprocal flow of debt service. This debt service tends to rise as a proportion of personal and business income, outgrowing the ability of debtors to pay—leading to (3) debt deflation. The only way to prevent this phenomenon from plunging economies into depression and keeping them there is (4) to write down the debts so as to free revenue for spending once again on goods and services.'

© Michael Hudson, Oct. 27, 2011

The entire article is available here:
http://discussion.worldeconomicsassociation.org/wp-content/uploads/Hudson-Model.pdf

This is interesting beyond academic economics inasmuch as he draws the conclusion that creditors will have to renegotiate debt levels in order for the world's economies to find growth.

At this moment Greece's creditors are hedging on previous promises to reduce debt levels to manageable amounts. Such a reduction is necessary to prevent further economic and social deterioration in Greece and the entire EU by contagion.

One of Mr. Hudson's points is that most debt is used to purchase previously produced assets like houses and office buildings; so, taking on that debt does not result in any new production added to the GDP.

The resulting debt service simply reduces cash flow available to purchase new products. This is another reduction in Aggregate Demand.

Stated as clearly as possible, unless creditors voluntarily renegotiate debt levels to manageable debt service payment for nations, businesses and individuals, the economy will likely enter a further recession.

It is likely that most citizens and nations will find current debt levels unacceptable and will default, unless some significant adjustments are made to their debt.

Your pal,

Vulture Capitalist Barry Wynn

My Dear Esteemed Mr. Barry Wynn:

It has come to my attention that your peace of mind has been disturbed. Words cannot express how badly I feel that you have been offended.

'Investment fund executive and top GOP donor Barry Wynn "I've been fighting for this cause most of my life," Wynn said. "It's like fingernails on the chalkboard. It just kind of irritated you [sic] to hear those kind of attacks." '

Here is the quote from NBC:[http://www.nbcdfw.com/news/politics/Perry-Loses-Key-SC-Backer-After-Vulture-Capitalist-Attack-on-Romney-137185428.html].

Mr. Wynn, on behalf of everyone, we do sincerely understand how distressing that can be.

Please understand that it is very difficult to find just exactly the right words to describe your behavior and our situation - those magic words that can describe the truth of a situation and not give offense to anyone.

After all, these can be emotional times for some people - what with losing a job and family home, losing a retirement program, losing medical insurance, living on the streets at the same time as seeing the fortunate few like you grow richer and richer. We don't expect you to forgive us our questionable behavior, after all, if you are slightly disturbed it may throw off your concentration and you would be unable to create all those jobs you promised us.

If you can find it in your heart to allow us a little patience, we will work very hard to ensure that your peace of mind is not disturbed any further.

VULTURE CAPITALIST

Perhaps VULTURE CAPITALIST was not the correct phrase. After all, a vulture is a disgusting creature who feeds voraciously on dead carcasses; that is surely an unsettling image.

In order to avoid any possible offense, one is led to look for alternatives to describe a situation where the feeding frenzy of a few disgusting animals makes them well fed while the rest go hungry.

SOCIOPATH

Some other observers have chosen the word SOCIOPATH to describe a behavior where self interest without empathy or consideration of others is the sole motivating force. This is the word used by Thom Hartman in his article 'Profiling CEOs and Their Sociopathic Paychecks', which you can read here: http://www.commondreams.org/view/2009/07/27

Perhaps SOCIOPATHIC BEHAVIOR might suit your refined sensibilities better then VULTURE CAPITALIST?

But of course, this is also a troublesome phrase. Might I suggest that you can actually answer a quiz to see if the phrase is the correct one? You can see the quiz here: http://www.vodahost.com/web-hosting-sociopath-test-sociopath-definition.html/

PSYCHOPATH

Another possiblity is the word PSYCHOPATH as used by Alan Deutschman in his article 'Is Your Boss a Psychopath?', which you can read here: http://www.fastcompany.com/magazine/96/open_boss.html

RICH C...SUCKERS

Perhaps we could approach a comedic perspective like that of comedian George Carlin; after all a little laugh is good for us all. And, George Carlin is dead, so nothing he said should bother anyone.

This is his funny, funny take on the situation: 'forget the politicians ... these rich c...suckers [like Willard Romney] don't give a f... about you.'

You can even watch a video where he creates hilarity here: http://www.youtube.com/watch?feature=player_embedded&v=acLW1vFO-2Q

In conclusion Mr. Wynn, I won't offer an apology. After all, we are just trying to speak the truth. But we do understand that the truth can be a difficult cross to bear.

So we will proceed to deal with our concerns and you with yours and perhaps our paths may cross someday. If they do, then perhaps you may understand a little more about our less than courteous behavior at that time.

Sincerely yours,

Will the USA Collapse?

Hey Barry:

The biggest question we face today is whether the USA will collapse as a society. If we collapse, it will not be pretty, Barry. We really do not want to collapse.

Now, there are some folks who would welcome such a collapse. They view any chaos as an opportunity to make money.

These are the folks who made lots of money in Iraq and Russia during the chaos there. They are bad people, Barry. We don't want to help them in any way.

According to a recent TV show on the collapse of the Egyptian Old Kingdom society in 2200 BC, there was sudden famine and starvation on a large scale. Starving families migrated to the only place there was food, Luxor, and begged the governor for food. They also sold their precious possessions for a measure of grain. When the food available was not sufficient for the hordes of starving people, the starving 'ate their children.' I think that phrase 'ate their children' was meant literally.

Regardless, it is an object lesson in catastrophe that we do not want to explore.

In his excellent book 'THE COLLAPSE OF COMPLEX SOCIETIES', Cambridge University Press 1988, Joseph A. Tainter describes many such collapses, among them: Mesopotamia, the Egyptian Old Kingdom referred to above, the Hittite Empire, Minoa, Mycenaean Civilization, Western Roman Empire and so forth for many civilizations studied.

Of interest is the reason the Egyptian Old Kingdom collapsed. Archeologists and geologists have identified the cause of that collapse as something the Old Kingdom was unable to counteract, even though they knew the cause and were able to literally see its effects.

Egyptian civilizations since the desertification of the Saharah have depended on the yearly flooding of the Nile River to bring both water and the precious black mud to the Nile Delta. The black mud, sediment from up river in modern Ethiopia, provides the rich soil that nourishes crops. Without that annual flood of rich soil, crops do not grow and people starve.

With the annual flood, the Old Kingdom built a complex society with plenty and well being for all its citizens. That society also built the Pyramids we view today.

About 2200 BC there was an approximate 100 year interruption in rainfall. No rain fell in the Nile watershed. Geologists know this because their study of sediments from that time shows only wind blown, fine sand in all the streams and canals the Egyptians built instead of the mud geologists find from water filled courses both before and after that time.

Without water and annual flooding, Egyptian society collapsed with the dire consequences listed above.

This is interesting in the United States of America in the 21st Century AD because we face a similar drought, Barry.

Our Nile Flood has always been the Aggregate Demand of consumers with the ability to spend money beyond food and shelter. That is the force that has lifted our country above others in the world.

Consumer demand is water to the economy: without that water, nothing will grow - all will die.

And, we are witnessing the drying up of Aggregate Demand in our economy today. The water that lifts all boats is drying up and about gone.

If that demand goes away for any length of time, the USA will collapse.

While we don't know exactly why the rain stopped in the Nile basin in 2200 BC, we know exactly why Aggregate Demand in the USA is stagnant or declining. It is stopping because of the accumulation of wealth and income into a few hands and the simultaneous reduction of wealth and income accruing to everyone else.

If we as a society can reverse this trend, perhaps we can avoid the collapse. But if we do not reverse this trend, a societal collapse becomes highly probable.

As previously mentioned, I have identified the government policies which can reverse that trend; you can read them here: http://www.mkeever.com/owsplaneleven.doc

Your pal,

Time to Socialize Medical Insurance

Hey Barry:

Here's evidence that your Healthcare reform did not go far enough: many of the nation's private practice doctors are going broke, especially in rural areas. Doctors are in debt and leaving their practices to take paying jobs.

Private insurance payments are declining and medicare reimbursements are being reduced.

It unlikely that reasonable standards of medical care can continue without socializing the entire system and eliminating private, for-profit insurance.

Read Parija Kavilanz in CNNMoney here: http://money.cnn.com/2012/01/05/smallbusiness/doctors_broke/?npt=NP1

It has been said that a wise leader knows when to follow; in this case, it is time to follow reality, Barry.

Otherwise we will become a truly Third World country.

You pal,

Cordray Appointed

Hey Barry:

Good on you for appointing Consumer Financial Protection Agency chief Richard Cordray.

We need the agency to perform.

And, also, why not think about an alternative political strategy for him?

How about this: Have him announce 20 or 30 actions that will PO the Reps as soon as he is in office - first day.

He could start with Payday lenders who prey on poor folks: http://www.sfgate.com/columns/networth/ [January 5, 2012]

That will get the Reps panties in a bunch and maybe take some attention from you.

It will also let voters see you are serious about protecting the middle class.

Of course, Cordray may well become a sacrifical lamb, but it's for a good cause.

Ooooh, I love thinking dirty.

Your pal,

Time for A Gut Check

OK Barry:

Let's see how brave you really are.

If you're brave and you can really deal with the future of our country, then listen to Chris Hedges' interview: "Brace Yourself! The American Empire Is Over & The Descent Is Going To Be Horrifying!"

Here's the link: http://www.youtube.com/watch?v=7zotYU21qcU&feature=g-wl&context=G2a8c2c7AWAAAAAAABAA

We CAN find a way out, but it will take some real guts, Barry.

We need to take it apart bolt by bolt and screw by screw.

It's a big job.

No surprise here, Barry.

Funny thing is that Hedges says all the same stuff I have been saying.

It's a three hour interview, so give yourself enough time.

We really need you to hear this, Barry. Things are NOT OK.

Your pal,

DC Crony Fascism

Hey Barry:

Just in case you want to know why we don't trust folks in the Beltway, read the Venn Diagrams drawn by Larry Lessig here: http://www.techdirt.com/articles/20111221/17561617164/mapping-out-revolving-door-between-govt-big-business-venn-diagrams.shtml

These diagrams offer clear and convincing evidence of DC revolving doors between the Big Money Bastards and Federal Government top jobs.

We have a crony government, plain and simple.

And, it costs the country a lot.

Cynthia Duncan in her book 'Worlds Apart: Why Poverty Persists in Rural America', [by Cynthia M. Duncan, Yale University Press; New Ed edition (August 11, 2000); ISBN-10: 0300084560; ISBN-13: 978-0300084566] pretty much proved that reserving jobs for cronies pulls down any society.

And Barry, that is exactly what we have here - jobs for cronies.

For example, take a look at a few Goldman Sachs folks: Robert Rubin, John Corzine, Henry Paulson, Rahm Emanuel, Robert Hormats, Stephen Friedman, Diana Farrell, Philip Murphy, Mark Patterson, Adam Storch, Alexander Lasry, Sonal Shah, Gregroy Craig and Gary Gensler.

All these folks are former Goldman Sachs people who have held top government jobs. You can see the same pattern in Big Oil, Comcast, GE, media, Monsanto and so forth.

Here is the smoking gun of how our country is run for the benefit of a few at the expense of the many.

It's bad enough that the few profit at our expense, but what's even worse is that our country would be much better off if we changed that pattern.

We need to open up government service to the best and brightest and not reserve it for the well connected. That's the only way out of this mess, Barry.

This is your challenge Barry, fix this one or we say a final good bye to the America we love.

Your pal,

Crystal Balling 2012

Hey Barry:

It's a natural time to look ahead to see what's on the horizon for 2012.

EUROPE AND THE WORLD

First, there's a high probability of another recession in Europe.

The European debt situation seems to be beyond the capacity of the EU to solve without severe social consequences, regardless of statements to the contrary. Most European economists predict a deeper recession in 2012. Read it here: http://www.thisismoney.co.uk/money/markets/article-2080188/Economists-estimate-30-40-chance-break-euro-2012.html

Additionally, a recession there has the potential to break up the Eurozone. Previous experience has demonstrated that such currency breakdowns have negative consequences. You can read Professor Jayanth R. Varma's comments on several histories here: http://www.iimahd.ernet.in/~jrvarma/blog/index.cgi/Y2011/currency-breakups.html

In the European situation, standard Keynesian policy calls for national government macro intervention to prevent extreme social misery and unrest.

But, the Euro governments appear to be in thrall to bankers; they are installing austerity measures and raising taxes at a time of recession.

Such a course will probably lead to deepening social malaise; it also increases the likelihood of an Arab Spring or Occupy Wall Street movement growing larger and perhaps becoming more violent. Consider the current situations in Syria and Yemen; this may emigrate to Greece.

A broader theme for 2012 is that our worldwide political system appears to be incapable of managing a strong economic crisis. This may be due to the influence of monied interests on the various legislatures.

Part of the cause of our current malaise has been that credit has been so readily available and so cheap that the market system has been distorted. Governments and consumers have come to rely on low interest and readily available capital. Now that GDP growth is slowing down, the accumulated debt is becoming onerous for governments and consumers.

Thus we have a worldwide imbalance where there is too little aggregate demand and too much aggregate supply. It is worthwhile to consider policies which will increase demand and reduce income and wealth disparities. Continuing our current policy of rigid adherence to today's political system in Europe and the USA will only serve to make our governments more vulnerable to an ultimate break up. A better strategy will be to install more flexible policies which address the imbalances we see today. I have proposed just such a policy constellation and it is available here: http://www.mkeever.com/owsplaneleven.doc

UNITED STATES OF AMERICA

A European recession carries the risk of a US recession. Current history shows that the developed countries are intertwined economically - what happens there comes here. This is despite the fact that United States fiscal and monetary policies appear to be ameliorating our recession.

Our FED has been contributing massively to this problem by continuing its quantitative easing and zero bound interest rate policies. At the same time, wages of working people are shrinking while capital formation is increasing.

An example of our inability to address the problem is the recent NDAA where Congress gave our military the right to detain United States citizens without our Constitutional protections. That was precisely the wrong thing to do. Another example is our government deadlock over raising the debt ceiling.

Concerning US elections, it is this observer's opinion that the US electorate is looking for some solutions to the problems outlined above. The Republicans have proven that they are incapable of understanding the situation, much less actually solving the problems. The electorate is looking for candidates who demonstrate they can lead us to a better future.

It is an opportunity for Democrats and for you, Barry Obama. But, at this time I believe the electorate has not seen an adequate response from either the Democratic Party or the President's campaign. The hope is that such a response will be forthcoming in the national campaigns.

Happy New Year!

Your pal,

Economic Policy Analyses Published Today

The Mckeever Institute of Economic Policy Analysis [MIEPA] is pleased to announce the publication on its website [www.mkeever.com] of 22 separate economic analyses of ten individual countries.

Each economic policy analysis is conducted by a native of the country studied in order to ensure as much accuracy as possible. The studies are designed to illuminate those policies which affect economic growth and job creation. Both English language and native language sources are utilized. Each analysis is directly supervised by Mike P. McKeever who has supervised more than 200 previous analyses, although the conclusions and analyses are the work and responsibility of each individual author.

The countries analyzed are listed below in alphabetical order together with the name of each author and a link to the specific country study:

LIST OF ECONOMIC POLICY ANALYSES PUBLISHED DECEMBER 27, 2011 BY MIEPA [www.mkeever.com]:

CHINA, two separate studies by a student who is advised to remain anonymous and Tianyu Ma: http://www.mkeever.com/china.html

FRANCE, a study by Guillaume LaFarge: http://www.mkeever.com/france.html

HONG KONG, a study by Po Ting Wong: http://www.mkeever.com/hongkong.html

GEORGIA, a study by Ia Inadze: http://www.mkeever.com/georgia.html

NEPAL, a study by Manjil Shrestha: http://www.mkeever.com/nepal.html

PHILIPPINES, two separate studies by Sy Kimberly S. Lato and Elaine J. Linsangan: http://www.mkeever.com/philippines.html

RUSSIA, four separate studies by Irina Khakimova, Kristina Zeltser, Alex Shkurko and Zula Hadaeva: http://www.mkeever.com/russia.html

SWITZERLAND, a study by Sandra Joller: http://www.mkeever.com/switzerland.html

UKRAINE, a study by Margaryta Sysenko: http://www.mkeever.com/ukraine.html

UNITED STATES OF AMERICA, eight separate studies by Ruth Torres, Flavia Lake, Nicole Bonifacio, Michael LaLonde, USMC, Ret., Jarrett Moore, Allison Craig, Erinne Grant and Sharon Taporco: http://www.mkeever.com/usa.html

Mike P. McKeever
Founder
McKeever Institute of Economic Policy Analysis [MIEPA]
www.mkeever.com
mckeever.mp@gmail.com

Merry Christmas

Merry Christmas Barry:

This time of year brings out some melancholy for me along with some joy.

My very close relative is in her last days and it's hard to witness the decay and the pain.

I would hope that all my relatives would support each other, but self centerdness and attorneys rule the day.

The Caliifornia Community College System - the place where hundreds of thousands of people in every conceivable situation try to find a foothold on the American Dream - is rationing classes because the cash is just not there. No more welcome to the USA, now it's just get ready to get some money by transferring to university in two years flat or get out. Tough luck for vocational programs and immigrants. Read it here: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/12/24/MN3U1MD0L6.DTL&tsp=1

Some 50 million Americans are mired in poverty and misery. Some 25 million are unemployed or underemployed.

Some of the rich among us actively work to increase that number while they grow obscenely richer. Our American experiment was founded in hope and respect. I think it was Ben Franklin who replied when asked what kind of government the Constitutional Convention had given the country, replied: "A republic, if you can keep it".

But, finally we all get it and we are walking the streets and we are really p..o..'d, but very polite. But Barry, we are not going away. We insist on transparent processes and we will not accept corruption and back room deals. The future looks like a better place because of that.

Middle East regimes are tottering because their subjects would rather die than take the conditions. Talk about Hope and Change, that's where it is, Barry.

UPDATE YEMEN 12.28.11

Yemeni crowds are showing us a method by surrounding an agency until the corrupt manager leaves.

Read here: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2011/12/28/international/i034241S48.DTL

"There's somethin happening here, what it is ain't exactly clear" Barry. [Buffalo Springfield]

You are at the top of the system, but that system WILL change; it will change. I just hope that only a few more people die to make the change.

Keep your eyes and ears open; be prepared.

My parents grew up in the Great Depression. That's the time where many families were torn apart by poverty, violence and despair.

My parents would choose a time or event and decide to be happy, regardless of how they felt or what was happening. For that time and in that place, they enjoyed their life.

Take a moment and enjoy your life. Your kids will grow up and your situation will change. But, life is what happens while you're waiting for the next event.

Listen to Fats Domino sing Jingle Bells and have a glass of champagne with Michele. http://www.youtube.com/watch?v=RKpihFvJpY8

Your pal,

UPDATE: NDAA Signing Statement

Hey Barry:

UPDATE 1.1.12

AP: Congress changes the law under White House pressure. Lawmakers eventually dropped the military custody requirement for U.S. citizens or lawful U.S. residents.

"My administration will not authorize the indefinite military detention without trial of American citizens," Obama said in the signing statement. "Indeed, I believe that doing so would break with our most important traditions and values as a nation."

http://content.usatoday.com/communities/theoval/post/2012/01/obama-signs-defense-bill-with-serious-reservations/1

Thanks Barry, it's something.

*******************************

Hanlon's Razor is an eponymous adage that reads: Never attribute to malice what can adequately be explained by stupidity. [Wikipedia]

When considering the National Defense Authorization Act of 2012 with its suspension of habeus corpus for American citizens, Hanlon's Razor is good to keep in mind.

Was that act written from malice or stupidity? Good question.

Let's start with the idea that it is unconsitutional since it violates the Fourth Amendment, as suggested by Jon Stewart on his Daily Show of December 7, 2011.

Here's the text of the Fourth Amendment: 'The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no warrants shall issue, but upon probable cause, supported by oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.'

Well I'll grant you that quoting constitutional law from a TV talk show is kinda weird. But, where is the debate about this act by legal scholars?

Is anyone working on a suit to challenge this law?

What about reducing its impact on Americans?

Mark Udall says this: 'The [bill] .... would also expand the military’s role in domestic law enforcement operations by requiring that the Department of Defense assume responsibility for holding terrorism suspects, even if they are captured within the United States and held by the FBI, CIA or others.'

There is some further disagreement about this in the Senate. Dianne Feinstein introduced a bill to 'To clarify that an authorization to use military force, a declaration of war, or any similar authority shall not authorize the detention without charge or trial of a citizen or lawful permanent resident of the United States and for other purposes.' Her bill is titled: 'Due Process Guarantee Act of 2011' and was introduced on December 15.

We can hope that something like the Feinstein bill becomes law. Or, we can hope that someone mounts a legal challenge to this bill very soon.

Here's a question: why does the NDAA specify that the military shall hold Americans?

Now I have never held a security clearance which is a great advantage since I have never agreed to refrain from disclosing secret information. It's also a disadvantge since I don't have any secret information.

All I can do is look at situations and hypothecate about possible facts.

And, in this case, that theorizing leads directly into conspiracy theories and paranoid fantasies.

Just because you're paranoid does not mean that nobody is out to get you.

The situation is this: the US military has supported a law which will give it powers to detain and hold United States' citizens whom it suspects of terrorism without any due process or constitutional rights.

I don't think that is a paranoid fantasy - it is a law.

Is the law driven by stupidity or malice?

Both are possible.

Of whom are they afraid?

The persons or person whom they fear must be very powerful; after all, Al Queda and that ilk are already decimated and under constant watch by existing civil law enforcement here and military watch overseas.

So, what has changed that drives this new law?

The only answer is that the Occupy Wall Street folks are now exercising their rights to protest government policies which favor rich people over poor people.

That is the most likely answer - the military is afraid of Americans.

OK, Barry, that is positively depressing.

I would like to be a rabble rouser and rouse some rabble to affect United States policies.

But now, I must fear that the US military will take offense to some action or posting of mine. If they do, then I can be placed in military detention with no due process or notification of family.

And, I'll probably be water boarded.

Let me save you guys some time - I confess, it is all my fault. I did it all. You name it, I did it. Shoot me now.

I am a chicken - you can have anything you want. Except I don't do gay sex, period.

But I will say this: you folks who want this law are cowards and traitors.

You are cowards because you are afraid of Americans and you are traitors because you are destroying the foundations of the USA.

Prove me wrong, Barry, please prove me wrong.


Your pal,

Hope, Change

Hey Barry:

Seems that the 60 Minute piece is sticking with me a little, even at 3.00 AM.

So, one of the things you said was that changing the economy will take a long time, maybe even through another President, after your second term.

Now Barry, we love you a lot, but that there thing about change taking a long time is just wrong.

Y'all gonna have to up your game a little bit. Cuz if'n you don't, we is truly cooked.

Here's the thing about changing the economy: it just takes a few well placed laws and policies to start the process.

When FDR finally got off his chair, he put into law a lot of the things we count on today: SEC, FDIC, Glass-Steagall, just to name a few.

It took no time at all to pass the laws, but changing the country's behavior took a long time.

Actually seeing the results is what takes the time Barry, but changing the laws and policies can be done quick. The change you're thinking of happens when folks' behavior is actually changed by enforcing the new laws. That's the thing that takes the time: changing behavior.

In fact, if the new laws are not passed quickly, they probably won't get passed at all. So, your strategy has to be to flood the floor of Congress with ALL your wishes as soon as you have the votes to pass them.

Now, I did actually write a list of the laws that should be adopted and y'all can read them here: http://www.mkeever.com/owsplaneleven.doc

To that list we should add: finish health care so it's completely nationalized with zero for-profit insurance and veto the plan to detain Americans without habeus corpus. Oh, one more thing: Congress has to kill the Citizen's United decision with a law.

As to why the new laws have a short fuse, it's because them greedy big money bastards will scream bloody murder if they think y'all gonna ask them for another cent.

Soon as they hear y'all even thinking about real change, they will call in all the markers they gave to their lap dogs and throw a gigantic hissy fit on the floor of Congress to shut the place down for awhile.

They are willing to kill the country to save their tax breaks.

It's just unspeakable, Barry.

But, it is what it is.

Now, you're gonna go all: 'But I need a Dem majority in both houses to do that and even then, there are some Dems who won't go along with all my laws. I sure as hell won't get any help from any Reps.'

OK, you got me there. You will need a majority in both houses. Yep.

Well, I have Ten Thousand Dollars in borowed cash from Mitt which says that you will have that majority, Barry.

And, here's the Hope and Change part. It'll be the last tango for the Good Ol U S of A.

If you, Barry Obama, don't get off your chair and pass all the laws you can when you have the chance, we are jes cooked.

We may be cooked already, Barry; I'm just hoping we are not finished yet.

Here's the good news in all this, Barry: all the voters in the country will love you to death if you succeed in passing these laws. We all know what the real story is, Barry. We get it. You will be a true hero if you act boldly.

It's up to you.

Merry Christmas.

Your pal,

Jailing Big Money Bastards

Hey Barry:

I'm takin issue with a comment you made on 60 minutes the other day.

In response to a question about why the big money bastards who caused all this mess are not in jail, you replied [more or less, may not be an exact quote]: 'Well, it may be a surprise, but most of what they did was not against the law.'

So Barry, here's the deal: we both agree that they are scum and that they harmed the country in a big way.

It don't matter that their harmful actions were technically legal. They need to be watched and charged for anything illegal they do because once a thief, always a thief.

Y'all changin the laws to slow them down next time, and that's the first step.

For the next step, here's what y'all need to do: open an investigation file on each of 'em for everything they do. Don't care if it's a parking ticket. Follow 'em around and prosecute them for everything.

Course that's gonna mean y'all need to hire some more legals.

Go ahead. It will do the country good. We don't have enough legals now to keep track of all the mischief they causin. And, it's just a guess, but chances are you don't have to ask Congress for permission to hire more gumshoes or legals for Eric Holder.

Al Capone went to jail for income tax problems, not for the murders and extortions he did.

We need to make sure these crooks feel the heat.

If they up and leave the country, well, we'll be better off without them.

Time to get tough on the criminals, Barry, forget about splitting hairs on any individual crime.


Your pal,

Osawatomie - Line in the Sand

Hey Barry:

I aint gonna lie.

It was a great speech.

You laid down a line in the sand and dared the big money bastards to do right by the country.

Here's a link to the text:
http://www.guardian.co.uk/world/2011/dec/07/full-text-barack-obama-speech?intcmp=239

So Barry, now the rubber's got to meet the road.

My bet is that most voters will turn on the Reps and that you'll have a Dem majority in both houses in 2012.

That'll mean that it's just you and the lobbyists and a few crooked folks in Congress fighting over that line.

We need you to hold that line, Barry.

It's for your grandchildren.

Let me know how I can help.

Your pal,

Cry For the Greeks, Italians, Spanish and Americans

Hey Barry:

Wanna see what happens when the bankers take over?

Just read below.

It's Greece today, Italy tomorrow and our turn is coming, Barry.

Our turn is coming.

Excerpts from "GREECE IN CHAOS" by, Noëlle Burgi, Le Monde diplomatique, December 2011
http://mondediplo.com/2011/12/03greece


'Salaries are falling (by 35-40% in some sectors) while new taxes are invented, some backdated to the beginning of the calendar year. Net incomes have fallen drastically, in many cases by 50% or more. Since the summer, a solidarity tax (1-2% of annual income) and an energy tax (calculated on the consumption of petrol and natural gas) have been levied. Further novelties include the lowering of the tax threshold from € 5,000 to € 2,000, and a property tax of € 0.5 to € 20 per square metre levied as part of electricity bills, payable in two or three instalments (failure to pay results in power cuts and penalties).

Since the start of November, pensioners and public and private employees cannot anticipate their monthly earnings. Many workers go without pay altogether. The state is reducing its workforce drastically as part of its restructuring programme. Between now and 2015, 120,000 public employees over the age of 53 have been earmarked for “semi-retirement”, the precursor to full mandatory retirement after 33 years of service, during which employees are obliged to stay at home, and only receive 60% of their basic salaries. Once fully retired, many public employees will be reduced to living on very little. A group of ex-railwaymen, aged 50 and above, said they used to earn between € 1,800 and € 2,000 a month, a relatively comfortable salary in Greece. They have now been posted to jobs as museum guards as part of a “voluntary transition” package (2) and their basic monthly income fluctuates between € 1,100 and € 1,300; semi-retirees are restricted to € 600. All are barred from taking on extra paid work to supplement their income — the penalty, immediate loss of revenue, is enforced.

The loss of income is tearing society apart. Bills are not paid, consumption is down, stores are closing and unemployment rising. In May the official unemployment rate was 16.6% (10 points higher than in 2008) and 40% among the young. The actual rate is likely to be much higher. The social, economic and political crisis has shaken the national health service. Hospital and public health care centre budgets have been cut by 40% on average. More patients are admitted to the emergency room, others go to Doctors of the World health centres, and many choose to do without medical care altogether. People report being denied access to crucial medicine. One journalist said her father suffers from Parkinson’s disease: “His medication costs € 500 a month. The pharmacy told us it will stop supplying him, because insurance payments have stopped.”

Physical ailments (notably heart conditions) and mental illnesses are increasing at a worrying rate. Recent epidemiological studies have shown that heightened stress, exacerbated by high debt and prolonged unemployment, is generating “major depressive disorders, disruptions and generalised anxiety” (3), which account for a dramatic rise in suicides. According to unofficial figures discussed in parliament, the suicide rate increased by 25% from 2009 to 2010, with a further rise of 40% in the first half of 2011, compared to last year, according to health ministry sources. Figures published in The Lancet (4) reveal an alarming increase in prostitution, as well as infection rates of HIV and other sexually transmitted diseases (5). There are unprecedented numbers of homeless people, and they are no longer limited to alcoholics, drug addicts or the mentally ill. A recent study demonstrates that the middle class, the young and the moderately poor are now more likely to end up on the street (6).'

So, Barry, we in the USA are seeing the beginnings of the Greek style breakdown already.

Run fast for your mothers, the horses are coming........

Your pal,

Here Come the Clowns

Hey Barry:

One writer I read occasionally suggests that bloggers like me are performing in a theater.

In his analysis, we create a story arc over numerous postings that provides an online persona - which may or may not reflect our real selves.

Holy Cow! Ya think?

Jeezo peezo.

We are in the middle of an EFFIN TRAIN WRECK here in the good ol U S of A.

But, NOBODY NOTICES THE WRECK AROUND THEM.

I've been putting on a whole bunch of costumes and yelling about the wreck as loud as I can since 2007.

BUT NOBODY'S LISTENING.

Here's the train wreck in Greece, now!: http://mondediplo.com/2011/12/03greece

Crap, wish I was lucky enough to be in a theater with a few folks paying attention.

First costume, put on a political volunteer, Hillary surrogate costume and yell like crazy.

Nobody notices the train wreck.

Then, dress in O'Henry grunge clothes and use bad grammar - same message, same result.

Result: Zip. More wreckage.

Dress up like John Adams with breeches and leggings and pull out the patriotic music.

Result: Nada. More wreck.

Don professor's garb of tweeds and identify specific systemic problems and proffer specific solutions.

Result: Zilch. Bigger wreck.

Haul my cousin's Kingly crown and scepter out of the closet and demand that things change.

Result: Nothing. Continuing wreckage.

The only people paying attention to the wreck are the Occupy people.

But, the wreck is gonna get us all. Soon.

A whole lotta people know about all this wreck, but nobody with any power is changing a damn thing.

I'll keep on yelling, Barry.

Sure hope somebody's out there.

Your pal,

Where are we going?

Hey Barry:

The OWS guys have shown us that we are at a tipping point, maybe we're even way beyond the point.

Unless we completely and dramatically overhaul our economic structure, we face a declining future.

And, you know what Barry, I don't think we have the balls to make those changes.

The big money bastards just have too much power and are just too greedy for any real changes to happen.

I'd like to be more optimistic Barry, I really would. But, I just don't see any good news out there.

The changes we need are so drastic, will damage the selfish interests of so many really rich people and our system is so corrupted by money that I'm afraid real changes are dead in the water.

Y'all can see the changes I am talking about here: http://www.mkeever.com/owsplaneleven.doc

So, if we can't make the changes, what's that future look like for the good ol U S of A?

And, yes I know that predicting the future is dicy at best. But, the military does it all the time as contingency plans. Bout time a civvy did it.

There are a few possibilities and Barry, none of them is any good.

Future Number 1: We continue on the present path with a declining middle class and an increasing lower class; that will include expanding the social misery that created the New Deal: homeless, no medical care, elderly begging and dying in the streets, rampant gangs, no safety found in public or private places, etc., etc.

The big money bastards build huge compounds with elaborate security because they are afraid of poor people.

In other words - we become the Third World.

Future Number 2: The OWS guys lose their patience, attract vast numbers of desperately poor people and increase violence. This prompts a militaristic reaction and we degenerate into a Syrian scenario with troops shooting and killing Americans in the streets. The only good news here is that such a reality will be a prelude to a real revolution.

Future Number 3: Superman swoops down and confiscates all the big fortunes and installs the sweeping structural changes we really need.

HAHAHAHAHAHA..............

Future Number 4: The US military loses patience with the social misery and lawlessness and installs a military dictatorship.

I don't think this is likely because our military are mostly professional people who do not also own monopolies in essential services that would be jeopardized by lawlessness. That is the situation in Egypt where the military does not want to lose control.

I'd really like to be more optimistic Barry.

Anyway, Happy Holidays to you and yours.

Your pal,

Banks Con Homeowners

Hey Barry:

Q: What do you call a con job when a banker does it?

A: Dual Tracking.

That's where a bank sends out a counselor to work with a homewoner on a loan modification while at the same time the foreclosure department is selling the house on the courthouse steps.

If you don't believe me, y'all can read about California Attorney General Kamela Harris here: http://www.sfgate.com/columns/bottomline/

My mind don't work that way and I could not dream that up in a million years.

It's just unspeakable.

Where's the pepper spray?

Your pal,