The insanity of tax cuts for billionaires by a government heavily in debt with high unemployment

Senator Bernie Sanders understands what's going on. Why is there no outrage from most of us?

"For a Democratic president, Democratic House, Democratic Senate, to be following the Bush economic philosophy of tax breaks for millionaires, billionaires is absolutely wrong public policy, absolutely wrong politically, and I gotta tell you, I will do whatever I can to see that 60 votes are not acquired to pass this legislation," Sanders said on on MSNBC's "The Ed Show," before telling host Ed Schultz that he might go as far as to filibuster the legislation.

"Millionaires and billionaires do not need huge tax deductions, that's the simple truth," Sanders continued.

Think Progress quantifies the insanity:
Despite Republican wrangling over the past two years about deficit spending and debt, the New York Times reports that the entire package "would cost about $900 billion over the next two years, to be financed entirely by adding to the national debt."
I think we should settle this immediately with a national referendum. Allow the citizens to go to the voting both and check YES or NO: "Should we give big tax cuts to people who don't need the money, where the effect is to plunge this country more deeply into debt?"

Continue ReadingThe insanity of tax cuts for billionaires by a government heavily in debt with high unemployment

Senator Bernie Sanders discusses the immense magnitude of the backdoor bailout

Senator Bernie Sanders has presented some jaw-dropping facts about the financial bailout at Huffpo. He frames his article by mentioning that back in 2009, when he asked Fed Chairman Ben Bernanke to identify the institutions that received a backdoor bailout from the Fed, he refused. Sanders refused to accept that answer. Instead, he worked hard to force an amendment into the "Wall Street Reform" bill, and we now know some of the startling things Bernanke refused to admit:

After years of stonewalling by the Fed, the American people are finally learning the incredible and jaw-dropping details of the Fed's multi-trillion-dollar bailout of Wall Street and corporate America . . .

We have learned that the $700 billion Wall Street bailout signed into law by President George W. Bush turned out to be pocket change compared to the trillions and trillions of dollars in near-zero interest loans and other financial arrangements the Federal Reserve doled out to every major financial institution in this country. Among those are Goldman Sachs, which received nearly $600 billion; Morgan Stanley, which received nearly $2 trillion; Citigroup, which received $1.8 trillion; Bear Stearns, which received nearly $1 trillion, and Merrill Lynch, which received some $1.5 trillion in short term loans from the Fed.

We also learned that the Fed's multi-trillion bailout was not limited to Wall Street and big banks, but that some of the largest corporations in this country also received a very substantial bailout. Among those are General Electric, McDonald's, Caterpillar, Harley Davidson, Toyota and Verizon.

Perhaps most surprising is the huge sum that went to bail out foreign private banks and corporations including two European megabanks -- Deutsche Bank and Credit Suisse -- which were the largest beneficiaries of the Fed's purchase of mortgage-backed securities.

Sanders has written a blistering piece in which he argues that the biggest banks padded their own executive's pockets, refused to lend to small businesses, used near-zero interest loans they obtained from the Fed to buy Treasury securities and that they continued to gouge consumers through high credit card fees. He suggests that those banks that received this corporate welfare could also have used this money to work out mortgage loans. He is aghast at the conflicts of interest. I am so relieved to know that we have at least one politician who is willing to shoot straight with the American people.

Continue ReadingSenator Bernie Sanders discusses the immense magnitude of the backdoor bailout

Lessons Learned?

What can be drawn from this recent election that speaks to America? To listen to the bombast, this election is all about money. Who has it, where it comes from, what it’s to be spent on, when to cut it off. An angry electorate looking at massive job loss and all that that implies tossed out the previous majority in Congress over money. This is not difficult to understand. People are frightened that they will no longer be able to pay their bills, keep their homes, send their children to college. Basic stuff. Two years into the current regime and foreclosures are still high, unemployment still high, fear level still high, and the only bright spot concerns people who are seemingly so far removed from such worries as to be on another plain of existence. The stock market has been steadily recovering over the last two years. Which means the economy is growing. Slowly. Economic forecasters talking on the radio go on and on about the speed of the recovery and what it means for jobs. Out of the other end of the media machine, concern over illegal immigrants and outsourcing are two halves of the same worry. Jobs are going overseas, and those that are left are being filled by people who don’t even belong here. The government has done nothing about either—except in Arizona, where a law just short of a kind of fascism has been passed, and everyone else has been ganging up on that state, telling them how awful they are. And of course seemingly offering nothing in place of a law that, for it’s monumental flaws, still is something. [More . . . ]

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The oligarch’s president

Charles Ferguson is the director of the new documentary, "Inside Job", which is generating a lot of buzz. It is narrated by Matt Damon, and explains the financial crisis that began in 2008 and continues to this day. Ferguson has contributed an article to the War Room blog at Salon.com, and it's a stunningly clear indictment of the plutocracy that has taken over both the American economy and its political system. Please, do yourself a favor, and read the entire thing. Did you read it? Good, now we're ready to continue. Here's the part that I'd really like to draw your attention to (emphasis mine):

It is, in short, overwhelmingly clear that President Obama and his administration decided to side with the oligarchs -- or at least not to challenge them. This raises the question of why they have made this choice, and whether it is a correct (in the sense of rationally self-interested) calculation on their part. As to the "why," several explanations have been proposed. One is that the president, as a matter of individual psychology, is extremely conflict-averse, preferring to avoid fights no matter how important. A second hypothesis is that the president is simply doing the most he can, given the political climate and the furious lobbying effort with which he is confronted. This explanation, however, is belied by the personnel appointments, among other evidence. A more disturbing possibility is that the Obama administration has simply codified a new strategic equilibrium in American politics, one first devised by the Clinton administration, in which both parties are supine with regard to the financial sector and the wealthy. [More . . . ]

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