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Department of Bust Out Profit Models and Vampiric Capitalism

letsgetitdone's picture

More Misdirection from Rampell in the Service of Generational War

In my last post, I took issue with a recent column by Catherine Rampell, who tries to make the case that seniors haven't paid for their Social Security and Medicare because they “generally receive” more in benefits out of these programs than they pay into them. Rampell relies on an Urban Institute study to make her case. Since that post, she's offered another that replies to some of the questions raised by commenters on her earlier effort. I'll reply to that new post shortly, but first I want to present key points emerging from my analysis of Federal monetary operations in my reply to her earlier post. See that post for the full argument.

First, once Congress mandates spending, there is no way that the Treasury can be forced into insolvency or an inability to pay its obligations as long as it is willing to make use of all the ways it can cause the Fed to create reserve credits in Treasury spending accounts which can then be used for its reserve keystroking into private sector account activities that today represent most of the reality of Federal spending. Read below the fold...

letsgetitdone's picture

Misdirection: Rampell Views Entitlements Through the Generational War Lens

Some of the favored children of the economic elite who have a public presence, work hard in their writing and speaking to divert attention from inequality and oligarchy issues by raising the issue of competition between seniors and millennials for “scarce” Federal funds. That's understandable. If millennials develop full consciousness of who, exactly, has been flushing their prospects for a decent life down the toilet, their anger and activism might bring down the system of wealth and economic and social privilege that benefits both their families and the favored themselves in the new America of oligarchy and plutocracy.

Here and here, I evaluated Abby Huntsman's arguments for entitlement “reform,” and, of course, Pete Peterson's son, Michael fights a continuing generational war against seniors in pushing the austerian line of the Peterson Foundation. Now comes Catherine Rampell, who, in a recent column, sets forth the position that seniors haven't paid for their Social Security and Medicare because they “generally receive” more in benefits out of these programs than they pay into them.

I'll reply to all of the main points in Rampell's argument, by quoting liberally and then replying to the points she makes in each quote. She says: Read below the fold...

Corporate Exec ‘Psychopathic Groupthink’ Crashed Our Economy

Thread: 

In a highly illuminating article entitled “The Global Money Matrix: The Forces behind America’s Economic Destruction” Dr. Gary Null cites psychologist Clive Boddy as maintaining that “the psychopathological behavior of financial executives was a major cause for the 2007 economic collapse.”

Boddy also has asserted that “individuals with the strongest psychopathic tendencies are those who tend to be promoted fastest.” Read below the fold...

Paul Craig Roberts On Our Economic Doom

Thread: 

Paul Craig Roberts, former U.S. Treasury Secretary bottom-lines the present economic doom of America’s working -- and non-working -- class in "Another Fraudulent Jobs Report." He writes:

Americans live in a matrix of total lies.

What can Americans do? Elections are pointless.

Read below the fold...
letsgetitdone's picture

Is the MSM Blackout on Inequality, Plutocracy, and Oligarchy Ending?

All of a sudden MSNBC cable commentators are talking about plutocracy and oligarchy. Surprisingly, the first occurrence of this I'm aware of was Chuck Todd, reacting on his Daily Rundown show to the spectacle of Republican candidates traveling to Vegas to seek funding from Sheldon Adelson and his group of hugely wealthy Jewish Republican donors. Todd began to explore the implications of that event. He seemed exercised, and more than the slightest bit upset, about its meaning for Democracy and used the words plutocracy and oligarchy. Andrea Mitchell also discussed it later and she, too, registered apparent dismay, while using the “p” and “o” words.

Chris Hayes has been on leave during this period, so we haven't heard from him about this. But Chris Matthews, the “oh so very slightly left-of-center insider” has been making very unfriendly noises about Adelson, the Kochs, and the Supremes, culminating today (April 3rd) with nasty references to plutocrats, oligarchs, and candidates, kissing oligarchs somewhere or other, on both his program and Al Sharpton's. Read below the fold...

Young Owners of Low-Budget GM Cars Weren’t Worth Saving

Thread: 

Michael Moore compellingly writes in “The Price Of Human Life, According To GM”:

The executives at GM knew for 13 years that their cars had a defective ignition switch that would, well, kill people. But they did a "cost-benefit analysis" and concluded that paying off the deceased's relatives was going to be cheaper than having to install a $10 part per car. They then covered up their findings and continued to let millions drive around with the defective part in their cars.

Read below the fold...
DCblogger's picture

Tweet of the Day

letsgetitdone's picture

When You Really Look, Financial Quicksand Turns Into Oligarchical BS

Abby Huntsman's first rant about entitlements soliciting generational warfare got a lot of pushback from defenders. I reviewed the main points made in defense of entitlements, and then added “the most important point of all” as well. Abby made a second try, however, this time singling out Michael Hiltzik's reply to her to respond to and adding a few more points, while withdrawing a bit from her claim that life expectancy has changed very much for seniors since the New Deal period. Hiltzik took issue with that one too. Let's review Huntsman's reply to Hiltzik by analyzing the MSNBC transcript of her second rant against entitlements.

Abby Huntsman:

. . . the need for entitlement reform. there was a firestorm of reaction. an article in the " l.a. times" went as far as to say i want to lead my generation into poverty. come on, man. this isn't about me. it's about the major problem.

Read below the fold...
letsgetitdone's picture

Envy or Honest Outrage?

(Updated)

Catherine Rampell offered a theory the other day, in a piece entitled: “Income inequality isn’t about the rich — it’s about the rest of us.” She says:

People don’t hate you because you’re beautiful. People hate you because they are getting uglier. . . .

And then later, she says:

Yes, anti-inequality rhetoric has grown in recent years. But it’s not the growing wealth of the wealthy that Americans are angry about, at least not in isolation. It’s the growing wealth of the wealthy set against the stagnation or deterioration of living standards for everyone else. Polls show that Americans pretty much always want income to be distributed more equitably than it currently is, but they’re more willing to tolerate inequality if they are still plugging ahead. That is, they care less about Lloyd Blankfein's gigantic bonus if they got even a tiny raise this year.

She proceeds to review polling data to show that this is so, and then advises the 0.1% that if they want to be left alone then “they should probably support policies that “promote the upward mobility of other Americans. . . “ such as Pell Grants, higher minimum wages, and early chidhood education. Read below the fold...

letsgetitdone's picture

The Most Important Point of All Was Ignored

MSNBC's right wing representative on The Cycle, Abby Huntsman, got a lot of pushback from Social Security defenders after her rant last week. They made points similar to the following in countering Huntsman:

letsgetitdone's picture

An Open Letter to Don Beyer, VA – 8th Candidate for Congress

My Congressman, Jim Moran, is retiring this year and his seat is up for grabs in the VA – 8th Congressional District. This is a solidly blue district made even more solid by the Republican gerrymander following their win in the disastrous elections (for poor people, for women, for the middle class, and for minorities) of 2010 in Virginia. So, the question is, which of the eleven candidates who are running in the primary will win it, and become the heavy favorite to win the Congressional election in November.

The heavy primary favorite is Don Beyer, a noted auto dealer in Northern Virginia, who has served as Lieutenant Governor twice, and also as Ambassador to Switzerland. My impression of Ambassador Beyer has been favorable. I have a friend who bought cars from him over many years and who had his Volvos serviced at his dealership all the while, and he had nothing but good things to say about the integrity of the service he received.

That said, however, and personal characteristics aside, I'd like Beyer to clarify his positions on the issues. So, I'm addressing this open letter to him. Read below the fold...

letsgetitdone's picture

Peterson Thinks We Need Austerity While He Lives It Up!

The Peterson Foundation reacted to the President's budget document with a report repeating its usual whining about the debt problem, and the need to cut entitlements. Here are quotations from the report and my explanations of why they are ridiculous deficit/debt terrorist nonsense. Read below the fold...

letsgetitdone's picture

No, Virginia, the Austerity Era Is Not Over

If the President's budget were enacted by Congress, and OMB's projections over the next decade hold, it would almost certainly mean economic stagnation punctuated by recession over the next decade. Would it also mean austerity, however? Let's see.

The Sector Financial Balances (SFB) model is an accounting identity, and these are always true by definition alone. The SFB model says: Read below the fold...

letsgetitdone's picture

Dear Dr. Krugman: Please Let Me Explain

Paul Krugman can't explain why the deficit issue has suddenly dropped off the agenda. He says:

. . . quite suddenly the whole thing has dropped off the agenda.

Read below the fold...
letsgetitdone's picture

Professor Krugman's Nervous Tic?

Thread: 

Paul Krugman's recent post makes some good points about the myth of the undeserving poor. But does he have a nervous tic?. When criticizing conservative economic views, doesn't he always seem to genuflect slightly to conservative opinion in order to appear "reasonable"? In this post he says:

"I’ve noted before that conservatives seem fixated on the notion that poverty is basically the result of character problems among the poor. This may once have had a grain of truth to it, but for the past three decades and more the main obstacle facing the poor has been the lack of jobs paying decent wages. But the myth of the undeserving poor persists, and so does a counterpart myth, that of the deserving rich."

What "grain of truth" ever existed in this story? Where is the empirical evidence that the poor were ever more "lazy" than the rich or had other "character defects" (Not K's words) that the rich don't have in abundance, as well? I don't think there is any. What the conservatives believe is pure BS. Some people are certainly "lazier" than others. But there's no evidence that this aspect of character is class-based. It's just prejudice, myth, and conservative fairy tales, which they embrace in place of authentic religion, run rampant. Read below the fold...

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