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Department of Bust Out Profit Models and Vampiric Capitalism

letsgetitdone's picture

Sorry Folks, Austerity’s Not Dead Yet!

It makes a good headline; but it’s dangerous to say “austerity is dead,” just because new budget projections indicate that the deficit has already been cut by $200 Billion more than in previous projections, and because the Reinhart-Rogoff study has been debunked successfully, and, hopefully, irretrievably. Austerity will only be dead when legislators, Presidents, Prime Ministers, Central Bankers, and international lending organizations stop trying to implement it, whether or not they stop because deficits have already been cut.

Of course, those claiming austerity is dead, mean by their claim that deficit cutting efforts have already been successful enough in the United States that future projections in all the mainstream budget plans now show only “moderate” deficits (See the Table which now includes CBO revised budget projections.) These don’t signal a debt crisis, and instead suggest that we can now turn to the really serious economic, health, and environmental challenges we face. Read below the fold...

Nader Calls Out US Global Corporations as Unpatriotic!

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Ralph Nader believes it is time to put U.S. global corporations on the DEFENSIVE! He declares that would be “the first step for the resurgence of the people so that corporations become our servants and do not remain our masters.”

In “Patriotic Yardsticks for Unpatriotic Giant Corporations” he calls out US Global Corporations for BETRAYING America -- betraying the American citizen taxpayers that have enabled them to become so incredibly successful. Nader spells it out: Read below the fold...

Because immigration reform and healthcare reform have a lot in common

"They say that as the bill is written, it’s possible that people with RPI status, even as they’re excluded from health insurance exchange tax credits, may be pegged with the individual mandate penalties that Americans who refuse to buy healthcare are forced to pay. That is, immigrants won’t get any help paying for unaffordable care, but could be fined for not buying into the system anyway. (I can imagine this would be seen as a win/win by the rentiers) Read below the fold...

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A Few Words Re Fertilizer Explosion & Implications

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From “Texas plant explosion highlights gutting of health and safety rules” by Andre Damon.

4-17-13, Wednesday, West Fertilizer plant explosion in West, Texas

20 miles north of Waco (close to compound where in 1993 after FBI assault on religious compound 76 men, women and children died in a fire which inspired Timothy McVeigh to perpetrate the Oklahoma City bombing which killed 168 people -- West, TX explosion took place within 2 days of their anniversaries)

14 people dead

Read below the fold...
letsgetitdone's picture

Revisiting the Budget Plague

Deficit spending by the government is merely the counterpart of private sector saving. What government deficit spending does is to permit the private sector to achieve its level of desired saving. When the latter changes, government spending ought to be adjusting in the opposite direction to offset it (unless the current account balance happens to do the job).

Read below the fold...
letsgetitdone's picture

Hell No! The Ultimate Pushback against the Grand Bargain

The underlying rationale for “a Grand Bargain” and the President’s deficit reduction budget including cuts to both Social Security (SS) and Medicare and many valuable discretionary programs, apart from the pragmatic justification, that he may be able to complete such a bargain with the Republicans and blue dog Democrats in Congress, is that the fiscal health of the United States requires that we can’t keep running annual deficits of the size we’ve been running. Why? Read below the fold...

400 Brave NYC Fast Food Workers Unite & Strike!

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Did you know that approximately $200 billion is grossed annually by the fast food industry?

Did you know that the average yearly salary of fast food employees in NYC is $11,000? Pretty small considering the City’s notorious sky-high rents and cost of living!

Did you know that $25,000 is the average DAILY salary of most fast food industry CEOs? (Over two times what the average NYC fast food worker makes in a year!)

Something is colossally and amorally wrong with this economic picture. Read below the fold...

AUSTERITY Most Savage! (some statistics)

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America’s Hunger Epidemic: 'A Place at the Table' and 'American Winter' by Michael Shank

50 million Americans live in food-insecure households

1-out-of-2 American children will rely on federal assistance for food during their childhoods

106 million Americans, over 1 in 3, live below twice poverty line (less than $36,000 for a family of three)

Richest 1 percent now possess 40 percent of the nation’s wealth

----------------------------- Read below the fold...

letsgetitdone's picture

A Plague on All Your Budgets

The Sector Financial Balances Model:

Domestic Private Balance + Domestic Government Balance + Foreign Balance = 0

is an accounting identity that provides a focus for macroeconomic analysis, explanation, and prediction by economists applying the Modern Money Theory (MMT) approach. It leads to a very critical line of thinking about the budget deficit projections produced for our consumption by the Congressional Progressive Caucus (CPC), Congressional Budget Office (CBO), the House, and the Senate. The US has recently had a sharp decline in its balance of trade deficit. It now stands at about 3% of GDP; which means that the rest of the world has a surplus, a balance of +3% of US GDP in its annual trade with the United States.

Assuming that surplus is unlikely to shrink anymore, we can see from the equation that unless the Government balance is less than -3% of GDP, the Domestic Private Balance in the United States economy will not be positive (a surplus, and addition to nominal financial wealth) and is very likely to be negative (a deficit, a subtraction from nominal financial wealth). So, the private sector taken as a whole will be losing rather than gaining Net Financial Assets (NFAs), every year for as long as the situation lasts. Read below the fold...

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