economic news and information
For those of you who don't know her, Pluto is a writer I met through our interaction at the place so nice they banned me twice (sure I'd love to tell you about it, but it's not relevant to this piece).
She's a ForEx trader and we don't necessarily see eye to eye on economics since she still seems to think there is some connection between money and actual goods and services (particularly in terms of investor confidence) while I'm with the MMT types that find it totally fictional except for its use as a medium of exchange (which could be replaced in a pinch) and to pay taxes (in lieu of feudal servitude), and think confidence is a scam entirely unjustified by reality.
She is whip smart and has much more practical experience than I do, so it's probably better to listen to her.
And while I would argue that gold is simply another commodity that is useful industrially for its ductility, conductivity, and inertness, and that has a certain aesthetic appeal, it is psychologically true that many people attribute special economic value to it however unjustified by facts that attitude is.
Thus I think her bottom line conclusion, that China is preparing itself to take over as the world's reserve currency is probably true. China's reluctance to do so, according to MMT, stems from the fact that the reserve currency is condemmed by account balancing to run pretty serious trade deficits, otherwise nobody else has any money.
Money is a lubricant for transactions. It has no magical, mystical inherent value (of which it is a poor store and this is a good thing because it forces productive investment rather than unproductive hoarding). But feel free to disagree, never let it be said that at TMC's and my sites (The Stars Hollow Gazette and DocuDharma) we don't entertain ideas we don't completely endorse.- ek
Reprinted with permission from The Stars Hollow Gazette
All week I've been seeing references to this headline:
"China could announce that it holds 30,000 tons of gold to back the Yuan/Renminbi."
As a Forex trader, the story took me by surprise, even though China has been stockpiling for years, and is the world's largest gold producer. Also, it's not like China to pull this trigger so fast. However, in the South China Sea last week, the US started militarily terrorizing China with war ships and fighter jets — and China warned (in so many polite words) that the US planted the seeds of its own doom.
So, maybe that's what this is all about.
I was intending to write about my "poll" of Princeton, NJ residents that I conducted yesterday, under a decidedly different title, but when I got home, last night, stumbled across the following: Read more about Why I’m Sure the Pew Research Poll re: TPP Approval in the US is a Fraudulent POS
Cannonfire has an excellent post on eating on food stamps. I agree with him, it was nice that Gwennyth Paltrow at least tried to imagine what it would be like to live on food stamps. It is nice to see rich people with an agenda that goes beyond more tax breaks for me, so kudos to Paltrow for at least trying. However, I disagree with his solution. Read more about Rice and beans
An email today from the Green Shadow Cabinet contains a link to Fast Track Is Not A Done Deal, The People Will Stop It
The byline says, "There is bi-partisan opposition in Congress to Fast Track and a large movement of movements mobilized to stop it."
When you read the article, however, you find:
roughly 30 House Republicans are already on record opposing the trade legislation.
President Obama's remarks to the Business Roundtable on Trade raise alarm bells for us all, and suggest that he is still pushing his pro- 1% agenda for all it is worth. Perhaps it would be better if Congress just treated him as a lame duck from here on in. Here are a number of statements from his talk and answers to questions, and my comments on them. Read more about A Credibility Problem?
Let's get this out of the way. I agree with Piketty's overall conclusion in Capital about inequality, that: the distribution of wealth in many industrial nations is highly unequal, wealth concentration has been increasing; and there is a high likelihood that the extent of wealth inequality will continue to grow unless appropriate fiscal policy is used to reverse current trends. However, I don't agree with:
-- the framework he uses to define and specify “capital”;
-- the way he looks at Government finance and net worth; and
-- the fiscal policy proposals he offers to reduce Inequality and put a stop to current trends of growth in the capital to income ratio. Read more about Piketty's Neoliberal Capital
This pilot project and the radio/video shows it will produce and place on the web is for everyone tired of hearing economic commentary from those who got everything wrong. For decades, the doctrine of "Fiscal Responsibility" interpreted as long-term deficit reduction and Government austerity has had a secure place in American politics. This doctrine is the economic equivalent of the medieval notion that patients must be bled to cure them of disease. And this truth is reflected in the economic history of the United States at least since 1976, when we first began to practice ideology-based austerity in its modern form by planning for deficit reduction and balanced budgets in order to decrease the debt-to-GDP ratio.
Yes, there were short periods of expansive GDP growth during the Reagan and Clinton Administrations, but when one compares job creation and growth rates across the decades, one can see from Table One, that new job creation and GDP growth during the 70s, 80s, 90s, and the first 10 years of this century don't compare to the 40s, 50s, and 60s of the 20th century. By comparison we've been experiencing a stagnant economy in varying degrees for more than 40 years now. Read more about The Real Fiscal Responsibility Today Pilot Project
What follows are five fact-filled and revelatory perspectives I have distilled from Professor John McMurtry’s compelling “‘Global Society Destruction’ and The Ukraine Crisis: Decoding its Deep Structural Meaning”. McMurtry cuts through the mainstream media anti-Russian and anti-Ukraine resistance propaganda to expose what he considers a US-led money/military cancer system attacking ALL of global civilization.
1) McMurtry writes: Read more about Can You Handle Truth re US-Led Collapse of World Security?
I’m generally not one to brag or tell others “I told you so” but after reading more and more articles by other bloggers, writers, pundits and commentators over the past 5 years, I should claim to be some sort of clairvoyant.
More and more people have felt over the past 10 years that the U.S. was not just becoming more oligarchical, but was already an outright Oligarchy. My pessimistic view of the nation was finally vindicated.
“Testing Theories of American Politics: Elites, Interest Groups, and Average Citizens” was a report released this year that used extensive policy data collected between 1981 and 2002 to determine the oligarchic state of the US political system. The study stated “…the preferences of the average American appear to have only a minuscule, near-zero, statistically non-significant impact upon public policy.” Read more about VICTORY LAP – I TOLD YOU SO