Seriously Dealing with the National Debt

It’s way past time to get serious – and prophetic -- about the $14 trillion-plus national debt. The two major political parties, for different reasons, have been neither.

Republicans in general rail against deficits and debts until it comes time to spend trillions on wars and occupations, Pentagon weapons, bank bailouts, and tax breaks to corporations and the super rich. Debts and deficits are often simply pretexts to slashing social and economic programs benefiting people and communities without having to debate their merits. They point correctly, however, to the current explosion in the debt as economically unsustainable.

Democrats, in general, look at deficits and debts as necessary evils to hire people and prime the nation’s economic pump – especially in times of recessions and depressions. Their claims that the debt isn’t serious, though, by comparing it to the GDP are misleading. The two have little to do with each other. More accurate would be to compare the debt with the US annual income of $2.4 trillion. On a personal level, this would be akin to a person with $50,000 in annual income burdened with nearly $300,000 (and growing) in debt. That’s serious.

The forced vote this week in the US House of Representatives to raise the debt limit without additional spending cuts was pure grandstanding. Calls by Republicans for spending cuts at least equal to the amount Congress would raise the country’s debt ceiling is opposed by many, if not most, Democrats. This isn’t serious.

There is a serious and prophetic path for both parties to confidently strive down together that will eliminate the debt and establish fiscal and political accountability. That path is to affirm the Constitutional authority (Article 1, Section 8) of the government to issue and circulate its own money.

Congress should pass legislation authorizing the government to fund any outstanding expenditure with US money (i.e. electronic and paper notes) – rather than borrowing from banks.

Banks create money currently out of literally nothing as debt when they provide loans to people or the government – the later when they acquire US Treasury bonds. We the People are on the hook not only for the principle but also the hundreds of billions of dollars annually in interest to bankers. This is a loss of fiscal and political independence.

Here’s how it would work. When US Treasury bonds come due, they aren’t renewed or rolled over but rather paid off with US issued debt-free money. This gradually “monetizes” the debt – removing one Treasury bond at a time from the debt anvil off our backs. If additional funds are needed that Congress doesn’t want to pay for via taxes, additional US money is simply spent into circulation.

Thomas Edison clearly understood this solution.
“If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good makes the bill good... If the Government issues bonds, the brokers will sell them. The bonds will be negotiable…Why? Because the government is behind them, but who is behind the Government? The people. Therefore it is the people who constitute the basis of Government credit. Why then cannot the people have the benefit of their own gilt-edged credit by receiving non-interest bearing currency… instead of the bankers receiving the benefit of the people’s credit in interest-bearing bonds?”

What would prevent Congress from flooding the economy with US money? We the People through direct vigilance as well as a checks and balance system established to ensure that US money creation causes neither inflation nor deflation. President Lincoln created debt-free US money during the Civil War – called Greenbacks. The time has come to once again issue US money.

US Representative Dennis Kucinich proposed last year an excellent bill calling for:
1. Moving the private Federal Reserve System under the US Department of the Treasury,
2. Eliminating the ability of banks to create money out of nothing, and
3. Authorizing the US government to issue US debt free money to fund $3 trillion in infrastructure.

Republicans and Democrats need to stop pointing fingers at each other and jointly focus their aim at the root problem of our economic system – private/corporate issuance of money by banks.

Claiming democratic control of our money system is a profound and prophetic means to eliminating our national debt and creating real political independence.

Multiple Corporatization Assaults in Ohio

It’s bloody hard, in fact darn near impossible, to keep up with the multiple efforts to privatize/corporatize Ohio’s assets and services promoted by the Kasich administration. While the issues are different, they all share the same general features connected with converting something from the public to the private/corporate realm:
Reduction of service
Increase in cost
Reduction in public transparency and control

Here goes...

Overall (OK, not only about Ohio but the whole nation)...

How Our Government Has Merged With Corporations
The government of the United States is largely rented to corporations
http://www.alternet.org/economy/151101/how_our_government_has_merged_with_corporations/

Privatization/corporatization of the state lottery

Ohio Senate gets proposals on privatizing state lottery
http://www.cleveland.com/naymik/index.ssf/2011/05/ohio_senate_gets_proposals_on.html

Privatization/corporatization of the state liquor operation (to fund the new privatized/corporatized JobsOhio outfit)

Is $1.2 billion too low for the state's liquor operation? GOP lawmaker and public policy group both think so
http://www.cleveland.com/open/index.ssf/2011/06/is_12_billion_too_low_for_the.html

Privatization/corporatization of education

UNWARRANTED FAVOR \
WILL STATE SENATORS ALSO DO THE BIDDING OF DAVID BRENNAN?
http://nl.newsbank.com/nl-search/we/Archives?p_action=doc&p_docid=1379D702AC1DD6A8&p_docnum=2

SENATE BUDGET PLAN WOULD EASE CUTS \
THIS VERSION DROPS MERIT PAY SYSTEM FOR OHIO TEACHERS, TRIMS LANGUAGE GIVING POWER TO CHARTER SCHOOL OPERATORS
http://nl.newsbank.com/nl-search/we/Archives?p_action=doc&p_docid=1379D702F4E031A0&p_docnum=1

Privatization/corporatization of drilling in state parks

State House passes parks-drilling bill
http://www.dispatch.com/live/content/local_news/stories/2011/05/25/house-passes-parks-drilling-bill.html

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Ohio Move to Amend Monthly Statewide Conference Call
Saturday, June 4, 9:00 AM
Call in #: 1-218-862-7200
Access Code: 744213

No matter the problem associated with increasing privatization/corporatization and corporate power, the solution is more real democracy — which can only be achieved if corporate constitutional rights is abolished. That’s what Move to Amend seeks to accomplish. Help us. Join us on the call this Saturday!

MONETARY HISTORY CALENDAR May 30 - June 5

MAY 30

1908 – ALDRICH-VREELAND ACT SIGNED BY PRESIDENT TEDDY ROOSEVELT
The Act established the National Monetary Commission recommending the Federal Reserve Act of 1913, creating the Federal Reserve System, the current private central bank (actually 12 banks to give the appearance of decentralization of economic power and control) of the US. The Aldrich-Vreeland Act was passed in response to the economic Panic of 1907 of bank failures. The Panic was manufactured by JP Morgan and other bankers who had been the target of Roosevelt’s trust busting efforts through more aggressive enforcement of the Sherman Anti-Trust Act. Through manipulating the stock market, calling in loans and not granting new ones, Morgan severely contracted the nation’s money supply. Thousands of banks were overextended. An economic crash followed. The Panic of ’07 was the pretext used to end the nation’s system of decentralized private banking by creating a system of centralized private banking – the Federal Reserve System.

JUNE 3

1864 – PASSAGE OF NATIONAL BANK ACT
This Act superceded the National Bank Act of 1863. Both Acts were pushed by bankers and their supporters to undercut Greenbacks. A system of nationally chartered, private/corporate banks was established and expanded. These new national banks were provided with virtually tax-free status and subsidized through purchasing of government bonds with discounted Greenbacks. These banks were permitted to then create “US Bank Notes” (debt-based money) which entered the money supply – to be used in payment of taxes and duties only. This system enriched banks and worked to wean the US away from Greenbacks (debt free money). The Act limited the issuance of Greenbacks to $300 million.

JUNE 4

1910 – BIRTH OF ROBERT B. ANDERSON, SECRETARY OF THE TREASURY UNDER PRESIDENT DWIGHT D. EISENHOWER
"When a bank makes a loan it simply adds to the borrowers deposit account in the bank by the amount of the loan. The money is not taken from anyone else's deposit; it was not previously paid in to the bank by anyone. It's new money, created by the bank for the use of the borrower."

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Why this calendar? Many people have questions about the root causes of our economic problems. Some questions involve money, banks and debt. How is money created? Why do banks control its quantity? How has the money system been used to liberate (not often) and oppress (most often) us? And how can the money system be “democratized” to rebuild our economy and society, create jobs and reduce debt?
Our goal is to inform, intrigue and inspire through bite size weekly postings listing important events and quotes from prominent individuals (both past and present) on money, banking and how the money system can help people and the planet. We hope the sharing of bits of buried history will illuminate monetary and banking issues and empower you with others to create real economic and political justice.
This calendar is a project of the Northeast Ohio American Friends Service Committee. Adele Looney, Phyllis Titus, Donna Schall, Leah Davis, Alice Francini and Greg Coleridge helped in its development.
Please forward this to others and encourage them to subscribe. To subscribe/unsubscribe or to comment on any entry, contact monetarycalendar@yahoo.com For more information, visit http://www.afsc.net/economiccrisis.html

Explaining Conservative Support Among “Ordinary People”.

Only 39.7% of voters, or 24% of the Canadian population supported the right wing Conservative Party in the last Canadian general election. The base for this party consists of religious extremists, but these make up only about 10% of the population. Then there are the five percent of the wealthy and near-wealthy who naturally vote Conservative, since their policies allow them to skim-off ever more of societies riches. Ideologically-rooted haters and greed creeps are the natural basis for far right parties. But how does one explain the support the remaining 9% of the population, neither cultists nor rich, give to the Conservatives? How to explain the support given by people who will be directly harmed by much right-wing legislation?

In order to explain this seeming contradiction we have to examine four factors:

1. education and culture

2. alienation

3. social psychology

4. age, gender and ethnic factors

Education and Culture

Regardless of the formal level of education, this is a group that is not well educated nor has a particularly high level of culture. Our schools do not teach people to think critically and to argue rationally. Thus, the uneducated do not discuss and debate, but mutually reinforce their prejudices. Anyone who steps out of line is either shouted down or ignored. They do not recognize a rational argument and thus are easily bamboozled by the strings of fallacies spouted by right-wing politicians. This is made doubly easy since these politicians pander to their prejudices.

Their culture consists of kitsch, corporate mass culture, or at best a philistine adoration of the “classics.” Anything beyond that is deemed “highbrow”. “modern”, or “intellectual” and thus not worthy of consideration. Attempts to raise the general cultural level or to introduce critical ideas are seen as a threat, and thus right-wing politicians who seek to cut back on government support for the arts get the backing of the culturally unsophisticated.

Alienation

Right-wing voters tend to be suburbanites. They do not live in communities, but are isolated in the suburbs, and even when connections are made, they tend to be with people similar to themselves. Isolated, with their only window of the world being the TV, they are subject to the fears and prejudices whipped up by the mass media. They don't encounter the people thus demonized, so only have the media stereotypes to go on. This situation, combined with prejudices they have inherited from their parents, leads to the creation of an unconscious “hate list”. We all know their list - tree huggers, anarchists, trade unionists, protesters, feminists, leftists, hippies, intellectuals etc. If a right-wing politician can tar his opponents as such or promise to harm the individuals on this list, he has the vote of the alienated suburbanite in his pocket. A certain amount of the right wing vote is simply a desire for revenge against other citizens deemed unworthy or a threat.

Social Psychology

Most of these people will have been brought up in an authoritarian manner. They react to this in two ways: They identify with the dominators, desire a “strong leader” and hence are open to someone as anti-democratic as Harper. Their attitude toward people deemed “beneath them” (remember the hate list) is that of the bully. (The idea that “these people ought to be suppressed.”)

One important result of an authoritarian upbringing is denial as a life-long procedure when faced with an unpleasant reality. Generally, their personal lives are ruled by denial, not just the political realm. Hence, when disasters result from right-wing policies, these are denied outright, or they latch on to a conspiracy theory to get them off the hook.

It seems that denial is not only a function of a repressive upbringing, but is inherent in the way we think. Neuroscientists have come up with a “theory of motivated reasoning” which helps explain the persistence of irrational beliefs. Our reasoning process is overlaid with emotional content. These emotions are what arise first, in advance of the reasoning process, when someone is confronted with an idea or situation. Our emotions bias us in advance. This works for everyone, progressive or reactionary. Since right-wingers have such a long and bitter catalogue of biases, I suggest that “motivated reasoning” leading to denial plays a much greater part in their decision making process than with left-wingers. (1)

Since the 1960's, old-fashioned authoritarianism has been augmented by narcissism. Old fashioned authoritarianism had the benefit of encouraging modesty and projecting an air of solidity and decency – even though those at the top were free to build their pretentious mansions and engage in their orgies. Today, modesty, solidity and decency fly out the door. Suburbanites simply must have their tacky McMansions and all the consumer goods that go with them. And they must have it all now, not ten years down the road like their parent's generation.

People who are insecure about themselves, something which authoritarian parenting mass produces - tend to substitute things to make up for that lost sense of worth. They will buy houses and cars that are more expensive than they can afford in order to project to the outside world that they are “somebody”.

All these obese houses and expensive toys mean a massive debt, which in turn creates a great deal of financial insecurity which right-wing demagogues freely prey upon.

Those of us who oppose this narcissistic consumer lifestyle are seen as a threat. Building houses for the less-fortunate or encouraging public transit are seen as “lowering property values” and “raising taxes.” Once again, the demagogues can read off their hate list of “cyclists, urban elitists, environmentalists” etc. and the narcissists gobble it up like Pablum.

Age, Gender and Ethnic Factors.

Polls taken during the election showed that youth aged 18-25 overwhelmingly rejected the Conservatives. Women too, though not to the same extent. Nor was there any of the much-touted “breakthrough” among “ethnic” groups. The real basis of Conservative support consists of white men over age 50, Micheal Moore's “Stupid White Men.” There is much sense to this rejection by youth, women and minorities. When these Stupid White Men are rotting in their graves, today's youth will be suffering the dire consequences of all the cut-backs and piratizations, not to mention climate change and peak oil. Women are generally raised to have empathy and are thus not so attracted to the sociopathic concept that only corporations matter and people don't. People of colour would be fools to support the party that contains most of Canada's racists, even though they pretend not to be.

A Couple of Fallacies to Clear Up

The Conservative support from the over-fifties seems to clash with the vision of the “radical Sixties Generation.” Some pundits will trot this fact out as an example of how people supposedly become conservative in their old age. But this is not the case at all, since the counter-culture and New Left radicals were only a minority of their generation. The vast majority of 60s rads are still there in the social movements or at least support them. Since the radicals got all the attention (and had all the fun) the conservative wing of the Sixties Generation has never forgiven its left-wing cohorts. Part of the present attack can be seen as a kind of revenge of the losers.

We will undoubtedly be told that today's NDP-supporting, anti-Conservative youth will go right when they get older. This ignores the fact that politics are based upon deeply-held values. These values, such as empathy or the lack of it, tend, in the case of the former, to direct one to a progressive stance, and the latter to reactionary politics. Furthermore, your moral compass is usually permanently aligned by about age 18 or 20. Thus, if you have empathy at 18, you are most likely to have empathy at age 50. If as a youth, you regard selfishness as a virtue, you are likely to do so in old age as well.

1. Cynics and reactionary apologists will claim that leftists are full of biases as well. But there are biases and biases. It is rational for a leftist to be biased toward Nazis – they are violent, racist, antisemitic brutes. It is not rational for a rightist to hate anti-war pacifists, people who wouldn't hurt a flea. Right wing hate lists are the result of the systematic demonizing of groups and individuals, and are not the result of rational analysis.

End of the World? It's Still Here, Sickos!

The Rupture, er Rapture, I mean, never came off. Must be a lot of weeping, wailing and gnashing of teeth among the Christofascist set. Imagine being upset because the World didn't end. Upset because billions of “non-believers”, plus all those innocent plants and animals, weren't destroyed by earthquake and fire. Has there ever been a more depraved and evil belief system than this? Even vicious dictators don't want to kill everyone and everything.

This belief system, rooted in hate, revenge and the most appalling sin of pride (I am saved, you aren't!) is nothing short of criminal insanity and ought to be treated as such.

MONETARY HISTORY CALENDAR May 16-29

MAY 17

1787 – LAUNCH OF SHAY’S REBELLION
A revolt of farmers in Western Massachusetts which spread to other states fueled by the rise of personal and public taxes and debt and the collapse of any legitimate federal currency.

1901 – FINANCIAL PANIC
The first stock market crash in the US. It was caused by large investors speculating on railroad stocks. Thousands of small investors were ruined.

1930 – BANK OF INTERNATIONAL SETTLEMENTS ESTABLISHED
This is the central bank of all central banks, established as an international financial institution to "foster international monetary and financial cooperation.” Its headquarters are in Basel, Switzerland. The BIS serves to strengthen the international private banking system, not national economies. The BIS advocates the establishment of a global currency, building on the International Monetary Fund “Special Drawing Rights” – a quasi currency which has a value based on a basket of 4 major currencies (the dollar, euro, pound and yen).

2002 – TALK BY WILLIAM HUMMEL, AUTHOR, MONETARY RESEARCHER
"Banks are not ordinary intermediaries, like non-banks, they also borrow, but they do not lend the deposits they acquire. They lend by crediting the borrowers account with a new deposit… The accounts of other depositors remain intact and their deposits fully available for withdrawal. Thus a bank loan increases the total of bank deposits, which means and increase in the money supply."

MAY 23

1933 – ARTICLES OF IMPEACHMENT PRESENTED IN THE US HOUSE OF REPRESENTATIVES AGAINST THE FEDERAL RESERVE BOARD OF GOVERNORS , THE OFFICERS AND DIRECTORS OF THE FEDERAL RESERVE BANKS, THE US SECRETARY OF TREASURY AND OTHERS FOR THEIR COLLUSION IN CAUSING THE GREAT DEPRESSION.
The Articles of Impeachment were introduced by US Congressman Louis McFadden, Chairman of the House Banking and Currency Committee. McFadden stated,

"The Great Depression was not accidental, it was a carefull contrived occurrence… bankers sought to bring about a condition of despair here so that they might emerge as rulers of us all."

"We have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks. Some people think the Federal Reserve Banks are U.S. government institutions. They are private credit monopolies; domestic swindlers, rich and predatory money lenders which prey upon the poeple the United States for the benefit of themselves and their foreign customers….The truth is the Federal Reserve Board has usurped the Government of the United States by the arrogant credit monopoly which operates the Federal Reserve Board."

MAY 24

1924 – DEATH OF CHARLES LINDBERGH, REPUBLICAN CONGRESSMAN (MN) AND FATHER OF FAMED AVIATOR
"This [Federal Reserve] Act establishes the most gigantic trust on earth. When the president signs this bill, the invisible government by the monetary power will be legalized. The people may not know it immediately but the day of reckoning is only a few years removed, the worst legislative crime of the ages perpetrated by this bank bill."

“The financial system has been turned over to the Federal Reserve Board. That Board administers the finance system by authority of a purely profiteering group. The system is Private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people's money."

MAY 29

1998 – DEATH OF BARRY GOLDWATER, REPUBLICAN SENATOR FROM ARIZONA
“The financial system has been turned over to the Federal Reserve Board. That Board administers the finance system by authority of a purely profiteering group. The system is Private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people's money."

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Why this calendar? Many people have questions about the root causes of our economic problems. Some questions involve money, banks and debt. How is money created? Why do banks control its quantity? How has the money system been used to liberate (not often) and oppress (most often) us? And how can the money system be “democratized” to rebuild our economy and society, create jobs and reduce debt?
Our goal is to inform, intrigue and inspire through bite size weekly postings listing important events and quotes from prominent individuals (both past and present) on money, banking and how the money system can help people and the planet. We hope the sharing of bits of buried history will illuminate monetary and banking issues and empower you with others to create real economic and political justice.
This calendar is a project of the Northeast Ohio American Friends Service Committee. Adele Looney, Phyllis Titus, Donna Schall, Leah Davis, Alice Francini and Greg Coleridge helped in its development.
Please forward this to others and encourage them to subscribe. To subscribe/unsubscribe or to comment on any entry, contact monetarycalendar@yahoo.com For more information, visit http://www.afsc.net/economiccrisis.html

125 Years of Corporate Personhood is Enough!

125 years, 125,000 signatures

In May 1886 United States Supreme Court clerk J.C. Bancroft Davis, former president of the Newburgh and New York Railway Company, inserted a headnote

to the United States Reports pertaining to the Court’s decision in Santa Clara County v. Southern Pacific Railroad Company.

Thus with out a formal court ruling, this simple act set a precedent and effectively established corporations as legal persons entitled to the same rights as living, breathing persons under the 14th amendment.

What has followed is 125 years of case law giving corporations Constitutional Rights leading to the destruction of our democracy at the hands of greedy corporations. The most recent, of course, is the Supreme Court’s 5-4 decision in Citizens United vs. Federal Election Commission that opened the floodgates of corporate money in elections. From the environment, energy, and healthcare to jobs, education and the economy, the greed of big multi-national corporations is laying waste to the American dream, and our democracy.

The 125th anniversary of the Santa Clara Railroad case is upon us. As an signer of the Move to Amend petition, I hope you’ll mark this anniversary by signing the petition at Move to Amend.org . Our shared goal is to collect 125, 000 signatures for the 125th anniversary of corporate personhood.

We must come together to reclaim our democracy for living, breathing, people by eliminating corporate personhood through Constitutional amendment.

Whatever issue arises, at its root you’ll find a corporation standing between “we the people” and the solution. If we are to “secure the blessings of liberty to ourselves and posterity,” then we must put an end corporate personhood.

Please sign the Motion to Amend .