●The more budgets are cut and taxes increased, the weaker an economy becomes.
●Austerity is the government’s method for widening the gap between rich and poor, which leads to civil disorder.
●Until the 99% understand the need for federal deficits, the upper 1% will rule.
●To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
President Obama won a huge victory. He won the electoral college vote 332 to 208. He won the popular vote 51% to 48%. This was not the “squeaker” many had predicted. It was the kind of victory that allows a President a springboard to memorable accomplishments and to inscribe his legacy among our greatest.
But Barack Obama shows no energy for memorable accomplishments. His one accomplishment, Obamacare, was lifted from Mitt Romney (who denied it on alternate days), and was passed through the efforts of the Democrats (who complained about the lack of help from the President).
Mostly, he just went along, and let his party do the heavy lifting.
JPMorgan, Credit Suisse settle with SEC for $417 million
WASHINGTON/NEW YORK (Reuters) – JPMorgan Chase & Co and Credit Suisse Group AG will pay a combined $416.9 million to settle U.S. civil charges that they misled investors in the sale of risky mortgage bonds prior to the 2008 financial crisis, regulators said on Friday.
JPMorgan will pay $296.9 million, while Credit Suisse will pay $120 million in a separate case, with the money going to harmed investors, the U.S. Securities and Exchange Commission said.
Both settlements addressed alleged negligence or other wrongdoing in the packaging and sale of risky residential mortgage-backed securities (RMBS), including at the former Bear Stearns Cos which JPMorgan bought in 2008.
The banks settled without admitting wrongdoing, and in separate statements said they were pleased to settle.
“In many ways, mortgage products such as RMBS were ground zero in the financial crisis,” SEC enforcement chief Robert Khuzami said in a statement. “Misrepresentations in connection with the creation and sale of mortgage securities contributed greatly to the tremendous losses suffered by investors once the U.S. housing market collapsed.”
Each settlement is . . . the latest SEC settlements not to punish individuals.
It’s four years after the crimes, and the Obama administration has shown neither the energy nor the desire to punish the bankers who cost America not millions, not billions, but trillions. The banks were too big to fail, and the bankers were too big to punish. All were rewarded.
Obama just looked the other way and collected the political bribes. He could have demonstrated that criminal behavior will not be tolerated, no matter how wealthy the donor. He should have sent the full force of the federal government after those crooks.
And then, there’s this:
Obama says resolving fiscal cliff is urgent business
WASHINGTON (Reuters) – President Barack Obama said he and congressional leaders must quickly get down to work to avert upcoming automatic tax hikes and spending cuts as he sat down for talks with lawmakers on Friday.
“We’ve got to make sure that taxes don’t go up on middle-class families, that our economy remains strong, that we’re creating jobs, and that’s an agenda that Democrats and Republicans and independents, people all across the country share,” he said.
Obama repeated his position that the solution to avoiding the so-called fiscal cliff must balance increased tax revenues against any cuts to spending or reforms to social safety net programs.
So here is Barack Obama, the Great Compromiser, the great defender of middle-class families, preparing us for his cuts to Medicare and Social Security. Now that he has won the election, and never will have to risk a run again, surely he could have told the truth about federal financing.
He should have said, “There is no need to increase any taxes, not even taxes on the rich, and there is no need to cut any social programs. The federal government, being Monetarily Sovereign is not like you and me. It’s so-called deficits actually are a measure of the private savings it adds to your pockets. The government can provide Medicare for everyone and higher Social Security benefits, and it will not cost anyone anything — not you, not your children, not your grandchildren.”
Unless we see a reversal in style, his legacy will be that of a mediocre, enervated compromiser, a man displaying no strong beliefs, who has been carried along like a leaf on the river, first by the Chicago Democratic machine, then by the Illinois democratic machine and finally by the national party.
The Democrats, Harry Reid and Nancy Pelosi fought for the party’s ideals, while Obama led from the rear. With nothing to lose, and a legacy to burnish, he easily could have; he really should have.
Rodger Malcolm Mitchell
Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Medicare — parts A, B & D — for everyone
3. Send every American citizen an annual check for $5,000 or give every state $5,000 per capita (Click here)
4. Long-term nursing care for everyone
5. Free education (including post-grad) for everyone
6. Salary for attending school (Click here)
7. Eliminate corporate taxes
8. Increase the standard income tax deduction annually
9. Increase federal spending on the myriad initiatives that benefit America’s 99%
No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia. Two key equations in economics:
Federal Deficits – Net Imports = Net Private Savings
Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports