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●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●The more federal budgets are cut and taxes increased, the weaker an economy becomes. .
●Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.
●The single most important problem in economics is the gap between rich and poor.
●Austerity is the government’s method for widening the gap between rich and poor.
●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.
●Everything in economics devolves to motive, and the motive is the Gap between the rich and the rest..
Recently, I wrote to my Illinois Senator, Democrat Dick Durbin, asking why not a single big-bank, bankster has been prosecuted, much less convicted.
Here is the full text of his courageous response, along with my comments:
June 25, 2015
Dear Mr. Mitchell:
Thank you for contacting me about the decision not to prosecute many executives involved in the 2008 financial crisis. I appreciate hearing from you.
“Many” executives? How about “any” executives?
In January of 2013, Senators Sherrod Brown of Ohio and Chuck Grassley of Iowa sent a letter to then-Attorney General Eric Holder. This letter questioned the scope and type of charges the Department of Justice had brought against those involved in the financial crisis. The DOJ said it would charge people it believed had broken the law. By the end of 2014, the DOJ had secured over $36 billion dollars in civil penalties related to the crisis.
Somewhat of a shift. The DOJ was supposed to charge people. The billions in civil penalties came from the banks. The people could not care less.
In the wake of the 2008 downturn, we worked in a bipartisan way to rebuild the country and enact common sense reform of the financial system. These reforms addressed many of the practices that led to the crisis.
It was not a “downturn,” Senator. It was a full fledged recession, bordering on a depression. Millions of people were thrown into financial devastation. Sadly, too few were politicians.
The “reforms” did not address the fundamental problem: Banks trading for their own accounts, rather than acting as banks.
Firms cannot think they are too big to fail, and executives must not be allowed to make decisions and not feel the consequences. These notions can lead to excessive risk-taking, and the expectation that the government will save a troubled company.
Except, the government rewarded the “too big to fail” banks by lending them money to keep them from failing. And the executives were rewarded with gigantic salaries and bonuses. Why? I guess we all know the answer to that.
I will keep your concerns in mind as we work to strengthen the American middle-class and protect the financial system from reckless behavior.
Thank you again for contacting me. Please feel free to keep in touch.
Richard J. Durbin
United States Senator
I feel good, don’t you. He will strengthen the American middle-class and protect the financial system. How? I don’t know.
Anyway, you might think the headline of this post was sarcastic, when it spoke of his courage, but it takes a lot of guts to send a constituent a letter so filled with meaningless generalities and outright falsehoods. So kudos to Senator Durbin for his courage.
Now if only he would sponsor a term limits bill. His letter is a perfect example for why term limits are needed.
By the way, the solution to the bankster problem is in #9 of the Ten Steps to Prosperity: Federal ownership of all banks (Click here and here)
Eliminate the profit motive and you eliminate the banksters.
Rodger Malcolm Mitchell
The Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded free Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Federally funded, free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually. (Refer to this.)
8. Tax the very rich (the “.1%”) more, with higher, progressive tax rates on all their forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)
10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
Initiating The Ten Steps sequentially will add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.-
10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt
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.
1. A growing economy requires a growing supply of dollars (GDP=Federal Spending + Non-federal Spending + Net Exports)
2. All deficit spending grows the supply of dollars
3. The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
4. The limit to non-federal deficit spending is the ability to borrow.
THE RECESSION CLOCK
Long term view:
Vertical gray bars mark recessions.
As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.
3 thoughts on “Democrat Sen. Durbin courageously addresses the bankster issue”
It’s mostly about how the right wing (Bill O’Reilly et al) has been trying to deny that the church murders and the Confederate battle flag are racist. Truly hilarious.
The question is: “Why does the right wing doth protest so much?” Why do they feel so guilty about racism that their big guns have to go into full denial mode?
Hey, just because the right wing hates gays, blacks, browns, yellows, the poor, the sick, the elderly, non-Christians, climatologists, women (especially pregnant women), the unemployed, the uneducated, advocates for some measure of gun control, and of course, the “libs” (i.e. all those having compassion for the above-mentioned groups), why would anyone believe the right wing has come to be dominated by racists, bigots and fools?
Why? Well for one thing, look at the Republican Presidential candidates, and for another thing, watch Fox “News.” Might be some clues, there.
Rodger thanks for writing to the Senator. We need more of that – even if only to expose their “non-responses”. I’ve done the same and get back either (a) form letters or (b) silence. However, I did go to a dinner recently where Derek Kilmer (D-WA) was present. I had the chance to explain to him that he could achieve his various initiatives (infrastructure, education, research, etc) without being concerned with “how to pay for it”. He told me “I need to get you down to Washington”! I’ve followed up but have yet to hear from him.
So he may lapse into silence. I will keep bugging him. I tell people I’m just trying to find just one person “of influence” who can combine (a) an understanding of the “facts” with (b) the courage to promote this understanding. Perhaps that person does not exist but it doesn’t hurt to try.
You try; I try; Warren Mosler tries; Randy Wray tries, Stephanie Kelton tries; others try.
Keep trying. One never knows which straw will break the back of ignorance and the propaganda of the rich.