Those Dem Economic Plans

*********Posted from a secret location known only to myself and everyone on the 4th floor of Memorial Hospital.********

The 2018 elections has brought us a few young freshmen Congresspeople and with the 2020 election looming large a candidate has issued a plan to solve our revenue people….

Let’s look at the economic proposal of announced presidential candidate Sen. Elizabeth Warren……

Two economists who are advising Warren, Emmanuel Saez and Gabriel Zucman of University of California at Berkeley, announced to the Washington Post that the senator is proposing an annual tax of two percent for assets over $50 million, as well as a three percent tax for assets above $1 billion. The proposal, the economists estimate, would raise $2.75 trillion over 10 years and would affect just .1 percent of American households—raising the percentage at which their wealth is taxed to just 4.3 percent from 3.2 percent. 

The “Ultra-Millionaire Tax” would apply to “all household assets…including residences, closely held businesses, assets held in trust, retirement assets, assets held by minor children, and personal property with a value of $50,000 or more,” according to a paper by the economists.

Warren’s proposal, which economist Thomas Piketty recommended in his book “Capital in the Twenty-First Century,” comes weeks after Rep. Alexandria Ocasio-Cortez (D-N.Y.) first told the press about her plan to tax income over $10 million at 70 percent—a proposal supported by a majority of Americans, including 45 percent of Republicans, according to a poll by The Hill.

https://www.commondreams.org/news/2019/01/24/warren-forces-issue-massive-economic-inequality-2020-debate-ultra-millionaire-tax

The freshman women we are calling AOC has a different take on taxing billionaires…..her thought is a 70% tax on them and her thoughts are rooted deep in American’s beliefs….

In 1835, Alexis de Tocqueville produced one of the earliest accounts of the American dream. In his famous study of the Jacksonian U.S., the Frenchman wrote that Americans possessed “the charm of anticipated success” — a ubiquitous optimism that he attributed to our country’s democratic character, and to the “general equality of condition” that prevailed among its “people.”

On Wednesday night, Sean Hannity took de Tocqueville to task. In the Fox News’ host’s telling, general economic equality is not a precondition for the American dream, but rather, an insurmountable obstacle to it — because the American dream is (apparently) to earn more than $10 million year without having to pay a top marginal tax rate higher than 37 percent.

Of course, Hannity did not actually frame his argument as a rebuke of de Tocqueville. His true target was Alexandria Ocasio-Cortez.

http://nymag.com/intelligencer/2019/01/ocasio-cortez-aocs-billionaires-taxes-hannity-american-democracy.html

Because her calls are so American that the GOP is running sacred from her proposals….yes running sacred!

What AOC is proposing

The short version is that Alexandria Ocasio-Cortez is proposing a new 70% tax bracket on income above $10 million. The increased tax on the wealthy would fund what Ocasio-Cortez calls a “Green New Deal,” which would combat both climate change and economic inequality.

Unsurprisingly, this has attracted lots of attention from both ends of the political spectrum. Some agree with the proposal. Some think it’s ludicrous and fear it would derail economic growth. Others think the rich should certainly pay more, but that the addition of a single super-high tax bracket isn’t the best solution.

And, like most tax proposals put forth by politicians, this one is misunderstood by much of the American public.

https://www.fool.com/taxes/2019/01/24/alexandria-ocasio-cortezs-70-tax-plan-what-all-ame.aspx

Let’s watch to see who wins this thing…..but first why would this have the GOP looking over their shoulders…..

Remember that massive tax cuts awhile back?  Appears it did NOTHING it was said it would do…….

The National Association of Business Economics’ (NABE) quarterly business conditions poll published on Monday found that while some companies reported accelerating investments because of lower corporate taxes, 84 percent of respondents said they had not changed plans. That compares to 81 percent in the previous survey published in October.

The White House had predicted that the massive fiscal stimulus package, marked by the reduction in the corporate tax rate to 21 percent from 35 percent, would boost business spending and job growth. The tax cuts came into effect in January 2018.

https://www.reuters.com/article/us-usa-economy-investment-idUSKCN1PM0B0

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An Iraqi Marshall Plan?

Does anyone know what the Marshall Plan was for…..what did it do?

The Marshall Plan, also known as the European Recovery Program, channeled over $13 billion to finance the economic recovery of Europe between 1948 and 1951. The Marshall Plan successfully sparked economic recovery, meeting its objective of ‘restoring the confidence of the European people in the economic future of their own countries and of Europe as a whole.’ The plan is named for Secretary of State George C. Marshall, who announced it in a commencement speech at Harvard University on June 5, 1947.

Revisionist historians have challenged the assertion that the plan represented American altruism. They have argued that the export of dollars to Europe kept the United States from backsliding into depression by providing a market for U.S. capital goods. The Marshall Plan, according to revisionists, allowed the United States to remake the European economy in the image of the American economy.

http://www.history.com/topics/world-war-ii/marshall-plan

The plan was America’s gift to the European countries…….best described as Cha-ching!

Iraq told the international community on Thursday it was “owed” a Marshall Plan after defeating the Islamic State group and a jihadist army of soldiers from more than 100 different countries.

“We are calling for a Marshall Plan to help us with the reconstruction,” Foreign Minister Ibrahim al-Jaafari said at a conference in Rome. “The world owes us that”.

The multi-billion dollar Marshall Plan launched by the United States after World War II is widely credited for helping Europe achieve its current prosperity and stability.

https://www.yahoo.com/news/world-owes-iraq-marshall-plan-says-fm-192149785.html

I agree….the world destroyed Iraq then the world needs to pay for the reconstruction.

 

What Happened To The Community Bank?

About 5 years ago there were several locally owned community banks in my area…..and slowly they have been systematically eating up by larger more national banks…..

I got to thinking about the demise of community banks and went on a research mission….to see if I could find a reason for the demise of these institutions.

After several days…I found what appears to be a good explanation for this mass extinction……

As a rewsponse to the economic crisis of 2008 the government came up with a plan….Dodd-Frank…..it was at best minor reform…..nothing has really changed but it did allow for the demise of the community bank……say what?

The Dodd-Frank regulations are so lethal to community banks that some say the intent was to force them to sell out to the megabanks.

Source: Killing Off Community Banks – Intended Consequence of Dodd-Frank?

This ends my posting day…will return tomorrow with more stuff…..peace out

While We Were Asleep

The other day while most of America was sleeping from another of trying to earn a living….the police departments in several cities were attacking the Occupy movement to evict the people that were protesting…..we all, at least those of us that were interested, have seen all the vids and photos of what happened on that early morning raids……but while we were asleep and police were doing the dirty work of the government…..another issue was playing out under the radar thanks to the raids…..

Have I peaked your curiosity?

Congress is the culprit I speak of and here is what they are attempting to do……

We Love Bailouts Bill: HR 1838 (Stivers) would repeal a section of the Dodd-Frank Act that prohibits the Federal Government from bailing out big Wall Street derivatives dealers. What are they thinking? With Merrill Lynch right now attempting to transfer a total of $75 trillion in derivatives bets from its investment arm into Bank of America, its FDIC-insured parent company, why is the GOP eager to facilitate the next giant taxpayer bailout?

Dark Markets are Good for You Bill: HR 2586 (Garrett) would allow big Wall Street derivatives dealers to continue opaque bilateral trading and allow them to avoid price transparency required by the Dodd-Frank bill. Off-book gambling in the derivatives market was a key cause of the 2008 financial crisis, and Dodd-Frank made huge steps forward, requiring the vast majority of derivatives to be traded in open forums where everyone could see what is going on in this $600 trillion dollar market. Similarly, HR 2779 (Stivers) would exempt all transactions between related affiliates from derivatives regulations, creating less, not more, transparency.

Swap Till You Drop Bill for Pension Funds: HR 3045 (Canseco) would permit swaps dealers to get a blanket exemption from any duty to respect the best interests of pension funds when giving any advice on a swaps deal. Just last week, we saw the largest municipal bankruptcy in United States history, in Jefferson County, Alabama, which was caused when JP Morgan Chase bribed local officials into entering a swaps deal to refinance a sewage district.

Go Back to Sleep SEC Bill: HR 2308 (Garrett) would create a series of new hurdles for the Securities Exchange Commission (SEC) to jump before the institution can pass a new rule or regulation. SEC is not my favorite regulator and their fines on the big Wall Street banks have not been commensurate with the crimes, but compared to the U.S. Justice Department, SEC regulators have been veritable energizer bunnies, extracting billions in concessions.

AS promised, the Repubs are trying to gut the Frank-Dodd Financial Reform Act…….and as usual they are doing the dirty work for those they really work for….Wall Street and the Banks…….

People!  The time has come for us to demand more from our government…….and these moves are no where in the best interests of the average American……speaks volumes on who really runs this government and YOU allowed it to happen…..

Finally! It Is Everything They Wanted!

Today is the big day!  The Prez will sign the new and improved FinReg bill into law….and it is everything they wanted….by they I mean Wall Street…..Obama has said….

“Because of this reform, the American people will never again be asked to foot the bill for Wall Street’s mistakes. There will be no more taxpayer-funded bailouts—period.”

The GOP immediately sent out their Agent Orange, Rep. Boehner, to condemn the bill and its passage (go figure)….which to me is astonishing because Wall Street made out like a bandit and the GOP should be pleased that the bill was so watered down…..or is it just a political tactic?

Any way……

The bill authorizes the allocation of pubic funds to pay for the operation, without congressional approval, with the proviso that the major banks would subsequently be taxed to defer some of the cost.

This amounts to the institutionalization of financial rescue operations, instead of the ad hoc methods employed in the fall of 2008. The procedure is being put into place precisely because the regulatory overhaul fails to impose any real restrictions on the speculative activities of the banks.

It does not restore the legal wall between commercial banking and investment banking, a central reform carried out during the Depression of the 1930s to prevent deposit-taking commercial banks from engaging in the high-risk speculation that is the bread and butter of investment banks and brokerages. The weakening and final removal of this wall in 1999 during the Clinton administration encouraged the wave of speculation and swindling that led to the collapse in September 2008.

It does not cap executive compensation.

It does not eliminate or seriously limit trading in derivatives, the complex and opaque financial instruments that played a central role in the collapse of American International Group (AIG) and threatened to topple the entire banking system.

Instead, the bill sets up what some have called a Potemkin village of regulatory structures with little real substance, which Wall Street banks will have little difficulty manipulating and gaming. For the most part, the details concerning how much capital banks must hold in reserve, what percentage of their capital they can invest in hedge funds, which types of derivatives will be forced onto clearinghouses and exchanges and which will continue to be traded in the “shadow banking system,” etc. will be determined by the various regulatory agencies.  It will grow the bureaucracy but will not cease the gambling by the Banksters with taxpayer money.

Once again the paid agents of Wall Street have successfully set the stage for another economic meltdown…….sooner rather than later……the only good thing is that youtube is up and alive and everything anyone has ever said about FinReg has been recorded and it will come back to them in the near future…….the American people are getting their Christmas goose early…..sorry to be a buzz kill!

Hoorah! We Have FinReg!

Well….sort of…..it is very very close…..

In the beginning there were these gamblers who made lots of money….but then they held a gun to their own heads and pulled the trigger….too bad it was a squirt gun……then they approached the government and made the case for if they went down the toilet they would take the whole economy with them…there gambling debts were quickly covered and the taxpayer got kicked in the ass…..by then the US Congress was up in arms at the way the people were treated (good political kabuki)  with fake concern as make up and the vow that something like this would never happen again and they set off to make legislation of prevention…..they worked and they worked (about 3 days a week for months) until they had the perfect bill on financial regulation…..

Now the rest of the story…….

The Obama administration’s proposal to ban banks from proprietary trading, nicknamed the Volcker rule after former Federal Reserve Chairman Paul Volcker, was softened by Senate negotiators.

Banks will be allowed to invest in private-equity and hedge funds, though they will be limited to providing no more than 3 percent of the fund’s capital. Banks also can’t invest more than 3 percent of their Tier 1 capital.

The change alters language in a bill the Senate approved in May, which would have barred banks from sponsoring or investing in private-equity and hedge funds. Lawmakers offered the modification to appease Senator Scott Brown, a Massachusetts Republican who was concerned the ban would harm Boston-based State Street Corp. He was one of four Republicans to break party ranks and vote for the Senate bill.

The legislation defines proprietary trading as engaging as a principal for a trading account of a bank or non-bank financial company supervised by the Fed “in any transaction to purchase or sell, or otherwise acquire or dispose of, any security, any derivative, any contract of sale of a commodity for future delivery, any option on any such security, derivative or contract, or any other security or financial instrument” that regulators designate through rule-writing.

Negotiators also agreed to give regulators less say than previously proposed to define a ban on proprietary trading. Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat, backed a change offered by Democratic Senators Jeff Merkley of Oregon and Carl Levin of Michigan that “more clearly defines the limits on proprietary trading” by writing the ban into the legislation. The earlier Senate bill would have let regulators write it.

Still does not seem to eliminate the Too Big Too Fail, and gambling is still allowed with taxpayer money, just to mention the ones that I personally think were a necessity for any reform bill…..and personally I am sick of the bullsh*t saying that it is not perfect but it is step in the right direction…..I know and you will soon know that that is just political speak….meaning they have done all they WILL do to reform the financial sector…..

So my friends, grab your ass with both hands….this WILL happen again!…..and I will be the first to say  “I TOLD YOU SO!”

Tap Dance At The G20

Inkwell Institute

International Studies Group

Recently in Toronto there was a meeting of the mindless…a group called the G20……a meeting of the top leaders from 20 different countries that meet to plan the world economy and here is what they decided:

The communiqué called for governments to halve their budget deficits by 2013 and for the ratio of national debt to gross domestic product to be stabilised by 2016. This was seen as a win for Germany and other countries backing deficit reduction. But the document made clear that these targets were not binding and, in a concession to the US, expressed the hope that governments would follow “growth-friendly fiscal consolidation plans”.

In a further bid to walk both sides of the street at the same time, the communiqué declared: “There is a risk that synchronised fiscal adjustment across several major economies could adversely impact the recovery. There is also the risk that failure to implement consolidation where necessary would undermine confidence and hamper growth.”

The G20 resolution on fiscal consolidation allowed all sides to claim a victory even as the differences widen. German chancellor Angela Merkel said the outcome was “more than I expected”. She claimed that the views of continental Europe had prevailed. German officials noted that the US had learned its lesson about writing public letters that sought to change the position of others. In the lead up to the summit, Obama issued a letter to G20 participants warning that too rapid fiscal tightening could impede global recovery. He noted that earlier G20 agreements had pointed to the need for export surplus countries—a reference to Germany and China—to increase domestic demand.

As usual this meeting was nothing more than a photo op for the leaders to appear to be working on solutions when all they were doing is a slow tap dance.  The reality is that the world cannot solve these problems it is up to the individual countries to find the answers and to pretend any thing else is just absurd.