GDAE Podcast Episode 49

• Economist James Galbraith: Reality check on the Washington "Debt Crisis".

• Journalist, media critic and political analyst John Nichols: The Unraveling Murdoch News Corp media empire. Were crimes also committed in the United States?


• Ralph Nader: Common Ground with the Tea Party? This might be true for the principled libertarians within the Tea Party.

Play Episode 49 (32 min):

Deficit Commission Corporate Compromise

Here's a "compromise" for you from the "bipartisan" deficit commission (as if Democrats and Republicans aren't captured by corporate power and actually represent the broad range of people's interest... oh yea, I forgot. Corporations are people too).

It would eliminate or scale back tax breaks — including the child tax credit, mortgage interest deduction and deduction claimed by employers who provide health insurance — in exchange for rate cuts on corporate and income taxes.

Can you believe it? Close a loop-hole for corporations, but "in exchange" their tax rates are cut to get them to go along. Reminds me of a Sci-Fi book I'm reading in which the "Transnats" rule. Not that different than today, except in some bankrupt countries, and on mars, there is no government of the people and the Transnats set the rules... or leave it to the whims. Yes. "Freedom."

• Contact the US Senate
• Contact the House of Representatives

Sources:

Thankful for Social Security

Thankful for the Social Security safety net that helps keep people from becoming too desperate. (And we all know that desperate people do desperate things).

THEN... there's Obama's so-called "Bipartisan" Deficit Commission, led by two people with a track record of wanting to cut Social Security, for which I'm not thankful.

Cartoonist Tom Tomorrow pokes a hole in the "we're living longer" justification for raising the retirement age. Just who are "we," people with low-paid hard-labor jobs and little or no healthcare, or people with high-paid desk jobs and good healthcare? Click Cartoon to Enlarge.


Sources:

Thankful for GLH Blog for the tip-off.

Thankful for Salon.Com for hosting Tom Tomorrow.

Good News for Tea Baggers & Anarchists

Who me not posting enough?! True.

Saw the headlines today: "Atlantic Divide: Europe and US Disagree on Continued Simulus Spending."

What's in it for Tea Baggers and anarchists? Tea Baggers want Obama to stop deficit/stimulus spending, and anarchists want to smash the system. Well, Europe is poised to stop stimulus spending and that very well could accelerate the crumbling of the system.

The UK Independent reports:

[German] Chancellor Angela Merkel flatly rejected warnings from President Barack Obama that Europe's attempts to save its way out of the debt crisis could put fragile global economic growth in danger.

Not to get into nerdy economics, but the track record from the US Great Depression and the Japanese malaise of the 1990s indicates that deficit spending to prop up a flagging economy has merit. However, the debate on both sides is a bit moot. Stimulus spending might work, but it would probably just prolong the inevitable.

My judgment is that the US has crossed the Rubicon; the US is now a great power in decline. It has been going that way for decades... Detroit, MI and surrounding area is a stark case-in-point, but books are filled with all sorts of statistics on the decline in manufacturing, jobs, income, etc..

Now, with Europe cutting the spigot of stimulus spending, and putting the screws to the needy in the face of the rich getting richer, the Tea Baggers can say "What's good enough for Europe is good enough for the US," and the anarchists can sit back and smile as the establishment system teeters.

Sources:

The Independent of UK, "Merkel rejects Obama warnings that cuts will damage global recovery," June 23, 2010.

The Hole is So Deep

Lamenting the US trade deficit, the Baltimore Sun Editorial, "Trade Trouble" December 28, 2008, presents two paths for the US to get out of the deep hole we're in:

The U.S. must either get its economic house in order, by reducing debt-financed consumption and rebuilding savings, or learn to live with a decline in American buying power and its influence.

It is certain that we are heading for Option 2. Obama has promised a stimulus package as big, or bigger than, the $700 billion financial industry bailout that's been added to the US debt. Option 1 would spell a depression, so as cathartic and healthy as that might be in the long run, "There are no atheists in fox holes, and no Libertarians in charge of managing an economic crises."

You might look to the Plaza Accord of 1985 as a possible "third way." The Accord, signed by five major nations, agreed to depreciate the US dollar in relation to the Japanese yen and German Deutsche Mark by intervening in currency markets. The intent was to balance US trade deficits with Germany and Japan, but it didn't work. Prepare for less buying power and less influence.

Psssst... Do Something

• Contact the Broadcast Media
  
• Contact the Newspapers
  
• Contact the US Senate
  
• Contact the House of Representatives

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