Thursday, May 31, 2012

Mixed review 5-31-12 (DEMOCRATS!)

The 1st Item of the night is: Paul Krugman talks about trical down economics.
This is Paul Krugman, American economist, op-ed columnist for The New York Times, and avid defender of Neo-Keynesian economics. First off, I have to say that there are many things I agree with here, if not in circumstantial manner: the sole pursuit of self interests is bad, the post 1970s minimum wage erosion was bad, union busting is antithetical to freedom and is bad, and tax cuts for the rich at the expense of the poor and middle class is also bad. All these factors are a result of a kind of trickle down economic philosophy that assumes that bosses will toss down there capital gains if given the chance, ironically only one of these could logically be called smaller government because most of these involve more government intervention, and even exploitation of the people, I mean even a philosophy of self interest when applied as Dick Chainy did for Haliburton is clearly big government, and if you consider that trickledown economics doesn't only mean tax cuts but corporate subsidies then NO these policies do not reflect smaller government. So the only one that could be called smaller government is the erosion of the minimum wage, and I agree that lowering the minimum wage particularly in our monetary system is unjust.

The funny thing is that I don't think that mandatory weekends are to far left, to me that sounds pretty rad! And I don't really think Krugman disagrees with Germany here either, I think he's throwing us a straw man because Germany is doing pretty good right now compared to other European counters, so why would he pick on their economic policies.

Paul Krugman says well fair is not one of his favorite programs, but republicans hate SCHIP. I looked up S-CHIP, it was a bill to expand health care for children, and indeed as it turns out Bush vetoed two attempts to expand  its funding- WOW! This from a guy that signed a "$190 billion farm bill that promises to expand subsidies to growers."(CNN) And to his credit  President Barack Obama signed the Children's Health Insurance Reauthorization Act of 2009.

Now, earlier I stated that lowering the minimum wage is unjust. This is for two reasons one because of what the New Keynesians, like Krugman, call sticky markets, this is one of the places where I agree with the Keynesians. A sticky market is the delay between an increase/decrees in demand for a commodity and the supply of that commodity, when this delay occurs the commodity is marked higher then what people will pay for it or lower then people can sell it. The other factor, for which Keynesian economics is a notorious contributor, is inflation which is caused by the watering down of the value of a currency through the increase in that currencies supply. Now for how these two factors come together, because the printing of new money through fractional reserve, and Fed lawns is a constant factor, the increase in money also is a constant factor and the devaluing of the dollar too is a constant factor, and finally the devaluing of the workers wage which is dollars is a constant factor. Then the problem is compacted when the worker instead of demanding a rise to pay his living expenses orders a credit card that contributes to the devaluing the vary wage he is trying to compensate for.
(Richard d. Wolff' talks in-depth about this in his YouTube video Capitalism Hits the Fan, you can see this video on my post capitalism and its fans.)

The final irony in all this is that because printing money lowers they value of the money, Keynesian policies lead to the devaluing of the savings of the people who most need the Medicare programs the Keynesins like  Krugman advocates, thus making those programs all the more necessary. So I say, as long as The Fed and other financial institutions, such as GM motor company, (as it turns out GM is also a bank, looks like the banks are the problem again)(CNN) continue to inflate the money supply the government should never decrees the minimum wage.

    Here, Paul Krugman explains that Democrats get campaign money
       From banks while republicans get theirs from corporations, hm?!
Maybe you noticed something in all this talk about banking and deficit spending. The politicians that want more spending on things like Medicaid are usually more willing to support, and to take campaign contributions from banks. I want to say, that this is because programs, that hike up the national deficit, like Medicare, are going to be more favorable to those that benefit from debt, the banks, and conversely the Democrats need the support of the banks to do what they really want to do, which is pervade good health care. The problem is that programs like Medicare are needed by millions of people, and, and apart from all the corruption that surrounds them are-you know-are a good thing. So it’s understandable why "good" people, like Paul Krugman, would fever these inflationary tactics. But inflation and watering down the value of the dollar is really bad for people that depend on savings and people with flexible mortgages. So what can be done? Of of course there’s the whole End the Fed thing, which would cut the fraudulent banks off from their never ending source of paper, but that would mean that we wouldn't be able to do deficit spending. So what are some ways that we could fund the programs that democrats want without inflating the currency or promoting nepotism?

A couple of solutions I've come across are the state bank of North Dekota, and
Dennis Kucinich's N.E.E.D act., doubtlessly the Fed needs to end, but these solutions could pick up the slack in a way that the gold standard, on it's own, might not be able to.

The 2ed Item of the night is: Bank of North Dakota the only None Fed insherd bank in America.

The Bank of North Dakota is a unique case in the United States, it is a state bank that pays no interest to the Federal Reserve. Could this be the future of banking.


Heres a motherjones interview with Bank of North Dakota presedent  Eric Hardmeyer:

The 3ed Item of the night is: Democrat and US Congressman Dennis Kucinich explains monetary Reform.

This is a link to the official Govermant site of H.R.2990.

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