Tuesday, November 5, 2013


Today the flames of what use to be the most powerful nation in the world economically and  militarily is barely flickering.  We are still the most powerful nation in the world romping over whoever we wanted to punish for reasons often not understood by the masses.. E comically we are a shadow of our former selves.

It's taken 33 years of Reaganomics to get us to this point.  Reaganomics is a name give to the economic policies starting with Ronald Regan.  Also called Trickle Down economics which is based on a now proven flawed theory of if you make the rich richer the money will eventually will trickle down to the lower end of the income scale.. It didn't work out that way , because every economic theory throughout history has always had a flaw generally based on the actions of individuals.  Who could have thought that if you make a guy a billionaire he would expand his company , instead he started pursuing his second billion.  Why he decided he could increase his wealth by making the masses poorer defies understanding.  The off shoring of jobs, the closing of 60000 factories the destruction of the middle class , and replacing once good jobs with minimum wage jobs just does not make sense.  But it happened and we are left with the results.

A nation with infrastructure falling apart..Civil engineers give our infrastructure a D- and will require 3.6 trillion dollars to bring it up to snuff.  (the cost of two unnecessary wars)In the political world even knowing the latter still go for austerity programs designed to make the problem worse., the poorest poorer and of course offering more tax breaks to corporations and the rich.  On top of that some are pushing for more military involvement is already lost causes and campaigning for new wars (Iran).

If we keep pursuing the same policies into the future , the future is bleak.. It doesn't have to be, but we are doggedly sticking to the same policies.  The Fed is pumping 85 billion dollar a month into the banking system and intends to keep up till unemployment falls.. nobody can figure how putting the money into the system in this manner can accomplish the goals of the program..It does drive the stock market to unjustified levels , the bond market being driven to  a bubble..the value of the dollar being destroyed  to the point where it will probably loose it's status as the reserve currency.. Big players in the T bill market are already getting out of their dollar assets as quickly as they can, Japan and China lead the way.  When the exodus reaches critical levels  the markets will crash to levels never seen before..

The country will be destroyed, the little guy will suffer but the rich will even suffer  more.. They will get taken to the cleaners, There is no place to hide their money.. So down it will come,banks will lead the way as they are leveraged beyond a level that will enable them to handle a sharp decline.. Their derivative load will take them down.

From this pile of ashes we will surface a bit at a time.  Is the Tiger smoking crack again?  How in the hell are we going to do that broke?   There is history that shows us the way.  You realize of course that on the way down inflation will be the runaway kind our currency will be worthless.  So we do what Germany did after WW1.  They made a new currency and built the WW2 war machine with it.  We can do the same but we will build a nation.  Keep in mind that rich folk always wanna get richer and they will fund this new money and away we will go..  Workers can unite in local groups to utilize the skills still alive in their areas, car builder, appliance builders all crafts are still out there, a little old perhaps but willing to serve to train the new troops.  If the workers would form Mondragon style companies the bosses of old will be obsolete , companies owned and managed by the workers can replace the big companies of the past.

To accomplish this of course we have to get rid of our congress and replace them with people not of the corporations.. Money at this time will be out of control of the country and time to replace the congress with folks from the crowd. Sloppy I'm sure but for awhile at least focused on the problem of rebuilding.

To believe this is possible one only has to look back the state of the country during the Great Depression times were bleak.  A smart president knew he had to get people back to work so the New Deal began.  Huge chunks of government money flowed into gigantic projects and other kinds of work from writer , to singers to all fields of work... The money out was turned right around and plowed back into the country and with each wave things got better... We did it once and we can do it again.   Waiting for the chance is the hard part.. so hang on and be ready.

1 comment:

  1. THANK YOU. I needed some hope, and not Pollyanna "everything will get better" with no suggestions how.

    You wrote:

    "The Fed is pumping 85 billion dollar a month into the banking system and intends to keep up till unemployment falls."

    Combine that with:

    "A nation with infrastructure falling apart.Civil engineers give our infrastructure a D- and will require 3.6 trillion dollars to bring it up to snuff.

    Direct the money coming from the Fed's to a new deal and America is working again!

    If the people (remember there are 313.9 MILLION U.S. Citizens) d-e-m-a-n-d our corrupt congress implement another new deal it could happen.(Along with REAL Corporate reform laws is so obvious I feel almost silly mentioning it)

    I can see Ross Perot with his charts. "Now folks here is where we get the money for the new deal" " chart 2 "Here is the work that needs to be done" chart 3 "Here is what we all have to do. Call our senators and congress members every day until they do it."

    I looked up The MONDRAGON corporation. It is fascinating.

    The MONDRAGON Corporation is a corporation and federation of worker cooperatives based in the Basque region of Spain. [note the word cooperative] It was founded in the town of Mondragón in 1956 by graduates of a local technical college. Their first product was paraffin heaters. Currently it is the seventh-largest Spanish company in terms of asset turnover and the leading business group in the Basque Country. At the end of 2012, it employed 80,321 people in 289 companies and organizations in four areas of activity: Finance, Industry, Retail and Knowledge

    A co-operative: "an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly owned and democratically controlled enterprise."

    A solution that already exists!