The last few weeks have seen at least two posts calling attention to the potential use of the platinum coin in America's political economy. The first to appear was Rob Urie's piece in Counterpunch provocatively titled: “The Trillion Dollar Catshit Coin” And the second was Mike Sandler's post in The Huffington Post called “Greece and the U.S. Senate: Economics for the 99%.
Let's begin looking at these with Sandler's effort. He reports on two challenges to austerity. The first is from Syriza's victory in Greece and its promise to Greek voters that it will end austerity. The second:
The austerity mindset faces a new foe in the U.S. Senate as well. The re-shuffle of the last U.S. election that put austerity-minded Republicans in power has ironically resulted in a new anti-austerity economist being hired by Senator Bernie Sanders (I-VT) in the Senate Budget Committee -- Professor Stephanie Kelton of the University of Missouri-Kansas City. Professor Kelton is a proponent of Modern Monetary Theory (MMT), a very pro-stimulus economic approach. Her hiring represents the biggest step forward for MMT, since the PR coup of the Trillion Dollar Platinum Coin in 2013. At that time, Kelton reportedly created the #mintthecoin hashtag that was featured in columns by Paul Krugman and others.
Sanders' hiring of Kelton is a break from the more conciliatory "balanced budgeting" approach of some Democrats, such as former treasury secretaries with ties to Wall Street and fiscally-conservative "deficit hawks." Kelton and her MMT colleagues go beyond the traditional Keynesian stimulus of short-term deficit spending. They seek to unleash the power of monetary policy to circumvent the scarcity mindset imposed on government action, perhaps even bringing the Trillion Dollar Coin back into the discussion.
Of course, Sandler means to say fiscal policy in the above, since MMT economics greatly favors reliance on fiscal, rather than monetary policy, in spite of the “monetary” in its name. But apart from that, he projects that we may see the platinum coin come back into prominence soon. Read more about Return of the Coin?
Dysfunctional democracies are provoking anger, confrontations, crises and conflicts for the following reasons:
- In many cases, the citizens of dysfunctional democracies are unable to decide who runs for office, who gets elected and what laws are passed because of obstacles erected to prevent them from doing so.
- Several of these obstacles, for example election laws in the U.S., result in the election of lawmakers, such as those who control the U.S. Congress, who represent only a minority of eligible voters and pass legislation that rarely represents the will of a majority of voters.
- According to extensive research, special interests, wealthy individuals, corporations and financial institutions tend to exert greater influence than voters over lawmakers’ legislative actions because they finance lawmakers’ electoral campaigns.
- Rogue lawmakers whose actions are not controlled by their constituents but by influential groups and wealthy campaign funders are contributing to the creation of increasing inequalities of wealth that enable a small percent of the population to acquire most of their nation’s wealth, while the rest of the population has little or no wealth and few if any opportunities to create wealth.
- Undemocratic political parties that control electoral machinery and do not allow competitive parties to take root prevent voters from setting party agendas and nominating and electing candidates of their choice, increasing the legislative disconnect between voters’ and lawmakers’ priorities.
Marley was dead: to begin with. There is no doubt whatever about that. The register of his burial was signed by the clergyman, the clerk, the undertaker, and the chief mourner. Scrooge signed it: and Scrooge's name was good upon 'Change, for anything he chose to put his hand to. Old Marley was as dead as a door-nail. Read more about Marley was dead.
The spectacular intrusion of special interests into the passage of the $1.1 trillion government spending bill on December 13, 2014 was breathtaking as bankers and lobbyists whipped the vote by calling Congressional representatives directly to demand a host of special interest provisions, including the following:
- Repealing the Dodd-Frank prohibition on locating derivatives trading activities in the same bank subsidiary company as their depositories containing checking, savings, and other accounts insured by the FDIC.
- Raising individual campaign contribution limits by roughly 10 times the present limit.
- Allowing businesses to default by as much as 1/3 of their private pension obligations.
- Preventing the EPA from introducing new climate protections.
So it is now abundantly clear that what we have is government by minority rule in which special interests reign supreme. Clearly, this cannot continue. It is for this reason that we are sharing the post below describing the only solution to the democracy crisis of which we are aware that can be implemented in the near future. It is long and we do not expect many readers to get through it in one sitting, or even at all. But if it piques your interest, you can re-locate it here at a more opportune time.
INTERACTIVE VOTER CHOICE SYSTEM
Technical Features of the Interactive Voter Choice System (U.S. Patent No. 7,953,628)
Accelerating the Technological Evolution of Democracies
Group Forming Network
World's First Large Scale Consensus Building and Conflict Resolution Platform
A Closer Look at Complex Adaptive Systems (CASs)
Integrating IVCS-Enabled CASs into Electoral and Legislative Processes
Summary and Conclusion Read more about The Technology Solution to the Democracy Crisis
(Cross-posted with permission of the author from New Economic Perspectives)
Here’s a summary of the plan Bernie Sanders has set out, along with my comments (in italics).
1.) We need a major investment to rebuild our crumbling infrastructure. $1 trillion investment to create 13 million decent paying jobs and make this country more efficient and productive.
Agreed, but let’s not settle for a mere 13 million jobs. We need twice that. And, of course, the “price tag” is irrelevant—so long as we create useful jobs that pay living wages, we can “always afford” to pay for them. By creating jobs we are not just investing in infrastructure, but we are also investing in our people, enhancing their participation in our society and providing them with the means to support their families. We can always afford that. Read more about A TWELVE STEP PROGRAM TO RESTORE PROSPERITY: THE BERNIE SANDERS PLAN
President Obama's remarks to the Business Roundtable on Trade raise alarm bells for us all, and suggest that he is still pushing his pro- 1% agenda for all it is worth. Perhaps it would be better if Congress just treated him as a lame duck from here on in. Here are a number of statements from his talk and answers to questions, and my comments on them. Read more about A Credibility Problem?
Mychal Denzel Smith in "No Indictment for Darren Wilson, No Justice for Black Lives":
Protesters in Ferguson should not be calm, as they have been admonished by everyone from the president on down. Michael Brown doesn’t need calm. Black boys and girls who grow up in America need their lives to be respected. They need justice.
----------------- Read more about ‘Right to Remain Alive’ in USA No Longer a Given
Today I received an e-mail from the Friends of (the very popular with progressives) Senator Bernie Sanders. In it the Senator says:
I'm joining with the members of Progressives United to send a clear message to President Obama that we will stand with him when he vetoes Republican legislation that attacks the well-being of the struggling middle class.
Join me and members of Progressives United to urge the president to VETO any Republican legislation that attacks working families.
According to Erik Sherman in “Restaurant's Decadent Thanksgiving Feast: $35,000 for 4” The Old Homestead Restaurant on Manhattan’s lower west side offered for Thanksgiving a $35,000 celebration for four people ($8,750 a person). The offer extended was to accommodate 3 groups of four.
By Tuesday two of the three celebration packages had been snapped up. One of the buyers was reported to be from a financial institution in NYC and another an out-of-towner. Read more about If You Cook It ($35,000 T-day Dinner) the 1%ers Will Come!
Carl Gibson, a writer blogging at Reader Supported News, provides an "Open Letter to the Democrats" giving his view of why they lost the Congressional Elections of 2014. He endorses the President's view that people didn't show up to vote because their choice of politicians didn't motivate them. And to this view he adds that the Democrats did not get his generation's support because they didn't “. . . get populist.” And he goes on to say:
2014’s low voter turnout was historic. Voter turnout actually hasn’t been this low since the 1940s. As Mother Jones pointed out, voter turnout for people under 30 was dismal. In this election, people like me only made up 12 percent of those who voted, while people aged 60 and older made up almost 40 percent of total voters. In 2012, when President Obama was re-elected and Congressional Democrats made gains in the House and Senate, millennials made up almost one-fifth of all voters, and voters 60 and older made up just 25 percent of the electorate, bringing us a little closer to a tie. It isn’t hard to see the difference – this year, Republicans steamrolled you, Democrats, because most of us stayed home and let our Fox-watching uncles and grandparents decide on who was going to represent everyone else.
So how do older people pick who runs Congress? Like every other voting bloc, they pick the ones who run on issues most important to them. And as Vox reported, data consistently shows that younger people want their tax dollars spent on education and job creation. Older voters want their money spent on Social Security and war. The Republicans who swept the U.S. Senate ran largely on fear campaigns over ISIS, promising to be more hawkish than their opponents in an eagerness to pour money and troops into Iraq and Syria to snuff out America’s newest boogeyman.
Contrast the unified Republican message with the profound silence from you Democrats on addressing the trillion-dollar student debt crisis, rampant inequality and underemployment, and your collective fear of openly embracing economic populism, and you cook up what we saw on Tuesday night. Older people showed up, highly motivated to elect war hawks. Younger people mostly stayed home, disillusioned with the only alternative on the ballot who didn’t even talk about the issues affecting our lives every day.
In her recent post-election piece “It's Time to Work on America's Agenda” Elizabeth Warren points out that the changes in Washington and in various States aren't changing the fact that
The stock market and gross domestic product keep going up, while families are getting squeezed hard by an economy that isn’t working for them.
Eric Cantor weighed in today at Quora on the balanced budget Amendment. This is what he said:
Once created, government programs build constituencies of special interests determined to keep the money flowing, whether or not the particular program is effective. There have been many times when the House has placed wasteful and duplicative programs on the chopping block, only to see pressure from the spending lobby win the day in the Senate.
Near-term spending cuts are necessary to alter the course, but they will not be enough without long-term changes. Likewise, promises of cuts 10 years from now mean little without a way to enforce them. The only way to truly guarantee delivery from future elected officials is for the Constitution to demand it.
To that end, the House has scheduled a vote on a balanced budget amendment that would require supermajorities in both chambers to run a deficit, raise the debt ceiling, raise taxes and spend more than 18% of the GDP. With the balanced budget movement gaining momentum, members of the spending lobby want to argue that Congress and the President already have the ability to control spending. Ability and discipline are not the same. If Washington actually had the discipline to live within its means over the long-term, every American citizen would not owe $46,000 toward the national debt.
In my view, the importance of these upcoming votes cannot be overstated. The adoption of a Balanced Budget Amendment would make reckless borrowing a thing of the past, and will ensure that our children enjoy futures full of opportunity.
Democrats and Republicans should join together to do the right thing, pass this amendment, and make a real difference for the future of our country.
The Peter G. Peterson Foundation (PGPF) and its allied army of associated deficit hawks want the Congressional Budget Office (CBO), the General Accountability Office (GAO), and the Office of Management and Budget (OMB) to do fiscal gap accounting and generational accounting on an annual basis and, upon request by Congress, to use these accounting methods to evaluate major proposed changes in fiscal legislation. Generational Accounting is an invalid long-range projection method that doesn't take into account inflation, the projected value of the Government's capability to issue fiat currency and reserves in the amounts needed to fulfill Congressional appropriations, and re-pay its debts, the projected non-Government assets corresponding to government liabilities, the likely economic impacts of Government spending, surpluses, and deficits, the impact of accumulating errors on projections, and the biases inherent in pessimistic AND contradictory assumptions. It is a green eye shade method that ignores both economic and political reality.
If you want America to end deficit terrorism and austerity, and to have the fiscal policy space it needs to begin to restore the American Dream, then you need to defeat proposed policies or legislation which puts building blocks in place to bias fiscal policy towards austerity and the economic decline it will surely produce for ourselves, our children, and for their children. Proposed policies and legislation of this kind must be defeated for the following seven reasons. Read more about Beware of Policies and Legislation Based on the Generational Accounting Scam
Some time ago, in the pages of USA Today, Duncan Black, better known to some as Atrios voiced the immediate need for increased Social Security benefits of 20% or more even if it means raising taxes on high incomes, or removing the payroll tax cap on salaries.
Black is right about the need for increased benefits; but legislating that increase doesn't require increasing taxes. In fact, Congress should both increase benefits and remove the payroll tax entirely.
But how is that possible without greatly increasing “the national debt”? The answer to that one is easy. Don't tax or borrow to pay for it. Just mint a single one oz. platinum coin at the beginning of each fiscal year with a face value large enough to cover expected the cost of SS payments. Doing it that way will both take care of retirement needs and also provide a huge shot in the arm for employment, since the increase in Social Security benefit payments and the ending of the payroll tax won’t be offset by tax increases elsewhere that will depress aggregate demand. Read more about Yes We Can Pay for Increasing Social Security Benefits