Wall Street Media Fear Major US Downturn with Interest Rates Near Zero, No Chance For Monetary or Fiscal Stimulus
Wall Street Media Fear Major US Downturn with Interest Rates Near Zero, No Chance For Monetary or Fiscal Stimulus; Bloomberg: Is US Short on Options to Confront Next Crisis?; Wall Street Journal: Does US Lack Ammo for Next Economic Crisis?; Tax Wall Street Party Plan to Nationalize Federal Reserve, Issuing a $6 Trillion 0%, 100-year Credit Stimulus for Infrastructure and Education Is the Needed Recipe for US Economic Recovery with 30 Million New Productive Jobs
UFAAUnited Front Against Austerity | TWSPTax Wall Street Party
Morning Briefing | Thursday, August 27, 2015
Amidst the ongoing fluctuations of global financial markets, worry grows in the mainstream media and Washington about what options remain to fight a potential new recession. Reports spread fear that the traditional monetary response by the Federal Reserve to lower interest rates or buy up toxic assets will be useless as interest rates approach zero and the Fed balance sheets of toxic derivatives bought during QE1-3 exceeds $4 trillion. The government’s option to create a fiscal stimulus through deficit spending is limited by a growing national debt and deficit, not to mention the inherent bankruptcy in both political parties.
Writing on August 17th, the Wall Street Journal bemoaned the limited options available against a dip in the economy. In their narrow view, the only option for the government would be to create a bipartisan plan including fiscal stimulus on the one hand and agreements to reduce the federal deficit by cutting programs on the other. This would appease Democrats, who give lip service to the fact that austerity slows down the economy, while placating rabid Republicans intent on shrinking the size of government. Both sides of the political aisle make no mention of government spending shrinking 3.3% since the 2009 so-called recovery began. Yet they both continue squandering valuable time with their useless policies; Democrats have done nothing substantial to increase public spending to help those in dire need of assistance and Republicans still foam at the mouth at chances to bring about a neo-feudal society run by oligarchs. Therefore, any bipartisan agreement between these two bankrupt parties is doomed to failure.
What is missing entirely from both the Wall Street Journal and the analysis put forth by Bloomberg is an understanding of the different ways to respond to a depression. There is much talk of at least two ways, one is the hot money monetary policy of the Federal Reserve’s Quantitative Easing program; the other is the Keynesian fiscal policy of government spending embodied by the 2009 stimulus package.
Both articles leave out a third, and worst possible, reaction to depressions concocted by the likes of Joseph Schumpeter and Andrew Mellon. The former endorsed the wild belief of “creative destruction” in markets – that all economies naturally purge themselves in a crash – the latter, following this ideology, advised Herbert Hoover that the solution to the Great Depression was to “ liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate…it will purge the rottenness out of the system.” Here we see the ideology of the Paultard Libertarian movement in all of its Austrian School inhuman cruelty. Rugged individuals will reconstruct them; it’s too bad if people die.
The only correct and successful response, and the options and ammo that the Wall Street Journal, Bloomberg, the government and the Federal Reserve are looking for, is a credit stimulus program of nationalizing the Fed either in whole or at least in part and making cheap credit available for production. This would be, in effect, a reversal of the hot money Quantitative Easing program that means the government essentially subsidizes worthless derivatives trading. The toxic derivatives bought by the Fed would be put through the shredder and instead, a $6 trillion window would be opened at the Federal Reserve either by law or direction of a strong president. This window give $5 trillion to infrastructure projects in various states and local governments and permit any business person or entrepreneur to get cheap credit for physical production through a local commercial bank. Students would be given a $1 trillion dollar window to refinance student loan debt at 0% for an indefinite period and a new workforce would be educated in the technologies necessary for production in 2050; this means an education in science and mathematics that can utilize the properties of nuclear fusion, lasers and advances in biomedical fields. Interest rates would converge on 0% for up to 100 years as needed. At least 30 million new jobs in the private sector would be created by this plan.
A program such as this would resemble Franklin D. Roosevelt’s Lend-Lease program that saved the world from fascism in the 1940s and led the United States to near full employment. It would also rein in the lawless Federal Reserve, eventually putting it under the legal control of the treasury department as a national bank on the model of Alexander Hamilton’s First Bank of the United States.
The Wall Street Journal, Bloomberg and all other media publications now no longer have any excuse to fear a lack of options in response to a new dip in the economy. The option described above has been available since the founding of the United States and only obscured by oligarchs who fear a dirigistic nation-state under a powerful presidency geared towards productive economic goals and enriching its population.
Allen’s Friends in Turkish Government, Feeling Heat, Are Compelled to Deny They Betrayed US Military Secrets to Al Qaeda; so #FireAllen4ISIS !
The Turkish government has hastened to issue a denial of the reports from the McClatchy DC press organization, re-published and expanded on in our own Daily Briefing, revealing the role of their government in the ambush and capture of Division 30 troops made up of US trained Syrian rebels. In a statement released on Wednesday, Turkish Foreign Minister Tanju Bilgiç said,
“The report claiming that our country is connected with the incident of the first group of trainees being kidnapped by a terrorist group during their return to Syria is totally a figment of the imagination…Alleging Turkey has a relationship with groups that are terrorist organizations is a purposeful and flagrant untruth.”
The outrage by Turkey is an attempt to cover for Erdogan’s continuing scheme to impose the influence of the Muslim Brotherhood over northern Syria by supporting the most extreme groups with logistics and supplies. The exigency of the Turkish denial points to their fear that they will be subject to the ire of world public opinion if Erdogan is exposed as the Caliph of the genocidal ISIS organization in the Middle East.
As our Daily Briefings has indicated, Turkey is not only working with radical groups in Syria, but are the main source for militant training grounds, supplies to flow in and out of Syria and the hospitalization of wounded jihadists. Facing these charges is impossible for Erdogan as it would—and should—result in Turkey being ousted from NATO and him being overthrown by the people and military of Turkey in the aftermath.
Of course, the only reason Erdogan is able to save face is with the support of General John Allen and his clique of seditious personnel in the State Department and Pentagon. Press agents and spokesmen from the Pentagon have also issued a denial of Turkish involvement in alerting al-Nusra to the plans of Division 30. This is the least they can do in order to save their own project of constructing a secret army with Erdogan’s help in the Middle East in order to further destabilize existing nation-states like Syria, Iran and eventually Russia.
If the truth is to be fully brought to light, General Allen must be fired immediately and put under Congressional investigation and questioned on his actions taken as leader of the anti-ISIS coalition that has been a continual failure.