Avoiding Depression 101

Unemployment over 10%, defaults on mortgages still rising, states on the verge of bankruptcy: What do we do? Here are some unorthodox methods open for discussion.

First: Increase employment. Cut employees hours by 10 % and have the government subsidize the difference in wages for participating companies. The workload remains the same, so employers hire 10% more people to make up the difference. It's working for Germany.

Second: Institute MAXIMUM wage laws. The CEO wants $10 million a year? Well, he or she cannot earn more than 30x (pick a number, currently it is over 400x) of the wages of the lowest paid employee. At 30x, I'll manage on $333,333.33. How about you? When working class people have money, they spend it; when rich people have money, they hoard or gamble it. Duh. This will encourage living wages for employees and discourage Board of Directors from awarding obscene salaries.

Third: Restore manufacturing. Withdraw from the World Trade Organization, repeal all "free trade" agreements, and impose matching tariffs and quotas on all nations that the U.S. imports from. For example, South Korea limits U.S. automobile imports to less than 7000 and we imported over 600,000 of their automobiles. And coming soon: Chinese automobiles. Our tariff on China: less than 2%, their tariff: 19%. Yes, the Koreans and Chinese are protectionists, we should be protectionists too. Let's not stop there, include textiles, automobile parts, you name it.
Until the U.S. Civil War, the U.S. Treasury was fully funded by tariffs. Alexander Hamilton, one of our most conservative founding fathers, believed in protecting domestic manufacturing. The argument can be made that one of the reasons the American Revolution was fought because the British would not allow the colonies to manufacture goods, only export raw materials (George Washington "imported" a tailor to make his inauguration suit because there were none here).

Fourth: Enforce anti-trust laws: Too big to fail, too big to exist (think Wall Street). Merger and acquisition mania started in the 1980's and went berserk in the 2000's. It's not just banks, it's energy, communications, and retail. Small business does not stand a chance until they can compete against these giants (See step 3 Wal-Mart). Break them up like Teddy Roosevelt did.

Fifth: Cut the corporate tax rate to 25% and eliminate ALL tax loopholes. Currently, corporations account for less than 10% of treasury revenue (before the 1980's, it was over 25%), you and I pick up the rest of the tab. Time for them to pay their fair share. After all, they use the roads, power lines, and courts more than we commoners and we pay for it with our tax dollars. If you do business in the U.S., you pay OUR taxes (hear that, Dubai-based Halliburton). No more Cayman Island headquarters.

Finally: End the empire. Institute an UNCONDITIONAL draft for the military. We'll exit Iraq and Afghanistan tomorrow when politicians and lobbyists have to send their children to die. Close the over 600 foreign military bases not on our soil (How many other nations have foreign bases? India has one.). Cutting appropriations to the military industrial complex (Defense budget over 50% of U.S. discretionary spending) by 20% amounts to over $100 BILLION. Does the U.S. really need to spend more than the rest of the world (combined) on "defense?" That's offensive (pun and cliche intended).

Stay tuned: Campaign Finance Reform, repeal "No Child Left Behind," Medicare Part E (E is for everyone), progressive taxation, and Laissez-Faire Socialism.

Universal Healthcare in China?

What do they know and how did we miss this?
Beijing proposes spending $124 billion to subsidize basic medical coverage and overhaul hospitals.
Here's the link:
China plans universal health care-N.Y. Times

"The first rule of Project Mayhem is..."

Ah, the first rule of Fight Club and Project Mayhem. If you haven't seen the movie Fight Club, you have no idea what I'm talking about. If you think the movie is about a bunch of guys fighting each other in secret clubs, then you need to watch the entire movie (or at least skip through the violence and gore) for the final scene.

In light of the latest news from the credit card companies, this could not be more appropriate. Read the latest bit of chicanery on their part: Credit card catch (Notice it was released on a Friday night for the slow news day Saturday).

I'm not suggesting we do what they did to the the credit card companies' buildings in Fight Club. We can figuratively accomplish the same result through smart legislation. It is time for a reset or at least usury laws when it comes to lending.

Notice in Candace Choi's article variable rates are tied to the prime rate, currently at around 3.25%. Yet, the federal rate that the banks loan to each other is .25%. The new floor (minimum % rate) for credit cards will be 10%. In reality, you will be paying anywhere from 15% up to 29%. Nice work if you can get it.

Side note: Why don't we hear about loan sharks anymore? The credit card companies put them out of business.

Oh, The first rule of Project Mayhem is we don't talk about Project Mayhem.

What Do We Reall Know...

Bernie Madoff was sentenced and everyone cheers, Goldman Sacks our economy and no one hears. A must read:
Goldman Sachs Sacks the U.S. Economy

It's Torture.

The Obama administration is trying to block the release of about 60 photos that show the "enhanced interrogation" techniques used in "camps" throughout the world. In the age of the internet, this is virtually impossible. I found some of them simply by entering "Sydney Morning Herald, torture photos" into my search engine.

The fact that Darth Cheney agrees with the Obama administration should send up the crimson flags. Sorry guys, it's not up to you, the court decides.

In my opinion, the pictures (or snaps as the Aussies call them) should be released and those responsible should be tried. Not just the ones who performed the torture, also those who authorized it. I mean you King George, Lord Cheney, et al.

See for yourself and decide if this is a little more than harsh. Don't worry about "inflaming" the rest of the world, they already know. Warning: the following content is graphic.

Torture Photos

The Democrat Socialist Party

OXON HILL, Maryland (CNN) — 'Members of the Republican National Committee appear to have reached a compromise that would let GOP leaders avoid a possible dispute over a controversial resolution that calls on Democrats to re-name their party the "Democrat Socialist party."' For more on this go to:

RNC Article

Seriously? This is the republican solution to all that is wrong. This amounts to nothing less than schoolyard name calling when you don't get your way. What's next? Tag President Obama with labels like "The Anointed One" or "The Messiah?" Never mind, already done.

What purpose does this serve? Another distraction for the public to be diverted from the Republicans complete lack of new ideas. I'll start taking the RNC and the G.O.P. seriously when they agree to change their name to the "Grand Obstructionist Party" or the "Greedy Old Party."

Perhaps, this is the "Republics" way of labeling the Democratic Party as socialists and leftists. The fact is, for eight years, they moved this country so far to the right (think fascism) that anything towards the center appears as socialism.

Depressed?

The first world war was originally called "The War to End All Wars" and "The Great War." Then, along came Hitler, Hirohito, and Mussolini. Pearl Harbor sealed it and we had "World War II." The "Great War" was relegated to "World War I."

After the stock market crash of 1929 we had the "Great Depression." Here we are in 2009, experiencing an "extended recession" or "repression." If it turns out to be worse than the 1930's, will it become "Great Depression II" or the "Greater Depression?"

If it is not quite as bad, will it be the "Good Depression?"

Charles Krauthammer said the AIGers receiving these bonuses should be subject to public executions (bring in the guillotines) and Republican Senator Grassley, in so many words, said they should commit Hari Kari.
Since this is obviously not pro-life, are they pro-choice?

Bonuses?

The corporate media and congress has spent an entire week on AIG's bonuses? If I hear outraged one more time I'll be outraged! They are contracts, they can be renegotiated (don't give them the next $30 B until they do). Ask GM and the UAW. Enough already.
This is a distraction. The bonuses are less than .1% of the bailout money given to AIG. What about the $170 billion of taxpayers money they've already received for their bailout?
Where is the investigation? Shouldn't there be subpoenas and indictments?
The real story is not bonuses. It's criminal activity.