Loyalty without truth
is a trail to tyranny.
|Monday, 11 July 2011 at 16h 28m 45s|
Herbert Hoovers 11 point plan: December 1931
This is a full month before the January 1932 Speech I posted below.
December 11, 1931 :
In my recommendations to Congress and in the organizations created
during the past few months, there is a definite program for turning the tide of deflation and
starting the country upon the road to recovery.
This program has been formulated after consultation
with leaders of every branch of American public life, of labor, of agriculture, of commerce, and of
industry. A considerable part of it depends on voluntary organization in the country. This is
already in action. A part of it requires legislation. It is a non-partisan program. I am interested
in its principles rather than its details. I appeal for unity of action for its consummation.
The major steps that we must take are domestic. The action needed is in the home field, and it
is urgent. While reestablishment of stability abroad is helpful to us and to the world, and I am
confident that it is in progress, yet we must depend on ourselves. If we devote ourselves to these
urgent domestic questions we can make a very large measure of recovery irrespective of foreign
That the country may get this program thoroughly in mind, I review its major parts:
The broad purpose of this program is to restore the old job instead of creating a made job, to
help the worker at the desk as well as the bench, to restore their buying power for the farmers'
products - in fact, turn the processes of liquidation and deflation and start the country forward
all along the line.
- Provision for distress among the unemployed by voluntary organization and united action
of local authorities in cooperation with the President's Unemployment Relief Organization, whose
appeal for organization and funds has met with a response unparalleled since the war. Almost every
locality in the country has reported that it will “take care of its own.” In order to assure that
there will be no failure to meet problems as they arise, the organization will continue through the
- Our employers are organized and will continue to give part-time work instead of
discharging a portion of their employees. This plan is affording help to several million people who
otherwise would have no resources. The government will continue to aid unemployment over the winter
through the large program of Federal construction now in progress. This program represents an
expenditure at a rate of over $60,000,000 a month.
- The strengthening of the Federal Land Bank System in the interest of the farmer.
- Assistance to homeowners, both agricultural and urban, who are in difficulties in
securing renewals of mortgages by strengthening the country banks, savings banks, and building and
loan associations through the creation of a system of Home Loan Discount Banks. By restoring these
institutions to normal functioning, we will see a revival in employment in new construction.
- Development of a plan to assure early distribution to depositors in closed banks, and
thus relieve the stress amongst millions of smaller depositors and smaller businesses.
- The creation for the period of the emergency of a Reconstruction Finance Corporation to
furnish necessary credit otherwise unattainable under existing circumstances, and so give confidence
to agriculture, to industry and to labor against further paralyzing influences and shocks, but more
especially by the reopening of credit channels which will assure the maintenance and normal working
of the commercial fabric.
- Assistance to all railroads by protection from unregulated competition, and to the
weaker ones by the formation of a credit pool, as authorized by the Interstate Commerce Commission,
and by other measures, thus affording security to the bonds held by our insurance companies, our
savings banks, and other benevolent trusts, thereby protecting the interest of every family and
promoting the recuperation of the railways.
- The revision of our banking laws so as better to safeguard the depositors.
- The safeguarding and support of banks through the National Credit Association, which has
already given great confidence to bankers and extended their ability to make loans to commerce and
- The maintenance of the public finance on a sound basis. (a) By drastic economy. (b)
Resolute opposition to the enlargement of Federal expenditure until recovery. (c) A temporary
increase in taxation, so distributed that the burden may be borne in proportion to ability to pay
amongst all groups and in such a fashion as not to retard recovery.
- The maintenance of the American system of individual initiative and individual and
This program will affect favorably every man, woman, and child - not a special class or any
group. One of its purposes is to start the flow of credit now impeded by fear and uncertainty, to
the detriment of every manufacturer, business man and farmer. To reestablish normal functioning is
the need of the hour.
DeLong | delong.typepad.com | 11 July 2011]
I love the 11th point of the plan. Taking responsibility and initiative is an important part of any
plan. Gotsta make sure the intended audience is reminded, lest they forget.
And look at point number 9, and remember that 16 months later all of the nations banks failed.
|Monday, 11 July 2011 at 16h 29m 3s|
Herbert Hoover : January 1932
This is Herbert Hoover's press conference in 1932. The speech comes before the stock market tanked
again, and all the banks failed in March-April 1933.
January 8, 1932 : I wish to emphasize to the full extent of my ability the necessity, as
a fundamental to recovery, for the utmost economy of governmental expenditure of all kinds. Our
people must realize that Government cannot continue to live in a depression upon the scale that was
possible in times of great prosperity.
The developments of the past week should give great assurances to the country. The public
statements of the Republican and Democratic leaders of the Senate and House show a real non-partisan
determination in cooperation with the Administration to assure the country of the balancing of the
Federal expenditures and income for the fiscal year beginning July 1st. The amount of taxes we will
need to impose for this purpose will depend entirely upon what further cuts we can make in
government expenditures. The budget before Congress represents a reduction of $360,000,000 in
Federal expenditures for the next fiscal year. I shall welcome any further reduction which can be
made and still preserve the proper and just functioning of the Federal Government. With the general
realization of the necessity of reductions in expenditures we should also at last be able to bring
about the wholesale elimination of overlapping in the Federal Government bureaus and agencies which
will also contribute materially to the program of economy.
With this program we are thus assured that we can maintain the full stability and credit of the
Federal Government by no increase in the public debt after covering the deficit of this fiscal year
and no further increase after the first of next July.
The balancing of next year's expenditure and receipts and the limitation of borrowing imply the
resolute opposition to any new or enlarged activities of the Government. With the assurances which
have now been given from the leaders in Congress I do not believe there is any ground for
apprehension by the public from the flood of extravagant proposals which have been introduced there.
It is true that these bills would imply an increase of Government expenditures during the next five
years of over 40 billions of dollars four or more then 8 billions per annum. The great majority of
these bills have been advanced by some organization or some sectional interest and are little likely
to see the light of day from congressional committees. They do, however, represent a spirit of
spending in the country which must be abandoned. I realize that drastic economy requires the
sacrifice of large hopes of expenditures promoted by such interests. However, I appeal to their
sense of patriotism in these times not to press their demands. They should withdraw the pressures
upon Government officials.
Rigid economy is a real road to relief, to home owners, farmers, workers, and every element of
our population. The proposed budget of Federal Government expenditures for the next fiscal year
amounts to about 4 billion dollars of which over $2,800,000,000 is for debt, military and veterans'
services, and nearly half the balance is for aid to employment in construction works and as aids to
agriculture. It is worth noting that the state and local government expenditures of the country
amount to nearly 9 billion. The Federal Government itself ofttimes contributes to increased state
and local expenditure by appropriations requiring a matching of money by the states. The result is
pressure upon state officials by the groups who will receive benefits from these expenditures and
makes them the unwilling victims of increased Government costs.
Our first duty as a nation is to put our governmental house in order, national, state and local.
With the return of prosperity the Government can undertake constructive projects both of social
character and in public improvement. We cannot squander ourselves into prosperity. The people will,
of course, provide against distress but the purpose of the nation must be to restore employment by
economic recovery. The reduction in governmental expenditures and the stability of Government
finance is the most fundamental step towards this end. It can contribute greatly to employment and
the recovery of prosperity in agriculture. That must be our concentrated purpose.
[SOURCE: Brad DeLong | delong.typepad.com |11 July 2011 ]
Most of the elite can't learn because they are stricken with a massive combination of inbreed
selfishness and pompous entitlement. They can't understand macroeconomics at all and hide behind
petty ideological pablum to justify themselves and their actions.
It's like mafioso's buying flowers for the graves of the shopkeepers they took out so they can
control the business.
|Friday, 8 July 2011 at 10h 37m 17s|
When you allow an institution to provide you with your identity and sense of self-worth you become
an obsequious pawn, no matter how much talent you possess. You live in perpetual fear of what those
in authority think of you and might do to you. This mechanism of internalized control—for you always
need them more than they need you—is effective.
[SOURCE: Chris Hedges | truthdig.org | 6
Chris Hedges was once a 15 year writer for the New York Times. What he says above concerns how the
controls the dissemination of information, or at least how much and by what form the information takes.
Those who mimic the paradigms of the corporate ruling class get promotions, visibility, and access.
Those who might have independent thoughts are surrounded by career whores, sychophants, and
snitches that get promoted by their bosses. Only the strong survive, or they resign and do
something else for a living.
|Monday, 20 June 2011 at 16h 5m 19s|
The End is Near
|Monday, 20 June 2011 at 15h 54m 13s|
Sarcastic American Investment Advice
I got this from bartcop.
If you had purchased $1,000 of shares in Delta Airlines one year ago, you would have $49.00 today!
If you had purchased $1,000 of shares in AIG one year ago, you would have $33.00 today.
If you had purchased $1,000 of shares in Lehman Brothers one year ago, you would have $0.00 today.
But, if you had purchased $1,000 worth of beer one year ago, drank all the beer,
then turned-in the aluminum cans for recycling, you would have received $214.00.
Based on the above, the best current investment plan is to drink heavily & recycle.
It is called the 401-Keg.
A recent study found that the average American walks about 900 miles a year.
Another study found that Americans drink, on average, 22 gallons of alcohol a year.
That means that, on average, Americans get about 41 miles to the gallon!
Makes you darned proud to be an American!!!
|Friday, 10 June 2011 at 17h 7m 42s|
You know its summer when ...
I put 3 posts on the same day.
But seriously, you know what the discussion is in France during a political campaign for office.
"Au lieu de toujours taxer le travail, il faut taxer le capital, déclare le candidat écologiste.
Je dis ça sans haine, je ne suis pas dans la lutte des classes, mais je préfère taxer les machines
plutôt que les hommes."
"TOUT PROFIT DOIT ÊTRE TAXÉ"
"Tout profit, quel qu'il soit, doit être taxé, estime encore M. Hulot. Il faut répartir
convenablement l'effort, car aujourd'hui, plus vous gagnez d'argent, moins vous participez à la
"Instead of taxing work, it is necessary to tax capital," stated the green party candidate. "I am
not hateful, I am not for the leveling of the classes, but I prefer to tax machines rather than
people." (Aside: isn't that an awesome line)
"All profits ought to be taxed."
"All profits, wherever they come from , ought to be taxed," Mr. Hulot says again. " It is necessary to
divide appropriately the effort, because today, the more money you earn, the less you participate in
the community and purpose of the nation."
I should say that I translated the French word "solidarité" as "the community and purpose of the
nation" which is what I thought was the best American equivalent of the French word that dates back
to the Revolution. "Solidarité" means what the French "three muskateers" phrase "all for one and
one for all" means.
Anyway, this is the current debate that is mentioned in the French newspaper Le Monde today. The
headline is "Nicolas Hulot en faveur de la taxation du capital" or "Nicolas Hulot is in favor
of taxing capital."
[SOURCE: Le Monde | 10 June 2011]
|Friday, 10 June 2011 at 17h 11m 1s|
Taxes are a constitutional power
The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the
Debts and provide for the common Defence and general Welfare of the United States; but all Duties,
Imposts and Excises shall be uniform throughout the United States;
[SOURCE: Government Archive site]
Some folks that I know and have met somehow believe that there is no constitutional authority to
collect taxes. This mythology has you believe that the IRS is illegal and unconstitutional, and that
there is no constitutional basis for the income tax.
"The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the
Debts and provide for the common Defence and general Welfare of the United States;:
How obvious is this? How Congress collects taxes is really up to Congress, but this matter had
never been in doubt. Taxes on wages really began during the civil war.
The reason the 16th amendment occurred, was due to the intransigence of the Supreme Court
majority which decided that the source of income to be taxed mattered in a famous court case called
the Pollack case, which came in response to a 1894 Tariff act that imposed a 2% tax on incomes over
$100,000 in today's dollars. The supreme court majority declared taxes on property and investments
were different than taxes on wages, so the 2% tax only applied to wages.
Justice John Marshall Harlan dissented:
When, therefore, this court adjudges, as it does now adjudge, that Congress cannot impose a duty or
tax upon personal property, or upon income arising either from rents of real estate or from personal
property, including invested personal property, bonds, stocks, and investments of all kinds, except
by apportioning the sum to be so raised among the States according to population, it practically
decides that, without an amendment of the Constitution — two-thirds of both Houses of Congress and
three-fourths of the States concurring — such property and incomes can never be made to
contribute to the support of the national government.
And that was the reason why even the Republican President William Howard Taft supported the 16th
amendment and set the process of securing the amendment's passage across the nation -- probably the
legacy Taft left for the nation.
The debate was never about Congress's ability to collect taxes or
tax wages. The debate was who would pay for "the
Debts and provide for the common Defence and general Welfare of the United States."
Notice that there are three parts to what government pays for. !) Debts , 2) Common Defence , and
3) General Welfare of the United States.
A lot of rabid libertarians see the government itself as something that is unconstitutional, or that
spending on "social" programs is not in the constitution. What part of "General Welfare of the
United States" do these folks not understand?
What the "general welfare" means in specific terms can be debated, but at the very least, the phrase
means something that benefits in some way the entire community.
|Friday, 10 June 2011 at 15h 39m 58s|
Krugman states the paralysis of coherent economic policy
No, the only real beneficiaries of Pain Caucus policies (aside from the Chinese government) are the
rentiers: bankers and wealthy individuals with lots of bonds in their portfolios.
And that explains why creditor interests bulk so large in policy; not only is this the class that
makes big campaign contributions, it’s the class that has personal access to policy makers — many of
whom go to work for these people when they exit government through the revolving door. The process
of influence doesn’t have to involve raw corruption (although that happens, too). All it requires is
the tendency to assume that what’s good for the people you hang out with, the people who seem so
impressive in meetings — hey, they’re rich, they’re smart, and they have great tailors — must be
good for the economy as a whole.
But the reality is just the opposite: creditor-friendly policies are crippling the economy. This is
a negative-sum game, in which the attempt to protect the rentiers from any losses is inflicting much
larger losses on everyone else. And the only way to get a real recovery is to stop playing that game.
[SOURCE: Paul Krugman | new york times | 9
|Saturday, 22 January 2011 at 3h 7m 38s|
Mid 1700s France
The creation of wealth inequality is unhealthy. Its the very fear of creating a long-term
aristocracy that the forefathers spoke of in their debates.
We are close to following the example
of France over the course of the 1700's when the yeomancy and the cottage industries and the city
industries and shop-keepers gradually felt the squeeze of the empire and the withdrawal of the
wealthy from the responsibility of paying for the costs of maintaining a functional empire. Of
course it is a bit more complicated, because the Aristocracy in France in some places did exist
since the middle ages, but in fact by the mid 1700's a lot of the members of the Aristocracy were
appointed or were out-right purchased by up and coming business people(the word "nouveau-riche"
stems from this time) so that they could get the "privaleges" of being a member of the aristocracy
-- less to no taxes being one of the perks. The old line Aristocracy dissolved into slow bankrupcy
and sold off the state to anyone who paid. Public officials were appointed and usually incompetent
as well as corrupt. And the church was worse. The church had its own laws and privaleges and got
separate taxes, while also usually being dominated by the very local wealthy who purchased
aristocratic rights. Man it got seriously fucked up.
Eventually the problems became so huge and
obvious that a cry arose to renew the ancient Parlement and elect legislators to solve the problems.
This was 1787. The costs of the "American Adventure" (as it was called in the contemporary lingo)
caused the 2nd bankrupcy of the crown. Two famines occured in two years in a row and the price of
bread skyrocketed. The "storming of the Bastile" occurred after the Parlement was elected when the
people feared the aristocracy was on the way to banish the Parlement. France took to the streets.
Farmers grabbed their pitchforks. Literally the entire country shook to the fucking core.
I wonder all the time how symmetrical is our own situation to France in the 1700's.
|Tuesday, 14 December 2010 at 19h 36m 54s|
Simple Economics Realities
I don't know what to think of this comment by "sisco66" but I find it somewhat different then what I
myself would think, and is at least worthy of a read.
12/14/2010 08:38:30 PM EST
posted by sisco66
Capital gains tax cuts work in both directions. When the tax cuts are first put in place there is
always a lot of selling and large dividend distributions in the first couple of years. After that
it’s just insider looting. Allowing those tax cuts to expire will have the same effect injecting
nearly 2 trillion dollars into the US economy without having to borrow it from the Chinese.
Wealth is money extracted from the economy. The economy is a collection of individuals
performing services and producing goods that add value and wealth to the system as a whole. This
includes education, harvesting of natural resources, asset protection, and the infrastructure within
which these values are transported.
Estates are the summation of wealth that was extracted from the system by an individual. When
that wealth is extracted in the time of massive deficits and neglect of the system as a whole, the
system should reclaim that wealth.
The Federal Reserve has a “dual mandate”. The mandate requires that the Fed maintain 100% employment
and price stability. Does it make any sense that fed can handout 3.3 trillion in backdoor bank
subsidies; allow brokerage houses like Goldman Sachs to have direct access to untold trillions from
the Fed discount window while allowing 100’s of billions to be paid out in bonuses but it can’t
muster 20 billion to extend unemployment?
Insanity is borrowing 900 billion for tax cuts in order to secure 18 billion for unemployment.
[SOURCE: TheYoungTurks | comment | 14
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