The OFA official view of a SOLUTION to the MESS we're in, includes the following:
By making bold and wise investments in healthcare, energy and education, and restoring fiscal accountability to government spending, we will cut costs for American families and businesses, create good jobs that can’t be shipped overseas, give our children the education they need to be competitive in the global marketplace and leave our grandchildren a legacy they can be proud to inherit.
Is there something missing above?
I say there is. The view above does not put ORGANIZING FOR AMERICA in any position to challenge markets and their illogical acceptance of unemployment, poverty and the shortage of money in circulation compared to urgent need.
The President praises our belief in government of and by the people for the people. Yet we do not govern for ALL the people: we appear to govern for the few people who are rich and against the very many who are not.
We agree that EVERYONE ought to VOTE. What about WORK? Should not everyone willing to work HAVE A DECENT JOB OR BUSINESS OF THEIR OWN?
If we answer "yes" to this vital question, it will take MONEY to make it become a fact.
So we must create by law money enough for economic democracy. This will mean that we must be able to prevent any worsening inflation as we finance full employment and an end to poverty.
All this we did from 1942 through 1945. We did it with money created by our own government and its central bank. And we prevented inflation by law and encouraged saving -- in order to hold money demand for goods and services down to match the supply of those on sale at affordable prices.
All of the above speaks to MONEY in the title of this blog. DEBT is in the title because money created by our central bank is initially free of debt. Therefore, TAXES are not necessary to pay any of it back to ourselves.
TAXES are never necessary to fund the nation. We fund our nation with our MONEY. But taxes may be necessary to reduce MONEY not saved by the people. What sort of tax is that?
It is not an income or personal tax. It is a tax on sales of luxuries designed to be politically popular.
The system we must have will see debt replaced by money saved in inflation protected individual estate accounts.
People will be free of debt. When they finally buy great luxury, the price will include a tax to absorb all excess money.
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http://ips-ideas.wikispaces.com/OFA+Blog
Dear Mr. President:
In spite of the fact that you have addressed more severe problems in fewer days with better results than this nation expected -- by the next senatorial election you will be judged on unemplyment (jobs), the value of 401 K's and homes, and (unless Health Care, Energy Independence, Eduacation and Infrastructrure programs are noticeable in high gear) on the American domestic car industry-- expecially its marque names.
I fear your rescue of Wall Street, with out enough jobs and little-guy net worth improvement, you will lose the Senate. Thereafter "yes we can" will enter history as "no, we can't ".
Will it be your fault? YES !
Roosevelt never created the jobs or little-guy net worth gains he should have and coud have -- between 1933 and 1941. His praiseworthy performance came only after government contracts replaced all critical consumer demand.
You must do the same today: open your checkbook for state contracts and federal contracts.
Request the people whose country this is to demand WW II financing by our central bank of all contract payments -- until economic growth is firmly and unalterably rooted.
We may end up with many subsidy programs, similar to agriculture, to keep demand up with supply and supply up with need, as well as with monetized demand. If prices vecome a problem, explain cost plus pricing to the people and you will be supported if you have executed growth as was done form 1942 through 1945.
Federal Investment in 21st Century Wants a Capital Budget
Will the President borrow from China and Japan to finance American LEADERSHIP in energy for the 21st Century????
Or will he create the investment we need by building the new energy systems we cannot do without????
In WW2 did we BORROW or BUILD the arsenal of democracy???? We built first and borrowed later!!!!
Let's forget PAY GO. Let's do what must be done: organize, train, build, contract , create, pay our federal bills with the help of the Federal Reserve of the USA -- not the CB's of other nations!!!!!
Why am I angry? Because President Obama, after winning an improbable but historic election, turns out to be unimpressed with basic economic facts. He assumes the budget system we have ought to dictate our spending allowance to do for the material foundation of the American dream what he has done for for its soul. The President has turned racism out on its ear — never again will a child of an ethnic minority be born never to be elected president. God in Heaven is pleased. Martin Luther King looks down from Mount Rushmore — alive in the White House if invisible on the mountain. But the simple truth about business and personal income as a measure of America's potential economic output has not penetrated the President's mind. Only an ambitious investment budget, based on liquidity to be furnished by our central bank, coupled with full training and full employment of everyone anxious to work, can establish the spending and lending the federal government owes the sates and their subdivisions, and the industries and individual Americans, in order to reach our output potential. Taxes assessed against sales, wages, profits and income in general, are much to small to drive the American economy ahead — and into the promised land.
Because President Obama, after winning an improbable but historic election, turns out to be unimpressed with basic economic facts.
He assumes the budget system we have ought to dictate our spending allowance to do for the material foundation of the American dream what he has done for for its soul.
The President has turned racism out on its ear — never again will a child of an ethnic minority be born never to be elected president. God in Heaven is pleased. Martin Luther King looks down from Mount Rushmore — alive in the White House if invisible on the mountain.
But the simple truth about business and personal income as a measure of America's potential economic output has not penetrated the President's mind. Only an ambitious investment budget, based on liquidity to be furnished by our central bank, coupled with full training and full employment of everyone anxious to work, can establish the spending and lending the federal government owes the sates and their subdivisions, and the industries and individual Americans, in order to reach our output potential.
Taxes assessed against sales, wages, profits and income in general, are much to small to drive the American economy ahead — and into the promised land.
In press conference today the President claimed his patient approach to jobs and small business recovery served high unemployment locations as well as we can at the moment.
I say -- not so.
I say the approach the President spoke of that is taken by cummunity employment prep centers can be sponsored for all communities now.
All private employment agencies should immediately be granted the full tax exemption of churches.
They should all be encouraged to offer complete preparation for jobs and self-employment.
In return for their tax exempt status, local, state and federal employment services should be established to compete with the private agencies.
With all that effort going into jobs and micro-loans and other self-employment plans, we can take unemployment down at a higher rate than now.
MAGIC BULLETS,MORAL HAZARD, RECOVERY TIMING
The President stands accused of foot-dragging to time economic recovery for political advantage.
The issue is how fast recovery, (that is, prosperity,) can be returned to the middle and working classes—if the President of the United States really wanted it to happen.
The critic is Rush Limbaugh—speaking for the Republican party.
That Republican party has opposed every spending program whose aim was rapid recovery that the President has proposed. So he is a false character to be making accusations in the first place. But instant recovery of individual job and retirement income and establishment of long term protection against foreclosure of a primary residence, which is what a magic bullet is asked to do, is certainly possible in a nation with the potential full employment wealth of the United States—when it is fighting for its life against accounting numbers all alone. In the Cold War, we faced imminent certain death from real men with real nuclear bombs. Today we face numbers without faces, weapons or power of any kind. Debt has ever proved it was made to be reorganized. Cash has ever proved it can be recalled the moment better cash is necessary. We are a nation of law. And our law has sufficient power because our people are the object of its protection.
That Republican party has opposed every spending program whose aim was rapid recovery that the President has proposed. So he is a false character to be making accusations in the first place.
But instant recovery of individual job and retirement income and establishment of long term protection against foreclosure of a primary residence, which is what a magic bullet is asked to do, is certainly possible in a nation with the potential full employment wealth of the United States—when it is fighting for its life against accounting numbers all alone.
In the Cold War, we faced imminent certain death from real men with real nuclear bombs. Today we face numbers without faces, weapons or power of any kind. Debt has ever proved it was made to be reorganized. Cash has ever proved it can be recalled the moment better cash is necessary. We are a nation of law. And our law has sufficient power because our people are the object of its protection.
So false and phony as Rush Limbaugh may be, he has asked why people are out of work and bills that must ve paid to protect America and its people are allowed to threaten the most powerful nation in history? The question deserves a straight answer?
The President's answer is that he is afraid of hyperinflation in the end and of moral hazard right away: if he were to pay a lot of bills, the people he bails out would quit their work and all go fishing.
And he has another answer: his National Security Agency knows what everyone is saying—but there is no agency that knows what bills to pay except for the bills of the worst economic actors in the nation.
I will not accept his answers. They appear to be based on a plan to stay in office while I get kicked out my house and on to the street. I say he should fire all his staff and get the Center for Full Employment and Price Stability at the University of Missouri, Kansas City, especially Mathew Forstater, into the Oval office for a chat. Mathew will explain how to pay some bills that bring prosperity overnight. He will explain further, how to make hyperinflation impossible with enough computation aimed at the successful financing of all the long term economic solutions the President has already designed.
We cannot worship lowest recorded cost producers when only a prize jury knows quality more often than not. Maximum feedback of current results to match with intended results must be programmed. Minimum power must be attached to greed and corruption that can never be zeroed out. If we would balance our military requirements to our national security needs, we must also balance money and employment to these same needs and more. More will be defined by a full employment budget and a central bank that works with price controls and common purpose to attract money into indexed savings where it can, and with the sales tax authorities where money must (without doubt) be taxed away to hold its value.
We cannot worship lowest recorded cost producers when only a prize jury knows quality more often than not. Maximum feedback of current results to match with intended results must be programmed. Minimum power must be attached to greed and corruption that can never be zeroed out.
If we would balance our military requirements to our national security needs, we must also balance money and employment to these same needs and more. More will be defined by a full employment budget and a central bank that works with price controls and common purpose to attract money into indexed savings where it can, and with the sales tax authorities where money must (without doubt) be taxed away to hold its value.
Life Saving Combat Robots, Energy Independence, Greater Security, Full Employment
On the PBS News Hour Bian Hart, Engineer, presented life saving combat robots he has developed--after his son John Hart, US Army, was killed in Iraq -- five years ago by in an ambush America was then unprepared for.
We have had time to since then to mobilize for production of life-saving robots (and for energy independence, too). If we do not do this soon, this President will be at fault.
The industrial heartland is prepared to bring us energy independence and the way to save lifves as we protect this nation from assymetrical war.
Brian Heart and his late son John should not be left unsupported by the great corporations of America looking for work theirskilled work-force.
By coincidence, 15 May 2009 is the day a Killer Application is being launched by Worlfram and a New Kind of Science (NKS) via its Alpha peoject. The Killer Application needed in Michigan and the rest of the global economy can be called Full Employment Money and Pricing. On the related NKS Alpha project blog I left a message:
What the world at present most needs is a money supply geared to necessary sales at full employment of all working age adults.
..... Stock-keeping unit and supply chain data, together with population maps would be a beginning that computed target prices (and all the financial accounts that were replacing current accounts based on debt, instead of on money as--defined by functional finance).
..... This would be a killer app if we were to apply purpose ahead of rules–and that purpose reflected a future less morbid than the past.
Soon as we got a Democrat in the White House, a bunch of Senators claiming to be Democrats rushed to show how independent they are, declaring they won’t necessarily vote in support of the President’s agenda that he was elected to enact. As a Hoosier, I’ll put Indiana’s Evan Bayh (pronounced “Bye” or “Buy”) at the top of the list.
Mr. Obama is right to allow politicians to vote their “consciences” (oxymoron is obvious). Where he’s wrong is in promising to raise money for them. I won’t give one penny to support ANY Senator who fails to toe the line and earnestly help the President do what he promised. Many promises were made. If they’re not kept because Democrats in the Senate support powerful banks and other lobbies against the people who support Mr. Obama’s agenda, then Bayh-Bayh to them come the primary.
If self-described Democrats in the Senate refuse to push through the President’s agenda, then it’s up to us to FIND SOMEONE WHO WILL. I won’t give money to or raise money for Evan Bayh or Arlen Spector or any of the approximately eight others who have declared themselves “independent” of this cause.
They want our money and votes only to betray us to the powerful lobbyists who own them. We need to start work right now finding better people to run against them in the primaries and start raising the money they’ll need to win.
We kept McCain and Palin out of the White House. We certain can put Bayh, Specter and those other eight “independent” Democrats OUT of the Senate. CHANGE is coming to America.
If there is one idea only, advisers on efficiency and waste avoidance should try to get the President to understand, it is that America (and the imitative global economy,) at the moment, have the direction of fiat money flows aimed the wrong way--and the cost of this error in real wealth is trillions of trillions of dollars.We should not seek to merely help commercial profits and sales generate sufficient tax revenue to raise our monetize-able wealth high enough to “feed us all”.….. Rather we should plan government spending and operations to accomplish the long term goals of the President (security, energy, education, health, peace, etc.,) AND plan to achieve full employment, savings, production (supply), and price level goals such that necessary wealth is produced and necessary tax revenues are minimized or zeroed, to change the basic computation of the money supply to rest on priority production for use or sale and NOT on debt or commercial profit.Full employment–because we are what our job is–-and that is nearly as important as the spendable income we need.Fiat money supply computed on production not taxes because–-if we index (protect) money-savings from inflation (TIPS bonds, etc.,) and we track financial and logistical data as carefully as the NSA tracks overheard information, we will be able to replace taxation with savings-–until money wholly reflects real wealth and not debt.….. If prices ever threaten to spiral up and out of control, anti-inflation sales taxes would be imposed.The current fiat money supply system and income tax system are inefficient. The revolutions in materials, biology, information, and business sciences are not being allowed to reward humanity with anything like their potential.
Marxists and socialists may have failed at government planning. The above systemswould not replace private production and planning--they would merely put the government team or horses in front of the heavily loaded wagon instead of behind it.
Even the idea that the Taliban could possess nuclear material is harmful to our national security. The President should declare that and have spies and satellites vigilant in Pakistan. In the event Pakistan military forces are overrun near sites containing nuclear weapons or nuclear energy material he ought to immediately order those materials utterly destroyed. The Taliban would use those materials in a dirty bomb. It won’t be enough to drop cruise missiles on them because that would merely scatter the nuclear material around, where Bin Laden’s people can collect it. Mr. Obama should be prepared to nuke them, and he should do it immediately, before materials can be relocated. Many lives would be lost in such an action, but they would not be American lives. While all life is precious, President Obama must act decisively to protect our lives above all others.
We’re still waiting for our middle class cut Mr. President. Huh??? We’ve already gotten our tax cut but most people don’t know that because the White House hasn’t hammered the message home. President Obama has delivered a tax cut for 95% of working Americans but Republicans are still drowning us in noisy claims that the president is raising taxes.
We are actually paying companies to ship our jobs overseas. Corporations receive tax cuts for outsourcing jobs to other countries. The president wants to eliminate those tax breaks, saving us $210 billion over the next four years. The White House needs to drive that message home tirelessly.
Within this week's comment by our President, on the flu, was a repeated commitment to use our common sense and the best that legitimate science has to offer. The President promised to do this-- and so I voted for him. How about recovery and reinvestment? What does economic science offer? What is common sense? There are at least two approaches offered by a mixture of common sense and legitimate economics: One approach favors the rich-- do as little as possible and wait for markets and law-makers to bring about a rebound (provided revolution does not hit the streets); the second and better approach favors the poor and whole middle class-- do as much spending without taxes as possible, and be prepared to mop up unsaved excess money if spiraling inflation seems to be inevitable. Our President has not studied Abba Lerner and his functional finance and proof that taxes are not for funding-- but are rather to prevent inflation. If the President demands his team explain how to spend on the scale of WWII to immediately lead the global economy out of danger, following Lerner's and WWII financing tools, he may do as well for economic science as he has done for the flu.
Please read:
http://www.ustaxreform.us/91308.htm
It's by Mathew Forstater and echoes Abba Lerner's FunctionaL Finance Tax Minimization idea
Rupert Murdoch and his Faux News netword have every right to refuse to air the president’s news conference touting his first 100 days in office.
The White House has every right to refuse to grant press credentials and access to the White House press area to “Fox News”, not out of any retaliation but ONLY because the company really does not meet the requirements to be defined or qualified and journalists.
Even now, when the president’s remarks haven’t been written, we all can predict the Fox News response and “analysis”. That’s not news, it certainly isn’t analysis, and it is even a response because it’s prepared BEFORE the statement it claims to be answering.
We have every right to boycott Murdoch's businesses and their subsidiaries and programs.
QUESTION: If a nation issues too much money, its money loses too much value: suppose all nations acting in concert issue more and more money-- until full employment is reached. Will their money hold value if they do not issue more?
ANSWER: Yes. Their money will hold value. But many nations acting in concert is aomething not likely to happen.
QUESTION: Did Obama ask for such action in concert last week in connection with multinational stimulus packages?
ANSWER: Yes.
QUESTION: Who's to blame?
ANSWER: Obama. He wasn't plain enough in explaining what we (nations) need.
Substitutes for scarce supply have been found-- but not for scarce monetized demand: ..... Is Barack Obama BLIND ? In his FOUNDATION speech (built on rock and not on sand) the President laid down a challenge-- and no one has answered it yet-- he said: ..... "we see a vision of an America's future that is far different than our troubled economic past." He did NOT say, we have lost financial wealth-- but NOT our REAL wealth, (the homes, food, factories, research laboratories, skills and resources, etc.,) with which we built our wealth and power in the first place. ..... Built them when monetary force was arrayed to motivate the work that turned time, skill and sweat into results for all to see and use. WHY did he not say this? WHY did he not discuss in any detail the difference between "inadequately resourced supply systems" and "inadequately monetized demand systems"? WHY INDEED? Because, IF he had he might have opened our minds to resetting our monetizing accounts to match earlier agreement between real wealth and its future use to protect civilization from the idiocy of false and flawed finance and accounting systems. We are wasting this crisis by destroying our middle class. Were Obama wiser and tough enough, he would have offered the upper middle class complete protection of their savings (just evaporated)-- in return for establishing a safety net below the lower middle class-- (to move every poor person out of poverty and under the protection of that net.) It's still not too late for Obama to strike. The next crisis we experience will offer the crazies a chance to repeat the wars of the 20th Century: never again will the time be so perfect to enact the Second Bill of Rights and turn technology loose to build the material foundation for a truly classless common sense world. Monetize rational demand, reduce and write-down debt to market values, move with a will of iron on energy, environment, education, public and neighborhood health clinics,infrastructure, inflation-protected savings, and plain language rules and regulations written on Madison Avenue, with legal and accounting reform that would please Charles Dickens. It's nice to have a thoughtful president. We will never have another with the upper middle class prostrate-- ready to make common cause with sanity, science and poorer people.
