Incorporates PKE and MMT.
Social Democracy For The 21St Century: A Post Keynesian Perspective
A Proposal for an Alt Left Political Program
Nevertheless I am here to suggest to you that, despite the fact that the war state with all its private allies appear to be riding as high as ever, the historical circumstances may now be favorable to a frontal challenge to the war state for the first time in many year.
First: the Sanders campaign has shown that a very large proportion of the millennial generations do not trust those who hold power in the society, because they have rigged the economic and social arrangements to benefit a tiny minority while screwing the vast majority – and especially the young. Obviously the permanent war state’s operations can be convincingly analyzed as fitting that model, and that opens up a new opportunity to take on the permanent war state.
Second: U.S. military interventions in Iraq and Afghanistan have been such obvious disastrous failures that the present historical juncture is marked by a low-point in support for interventionism reminiscent of the late Vietnam War and post-war period (late 1960s to early 1980s). Most Americans turned against Iraq and Afghanistan about as fast as they had against the Vietnam War. And the opposition to military intervention in Syria, even in the face of overwhelming media coverage that encouraged support for such a war was overwhelming. A Gallup poll in September 2013 showed that the level of support for the proposed use of force in Syria – 36 percent – was lower than that for any of the five wars proposed since the end of the Cold War.
Third, the very obvious bankruptcy of the two parties in this election have made tens of millions in this country – especially young people, blacks and independents – open to a movement that connects the dots that need to be connected.
With those favorable strategic conditions in mind, I suggest that it is time for a newly invigorated national movement to come together around a concrete strategy for accomplishing the goal of ending the permanent war state by taking away its means of intervening in foreign conflicts
Although the “return to the German mark” theme was undoubtedly essential, the program’s developers sought to defend themselves from accusations of forming a “single issue party.” Therefore, they touched on a number of problems that, in their opinion, are troubling society. They included demands for a commitment to “A Europe of sovereign states” with a common internal market, demands for EU reform, and the “liquidation of the Brussels bureaucracy,” the strengthening of the democratic freedoms of citizens, and introducing a system of popular referendums along the Swiss model. The party also spoke out in support of families and especially pensioners and children: “Family solidarity support is an investment in our common future and an important part of inter-generational consensus.” An important component of such family support was determined to be an educational system including kindergartens, schools, and universities. At the same time, parents are to be responsible for the education and upbringing of their children and should be supported by the state. The situation with integrating immigrants had led to such programs so valued by AfG to be shut down. In a rather short section, special attention is devoted to the necessity of revising immigration laws. The immigration system of Canada is presented as one to be imitated: “It is necessary to put an end to indiscriminate immigration into our social system.” On the same note, it is emphasized that persons persecuted on political grounds should be given priority right to asylum in Germany.…Fort Russ
To borrow a phrase from Leon Trotsky, the situation in Ukraine is ‘neither war nor peace’. The poll suggests that this is no accident. Ukrainians have no great appetite for war, but they are unwilling to take the steps required to bring peace. If they have ended up with something in between, it is because that is what they appear to prefer. As Nezavisimaia Gazeta concludes, Ukraine’s president Petro Poroshenko ‘cannot not take these circumstances into consideration’. At this stage, therefore, a major change in Ukrainian policy is unlikely.Minsk 2. 0 is dead in the water.
In summary, the economic factors that produce higher pre-tax income inequality—stagnant middle-class wages, high corporate profits, and booming asset markets—are alive and well, and it doesn’t seem the Obama administration has done much about them. The administration did pass the Affordable Care Act and let the Bush tax cuts expire for the rich, both of which helped mitigate the pre-tax inequality produced by contemporary American capitalism. But even if Barack Obama called inequality the “defining challenge of our time,” he has done little to tackle its fundamental causes. Let’s hope the next president does better.Baseline Scenario
After all the hoopla last year with the rise and fall of Syriza one’s attention span strays from what is happening in Greece at present and how it demonstrates the continued (and permanent) failure of the Eurozone. We also become inured to badness after badness is normalised. I was reminded of the depth of the malaise in that nation last week when I was in Kansas City. I won’t disclose confidences but an influential person (in the Greek context) I spoke to now regard their previous support for remaining within the Eurozone as a mistake and they consider my assessment of the situation (which they opposed at the time) to be closer to reality. That was an interesting conversation and credit to them for being able to recognise an error of judgement. I was also reminded of the absurdity of the Eurozone when the IMF released its latest – Greece: Staff Concluding Statement of the 2016 Article IV Mission (September 23, 2016). This is normalisation of badness in bold! The current thinking is that the Greek unemployment rate will remain in double figures until at least 2050, that business investment has collapsed, real GDP is around 27 per cent below its pre-GFC level – and – more significant and accelerated austerity is required. If an organisation can exhibit psychopathy then the IMF has it!Bill Mitchell – billy blog
On June 22, 2016, there was a press report – Greek Labour Minister Katrougalos says IMF wants ‘blood’….
The World Economic Forum named Switzerland the most competitive nation for an eighth straight year...
Switzerland has been named the world’s most competitive nation again https://t.co/KO3rW93q5P pic.twitter.com/hjRRTqhsMW— Bloomberg (@business) September 28, 2016
“Affordability” for national governments like the US, UK, Canada, Japan, Australia is always in terms of real resources (iron ore, agricultural capacity, water supply, labor supply, etc.) and never “money”. If you still do not understand this concept, you will soon. Forty years of neoliberalism and nonsensical mainstream economic policy errantly focused on the finances of these governments, which do not possess hard financial constraints, while ignoring their real productive capacities, leaving vast resources idle. Persistent recessions, high unemployment rates, expanding income inequality, high private debt levels and financial instability have been the end results of these policies and so, political unrest is rising as world populaces are no longer willing to tolerate these deplorable conditions. At the root of the problem is the erroneous belief that these governments can run out of “money”. That incorrect viewpoint causes you to miss the reality: US Dollars are infinite. Real resources are finite.…Simple argument to pass along your out of paradigm family, friends and acquaintances.
It is an unstated central bank policy in many parts of the world to reduce the value of their currency to below its fair value. The reason for doing so is 'competitiveness'. A weaker currency means lower global prices for your goods and hence increases your exports, while at the same time reducing imports. Since a fundamental equation of economics says that GDP = C+I+G+X, or consumption plus investment plus government expenditure plus net exports; it would appear self evident that an increase in net exports would increase GDP.
This is, unfortunately, completely wrong. There are two ways that it is wrong, both pretty fundamental….Notes on the Next Bustprincipal at Dacharan Advisory AG, PhD. in Financial Mathematics
This is Part 5 in the mini-series discussing the relative merits of the basic income guarantee proposal and the Job Guarantee proposal. It finishes this part of our discussion. Today, I consider how society establishes a fair transition environment to cope with climate change and the impacts of computerisation etc. I outline a coherent adjustment framework to allow these transitions to occur equitably and where they are not possible (due to limits on worker capacity) alternative visions of productive work are developed? I argue that while work, in general, is coercive under capitalism, the provision of employment guarantees is a more equitable approach than relying as the basic income advocates envision on the exploitation of some to provide the freedom for others. Further, I argue that the Job Guarantee is a better vehicle for creating new forms of productive work. Adopting a basic income guarantee in this context just amounts to surrender. Our manuscript is nearly finished and we hope to complete the hard edits in the next month or so and have the book available for sale by the end of this year. More information on that later.Bill Mitchell – billy blog
Too many people are striving for a quick and dirty way to feel hedonistic bliss without accepting the negative feelings they have, says Steven Hayes.This was originally tagged onto my last post which spoke about Bhutan Buddhism, but I decided to make it into a separate post. I'm not sure if it is the right thing for this site, but I think Mike Norman wanted a wider range of topics so I thought I throw this in and see. I think it is relevant because in my opinion Western society is not very well.
Deep in the Himalayas, on the border between China and India, lies the Kingdom of Bhutan, which has pledged to remain carbon neutral for all time. In this illuminating talk, Bhutan's Prime Minister Tshering Tobgay shares his country's mission to put happiness before economic growth and set a world standard for environmental preservation.
The Bellingcat site has a piece entitled "Confirmed : Russian Bomb Remains Recovered from Syrian Red Crescent Aid Convoy Attack" which includes this picture as well as several others. You may look at the others, but this one picture is apodictic proof 1) that the Russians (or Syrians) didn't do it and 2) that Bellingcat is a loyal servant of the Borg.More disinformation. Read the comments, too.
U.S. enthusiasts for the New Cold War with Russia appear to be ignoring less-belligerent orders from President Obama and pushing for a dangerous escalation of tensions, reports ex-British diplomat Alastair Crooke.Going rogue.
What is so surprising here is the non-surprise evinced by the editorial writers of the New York Times. The Board blandly states that the Defense Secretary and the Pentagon might not comply. Not a hint of surprise is evident at the constitutional implications of this open defiance of Presidential authority.
No, rather the Board seems to view it as quite natural and commendable that Carter should refuse to comply with this “unusual and risky” proposition. But this was not some “proposition for collaboration.” This was an agreed formal accord between the United States and another state – reached after lengthy negotiations, and done with Presidential mandate.
In brief, President Obama’s authority is no more – if it runs against the settled opinion of the Pentagon, the CIA, the New York Times, the Washington Post and of the Democratic Party’s Presidential candidate. It is not unreasonable therefore to assume that Obama’s grudging détente with a Russian President that he personally, viscerally dislikes, is now no more than diplomatic chatter.President Obama should take a cue from Harry Truman's firing of wildly popular war hero 5-star General Douglas MacArthur for insubordination in questioning the presidents orders as commander-in-chief.
Marc Lavoie has an excellent contribution to the recent reappearance of the "macro wars": "Rethinking Macroeconomic Theory Before the Next Crisis." I just want to note that he is possibly too academically reserved with regards to some of the claims justifying DSGE macro.…Bond Economics
In this essay I discuss how the end of the Great Moderation – this 15-year period of low inflation and low variance in real growth rates in the Western world — has been interpreted by the advocates of mainstream economics and what changes the subprime financial crisis has or may have entailed with respect to macroeconomic theory. I review of a number of key issues in macroeconomic theory, examining what seems to have been changed or been questioned as a consequence of what has happened during and after the financial crisis. The third section is devoted to the concept of hysteresis, which seems to have been resurrected by mainstream economists. The fourth section deals with a number of miscellaneous issues, in particular the shape of the aggregate demand curve and the lack of a relationship between interest rates and public debt or deficit ratios. I conclude with broad brushes about what ought to disappear and what might disappear from macroeconomic theory. Many others, such as Stiglitz (2014) and Mendoza (2013) have done an excellent job in pursuing this kind of exercise. Here I offer my idiosyncratic thoughts, starting with the reaction of economists to the crisis.…INET
This interview by Jürgen Todenhöfer was first published in German on September 26 2016 by the Kölner Stadtanzeiger, the major newspaper in the Cologne region. (The interview was copied and translated to English by Bernhard for educational and academic purposes.)...Moon of AlabamaTodenhöfer: Interview With Al-Nusra Commander "The Americans stand on our side"
Damascus has a recording of conversations between the American military and Islamic State terrorists ahead of the US-led coalition airstrike that hit Syrian troops near Deir ez-Zor on September 17, the speaker of the People's Council of Syria said.RT
Now, reports are emerging that Israeli Mossad agents and other foreign military officers were killed in Aleppo on Tuesday in a Russian missile strike fired by Russian warships. On September 22, 2016, Russian and Iranian state media both claimed some “30 Israeli and Western officers” died when they were hit by three Kalibr cruise missiles fired by Russian warships in a “foreign officers’ coordination operations room” in western Aleppo, near Mount Simeon.
According to the Arabic version of Russia’s Sputnik news, military officials from the United States, Qatar, Saudi Arabia, the United Kingdom and Turkey were also killed in the strike. These countries are staunch members of the anti-Assad alliance, and as a result, it isn’t surprising to learn their agents might have been on the ground in Syria.
As reported by the Times of Israel, at the time of this article’s publication, the Israeli government is yet to confirm or deny these reports. Thus far, only Russian and Iranian media have advanced the claim.
The OSCE hasn’t just destroyed its credibility with its strange criteria for judging some Russian elections fair and others not. As the world considers Moscow’s charge of undue American influence on the organization, it’s worth pulling an OSCE “greatest hit” out of the memory hole. In the run up to the Kosovo war, the organization was used a front for the CIA to deliver communications equipment to the Kosovo Liberation Army, and to gather targeting information for an expected upcoming NATO bombing campaign.…Dances with Bears
This is Part 4 in the mini-series discussing the relative merits of the basic income guarantee proposal and the Job Guarantee proposal. It is the ‘robot edition’. The march of the robots is the latest pretext that basic income proponents (including the IMF now) use to justify their policy advocacy. There is some truth in the claims that the so-called ‘second machine age’, marked by the arrival of robots, is not only gathering speed, but is different from the first period of machine development with respect to its capacity to wipe out human involvement in production. But the claims are somewhat over the top. Further the claims that these trends are inevitable are in denial of the basic capacities of the state to legislate in the common interest. While the innovations in technology will free labour from repetitive and boring work and improve productivity in those tasks, there is no inevitability that robots will develop outside the legislative framework administered by the state and overrun humanity (even if the predictions of robot autonomy are at all realistic). We will surely need to develop a coherent adjustment framework to allow these transitions to occur equitably and where they are not possible (due to limits on worker capacity) alternative visions of productive work are developed?
Further, the Job Guarantee is a better vehicle for handling these type of transitions and creating new forms of productive work. Adopting a basic income guarantee in this context just amounts to surrender.…Bill Mitchell – billy blog
In this interview, Jack explains that it is very important to recycle electric vehicle battery materials as we do not produce enough lithium, cobalt and spherical graphite to make even a fraction of the vehicles that Elon Musk’s Tesla plans to manufacture in the year 2018 alone.Investor Intel