Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts

Monday, December 09, 2013

The Elites Do Not Create Jobs; They Export Them!

by Len Hart, The Existentialist Cowboy

Some years ago, I covered a news conference held in Houston by Milton Friedman, the darling of the U.S. right wing for his near laissez-faire economic perspective. Friedman was wrong but would never admit it. In fact, when someone raised the issue of "job exportation", Friedman was adamant: "jobs are not exported!" The working person knows better!

At last, a major media outlet is telling the truth about economics! "Business Insider" now says: "Sorry, Folks, Rich People Actually Don't 'Create Jobs'! They are a bit late! I was saying that in my very first economics class as a Freshman. I never believed that "wealth trickled down" or the focus group approved label: "supply-side economics". It was all bunkum when Reagan exploited it to float his tax cuts for the very rich; it is bunkum now but, alas, too late to prevent the decline of U.S. industry --steel, automobiles, radios, electronics. Those industries are now dominated by China and Japan. Wal-Mart may be their "agent" in the U.S.
"As America struggles with high unemployment and record inequality, everyone is offering competing solutions to the problem. In this war of words (and classes), one thing has been repeated so often that many people now regard it as fact.

"Rich people create the jobs."

Specifically, by starting and directing America's companies, entrepreneurs and rich investors create the jobs that sustain everyone else.

This statement is typically invoked to justify cutting taxes on entrepreneurs and investors. If only we reduce those taxes and regulations, the story goes, entrepreneurs and investors can be incented to build more companies and create more jobs.

--Business Insider, Sorry, Folks, Rich People Actually Don't 'Create The Jobs'
GOP right wing elitsts are wrong when they propose that wealth is the creation of ultra-super rich tycoons, robber barons, the top 1 percent. These folk do NOT create wealth; rather --they siphon (or suck) the wealth that is, in fact, created by labor. The very rich move money around --most often to offshore accounts. Even the conservative economist Adam Smith (the father of modern economics) believed that "value" was created by "labor".

Related is the fact that the U.S. is no longer a NET EXPORTING NATION. We occupy the very bottom of the CIA's own World Fact Book with the world's LARGEST NEGATIVE Current Account Balance (formerly called the Balance of Trade Deficit); Guess who is on top!! CHINA! It is easy enough to trace this trend to Nixon's trip to China. I have reason to believe that the trip had been set up by Bush Sr. It may have been the high price U.S. labor was forced to pay to get our sorry asses out of Viet Nam.

I must hasten to add that neither Obama nor Clinton is responsible for this outcome. The details of America's "new" relationship with China was worked out during the Nixon administration --most obviously by George H.W. Bush, Nixon's "special envoy" to China. The result of these U.S. trade concessions may be seen in in the aisles of Wal-Mart, the empty houses in Detroit, the stilled mills in Pittsburgh.


Friday, October 25, 2013

Why There is a Recession/Depression During Every GOP Regime

by Len Hart, The Existentialist Cowboy

Every major economist has espoused the 'LABOR THEORY of VALUE'. That includes the conservative Adam Smith and the left-leaning Karl Marx. ERGO: a declining "real' wage that should go to labor TRICKLES (in fact, FLOWS) upward to the ruling elite.

The Axis of Reagan/GOP are wrong. Wealth does not and has never trickled down. "Suppy Side Economics" was and remains a scam, a con sketched out, it is said, on a napkin by Arthur Laffer. Laffer is remembered for his "Laffer curve" illustrating the theory that reducing taxes for the very wealthy would result in increased production. That has never happened. It's either a lie or a fairy tale or both.

The GOP embraced it immediately! They claimed that by cutting taxes for their base of wealthy folk, wealth would trickle down and create jobs. The opposite occurred. A recession of some two years followed Reagan's tax cuts. It was the deepest, longest depression since H. Hoover's big one!

Not addressed with Laffers' curve is the fact that elites have the purchasing power to bid prices UP! That's not inflation! It's theft! At least since Ronald Reagan occupied the White House, the GOP has tried to peddle tax cuts that have benefited only the eilte classes with various forms of trickle down theory. No GOP plan has ever worked! By now, the wealthy (if not everyone else) knows that "trickle down" or "supply side theory" is bunkum. The elite classes, however, will always resurrect it if it is believed that they can milk it for another tax cut or "stimulus" as they often like to call it.

The elites know what the general public does not: wealth does not 'trickle down'. Rather --it is labor which creates value and 'value' is the very source of a nation's wealth. Windfalls/tax cuts are not re-invested in ways that create jobs. They are squirreled away offshore or, in other ways, removed from circulation. The results are obvious: a recession/depression or --at best --a slow down follows every GOP tax cut. Every GOP administration since 1900 has presided over a recession/depression. Just a fluke? Not a chance!

Sunday, September 08, 2013

Why GOP Regimes Create Recessions/Depressions

by Len Hart, The Existentialist cowboy

Every major economist has espoused the 'LABOR THEORY of VALUE'. That includes the conservative Adam Smith and the left-leaning Karl Marx. ERGO: a declining "real' wage that should be going to labor TRICKLES (in fact, FLOWS) upward to the ruling elites.

The Axis of Reagan/GOP are wrong. Wealth does not and has never "trickled down"."Suppy Side Economics" was and remains a scam, a con sketched out, it is said, on a napkin by Arthur Laffer. Laffer is remembered for his "Laffer curve" said to illustrate the theory that by reducing taxes for the very wealthy would result in increased production.

The GOP embraced it immediately! They claimed that by cutting taxes for their 'base' of wealthy folk, wealth would trickle down and create jobs. The very opposite occurred. Reagan's tax cuts were followed by a depression of some two years, the deepest, longest depression since Hoover's big one!

Not addressed with Laffers' curve is the fact that elites have the purchasing power to bid prices UP! That's not inflation! It's THEFT! At least since Ronald Reagan occuped the White House, the GOP has tried to peddle tax cuts benefiting only the eilte classes with various forms of trickle down theory. It has never worked! By now, the wealthy (if not everyone else) knows that 'trickle down" or "supply side theory" is bunkum. The elite classes, however, will always resurrect it if it is believed that they can milk it for another tax cut or "stimulus" as they often like to call it.

The elites know what the general public does not: wealth does not 'trickle down'. Rather --it is labor which creates value and 'value' is the very soruce of a nation'swealth. Windfalls and tax cuts are not re-invested in ways that create jobs. They are squirreled away offshore or, in other ways, removed from circulation. The results are obvious: a recession/depression or --at best --a slow down follows every GOP tax cut. Every GOP administration since 1900 has presided over a recession/depression. Just a fluke? Not a chance!

Sunday, January 20, 2013

Paul Krugman: Conscience of a Liberal

by Paul Krugman

Some readers may have noticed a recent op-ed by King and Soneji alleging that Social Security projections understate life expectancy and are therefore far too optimistic. This claim will, I’m sure, become part of what all the serious people think they know.

But the Social Security actuaries have replied (pdf), offering among other things one of the best examples I’ve ever seen of a brutally polite intellectual takedown:
King and Soneji developed their own projection methodology for mortality and made a series of assertions in their op-ed about the methods used by the Office of the Chief Actuary. As with all new entrants into this field of analysis, their work may ultimately provide value in the continuing evolution of our methods. However, the assertions in their op-ed require some response and clarification.
Oh, snap. (Or since we’re talking about social insurance, SNAP).

So yes, the Social Security Administration knows about obesity and smoking, and incorporates this into its projections. More broadly, SSA has not failed to anticipate rising life expectancy; on the contrary, it has if anything been slightly over-optimistic.

An almost unrelated note: since I am, as you can see, a devotee of adding relevant YouTube videos to blog posts, I was glad to see Jonathan Cohn bring the killer rabbit into the debt ceiling denouement — and especially gratified that I decided not to use the same thing, and went for a poker-playing cat instead. But this then raises the question: what if the Republicans bring out the holy hand grenade?

Paul Krugman, NYT


Bill Moyers Interviews Paul Krugman

Thursday, December 27, 2012

How Keynes Got it Right and the 'Right' Got it Wrong!

by Len Hart, the Existentialist Cowboy

Many have proposed a 'flat' tax. It sounds good but isn't! Flat taxes are not really 'flat'. Ten percent of the income of a poor or middle person is a much, much greater burden than is the same percentage against the income of a millionaire. The difference is that merely keeping a roof over the family's head and food on the table is a MUCH bigger percentage of income/wealth for a poor or middle class family.

The very, very wealthy, in fact, find it difficult to spend all their wealth. What is left over after the cost of maintaining a villa in Spain or a swanky lodge in the Alps is invested in enterprises that earn even more wealth. Moreover, even Libertarians --if pressed --may admit that 10%, 20%, 30% percent, indeed, any percentage of a poor person's income is a much greater burden than almost any rate on the income of a millionaire! Among the many reasons this is so is that mere necessities --food, water and to varying degrees, shelter --are not only fixed, they will always amount to a much higher PERCENTAGE of a poor or middle class budget than that of the budget of a multi-millionaire or richer.

Libertarians, however, will maintain that income tax is immoral because tax policy may have the effect of re-distributing wealth and income. My reply is that when just one percent of a nation's population owns more than the rest of the population combined, it is time to raise taxes on the very rich.
The whole system is pure criminal as from the installation of the Federal Reserve Act in 1913 by Democrat Woodrow Wilson. Not only the American people suffers, the whole world has been sandwiched by the private banks behind the central banking system.

--G. Edward Griffin, Legalized Plunder of the American People
The best argument against a flat tax, ironically, has come from a so-called 'libertarian' who wrote:
That 10 percent is a greater burden on the poor than is 10 percent on the very rich is the very reason that income tax is immoral --as it is currently imposed upon us.
Alas! The Libertarian does not go far enough. A flat tax of any sort will penalize the poor while enriching the rich.

During the 'Great Depression', the American comedian Bob Hope was asked to comment on it. He quipped (and I paraphrase)
"..I looked up the word depression. A 'depression' is a hole. I looked up 'hole'. A hole is 'nothing'. So --if you think I am going to waste my time talking about nothing, you have another think coming!"
There is nothing mysterious about depressions. They are defined by 'negative GDP growth' from which follows negative job creation rates --not to be confused with mere slowdowns or periods of slow growth. Thus depressions are disastrous for the poor. The very, very rich can actually benefit from them by buying bargains that are beyond the reach of the poorer or middle classes. The 'ruling elites' are capable of rigging markets with cleverly timed 'sell-offs'. They have the luxury of buying back in at bargain prices.

A 'depression' is a period of 'contraction'. In the U.S. every recession/depression at least since World War II has occurred during a Republican administration. That is but one reason I am not now nor have I ever been a Republican.

If FDR had been either a Republican or what is commonly called a 'libertarian' (in the Ron Paul sense of the word) the U.S. would have eventually collapsed. Even so, it may have required the U.S. entry into WWII following the Japanese attack on Pearl Harbor to get the U.S. into the war. As a stimulus, 'war' created millions of new jobs and put women to work where --earlier --their presence had been unknown. The image of 'Rosie the Riveter' is still symbolic of the period. The good effect is that women would never again consent willingly to 'second class' citizen status.

As for Keynes, he would not have been surprised by the American experience. He was, after all, famous for his proposal that in times of increased joblessness, the government may do well to bury 'pound notes' in a landfill and let 'private enterprise' dig them up.

If it's all about jobs, why wait for a war to create jobs? A 'liberal' administration has a responsibility to society overall --not just to the 'ruling elites' who finance his campaigns. Rather, a liberal and/or progressive regime will support a more egalitarian society, in fact, a more efficient society as a result.

Tuesday, November 27, 2012

Why GOP Administrations are Economic Failures that Prove Marx Correct

by Len Hart, The Existentialist Cowboy

When Bush Sr fought against, perhaps vanquished 'supply-side economics', it was hoped that the horrible Reagan years could be, would be consigned to the 'dust bin of history'! But no! It was left to 'Shrub', George W. Bush, to unleash unholy forces in order to breathe life into "trickle down theory" otherwise called 'supply side economics!

As it was taken off life support, it was surely Dick 'cyborg' Cheney who may well have yelled: It's ALIVE!

Cheney, of course, professed the Reagan doctrine: "Deficits don't matter". This is a bona fide case of terminal denial and accounts for supply-sider control of the Republican party. But what about Obama? He inherited a run-away train in search of its wreck. As Obama prepared to occupy the White House, the debt grew. Meanwhile, the caped villain (Cheney) and his budding monster(Bush) were still at work licking their chops and dreaming of fight night!

It's ALIVE! It's ALIVE!

Debt had accelerated during Bush's last two budget years. Although Obama had not been directly responsible for that acceleration, the train wreck had been left to him.

As the GOP are wont to do, Bush set records, in fact, the all-time record by increasing the debt by $1.1 trillion in a mere 100 days between July 30 and Nov 9, 2008.

Then there was the not-so-small matter of recession. To be expected, recessions cut tax revenues significantly and this fact may account for the GOP's sorry record of running up the highest debts and deficits! This has been the case since prior to the Great Depression. It is the pattern that is repeated in every GOP administration since H. Hoover's "Great Depression".

In this case, however, GOP mismanagement accounts for almost half of the deficit. We can be sure that the GOP were prepared to blame Obama for the deficit though his only crime was that timing. Machiavelli might have advised him to sit it out, let the GOP take the rap! Let the GOP face the music and dance quickly out to the door to oblivion. Blaming Obama for the full deficit was said to have been akin to "blaming him for not raising the tax rate to keep tax revenues up".
In times when the class struggle nears the decisive hour, the progress of dissolution going on within the ruling class, in fact within the whole range of old society, assumes such a violent, glaring character, that a small section of the ruling class cuts itself adrift or joins the revolutionary class, the class that holds the future in its hands.

Of all the classes that stand face to face with the bourgeoisie today, the proletariat alone is a genuinely revolutionary class. The other classes decay and finally disappear in the face of Modern Industry; the proletariat is its special and essential product. The lower middle class, the small manufacturer, the shopkeeper, the artisan, the peasant, all these fight against the bourgeoisie, to save from extinction their existence as fractions of the middle class. They are therefore not revolutionary, but conservative. Nay, more, they are reactionary, for they try to roll back the wheel of history.

If, by chance, they are revolutionary, they are only so in view of their impending transfer into the proletariat; they thus defend not their present, but their future interests; they desert their own standpoint to place themselves at that of the proletariat. The "dangerous class", the social scum, that passively rotting mass thrown off by the lowest layers of the old society, may, here and there, be swept into the movement by a proletarian revolution; its conditions of life, however, prepare it far more for the part of a bribed tool of reactionary intrigue. In the condition of the proletariat, those of old society at large are already virtually swamped.

The proletarian is without property; his relation to his wife and children has no longer anything in common with the bourgeois family relations; modern industry labor, modern subjection to capital, the same in England as in France, in America as in Germany, has stripped him of every trace of national character. Law, morality, religion, are to him so many bourgeois prejudices, behind which lurk in ambush just as many bourgeois interests.

All the preceding classes that got the upper hand sought to fortify their already acquired status by subjecting society at large to their conditions of appropriation. The proletarians cannot become masters of the productive forces of society, except by abolishing their own previous mode of appropriation, and thereby also every other previous mode of appropriation. They have nothing of their own to secure and to fortify; their mission is to destroy all previous securities for, and insurances of, individual property.

-- Karl Marx, Manifesto of the Communist Party
In the U.S. it is the GOP which consistently advocates, perhaps fronts, the interests of its primary sponsor: the ruling elite of just 1 percent of the total population. In effect, every real person but those among the top 1 percent are without representation in what is said to be the world's largest "Democracy". Is it really a 'democracy'? It is ironic that while Marx is most demonized by this unholy alliance, it is the existence of the unholy alliance itself which proves Marx to have been correct about almost everything.

Sunday, August 26, 2012

How Steinbeck 'Predicted' a Decline and Fall of America

by Len Hart, The Existentialist Cowboy

There are MANY differences between the GOP and Democrats! Enough to write books about! Why, then, has the meme taken hold that there are no differences between the parties?

That's found in 'Right Wing Campaigning 101', better known as a GOP 'Campaign Manual'. There exist such manuals, produced for candidates by their highly paid consultants. At one time, I had several of these large tomes. Lesson no 1 states (in effect): in appropriate situations, it is to your candidate's advantage to BLUR the distinction between the candidates. Generally, the GOP is a minority party. It is often to their advantage to convince the public that Dems are just GOP-lite! It "ain't" necessarily so! For a start: EVERY Democratic President since WWII has enjoyed greater GDP and JOB CREATION rates than has any GOP President.

No one was surprised recently when some 227,000 NEW Jobs were reported. Those were among many more that had disappeared under Bush Jr. That the Shrub lost and/or destroyed jobs put Obama in the position of having to regain lost ground and add to the baseline! The cycle is repeated whenever a Democrat assumes the White House; he must create jobs and quickly. When a Republican assumes the White House, he or she will promptly destroy them. If there were NO differences between the parties then HOW is that pattern explained?

Clue: STOP buying the bullshit! Check the official numbers.

The great motion picture --The Grapes of Wrath --was all about the disastrous, often heart-breaking loss of jobs that began with the incompetent if not evil policies of a GOP administration, that of Herbert Hoover and the GOP administrations which preceded him --Harding and Coolidge. The GOP OWNS its creation: the GREAT DEPRESSION.

Daring to tell the truth about the Great Depression and the GOP which created it earned John Steinbeck numerous death threats, an FBI investigation, and --to be expected of the nation's moronic/crooked right wing --charges of 'Communist sympathy', charges never proven. They were not proven because they were not true! What if they had been? Are we not guaranteed freedom speech? Are we not free to vote as our consciences dictate? Are we --in fact --NOT free?

The actions of the GOP/right wing define them thus: 1) they are liars who know their 'economic policies' are disingenuously conceived and promoted;the GOP knows its 'theories' are hooey but does not care; 2) the GOP are ruthless and will rig elections in order to seize power.

In the meantime, we have no choice but to exercise free speech until it is denied us by a tyrant. We narrowly survived one recently --George W. Bush who might have parlayed a success in Iraq into a 'triumph' perhaps with laurel wreaths and a parade of slaves from conquered nations.

That the GOP is utterly incompetent may very well be our only salvation --so far! It may be dumb luck that things worked out in our favor. In the aftermath of Bush Jr, we should be thankful that we are still --on paper at least --guaranteed freedom of speech and, by extension, the freedom of conscience that inspires it.

Not surprisingly, it was an Oklahoma Congressman who labeled John Steinbeck's novel --The Grapes of Wrath' --a "dirty, lying, filthy manuscript”. Nevertheless, it remains one of America's great novels, one of America's great motion pictures starring Henry Fonda. Predictably, the GOP despises it because it dares to tell the truth and depict it realistically.

Tragically, a 'sub-stratum', i.e, the right wing inclined, has refused to evolve, progress, grow or, in any way, transcend a disastrous mental constipation that has --it seems --forever retarded our nation's best but utterly lost dreams and better aspirations. One fears that America will be remembered as Rome is remembered, that is, as a repressive, failed, cruel empire remembered most often for its cruelty, its obsession with spectacle, it's neglect of anyone not of 'noble' lineage.
Robbers of the world, having by their universal plunder exhausted the land, they rifle the deep. If the enemy be rich, they are rapacious; if he be poor, they lust for dominion; neither the east nor the west has been able to satisfy them. Alone among men they covet with equal eagerness poverty and riches. To robbery, slaughter, plunder, they give the lying name of empire; they make a solitude and call it peace!

--Tacitus: Calgacus' Speech to His Troops (A.D. 85)

Dust Bowl --a 1950s Documentary


Tuesday, June 19, 2012

How the Great Depression Inspired a New View of 'Economics'

by Len Hart, The Existentialist Cowboy

Irving Fisher (February 27, 1867 – April 29, 1947) was an American economist, inventor, and health campaigner, and one of the earliest American neoclassical economists, though his later work on debt deflation is often regarded as belonging instead to the Post-Keynesian school.

Fisher made important contributions to utility theory and general equilibrium. His work on the quantity theory of money inaugurated the school of economic thought known as "monetarism." Both Milton Friedman and James Tobin called Fisher "the greatest economist the United States has ever produced." Some concepts named after Fisher include the Fisher equation, the Fisher hypothesis, the international Fisher effect, and the Fisher separation theorem.

Fisher was perhaps the first celebrity economist, but his reputation during his lifetime was irreparably harmed by his public statements, just prior to the Wall Street Crash of 1929, claiming that the stock market had reached "a permanently high plateau." His subsequent theory of debt deflation as an explanation of the Great Depression was largely ignored in favor of the work of John Maynard Keynes. His reputation has since recovered in neoclassical economics, particularly after his work was revived in the late 1950s and more widely due to an increased interest in debt deflation in the Late-2000s recession.

Fisher produced various inventions during his lifetime, the most notable of which was an "index visible filing system" which he patented in 1913 and sold to Kardex Rand (later Remington Rand) in 1925. This, and his subsequent stock investments, made him a wealthy man until his personal finances were badly hit by the Crash of 1929. He was also an active social and health campaigner, as well as an advocate of vegetarianism, Prohibition, and eugenics.
Then we may deduce the following chain of consequences in nine links:
(1) Debt liquidation leads to distress setting and to (2) Contraction of deposit currency, as bank loans are paid off, and to a slowing down of velocity of circulation. This contraction of deposits and of their velocity, precipitated by distress selling, causes (3) A fall in the level of prices, in other words, a swelling of the dollar. Assuming, as above stated, that this fall of prices is not interfered with by reflation or otherwise, there must be (4) A still greater fall in the net worths of business, precipitating bankruptcies and (5) A like fall in profits, which in a " capitalistic," that is, a private-profit society, leads the concerns which are running at a loss to make (6) A reduction in output, in trade and in employment of labor. These losses, bankruptcies, and unemployment, lead to (7) Pessimism and loss of confidence, which in turn lead to (8) Hoarding and slowing down still more the velocity of circulation. The above eight changes cause (9) complicated disturbances in the rates of interest, in particular, a fall in the nominal, or money, rates and a rise in the real, or commodity, rates of interest. Evidently debt and deflation go far toward explaining a great mass of phenomena in a very simple logical way.
I have been both a central banker and a market regulator. I now find myself questioning whether my early career, largely devoted to liberalising and deregulating banking and financial markets, was misguided. In short, I wonder whether I contributed - along with a countless others in regulation, banking, academia and politics - to a great misallocation of capital, distortion of markets and the impairment of the real economy. We permitted the banks to betray capital into “hopelessly unproductive works”, promoting their efforts with monetary laxity, regulatory forbearance and government tax incentives that marginalised investment in “productive works”. We permitted markets to become so fragmented by off-exchange trading and derivatives that they no longer perform the economically critical functions of capital/resource allocation and price discovery efficiently or transparently. The results have been serial bubbles - debt-financed speculative frenzy in real estate, investments and commodities.
--London Banker,Fisher's Debt-Deflation Theory of Great Depressions and a possible revision
James Tobin argues that the intellectual breakthroughs that mark the neoclassical revolution in economic analysis occurred in Europe around 1870. The next two decades witnessed lively debates in which the new theory more or less absorbed or was absorbed in the classical tradition that preceded it.[13] In the 1890s, according to Joseph A. Schumpeter[14] there emerged A large expanse of common ground and ... a feeling of repose, both of which created, in the superficial observer, an impression of finality -- the finality of a Greek temple that spreads its perfect lines against a cloudless sky. Of course, Tobin argues, the temple was by no means complete. Its building and decoration continue to this day, even while its faithful throngs worship within. American economists were not present at the creation. To a considerable extent they built their own edifice independently, designing some new architecture in the process. They participated actively in the international controversies and syntheses of the period 1870-1914. At least two Americans were prominent builders of the "temple," John Bates Clark and Irving Fisher. They and others brought neoclassical theory into American journals, classrooms, and textbooks, and its analytical tools into the kits of researchers and practitioners. Eventually, for better or worse, their paradigm would dominate economic science in this country.  
Fisher's research into basic theory did not touch the great social issues of the day. Monetary economics did and this became the main focus of Fisher’s work. Fisher's Appreciation and interest was an abstract analysis of the behavior of interest rates when the price level is changing. It emphasized the distinction between real and monetary rates of interest which is fundamental to the modern analysis of inflation. However Fisher believed that investors and savers —people in general— were afflicted in varying degrees by "money illusion"; they could not see past the money to the goods the money could buy. In an ideal world, changes in the price level would have no effect on production or employment. In the actual world with money illusion, inflation (and deflation) did serious harm.
Also see: The Top 10 Most Influential Economists of All-Time


Wednesday, June 13, 2012

The Myth of Military Keynesianism

by Len Hart, The Existentialist Cowboy

Military Keynesianism is another myth of dubious origins. In 1933, John Maynard Keynes wrote an open letter to President Franklin Roosevelt urging the new President to borrow money to be spent on public works programs:
“Thus as the prime mover in the first stage of the technique of recovery I lay overwhelming emphasis on the increase of national purchasing power resulting from governmental expenditure which is financed by Loans and not by taxing present incomes. Nothing else counts in comparison with this.
In a boom inflation can be caused by allowing unlimited credit to support the excited enthusiasm of business speculators. But in a slump governmental Loan expenditure is the only sure means of securing quickly a rising output at rising prices. That is why a war has always caused intense industrial activity. In the past orthodox finance has regarded a war as the only legitimate excuse for creating employment by governmental expenditure. You, Mr President, having cast off such fetters, are free to engage in the interests of peace and prosperity the technique which hitherto has only been allowed to serve the purposes of war and destruction.

--Keynes, John (1933). "An Open Letter to President Roosevelt". Retrieved 2011-08-01.
How many people do you know build 'tanks' for a living? You've heard of beating swords into plowshares: how often do you suppose plow-shares become tanks and what is --in fact --the effect on farming when that occurs?

A nation that believes it can sustain a viable population by the mere production of arms is deluded. Moreover, if 'we' can build tanks --why are we no longer leading the world in the production of automobiles?

Why are we no longer leading the world in the production of steel?

Why are we no longer the world's breadbasket?

Why does Detroit look like a Ghost Town?

When was the last time you heard about the thriving steel manufacturing town of Pittsburgh?

If you believe that these things are trivial, check out the CIA's own World Fact Book. At the very top you will find CHINA with the World's largest Positive Current Account Balance!

Now ---scroll down!

Keep scrolling!

A little more!

Ah --at last --there is the United States at the very bottom of the list with the World's largest NEGATIVE Current Account Balance [formerly called, in our case, the Balance of Trade deficit]. In a word --CHINA owns us and keeps us fat and happy --like cattle! We have to be kept afloat! Otherwise, where would China dump its cheap crap.

One wonders how many American jobs have, in practice, been exported to China? How and why has this come about? This trend is traced to Nixon's trip to China; the groundwork for his historic trip was laid by one George H.W. Bush with whom I spoke on this very topic years later! Somewhat simplistically, Bush sold out American labor. It was the high price we paid to get out of Viet Nam.

'Reaganomics' bears NO resemblance to Keynesian economics in either theory or result! Keynesianism works; Reaganomics never worked and never will. Arthur Laffer, himself, may have regretted the sorry fraud! Laffer called it a "theoretical curve". Whether or not it was drawn on a napkin (as legend has it) matters not. It was assumed that tax cuts would stimulate purchases and sales generally. The reverse happened because only the very rich, an elite in fact, benefited from the tax cuts. The needs of the very rich were already met; the elites had simply squirreled away their winnings in offshore bank accounts, beyond scrutiny. The 'tax cuts' were a windfall easily tucked away. As a result, no jobs were created as a result of the infamous Reagan tax cut.

"Supply-side' economics is simply a failure, perhaps a PR stunt. The term 'trickle down theory' describes it perfectly; but the term originated earlier, with Will Rogers who said that money was "...appropriated for the top in hopes that it would trickle down to the needy."

Laffer's curve never described reality. Had he been alive, Keynes would have denounced the reduction of growth in the money supply. The slowing of growth, indeed, the actual 'shrinkage' of the economy overall combined to create the 'perfect storm better known as the recession of 1981–82! It was the worst recession since H. Hoover's 'great' one! It is Reagan's legacy of failure and dimming hopes for all but the very, very, very rich.

Thus --the Reagan years are recalled as the era of huge budget deficits, low interest and inflation rates, and a depression of some two years, the deepest, longest since H. Hoover. The 'wrong' people benefited from GOP largesse --a depression resulted. One wonders how many $millions wound up in offshore tax havens following Reagan's 'welfare for the very rich'! We may never know. It was wealth forever lost to the U.S. economy.

Neither Laffer's curve nor Reagan's tax cut were Keynesian; Keynes is famous (or infamous) for his hypothetical about which he said the govt should bury pound notes in a landfill and let the people dig them up! Indeed --Reagan would have done much, much better had he done precisely that! Alas --he did not!  His 'tax cuts' did not benefit those whose expenditures would have 'stimulated' the flagging economy. Nor did the ruling elites invest them as Keynesian economics might require; certainly they were not invested in ways that create jobs or spending. Rather --they were banked offshore, representing a contraction/depression/a net loss of jobs and GDP, i.e, a depression of some two years, the worst such depression since H. Hoover's Great Depression of the 1930s.

'Wealth inequities/disparities' are the result of Reagan's tax cuts which benefited only the top 20 percent! Subsequently, the top 20 has, at last, become the ruling elite of just 1 percent which owns more than the rest of us combined. That's because however the rich are taxed, the 'tax burden' they experience is less than that experienced by the middle and poorer classes. That is the case because a flat tax of any 'percentage' is a greater burden to those who must always spend a much larger percentage of their income on mere necessities --not the least of which are roof and food!

'Necessities' are a much smaller percentage for ruling elites for whom the 'size' of a mansion is not a necessity but a luxury, for whom the swimming pool is not a necessity but is expected of his/her 'class', etc etc etc. Items most often indulged by 'elites' are unlikely to stimulate a domestic economy in any case. And as the number of very rich persons declines, their impact on the economy declines.  In the mansions of the very rich may be found luxury items the purchase of which will not improve the lot of a steel-mill worker or the men and women who used to make cars in Detroit.

Many credit WWII with ending the 'Great Depression". In fact, as it was waged WWII was NOT a 'massive stimulus' nor was it Keynesian. When demand is low, there is always the risk of 'gluts', over-production, expanding inventories. Some have proposed that during these times, a 'convenient' war may 'pump-up' demand!

Malthus, as I recall, advocated convenient wars to 'pump up demand'! That makes very little sense. On the one hand, a war-time government urges austerity while it utilizes existing resources to oppose the 'hun'! Thus what happened in the U.S. during WWII was hardly 'Keynesian". In fact, a variety of shortages severely inconvenienced the civilian population. Having spoken with many who lived through it, I have concluded that it was not the so much the war that stimulated U.S. growth but its end. Two 'booms' followed the return home of troops: 1) industry for which the troops were needed 2) a 'baby boom' as a result of families re-uniting.

While war was waged, many imported items were no longer available; the U.S. was at war with nation's that made and exported them to the U.S. Notably --sugar and coffee were very scarce. In fact, COKE (which things go better with) was scarce or unavailable most probably because sugar was scarce. Other things disappeared entirely --silk stockings among them.

In response, salvage campaigns encouraged people to save things like scrap metal, rubber, cooking fat! From these items weapons, ammunition, gas masks and explosives were made. A truly 'Keynesian' expansion of the economy cannot be read into this experience. There are no austerity measures in a Keynesian expansion driven as it is by more money in the hands of more people who will use it to buy more products and services. In war time, many 'consumers' are at war while those left on the 'home front' are expected to practice certain austerity measures. 'Austerity' is rarely Keynesian and certainly not Keynesian in this respect.

Wednesday, November 16, 2011

The GOP is Not a Political Party; It's a Crime Syndicate and Kooky Cult

by Len Hart, The Existentialist Cowboy

The International Cultic Studies Association lists the defining characteristics of a 'cult'. I fully agree with the 'list' and also the assertion that the GOP meets most of several atttributes, perhaps all characteristics that define the word 'cult'.

Here is the list as 'published':
  1. The group displays excessively zealous and unquestioning commitment to its leader and (whether he is alive or dead) regards his belief system, ideology, and practices as the Truth, as law.
  2. The leadership dictates, sometimes in great detail, how members should think, act, and feel (for example, members must get permission to date, change jobs, marry—or leaders prescribe what types of clothes to wear, where to live, whether or not to have children, how to discipline children, and so forth).
  3. The group is elitist, claiming a special, exalted status for itself, its leader(s) and members (for example, the leader is considered the Messiah, a special being, an avatar—or the group and/or the leader is on a special mission to save humanity).
  4. The group has a polarized us-versus-them mentality, which may cause conflict with the wider society.
  5. The group teaches or implies that its supposedly exalted ends justify whatever means it deems necessary. This may result in members’ participating in behaviors or activities they would have considered reprehensible or unethical before joining the group (for example, [torture,] lying to family or friends, or collecting money for bogus charities).
  6. The most loyal members (the “true believers”) feel there can be no life outside the context of the group. They believe there is no other way to be, and often fear reprisals to themselves or others if they leave (or even consider leaving) the group.
It has always been my belief --stated often on this blog, FB, 'The Opinion', NPR, and various other forums on the internet --that the GOP is not a political party. Rather, it has characteristics of kooky cults and an organized crime syndicates.

Someone posted recently that the two parties (Dems and Gops) are indistinguisable from one another. That's just not true and, if the media had done its job, that pernicious meme might not have taken root as it most certainly has! Clearly --it was the GOP which planted it and only the GOP has benefited from it.

The occupation movement has targeted the 'ruling elite' of just one percent! That they are a 'ruling elite' and that they amount to no more than one percent of the total population is the obvious result of GOP policies favoring their base and their base is, in fact, the increasingly tiny but powerful ruling elite.

I have many issues with the Democratic party but being GOP-lite is not one of them. For all their faults, 'being as bad as the GOP' is NOT among them. I can cite three essential and defining characteristics that distinguish Democrats from the cult of GOPism:
  • EVERY Dem has presided over greater GDP and JOB GROWTH than has ANY Republican Prez since 1900;
  • EVERY GOP 'tax cut' has been followed by a recession/depression.
  • EVERY GOP TAX CUT has resulted in the transfer of wealth UPWARD to a 'ruling elite' which is now just ONE PERCENT of the total population.
Those fact are at the core of the Occupation Movement! A corollary is this: EVERY recession/depression since 1900 has occurred during a GOP administration and as a result of GOP policy.

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Tuesday, September 27, 2011

How the GOP Will Bring About the End of Capitalism

by Len Hart, The Existentialist Cowboy

The GOP gets away with a big lie! The GOP has convinced millions that the GOP is the party of smaller government coupled with smaller debts and deficits. The fact is: EVERY Democratic regime at least since World War II has presided over smaller debts and deficits than any GOP regime and --at the same time --has created more jobs and greater growth in GDP.

These are facts that can be confirmed at the U.S. Commerce Department B.E.A. and the Bureau of Labor Statistics to name just two. There is a table [Wikipedia] that lists the gross U.S. federal debt as a percentage of GDP by Presidential term since World War II. As the detailed version of the graphic above, it PROVES my point with detailed and verified numbers.

Now if you happen to believe that creating fewer jobs and --worse --exporting them to China is a good thing, then, by all means, vote GOP! Like clockwork, jobs will migrate and GDP will, naturally as a result, take a dive. And, by voting GOP, you will have helped bring about that outcome. Live with yourself! The GOP, in the meantime, will routinely lie to you about this issue if they cannot avoid it. I often wonder why it seems never to come up in debates.

At present, the gross federal debt as a percentage of GDP (83.4% at the end of 2009) is higher than it has ever been since the late 1940s. This is the Bush Jr legacy. By way of background, the debt briefly reached over 100% of GDP in the aftermath of World War II.


Debt of any type increases when money is borrowed. The Federal debt, likewise, increases whenever the government borrows money, whenever the Treasury or other agencies issue 'securities', very literally a 'promissory note'.

The public debt increases or decreases as a result of annual unified budget deficit or surplus. The federal government budget deficit or surplus is defined as the the cash difference between government receipts and government spending; it ignores intra-governmental transfers.

Some recent history

That outcome is clearly by design and by definition it is not Marxism. Nor ---as the 'brown suit' says --is wealth created by so-called 'free market capitalism'. Rather --it is unrestrained, free market capitalism that has, in fact, created every depression since the Great Depression which began with the stock market crash of 1929.

At the same time, the GDP, i.e, the annual gross domestic product, to the end of June 2011 was $15.003 trillion. That means that the 'gross debt' is about 98% of GDP; debt held by the public is about 67% of GDP.Elsewhere, one can expect the 'libertarian' CATO institute to shill for the upper, upper classes, i.e, the ruling elite of just 1 percent of the population.

The disaster Bush left Obama

The facts are clear enough and available to anyone who will bother to access the U.S. Commerce Department-B.E.A., the Bureau of Labor Statistics, and non-partisan think tanks. That rules out Brookings! In the video below, the CATO spokesman ignores the lessons of history and the stats I've posted above. The right wing would rather not mention these numbers. The right wing would rather you had never read or accessed them; the right wing would rather you remain uninformed, in the dark, ignorant! The right wing cannot sell its bullshit to informed and intelligent people.


With respect to the following video specifically, the 'battle ground' is imprecisely chosen. Progressives must take the higher ground while forcing the enemy into a boxed canyon. Liberals err by giving liars the benefit of doubt and letting spin doctors and their liar clients 'off the hook'. The GOP, rather, should be reminded of how wrong they are every day if not every hour. Perhaps --eventually --in the face of mountains of verifiable data, they will surrender or be buried.

With respect to the video, someone should include among their talking points that the transfer of wealth upward to just 1 percent is just as destructive to the economy as would be the utter destruction of all that wealth in a nuke, just as destructive as loading up dollars and assets on a ocean liner and shipping it abroad. It matters not where. That's true because the very, very wealthy invest their moneys offshore. The do not put the money back into a local economy as the Building and Loan had done in the classic film with Jimmy Stewart: "It's a Wonderful Life".

Wealth transferred to the elite --by way of unfair GOP tax cuts benefiting only the upper 1 percent --is, in effect, a transfer of wealth outside the economy. In other words, it is, by definition, a contraction of the economy.

The transfer of wealth occurs in numerous ways. Offshore bank accounts are typical and most often exploited by the elites. It is unfortunate that is is CAPITAL ---not labor --which controls U.S. wealth though it is labor that creates it. Every economist knows the truth of that. It's called the 'labor theory of value'.

That capital has acquired a de facto ownership of the 'state' does not support any defense of 'capital', NOR does it disprove Marx whose views with regard to the 'labor theory of value' are mainstream despite the radical reputation that right wing morons have ascribed to Marx. The empirical evidence, meanwhile, proves that Marx was absolutely correct and is repeatedly confirmed --ironically --by GOP regimes.


The End of Capitalism? [video h/t Vera Narishkin]


Friday, March 20, 2009

Inviting the Sheep for Another Shearing

By Ed Encho
What do you get for pretending the danger's not real.
Meek and obedient you follow the leader
Down well trodden corridors into the valley of steel.
What a surprise!
A look of terminal shock in your eyes.
Now things are really what they seem.
No, this is no bad dream.

-Pink Floyd (sheep)
In the ongoing madness of an America in terminal decline, the great Surge II is now underway. This one has nothing to do with mass brainwashing that all is ell in Iraq and that we are indeed winning thanks to our shining medal festooned superstar quarterback otherwise known as General God (aka David Petraeus) to divert the flocks attention away from a doomed imperialist crusade. Nope, this one hits closer to home, it started last Monday with a sly piece of internal propaganda from Citigroup’s CEO Vikram Pandit having its best quarter since 2007 which triggered a sucker rally in the Wall Street casinos that dictate to the inhabitants of chumpland. The pocket media once again did their job, selling this latest call for the sheep to come and be sheared with all the effectiveness that they pimped the murderous lies of George W. Bush, Karl Rove and Dick Cheney. Things – ARE getting better you see, the gloom-gloomers, the glass is half-empty pessimists, the neurotic nervous nellies and the naysaying Eyores are all wrong, it’s a disease, in their heads, the economy is rocketing its way back to robustitude. The most incredible example of just how thoroughly corrupt that the corporatist media has become is the pernicious cover story of the latest edition of Newsweek magazine that has a picture of good ole Uncle Sam saying that he wants YOU to START SPENDING!... YOU need to INVEST in America – before it’s too late.

The Newsweek story, by Daniel Gross which inside is even more insidious in that it beats the reader over the head with STOP SAVING NOW! – in all caps and taking up the better part of page 27, page 26 is a picture of a squirrel (a cartoon representation of those greedy pigs who dare to save their own money rather than gamble in the Wall Street casinos who holding onto a backload of acorns has caused the branch of the tree to CRAK! Jesus fucking Christ, this is propaganda at its finest, even a cynic like me is astounded by the dastardly nature of this banker swill in one of the nation’s premier ‘news’ magazines.

A more sophisticated version of Mad Money Cramer, Gross goes on to say:
The hum of ambient noise in midtown Manhattan is several decibels lower than it was a year ago. Fewer black Town Cars idle outside the investment-bank offices on Park Avenue. The aisles of the flagship Saks Fifth Avenue are so quiet you'd think you were in a library. The restaurants and shops at Rockefeller Center are open as usual, but they seem oddly depopulated. Where are all the tourists and office workers, the hordes of junior analysts lining up in Starbucks?

Something less tangible is also absent: the spirit of caffeinated, heedless risk taking. For a generation, risk has been the adrenaline of the nation's economy, the substance that made us all—from the denizens of midtown Manhattan to the residents of Manhattan, Kans.—run a little faster and stay up a little later. Now, with the economy in its 16th month of recession and the markets scythed in half, it seems we've all either switched to decaf or simply lost the taste for risk.

And

As consumers hibernate and investors hoard cash, the economy is withering. This new age of thrift is understandable. But for a recovery to take hold, Americans will need to start taking risks again.

And

Saving cash and building up reserves is a necessary first step to recovery. But eventually the mountain of cash has to be put to work. Last week's sharp market rally was certainly a sign—however fleeting it may turn out to be—that investors are putting money to work again. Retail sales in February provided another hint that purse strings may be loosening. But there's much more work to be done. Ironically, post-bubble periods are frequently great times to start new ventures. The best time to start a dotcom wasn't in 1999 when the IPO market was raging, it was in 2002, when the price of everything associated with the business—office space, programming talent—had plummeted. When Allied Corp. in the late 1980s didn't want to pursue the development of consumer products based on global-positioning-satellite technology, Gary Burrell left, raised $4 million and formed Garmin, which today employs about 7,000 people.
Great solution, just trust Wall Street with that money, think long term, be patriotic even if the malefactors of great wealth do not and are more than happy to wallow in international troughs and then come back to shit on America. Gross, a highly-paid, high profile stooge is just playing his part in the ongoing relaunch project to save Wall Street looters and protect their plunder. We have seen this story already, Americans with dollar signs in their eyes and cash register bells going off in their heads like some bizarre real life Uncle Scrooge cartoon, duped into thinking that they can actually become rich and powerful themselves just like The Donald line up to be fleeced by the flim-flam men with the political juice and insider knowledge as they seek to cash out one more time. Perhaps a final time before the country impoldes inward upon itself. All aided and abetted by the media, the Wall Street cadre occupying Barack Obama's White House, guys like Lawrence Summers and the conniving little twit Tim Geithner whose announcement as the new treasury secretary was greeted by a 6.5 % spike in the DOW, the crack-ho economy got a mainline spike into the arm and knew that the paper pusher inside the administration would ensure them that the game would go on and on. In the end of course, all has been enabled by the bewildered herd of sheeple themselves, brainwashed from birth into the bastardized capitalist system that is already drooling over being able to suck the blood from their grandchildren on account of their greed, stupidity and folly.

As a counter to the mainstream drivel that Gross and Newsweek are peddling as pearls of infinite wisdom I counter with an excerpt from a piece from his month’s Harpers. Infinite Debt by Thomas Georghegan discusses the ruinous and usurious effects of the debt based economy and its victims The same ones that Gross and his fellow pocket media hacks are now trying to swindle out of whatever little they may now have in their piggy banks having been badly burned by the existing system that has beggared them and cast them out of jobs and homes in addition to destroying their pensions and 401k retirement plans. From the Harper's piece (which I will be addressing at length in my coming post Usurious Bastards):
What is history, really, but a turf war between manufacturing, labor and the banks? In the United States, we shrank manufacturing. We got rid of labor. Now it’s just the banks.

Which is why the middle class is shrinking. Basically, we’re all waiters now; we’re bowing and scraping and working for the banks. Look closely at any American, and it’s even odds that he or she, directly or indirectly, is somehow employed by the “financial services sector,” which covers insurance and real estate and financial instruments of any kind. As brokers, lawyers, loan collectors, loan consolidators, secretaries at big investment firms, chauffeurs of private limousines, or even the high-tech types who exist solely to service banks — all of us, millions of us, are part of it, living off it in some way, as three generations ago we lived off manufacturers.
The game is rigged people, and the hit job done on America by the rotten fuckers on Wall Street and their institutionalized system of debt slavery is all that is left, and STILL the banksters on the street and the gangsters in D.C. are doint everything that they can to continue to bleed the silly and naive masses of asses by doing all that is possible to get the debt/consumerism bubble reinflated. In a rare piece of sanity that slipped by the censors and minders of the memory hole a Reuters story, More debt: a curious solution to a credit crisis dared to utter the heresy that:
Indeed, a huge part of the Treasury's economic rescue plan is based on reviving securitization. This is the process by which everything from real estate and auto loans to credit cards and student debt gets repackaged into bonds and is then sold on to investors in a secondary market.

This worked wonders during the boom of the past couple of decades, leading to rapid capital formation that underpinned a huge rise in lending. But when the music stopped, many investors were left looking for an empty chair as these products of financial "innovation" proved ruinously difficult to value.

Given this history, Wray, also a senior fellow at the Levy Economics Institute, said asset-backed bonds are the problem, not the solution. "We need to kill off securitization and go back to banking -- loan officers and underwriting."
Wall Street is a con game, it depends on confidence in order for the moneychangers to book their fees and peddle their bad paper, given the Surge II it’s apparent that the entrenched elitists are determined to wage war against any sort of change that Obama may have in mind. Given the first two months of the administration and while being mindful that it’s still early, despite some initial guarded optimism I am becoming more and more certain that nothing is changing except the management of the whorehouse. I now find myself in agreement more or less with those progressives who were wary of Obama from the onset, with his government packed with recycled Clinton era swine, the usual assortment of Wall Street and Federal Reserve grifters running fiscal policy and his still stinging kick in the balls from the Israel lobby over the Freeman resignation it only looks like more of the same shit but in a different package. Helicopter Ben's announcement that the Fed would now be buying American debt to save their fucking system, the dollar immediately took a shit and with the coming wave of hyperinflationi as a result of this latest idiocy this story should send a cold chill up the spine of all who are onto what has really been going on as America has been gutted: The US is Facing a Weimar Moment. Read it if you dare.

As Orwell once wrote in the literary classic Animal Farm:

“All animals are equal, some are just more equal than others”

Republican ‘free marketers’ are unscrupulous and pathologically greedy, they also delight in the trafficking of human misery for profit. It makes them feel empowered. They are like the S.O.B. sitting at the Monopoly table who is not content in owning Boardwalk and Park Place as well as all of the utilities and railroads but also buys Baltic and Mediterranean and loads them up with houses and hotels then squeals with childlike glee when some poor bastard lands on one of them and is driven into bankruptcy. The game of Monopoly is very relevant to life itself in laissez-faire hell, where the rich are able to accumulate property on a rapidly escalating scale and as wealth rapidly increases the less fortunate are driven into bankruptcy with the winner being the monopolists.

This is Laissez-Faire ‘free market’ Capitalism in its ultimate form, the ‘free market’ is only truly advantageous and 'free' to those who have the most cash and assets and they are gathered at the expense of the poor who eventually are the losers but hey, that’s what it’s all about isn’t it in the Wall Street Journal's perfect world. Now that the rape of the system has nearly been completed how long is it going to take until there is a realization of just how thoroughly the free market fanatics have cannibalized the country in pursuit of profit? And the denial needs to stop immediately, the existing system has already failed and failed miserably.

Capitalism is eating itself. Like a python slowly trying to digest it’s own tail, the economic master plan, the Shock Doctrine has come home now and the sheep are being prepped for yet another shearing, soon they will served up with a side of mint jelly.

It is important to understand that a distinction needs to be made when it comes to capitalism between that which is regulated and the ‘free market’ aka Lassez Faire strain that the road to hell is paved with. The end result of unregulated capitalism is monopoly of the most extreme sort as well as the redistribution of wealth to those at the top of the class system, I wonder why nobody has ever dubbed this as ‘trickle up economics’ which is of course exactly what it is. One of history’s most important and enduring lessons is that hundreds of thousands must toil in the muck in order to allow one rotten, greedy son of a bitch to have his face displayed on a sphinx. The American middle class are the ones who are forced by their Wall Street pharaohs to build the bricks for the monuments to the super wealthy under increasingly hostile conditions in increasingly dangerous work environments with an increasingly smaller amount of straw.

The establishment after all has a vested interest in the existence of a huge and desperate underclass. The accompanying crime and urban rot helps to breed the necessary fear that justifies increased police powers and surveillance so as to keep the interests of the elite safe and sound while they sleep behind the walls of their gated communities each night. We were swindled by the free market pimps and deregulation pushers, all that it all did was create conditions for monopolies and trusts and consumer gouging. Take an honest look at yourself, are you truly better off today than you were yesterday? Or the day before? Or five years ago?

Well understand one thing.....today is as good as you are going to have it for the rest of your life under this existing rotten system.

We Are All Losers: The system itself is designed to make losers of us all except that extreme few with the means to purchase influence and therefore protection.

Under this system we all lose, mainly our losses are incremental.

We lose our lives through an increasing amount of time spent on a job locked in a struggle of diminishing gains to even survive.

We lose our health

We lose time with our children and families, this is the most tragic loss of all in most instances as it perpetuates the cycle of the decline in human relationships and destroys the family. Despite what the establishment propagandists and their phony religious wars with their insipid ‘pro family’ sloganeering it is not the loss of morality in through cultural changes in society that is causing the degradation of the family but the greed of an unfettered and monstrous capitalist system that demands more and more in order to slake its bloodsucking appetite for profits. It is the pursuit of these profits at the expense of our humanity that has laid waste to the family, and our values and every day that we are forced to prostitute ourselves in order for the wealthiest of the greed mongers to further entrench themselves is one more day closer to the day that we will ultimately die in vain for their sins.

And in buying into the legitimacy of this lie of a system we ultimately lose our souls.

In a system that is designed to ultimately make losers out of all but the very few who are able to parlay their inordinate influence into being able to utilize it as a weapon of exclusion I found the following from the late, great Hunter S. Thompson to be words of wisdom, this in reference to the ultimate outsiders The Hells Angels:
There is an important difference between a 'loser' and an 'outlaw' . One is passive and the other is active and the main reasons that the Angels are such good copy is that they are acting out the daydreams of millions of losers who don't wear any defiant insignia and who don't know how to be outlaws."

The Angels don't like being called losers but they have learned to live with it. "Yeah, I guess I am" said one "But you're looking at one loser who's going to make a hell of a scene on the way out"
Let's just hope that there are still some outlaws left out there amongst the sheeple, they are all that we have when it comes down to whatever hope there may be left in an increasingly hopeless and hostile world.

Thursday, November 27, 2008

Milton Friedman's Role and His Influence on the Two Worst Regimes in US History

by Len Hart, The Existentialist Cowboy

As recently as 2005, Milton Friedman was still singing the praises of utterly failed economic policies that had been put to the test by Ronald Reagan and Bushes Sr and Jr. Friedman's policies have been found tragically lacking. Friedman is enamored with policies that bankrupted the nation, made terrorism worse, created the longest, deepest recession since the crash of 1929, exported jobs abroad and resulted in the destruction of the American labor movement and, as a result, the loss of employee rights. Because Ronald Reagan put into effect the lame-brained ideas of Milton Friedman, we live poised on the precipice of economic collapse at the end of the very worst Presidency in American history. [note: Friedman died in Nov. 2006.)]

When I met Milton Friedman in Houston, Ronald Reagan had not yet plunged the nation into a two year long depression. At the time, it was the worst depression since Herbert Hoover's Great Depression of the 1930s, the one that your parents, grand-parents or great grand parents have told you about.

Not surprisingly, Milton Friedman was singing the praises of GOP economics for which he must share responsibility, possibly blame. When I asked him about a pernicious trend that had started under Reagan, he was defensive. "Jobs are NOT exported", he said emphatically. He was wrong then and he is wrong now. In fact, it was during Ronald Reagan that jobs declined as US industry lost markets to Japan and China --Faustian bargains cut first on Nixon's behalf and later for Herr Reagan.

American industry is but a shadow of what it was under FDR and LBJ. GOP economics for whom Friedman was the guru, left American workers with increasingly limited prospects, declining standards of living, few opportunities and lower wages. I've cited the official numbers from the Bureau of Labor Statistics, the Department of Commerce- BEA, and the Census Bureau which prove conclusively that as a result of the GOPs anti-labor policies in terms of both jobs and tax cuts for the wealthy, the rich have gotten very, very rich and everyone else has gotten poorer. Today, about one percent of the US population owns more than the remaining 90 percent or more combined. Under Bush Jr an elite of only about one percent of the nation benefited from his tax cuts and his financially ruinous war of naked aggression against Iraq.

Bush has now resorted to Marxist economics and has proven Marx to have been absolutely correct. But the GOP --typically --has screwed that up as well. Marx said: "From each according to his ability, to each according to his need!" The GOP version goes like this: "We pull from out of your ass everything that you think you own; then we distribute it to those who did nothing to create it, did nothing to earn it, and do not deserve it!

If because of GOP transfers of unearned wealth to the increasingly tiny elite of about one percent of the population, labor is unproductive or impoverished the productivity of the nation will decline and ultimately collapse --especially if the poor can no longer afford decent housing or food because ELITES have bid up prices on commodities.

Given the 'socialist/Marxist' nature of the recent bailout benefiting only the GOP base of elites, it is clear that Karl Marx was right. Capitalism will collapse of its own inconsistencies, 'internal tensions which will lead to its destruction.' We have seen evidence of this in the recent bailout --a 'socialist measure' benefiting McCain's 'base' even as McCain was demonizing 'liberals', socialists, and other "Anti-Americans".
The development of Modern Industry, therefore, cuts from under its feet the very foundation on which the bourgeoisie produces and appropriates products. What the bourgeoisie, therefore, produces, above all, are its own grave-diggers. Its fall and the victory of the proletariat are equally inevitable.
Karl Marx, The Communist Manifesto
One wonders if GOPPERS ever try to reconcile the irreconcilable inconsistencies that are literally shot through their thought processes.
Monopoly is a board game published by Parker Brothers, a subsidiary of Hasbro. Players compete to acquire wealth through stylized economic activity involving the buying, renting, and trading of properties using play money, as players take turns moving around the board according to the roll of the dice. The object of the game is to bankrupt the other players. The game is named after the economic concept of monopoly, the domination of a market by a single entity.
--Monopoly
In Monopoly, one player wins who owns enough properties to bankrupt the other players. The same thing happens in nature when a PARASITE kills its host!

The Bush bailout of his robber baron buddies and former sponsors, is proof that Milton Friedman's naive, laissez-faire economics is pure and utter bullshit. There was a time when grown up folk who persisted in believing fairy tales were called nuts! Today --they are called elder statesmen and Friedman is considered a sage.

Here's Friedman from a Charlie Rose program of 2005. He's talking about how strong was the US Economy. It would appear that reality has caught up with him.

Some recent EC posts that Friedman would have done well to read:
To sum up: Friedman has been wrong about the economy since 1980 when his 'God' --Ronald Reagan --assumed the role of "President". Ronald Reagan, the living embodiment of Friedman 'economics' hollowed out America's industrial base, plunged the nation into the worst depression since 1929, destroyed the labor movement, enriched ONLY the upper one percent of the nation, doubled the size of the federal bureaucracy and left to Bush Sr and, later Bill Clinton, the worst budget deficit in the nation's history, a situation that did not improve until Bill Clinton's second term. A lot of good it did. Bush II promptly out-performed Ronald Reagan's every instance of incompetence and deceit. Only Bush IIs deficits and debts outstrip those of Reagan who succeeded only in enriching his corporate and elite, privileged sponsors.
  1. Recessions, though not caused by declining stock markets, are always accompanied and often predicted by a plunging stock market. Republicans sell out at the peak, taking their profits. Enough selling will trigger the plunge; less knowledgeable investors begin to follow suit from fear but too late. Last man out loses.
  2. Having taken their profits on the upside, a depressed market is but an opportunity for the rich Republican to get back in at lower prices. Guess who sells at the lower price: the poor schmuck who is 180 degrees out of phase and can only dream of being a rich Republican. In reality, those he aspires to join are exploiting him.
  3. Very knowledgeable investors make money "selling short", buying "put options". These investors get peak prices for stocks even as the price declines. Illegal insider information is executed with "calls" and "puts." The perpetrators of 911, for example, made millions, possibly billions, selling short the stocks of UA and AA. I defy anyone to come up with an 'innocent' explanation. The recipients of those profits had guilty foreknowledge of 911. The name 'Buzz' Krongard comes in connection with a known terrorist organization: the CIA.

    A planned financial meltdown might have presented the same opportunities. Historically, 'elites' have always emerged richer, stronger from recessions. On the other side of Ronald Reagan's recession of some two years, the rich had gotten richer while the middle class was all but wiped out. The ill-effects of that recession are still seen in the decline of middle class neighborhoods, the permanent loss of manufacturing base and the jobs it created .The profits and volume were most certainly outside norms, proof that those executing the options had precise foreknowledge of the attacks. Those making those profits had "guilty knowledge" of the attacks; they were at the very heart of a murderous conspiracy.
  4. Unemployment always increases in a recession. At the end of a longer recession, companies have the luxury of hiring from a larger labor pool at lower wages and/or salaries. Some companies --citing hard times --may reduce benefits, cut vacation or sick time. Big business must hate good times; it is only during times of full employment that workers have any leverage at all. Offhand I can think of only two times in history that have come close: the Clinton years, and, interestingly, Europe after the Black Death. The labor supply had been depleted by plague. Employers were often forced to accede to worker demands for better conditions, money, a place to live! Serfs had been freed and it marked the beginning of the end for Feudalism and set the stage for 'corporate feudalism', an age in which we still labor and suffer.
  5. Many businesses go belly-up during recessions. While lip service is given to 'free markets' and Adam Smith's 'invisible hand', die hard robber barons --in fact -- hate the 'free market'. They prefer 'monopoly' when they can create one and 'oligopoly' when they can't. Free competition among many sellers is the last thing they want. Recessions are welcomed. It's the 'cold douche', a ruthless flush, so beloved by Schumpeter and the robber barons of American capitalism.
  6. Don't expect recessions to bring down prices. More often, higher prices are the light that is seen at the end of the long, dark tunnel. In other words, those businesses fortunate enough to survive a 'downturn' are in the enviable position of raising prices on the other side. Higher prices benefit businesses that manage, perhaps with government bailouts, to stay in business during a recession. So much for laissez-faire capitalism. The world is not so kind to everyone else, primarily smaller businesses and entrepreneurs, freelancers, and worker bees. Prices, we learned in Economics 101, are determined by supply and demand. If the demand is such that the market is quite willing to pay any price for it (prescription drugs, gasoline, certain rents) then demand is said to be inelastic. The world at the end of a recession is often inelastic and big and bigger businesses benefit.
  7. Consumer demand is the arbiter of price only in markets characterized by diffuse competition. Recessions militate against a market of this sort, weeding out all but 'privileged' businesses, primarily those with juicy government contracts or GOP cronies in office. Only in the textbook model, is it assumed that the oligopolist's market demand curve becomes less elastic at prices below a certain point. In markets characterized by the continuing decline in the number of 'sellers', it is obvious that there are fewer motivations for oligopolists to reduce prices. In such a market, the oligopolist (an aspiring monopolist) makes more money selling fewer units at higher prices than could be earned selling more units at lower prices. How many people are out of a job makes no difference to the American right wing for whom Scrooge is their abiding inspiration.
Perhaps a quick review of Friedman's policies as they were, in fact, made policy under the dubious and failed regime of Ronald Reagan best remembered for his reprise of the Great Depression, castrating the American labor movement on behalf of his corporate robber baron sponsors, and a criminal/terrorist enterprise which, in fact, made terrorism worse under his administration as that of any other US administration since World War II. Ronald Reagan himself need not have worried about the opinion of Iran/Contra Special Prosecutor Lawrence Walsh who believed Reagan guilty of conspiring to arm an avowed enemy of the US while funneling money to a right-wing terrorist organization.
To the spellbinder, everything becomes subordinated to their conviction that they are exceptional, sometimes even messianic. An ideology can emerge from such individuals that is certainly partly true, and the value of which is claimed to be superior to all other ideologies. They believe they will find many converts to their ideology and when they discover that this is not the case, they are shocked and fume with “paramoral indignation.” The attitude of most normal people to such spellbinders is generally critical, pained and disturbed.

The spellbinder places on a high moral plane anyone who succumbs to his influence, and he will shower such people with attention and property and perks of all kinds. Critics are met with “moral” outrage and it will be claimed by the spellbinder that the compliant minority is actually a majority.

Such activity is always characterized by the inability to foresee its final results, something obvious from the psychological point of view, because its substratum contains pathological phenomena, and both spellbinding and self-charming make it impossible to perceive reality accurately enough to foresee results logically.

In a healthy society, the activities of spellbinders meet with criticism effective enough to stifle them quickly. However, when they are preceded by conditions operating destructively on common sense and social order - such as social injustice, cultural backwardness, or intellectually limited rulers manifesting pathological traits - spellbinders activities have led entire societies into large-scale human tragedy.

Such an individual fishes an environment or society for people amenable to his influence, deepening their psychological weaknesses until they finally become a ponerogenic union.
-- The Role of the Psychopath in the Generation of Global Evil
Reagan apologists often attack Jimmy Carter because, like the predators they are, they smell weakness. It is a mistake. Critics are invariably wrong or lying about Carter. Carter, is in fact among the best Presidents in job creation and he is the only US President to have brokered a Middle East peace --the Camp David Accords. In the wake of the 1973 Yom Kippur War, Carter acted quickly. He replaced Kissinger's incremental, shuttle diplomacy with a comprehensive, multilateral approach that included reconvening the 1973 Geneva Conference to include a Palestinian delegation. The GOP feared to duplicate that approach. It might have succeeded. Democrats, meanwhile, should stop running away from what it means to be a Democrat. Get a spine! Stand up and be counted! You have nothing to fear from a gang of lying perverts, discredited 'supply-siders', bigots and war mongers, in other words, the GOP.
Reagan’s election in November 1980 also was welcomed in other quarters. His victory set off celebrations in the well-to-do communities of Central America. After four years of Jimmy Carter's human rights nagging, the region's anti-communist hard-liners were thrilled that they had someone in the White House who understood their problems.
The oligarchs and the generals had good reason for optimism. For years, Reagan had been a staunch defender of right-wing regimes engaged in bloody counterinsurgency campaigns against leftist enemies.
In the late 1970s, when Carter's human rights coordinator, Pat Derian, criticized the Argentine military for its "dirty war" -- tens of thousands of "disappearances," tortures and murders -- then-political commentator Reagan joshed that she should "walk a mile in the moccasins” of the Argentine generals before criticizing them. [Martin Edwin Andersen's Dossier Secreto.]
Despite his aw shucks style, Reagan found virtually every anti-communist action justified, no matter how brutal.
From his eight years in the White House, there is no historical indication that he was troubled by the bloodbath and even genocide that occurred in Central America during his presidency, while he was shipping hundreds of millions of dollars in military aid to the implicated forces.
The death toll was staggering -- an estimated 70,000 or more political killings in El Salvador, possibly 20,000 slain from the contra war in Nicaragua, about 200 political "disappearances" in Honduras and some 100,000 people eliminated during a resurgence of political violence in Guatemala.
The one consistent element in these slaughters was the overarching Cold War rationalization, emanating from Ronald Reagan's White House.
--Robert Parry, Obama's Dubious Praise for Reagan
Hoping to deflect attention from the new Augustus, Reagan worshipers claim that Carter was responsible for "horrible inflation" and 20% interest rates. So what? Interest rates would be expected to decline under Reagan's depression as interest rates, in fact, decline in every recession or depression.

During Reagan's depression, the GDP declined at a rate of 2.2 percent, quite possibly the biggest such decline since the Great Depression, most certainly it was the biggest decline in the more than twenty years between 1973 to the assumption of the White House by Bush. Millions lost jobs and homes.

In any case, it was the Federal Reserve Board that slashed interest rates and expanded the money supply, thus reducing prices. Ronald Reagan had nothing whatsoever to do with it! It was the Fed --not Reagan, not GOP give-aways to the MIC --who was responsible for the following but short-lived recovery.

Under Carter, people were at work and productive. They were buying homes --not leaving them under the threat of imminent foreclosure as many, perhaps, millions did under Reagan, as millions are doing now under the lame-duck cretin.

It was Reagan who destroyed the trade unions, exported jobs and technology, and plunged the nation into a depression of two years --the very worst since Herbert Hoover's Great Depression! It was Reagan and the endemically crooked, stupid GOP who fucked up America.

Before Reagan, America had a steel industry. After Reagan, it didn't. Before Reagan, America had a viable automotive industry. After Reagan, the US was buying its cars from Japan. Before Reagan, small retailers still existed and many thrived. After Reagan, small stores had all but disappeared, giving way to huge corporate chains, and, in time, WalMart --an economic Kudzu that ate the American economy.

Typically, Reagan would take credit for reforms begun under Carter. It was Carter who gave the rich a capital gains tax cut, even as he deregulated key industries like trucking and airlines. Carter also increased defense spending. I happen to think Carter ought not have done that! But, to his credit, he didn't muck it up nearly as much as did Reagan who sold his soul for the elite GOP base of robber barons and other vote buyers! The moral of the story is this: don't sell your soul to the GOP robber barons. They don't appreciate it and will support a card-carrying "seed pod" like Reagan or Bush anyway.

As bad as all that is, Reagan's lasting legacy is his worst and most dangerous. Reagan may have blown the world's last chance to achieve a non-nuclear peace.
Reagan is a study in complexity. He believed in balanced budgets but never submitted one; feared a nuclear apocalypse but built a huge stockpile of weapons; preached family values while presiding over a dysfunctional family.
--American Experience
The story is about the talks Reagan held with the Soviet Union's Mikhail Gorbachev at Reykjavik. It was Gorbachev who first put total nuclear disarmament on the table. It was Ronald Reagan, indebted to his radical base, who blinked.
If, that is, the ensuing “Great Society,” to borrow a term from JFK’s successor, Lyndon Johnson, were laid low by a nuclear attack on an American city (or seven, if al Qaeda had its way).
This is the territory into which Gorbachev launched his most daring raids. First, in 1985, he announced that the Soviet Union would no longer deploy intermediate-range nuclear forces (INFs) in Eastern Europe. Later that year, he proposed that both his country and the US slice their nuclear arsenals in half.
The next year, at the memorable Reykjavik summit, Gorbachev got Ronald Reagan to agree in principle to his plan for removal of all INFs from Europe, as well as to draw them down worldwide. Caught up in Gorbachev’s enthusiasm, Reagan expressed a willingness to join Russia in eliminating all nuclear weapons in 10 years.
In the end, though, Reagan clung to his blankie, the Strategic Defense Initiative (Star Wars). Gorbachev feared SDI would lead to nukes in space, not to mention leave the Soviet defense establishment with the impression he’d been played. Their dreams of saving the world came crashing back down to earth.
--It’s not a new JFK we need in Obama, but the next Gorbachev
A typical Republican, Reagan said many things and did the opposite. That's because every Republican has two stories to tell: one they tell to their base via "code words" like "family values"; the other, they tell to the world. This second category often consists of lies and pure BS. In this case, Reagan talked the talked --world peace, nuclear disarmament, etc. When Gorbachev raised the stakes and called the bluff --total nuclear disarmament --Reagan blinked! He suddenly recalled his base, the clique, the Military/Industrial complex, the moneyed class that "brung 'em"! Reagan was not, had never been his 'own man'.

Here is what Reagan himself said about the threat of nuclear war.
The Russians sometimes kept submarines off our East Coast with nuclear missiles that could turn the White House into a pile of radioactive rubble within six or eight minutes. Six minutes to decide how to respond to a blip on a radarscope and decide whether to unleash Armageddon! How could anyone apply reason at a time like that? There were some people in the Pentagon who thought in terms of fighting and winning a nuclear war. To me it was simple common sense: A nuclear war couldn't be won by either side. It must never be fought. Advocates of the MAD policy believed it had served a purpose: The balance of terror it created had prevented nuclear war for decades. But as far as I was concerned, the MAD policy was madness.
--Ronald Reagan, The Official Site
So, if that's how Ronald Reagan really felt about nuclear madness, why did he blow what is perhaps our last chance at peace? The answer is simple. Reagan had made a Faustian bargain. He had never been free to follow his conscience. He had never been free to do what was right or best for the nation and the world.

Three myths about the cold war"
  • 'We won the cold war'! In fact, the end of the 'Cold War' was negotiated.
  • 'The Soviet Union collapsed because the US brought pressure to bear or because Unca Ronnie 'outspent' them.' In fact, the opposite is true as you will learn.
  • 'Ronald Reagan defeated communism'. In fact, Ronald Reagan defeated America!
Let's set the record straight. Ronald Reagan had nothing to do with the fall of communism. A great statesman-- Mikhail Gorbachev --deserves the credit for withdrawing nuclear weapons from Eastern Europe which he did upon his own initiative. Gorbachev was the architect of Perestroika and, later, Glasnost. Reagan merely followed the leader.

As I have pointed out: Ronald Reagan Blew the World's Last Chance for Peace! It was Gorbachev --a real leader --who had put total nuclear disarmament on the table. It was an offer Reagan could not accept! Reagan had bosses who had already made him an offer he didn't refuse: the sale of his soul!

The real power base back home would have had Reagan's head. Reagan was a typical Republican, that is, he said many things and did the opposite. Every Republican has two stories to tell: one that he/she tells the base via "code words" like "family values" the other, he/she tells to the world. This second category is most often just lies and bullshit. In this case, Reagan had talked the talked --world peace, nuclear disarmament, etc.

As the figure-head for an entire class that had been enriched by 'cold war' military spending, Reagan could not negotiate with Gorbachev in 'good faith'. Today --the same folk have a vested interest in a destabilized middle east. Fortunes were made in Bush's attack and invasion of Iraq.
Why did he blow what is perhaps our last chance at peace?

Rank and file goppers will find reasons not to believe anything unflattering about Reagan but that's not the same thing as refuting anything that I have ever written in my admittedly Quixotic quest to set the record straight.

Reagan-heads have often tried to shout me down on these issues. But facts are facts and the fact is it was Ronald Reagan, indebted to GOP money interests back home, a tiny elite of just one percent of the total population, who blinked at Reykjavik and thus blew --perhaps forever --what might have been the world's last chance for a non-nuclear peace.
If, that is, the ensuing “Great Society,” to borrow a term from JFK’s successor, Lyndon Johnson, were laid low by a nuclear attack on an American city (or seven, if al Qaeda had its way).

This is the territory into which Gorbachev launched his most daring raids. First, in 1985, he announced that the Soviet Union would no longer deploy intermediate-range nuclear forces (INFs in Eastern Europe. Later that year, he proposed that both his country and the US slice their nuclear arsenals in half.)

The next year, at the memorable Reykjavik summit, Gorbachev got Ronald Reagan to agree in principle to his plan for removal of all INFs from Europe, as well as to draw them down worldwide. Caught up in Gorbachev’s enthusiasm, Reagan expressed a willingness to join Russia in eliminating all nuclear weapons in 10 years.

In the end, though, Reagan clung to his blankie, the Strategic Defense Initiative (Star Wars.

Gorbachev feared SDI would lead to nukes in space, not to mention leave the Soviet defense establishment with the impression he’d been played. Their dreams of saving the world came crashing back down to earth.

--It’s not a new JFK we need in Obama, but the next Gorbachev
Recently, Mitt Romney built his failed campaign around two words: 'Ronald' and 'Reagan' just as Giuliani built his around 'nine' and 'eleven', as McCain built his platform around three words: 'stay', 'Iraq', 'surge'!

Morally bankrupt and out of ideas, the GOP has tried to make of Ronald Reagan a "savior". Failing live leadership, the GOP settled for myths and desperate hope for the "second-coming" of Ronald Reagan! It won't work. Reagan is still dead!

At another level, rank and file GOP understand that should a deified Reagan fall out of the Pantheon, the party itself is finished. Reagan was all they had left. In the blogosphere, Reagan defenders themselves are resurrected, more vehement and less rational than ever. To wit:
The lies of the left about Ronald Reagan stink up the blogosphere worse than a rest room at a Greyhound bus depot.
I leave it to Larry Craig to assess the stalls at Greyhound --a topic about which he may have considerable expertise and foot-tapping experience. Craig is but a specimen of GOP hypocrisy, lack of imagination, it's endemic inability to come up with anything other than stupid slogans on the one hand and lies, smears, propaganda, assassination on the other. It's their one-two punch! Various sexual perversions to include sado-masochism and homosexuality are just contrapuntal to the sellouts made to the Military/Industrial complex.

The presidency of Ronald Reagan confirms the assertion: the GOP is not a political party, its a criminal conspiracy, a kooky cult built up around Reagan types who encourage addled followers to 'feel good about being liars, psychopaths, and elite militarists.
In my book, Without Conscience, I argued that we live in a "camouflage society," a society in which some psychopathic traits- egocentricity, lack of concern for others, superficiality, style over substance, being "cool," manipulativeness, and so forth- increasingly are tolerated and even valued. With respect to the topic of this article, it is easy to see how both psychopaths and those with ASPD could blend in readily with groups holding antisocial or criminal values. It is more difficult to envisage how those with ASPD could hide out among more pro social segments of society. Yet psychopaths have little difficulty infiltrating the domains of business, politics, law enforcement, government, academia and other social structures. It is the egocentric, cold-blooded and remorseless psychopaths who blend into all aspects of society and have such devastating impacts on people around them who send chills down the spines of law enforcement officers.

--[Hare, Robert D., PhD., Psychopathy and Antisocial Personality Disorder: A Case of Diagnostic Confusion, Psychiatric Times, February 1996: Vol. XIII Issue 2] The Role of the Psychopath in the Generation of Global Evil
Reagan was precisely what the GOP needed at the time. A former movie star, he was a practiced Spellbinder.
To the spellbinder, everything becomes subordinated to their conviction that they are exceptional, sometimes even messianic. An ideology can emerge from such individuals that is certainly partly true, and the value of which is claimed to be superior to all other ideologies. They believe they will find many converts to their ideology and when they discover that this is not the case, they are shocked and fume with “paramoral indignation.” The attitude of most normal people to such spellbinders is generally critical, pained and disturbed.The spellbinder places on a high moral plane anyone who succumbs to his influence, and he will shower such people with attention and property and perks of all kinds. Critics are met with “moral” outrage and it will be claimed by the spellbinder that the compliant minority is actually a majority.Such activity is always characterized by the inability to foresee its final results, something obvious from the psychological point of view, because its substratum contains pathological phenomena, and both spellbinding and self-charming make it impossible to perceive reality accurately enough to foresee results logically.In a healthy society, the activities of spellbinders meet with criticism effective enough to stifle them quickly. However, when they are preceded by conditions operating destructively on common sense and social order - such as social injustice, cultural backwardness, or intellectually limited rulers manifesting pathological traits - spellbinders activities have led entire societies into large-scale human tragedy.Such an individual fishes an environment or society for people amenable to his influence, deepening their psychological weaknesses until they finally become a ponerogenic union.
-- The Role of the Psychopath in the Generation of Global Evil
There is enough probable cause in the public record alone to indict the leadership of the GOP for violations of various US Criminal Codes having to do with "criminal conspiracy". Now we know why the GOP is eager to keep Reagan alive and disprove the existence of conspiracies. If conspiracies did not exist, Ronald Reagan himself need not have worried about the opinion of Iran/Contra Special Prosecutor Lawrence Walsh who believed Reagan guilty of conspiring to arm an avowed enemy of the US while funneling money to a right-wing terrorist organization.
The underlying facts of Iran/contra are that, regardless of criminality, President Reagan, the secretary of state, the secretary of defense, and the director of central intelligence and their necessary assistants committed themselves, however reluctantly, to two programs contrary to congressional policy and contrary to national policy. They skirted the law, some of them broke the law, and almost all of them tried to cover up the President's willful activities.

What protection do the people of the United States have against such a concerted action by such powerful officers? The Constitution provides for congressional oversight and congressional control of appropriations, but if false information is given to Congress, these checks and balances are of lessened value.

--Lawrence Walsh, Final Report of the Independent Counsel for Iran/Contra Matter
As has been pointed out, Jimmy Carter is in fact among the best Presidents in job creation. The GOP attack Carter because they fear and resent his successes.
Reagan’s election in November 1980 also was welcomed in other quarters. His victory set off celebrations in the well-to-do communities of Central America. After four years of Jimmy Carter's human rights nagging, the region's anti-communist hard-liners were thrilled that they had someone in the White House who understood their problems.
The oligarchs and the generals had good reason for optimism. For years, Reagan had been a staunch defender of right-wing regimes engaged in bloody counterinsurgency campaigns against leftist enemies.
In the late 1970s, when Carter's human rights coordinator, Pat Derian, criticized the Argentine military for its "dirty war" -- tens of thousands of "disappearances," tortures and murders -- then-political commentator Reagan joshed that she should "walk a mile in the moccasins” of the Argentine generals before criticizing them. [Martin Edwin Andersen's Dossier Secreto.]
Despite his aw shucks style, Reagan found virtually every anti-communist action justified, no matter how brutal.
From his eight years in the White House, there is no historical indication that he was troubled by the bloodbath and even genocide that occurred in Central America during his presidency, while he was shipping hundreds of millions of dollars in military aid to the implicated forces.
The death toll was staggering -- an estimated 70,000 or more political killings in El Salvador, possibly 20,000 slain from the contra war in Nicaragua, about 200 political "disappearances" in Honduras and some 100,000 people eliminated during a resurgence of political violence in Guatemala.
The one consistent element in these slaughters was the over-arching Cold War rationalization, emanating from Ronald Reagan's White House.
--Robert Parry, Obama's Dubious Praise for Reagan
Hoping to deflect attention from the new Äugustus, Reagan worshipers claim that Carter was responsible for "horrible inflation" and 20% interest rates. So what? Interest rates would be expected to decline under Reagan's depression as interest rates, in fact, decline in every recession or depression.

During Reagan's depression, the GDP declined at a rate of 2.2 percent, quite possibly the biggest such decline since the Great Depression, most certainly it was the biggest decline in the more than twenty years between 1973 to the assumption of the White House by Bush. Millions lost jobs and homes. In any case, it was the Federal Reserve Board that slashed interest rates and expanded the money supply, thus reducing prices. Ronald Reagan had nothing whatsoever to do with it! It was the Fed --not Reagan --who was responsible for the following but short-lived recovery.

Under Carter, people were at work and productive. They were buying homes --not leaving them under the threat of imminent foreclosure as many, perhaps, millions are doing now. That was not the case under Reagan who destroyed the trade unions, exported jobs and technology, and plunged the nation into a depression of two years ---the very worst since Herbert Hoover's Great Depression!

Ronald Reagan justified disastrous economic policies with ideological nonsense called 'supply-side economics or, derisively, 'Trickle Down' theory might have worked in a completely "closed economy". But the US imports goods from abroad. 'Tax cuts' to non-productive, American elites who outsource [read: export] jobs abroad will only squirrel away a 'tax cuts' in a safe haven beyond the reach of the tax man. It is money that will never trickle down. It is monies lost forever to investment inside the United States. It is the mechanism by which the GOP has made of America a third world nation. It is the mechanism by which the axis of Reagan/Bush destroyed a once great nation!
The US, a net debtor nation, imports most of its automobiles, appliances, and electronic goods from abroad. No wealth trickles down. Items that had been the staple of the US economic engine had, at one time, provided jobs at home. That has not been the case since Ronald Reagan and the GOP feasted upon the rotting carcass that had been the source of US industrial might. Compounding the tragedy, Ronald Reagan slashed taxes for millionaires and billionaires and everyone else got poor.

"Globalization" amid Ronald Reagan's orgy of union-busting, offshore tax havens and outsourcing, must be blamed for the decline of US exports, the collapse of major US industries, the fact that the US is now a third world nation behind a mask of Hollywood and glitz. The US now pulls up the rear, behind China, Japan, Europe and much of the world. Everything from jeans to binoculars now come from China, IT is outsourced to India, and I see few Americans driving anything but Japanese cars.
Given this hole dug over more than twenty years, I am as outraged as I am unimpressed with the crumbs now thrown the rest of us by this profligate administration, this profligate, arrogant party.
Meanwhile, the nation’s official poverty rate declined for the first time this decade, from 12.6 percent in 2005 to 12.3 percent in 2006. There were 36.5 million people in poverty in 2006, not statistically different from 2005. The number of people without health insurance coverage rose from 44.8 million (15.3 percent) in 2005 to 47 million (15.8 percent) in 2006. 
--US Census Bureau Release, AUG. 28, 2007
Capital "trickling up" to Bush's base is money lost to productive investment, lost to small business, lost to consumers who might have spent it in ways that would have created jobs here in the US.
Before Reagan, America had a steel industry. After Reagan, it didn't. Before Reagan, America had a viable automotive industry. After Reagan, the US was buying its cars from Japan. Before Reagan, small retailers still existed. After Reagan, small stores had all but disappeared, giving way to huge corporate chains, and, in time, WalMart --the economic Kudzu that ate America.

Typically, Reagan would take credit for reforms begun under Carter. It was Carter who gave the rich a capital gains tax cut, even as he deregulated key industries like trucking and airlines. Carter also increased defense spending. I happen to think Carter ought not have done that! But, to his credit, he didn't muck it up nearly as much as did Reagan who sold his soul for the elite GOP base of robber barons, war lords and buyers of crooked GOP politicians!

The era was largely characterized by the undue influence of corporate PACs which forced Congress to pass pro-business/anti-individual, anti-family legislation. Supply-siders believed it would trickle down. Like Bush's war on Iraq, it didn't work out as planned. The nation was plunged into the worst and longest (two years) depression since WWII.

The GOP was in need of another 'cold war' when Reagan tried to exploit several 'war' --a warn on porn (Ed Meese's favorite topic), a war on drugs, and, a war on terrorism which Reagan clearly lost. FBI stats prove beyond any reasonable doubt that 'terrorism' is always worse under GOP regimes and that is true because GOP policies create terrorism. The GOP cannot create success with its own policies and will, therefore, subvert the successes of other parties. The GOP can only run against 'commies', 'drugs', 'porn' or 'terrorism'. If it must, the GOP will inspire or support terrorism if there is no real terrorism to exploit. Facts are facts. Terrorism was three times worse under the regime of Ronald Reagan as that of Bill Clinton. There is a rational explanation for that the fact that terrorism is always worse under GOP regimes. That explanation is this: GOP policies cause and inspire terrorism if the GOP does not actively create and support it as it did in the Iran/Contra scandal.

Much is made of the demoralized military under Carter. What had they to be demoralized about? The military was no longer slogging through the swamps in Viet Nam and they had to yet to be sent to Lebanon by Ronald Reagan. The Pentagon brass should just get over it! The Pentagon Brass are created to serve the nation; the 'nation' is not created in order to servce the brass.

The 'Pentagon Brass' are not 'war heroes'. They don't put their lives on the front lines. They don't get shot it! They are glorified pencil pushers and bureaucrats. If they were disgruntled, it is no fault of the electorate. Fuck 'em! If they don't like their jobs, then let them find another line of work. Let them follow Herbert Hooover's advice; in other words, 'let them sell oranges from a pushcart!'

All in all, the enlisted person, under Carter, had it a helluva lot better than do soldiers under either Ronald Reagan who dispatched them to Lebanon to be blown up in a Marine Barracks or under Bush who mired and dehumanized them in Iraq. Has anyone bothered to check out the suicide rates of returning servicemen?
(CBS) Some of America's 25 million veterans face their biggest fight when they return home from the battlefield -- when they take on mental illness.

And, a CBS News analysis reveals they lose that battle, and take their own lives, at a clip described by various experts as "stunning" and "alarming," according to Chief Investigative Correspondent Armen Keteyian. One called it a "hidden epidemic."

He says no one had ever counted just how many suicides there are nationwide among those who had served in the military -- until now.

The five-month CBS News probe, based upon a detailed analysis of data obtained from death records from 2004 and 2005, found that veterans were more than twice as likely to commit suicide in 2005 as non-vets.

A recent Veteran Affairs Department estimate says some 5,000 ex-servicemen and women will commit suicide this year, largely as a result of mental health issues, and Keteyian says, "Our numbers are much higher than that, overall."

--CBS News: Vets' Suicide Rate "Stunning"
Goppers have been known to opine: ...cleaning up after Carter's utter incompetence was messy. In fact, there was nothing to clean up. There was, in fact, nothing for Reagan to do but screw up and screw up he did! The nation would have been better off if Reagan has done absolutely nothing! See my article: Reagan was no hero but he played one in a movie.
That's because, under Reagan, the GOP became not merely a crime syndicate, it became a kooky cult.
The methods that cults use can be used by anyone in any group setting and can be thought of as a "Management system" or a technique of motivation. Thus there is a benefit to applying this knowledge in other areas.
ISOLATION
An obvious way a cult does this is through isolation from other social networks. The extreme of a cult does not have to be applied. If this is applied to a work setting then the stated rule is "This is work. Leave the other parts of life at the door." Likewise the person can go home and leave work at work. The result is a "work personality" and a "home personality".
ENLIST THEM IN A CAUSE
Nothing is quite so motivating than to be involved in a glorious cause. To do this make the success of the group linked to the individuals success. Make the cause lofty and ideal and progressive always on the wave of the future.
DESCRIBE FOR THEM THE QUALITIES OF A "GOOD SOLDIER"
Once you've enlisted them in a cause you can now tell them how best to serve the cause. By describing the qualities of "good soldier" you create an ideal of behavior. On the one hand it's important to point out qualities that they already have to affirm their part in the cause. But it's also important to describe qualities that they will have to work to develop. These qualities can be actual behaviors or they can values that you wish to impose on them. Either way you are holding them to an ideal and letting them know that they play a vital role in the cause.
DRILL THE "GOOD SOLDIER" INTO EXISTENCE (the Nazi/Gop way?) 

A cult may do this process with intense drills and exercises that emphasize the qualities and values of a good soldier. They will create scenarios and situations where these qualities can be tested and followed up with feedback and correction when needed. You can do this in a management setting much the same way. The goal is to make them WANT to bring on this new personality and do it without prompting. This is done mostly by creating a high standard and through a subtle application of rewards and punishment.
CREATE A GROUP MYTH
Nothing will solidify the new personality than getting a group of "good soldiers" together and having them work with some great purpose in mind. By getting your employee, staff, cult member involved in a group and putting them into action as a group you help create an "esprit de corp" that unifies them and helps solidify the newly created personality. Thus, find tasks that your group can do together. It could be a project, a field trip or anything where they have to work together as a group.
Every one of these tactics can be used and applied in your business and social settings.
If your response to this is to recoil at the idea of using cult strategies then stop it. These strategies are used all the time in many different setting and situations. A good manager is a person who would make a good cult leader if they choose to do it.
The benefits of this strategy include highly motivated people who support the team and, when needed, can put work on hold to develop a personal life.
--How cults create an artificial personality in their followers
If the policies worked, Reagan could take credit for them. If they didn't work, Reagan and the GOP noise machine always had Carter to blame! The GOP still bad-mouths Carter though there is not a Republican who can carry Carter's ...uh...water.
When I talk of tax cuts, I am reminded that every major tax cut in this century has strengthened the economy, generated renewed productivity and ended up yielding new revenues for the government by creating new investment, new jobs and more commerce among our people.
--Ronald Reagan, Acceptance Speech at the 1980 Republican Convention
That's a famous Reagan half-truth. Keynesian, Democratic tax cuts, indeed, stimulate economies but only under Democratic regimes --not under GOP regimes. The reason: Democratic tax cuts are egalitarian, benefiting all income groups and classes. GOP tax cuts, by contrast, are deliberately inequitable, benefiting only rich cronies, the corporate establishment, the Military/Industrial complex and other corporate supporters of the GOP establishment. GOP tax cuts do not and have never 'trickled down'. GOP tax cuts are a payoff, just as were the no-bid contracts to Halliburton, Blackwater et al! I've got the stats from the Bureau of Labor Statistics, the Census Bureau, and the BEA to prove it.

Despite his over-blown, high sounding rhetoric, Reagan's "trickle down" tax cut of 1982 was quickly followed by a depression lasting some two years --the longest and deepest depression since Herbert Hoover's "Great Depression".

At the end of two years of hardship, Americans were no better off. The GDP growth rate of some three percent was no better at the end of those two years than it had been before the Reagan crash. Nothing had been gained for the suffering.

The Reagan years can be summed up briefly. He doubled the size of the Federal Bureaucracy and tripled the national deficit. The most pernicious effect of GOP economic policy is the effect of declining opportunity, a corollary of decline in wealth among all but the very rich.

It is merely rhetorical to ask: why does the GOP seem to repeat ad nauseam utterly failed strategies that have never been shown to work? Reagan's Budget Director, David Stockman called Reaganomics a 'Trojan Horse'. He understood that tax cuts were not intended to trickle down. That's just how they are sold. Rather --the tax cuts always do precisely what the GOP insiders know they will do: they enrich the GOP base! They are 'laundered' pay offs. Here is how someone who lived through the Reagan nightmare remembers it:
I was in the automotive field at the time, and dozens and dozens of established tool manufacturers, unionized shops, producing high quality tools, small companies with deep roots and real a commitment to the towns they were in all across the Midwest and the local communities, went out of business.
Why? Because with deregulation any hustler could get virtually unlimited financing and set up manufacturing plants overseas producing exact copies of American made tools and flood the US market with them with no fear of the Reagan administration enforcing any laws against them. It also became easier, and far less risky, to get financing to set up a thousand junky identical chain outlets than it did for small local businesses to get credit or tax relief - restaurants, auto parts stores, hardware stores, grocery stores, florists - thousands and thousands of small businesses chewed up and destroyed.
We have a younger generation of people who have no personal experience with so many things - local businesses and tight knit communities, affordable, convenient and efficient public transportation, wages that allowed one person in a household enough income to support the family, homes that were homes, not investments, easy access to public recreation, confidence in the safety of food and other consumer items, all regulated and inspected for the public welfare, freedom from the relentless intrusion of corporations into our lives, and on and on and on.
Or if we buy into the dishonest rationales and excuses and obfuscations that the Reagan administration used to disguise their agenda and to sell it to the public, we surrender any chance at real change, we bury the coffin forever into which the right wingers have put the left - and by extension, the majority of the American people, and we condemn ourselves to living in this ongoing nightmare of destruction and human suffering.Reagan destroyed the country, and if we try to gloss over that (which at the very least Obama's remarks have done.
It is not time to make nice with the Reagan legacy propagandists, even by implication or omission. It is time to relentlessly and fearlessly point out that the crisis the country is in is best described and analyzed as the chickens coming home to roost from the Reagan era.
It is time to fight. It is not time to heal or move on—no matter how attractive and appealing this may be—it is not time to paper over the profound divide in the country, it is not time to accommodate or apologize for.
--Found on the Democratic Underground
Let's take a look at the history before it gets re-written:
  • Any Democratic President has presided over greater economic growth and job creation than any Republican President since World War II.
  • When Bush Jr took office, job creation was worst under a Republican, Bush Sr, at 0.6% per year and best under a Democrat, Johnson, at 3.8% per year.
  • Economic growth under President Carter was far greater than under Reagan or Bush Sr. In fact, economic growth in general was greater under Johnson, Kennedy, Carter, and Clinton than under Reagan or Bush. Democrats always outperform a failed party: the GOP!
  • The job creation rate under Clinton was 2.4% significantly higher than Ronald Reagan's 2.1% per year.
  • The "top performing Presidents" by this standard, in order from best down, were Johnson, Carter, Clinton, and Kennedy. The "worst" (in descending order) were Nixon, Reagan, Bush.
  • Half of jobs created under Reagan were in the public sector--some 2 million jobs added to the Federal Bureaucracy. Hadn't he promised to reduce that bureaucracy?
  • Reagan, though promising to reduce government and spending, tripled the national debt and left huge deficits to his successor. Bush Jr's record will be even worse.
  • By contrast, most of the jobs created on Clinton's watch were in the private sector.
  • Put another way: any Democratic President beats any Republican President since World War II.
Everything posted above is based upon official, government stats from the Census Bureau, Bureau of Labor Statistics, CBO, and BEA among others. They are 'official' and irrefutable unless someone wants to make the outlandish case that the Federal Bureaucracy, the numerous agencies which keep these stats, is somehow biased. That argument is absurd in light of the fact that of those 20 years from the election of Ronald Reagan to the stolen election of 2000, Democrats had the Presidency in only eight of them.

Along the way, Reagan made up a whopper --his story about a Cadillac driving welfare gra'ma. The story reveals the real Reagan --Reagan the bald-faced liar! This bald-faced lie became his rationalization for cutting back social programs. Unca Ronnie most certainly knew it to be a bald-faced lie.

Then there was the attack and invasion of tiny Grenada. Does anyone remember how Grenada became an imminent threat to US security such that a war of aggression against it was necessitated or justified under international law?
Reagan must be remembered for:
  1. having blown a chance for nuclear disarmament at Reykjavik
  2. beginning a trend still underway but for a brief respite in Clinton's second term, that is, the rich get filthy rich exponentially while everyone else loses ground
  3. making those who benefit from this rapacious policy 'feel good about themselves'
  4. institutionalizing government corruption with Iran/Contra, the Savings and Loan Scandal, and a child prostitution ring that was literally run out of the White House
  5. lying about a 'welfare grannie' whom Reagan claimed drove a Caddy! Bullshit
  6. anemic job growth which --contrary to popular myth --trails that of Jimmy Carter
  7. [Check BEA, Bureau of Labor Stats, and CB]
  8. making terrorism worse, in fact, terrorism incidents were THREE TIMES more numerous under Reagan than any Demo president since WWII. [Source: FBI Stats, published, compiled and charted by the Brookings Inst.; See:Terrorism is Worse Under GOP Regimes]
  9. almost starting a nuclear war when he shot off his stupid mouth on an open microphone about radar detecting Russian ICBMs enroute to the US
  10. The whole world heard him and, as I recall, the Soviets actually went on alert 9
  11. conquering Grenada (to his credit Reagan did NOT wear an enhancing cod-piece and an ill-fitting jumpsuit)
  12. Ronald Reagan ordered a US invasion of Lebanon in 1982 premised upon a "deceitful pretext", in other words, a bald-faced lie! The "pretext" was that the PLO, called a terrorist organization, had shot the Israeli ambassador to London. In fact, the shooter may never have been a PLO member. See: [Fading Illusions: D-Day and Reagan]
  13. finishing off the last vestige of the labor movement depriving the voiceless of 'voice'
  14. elevating style over substance and stupidity over intellect, an area he pioneered for the Bushmen to come
  15. cutting funding for AIDS research in the hope that all 'immoral' AIDS sufferers would die off and thus 'cure' the disease
  16. waging a war on 'porn' and losing to the un-reported glee of the jerkoffs and child prostitution rackets headquartered inside his White House, his administration
  17. waging war on education by calling for an end to free tuition for state college and university students, demanding 20% across-the-board cuts in higher education funding,repeatedly slashing construction funds for state campuses, engineering the firing of Clark Kerr, the popular President of the University of California, declaring that the state "should not subsidize intellectual curiosity [the rationale: the GOP is safe when all of us are kept stupid, uneducated, or in the dark!]
  18. waging war on the environment and winning!
  19. waging the GOPs obligatory 'war on drugs' and losing!
  20. selling out to the big corporations
  21. presiding over the demise of the US Steel industry, car industry, electronics industry and almost every industry in which the US, at one time, led the world
  22. last --but not least --presiding over the end of American empire by making of the US a net debtor nation which it has been ever since.
Only the GOP could have destroyed a nation so efficiently and have the nerve to tout it on TV ads! Bush Jr has finished the job begun by Reagan. See ya' in hell!

The government's own numbers prove conclusively that Reagan's tax cuts enrich his base and began a pernicious trend which continues to this day. The nation plunged into a depression of some two years, the longest and worst depression since Hoover's big one of the 1930s. Though he had promised to reduce the size of government, Reagan doubled the federal bureaucracy, doubled the debt, and tripled the deficit. He blazed a trail for Bush, the lesser and idiot!Reagan showed them how to destroy a nation.

Nations which tax the rich progressively are more egalitarian, more efficient, more productive and --it is proven in numerous studies --the people themselves are happier, more productive, and better educated. The opposite is true of America. More people are getting poorer; fewer are getting richer; an increasingly tiny percentage (one percent and shrinking) are getting exponentially richer. It is the end of the United States as a world power, indeed, as a viable nation!

GOP thinking is circular and symptomatic of psychosis. They disdain 'poor people' while deliberately creating conditions guaranteed to create more of them.

How an 'honest' general summed it all up:
WAR is a racket. It always has been.

It is possibly the oldest, easily the most profitable, surely the most vicious. It is the only one international in scope. It is the only one in which the profits are reckoned in dollars and the losses in lives...

In the World War a mere handful garnered the profits of the conflict. At least 21,000 new millionaires and billionaires were made in the United States during the World War. That many admitted their huge blood gains in their income tax returns. How many other war millionaires falsified their tax returns no one knows...

Out of war nations acquire additional territory, if they are victorious. They just take it. This newly acquired territory promptly is exploited by the few – the selfsame few who wrung dollars out of blood in the war. The general public shoulders the bill...

And what is this bill?

This bill renders a horrible accounting. Newly placed gravestones. Mangled bodies. Shattered minds. Broken hearts and homes. Economic instability. Depression and all its attendant miseries. Back-breaking taxation for generations and generations...

...a war that might well cost us tens of billions of dollars, hundreds of thousands of lives of Americans, and many more hundreds of thousands of physically maimed and mentally unbalanced men.

Of course, for this loss, there would be a compensating profit – fortunes would be made. Millions and billions of dollars would be piled up. By a few. Munitions makers. Bankers. Ship builders. Manufacturers. Meat packers. Speculators. They would fare well.

Yes, they are getting ready for another war. Why shouldn't they? It pays high dividends...

The normal profits of a business concern in the United States are six, eight, ten, and sometimes twelve percent. But war-time profits – ah! that is another matter – twenty, sixty, one hundred, three hundred, and even eighteen hundred per cent – the sky is the limit. All that traffic will bear. Uncle Sam has the money. Let's get it...

Of course, it isn't put that crudely in war time. It is dressed into speeches about patriotism, love of country, and "we must all put our shoulders to the wheel," but the profits jump and leap and skyrocket – and are safely pocketed.
--Gen. Smedly Butler, War is a Racket!
An essential resource: This War was About So Much More

An addendum: 20 things you have to believe to be a Republican today
1. Being a drug addict is a moral failing and a crime, unless you're a conservative radio host. Then it's an illness and you need our prayers for your recovery.
2. The United States should get out of the United Nations, and our highest national priority is enforcing UN resolutions against Iraq.
3. Government should relax regulation of Big Business and Big Money but crack down on individuals who use marijuana to relieve the pain of illness.
4. "Standing Tall for America" means firing your workers and moving their jobs to India.
5. A woman can't be trusted with decisions about her own body, but multinational corporations can make decisions affecting all humankind without regulation.
6. Jesus loves you, and shares your hatred of homosexuals and Hillary Clinton.
7. The best way to improve military morale is to praise the troops in speeches while slashing veterans' benefits and combat pay.
8. Group sex and drug use are degenerate sins unless you someday run for governor of California as a Republican.
9. If condoms are kept out of schools, adolescents won't have sex.
10. A good way to fight terrorism is to belittle our longtime allies, then demand their cooperation and money.
11. HMOs and insurance companies have the interest of the public at heart.
12. Providing health care to all Iraqis is sound policy. Providing health care to all Americans is socialism.
13. Global warming and tobacco's link to cancer are junk science, but creationism should be taught in schools.
14. Saddam was a good guy when Reagan armed him, a bad guy when Bush's daddy made war on him, a good guy when Cheney did business with him and a bad guy when Bush needed a "we can't find Bin Laden" diversion.
15. A president lying about an extramarital affair is an impeachable offense. A president lying to enlist support for a war crime in which thousands were killed or murdered is a solid defense policy.
16. Government should limit itself to the powers named in the Constitution, which include banning gay marriages and censoring the Internet.
17. The public has a right to know about Hillary's cattle trades, but George Bush's AWOL record, cocaine abuse, and queer exploits is none of our business.
18. You support states' rights, which means Attorney General John Ashcroft can tell states what local voter initiatives they have a right to adopt.
19. What Bill Clinton did in the 1960s is of vital national interest, but what Bush did in the 1980s is irrelevant.
20. Trade with Cuba is wrong because the country is communist; but trade with China and Vietnam is vital to a spirit of international harmony.
--20 things you have to believe to be a Republican today