Fiscal Cliff: A Political Storm in a Water Glass – Roger Ingalls

“The fiscal cliff”, that’s a scary sounding phrase. If you say it real slow and low it sounds even more frightening. It’s amazing how pundits and mainstream media move from one political danger scene to the next like a well edited film with the whole thing directed by our politicians. Sound bites and scare tactics, it’s a coordinated attempt to boost ratings for media companies and make the suits in Washington look like they’re solving some country-killing crisis.

The election is over so now we’ve moving on to the next big thing…the fiscal cliff. I believe this is a big to-do about nothing. We’re led to believe that come January 2^nd, 2013 the economy will collapse if some nebulous balance of debt reduction and tax revenue collection isn’t successfully negotiated by our dysfunctional politicians. Really! If we’re relying on this motley crew of brainiacs to solve our economic woes, the party’s already over.

Would it be so catastrophic if we reached the end of the year without an agreement? The temporary tax breaks set in place by the George W Bush administration would come to an end if agreement isn’t reached. Essentially, Federal taxes would roll back to the Clinton era rates. Is this so outrageous? The country’s economic condition during the Clinton administration was one of the best in U.S. history.

In addition, government spending would automatically get cut if agreement isn’t reached. The biggest reduction would be in defense spending but the cuts would not come close to levels during the Clinton era. During the George W presidency defense spending tripled and we have nothing to show for it. Rolling back military budgets to similar levels used during the Clinton presidency is not outrageous. Again, the country ran extremely well during this period.

Lastly, if we hit the so called fiscal cliff due to lack of political agreement, Medicaid and Social Security would stay intact.

If political deadlock in Washington returns us to the responsible tax rates and spending of the Clinton administration then I say yes to the fiscal cliff. The frenzied screams of a pending financial crisis is overblown.  I can’t see why this looming event is being called a potential catastrophe.

I say we call Washington’s bluff and tell them we don’t want agreement, give us the cliff.

Protesting by Lawsuit: Politicians and Wall Street Sued – Roger Ingalls

Middle-class America has taken hit after hit for the past thirty years. It’s time to fight in a manner recognizable by the political liars and financial bullies. Perhaps we should protest by suing (en masses) congressmen, presidents, banks and related financial institutions.

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AMERICAN MIDDLE-CLASS HOUSEHOLDS

Plaintiffs,

v.

UNITED STATES CONGRESSMEN (from 1980 to Present), UNITED STATES PRESIDENTS (from 1980 to Present), ALL BANKS RECEIVING BAILOUTS (from 2007 to Present), and MAJOR CREDIT RATING AGENCIES

Defendants

CAUSE of ACTION

1. Since 1980, plaintiffs’ wealth has transferred to Wall Street, big businesses, the rich, banks and other financial institutions due to legislation enacted by Washington politicians.
2. Since 1980, Presidents and Congressmen have breached campaign promises and oral contracts presented to plaintiffs during election cycles.
3. Presidents and Congressmen have created legislation favoring Wall Street, banks, big business and similar entities as compensation for heavy campaign financing.
4. Since 1980, Congressmen and Presidents have enacted legislation deregulating the financial industry.
5. Banks engaged in reckless business practices that caused the financial crisis starting in 2007 to present. These reckless practices had a negative and catastrophic impact on the worth of plaintiffs’ assets.
6. Banks and credit rating agencies established relationships that enabled faux-positive grades on toxic financial products.
7. As a result of defendants actions referenced in items 1 through 6, plaintiffs’ owned assets and ability to grow wealth have greatly diminished.

WHEREFORE, plaintiff demands judgment against defendants as set forth below:

1. Compensatory damages of $10,000,000,000,000.00;
2. Cost of suit; and
3. Such further relief as the court may deem proper.

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It would be interesting to see how the financial industry and elected officials respond to this type of political activism.

Any law professors or students out there willing to take on a project like this? Facebook and Twitter are a great way to spread the word, gather plaintiffs and get public endorsement.

Let’s send a message they understand.

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Roger Ingalls is well-traveled and has seen the good and bad of many foreign governments. He hopes his blogging will encourage readers to think more deeply about the American political system and its impact on US citizens and the international community.

Gold Standard Hogwash – Roger Ingalls

The country’s sad economic state has renewed the cry for a return to the Gold Standard. A significant percentage of the population as well as presidential candidates are endorsing this form of monetary system. Fiat Money Systems are used by most countries (including the U.S.) which normally require tight regulation and active monitoring to thwart abuse and corruption. The recent financial crisis was caused by conservative policies that deregulated the banking industry which opened the door for unethical practices induced by greed. Wall Street’s failure to “self-police” has rekindled interest in the Gold Standard.

It is my belief that moving to a precious metal standard will not fix problems facing the people of this country (USA) or the world’s masses. It may unify currency across the globe but it’s still just another form of money significantly controlled by the wealthy few.

If we’re going to entertain the idea of changing our monetary system, let’s go all out. Let’s develop a system that empowers today’s masses and future generations. Let’s create a system that produces wealth based on conservation, cooperation and increases with the participation of many.

The basis of life is energy. Every life force needs some form of energy to exist. Therefore, a true and unifying currency would be some sort of energy unit, such as a Joule or Calorie. The value of energy is understood in the U.S., China and even aliens from outer-space would understand its worth.

I realize that this initially sounds like a wild idea but think about it for a few minutes and it starts to make sense. Keep in mind that all forms of energy are somehow derived from the Sun. Oil, coal and natural gas are fossilized ancient life forms that once received energy from the sun. Even elements used to create nuclear power owe their existence to solar activity.

This blog site (leftcoastvoices.com) will post more on energy unit currency in the near future but in the meantime, here is some information that will hopefully inspire you to think more about the subject:

1. Mother Nature takes the path of least resistance because it conserves energy.
2. Calories are a form of energy unit. There are 90 calories in a large head of lettuce and 540 calories in a Big Mac. The current price of lettuce is $2; therefore, a Big Mac should cost $12 in a true free-market.
3. The energy from one gallon of gas in equal to 408 man hours of work. The minimum wage in CA is $8 so a gallon of gas should cost $3264.
4. If energy was priced appropriately, conservation would be adopted quickly.
5. If energy was priced appropriately, food would not travel the average 1500 miles it now takes to get to your dinner table. Lettuce grown in CA would not be shipped to New York.
6. A monetary system based on energy will automatically promote sustainability in all aspects of human existence.
7. Humans consume food energy and transform it into mechanical energy.
8. People working together cooperatively are more efficient and can produce more (community).

A Gold Standard is hogwash. An Energy Standard would promote human equality, builds community, protects the environment and create a happier existence. A system like this brings to light the true cost of energy and inherently promotes sustainability through local production. Local production creates local jobs.

Of course, big business, Wall Street and the banks would never allow a conversion to a monetary system that draws attention to conservation. They need debt to create wealth.

More to come!

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Roger Ingalls is well traveled and has seen the good and bad of many foreign governments. He hopes his blogging will encourage readers to think more deeply about the American political system and its impact on US citizens and the international community.

Deficit Straight Talk: Bush Out Spends Obama 3 to 1 (by Roger Ingalls)

I’m tired of the Republican trash talk about how fiscally irresponsible the Democrats are when it comes to government spending and economic policy. Those that point fingers and yell the loudest are usually the ones with something to hide. It’s time to set the record straight.

Republican administrations are responsible for nearly 80% of the $14 Trillion deficit. This massive debt building started with Ronald Reagan and skyrocketed under George W Bush. The chart below must be painful for conservatives to look at, especially for the followship that can comprehend such data (Democrats are in blue and Republicans are in Red, source: U.S. Dept. of the Treasury). Democrats have historically maintained or decreased the deficit while the Republicans recklessly spend.

click chart for larger view

Let’s compare our two most recent presidents. The chart below is from the New York Times and is based on data from the Congressional Budget Office. This chart shows contribution to the deficit from policy decisions made during each administration. Obama’s figures are forecasted as a two term president. As we can clearly see, Bush’s massive debt is three times greater than Obama’s.

click chart for larger view

Most striking is the debt contribution from Bush’s tax cut policy that predominately benefited the wealthiest Americans. This policy change alone increased the deficit by $1.8 Trillion and is the single biggest debt building event in American history.

Conservatives are hell-bent on maintaining the Bush tax cuts arguing they help stimulate the economy by giving the rich more money to invest (a revisit of the failed Reaganomic trickle down philosophy). Just one problem, it doesn’t work. GDP growth during Bush’s presidency was a dismal 1.66% – the lowest since the 1940s. Even if the negative affects of the 2008 financial crisis are removed from the data, the Bush era is still a 60 year low with a GDP of 2.39. During this same six-decade period, the Democrat administrations of Kennedy/Johnson, Clinton and Carter had the best GDP growth performances (5%, 4.3% and 3.7% respectively). Does it get any clearer than that, folks? This data comes from the U.S. Dept of Commerce Bureau of Economic Analysis.

Takeaways:

1)      The Republican policy of lowering taxes to benefit the rich and sold to main-street America as a growth stimulus, does not work. It failed under Reagan and it was catastrophic under Bush.

2)      Republicans spend heavily on defense because it is an easy sell to the public and it benefits big businesses that contribute heavily to their political campaigns. Keep in mind, 75% of the jobs created in America come from small businesses, not the big ones chased by Republican politicians.

3)      To offset their heavy spending, conservatives try to look responsible by cutting social programs that help the poor and elderly. They sell this by highlighting government excesses that they have created in the first place.

4)      Financial policies created by Democrats have historically out-performed Republicans ones because they are inherently balanced with responsible spending and appropriate taxation for a modern society.

Important Note: The Bush tax cuts now expire at the end of 2012. We must hold our representative’s fingers to the fire and make sure they don’t vote to extend this rich man’s benefit package. Again, trickle down Reaganomics never has and never will work!

Closing Challenge: Show me some unbiased government data that even remotely suggests Republican financial policies are better for main-street America than the ones used by Democrats. Real data, not uneducated Tea Party trash talk!

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Roger Ingalls is well travelled and has seen the good and bad of many foreign governments. He hopes his blogging will encourage readers to think more deeply about the American political system and its impact on US citizens and the international community.