Economy

Yes, the Sequester is President Obama's Fault. These are facts.

This won't be FP material everywhere, but it's the truth. That is, unless one just hasn't paid attention to the events and Congressional deals facilitated by this administration in response to said events that led up to the sequester. If one did pay attention, this conclusion is undeniable. The sequester was basically an invention of Gene Sperling and Jack Lew.

In case we all need a refresher, Gene Sperling was and still is the Director of the National Economic Council under President Barack Obama. In case the denial is too thick with regard to Jack Lew, Jack Lew was head of Obama's Office of Management and Budget when the first grand betrayal was written only to be fall apart by John Boehner's doing in 2011. For that, and his time on Wall St helping Citigroup as OCC crash our economy while denying that deregulation was a problem, he is insultingly being rewarded with a post as our next Treasury Secretary.

These are the people that were hired by and work in the Obama administration that wrote the damn Sequester! It's pretty hard to deny, but some will try.

This was during the debt ceiling debacle many of us warned about but were ignored in favor of 11th dimensional chess. In reality, this is a vile violent rigged chess game that makes seniors starve to death through lack of meals on wheels. This form of deficit terrorism also threatens many of my friends and their relatives through layoffs and furloughs while slowing all essential government operations down.

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The Sequester: Bipartisan Craponomics at Its Worst

Yes, because no one listened to those that warned(including myself) this would happen in 2010 with the Bush tax cut sellout leading to the debt ceiling debacle in 2011 to now, it looks like the sequester created by this White House and Congress is going to happen. Back then, there was leverage with the Bush tax cuts expiring for using the High Value Platinum Coin, invoking the 14th amendment, or legislating the debt ceiling away entirely. None of this was considered even as a temporary measure to avoid this epic failure fixing to hit our shores.

It's insulting to the public that none of this was even tried, because this sequester will be painful and more painful in the future. The political damage as we create more miniature crisis will be even costlier than what is projected as more bills have to be passed every few months which always get worse the more they are revisited, all needlessly created all in the name what I call deficit terrorism. Through each bipartisan crisis more austerity is brought out in these miniature Shock Doctrine scenarios especially on the debt ceiling. This austerity will eventually terrorize the public because a failure to govern or understand our economy.

Sure, it will take awhile to be phased in and each federal agency will implement its cuts differently, on its own timeline, but by April 4th, 2013 some real pain is likely to be felt by the public.

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Another Bailout Since Dodd Frank Debunks the Lies

Yes, unlike what was sold to us about Dodd Frank, there are in effect already backdoor bailouts before our very eyes if we care to look. This one involves the most important regulator of our entire financial system, the New York Fed, intervening to let Bank of America off the hook for its residential mortgage backed securities fraud.

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Anti-Capitalist Meetup: Sustainability, capitalism, and the tendency to oligopoly by Don Mikulecky

It has been said many times that "sustainable capitalism" is an oxymoron. There are reasons why people believe this. The nature of capitalism has the need for growth built in. If there were any really strong contradictions in Tuesdays SOTU speech they rest right here. The call for economic growth and some sort of action toward addressing the climate change problem are really at odds with each other in their present context.

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The Real SOTU: The White House Subverting the Rule of Law

Subverting the rule of law? How dare I? Well the 4th amendment, due process, kill lists, and the NDAA also speak to my title. Yes, they speak to it despite those that decided politicians were more important than the principles they pretended to have in 2004 now outed as hypocrites mostly. However, that being said, I'm talking about subverting the rule of law in a different way but equally as damaging on the economic front.

After all, it was at the SOTU merely just a year ago that President Obama assured us that something was going to be done about the Wall St. perpetrators of our mortgage and foreclosure crisis. This was a crisis in which they defrauded consumers with sub-prime NINJA loans pumping up the housing bubble and then dumping the private debt overhang onto the economy destroying over 10 trillion in housing wealth. This left consumers with massive loads of private debt and everyone else jobless like this recovery.

This White House's DOJ has made a complete mockery of the concept of Justice in and of itself. That illusion of Justice is perpetuated to this day and normal people are devastated because of it. Let President Obama know you are not amused. I have.

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Stop the Delusional Celebration: Victims of Foreclosure Fraud Have Little to Celebrate

This is an older essay of mine from Daily Kos posted on Thursday February 02, 2012.

It was referenced by Yves Smith which I am proud of. It's worth posting now because it's been a year later and in Yves Smith's words, Quelle Surprise! The Mortgage/Financial Fraud task force put together by the foreclosure fraud sham of a "settlement" has done nothing.

President Obama got NY AG Eric Schneiderman, DE AG Beau Biden and the other Justice Democrats to sell out and give up on real justice. It is a sham that continues to this day. Let President Obama know you are not amused.

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Sometimes, once in a blue moon, there comes a time when important events unfold that I then must trust my own judgment. And in doing so, I also sometimes have to part ways with people I admire. It doesn't feel good to do so, but I think NY AG Eric Schneiderman is possibly making a mistake, and I very much agree with David Dayen’s take on these events.

Taibbi has kind of bought the argument that the robo-signing was a smaller part of a bigger fraud in the securitization markets, which is true. That doesn’t mean that a settlement that allows you to go after that poisoned tree by only giving up the fruit is in any way equitable. That’s the point of California Rep. George Miller, a key ally to Nancy Pelosi:

Democratic Congressman George Miller of the East San Francisco Bay area says he’s “proud” of Harris for leaving negotiations that aren’t in the state’s best interest. And he says any agreement has to be transparent.

“Whatever settlement they have has to go out to the public for a week, for a period of time, where it can be commented on,” Miller said, “because this represents the largest decisions about people’s homes, their equity, their assets and their worth.”

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John T. Harvey: "The Coming Recession: How Fiscal Responsibility is Economic Suicide"

As you might have heard the economy is contracting while unemployment remains high inching higher especially in real terms again while Washington is too stupid or corrupt across the board to notice. I can't say I didn't see this coming even as just an above average layman. All this focus on austerity is detrimental. After all, spending is actually income and so are deficits which are the life blood of the private sector in the economy when it comes to those sectoral balances you hear me always harping about.

And on that point I refer to Post Keynesian economist Wynne Godley as he along with MMT economist L. Randall Wray predicted this crisis in 2000 and that matters. Therefore it's safe to say the Post Keynesian school is pretty much vindicated. And part of this tradition can be read in Forbes magazine every month. Imagine that! I have thanks to discovering the work of the most excellent Post Keynesian/MMT economist John T. Harvey.

I have to thank NY brit expat for introducing me to John whom is not only a brilliant economist, but an all around cool guy who is very approachable and has an awesome taste in music. He stresses that the economics discipline hasn't made economics very understandable to the general public and he's right; however, you wouldn't know that by reading his many excellent pieces on why everything people think they know about debt and deficits is absolutely wrong. As John points out, it's not only wrong, it pervades this entire ignorant and corrupt political debate happening right now over this stupid sequester that was a creation of the White House and Congress.

As you will read down below, this horrible self induced debt ceiling pro austerity political show where never is heard an encouraging word like full employment, but instead for Peter Peterson's enjoyment, idiotic words praising deficit terrorism(budget balance and cutting our safety net) rules the day. It only amounts to economic decay and a likely recession on the way depending on how much deficit spending is cut in the coming days.

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Killing the Unionized Post Office: Post Office Ends Saturday Mail Deliveries

          The U.S. Postal Service (USPS) has long been a favorite target of conservatives. Their primary complaints about the organization generally revolve around the fact that the employees are unionized, make a living wage and enjoy actual benefits such as retirement and healthcare. Today, the USPS announced that beginning in August of this year, Saturday residential mail delivery will end. Will this have any effect at all on the economy? It is unlikely that this will be the last service reduction implemented by the USPS.

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