Monday, June 6, 2016

Neoliberalism lowers life expectancy — Sharmini Peries interviews Michael Hudson

“Almost all of the British economists of the late 18th century said when you have poverty, when you have a transfer of wealth to the rich, you’re going to have shorter lifespans, and you’re also going to have emigration,” says Michael Hudson, Distinguished Research Professor of Economics at the University of Missouri-Kansas City.
Many countries, such as Russia, the Baltic States, and now Greece, have seen a massive outflow of their populations due to worsening social conditions after the implementation of neoliberal policy.
Hudson predicts the United States will undergo the same trend, as greater hardship results from the passage of the Trans-Pacific Partnership, changes to social security, and broader policy shifts due to prospective appointments to the U.S. Supreme Court and the next presidential cabinet.…
Michael Hudson
Neoliberalism lowers life expectancy
Sharmini Peries interviews Michael Hudson

William K. Black — The Lie That “China Wins” if the TPP Kangaroo Tribunals are Stopped

The “serious people” of the lame stream media are encouraging the lame ducks to vote for the CEOs’ dream deal. One of their principal claims is “If T.P.P. falls apart, China wins. It’s as simple as that.” TPP is deliberately opaque, complex, and crafted in secrecy by the CEOs’ lobbyists to be the opposite of “simple.” It has nothing to do with China winning or losing. TPP is all about Article 9 of the TPP, which allows CEOs to rig the system so that the CEOs win and the people and nations lose.…

The ‘serious person’s” article never mentions Article 9, but it does include this carefully crafted attempt to mislead his readers: “[TPP] binds Vietnam to countries where the rule of law is arbiter rather than authoritarian diktat.” As Americans are now all too aware, the American “rule of law” is a threadbare pretense when it comes to powerful financial CEOs. Article 9 is the “rule of law” only in the sense that it specifies that the “rule of law” does not apply to the kangaroo tribunals that can impose billions of dollars in penalties on a nation for the high crime of trying to discourage smoking. Article 9 is designed to bypass one of the most important requisites of national sovereignty – a nation’s laws and judicial system.
Article 9 is authoritarian diktat – by the CEOs of multinational corporations. CEOs share a community of interest to block effective regulation and enforcement against corporate crimes and abuses. CEOs and their lobbyists were given unique access to craft the draft deal while the public was excluded. Everything we know from human history tells us that they would use that power and secret access to rig the system to benefit their interests and ensure that they could use Article 9 to impair the ability of nations to use the “rule of law” to prevent corporate abuses and crimes.…
We can stop the TPP. People are increasingly coming to understand that it has nothing to do with “free trade” and everything to do with CEOs’ dream of rigging the system so that they can get even wealthier through the “sure thing” of fraud and abuse with impunity from the laws.…
New Economic Perspectives
The Lie That “China Wins” if the TPP Kangaroo Tribunals are Stopped
William K. Black | Associate Professor of Economics and Law, UMKC

Why America Failed: Economic Liberalism, Free Markets, Finance (2011), by Morris Berman.

Morris Berman sees America the same way I do, and so I watched this video to the end because it was so good. It might be a bit slow for some, but Morris Berman is dead right about the US. What he says is that many Americans have become dumb, stupid, narcissistic, and selfish. Much of the schooling system teaches this. And Washington is in fact evil, and many stupid people on the Right support this fascist monstrosity. It's all aggression. It's all about being the hardest. 

The US is like The Prisoner where people live in a fairy tale world, but step out of line (in the USA this would be by becoming a loser), then that balloon comes right out of the ground to suffocate you. After that the fairy story starts all over again and every one is happy and no one cares. Westerners have their iPads, mobile phones, beer, SSRI's, and lots of sport and celebrity rubbish on TV to keep them numbed out about what is really going on.

Why America Failed: Economic Liberalism, Free Markets, Finance


The Prisoner: Balloon Scene - Enter Rover


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Employment Situation

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Keynes the Monetarist


Here from Mr. "General Theory" himself:

“For whilst an increase in the quantity of money may be expected…to reduce the rate of interest, this will not happen if the liquidity-preferences of the public are increasing more than the quantity of money;"


Keep seeking that "General Theory" there guys and see how it keeps working out for you...






Philosophy of knowledge and the Internet

AKA something Tom Hickey might be interested in :)

In all seriousness, I found this article to be interesting and useful to thinking about the ways in which the internet has revolutionized society's "knowledge" and access to it. Pretty long read but here's a taste:

Rethinking Knowledge in the Internet Age By David Weinberger

"The Medium is the Knowledge
Perhaps our chief epistemic avoidance mechanism was turning knowing into the production of a type of content — knowledge — that we convinced ourselves had to be independent of the knower in two senses.
First, we devised methodologies that try to keep the vagaries of the individual out of the process of creating knowledge. The scientific method works. Journalistic objectivity continues to be reevaluated. (I should note that on the question of objectivity Professor Lynch contrasts his views explicitly with mine, as he does when he considers networked knowledge. He does so without animus, and I certainly respect and appreciate his criticism.)
Second, we physically separated knowledge from individuals by externalizing it (e.g., books). What started in Greece as a particular class of belief became a body of printed statements that could be called knowledge even if there was no one left to believe them. Obviously, this has been wildly successful for our species, but it also meant that the medium of externalization — paper — has shaped knowledge to fit its peculiarities. Knowledge is settled belief because ink settles into paper. Knowledge divides into topics because books can only be so big. Our most revered form of knowledge consists of long chains of reasoning because books are sequential and not suitable for optional digressions. Knowledge is something most of us read passively because books are inert — just as Socrates had opined in the Phaedrus. Knowledge is a type of content independent of believers because books are physical objects that outlast their authors and readers.
There is nothing natural about knowledge, so it is not surprising that it shaped itself to its medium of storage and communication. But now we have a new medium, and knowledge is taking on its properties. That is why looking for traditional knowledge on the net leads us to miss the phenomenon of knowledge there. It’s also why the idea of knowledge is not much discussed on the net. It’s possible that, in the next generation, the noun “knowledge” will become old-fashioned and, in the generation after that, archaic.
That wouldn’t mean that we have given up on the project of knowing our world. Instead, it would mean that that project has changed shape — from content to networks that mix ideas and sociality. That’s already happening. Knowledge is becoming what happens when links connect differences and people.
This is new but it should also sound quite familiar, for it is very close to how scholarship works in the traditional world: people who care about a topic argue about it among themselves. Networked knowledge opens up the discussion and the participants remain linked and engaged, not always expecting final resolution. Knowledge exists in the linkages of difference and disagreement.
The net is demonstrating the weakness of knowledge as finished, settled, and static content. It’s doing so by plunging us deeper into knowing."

Sunday, June 5, 2016

Ben Richards — Media Silent as Biggest Protests Since French Revolution Sweep France


These are workers protesting a "socialist" government.
As the country prepares to host two million visitors at the showpiece Euro 2016 Football Championship in less than two weeks, labor strikes at oil refineries and nuclear power plants; fuel shortages paralyzing aviation and public transport system; violent street protests; nationwide riots; and a state of emergency until the end of July to cover the Tour de France has proved a major headache for François Hollande — currently the least popular French president since polls began in France. The protests are being called the largest and longest lasting since the French Revolution.… 
Counter Current News

Prediction Markets update

James Hoover — Kochs Building their Version of America


Think US NGOs only operate abroad for regime change. Think again. The Powell memo laid out the plan and it's been implemented ever since.

The tile focuses on the Koch Bros. But it is hardly just them and this article just touches the surface. 

Conspiracy theory or conspiracy?

Dissident Voice
Kochs Building their Version of America
James Hoover

Bill Mitchell — OECD joins the rush to fiscal expansion – for now at least

In the last month or so, we have seen the IMF publish material that is critical of what they call neo-liberalism. They now claim that the sort of policies that the IMF and the OECD have championed for several decades now are damaging to the well-being of people and societies. They now advocated policy positions that are diametrically opposite their past recommendations (for example, in relation to capital controls). In the most recent OECD Economic Outlook we now read that their is an “urgent need” for fiscal expansion – for large-scale expenditure on public infrastructure and education – despite this organisation advocating the opposite policies at the height of the crisis. It is too early to say whether these ‘swallows’ constitute a break-down of the neo-liberal Groupthink that has dominated these institutions over the last several decades. But for now, we should welcome the change of position, albeit from elements within these institutions. They are now advocating policies that Modern Monetary Theory (MMT) proponents have consistently proposed throughout the crisis. If only! The damage caused by the interventions of the IMF and the OECD in advancing austerity would have been avoided had these new positions been taken early on in the crisis. The other question is who within these organisations is going to pay for their previous incompetence?…
Maybe some light at the end of the tunnel?

Bill Mitchell – billy blog
OECD joins the rush to fiscal expansion – for now at least
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

Reuters — U.S. Treasury Secretary Lew Says Excess Capacity "Corrosive" for China Growth


Being able to produce "to excess" is corrosive for growth? In what universe is that?

What to do with that "excess" steel. Make armaments for defense and export?

But where will China get the munnie? Uh, they issue the munnie.

Hopefully, the people running policy in China did not go to school in the West and are still able to realize that excess capacity" just means deficient demand.
“Excess capacity ultimately is corrosive of an economy’s efficiency,” Lew said. “It means you have misallocation of resources, it means that ultimately, the only way to clear the market is to sell things at a price that is below what the world market price would otherwise be.”
Uh, I thought they called that competitiveness.

The US seems to have two different economic textbooks. One for use in the US and another for abroad.

This is like the US complaining that other countries are arming as the US military approaches their borders.

Are these people for real? Or are they putting us on?

Fortune
U.S. Treasury Secretary Lew Says Excess Capacity "Corrosive" for China Growth
Reuters

Jessie Hellmann — Trump: The US is 'stone cold broke'


'Nuff said to convict The Donald of being a moron.

Or is it a negotiating bluff?

That's the issue with Trump. It's impossible to know what he really thinks.

The Hill
Trump: The US is 'stone cold broke'
Jessie Hellmann

Robert Parry — MH-17 Probe Relies on Ukraine for Evidence

The oft-delayed probe into the 2014 shoot-down of MH-17 over eastern Ukraine has been tainted by its dependence on Ukraine’s intelligence service for much of its evidence, as a new interim report makes clear, reports Robert Parry.
Parry is one of the best sources for keeping up on the MH17 investigation.
The Dutch-led investigation into the 2014 shooting-down of Malaysia Airlines Flight 17 relies heavily on information provided by the Ukrainian security service and operates primarily from a field office in Kiev, despite the fact that Ukraine should be a principal suspect in the mystery of who was responsible for killing 298 people.
The cozy relationship between the Joint Investigation Team (JIT) and the Ukrainian government’s secret service emerges from a report presented to Dutch families of MH-17 victims in the last few days, a portion of which was made available to me.
Consortium News
MH-17 Probe Relies on Ukraine for Evidence
Robert Parry

Peter Lavelle — 5 Reasons the US’s Confrontation with China is Bound to Fail


More on beyond stupid. Hopefully, US business leaders will tell the US foreign policy establishment where to go and defund candidates that don't listen.

And if HRC wins the election, Ashton Carter is ventrally certain to be retained as defense secretary — the one with the big mouth.

Gilbert Doctorow — News flash: Europe is brain dead and on the drip

In what follows I will describe an event of this kind which was held in the European Parliament building on Tuesday, 31 May. Though unexceptional in its format and in its attendees, it illustrates perfectly how and why Europe is sleepwalking its way into World War III with Russia, or why, as I say more colorfully in the heading, the Old Continent is ‘brain dead,’ just no one has bothered to publicize this fact.
Une parole franche
News flash: Europe is brain dead and on the drip
Gilbert Doctorow | European Coordinator of The American Committee for East West Accord Ltd.

See also
The Saker hears the drumbeats of war. On this week’s Solari Report, Saker and I discuss his latest, A Russian Warning co-authored with Dmitri Orlov and Dr. Eugenia V Gurevich:
“We, the undersigned, are Russians living and working in the USA. We have been watching with increasing anxiety as the current US and NATO policies have set us on an extremely dangerous collision course with the Russian Federation, as well as with China. Many respected, patriotic Americans, such as Paul Craig Roberts, Stephen Cohen, Philip Giraldi, Ray McGovern and many others have been issuing warnings of a looming Third World War. But their voices have been all but lost among the din of a mass media that is full of deceptive and inaccurate stories that characterize the Russian economy as being in shambles and the Russian military as weak—all based on no evidence. But we—knowing both Russian history and the current state of Russian society and the Russian military, cannot swallow these lies. We now feel that it is our duty, as Russians living in the US, to warn the American people that they are being lied to, and to tell them the truth. And the truth is simply this: If there is going to be a war with Russia, then the United States will most certainly be destroyed, and most of us will end up dead.”
The Saker gives us an update on the Ukraine and the impact, along with events in the Middle East and US and European sanctions, on the Russian economy. We cover the ancient history of tensions between Russia and the Western nations and revisit why the Russian people are so supportive of Putin’s efforts to resist accommodation. Saker suggests some of the actions we can each take to reduce the chances of war.
Our discussion raises important questions about the shift to a multi-polar world. If the US offers countries two options – submit to multinational corporate control or be destroyed – it is only a matter of time before the world shifts into a deflationary spiral or war. Where are the incentives to cooperate and honor agreements that are the basis of global economic growth?
The Solari Report
The Emerging Multipolar World with Saker: Russia, Ukraine & the Risks of War
Catherine Austin Fitts interviews The Saker

Lord Keynes — The Difference between a priori and a posteriori Probability


Key epistemological distinction.

Social Democracy For The 21St Century: A Post Keynesian Perspective
The Difference between a priori and a posteriori Probability
Lord Keynes

Pat Lang — And the scales fell from his eyes ...


Another example of the clueless US foreign policy establishment. Nothing in comparison with the assumption that the "liberated" Iraqis would agree the US "with flowers," or the Russia and China can be "isolated." And we pay these people?

Sic Semper Tyrannis
And the scales fell from his eyes ...
Col. W. Patrick Lang, US Army (ret.), former military intelligence officer at the US Defense Intelligence Agency

Steve Roth — How Perfect Markets Concentrate Wealth and Strangle Growth and Prosperity


Even under perfect competition Marx was right.
Capitalism concentrates wealth. Ridicule Marx and his latter-day disciples all you like (I’ll help); he definitely got that right.
But capitalism is a big word with lots of meanings, and enough ideological baggage to fill a Lear Jet. Let’s talk about something more precise: perfect markets, with ownership, in which individuals compete with others to produce stuff, and store up savings. You can see this kind of perfect world in agent-based simulations like Sugarscape. Start with a bunch of sugar farmers trying to accumulate sugar in an artificial world, hit Go, and watch what happens.…
Evonomics
How Perfect Markets Concentrate Wealth and Strangle Growth and Prosperity
Steve Roth

Brian Romanchuk — The Pointlessness Of Helicopter Drops

Money is just another financial instrument. However, for historical reasons, economic theory has been warped by the concept of money. As a result, any debate involving money usually takes place behind a cloak of unreality.
As I will discuss below, the use of "helicopter money" offers no new policy space. At best, there is a reshuffling of central government liabilities amongst holders.
If someone presented us with a theory that by issuing Floating Rate Notes instead of fixed coupon bonds, all our economic ills would suddenly disappear, people would not take the theory seriously. But by replacing "Floating Rate Notes" with "money," we end up with an interminable debate.
The rest of this article explains why Helicopter Money offers us no new policy options, instead it is akin to fooling around with the mix of types of Treasury bonds and bills issued.…
Bond Economics
The Pointlessness Of Helicopter Drops
Brian Romanchuk

Saturday, June 4, 2016

Maxim Trudolyubov — Everybody Wants To Be Great Again


ROFLMAO and then shaking head in disbelief. The propaganda flaks ae arguing that a county should put economic progress (real liberalism) ahead of national sovereignty and national security. What universe are they living in?
Alongside the much-vaunted support that Putin enjoys (in large part a creation of the state-run media) there are strong dissenting voices. Putin’s former Vice-Premier and Minister of Finance, Alexei Kudrin, is saying that Russia needs a rule-based political and economic system capable of providing for sustainable economic growth. Kudrin, who is now responsible for drawing up a new reform plan for Russia, recently tried to persuade Putin to ease geopolitical tensions in order to attract foreign investment. The former finance minister received a stern rebuttal from Putin who said that he would never bargain over Russia’s sovereignty. Putin has thus confirmed that his understanding of sovereignty and security takes precedence over any economic logic. He seems to consider it beneath him to deal with lowly economic issues.

One has to be very clear about the kind of building blocks that bolster Russia’s assertiveness: they include the primacy of absolute political sovereignty and the willingness to use force. These key concepts are brought up by Moscow’s state-controlled news media and top Russian politicians on a daily basis. Russia is building a new credibility on its readiness to use the country’s hard power; not soft power, trade power, or economic competitiveness. Led by the current political elite, Russia has decided against pursuing economic development or modernizing policies, seeing these essentially as compromises.
This person is supposedly an expert on international relations and foreign policy. Spare me.

HIs bio shows him to be a Russian liberal. The agenda of Russian liberals is for Russia to return to the Yeltsin years that almost destroyed it as country, ruled by oligarchs and mafiosi.

National priorities are sovereignty, security, order, welfare, and prosperity, in that order. The Kennan Institute and Wilson Center know this very well. The conclusion is that this a propaganda piece.

Kennan Institute Wilson Center
Everybody Wants To Be Great Again
Maxim Trudolyubov | Senior Fellow at the Kennan Institute and the Editor-at-Large of Vedomosti, an independent Russian daily. Mr. Trudolyubov was the editorial page editor of Vedomosti between 2003 and 2015. He has been a contributing opinion writer for The International New York Times since the fall of 2013.
Mr. Trudolyubov writes The Russia File blog for the Kennan Institute and oversees special publications.
- See more at: https://www.wilsoncenter.org/person/maxim-trudolyubov#sthash.v9yBO9ns.dpuf

Eric Tymoigne — Money and Banking Part 17: History of Monetary Systems

This is the last post of this series. Many more topics need to be covered to make a full Money and Banking course, but the series should help those of us who are dissatisfied with the current Money & Banking textbooks (I don’t use any).
Here is what is coming up in the near future: I will edit all the posts for typos (most of them hopefully) and to account for comments I received. Devin Smith kindly agreed to post the changes without changing any of the links. Formatting the text from a Word doc to a webpage is actually tedious work so many thanks to Devin. An M&B menu will be created at the top of the NEP homepage that will direct readers to links for each post. I will also make a fancy-looking pdf with all the posts, a table of content, etc. It will be more textbook-like and may be more appealing for some readers.
In the long term, there is a textbook coming. When? Difficult to say. I plan to write most of the first draft of the text next spring while on sabbatical. Then, several rounds of testing (and rewriting) must be done to include feedbacks from students. A test bank and exercises must be created and tested too. So there is some work to do.
Many thinks to Eric on behalf of our readers, and kudos for a having created a great introductory course based on MMT!

New Economic Perspectives
Money and Banking Part 17: History of Monetary Systems
Eric Tymoigne | Associate Professor of Economics at Lewis and Clark College, Portland, Oregon; and Research Associate at the Levy Economics Institute of Bard College

Worlds Longest Rail Tunnel Opens


Things just keep getting worse; now we have to put up with the LONGEST rail tunnel ever built on earth when will these achievements finally turn around and show some improvement... this really sucks to have to witness shitty human achievement like this all the time.





More Bad News


Too much wheat we don't even have enough storage for all of it.  Things are really going bad for us this is another complete disaster... we are really going down the tubes now.






Friday, June 3, 2016

Branko Milanovic — The origins of the Great Divergence

While the world is witnessing global convergence (essentially the catch up of Asia with the West), the debates about the origins of the Great Divergence—the take-off of the West and absence of growth in the Rest—are going strong. I just finished an excellent book ("Escaping poverty") by Peer Vries who reviews the origins of modern economic growth and proposes his own theory on what made the West, and in particular, Great Britain start the Industrial Revolution and China not.

Vries has two characteristics which are not abundant, in the same person, among economists: erudition and common sense. Very often common sense and cleverness, exhibited by more business-inclined types in economics, go without much historical knowledge. But heavy erudition sometimes renders authors other-worldly, a strange feature in a social scientist that economists are supposed to be.
I would like to discuss Vries’s book under four headings: organization of the book, his theory of why the Industrial Revolution happened in England, his view why China’s chances to begin an industrial revolution were “nil”, and (some) of his critiques of other economic historians.
Global Inequality
The origins of the Great Divergence
Branko Milanovic | Visiting Presidential Professor at City University of New York Graduate Center and senior scholar at the Luxembourg Income Study (LIS), and formerly lead economist in the World Bank's research department and senior associate at Carnegie Endowment for International Peace

Sam LeGrone — Admiral Warns: Russian Subs Waging Cold War-Style ‘Battle of the Atlantic’


More evidence that Cold War 2 is engaged. China has just announced something similar for the Pacific.
In an article for the U.S. Naval Institute’s June issue of Proceedings, Vice Adm. James Foggo III outlined a new era in U.S. and Russian submarine warfare he dubs “The Fourth Battle of the Atlantic.”…

Margaret Kimberely — Who’s the Fascist?


The dismal recent history of US politics and government.

Much of the stuff she mentions isn't fascist as much as it is just stupid or crazy.

Counterpunch
Who’s the Fascist?
Margaret Kimberely

On the "left," socialism tend toward collectivism politically at the extreme. On the "right," capitalism tends toward fascism politically at the extreme.

Glenn Greenwald — Credibility of Brazil’s Interim President Collapses as He Receives 8-Year Ban on Running for Office

It has been obvious from the start that a core objective of the impeachment of Brazil’s elected president, Dilma Rousseff, was to empower the actual thieves in Brasilia and enable them to impede, obstruct, and ultimately kill the ongoing Car Wash investigation (as well as to impose a neoliberal agenda of privatization and radical austerity). A mere 20 days into the seizure of power by the corruption-implicated “interim” President Michel Temer, overwhelming evidence has emerged proving that to be true: Already, two of the interim ministers in Temer’s all-white-male cabinet, including his anti-corruption minister, have been forced to resign after the emergence of secret recordings showing them plotting to obstruct that investigation (an investigation in which they, along with one-third of his cabinet, are personally implicated).
But the oozing corruption of Temer’s ministers has sometimes served to obscure his own. He, too, is implicated in several corruption investigations. And now, he has been formally convicted of violating election laws and, as punishment, is banned from running for any political office for eight years. Yesterday, a regional election court in São Paulo, where he’s from, issued a formal decree finding him guilty and declaring him “ineligible” to run for any political office as a result of now having a “dirty record” in elections. Temer was found guilty of spending his own funds on his campaign in excess of what the law permits.…
The Intercept
Credibility of Brazil’s Interim President Collapses as He Receives 8-Year Ban on Running for Office
Glenn Greenwald

Also

Counterpunch
A Very Brazilian Coup
Conn Hallinan

Alexander Mercouris — As Merkel Weakens, EU Sanctions Unity Cracks

The details are extremely murky but with Merkel’s position coming under increasing pressure and with growing dissatisfaction with the sanctions in France and southern Europe it is clear a battle of some kind over their pending renewal is underway.…
The Duran
As Merkel Weakens, EU Sanctions Unity Cracks
Alexander Mercouris

Scott Adams — Now It’s a Fair Fight

It appears that the Clinton campaign has wisely decided to abandon its claim to reason, facts, and other losing strategies, and go “full fear” as their persuasion theme. The idea is that pairing Trump with nuclear war will make him unelectable. 
Clinton’s “thin-skinned” insult for Trump is a solid Linguistic Kill Shot. And it’s the first weapons-grade language I have seen from their camp.
If the Clinton strategist are smart, they will bait Donald Trump. Thus far, the Clinton campaign has been beyond miserable. It's actually been self-defeating.

Scott Adams Blog
Now It’s a Fair Fight
Scott Adams

Russia's Top Pollster Analyzes Public Mood, Upcoming Elections — Center on Global Interests interviews Valery Fedorov

The director of the Russian polling center VTSIOM says the country's upcoming elections will see the battle of two polticial agendas: patriotic, reresented by United Russia, and socio-economic, represented by the liberal opposition…
Russia Insider
Russia's Top Pollster Analyzes Public Mood, Upcoming ElectionsCenter on Global Interests interviews Valery Fedorov