Richard Feloni — Hedge-fund billionaire Ray Dalio says capitalism is failing America, and we need to take 5 specific actions to save it

Ray Dalio's paper was linked to here yesterday. If you don't have time to read the whole thing, here's a summary.

Even quicker summary, Dalio is calling for more emphasis on a mixed economy that a market economy (or a command economy). Sounds like a New New Deal?

Business Insider
Hedge-fund billionaire Ray Dalio says capitalism is failing America, and we need to take 5 specific actions to save it
Richard Feloni

James Petras — Global Economic, Political and Military Configurations

Introduction: Mapping the emerging global economic, political and military configurations requires that we examine regions and countries along several dynamic policy axis:

• Capitalist versus anti-capitalist
• Neoliberal versus anti-neoliberal
• Austerity versus anti-austerity
• War command centers and war zones
• Political change and socio-economic continuity
• New Order and political decay

Though many of these dimensions overlap, they also highlight the complexity and influence of local and national versus global power relations. 

We will first identify and classify the regimes and emerging movements, which fall into each of these categories, and then proceed to generalize about current ‘global’ trends and future perspectives based on approximations of the real correlation of forces.…

James Petras Website
Global Economic, Political and Military Configurations
James Petras | Professor (Emeritus) of Sociology at Binghamton University in Binghamton, New York and adjunct professor at Saint Mary's University, Halifax, Nova Scotia

See also

Pluto - Zionists Support for Hillary Clinton

Bill Mitchell — The neo-liberal class warfare on the poor and the rest of us

I read a report just released yesterday (March 9, 2016) – The uneven impact of welfare reformby the Centre for Regional Economic and Social Research, which is located at the Sheffield Hallam University in Britain. It showed that the British Government is successfully prosecuting a class war against the disadvantaged and, increasingly, against segments of ‘middle’ Britain. It confirms the view I formed in 2010 when the Conservative government was elected and announced its first fiscal statement in June of that year that it was intent on pursuing some unfinished business – to wit, entrenching the attacks on workers and income support recipients and redistributing national income in favour of capital. These attacks were somewhat interrupted by the urgency to deal with the meltdown associated with the GFC. Leopards don’t change their spots and the Conservatives are intent on finishing off the agenda that began back in the 1970s with the attacks on unions and public services. I was thinking about the report as I was reflecting on a radio program I heard the other day about how the Australian National Library is being forced to make severe cuts to its archival services among other things in response to federal government austerity plans. Mindless is the first word that came into my head when I was listening to the program. In the case of Britain, the attacks are being dressed up as ‘welfare reform’. In the case of Australia, the spending cuts are being dressed up as ‘efficiency dividends’. The neo-liberal nomenclature is an attempt to obscure what is really going on – a massive attack on society, its disadvantaged, and its cultural institutions. Neo-liberals hate society and anything that provides inclusive access to all in the benefits that society can deliver. These cuts are deliberately targeted to reduce social inclusion and undermine information access.…

Scroll to the end of the post for the announcement of publication of the MMT textbook that Bill and Randy have been working on for some time. Congratulations to them, and thanks!

Bill Mitchell – billy blog
The neo-liberal class warfare on the poor and the rest of us
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

teleSUR — Billionaire, Harvard Professor Conspire with IMF to Bring 'Adjustment' to Venezuela

The president of Empresas Polar, Lorenzo Mendoza, is looking to implement a “fiscal ajustment plan for Venezuela” with loans from the IMF and World Bank.

 Venezuelan National Assembly President Diosdado Cabello, presented the recording of a telephone conversation between the Billionaire Lorenzo Mendoza, and Venezuelan economist, Ricardo Haussman, in which the two spoke of "a fiscal adjustment plan for Venezuela" driven by a loan from the International Monetary Fund (IMF) and World Bank (WB).

During his program televised on Wednesday by the state channel Venezolana de Television (VTV), Cabello accused Lorenzo Mendoza of conspiring against the country.

"What are these people are planning against the people of Venezuela?" questioned Cabello.

Mendoza is one of Venezuela’s wealthiest people and owner of Empresas Polar, the largest beer manufacturer in Venezuela.

Haussman is the Director of the Harvard University Center for International Development and was planning Minister under the Venezuelan government of Carlos Andres Perez in the early 1990s.…

teleSUR
Billionaire, Harvard Professor Conspire with IMF to Bring 'Adjustment' to Venezuela

Bill Mitchell — Greece has only one viable path – exit

Neoliberalism is a political theory based on economics and bad economics at that. This is all about politics, that is distribution of power, rather than economics, in that economic distribution is based on economic power that flows from political power, which in term flows from social power, that is, is class structure and interest.

Bill Mitchell – billy blog
Greece has only one viable path – exit
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

Paul Krugman — 'Breaking Greece'

It's political, not economic.

I would say rather, breaking Greek workers and setting an example for the EZ and world. Neoliberal globalization and all that.

Economist’s View
Paul Krugman: 'Breaking Greece'
Mark Thoma | Professor of Economics, University of Oregon

Michael Stephens — On Demands for Greek “Reform”

Senior Scholar James Galbraith on the “reforms” being demanded by creditors (vis. pensions, labor markets, privatization, and the VAT) in the negotiations over Greece’s fate...

The Levy Institute’s latest strategic analysis for Greece lays out the ways in which the austerity and “reform” program has undermined the Greek economy, and thereby the country’s ability to manage its public debt...

Multiplier Effect

On Demands for Greek “Reform”
Michael Stephens

Dirk Ehnts — What exactly is the role of an inflation-targeting central bank?

The euro zone, I argue, is a disaster because of the separation of fiscal and monetary. The ECB bails out banks, not governments. This leads to blackmailing sovereign governments into reforms that they would never have undertaken because the people would never have voted for austerity. The way that Germany handles its newfound power is destructive, imposing poverty and stagnation on the periphery. Central banks – ECB and national central banks – have found a new, enlarged role for themselves. I wonder whether the public benefits from this change.

econoblog 101
What exactly is the role of an inflation-targeting central bank?
Dirk Ehnts | Berlin School for Economics and Law

This is central bank autocracy rather than independence.

Forcing reform on democratic countries that would not institute reforms since it was politically unpopular was the purpose of the creation of the currency union in the form it took.

The Guardian (UK)
Robert Mundell, evil genius of the euro
Greg Palast | guardian.co.uk

What Does "International Tax Reform" Mean?

   (Commentary posted by Roger Erickson)



Since national tax policy is by definition a reflection of national policy, then international tax reform means international alignment of policies from multiple nations?

Alignment to and over what?

International Public Purpose?

If international Public Purpose is achieved, then are there, by definition, no more policy differences among independent nations? No more cultural diversity?

Or, if we reserve the right to retain variance in state tax policies, then why not retain as much or more variance in national - and by default, "international" - tax policies.

So what, exactly, does this group mean by "International Tax Reform?"  I suspect that they actually mean international standards for income and price REPORTING, but until they clarify, they're going to confuse quite a few people.

US State Tax Considerations for International Tax Reform

Winslow Wheeler’s analysis of the ongoing F-35 "LifeCycleCost" Scam: Political Economy & Democracy In Inaction

When you have growing legions of poker players all trying to game the existing system (house rules) .... you don't even need to invoke originally planned fraud.

By their own momentum, such legions of poker players simply lose track of how out of date their targeted system has become, as contexts continue to change, including sheer scale-dependent details. What start as initially weak feedback signals for local or micro management issues, eventually ALWAYS become dominant feedback signals for macro management. It's only a question of when.

That reality is as true of economic policy as it is of of the MICC's beltway-bandit policy. If we don't continuously coordinate interleaved reform of local, regional & national policy .... then we can't survive. It's that simple. We either ALL hang together, or collectively hang ourselves.

If you extend credit to your neighbor, it's your problem. If hundreds of millions of citizens all depend upon neighbors near and far, for distributed credit ..... then it's OUR problem, and a policy issue.

(The following is an email from Chuck Spinney, posted with permission.)

"One of the oldest recurring front-loading scams practiced by the Military - Industrial - Congressional Complex (MICC) is the promise that high and increasing weapons procurement costs in the near term will be more than offset by lower operating (O&S) costs over the long term, thus decreasing the program's total life cycle costs (LCCs). 

The essential scam is to plant the myth that the future cost of supporting increasingly complex weapons will amount to a free lunch: i.e., that the total life cycle costs (LCCs) of increasingly complex weapons will be less than the total LCCs of the simpler weapons they replaced.

This game has been in play since at least the 1960s. 

To wit: In the mid 1960s, the Air Force claimed that the highly complex all-digital avionics of the F-111D would cost less to operate than the far simpler analog avionics of the A-7. 

In the 1970s, the AF promised the F-15 would cost much less to operate than the less functionally complex F-4. 

In the 1980s and 1990s the AF promised the operating costs of the stealthy, supersonic cruising F-22 would be comparable to those of the far less complex, non-stealthy, subsonic cruising F-15. 

Beginning in the 1990s and continuing to this day the AF promised operating costs of its version of the stealth F-35 would be in the same league as those far simpler non-stealthy F-16/A10 aircraft the F-35 was replacing (even though the F-35 system's 20+ million lines of computer software code far exceed those of the F-22!)

Of course the beauty of the "lower LCC" front-loading scam is that by the time decision makers determine what a weapon’s true operating costs are, they will have already invested so much money, reputations, and time in buying the weapon, they are well into the third trimester of the acquisition life cycle, and are too pregnant to abort the program -- which, of course, is the whole aim of the Defense Power Games of front loading and political engineering. 

As a matter of record, the F-111D’s avionics were a disaster that cost far more than the A-7 on a per flying hour basis; the F-15 cost far more to operate than the F-4 once you accounted for variable depot costs per flying hour (see DFOL pages 51 and 99; and the LCCs of F-22 are far higher than those of the F-15. 

For a remarkably candid portrayal of the F-22’s maintenance horrors, I urge readers to examine public releases by the Air Force’s 325th Fighter Wing Public Affairs office -- here and here). Bear in mind, these outcomes did not stop decisions makers from buying the programs -- the scam works!

Today, not enough F-35s have been operating in the fleet for a sufficiently long enough time to ascertain its true operating cost. This, of course, is most convenient for the contractor as well as the military services, because the F-35’s unit acquisition costs are still rising. 

So, invoking the F-35’s lower LCC scam is still a viable front-loading strategy to justify the ongoing growth of F-35s nearer-term R&D and procurement costs -- i.e., the name of the game is to move deeper into the third trimester of the F-35's acquisition life cycle to permanently foreclose the abortion option.

Lest you think otherwise, attached herewith for your edification is my friend Winslow Wheeler’s analysis of the ongoing F-35 LCC scam."

Chuck Spinney, The Blaster

New F-35 Claim: Lower O&S Estimate More than Offsets Higher Acquisition Cost

Winslow Wheeler, Director, Strauss Military Reform Project, April 23, 2014

A Lesson in POLITICAL OPERATIONS: Who Runs the Pentagon, & By Default, Much of The Treasury Budget

   (Commentary posted by Roger Erickson)



Those interested in Fiat Currency Operations would be well advised to learn more about POLITICAL OPERATIONS from the likes of Chuck Spinney (who forwarded this article) and other members of the legendary Pentagon Reform Movement (PRM). And also from their associates. People like Winslow Wheeler.

As with fiat currency operations, there are subtle simplicities to the basics of Political Operations. Those who refuse to dig into actual political operations end up, just like Deficit Terrorists, making life harder for themselves and all others, by uselessly adding frictions where there are already more than enough.

The PRM peaked in the 1980s, and was largely ignored by younger activists, but the key members never stopped working, even in retirement.

The Men Who Really Run the Pentagon

Peter S, Goodman — China's President Charts Path For 'Comprehensive Reform' Amid Economic, Environmental Problems

"On the other hand, our economy is now faced with a series of deep-seated and structural problems," he continued. "There would not be sustainable development without economic transformation. Therefore, we have decided to build an upgraded version of the Chinese economy, focusing on improving the quality and efficiency of development. While growing the economy, the people's livelihood is our top concern."

Li’s words -- subsequently transmitted publicly in official state newspapers -- warrant particular scrutiny given a much-anticipated party plenum set to convene here this weekend. China-watchers have been anticipating the meeting as a potential milestone, suggesting that it could prepare the way for some of the most meaningful alterations to China’s economy since Deng Xiaoping unleashed the first market-embracing reforms in the late-1970s.

But if the broad outlines of an updated economic policy seem clear -- spread the benefits of development more evenly while diminishing pollution and social grievances -- the particulars are hardly so. As Chinese officials and influential academics discussed the challenges and potential prescriptions ahead of the plenum, they created the impression that the leadership is still grappling with substantial issues....

Again, the Internet and social media:

All the while, a new force is proliferating across China that may complicate the party's control and its willingness to advance reforms -- the explosive growth of social media, particularly among young people.

More information flowing outside of official channels means more public awareness of conditions both within and outside China, generating new demands for freedoms and material gains. This could pressure the government to move faster on reforms in a bid to keep pace with public demands. Or it could spook the party into trying to impede change in an effort to maintain control.The Huffington Post

China's President Charts Path For 'Comprehensive Reform' Amid Economic, Environmental Problems
Peter S. Goodman

Philip Pullella and Anthony Boadle — Millions at Brazil Mass hear pope ask youth to change world

"Through your joyful witness and service, help to build a civilization of love. Show, by your life, that it is worth giving your time and talents to attain high ideals," Francis said at the Rio airport before he departed for Rome....

"Bringing the Gospel is bringing God's power to pluck up and break down evil and violence, to destroy and overthrow the barriers of selfishness, intolerance and hatred, so as to build a new world," he said.Many young people in Brazil saw this as his support for peaceful demonstrations to bring about social and political reform....

Francis dedicated much attention in his speeches to the problems, the prospects and the power of youth....

The pope addressed Latin American bishops before leaving Brazil, telling them the Church had to shed all elitism and get closer to the people.... 

Many young people in Brazil saw this as his support for peaceful demonstrations to bring about social and political reform... 

On Friday night he called on them to change a world where food is discarded while millions go hungry, where racism and violence still affront human dignity, and where politics is more associated with corruption than service 

The day before, during a visit to a Rio slum, he urged them not to allow their hopes of change to be extinguished. Many young people in Brazil saw this as his support for peaceful demonstrations to bring about social and political reform.

Reuters
Millions at Brazil Mass hear pope ask youth to change world
Philip Pullella and Anthony Boadle, Rio De Janeiro

Eric Dolan — Scientists find visions of a benevolent future society motivate reform

Scientists find visions of a benevolent future society motivate reform (via Raw Story )

Activists, take note: People support reform if they believe the changes will enhance the future character of society, according to a study published online this month in the Personality and Social Psychology Bulletin. Namely, people support a future society that fosters the development of warm and…

Andy Kroll — Revealed: The Massive New Liberal Plan to Remake American Politics

A month after President Obama won reelection, America's most powerful liberal groups met to plan their next moves. Here's what they talked about.

Mother Jones
Revealed: The Massive New Liberal Plan to Remake American Politics
Andy Kroll

Should be Progressive rather than Liberal. Progressives are populist reformers in the Democratic Party. Liberals are the left wing of the Democratic Establishment.

Peter Cooper — Inviting Visions of a Better World

Peter Cooper invites all to contribute their thoughts on creating a better world. Certainly a worth endeavor as we begin a new year.

Here's an opportunity to join a vision quest based on thinking out of the box.

Heteconomist

Inviting Visions of a Better World
peterc

UMd Law Financial Reform Symposium This Week

University of Maryland School of Law Financial Reform Symposium: September 20-21

The University of Maryland School of Law is hosting a free symposium on financial reform this Thursday and Friday (September 20-21), in Baltimore, Md. Former CFTC Commissioner Brooksley Born will speak on Thursday evening - in the "Ceremonial Courtroom". 

Also, on Friday, in the "Krongard Board Room (Room 106)" Michael Greenberger will moderate a panel discussion entitled “Regulatory Enforcement and the Financial Regulatory System” between 10:15 and 12:00 on Friday morning. The panel features Wally Turbeville, Mike Eisenberg, Bill Black, Arthur Wilmarth, and Lynn Stout.

Imagine that! Maybe finance can still be reformed.  Is there is, or is there isn't hope for the USA?

Impact Investment

Financial innovation got a bad rep in the financial crisis. But inside the well-barricaded Federal Reserve Bank in downtown San Francisco last month, the financial engineers were at it again.

Teams of financial statistical whiz kids pitched complex new bonds, loan-guarantees, and hybrid structures of debt and equity. Their target? It wasn't mortgages. It was women's economic empowerment. It was energy efficiency improvements and ranchland conservation. It was small businesses in Africa.
The Occupy movement has tarred Wall Street with a broad brush, while economists like Yale's Robert Shiller have tried to rescue finance from the consequences of its excesses. At the Fed, the MBA students competing in the second International Impact Investing Challenge were part of a new crop of financial engineers taking a different tack: tweaking risk and reward to directly tap at least a small part of the $60 trillion private capital markets for positive, measurable social impact.

The contest winners, who come from Stanford, have a plan to bring electricity to remote Indonesian islands -- and 5 to 7 percent returns to investors -- by financing local micro-grids through special-purpose vehicles owned jointly with community co-ops. The runners-up, from the Kellogg School of Management at Northwestern, aimed to help slum dwellers in Mumbai get higher-paying jobs, financing job-training by offering private investors 7 percent of graduates' paychecks for two years.

"These are not idealistic kids," the mastermind of the contest, David Chen, CEO of Equilibrium Capital Group LLC in Portland, Ore., said of the student financiers. "They are making a judgment call on the future. This is the equivalent of investing in hedging strategies or emerging markets, or high-tech 25 years ago. In each of those cases, the market efficiency and information efficiency gains went to those that were first."

Read it at The Atlantic
How Financial Innovation Can Save the World

by David Bank | vice president of Civic Ventures

(h/t Scott Fullwiler via Twitter)

TEDxUHowest - Bernard Lietaer - Crisis as opportunity. Next steps.

TEDxUHowest - Bernard Lietaer - Crisis as opportunity. Next steps.

(h/t Anonymous in the comments)

World Social Forum calls for social and environmental justice

PORTO ALEGRE, Brazil — Thousands of critics of capitalism meeting in Brazil called Sunday for a worldwide protest in June to press for concrete steps to tackle the global economic crisis.The World Social Forum wrapped up a five-day meeting in this southern Brazilian city, urging citizens to “take to the streets on June 5″ for the global action, which would be in support of social and environmental justice.

The forum also announced a “peoples’ summit” of social movements to be held in parallel with the high-level UN conference on sustainable development scheduled next June 20-22 in Rio.

The Rio+20 summit, the fourth major gathering on sustainable development since 1972, will press world leaders to commit themselves to creating a social and “green economy,” with priority being given to eradicating hunger....

Addressing the gathering Thursday, Brazilian President Dilma Rousseff appealed for “a development model that articulates growth and job creation, battles poverty and decreases inequalities,” and advocates for the “sustainable use and preservation of natural resources.” 

Read it at Raw Story

World Social Forum calls for global anti-corporate protest in June
By Agence France-Presse