Tuesday, September 24, 2019

Johann Hari - Why Basic Income Is a Mental Health Issue

Canadian researcher Dr. Evelyn Forget says guaranteed income “works as an antidepressant.”


At junior school they told us a story about how the Sun and the Wind wagered over who could get a man to take his coat off. You may have seen it as a children's cartoon. The Wind blew and blew, but the man just held hard into his coat, and then it was the Sun's turn and he made the world sunny and warm and the man glady took his coat off. One tried to force the man and it didn't work, but the other offered gentleness and positive experience to influence the man and it was successful.

Many on the right want a hard world where people are forced to work. It works, because no one wants to starve, but at a price as it produces a harsh and unpleasant society and less productive people. It's counterintuitive, but the gentler approach works much better as welfare creates happier, more productive people who may go on to be self reliant. 

Their children are happier too, and this affects vital brain development as they grow up, and so they become more successful as adults as well. It's an investment that we all benefit from: Less crime, less expense of prisons, safer streets, less drug and alcohol problems, happier employees who like work, and finally, more people at work paying taxes, which means lower taxes for the rest of us.

The Basic Income has been shown to bring the above benefits too, and is probably a lot more effective. 

It shows how mainstream economics got so wrong about incentive. Libertarianism is no better, from which neoclassical economics is derived. 


Then they stood back to see what would happen. Dr. Evelyn Forget, of the University of Manitoba, has carried out the most detailed research on this three-year experiment in a universal basic income. Many important things happened – there were significantly fewer low birth-weight babies, because mothers had better nutrition; people studied more and longer; hardly anyone gave up working, but some people turned down lousy jobs and held out for better ones, so overall work standards in the town improved. But the most important result? A big fall in depression, anxiety, and other forms of mental illness. In just three years, hospitalizations due to mental illness fell as much as 8.5 percent. Compare that to the past decade, where global depression rates have risen by 18 percent.

Monday, September 23, 2019

Fergal O'brien - Draghi Says ECB Should Examine New Ideas Like MMT

European Central Bank President Mario Draghi said the Governing Council should be open to ideas such as Modern Monetary Theory, while noting they’re closer to fiscal policy and should be directed by governments.
“These are objectively pretty new ideas,” Draghi said. “They have not been discussed by the Governing Council. We should look at them, but they have not been tested.”

45th Week of the French Protests

An article in the South China Post had an headline saying, The US or Britain might save the Hong Kong protestors, or pigs may fly.

I saw a video footage on Twitter where scores of protestors attacked an old man at a subway with clubs and lumps of wood. One protestor got right in front of him and pounded him left and right in the face for a good 30 seconds. It was finished off by a young woman beating him over the head repeatedly with a batton before she run off. He survived in one piece, amazingly, but it was too horrible to record and put out here.

None of this is being shown on our TV, and neither are the French protest. After all these weeks they still want Macron out. French police brutality is rampant, but no outcry in our media. 

#YellowVest (#GiletsJaunes) protests Bordeaux

✔️ 45 weeks of protests
✔️ 11 dead
✔️ 76 seriously injured
✔️ 2500 injured
✔️ 23 lost an eye
✔️ 5 lost a hand
✔️ thousands arrested
✔️ no mainstream media coverage

https://t.co/MNkfyoZdnA

Peter Santenello - IRANIAN "DEATH TO AMERICA" FLAG BURNING - EXPLAINED 🇺🇸🇮🇷

Iranians don't hate Americans, and if you believe that, then you have been taken in by the propaganda, says Peter Santenello. They don't like Pompeo very much, though.






The abbey library of Maria Laach in Germany

I had 7 bookcases in my house at one point. I worked out that if each book was worth on average £10, then 10 books was worth £100. This was 30 years ago. 10 books doesn't take a lot of space, so, no wonder I never had any money.

The bird spotters get the twitches when they see a rare bird, and I used to get something similar when I spotted a great new book.

Some people can only get excited when are doing some sort of daredevil act, like hanging off the side of a mountain, the sort of thrill I would get evertime I saw a new edition of What Hi-Fi up on the newsagent's shelf.

Anyway, I should have become a librarian as I was never cut out for engineering.

The abbey library of Maria Laach in Germany 







TRNN - American Exceptionalism and American Innocence: The Propaganda That Upholds the Status Quo

The US thinks it's exceptional because of its 'democracy', its 'freedom loving people', its 'capitalism', etc, but 'exceptional' turns out to be more about white supremacy.

Part of title of the book is American Innocence, where Washington believes it has never done anything wrong. War after war, but the US is the 'good guy' . It runs an industrial killing machine, backs mercenary jihasist terrorists all over the World, but it remains 'exceptionally good', while all others are 'exceptionally bad.'

The video hints at another reason why some sections of the US elite wanted better relations with Russia: they are Christians but also because they are on the whole mainly white Europeans.

The idea that one day China could surpass the West in innovation, technology, and civilisation is abhorrent to their white supremacist views.

In the book American Exceptionalism and American Innocence: A People's History of Fake News From the Revolutionary War to The War On Terror, authors Roberto Sirvent and Danny Haiphong assert that “The mainstream corporate media is one of the chi ef propagators of American exceptionalism and innocence...the narratives of American exceptionalism and American innocence work together to serve white supremacy, empire, capitalism, and the US war machine.” Jacqueline Luqman talks to author Danny Haiphong about what this means in relation to real life issues and policy today.

Sunday, September 22, 2019

Tom Hickey going on vacation

I am taking a few days off from the Internet while away visiting family and friends. See you when I get back.

Links — 22 Sep 2019

Politico
Trump wants ‘diplomatic solution’ with Iran, Pompeo says

The Hill
Mattis says Iran regime is 'trying to craft a foreign policy that pushes others around'
Justine Coleman

Sic Semper Tyrannis
"If you hit them, they will behave ..." - the neocons' song.
Col. W. Patrick Lang, US Army (ret.)

The Guardian
Iran warns presence of foreign powers in Gulf raises 'insecurity'
AFP

Sputnik International
US ‘Trying to Build Coalition’ With UK for ‘Some Form of Action Against Iran’ – Report


SouthFront
Russian Defense Minister On Power Balance And Current Military And Political Situation On Global Scene
Moskovskyi Komsomolets

TASS
Shoigu calls US belief in its superiority the major threat to Russia and other states

TASS
West stages cyber attacks every day against Russia’s defense communications - Shoigu

Zachary Keck


Zero Hedge
Meet America's "Economic Refugees": Retirees Who Opt To Live Abroad
Tyler Durden

Off-Guardian
Europe: The cracks are beginning to show
Frank Lee

East Asia Forum
The dollar shouldn’t be the reserve currency, but neither should the renminbi
Matthew Harrison, Senior Researcher at the Hong Kong Institution for International Finance (HKIIF), and Geng Xiao, Professor and Director of the Research Institute of Maritime Silk-Road at the HSBC Business School, Peking University, and President of the Hong Kong Institution for International Finance (HKIIF)

Fars News Agency (Iran)
Former President Karzai Lauds Iran’s Role in Restoring Stability in Afghanistan

Yahoo News
China Needs Flexible Yuan, Fewer Capital Controls: Think Tank
Bloomberg

One America News
China needs to change way it finances economy, think tank says

Popular Resistance
Defender Of Brazil’s Indigenous Tribes Murdered ‘Execution-Style’ In Amazon Town

Reddit
Contemporary China's Quest for Rejuvenation and the Century of Humiliation
u/weilem



Zero Hedge — Hedge Fund CIO: "Generational Conflict Will Be The Top Theme Of The Coming Decades: Enter MMT"

And so, if the youth care more for the environment than they do about money, and if ageing parents care about their money more than they do about their children, then generational looms. However, one possible way to defer this clash involves the oldest trick in the book. And that is more money for everyone; for the GND, for Medicare, Medicaid, Soc Sec, tax cuts. Enter MMT....
Zero Hedge
Hedge Fund CIO: "Generational Conflict Will Be The Top Theme Of The Coming Decades: Enter MMT"
Tyler Durden

UK could be better off outside EU, says Corbyn – video

The Labour leader, Jeremy Corbyn, has said it could be more beneficial for the UK to be outside of the EU under the right deal.
Speaking on BBC One's The Andrew Marr Show during the Labour conference in Brighton, Corbyn underlined Labour's 'credible option', referred to as 'the five pillars', which covers the customs union, the trade relationship, protection of consumer, environmental and workers’ rights and the Good Friday agreement.

The Guardian

Bill Mitchell — Is the British Labour Party aboard the fiscal dominance train – Part 1?

As I type this (Sunday), I am heading to Brighton, England from Edinburgh. We had two sessions in Edinburgh yesterday (Saturday) and it was great to share ideas with some really committed people. We had to dodge a Hollywood closure of the streets (‘Fast and Furious 9 had commandeered the inner city to film a car or two swerving out of control or whatever, and I hope the city received heaps for the inconvenience to its citizens. But, with the direction now south, and tomorrow’s two events (more later), I am thinking the place of the British Labour Party in the progressive struggle. It doesn’t look good to me. The news overnight has been that the Party’s “head of policy and the author of the party’s last election manifesto” (quoting the Times today) has quit the Party claiming “I no longer have faith we will succeed”. The blame game starts and, as usual, Jeremy Corbyn’s leadership is in focus. The Times cartoon had the caption “They’ve got what it takes to form a government” with two ducks (in Brighton) looking at a sign against a wall saying “Labour Civil War Chaos”. What should we make of all this? My take is this: there is a clear paradigm shift going on in macroeconomic policy thinking. Every day (it seems) a new article pops up with someone claiming monetary policy has run its course and a new era of fiscal policy dominance is the only viable way ahead. That means that the central bank imprimatur on policy – determining whether such policy can continue to be effective and relying on interest rate adjustments etc as the primary counter-stabilisation policy – is over. That means that New Keynesian economics is over. That means that fiscal credibility rules that are neoliberal central are over. And that is why I think British Labour are looking poorly in the polls. They have taken advice from a number of characters who have pushed them into a ‘New Keynesian’ mindset and they are now ‘yesterday’s news’. They have missed the boat on these major shifts that have been going on. That is why they need a major shift in macroeconomic thinking. Only Modern Monetary Theory (MMT) offers a consistent and credible path for them to make that shift....
Bill Mitchell – billy blog
Is the British Labour Party aboard the fiscal dominance train – Part 1?
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

Jimmy Dore - How Wall Street Gave Us Trump w/Michael Hudson

Micheal Hudson says debt is rising faster than the GDP, and Jimmy Dore adds that investors are taken out more than they are putting in.


Reserve Requirements


Fed issued regulatory update January 2019 here:





Approximately 10% of Deposits, I never figured it would be that high... somewhat shocking...

Deposits September 4 were $12,963B (Mike's report has been documenting a recent rapid increase in Deposits as bank lending growth has been pretty solid) and Reserves at Depositories were last seen rapidly dropping towards $1,300B on the poorly executed post "Debt Ceiling!" fiscal adjustments so you do the math and see why FF market became dysfunctional and they had to temporarily add $75B and now are poised to add to that this week...

Which will as usual temporarily depress the Leverage Ratio at the Depositories and as usual cause another temporary decrease in observed prices of risk assets...

They are going to have to soon increase Reserves permanently which will be viewed as more (to these monetarist morons) "QE" or "pumping in money!"...

Which btw more of this (to them) "QE" is exactly what Trump has been hammering them to do!

Trump wins again!!!! How DOES he do it?!?!?!?   MAGA double triggers for everybody all around!!!!




Saturday, September 21, 2019

Links — 21 Sep 2019

Strategic Culture Foundation
The Deep State Is Dragging Trump Into War With Iran
Robert Bridge

Strategic Culture Foundation
Thinking the Unthinkable, Saying the Unsayable
Patrick Armstrong

Zero Hedge
Iran Vows Major War Even If US Conducts "Limited Strikes"
Tyler Durden

The Vineyard of the Saker
World at a Crossroads and a System of International Relations for the Future [English]
John Evan, former US diplomat

LobeLog
The Pompeo Doctrine
Michael T. Klare

Sputnik International
Microsoft President Calls for 'Urgent Global Action' to Tackle ‘Unstoppable’ Rise of Killer Robots


Shanghai-Nantong Yangtze River Bridge


Shanghai-Nantong Yangtze River Bridge, the world’s 1st rail-expressway cable-stayed bridge with a main span over 1km, completed closure on Sept 20. The 11072-m-long bridge is expected to bolster the integrated development of the Yangtze River Delta.



Dan Yaseen interviews Jeff J. Brown about Hong Kong, Trump, BRI and the trade war

Why Chinese companies are leaving the West behind: Western companies ruthlessly compete with each other, while Chinese companies cooperate with each other.

Jeff Brown says how China was always well advanced of the West and during past centuries traded all over the World through their silk roads, but they never colonised any countries.


Friday, September 20, 2019

Nathan Tankus on the Fed and bank liquidity crisis

Thread by @NathanTankus: "There was obviously a ton of discussion of liquidity this week after repo rates rose a lot and the Fed conducted thcale repurchase agreements since the Great Financial Crisis. To explain what’s happening, we need to properly […]"

Links — 20 Sep 2019

ProMarket — The blog of the Stigler Center at the University of Chicago Booth School of Business
The Surprising Twist in GOP Economic Thinking: Tax Cuts Might Be Bad for Business
Matt Stoller

Reminiscence of the Future
Why? Would You Ask?
Andrei Martyanov

FAIR
Media Omit Context Behind Latest North Korean Missile Tests
Joshua Cho

Fort Russ News
Secret Papers Reveal Russian Hero Scientists Who Prevented America’s Insane Plan to Drop 300 Nuclear Bombs on USSR After WW2 (VIDEOS)
Drago Bosnic

Moon of Alabama
The Crisis Over The Attack On Saudi Oil Infrastructure Is Over - We Now Wait For the Next One

Sputnik International
Bodies of Dead Iraqi Kids Test Positive For Radioactive Remnants From US Depleted Uranium Rounds

Sputnik International
Donald Trump Brands China ‘Threat to the World’ in Due to Its Military Build-up

TASS
Russia, China develop defense cooperation plan for 2020-2021

Zero Hedge
Patriotism Erupts Across China As Consumers Ditch Apple For Huawei
Tyler Durden
Tyler Durden

Fortune
Google Claims ‘Quantum Supremacy,’ Marking a Major Milestone in Computing
Robert Hackett












Fed to "pump in!" $90B in 3 days next week


I am hereby on the record 100% opposing this.





This Is Neoliberalism ▶︎ Hayek and the Mont Pelerin Society I: 1918 - 1939 (Part 3)

An interesting video on the history of neoliberalism.

If you've ever wanted to understand what neoliberalism is, this is the series for you. The story of neoliberalism is a story about the power of ideas. Embedded liberalism was in power, but it was not without resistance. Academics and businessmen who opposed the New Deal and British social democracy were only begrudgingly accepting of the situation at best, or on the warpath against government intervention in the economy at worst. These two factions allied with one another to create an idea so powerful that it would covertly undo their losses to embedded liberalism by supplanting it entirely. This is where the story of neoliberalism begins.







How to reform the economics Ph.D — Tyler Cowen

Along those lines, I have a modest proposal. Eliminate the economics Ph.D, period. Offer everyone three years of graduate economics education, and no more (with a clock reset allowed for pregnancy). Did Smith, Keynes, or Hayek have an economics Ph.D? This way, no one will assume you know what you are talking about, and the underlying message is that economics learning is lifelong.
Adam Smith and Friedrich Hayek were philosophers, and Keynes was a mathematician. Karl Marx, who goes unmentioned even though he influenced the modern world as much as any other, if not more, was also a philosopher. 

All of them influenced economics and also changed the world more profoundly more than any academic economist.  Conversely, Kenneth Boulding was an economist. Dissatisfied with the direction of academic economics, he became a philosopher and co-founded general systems theory.

Ok, these were outliers. Economic training is needed to do the day to day, nitty gritty.

But just what kind of training and how much is needed to do work in economics, including work that is contributory to knowledge? How would that be measured? What are the criteria? Are there hidden assumptions?

Tyler Cowen makes some suggestions but shouldn't something as important as this be studied on the basis of data? And as he points out, it likely applies to other fields as well. Are we sticking to a traditional process in education out of habit even though it could be greatly improved upon, as well as reevaluated for current needs? Have we inadvertently sacralized convention?

Marginal Revolution
How to reform the economics Ph.D
Tyler Cowen | Holbert C. Harris Chair of Economics at George Mason University and serves as chairman and general director of the Mercatus Center

The natural rate of interest is not zero


Title a play on words of the MMT platonistic thesis "the natural rate of interest is zero!".

This is expanded upon in the whitepaper here:


Government taxing and security sales drain (subtract) reserves from the banking system. When the government realizes a budget deficit, there is a net reserve add to the banking system. 
That is, Government deficit spending results in net credits to member bank reserves accounts. If these net credits lead to excess reserve positions, overnight interest rates will be bid down by the member banks with excess reserves to the interest rate paid on reserves by the central bank.


This is NOT happening as witnessed this week...  cue the crickets...



Thursday, September 19, 2019

Links —19 Sep 2019

Zero Hedge
Luongo: Will The Yemen War Be The End Of Saudi Arabia?
Tom Luongo

Sputnik International
Accepting Houthi Responsibility for Saudi Oil Attack Means Admitting Riyadh’s War in Yemen Failed

Sputnik International
Overseas Investors Emerging as New Owners of India's Road Assets

Sputnik International
Chinese PM Notes 'Huge Prospects' for Cooperation With Russia After Talks With Putin

Checkpoint Asia
Russian Navy to Be First to Field Hypersonic Cruise Missiles on Submarines
H. I. Sutton, Forbes

Russia Insider
5 Years of Sanctions Have Been a Huge Stimulus to Russian Economy (Russian TV News)
Transcript of "First Five Years Special Report" by Arseny Molchanov

Fort Russ
U.S. White Paper Says It Will Oppose Russia and “Predatory” BRI in Arctic

Laurie Mcfarlane Tweet - The FT


A few weeks ago the FT came out in favour of state planning and moving towards a worker-led economy. Then, a few weeks later, it backed a caretaker Corbyn government. Now this.
The times they are a changin’



https://t.co/zh3oqclwEq



Houthi rebels overturned the chessboard — Pepe Escobar


This was not supposed to happen.

Important article.

Asia Times
Houthi rebels overturned the chessboard
Pepe Escobar

The Financial Times’ Martin Wolf Discovers that Rentier Capitalism and Financialization Increase Inequality and Hurt Growth — Yves Smith


Finally taking on economic rent, and financial rent in particular. This is not capitalism, which is about productive investment based on risk-taking, but rather rentier oligarchy based on expropriation through rent extraction. Rentiers are free riders on the systems. Martin Wolf uses his Financial Times bully pulpit to attack it before the parasites kill the host (ht Michael Hudson).

Naked Capitalism
The Financial Times’ Martin Wolf Discovers that Rentier Capitalism and Financialization Increase Inequality and Hurt Growth
Yves Smith

See also at Naked Capitalism

Two Entrepreneurs Explain Why the Health Insurance Industry Is a Direct Threat to Middle-Class Life
Joe Sanberg, a co-founder of Business for Medicare for All and Aspiration.com, which empowers customers to match their banking and spending with their values and Richard Master, a co-founder of Business for Medicare for All. and the CEO and chairman of MCS Industries, the leading supplier of mirrors, picture frames and wall decor in North America. Produced by Economy for All, a project of the Independent Media Institute

Press TV - The UK has lost its measles free status

I've always doubted whether vaccines were dangerous, and felt that not getting vaccinated posed a far greater risk.



The UK has lost its measles free status. Experts are worried and the government is considering making the MMR vaccine obligatory in view of recent breakouts in places like London.

Sorrel Neuxx - What we don't hear about Tibet

While the world moralises over China's occupation, feudalism and abuse in Tibetan culture has been conveniently forgotten


This was written in 2013, so I doubt if you would ever read anything like it today now the Guardian has been taken over by MI5, according to recent reports. The Guardian today regularly puts out anti-Chinese propaganda.

When I was youger, I would regularly go to my local Buddhist centre to practice Buddhism. But its nihilism, along with being dispassionate, losing desire, and snuffing out the flame of life, wasn't for me at the time. But nowadays I have discovered that the Western translations of the ancient Buddhists texts often got it wrong, and that Buddhism is nowhere near as stark as it seems. Quite the opposite, in fact, so I'm now back into it, but in a gentle way without fundamentalism, and within the Quaker movement.

Anyway, one day I came across an article about Tibetan Buddhism and I was stunned. The Tibetan Buddhists were brutal warlords who run an oppressive cast system and had turned most Tibetans into serfs. The Tibetan monks were the aristocracy who engaged in the brutal suppresion of the population, including using torture. The article said how most Tibetans were pleased that the Chinese had came in to end their oppression.

This article from the Guardian says very much the same thing, but it does mention some Chinese brutality as well.

Tibet seems like as a celestial paradise held in chains, but the west's tendency to romanticise the country's Buddhist culture has distorted our view. Popular belief is that under the Dalai Lama, Tibetans lived contentedly in a spiritual non-violent culture, uncorrupted by lust or greed: but in reality society was far more brutal than that vision.
Last December, Ye Xiaowen, head of China's administration for religious affairs, published a piece in the state-run China Daily newspaper that, although propaganda, rings true. "History clearly reveals that the old Tibet was not the Shangri-La that many imagine", he wrote "but a society under a system of feudal serfdom."

Until 1959, when China cracked down on Tibetan rebels and the Dalai Lama fled to northern India, around 98% of the population was enslaved in serfdom. Drepung monastery, on the outskirts of Lhasa, was one of the world's largest landowners with 185 manors, 25,000 serfs, 300 pastures, and 16,000 herdsmen. High-ranking lamas and secular landowners imposed crippling taxes, forced boys into monastic slavery and pilfered most of the country's wealth – torturing disobedient serfs by gouging out their eyes or severing their hamstrings.

The Guardian

Sorrel Neuxx - What we don't hear about Tibet.

Ed Jones - Five reasons why we don’t have a free and independent press in the UK and what we can do about it

Britain's press is controlled by the same networks of people as run everything else. Is it really free?


A really good article saying about how much of our media is controlled by oligarchs. If the truth were known, Corbyn would be well ahead in the polls. For instance, if people knew about what was happening in Yemen and how the Tory Party is complicit in that genocide, how many people would still vote for them? 

MI5 and the CIA routinely influence and pay journalists to put out propaganda, and some intelligence officers go under cover to become journalists. 


The article gives an extensive list of independent news media, many of which I have never heard of before, so I thought I better pin this to my Start Screen. 
“Only 25 per cent of the population earns more than £30,000 a year. Most media commentators (including me) do. For people like me, the country basically works. Politics doesn't affect me. Politics, for me, is about how other people are treated. It's easy inside my echo-chamber to believe that I am the norm, or the middle. Easy to forget that there are voices outside.

“To people in my position, austerity can be read as regrettable but pragmatic. But to my friends and family, who live outside the bubble, it's not regrettable, it's terrifying. It's also not pragmatic. The crackpot, gimcrack ideological nature of austerity becomes more apparent the closer you get to the point of delivery.”

Evans went on to say:“Mr Murdoch was continually sending for my staff without telling me and telling them what the paper should be. He sent for the elderly and academic Mr Hickey, who went in tremulously, to be told by Mr Murdoch, "Your leaders are too long, too complex. You should be attacking the Russians more."”David Yelland, a former editor of The Sun – another Murdoch owned paper – admitted in an interview:

"All Murdoch editors, what they do is this: they go on a journey where they end up agreeing with everything Rupert says but you don't admit to yourself that you're being influenced. Most Murdoch editors wake up in the morning, switch on the radio, hear that something has happened and think: what would Rupert think about this? It's like a mantra inside your head, it's like a prism. You look at the world through Rupert's eyes."

Wednesday, September 18, 2019

Links — 18 Sep 2019

The American Conservative
To End Endless Wars, We Must Give Up Hegemony
Daniel Larison

Reminiscence of the Future
Sic Transit Gloria Mundi. Some News.
Andrei Martyanov

The Nation
Will Russia Be Driven From the West?
Stephen F. Cohen | Professor Emeritus of Russian Studies, History, and Politics at New York University and Princeton University

AntiWar
Trump Makes Another Bad Choice for National Security Advisor
Daniel Larison

Yahoo News
Exclusive: Russia carried out a 'stunning' breach of FBI communications system, escalating the spy game on U.S. soil
Zach Dorfman, Jenna McLaughlin and Sean D. Naylor | Reporters, Yahoo News