Federal Government Forgets I am a man

This week reminds me of why Martin Luther King, Jr. was in my home town when he met his untimely murder. It was because of the garbage strike, I suspect many folk don’t know about it to even care, or even understand its corollary with today’s US economic crisis.

Ask any Black person, and they will say the economy is growing. They will also say that it is all because of the policies of President Barack Obama. Ask the same folk how the dollar is doing in the world and the present US economic picture for employment prospects, and they will say he is doing his best and that it will take time, or that he is not just the President for Black Americans. But you never hear such pronouncements with respect to Jewish people, Gay or Lesbians or even Hollywood. They get mentioned and African Americans are conveniently left out of the conversation.

Now I am writing about the economic situation America finds itself in but I want to make this lucidly terse - I was objectively as critical about former commanders in chief starting with Regan and I will continue to be until my dying years as long as I can both read and write. But never have I been attacked prior (and I expected to be attacked) by my own folks for pointing out mathematical facts. For I know some uppity progressive, quasi-liberal, libertarian hating black political pundit will take aim and me and ridicule my suppositions, even if they don’t have facts on their side, all to protect the current Teflon President.

Again, proponents blinded by party affiliation will say the economy is growing and will give the President Props and if it is doing bad will blame it on the GOP. I think both are equally responsible but if it is so good, then tell that to the average African American or college student who is under employed or unemployed.

Fact is many recent college graduates are working at coffee shops and tend to be very skilled workers with higher degrees. In addition, each day they are increasingly ending up in lower-skilled jobs that don't really require a degree. This means they are making it even harder for unskilled workers who usually get such jobs out of the work force and yet, the present administration has offered no policy response to deal with this phenomenon. And by the way, the unskilled can be a synonym for the African American worker.

The US Labor Department reports that approximately 280,000 Americans with bachelor’s degrees and 37,000 with advanced degrees were working minimum-wage jobs in 2012 and that the number of college-educated Americans working such jobs has risen 70 percent in the past 10 years ( a figure double the number who worked minimum-wage jobs before the Great Recession).

The reality is that the high-wage, middle-skilled job — the thing that sustained the middle class in the past no longer exist. Although the mantra of the economy is getting better is batted around like a whiffle ball, the math shows us that the U.S. economy is in a bubble inflated by money created out of thin air by the federal reserve, and all of this money, instead of creating jobs, is going into the stock market by already well-off and wealthy folks. And this cannot and will not last. Obama’s approach is just as Regan’s economic approach - “trickle down.” When the Federal Reserve prints new money, it is basically reducing or stealing the value of the dollar (all the money you have in your bank accounts and wallet).

The math shows us that the Federal Reserve Bank is buying approximately $85 billion in assets every month, while at the same time keeping its key interest rate near zero. This does nothing to reduce unemployment or create jobs but rather only serves investors and big wig traders in the various stock and bond markets. This is why corporate profits and Stock prices are up. The question remains, why isn’t anyone hiring?

Fifteen percent of Americans are on food stamps according to the latest USDA report for November 2012. To put it plainly, in America, there are two economies - one for the rich, and the other for everyone else. The number of Americans on food stamps now exceeds the combined populations of "Alaska, Arkansas, Connecticut, Delaware, District of Columbia, Hawaii, Idaho, Iowa, Kansas, Maine, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Dakota, Oklahoma, Oregon, Rhode Island, South Dakota, Utah, Vermont, West Virginia, and Wyoming." If one is lucky to have a job, it goes on deaf ears that the average worker’s hourly wages, after accounting for inflation, were nearly 2 percent lower this year than last year, and in total is taking home less than $800 a week.

As it stands one in four of every US citizens that is employed has a job that pays $10 an hour or less and for the first time ever, more than a million public school students in the United States are homeless. To top it all off, the U.S Dollar is losing its status as the world reserve currency. Just last week, five of the top ten economies in the world, decided to no longer use the dollar as an intermediary currency for trade. Last week the BRICS (Brazil, Russia, India, China and South Africa) agreed to set up a development bank to compete with the IMF, indicating it's gearing up to compete in a post-dollar world. In addition, Australia (the world's 12th-ranked economy), China (2nd behind the U.S.), Japan (3rd), Brazil (6th), India (9th), and Russia (10th), have agreed to bypass the dollar in bilateral trade with China.

President Obama and Geithner’s toxic asset plan has enabled one of the biggest transfer of wealth in history allowing for big banks to transfer their toxic debts from fraudulent activities to the American People. All the banks are doing is redistributing the nation’s wealth to shareholders and their top executives. This what President Obama has done, even with all his flossy rhetoric is assist the wealthy in get richer at everyone else’s expense. All of the monetary and economic policy of the last 3 years has helped the wealthiest and penalized everyone else. Wall Street is good but Main Street isn’t. How can it be when the richest 10% own 98.5% of all financial securities like stocks and bonds?

But for some reason or another, our economic prowess is always, or in most cases obviated by the inability to be critical of the current administration. For it seems as for most black folk, politics involved talking about President Obama and even his policies in the affirmative only, Trayvon Martin or the GOP. I don’t hear any of the TV propagandists of the African American community dare mention the president’s name in the same sentence with growing equity disparities, employment and poverty as a function of race. And you shole wont here nothing asserting that under the Obama administration, crony capitalism has gotten worse. As President, Obama is prosecuting fewer financial crimes than Bush, or his father, Clinton or even Ronald Reagan.

I recall of this as I said, on the week in which one of the greatest men to ever live was killed. King was in Memphis, marching with sanitation workers on strike for a living wage when he was killed. No one remembers the words he stated while delivering a speech a Stanford University a year before his death: “In this America people are poor by the millions. They find themselves perishing on a lonely island of poverty in the midst of a vast ocean of material prosperity.” And no one remembers how he frequently spoke about poverty and how that during his time, America had about 40 million people living in poverty. Obama seems to ignore that in America, the richest nation in the world today, there are almost 100 million people who are in poverty.

The sanitation strike in Memphis started because two sanitation workers, Echol Cole and Robert Walker died when they were crushed to death with the garbage and nobody noticed – crushed in the back of a garbage truck because during a sever rain storm, they were not allowed by the city to seek shelter from storms. Why because white folks in Memphis at the time didn’t like or want any of the all black sanitation workers to stop in their neighborhoods. Cole and Walker couldn’t fit inside of the truck, so they crawled in the back where the garbage was placed and a broom fell on the lever which resulted in them being crushed to death with the garbage.

I would wish that folks knew this and would never forget this, for this is where the slogan “I am a man. I am a man, not a piece of garbage" originated. It seems that the Federal Government in all of its aspects seems to forget that African Americans are people and that we are men, not the refuse and waste or cheap labor for the rich.

1000 Days: Brilliant But No Management Skills

Our current President, Barack Obama is a brilliant man. Personally I would rank him as one of the smartest Presidents we have had since Richard Nixon and in the same breath with Thomas Jefferson, Andrew Jackson and Woodrow Wilson. But as history has shown us, to be a brilliant President does not necessarily translate into being and effective or efficient one. Yes Obama is brilliant, but just using the example of his efforts to gain traction with our current economic conundrum, it is obvious he lacks the management skills required to astutely address this nation’s economic woes.

Now I am no Obama cognoscenti nor is this to state that he cannot manage, sure he can however much remains to be said of management skills regarding economics. Sure he is a competent jurist and astute in constitutional law, but one can simply examine how he works with his economic team to objectively examine his skill set in terms of management ergo concluding something is lacking. For the record before I proceed, I want to say I stated before and now that Tim Geithner was the wrong man for the job of Treasury secretary and I still stand by this. First I still maintain distrust for former Republicans that turn democrat in particular if they once worked for Kissinger and Associates. Second he is and foremost a banker and will always be as opposed to those of us on main street. I also had a problem when Geithner was living with Daniel Zelikow, as a top JP Morgan Chase executive, while he was overseeing the bailout of several huge Wall Street banks, including JPMorgan, which received $25 billion in federal rescue funds from the TARP program.

I can use the dysfunction of Obama's retinue of economic advisors to demonstrate why I have this opinion and come to the aforementioned conclusion. To start off with, Larry Summers (former Director of National Economic Council), Paul Volcker (former Federal Reserve Chairman), Christina Romer (former Economic Advisor), Elizabeth Warren (former Special Advisor to the Treasury Secretary), Peter Orszag (former Budget Director), and Tim Geithner (Secretary of the Treasury) alone provide me with more than enough substance to make this argument. Just looking at documented occurrences covering the Volcker rule, issues regarding Citibank, the bailout and the first stimulus, gives one an additional layer for discussion.

With respect to Larry Summers, it could be implied that the reason he resigned as director of the National Economic Council was his incessant economic blunders and what some could assert criminal actions. As an economist at Harvard and at the World Bank, Summers argued for privatization and deregulation in several areas, including finance. Prior to this under Clinton, he Summers oversaw passage of both the Gramm-Leach-Bliley Act, which repealed Glass-Steagall and Commodity Futures Modernization Act (which banned all regulation of derivatives, including exempting them from state antigambling laws) as well as permitted the previously illegal merger that created Citigroup. Not to mention, Summers, in concert with Greenspan, and Rubin and dismissed all warnings regarding the impending economic turmoil that we currently experience.

It was a major mistake to place Summers in an advisory role as a man who one did not perceive America’s economic crisis as a serious threat and two, as a man that developed many of the rules in which began this crisis.But this was more the fault of Obama obviously not having studied his past thoroughly and accepting on face value recommendations from his fat cat Wall Street donors.

In concert with Geithner, Summers cost us regular taxpaying citizens up to a trillion dollars or more. How because Obama puts on a front in front of the regular citizen hammering out loud at the banking industry and its faults, yet employs the very same men who rigged this game on behalf of the banking industry. Thus it is hard to say you are hard on banks and want them to get their acts together when behind closed doors you give them everything they ask for and more. Even with respect to Elizabeth Warren, the woman Obama wanted to head his Consumer Protection Agency, Geithner worked against the President wishes, for he insured the Banking industry and Wall Street she would not be approved for nomination, against the wishes of the President.

For example, the Obama administration’s $500 billion plus proposal was only beneficial to the banks and big dollar investors at the expense of the US tax payer. Why? Because we gave money to bailout make believe a false alarm problem contrived by bankers singularly. If one consider a toxic asset held by Citibank with a face value of $1 million, but with zero probability of any payout and therefore with a zero market value, most investors would not purchase such an asset. However, if Citibank itself sets up a Citibank Public-Private Investment Fund (under the Geithner-Summers plan), this allowed the bank to bid the full face value of $1 million for the worthless asset because it can borrow $850K from the FDIC, and get $75K from the Treasury (BAILOUT) to make the purchase - meaning the bank will only have to come $75K out of pocket. This means the bank (Citibank in this instance) would get $1 million for the worthless asset, while the fund in its name ends up with a pile of worthless assets against $850K in debt to the FDIC – allowing the fund to declare bankruptcy and make an easy $1 million. This is the best hustle since buying Newports in the South and selling up North.

I know I said I would present a discussion on the Volcker rule, but I do not want to bore you any further. In summary, regardless of being a President, Mayor, or Governor, Obama does not seem to have or display the management skills required to understand the creative use or utility of power at his hands. Unlike Maynard Jackson, Coleman Young, Richard Nixon, Willie Brown or even a Hank Parker, Obama appears to lack in terms of economic prowess and maybe even social acumen, the apperception that he is in a distinctive place in which the suitable exercising of influence can gather immense efficacy. Unlike the other African Americans mentioned above, although not serving as the President, Obama, has not shown he knows how to use power creatively and find the balance to take chances to correct existing inequities regardless of the political risk.

Like I said Obama is smart, but his management skills lack something: what I cannot say. The turnaround of the members of his economic top advisors suggest this alone. It is one thing to have high turnover, but if any other business or organization showed similar levels of turnover, they would go out of business or become inoperable. Moreover, it is clear that no other parts of his top advisors in other areas (state department, or Justice for example) have displayed similar high rates of attrition. No wonder the economy is in shambles.

I agree the prior presidents from Reagan to Bush 43 got us in this mess, but I also acknowledge that trying to suppurate consensus is not the same as making a decision. Selecting the wrong people (smart folks who do not get along or see eye to eye) is not helpful either and doesn’t equals being able to make a decision. Obama may be too smart for his own good, thinking that coming to a consensus is more important than making a decision. Sometimes a president or a governor or mayor must manage situations accordingly and decide on one policy over another. Can Obama do this has yet to be determined pertaining to his economic policy.

this aint Zimbabwe

Ok, you know me, its all about the economy folk. I have been looking over the back of Geithner and Obama, at least as much as I can suppurate from their statements and documented economic proposals. My problem remains the same – it cannot work with increasing unemployment, inflation, believing that some corporations are too big to fail and more importantly, having no policy designed to stabilize and or empower the US dollar.

The future I see is one of massive government-debt defaults and increased poverty. Yep, poverty. Especially since the debt we have amassed as a nation will eventually be passed on to the US Treasury, Federal Reserve Bank and us regular folk. You can call me crazy if you like but logic and reason remains. Firstly, 1% of Americans own more than 90% of the nation’s wealth, not to mention our debt over the past two years has moved from 11 trillion dollars to almost 25 trillion dollars.

This years annual report on hunger released by the United States Department of Agriculture reported 49.1 million Americans in 17 million households lacked dependable access to food in 2008. This is close to 17 percent of the US population. This tells me more people are below the official poverty level – maybe about 80 million folk. This is not impractical an estimate since the US Census Bureau announced last September that real median household income in the United States fell about 4 percent between 2007 and 2008 alone.

True, I am not an economist but I am no idiot either. The declining state of the US economy is regressing as so at the pace of an avalanche. I suggest we start to watch oil and commodity prices as the real indicator of what is anticipated for the future. I mean you think we don’t have jobs now, there will be less and less if inflation continues to rise, which means prices will increase and folk will be spending less. I hope the President is on to of this, I mean I know he was just in China meeting with our debtors to ensure them that they can keep lending us money. Don’t know if he discussed the dollar for at this rate it will be virtual worthless. This means inflation will only continue as indicated by the recent consumer price index. This suggest to me that if we keep adding to the debt, folk may loose faith in the markets and stop investing all together making this current recession palpable in comparison what may follow. Maybe we need to consider ending floating exchange rates in this country. It is worth a try because in simple terms, money is only worth what folks are willing to exchange for it. This aint Zimbabwe but we may be soon.

Wall Street, DC

For the past coupla a few years I have been writing and thinking a lot about money and economics. Before then I used to always write about foreign policy, I don’t know why, for my professional expertise, or any of my Undergraduate, master of doctorate degrees are in the area of either foreign policy or economics. Moreover, nor am I a conspiracy theorist. I guess you can say I just like puzzles and problem solving and more importantly freely thinking for myself.

I have been consistent and even accurate in my analysis and evaluation with respect to the US government and the so-called representation of an economy it fosters. I have also been consistent in pointing out that there is no difference really between the political beasts we call Washington, DC and the financial varmints we label Wall Street. And for me there is no better example than the Crooks who operate at the top levels of Goldman Sachs. The way I have figured since the 1960, the folks who run and formulate Washington’s economic policy are the same folk who make fist full of loot for their own personal interest. Starting with the chief Thief in charge – Robert Rubin. Now Rubin was forced to resign from CitiGroup as its Chairman earlier this year for his messed performance. It was profitable for him seeing he left with more than 100 million in his pocket. However, he got his start with Goldman Sachs in the mid 1960s where he eventually became co-chairman in 1990. He was only around for a few years for afterwards he became Assistant to the President for economic policy and eventually US Treasury secretary in 1995.

Then there was Stephen Friedman who served as Chairman from 90 to 94 and as the director from 2005 to date. However in between he was the Chairman of the New York Federal Reserve from 2008-2009. Also there is Adam Storch (VP from 2004-2009 for GS) who now serves as the managing executive of the Security and exchange – as if we expect folks to police themselves. Henry Paulson was Chairman CEO of Goldman Sachs until he resigned to become US Treasury secretary in 2006 until 2009.

It also works the other way around. Michael Paese was deputy staff director on the House Financial services committee from 2007-2008 before becoming Director for Government Affairs for GS which he serves as today. Robert Zoellick was US trade representative from 2001-2005 as well as deputy secretary of state from 2005-06 before putting in work as a managing director at GS from 2006-2007.

This is just an example for I can say the same about Citigroup and others. In fact Geithner was VERY close to executives of Citigroup, ( Robert E. Rubin). Now all I am saying is that it is difficult for me to see how folks who created this problem while working both on Wall Street and In the Halls of Washington Politics can solve the problem. Moreover, I think it really show what the problem is. One of importance is revealed incessant incompetence. If most of us messed up dollars on our jobs at scales way less than what Rubin did at Citigroup – we would be fir4d and likely not be employed again. But not these folks. They are head of the game. And we Americans don’t get it, nor does Obama or any of them other politicians regardless of political affiliation. I don’t know about yawl, but I don’t trust nor love them Wall Street, DC hoes. I mean I do not see a difference between the two: Wall Street or DC, do or can you?

$3 a gallon by July 4th

Was re-reading the great Gatsby again last night for the umpteenth time. And while reading the part that describes Cody, the Copper millionaire, I got side tracked to thinking about the economy again. Specifically how we keep spending money we don’t have and need to borrow from other nations and the impact it will have for poor folk the likes of you and me.

It seems to get worse, I mean the State of California and major cities within its borders such as Los Angeles don’t have a budget but still wasting money left and right – like giving a $2 million dollar victory parade for the NBA Champion Lakers when they closing schools left and right and classrooms have 50 or more students. True the NBA will pay half of the $2million but still is another example of wasteful government spending.

My concern is that folk keep on doing things just to do them, not because they will work. All of them, Obama, Bush, Congress, the senate and the Federal Reserve Bank. Seems as if they do not know what we are dealing with, whether if this is a structural recession or a cyclic recession. As such, the stock markets may be artificially inflated and short term. I mean I know Tim Geithner is a smart man, but his approach to the economy is contradictive to Obama’s and seems more inline with that of Ronald Regan. After all, I remember when he was a Republican and worked for Kissinger and Associates .

I personally think that he and Summers may be setting Obama up for the Okie Doke, waiting until unemployment gets to near or above 11% nationwide before they actually start the real work on fixing the economy. And I will not be misled by their talk saying the dollar is getting stronger for to me, a weaker Euro doesn’t mean that the dollar is really stronger. The bigger part of the problem remains with Ben Bernanke, for I can’t tell if he will adjust interest rates in terms of current commodity values or the housing market? What ever the case this July 4^th, don’t trip if gas is $3.00 a gallon in south - $5.50 or more on the west coast). Just my 2 cents, thanks F. Scott for making me see straight again.

And they’re off

Point of Order: Ok first off to Ensayn Reality for bringing his folk to the shop, having a glass of grape, his folk spending loot and supporting free enterprise.

I don’t know if I am the only one noticing, but doesn’t the folk around Obama seem to be taciturn, and maybe in disagreement of the manner in which he has so far addressed foreign policy and the economy? I mean in his own administration. First the Vice President statement that "there's still a 30 percent chance we're going to get it wrong." Then there were the two days of bumbling starring Tim Geithner on the Hill. The former New York Federal Reserve president, who looked the opposite way of Wall Street and all the breakneck and feckless behavior that has our economy where it is today; as well as the man who had a major role in letting Lehman Brothers fail, is looking more each day as incompetent in his ability to both make any decisive economic action, let alone serve as the point guard for Obama's economic proposals.

Now I won’t lie this at Obama’s feat, since the only part he had in it as an enabler was signing that first bail out bill. But as I have indicated above, I can at Mr. Geithner. What I can do is with Obama is study his plans, which seem to me a bunch of Malarkey, especially for a man so insightful with respect to history. Geithner basically threw the Obama administration under the bus basically asserting that they had no plan in place for the economy – which is really Geithner’s job description. Just like it seemed when The Vice President said what he said. I just wonder if Obama, didn’t expect this, seeing we knew whit Biden thought of Jones two years ago?

This is one reason I, as in a prior post by comment suggested and agreed with several readers that the current President is more akin to FDR to me than Lincoln. I would have hoped that this revisiting of the great depression would have been coupled with examine the position of Hans Morgenthau. Sixty years ago Morgenthau published Politics Among Nations, which systematized the notion of political realism. It was based on his experiences as the treasury Secretary for FDR. Morgenthau admitted that the New Deal approach of spending did not work and was short term; that no amount of spending at the government level helped in the long run. He admitted:

"We have tried spending money. We are spending more than we have ever spent before and it does not work. And I have just one interest, and if I am wrong ... somebody else can have my job. I want to see this country prosperous. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises ... I say after eight years of this Administration we have just as much unemployment as when we started ... And an enormous debt to boot!" [Source]

I have basically decided to respectfully disagree with the Obama approach. I was down before any plan or non plan was presented. But what got me was what he said during his economic press conference February 9, 2009 “At this particular moment, with the private sector so weakened by this recession, the federal government is the only entity left with the resources to jolt our economy back to life.” He had said something similar a month ago on January 8, 2009. It was the government that got us in this mess. It will only be solved by us on the ground, by saving, buying from one another and insisting that they stop shelling out loot for the sake of spending. It took us years, decades to get into this and most likely ten years to get us out of this mess - if the FDR years are any teacher.

As of now I expect it will be us on the ground, the foot solders that feel the brunt of our economic woes. For they seem to be jockeying for position in the Obama administration, and doing so on two fronts: the economy and foreign policy. Secretary Clinton is not even in the dog pit yet, but best believe she will soon. We all suspected that the Lincoln cabinet building approach was tenuous and fifty fifty at best. Yep it is on us because they are in the starting gate and they’re off.

riddle me this #9

1] Is it me or does Gov. Blagovitch look like a cabbage patch doll?

2] If President Obama would say something to all of the strippers, would he say “thanks for supporting me at the Poles?”

3] If Jason of the Halloween Movie legacy drowned as a child, how can he have a zillion movies after his death that folks pay to go see?

4] If they let alcoholics charge or convict folks with DUIs should a person get mad, especially if they let a person who is a know tax evader, Tim Geithner run the secretary of Treasury? Should he get mad if we decide not to?

5] How can President Obama propose jobs in the manufacturing sector, if America has basically no manufacturing base?

6] Speaking of the former Governor of the State of Illinois, wonder what a Television show, hosted by He and Sarah Palin world be call, and would you watch?

7] Why couldn’t my start up business be selling HDTV converter boxes?

Have a great weekend. Back to what i do best Monday.