in commenting about cap and trade on my facebook the other day, i posed a simple question wondering what exactly the end result of such a program would be- carbon reduction or capital market bubble creation?
my friend mike replied:
"Cap and Trade is a good concept, but can it work in the real world? who decides the total carbon amount? Who is grandfathered in? It is an incentive to reduce your carbon usage through technology by increasing the monetary compensation. Carbon commodity trading!! Will the government or free market control it?"
monetary compensation as an incentive to modify behavior? like giving my kid an allowance to clean her room?
so i thought i'd have a little fun with this one... my commentary:
i hear what you're saying mike; i suppose there are two ways to accomplish compliance- incentive or penalty.
for instance, speeding and other laws are enforced through penalty. but if we were to follow the logic of modifying behavior through monetary compensation... how about simply paying drivers not to speed?
of course, this would never happen in our world because speed limits are designed for public safety, right?
actually, i'd argue we've allowed speeding to be turned into a municipal revenue generating monster!
so following the logic any good "small-government/free open market/damn the public good/get mine now" proponent would employ... we should be wondering why cities and states get all the money from speeding!?
ok, just for fun, lets dive into this speeding thing...
why not open it up, and create a "street and driving market"? just like cap and trade will issue the original "permits" to polluters for free, simply issue all drivers permits to go fast! maybe all drivers should be allowed "x" number of speeding credits (the mechanics of this are unimportant for the current discussion; lets just say every driver gets "some").
this way the people who don't want/need to speed- even though they now have the right to speed because of the way the system is set up- can sell/trade their permits to others who want/need to go fast. the market pays them not to speed!
in turn, the "speeders" are in essence "pre-paying" the ability to go faster than posted limits.
and the seller of the permit, having been paid not to speed, won't speed because they no longer have the permit to do so... right?
come on... who's to say they won't speed at sometime in the future? do they go back to the market and buy a permit when they need to speed? and if they speed without a permit, who's to say they will actually get caught and be made to pay a penalty! do we need more speed traps and gestapo-like policing? or do we just trust people to do the right thing?
lets go one step further, and put the middle-man in place here; the broker of speeding permits. this guy matches speeders and non-speeders... for a fee. ah... economic growth!
how about this one... permits to kill people! we already permit for fishing and hunting wild animals to control population and generate revenue, why not permit human murder?
now you're speeding (because you have a permit), get in a wreck and kill someone... ok, simply use your speeding and murder credits to get out of it!
or maybe you truly hate someone, or are just really pissed off... buy a permit to knock-em off!
maybe you don't have the stomach for killing, so you SELL your permit to a professional assassin and have them do the dirty work. and lets say professional assassins buy up a bunch of killing credits. now they can legally operate their business! ah... more economic growth!
simply make it legal and generate revenue from it, rather than having it be illegal, and a financial burden on tax payers paying for prisons?
i can see all kinds of ways to make money on this thing; now the market supports brokers who specialize in bundling groups of assassins for, i don't know... hire by governments? special, military contractors? oh wait, we already have this!
of course, this is all absurd (or is it?)
if you really stop to think about it, aren't some things just too important for the common welfare? isn't our human health/well being too precious to allow it to be compromised by "permiting" something harmful, especially through profit seeking activity?
just like speed limits, carbon and other pollution regulations are designed for public safety (health and environment).
we don't get paid to drive the speed limit... why should there be a monetary incentive to do the right thing with pollution?
because it cuts into profits?
you see where i'm going with this. free markets and unregulated capitalism have limits on their ability to benefit the common welfare.
at some point, they become counter productive, reckless, bubble making implosion machines. and this typically happens at the detriment of society as a whole while benefiting a very select few. in other words, something/someone suffers great inequality or destruction.
examples of this go on and on: extinction of species, depletion of resources, loss of human life/quality of life, and greater spreads between socioeconomic status.
the bottom line... just because something can become a market, doesn't necessarily mean it should become a market.
therefore we use penalties- financial and physical (fines, fees, tariffs, surcharges, taxes, incarceration... and even death) for keeping things in check.
now lets look at cap and trade again...
just because a polluter no longer has enough credits to pollute, how do we know they won't continue to pollute?
just look at how enron was able to cook the books with off-balance sheet accounting! someone, somewhere is going to figure out a way to skirt the system, keep the "real" measure of emissions off the books, and be able to pollute/profit.
maybe they get caught, maybe not.
IN THE MEAN TIME... "WE" (THE PEOPLE OF THE WORLD) SUFFER ENVIRONMENTAL DAMAGE INCLUDING HEALTH ISSUES... LEADING TO MEDICAL PROBLEMS... LEADING TO INCREASED MEDICAL COSTS... LEADING TO DENIAL OF CLAIMS... LEADING TO LOWER QUALITY OF LIFE... LEADING TO MEDICAL INSURANCE PROFITS... LEADING TO GREATER DIFFERENCES IN SOCIOECONOMIC STATUS... LEADING TO UNIMAGINABLE HUMAN SUFFERING, IMBALANCE AND INEQUALITY.
is this the world you want to live in?
lastly...
THE BIGGEST EMITTERS OF CARBON EMISSIONS ARE LOCAL, STATE AND FEDERAL GOVERNMENT INCLUDING THE MILITARY.
are these guys EXEMPT? or do they need carbon permits too? and if they have extra (print up a few more because they can!), should they be able to "sell" them on the open market?
if so, do these revenues REPLACE OR REDUCE some taxes, or become an additional "tax" on the people? or maybe the revenues are used to reduce the national debt or deficit?
or does this government activity in open markets actually aggravate the ability of markets to work freely, thus creating more of a bubble (just like fannie mae and freddie mac aggravated the housing bubble!)?
these are the tough questions and considerations we MUST address going forward in our global economy, global governance and global stewardship.
without dealing with these things, we are destined to repeat the failings every society from the beginning of time has eventually suffered... only worse, i fear.
all i know is cap and trade is a bad idea. anytime you put a for-profit motive above the common welfare, the welfare will suffer. period. peace.
Showing posts with label tax. Show all posts
Showing posts with label tax. Show all posts
Saturday, January 30, 2010
Friday, January 8, 2010
kansas city's own private love canal
I happened to be completely unaware of this "economic development" news until tonight when it was the keynote topic at the Building Sustainable Earth Communities "Breaking the Silence" Environmental Conference. This third annual event, held at the KCK Convention Center, showcases area efforts to return core values of sustainable living and development to local communities. This year's theme is "HOW HEALTH AND THE ENVIRONMENT CONNECT".
Basically, the news is Honeywell- the ginormous defense contractor- is planning a new nuclear weapons components facility to replace the aging (and hazardous) Bannister plant (http://economy.kansascity.com/?q=node/5469)
The gist of article is as follows:
As such, the keynote address tonight delivered a rousing message regarding the development of this new facility. The big take away for me was two fold:
1) As of yet, there is no written plan or guarantee from the government to CLEAN UP THE OLD FACILITY. If there is any question about what this means, just think, "Sunflower Army Ammunition Plant" and put a dollar sign on it.
2) The new facility, which is supposed to be financed by the private for-profit developer and run by a private for-profit defense contractor, is actually being funded with tax dollars through a mysterious $79Million "budget allocation" earmark added in such a way as it will not need to be approved through appropriations subcommittees and such.
I won't digress into the politics or launch wild accusations of cronyism, but all you have to do is follow the money to see how this is happening. Look for connections among the players; Centerpoint/Zimmer, Kit Bond, KC Southern, Honeywell, General Services Administration, and the new intermodal rail project. Put the pieces together for yourself.
Things that make you go hmmmm...
Before we as Kansas Citians are force fed our very own private Love Canal, and our children's children are faced with cleaning up a toxic nightmare- or worse yet, some developer ends up building a school or housing project right on top of this crap because he gets a good deal on some cheap land- get into the game, step up to the plate and swing for the fence on this one.
It is expected on Jan 14th, the City Council's Transportation and Infrastructure Committee will consider and OK the development plan. This is an open hearing. You have every right, and an obligation as a citizen, to attend.
DON'T LET THEM DO IT WITHOUT A COMPREHENSIVE, WRITTEN PLAN FROM YOUR FEDERAL GOVERNMENT TO CLEAN UP THE OLD SITE.
BETTER YET, DON'T LET THEM APPROVE THE PLANT AT ALL BECAUSE HEY, WE DON'T NEED TO SPEND $79MM TAX DOLLARS ON NUKES "AND" GIVE THE DEVELOPER/OPERATOR OVER $40MM IN TAX BREAKS ON TOP IF IT.
YEA! That sounds like a fair trade. A worthwhile expenditure. A way to make a real difference for our future.
We're simply trading education, infrastructure and community dollars for war, destruction and nuclear weapons dollars.
You can argue jobs, jobs, jobs all you want. But I will argue, "exactly what kind of jobs do you want for our future?"
Is selling our environmental soul for a quick buck today really the message we want to send? Is continuing to perpetuate a nuclear world the direction we want to go?
Haven't we already proved nuclear weapons are a bad idea?
More nukes do not and will never make us safer as a community, nation or world. Period. But unchecked toxic waste dumps and lining pockets through politics will always deteriorate our society.
Do your own research and then go ahead and contact your mayor (816.513.3500 or mayor@kcmo.org) and your City Council too (816.513.1368) to tell them what YOU think about this.
Basically, the news is Honeywell- the ginormous defense contractor- is planning a new nuclear weapons components facility to replace the aging (and hazardous) Bannister plant (http://economy.kansascity.com/?q=node/5469)
The gist of article is as follows:
- The project would build a 1.4 million-square-foot campus at Missouri 150 and Botts Road
- The agreement, which has been in the works for two years, would keep 2,100 jobs currently at the plant which manufactures 85 percent of the non-nuclear parts for the nation’s nuclear weapons arsenal.
- The developer, CenterPoint Zimmer LLC, must obtain final private financing for the project by March 31
- The project requires city approval because it calls for using a $2.6 million annual property tax abatement over 25 years
- The timetable calls for the first buildings to open by July 2012
As such, the keynote address tonight delivered a rousing message regarding the development of this new facility. The big take away for me was two fold:
1) As of yet, there is no written plan or guarantee from the government to CLEAN UP THE OLD FACILITY. If there is any question about what this means, just think, "Sunflower Army Ammunition Plant" and put a dollar sign on it.
2) The new facility, which is supposed to be financed by the private for-profit developer and run by a private for-profit defense contractor, is actually being funded with tax dollars through a mysterious $79Million "budget allocation" earmark added in such a way as it will not need to be approved through appropriations subcommittees and such.
I won't digress into the politics or launch wild accusations of cronyism, but all you have to do is follow the money to see how this is happening. Look for connections among the players; Centerpoint/Zimmer, Kit Bond, KC Southern, Honeywell, General Services Administration, and the new intermodal rail project. Put the pieces together for yourself.
Things that make you go hmmmm...
Before we as Kansas Citians are force fed our very own private Love Canal, and our children's children are faced with cleaning up a toxic nightmare- or worse yet, some developer ends up building a school or housing project right on top of this crap because he gets a good deal on some cheap land- get into the game, step up to the plate and swing for the fence on this one.
It is expected on Jan 14th, the City Council's Transportation and Infrastructure Committee will consider and OK the development plan. This is an open hearing. You have every right, and an obligation as a citizen, to attend.
DON'T LET THEM DO IT WITHOUT A COMPREHENSIVE, WRITTEN PLAN FROM YOUR FEDERAL GOVERNMENT TO CLEAN UP THE OLD SITE.
BETTER YET, DON'T LET THEM APPROVE THE PLANT AT ALL BECAUSE HEY, WE DON'T NEED TO SPEND $79MM TAX DOLLARS ON NUKES "AND" GIVE THE DEVELOPER/OPERATOR OVER $40MM IN TAX BREAKS ON TOP IF IT.
YEA! That sounds like a fair trade. A worthwhile expenditure. A way to make a real difference for our future.
We're simply trading education, infrastructure and community dollars for war, destruction and nuclear weapons dollars.
You can argue jobs, jobs, jobs all you want. But I will argue, "exactly what kind of jobs do you want for our future?"
Is selling our environmental soul for a quick buck today really the message we want to send? Is continuing to perpetuate a nuclear world the direction we want to go?
Haven't we already proved nuclear weapons are a bad idea?
More nukes do not and will never make us safer as a community, nation or world. Period. But unchecked toxic waste dumps and lining pockets through politics will always deteriorate our society.
Do your own research and then go ahead and contact your mayor (816.513.3500 or mayor@kcmo.org) and your City Council too (816.513.1368) to tell them what YOU think about this.
Sunday, March 22, 2009
has all common sense left the building?
It’s no secret that I have been intensely angered by the financial meltdown. Not because of the loss of "money" as it were (as if any of it even exists!), but for the culmination of intense greed and self-serving behavior perpetrated by PEOPLE entrusted with the public welfare (and I don't mean welfare in terms of a government hand out, I mean welfare as in the general public good). It is my intention to share my views- right or wrong- in an effort to spur MEANINGFUL conversation and hopefully a deeper, real understanding of what's happening, why it's happening, and not for determining who's to blame, but rather, determining who should/will take responsibility in making sure our government is returned to the people, and out of the hands of well-paid corporate lobbyists acting only in the interest of their employer's balance sheet.
To understand money, banking, investment, capital markets, and the notion of "earning something for nothing" simply by trading debt, we really need to have a handle on how "money" is crated and why we think it has value. A very good resource for this is, "The Ascent of Money", a PBS expose detailing the history of the monetary system and why control of it is so important to those in power (http://www.pbs.org/wnet/ascentofmoney/).
And before I go any further, I suggest one simple bit of advice to anyone reading this ... don't take my word for anything. Do your own research. Take time to look into our government (and I don't mean the presidency, I'm talking about the legislative branches- our representatives, and the judicial branch- our trusted, "unbiased" elders.), monetary system, the FED, Treasury/IRS, tax code (20 volumes, 16,000+ pages!!!), and every other cog in the machine which is ultimately "in charge" of our lives. Just remember, the only power any of these things have over us is that which we allow:
" When in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature's God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.
We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. --That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, --That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security."
Think about these words. They are more important than just about any other concept in our country’s history.
Next, we need to have a good handle on the FED, (http://en.wikipedia.org/wiki/Federal_Reserve) and what that organization is all about. The fed is a quasi-public/private FOR PROFIT corporation that has been allowed to not only control the supply of money, but remove any safe guards such as the gold standard (http://en.wikipedia.org/wiki/Gold_standard)
Take a good, hard look at a document put out by the FED called Modern Money Mechanics, A Workbook on Bank Reserves and Deposit Expansion: www.rayservers.com/images/ModernMoneyMechanics.pdf
http://en.wikisource.org/wiki/Modern_Money_Mechanics
This is a detailed explanation of how money is created.
And if you don't think gold is more valuable than cash (Federal Reserve Notes), look at the rise in popularity of "cash for gold" businesses. Over the last couple years (the apex of the financial/capital market implosion), and most recently exhibited by infomercials and traveling trade-shows, there has been a significant increase in businesses setting up shop to aggregate "unwanted" gold and other precious hard goods. Of course they are willing to give you cash for it! Cash, is literally worthless, but you can't very easily buy groceries or gas with gold. So these businesses are more than happy to take your tangible items of worth, transfer "money" to your bank account, let you withdraw "federal reserve notes" from your bank, and go buy your consumables (gasoline and such). In the end, you have no "money" AND no gold. There is a reason people are trying to get their hands on as much of this stuff as possible.
Onward, lets discuss our legislative representative’s roll in all of this. Much of what is happening now can be traced back to the end of 2000 including the Omnibus spending bill passed by the 106th congress (REPUBLICAN MAJORITY) and forced down the throat of then lame-duck Bill Clinton: http://en.wikipedia.org/wiki/Commodity_Futures_Modernization_Act_of_2000
The "Commodity Futures Modernization Act of 2000" (H.R. 5660) was introduced in the House on December 14, 2000 by Rep. Thomas W. Ewing (R-IL) and cosponsored by Rep. Thomas J. Bliley, Jr. (R-VA) Rep. Larry Combest (R-TX) Rep. John J. LaFalce (D-NY) Rep. Jim Leach (R-IA) and never debated in the House.
The companion bill (S.3283) was introduced in the Senate on December 15, 2000 (The last day before Christmas holiday) by Sen. Richard Lugar (R-IN) and cosponsored by Sen. Peter Fitzgerald (R-IL) Sen. Phil Gramm (R-TX) Sen. Chuck Hagel (R-NE) Sen. Thomas Harkin (D-IA) Sen. Tim Johnson (D-SD) and never debated in the Senate.
Another look at legislation from this REPUBLICAN MAJORITY congress is here: http://en.wikipedia.org/wiki/Gramm-Leach-Bliley_Financial_Services_Modernization_Act
Both of these repealed regulation originally designed to prevent financial monkey-business dating back to THE FIRST GREAT DEPRESSION! Regulation that was originally enacted to mitigate the risk of future depressions. The kind of oversight designed to prevent the exact type of CRAP we're dealing with now.
These bills are the genesis of the financial "engineering", wizardry and capital market manipulation that has allowed PEOPLE to take advantage of unregulated opportunities- specifically merging banking and insurance.
Be sure to take some time to look into Phil Gramm, the good-'ole-boy from Enron, um, I mean the great state of Bush, um, I mean Texas, (http://en.wikipedia.org/wiki/Phil_Gramm) and find out which lobbyists/corporations contributed most to his opinions. FYI, Gramm was one of five co-sponsors of the companion bill to the Commodity Futures Modernization Act of 2000[5]. One provision of the bill is often referred to as the "Enron loophole" because some critics blame the provision for permitting the Enron scandal to occur.
OK, after all this, don't forget to take a look at the SEC, and their complete inability to function in the capacity for which it was intended. Think Bernie Madoff and Allen Stanford... and Enron... and Worldcom... and...on and on.
Lastly, look at where the MONEY actually went: banks. Goldman Sachs, Deutsche, Chase, Citigroup, Bank of America, etc, etc, etc. The recent consolidation of banking through bailouts has done nothing but bolster the DEBT, put more money in fewer people’s hands, and created a globally dominant economic force that if left unchecked, will drive further the divide between the haves and have-nots.
Now, some have suggested that the way to "fix" everything is to throw more money at it. Bailouts, tax breaks, whatever.
COME ON! "Buying" the perpetuation of a broken system is not the way to fix things.
And then trying to "fix" misallocated bailout funds by creating a new tax? A 90% tax on bonuses?
I don’t believe AIG made the right call in offering such extravagant retention, holiday and other bonuses, nor for their actually using bailout money to pay them, but this new tax is just as criminal!!! And unconstitutional.
How is taking away money going to do anything but hurt the PEOPLE who NEED it to support our monetary based society?
The fix isn’t to bailout and tax, but to foster a fundamental shift in socio-economic thinking. That greed isn’t good, and corporate profit isn’t the end-all, be-all of our existence.
And those who argue we might be heading towards socialism, bigger government, and other "dangerous" roads that will lead to the destruction of our society...
I say to you that our government has never been as big as it is when lobbyists push corporate agendas, constitutional rights are "suspended" or even stripped away, and more power is put in fewer people's hands specifically with judicial activism, no-bid contracts, and unilateral "secret" decisions that are made “for our own good”.
When we as a nation can allocate trillions of dollars and resources toward efforts in global domination of fossil fuel energy resources and suppression of autonomous societal development, but cannot find it within ourselves to protect, WITHOUT TRYING TO FIND A WAY TO MAKE A BUCK, endangered ecosystems, see that everyone on the planet has adequate food and clean water, and understand that over-consumption, pollution, burning heavy metals and EXCESSIVE carbon emissions are BAD, then there is something fundamentally wrong with our development and value system.
Just as important in all this is the fact that we as a society don't promote healthy living choices in terms of nutrition and exercise... unless we can make a buck at it.
Everyone worries about leaving too much debt to future generations. Well here's an eye opener... ALL MONEY IS DEBT! OUR GOVERNMENT BORROWS MONEY IT CAN NEVER REPAY... EVER.
THE SIMPLE FACT THAT INTEREST IS BEING CHARGED ON DEBT SOLIDIFIES THE FACT THAT THERE WILL NEVER BE ENOUGH "MONEY" TO EVER PAY BACK WHAT IS BORROWED.
HOW CAN YOU EVER PAY BACK MORE THAN WAS ORIGINALLY ISSUED?
Oh, I forgot... go back and read Modern Money Mechanics. Money (debt) that is issued miraculously becomes "more" money (and consequently more debt!), when it is lent with zero gold standard and a 10% reserve requirement.
BTW, our income taxes currently do not even provide enough revenue to our treasury to cover the INTEREST on the national debt! Do the math. Think about that for a minute.
If you want some real reading, real information... real forward thinking, study up on the concept of “resource based economy”- an information, technology and knowledge based intelligent society where the pursuit of financial gain is no longer the primary driver, but rather the development of a global economy without debt. You can’t have a debtless society when people rely on “money” and “interest” Go ahead, google it and see what you come up with.
I'm not saying there is no wealth building with this system... I'm saying that everything is wealth building. And it’s done without the need to put anyone else down to get there.
Utopia? No... just people acting in the best interest of everyone else. Each of us needs all of us, and all of us need each of us. What a concept.
You argue that a corporation is a living, breathing, independent, legal entity. We always hear of, “Washington” did this, and “AIG” did that, “the church” says this.
Here’s another eye-opener… these institutions/corporations are made up of groups of PEOPLE. People do and say things. People guide organizations and institutions. People are responsible.
I submit that corporations are nothing but RULES MADE UP BY PEOPLE. And if we made the rules, we can change them.
Best business practices, standard accounting principles, tax code… it all needs an enema!
We need to open our eyes, get weaned off our cool-aid drinking, war-mongering, terror and fear-instilling, NASCAR watching, lottery playing, “American Dream” believing, subsidy driven, celebrity obsessed, American Idol-Dancing With The Stars-Biggest Loser- MTV watching, got-to-have-it-now, consumption based, unaccountable, irresponsible, dumbed-down barely smarter than a second grader, blinders-on society and GET WITH THE PROGRAM.
This country was built on principles of no taxation without representation, religious freedom, uncorrupted leadership, all created equal, and the rights of life, liberty and pursuit of happiness.
It’s time to get pissed-off! We don’t have to take it. The “government”, the “corporation”, the “institution”… it’s all MAN MADE (and you too, gals!). Nothing happens without people doing something. We’d don’t have to take it, you know. It’s time to get pissed.
Peace.
To understand money, banking, investment, capital markets, and the notion of "earning something for nothing" simply by trading debt, we really need to have a handle on how "money" is crated and why we think it has value. A very good resource for this is, "The Ascent of Money", a PBS expose detailing the history of the monetary system and why control of it is so important to those in power (http://www.pbs.org/wnet/ascentofmoney/).
And before I go any further, I suggest one simple bit of advice to anyone reading this ... don't take my word for anything. Do your own research. Take time to look into our government (and I don't mean the presidency, I'm talking about the legislative branches- our representatives, and the judicial branch- our trusted, "unbiased" elders.), monetary system, the FED, Treasury/IRS, tax code (20 volumes, 16,000+ pages!!!), and every other cog in the machine which is ultimately "in charge" of our lives. Just remember, the only power any of these things have over us is that which we allow:
" When in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature's God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.
We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. --That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, --That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security."
Think about these words. They are more important than just about any other concept in our country’s history.
Next, we need to have a good handle on the FED, (http://en.wikipedia.org/wiki/Federal_Reserve) and what that organization is all about. The fed is a quasi-public/private FOR PROFIT corporation that has been allowed to not only control the supply of money, but remove any safe guards such as the gold standard (http://en.wikipedia.org/wiki/Gold_standard)
Take a good, hard look at a document put out by the FED called Modern Money Mechanics, A Workbook on Bank Reserves and Deposit Expansion: www.rayservers.com/images/ModernMoneyMechanics.pdf
http://en.wikisource.org/wiki/Modern_Money_Mechanics
This is a detailed explanation of how money is created.
And if you don't think gold is more valuable than cash (Federal Reserve Notes), look at the rise in popularity of "cash for gold" businesses. Over the last couple years (the apex of the financial/capital market implosion), and most recently exhibited by infomercials and traveling trade-shows, there has been a significant increase in businesses setting up shop to aggregate "unwanted" gold and other precious hard goods. Of course they are willing to give you cash for it! Cash, is literally worthless, but you can't very easily buy groceries or gas with gold. So these businesses are more than happy to take your tangible items of worth, transfer "money" to your bank account, let you withdraw "federal reserve notes" from your bank, and go buy your consumables (gasoline and such). In the end, you have no "money" AND no gold. There is a reason people are trying to get their hands on as much of this stuff as possible.
Onward, lets discuss our legislative representative’s roll in all of this. Much of what is happening now can be traced back to the end of 2000 including the Omnibus spending bill passed by the 106th congress (REPUBLICAN MAJORITY) and forced down the throat of then lame-duck Bill Clinton: http://en.wikipedia.org/wiki/Commodity_Futures_Modernization_Act_of_2000
The "Commodity Futures Modernization Act of 2000" (H.R. 5660) was introduced in the House on December 14, 2000 by Rep. Thomas W. Ewing (R-IL) and cosponsored by Rep. Thomas J. Bliley, Jr. (R-VA) Rep. Larry Combest (R-TX) Rep. John J. LaFalce (D-NY) Rep. Jim Leach (R-IA) and never debated in the House.
The companion bill (S.3283) was introduced in the Senate on December 15, 2000 (The last day before Christmas holiday) by Sen. Richard Lugar (R-IN) and cosponsored by Sen. Peter Fitzgerald (R-IL) Sen. Phil Gramm (R-TX) Sen. Chuck Hagel (R-NE) Sen. Thomas Harkin (D-IA) Sen. Tim Johnson (D-SD) and never debated in the Senate.
Another look at legislation from this REPUBLICAN MAJORITY congress is here: http://en.wikipedia.org/wiki/Gramm-Leach-Bliley_Financial_Services_Modernization_Act
Both of these repealed regulation originally designed to prevent financial monkey-business dating back to THE FIRST GREAT DEPRESSION! Regulation that was originally enacted to mitigate the risk of future depressions. The kind of oversight designed to prevent the exact type of CRAP we're dealing with now.
These bills are the genesis of the financial "engineering", wizardry and capital market manipulation that has allowed PEOPLE to take advantage of unregulated opportunities- specifically merging banking and insurance.
Be sure to take some time to look into Phil Gramm, the good-'ole-boy from Enron, um, I mean the great state of Bush, um, I mean Texas, (http://en.wikipedia.org/wiki/Phil_Gramm) and find out which lobbyists/corporations contributed most to his opinions. FYI, Gramm was one of five co-sponsors of the companion bill to the Commodity Futures Modernization Act of 2000[5]. One provision of the bill is often referred to as the "Enron loophole" because some critics blame the provision for permitting the Enron scandal to occur.
OK, after all this, don't forget to take a look at the SEC, and their complete inability to function in the capacity for which it was intended. Think Bernie Madoff and Allen Stanford... and Enron... and Worldcom... and...on and on.
Lastly, look at where the MONEY actually went: banks. Goldman Sachs, Deutsche, Chase, Citigroup, Bank of America, etc, etc, etc. The recent consolidation of banking through bailouts has done nothing but bolster the DEBT, put more money in fewer people’s hands, and created a globally dominant economic force that if left unchecked, will drive further the divide between the haves and have-nots.
Now, some have suggested that the way to "fix" everything is to throw more money at it. Bailouts, tax breaks, whatever.
COME ON! "Buying" the perpetuation of a broken system is not the way to fix things.
And then trying to "fix" misallocated bailout funds by creating a new tax? A 90% tax on bonuses?
I don’t believe AIG made the right call in offering such extravagant retention, holiday and other bonuses, nor for their actually using bailout money to pay them, but this new tax is just as criminal!!! And unconstitutional.
How is taking away money going to do anything but hurt the PEOPLE who NEED it to support our monetary based society?
The fix isn’t to bailout and tax, but to foster a fundamental shift in socio-economic thinking. That greed isn’t good, and corporate profit isn’t the end-all, be-all of our existence.
And those who argue we might be heading towards socialism, bigger government, and other "dangerous" roads that will lead to the destruction of our society...
I say to you that our government has never been as big as it is when lobbyists push corporate agendas, constitutional rights are "suspended" or even stripped away, and more power is put in fewer people's hands specifically with judicial activism, no-bid contracts, and unilateral "secret" decisions that are made “for our own good”.
When we as a nation can allocate trillions of dollars and resources toward efforts in global domination of fossil fuel energy resources and suppression of autonomous societal development, but cannot find it within ourselves to protect, WITHOUT TRYING TO FIND A WAY TO MAKE A BUCK, endangered ecosystems, see that everyone on the planet has adequate food and clean water, and understand that over-consumption, pollution, burning heavy metals and EXCESSIVE carbon emissions are BAD, then there is something fundamentally wrong with our development and value system.
Just as important in all this is the fact that we as a society don't promote healthy living choices in terms of nutrition and exercise... unless we can make a buck at it.
Everyone worries about leaving too much debt to future generations. Well here's an eye opener... ALL MONEY IS DEBT! OUR GOVERNMENT BORROWS MONEY IT CAN NEVER REPAY... EVER.
THE SIMPLE FACT THAT INTEREST IS BEING CHARGED ON DEBT SOLIDIFIES THE FACT THAT THERE WILL NEVER BE ENOUGH "MONEY" TO EVER PAY BACK WHAT IS BORROWED.
HOW CAN YOU EVER PAY BACK MORE THAN WAS ORIGINALLY ISSUED?
Oh, I forgot... go back and read Modern Money Mechanics. Money (debt) that is issued miraculously becomes "more" money (and consequently more debt!), when it is lent with zero gold standard and a 10% reserve requirement.
BTW, our income taxes currently do not even provide enough revenue to our treasury to cover the INTEREST on the national debt! Do the math. Think about that for a minute.
If you want some real reading, real information... real forward thinking, study up on the concept of “resource based economy”- an information, technology and knowledge based intelligent society where the pursuit of financial gain is no longer the primary driver, but rather the development of a global economy without debt. You can’t have a debtless society when people rely on “money” and “interest” Go ahead, google it and see what you come up with.
I'm not saying there is no wealth building with this system... I'm saying that everything is wealth building. And it’s done without the need to put anyone else down to get there.
Utopia? No... just people acting in the best interest of everyone else. Each of us needs all of us, and all of us need each of us. What a concept.
You argue that a corporation is a living, breathing, independent, legal entity. We always hear of, “Washington” did this, and “AIG” did that, “the church” says this.
Here’s another eye-opener… these institutions/corporations are made up of groups of PEOPLE. People do and say things. People guide organizations and institutions. People are responsible.
I submit that corporations are nothing but RULES MADE UP BY PEOPLE. And if we made the rules, we can change them.
Best business practices, standard accounting principles, tax code… it all needs an enema!
We need to open our eyes, get weaned off our cool-aid drinking, war-mongering, terror and fear-instilling, NASCAR watching, lottery playing, “American Dream” believing, subsidy driven, celebrity obsessed, American Idol-Dancing With The Stars-Biggest Loser- MTV watching, got-to-have-it-now, consumption based, unaccountable, irresponsible, dumbed-down barely smarter than a second grader, blinders-on society and GET WITH THE PROGRAM.
This country was built on principles of no taxation without representation, religious freedom, uncorrupted leadership, all created equal, and the rights of life, liberty and pursuit of happiness.
It’s time to get pissed-off! We don’t have to take it. The “government”, the “corporation”, the “institution”… it’s all MAN MADE (and you too, gals!). Nothing happens without people doing something. We’d don’t have to take it, you know. It’s time to get pissed.
Peace.
Friday, December 5, 2008
to bail or not to bail?
Should Detroit, or any of the new, small "alternative" car makers get ANY congressional handout from the tax payer?
A billion here, a billion there... all the sudden, we're talking real money! "Getting" some of the money isn't necessarily what is needed by either Detroit or the small start-up car companies. What's needed is a restructuring of our ability to use the economic resources we already have (specifically tax law!) and allowing free-markets to operate. Of course, we've learned that "free-markets" still tend to need some kind of oversight and regulation (worker and environmental safety, etc.), to help keep the rampant, self-serving nature of human greed in check).
In reality, the "money' would be better directed if it were allocated for things like:
(1) Clean energy transportation and renewable energy infrastructure redesign/rebuild- remember, if the original power grid and road/highway system was never built to begin with (which put A LOT of people to work!), there wouldn't have been such a need/desire/demand for automobiles OR the overall growth/increase in standard of living we've experienced in the first place.
(2) Human capital- affordable education with REAL standards, greentech job training programs, etc.
(3) RAISE FUEL/CARBON TAXES!- no one likes higher taxes, but face it, higher cigarette taxes have helped more and more people see that the adverse financial effects of smoking are as hard to swallow as the adverse health effects. The general public needs to be shown that the adverse financial effects of driving petrol vehicles will be as painful as the adverse environmental effects of burning the fuel. This will eventually lead to a decrease in fuel usage, thus a decrease in fuel tax revenues, and the need to replace the funds some other way... like...
(4) Implement a national ROAD USE or TOLL system- Fuel taxes are a type of use tax, because you only pay them as you buy/consume more fuel. The problem with this is that tax revenues are directly dependent on the use of carbon emission spewing vehicles. The more we wreck the environment, the more money there is to better the road systems so we can continue to wreck the environment! VERY BAD IDEA!
But again, as people consume less fuel, even if the tax rate is higher, tax revenues (money used to pay for roads, etc.) will eventually fall. Thus, people that USE the ROADS need to pay for them, regardless of fuel usage. Just like betterplace wants us to adopt a subscription based driving experience, those who drive could subscribe to local, regional or national Road Use Program- paying only for what we use, when we use it.
(5) Consumer incentives- Remember when the government "created" demand for the biggest, heaviest, least fuel efficient, yet most profitable SUVs by allowing up to $100K tax incentives for buyers! Funny how the proposed incentive for the lowly EV is a mere $7500. I PROMISE YOU THIS, IF THE GOVERNMENT WOULD ALLOW UP TO $100K TAX INCENTIVE FOR EV'S (NEW OR USED!):
(A) PEOPLE WILL DEMAND CHARGING STATIONS (BUSINESS/JOB OPPORTUNITIES!)
(B) MORE FLEETS WOULD GO ELECTRIC (LESS CARBON EMISSIONS)
(C) MORE TESLA'S (AND OTHER EV'S) WOULD BE BUILT EVENTUALLY DRIVING DOWN THE COST, AND ALLOWING COMPANIES TO SPEND ON R&D, BRING BETTER AND BETTER PRODUCTS TO MARKET
(D) EVENTUALLY THE "PRE-OWNED" EV MARKETPLACE WILL BE CREATED, BRINGING DOWN THE INITIAL PURCHASE PRICE FOR MANY PEOPLE AND NECESSITATING MORE SPECIALIZED, HIGH-TECH/GREEN COLLAR JOBS TO SUPPORT THE PARTS, SALES AND SERVICE NEEDS OF THE EV SECTOR.
(E) DID I MENTION THE ENVIRONMENTAL BENEFITS OF LOWER EMISSIONS?
YADA, YADA, YADA.
Further, given that the US lost 533K jobs LAST MONTH ALONE, and part of GM's "grand plan" is to eliminate up to 30K more jobs, I don't see that the bankruptcy or reorganization of ANY of the big three would be any more degrading/destructive to society than throwing away billions on an attempted bailout- which many believe isn't even nearly enough money to make any real difference anyway!
So, who gets what? In the end, I'm afraid it's really up to YOU AND ME, AS A GOVERNMENT OF THE PEOPLE, BY THE PEOPLE AND FOR THE PEOPLE, to break away from our blinders-on, apathetic, non-in-my-backyard, Joe Six-Pack, Joe-Plumber CRAP, and demand accountability from business leaders, elected officials and each other.
Cheers! sg
A billion here, a billion there... all the sudden, we're talking real money! "Getting" some of the money isn't necessarily what is needed by either Detroit or the small start-up car companies. What's needed is a restructuring of our ability to use the economic resources we already have (specifically tax law!) and allowing free-markets to operate. Of course, we've learned that "free-markets" still tend to need some kind of oversight and regulation (worker and environmental safety, etc.), to help keep the rampant, self-serving nature of human greed in check).
In reality, the "money' would be better directed if it were allocated for things like:
(1) Clean energy transportation and renewable energy infrastructure redesign/rebuild- remember, if the original power grid and road/highway system was never built to begin with (which put A LOT of people to work!), there wouldn't have been such a need/desire/demand for automobiles OR the overall growth/increase in standard of living we've experienced in the first place.
(2) Human capital- affordable education with REAL standards, greentech job training programs, etc.
(3) RAISE FUEL/CARBON TAXES!- no one likes higher taxes, but face it, higher cigarette taxes have helped more and more people see that the adverse financial effects of smoking are as hard to swallow as the adverse health effects. The general public needs to be shown that the adverse financial effects of driving petrol vehicles will be as painful as the adverse environmental effects of burning the fuel. This will eventually lead to a decrease in fuel usage, thus a decrease in fuel tax revenues, and the need to replace the funds some other way... like...
(4) Implement a national ROAD USE or TOLL system- Fuel taxes are a type of use tax, because you only pay them as you buy/consume more fuel. The problem with this is that tax revenues are directly dependent on the use of carbon emission spewing vehicles. The more we wreck the environment, the more money there is to better the road systems so we can continue to wreck the environment! VERY BAD IDEA!
But again, as people consume less fuel, even if the tax rate is higher, tax revenues (money used to pay for roads, etc.) will eventually fall. Thus, people that USE the ROADS need to pay for them, regardless of fuel usage. Just like betterplace wants us to adopt a subscription based driving experience, those who drive could subscribe to local, regional or national Road Use Program- paying only for what we use, when we use it.
(5) Consumer incentives- Remember when the government "created" demand for the biggest, heaviest, least fuel efficient, yet most profitable SUVs by allowing up to $100K tax incentives for buyers! Funny how the proposed incentive for the lowly EV is a mere $7500. I PROMISE YOU THIS, IF THE GOVERNMENT WOULD ALLOW UP TO $100K TAX INCENTIVE FOR EV'S (NEW OR USED!):
(A) PEOPLE WILL DEMAND CHARGING STATIONS (BUSINESS/JOB OPPORTUNITIES!)
(B) MORE FLEETS WOULD GO ELECTRIC (LESS CARBON EMISSIONS)
(C) MORE TESLA'S (AND OTHER EV'S) WOULD BE BUILT EVENTUALLY DRIVING DOWN THE COST, AND ALLOWING COMPANIES TO SPEND ON R&D, BRING BETTER AND BETTER PRODUCTS TO MARKET
(D) EVENTUALLY THE "PRE-OWNED" EV MARKETPLACE WILL BE CREATED, BRINGING DOWN THE INITIAL PURCHASE PRICE FOR MANY PEOPLE AND NECESSITATING MORE SPECIALIZED, HIGH-TECH/GREEN COLLAR JOBS TO SUPPORT THE PARTS, SALES AND SERVICE NEEDS OF THE EV SECTOR.
(E) DID I MENTION THE ENVIRONMENTAL BENEFITS OF LOWER EMISSIONS?
YADA, YADA, YADA.
Further, given that the US lost 533K jobs LAST MONTH ALONE, and part of GM's "grand plan" is to eliminate up to 30K more jobs, I don't see that the bankruptcy or reorganization of ANY of the big three would be any more degrading/destructive to society than throwing away billions on an attempted bailout- which many believe isn't even nearly enough money to make any real difference anyway!
So, who gets what? In the end, I'm afraid it's really up to YOU AND ME, AS A GOVERNMENT OF THE PEOPLE, BY THE PEOPLE AND FOR THE PEOPLE, to break away from our blinders-on, apathetic, non-in-my-backyard, Joe Six-Pack, Joe-Plumber CRAP, and demand accountability from business leaders, elected officials and each other.
Cheers! sg
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