With each cycle of the income crisis negative feedback loop an accelerating economic decline moves the global economy spiraling downwards into an abyss that will eventually end in total economic collapse. Systemic declining real wages starting over 40 years ago has laid the fragile foundation that fed a continuing drop in consumption when credit could no longer be a sustainable proxy for income among low to middle wage earners. Even if credit was suddenly available - average Americans are already highly over leveraged. These factors triggered a negative feedback loop of declining real income available to 95% of the citizenry, falling consumption directly proportional to falling incomes, and declining business revenue accompanied by job lay-offs & retail price declines (deflation) all completing each successive feedback loop cycle. All along the course of the feedback loop cycle theses effects oscillate across the general economy in a continual downward slope of economic decline that translates into falling GDP and national capital stock destruction that occurs at an ever increasing exponential rate.

Reversing an income crisis 'drain spiral' becomes more difficult with the passage of time since unemployment and capital stock destruction exponentially increases across a number of income crisis negative feedback loop cycles. The longer a government waits to enact substantial fiscal stimulus targeted at low to middle income citizens the more and more 'income emaciated' these citizens become thus making it much more difficult to push the entire economy up out of the income crisis spiral.

Eventually, the nation's capital stock becomes so inconsequential from an economic perspective and the number of citizens who are unemployed so numerous that the government becomes the sole income generating agent (presumes the government has infused the economy with insufficient fiscal stimulus and/or is still making government expenditures into the private sector) in an extinct standalone private economy that has reached the terminus in an income crisis deflationary economic spiral.

Reaching the terminus point is a foregone conclusion without substantial (10% of GDP) government fiscal stimulation of the 'real' economy. At this terminus point economic activity in the country has been completely extinguished from successive negative feedback cycles down economic gradients with ever accelerating declines in GDP and national capital stock destruction.

Infusing the supply side (financial sector - or top of the pyramid) with government bailout capital will do absolutely nothing (covered in many of my previous essays) to get the 'consumption engine' of an 'income starved' economy running again. Effectively, there is no substitute for bold decisive action on the part of government policy makers in implementing a substantial fiscal stimulus program that immediately creates sufficient stable employment (not a token number of jobs) at a sustainable higher tier private sector wage rate. This must be immediately followed up with rebuilding the nation's capital stock to pre-income crisis levels through infrastructure investment in an industrial base that lends itself towards taking advantage of a nation's competitive advantage in multiple areas. In the case of the United States it has been determined that long term stimulus investments (substantial) that target the creation of a 'Green Industry' sector would have the potential of employing millions of Americans across all professions within two main program branches comprised of manufacturing and delivery. Subsidiary industries would also be created either directly through government and/or private sector capital infusions that would ultimately employ a cross section of every professional occupation group that has been placed on the unemployment rolls during this income crisis.

The global community has so little time left in which to act decisively. We are racing ever faster with each passing day down a cold dark abyss towards the terminus of economic collapse. We must act now, not later.

Posted on my blog 11/5/2008 at:
http://structuraleconissues.blogspot.com/

It's impossible to conclude that our economic environment is not subject to the same diversity that comprises our natural environment. Given that an economy is a subset of the society that wrests itself from an unforgiving natural world riddled with chaos, why do some branches of economic thought continue to rationalize humankinds pecuniary endeavors down to neat tightly, clean, predictable outcomes. The structure of an economic system must reflect the multifaceted and diverse characteristics of the world in which it operates - a world of varying personalities all interacting in incoherent ways.

Our universe is not clean and orderly it-s very, very messy - nothing ever seems to work out according to the best conceived plans. It is therefore imperative that we not endeavor to extend our subconscious world view of tidy, neatly trimmed 'lawns' to any natural substrate in the living breathing messy struggle for life. There are no 'lawns' of perfectly crafted conception in nature so why extend the improbable to a natural world substrate? A prairie ecosystem is full of tall grass of varying varieties, riddled with ground squirrel holes, snakes in some regions, muck, and a variety of wildlife not allowed to intrude into our comfortable neat complacent checkerboard communities. But the interaction between the two does result in changes that affect both.

Similarly, our economic system must reflect the realities or 'ground truth' inherent in the natural environment, societal structure, and impractical, irrational interspersed behavior of the human substrate. So why continue to refine any economic model based upon illusion by further perturbing an already tumultuous society by injecting policies that don't align with any existing observable dynamic?

Over the past few years we've been led to believe that the Laissez-faire neoclassical economic realm of illusory conceptualization would translate into this wonderful world guided by some 'invisible hand'. Ours would be a service sector oriented economy never again requiring the utilization of dirty hands, and strong muscles. Every citizen would magically be endowed with all the necessary intellect, desire, and personality to expand the service sector into the preeminent sector of employment. There was just one problem with the distorted nation state competitive advantage simplistic view of our globe - it still left a substantial segment of our population underemployed, and unemployed because they just didn't fit into the special mold of a service sector laborer.

Expanding the concept of competitive advantage outside of its original boundaries centered in a particular industry was just another attempt to mold reality (only perceptually achievable by propaganda) to fit illusion. Over the past few decades we've been deluding ourselves into thinking that a viable economy can function stripped of its manufacturing sector. It has become abundantly evident that an economic system crafted for the benefit of the larger community cannot operate solely as a service sector economy devoid of a sustainable manufacturing base.

Competitive advantage must mold both the service sector and manufacturing components across industry segments that are jealousy defended by national policies within a completely economically integrated world. No economy can be sustained under just one of these core economic components they both must be merged together in order to achieve some semblance of economic and societal sustainability & stability.

We have witnessed the effective subversion of an already inherently unsustainable service sector nation-state competitive advantage model into something contrived and contorted beyond its illusory construct. Perpetuated by the 'information age' propagandists we were led to believe that an economy could be solely built upon a technologically oriented service sector. Factories were no longer needed within an economy based solely upon intellectual labor. The problems with this early nation-state competitive advantage centered model were three fold. First, it was myopically constrained to a nation-state centric advantage that never expanded across borders. Secondly, it failed to account for the unpredictable effects of human behavior within a tumultuous greed enhanced global society. Thirdly, as already conveyed, the competitive advantage of a technologically oriented service sector was too broad in scope to be maintained at the nation-state level.

But what mutated from this touted elegant distortion of reality was driven by the second factor, the uncontrollable greed educed by Laissez-faire religious tenants that encouraged human behavior contrary to the maintenance of sustainable and stable communities. Any behavior was permissible in the corruptly focused short-term greed addicted behavioral state. What evolved was a belief system built around the individual to the exclusion of the community a credo that any means was justified even the 'slash and burn' pillage of entire nation-states to fulfill the unquenchable desires of the few wealthy elite. Labor arbitrage became the 'club' of choice wielded by the 'strong arms' of an army of mercenary lobbyists fielded to sustain the wealthy fiefdom's ability to exploit workers by any means imaginable.

With so many interconnected messy threads weaving throughout our society, class consciousness, across unique behavioral responses to stimuli, and the turbulent at times dangerous physical world we inhabit it is abundantly clear that any economic theories must be conceived in the forge of reality. It is a reality that recognizes a simple requirement of all human beings - fairness. Without fairness or some form of equity, infused with equality the best conceived seemingly realistic policies will be nothing more than distorted illusion cloaked in a thin veil of reality. Human beings are very adept at perceiving whether certain aspects of their societal framework is fair, or slanted towards the interests of those ultimately in control. No amount of 'packaging' will deceive a community of citizens over the 'long haul' - this is aptly reflected in the current rejection by the general populous of the trickle down supply-side greed based economics benefiting the few practiced over the last few years.

Quakers believe that we are all our brothers keeper, that when we act in the best interests of our fellow human beings we serve the better interests of our communities. Thus, realizing that in order for a sustainable, stable economy to transpire we need to include everyone; those who desire or are suited to work in a vibrant manufacturing component, others who excel in a service sector intellectual or assistance driven component, and those who must be cared for by a compassionate community (government) because their unable to survive in either component of a competitively oriented sector of our economy. It is also important to integrate our nation-state economies into an 'International Economic Congress' whereby the interests of Capital (businesses) and Labor can be democratically resolved, and a coordinated oversight of all economically related endeavors can be achieved for the betterment of the entire global community. We are on the cusp of an appreciation that transcends any past global paradigm shift - our movement towards a sustainable, stable world community is very achievable. Let's make it happen.

Originally posted on my blog at:
http://structuraleconissues.blogspot.com/

Future of Democratic Talk Radio after the 2008 Elections
November 10th, 2008

Dear Friends,

Democratic Talk Radio wants to thank everyone for their support of our mission. We have been devoted to bringing the Democratic message to America’s airwaves since I first bought airtime the night that the US Supreme Court imposed the Bush Presidency on our nation in December of 2000.

The show went on the air in January 2001 in Tennessee on a small AM station and soon moved to a more powerful FM station reaching a much larger audience in both northern Alabama and central Tennessee. I largely funded the effort out of personal resources. I invested over $35,000 keeping Democratic Talk Radio on the air in Tennessee.

Briefly, we broadcast nationally on the now defunct i.e. America Radio Network which was backed by the United Auto Workers union.

Our show is available free of charge to any radio station in your area that wants to broadcast it.

In the early Spring of 2008, we moved Democratic Talk Radio to the Lehigh Valley area of Pennsylvania. Our show broadcasts Thursday mornings on WGPA SUNNY 1100AM in Bethlehem, Pennsylvania. Sponsors paid the majority of the costs although I did invest nearly another $4,000 personally.

I want to thank all our sponsors.

The Mailroom union print shop in Allentown has been hugely helpful and supportive. I am going to be working with them as a new addition to their sales team on a commission basis. I exclusively use them for all my printing needs. The prices, service and quality are just excellent. Please let me know if I can connect you with them to meet your printing needs. We all need to print union.   Read More »

Very early on the morning that Senator Biden flew to the nation of Georgia as the Russian-Georgian war was cooling down, I received a phone call from a labor activist friend of mine from the Eastern Region of the Laborers (LIUNA) union. The caller was Brian McGlinchey. He asked me if I could get in touch with a certain Laborers Local 199 member who was facing foreclosure and was trying to support a family of ten (now eleven as a new son was born two weeks ago). McGlinchey explained that the Senator Biden personally wanted to discuss the difficulty facing this working family to see if he could be of assistance.

I immediately called the wife of James Yetman, the union construction worker whose family was facing the loss of their home, at their house. She explained that James was already on the job. She gave me his cell phone number. As I fired up my coffee pot and started dialing James Yetman, I looked at my clock. It was 6:45am. I thought to myself, “How can a working man already on the job at this hour be facing foreclosure?”

I already knew the answer. James had a wife who was unable to work because of a uncurable serious chronic health condition and because she was nearly 8 months pregnant. She had 5 children from a previous marriage when she married James. They had 3 more together (not counting the one on the way at that time). James had been out of work for an extended length of time during the winter. Fuel, food, medical, insurance and heating expenses had exploded during the past year. They were being squeezed from every direction.

They had been victims of a mortgage that I had viewed as predatory when I examined it. It was certainly more than they could afford on their income. They had not had many options other than agreeing to the lenders terms since it is almost impossible to find landlords willing to rent to such a large family. Section 8 housing had been severely underfunded by the Bush White House and their Republican allies in Congress. They were going to get no help from the Bush Administration. Maybe, just maybe, Biden might be able to help.

I managed to get James on the phone as I sipped on my first cup of coffee. I had great difficulty getting him to agree to meet Senator Biden. James did not want to miss the hours of work. He needed the money. This was before Senator Biden had been selected as the Democratic Vice Presidential candidate. James finally relented when I told him that Biden was on a banking committee in the US Senate and was his best chance of keeping his home.

James checked with his boss and called me back after getting approval to leave for the meeting with Biden. I picked him up from his job site in Newark, Delaware. We drove to Wilmington, Delaware to meet Biden at Angelo’s Luncheonette. We arrived a little early.

Angelo’s is a really small, working class neighborhood establishment with excellent and inexpensive food. I was surprised that the Senator would pick a place like this to meet. It had no reporters hanging around nor the usual political crowd that frequent the kind of public places where I had normally met other political figures in the past. I liked it immediately.

I had ordered lunch for James and myself when three of the leaders of Laborers Local 199 walked in the door. They were Business Manager William Carter, Vice President James Maravelias and Business Agent Toby Lamb. They explained that they were there to show their support for the union member facing foreclosure.

They were very concerned about the plight of the family. I understood their position. Non-union members often do not understand that members of the union movement really do consider each other as members of the same union “family.” We call each other brothers and sisters. The really active members and the leaders really mean it!

We were all finishing our lunch together when Biden arrived. He had his sister Valerie with him and several staff members. I was really surprised that no press were in attendance although one of the staffers had a camera. We persuaded the staffer to take some photos. I am really glad they did since many friends of the Yetman family refused to believe the story about the meeting without the photos.

There were maybe another ten customers and workers in Angelo’s Luncheonette besides the five of us from labor. Biden gave everyone considerable personal time and attention before talking to us.

Everyone wanted their photo taken with Biden. Most had personal stories to share or previous personal meetings to discuss with the Senator. It was easy to see that Biden was at home in this middle class and working class neighborhood. He was one of them who had made good and not forgotten them.

Eventually, Biden made it to the back of the establishment where we were sitting. He remembered the local union leaders and talked with them briefly. They introduced James Yetman to Senator Biden. James was visibly nervious at first but the Senator quickly put him at ease. Soon they were deeply involved in conversation.   Read More »

Barack it has absolutely nothing to do with saving our neighbors house that is burning because it might be a threat to our own but everything to do with not risking life and limb to save this same house that is already entirely destroyed by termites. The American people are not being vindictive by wanting to hold back $700 billion dollars from Wall Street but are being prudent by not wanting to waste what may be the last substantial amount of taxpayer dollars before the final decent into the abyss of a global income crisis.

We have one last chance at 'jump starting' this economy and that can only be done from below where 95% of lower to middle income citizens consume by purchasing products and services that are produced by the global economy. Nothing will be accomplished by throwing more and more money at Wall Street in an attempt to get the credit markets lending again because once the investment community became aware of the extent of consumer and business leverage they lost a certain amount of confidence in all facets of the U.S. economy. Both foreign and domestic credit markets are not freezing up but what is actually occurring is a natural reaction to the discovery that U.S. businesses and consumers have overextended themselves in an un-concerted attempt at maintaining a level of economic expansion (lifestyle or revenue stream) that is unsustainable given the continuing drop in consumption spending by consumers as a result of their declining incomes.

Now that both businesses and consumers are facing the reality of the real market economic forces that act to stabilize out of balance conditions, all facets of the economy are crying for immediate relief even those such as the financial institutions that will just have to write off or write down most of the over valued credit assets that their customers both businesses and citizens are unable to continue to carry.

Until the 95% of low to middle income U.S. citizens are afforded a substantial increase in income (equated to all the lost income never received from years of productivity gains) the global economy will continue to tank. No other option remains - either use the $700 billion (more required) to 'jump start' this dying income starved economy or watch it decline to the point of no return.

Also, we shouldn't believe everything pandered by the sensationalist media parrots especially when it regards Economics. Investors moved back into the markets today mainly to acquire 'dirt cheap' bargain stocks and investment instruments not simply because they even remotely expect help in the form of a bailout from the U.S. Congress or that if it did transpire would have any effect on confidence anyway. Therefore, what all of us should attempt to do is maintain a link to reality based upon the facts of each day and not take credence in any neoclassical Economic ideology predictions that are rooted in policies that have brought us to this calamitous point in time.

Moving our economy back to a higher level of consumption spending that is not based upon consumers who are over leveraged and businesses that are equally overleveraged because their income is being drained off by greedy executives and board members must be the goal for our nation. Draining more income from the 95% of low to middle income citizen taxpayers in order to invest in worthless debt related assets that would be better purged from our economic system entirely does not lead to a sustainable economic system nor does it help in resolving our current chronic income crisis - it only makes matters worse. We need to invest in America not throw what may be our last remaining dollars that haven't yet been devalued (given time) to the point of being worthless up into the wind, only to be blown across a fast encroaching economic desert.

We have the power to thoughtfully address the income crisis which is the root cause of our economic calamity but only if we remain open-minded to all approaches that are centered upon getting substantial income in the hands of average Americans who will faithfully spend (representing 2/3's of GDP) it on products and services. Not only is it the economically sensible thing to do but the morally right thing to do.

http://structuralEconIssues.blogspot.com/

All the below essays may be read at-

http://structuraleconissues.blogspot.com/

o Use $700 Billion to Stimulate Real Economy
o Fast Bailout of Wall Street �" No Help for Main Street
o Stand Up Citizens - It is Time to Be Counted
o Death of the Great Consumption Engine
o Stepping from the Past into the Future
o Our Nation’s Dying Debt Engine
o $700 Billion to Feed the Supply Side Monster
o $700 Billion Bailout �" Reverse Robin Hood Effect
o Financial Pollutants, Government Bailout, and HOLC
o Great Depression History Propaganda Spread by Elite
o Income Drained From Below Covers Losses of Elite
o Federal Toxic Debt Clearinghouse �" Cleansing Debt from Books
o U.S. Treasury Open To Loot �" An Economy Spiraling Down
o AIG Raids U.S. Treasury �" Lobbyists Work Pays Off
o Root Causes of Our Current Income Crisis
o Acquiring a Rational Economy
o Workers Demand Democracy Not Machiavellian Evil
o Income Crisis - Accelerating For Impact into Economy
o They Sacrifice the Dreams of a Nation
o Building a Foundation of Understanding
o Completely Nationalize Freddie Mac and Fannie Mae
o Deflationary Stage of Income Crisis Reached
o The Illusion of Justice

Late Friday afternoon I was driving with my daughter. She asked if I was going to watch Stand Up 2 Cancer that evening. I said yes but that it was going to be hard. You see my mother died of cancer. My wife�s father died of cancer. My daughter said she guess she understood. The thing is someday she probably will. As we all learned that night or at least those who did not know already, everyone gets touched by cancer eventually.

When the show began I was where I am most nights at eight oâ�� clock, I was washing dinner dishes. I looked up and saw the people in the stands as they asked that every other person sit down. As I listened to one person after the next tell who in their lives had already been lost salty tears reached my lips. Ever time someone said â��my momâ�� the tears grew stronger. I remember my mother taking care of a neighborâ��s wife as she whittled away from cancer. My aunt on my motherâ��s side was more than emaciated by the time she passed. I remember saying good-bye to my own mother while she could still understand. The more I watched the more it reminded me of other telethons gone by.   Read More »

All the below essays may be read at-

http://structuraleconissues.blogspot.com/

[The Illusion of Justice]
Unique boundless power is exerted upon those citizens that are unfortunate enough not to be among the corrupt few. Regardless of your stature, education, or intelligence those unscrupulous corporations and other guardians of government 'disservice' who command influence over our judges will engage in any action that will perpetuate our obedient servitude to their slanted economic system. It is an economic system integrally tied to a legal system woven to snuggly fit our corporate culture manipulated by a few business elite who use it to their exclusive benefit.

With staggering sums of money being spent by the elite to maintain a legal web of forced obedience on the part of the general citizenry is it any wonder that a citizen of modest income is 'priced out' of obtaining council for anything other than trivial cases.
...

Essays written in August-

Our Survival Depends Upon Cooperation
Don't Become another One of the Worn-Out
Citizens Gather to Hear Message of Hope & Change
A Sustainable Future for America Built Upon Equali...
Americans United Behind a More Equitable Future
One Nation, One World Willing To Dream
Pragmatic Solutions to Global Economic Problems
Henry Ford Realized the Importance of Adequate Wag...
Reach Out For the Radiant Light of Hope
Production Camps Build Upon Tumor of Greed
Unity Vanquishes Selfish Destruction
Business Alchemists Believe In Their Infallibility...
Democrats and Republicans Extol Business Party Lin...
Russia's Plan for Reestablishing Empire
The Programming Wasteland
Crumbling, Neglected, Cheap American Society
Shock Waves from Russian Conflict with Georgia
Corporate Masters Marginalize Current Citizens
Collusion to Lower Wages and Thus Fix Prices
The Corporate Beast Reigns Supreme over Everything...
Human Labor Exploitation Has Occurred For Eons
Message from Behind the Economic Iron Curtain

It is important that all our efforts be directed at getting Barack's message of positive change out because it is currently being overshadowed by the news coverage devoted to Sarah Palin.

In 2006, we went a long way towards defeating corruption in the Congress. The former Republican Congress, led by such men as Tom Delay was shown the door by American voters. Despite this, we still have a long way to go towards defeating Corruption in the Congress. As long as men like Exxon Ed Whitfield are allowed to haunt the hallowed halls of Congress, we have work to do.   Read More »

I sit here and grind my teeth and listen to the lies that Fred Thompson and the RNC are trying to force the bright and knowledgable people of this to country believe.
Do they really think that anyone...other than the lack luster people sitting in that audience, will believe any of it?
So I ask Former Senator and might I add much better actor than I thought Mr. Thompson, We are winning the war are we?
Well whats the prize dumb@$$?

Any one know what he thinks?

From the lion Teddy Kennedy to the not so silent lamb Michelle Obama, that is the way to start a convention. Baltimore's favorite Californian Speaker Pelosi let the convention know that we'll get to take on John McCain, later. [Just heard the Tonight Show audience's response to Leno's question to McCain about houses and his POW answer - Carson would have thrown them out of the theatre] Back to what I was going to say. The themes they spoke about are the ideals that first brought me to the Democratic Party. First family, seating down to dinner together, helping kids with home work, helping neighbors when they need it. The other ideal, that to who much is given, much is expected. There are two views of America - one that looks at the shining city on the hill and the other stands on the shore looking out on the horizon.   Read More »