Local High School Star
Join Date: Mar 2007
Re: Jeff Berwick -Get Far Away From The U.S... Collapse Will Be Messy
0% FedeRAl cRediT FoR PRodUcTion
At the same time, the Main Street Credit Facility will offer 0% federal credit to automobile manufacturers, Silicon Valley, biotech and pharmaceuticals, farmers, and any and all companies active in manufacturing, construction, mining, scientific research, energy production, and other forms of tangible, physical, commodity production. Cheap credit for productive activity must be available all the way down to the local auto repair shop, dry cleaner, plumber, electrician, or restaurant, since all of these represent tangible physical production. Financial services will no longer be eligible to be subsidized by cheap federal credit.
This policy of federal lending, as distinct from federal spending, can be used to break the current political impasse. The cost of capital can be radically lowered, and a competitive advantage of the United States in world markets can be secured. The overriding goal is the creation of 30 million new jobs, with high capital investment, high energy intensity, high value added, and high technology.
A president of the caliber of Franklin D. Roosevelt could implement this policy with a single phone call to the Federal Reserve, informing Bernanke of what the national interest requires in the current emergency. The ultimate goal must be the nationalization of the Federal Reserve, meaning that its policies must no longer be set by secret cliques of bankers meeting in the paneled boardrooms, but rather by public laws approved by the House and Senate and signed by the president – the only conceivable method under the current system. These laws must determine the amount of credit to be made available, the interest rates to be applied, and the approved categories of lending.
Cheap federal credit can and must be used for the vast program of biomedical research already mentioned, for research and development in the field of high-energy physics, and for the revival of the space program. These represent the first three of multiple science drivers that can be used for technological modernization and the increasing the productivity of labor.
If applied today, the Keynesian methods suggested by Krugman and others would result in excessive burden on the federal budget, thus creating a vulnerability to speculative attack on the Greek model. The Keynesians also do not understand that it is impossible to defeat a depression without a recovery in the capital goods industry. The consumer- led recovery was implicit in the Obama stimulus of 2009, which had positive effects, but which has failed to produce a sustained broad-based recovery. The theoretical basis for the program advanced here is the traditional American System of Alexander Hamilton, Friedrich List, Henry Carey, Henry Clay, Abraham Lincoln, the populists, and the New Deal. The method of transforming the central bank into a national bank to finance a recovery derives from the work of Woytinsky and Lautenbach, interpreted in the light of the experience of the US Lend-Lease Program.
oUR meThod oF inTeRvenTion
Under depression conditions of economic breakdown and increased political repression, traditional methods of class defense and struggle become outmoded and likely to fail. Any struggle which remains isolated or confined to a single group in the population is in danger of defeat. Our guiding principle is to mobilize and rally the principal components of the 99% around individual struggles, with the goal of uniting them in a single common front capable of effective action. Labor unions, unorganized workers, the unemployed, blacks, Hispanics, women, farmers, soldiers, and other groups are all indispensable for such a common front. We seek to create a national coalition capable of asserting the common interest of the 99% against the 1% who currently monopolize all power.
For this to happen, a common program of the type we have outlined is required. The time is coming when it will be realistic to think of a nationwide general strike capable of directing the Congress to enact a Wall Street Sales Tax as part of legislation rolling back cuts to social services, the social safety net, and government jobs at all levels.
In the run up to the November 6 election, we call for a mobilization of all persons of good will to secure the passage of proposals A and B in Michigan, to assist communities like Benton Harbor putting an end to the dictatorship of Governor Snyder’s emergency managers.
For November 8, we urge all who can to intervene to breathe life and a program of the Wall Street sales tax into the demonstrations called by the AFL-CIO and the SEIU to protest against cuts in Medicare and Social Security. We expect to provide programmatic leadership in the fight against the Grand Bargain.
We are closely following developments in the struggle at Sensata Technologies in Freeport, Illinois, where workers are fighting the export of their jobs to China planned by Romney’s Bain Capital. We’re also following the nationwide agitation against Walmart.
We are also closely following the efforts of French workers to prevent the closure of Peugeot plants, and also the resistance to plant closures by Ford in Great Britain. We are in touch with anti-austerity forces in Greece, Spain, Italy, Germany, the UK and elsewhere.
The objective necessities of the current phrase mean that habitual and customary methods can no longer be effective. All individuals and groups must recognize the need to alter their practice so as to contribute to a united front capable of implementing a recovery program.
To this end, we suggest that participants in this conference and other interested parties should form an informal coordinating committee for the exchange of ideas and information about how to proceed during the difficult months ahead