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Forum Post: ''Debt Forgiveness & Nationalization are the Answers to the US (& Global) COVID19 Economic Crisis!'' by Dr. Paul Craig Roberts

Posted 2 months ago on March 28, 2020, 1:07 a.m. EST by ImNotMe (1488)
This content is user submitted and not an official statement

''Debt Forgiveness & Nationalization Are the Answers to the Global Economic Crisis'' (mostly) by Dr. Paul Craig Roberts:

From which I excerpt & abridge, the following ...

''The US airline companies have bankrupted themselves by buying back their stock in an enrichment scheme for CEOs and board members. With the impact of the virus on their revenues, Congress is handing them a $50 billion bailout. Instead of being bailed out they should be nationalized.

''Nationalization is a four-letter word for many, but it actually offers a chance to correct for the decades of deregulation and concentration and thereby restore competition to the economy. Nationalized banks too-big-to-fail, for example, can later be broken up and the pieces sold back into private hands. Commercial banks can again be separated from investment banks, and concentrated financial power can be broken.

''Now that we know that markets are not self-regulating, we can restore sensible financial regulation and require banks to lend for productive purposes, not for financializing and leveraging existing assets. The US financial system has not served the productive side of the US economy for a long time.

''While ordinary heavily indebted Americans are losing their jobs right and left as businesses close, shopping center lobbyists are asking for a $1 trillion guarantee. The hotel industry wants $150 billion. The restaurant industry wants $145 billion. The National Association of Manufacturers wants $1.4 trillion

''Food service distributors are in trouble. Boeing wants $60 billion funded in part by loan guarantees. Local and state governments need support. The US conference of mayors wants $250 billion. The list is endless.

''And what is to be done for the 40% of Americans who, according to a Federal Reserve study, cannot raise $400 in cash without selling personal property? How are the large number of uninsured going to be cared for during this health crisis? Where will hospitals and medical practices get the money?

''The only solution is to nationalize health care so that the bills can be paid.

''The only solution for the economy is debt forgiveness for the ordinary people and nationalization for the companies. Trump indicated that aid might be given in the form of an equity stake, and later sell the government’s stake for a profit in a privatization when things return to normal. This would be a partial nationalization. Much better to go whole hog as it allows a cure for concentration and deregulation.

''The pandemic has made it clear that a society of self-seeking individuals is not a society. A society is a social system. A successful social system is one that can support its members. Once a self-sustaining social system exists, then there is a basis for people to branch out on their own. But without a sustainable social system, there can be nothing.

''To create a sustainable society in the United States requires the abandonment of dogmatic ways of thinking. Old ideologies are in the way. We and our leaders must think creatively if we are to successfully deal with the health and economic crisis.''

radix omnium malorum est cupiditas ergo, fiat justitia ruat caelum!

(love of money is the root of all evil therefore, let justice be done tho' the heavens fall!)<{cf. The Banks!!}>[Corporate & Dynastic!!!]


''Dr. Paul Craig Roberts .. was Assistant Secretary of the Treasury for Economic Policy in the first Reagan administration and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service and, Creators Syndicate. He has had many university appointments & his internet columns have attracted a worldwide following. Roberts' latest books are 'The Failure of Laissez Faire Capitalism' and 'Economic Dissolution of the West, How America Was Lost' and 'The Neoconservative Threat to World Order'.'' See his work here: https://www.paulcraigroberts.org/

[Article copied under "Fair Use" from: http://www.informationclearinghouse.info/54068.htm ]

26 Comments

26 Comments


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[-] 1 points by ImNotMe (1488) 2 months ago

We need COVID JUBILEE! More to follow but meanwhile this by Alison Krauss:

et veritas vos liberabit ...

[-] 1 points by ImNotMe (1488) 1 month ago

"$1,200 Only Goes So Far. It’s Time to Abolish Debt." ... by Nicholas Powers:

ad iudicium ...

[-] 1 points by ImNotMe (1488) 1 month ago

''Wall Street Wins Again With Bailouts in the Time of Coronavirus'', by the xcllnt Nomi Prins:

From which - "In the first week of coronavirus economic shock, a record 3.3 million Americans filed claims for unemployment. That figure was nearly three times the peak of the 2008 recession and it doubled to 6.6 million a week later, with future numbers expected to rise staggeringly higher.

"As sobering as those numbers were, Treasury Secretary Steve “Foreclosure King” Mnuchin branded them “not relevant.” Tone-deafness aside, the reality is that it will take months, once the impact of the coronavirus subsides, for many people to return to work.There will now be jobs and possibly even sub-sectors of the economy that won’t rematerialize.

"This cataclysm prompted Congress to pass the largest ever fiscal relief package in its history. But as necessary as it was, that massive spending bill was also a reminder that the urge to offer corporations mega-welfare not available to ordinary citizens remains a distinctly all-American phenomenon.''

radix omnia malorum est cupiditas!

[-] 1 points by ImNotMe (1488) 1 month ago

''Currently The Federal Reserve is Socializing Debt without writing it down. This is nonsensical as it bails out debt by expanding it.

''In the US there is so much dogmatic prejudice against anything that has a tint of socialism, even as a temporary expedient measure, that thought and sensible action face very strong barriers.If we can not overcome these barriers, we are destined for far more difficult times.'' - from:

respice; adspice; prospice ...

[-] 1 points by ImNotMe (1488) 1 month ago

''Capitalism Has Failed in Fighting Coronavirus'', by Prof. Richard D. Wolff:

''Workers are the majority in All capitalist societies; their interests are those of the majority. Employers are always a small minority; theirs are the ‘special interests’ of that minority but - Capitalism gives that minority the position, profits, and power to determine how the wider society as a whole lives or dies''!!!

multum in parvo ...

[-] 1 points by ImNotMe (1488) 1 month ago

'''Heads we win, tails you lose': how America's rich have turned pandemic into profit'' by Dominic Rushe and Mona Chalabi:

radix omnium malorum est cupiditas ...

[-] 1 points by ImNotMe (1488) 1 month ago

"Relief Is Funneled to the Wealthy. We Need a Financial Infrastructure Overhaul." ... by Alexis Goldstein:

ad iudicium?

[-] 1 points by ImNotMe (1488) 1 month ago

"The Red and the Black" - by Seth Ackerman:

Long. Deep. Exhausting. But Really Rewarding.

MULTUM in parvo!

[-] 1 points by ImNotMe (1488) 2 weeks ago

''Whistleblower - Wall Street Has Engaged in Widespread Manipulation of Mortgage Funds.''

''Securities that contain loans for properties like hotels and office buildings have inflated profits, the whistleblower claims. As the pandemic hammers the economy - that could increase the chances of another mortgage collapse.''

FK ME! HERE WE GO AGAIN!

[-] 1 points by ImNotMe (1488) 2 weeks ago

"Among the toxic contributors to the financial crisis of 2008, few caused as much havoc as mortgages with dodgy numbers and inflated values. Huge quantities of them were assembled into securities, that crashed and burned, damaging homeowners and investors alike. Afterwards - reforms were promised. Never again, regulators vowed - would real estate financiers be able to fudge numbers & threaten the entire economy.

"Twelve years later, there’s evidence something similar is happening again.

"Some of the world’s biggest banks — including Wells Fargo and Deutsche Bank — as well as other lenders have engaged in a systematic fraud that allowed them to award borrowers bigger loans than were supported by their true financials according to a previously unreported whistleblower complaint submitted to the Securities and Exchange Commission last year.

''Whereas the fraud during the last crisis was in residential mortgages .. the complaint claims this time it is happening in commercial properties like office buildings, apartment complexes and retail centers. The complaint focuses on the loans that are gathered into pools whose worth can exceed $1 billion & turned into bonds sold to investors, known as CMBS (for Commercial Mortgage-Backed Securities).

"Lenders and securities issuers have regularly altered financial data for commercial properties - “without justification,” the complaint asserts, in ways that make the properties appear more valuable & borrowers more creditworthy, than they actually are. As a result, it alleges, borrowers have qualified for commercial loans that they normally would not have ... with investors who bought securities birthed from those loans none the wiser." - from ...

SO YES ... "HERE WE GO AGAIN"!

respice; adspice; prospice!

[-] 1 points by beautifulworld (23233) 2 weeks ago

Using Covid to slash Social Security.

Unbelievable! How low can these mother f-kers go?

The Democrats want the documents released that show "...an internal State Department plan that reportedly proposes giving Americans direct cash payments in exchange for cuts to their Social Security benefits..."

From: https://www.commondreams.org/news/2020/05/18/house-democrats-demand-trump-state-department-turn-over-secret-plan-slash-social

"In this moment of crisis, when millions of Americans are struggling to make ends meet and fear for their retirement, we should be enhancing Social Security, not developing policies to reduce benefits," the lawmakers wrote. "The idea that you would ask individual Americans to sell out their hard-earned retirement security as the price of desperately-needed help during a crisis is unacceptable."

Unacceptable? No, it's criminal.

[-] 1 points by ImNotMe (1488) 1 week ago

"Never Waste A Good Crisis" is their dictum!!! Meanwhile, by Mara Dolan - this informative article ...

spero meliora!

[-] 1 points by ImNotMe (1488) 1 day ago

''From Trump to Johnson, Nationalists are on the rise – backed by Billionaire Oligarchs'' ... by George Monbiot:

''The Ultra-Rich are benefiting from Disaster Capitalism as institutions, rules and democratic oversight implode

"Today’s billionaires are the real citizens of nowhere. They fantasise - like the plutocrats in Ayn Rand’s terrible novel 'Atlas Shrugged', about further escape. Look at the new “seasteading” venture funded by PayPal’s founder, Peter Thiel ... that sought to build artificial islands in the middle of the ocean, whose citizens could enact a libertarian fantasy of escape from the state, its laws, regulations and taxes, and from organised labour. Scarcely a month goes by without a billionaire raising the prospect of - ''leaving the Earth altogether, and colonising space pods or other planets.

"Those whose identity is offshore seek only to travel farther offshore. To them - the nation state is both facilitator and encumbrance, source of wealth and imposer of tax, a pool of cheap labour and seething mass of ungrateful plebs, from whom they must flee, leaving all the wretched earthlings - to their well-deserved fate.

"Defending ourselves from oligarchy means taxing it to oblivion. It’s easy to get hooked up discussions about what tax level maximises the generation of revenue. There can be endless arguments about the Laffer Curve .. which purports to show where this level lies. But these discussions overlook something crucial: raising revenue is only one of the purposes of tax. Another is breaking the spiral of patrimonial wealth accumulation.

''Breaking this spiral is now a democratic necessity: otherwise the oligarchs, as we have seen, come to dominate national and international life. The spiral does not stop by itself - only government action can do it. This is one of the reasons why, during the 1940s, the top rate of income tax in the US rose to 94%, and in the UK to 98%. A truly fair society requires periodic corrections on this scale. But these days the steepest taxes would be better aimed at accumulated unearned wealth.''

radix omnium malorum est cupiditas ...

[-] 1 points by ImNotMe (1488) 2 months ago

''Gasping for Air, Gasping for Care ... so ... what does Global Health Justice look like?''

  • from ''Neoliberal Austerity and Private Health Care Has Worsened US Pandemic''-{excerpt} DemocracyNow!'s Amy Goodman - in conversation w/Gregg Gonsalves is assistant professor in epidemiology of microbial diseases at Yale School of Public Health;Amy Kapczynski is professor of law at Yale Law School and a co-founder of the Law and Political Economy blog. They are co-directors of the Global Health Justice Partnership.)

  • https://truthout.org/video/neoliberal-austerity-and-private-health-care-has-worsened-us-pandemic/ (Important Video & Transcript)

fiat justitia - ruat caelum!

[-] 1 points by elf3 (4135) 2 months ago

Well as PREDICTED Banks are already refusing to help people laid off due to covid. And they have only given people a three month deferment if they decide to (answer = no) stories on news already. So let the disgusting predatory buying bonanza and evictions begin. Are we going to take this America? We are the only industrialized nation that did not freeze loans. What is our government doing to us? Why are they doing this to this once great country? Selfish disgusting greed. Wall Street and our entire government is waging class war on every American. They want to see every American destitute so they can own moooar and mooooar and feel big and powerful. This land is their land.

[-] 1 points by ImNotMe (1488) 2 months ago

Time to ''Ignore The Bankers – the Trump economy is not worth more Corona Virus deaths'' ... by Robert Reich:

I excerpt this ''It may seem logical to weigh the threat to public health against the accumulating losses to the economy, and then at some point decide economic losses outweigh health risks. As Stephen Moore, who is advising the White House, warns, “You can not have a policy that says we’re going to save every human life at any cost, no matter how many trillions of dollars you’re talking about.”

''But this leaves out one big thing. The “trillions of dollars” of economic losses don’t exist on any balance sheet that can be tallied against human lives. An “economy” - is nothing but human beings. So it matters whose losses we’re talking about – whose losses of life, and whose losses of dollars.

“Look, you are going to lose a number of people to the flu,” - Trump said during a Fox News town hall on Tuesday. “But you’re going to lose more people by putting the country into a massive recession or depression.”

''Wrong. Recessions and depressions, do NOT themselves cause people to sicken or die. Their health is imperilled during such downturns .. if they don’t have enough money to eat, keep a roof over their heads and get needed medical care.''

ad iudicium?

[-] 1 points by beautifulworld (23233) 2 months ago

Debt collection continues despite pandemic. Sheer cruelty.

"I have no money." but debt collection continues during one of the most impactful economic events in American history.

https://www.theguardian.com/money/2020/mar/28/us-debt-collection-wage-garnishment-coronavirus

"One out of every six Americans has an unpaid medical bill on their credit report, amounting to $81bn in debt nationwide. Every year, about 530,000 Americans who file bankruptcy cite medical debt as a contributing factor."

“The garnishment came with no warning. You don’t know until your bank account is locked and your money is gone,”

“Unlike the rest of my bills that I can see, the debt collection agency doesn’t send you one. You can’t arrange to auto-pay and they don’t send anything showing what you paid. It’s like they are set up to make you fail. With the coronavirus they shouldn’t be allowed to harass and garnish bank accounts while Americans are in this crisis.”

How f-king sick is this? Collecting debt from people who have no money and no income during this pandemic, when people are more vulnerable than ever.

Better get the money back to the corporation! Who cares if an American citizen can feed his or her children! Sick!

[-] 1 points by ImNotMe (1488) 2 months ago

The ''CEOs, billionaires and advisers have the president’s ear & want people back to work. They are callous – and wrong!'' - from:

who like a few other previously establishment figures like Dr.PCR ... is honest enough to support Bernie. The stone cold truth is: Banks & Bankers are NOT enablers, they're a monopolistic cartel of utter crooks. Trickle Down Economics turned out to be b-s - as the truth is the total fkn opposite: Hoover Up Larceny!

multum in parvo ...

[-] 1 points by beautifulworld (23233) 1 month ago

Is Dr. Birx a twit? Or a sycophant?

Yesterday, during the Trump Press Briefing she refused to say that Georgia should not be opening up it's barber shops, nail salons, gyms and tattoo parlors.

https://nypost.com/2020/04/21/georgia-barbers-should-get-creative-to-safely-cut-hair-dr-birx/

"Small business workers in Georgia — including hair stylists — should get “creative” in order to safety operate when they are allowed to reopen on Friday, Dr. Deborah Birx said Tuesday.

Birx, a member of the White House’s coronavirus task force, was asked by a reporter at the daily press briefing how to practice proper social distancing in businesses where people are usually close together, like hair and nail salons.

“I don’t know how, but people are very creative,” Birx said.

“So if there’s a way that people can social distance, and do those things, then they can do those things.”

IS SHE SERIOUS?! I mean, does she not understand that people will travel out of Georgia to other states bringing COVID 19 with them?!

Stupid people, selfish people will get other people sick and they WILL DIE.

Friggin' madness that this woman is too afraid of Trump to say the truth. Scary times, folks.

[-] 1 points by ImNotMe (1488) 1 month ago

PCR: "Michael Hudson and I believe that an economic system that enriches the rentier class by converting as much of personal income as possible to the service of debt is an economic system that is dead in the water. One possible way out is a debt writedown in order to create some discretionary income. Keep in mind that when the replacement of offshored manufacturing jobs with Walmart jobs stopped US GDP growth, Federal Reserve Chairman Alan Greenspan subsituted growth in consumer debt for the missing income growth, and by this substitution created discretionary income by loading up the consumer with debt.

"That load is now full. We are in the unenviable position of having very high stock prices in an econony that has no growth potential. The high stock prices are the product of trillions of dollars injected into financial asset prices. If the reopening spreads the virus and produces a second wave that overwhelms the health care system on a broader basis, the economy could be shutdown again, or if kept open could be disrupted by widespread illness or reluctance to accept exposure to the virus. On the other hand, if the virus has run its course, or the threat was exaggerated, the existing stifling debt burden remains.

"The danger in the shouting and finger-pointing is that a sick economy will be blamed on the closedown, not on the debt burden. Reopening the economy does not make the debt burden disappear. Michael Hudson and I have tried to focus the public and policymakers on the real problem. So far we have been unsuccessful." - from:

As for Brix she's just another dumb puppet with degrees to prove it. Miller & Kushner are in charge now.

et veritas vos liberabit ...

[-] 0 points by grapes (5232) 1 month ago

She knows how to serve a flat-Earther ( here's a livestream view of Earth realizing Newton's dream of shooting around the Earth "like a cannonball" showing that the Earth's shaped more like an orb as the Bible had stated ) who knew how to block the viral assault coming after our Left Coast but wouldn't block it coming after Yankeedom from the opposite direction via Europe ( the shielded and less connected to the world "flyover country" will know soon what it means to be gloriously red as Seattle was doomed by Mao but saved by "a snake" of a Governor protecting that far-out { not the fart-out me-thane pounding-laundry } Washington.) Race might have something to do with the one-sided blindness. It's a lousy [¿Cyclop?] boxer who can only block a left hook but not a right hook unless it's playing against the one-armed bandit of a better casino owner ( every morning before the sunrise, a rooster which might crow is slaughtered and its blood is smeared onto the corners of the equipment to make it gloriously red in a purging ritual ).

Over-politicizing was what Nazi Germany, Soviet Union, and Maoist China all suffered from. All met their gloriously red demise. Some of our Red States itch to join them so we'll probably get more waves of this ( I estimated three months for the first wave; the second one should be a bit shorter due to some people having acquired immunity via infection and being survivors with fitter evolutionary behavior but the winter COVID-19 wave may synchronize with flu season causing an overrun of our healthcare system resulting in far more total casualties because the frontline workers won't even know what they will be dealing with due to the lack of testing and testing capacity { the U.S. has a vast population, only less than China and India, so testing its population en masse presents on a rather formidable scale but even the rather helpless starlings with "the herd mentality" can wisely retreat and at times fight back against the raptors if they know where and when to counterattack "Whereto, starlings, why? To the stars ( e.g. to visit a near-end-of-life red supergiant Betelgeuse, which is still cooking up the chemical-element ingredients such as C, N, and O, the star dust necessary for making new life possible as what had been done for us before in our ancient birthplace in the stars after the Big Bang )--for the universe has much hydrogen" and highly ionized oxygen, good for rocket propellents as well as drinking and life; when leaping over a big puddle in the schoolyard during recess, look to see whether one might splash the other kids around should one fall short; "look before you leap" to avoid "collateral damage" }; for each oscillation, we get a few more months of lockdown, essentially starting again near to but not at the beginning; from control theory, we want to achieve critical damping of the viral pandemic but not underdamp to allow many oscillations to develop ) if their borders are not largely impermeable.

I mentioned orange rind's pith as a possible decongestant because one may not have albuterol and a nebulizer on hand to improve the ease of breathing. One of COVID-19's symptoms is the shortness of breath which may thereby be alleviated. I hypothesize that the outer skin of the orange rind may have germicidal capability because that's the first defensive layer for the fruit to protect the seeds. "Be fruitful and multiply," so seediness must be protected by the "plants." The outer skin's potential effect of causing diarrhea may sometimes be useful for purging bad stuff ( SARS-CoV-2 viruses perhaps ) from the gastrointestinal tract which is in-body plumbing to be maintained in a similar way as other indoor plumbing: if it's clogged up by bad stuff, apply some cleaner, wait a while, flush with water, and coat with desired material. The pipes in the body are made of different material ( the gastrointestinal tract is a rather long winding tunnel with many bodily tissues surrounding it which may be harmed by the harsh cleaners--definitely no bleach, no Lysol(R), no hydrogen peroxide, no ¿alcohol?--despite having the U.S. Federal Reserve which may create virtually unbounded amount of credit out of thin air, some government revenue still depends upon the ethyl-alcohol excise taxes { ponder why New York, NY was nicknamed as the Big Apple--in the days before we had safe municipal drinking water, nearly everybody was drinking the old-time fermented apple juice called apple cider, not apple cider vinegar, due to apple cider's alcohol content killing many disease germs but alcohol interacts with medicines so beware of potential adverse side effects from drinking too much apple cider--it may still have too much fructose 《 fruct=fruit, ose=sugar 》 for diabetic people; upstate NY had many apple trees, sufficient to make much cider to supply "the [Big] City" } and won't I be profiled as a pre-muslim terrorist as Mom had already done with my nostrils pointing downwards if I should advise against drinking alcohol?, no lye, no ammonia, etc. should be ingested; I don't clean my skin { which is made of epithelial tissue, similar to the types of tissue lining the inner surface of the gastrointestinal tract } with these so I wouldn't use them to clean the linings of my gastrointestinal tract, either ) so the cleaner may be orange rind instead of lye. The body's fluid has salt in it so the flush water should be made isotonic by adding sufficient amount of table salt. After the flushing, coating the body's pipes with a good microbiome may be done by eating yogurt with live cultures ( such as Chobani(R) Greek yogurt { caution: it has higher calories but I like its thick smooth taste, a bit like sour cream, and I don't mind getting a bit more fat as I don't have an overly fat problem } or for the lactose-intolerant [non-mutant] people, a different variety of yogurt with low milk fat and no lactose《 lact=milk, ose=sugar 》). "Man is a machine," -- Leonardo da Vinci's breakthrough { albeit an extremely complex one with interlocked feedback loops [but a machine, nonetheless] }.

[-] 1 points by beautifulworld (23233) 2 months ago

Student Loans forbearance until September 30th. So, 6 months that you don't have to make a payment and no interest will accrue during that period.

BUT, when September 30th rolls along and you've been having trouble paying all your other bills, rent, car payments and insurance, etc, your student loan payment will be due again and your balance will be the same lousy amount it was 6 months ago.

What we need right now is a Student debt jubilee. Forgive the debt. Forgive part of the debt. Do something meaningful. There is no way after the economic harm caused by COVID 19 that people will suddenly be able to go back to making their huge and unjust student loan payments!

Bailing out corporations to the tune of 2 trillion dollars and handing out measly checks of $1200 to Americans is unfair, unjust and unsustainable.

[-] 1 points by ImNotMe (1488) 2 months ago

Is there ''A 'Brady Bond' solution for America’s Economic Crisis & Unpayable Corporate Debt''?

e tenebris, lux?

[-] 1 points by beautifulworld (23233) 1 month ago

On verge of a depression? I get that that is possible but how good is an economic system that can't pause for a month or two. Had we all just stayed home, and I mean, all of us, every single one, for 3 or 4 weeks we could be rid of this scourge.

That's what they did in New Zealand. But, if we have an economic system that is so friggin' fragile that it collapses after a few weeks of a shut down then perhaps we need a new way forward? We need an economic system that has some cushion n'est ce pas?

From Nouriel Roubini's COVID19 warnings http://www.informationclearinghouse.info/54069.htm

“So, right now, we are on the verge of something that could be worse than the great financial crisis, there are conditions under which we could get into another Greater Depression,” Roubini stated.

[-] 1 points by ImNotMe (1488) 1 month ago

''The economic fallout from the New Coronavirus Outbreak'' (4m video + Transcript)

More ''heads they win; tails U lose'' b-s .. from the greediest mthrfkrs in the history of greedy mthrfkrs!

Alors, "if we have an economic system that is so friggin' fragile that it collapses after a few weeks of a shut down then perhaps - we need a new way forward? We need an economic system that has some cushion n'est ce pas?" Oui!

e tenebris, lux?