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Bolstering Progressive Demand, Fed Chair Says More Stimulus Crucial to Avoid Economic Meltdown, Even More 'Unnecessary Hardship'

Originally published at http://www.commondreams.org/news/2020/10/06/bolstering-progressive-demand-fed-chair-says-more-stimulus-crucial-avoid-economic

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Trump just called off all stimulus talks until after the election.
~https://www.yahoo.com/money/coronavirus-stimulus-president-trump-rejects-democratic-offer-191702208.html

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Trump just tweeted that we should forget the stimulus until after the election (after he wins it), that announcement sinking the stock market. Like a spoiled child, he will take his marbles and go home if he does not get his way. Is all of this ultimately a good thing? Republicans lose elections across the United States as a consequence of their callousness?

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Nancy and Scumer just playing with us on any further family assistance.
They are wall street peekers along with Trump and republicans.
All is well for themselves and staffers.

Powell gains $9.00 for his banks and wall street for every dollar congress
donates to banks, wall street. Plus he is cya on another severe downturn
due to covid 19 second wave or another panic crash at financials.

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U3 is the official unemployment rate. U5 includes discouraged workers and all other marginally attached workers. U6 adds on those workers who are part-time purely for economic reasons. The current U6 unemployment rate as of September 2020 is 12.80.

12.8 is the unemployment rate which we should insist be reported, because it is the realistic whole rate, not the cherry-picked U3 rate which disguises the structural unemployment built into the U.S. political-economic system.

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A lot of ordinary people are sinking out of economic sight right now, too. All you have to do is take a stroll down your main avenue. If your local stretch looks like San Pablo Ave. out here in East Bay USA, there’s a lot of family-business dreams going up in smoke right now, failing in the face of a deadly global pandemic which has been allowed to run loose.

Ro Khanna tweeted that there’s more COVID-19 infection inside the White House than in New Zealand, South Korea, and Taiwan combined. After half a year of living in Germland, many lives in USA, folks just barely able to hang onto a place to work, a place to live, approach the precipice of ruin.

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And state layoffs in education and elsewhere are in the offing. The news is so devoted to the Kabuki drama playing out in Washington that it leaves out the economic collapse that surrounds us here in Michigan, too.

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Game over. Typhoid Trump has tanked the economy.

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no help is coming because the president is out of his mind on steroids
a recent study indicated that close to one third of Covid patients suffer some form of mental impact
his decision-making ability is even more compromised than usual
scary stuff

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Slightly off topic but in keeping with “economy”:

What continues to completely baffle me is the “housing boom” that I have witnessed first hand. I’ve given up trying to find a home closer to my family in an area where homes sell for over asking price ----usually within 24 hours.

There are many areas in the u.s. where this is happening.

New article today in good ole Bloomberg about said housing boom:

h-ttps://www.marketwatch.com/story/16-stocks-from-adobe-to-home-depot-to-zillow-to-help-you-tap-into-the-housing-boom-2020-10-06?mod=mw_latestnews

This has been going pre-covid and seems to have picked up during covid.

I’ve given up on trying to find builders/carpenters to help with projects in my home due to the loud (annoying) laughing in my ear when I ask if they can help me. “I’ve never been so busy in my life”, they say between laughter. Then they close with a “good luck check back with me in a few years”

And this----
Couldn’t get an (timely) appointment with my dermatologist to check a not so pleasant looking mole due to so many people getting botox and fillers. I am not kidding. I asked the receptionist why the dermatologist was so booked and she replied that she has never seen the demand for botox and fillers this high.

So yes, I will try to find a different dermatologist. But this is a thing with dermatologists and appointments. Didn’t think it would still be a thing given I read how many people are in financial distress and I know even if I wanted to fill/freeze my face I could not afford it.

Here is a link to an old story but apparently it is still the case (in my experience)
h-ttps://www.cbsnews.com/news/easier-to-get-botox-than-skin-cancer-test/

I guess people want to go out looking good? Botox/juvaderm (a filler) in the time of covid----what a species we are.

So. . . the point of these personal stories is the over the top mixed signs/stories I and others I know have seen regarding how people are faring.

It should be noted that the homes I am talking above about are not big, fancy homes–they are modest homes, some would call starter homes but I was hoping to find an ender home. (lol).

Curious if others have seen this and what this means . . . . (yes, I know the mortgage rates are low)

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It is good that the Fed is pressuring Congress to do the right thing. The historic pattern is that deficits don’t matter for the military industrial complex and the gang of capitalists that surround DC. Anyone paying attention during 2008 should realize that there is always plenty of money at the Federal level. For the Federal Government the deficit is a myth, a myth somewhat corrupted by the intrusion of private Banking into the creation of money, which should always be at the sole discretion of a sovereign State. Politicians and their Owners just want to keep that a secret for themselves as, year after year, the Fed plowed $29 trillion in liquidity into the hands of the “very people” that had created the global economic crisis through fraud. In 2008 the entire US GDP was $14.5 trillion. Those “very people” just happen to own our politicians, Clinton, Bush, Obama and now the Trump. The Orange Sloth now says no more money until you re-elect him!

Never forget, 2008 proves there is always plenty of money when its needed. It just needs to be used in a fair even handed way, instead of being the exclusive domain of the ruling class. The ruling class consists of all the people who buy enough influence in DC to write the law for their own benefit, like the Koch Bros.

We kill others while pretending to stand for their freedom and democracy. Yet we live in an Oligarchy.

~https://www.amazon.com/Deficit-Myth-Monetary-Peoples-Economy/dp/1541736184/ref=sr_1_1?dchild=1&keywords=the+deficit+myth&qid=1602017220&sr=8-1

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Wow! The Fed does have a heart.

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The collective failure of almost everyone in power to do even the most basic things really is staggering. I realize that decades of neoliberalism, corruption and being ideologically attached to neoliberal and right wing policies led us here, and I realize we were far more brutal to begin with relative to other countries, but it is still insane to witness how horrible, corrupt and inept the state is at everything but feeding parasites, even during a pandemic and an economic depression. This is the moment that revolutions were made for.

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Weeks to go, a covid madman on psycho drugs in the WH with the most dangerous organization in the world as enablers, America still has yet to reach bottom.

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The Trump campaign and the GOP have read the handwriting on the wall. They know they are going to lose, bigly. The plan now is to steal everything that isn’t nailed down, and if they can get a crowbar the stuff that is nailed down is in danger. Then pack it up under the cover of darkness, fill large white vans heading for the docks, then toss a Molotov cocktail over their shoulders on the way out of the White House.
We are about to go from smash and grab, to slash and burn. I suppose we should have seen that it was always going to end this way.
We are suckers, and losers.

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“Combined with the disproportionate effects of Covid-19 on communities of color, and the overwhelming burden of child care during quarantine and distance learning, which has fallen mostly on women,” Powell said, “the pandemic is further widening divides in wealth and economic mobility.”

Doubtless, some readers will think that Powell & the politicians he’s reporting this to are despairing over these facts. Hate to break it to you rubes: they’re toasting one another behind closed doors over how effectively they’ve transferred all this money to themselves.

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Commenting on the ‘system’ - and what makes it tick - is to swim into shark-infested waters while bleeding. But I’m feeling bold - so here goes:

The financial bubble before 2007/2008 was all about home equity, as I recall. Sub-prime mortgages, outlined in the book and the movie “The Big Short” (movie highly recommended ! )

How to put it ?

How many people buy their home outright - no loans ??

Interest rates are effectively zero now, fliting with going negative - a concept as hard to common sense as quantum mechanics.

But that’s our system. The system is self-propagating - they want to keep it - even if that means negative interest rates. And WE, we want - home prices to just keep going up - a form of magic.

But this might be a form of Ponzi scheme, or more prosaically - kicking the can down the road. Less prosaically, it is a form of externalization - as the debt - the federal debt - is ultimately the responsibility of we the people.

An amazing set-up, so they think. Ayn Rand and friends, social Darwinists and such, the Prosperity Church aficionados, there are others ~ Trump for example, and his entire family.

But there is a snag - addressed by Thomas Homer-Dixon, a complexity social scientist.

Perhaps an economist, @economagic, could fill in my sketch ??

================

Thomas Homer-Dixon’s “Commanding Hope” (2020)

"By far the most powerful set of worldviews, institutions, and technologies in our world today revolves around economic growth - a Janus-faced phenomenon that increases the well-being of many people the world over, but only at enormous cost to nature and risk to humanity’s long-term health and even survival. (p.186)

"But continued economic growth, at least at a scale resembling what we’ve known to date, is now fundamentally incompatible with the radically altered material world around us - a world of climate change, collapsing biodiversity, and dwindling natural resources. So the growth WIT [Worldview, Institutions, Technology] is going to have to change drastically - or it, and possibly we, will vanish. Either way, the results for our society are going to be wrenching. (p.187)

“An average real growth rate for the global economy of 3 percent annually generates a GWP [Gross World Product] of slightly over $900 trillion in today’s dollars by 2100. Even if we’re able to cut our carbon emissions per dollar of economic output by 80 percent, perhaps through heroic applications of new energy technologies, overall growth at the rate indicated will still double the world’s already extremely high emissions… In short, the environmental, and in turn political, damage that growth will cause will eventually halt economic growth.” (p. 187/88)
@Caroline

If some of you think this summary by Homer-Dixon sounds a lot like the Michael Moore documentary “Planet of the Humans”, that makes two of us, or is it three ?

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But the goal of Trump, his supporters, and most corporate Democrat types is to create more hardship for most of the many.

They want most of the population to “get by” on $13 per hour jobs, which have to be worked at for 60 hours per week for 51 weeks out of the year. Such “jobs” will have next to unusable medical coverage, no real sick leave, and nothing like employer provided 401K contributions.

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Heh BigB - we are just ordinary folk. Lincoln said something of the sort when asked about his homely appearance:

“The Lord prefers common-looking people . That is why he made so many of them .”

There is another quote I like, about fooling all of the people all of the time - which is an unlikely prospect.

We’ll catch on.

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not at all.
only looking out for banks, wall street.
not worried about individuals or families.

Heck, foreign owned banks with USA offices have fed attention.

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