Letter: Laurie Dobson disagrees with Feb. 15 letter writer (Printed Feb. 22, 2008)
Editor:
This letter is i n response to the accountant who wrote about my Feb. 8 letter in the Post, calling for a freeze on all foreclosures. To apply the accountant’s arguments, if we really let the ‘markets work’, as he proposes, the government would not bail out Wall Street through the ‘plunge protection team’, but let the markets crash. Isn’t that what the gurus of market forces dictate to their disciples: to let the unseen hand of the marketplace go to work, come what may, regardless of the consequences?
We’ve seen how well the deregulated and privatized Federal Reserve has worked under Alan Greenspan. Now, the corporate financier oligarchy is desperately manipulating the interest rates in a futile effort to stop the oncoming Bush Depression of 2008.
This feudal control of our monetary system does not respect or follow the Constitution’s proviso for the mandate of our government, which requires ethical and humane responsibility to provide for the general welfare, as specifically stipulated in the preamble.
The hides they want to save are their own, with their speculative swindling, not the people who will suffer in this hyper-inflationary period in a depressed economy. No: the people, in vastly increasing numbers, are the ones who will pay the price for these gluttonous policies and will get kicked out of their homes, and go to the devil, as far as these central bankers and corporate gougers are concerned.
Rather than accepting and enabling a crash we need real regulatory measures and oversight into speculation that is contributing to impossible increases and burdens on the people, such as the 40 percent rise of the cost of a gallon of gas, a tax that we have no say over, thanks to Bush’s energy policy. This is taxation without representation, which has no positive socially constructive return.
Hyperinflation has come on the heels of policies which were never intended to protect the people. The merciless motives behind their monetary policies are now glaringly apparent. We will see much more of this hurting of families and small business in Maine and across America.
I will not let families go out into the street and be blamed for their own culpability in this tragic and epidemic mortgage swindle. This foreclosure scheme was designed from the beginning to profit and protect the speculators and predatory lenders. The Bush government has been silently partnering with this scheme, in its complicity all this time, knowing that these would be the anticipated results.
No, the Federal Reserve is not as it should be-a federal bank- as the name implies. Instead, it is a private bank which essentially does what it wants in terms of the creation of money, a power that constitutionally belongs to Congress and the people of the United States. This must stop; the bank must return to control by the people. I will be a voice to return the Constitutionally mandated powers of Congress back to the people such that the government of the Untied States can once again ‘promote the general welfare’ as it says in the Preamble.
I am firmly against these massive ‘welfare checks’ being floated in terms of unregulated loans to the speculative gamblers. Instead we must invest in the real productive, physical economy, to help companies become stronger. Billions are bet every day on market fluctuations on money, mortgages, commodities, etc. causing inflation and an insatiable hunger for cash to keep raising the bets in a bubble that far exceeds the real assets of these trading houses and hedge funds.
Under normal circumstances they would never get the loan, would they?
Laurie Dobson
Kennebunkport
This letter is i n response to the accountant who wrote about my Feb. 8 letter in the Post, calling for a freeze on all foreclosures. To apply the accountant’s arguments, if we really let the ‘markets work’, as he proposes, the government would not bail out Wall Street through the ‘plunge protection team’, but let the markets crash. Isn’t that what the gurus of market forces dictate to their disciples: to let the unseen hand of the marketplace go to work, come what may, regardless of the consequences?
We’ve seen how well the deregulated and privatized Federal Reserve has worked under Alan Greenspan. Now, the corporate financier oligarchy is desperately manipulating the interest rates in a futile effort to stop the oncoming Bush Depression of 2008.
This feudal control of our monetary system does not respect or follow the Constitution’s proviso for the mandate of our government, which requires ethical and humane responsibility to provide for the general welfare, as specifically stipulated in the preamble.
The hides they want to save are their own, with their speculative swindling, not the people who will suffer in this hyper-inflationary period in a depressed economy. No: the people, in vastly increasing numbers, are the ones who will pay the price for these gluttonous policies and will get kicked out of their homes, and go to the devil, as far as these central bankers and corporate gougers are concerned.
Rather than accepting and enabling a crash we need real regulatory measures and oversight into speculation that is contributing to impossible increases and burdens on the people, such as the 40 percent rise of the cost of a gallon of gas, a tax that we have no say over, thanks to Bush’s energy policy. This is taxation without representation, which has no positive socially constructive return.
Hyperinflation has come on the heels of policies which were never intended to protect the people. The merciless motives behind their monetary policies are now glaringly apparent. We will see much more of this hurting of families and small business in Maine and across America.
I will not let families go out into the street and be blamed for their own culpability in this tragic and epidemic mortgage swindle. This foreclosure scheme was designed from the beginning to profit and protect the speculators and predatory lenders. The Bush government has been silently partnering with this scheme, in its complicity all this time, knowing that these would be the anticipated results.
No, the Federal Reserve is not as it should be-a federal bank- as the name implies. Instead, it is a private bank which essentially does what it wants in terms of the creation of money, a power that constitutionally belongs to Congress and the people of the United States. This must stop; the bank must return to control by the people. I will be a voice to return the Constitutionally mandated powers of Congress back to the people such that the government of the Untied States can once again ‘promote the general welfare’ as it says in the Preamble.
I am firmly against these massive ‘welfare checks’ being floated in terms of unregulated loans to the speculative gamblers. Instead we must invest in the real productive, physical economy, to help companies become stronger. Billions are bet every day on market fluctuations on money, mortgages, commodities, etc. causing inflation and an insatiable hunger for cash to keep raising the bets in a bubble that far exceeds the real assets of these trading houses and hedge funds.
Under normal circumstances they would never get the loan, would they?
Laurie Dobson
Kennebunkport
Some facts and research are in need here - A federal or national bank is intently not covered in the constitution in any way. The preamble doesn't count in this regard. The country spent from ~1800 until the ~1930's or so trying to figure how a national bank would work...conclusion: it doesn't, for many logical reasons. I would suggest picking up a text book on American Economic History, it is very interesting and would do well to explain why our current system is the way it is. Also, our country is simply NOT in a period of hyperinflation, as suggested. Hyperinflation, to give an example, occurred in the 1920's in Germany when it became literally cheaper to burn paper money than to burn wood - ie, an amount of wood gave less heat than simply burning the amount of money the wood cost. Yes this is an extreme example, but at present, I think we're okay. Ms. Dobson, your real concern should be taxes. More people could keep their homes and pay their debts if the gov't was not constantly taking a cut. More to the point, if payroll and similar state business taxes were lower, more business would come to maine = more jobs for people = more money for everybody. Research the Laffer Curve and the implications of government taxes, which by the way, are synonymous with 'services and regulation'.
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Senatorial candidate Laurie Dobson's call for the federalizing of the Federal Reserve is predicated upon returning to Congress it's Constitutionally mandated prerogative regarding the creation of money. Section 1, Article 8 states that Congress shall "coin Money, and regulate the Value thereof". Presently the Federal Reserve, a private bank, has hegemony over the creation of Money and the regulation of its value. Congress is not determining interest rates, the Fed is.
Not only is this unconstitutional but it is creating a hidden tax burden on American's through inflation. This inflation is due to the need to keep the various speculative bubble's afloat. Speculation accounts for 40% of the price of gas!
This money could be going into real investments, with tangible economic dividends rather than gambling on Wall Street. As America's infrastructure and it's public and private economic capabilities fall apart, the pressure on the middle class will continue. The writer is correct in stating that American's are being over taxed.
Dobson, in her economic program has sketched out the means whereby the elimination of the income tax for all making less than $125,000 a year can be accomplished, an must. Tax revenues must finally be levied on the greatest untaxed source of revenue in this society. Dobson's call for a Tobin Tax, would put a 1% tax on the sale speculative investment. This would yield over 5 trillion dollars per year. This money could then be used to help people and our society in meaningful ways, which the people have long demand and will finally have the means to secure.
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My understanding of this thus far, is that L.D. would like to give congress the powers of regulating the money supply and controlling the federal funds rate (currently the primary tools of the Fed, anything greater than this would require retooling of our entire system, which is simply not possible as it is based on freedom of the markets - people would not do it). With regard to the federal funds rate (or the cost of loans between from gov't to banks) - if congressional power is given over this it will give banks a direct incentive to lobby and fund officials with, literally, other peoples' money. I believe the independence of the fed is essential to creating a fair and incorruptible institution. As it stands the fed is a quasi-gov't agency in that is members are not elected but appointed, much like the supreme court. The fed has nothing to gain or lose from actions not in the best interest of the country. The same is not true of politicians - who have constituents (and funding givers) to answer to. If politicians control the money it will make the problems of inappropriate speculation, non-equitable dispersion of funds, and predatory banking/politics much worse. I believe the solutions to the current issues in our economy is MOST DEFINITELY NOT giving more power to congress...which has failed to achieve approval ratings above the 20's all year. what could be appropriate, concrete and discrete laws made by congress is an issue I could get behind.
The issue of whether or not the purse strings should be controlled by the gov't is a perennial one that has been around as long as the country and many configurations have been tried. To date, the quasi-government status of the fed has worked the best. We all agree we don't want politicians judging our courts, why would want them controlling our wallets? (anymore than they already do!)
Like in the judicial system- the politicians make laws and the non-elect court systems regulate them - the politicians make laws and the free market judges them. If the fed were wholly gov't that precious check and balance would be voided. I think.
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woops, just realized I was thinking of the discount rate as opposed to the federal funds rate - which is the rate the fed sets for commercial banks' nightly lending among themselves. Either way, my argument is not compromised in the least - the fed controls both and the same conflict of interest would arise. Sorry for the mistake, I was typing as I thought.
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As far as a Tobin tax is concerned, I would be willing to bet this won't happen. There is a reason why all the Euros and Canada passed legislation to enact such a tax **IF EVERYBODY ELSE DID**, as opposed to just doing it. Rather, (and this is just my humble opinion), I believe globalization is not only inevitable, but great. As more countries develop modern and specialized economies world currencies will converge, to eventually form something close to a global currency (like 100 years I'm talkin')
This is somewhat bad for us in the short term, but better for everyone in the long term. Moreover, when every country has lucrative economic relations with each other, wars will diminish - after all, you don't want to kill someone that is paying you...or owes you money!
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Well JohnQKennebunker might rather be know as his true identity as JQ-ONE-WORLD-ORDER man, with his intelligent sounding globalist banter that is presently castrating the productive powers of this nation, for the quick profits of the hedge funds and speculators in this post Bretton Woods era.
I am sure that JQ will be amongst the chorus demanding that the American public bail out the bankrupt banks as the hedge funds continue to crash. Of course 40% of every gallon of gas is due to speculation. This is a tax on everyone, but probably not JQ who is probably well off thanks.
The Federal Reserve of course is the one's that are feeding this hyper-inflationary frenzy to the detriment of the poor and middle class, and productive business, small and large.
What Laurie Dobson proposes is that which will deal with the crisis. Federalizing the Federal Reserve comes with dealing with the banking crisis as many banks will be failing. Banks must be kept open, but this speculative insanity must stop. As such the Federal Government has a responsibility to deal with the crisis, but not by enslaving people further into bailing out a corrupt and bankrupt system, but through meaningful reform where Congress
performs what is its Constitutionally mandated duty.
It is precisely the JQ Globalist who have been the corporatist who have bought Congress, pushing their free trade agenda that has opened the doors to the very speculative crisis the whole world faces.
So now more than ever we need to elect people like Laurie Dobson to the Senate who are not controlled by the corporatist/globalist elite. People who understand what is going on and as such are acting in a proactive manner for the greater good.
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