New Keynesian Economics

The global financial crisis has clearly illustrated that there is a serious vacuum of ideas on what to do next as a civilization. Majority of the public senses (on various levels) that key leaderships of many Western states do not offer much more beyond printing more money, socially brutal austerity, etc. Playing for time and looting are not solid ideas and everybody knows it. This inevitably opens up society to ideas from below which will eventually result in part of the elite siding with these ideas to co-opt them and ride them to power.
In United States, we saw the libertarian critique meme and the reactionary "going back to FDR policies" meme rapidly become dominant online over the last 2 years. Collapsist and neofeudalism memes are also about to become dominant. Collapsism in particular forces future oriented thought. The non-Internet world is quickly following behind since it took researchers a year or so to educate themselves about the fraud that caused the crisis, to put their books out, and then another few months for people to read the books. Various socially visible pundits can now defer to books as authoritative sources in speaking up. The market for new type of demagogy (talk radio being the old type) is nowhere near to being saturated.
This awakening resembles a sort of a popular front in the making since people from diverse ideological backgrounds are creating a consensus of what they are against (federal reserve corruption, military eating most resources, financial oligarchy and its personal lawyer/butler [US congress]). A marriage of convenience of this sort is usually created when all other options are exhausted and it will split into petty infighting once the current regime is changed.
All the accelerating muck racking and massive corruption exposures going on currently will begin to create a dissident critical mass in the near future. This is due to the gently exponential curve that is word of mouth communication and most importantly due to some elites sensing that popular sentiment now allows certain things to be safely discussed on a national level. Like in a jury herd dynamic, a minority of consistent and tireless individuals can swing the entire group whether at elite level, the level of a bar or church, or national level. The vacuum of workable ideas in leadership allows such informational waves to spread and take hold rapidly. It may have taken Christianity 300 years to become a dominant meme but with present communication technology, informational "viruses" can do the trick in just years.

Seinfeld Economics - Monetarism

One theory of inflation is called monetarism. This theory says that inflation is always present and that it is a monetary problem. This theory also says that the amount of money that exists will determine the amount of money that people spend. The idea is that the price of items will go up only if the supply of the items is lower than the demand for the items. The price of items will also go down if the demand for the items is higher than the supply of the items.
This theory also says that since the amount of spending is determined by the amount of money in circulation the demand for items can be determined by calculating the amount of money in existence. Because of this theory, one could assume that if the amount of money in circulation goes up so does the amount of spending and so does the demand for consumer goods. Using this theory, the only reason that prices would go up is if the amount of money in circulation goes up.
Another theory of inflation is called the rational expectations theory. This theory says that inflation has to be looked at as a long-term projection and not just due to the here and now. Although it is a lot like monetarism the rational expectations theory believes that the monetarism theory reacts too quickly to what is occurring now and that what happens down the road is more important. One reason that the rational expectations theory wants to avoid reacting too quickly to slight changes in inflation is that when people react too quickly they often cause drastic changes in inflation simply by trying to avoid them.
The Austrian theory of economics says that as people will spend more money as they get more money to spend. This is kind of a spend what you earn philosophy. The lifestyle and spending habits of people are equal to their disposable income. This theory is different from the others because it doesn't believe that the production of goods will increase in order to meet an increase in demand. This theory believes that these kinds of changes in the economy don't happen as quickly as some of the other theories believe they do. And this theory also believes that the distribution of goods and money will not always seek to achieve some sort of balance.

Business Cycles Explained: Monetarist Theory

Economics: New Keynesians versus Monetarists

Will President Barrack Obama's love affair with Keynesian economics bring us out of this mess?
During the 2008 Presidential campaign I was of the opinion that if McCain were to be elected that he would be blamed, by the general public, for every downturn in our country going forward, but if Obama were elected that he would get a free pass or at least the benefit of the doubt for quite a while because the general perception in America, with the help of mainstream media, would be that all of this is fallout from the "terrible and incompetent" Bush Administration. With this new completely partisan stimulus bill, which will be the largest expenditure in America's history, President Obama will sign away that free pass. He doesn't need Republican support for this bill to pass, but he wants it because if the boat sinks he doesn't want to be known as the one who single handedly pulled the plug.
Keynesian Economics
Keynesian economics is an economic theory coined by British economist John Maynard Keynes. I will give a very quick and very basic description of the general premise. Keynes believed that, during times of recession or depression, the government should step in and "prime the pump." The general idea is to borrow a massive amount of money and spend it. This is what Barrack Obama meant when he said "some say this is a spending bill; yes this is a spending bill; that's the whole point." In Keynes' theory you have three major bodies, The Government, the People, and the Economy. The idea is for the government to "deficit spend," the government would borrow money and put it in the hands of the people (ideally through social programs that would effectively increase the size of government.) The people would then pump the money back into the economy. Two obvious questions this raises to me is "what if the people put it under their mattress," and "Where does the money come from?" (If we are borrowing it from domestic sources, there is no new money being pumped into the economy, it is just being moved around. If the Federal reserve is just printing it, we all know what inflation will do. If we are borrowing it from China It's all up to the imagination as to what that means.) One of the major tenets of Keynes' theory is based on The Phillips Curve, which shows an adverse relationship between inflation and unemployment. If unemployment goes up, inflation goes down and vice versa. According to Keynes' theory, the two can never co-exist. Keynes' theories, according to many economists, were not only discredited but dis-proven in the 1970s when The United States was faced with very high unemployment and massive inflation. The occurrence was nicknamed "stagflation" because of the combination of stagnant growth and inflation.
In 1982, when the economy was worse than what we are seeing now, Ronald Reagan used the concepts of economists Arthur Laffer and Robert Mundell's supply side economics or "trickle down economics," by slashing the top marginal tax rate from over 70 to under 30%. Reagan also used Milton Friedman's Monetarism or a free market economy and also used basic principles of Keynesian economics (the spending being largely on defense which does not increase the size of government.) Reagan led the U.S. into one of the greatest periods of economic growth in it's history.
Keynesian Economics and The New Deal.
Its funny how there can be such drastic accounts of the same occurrence. You could conceivably line up a mile of Ph.D. Keynesian Economists that will tell you that The New Deal brought America out of the great depression. You could also find the same amount of Ph.D.s that will argue that The New Deal was the beginning of an irresponsible welfare state. Many Economists believe that the New Deal prolonged and deepened The Great Depression and that only World War II saved America from it.
I think the answer can be found in a direct quote from FDR's own Treasury Secretary Henry Morgenthau. "We are spending more money than we have ever spent before, and it does not work. I want to see this country prosperous. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises. I say after eight years of this administration, we have just as much unemployment as when we started and an enormous debt, to boot." -Henry Morgenthau, Treasury Secretary 1939.

Walmart hires Dan Bartlett, former George W. Bush spokesman, as executive VP

Walmart has announced the hiring of Dan Bartlett as executive vice president for corporate affairs.
Bartlett, who's been in PR, is best known as former spokesman for President George W. Bush. His work included pushing reporters to find out who sent Joseph Wilson to Niger (the famous incident that ultimately led to the outing of CIA agent Valerie Plame) and defending Bush against post-administration charges by a former aide, Scott McClellan, that the administration had been untruthful in the runup to the Iraq war and in the Plame matter.
He did speak bluntly and accurately on at least one occasion, as told in Wikipedia:

At the end of 2007 Bartlett, during an interview with Evan Smith published in the January '08 Texas Monthly, implied some conservative bloggers, such as Hugh Hewitt, were unfiltered mouthpieces for the GOP and Bush White House.

I mean, talk about a direct IV into the vein of your support. It’s a very efficient way to communicate. They regurgitate exactly and put up on their blogs what you said to them. It is something that we’ve cultivated and have really tried to put quite a bit of focus on.

Rush Limbaugh, Mr. Bartlett from Walmart is on the line.
He'll be moving to Northwest Arkansas, where he should feel right at home.
WALMART NEWS RELEASE
Dan Bartlett Joins Walmart as
Executive Vice President of Corporate Affairs

BENTONVILLE, Ark., May 22, 2013 — Today Walmart announced that Dan Bartlett, 41, will become the company’s new executive vice president of Corporate Affairs in late June. Bartlett was most recently president and CEO of the U.S. arm of Hill+Knowlton Strategies, a global business advisory firm serving corporations, non-profits and associations in 52 countries.

Bartlett will report to Mike Duke, Walmart’s president and CEO, and will serve as a member of the company’s executive council. His responsibilities will include oversight of external communications, government relations and sustainability, as well as the Walmart Foundation, which contributed more than $1 billion in cash and in-kind donations last year.

“Corporate Affairs plays a strong role in helping us meet our business objectives at Walmart,” said Mike Duke. “The team also helps us step up to the broader role we can play in meeting some of the biggest social challenges in the world today — issues like fighting hunger, job creation, sustainability, women’s economic empowerment and the availability of healthier food.”

Duke added, “Dan’s personal integrity, strong professional skills and broad understanding of world affairs make him the ideal leader to continue moving us forward. He has had key roles in government and at a major communications company. He has also counseled a wide range of multinational corporate clients in areas such as growth strategy, crisis management and public opinion. He is known for being straightforward, a good listener and collaborative — all traits that will serve him well at Walmart.”

“Growing up in a small Texas town, I've seen first-hand the opportunity Walmart provides and the positive impact it can have on local communities,” said Bartlett. “Now Walmart is in a unique position to make a difference in the lives of millions of people around the world. I am honored and excited to be part of that.”

At Hill+Knowlton, Bartlett helped lead the firm’s international growth and managed its day-to-day operations. He provided strategic counsel to the company’s largest accounts, which represent key industries, including finance, telecommunications and defense. He has also helped multinational companies and NGOs build and align their sustainability, public policy and philanthropic programs.

Prior to this, Bartlett was a senior counselor to President George W. Bush. In this role he was responsible for all aspects of the president’s strategic communications planning, formulation of policy and implementation of the president’s agenda. He also oversaw the White House press office and the Offices of Communications, Media Affairs and Speechwriting and Global Communications. Bartlett also played a key role in George W. Bush’s presidential and Texas gubernatorial campaigns.

Bartlett has a Bachelor of Arts in political science from the University of Texas at Austin and is currently an adjunct professor at the university’s Lyndon B. Johnson School of Public Affairs.

The Economic Crisis and the American Dream

The Economic Crisis and the American Dream

I do not know what is going on anymore.  I mean the reality we have to endure seems to be slipping in the cracks of the political intent.  I understand somewhat the intent of President Obama’s job bill, but will it fix anything or just allow us to travel down the road of disaster at a slower but steady pace?  We are on a road towards economic destruction and there may well be no turning back.

Are we about to repeat the same folly that caused the economic crisis in the first place or will we design a system of genuine change.  Is President Obama’s administration’s intelligence level over estimated? Is he really a very smart man or just another politician with smooth words and style.  If he is the intelligent man I came to believe he is, it is about time he showed me something.

President Obama needs to return to the grassroots that created him and come to the frontline and see real people in real time in real situations, then and only then will he get a grasp of reality about the economic situation Americans must endure.   He talks a good game, but I am sorry I am not feeling it.

You have to take it to the street Mr. President.   The American dream is dead.  The first law of nature is self preservation and people are starting to do whatever is necessary to survive.  Young parents are selling their body and souls to feed their children to people who have little more than them, meaning very cheap on the streets.  And if you go to a typical street corner 9 out of 10 of the people out there are selling drugs because they are starving.  So to eat they sell poison to their neighbors in the form of crack, dope and ecstasy.  As they themselves smoke marijuana to live with themselves.  That is reality!  The American Dream is Dead!

We no longer believe in the American dream, when the education of illiterate afghans supersede feeding Americans.  Are the afghans required to take drug tests or ship us heroin?  The American dream is dead Mr. President and reality is the matter of facts.  As we spend more money on the Pentagon to dominate militarily around the world, Americans are starving literally.  It isn’t right.

This jobs bill is a joke and will not be taken seriously in Washington.   Just because you can afford crack does not make it a good buy.  This is crack economics.  This is spending money simply to support a habit.  All it does is support a habit the government has called aimlessly spending and it is not a good idea, because it does not deal with any of the real issues that must be addressed.

People are afraid to invest their money because there is no foreseeable return on a new investment and those in business are simply trying not to lose it all and be forced to go out of business.  We need an incentive for investment at the small business level and not big corporate America.  I could create 10 jobs with under $50G.

There is no investment capital for the small businesses.  We at the NCNCHINC like many organizations are stalled due to no investment capital.  We have a building worth $125 that we cannot open due to a $10G roof, we have a restaurant we are welling to turn into a soup kitchen to feed the poor who are only getting poorer and cannot do it because we can not pass code inspections.  We cannot operate our businesses because of investment capital, because the banks are also holding on to their money.  So people who could invest are not because out of fear of losing their investment capital as well as the banks and this package does nothing to address these fears.

Fear has replaced the dream of America!  America does not need continued unemployment, we need jobs.  We do not need to just build infrastructure we need jobs.  What good is a new paved road and renovated schools when you cannot afford gas to drive your car or repairs to keep it on the road, while the mother of the children in schools gets sick from AIDS trying to make ends meet?  This is a joke and it is not funny at all!

The American Mentality needs an overhaul.  We legalize same sax marriage to prove what?  And in the name of Hollywood fixated love?  We are a sick nation about to fall.  We have oppressive drug laws for what, to punish?  Don’t tell me it is about the security of American Society, because it is another Hollywood lie.  Mr. President we are dying due to our sick mindset as a nation.

Unemployment benefits cannot fix this, it will only prolong the agony.   While you give me $200 you give a singer, baseball player and actor billions to fool us into believing in a lie called the American dream?    Children do not want to go to school they want to be baseball players and entertainers not because of reality but because it is the dream, they were sold and that is your problem.  They want to be drug dealers because they heard of Frank Lucas and saw American Gangster in the movies.  As Hollywood glorifies sicknesses and you allow it. It is so bad now that even the news is nothing more than entertainment and half lies and you wonder why this nation is about to be destroyed?

Mr. President and the United States Congress, please address the real issues, which will require many bills being passed from regulating Hollywood for the security of our nation, to putting money in the hands of small businesses to creating new laws and ordinances to allow businesses to operate. And please stop playing games.

Ecuador Celebrates Best Dark Chocolate in the World

Pacari Chocolate was started as a small, family owned company in 2000 by Santiago Peralta and Carla Barboto. The couple set out to build a business that was based on socially and environmentally sustainable principals to ensure that their products would support the well-being of the land and community they were a part of. They also sought to keep their core ingredient, the native Arriba Nacional cacao, from nature to consumption, as pure as possible and in so doing created the first single-origin, organic chocolate made entirely in Ecuador. (http://3dms-adult-sites.blogspot.com/)
Pacari now exports to 19 countries around the world and has been recognized by the leading dark chocolate authority, SeventyPercent.com as being one of the world's best dark chocolates.
Throughout their journey, Pacari has kept focus on their mission statement and commitment to their ecosystem. From growers to producers, the founders and the company at large are involved in every step of production, ensuring the healthy, ecologically conscious and consistent delivery of quality, organic products to their worldwide buyers.
Pacari Chocolate is a representation of the excellence achieved by many small and medium sized Ecuadorian companies. The growth in globally successful Ecuadorian exporters is in part a result of the outstanding efforts of the Government of Ecuador under President Rafael Correa’s Popular and Solidarity Economy, which has encouraged independent and mirco producers to band together as associations (called AEPYS or Actores de la Economia Popular y Solidaria). The collective or AEPYS, operating as a unified group, is able to meet and fulfill the market demand on a consistent basis, while maintaining the highest quality. AEPYS exist in all industries, with an emphasis on food, textile and agricultural products.
According to the National Assembly of Ecuador (Asamblea Nacional del Ecuador) in 2010, 48.9% of total employment was generated by enterprises with 1 to 10 employees; these micro and small enterprises generated 67.1% of total employment. Revenues from small business accounted for 27.7% of the gross domestic product.
"Pacari Chocolate is one of many outstanding, globally successful companies from Ecuador, " says Dick Vega, Trade Commissioner for Ecuador in Los Angeles, "at the Trade Commission of Ecuador in Los Angeles, our doors are always open. We invite companies and individuals to meet with us and explore the opportunities of doing business and investing in Ecuador. We are committed to helping find the right partners who will provide the best possible products and their successful, consistent delivery to market."
[Translation]["Pacari es una de las muchas destacadas empresas que se han colocado en el mercado internacional exitosamente." dice Dick Vega, Jefe Comercial de Ecuador en Los Angeles. " La oficina comercial del Ecuador mantiene las puertas abiertas a empresas y personas para que se reúnan con nosotros y exploren nuevas oportunidades para hacer negocios con Ecuador. Nuestro principal compromiso es ofrecer los mejores productos y su ingreso exitoso y constante de acuerdo al mercado."]
For interested parties, the Trade Commission of Ecuador in Los Angeles will be hosting Pacari Chocolate and several other outstanding Ecuadorian exporters this coming October. For an opportunity to meet with the Trade Commission, Exhibitors or to attend the product showcase, contact: ecuadortradelax(at)mmrree(dot)gov(dot)ec or Ecuador(at)ppmg(dot)info
For media inquiries contact: Popular Press Media Group (PPMG), +1-310-860-7774, media(at)ppmg(dot)info