Puget Sound Liberals Weekly Newsletter #232

Enhancing Freedom, Opportunity and Cooperation in Puget Sound and Beyond

Through informing and networking Liberals and Liberal Organizations.

 

Our vision is hundreds of thousands of well-informed Puget Sound Liberals working together.

 

          3500 members                                 June 25, 2010                   formerly Lake Hills Liberals                

 

 

 

 

                                                     

Our Website                                   Our  Editor                  To Unsubscribe

 

              Table of Contents      * Featured Articles

 

Opportunities

Petitions

 

Communication to Our Members

Thanks

 

Commentaries from Our Members

John Burbank: Reducing SS Isn’t Fiscally Responsible

Linda McVeigh: Washington Needs More Medicaid Funding

 

Liberals and Democrats Links to the Beef

Obama Replaces McChrystal with Petraeus

Fiscal Irresponsibility**

Wall Street Regulatory Reform*

Health Care Reform

Gay Rights

Congress Doesn’t Heed Public Opinion

Conservatives Criticize Obama for Holding BP Accountable*

Allowing Undocumented Children to Become Citizens

 

State and Local Links to the Beef

David Spring: I Can Win Against a Corporate Executive

Republicans Might Win Washington’s 3rd Congressional Seat

Help Gather I-1098 Signatures**

 

Nation and World Links to the Beef

Featured Advocacy Group: Public Campaign

Explaining the BP Oil Leak

Billionaires Challenge Others to Donate Their Wealth*

 

Our Liberal Spirit

Viewing a Glass as Half Full or Empty

 

Recommended Books

 

 

Our Political Values

 

Our Political Priorities

 

·       Fair Clean Elections and Open Government

·       Fair Taxes and Competent Spending

·       Investment for Productivity

·       Quality Health, Education, Jobs, Income

·       Environmental Protection and Energy Independence

·       Security and Equal Rights

·       Justice and Peace Everywhere

·       International Cooperation and Leadership

 

Conservatives oppose all of these

 

     Let’s End Our National Nightmare

 

         Let’s Restore Our American Dream

 

More on Conservative opposition to our American Dream

 

Washington State’s 5 Major Needs

·       Federal Funding for Health and Education

·       Public Campaign Financing

·       Substituting a Progressive Income Tax

·       Replacing Conservative Legislators

·       Stopping Corporate Abuse

 

Quote of the Week

Some people see a glass as half full.  Others see it as half empty.  George Carlin

 

 

 

 

 

 

 

 

 


Health Care Reform

Job Creation

Regulating Wall Street

Fiscal Responsibility

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calendar of Events

Saturday, June 26 at 6:30PM at Sharon and Will Creeden’s home (1661 Harbor Ave SW, #202, Seattle) - InspireSeattle Potluck and Discussion.  For more.

 

 

 

 

 

Calendars of Events                             

 

King County Democrats - LD Meetings            Some 2008 Legislature Lobby Days

Thurston County Progressive Net                  Western Washington Fellowship of Reconciliation

Alliance for Democracy                                Democratic Underground.Com                          

Sierra Club Cascade Chapter Calendar           Cool State Washington

Washington Public Campaigns Calendar          Town Hall Seattle Calendar

Washington State Labor Council                    Whatcom County Peace and Justice Calendar 

Conversation Cafe      Drinking Liberally          Seattle NOW          

Wallingford Neighbors for Peace and Justice – Friday Night Movies      Liberal films on PBS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Opportunities

About Puget Sound Liberals

Basic Training

Commentaries that have addressed major issues

Helpful websites

 

Obtain a free ‘Corporations Are Not People’ bumper sticker.

 

Petitions

Tell President Obama to strengthen the ban on whaling.

 

Communication To Our Members

 

Thanks to those of you who expressed regret that starting in July our newsletter will only be published every other week; but expressed appreciation for my excuse that caring for my left too little time.  Dave Thomas

 

Commentaries From Our Members

 

John Burbank: Reducing Social Security Isn’t Fiscally Responsible

 

The inside-the-beltway crowd is sneaking up on us again. You may have picked up on some news regarding the “National Commission on Fiscal Responsibility and Reform.” President Obama appointed this group of past and present political leaders to “propose recommendations that meaningfully improve the long-run fiscal outlook, including changes to address the growth of entitlement spending and the gap between the projected revenues and expenditures of the Federal Government.” In plain words, that means they are planning to cut Social Security benefits.

This amounts to bad timing and bad behavior. Let’s consider some facts. The standard formula for retirement security has been a combination of Social Security, pensions and savings. But that foundation no longer exists. While Social Security remains solid, the other two are either non-existent or crumbling. Savings have fallen to about 3 percent of personal income. Our 401(k) retirement accounts may be more aptly labeled 201(k) accounts — $100,000 in a 401(k) at retirement will get you about $600 a month. In this great and lasting recession, the collapse of savings and pensions means that more and more Americans, both employed and unemployed, will face poverty and insecurity as they age into retirement. Only one barrier stands between them and being flat broke. That is Social Security.

In our state, More than 1 million people receive Social Security benefits — more than 15 percent of our entire population, including nine out of ten people age 65 and older. In Snohomish County, 88,000 people receive benefits, including more than 61,000 retirees, 7,000 widows and widowers, 13,000 disabled workers and 5,500 children.

Thanks to Social Security, these people have a modicum of economic security. After all, you don’t get rich on Social Security, but you can keep your head above water. The average Social Security payment is a little more than $1,000 a month.

Keep in mind that these payments are earned. That is, workers pay into Social Security with every paycheck. In doing so, they get three insurance packages in one. If they are disabled, they receive disability insurance for the rest of their lives, and their spouses and children are also protected from the poorhouse. If they die, their spouses and children receive life insurance on a monthly basis. When they retire, they know they can count on a steady stream of checks from the Social Security system.

Those checks come from the $2.5 trillion Social Security Trust Fund. This money is wisely invested in Treasury bonds, still considered the safest investment in the world. It grows predictably over time. It’s been built up to make sure there is enough money to cover all retirees when my generation of baby boomers is fully retired.

Now would be an especially good time to increase Social Security benefits. This is not Wall Street’s money; it is the workers’ savings. If Social Security benefits were increased by $100 a month, the average benefit would increase by about 10 percent. That would be a good dividend, especially for the half of all retirees who depend on Social Security for four-fifths of their income.

But instead, the Fiscal Responsibility Commission seems to be intent on cutting Social Security benefits. They are considering ways to nickel-and-dime away the accounts of average citizens, under the guise of “fiscal responsibility.”

Here is a better idea: The commission should propose a financial transaction tax. This would curb the out-of-control speculation and gambling that brought down our economy. Peter DeFazio, an Oregon congressman, has introduced this tax with his bill, “Let Wall Street Pay for Wall Street’s Bailout Act of 2009.” The government would levy a quarter of a percent tax on financial transactions, exempting pension funds, mutual funds, education and health savings accounts and the first $100,000 of transactions annually. This tax would bring in about $150 billion a year from the speculators, forcing Wall Street to eventually pay back the almost trillion-dollar bailout we provided them in the past couple of years.

That would be the fiscally responsible thing to do. We would appreciate the trade-off — protect Social Security while taxing the speculators. But in this topsy-turvy world, who knows? We have yet to see if the president and his commission will listen to Main Street or Wall Street. Stay tuned.  John Burbank

 

Linda McVeigh: Washington Needs More Medicaid Funding

Published by Seattle Times on 6/20/2010

 

If federal funds to support increased demand for Medicaid are not made available to our state, it isn’t just legislators running for re-election who will suffer [“State shouldn’t bank on Medicaid money,” editorial, Opinion, June 13].

 

Sure, it will be difficult for legislators to cut $480 million from the state budget before elections. But it will be even more difficult for the working families who will suffer as a result of the budget cuts. Funding for health care and education likely will be slashed. Class sizes will grow. Community health clinics will close.

 

Lawmakers in our state have already cut nearly $4 billion from our state budget. If they have to make an additional $480 million in cuts, we’ll all suffer.  Linda McVeigh, Executive Director, Country Doctor Community Health Centers, Seattle

 

 

Liberals and Democrats

 

In his weekly radio address, President Obama criticized Republicans for obstructing jobs, home ownership, holding BP accountable and many nominees to administration posts.  As usual, President Obama has been super busy coping with a variety of challenges.

 

Apart from paying gulf residents damages, they should be hired for wetland and beach reclamation, thus replacing their lost employment and performing a vital service.  But President Obama has not mentioned such a possibility.  Nor has he indicated what carbon emissions regulations he favors.

 

Like Presidents Roosevelt and Reagan, President Obama can overcome a midterm slump to be re-elected.

 

Obama Replaces McChrystal with Petraeus

 

General Stanley McChrystal inappropriately criticized President Obama and other federal officials in remarks which were described in Rolling Stone magazine.  It is difficult to change horses in mid-stream.  But General David Petraeas (who will replace McChrystal) created and successfully implemented the counter insurgency strategy in Iraq which President Obama has chosen and McChrystal has been implementing.  So General David Petraeas is well qualified to continue the strategy.  In addition, Petraeas may bring more diplomatic skills than McChrystal to influencing Pakistan to decrease the flow of al-Qaeda and Taliban fighters into Afghanistan.  This is one event which may assist President’s reputation for firmness without rancor.  For more.

 

Fiscal Irresponsibility

 

Like President Obama, House Majority Leader Steny Hoyer refuses to consider raising taxes on Wall Street Speculators.  He suggests instead that it may be necessary to raise taxes on less wealthy main street Americans and to cut social security benefits.  For more.  For more.  For more.

 

Co-Chair of the National Commission on Fiscal Responsibility Alan Simpson seeks to undermine social security by not paying back money from trust fund used for tax breaks primarily for the wealthy.

 

House Financial Services Chairman Barney Frank (D-Mass.), along with a bipartisan task force that includes members of the Center for Arms Control and Non-Proliferation, Cato Institute, Center for Defense Information and others, announced the release today of a new report that identifies $960 billion in Pentagon budget savings that can be generated over the next ten years from realistic reductions in defense spending.  The report was produced by the Sustainable Defense Task Force, a group convened in response to a request from Rep. Frank to explore options for reducing the defense budget's contribution to the federal deficit without compromising the essential security of the United States.  For more.  For more.

 

Our deficits should be reduced by increasing income taxes upon our wealthiest people. 

 

Dean Baker notes that Social Security can be easily fixed without harming recipients.  To deal with deficits, we need to impose taxes upon Wall Street speculators.

 

A financial transactions tax will both raise money and discourage speculation.  It would raise a ton of money.  For more.

 

After World War II, deficits were run to invest, thus enabling our production to increase fast enough to render the deficits more manageable.

 

Wall Street Regulatory Reform

 

Wall Street Regulatory Reform will hopefully pass before the July 4th congressional recess.  But which regulations will be included are still being decided in the conference committee.  Wall Street lobbyists are strongly opposing regulations necessary to prevent future speculative bubbles.  Our treasury department is siding with Wall Street to oppose derivative reform.  Attempts to reform credit rating agency procedures are weakened.  For more.  Attempts are still being made to weaken ‘too big to fail’ mega-banks. 

 

Wall Street bankers resist regulations to inform stock owners of fees and risks.

 

Bought-off Democrats are opposing derivatives reform.

 

As of Thursday evening, the conference committee still has not indicated what they will decide concerning derivatives and other important reforms.  A full report should be possible next week.

 

Health Care Reform

Within the next few months, Health care reform will end some private insurer abuses.

Democrats are daring Republicans to try to repeal health care reform.  In spite of health care reform, abuses continue.  States can improve health care reform.

 

Gay Rights

 

President Obama is expanding the rights of gay workers by allowing them to take family and medical leave to care for sick or newborn children of same sex children.  For more.

 

Congress Doesn’t Heed Public Opinion

 

 

Conservatives Criticize Obama for Holding BP Accountable

 

Republican Congressman Joe Barton and other Conservatives have criticized President Obama for holding BP Accountable for damages resulting from its oil leak, thus revealing to all Americans that Conservatives believe corporations can do no wrong and government should just leave them alone. 

This is so at odds with American opinion that Conservatives that probably agree with Joe Barton have forced him to retract his statement, which he only half-heartedly did.  For more.  For more.  For more.  For more.  For more.

 

Allowing Undocumented Children to Become Citizens

 

Our congress is considering the DREAM Act which would allow high school graduates who entered the U.S. under the age of 16 to earn the right to become legal residents and eventually U.S. citizens, provided they have no criminal record and either go to college or serve in our military.  It would also remove federal restrictions on their eligibility for in-state tuition.  This would affect many of the 65,000 children of immigrant parents who graduate each year without U.S. legal status.

 

                  Here’s the Beef

Ten ways to start making change.

Fall Election May be Decided by Who Votes.

Conservatives accuse President Obama of being a Socialist.  Socialists deny that he is.

Some Republicans oppose forcing BP to pay those it has harmed.

Wow! A really strong criticism of President Obama’s oval office speech.

Senate considers, but doesn’t decide among three approaches to regulating green house gases.  The main argument is carbon caps or not.

Two labor board nominees are confirmed, but board still may be ineffective in protecting union rights.

 

State and Local

 

It Is Time to Stop Selling Elections to the Highest Bidder

 

Is it possible for an average person with no money to win a legislative race in Washington State? This year, we are going to find out. I am Democrat running against a 4-term Republican incumbent in a heavily Republican District. To make things even harder, I am also running against a wealthy corporate executive who claims to be a Democrat. At first glance, one might think I don’t stand a chance.

 

Of course, that is what the "political experts" said in 2008. I had no money and I had never ran for office before. I was simply a parent and a teacher who was upset about the fact that our school district was one of the lowest funded, most overcrowded school districts in the nation – even though homeowners in our school district pay some of the highest State taxes in the nation.

 

The political experts pointed out that the average challenger spends more than $200,000 to win a legislative race in our State. I had less than $25,000. They noted I was running in a heavily Republican district where Democratic challengers get only 40% of the vote – even when they spend $200,000! Just to make things even harder, well known Democrat incumbents actively campaigned against me in 2008. They were mad at me because I wanted millionaires and major corporations to pay their fair share of State taxes - and I had criticized Democratic party leaders for giving huge tax breaks to major corporations - money that should have gone to our schools.

 

Despite all of these obstacles, I ran one of the most competitive races in the State in 2008. In fact, I almost won! I got nearly 34,000 votes – the only competitive legislative race in our State in the past 20 years where a challenger has gotten more votes than dollars spent. In addition, I got 6,000 more votes than any Democratic legislative candidate in the history of the 5th District – making me the most popular Democratic legislative candidate ever in the 5th District. 

 

In 2010, the political experts are again claiming I don’t stand a chance. It is likely I will be out-spent at least ten to one. Once again, I am running against BOTH political parties. So what else is new? But here is why I will do even better in 2010 than I did in 2008:

1.      I am a parent and a teacher. The voters trust parents and teachers. Neither of my opponents is a parent or a teacher.

2.      My Republican opponent used to be a corporate lobbyist who advocated for deregulation of banks and oils companies. Deregulation turned out to be a very bad idea and the voters are pretty mad at big banks, oil companies and corporate lobbyists right now.

3.      My Democratic opponent made his money as a corporate executive for Accenture, formerly known as Arthur Anderson, the accounting firm responsible for the Enron scandal.

4.      The voters blame corporate lobbyists and corporate executives for our current economic mess. They also blame BOTH political parties. The voters are angry and they are looking for someone they can trust to go clean up the mess in Olympia. They know I will.

5.      The legislature cut another billion dollars from public schools in the past two years. The parents of East King County are as upset as I am about this. I am the only candidate who has offered a specific solution to the school funding problem.

6.      I have far better name recognition now than I did in 2008. The voters remember I am running to save our public schools, they know I nearly won in 2008, thousands of them already voted for me in 2008 - and they are planning on voting for me again.

7.      While I had one of the largest groups of volunteers in the State in 2008, I have even more now. Most are parents who are as committed as I am to fixing the school funding crisis.

 

I think I will win the Primary and the General Election this year. If I do, it will be one of the biggest political upsets in the history of our State. And it will send a strong message to other legislators that elections in our State are no longer for sale to the highest bidder. We parents are not going to put up with any more excuses. Either legislators will fund our schools - or they will be out of office!   David Spring M. Ed. Candidate for State House, 5th LD, Position 2

 

Republicans Might Win Washington’s 3rd Congressional Seat

 

Republicans may win the seat held by Brian Baird who is not running again.  But given his Conservative votes, not much would change for the worse.  Democrats would be one vote farther from being able to invoke cloture to stop filibusters.  But in the absence of the ability to stop filibusters, Democrats should primarily use reconciliation procedures to pass reforms by designing them to affect federal revenue.

 

Help Gather I-1098 Signatures

 

Dear Dave.  Good news. We have gathered 285,000 signatures. We are NOT done. Our goal is to gather 325,000 signatures.

Please return any signatures you have to the campaign as soon as possible. We will start verifying the signatures gathered so far this weekend.

Can you help gather signatures at the Seattle Pride events this weekend? If you can join us on Saturday for the Capitol Hill Pride Festival click here and if you can help work the parade lines on Sunday downtown click here.

Gathering signatures while people wait for parades to start is a really effective strategy. So join us Sunday morning at Westlake Park downtown. Gathering thousands of signatures this weekend will make sure we have a large cushion before we submit signatures to the Secretary of State before July 2nd.

Thank you for your work, Kelly Evans, Yes on 1098

 

Greetings Dave. 

 

Here is some info for letting your readers know about the pride festival this weekend and how they can help 1098.  "This weekend is the Pride Parade in Seattle. Gathering signatures as people wait for parades has been one of the most successfully tactics. People have nothing else to do, and when you tell one person about the initiative, usually 4 or 5 others are listening and many of them sign. 

 

The parade is Sunday morning and we will be meeting at Westlake Park (where the parade begins).  We will work the lines as the parade gets going. We will be organizing two shifts, one starting at 9 am and the second starting at 1 pm and we will meet at the Seattle Center at the Equal Rights Washington Tent.  You can sign up with the 1098 campaign here.  You can also call Erik at 360-510-9460 if you can't find us on Sunday.  Erik Magnuson, Erik@yeson1098.com

 

How would I-1098 affect Washington’s regressive tax system?

 

How would I-1098 affect the Business & Occupation tax for small businesses?

 

Here’s the Beef

 

Nation and World

 

Featured Advocacy Group

---------------------------------- Public Campaign ------------------------------------

 

Cooperating with other advocacy groups, Public Campaign advocates for fair elections based upon full public financing of political campaigns.  Assistant Senate Majority Leader Richard Durbin (D-Ill.) and Sen. Arlen Specter (D-Pa.) have introduced the Fair Elections Now Act (S.752) in the Senate, and Reps. John Larson (D-Conn.) and Walter Jones (R-N.C.) have done so in the House (H.R.1826) as well.

 

The Fair Elections Now Act would allow congressional candidates to run for office using only small donations and limited public financing. Candidates would qualify by raising a set number of small donations from members of their community, and agree to not raise any large contributions. Once qualified, they would receive limited public funds and would see their on-going small donations matched on a four-to-one basis.

 

The Fair Elections Now Act would allow federal candidates to spend more time focusing on the people they represent and addressing our nation's problems, rather than on raising money from wealthy donors and special interests.

 

To find our more, read "Breaking Free with Fair Elections" by Public Citizen. This publication makes the case for Congressional Fair Elections. Read about why the time is ripe; how the system works; the cost of the program; and the success of Clean Elections in the states.

 

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Explaining the BP Oil Leak

 

From 2005 through 2007, many books were published which described the Bush Administration’s deception, corruption and incompetence.  During the last several years, many books were published which described our housing-credit bubble, its collapse and how to prevent future bubbles.  I predict that the next wave of books will concern the reasons for the BP oil leak. 

 

The first thing to note is that both public and private organizations and individuals find it easy to put off spending to prevent catastrophes if they are viewed as rare.  Here in Washington, we are struggling with funding several major projects (Seattle viaduct and SR 520 bridge) which are vulnerable to collapse if an earthquake occurs.  Given other pressing needs for spending, we often view even fairly common catastrophes as rare.  This happened with prevention of the 9/11 terrorist attack, the housing-credit bubble and the BP oil leak.  Both BP and the Bush and Obama Administrations treated the possibility of a massive oil leak as extremely unlikely.  BP and other oil companies doing deep sea drilling prepared ridiculous defenses of the safety of their drilling.   As has been publicized, their defenses were essentially identical, referred to walruses in the Caribbean, and included other misinformation.  Yet these were accepted uncritically by both the Bush and Obama Administrations.

 

BP established a timetable for its drilling.  When various difficulties threatened to delay its drilling, shortcuts were taken which violated necessary precautions against an oil leak.  In particular, As built drawings were not updated in accordance with standard engineering practices.  The result was that it was difficult to identify problems and solutions for correcting the problems.  Without these precautions, the oil leak occurred.

 

Having not taken seriously the possibility of an oil leak, BP also did not have any effective ways to respond to one.  Since it occurred, a series of experiments have been conducted, which failed, except for the latest attempt which has had only limited success.

 

Faced with a massive public relations problem, BP has behaved deceptively.  It wouldn’t release workers from the oil platform until they signed a statement that they hadn’t been hurt.  It reported that the amount of oil leaking was much smaller it has been.  It reported many more people were attempting to clean the beaches than were doing so.  To indicate that the oil and dispersants would not harm people, it refused to allow beach cleaners to wear protective masks.  So similarly to what happened in the cleanup of the twin towers site, workers are suffering from exposure to caustic substances.  BP has tried to suppress visual images of damage to birds and other wildlife.  These deceptive practices were bound to fail, given the scrutiny that was sure to occur.  They indicate BP’s corporate mindset which puts its financial interest ahead of other concerns.

 

The Obama Administration has also failed to respond well to the oil leak, especially to the plight of the wetlands and beaches and the workers who depended upon them for seafood and tourists.  Besides making BP responsible for initial damages, BP should be held responsible for paying for a wetlands and beach reclamation and enhancement program which employs the now unemployed workers, paying them a fair wage.  Such a jobs program (which won’t add to the federal deficit) is much more important to the coastal communities than simply damage payments for continuing unemployment. 

 

Many suggestions have been made for reclaiming wetlands and beaches.  Two examples which I find intriguing are Louisiana Governor Jindal’s suggestion that Mississippi river water be diverted to push the oil back out of some of Louisiana’s wetlands and a suggestion that micro-organisms can consume the oil.  Both of these may have unintended consequences which render them harmful.  For example, fresh Mississippi river water would destroy oyster beds, unless it could somehow be rendered salty at the beds. 

 

The books to come should address these facts and others to become better understood.  Dave Thomas

 

Billionaires Challenge Others to Donate Their Wealth

 

I am very glad that Bill Gates and Warren Buffett are challenging other wealthy people to contribute their wealth to philanthropic causes.  I hope that many of them do so.  I think they would gain much more satisfaction doing this, than giving it all to the heirs.

 

But I think differently than many people.  I recently listed 16 major projects in which I have invested great amounts of time and efforts.  I only envisioned that three of them would produce modest amounts of money for me.  But they failed to do so.  All the others were done for personal satisfaction, often including satisfying social needs that I thought should be met.

 

I have accumulated lots of stuff cheaply that I thought might become useful, which I am now painfully giving away.  But I have never accumulated expensive stuff.  I have fantasized that I might have purchased Microsoft stock early, knew how to make big money speculating on the stock market, winning at the racetrack, or lotteries.  If I obtained big money in any of these ways, I wouldn’t want to retain it.  I would want to use it to further liberal causes.  I would want to be a Tim Eyman of the left, sponsoring liberal initiatives.  I would want to assist consistently liberal candidates to win legislative office at both state and federal levels.  I can imagine no greater satisfaction than that which the four large Colorado donors must have felt for enabling the turning of Colorado from very red to quite blue.

 

I hope at least some of our wealthy Washington people will adopt the vision of these Colorado donors.  I hope that other wealthy people will do the same in other states.  And that others will contribute their wealth to other worthwhile causes.  Dave Thomas

 

Here’s the Beef

14 workers die every day, due to employers ignoring safety precautions because penalties are minor cost.

Due to Turkey’s attempt to break Israel’s blockade of Gaza and unfavorable reactions to Israel’s murder Turks and others, Israel may relax it’s blockade.

Some Afghan villagers are fighting against Taliban.

 

Our Liberal Spirit

 

Viewing a Glass as Half Empty or Half Full

 

Our glass seems today to be both half empty and half full.  We need to focus upon making it more full. 

Many of our recent accomplishments - some of them historic - are far less than what we envision.  If President Obama and many Democrats don’t understand the extent to which we must create more far reaching reforms, we who do understand that they are needed must cooperate to force our understanding and appropriate actions based on our understanding upon President Obama and other Democrats.  For more.

 

When our freedoms and opportunities are less than are needed, we need to cooperate to extend them.  Consistent Liberals are increasing realizing this and organizing coalitions to act to force more reforms necessary to providing freedoms and opportunities to Main Street Americans.

 

Recommended Books – See our list of books for liberals

 

Joseph Stiglitz and Members of a UN Commission of Financial Experts, 2010, The Stiglitz Report.  Reforming the International Monetary and Financial Systems in the Wake of the Global Crisis

 

The Stiglitz Report recommends many of the same reforms that Nouriel Roubini recommended in his Crisis Economics which was described last week and is repeated below.  A major difference is that the Stiglitz Report emphases not only the prevention of speculative bubbles, but also alleviating global poverty, reducing global warming, and protecting our environment as necessary goals for a sustainable future.

 

Nouriel Roubini, 2010, Crisis Economics. A Crash Course in the Future of Finance

 

Nouriel Roubini was one of the few economists to predict the housing-credit bubble and its collapse.  He offers specific suggestions for stimulating the economy while preventing future speculative bubbles, including:

·       Changing compensation for traders and bankers to bring their interests in line with shareholders

·       Far greater transparency and standardization of securitization and regulation of its products

·       Under-the-table derivatives must be made transparent, put on central clearinghouses and exchanges and registered in databases, with their use restricted

·       Rating agencies must be paid by investors instead of by the institutions that issue the debt

·       ‘Too big to fail’ mega-banks and many less visible firms must be broken up into smaller banks.

·       Glass-Steagall banking legislation must be enacted, updated to apply to  shadow banks as well as banks

·       Regulation should be consolidated in fewer more powerful regulators, with better compensation for regulators

·       Central banks must proactively use monetary and credit policies to curb speculative bubbles

·       The IMF must be strengthened and given the power to supply the making of a new international reserve currency, with the emerging economies given more influence upon IMF policies

 

These suggestions are much more specific than suggestions made by those who still believe that speculation offers benefits.  They are also similar to those offered by Joe Stiglitz who also predicted the housing-credit bubble and its collapse.  I will comment next week on Joe Stiglitz’s suggestions.