William Black explains control fraud

William Black: How to rob a bank (from the inside, that is)

Control fraud is what happens when the people who control, typically a CEO, a seemingly legitimate entity, use it as a weapon to defraud – and these are the weapons of mass destruction in the financial world. …

…Fraud Recipe = “Sure Thing”
1. Grow like crazy
2. By making (buying) crappy loans at a premium yield
3. While employing extreme leverage
4. Providing trivial loss reserves

The Wall Street Journal Claims that only the “Left” is Willing to Prosecute Banksters

Prosecuting the banksters would unite, not divide, Americans.

This issue has nothing to do with “pitchforks” (President Obama’s blood libel of the American people as a crazed, murderous mob). It has everything to do with justice and restoring the rule of law in our Nation.

Prosecuting dishonest banks and bankers is not hostile to the financial industry. The opposite is true. When the officers that lead control frauds are not prosecuted their frauds often create a “Gresham’s” dynamic in which bad ethics drives good ethics out of the markets – and the professions that are supposed to serve the public in many public, nonprofit, and for-profit endeavors. Only effective regulation and prosecution can defeat such a Gresham’s dynamic. Effective regulation and prosecutions are essential to making it possible for honest businesses to succeed and “markets” to cease being not simply “inefficient” but cease being part of the fraud scheme.

This is a point of view that is only too rarely heard in our national discourse. Help us change that. Help us launch Real Fiscal Responsibility Today.

Marshall Auerback on the dirty little secret about unemployment

A Job should be a right not a privilege!

The reason why a lot of businesses don’t like it is the dirty little secret is that many of them prefer a pool of unemployed labor because they can use that as a sort of implied threat.

So how do we change that? How can we put the job gaurantee on the national agenda? By establishing a talk show that will put the people first. Help us do it.

Why we can’t have nice things

As Atrios suggests, there is always money for another war. There is always money for another prison. There is always money for additional surveillance. But somehow when it comes to disaster recovery, education, healthcare, or even transportation, all of a sudden we start hearing about the deficit. All of a sudden we start hearing about how we need to get our budget under control.

It is nonsense of course. But it is not enough to say that. The myth of austerity needs to be systematically exposed. We need a venue. We need a talk show. Help us make that happen.

Deficit fearmongering exposed

New Economic Perspectives on the Government Budget, Deficits, and the National Debt

The featured speakers, in order of appearance:

Professor, Economics, University of Missouri-Kansas City
Senior Scholar, Levy Economics Institute
Author, Understanding Modern Money, Modern Money Theory


Professor, Economics, and Chair of the Department of Economics, University of Missouri-Kansas City


President, financial services firm Valance Co. Inc.
Author, Soft Currency Economics, The Seven Deadly Innocent Frauds of Economic Policy


For More Information:

University of Missouiti-Kansas City, Economics Blog:
New Economic Perspectives


The Modern Money Network


If we are to expose deficit fear mongering we need a venue. We need a talk show where we can pound away at the lies of austerity. We need Real Fiscal Responsibility Today. Be part of it.

Marshall Auerback on the job guarantee

Time For A New Approach On Unemployment: Government As Employer Of Last Resort

To all of the chicken-littles (including the President and Prime Minister Harper) who fret about “excessive” government spending, we would simply point out that it is far better to deploy government spending in a way which REDUCES unemployment, rather than arises as a consequence of it. We therefore suggest a new approach: Government as Employer of Last Resort (ELR) or a Job Guarantee program. The. Government can proceed directly to zero unemployment by hiring all of the labor that cannot find private sector employment. Furthermore, by fixing the wage paid under this JG program at a level that does not disrupt existing labor markets, i.e., a wage level close to the existing minimum wage, substantive price stability can be expected. Other benefits could be provided, including vacation and sick leave, and contributions to Social Security and, most importantly, health care benefits, providing scope for a bottom up reform of the current patchwork health care system. …

… The JG program would allow for the elimination of many existing government welfare payments for anyone not specifically targeted for exemption, and would command greater political legitimacy, as society places a high value on work as the means through which individuals earn a livelihood. Minimum wage legislation would no longer be needed as it would be established via the JG. Labor would welcome the safety net of a guaranteed job, and business would recognize the benefit of a pool of available “shovel ready” labour it could draw from at some spread to the government wage paid to JG employees. The private sector would be drawing from a stock of still working people, whose skills have not been eroded by long term unemployment.

Additionally, the guaranteed public service job would be a counter-cyclical influence, automatically increasing government employment and spending as jobs were lost in the private sector, and decreasing government jobs and spending as the private sector expanded. It would therefore remain a permanent feature of our economy, in effect acting as a buffer stock to put a floor under unemployment, whilst maintaining price stability whereby government offers a fixed wage which does not “outbid” the private sector, but simply creates a stabilizing floor and thereby prevents deflation.

This is the kind of englightened thinking that can’t get a hearing in our current news media. It is to provide a venue for ideas such as the job guarantee that we decided to launch Real Fiscal Responsibility Today. Marshall Auerback is the kind of guest we would invite to appear on our show. The American people deserve to hear this sort of commentary and we will provide it. Be part of it. Help us launch Real Fiscal Responsiblity Today.

Real Fiscal Responsibility Today generates online buzz

Since launching our indiegogo campaign we have had many exciting developments. We have been delighted by the support we have recieved from economics blogosphere. Many bloggers have linked either to our indiegogo campaign page or Joe’s post. We have had links from Naked CapitalismThe Money ChronicleWarren MoslerMike NormanSteve’s Politics BlogMoney4nothingchicks4free, and Justice United,

The online buzz combined with the contributions of our early donors has caught the eye of people in the talk industry. We have had one inquiry from someone with Wall Street connections. We are talking with many people who have expressed and interest.

Spread the good news, Real Fiscal Responsiblity Today is on its way!

Stephanie Kelton explains why the gov’ts surplus is your deficit

This is the sort of clear explanaiton that completely destroys austerity talking points. This is the sort of clear economic commentary you almost never hear on talk shows.

That is why we have decided to create our own talk show, so that people like Stephane Kelton and other reality oriented commentators will have a venue. Please help us launch Real Fiscal Responsibility Today.

Reorienting fiscal policy, a bottom-up approach

Pavlina Tcherneva – Bottom Up Fiscal Policy: Direct Employment of the Unemployed

To cure unemployment, mostly we prime the pump: we devise fiscal strategies on the presumption that jobs follow economic growth. But the strategies have not worked, unemployment remains high. That is why Pavlina Tcherneva studies policies that target the unemployed directly. She says that the government can reduce income inequality and restart the growth engine by putting people back to work. In other words, growth follows jobs. Investigating different models of fiscal policy — this is new economic thinking.

When was the last time you turned on your TV and saw an economist who took full employment as the central organizing principle of their work? Wouldn’t it be great if we had a program that regularly feartured economists who regarded full employment not as a pie-in-the-sky dream, but a necessary policy?

This is an example of the sort of work we plan to feature on Real Fiscal Responsibility Today. Help us make it happen.