Tuesday, September 30, 2008

The Bailout and What's Next

Dear Friend,

Yesterday marked a day that will go down in history, when Congressional Democrats and Republicans alike took on full responsibility to protect the interests of taxpaying Americans, and defeated the deceptive bail out bill, defying the dictates of the Administration, the House Majority Leadership, the House Minority Leadership and the special interests on Wall Street.

Obviously Congress must consider quickly another course. There are immediate issues which demand attention and responsible action by the Congress so that the taxpayers, their assets, and their futures are protected.

We MUST do something to protect millions of Americans whose homes, bank deposits, investments, and pensions are at risk in a financial system that has become seriously corrupted. We are told that we must stabilize markets in order for the people to be protected. I think we need to protect peoples' homes, bank deposits, investments, and pensions, to order to stabilize the market.

We cannot delay taking action. But the action must benefit all Americans, not just a privileged few. Otherwise, more plans will fail, and the financial security of everyone will be at risk.

The $700 billion bailout would have added to our existing unbearable load of national debt, trade deficits, and the cost of paying for the war. It would have been a disaster for the American public and the government for decades and maybe even centuries to come.

To be sure, there are many different reasons why people voted against the bailout. The legislation did not regard in any meaningful way the plight of millions of Americans who are about to lose their homes. It did nothing to strengthen existing regulatory structures or impose new ones at the Securities and Exchange Commission and the Federal Reserve in order to protect investors. There were no direct protections for bank depositors. There was nothing to stop further speculation, which is what brought us into this mess in the first place.

This was a bailout for some firms (and investors) on Wall Street, with the idea that in doing so there would be certain, unspecified, general benefits to the economy.

This is a perfect time to open a broader discussion about our financial system, especially our monetary system. Such a discussion is like searching for a needle in a haystack, and then, upon finding it, discussing its qualities at great length. Let me briefly describe the haystack instead.

Here is a very quick explanation of the $700 billion bailout within the context of the mechanics of our monetary and banking system:

The taxpayers loan money to the banks. But the taxpayers do not have the money. So we have to borrow it from the banks to give it back to the banks. But the banks do not have the money to loan to the government. So they create it into existence (through a mechanism called fractional reserve) and then loan it to us, at interest, so we can then give it back to them.

Confused?

This is the system. This is the standard mechanism used to expand the money supply on a daily basis not a special one designed only for the "$700 billion" transaction. People will explain this to you in many different ways, but this is what it comes down to.

The banks needed Congress' approval. Of course in this topsy turvy world, it is the banks which set the terms of the money they are borrowing from the taxpayers. And what do we get for this transaction? Long term debt enslavement of our country. We get to pay back to the banks trillions of dollars ($700 billion with compounded interest) and the banks give us their bad debt which they cull from everywhere in the world.

Who could turn down a deal like this? I did.

The globalization of the debt puts the United States in the position that in order to repay the money that we borrow from the banks (for the banks) we could be forced to accept International Monetary Fund dictates which involve cutting health, social security benefits and all other social spending in addition to reducing wages and exploiting our natural resources. This inevitably leads to a loss of economic, social and political freedom.

Under the failed $700 billion bailout plan, Wall Street's profits are Wall Street's profits and Wall Street's losses are the taxpayers' losses. Profits are capitalized. Losses are socialized.

We are at a teachable moment on matters of money and finance. In the coming days and weeks, I will share with you thoughts about what can be done to take us not just in a new direction, but in a new direction which is just.

Thank you,


Dennis
www.Kucinich.us
216-252-9000 877-933-6647

PS Watch the 47 minute 'Money as Debt' animated documentary in http://video.google.com/videoplay?docid=-9050474362583451279. This is a useful, though by no means definitive, introduction to the topic of debt and the monetary system. Let me know what you think.

Monday, September 29, 2008

Economic Recovery Plan being rushed with no alternatives

Congressman Dennis Kucinich says the massive bailout for Wall Street is being rushed by Congressional leaders with no opportunity to discuss alternatives that would help homeowners facing foreclosure and no adequate oversight or regulations.

Make Wall Street pay for its own mistakes

Congressman Kucinich tells "Democracy Now" anchor Amy Goodman, "We need to find a way to help Wall Street pay for its own problems ...stock transfer tax, cancellation of dividends...make the shareholders and the investors have to pay for the funny business that was going on Wall Street. Why make the taxpayers pay?''

Read more: DemocracyNow.org

Friday, September 26, 2008

KUCINICH'S MAIN STREET RECOVERY PLAN

Dear Friend,

While Wall Street and the Bush Administration try to blackmail Congress into a $700 billion bailout for corporations that have shown zero concern about the plight of the American people through the last decade, I have been working on a comprehensive alternative. Today, I am releasing a plan for economic recovery that will provide not only economic stimulus, but also fairness for everyday people on every "Main Street" in America. The plan is detailed below, and it will also be available on the campaign website www.kucinich.us.

Of course, this is a plan that has not only economic implications, but also moral and spiritual implications as well. The social, economic, and political divisions in our nation must be healed. We can make a new beginning, seizing this moment of crisis and transforming it into a moment of rebirth for our nation. I hope you will take the time to read it, consider it, and share it with your friends. I welcome your comments and your support.

More tomorrow.

Thank you,


Dennis
www.Kucinich.us
216-252-9000 877-933-6647

Kucinich’s Main Street Recovery Plan

1. Health Care for All: Insurance companies make money not providing health care. As the co-author of HR 676, a universal, single-payer, not-for-profit health care system, Medicare for All, I understand millions of Americans want health care that is accessible and affordable.

Medicare for All will help businesses large and small, create jobs as well as save the jobs of thousands of people including those of doctors, nurses and other healthcare workers who are currently leaving medicine because it is run by the insurance companies. $1 in every 3 dollars of the $2.4 trillion spent annually in America for health care goes to the insurance companies. If we take that money ($800 billion in unproductive wasteful spending) and put it directly into care, we will have enough money to cover everyone. We are already paying for Medicare for all, but not receiving it. HR 676 changes that!

2. Prescription Drug Benefit for Seniors: HR 6800 is the MEDS Act, which provides a fully paid prescription drug benefit, under Medicare, for all seniors. I wrote this bill to help alleviate the economic pressure that comes from the high cost of prescription drugs. We can pay for it by letting the government negotiate drug prices with the pharmaceutical companies as well as by permitting re-importation.

3. Stop the Oil Companies’ Price Gouging: As you know, I was the first one to step up to challenge of the corrupt price gouging and market speculation of the oil companies by proposing a windfall profits tax, on oil and natural gas companies, with revenues put into tax credits for the purchase of fuel-efficient American-made cars. However, it may be that nationalization is the only way to put an end to the oil companies' sharp practices.

4. Protecting the American Homestead: As Chairman of the Domestic Policy Oversight Subcommittee, I am working to protect your basic right to have a roof over your head, whether as an owner or renter. I have investigated and helped to expose the manipulation of mortgage markets, and I am crafting a new federal policy so that neighborhoods with the highest number of foreclosures get the most help.

5. Jobs for All: Congressman LaTourette and I have co-authored the bi-partisan New Deal-type jobs program, HR 3400, "Rebuilding America's Infrastructure." It will create millions of good-paying new jobs rebuilding our roads, bridges, water systems and sewer systems.

6. American Manufacturing Policy: I am drafting the American Manufacturing Policy Act, which for the first time, will state that the maintenance of U.S. steel, automotive, and aerospace industries are vital to our national economic security and must be maintained through integrated public-private cooperation, new trade policies, and investment.

7. Works Green Administration: I am also drafting plans for a green New Deal jobs program, in which the government creates millions of jobs by incentivizing the design, engineering, manufacturing, distribution and maintenance of millions of wind and solar micro-technologies for millions of homes and businesses, dramatically lowering energy costs and reducing our dependence on oil.

8. Fair Trade: The U.S. has lost millions of good-paying jobs, and more jobs have been out-sourced. As you know, I have helped to lead the way in opposition to trade giveaways. I strongly urge repeal of NAFTA. We must include workers' rights, human rights and environmental quality principles in all trade pacts. We must also protect the Great Lakes' water resources from the reach of multi-national corporations.

9. Education for All: I know families need help with the rising cost of day care. That is why I introduced HR 4060, a universal pre-kindergarten program to ensure that all children ages 3-5 have access to full-day, quality day care.

10. Protecting Pensions: I am working to change bankruptcy laws so pensioners' claims will be first, ahead of banks, and that corporate executives who misuse workers' pension funds are subject to criminal penalties. I want to fully fund the Pension Benefit Guarantee Board.

11. Social Security: From my first moments in Congress, I have exposed Wall Street's efforts to privatize Social Security and attacked it in the Democratic Caucus when it was being proposed. Can you imagine where seniors would be today if Social Security had been turned over to the stock market? Social Security is solid through 2032 without any changes.

12. Protect Bank Deposits: I will work to make sure the Federal Deposit Insurance Corporation (FDIC) has sufficient funds to provide for insurance of deposits up to $200,000 at all banks and savings and loans. This is an urgent matter since so many banks are said to be vulnerable.

13. Protect Investors: Bring back strong regulation to Wall Street. As Chairman of the Domestic Policy Subcommittee, I challenged the Wall Street hedge fund speculators as a threat to small investors. I intend to keep active watch over the machinations on Wall Street.

14. Strength through Peace: You'll remember when I led the effort against the ill-conceived Iraq war, which has now cost more than 4,100 US soldiers' lives, cost U.S. taxpayers between $3 trillion and $5 trillion, and resulted in the deaths of more than a million Iraqis. We must bring our troops home and end the war. We must engage in diplomacy. We must reduce the military budget, and we must stop outrageous cost overruns by the likes of Halliburton.

15. Safety in America: I am proud of my work for peace. In July 2001, I introduced a bill, which today is HR 808, that for the first time creates a comprehensive plan to deal with the issues of violence in American society, particularly domestic violence, spousal abuse, child abuse, gang violence, gun violence, racial violence, and violence against gays by establishing a Cabinet-level Department of Peace and Restorative Justice. This proposal has sparked a national movement and when implemented will save tax payers millions of dollars.

16. Monetary Policy: It is long past the time that we looked at the implications of our debt based monetary system, the privatization of money created by the 1913 Federal Reserve Act, the banks fractional reserve system and our debt-based economic system. Unless we have dramatic reform of monetary policy, the entire economic system will continue to accelerate wealth upwards. I am currently working on drafting legislation for an 'American Monetary Act' to address these and other issues in order to protect the economic wellbeing of America.

Tuesday, September 23, 2008

Protecting the public interest in any economic "bailout"

From kucinich.us

The U.S. government has been turned into an engine that accelerates the wealth upwards into the hands of a few. The Wall Street bailout, the Iraq War, military spending, tax cuts to the rich, and a for-profit health care system are all about the acceleration of wealth upwards. And now, the American people are about to pay the price of the collapse of the $513 trillion Ponzi scheme of derivatives. Yes, that’s half a quadrillion dollars. Our first trillion dollar compression bandage will hardly stem the hemorrhaging of an unsustainable Ponzi scheme built on debt "de-leverages."

Does anyone seriously think that our public and private debts of some $45 trillion will be paid? That the administration's growth of the federal debt from $5.6 trillion to $9.8 trillion while borrowing another trillion dollars from Social Security has nothing to do with this? Does anyone not see that when we spend nearly $16,000 for every family of four in our society for the military each year that we are heading over the cliff?

This is a debt crisis, not a credit crisis. Just as FDR had to save capitalism after Wall Street excesses, we have to re-invigorate our economy with real - not imaginary - growth. It does not address the never-ending war on the middle class.

The same corporate interests that profited from the closing of U.S. factories, the movement of millions of jobs out of America, the off-shoring of profits, the out-sourcing of workers, the crushing of pension funds, the knocking down of wages, the cancellation of health care benefits, the sub-prime lending are now rushing to Washington to get money to protect themselves.

The double standard is stunning: their profits are their profits, but their losses are our losses.

This bailout will not bring real jobs back to America. It will not bring back jobs that make things. It does not rebuild our schools, streets, neighborhoods, parks or bridges. The major product of this financial economy is now debt. Industrial capitalism has been destroyed.
In the next few days I will push for a plan that includes equity for every American in any taxpayer investment in this so-called bail-out plan. Since the bailout will cost each and every American about $2,300, I have proposed the creation of a United States Mutual Trust Fund, which will take control of $700 billion in stock assets, convert those assets to shares, and distribute $2,300 worth of shares to new individual savings accounts in the name of each and every American.
I will also insist that all of the following issues be considered in whatever Congress passes:

1. Reinstatement of the provisions of Glass-Steagall, which forbade speculation

2. Re-regulation of the finance, insurance, and real estate industries

3. Accountability on the part of those who took the companies down:
a) resignations of management
b) givebacks of executive compensation packages
c) limitations on executive compensation
d) admission by CEO's of what went wrong and how, prior to any government bailout

4. Demands for transparencey
a) with respect to analyzing the transactions which took the companies down
b) with respect to Treasury's dealings with the companies pre and post-bailout

5. An equity position for the taxpayers
a) some form of ownership of assets

6. Some credible formula for evaluating the price of the assets that the government is buying.

7. A sunset clause on the legislation

8. Full public disclosure by members of Congress of assets held, with possible conflicts put in blind trust.

9. A ban on political campaign contributions from officers of corporations receiving bailouts

10. A requirement that 2008 cycle candidates return political contributions to officers and representatives of corporations receiving bailouts

And, most importantly, some mechanism for direct assistance to homeowners saddled with unreasonable or unmanageable mortgages, as well as protection for renters who have lived up to their obligation but fall victim to financial tragedy when the property they live in undergoes foreclosure.

These are just some thoughts on the run. You will hear more from me tomorrow.



Dennis Kucinich

Tuesday, September 16, 2008

The Campaign of Lies and Smears Against Kucinich

Dear Friend,

Immigration and Healthcare are serious matters. That's why the Republican smear machine is going into overdrive to misrepresent the facts and mislead voters about Congressman Dennis Kucinich's record. Read this and know why this election is important for Ohio and America, and arm yourself with the facts to expose Republican falsehoods and fiction which are being circulated in printed literature in Ohio's 10th Congressional District.

FICTION: Republicans say "Kucinich voted against Children's Health Insurance Program (S-Chip) because it did not cover children of illegal immigrants."

FACT: Dennis stood up for the children of LEGAL immigrants. Dennis voted against one version of the S-CHIP bill specifically because it did not cover the children of LEGAL immigrants. He stood up and spoke out strongly to protect the health care of more than 400,000 children in America who were ignored and excluded from coverage in the bill. Dennis comes from Ohio's 10th District, a community of many immigrant peoples.

FICTION: Republicans say "Kucinich voted against prescription drugs benefits for seniors."

FACT: Dennis took on Big Pharma. Dennis voted against the notorious Medicare Part D which passed by a single vote and took cost controls off the big drug companies. He voted against giving them multi-billion dollar windfall profits.

FACT: Dennis Takes on the Insurance Companies. Dennis is the author of the MEDS Act which would provide senior citizens with a full prescription drug benefit, cost-free under Medicare. Dennis is also the co-author and the driving force nationally for HR 676, Medicare for All. It is a single-payer system that covers all medically necessary services for all Americans.

Currently, $2.4 trillion is spent each year for "health care." But 1 out of every 3 dollars ($800 billion annually) goes for the activities of the private insurance 'industry' such as corporate profits, stock options, executive salaries, advertising, marketing, cost of paperwork, etc.), rather than actual health care services. Dennis' bill, drafted with Congressman John Conyers, reallocates that wasted $800 billion to pay for medical care and services for people who need them.

These lies against Dennis on immigration and health care are coming from the very same person who, as chairman of the GOP in Ohio's largest county, collaborated with Ohio Secretary of State Ken Blackwell to suppress the Democratic vote in 2004, which enabled George Bush to win Ohio and the election! Now he is trying to suppress votes for Dennis by manipulating voters with a campaign of lies and smears.

Please contribute as generously as you can by going to www.Kucinich.us/contribute and help Dennis respond to these attacks.

You can also contribute by phone by calling our office toll free at (877) 933-6647.

Or, you can Or, you can mail a check with a completed contribution form.

Re-Elect Congressman Kucinich Committee
P.O. Box 110475
Cleveland, OH 44111

Thank you.

The Re-Elect Congressman Dennis Kucinich Committee
www.Kucinich.us
216-252-9000 877-933-6647

Save the date:

  • Sunday, October 12, 2008, Olmsted Twp - Annual Volunteer Picnic with Dennis and Elizabeth Kucinich and "Days of Our Lives" star Deidre Hall.
  • Wednesday, October 22, 2008, Cleveland - An evening with Dennis and Award winning musician and activist Melissa Etheridge.
  • Tuesday, September 9, 2008

    Republican Claims Million $ War Chest Against Kucinich

    Dennis Kucinich - www.Kucinich.us

    Republican Claims Million $ War Chest Against Kucinich

    Dear Friends,

    A few days ago, Republican Party operatives circulated literature in the neighborhoods of Cleveland claiming that my Republican opponent, the former GOP county chairman, "will have a million dollar war chest" to try to defeat me in November. That's an outcome that Republican party leaders boast will show "how the mighty Cuyahoga County GOP slew the dragon of liberalism in 2008."

    I need your help now to withstand this corporate neo-conservative onslaught.

    The same people who raised almost a million dollars to try to defeat me in the primary election are at it again in the general election. And these are exactly the same people who devised and directed the blatant voter suppression activities in 2004 that led to George Bush's victory in Ohio. That's when my opponent acknowledged to the New York Times that he was personally assembling an army of specially trained recruits to challenge "The organized left's efforts to, quote unquote, register voters - I call them ringers" and even challenge mentally disabled voters at the polls!

    The Republican candidate attacks me for saying George Bush should be impeached and for calling for a withdrawal from Iraq. He stands with the insurance companies on health care, the pharmaceutical companies on Medicare prescription drugs, the oil and coal companies on energy, the defense contractors on national security, and the neo-conservative wing on a host of social issues.

    It is true that I have led the effort for impeachment. I believe our very nation is at risk from a President and Vice President who have virtually shredded the Constitution. I have put forth three impeachment proposals to defend our civil liberties and our national honor. And, as you know, six years ago I led the effort to try to stop the Bush Administration from starting a war against Iraq.

    I want to return to Congress to continue my work for peace, for a not-for-profit health care system, for jobs for all, for education for all, and for sustainable energy systems. I want to restore our Constitutional rights!

    At this moment, it is not be possible to withstand a million dollar attack by these neo-conservatives. I need your help. Please contribute at www.kucinich.us now.

    Or send a check to:

    Re-Elect Congressman Kucinich Committee
    PO Box 110475
    Cleveland, OH 44111

    Or call (216) 252-9000; toll free, (877) 933-6647

    I need your help. Thank you for your continued support.


    Dennis J Kucinich
    www.Kucinich.us
    216-252-9000 877-933-6647
    please sign the petition

    please contribute now

    Paid for by the Re-Elect Congressman Kucinich Committee

    PO Box 110475 | Cleveland | OH | 44111 | 216-252-9000










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