Daily Archives: June 4, 2014

Senator Elizabeth Warren – Bank on Students Emergency Loan Refinancing Act

Senator Elizabeth Warren talks about her new bill to let people refinance their older students loans to today’s lower rates.


The Fed created trillions of dollars out of thin air to bail out the banks, and it did not cause inflation. The Fed could do the same thing for students, and there would be no need to find funding in the budget to make up for what the government will lose by lowering the student loan interest rate.

Elizabeth Warren apparently does not understand that there is no need to compensate for the money forgone by the government from the lower rates. Perhaps if enough people tell her this, she will stop looking for cuts in the budget or increased taxes to make up for something that does not need to be made up for.

And the funny thing about the Fed creating money out of thin air and its relation to inflation, the Fed would like to create a little more inflation in the economy than we have now. With all the bank bailouts and all the quantitative easing, they have been having a heck of a time creating the inflation that they are trying to create. In other words, they can’t even do it when they try.

Why Don’t the Unemployed Get Off Their Couches?

Naked Capitalism has the article Why Don’t the Unemployed Get Off Their Couches? After you read the answer to this question, you come to the following bottom line:

The striking trend lines of social and economic disparity that have developed over the last 50 years are clearly no accident; nor have disemboweled unions, a deindustrialized America, wages heading for the basement (with profits still on the rise), and the widest gap between rich and poor since the slavery era been the work of the invisible hand. It seems far more likely that a remarkably small but powerful crew wanted it that way, knowing that a nation of fast food workers isn’t heading for the barricades any time soon. Think of it all as a kind of “Game of Thrones” played out over many years. A super-wealthy few have succeeded in defeating all of their rivals — unions, regulators, the media, honest politicians, environmentalists — and now are free to do as they wish.

What most likely lies ahead is not a series of satisfying American-style solutions to the economic problems of the 99%, but a boiling frog’s journey into a form of twenty-first-century feudalism in which a wealthy and powerful few live well off the labors of a vast mass of the working poor. Once upon a time, the original 99% percent, the serfs, worked for whatever their feudal lords allowed them to have. Now, Walmart “associates” do the same. Then, a few artisans lived slightly better, an economic step or two up the feudal ladder. Now, a technocratic class of programmers, teachers, and engineers with shrinking possibilities for upward mobility function similarly amid the declining middle class. Absent a change in America beyond my ability to imagine, that’s likely to be my future — and yours.

One of the questions answered in the article is:

6) Shouldn’t we cut public assistance and force people into the job market?

Cutting public assistance may actually be a way to change the fact, mentioned above in the bottom line, that “a nation of fast food workers isn’t heading for the barricades any time soon.” Somewhere there must be a limit to what the bottom 99% will peacefully suffer.  The oligarchs of this country seem bound and determined to find out what that limit is.