Alternative Visions

Alternative Visions - INFLATION—Causes & Future Prospects

Dr. Rasmus addresses the big topic of the week: accelerating inflation now rising 6.2% according to the latest CPI report and fastest in 30 yrs. Rasmus explains why the 6.2% is actually a low estimate. The multiple causes driving it today are explained: global supply chains breakdown, US domestic supply problems, price gouging by US companies with excessive market power, consumer demand, and the role of global financial commodities speculators. Why the latter is driving global crude oil prices to 2008 levels once again and spilling over to US economy as major factor in US domestic inflation.  Rasmus explains why the mostly supply side and commodities speculator driven forces will continue for some time well into 2022. How inflation will slow the US economic recovery as it surges. And why a new causal element driving inflation is now appearing: inflationary expectations. Inflation + slowing economy + no government further stimulus = political wipe-out of Democrats in 2022 midterm elections.

That ‘Other Bailout’: The Fed’s $5T Pre-Bailout of Banks & Investors Continues

Dr. Rasmus explains how the Federal Reserve has provided $5T in free money to banks and private investors during the Covid recession, when they didn’t need it. That’s $120B every month. The Fed this past week reduced that to…$105B a month. How the monetary system works to subsidize financial markets, bankers, and investors. Why mainstream media avoids explaining this. Meanwhile, progressive democrats reaching their ‘endgame’ in passing the Infrastructure and Reconciliation bills in the US House. How Pelosi is maneuvering them to a final passage of the Infrastructure bill only is explained. Last month’s Employment and Jobs report out today is also dissected to show it reflects a weakening economic rebound—and not the hype presented by the media

Alternative Visions - The Billionaires Tax & 3rd Quarter US GDP

 Dr. Rasmus dissects & debunks the new billionaires taxes coming out of Democrat Congressional Finance committees. How billionaires like Elon Musk and others will easily avoid paying the tax the way it is being formulated. Why the individual billionaires tax will likely be tied up in courts for years. Rasmus gives a short history of the passage of the Income tax in 1913 and explains why a constitutional amendment will probably be necessary to approve a billionaires tax which is based on wealth accumulation, not income. How billionaires would easily avoid the tax even if approved by the US Supreme Court. The companion proposal in Congress to tax corporations that make $1 billion in profits with an Alternative 15% corporate tax is also debunked. Why the Democrats are raising both new proposals, as they slash the Build Back Better bill and drop real tax hikes previously proposed in order to placate Senators Manchin & Sinema. Rasmus predicts the progressive caucus in the House will soon capitulate to the much reduced $1.5T Build Back Better bill that remains. Concluding the show, US 3^rd Quarter GDP data just released in analysed, which shows a significant slowing of the US economy growth for various reasons. (Note: Read Dr. Rasmus’ latest blogpost, “The ‘Smoke & Mirrors’ Billionaires Tax” at his blog, http://jackrasmus.com. )

Alternative Visions - Biden’s Town Hall + China’s Property Bubble

The show leads with a critique of Biden’s town hall meeting last night on CNN and concludes with a discussion of what’s happening in China with its property markets bubble and coming defaults. The Biden town hall reveals the failing strategy of the Biden administration with regard to passing much needed fiscal social programs, climate change investments, jobs, and now accelerating inflation. Biden reveals what’s really behind the negotiations with Manchin and Sinema. Dr. Rasmus next discusses the causes behind the current supply driven inflation and predicts prices will continue rising well into 2022. And the US economy will continue slowing in the closing months of 2021. Stagflation (both inflation and weak jobs recovery) is the condition of the moment. Dr. Rasmus warns events in China’s property markets, with defaults at Evergrande and other developers, now inevitable, bear close watch. Is what’s happening in China housing the beginning of the next ‘subprime mortgage’-like global financial crisis?

Alternative Visions - The Great Strike of 2021 + Inflation Wave

Dr. Rasmus discusses his article, published last Monday, ‘The Great Strike of 2021’. Why are 5 million US workers not returning to work? Rasmus explains why and how they’re coping ‘withholding their labor’ as the economy reopens. It’s a strike wave of the lowest paid and most abused US workers. Signs their strike example may be spilling over to union workers now striking as well. Rasmus compares the 2021 strike wave with the last strike waves of 1970-71 and 1945-46. (Check out his blog, http://jackrasmus.com for recent articles on the subject).  In the second half of the show the current escalation of inflation is discussed. Why Biden’s recent measures to put LA ports on 24/7 work schedule will not have much affect. Why the capitalist global supply chain is in chaos and why supply-driven inflation will not be temporary but continue well into 2022. Rasmus explains ‘stagflation’ likely coming, as US GDP and economic recovery is faltering 3^rd quarter 2021 while inflation continues to escalate.

Alternative Visions - What’s Behind 3 Announcements: Debt Ceiling, September Jobs & Global 15% Minimum Corporate Tax

Dr. Rasmus takes on three important economic announcements in past 2 days to explain what’s behind the hype. Is the Debt Ceiling really an issue? Why not. So why is hyped in the media and in Congress that it is? What is history of US deficits & debt run up from 2000 to 2020. What does debt & debt ceiling have to do with ensuring US economic empire? Next: the just released jobs report for Sept and why recall of pandemic jobs has now ‘hit a wall’. Real reasons why US workers not returning to work. Is this the ‘great strike of 2021’? Next: What’s happening to Biden’s Build Back Better bill and why is it going to be cut from $3.5T to less than $2T? Next: Announcement of global minimum 15% corporate tax agreement. Why US Senate will use it to cut domestic US corporate taxes next year from Biden’s proposed 26%.

 

 

 

 

 

Alternative Visions - Fiscal Faction Fights in Democratic Party

 Dr. Rasmus describes this past week’s latest maneuvers within the Democratic party with regard to the Infrastructure, Reconciliation & Debt Ceiling bills. Pelosi’s reneging on agreements with the party’s progressives this past week and what it means. Rasmus explains the evolution of Progressives’ positions since last March, agreements made this past July, and why Pelosi has decided on separate votes for Infrastructure and Reconciliation bills. Why the debt ceiling, passed yesterday, was never an issue and why the US can never default on its bonds. The party’s corporate wing strategy to pass Infrastructure and slash Reconciliation. Manchin’s ‘secret memo’ of July and positions. Likely scenarios ahead by Pelosi-Schumer to pass the Infrastructure bill and reconstitute the Reconciliation bill. Why progressives will get outmaneuvered again. The lack of additional economic stimulus amid the slowing of the US economy. The show concludes with comments about the continuing problem of Evergrande to the global capitalist financial economy.

Alternative Visions - China’s Crypto Ban, Fed’s Taper & Biden’s Disappearing Stimulus

Dr. Rasmus reviews the key economic events of the past week. 1) China’s growing ban of Crypto currencies and what’s behind it. Also, the Evergrande Corporate Bond default feared by US professional investors and why they are concerned 2)the Fed’s decision to continue injecting $120b/mo. in free money to bankers and investors and not to begin raising interest rates until middle of 2022. US stock markets surge on the news 3) the status of the negotiations within the democratic party’s corporate wing v. progressives on the two pending fiscal stimulus bills—the infrastructure bill $550B and the $3.5T Reconciliation bill. Rasmus predicts how they might get it passed, at a much reduced level of total spending. Why the democratic party’s corporate wing keeps calling the party’s shots on spending and tax policy to protect its wealthy capitalists.

Alternative Visions - Gutting the $3.5T American Families Plan + What’s a Socialist America, Part 2

In the first half hour of the show Dr. Rasmus describes the legislative maneuverings underway in the attempt to pass the $3.5 trillion ‘American Families Plan’ (aka human infrastructure bill) in Congress. Why it’s a negotiation within the Democratic party and not with the Republicans. Why it’s more fundamentally about the corporate wing of the Democratic party opposed to reversing the Trump 2017 $4.5 trillion tax cuts, than it is about spending on ‘human infrastructure’. Why the final bill will approximate $1 to $1.5T and not $3.5T and how the Democrats will ‘sell it’.  Rasmus then spends the second half hour returning to last week’s theme, ‘What’s a Socialist America, Part 2, which addresses the changes to the US political system that might (have to) occur in order to establish a Socialist America.

 

Alternative Visions - What’s A Socialist America, Part 1

Dr. Rasmus starts the show with a short commentary on Biden’s just announced mandate yesterday requiring businesses to vaccinate their workers. What’s the economics behind the announcement, reasons and economic consequences of the announcement. Thereafter, the rest of the show addresses the topic: ‘What Would a Socialist America’ look like? Many listeners and readers of Dr. Rasmus’s blog have asked him to comment on that topic. So today’s show begins that discussion, focusing on what a Socialist Economy would have to look like in order to establish the foundation for a Socialist America. The emphasis today is on what fundamental changes to economic institutions, class relationships, and economic policies are required to establish a Socialist Economy. Subsequent shows on ‘What’s A Socialist America’ will address basic changes required in the country’s political system, social structure, and even culture.