MCViewPoint

Opinion from a Libertarian ViewPoint

Posts Tagged ‘Janet yellen’

The Real Reason Behind Janet Yellen’s Global Tax…

Posted by M. C. on April 15, 2021

No matter what they call it and what method they use, bankrupt governments are trying to prevent money from leaving for greener pastures.

https://internationalman.com/articles/real-reason-behind-janet-yellen-global-tax/

by Jeff Thomas

International Man: Recently, Secretary of Treasury Janet Yellen called for a global minimum tax rate because it would reduce the likelihood of US companies moving offshore.

It seems that the US government recognizes that its confiscatory tax policies are driving productive people and companies out and is looking to make sure they have nowhere to run.

What is really going on here?

Jeff Thomas: For many years, I’ve heard businesspeople, particularly American businesspeople, complain that their government is making all the wrong moves; that neither increased taxation nor capital controls are going to help business succeed and thrive in America. I’m afraid that they’re looking at this the wrong way round. They’re making the assumption that the government’s primary objective is to serve the American people. It is not. Governments don’t see themselves as existing to serve the people, they see themselves as feeding off the people. They are essentially parasitical organizations that produce nothing and consume what they can successfully take from the populace. Once that concept is understood, such moves as the present one become easier to understand.

Government could help business simply by downsizing government and lowering taxes. Business would then thrive. But that would dramatically diminish the take by government. Governments operate through coercion. So, when business leaves a country in response to greater taxation, government reacts by force. In this case, that means an attempt to eliminate the freedom that exists in another country. Rather than declare war on that country and take it over, it’s more palatable to create economic warfare “for the greater good.” So, yes, Ms. Yellen’s call for a global tax rate is intended to eliminate places for American business to run. In essence, this is The Land of the Free seeking to eliminate freedom worldwide as it has at home.

International Man: The Organization for Economic Co-operation and Development (OECD) has long tried to end financial privacy and impose regulations on countries with low (or no) taxes.

In light of Yellen’s comments, do you think the next step is a big push to try to harmonize global tax rates?

Jeff Thomas: The OECD’s goals have never been broadly understood. They’ve always presented themselves as a “helping hand” organisation, but from the beginning, they’ve had two primary goals: 1) The regulation of tax compliance worldwide and 2) The elimination of tax havens through global tax uniformity. The first effort has been pursued by periodically creating “Minimum International Standards.” The implication has been that the nations of the world have all agreed on these, but in fact, the standards are arbitrary, created solely by the OECD and announced to the world, imposing them on not all countries but on a selection of targeted tax havens under the guise of the prevention of money laundering, terrorism, etc. This latter ploy is used in order to gain public acceptance of what is essentially an attempt at selective global economic control.

The second effort is one that they’ve kept under wraps for decades, but it has always been the top priority. Until recently, it would not have been either palatable or achievable, but it is being put forward now, amid the confusion over COVID – a time when it may be able to grow some legs.

The claim is that the goal is to harmonise tax rates worldwide, but that’s not the real intent. The goal is to neutralise tax havens in order to trap their own citizens.

International Man: Will it work?

Jeff Thomas: Yes and no. They’ll succeed to some extent, but there will be massive blow-back by the tax havens and their investors. Until now, progress for the OECD has been slow, as tax havens have been very adept at dodging bullets and finding work-arounds for OECD demands. In addition, most tax havens cannot simply change their national policies; they’d need to change their constitutions to bring about dramatic change. So, elections would need to be fought over those changes, and there would be a considerable variety of outcomes, accompanied by endless delays. Don’t forget: No tax haven will voluntarily commit economic suicide just to please the OECD. This will be dragged out as long as possible, and the outcome will be far from uniform.

This brings up another important point in answer to your question. In addressing the “Great Reset,” we don’t doubt the determination of The Powers That Be to achieve this, which often leads us to assume they will ultimately succeed. Yet we know that the First World countries that are at the forefront of the New World Order have entered the crisis stage; it’s unlikely that they’ll survive the crisis intact. At some point, they’ll crash and will be unable to fund all their agencies, such as the OECD. It’s quite likely that the effort to eliminate tax havens will fall apart in mid-transformation since it will be a drawn-out affair. Tax havens will certainly be hard hit, but that doesn’t mean they won’t survive.

International Man: No matter what they call it and what method they use, bankrupt governments are trying to prevent money from leaving for greener pastures. What do you think is the next scam they’ll try?

Jeff Thomas: Well, this is it: the recent announcement by Ms. Yellen. I’ve been waiting for this one for a very long time, and this is the big one: the OECD’s main objective, as I mentioned. I don’t think they’ll be as patient with this one as they have with the effort to regulate the tax havens. They’re running out of time and will have to fast-track this before their whole power base visibly unravels. I’ve talked to many people in the tax shelter industry about this, and they unquestionably fear this development becoming a major force. But I personally welcome the fast-tracking. The quicker they attempt to rush the effort, the more likely that it will fall apart midstream. People will only tolerate so much loss of freedom at one go.

See the rest here

Be seeing you

Posted in Uncategorized | Tagged: , , | Leave a Comment »

‘Global Taxes – Global Stagnation’ – Ron Paul’s 12 Apr. Column

Posted by M. C. on April 13, 2021

The goal of those supporting global minimum taxes enforced by a global tax agency is to prevent countries from lowering their taxes. Lowering corporate and other taxes is one way countries are able to attract new businesses and grow their economies. For example, after Ireland lowered its corporate taxes, it moved from being one of the poorest countries in the EU to having one of the EU’s strongest economies. Also, American workers and investors benefited from the 2017 tax reform’s reduction of corporate taxes from 35 percent to 21 percent.

https://mailchi.mp/ronpaulinstitute/globaltax?e=4e0de347c8

Apr 12 – Treasury Secretary Janet Yellen has proposed that governments around the world require payment of at least a uniform “global minimum corporate tax.” A motivation for Yellen’s push for a global minimum corporate tax is fear that the Biden administration’s proposed increase in the US corporate tax will cause some American corporations to flee the US for countries with lower corporate taxes.

President Biden wants to increase corporate taxes to help pay for his so-called infrastructure plan. The plan actually spends more on “progressive” priorities, including a down payment on the Green New Deal, than on infrastructure.

Much of the spending will benefit state-favored businesses. For example, the plan provides money to promote manufacturing and electric vehicles. So, the idea is to raise taxes on all corporations and then use some of the received tax payments to subsidize government-favored businesses and industries.

The only way to know the highest valued use of resources is by seeing what goods and services consumers voluntary choose to spend their money on. A system where the allocation of resources is based on the preferences of politicians and bureaucrats — who use force to get their way — will be less efficient than a system where consumers control the allocation of resources.

Thus, the greater role government plays in the economy the less prosperous the people will be — with the possible exception of the governing class and those who make their living currying favor with the rulers.

Yellen’s global corporate tax proposal will no doubt be supported by governments of many European Union (EU) countries, as well as the globalist bureaucrats at the Organization for Economic Cooperation and Development (OECD). For years, these governments and their power-hungry OECD allies have sought to create a global tax cartel.

The goal of those supporting global minimum taxes enforced by a global tax agency is to prevent countries from lowering their taxes. Lowering corporate and other taxes is one way countries are able to attract new businesses and grow their economies. For example, after Ireland lowered its corporate taxes, it moved from being one of the poorest countries in the EU to having one of the EU’s strongest economies. Also, American workers and investors benefited from the 2017 tax reform’s reduction of corporate taxes from 35 percent to 21 percent.

Yellen and her pro-global tax counterparts deride tax competition between countries as a “race to the bottom.” In fact, tax competition is a race to the top for the countries whose economies benefit from new investments, and for the workers and consumers who benefit from new job opportunities and new products. In contrast, a global minimum corporate tax will raise prices and lower wages, while incentivizing politicians to further increase the minimum.

A global minimum corporate tax will also set a precedent for imposition of other global minimum taxes on individuals. This scheme may even advance the old Keynesian dream of a global currency. The Biden administration is already taking steps toward a global currency by asking the International Monetary Fund to issue more special drawing rights (SDRs).

Global tax and fiat currency systems will only benefit the world’s political and financial elites. In contrast, regular people across the world benefit from limited government, free markets, sound money, and reduced or eliminated taxes.



Read more great articles on the Ron Paul Institute website.
Subscribe to free updates from the Ron Paul Institute.
Copyright © 2021 by Ron Paul Institute. Permission to reprint in whole or in part is gladly granted, provided full credit and a live link are given.

Be seeing you

Posted in Uncategorized | Tagged: , , , , | Leave a Comment »

Biden and Janet Yellen Are Pushing a Global Minimum Tax Rate. The EU Is Very Pleased. | Mises Wire

Posted by M. C. on April 8, 2021

So, for at least a decade, EU politicians have openly complained that tax competition is “a threat to the European Union.” The regimes in the west don’t like having to deal with smaller, poorer regimes that can offer lower taxes to employers, investors, and producers.

https://mises.org/wire/biden-and-janet-yellen-are-pushing-global-minimum-tax-rate-eu-very-pleased

Ryan McMaken

It has long been a dream of central planners and interventionists to set global, uniform tax rates for all regimes. These globalists know that so long as sovereign states have the ability to freely set their own tax rates, some regimes are tempted to engage in “tax competition” in order to attract capital. When this happens “tax havens” allow companies and individuals to “shop around” in terms of where to put their productive wealth.

The antidote to this “problem,” we are told, is so-called tax harmonization. Under tax harmonization schemes, all governments are forced to impose a certain minimum tax rate so that high-tax countries need not compete with low-tax countries. Noncompliance comes with sanctions.

Without tax havens, of course, regimes have more freedom to raise taxes to ever higher levels because the gap between the high-tax regimes and low-tax regimes is significantly lessened.

So, it should surprise no one that President Biden’s Treasury secretary Janet Yellen is now pushing for a global minimum corporate tax, and for an increase to the US corporate taxes:

U.S. Treasury Secretary Janet Yellen on Monday urged the adoption of a minimum global corporate income tax, an effort to at least partially offset any disadvantages that might arise from the Biden administration’s proposed increase in the U.S. corporate tax rate.

Citing a “30-year race to the bottom” in which countries have slashed corporate tax rates in an effort to attract multinational businesses, Yellen said the Biden administration would work with other advanced economies in the Group of 20 to set a minimum.

Naturally, such a scheme doesn’t work without a means to punish countries that don’t cooperate. According to Reuters,

The U.S. plan envisages a 21% minimum corporate tax rate, coupled with eliminating exemptions on income from countries that do not enact a minimum tax to discourage the shifting of jobs and profits overseas.

In other words, “Biden’s corporate tax measure would also penalize other countries without a minimum corporate tax by more heavily taxing their subsidiaries in the U.S.”

A Long War on Tax Competition

The US’s new attack on tax havens and tax competition comes after years of attempts by the EU and the Organization for Economic Co-operation and Development (OECD) to impose enforceable minimum tax rates. The OECD is currently in the process of negotiating what Daniel Mitchell calls a “global high tax cartel.”

Moreover, the European Commission has been complaining for many years about low-tax member states within the bloc.

In early 2019, for example, European Commission president Jean-Claude Juncker pushed the idea of ending the ability of EU members to veto changes in tax policy so as to make tax rates across EU countries more equal. Ireland and Hungary, which have adopted low tax rates to attract businesses, have long opposed such effortsMalta has vehemently objected as well.

In the EU, France and Germany—the largest and most powerful states in the bloc—have pushed for an EU-wide corporate tax policy for years. Germany and France have already announced plans to bilaterally pursue a common corporate tax policy, but this is just the first step. The next step is to impose minimum tax rates on the rest of Europe as well.

Europe isn’t the only place where regimes have hoped to attract capital with low tax rates. Small island nations in the Caribbean also function as tax havens and have earned the ire of the European Union’s leadership.

In many ways, the effort to achieve tax harmonization is also a war on small countries, waged by big, powerful countries.

After all, small countries have limited tools in attracting capital. All else being equal, small countries that use small-time local currencies are at a disadvantage in a world of competing fiat currencies. Small countries also potentially have less access to ready labor and other inputs necessary for production. Finally, small countries are at a disadvantage when they are physically located far from other centers of capital. This is the case for many Caribbean and eastern European countries.

East vs. West and Rich vs. Poor

One way small countries can compete is by lowering corporate tax rates. This is partly why Ireland, Malta, and Hungary have all pursued low-tax policies. In fact, in 2019, Hungary slashed its corporate tax rate to 9 percent from 19 percent. Ireland—which has long been at the periphery of Europe and was considerably poorer than the rest of Western Europe as late as the early 1990s—has now become known for its relatively low corporate tax rate, which now stands at 12.5 percent. In contrast, France’s corporate tax rate as of 2020 was 32 percent. Germany’s rate was 29.9 percent. Indeed, it is no coincidence that the old established economies of the EU—France, Germany, Spain, Italy, and the Low Countries—all have higher corporate tax rates compared to the old Iron Curtain countries.

In Poland and Czechia, for example, the corporate tax rate is 19 percent. It’s 16 percent in Romania. Naturally, after the end of the Soviet Union, these countries sought to raise their standards of living and enter the global marketplace. One way to attract capital was to make their economies more attractive to foreign capitalists.

The rich west of Europe has never approved of this strategy.

So, for at least a decade, EU politicians have openly complained that tax competition is “a threat to the European Union.” The regimes in the west don’t like having to deal with smaller, poorer regimes that can offer lower taxes to employers, investors, and producers.

Now, it looks like the US is joining this effort to force smaller, poorer countries to raise their tax rates. The Trump administration threw a bit of a wrench in the EU’s plans to harmonize taxes when Trump was able to win approval of a corporate tax cut from 35 percent to 21 percent. That presented an indirect threat to the Franco-German plan to turn the industrialized world into one big high-tax bloc. But now with Biden in the White House, the US looks like its “ready to help” by raising US rates to a France-friendly 28 percent, and by also pushing for a new global tax regime. 

The high-tax regimes of the world will be more than happy to join in.  Author:

Contact Ryan McMaken

Ryan McMaken (@ryanmcmaken) is a senior editor at the Mises Institute. Send him your article submissions for the Mises Wire and Power&Market, but read article guidelines first. Ryan has degrees in economics and political science from the University of Colorado and was a housing economist for the State of Colorado. He is the author of Commie Cowboys: The Bourgeoisie and the Nation-State in the Western Genre.

Be seeing you

Posted in Uncategorized | Tagged: , , , | Leave a Comment »

Old Yellen

Posted by M. C. on April 6, 2021

May be a cartoon of 2 people and text that says 'Are companies leaving because the taxes in theUS are too high? 冊 @a No, it's because the taxes in 101 other countries are too low'

Posted in Uncategorized | Tagged: , | Leave a Comment »

Erie Times E-Edition Article-Yellen backing global corporate tax

Posted by M. C. on April 6, 2021

Raising everyone else’s tax so companies won’t bail on US. How does eveyone paying more for taxes help you?

This is why David Stockman described Yellen as a simpleton.

Here is a radical thought. Lower all taxes. Make everyone (except maybe Raytheon) happy.

https://erietimes-pa-app.newsmemory.com/?publink=2959a2d03

Yellen backing global corporate tax

Christopher Rugaber

ASSOCIATED PRESS

WASHINGTON – Treasury Secretary Janet Yellen on Monday urged the adoption of a minimum global corporate income tax, an effort to offset any disadvantages that might arise from the Biden administration’s proposed increase in the U.S. corporate tax rate.

Citing a “30-year race to the bottom” in which countries have slashed corporate tax rates in an effort to attract multinational businesses, Yellen said the Biden administration would work with other advanced economies in the Group of 20 to set a minimum.

“Competitiveness is about more than how U.S.-headquartered companies fare against other companies in global merger and acquisition bids,” Yellen said in a virtual speech to the Chicago Council on Global Affairs. “It is about making sure that governments have stable tax systems that raise sufficient revenue to invest in essential public goods.”

The speech was Yellen’s highest-profile so far on international affairs, and came just as the spring meetings of the World Bank and International Monetary Fund began in a virtual format.

“It is important to work with other countries to end the pressures of tax competition and corporate tax base erosion,” Yellen said.

President Joe Biden has proposed hiking the U.S. corporate tax rate to 28% from 21%, partially undoing the Trump administration’s cut from 35% in its 2017 tax legislation. Biden also wants to set a minimum U.S. tax on overseas corporate income, and to make it harder for companies to shift earnings offshore.

Also on Monday, Biden said he was “not at all” concerned that a higher corporate tax rate would cause some U.S. companies to relocate overseas, though Yellen’s proposed global minimum corporate tax is intended to prevent that from happening.

“There’s no evidence to that … that’s bizarre,” Biden said in response to a question from reporters.

According to the Tax Foundation, the Trump administration’s corporate tax reduction lowered the U.S. rate from the highest among the 37 advanced economies in the Organization for Economic Cooperation and Development to the 13th highest. Many analysts have argued, however, that few large U.S. multinationals paid the full tax.

“We have 51 or 52 corporations from the Fortune 500 who haven’t paid a single penny a day for three years?” Biden said. “Come on.”

Yellen also noted that many developing nations are lagging in vaccinating their populations, and have also experienced harsh economic consequences from the pandemic. As many as 150 million people worldwide will fall into extreme poverty this year, Yellen said.

The Biden administration supports the creation of $650 billion in new lending capacity at the IMF to address such issues, she said. Many Republicans in Congress oppose the new allotment, arguing that much of the funding would flow to relatively better-off developing countries, such as China.

Yellen acknowledged that the additional credit would be distributed to each IMF member, but argued that “significant resources will go to the poorest countries most in need.”

Treasury Secretary Janet Yellen says advanced countries should cooperate on a minimum corporate income tax.

Posted in Uncategorized | Tagged: , | Leave a Comment »

Biden may propose $1 trillion in new taxes, says a former aide — and here’s how Congress will react – MarketWatch

Posted by M. C. on March 18, 2021

Taxes are just additional costs of doing business. We know who pays for them in the end.

https://www.marketwatch.com/story/biden-may-propose-1-trillion-in-new-taxes-says-a-former-aide-and-heres-how-congress-will-react-11615978938

By

Steve Goldstein

Now that the coronavirus relief package is actually law, it is onto infrastructure for the Biden administration and its razor-thin Democratic majority in Congress. But infrastructure legislation will come with strings attached — very hefty new taxes.

The White House will propose $1 trillion worth of new taxes, according to Sarah Bianchi, head of U.S. public policy and political strategy at Evercore ISI and the former director of economic and domestic policy for then Vice President Joe Biden.

Officials including Treasury Secretary Janet Yellen have started suggesting what will be in the White House plan. Bianchi says hiking the corporate tax rate to 28% from 21%, establishing a global minimum tax and raising what’s called the global intangible low-taxed income rate to 21% will be in his plan. The plan will probably include nearly doubling capital-gains taxes on those with income over $1 million, and likely will include taxing unrealized gains at death, ending carried interest and raising the top individual income-tax rate.

Other possibilities include restoring the 2009 estate tax policies, limiting individual deductions, phasing out some business income deductions and establishing a financial transactions tax.

Quarter of the way there

Kastle Systems, a provider of office security services, has been using its keycard and fob data to track office occupancy. Half of the cities measured saw increases in building occupancy last week, bringing the 10-city national average up to 25%, up 0.2% from the week before. Houston has the top occupancy at just over 37%.

Steve Goldstein

Steven Goldstein is based in London and responsible for MarketWatch’s coverage of financial markets in Europe, with a particular focus on global macro and commodities. Previously, he was Washington bureau chief, directing MarketWatch’s economic, political and regulatory coverage. Follow Steve on Twitter: @MKTWgoldstein.

Be seeing you

Posted in Uncategorized | Tagged: , , | Leave a Comment »

US drops key obstacle to global digital tax: Treasury

Posted by M. C. on February 27, 2021

Biden’s appointee and who David Stockman descrbes as a simpleton.
Digital global tax. Does this mean some global entity can just deduct from digital accounts without your say so?

US Treasury Secretary Janet Yellen told her G20 colleagues Friday that Washington is dropping a push for a controversial provision in a global digital tax, opening the door to a likely agreement.

The US shift — part of a broader repositioning by President Joe Biden from the “America First” agenda of former President Donald Trump — prompted immediate praise from Germany and France, which said a deal was now “within reach” following the US pivot.

Yellen announced at the G20 finance ministers meeting that US officials “will engage robustly” in the talks and “is no longer advocating for ‘safe harbor’ implementation of Pillar 1,” a Treasury official told AFP.

The Trump administration had insisted on a so-called safe harbor clause in the OECD tax that effectively would have allowed big tech companies to comply voluntarily, blocking progress on a deal.

The Organization for Economic Cooperation and Development has been working on a multilateral agreement that would include a global minimum corporate tax rate on tech giants.

The aim is to find a common solution to address the policy dilemma of how to tax profits earned in one country by a company headquartered in another that offers more favorable tax treatment.

European officials said the US shift was an important breakthrough.

“This is a giant step forward on our path towards an agreement among the participating states by the summer,” German Finance Minister Olaf Scholz said in a statement following virtual talks with his G20 counterparts.

French Economy Minister Bruno Le Maire said a deal should be reached by summer, calling for negotiations to be “concluded without delay.”

France in 2019 approved a tax on tech firms like Facebook, Amazon, Apple and Google, which were accused of moving their profits offshore.

Paris suspended collection of the digital services tax through the end of 2020 amid the OECD talks.

But the measure had drawn sharp criticism from the Trump administration, which had planned to enact tariffs on French goods, but called off the levies in early January before leaving Washington.

Yellen had signaled the likely US shift during her January Senate confirmation hearing, saying she supported efforts to ensure corporations pay their “fair share” and to remove incentives for companies to offshore activities.

In November, some 75 major tech players, including Google and Facebook, backed a French initiative committing them to making a “fair tax contribution” in countries where they operate.

Without an accord, companies face the risk of a proliferation of national laws that could have led to double taxation.

Be seeing you

Posted in Uncategorized | Tagged: , , | Leave a Comment »

EconomicPolicyJournal.com: TODAY IN CRONY AMERICA: Biden and Yellen to Meet with Top CEOs to Talk Stimulus

Posted by M. C. on February 11, 2021

Bottom line: They are for big spending and more inflation because they know a good chunk of the money will find its way to their corporations first, long before it destroys the buying power of those on fixed incomes.

https://www.economicpolicyjournal.com/2021/02/today-in-crony-america-biden-and-yellen.html

Janet Yellen at Biden inauguration

President Joe Biden will on Tuesday meet with the chief executives of some of the country’s largest businesses in the Oval Office to discuss his $1.9 trillion Covid stimulus plan, reports CNBC.

Among those expected to meet with Biden and Treasury Secretary Janet Yellen are JPMorgan’s Jamie Dimon, Walmart’s Doug McMillon, Gap’s Sonia Syngal, Lowe’s Marvin Ellison and Tom Donohue of the U.S. Chamber of Commerce.

Though the exact agenda of the afternoon meeting wasn’t immediately available, the White House said that the group will review the “critical need” for Biden’s massive rescue plan that’s currently making its way through Congress.

This should be consider a sit-down of Biden-Yellen with crony America. Josh Bolten, president and CEO of the influential Business Roundtable, told CNBC last week that business leaders generally do not support conservative efforts to “whittle down” the size of the Biden plan.

Dimon, McMillon and Synga are members of the roundtable.

Bottom line: They are for big spending and more inflation because they know a good chunk of the money will find its way to their corporations first, long before it destroys the buying power of those on fixed incomes.

RW

Posted in Uncategorized | Tagged: , , , , , , , , , | Leave a Comment »

Market Weekly: All Hail the Conquering Central Bankers – Or Else

Posted by M. C. on February 8, 2021

As I’ve said many times, the stakes are higher today than they were in 2016 for these people. The Obama Restoration that is the Fungal Presidency depends solely on the central banks taking control over the global economy, sidelining the traditional, and terminally corrupt, banking system.

Yes, I can hear you saying, “But they are one and the same.” But, not really, not anymore. In order to pull this off someone will have to be sacrificed to the incredibly angry mob that is brewing outside the capitols of every major western power.

https://tomluongo.me/2021/02/05/hail-conquering-central-bankers/

Author: Tom Luongo

If you are unclear what’s happening, frankly, you aren’t paying attention. The central banks, at the urging of the World Economic Forum, have come from behind the shadows to assert their will over the world.

In order to create the imprimatur of depth and sincerity Fungal President Joe Biden tapped former FOMC Chair Janet Yellen as his Treasury Secretary.

It doesn’t matter that Yellen was the architect of the worst recovery in history or that her incessant dithering on ending QE and raising rates. She’s a woman. Right?

The only good thing about Yellen at Treasury is that Steve “Mr. Goldman” Mnuchin is gone. All Mnuchin did at Treasury was ensure the outsourcing of monetary policy to Blackrock through the loan programs of the CARES Act and sanction anyone who didn’t pay Goldman enough Tribute.

So, from that perspective, I guess, Yellen is an upgrade. Because she’s just an incompetent career bureaucrat. But what this means is that since personnel is policy in D.C. the central banks will become the center of policy.

And that means full international coordination by them to implement not only MMT — Modern Monetary Theory — but also accelerate the adoption of digital-only versions of national currencies, CBDCs, to support the full takeover of the economy by central planners.

Given Biden’s first foreign policy speech last night and the very real smackdown issued by Russian President Vladimir Putin at this year’s Virtual Davos, expect nothing but more of what ailed us under Trump taken up another notch.

Putin’s speech was one for the ages, to be honest, and everyone should read it.

Why?

Because Putin openly declared his opposition to the brave new world of Klaus Schwab and his Davos Crowd. And that means he incurred the wrath of the policy-wonks in D.C, Brussels and London.

Not that he didn’t have that already, but again, I believe we ain’t seen nothin’ yet when it comes to aggression. The problem with that however is that it openly risks open military conflict not only in Syria where Biden immediately sent troops across the Iraqi border but also in the Black Sea

As I’ve said many times, the stakes are higher today than they were in 2016 for these people. The Obama Restoration that is the Fungal Presidency depends solely on the central banks taking control over the global economy, sidelining the traditional, and terminally corrupt, banking system.

Yes, I can hear you saying, “But they are one and the same.” But, not really, not anymore. In order to pull this off someone will have to be sacrificed to the incredibly angry mob that is brewing outside the capitols of every major western power.

This planned destruction of the West’s middle class is creating an unruly, #ungovernable mob. This week that mob attacked Wall St. at its heart. Going after the hedge funds who are nothing but fronts for the big banks.

They’ve used their market position and capture of the regulators (including Yellen herself) to create one-way trades, draining the vitality of the economy through fees, taxes and barriers-to-entry.

That’s what animated the GameStop Rebellion of the past couple of weeks and we’ll see more of these #ShortSqueezes going forward. The markets, thanks to the ocean of liquidity sloshing around and now the promise of another massive stimulus bill, are so thoroughly unbalanced that anything could become a trigger for another meltdown.

And that brings me to the next part of the story in the conquering of governments by the central banks. Mario Draghi (yes that guy!) has been given the right to try and forma government from the ashes of the last terrible government in Italy.

President Sergio Mattarella is as pro-EU and Italian Swamp as it gets. This will be the fourth time he has intervened far beyond his constitutional capacity since Five Star Movement and Lega shocked the world in 2018 with their bipartisan populist uprising.

Because those election results would never hold up today, Mattarella continues to shield Italy from new elections. It’s fascinating how a mostly ceremonial (mostly peaceful) position like his has become more powerful than any other, all because Brussels demands it be so.

So, Former ECB President Mario Draghi will likely become the next Prime Minister of Italy over the objections of everyone outside of the Rome Mafia.

“In my opinion, the 5-Star Movement has the duty to meet (Draghi), listen and then take a position on the basis of what our parliamentarians decide,” said Luigi Di Maio, the outgoing foreign minister and party big-wig.

“We did not seek the stalemate … but it is precisely in these circumstances that a political force shows itself to be mature in the eyes of the country.”

Former prime minister Silvio Berlusconi suggested he might be ready to support a Draghi government – a move that could cause a schism within the right-wing opposition bloc.

Now it was Di Maio who betrayed Lega leader Matteo Salvini in September 2019 to form the outgoing government which was never stable. It was a clear betrayal by Di Maio who I said at the time would become Italy’s version of Alexis Tsipras, the former Greek Prime Minister who folded to Brussels in 2015 if he did just that.

See the rest here

Published by Tom Luongo

Publisher of the Gold Goats n Guns. Ruminations on Geopolitics, Markets and Goats. View all posts by Tom Luongo

Be seeing you

Posted in Uncategorized | Tagged: , , , | Leave a Comment »

EconomicPolicyJournal.com: More Evidence of Treasury Secretary Janet Yellen as a Simple Political Lackey

Posted by M. C. on February 2, 2021

https://www.economicpolicyjournal.com/2021/02/more-evidence-of-treasury-secretary.html

Janet Yellen

Last week, during her confirmation hearing, to become Treasury Secretary, Janet Yellen told the Senate Finance Committee that analysis of states that boosted the minimum wage showed that job losses are “minimal, if anything.”

“Very minimal,” Yellen added in reply to a question by South Carolina Sen. Tim Scott

She knows better than this.

A Wall Street Journal editorial points out that during a Congressional hearing in 2014 when she was asked about Barack Obama’s proposal to raise the federal minimum wage to $10.10, she said, “I think almost all economists think that the minimum wage has two main effects.”

One, she pointed out, is increasing pay for some low-paid workers, and the second is “there would be some amount of negative impact on employment.” How much is a matter of “considerable debate,” she said, adding that she “wouldn’t argue” with the Congressional Budget Office estimate that Obama’s hike would cost 500,000 jobs.

Now, she thinks job losses would be minimal if anything, yeah right.

The Journal editorial nailed what is really going on:

Ms. Yellen no doubt feels she has to sell her new boss’s economic policies, and on Tuesday she also endorsed his gigantic Covid relief bill of $1.9 trillion. The huge increase in the federal debt held by the public, which is already about 100% of the economy and rising, is no longer of much concern to America’s political class. But the main message of Ms. Yellen’s testimony is that she is no longer speaking as an economist. She’s a politician.

The big problem with all this is that 2021 is destined to be a year with one economic storm after another. Biden has named two weak economic advisers, one at the National  Economic Council and one at the Council of Economic Advisers. They are very quickly going to be in way over their heads. 

The only individual in the room during a crisis with any sense of how the economy works will be Yellen, but if she plays the role of the spineless lackey, and yields to the ideas of Senile Joe and his political controls, the economy could be driven off a cliff to the degree that 2020 might end up looking like the roaring ’20s compared to 2021. 

RW

Be seeing you

Posted in Uncategorized | Tagged: , , , | Leave a Comment »