How I Cracked the Alpha Code – BONUS POST

[Please note: The word “Featured” on the left side above was NOT inserted by this blogger, but apparently was inserted by WordPress, and it cannot be removed. NO post in this blog is sponsored.]

“The new guys were preoccupied with being reelected, the demands of which were not well served by ridiculous fantasies like fiscal discipline.”

American politics? Rogers was actually referring to the money managers of the euro in the early 2000’s. He was cautiously optimistic about the euro when it was first launched. Oh, well.

The Bonus Book of the Week is “How I Cracked the Alpha Code” by Jim Rogers, published in 2013. This was a partially autobiographical, extended essay that gave tips on how to gauge economic prosperity and prospects in different places. At all times, Rogers is on the lookout everywhere for investment opportunities. He made his (take this job and shove it) money and retired from investment banking at 37 years old.

Born in 1942, Rogers and his wife and young children tried living in Shanghai and Hong Kong (where there was horrible air pollution) beginning in 2005, before deciding to move to Singapore from New York City.

Singapore requires no security at public events, so it is safe for children. He claimed that the education and healthcare systems are excellent. It has entitlement programs in those areas and in home ownership that are roughly equivalent to health savings accounts and 529 plans in the U.S. with contribution-matching through employers, but administered by the government. The public schools require parents to volunteer to help in various capacities. Medical treatment is a great value compared to that in the U.S. No surprise there. It also has the equivalent of America’s E-ZPass system on toll roads and for parking, too.

However, Rogers merely listed the positive aspects of Singaporeans’ lifestyle. He listed no negatives, except for potential, general economic threats that could affect any nation. Another glaring omission of inconvenient information was cryptocurrencies. But he did reveal his basic philosophy: one’s real worth is what one would be worth if one lost all of his or her money. And let financial entities fail so as to encourage creative destruction. Do not bail them out.

Rogers listed some of the kinds of policies and practices that bring a country down economically: wars, litigation, and incompetent leadership. This blogger would add one more: excessive deregulation. He gave tips on what a nation should do to try to reverse its serious financial position: reform the tax system so as to encourage savings and investment, not consumption; “change the education system” and reform healthcare and litigation.

Read the book to learn more cherry-picked information that bolstered the author’s too brief, too pat pronouncements.

Exorbitant Privilege

[Please note: The word “Featured” on the left side above was NOT inserted by this blogger, but apparently was inserted by WordPress, and it cannot be removed. NO post in this blog is sponsored.]

The Book of the Week is “Exorbitant Privilege, The Rise and Fall of the Dollar and the Future of the International Monetary System” by Barry Eichengreen, published in 2011.

“Often these individuals had little professional training, there being no meaningful federal or in some cases, even state licensing requirements.”

No, the above refers to neither tax preparers nor life coaches.

The author was referring to the bandwagon-jumpers who worked for lenders taking advantage of the excessive deregulation that resulted in the 2008 subprime mortgage crisis in America.

The author listed some factors favoring, and some disfavoring the American dollar’s ability to maintain its global power as a currency and store of value. However, one major factor the author completely neglected to mention (a glaring omission) was that of cryptocurrencies.

Anyway, Brooksley Born, head of the Commodities Futures Trading Commission, raised the alarm in the late 1990’s on the excessive deregulation that was to lead to the subprime crisis. She deserves more of a historical footnote than she has since received, because sadly, greedy alpha males are better propagandists than prescient, conscientious public-officials such as she.

The author contended that one major reason the American dollar will continue to maintain its dominance in the world, is that other industrialized nations can’t agree on what financial instrument should replace the American dollar as a stabilizer of the world’s other currencies. The greenback has compiled a longer history of trustworthiness, value-consistency, related liquidity-maintenance, and other benefits, in connection with transactions and international trade balances, more than any other instrument. China’s policy of keeping its central banks’ foreign-reserves balance a secret, reduces China’s currency’s trustworthiness.

The powerful U.S. government backs up its currency through treasury bonds and bills, while a (sometimes contentious) collective of European countries (not one government) must agree on how to act when a monetary crisis rears its ugly head. It stands to reason that disagreement or indecision leads to uncertainty, which leads to instability, and a possible worsening or hastening of, the collapse of modern civilization.

The aforementioned are just a few reasons why 54 countries pegged their currency’s values to the American dollar, while 27 pegged theirs to the euro, as of 2009. As is well known, the George W. Bush administration did a number on the U.S. economy, as “… tax cuts and unfunded spending increases [on two extremely expensive wars and a Medicare drug benefit] pushed the budget from surplus in 2000 to a structural deficit of 4 percent of GDP in 2007-2008.” The next two years saw the American government’s debt explosion at its worst.

The author outlined several possible (yet raucously controversial) ways to keep the American dollar globally powerful, through cost-cutting:

  • In a period of non-war– less defense-spending;
  • Reforming healthcare;
  • Raising the retirement age– less pension spending;
  • Liberalizing immigration policy — helps fund Social Security going forward; and
  • Increasing taxes of all kinds.

Read the book to learn a lot more about how the American dollar has fallen in stature in recent decades, and about other geopolitical international: monetary, financial and economic issues; explained for laypeople.

Boomerang

The Book of the Week is “Boomerang, Travels in the New Third World” by Michael Lewis, published in 2011. As the effects of the early 2000’s financial shenanigans began to be felt around the world, the author traveled to newly impoverished countries (Iceland, Greece, Ireland, Germany and the United States) to try to understand their situations, economically, politically and culturally. Human nature is such that very few people see the big picture before it’s too late. Besides that, it takes a long time for the victims to learn who really instigated and funded insidious propaganda campaigns or nefarious activities, if they ever do learn.

Kyle Bass, investment banker from Dallas, raised the alarm prior to the 2008 subprime mortgage crisis, but was shouted down by greedy alpha males with hubris syndrome. So he bet against the sheep and made a killing. But he believed the lowest-risk alternative to the securities market was physical gold, and nickels.

Iceland saw the U.S. in the 1980’s enjoying its material wealth, and wanted a piece of that. Iceland’s prime minister David Oddsson ushered in tax cuts and privatization, and greased the wheels of trade. In this way, the government was enticed into the vortex of excessive-deregulation-induced capitalistic greed. Around 2000, fishing industry regulations produced a maximally efficient, maximally profitable oligopoly that prompted Icelanders who weren’t in the fishing industry, to engage in aluminum smelting, and other economically rewarding careers.

The internet has facilitated the forming of relationships between hegemonic financial entities and overseas suckers. Beginning in 2003, young adults in Iceland found that speculative trading in stocks and currency was much more lucrative than fishing.

Ironically, Iceland– whose economy was based on fishing– was ready to take the bait, and become the fish. The former fishermen thought they’d succeed in the financial-services industry because fishing and money-management both involve risk-taking. However, the former requires specific physical and survival skills; the latter, knowledge and experience in the securities markets, business, economics and politics. Icelanders had none of the latter.

Unsurprisingly, when the money started rolling in, the newly rich started to buy houses and cars they couldn’t afford. Human nature is also such that, when people move numbers around on a screen, they don’t feel like they’re moving real money. The bankers and traders in Iceland were borrowing tens of billions from foreigners in the short term, “…then re-lending the money to themselves and their friends to…” overpay for a large financial stake in other banks, sports teams, and other assets. Astute sellers saw the writing on the wall, and left Iceland holding the bag.

European regulators were asleep at the switch. If U.S. financial institutions had been the targets, or had been engaging in such activity, there would have been more early awareness and safeguards in place, in fending off hostile takeovers.

The Americans have their lawyers, directors and officers, and consultants as the first line of defense. Their financial institutions didn’t play the fool the same way major banks in Iceland did. They were largely the lenders and sellers, not the borrowers. But they still got in trouble (!), and also needed adult supervision going forward to bail themselves out.

Incidentally, the SPAC affiliated with former U.S. president Donald Trump needs to continue to find foreign entities (like those that Iceland’s became) with whom he shares the same ethics (or lack thereof), to establish his new media empire. Here’s a little ditty about the situation thus far:

FUN, FUN, FUN

sung to the tune of “Fun, Fun, Fun” with apologies to the Beach Boys.

Well, he’s got his base’s-money
and he’s cruising to his next train WRECK now.

Seems like he forgot all-about
the REAsons he was banned from Big TECH now.

And with the hate-speech blasting
with over-whelming noise full of DRECK now.

And he’ll have fun, fun, fun
till the hackers take his network away.

(Fun, fun, fun till the hackers take his network away.)

Well, the Dems can’t stand him
’cause he’s STILL hogging media space now.

(He’s still hogging space now, he’s still hogging space.)

He gives American politics
a persistent Nix-onian face now.

(He’s still hogging space now, he’s still hogging space.)

A lotta critics try to nail him
but he spins a propaganda chase now.

(He’s still hogging space now, he’s still hogging space.)

And he’ll have fun, fun, fun
till the hackers take his network away.

(Fun, fun, fun till the hackers take his network away.)

Well, he knew all along
that his foes were getting wise to HIM now.

(He needs a new crew now, he needs a new crew.)

And since his stunts are getting old,
they’ve been wishing that his fun is all through now.

(He needs a new crew now, he needs a new crew.)

And things are coming to a head
and his lawyers got a lot to do now.

(He needs a new crew now, he needs a new crew.)

And he’ll have fun, fun, fun
till the hackers take his network away.

(Fun, fun, fun till the hackers take his network away.)

And he’ll have fun, fun, fun
till the hackers take his network away.

(Fun, fun, fun till the hackers take his network away.)

wo wo wo wo woo woo

(Fun, fun, fun till the hackers take his network away.)
(Fun, fun, fun till the hackers take his network away.)
(Fun, fun, fun till the hackers take his network away.)
(Fun, fun, fun till the hackers take his network away.)
(Fun, fun, fun till the hackers take his network away.)
(Fun, fun, fun till the hackers take his network away.)

Anyway, in October 2008, the party was over for Iceland. Lots of fire insurance was bought, and lots of Range Rovers were set on fire. Finally, in February 2009, the aforementioned Oddsson was ousted as head of the central bank.

The story in Greece was that the government was corrupt, overpaid and overstaffed. No tax collection took place because 2009 was an election year. Corporate employees only (not the self-employed) were the only workers who paid income taxes. All three hundred Parliament members evaded real-property taxes through dishonesty. Cash transactions with no paper trail facilitated the evasion of sales taxes throughout the country. There was wilful ignorance (unbelievably sloppy accounting) that masked just how serious the financial crisis was.

Read the book to learn much more about other aspects of the crisis– the alarm-raisers in Iceland, Ireland and the United States, the one protestor in Ireland, the German mentality, and the responses of a few local American politicians.

The Death of Money / Dealings – BONUS POST

The first Bonus Book of the Week is “The Death of Money, The Coming Collapse of the International Monetary System” by James Rickards, published in 2014. This was an all-over-the-map hodgepodge of generalizations on global financial trends, economic theory and what the author claimed was the devastation those trends could lead to, as of the book’s writing.

Prior to 9/11, the CIA possessed no expertise in the nefarious goings-on in the securities industry that could presage the occurrence of a terrorist attack. America’s law enforcement and security agencies had plenty of data, but inter-agency rivalry inhibited information-sharing and creativity– that would have allowed them to “connect the dots” in getting more specific information.

Prior to 9/11, American intelligence did detect irregular trading patterns in the stocks of the two airlines whose planes were targeted in the attacks. A tiny percentage of those trades were illegal because they were made by insiders– by the terrorists who knew those airlines’ share prices would soon plummet; the remaining percentage of anomalous trading was done by those who noticed the unusual activity (but not the reason for it) and jumped on the bandwagon.

After the attacks, threat-detection software was created for monitoring not just stock trading, but also currency and precious metals trading. The author wrote that a recently trendy means for bringing down an enemy-nation is: doing serious economic and financial harm rather than physical harm. Assaults on a nation’s technology and infrastructure such as the money-handling parts of cyberspace, aviation, dams and utilities, instead of targeting a country’s military and weapons or people of a specific ethnic group, is becoming the new normal.

The author remarked that China’s institutions are actually at risk for attacks, because the country’s government, economically, owns a large chunk of the means of production and arguably, labor; not to mention, capital. Wealthy Chinese business owners and executives have a co-dependent relationship with (corrupt) government officials. Besides, there are: “cross ownership, family ties, front companies, and straw man stockholders.”

The author warned the reader that a global financial crisis is likely in the offing due to prevailing circumstances in the economic heavy hitters of the world (like, the United States and China); among those circumstances: misallocation of investment funds; employers’ power to minimize benefits and compensation; red ink and the ever-widening, (allegedly alarming) gap between rich and poor. Financial panic is correlated with social unrest. That can lead to revolution.

The magnitude and accelerating frequency of financial bailouts of the last twenty-five years just shows how fragile the economic systems of the world are. In the United States, excessive deregulation fueled out-of-control greed, etc., etc., etc. In Europe, the group of nations that agreed to adopt one currency (the euro) thought the other nations would help mitigate their own economic problems, when in reality– they were putting all their eggs in one basket. In effect, they had to get permission from the others to make significant changes to their economic policies; they were forced into unhealthy co-dependent relationships.

Read the book to get the lowdown on: all the different groups of nations which were trying to diminish the U.S. dollar’s hegemony (hint: BRICS, BELL, GIIPS, SCO, GCC) at the book’s writing; the United States’ economic system explained for laypeople (via a Venn diagram, along with how the author defined “money” and “death”– both buried in the middle of the book); and everything you ever wanted to know about the value of gold, among other factors in the American dollar’s declining power in the world.

The second Bonus Book of the Week is “Dealings, A Political and Financial Life” by Felix Rohatyn, published in 2010. This bragfest described the life of the typical alpha male who rode a fabulous career in the securities industry, starting in the 1950’s.

The aforementioned first Bonus Book described the trends indicative of a dire future global financial situation. Many such untoward events have already occurred in the last couple of centuries (!), and keep happening. Every time, the seeds of financial disaster are sown decades prior to when it hits the fan.

The selective memory and cherry-picking of data of participants and victims (not to mention propagandists!) cause readers to perceive that those kinds of events are unprecedented, or are becoming more frequent. Excuse the cliche, THERE IS NOTHING NEW UNDER THE SUN (For more info, see this blog’s posts: Serpent on the Rock, A Fighting Chance, Since Yesterday, Why I Left Goldman Sachs, The Zeroes and Dot Bomb).

Rohatyn described a few major stressful economic near-disasters that he was asked to help remedy. One situation was early 1970’s Wall Street, which was a house of cards about to collapse. Another was the near-bankruptcy of New York City in the mid-1970’s.

The late 1950’s saw the city becoming a bloated, bureaucratic civil-service gravy train, due to the increasing power of unions. The costs of generous contracts (along with other sociological factors) was eroding the city’s tax base. Local politicians stayed in power by staying friendly with the unions. One hand washed the other.

At the dawn of the 1970’s, the city needed more and more short-term loans from banks. Creative accounting allowed the debt explosion to continue. The city got subsidies from the state and federal governments, but only at the end of its fiscal year, so its deficit ballooned annually before then. The city got generous borrowing terms because it was in the state’s and fed’s best interest (excuse the pun) to deregulate the lending banks, as they were political patrons, too. Eventually, push came to shove.

In June 1975, Rohatyn was appointed to a bipartisan (truly bipartisan!) committee to help New York State governor Hugh Carey draft a bailout plan for the city, three weeks before the date on which the city would be forced into bankruptcy. Fortunately, Carey possessed the right temperament for saving the world.

Read the book to learn more about how the author helped impose some adult supervision in various, serious economic episodes in his career, and more about his career itself.

Serpent on the Rock

The Book of the Week is “Serpent on the Rock” by Kurt Eichenwald, published in 1995.

This volume contained an egregious error. It appeared in an anecdote about a member of the Belzberg family, Canadian Orthodox-Jews. In the late 1970’s, Belzberg was acquiring a large quantity of stock of the retail brokerage named Bache, so one of Bache’s executives met with him, to find out his intentions.

As the meeting ended, the author wrote that Belzberg shook hands with the Bache executive. That was obviously a fictionalized detail of the story, because Orthodox Jews do not shake hands with, or touch others, except for close family members.

Anyway, in the second half of the 1970’s, tax shelters became trendy in the securities industry. In the 1980’s, Bache (with a shady reputation in the first place) sold tax shelters in the form of limited partnerships of various kinds (oil and real estate were the most common) and reaped fat fees of as much as 8%. On a bunch of them, printed marketing communications illegally contained material omissions and misstatements.

Bache’s clients were clearly unsophisticated, because anyone with a minimal knowledge of finance should have seen that the objectives of the investment were contradictory: “income, growth and safety” (!)

Brokers dispensed with the printed prospectuses (which contained disclaimers required by law), and focused on verbally selling the money-losing financial instruments to their clients. They lied about the projected financial returns (14 to 15%, when they were pretty sure there would actually be disastrous losses). They called the investments “safe”– a word that should NEVER be used on Wall Street. The proper lingo should be “low-risk” and only when that’s the truth. The limited partnerships were “high-risk.”

One man, Jim Darr, became particularly powerful in the Direct Investment Group, and engaged in a boatload of excessively greedy, unethical activities and white-collar crimes that made him fabulously wealthy. In 1983, he flew all the way to a small thrift bank in Arkansas to get a home loan of $1.8 million to purchase a mansion in Connecticut. At that time, there were plenty of local lenders he could have approached.

Another sleazy character, Clifton Harrison, after pulling his last act of unbelievable thievery, gave the excuse, “I’ve just been borrowing some money against future fees.” Read the book to learn more about the various individuals who shaped Bache’s history, and what became of them.

ENDNOTE: The above shenanigans happens every few years in the United States. The line from the movie “That Thing You Do” describes it perfectly: A very common tale, boys, a very common tale. Here is a brief elaboration of the last forty years:

Steps of the American Politico-Economic Cycle

  1. An extremely pro-business president comes to power.
  2. Excessive deregulation ensues.
  3. Shady financial instruments and money-making vehicles spike in popularity (tax shelters, savings and loan associations, goodwill valuations, junk bonds, derivatives, dot-com stocks, stock-options-repricing, subprime mortgages, payday lenders, for-profit colleges, the PACE program, etc., etc., etc.)
  4. Out-of-control greed ensues.
  5. Profiteers of all political persuasions dispense with ethical behavior.
  6. The bubble bursts. A financial crash ensues.
  7. Lawsuit time!
  8. The impoverishment rate accelerates for the middle class and the poor.
  9. Election time. “It’s the economy, stupid.” Whether true or not (usually not!), campaign-propaganda convinces voters that the president is solely responsible for their personal financial situations.
  10. The reelected president, or one from the same party, continues some of the same hog-wild policies, or the new president reverses what he can. Re-regulation ensues.
  11. Time for another round of Survival Roulette (See this blog’s post, “Blind Ambition”).
  12. Opposition-propagandists pull strings to reverse what the new president reversed. They make voters impatient for improvement, even though undoing the damage takes years and years.
  13. Election time. Repeat steps 1-12.

Our Leaders Are Like Teens

OUR LEADERS ARE LIKE TEENS
sung to the tune of “Only In My Dreams” with apologies to Debbie Gibson.

The powers-that-be are keeping secrets.
We need to end their gravy train.
We’re losing our democracy,
in shrill-whining-Debbie-Gibson pain.

We must return to basic civics,
and regulate again.
Bring back laws on guns and Wall Street,
and cut how much we spend.

Yes, our leaders are like teens
with their social schemes.
They manipulate the scenes.

We need a lot more governing.
Not more polls. Not more Tweets.
Now we see our world come tumbling down.
Now all they see are Party seats.

Congress has to get the tough votes,
and go back to how it used to be:
The good bills got enough votes.
We’ll know again how it feels to be free.

Yes, our leaders are like teens
with their social schemes.
They manipulate the scenes.

Yes, yes, yes, yes our leaders are like teens
with their social schemes.
They manipulate the scenes.

Yes, our leaders are like teens
with their social schemes.
They manipulate the scenes.

Yes, yes, yes, yes our leaders are like teens
with their social schemes.
They manipulate the scenes.

Yes, yes, yes…

Do No Harm / Since Yesterday – BONUS POST

The first Bonus Book of the Week is “Do No Harm, Stories of Life, Death, and Brain Surgery” by Henry Marsh, originally published in 2014. In this personal account, the author– a British brain surgeon– described his horribly depressing career. He recounted how he removed brain tumors from, and clipped aneurysms of, his most memorable patients through the decades. Even when a tumor was benign, it would keep growing and inevitably kill the patient unless taken out. Even when a large aneurysm had yet to burst, there was a chance (incalculable, as every patient is different) that it would burst in the patient’s lifetime.

Metaphorically speaking, some people would say that the outgoing president of the United States is a tumor in the nation’s brain. The author wrote, “You can never know for certain from a brain scan exactly how a tumor will behave until you start to remove it. It might be hard or soft, dry or bloody…” Prior to diagnosis, the most common symptom patients experience is headaches– which are uncharacteristic for them in daily life.

In order for a brain surgeon to acquire experience, he needs to actually practice on real patients, and make mistakes. Even when the surgeon does everything right in treating the patient, something could go wrong, anyway. In addition to stressing over his patients, the author had to deal with bureaucracies. But regardless of the healthcare system an industrialized country has (government-run, commercial, or a combination thereof), it’s comprised of: “… government targets, self-serving politicians, tabloid headlines, scandals, deadlines, civil servants, clinical cock-ups, financial crises, patient press-groups, trade unions, litigation, complaints and self-important doctors…”

Read the book to learn of the author’s trials and tribulations in treating patients not only in Britain, but also in Kiev.

The second Bonus Book of the Week is “Since Yesterday, The 1930’s in America, September 3, 1929 – September 3, 1939” by Frederick Lewis Allen, originally published in 1939.

“To hear angry Republicans and angry Democrats talking, one would have supposed the contest was between a tyrant determined to destroy private property, ambition, the Constitution, democracy, and civilization itself; and a dupe of Wall Street who would introduce a fascist dictatorship.” Such was the nature of the 1936 presidential election in America.

Clearly, propagandizing hasn’t changed in ninety years. Presidents want to have it both ways: they take credit for all positive economic news, and blame their predecessors for all negative economic news.

At the dawn of the 1930’s when the economy went south, Americans held very strong opinions about their political preferences, heavily influenced by the propaganda they read in newspapers and magazines. Not much has changed, except that now they can force their opinions on the world at the speed of light. Immediately they think they’re experts from watching the idiot box and/or reading the Web; the attitude is, “I’m not an attorney, not a doctor, and not an economist, but I play one on social media, because I can, and because I’m right.”

Other similarities between the Depression Era and recent times include:

  • Golf was a popular businessman’s game.
  • Fans of professional sports worshipped their star players, like in baseball, tennis, and golf– Babe Ruth, Bill Tilden, Bobby Jones, etc.
  • Automation due to new technologies (such as steam, gasoline and electric power, inventions and farm machinery) and urbanization were eliminating jobs in industry, agriculture, and textiles more than offshoring ever would.
  • Listeners worshipped a pundit on the radio– Father Coughlin– a hate-spewing demagogue from the Detroit suburb of Royal Oak (but he broadcast on only one station, not a national network, so he became nationally known only in his later years in the 1930’s).
  • All players in the banking industry were financially interdependent so when the system collapsed, they all fell like dominoes. Then-president Hoover established the Reconstruction Finance Corporation in order to bail out only his corporate cronies, as he didn’t believe in stimulus money for individuals.
  • In summer 1932, Howard Scott and his inscrutable theory of Technocracy was a fad. The author wrote, “Yet in the meantime it had offered an object-lesson in the readiness of the American people for a new messiah and a new credo” just as “Wikinomics” (see the post in this blog) was supposed to be the next big thing.
  • The political agenda behind COVID has forced Americans to relax online similar to the way the Depression brought on: the five-day (rather than six-day) workweek, construction of sports and recreational areas of all kinds, and provision for transportation to get to them.
  • Beginning in late 1936 into 1937, in the Midwestern and Northeastern United States, a bunch of rivers overflowed their banks due to humans’ misuse of land; in the third week of September 1938, 682 people died in an unexpected hurricane that destroyed regions unprepared for flooding, in New England and Mid-Atlantic states.
  • Between 1931 and 1936, there were actually more people leaving the U.S. than coming in, for various reasons, and the U.S. birth rate was slowing.
  • Ultra-rich Americans who refused to face inconvenient facts were the ones who hated FDR when he was elected president.

Proposals distorted in propaganda that played out in the Depression Era, whose outcomes are yet to be seen in recent times, included:

  • In the 1930’s, in order to allow men to keep their dignity, the government put them to work instead of giving them handouts. In their first few years of existence, FDR’s alphabet soup of mostly federal (rather than state or local level) jobs and programs was nonpartisan. However, eventually, the Democrats provided maximum funding as election day approached. On the whole, the financial relief worked well, except in Pennsylvania, where there was gross misuse of funds.
  • FDR’s policies sought to mitigate environmental damage done by people, and prevent future natural disasters with his introduction of the Civilian Conservation Corps, Public Works Administration, and his signing of the Taylor Grazing Act into law. These kinds of measures simply require political backing and money– the sooner a sufficient amount of both are thrown at them, the sooner the problems will be solved!
  • In February 1938, FDR floated a proposal to make seventy years the mandatory retirement age of all federal judges– including U.S. Supreme Court justices– and increase the number of justices from nine to fifteen. That unpopular proposal hurt FDR’s reputation.

In 1935, FDR introduced economic change to the country by instituting the Social Security system, financial assistance only for Americans 65 and older. In 1965, LBJ introduced economic change to the country by instituting the Medicare and Medicaid systems, healthcare funding for only those Americans who are poor and / or 65 and older.

In the future, the United States government might be introducing a better overall system of healthcare funding for all Americans of all ages and income levels (which is obviously much more complex than any system that has ever been created before in this country, so it’s not going to be perfect the first time around). In order to pay for the improved system, the government will likely have to raise taxes on the rich.

Along these lines, economics 101 says a nation’s economy is strongest when it has a healthy, well-educated workforce.

Whether deliberately or not, the political agenda revolving around COVID has rewarded education-software makers by closing schools across the country. So ironically, by allowing the software makers to get richer (because, presumably, their higher taxes will be paying for the improved healthcare-funding system), the software makers are dictating education policy. So in the long run, the nation will have a healthy, poorly educated workforce!

Anyway, read the book to learn much more about the tenor of the times in 1930’s America, culturally, politically and economically.

Pertinent Post

“P” post.

Present pandemic’s politics produced:

  • propaganda
  • president-promotion
  • provisions-portioning predicaments
  • panic
  • profiteering
  • paranoia
  • patronage pigs
  • pissed, persecuted people
  • poseurs
  • puerile politicians (petty power plays)
  • pained physicians
  • problematic prescriptions
  • pressured paramedics
  • pestered practices
  • poor populations
  • plus, predictably:

POPPYCOCK.