Modern Monetary Theory Grapples with People Actually Paying Attention to It
Modern Monetary Theory Grapples with People Actually Paying Attention to It
Looking ahead, MMT advocates hope to grow their movement through grassroots organizing. One example they pointed to was Fed Up, a national campaign launched in 2015, whereby low-income workers and...
Looking ahead, MMT advocates hope to grow their movement through grassroots organizing. One example they pointed to was Fed Up, a national campaign launched in 2015, whereby low-income workers and union members pressured the Federal Reserve to not hike interest rates, a rare instance of popular pressure being applied to monetary policy. Fed Up made the case that there was no inflation pressure forcing them to raise rates and that doing so would suppress their already low wages.
Read the full article here.
Main Street Takes on Monetary Policy, Round 2
Washington Post - November 14, by Ylan Mui - Main Street plans to take on the maestros of monetary policy today, armed with a list of demands aimed at prolonging central bank stimulus and...
Washington Post - November 14, by Ylan Mui - Main Street plans to take on the maestros of monetary policy today, armed with a list of demands aimed at prolonging central bank stimulus and increasing public input.
The campaign has been dubbed “Fed Up” and is made up of 20 community and labor groups, ranging from the Missourians Organizing for Reform and Empowerment to the behemoth AFL-CIO. The groups plans to demonstrate in front of the Federal Reserve’s august headquarters on Constitution Avenue on Friday morning. They are slated to present their proposals to Federal Reserve Chair Janet Yellen in a meeting scheduled for this afternoon.
“The point is to start a public conversation and include more voices in it,” said Ady Barkan, staff attorney at the Center for Popular Democracy, one of the groups leading the effort.
Still, debates over macroeconomics can qickly turn wonky. Among the campaign’s requests are for the Fed to reconsider its 2 percent target for inflation and for the central bank to start purchasing municipal bonds to jumpstart local infrastructure projects -- issues that typically don’t come up at the water cooler.
But several other proposals strike a more populist note. The groups says the Fed should wait until there is a significant reduction in the gap in unemployment rate of black and white workers, as well as an increase in the number of women in the force, before it decides to raise interest rates. The coalition also wants the Fed to conduct research on the impact of progressive economic policy proposals -- namely raising the minimum wage and requiring paid sick leave.
Finally, it is seeking time for public comment during the central bank’s policy meetings and a more inclusive process for appointing officials at the Fed’s regional banks.
In some ways, the campaign’s effort coincides with the central bank’s goals. Under former Chairman Ben S. Bernanke, the Fed dramatically increased transparency. It now holds regular press conferences, publishes detailed economic forecasts and attempts to communicate its policy positions.
Current Fed Chair Janet Yellen has made a particular effort to connect monetary policy to Main Street. She recounted the personal stories of struggling workers during a speech in Chicago early this year and visited a jobs training center in Boston last month. She has cited the elevated unemployment rate for African Americans several times as evidence that the nation’s broader economic recovery may not be deeply rooted.
“The recovery still feels like a recession to many Americans, and it also looks that way in some economic statistics,” Yellen said in her Chicago speech.
The Fed also already produces a vast array of research on domestic policy issues. In fact, progressive groups - including at least one involved in the campaign -- frequently cite a study by the Chicago Fed as evidence that raising the minimum wage can boost incomes and spur consumer spending.
Barkan said the campaign is intended to be a counterpoint to the vocal minority of Fed officials who have been calling for the central bank to raise rates soon in response to the improving economy. But even officials counseling patience are not going far enough, Barkan said.
“There’s a lot in there that the Fed has yet to do,” he said. “We want them to be bold and ambitious in their effort to improve the economy.”
Friday will mark the second time demonstrators have confronted Fed officials. This summer, the group traveled to the Kansas City Fed’s annual conference in Jackson Hole, Wyo., an invite-only affair that draws some of the world’s most powerful economic policymakers. The protest was the first time since the 1980s that there has been a grassroots response to monetary policy decisions.
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Hundreds of New Yorkers gather at MOMA PS1 to raise money for Puerto Rico
Hundreds of New Yorkers gather at MOMA PS1 to raise money for Puerto Rico
The movement to help hurricane ravaged Puerto Rico continues. Hundreds of New Yorkers attended a fundraiser at MOMA PS1 in Long Island City Wednesday night.
According to organizers, all the...
The movement to help hurricane ravaged Puerto Rico continues. Hundreds of New Yorkers attended a fundraiser at MOMA PS1 in Long Island City Wednesday night.
According to organizers, all the money raised for the Hurricane Maria Community Relief and Recovery Fund will go towards relief work and supplies on the island.
Watch the video and read the article here.
Escuelas Chárter: Encuesta Cuestiona su Función y Pone la Lupa en sus Finanzas
Miami Diario - March 4, 2015 by Donatella Ungredda - Existe una preocupación creciente entre padres, representantes, maestros y contribuyentes a nivel regional y nacional con relación al...
Miami Diario - March 4, 2015 by Donatella Ungredda - Existe una preocupación creciente entre padres, representantes, maestros y contribuyentes a nivel regional y nacional con relación al rendimiento y cumplimiento de los objetivos educativos establecidos para las escuelas chárter. Las escuelas chárter son una forma más libre de educación pública o privada. Usualmente son fundadas por padres o maestros, manejadas por organizaciones con y sin fines de lucro; funcionan independientemente del sistema de educación pública y hacen hincapié en métodos y aéreas educativas más específicas. Normalmente atienden a un universo mucho más variado de alumnos y deben cubrir los requerimientos de educación especial de los mismos. El tamaño de las clases es más pequeño y en general se espera que tengan un nivel de rendimiento superior al promedio ya que, en teoría, al ser más libres de ensayar nuevas metodologías los alumnos encuentran más oportunidades para explotar sus capacidades. Estas instituciones conviven con las escuelas públicas que están sometidas a los estándares y regulaciones del Departamento de Educación y se mantienen con fondos públicos así como recolección de fondos privados. El crecimiento del número de escuelas chárter a nivel nacional se ha duplicado tres veces desde su implementación en el año 2000, según Donald Cohen, Director Ejecutivo de la organización no gubernamental In The Public Interest (ITPI). Cohen, junto a Kyle Serrette del Centro para la Democracia Popular (Center for Popular Democracy, CPD), revelaron los resultados de una reciente encuesta realizada entre un universo de 1000 votantes: la gran mayoría apoya la existencia de las escuelas chárter, pero asimismo exige una más exhaustiva supervisión del funcionamiento de estas instituciones, así como la realización de auditorías en sus finanzas, dados los pobres resultados académicos y la falta de transparencia en su administración. "Las escuelas chárter han estado presentes desde hace 20 años, y su funcionamiento se implementó para servir de ejemplo, marco referencial para la reforma del sistema educativo estadounidense. Nuestras investigaciones nos han revelado que 75% de las escuelas chárter han tenido un rendimiento igual o peor que las escuelas públicas para las cuales se supone debían servir como modelo de reforma. Este es un síntoma de falta de supervisión de parte de los responsables", afirmó Serrette "Lo que estamos tratando de lograr es poner un alto al crecimiento momentáneamente y asegurarnos que estamos obteniendo unos resultados educativos idóneos. Recordemos que estas escuelas se financian con fondos públicos y tomando en cuenta las dificultades que enfrenta la nación, debemos hacer una pausa y asegurarnos que tenemos una serie de medidas legales robustas para la protección de los alumnos, maestros y contribuyentes", agregó Cohen. ITPI y CPD consultaron a los encuestados acerca de una serie de 11 propuestas para la mejor supervisión de las escuelas chárter y su administración y en base a los resultados obtenidos dieron a conocer su Agenda de Responsabilidad de las Escuelas Chárter. Las 11 propuestas son abarcadas por 4 puntos principales: · Transparencia y responsabilidad, · Protección a las escuelas del vecindario, · Protección de los fondos aportados por los contribuyentes, · Educación de alta calidad para cada alumno.
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A Guide To Rallies & Actions Planned For May Day 2017
A Guide To Rallies & Actions Planned For May Day 2017
On May Day 2006, hundreds of thousands of immigrants participated in actions across the country, skipping work and school in New York, Chicago and Los Angeles to protest a bill that would have...
On May Day 2006, hundreds of thousands of immigrants participated in actions across the country, skipping work and school in New York, Chicago and Los Angeles to protest a bill that would have made it a felony to be in the United States without documentation. The Bush-era legislation ultimately floundered. May Day, rooted in national protests for an eight-hour workday, solidified its status as a day for immigrant action.
"Those 2006 demonstrations were huge," said Joshua Freeman, a history and labor professor at CUNY. "It was a little bit of an earthquake in several ways. Never before had so many immigrants publicly presented themselves to support their rights."
Read full article here.
Allentown protesters take to streets to urge immigration reform
The Express-Times – October 21, 2013, by Colin McEvoy -
Hilda Gonzalez, who moved from Mexico to Allentown 12 years ago, was handed a speakerphone tonight and asked to tell an assembled...
The Express-Times – October 21, 2013, by Colin McEvoy -
Hilda Gonzalez, who moved from Mexico to Allentown 12 years ago, was handed a speakerphone tonight and asked to tell an assembled crowd of 50 people her personal story.
But when the time came, Gonzalez said she couldn’t bring herself to do it because her own experiences felt so small compared to the roughly 11 million undocumented immigrants living in America.
“These are immigrants who have experienced the fear of being separated from their families,” she said. “Immigrants who have many times had to duck their heads. Immigrants who aren’t treated with dignity.”
Gonzalez was one of about 50 people who took to the streets of Allentown tonight in protest, urging their legislators to take action on immigration reform now that the government shutdown has been resolved.
“I think it’s well overdue that we as a nation do the right thing,” said Guillermo Lopez Jr., of Bethlehem, as the group marched on Hamilton Street. “No human is illegal. That is the truth of this land.”
With the debt ceiling crisis temporarily averted, President Barack Obama has urged Congress to pass a comprehensive immigration reform bill by year’s end.
The Senate approved such a bill in June that included investments in border security and a path to citizenship for millions of undocumented immigrants. But the House did not take action on such a bill and many in Congress have expressed skepticism that action will be taken now.
The Allentown protesters held such signs that read “We yearn to breathe free” and “We bleed red, white and blue,” and chanted phrases such as “Undocumented, unafraid” and “No papers, no fear.”
They carried candles and flashlights, which symbolized the hope that reform could bring immigrants out from the darkness, according to organizer Max Cohen, of the Center for Popular Democracy, which organized the event in conjunction with Communidad Unida de Lehigh Valley.
A similar rally will be held Tuesday in Easton, urging support for a resolution Easton City Council is scheduled to consider urging Congress to enact immigration reform.
That rally, run by Organizing for Action, will be held 5 p.m. in Centre Square, with the city council meeting starting at 6 p.m.
The Allentown protesters voiced particular hope that U.S. Rep. Charlie Dent, who they called a “level-headed, moderate Republican voice in Congress,” would be an outspoken voice on the issue.
Dent previously said the Senate’s bill had major problems, saying the border security elements in particular needed strengthening.
“We will work on practical solutions that respect the rule of law while responsibly dealing with the 11 million people, slightly less than the population of the Commonwealth of Pennsylvania, who are in this country unlawfully,” Dent said in July.
But the protesters said they hope Congress will move quickly before the midterm elections become too much of a distraction.
Among the participants was Adrian Shanker, president of Equality Pennsylvania, who said there are about 1 million gay, bisexual or transgender immigrants in the United States, and about one-third are undocumented.
“We can’t be equal until we are all equal,” Shanker said. “Eleven million people live in the shadows. That is not freedom.”
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Advocacy group calls for more oversight of California charter school spending
Advocacy group calls for more oversight of California charter school spending
A lack of transparency and inadequate oversight can set up the potential for waste, fraud, and abuse. A 2015 report from the Alliance to Reclaim Our Schools and the Center for Popular Democracy...
A lack of transparency and inadequate oversight can set up the potential for waste, fraud, and abuse. A 2015 report from the Alliance to Reclaim Our Schools and the Center for Popular Democracy, entitled “The Tip of the Iceberg,” reported over $200 million lost to fraud, corruption and mismanagement in charter schools.
Read the full article here.
Diverse, Radical and Ready to Resist: Meet the First in the New Wave of Local Progressive Officials
Diverse, Radical and Ready to Resist: Meet the First in the New Wave of Local Progressive Officials
At Local Progress’s 150-person meet-up, left-leaning politicians from around the country share plans to build rebel cities.
...
At Local Progress’s 150-person meet-up, left-leaning politicians from around the country share plans to build rebel cities.
Read the full article here.
Video: Mas de 30,000 empleados de Toys “R” Us piden su Indemnizacion
Video: Mas de 30,000 empleados de Toys “R” Us piden su Indemnizacion
Esta demanda se está llevando a cabo gracias a una campaña que cuenta con el apoyo del grupo activista Center for Popular Democracy. Más de 50,000 personas han firmado una petición reclamando a la...
Esta demanda se está llevando a cabo gracias a una campaña que cuenta con el apoyo del grupo activista Center for Popular Democracy. Más de 50,000 personas han firmado una petición reclamando a la compañía este derecho monetario.
Mira el video aquí.
Blowback for SEC from whistleblower
Blowback for SEC from whistleblower
BLOWBACK FOR SEC FROM WHISTLEBLOWER: A whistleblower is calling foul on the SEC. Our Patrick Temple-West writes: “A whistleblower who said he is due an $8.25 million reward from the Securities and...
BLOWBACK FOR SEC FROM WHISTLEBLOWER: A whistleblower is calling foul on the SEC. Our Patrick Temple-West writes: “A whistleblower who said he is due an $8.25 million reward from the Securities and Exchange Commission said he is refusing the cash because of concerns that the agency failed to prosecute top executives at Deutsche Bank. … Ben-Artzi said he was fired after raising concerns with the way Deutsche was valuing its derivatives. In its settlement with Deutsche, the SEC alleged the company overvalued its derivatives holdings during the worst days of the 2008 financial crisis. … ‘Although I need the money now more than ever, I will not join the looting of the very people I was hired to protect,’” Ben-Artzi wrote in The Financial Times. A Deutsche Bank spokesman declined to comment.
Andrew Ceresney, the SEC's current enforcement director: “We brought all of the charges supported by the evidence and the law, which were unanimously approved by the Commission.”
TGIF! — Happy Friday. You’ve almost made it through the week without the incomparable Morning Money Ben. The Pro Financial Services team will be filling in again for him next week, so please send tips to Financial Services editor Mark McQuillan: mmcquillan@politico.com. Follow me on Twitter @vtg2.
THIS MORNING ON POLITICO PRO FINANCIAL SERVICES – Patrick Temple-West on CFTC charges of swaps-reporting violations against Deutsche Bank -- and to get Morning Money every day before 6 a.m. -- please contact Pro Services at (703) 341-4600 or info@politicopro.com.
FED UP GOING TO JACKSON — The Fed Up coalition will hold a series of events in Jackson, Wyo., next week, including an on-the-record meeting with Kansas City Fed President Esther George on Aug. 25, the coalition announced. Other Fed presidents and governors will also be attending the discussion. The docket includes a press conference and a demonstration, where members of the coalition (a marriage between unions and other community organizations) will “share their personal experiences seeking good-paying jobs in this economy and discuss the importance of diversity in Fed leadership for promoting high-quality governance and public policy.”
Don’t miss: Fed Up will also unveil a report outlining one of its central ideas: how to make the Fed a fully public institution. Its authors are Andrew Levin of Dartmouth and Valerie Wilson of the Economic Policy Institute.
Speaking of the Fed conference, three Democratic lawmakers on Thursday wrote to Fed Chair Janet Yellen, thanking her for the central bank’s focus on inequality and the impact of the economic recovery on neglected communities. “We are concerned, however, that some of your work may be undercut by the failure of all Federal Reserve entities to follow your lead,” they wrote, expressing worries that workers of color might have a harder time being heard at the Jackson Hole conference. Read the letter from Reps. John Conyers, Frederica Wilson and Marcy Kaptur here.
AIR FORCE ONE SCHEDULED FOR ASIA PIVOT — President Barack Obama is heading off to China early next month where he will participate in the G20 Leaders’ Summit, the White House announced Thursday. Obama will discuss the full gamut of international economic issues and hold “in-depth,” one-on-one meetings with Chinese President Xi Jinping in Hangzhou.
MM prediction: Foreign exchange rate policies, the U.S.-China bilateral investment treaty, cyber issues and treatment of U.S. businesses abroad are just some of the hot financial topics that might be broached in those bilateral meetings.
The stop in China will be followed by a trip to Laos for the U.S.-ASEAN Summit and the East Asia Summit. The full trip, which comes amid efforts by the president to push the Trans-Pacific Partnership trade deal despite political headwinds from both sides of the aisle, will run from Sept. 2-9.
TRUMP A MERCER-NARY — From WSJ's Rebecca Ballhaus: "Republican presidential candidate Donald Trump’s latest staff shakeup reflects the growing behind-the-scenes influence of a wealthy backer relatively new in the nominee’s orbit: billionaire hedge-fund manager Robert Mercer. … He and his daughter, Rebekah, had recommended both Breitbart News chairman Steve Bannon and Republican pollster Kellyanne Conway, who already worked for the campaign, according to people familiar with the matter. The Mercers met privately with Mr. Trump at a fundraiser last weekend at the East Hampton, N.Y., home of New York Jets owner Woody Johnson, according to a person at the event. … Top Trump donors said the staff reshuffling showed the Mercers’ widening role in the campaign." The article is here.
END OF AN ERA — Citigroup will have no more dedicated proprietary traders once Anna Raytcheva leaves at the end of this month, the WSJ reports. Raytcheva and the rest of her kind have been rendered increasingly obsolete at Citi and other large banks because of the Volcker rule, which banned most types of trades made by banks on their own behalf. She will be opening her own hedge fund next year, the veteran trader told WSJ.
WSJ’s Christina Rexrode writes: “The firm’s trading roots go back to Salomon Brothers, whose 1980s trading exploits were featured in the book ‘Liar’s Poker.’ That firm was ultimately folded into Citigroup, whose billions of dollars in trading losses during the financial crisis prompted repeated taxpayer-led bailouts. … Citigroup and other large banks including Goldman Sachs Group Inc. and Morgan Stanley had multiple desks dedicated to the lucrative but risky practice before the financial crisis. But … to comply with the [Volcker] rule, Citigroup sold or spun off businesses, including an emerging-markets hedge fund and a private-equity unit. It also closed down Citi Principal Strategies, its dedicated proprietary trading desk, in January 2012.” Check out the story here.
FANNIE AND FREDDIE ALL DRESSED UP WITH NOWHERE TO GO — Per Bloomberg’s Joe Light: “Earth-movers are laying the foundations of a shiny new headquarters for Fannie Mae, the bailed-out giant of American mortgages. But the sleek design, replete with glass sky bridges, belies a sober reality: Fannie Mae and its cousin, Freddie Mac, are once again headed for trouble. … On Jan. 1, 2018, the two government-sponsored enterprises will officially run out of capital under the current terms of their bailout. After that, any losses would be shouldered by taxpayers. Granted, few people are predicting a disaster like the one in 2008, when the GSEs had to be thrown a $187.5 billion federal lifeline. But eight years later, people still don’t agree on what to do with these wards of the state.” Click here to read more.
ITALIAN BANKERS FACING SCRUTINY — Italian bank Monte dei Paschi di Siena is in the news once again, this time because its CEO Fabrizio Viola and former Chairman Alessandro Profumo are being investigated for alleged false accounting and market manipulation, Reuters reports. The investigation comes just a couple of weeks after MPS announced that, with the help of JPMorgan Chase and Mediobanca, it will repackage 27-billion-Euros-worth of bad debt into securities worth a total net amount of 9.2 billion Euros.
From Reuters’ Silvia Ognibene: “The investigation, which started in 2015 following complaints filed by small shareholders and consumer associations, comes as the Tuscan bank prepares to launch a 5 billion Euro ($6 billion) stock sale after emerging as the weakest bank in Europe in industry stress tests in July. A spokesman for Monte dei Paschi said the decision to investigate Viola and Profumo followed a proposal by two shareholders to seek damages from the two executives which was rejected by other shareholders at an April meeting. … Being placed under investigation in Italy does not imply guilt and does not automatically lead to charges being laid.” More here.
A CLOSER LOOK AT LENDING CLUB — Bloomberg’s Max Chafkin on shady loans facilitated by Lending Club: “[Bryan] Sims decided to take a look at the hundreds of loans he’d invested in, arranging them in a spreadsheet … Two loans caught his eye. Both had been issued to individuals with the same employer in the same small town. So far, so coincidental. But looking deeper, Sims found that the salaries were nearly identical. Both borrowers had opened their first line of credit in the same month. This, Sims realized, is the same dude. It wasn’t a borrower who’d paid off one loan and happily returned for a second. It was one person with two active loans, and Lending Club was treating them as completely unrelated, charging wildly different interest rates. The borrower was paying about 15 percent interest on one loan of about $15,000; on the other, he was paying 9 percent on twice the principal. That meant the investors who held only the second loan were leaving money on the table. And Lending Club didn’t seem to be doing anything to help them.” Read the rest here.
‘LIKE’ IT OR NOT, FED’S ON FACEBOOK — Rounding out its social media presence, the Fed Board of Governors launched a Facebook page on Thursday. The central bank is already on Twitter, YouTube, LinkedIn, and — who knew — Flickr. Find its page here.
By VICTORIA GUIDA
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3 days ago
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