Tag Archives: Reform

Biden sets out a $2 trillion US infrastructure plan to be funded by corporate tax hike

A once in a generation investment. That`s what president Biden called his $2 billion program of infrastructure spending. Biden said it will create millions of jobs while giving roads, utilities and American industry a badly needed upgrade.

But somebody have to pay for it, but who? «We the people» of course. The corporations. And there is one simple way to do that: TAX. Minimum wages are rising. So are the taxes, and what is that suppose to mean? It means the inflation is coming.

«I`m proposing a plan for the nation that rewards work. Not just rewares wealth. It builds a fair economy that gives everybody a chance to succeed. And it`s going to create the strongest, most resilient innovative economy in the world,» Biden said in a speech a few days ago.

The Biden administration plans on modernizing 32,000 kim of highway, 500,000 charging points for electric autos, and bringing back key industries such as chip production back to the U.S. Chips are still mostly produced in Asia. (Bringing back chip industries sounds like a Trump strategy).

The project is expected to take eight years to complete, and some of the funding will come from a corporate tax hike from 21 to 28 percent. Biden`s supporters say the program will create millions of well.paid jobs, and stregthen America`s ability to compete with China.

2 trillion dollars is a lot of money and there is no doubt that this program will boost the semiconductor industry, but also the EV industry.

Biden said he is not worried about the U.S economy at all. At the same time, Janet Yellen makes a push for global minimum corporate tax. She doesn`t want a race to the bottom, and warns of dangers to the American economy if U.S acts alone in raising corporate tax rates.

When Obama hiked corporate taxes, businesses fled. One of the largest corporations in the world; Apple, ended up in Irland thanks to a great offshore plan, but Trump were bringing the company back to the U.S.

It speaks for itself. The more money corporations pay in tax, the less competetive they are on the world stage.

The time we are living in today, is similar to the 30`s, and Biden`s infrastructure plan is often comparead to Franklin D. Roosevelt`s «New deal».

President Franklin D. Roosevelt

The New Deal was a series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States between 1933 and 1939.

The programs focused on what historians refer to as the «3 Rs»; relief for the unemployed and poor, recovery of the economy back to normal levels, and reform of the financial system to prevent a repeat depression ( the stock market crached in 1929).

The first deal (1933 – 1934) dealt with the pressing banking crisis through the Emergency Banking Act and the 1933 Banking Act. The Federal Emergency Relief Administration provided $500 million ($9,88 billion today) for relieft operations by states and cities, while the short-lived CWA gave locals money to operate Make-work projects in 1933 – 1934.

The Securities Act of 1933 was enacted to prevent a repeated stock market crash.

The second New Deal in 1935 – 1936 included the National Labor Relations Act to protect labor organizing, the Works Progress Administration relief program (which made the federal government the largest employer in the nation), the the Social Security Act and new programs to aid tenant farmers and migrant workers.

The final major items of New Deal legislation were the creation of the United States Housing Authority and the FSA, which both occurred in 1937, and the Fair Labor Standards Act of 1938, which set maximum hours and minimum wages for most categories of workers.

Keep in mind that all this happened a few years before the World War II occurred.

The economic downturn of 1937 – 1938 and the bitter split between the American Federation of Labor and Congress of Industrial Organizations labor unions led to major Republican gains in Congress in 1938.

Conservative Republicans and Democratas in Congress joined the informal conservative coalition. By 1942 – 1943, they shut down relief programs such as the WPA and the CCC and blocked major liberal proposals.

Nonetheless, Roosevelt turned his attention to the war effort and won reelection in 1940 – 1944. Furthermore, the Supreme Court declared the NRA and the first version of the Agricultural Adjustment Act unconstitutional, but the AAA was rewritten and then upheld.

Republican president Dwight.D. Eisenhower (1953 – 1961) left the New Deal largely intact, even expanding it in some areas. In the 1960`s, Lydon B. Johnson`s Great Society used the New Deal as inpiration for a dramatic expansion of liberal programs, which Republican Richard Nixon generally retained.

However, after 1974 the call for deregulation of the economy gained bipartisan support. The New Deal regulation of banking (Glass-Steagall Act) lasted until it was suspended in the 1990`s.

From 1929 to 1933 manufacturing output decreased by one third, which economist Milton Friedman called the Great Contraction. Prices fell by 20%, causing deflation that made repaying debts much harder.

Unemployment rate from 1910 to 1960

Unemployment in the United States increased from 4% to 25%. additionally, one-third of all employed persons were downgraded to working part-time on much smaller paychecks. In the aggregate, almost 50% of the nation`s work-power was going unused.

Before the New Deal, deposits at banks were not insured. When thousands of banks closed, depositors lost their savings as at that time there was no national safety net, no public unemployment insurance and no Social Security.

The depression had devastated the nation. As Roosevelt took the oath of office at noon on March 4, 1933, all state governors had authorized bank holidays or restricted withdrawals. Many Americans had little or no access to their bank accounts.

Farm income had fallen by over 50% since 1929 (stock market crash). An estimated 844,000 non-farm mortgages had been foreclosed between 1930 – 1933, out of five million in all. Political and business leaders feared revolution and anarchy.

Real GDP from 1910 to 1960

In 1935, Roosevelt called for a tax program called the Wealth Tax Act (Revenue Act of 1935) to redistribute wealth. The bill imposed an income tax of 79% on incomes over $5 million. It raised the bitterness of the rich who called Roosevelt «a traitor to his class» and the wealthy tax act a «soak the rich tax».

The Roosevelt administration was under assault during Roosevelt`s second term,which presided over a new dip in the Great Depression in the fall of 1937 that continued through most of 1938. Production and profits declined sharply.

Unemployment jumped from 14,3% in May of 1937 to 19% in June 1938. The downturn was perhaps due to nothing more than the familiar rhythms of the business cycle, but until 1937 Roosevelt had claimed responsibility for the excellent economic performance.

That backfired in the recession and the heated political atmosphere of 1937.

Keynes did not think that the New Deal under Roosevelt ended the Great Depression: «It is, it seems, politically impossible for a capitalistic democracy to organize expenditure on the scale necessary to make the grand experiments which would prove my case, except in war conditions.»

Worldwide, the Great Depression had the most profound impact in Germany and the United States. In both countries the pressure to reform and the perception of the economic crisis were strikingly similar.

When Hitler came to power he was faced with exactly the same task that faced Roosevelt, overcoming mass unemployment and the global Depression. The political responses to the crisis were essensially different; while American democracy remained strong, Germany replaced democracy with fascism, a Nazi dictatorship.

The initial perception of the New Deal was mixed. On the one hand, the eyes of the world were upon the United States because many American and European democrats saw in Roosevelt`s reform program a positive counterweight to the seductive powers of the two great alternative systems, communism and fascism.

As the historian Isaiah Berlin wrote in 1955: «The only light in the darkness was the administration of Mr. Roosevelt and the New Deal in the United States».

By contrast, enemies of the New Deal sometimes called it «fascist», but they meant very different things. Communists denounced the New Deal in 1933 and 1934 as fascist in the sence that it was under the control of big business. They deopped that line of thought when Stalin switched to the «Popular Front» plan of cooperation with liberals.

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shinybull.com. The author has made every effort to ensure the accuracy of the information provided; however, neither Shinybull.com nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities, or other financial instruments. Shinybull.com and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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England broke away from the Pope and the Roman Catholic Church 467 years ago and now they did it again with the European Union

MEP`s (Members og the European Parlieament) voted overwhelmingly to approve the withdrawal agreement today. MEP`s ratified the Brexit Withdrawel Agreement by 621 votes to 49 following an emotional debate in Brussels today.

The UK will leave the EU on Friday night this week, and Nigel Farage is the happiest man in the world right now.

Nigel Farage had a speech in the parliament today and said the EU is anti-democratic, while most British MEP`s who spoke expressed deep sadness about Brexit. Many of them predicted that the UK will return to EU some times in the future.

Brexit, Exit, United Kingdom, England
Picture: The UK out of the EU

The Brexit party leader said this earlier today: «I`m hoping this begins the end of this project. It`s a bad project, it isn`t just undemocratic it`s anti-democratic…..

There is a historic battle going on now across the West. In Europe, America and elswhere. It is globalism against populism. And you may loathe populism, but I`ll tell you a funny thing – it`s becoming very popular.

And it has great benefits. No more financial contributions, no more European Court of Justice, no more common fisheries policy, no more being talked down to, no more being bullied, no more Guy Verhofstadt.»

Guy Verhofstadt is a Belgian politician who was the leader of the Allicance of Liberals and Democrats for Europe from 2009 to 2019. He has been a MEP from Belgium since 2009. He was also a Prime Minister of Beligium from 1999 to 2008.

He led the Allicance of Liberals and Democrats for Europe Group (ALDE) from 2009 to 2019, and founded the inter-parliamentarian federalist Spinelli Group. He has been the European Parliament`s Brexit Coordinator and Chair of the Brexit Steering Group since 2016.

Verhofstadt is an advocate for federalisation of the European Union, and earlier today he said this; «What is in fact threatening Britain`s sovereignty most – the rules of our single market or the fact that tomorrow they may be planting Chinese 5G masts in the British islands?…..

It is sad to see a country leaving that twice liberated us, has twice given its blood to liberate Europe…

In the last couple of days I have received hundreds of mails from British citizens saying they desperately want to stay or return….. So this vote is not an adieu, this vote, in my opinion, is only an au revoir.»

Verhofstadt and Farage know the history of the United Kingdom. What`s happening today is similar to the era of Henry VIII who broke England`s ties with the Roman Catholic Church, becoming the sole head of the English Church. It was time for the English Reformation.

The English Reformation was a series of events in 16th – century England by which the Church of England broke away from the authority of the Pope and the Roman Catholic Church.

These events were, in part, associated with the wider European Protestant Reformation, a religious and political movement that affected the practice of Christianity across western and central Europe.

Caused included the invention of the printing press and increased circulation of the Bible, and the transmission of new knowledge and ideas among scholars, the upper and middle classes and readers in general.

However, the various phases of the English Reformation, which also covered Wales and Ireland, were largely driven by changes in government policy, to which public opinion gradually accommodated itself.

The English Reformation was at the outset more of a political affair than a theological dispute. The reality of political differences between Rome and England allowed growing theological disputes to come to the force.

Until the break with Rome, it was the Pope and general councils of the church that declared doctrine. Church law was governed by canon law with final jurisdiction in Rome. Church taxes were paid straight to Rome, and the Pope had the final word in the appointment of bishops.

The break with Rome was effected by a series of acts of Parliament passed between 1532 and 1534, among the 1534 Act of Supremacy, which declared that Henry was the «Supreme Head on earth of the Church of England».

But this title was renounced by Mary I in 1553. Under Mary, the whole process was reversed and the Church of England was again placed under papal jurisdiction. Soon after, Elizabeth reintroduced the Protestant faith but in a more moderate manner.

The structure and theology of the church was a matter of fierce dispute for generations.

Bishop, Pope, Catholic, People, Man, Line Art, Medieval
Picture: The Pope

The violent aspect of these disputes, manifested in the English Civil Wars, ended when the last Roman Catholic monarch, James II was desposed, and Parliament asked William III and Mary II to rule jointly in conjunction with the English Bill of Rights in 1688 (in the «Glorious Revolution»), from which emerged a church polity with an establshed church and a number of non-conformist churches whose members at first suffered various civil disabilities that were removed ove time.

The legacy of the previous Roman Catholic heritage and establishment as the state church remained an issue for some time and still exists today. A Substantial but dwindling minority from the late 16th to early 19th centuries remained Roman Catholic in England. Their chuch organisation remained illegal until the Relief Act of 1829.

The Reformation was a clash of two opposed schemes of salvation. The Catholic Church taught that the contrite person could cooperate with God towards their salvation by performing good works. Medieval Catholic worship was centered on the Mass, the church’s offering of the sacrifice of Christ’s body and blood.

The Mass was also an offering of prayer by which the living could help souls in purgatory. Protestants taught that fallen humanity was helpless and under condemnation until gien the grace of God trhough faith.

They believed the Chatholic emphasis on purgatory was an obstacle to true faith in God and the identification of the Mass with Christ’s sacrifice a blasphemous perversion of the Eucharist. In place of the Mass, Protestant worship was centered on the Bible, to them the only road to faith in Christ, either read or presented in sermons.

More calls for reform came from Renaissance humanists, such as Erasmus. Humanists downplayed the role of rites and ceremonies in achieving salvation and criticised the superstitious veneration of relics.

Erasmus and John Colet emphasised a simple, personal piety and a return ad fones («back to the sources») of Christian faith. Colet’s commentaries on the Pauline epistles emphasized double predestination and the worthlessness of human works.

Anne Boleyn’s own religious views were shaped by French humanists such as Jacques Lefèvre d’Étaples, whose 1512 commentaries on Paul’s epistles stated that human works were irrelevant to salvation five years before Luther publiched the same views.

Jacques Lefèvre d’Étaples was a French theologian and humanist. He was a precursor of the Protestant movement in France, and a friend of Erasmus. He anticipated some ideas that were important to the Protestant Reformation.

Jacques Lefèvre d’Étaples remained a Roman Catholic throughout his life, and sought to reform the Church without seperating from it. Several of his books were condemned as heretical, and he spent some time in exile. He was, however, a favorite of the king of France, Francis I, and enjoyed his protection.

Christian, Culture, German, Germany, History
Picture: Martin Luther (Protestant)

By the early 1520’s, the views of German reformer Martin Luther were known and disputed in England. The main plank of Luther’s theology was justification by faith alone rather than by good works. In this view, only faith, itself a gift from God, can secure the grace of God.

Justfication by faith alone threatened the whole basis of the Roman Catholic penitential system with its doctrine of purgatory, prayer for the death, indulgences, and the sacrifice character of the Mass.

Early Protestans portrayed Catholic practices such as confession to priests, clerical celibacy, and requirements to fast and kepp vows as burdensome and spiritually oppressive. Not only did purgatory lack any biblical basis according to Protestants, but the clergy were accused of using fear of purgatory to makke money from prayers and masses.

Catholics countered that justification by faith alone was a «licence to sin».

English Catholicism was strong and popular in the early 1500’s, and those who held Protestant sympathies would remain a religious minority until political events intervened. Protestant ideas were popular among some parts of the English population, especially among academics and merchants with connections to continental Europe.

Martin Luther was a German professor of theology, composer, priest, monk, and a ceminal figure in the protestant Reformation. Another word is the European Reformation, and it was a movement within Western Christianity in the sixteenth-century Europe that posed a religious and political challenge to the Roman Catholic Church and papal authority in particuar.

It started with Luther’s Ninety-five Thesis in 1517. About 500 years ago. There was no schism between the Catholic Church and the nascent Luther until the 1521 Edict of Worms. The edict condemned Luther and officially banned citizens of the Holy Roman Empire from defending or prpagating his ideas.

The end of the Reformation era is disputed: it could be considered to end with the enactment of the confessions of faith which began the Age of Orthodoxy.

Other suggested ending years relate to the Counter-Reformation, the Peace of Westphalia, or that it never ende since there are still Protesters today.

Those who identify with Luther`s wider teachings, are called Lutherans, though Luther insisted on Christian or Evangelical as the only acceptable names for individuals who professed Christ.

In two of his later works, Martin Luther expressed antagonistic, violent views toward Jews, and called for the burning of their synagogues and their deaths. His rhetoric was not directed at Jews alone, but also towards Roman Catholics, Anabaptists, and nontrinitarian Christians.

Luther was the most widely read author of his generation, and within Germany he acquired the status of a prophet. According to the prevailing opinion among historians, his anti-Jewish rhetoric contributed significantly to the development of antisemitism in Germany, and in the 1930’s and 1940’s provided an «ideal underpinning» for the Nazis’ attacks on Jews.

Reinhold Lewin writes that anybody who «wrote against the Jews for whatever reason believed he had the right to justify himself by triumphantly referring to Luther.»

According to Michael, just about every anti-Jewish book printed in the Third Reich contained references to and quotations from Luther.

Fascism, Nazi, Swastika, Symbol, Germany
Picture: Books printed in the Third Reich contained references to and quotations from Martin Luther

The leading member of the Nazi Party of Germany, Heinrich Himmler was one of the most powerful men in Nazi Germany and a main architect of the Holocaust. He formed the Einsatzgruppen and built extermination camps.

Himmler directed the killing of some six million Jews, between 200,000 and 500,000 Romani people, and other victims. The total number of civilians killed by the Nazi regime is estimated at eleven to fourteen million people Most of them Polish and Soviet citizens.

Heinrich Himmler (albeit never a Lutheran, having been brought up Catholic) wrote admiringly of his writing and sermons on the Jews in 1940. Professor Richard Geary noted, based on his research, that the Nazi Party received disproportionately more votes from Protestants than Catholic areas of Germany.

Chruch historian Martin Brecht said; «There is a world of difference between his belief in salvation and a racial ideology. Neverthless, his misguided agitation had the evil result that Luther fatefully became one of the «church fathers» of anti-semitism and thus provided material for the modern hatred of the Jews, cloaking it with the authority of the Reformer.»

Luther saw the Turks as a scourgge sent by God to punish Christians, as agents of the Biblical apocalypse that would destroy the Antichrist, whom Luther believed to be the papacy, and the Roman Church.

He went on to produce several critical pamphlets on Islam, which he called «Mohammedanism» or «the Turk». Though Luther saw the Muslim faith as a tool of the devil, he was indifferent to its practice: «Let the Turk believe and live as he will, just as one lets the papacy and others false Christians live».

Henry VIII broke England`s ties with the Pope and the Roman Catholic Church hundreds of year ago and said goodbye. Church taxes were paid straight to Rome, but not anymore. The Pope had the final word in the appointment of bishops, but that also came to an end. So is it today. The UK will no longer pay to the EU, and the EU has nothing they can say.

But they didn`t say goodbye to Europe, and so is it today. Prime Minister Boris Johnson and the United Kingdom is leaving the club European Union, but they are still a part of Europe.

The UK isn`t leaving Europe but a trading club that provides several non-rival but excludable goods to its members. Now, they want free trade and to be a member of another club like EU. We can assume the United States is on top of that list.

This is the end of the relationship with EU, but it is also the beginning of a new era for those who are building Europe. The UK is leaving the EU because EU is the problem. Not the UK. Therefore, the European Union must change.

The old European model is dead. So is the globalisation as we know it. It`s tragic for those in charge of building Europe not to see that this is a great opportunity to build a new one.

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2019 has been a great bull market and Trump have played a huge part in it

A lot of people started the year talking about a recession, but 2019 was a big sucess. A great bull market and a big surprise for many. President Trump have played a huge part in it by cutting tax and regulations and that`s what Wall Street like.

Only a few trading sessions are left of this Wall Street record year. It has been an unbelievable year for stocks! Recession will come one day but the bull market will continue until it stops.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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