Dennis Kucinich Takes An Hour To Explain Our Current Economic Situation

[Rajiv]

Dennis Kucinich Takes An Hour To Explain Our Current Economic Situation

Jan 26 2009 C-Span

Also
Kucinich: We Should Be Going From Golden Parachutes To Golden Handcuffs!

[World Traveler]

Re: Dennis Kucinich Takes An Hour To Explain Our Current Economic Situation

In second video Kucinich states he wrote a joint letter with Congressman Ted Poe asking that Treasury to force CitiGroup rescind it deal with the Mets to pay to name their stadium Citifield.

Congressman Ted Poe is about as conservative as they come, very right-wing. He represents northeast Houston suburbs and adjacent small town areas. He represented my area for a while before re-districting and I sure never voted for him - too hard core right-wing on social issues.

During the run-up to this fiasco, some of the clearest criticisms of Wall Street excesses came from what is considered the far left and far right. Same is true for opposition to Paulson's TARP bill in September - most who voted against it are considered on the periphery - right or left.

It's striking to see Kucinich, who is known for his liberal views, working with Poe.

It will be interesting to see if there are any more far left-far right alliances in the future.

[Rajiv]

Re: Dennis Kucinich Takes An Hour To Explain Our Current Economic Situation

Kucinich's mindset can be better understood after reading his article - America’s Banking System, 30 years after default of Cleveland

Once they were as gods, but the deities of the American banking system are now in ruins, plunged from their pedestals into the maw of taxpayer largesse. Congress voted to give the banks $700 billion, lifting them temporarily out of their sepulcher of debt, while revealing a deep truth about the condition of America’s financial powers:

They never had the money they said they had as they constructed their debt-based monetary system which now lies in ruins. Their decisions on behalf of depositors, shareholders and investors were lacking in basic integrity and common sense: green gods bailing out with their golden parachutes.

There was a time when their power was real. Come with me to Cleveland 30 years ago today.

Dec. 15, 1978, Cleveland, Ohio

I awoke to find a curt payment demand that was dropped on my front step by a grandfatherly man who supplemented his Social Security delivering the morning newspaper. The headline plastered across the front page:

Cleveland Trust: Pay Up. Bank would relent if Muny Light were sold, Forbes believes.

One of America’s largest banks, Cleveland Trust, led local banks in demanding immediate payment from the city by midnight, Dec. 15, of $14.5 million in short-term loans.

I regarded the headline skeptically. Having lived in 21 different places by the time I was 17, including a couple of cars, I had come to an encyclopedic knowledge of dun letters, sent to my parents by battalions of bill collectors seeking immediate payment for televisions, cars, and a variety of household appliances that never seemed to work. I first came to regard these credit alarms with trepidation, later with impassiveness, with the expectation that as our family grew to two adults and seven children it would soon be on the move again, incurring new delinquencies with each new address. Lack of access to money, housing and credit seemed to be a permanent condition.

Now, having fought through a thicket of consequence to become America’s youngest mayor, elected on a promise to stop the privatization of the city’s electric system, I was faced with paying off loans taken out by the previous mayor, for the financing of municipal projects of dubious value.

The banks refused to extend terms of payment and connived with City Council members to block alternative payment plans, such as the sale of city land or tax revenues. The banks knew the city couldn’t otherwise pay. They demanded instead the sale of the city’s electric system, Muny Light, to an investor-owned electric company, the Cleveland Electric Illuminating Co. (CEI). The president of the Cleveland City Council, George Forbes, had met with the head of Cleveland Trust bank, who insisted on the sale of Muny Light as a precondition for extending the city credit. This was a case of the bank blackmailing the city, pure and simple.

The alternative to accepting the bank’s blackmail was default. Cleveland could become the first city since the Depression to default on its financial obligations. Cities rely on credit for everyday operations and for meeting long-term financial obligations, such as infrastructure improvements. If banks called in their loans, the city would head toward dire straits. No one knew that better than the law firm of Squire Sanders and Dempsey, which had served as bond counsel for the city of Cleveland while the city entered fiscal peril and was simultaneously, though not coincidentally, the principal law firm for the Cleveland Electric Illuminating Co. Through Squire Sanders and Dempsey, CEI had access to the intricacies of the city of Cleveland’s financial records.

Under the previous administration, the city began using bond funds for general operating purposes. As mayor, I inherited $40 million worth of debt that had to be refinanced before the end of my first year in office. Under my predecessor, the city had illegally spent money it did not have, and yet it had the key to every bank in town and the confidence of the bond rating houses, at precisely the same time it was preparing for the sale of the municipal electric system to CEI.
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[Rev. David Strickler]

Re: Dennis Kucinich Takes An Hour To Explain Our Current Economic Situation

To augment the above comment that contains the link to explain Kucinich's Mind Set, here is the interview Tom Snyder did with Kucinich answering a number of question during the recall vote in 1978

http://www.youtube.com/watch?v=xtnVjM5pTn4

Kind regards
Rev. D. Strickler
age 49
stroke survivor
Arizona transplant from Lorain, Ohio