Ezra Klein did a piece yesterday offering the conventional deficit dove position on deficits and debt. Here’s a commentary on it.

Explanation of Fed and Treasury actions

Consider this our second lesson in economics; Economics 102.

Lets talk about high corporate (or business) taxes versus low taxes. I argued with a die-hard Conservative for about an hour this weekend, and he refused to see the sense of what I am about to tell you. Let’s see if it makes sense to you, or if I am wet behind the ears. I’ll use the same examples I gave him.

Let’s say I have two tax scenarios; one is with corporate/business taxes at 25% and one is at 75%. Please keep in mind that no one is suggesting even close to a 75% tax rate, but let’s use it for an example.

My Conservative friend said that trickle down economics works because if he had lower corporate taxes (he doesn’t own a business) he would use that extra money saved with the lower taxes to buy equipment, which would trickle down to the factory that made the equipment and the people employed there. Well enough.

Except that’s not the way it works in business. It sounds good, it almost sounds right, but it isn’t. It’s an anecdote that has no basis in reality. I answered that any business person waiting until after he had paid his taxes to see what he had left for capital equipment purchases is a moron and deserves to get gouged by taxation. That wasn’t met with a great deal of understanding or approval, so I explained why I said it.

Elucidation for others

On Thursday, the U.S. Senate passed a financial reform package that includes a handful of important reforms, but it won’t fundamentally change the relationship between banks and society. Wall Street still has a vice grip on our economy, and lawmakers still find it very difficult to stand up to bigwig financiers.

Further exposition of how we are lied to

Summation of why audit the FED is being opposed

More stealth legislation in favor of globalization

Financial reform legislation analysis

Quotes,perspectives regarding the Committee on Banking Supervision in Basel, Switzerland.