Thanks.

I read that as ’saving capitalism from itself’ through creation of a vertically organized partnering of capital, govt, and labor, i.e. corporatism (which, as I expect you know, took a wide variety of forms and was implemented in quite a few nations during the interwar period, partic post 1928).

Any opinions re. this time around?

He seemed to sleep through the whole thing.Especially the loud noises chants etc.
My wife wondered if this was because he is a Downs baby. Even at that age ours wouldn’t have slept so well

Thanks for that! I just skimmed over a few things there, looking for a few connections to general bond activity, but the part you broke out, is worth pondering!

Is that my DNA that I see there?

Slightly below the paragraph you summarize is this passage which quite well profiles what he was about to do.

“Every man has a right to life; and this means that he has also a right to make a comfortable living. He may by sloth or crime decline to exercise that right; but it may not be denied him. We have no actual famine or dearth; our industrial and agricultural mechanism can produce enough and to spare. Our government formal and informal, political and economic, owes to every one an avenue to possess himself of a portion of that plenty sufficient for his needs, through his own work.

Every man has a right to his own property, which means a right to be assured, to the fullest extent attainable, in the safety of his savings. By no other means can men carry the burdens of those parts of life which, in the nature of things, afford no chance of labor; childhood, sickness, old age. In all thought of property, this right is paramount; all other property rights must yield to it. If, in accord with this principle, we must restrict the operations of the speculator, the manipulator, even the financier, I believe we must accept the restriction as needful, not to hamper individualism but to protect it.

These two requirements must be satisfied, in the main, by the individuals who claim and hold control of the great industrial and financial combinations, which dominate so large a part of our industrial life. They have undertaken to be not businessmen, but princes —— princes of property. I am not prepared to say that the system which produces them is wrong. I am very clear that they must fearlessly and competently assume the responsibility which goes with the power. So many enlightened businessmen know this that the statement would be little more than a platitude, were it not for an added implication.

This implication is, briefly, that the responsible heads of finance and industry instead of acting each for himself, must work together to achieve the common end. They must, where necessary, sacrifice this or that private advantage; and in reciprocal self—denial must seek a general advantage. It is here that formal government —— political government, if you choose, comes in. Whenever in the pursuit of this objective the lone wolf, the unethical competitor, the reckless promoter, the Ishmael or Insull whose hand is against every man’s, declines to join in achieving an end recognized as being for the public welfare, and threatens to drag the industry back to a state of anarchy, the government may properly be asked to apply restraint. Likewise, should the group ever use its collective power contrary to the public welfare, the government must be swift to enter and protect the public interest.”

Most of it is quite relevant to today, though times have changed and the world is different, but the matter of public welfare vs private interest will not be denied its place. Especially as it becomes clear how much we the public are expected to provide in welfare for today’s private princes who have treated the republic as their own model of the Titanic.

A convenient link to the speech can be found here
http://www.epluribusmedia.org/archives/features/2006/200609_FDR_pt1.html

This is the perfect visual metaphor for the proposition that perfectly defined and weighted _contextual_ arguments can be wholly undone by discontinuous conditions. Investors may have the problem of ’sharks in the pool’ sussed, but they’ll come to bloody pieces anyway when the swimming tigers get ‘em.

FDR presented his “mature economy” concepts in a campaign address at the San Francisco Commonwealth Club later in 1932. There was no more room for growth. The frontier is long gone. Capitalism had simply become over productive. Productivity gains were a threat that would just cause greater unemployment (the “automation” myth). The task now was thus not to stimulate further growth, but to manage the economy to more equitably distribute its products.

Thus, the New Deal wouldn’t “fail” to end the Great Depression and restore economic growth. It would never really try. It’s primary thrust would be to arrange for the equitable distribution of material necessities, and the broad provision of security (”freedom from fear”).

The Lausanne conferees agreed to cut German reparations from $31.68 billion to just $714 million, payable after 3 years, but contingent upon U.S. granting relief from war debts. The U.S. was owed $7 1/4 billion. Hoover opposed cancellation, and warned the conferees that the U.S. had no intention of canceling the war debts. But it didn’t matter. These debts were clearly not collectible, and almost all payments would soon end.

http://www.futurecasts.com/Depression_descent-beginning-‘32.html

However, there was a worldwide adverse shift in the credit markets that more than overcame the beneficial impacts of sharply lower interest rates. A constantly increasing number of political and business entities with suspect credit were frozen out of the bond markets and thus faced substantially more difficulty in borrowing money. In November, 1930, several large Italian banks closed.

On May 7, 1931, the Federal Reserve Bank cut its discount rate to the all time record low of 1 1/2%. This caused a slight flurry in the securities markets, and then the decline resumed. After all, ALL business indices were DOWN.
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Commodity prices were slipping steadily lower. Low interest rates stimulated nothing but savings accounts. These were still paying 4% to 4 1/2% interest, and constituted excellent “investments” under current conditions. However, since the banks were now getting less than this on government bonds and other high grade loans, this interest rate was expected to come down, too.

High grade bonds were still strong, but the decline in stock prices continued. Very light trading indicated that a drastic lack of buying interest, rather than desperate selling pressure, was dragging prices down.

Railroad car loadings – which normally ran over one million per week – were 747,732 in the middle of May, bringing railroad activity to a Depression low. Steel production fell sharply to 42% of capacity. Desperate for business, the smaller mills were actively undercutting list prices.

… holiday sales had been disappointing, and by January, 1932, wholesale and department store sales were declining sharply.

1 1/2 million railroad workers finally accepted the 10% wage cut. This was far less than the decline in the cost of living, so they were still doing very well. N.Y. City quickly floated $100 million in short term bonds at 6% – the highest interest rate that the city had had to pay since WW I – to cover its budgetary problems. Low interest rates don’t necessarily translate into easier monetary conditions. Additional borrowing was predicted, and the banks provided a $150 million short term credit line.

April 1932:

1 1/2 million railroad workers finally accepted the 10% wage cut. This was far less than the decline in the cost of living, so they were still doing very well. N.Y. City quickly floated $100 million in short term bonds at 6% – the highest interest rate that the city had had to pay since WW I – to cover its budgetary problems. Low interest rates don’t necessarily translate into easier monetary conditions. Additional borrowing was predicted, and the banks provided a $150 million short term credit line.

Auto production rose sharply towards the end of April, but auto registrations were still 50% below 1931 levels and auto and truck exports were practically nil. U.S. exports and imports for the first quarter of 1932 plummeted 20% below the last quarter of 1931 – and 33% below the first quarter of 1931. In April, trade was 36% below April 1931 – less than 14% was accounted for by falling prices. World trade was grinding to a halt.
?
U.S. Steel wages were slashed 15% for 200,000 workers as the giant corporation’s losses mounted. Federal salaries were cut 10%. Nevertheless, for these workers – who still had full time jobs – the declining cost of living still easily outstripped their wage cuts.

Nasty… !!