Showing posts with label Bush. Show all posts
Showing posts with label Bush. Show all posts

Wednesday, October 12, 2011

Robert Reich - 7 Lies About the Economy and Taxes

Each day, I read many, many articles that are important enough to post. Others are similarly flooded with information. Things are falling apart in so many places, so rapidly, that it becomes difficult to choose which ones to share from all those important articles. Today, I have decided to post just one, in the hope that it might be watched and read.
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The Seven Biggest Economic Lies


By Robert Reich


October 12, 2011

 
Robert Reich - 7 Lies

 

THE SEVEN BIGGEST ECONOMIC LIES

The President’s Jobs Bill doesn’t have a chance in Congress — and the Occupiers on Wall Street and elsewhere can’t become a national movement for a more equitable society – unless more Americans know the truth about the economy.

Here’s a short (2 minute 30 second) effort to rebut the seven biggest whoppers now being told by those who want to take America backwards. The major points:

1. Tax cuts for the rich trickle down to everyone else. Baloney. Ronald Reagan and George W. Bush both sliced taxes on the rich and what happened? Most Americans’ wages (measured by the real median wage) began flattening under Reagan and have dropped since George W. Bush. Trickle-down economics is a cruel joke.

2. Higher taxes on the rich would hurt the economy and slow job growth. False. From the end of World War II until 1981, the richest Americans faced a top marginal tax rate of 70 percent or above. Under Dwight Eisenhower it was 91 percent. Even after all deductions and credits, the top taxes on the very rich were far higher than they’ve been since. Yet the economy grew faster during those years than it has since. (Don’t believe small businesses would be hurt by a higher marginal tax; fewer than 2 percent of small business owners are in the highest tax bracket.)

3. Shrinking government generates more jobs. Wrong again. It means fewer government workers – everyone from teachers, fire fighters, police officers, and social workers at the state and local levels to safety inspectors and military personnel at the federal. And fewer government contractors, who would employ fewer private-sector workers. According to Moody’s economist Mark Zandi (a campaign advisor to John McCain), the $61 billion in spending cuts proposed by the House GOP will cost the economy 700,000 jobs this year and next.

4. Cutting the budget deficit now is more important than boosting the economy. Untrue. With so many Americans out of work, budget cuts now will shrink the economy. They’ll increase unemployment and reduce tax revenues. That will worsen the ratio of the debt to the total economy. The first priority must be getting jobs and growth back by boosting the economy. Only then, when jobs and growth are returning vigorously, should we turn to cutting the deficit.

5. Medicare and Medicaid are the major drivers of budget deficits. Wrong. Medicare and Medicaid spending is rising quickly, to be sure. But that’s because the nation’s health-care costs are rising so fast. One of the best ways of slowing these costs is to use Medicare and Medicaid’s bargaining power over drug companies and hospitals to reduce costs, and to move from a fee-for-service system to a fee-for-healthy outcomes system. And since Medicare has far lower administrative costs than private health insurers, we should make Medicare available to everyone.

6. Social Security is a Ponzi scheme. Don’t believe it. Social Security is solvent for the next 26 years. It could be solvent for the next century if we raised the ceiling on income subject to the Social Security payroll tax. That ceiling is now $106,800.

7. It’s unfair that lower-income Americans don’t pay income tax. Wrong. There’s nothing unfair about it. Lower-income Americans pay out a larger share of their paychecks in payroll taxes, sales taxes, user fees, and tolls than everyone else.


Demagogues through history have known that big lies, repeated often enough, start being believed — unless they’re rebutted. These seven economic whoppers are just plain wrong. Make sure you know the truth – and spread it on.

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Robert Reich is Chancellor's Professor of Public Policy at the University of California at Berkeley. He has served in three national administrations, most recently as secretary of labor under President Bill Clinton. He has written thirteen books, including The Work of Nations, Locked in the Cabinet, Supercapitalism, and his most recent book, Aftershock. His "Marketplace" commentaries can be found on publicradio.com and iTunes. He is also Common Cause's board chairman.
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For more Videos from Robert Reich, see Robert Reich's archive.

Saturday, January 24, 2009

Excellent Blog, Good Videos

In This Edition:

- Dissenting Justice Blog
- 3 interesting Videos
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Dissenting Justice Blog

Darren Lenard Hutchinson
Washington, DC, United States
Education: B.A., University of Pennsylvania; J.D. Yale Law School. I am a Professor of Law at American University, Washington College of Law. I teach and write in the areas of Constitutional Law, Race Relations, Law and Politics, and Gay and Lesbian Rights. As you can probably ascertain from my research interests, I am definitely a progressive, but I take pride in having an open mind, provoking debate, and welcoming criticism. In fact, I started this blog because liberals were absolutely uncritical of Obama during the Democratic primaries and unrelentingly harsh and hypocritical towards the Clintons. I believed that it was my responsiblity to try and shake things up, to challenge orthodox thinking, regardless of the candidate I supported. If there's one thing I hate, it's a lack of debate and dissent. So, if you want honest and open political and legal discourse -- and breaking news and commentary from news media and other blogs -- then this is the blog for you. I look forward to your comments.

http://dissentingjustice.blogspot.com/2009/01/hold-them-accountable-too-many.html
http://dissentingjustice.blogspot.com/2009/01/much-ado-about-nothing-liberals.html
http://dissentingjustice.blogspot.com/2009/01/closing-guantanamo-bay-detention.html
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David Letterman, Tribute to Great Moments In Presidential Speeches

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

I Want Some TARP

http://www.youtube.com/watch?v=yGfQk9XXm24

Olbermann Urges Obama to Go After Bush Admin on Torture
Posted by Nicole Belle, Crooks and Liars at 6:52 AM on January 20, 2009.

http://www.alternet.org/blogs/rights/121081/

Friday, January 2, 2009

Gaza Update 3 - Bush & Obama

In This Edition:

Forgive me--But I was wondering about your heart….

Ralph Nader - Letter to Bush on Gaza Crisis

Ali Abunimah - Inheriting Bush's blinkers

Obama remains Silent on Gaza Carnage - Completely Ignores Anti-Israel Demonstrators

Chris Hedges - Why I Am A Socialist

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I keep hearing that his ardent (spell-bound?) tentatively progressive, Democrat supporters want to give Obama a chance to be the "Change We Can Believe In!" It is apparently not polite to criticize his picks and appointments of right-wingers, religious zealots and war mongers, or his complete silence on the Israeli imposed siege of Gaza and slaughter of innocent Palestinians in violation of international law.

It still surprises me that someone who first gained traction from the anti-war and pro-peace progressive vote, who kept talking (endlessly) about hope and change and "Yes we can!" would completely ignore pro-peace demonstrators and have nothing to say about the carnage in Gaza, unless of course, he is simply more of the same sort of typical Democrat politician whose pragmatism allows him to ignore, if not condone or even perhaps commit, war crimes. The country doesn't need another Bill Clinton or Nancy Pelosi posing as a change agent. Obama needs to be held accountable now, even if it takes every hopeful progressive who put him in office to get back out on the streets to let him know what they think.

Please read the articles below, the first two of which counter the Bush Administration's and the Zionist propaganda machine's claims that Hamas was responsible for breaking the ceasefire. The third set of articles begs the question of what kind of change-agent Obama really is. Would a true progressive seeking to bring peace and change to our battered world simply ignore a small group of veterans and other folks peacefully demonstrating against Israeli war crimes while the "change-agent" headed out to play golf or run? Would same have nothing to say about war crimes if committed by any other country but Israel? Maybe speaking out against war crimes is not the kind of change you voted for. Maybe you have become enured to slaughter and war crimes over the last two decades and have given up on the rule of law in international relations. I haven't!

Forgive me--But I was wondering about your heart….

I had thought that your heart was pure…
You seem to be a decent human being.
You speak kind words—your smile is disarming.
But sometimes I wonder….

I read about the killings on daily basis.
The children who were blown to bits
because someone had a suspect…
but you turned from the question of justice.

Justice--such a foreign word.
Your news, it does not know it
except as used against the poor,
or to justify another war.

Your silence is so disturbing.
Your comfort so important.
Your face so full of kindness.
And I was wondering about your heart….

Chris
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Letter to Bush on Gaza Crisis
From the Nader Page
http://www.nader.org/index.php?/archives/2092-Letter-to-Bush-on-Gaza-Crisis.html#extended

Dear George W. Bush---

Cong. Barney Frank said recently that Barack Obama’s declaration that “there is only one president at a time” over-estimated the number. He was referring to the economic crisis. But where are you on the Gaza crisis where the civilian population of Gaza, its civil servants and public facilities are being massacred and destroyed respectively by U.S built F-16s and U.S. built helicopter gunships.

The deliberate suspension of your power to stop this terrorizing of 1.5 million people, mostly refugees, blockaded for months by air, sea and land in their tiny slice of land, is in cowardly contrast to the position taken by President Dwight Eisenhower in 1956. That year he single handedly stopped the British, French and Israeli aircraft attack against Egypt during the Suez Canal dispute.

Fatalities in Gaza are already over 400 and injuries close to 2000 so far as is known. Total Palestinian civilian casualties are 400 times greater then the casualties incurred by Israelis. But why should anyone be surprised at your blanket support for Israel’s attack given what you have done to a far greater number of civilians in Iraq and now in Afghanistan?

Confirmed visual reports show that Israeli warplanes and warships have destroyed or severely damaged police stations, homes, hospitals, pharmacies, mosques, fishing boats, and a range of public facilities providing electricity and other necessities.

Why should this trouble you at all? It violates international law, including the Geneva Conventions and the UN Charter. You too have repeatedly violated international law and committed serious constitutional transgressions.

Then there is the matter of the Israeli government blocking imports of critical medicines, equipment such as dialysis machines, fuel, food, water, spare parts and electricity at varying intensities for almost two years. The depleted UN aid mission there has called this illegal blockade a humanitarian crisis especially devastating to children, the aged and the infirm. Chronic malnutrition among children is rising rapidly. UN rations support eighty percent of this impoverished population.

How do these incontrovertible facts affect you? Do you have any empathy or what you have called Christian charity?

What would a vastly shrunken Texas turned in an encircled Gulag do up against the 4th most powerful military in the world? Would these embattled Texans be spending their time chopping wood?

Gideon Levy, the veteran Israeli columnist for Ha’aretz, called the Israeli attack a “brutal and violent operation” far beyond what was needed for protecting the people in its south. He added: “The diplomatic efforts were just in the beginning, and I believe we could have got to a new truce without this bloodshed…..to send dozens of jets to bomb a total helpless civilian society with hundreds of bombs—just today, they were burying five sisters. I mean, this is unheard of. This cannot go on like this. And this has nothing to do with self-defense or with retaliation even. It went out of proportion, exactly like two-and-a-half years ago in Lebanon.”

Apparently, thousands of Israelis, including some army reservists, who have demonstrated against this destruction of Gaza agree with Mr. Levy. However, their courageous stands have not reached the mass media in the U.S. whose own reporters cannot even get into Gaza due to Israeli prohibitions on the international press.

Your spokespeople are making much ado about the breaking of the six month truce. Who is the occupier? Who is the most powerful military force? Who controls and blocks the necessities of life? Who has sent raiding missions across the border most often? Who has sent artillery shells and missiles at close range into populated areas? Who has refused the repeated comprehensive peace offerings of the Arab countries issued in 2002 if Israel would agree to return to the 1967 borders and agree to the creation of a small independent Palestinian state possessing just twenty two percent of the original Palestine?

The “wildly inaccurate rockets”, as reporters describe them, coming from Hamas and other groups cannot compare with the modern precision armaments and human damage generated from the Israeli side.

There are no rockets coming from the West Bank into Israel. Yet the Israeli government is still sending raiders into that essentially occupied territory, still further entrenching its colonial outposts, still taking water and land and increasing the checkpoints This is going on despite a most amenable West Bank leader, Mahmoud Abbas, whom you have met with at the White House and praised repeatedly. Is it all vague words and no real initiatives with you and your emissary Condoleezza Rice?

Peace was possible, but you provided no leadership, preferring instead to comply with all wishes and demands by the Israeli government—even resupplying it with the still active cluster bombs in south Lebanon during the invasion of that country in 2006.

The arguments about who started the latest hostilities go on and on with Israel always blaming the Palestinians to justify all kinds of violence and harsh treatment against innocent civilians.

From the Palestinian standpoint, you would do well to remember the origins of this conflict which was the dispossession of their lands. To afford you some empathy, recall the oft-quoted comment by the founder of Israel, David Ben-Gurion, who told the Zionist leader, Nahum Goldmann:

“There has been anti-Semitism the Nazis Hitler Auschwitz but was that their [the Palestinians] fault? They only see one thing: We have come here and stolen their country. Why should they accept that?”
Alfred North Whitehead once said: “Duty arises out of the power to alter the course of events.” By that standard, you have shirked mightily your duty over the past eight years to bring peace to both Palestinians and Israelis and more security to a good part of the world.

The least you can do in your remaining days at the White House is adopt a modest profile in courage, and vigorously demand and secure a ceasefire and a solidly based truce. Then your successor, President-elect Obama can inherit something more than the usual self-censoring Washington puppet show that eschews a proper focus on the national interests of the United States.

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Inheriting Bush's blinkers
Obama and American liberals readily adopt positions on Israel that they would deem extremist and racist in any other context


Ali Abunimah

guardian.co.uk, Friday 2 January 2009 11.30 GMT
http://www.guardian.co.uk/commentisfree/2009/jan/02/israelandthepalestinians-barackobama/print

"I would like to ask President-elect Obama to say something please about the humanitarian crisis that is being experienced right now by the people of Gaza." Former Georgia Congresswoman Cynthia McKinney made her plea after disembarking from the badly damaged SS Dignity that had limped to the Lebanese port of Tyre while taking on water.

The small boat, carrying McKinney, the Green Party's recent presidential candidate, other volunteers, and several tons of donated medical supplies, had been trying to reach the coast of Gaza when it was rammed by an Israeli gunboat in international waters.

But as more than 2,400 Palestinians have been killed or injured – the majority civilians – since Israel began its savage bombardment of Gaza on 27 December, Obama has maintained his silence. "There is only one president at a time," his spokesmen tell the media. This convenient excuse has not applied, say, to Obama's detailed interventions on the economy, or his condemnation of the "coordinated attacks on innocent civilians" in Mumbai in November.

The Mumbai attacks were a clear-cut case of innocent people being slaughtered. The situation in the Middle East however is seen as more "complicated" and so polite opinion accepts Obama's silence not as the approval for Israel's actions that it certainly is, but as responsible statesmanship.

It ought not to be difficult to condemn Israel's murder of civilians and bombing of civilian infrastructure including hundreds of private homes, universities, schools, mosques, civil police stations and ministries, and the building housing the only freely-elected Arab parliament.

It ought not to be risky or disruptive to US foreign policy to say that Israel has an unconditional obligation under the Fourth Geneva Convention to lift its lethal, months-old blockade preventing adequate food, fuel, surgical supplies, medications and other basic necessities from reaching Gaza.

But in the looking-glass world of American politics, Israel, with its powerful first-world army, is the victim, and Gaza – the besieged and blockaded home to 1.5 million immiserated people, half of them children and eighty percent refugees – is the aggressor against whom no cruelty is apparently too extreme.

While feigning restraint, Obama has telegraphed where he really stands; senior adviser David Axelrod told CBS on 28 December that Obama understood Israel's urge to "respond" to attacks on its citizens. Axelrod claimed that "this situation has become even more complicated in the last couple of days and weeks as Hamas began its shelling [and] Israel responded".

The truce Hamas had meticulously upheld was shattered when Israel attacked Gaza, killing six Palestinians, as The Guardian itself reported on 5 November. A blatant disregard for the facts, it seems, will not leave the White House with George Bush on 20 January.

Axelrod also recalled Obama's visit to Israel last July when he ignored Palestinians and visited the Israeli town of Sderot. There, Obama declared: "If somebody was sending rockets into my house where my two daughters sleep at night, I'm going to do everything in my power to stop that. I would expect Israelis to do the same thing."

This should not surprise anyone. Despite pervasive wishful thinking that Obama would abandon America's pro-Israel bias, his approach has been almost indistinguishable from the Bush administration's (as I showed in a longer analysis.

Along with Tony Blair and George Bush, Obama staunchly supported Israel's war against Lebanon in July-August 2006, where it used cluster bombs on civilian areas, killing more than 1,000 people.

Obama's comments in Sderot echoed what he said in a speech to the powerful pro-Israel lobby, AIPAC, in March 2007. He recalled an earlier visit to the Israeli town of Kiryat Shmona near the border with Lebanon which he said reminded him of an American suburb. There, he could imagine the sounds of Israeli children at "joyful play just like my own daughters". He saw a home the Israelis told him was damaged by a Hizbullah rocket (no one had been hurt in the incident).

Obama has identified his daughters repeatedly with Israeli children, while never having uttered a word about the thousands – thousands – of Palestinian and Lebanese children killed and permanently maimed by Israeli attacks just since 2006. This allegedly post-racial president appears fully invested in the racist worldview that considers Arab lives to be worth less than those of Israelis and in which Arabs are always "terrorists".

The problem is much wider than Obama: American liberals in general see no contradiction in espousing positions supporting Israel that they would deem extremist and racist in any other context. The cream of America's allegedly "progressive" Democratic party vanguard – House Speaker Nancy Pelosi, House Foreign Relations Committee Chairman Howard Berman, New York Senator Charles Schumer, among others – have all offered unequivocal support for Israel's massacres in Gaza, describing them as "self-defence".

And then there's Hillary Clinton, the incoming secretary of state and self-styled champion of women and the working classes, who won't let anyone outbid her anti-Palestinian positions.

Democrats are not simply indifferent to Palestinians. In the recent presidential election, their efforts to win swing states like Florida often involved espousing positions dehumanising to Palestinians in particular and Arabs and Muslims in general. Many liberals know this is wrong but tolerate it silently as a price worth paying (though not to be paid by them) to see a Democrat in office.

Even those further to the left implicitly accept Israel's logic. Matthew Rothschild, editor of The Progressive, criticised Israel's attacks on Gaza as a "reckless" and "disproportionate response" to Hamas rocket attacks that he deemed "immoral". There are many others who do nothing to support nonviolent resistance to Israeli occupation and colonisation, such as boycott, divestment and sanctions but who are quick to condemn any desperate Palestinian effort – no matter how ineffectual and symbolic – to resist Israel's relentless aggression.

Similarly, we can expect that the American university professors who have publicly opposed the academic boycott of Israel on grounds of protecting "academic freedom" will remain just as silent about Israel's bombing of the Islamic University of Gaza as they have about Israel's other attacks on Palestinian academic institutions.

There is no silver lining to Israel's slaughter in Gaza, but the reactions to it should at least serve as a wake-up call: when it comes to the struggle for peace and justice in Palestine, the American liberal elites who are about to assume power present as formidable an obstacle as the outgoing Bush administration and its neoconservative backers.

guardian.co.uk © Guardian News and Media Limited 2009
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Obama remains Silent on Gaza Carnage - Completely Ignores Demonstrators

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As War Ravages Gaza, Silent Barack Works on Golf Game

20 Days Ahead of Inauguration, President-elect Seems Distant From Growing Crisis

December 30, 2008
http://news.antiwar.com/2008/12/30/as-war-ravages-gaza-silent-barack-works-on-golf-game

With the death toll in the Gaza Strip still rapidly rising, incoming President-elect Barack Obama's initial reaction of "no immediate comment" has seamlessly segued into an official policy of no comment, period. As Obama and family continue to enjoy a luxurious vacation in Hawaii, his attention seems far more focused on his golf game than the foreign policy crisis he is poised to inherit.

The silence from Hawaii is almost deafening, with Obama's staff using the oft-repeated excuse that the US "has only one president at a time" to justify his lack of commentary. The silence, combined with his cabinet choices, has punctuated what many already believe: that when the Obama Administration takes the White House next month, little will have really changed.

A small group of protesters at his rented vacation home hope to ensure that the President-elect is at least aware of what is going on. But if Obama saw the protesters as his motorcade took him to play a game of basketball, he didn't show it. There was no word of how many points Obama scored, but it is unlikely to have rivaled the number of casualties in the Gaza Strip during the game. And the silence continues.
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Pro-Palestinian Activists Picket Obama Compound in Hawaii

Demonstrators walk near President-elect Barack Obama's vacation residence in Kailua, Hawaii, on Dec. 30, 2008.(Kent Nishimura/Bloomberg News)


http://voices.washingtonpost.com/the-trail/2008/12/30/pro-palestinian_protesters_pic.html?wprss=the-trail

Updated 4:23 p.m.
By Philip Rucker
HONOLULU -- It's a far cry from Cindy Sheehan's tent city near President Bush's ranch in Crawford, Tex., but a half-dozen pro-Palestinian activists demonstrated Tuesday morning outside the Kailua compound where President-elect Barack Obama is vacationing with family and friends.

Holding signs urging Obama to take a new approach to Middle East policy, the protesters gathered early in the morning just beyond the security perimeter of Obama's estate, hoping the president-elect would see them when he left for his traditional morning workout. But as of 9:20 a.m. Hawaii time, Obama had not left his residence.

It was the first time protesters had gathered outside Obama's vacation home during this trip. The activists represented several groups, including Veterans for Peace. They told a pool of reporters traveling with Obama that they want the incoming administration to make a peaceful resolution to the conflict between Israel and the Palestinian territories a top priority, especially given the current strife in the Gaza Strip.

Ann Wright, 62, a retired Army colonel from Honolulu, wore a T-shirt that read, "We will not be silent." She carried a sign that said: "Change U.S. foreign policy. Yes we can."

"We feel there's a great need for change," another activist, Margaret Brown, 66, of Honolulu, told the Associated Press. "We need to stop giving Israel a blank check to do what it's doing. ... We just gave them a blank check to oppress the Palestinians, and this is the result."

The protesters said they planned to demonstrate later Tuesday at a federal building in downtown Honolulu, about 15 miles from the remote Kailua enclave where Obama is staying.

When asked about the demonstrations, Obama's chief national security spokesperson, Brooke Anderson, said, "The president-elect values citizen participation in our nation's foreign policy, but there is one president at a time, and we intend to respect that."
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Why I am a Socialist
by Chris Hedges
http://www.truthdig.com/report/item/20081229_why_i_am_a_socialist/
Published on Monday, December 29, 2008 by TruthDig.com

The corporate forces that are looting the Treasury and have plunged us into a depression will not be contained by the two main political parties. The Democratic and Republican parties have become little more than squalid clubs of privilege and wealth, whores to money and corporate interests, hostage to a massive arms industry, and so adept at deception and self-delusion they no longer know truth from lies. We will find our way out of this mess by embracing an uncompromising democratic socialism-one that will insist on massive government relief and work programs, the nationalization of electricity and gas companies, a universal, not-for-profit government health care program, the outlawing of hedge funds, a radical reduction of our bloated military budget and an end to imperial wars-or we will continue to be fleeced and impoverished by our bankrupt elite and shackled and chained by our surveillance state.

The free market and globalization, promised as the route to worldwide prosperity, have been exposed as a con game. But this does not mean our corporate masters will disappear. Totalitarianism, as George Orwell pointed out, is not so much an age of faith as an age of schizophrenia. "A society becomes totalitarian when its structure becomes flagrantly artificial," Orwell wrote, "that is when its ruling class has lost its function but succeeds in clinging to power by force or fraud." Force and fraud are all they have left. They will use both.

There is a political shift in Europe toward an open confrontation with the corporate state. Germany has seen a surge of support for Die Linke (The Left), a political grouping formed 18 months ago. It is co-led by the veteran socialist "Red" Oskar Lafontaine, who has built his career on attacking big business. Two-thirds of Germans in public opinion polls say they agree with all or some of Die Linke's platform. The Socialist Party of the Netherlands is on the verge of overtaking the Labor Party as the main opposition party on the left. Greece, beset with street protests and violence by disaffected youths, has seen the rapid rise of the Coalition of the Radical Left. In Spain and Norway socialists are in power. Resurgence is not universal, especially in France and Britain, but the shifts toward socialism are significant.

Corporations have intruded into every facet of life. We eat corporate food. We buy corporate clothes. We drive corporate cars. We buy our vehicular fuel and our heating oil from corporations. We borrow from corporate banks. We invest our retirement savings with corporations. We are entertained, informed and branded by corporations. We work for corporations. The creation of a mercenary army, the privatization of public utilities and our disgusting for-profit health care system are all legacies of the corporate state. These corporations have no loyalty to America or the American worker. They are not tied to nation states. They are vampires.

"By now the [commercial] revolution has deprived the mass of consumers of any independent access to the staples of life: clothing, shelter, food, even water," Wendell Berry wrote in "The Unsettling of America." "Air remains the only necessity that the average user can still get for himself, and the revolution had imposed a heavy tax on that by way of pollution. Commercial conquest is far more thorough and final than military defeat."

The corporation is designed to make money without regard to human life, the social good or impact on the environment. Corporate laws impose a legal duty on corporate executives to make as much money as possible for shareholders, although many have moved on to fleece shareholders as well. In the 2003 documentary film "The Corporation" the management guru Peter Drucker says: "If you find an executive who wants to take on social responsibilities, fire him. Fast."

A corporation that attempts to engage in social responsibility, that tries to pay workers a decent wage with benefits, that invests its profits to protect the environment and limit pollution, that gives consumers fair deals, can be sued by shareholders. Robert Monks, the investment manager, says in the film: "The corporation is an externalizing machine, in the same way that a shark is a killing machine. There isn't any question of malevolence or of will. The enterprise has within it, and the shark has within it, those characteristics that enable it to do that for which it was designed." Ray Anderson , the CEO of Interface Corp., the world's largest commercial carpet manufacturer, calls the corporation a "present day instrument of destruction" because of its compulsion to "externalize any cost that an unwary or uncaring public will allow it to externalize."

"The notion that we can take and take and take and take, waste and waste, without consequences, is driving the biosphere to destruction," Anderson says.

In short, the film, based on Joel Bakan's book "The Corporation: The Pathological Pursuit of Profit and Power," asserts that the corporation exhibits many of the traits found in people clinically defined as psychopaths.

Psychologist Dr. Robert Hare lists in the film psychopathic traits and ties them to the behavior of corporations:

callous unconcern for the feelings for others;
incapacity to maintain enduring relationships;
reckless disregard for the safety of others;
deceitfulness: repeated lying and conning others for profit;
incapacity to experience guilt;
failure to conform to social norms with respect to lawful behavior.

And yet, under the American legal system, corporations have the same legal rights as individuals. They give hundreds of millions of dollars to political candidates, fund the army of some 35,000 lobbyists in Washington and thousands more in state capitals to write corporate-friendly legislation, drain taxpayer funds and abolish government oversight. They saturate the airwaves, the Internet, newsprint and magazines with advertisements promoting their brands as the friendly face of the corporation. They have high-priced legal teams, millions of employees, skilled public relations firms and thousands of elected officials to ward off public intrusions into their affairs or halt messy lawsuits. They hold a near monopoly on all electronic and printed sources of information. A few media giants-AOL-Time Warner, General Electric, Viacom, Disney and Rupert Murdoch's NewsGroup-control nearly everything we read, see and hear.

"Private capital tends to become concentrated in [a] few hands, partly because of competition among the capitalists, and partly because technological development and the increasing division of labor encourage the formation of larger units of production at the expense of the smaller ones," Albert Einstein wrote in 1949 in the Monthly Review in explaining why he was a socialist.

"The result of these developments is an oligarchy of private capital the enormous power of which cannot be effectively checked even by a democratically organized political society. This is true since the members of legislative bodies are selected by political parties, largely financed or otherwise influenced by private capitalists who, for all practical purposes, separate the electorate from the legislature. The consequence is that the representatives of the people do not in fact sufficiently protect the interests of the underprivileged sections of the population. Moreover, under existing conditions, private capitalists inevitably control, directly or indirectly, the main sources of information (press, radio, education). It is thus extremely difficult, and indeed in most cases quite impossible, for the individual citizen to come to objective conclusions and to make intelligent use of his political rights."

Labor and left-wing activists, especially university students and well-heeled liberals, have failed to unite. This division, which is often based on social rather than economic differences, has long stymied concerted action against ruling elites. It has fractured the American left and rendered it impotent.

"Large sections of the middle class are being gradually proletarianized; but the important point is that they do not, at any rate not in the first generation, adopt a proletarian outlook," Orwell wrote in 1937 during the last economic depression. "Here I am, for instance, with a bourgeois upbringing and a working-class income. Which class do I belong to? Economically I belong to the working class, but it is almost impossible for me to think of myself as anything but a member of the bourgeoisie. And supposing I had to take sides, whom should I side with, the upper class which is trying to squeeze me out of existence, or the working class whose manners are not my manners? It is probable that I, personally, in any important issue, would side with the working class. But what about the tens or hundreds of thousands of others who are in approximately the same position? And what about that far larger class, running into millions this time-the office-workers and black-coated employees of all kinds-whose traditions are less definite middle class but who would certainly not thank you if you called them proletarians? All of these people have the same interests and the same enemies as the working class. All are being robbed and bullied by the same system. Yet how many of them realize it? When the pinch came nearly all of them would side with their oppressors and against those who ought to be their allies. It is quite easy to imagine a working class crushed down to the worst depths of poverty and still remaining bitterly anti-working-class in sentiment; this being, of course, a ready-made Fascist party."

Coalitions of environmental, anti-nuclear, anti-capitalist, sustainable-agriculture and anti-globalization forces have coalesced in Europe to form and support socialist parties. This has yet to happen in the United States. The left never rallied in significant numbers behind Cynthia McKinney or Ralph Nader. In picking the lesser of two evils, it threw its lot in with a Democratic Party that backs our imperial wars, empowers the national security state and does the bidding of corporations.

If Barack Obama does not end the flagrant theft of taxpayer funds by corporate slugs and the disgraceful abandonment of our working class, especially as foreclosures and unemployment mount, many in the country will turn in desperation to the far right embodied by groups such as Christian radicals. The failure by the left to offer a democratic socialist alternative will mean there will be, in the eyes of many embittered and struggling working- and middle-class Americans, no alternative but a perverted Christian fascism. The inability to articulate a viable socialism has been our gravest mistake. It will ensure, if this does not soon change, a ruthless totalitarian capitalism.

© 2008 TruthDig.com
Chris Hedges writes a regular column for Truthdig.com . Hedges graduated from Harvard Divinity School and was for nearly two decades a foreign correspondent for The New York Times. He is the author of "American Fascists: The Christian Right and the War on America. "

Tuesday, November 18, 2008

Let the Trials Begin! (But They Probably Won't)

I thought this little rant from Information Clearing House might strike a chord with some.

Nice thoughts, but our society, from our corporate controlled media and govenment, to our two controlling and barely distinguishable political parties, to the majority of our unfortunately brainwashed consumer electorate, is corrupt to the core, so. . . forget it! There probably isn't the moral capacity and independent thinking ability left in the vast majority of them to even consider it, let alone follow through with it.

The sentiment and comments after the article are certainly interesting though. . . .

Another article on the criminal bailout, by Naomi Klein and her interview on DN! (below), may also be of interest.

Chris

The Election is Over; Time to Move On to the Recriminations

Let the Trials Begin!


By DOUGLAS VALENTINE
http://www.informationclearinghouse.info/article21225.htm

November 14, 2008 "Counterpunch" -- - Amid the euphoria and angst of the Obama apotheosis, the unreality of a mismanaged, two trillion dollar, taxpayer funded bailout of freewheeling capitalists, and the wars of limbo in Iraq and Afghanistan, one little thing is being overlooked.

George W Bush.

The Decider. The psychopath responsible for this appalling mess we're in. The architect of America's ignoble descent into moral darkness. The washed up and universally despised pseudo-despot who reveled in torture, kidnapping and assassination. The War-Monger.

"Bring 'em On!"

"Dead or Alive!"

The raving ignoramus whose words will haunt us forever.

The spoiled child of privilege playing with the lives of our sons and daughters, husbands and wives, mothers and fathers, friends and lovers, as if they were his personal toys.

The mass murderer who illegally invaded and occupied a foreign nation, killing hundreds of thousands of innocent people, utterly destroying their cities and bridges, power plants and schools, and scattering millions of them to the wind, as if he were GOD!

The Comic Book Madman obsessed with Death, reading CIA memos about Al Qaeda, sending kidnappers and hit teams and drones around the world, anywhere he wanted, to kill his imaginary enemies, while America burned.

The Super Traitor.

The elections are over, I say. The people have spoken. It's time to move on to the business at hand - hauling Bush's sorry ass before a war crimes tribunal of the sort he created. But not one staffed by his political cadre of complicit military officers. One composed of his victims.

Let the recriminations begin!

If there were any justice, the process would begin with his midnight arrest. Bush's beloved CIA drones and hitmen invariably kill their target's families in these little snatch operations, and if agreed upon by his inquisitors, I suggest this would be an appropriate touch.

Then the little fucker would be rendered to my basement and put on the waterboard. I'd ask that Joe Liebernut be made to put the wet towel on his face, but Joe would do it just for fun. Same with Limbaugh.

We'll find someone deserving of the job. Perhaps the boys from Gitmo? And I mean, the boys. The brothers and sisters of innocent Iraqis he killed? I think they'll be plenty of volunteers.

The whole point will be to make Bush confess. Not to the crimes he has committed. But to explain why he did it. Was it to show up Poppy? To win the love of Barbara?

I really want to know.

This interrogation should last seven years, and everyone Bush names as having followed his orders should be tried as well. That's Cheney, Rumsfeld, Rice and everyone in the CIA for starters.

Bush's kangaroo courtroom trial, presided over by Vincent Bugliosi, should be the highlight of the election campaign of 2016.

The supreme punishments to be broadcast live by Fox News.

Imagine.

Douglas Valentine is the author of four books which are available at his websites http://www.members.authorsguild.net/valentine/ and http://www.douglasvalentine.com/index.html His fifth book, The Strength of the Pack: The Politics, Personalities and Espionage Intrigues That Shaped The DEA, will be published in September 2009 by Trine Day.

To read the comments, go to the bottomof the page at:
http://www.informationclearinghouse.info/article21225.htm

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Wall Street's Bailout is a Trillion-Dollar Crime Scene

Why Aren't the Dems Doing Something About It?


By Naomi Klein
http://www.informationclearinghouse.info/article21226.htm

November 14, 2008 "The Nation" - -- The more details emerge, the clearer it becomes that Washington's handling of the Wall Street bailout is not merely incompetent. It is borderline criminal.

In a moment of high panic in late September, the U.S. Treasury unilaterally pushed through a radical change in how bank mergers are taxed -- a change long sought by the industry. Despite the fact that this move will deprive the government of as much as $140 billion in tax revenue, lawmakers found out only after the fact. According to the Washington Post, more than a dozen tax attorneys agree that "Treasury had no authority to issue the [tax change] notice."

Of equally dubious legality are the equity deals Treasury has negotiated with many of the country's banks. According to Congressman Barney Frank, one of the architects of the legislation that enables the deals, "Any use of these funds for any purpose other than lending -- for bonuses, for severance pay, for dividends, for acquisitions of other institutions, etc. -- is a violation of the act." Yet this is exactly how the funds are being used.

Then there is the nearly $2 trillion the Federal Reserve has handed out in emergency loans. Incredibly, the Fed will not reveal which corporations have received these loans or what it has accepted as collateral. Bloomberg News believes that this secrecy violates the law and has filed a federal suit demanding full disclosure.

Despite all of this potential lawlessness, the Democrats are either openly defending the administration or refusing to intervene. "There is only one president at a time," we hear from Barack Obama. That's true. But every sweetheart deal the lame-duck Bush administration makes threatens to hobble Obama's ability to make good on his promise of change. To cite just one example, that $140 billion in missing tax revenue is almost the same sum as Obama's renewable energy program. Obama owes it to the people who elected him to call this what it is: an attempt to undermine the electoral process by stealth.

Yes, there is only one president at a time, but that president needed the support of powerful Democrats, including Obama, to get the bailout passed. Now that it is clear that the Bush administration is violating the terms to which both parties agreed, the Democrats have not just the right but a grave responsibility to intervene forcefully.

I suspect that the real reason the Democrats are so far failing to act has less to do with presidential protocol than with fear: fear that the stock market, which has the temperament of an overindulged 2-year-old, will throw one of its world-shaking tantrums. Disclosing the truth about who is receiving federal loans, we are told, could cause the cranky market to bet against those banks. Question the legality of equity deals and the same thing will happen. Challenge the $140 billion tax giveaway and mergers could fall through. "None of us wants to be blamed for ruining these mergers and creating a new Great Depression," explained one unnamed Congressional aide.

More than that, the Democrats, including Obama, appear to believe that the need to soothe the market should govern all key economic decisions in the transition period. Which is why, just days after a euphoric victory for "change," the mantra abruptly shifted to "smooth transition" and "continuity."

Take Obama's pick for chief of staff. Despite the Republican braying about his partisanship, Rahm Emanuel, the House Democrat who received the most donations from the financial sector, sends an unmistakably reassuring message to Wall Street. When asked on This Week With George Stephanopoulos whether Obama would be moving quickly to increase taxes on the wealthy, as promised, Emanuel pointedly did not answer the question.

This same market-coddling logic should, we are told, guide Obama's selection of treasury secretary. Fox News's Stuart Varney explained that Larry Summers, who held the post under Clinton, and former Fed chair Paul Volcker would both "give great confidence to the market." We learned from MSNBC's Joe Scarborough that Summers is the man "the Street would like the most."

Let's be clear about why. "The Street" would cheer a Summers appointment for exactly the same reason the rest of us should fear it: because traders will assume that Summers, champion of financial deregulation under Clinton, will offer a transition from Henry Paulson so smooth we will barely know it happened. Someone like FDIC chair Sheila Bair, on the other hand, would spark fear on the Street -- for all the right reasons.

One thing we know for certain is that the market will react violently to any signal that there is a new sheriff in town who will impose serious regulation, invest in people and cut off the free money for corporations. In short, the markets can be relied on to vote in precisely the opposite way that Americans have just voted. (A recent USA Today/Gallup poll found that 60 percent of Americans strongly favor "stricter regulations on financial institutions," while just 21 percent support aid to financial companies.)

There is no way to reconcile the public's vote for change with the market's foot-stomping for more of the same. Any and all moves to change course will be met with short-term market shocks. The good news is that once it is clear that the new rules will be applied across the board and with fairness, the market will stabilize and adjust. Furthermore, the timing for this turbulence has never been better. Over the past three months, we've been shocked so frequently that market stability would come as more of a surprise. That gives Obama a window to disregard the calls for a seamless transition and do the hard stuff first. Few will be able to blame him for a crisis that clearly predates him, or fault him for honoring the clearly expressed wishes of the electorate. The longer he waits, however, the more memories fade.

When transferring power from a functional, trustworthy regime, everyone favors a smooth transition. When exiting an era marked by criminality and bankrupt ideology, a little rockiness at the start would be a very good sign.

See Also: http://www.democracynow.org/shows/2008/11/17

Monday, September 8, 2008

The Incredible Scam Continues As A Corrupt System Teeters Toward Collapse

The main-stream media, mouth-piece of the financial, largely corporate, elite, has been feeding a constant stream of the usual BS to the people coerced into supporting their increasingly untenable pyramid scheme of greed and speculation, and the volume has increased dramatically since Sunday’s announcement by the administration that it has begun the biggest bailout of private interests in American history. The transfer of our declining wealth to the rich is being promoted as the only thing they can do to help alleviate the problems of affected home owners and to save your financial choices and well being, but it will ultimately only help save a scandalous and failed system that serves the interests of “capital markets” and the wealthy around the world. That’s why the stock market rallied today. A “capital market” is a euphemism for the the interests of wealthy elites who control our “democracy,” who exploit you at every opportunity, and their financial stability and survival is what our government is now all about. (A similar, though hopefully less draconian, situation exists in Baker City) While they pick your poor pocket, the media asks you “How lucky can you get?” and pretends that the monstrously mendacious McCain, one of the infamous “Keating 5” is a war hero and a true reformer.

If you don’t read any of these blogs, please read the first article below in its entirety, if you can tear yourself away from "Public" Broadcasting, Rush Limbaugh, Fox News pundits, and the other popular propagandists. Two of the articles are by academics, and a third is by a journalist and financial consultant. Your time spent on it may just help you in your search for the truth.

In This Issue:

- Modern Debt Peonage

- US Waves Goodbye to Prosperity and Democracy

- Why The Fannie-Freddie Bailout Will Fail

- Jon Stewart on Sarah Palin Choice ( Humorous VIDEO)

- George W. Bush’s Early Promises - He was smirking because the joke was on us


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“Modern Debt Peonage”?

 Economic Democracy Is Turning Into a Financial Oligarchy


An interview with Michael Hudson, former Wall Street economist specializing in the balance of payments and real estate at the Chase Manhattan Bank (now JP Morgan Chase & Co.), Arthur Anderson, and later at the Hudson Institute (no relation).
By Mike Whitney
http://www.informationclearinghouse.info/article20709.htm

08/09/08 "ICH"

<”On Friday afternoon the government announced plans to place the two mortgage giants, Fannie Mae and Freddie Mac, under “conservatorship.” Shareholders will be virtually wiped out (their stock already had plunged by over 90 per cent) but the US Treasury will step in to protect the companies’ debt. To some extent it also will protect their preferred shares, which Morgan-Chase have marked down only by half.

This seems to be the most sweeping government intervention into the financial markets in American history. If these two companies are nationalized, it will add $5.3 trillion dollars to the nation's balance sheet. So my first question is, why is the Treasury bailing out bondholders and other investors in their mortgage IOUs? What is the public interest in all this?


Hudson: The Treasury emphasized that it was under a Sunday afternoon deadline to finalize the takeover details before the Asian markets opened for trading. This concern reflects the balance-of-payments and hence military dimension to the bailout. The central banks of China, Japan and Korea are major holders of these securities, precisely because of the large size of Fannie Mae and Freddie Mac – their $5.3 trillion in mortgage-backed debt that you mention, and the $11 trillion overall U.S. mortgage market.

When you look at the balance sheet of U.S. assets available for foreign central banks to buy with the $2.5 to $3.5 trillion of surplus dollars they hold, real estate is the only asset category large enough to absorb the balance-of-payments outflows that U.S. military spending, foreign trade and investment-capital flight are throwing off. When the U.S. military spends money abroad to fight the New Cold War, these dollars are recycled increasingly into U.S. mortgage-backed securities, because there is no other market large enough to absorb the sums involved. Remember, we do not permit foreigners – especially Asians – to buy high-tech, “national security” or key infrastructure. The government would prefer to see them buy harmless real estate trophies such as Rockefeller Center, or minority shares in banks with negative equity such as Citibank shares sold to the Saudis and Bahrainis.

But there is a limit on how nakedly the U.S. Government can exploit foreign central banks. It does need to keep dollar recycling going, in order to prevent a sharp dollar depreciation. The Treasury therefore has given informal assurances to foreign governments that they will guarantee at least the dollar value of the money their central banks are recycling. (These governments still will lose as the dollar plunges against hard currencies – just about every currency except the dollar these days.) A failure to provide investment guarantees to foreigners would thwart the continuation of U.S. overseas military spending! And once foreigners are bailed out, the Treasury has to bail out domestic American investors as well, simply for political reasons.

Fannie and Freddie have been loading up on risky mortgages for ages, under-stating the risks largely to increase their stock price so that their CEOs can pay themselves tens of millions of dollars in salary and stock options. Now they are essentially insolvent, as the principal itself is in question. There was widespread criticism of this year after year after year. Why was nothing done?

Hudson: Fannie and Freddie were notorious for their heavy Washington lobbying. They bought the support of Congressmen and Senators who managed to get onto the financial oversight committees so that they would be in a position to collect campaign financing from Wall Street that wanted to make sure that no real regulation would take place.

On the broadest level, Treasury Secretary Paulson has said that these companies are being taken over in order to reflate the real estate market. Fannie and Freddie were almost single-handedly supporting the junk mortgage market that was making Wall Street rich.

The CEOs claimed to pay themselves for “innovation.” In today’s Orwellian vocabulary financial “innovation” means the creation of special rent-extracting privilege. The privilege was being able to get the proverbial “free ride” (that is, economic rent) by borrowing at low-interest government rates to buy and repackage mortgages to sell at a high-interest markup. Their “innovation” lies in the ambiguity that enabled them to pose as public-sector borrowers when they wanted to borrow at low rates, and private-sector arbitrageurs when they wanted to get a rake-off from higher margins.

The government’s auditors are now finding out that their other innovation was to cook the accounting books, Enron-style. As mortgage arrears and defaults mounted up, Fannie and Freddie did not mark down their mortgage holdings to realistic prices. They said they would do this in a year or so – by 2009, after the Bush Administration’s deregulators have left office. The idea was to blame it all on Obama when they finally failed.

But at the deepest level of all, the “innovation” that created a rent-extracting loophole was the deception that making more and more bad-mortgage loans could continue for a prolonged period of time. The reality is that no exponential rise in debt ever has been able to be paid for more than a few years, because no economy ever has been able to produce a surplus fast enough to keep pace with the “magic of compound interest.” That phrase is itself a synonym for the exponential growth of debt.

The Road to Debt Peonage

In an earlier interview you said: “The economy has reached its debt limit and is entering its insolvency phase. We are not in a cycle but the end of an era. The old world of debt pyramiding to a fraudulent degree cannot be restored.” Would you expand on this in view of today’s developments?

Hudson: How long can more and more money can be pumped into the real estate market, while disposable personal income is not growing by enough to pay these debts? How can people pay mortgages in excess of the rental value of their property? Where is the “market demand” to come from? Speculators already withdrew from the real estate market by late 2006 – and in that year they represented about a sixth of all purchases.

The best that this weekend’s bailout can do is to postpone the losses on bad mortgage debts. But this is a far cry from actually restoring the ability of debtors to pay. Mr. Paulson talks about more lending to support real estate prices. But this will prevent housing from falling to levels that people can afford without running deeper and deeper into mortgage debt. Housing prices are still way, way above the traditional definition of equilibrium – prices whose carrying charges are just about equal to what it would cost to rent over time.

The Treasury’s aim is to revive Fannie and Freddie as lenders – and hence as vehicles for the U.S. economy to borrow from the foreign central banks and large institutional investors that I mentioned above. More lending is supposed to support real estate prices from falling quite so far as they otherwise would – and in fact, the aim is to keep the debt pyramid growing. The only way to do this is to lend mortgage debtors enough to pay the interest and amortization charges on the existing volume of debt they have been loaded down with. And since most people aren’t really earning any more – and in fact are finding their budgets squeezed – the only basis for borrowing more is to inflate the price of real estate that is being pledged as collateral for mortgage refinancing.

It is pure hypocrisy for Wall Street’s Hank Paulson to claim that all this is being done to “help home owners.” They are vehicles off whom to make money, not the beneficiaries. They are at the bottom of an increasingly carnivorous and extractive financial food chain.

Nearly all real estate experts are in agreement that for the next year or two, many of today’s homeowners will find themselves locked into where they are now living. Their situation is much like medieval serfs were tied to their land. They can’t sell, because the market price won’t cover the mortgage they owe, and they don’t have the savings to pay the difference.
Matters are aggravated by the fact that interest rates are scheduled to reset at higher non-teaser rates for the rest of this next year and 2010, increasing the financial burden. You may remember that Alan Greenspan recommended that homebuyers take out adjustable-rate mortgages (ARMs) because the average American moves every three years. By the time the mortgage interest rate jumped, he explained, they could sell to a new buyer in this game of musical chairs – presumably with more and more chairs being added all the times, and plusher ones to boot.

But homeowners can’t move today, so they find themselves stuck with rising interest charges on top of their rising fuel and heating and electricity charges, transportation charges, food costs, health insurance and even property taxes as these begin to catch up with the rise in Bubble Prices.

The government has carefully avoided nationalizing the companies and thereby taking them onto its own balance sheet. It has created a “conservatorship” (a word that my spellchecker does not recognize). So the bailout of Fannie and Freddie looks like the Republicans are trying to play the financial just-pretend game simply until they leave office in February, after which time they can blame the failure of the “miracle of compound debt interest” on the incoming Democratic Congress.
So it’s politics as usual: play for the short run. In the long run – even next year – the real estate market will continue to drift down.

The economic news keeps getting grimmer and grimmer, but you’d never know it by listening to the politicians at the Republican Convention. The only time the economy was brought up at all was in the context of praise for free markets and globalization. The housing crash and credit market meltdown were not mentioned. Could you tell us what you think the rising unemployment numbers, falling consumer demand, skyrocketing foreclosures and ongoing troubles in the credit markets mean for America’s future? Is this just a blip on the radar or are we in the middle of a major retrenchment that will result in falling living standards and a deep, protracted recession?

Hudson: The Republicans prefer to distract attention from how the Bush regime has failed over the past eight years. If attention can be focused on Iraq and terrorism, on personalities and style, serious discussion of such matters may be crowded out. That’s what the news media are for.

When politicians do talk about the economy, the basic strategy is to fight the November election over who has the nicest dream for what people would like to believe. Amazing as it seems, a large number of Americans actually expect to have a good chance of becoming millionaires. They’re simply not looking at the debt side of the balance sheet.

The most striking economic dynamic today is polarization between those who live off the returns to wealth (finance and property extracting interest and rent, plus capital gains as asset prices are inflated) and those who live off what they can earn, struggling to pay the taxes and debts they are taking on. The national income and product accounts – GNP and national income – don’t say anything about the polarization of property, and doesn’t include capital gains, which are how most wealth is being achieved these days, not by actual direct investment to increase the means of production as lobbyists for trickle-down economic theory claim.

Here’s how things look today: The richest 1 per cent of the population receive 57.5 per cent of all the income generated by wealth – that is, payment for privilege, most of it inherited. These returns – interest, rent and capital gains – are not primarily a return for enterprise. They are pure inertia, weighing down markets. They do not “free” markets, except by providing a free lunch to the wealthiest families. The richest 20 per cent of the population receives some 86 per cent of all this income – that is what actually is increasing household balance sheets.

What people still view as an economic democracy is turning into a financial oligarchy. Politicians are looking for campaign support mainly from this oligarchy because that is where the money is. So they talk about a happy-face economy to appeal to American optimism, while being quite pragmatic in knowing who to serve if they want to get ahead and not be blackballed.

During the 1990s the bottom 90 per cent of the population tried to catch up by going into debt to buy homes and other property. What they didn’t see was that an insatiable growth in debt is needed to keep a real estate and finance bubble expanding. All this credit imposes financial charges, which have been largely responsible for polarizing wealth ownership so sharply in recent decades.

These debt charges have grown so heavy that debtors are able to pay only by borrowing the interest that is falling due. They have been able to borrow for the past few years by pledging real estate or other collateral whose prices are being inflated by Federal Reserve policy. The Treasury also contributes by giving tax favoritism, un-taxing property and finance. This forces labor and tangible industrial capital to pick up the fiscal slack, even as they are being forced to carry a heavier debt burden.
Homeowners do not gain by this higher market “equilibrium” price for housing. Higher prices simply mean more debt overhead. Rising price/rent and price/earnings ratios for debt-financed properties, stocks and bonds oblige wage earners to go deeper and deeper into debt, devoting more and more years of their working life to pay for housing and to buy income-yielding stocks and bonds for their retirement.

Debt expansion to buy property seems self-justifying as long as asset prices are rising. This asset-price inflation is euphemized as “wealth creation” by focusing on real estate, stock and bond prices – even as disposable personal income and living and working conditions are eroded.

So to come back to your broad question. . .”>


For rest of article see:
http://www.informationclearinghouse.info/article20709

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US Waves Goodbye to Prosperity and Democracy

By David Hirst
http://www.informationclearinghouse.info/article20708.htm

08/09/08 "The Age" -- - THE events of the weekend begin the greatest intervention in the US economy by the Federal Government since the Great Depression, with the Bear Stearns rescue but a splutter on this road we must now travel.

If you were wondering what all the flag-waving at the Republican convention has been about, it is now clear. Americans are waving goodbye to the prosperity the nation has enjoyed since the Great Depression and a final goodbye to democracy. But while preparation for the most important decision made in the nation's post-depression financial history towered above the conventions, I don't think the fate of Freddie and Fannie and the remaining government-sponsored enterprises (GSEs) was mentioned during either convention.

And the politicians. President Bush has long authorised the Treasury to open its purse strings and, naturally, Treasury Secretary Henry Paulson said he did not expect the line of endless taxpayer credit to be used. This is like signing an authority to go to war and saying we don't expect to go to war. Once the authority is given, it will happen. It was always laughable to expect otherwise. Paulson "briefed" John McCain and Barack Obama on the "plan". The fact is that while America, and the world, wait to see who will govern, Mr Paulson has decided to take matters out of the politicians' hands.

They willingly agreed. The ultimate political power, to spend taxpayers' money, has been tossed away. Obviously the economy is too important to be left to the politicians. Instead it is to be put into "conservatorship". It has come to this.
. . . .
For rest of article see:
http://www.informationclearinghouse.info/article20708.htm
David Hirst is a journalist, documentary maker, financial consultant and investor. His column, Planet Wall Street, is syndicated by News Bites, a Melbourne-based sharemarket and business news publisher.

---------------------------------------------------
Why The Fannie-Freddie Bailout Will Fail 

By Martin D. Weiss, Ph.D.

http://www.informationclearinghouse.info/article20707.htm

08/09/08 "ICH" - -- With yesterday's announcement of the most massive federal bailout of all time, it's now official: Fannie Mae and Freddie Mac, the two largest mortgage lenders on Earth, are bankrupt.

Some Washington bigwigs and bureaucrats will inevitably try to spin it. They'll avoid the "b" word with vengeance. They'll push the "c" word (conservatorship) with passion. And in the newspeak of 21st century bailouts, they'll tell you "it all depends on what the definition of solvency is."

The truth: Without their accounting smoke and mirrors, Fannie and Freddie have no capital. The government is seizing control of their operations. Their chief executives are getting fired. Common shareholders will be virtually wiped out. Preferred shareholders will get pennies. If that's not wholesale bankruptcy, what is?

Some Wall Street pundits and pros will also try to twist the facts to their own liking. They'll treat the bailout like long-awaited manna from heaven. They'll declare that the "credit crisis is now behind us." They may even jump in to buy select financial stocks. And then they'll try to persuade you to do the same.

The reality: This was the same pitch we heard in August of last year when the world's central banks made a coordinated attempt to rescue credit markets with massive injections of fresh cash. It was also the same pitch we heard in March when the Fed bailed out Bear Stearns. But each time, the crisis got progressively worse. Each time, investors lost fortunes.
Together, both Washington and Wall Street are trying to persuade you that, "no matter what, the government will save us from financial disaster." But the real lessons already learned from these events are another matter entirely:

Lesson #1. Each successive round of the credit crisis is far deeper and broader than the previous.
In 2007, the big news was big losses; in 2008, it's big bankruptcies.


In March, the failure of Bear Stearns shattered $395 billion in assets. Now, just six months later, the failure of Fannie Mae and Freddie Mac is impacting $1.7 trillion in combined assets, or over four times more. And considering the $5.3 trillion in mortgages that Fannie-Freddie own or guarantee, the impact is actually thirteen times greater than the Bear Stearns failure.

Lesson #2. Despite unprecedented countermeasures, Washington has been unable to stem the tide.

Yes, the Fed can inject hundreds of billions into the banking system. But if banks don't lend, the money goes nowhere.
Sure, the Treasury can inject up to $200 billion of capital into Fannie and Freddie. But if their mortgage portfolio is full of holes, all that new capital goes down the drain.

And of course, the U.S. government has vast resources. But if the $49 trillion mountain of U.S. debts and the $180 trillion pile-up of U.S. derivatives are beginning to crumble, all those resources don't amount to more than a band-aid and a prayer.

Lesson #3. Shareholders are the first victims.

Bear Stearns shareholders got wiped out. Fannie and Freddie Mac shareholders are getting wiped out. Ditto for shareholders in any of Detroit's Big Three that go belly-up, any bank taken over by the FDIC or any insurer taken over by state insurance commissioners.

The Next Lesson: 
The Primary Mission of the Fannie-Freddie 
Bailout Will Ultimately End in Failure

Most people assume that when the government steps in, that's it. The story dies and investors shift their attention to other concerns. In smaller bailouts, perhaps. But not in this Mother of All Bailouts.

The taxpayer cost for just these two companies — up to $200 billion — is more than the total cost of bailing out thousands of S&Ls in the 1970s. But it's still just a fraction of the liability the government is now assuming.

Why?
First, because the number of home foreclosures and mortgage delinquencies has now surged to a shocking four million — and a substantial portion of the massive losses stemming from this calamity have yet to appear on Fannie's and Freddie's books.
Second, because the U.S. recession is still in an early stage, with surging unemployment just beginning to cause still another surge in foreclosures and mortgage delinquencies.

Third, even before Fannie and Freddie begin to feel the full brunt of the mortgage and recession calamity, their capital had already been grossly overstated.

Indeed, right at this moment, while Wall Street analysts are trying to evaluate the details of a bailout plan that's supposed to save them, regulators and their advisers are poring over the Freddie-Fannie accounting mess they're supposed to inherit. According to Gretchen Morgenson and Charles Duhigg's column in yesterday's New York Times, "Mortgage Giant Overstated the Size of Its Capital Base" ...

Freddie Mac's portfolio contains many securities backed by subprime and Alt-A loans. But the company has not written down the value of many of those loans to reflect current market prices.



For years, both Freddie and Fannie have effectively recognized losses whenever payments on a loan are 90 days past due. But in recent months, the companies saidthey would wait until payments were TWO YEARS late. As a result, tens of thousands of other loans have also not been marked down in value.



Both companies have grossly inflated their capital by relying on accumulated tax credits that can supposedly be used to offset future profits. Fannie says it gets a $36 billion capital boost from tax credits, while Freddie claims a $28 billion benefit. But unless these companies can generate profits, which now seems highly unlikely, all of the tax credits are useless. Not one penny of these so-called "assets" could ever be sold. And every single penny will now vanish as the company goes into receivership.

In short, the federal government is buying a pig in a poke — a bottomless pit that will suck up many times more capital than they're revealing.

My forecast:

Just to keep Fannie and Freddie solvent will take so much capital, there will be no funds available to pursue the primary mission of this bailout — to pump money into the mortgage market and save it from collapse. That mission will ultimately end in failure.

The Most Important Lesson of All:
As the U.S. Treasury Assumes 
Responsibility for $5.3 Trillion in Mortgages, 
It Places Its Own Borrowing Ability at Risk 



The immediate reason the government decided not to wait any longer to bail out Freddie and Fannie was very simple: All over the world, investors were beginning to reject their bonds, refusing to lend them any more money. So the price of Fannie and Freddie bonds plunged, and the yields on those bonds went through the roof.

As a result, to borrow money, Fannie-Freddie had to pay higher and higher interest rates, far above the rates paid by the U.S. Treasury Department. And they had to pass those higher rates on to any homeowner taking out a new home loan, driving 30-year fixed-rate mortgages sharply higher as well.

Now, with the U.S. Treasury itself stepping in to directly guarantee Fannie-Freddie debts, Washington and Wall Street are hoping this rapidly deteriorating scenario will be reversed.

They hope investors will flock back to Fannie and Freddie bonds.

They hope investors will resume lending them money at a rate that's much closer to the Treasury rates.
And they hope Fannie and Freddie will again be able to feed that low-cost money into the mortgage market just like they used to.

In other words, they hope the U.S. Treasury will lift up the credit of Fannie and Freddie.

There's just one not-so-small hitch in this rosy scenario: Fannie's and Freddie's mortgage obligations are just as big as the total amount of Treasury debt outstanding.So rather than the Treasury lifting up Fannie and Freddie, what about a scenario in which Fannie and Freddie drag down the U.S. Treasury?

To understand the magnitude of this dilemma, just look at the numbers ...

Mortgages owned or guaranteed by Fannie and Freddie: $5.3 trillion.



Treasury securities outstanding as of March 31, according to the Fed's Flow of Funds (report page 87, pdf page 95): Also $5.3 trillion.

If Fannie's and Freddie's obligations were equivalent to 10% or even 20% of the U.S. Treasury debts, the idea that they could fit under the Treasury's "full faith and credit" umbrella might make sense. But that's not the situation we have here — Fannie's and Freddie's obligations are the equivalent of 100% of the Treasury's debts.

And it's actually worse than that:
See: http://www.informationclearinghouse.info/article20707.htm

Short Video from Jon Stewart Show:
Jon Stewart : On Sarah Palin Hypocrisy

http://www.informationclearinghouse.info/article20704.htm

-----------------------------------------------------
Bush’s Early Promises

The following is one of the few good tidbits from tonight’s Lehrer “Propaganda Hour” on PBS. One should think about it before deciding how to vote in this year’s election for one, or none, one of the elite’s two chosen candidates.

When asked at the first presidential debate prior to his election about what he would do with the $230 BILLION surplus he inherited from the Democrats, which had been projected to become a $4.5 TRILLION surplus over the next decade, Bush noted that he was a Governor from West Texas with executive experience (sound familiar), and responded, with the usual don’t believe this nonsense smirk on his face, that:

“I want to take one half of the surplus and dedicate it social security, one quarter of the surplus for important projects, and I want to send one quarter of the surplus back to the people who pay the bills.”

I realize this was before he started the wars his neocon friends and choice for VP had planned for us before he became president, but. . . .

Sunday, January 27, 2008

BIRDS, BULLIES, AND BAD TIMES

In This Issue:

- SOME BAKER CITY BIRDS IN WINTER
- PALESTINIAN-ISRAELI CONFLICT & THE SIEGE OF GAZA
- IT’S THE CORRUPTION, STUPID!
- IRAQ: KILLING AS IF WE WERE MORAL, SPENDING AS IF WE WERE RICH

SOME BAKER CITY BIRDS IN WINTER

With the unrelenting cold and snowfall this month, my feeders are crowded
with some of our winter resident birds looking for a life-sustaining
handout. Among the more common birds here are house finches, the
introduced house sparrows, dark-eyed juncos, mountain and black-capped
chickadees, pine siskins and American goldfinches. Their grim situation
has afforded me an enhanced opportunity to photograph a few of them, so
I will share them with you.

Goldfinches (Carduelis tristis) were a very rare occurrence where I grew up in California, and I really don’t remember seeing any until I lived part-time in west central Utah, where they were referred to by my neighbors as wild canaries.

Male American Goldfinch in Winter Suit at Nyger Thistle Feeder.

Goldfinches eat seeds from members of the sunflower family, like dandelions and ornamental sunflowers, introduced weeds, as well as seeds and buds from birch and elm (among others). They can often be found feeding in clumps of teasel in winter and will usually eat from feeders containing fresh nyger thistle seed. The bird in the photo above is beginning to lose some winter feathers where his summertime black cap is coming in (breeding plumage).

Another irregularly occurring finch, the pine siskin (Carduelis pinus,
photo below) aggressively seeks out thistle feeders in winter. Its
normal fare ranges from the seeds of weeds to those of birch, alder and
various conifers . Its narrow, pointed beak is particularly suited to
these chores. They are common in some years, and absent, or nearly so,
in others.

Pine Siskin above shows typical yellow lining of wing primary feathers.

The most common finch around Baker City feeders in winter is the house finch, Carpodacus mexicanus (below). The large powerful beak makes quick work of eating larger seeds and berries, but it is also a valuable feeder on smaller weed seeds as well.

Male House Finch (above) with typical red "forehead" and breast above brown streaked belly and flanks.

The handsome dark-eyed junco (Junco hyemalis, photo below), the common Oregon variety of which is named the Oregon junco, can be attracted by throwing “wild bird seed” millet mixes out on the ground or on a flat open feeder placed on a pole or attached to the house by a window. It is usually found in open woods in the spring and summer seasons. Other varieties, such as the slate-colored junco, also appear here. They normally have gray, rather than buffy, sides.

Dark-eyed “Oregon” Junco with typical black "hood," buff brown flanks and white belly.

Along with the mountain chickadee shown in the last blog, the back-capped chickadee sometimes finds its way to Baker City feeders. Like the Mountain, it is friendly/fearless to the point of foolishness, and its sprightly acrobatics and handsome suit, cheer up the most dreary winter day. It closely inspects trees and shrubs looking for insects and berries, often hanging upside down from branches, but forages for seeds as well. At feeders it likes black-oil sunflower seeds and suet.

Back-capped Chickadee (above) with typical buffy flanks, lacks the white "eyebrow" seen on the mountain chickadee.

Another bird that may be found lurking around feeders is the sharp-shinned hawk (Accipiter striatus) It is our smallest Accipiter:i.e., raptors with long tails and short-wings. They are very quick and agile in their pursuit of small birds through trees and shrubs. Parents teach the young to catch birds in flight by tossing food to them in mid-air. These raptors will also catch small birds thrown to them by humans, not that anyone would do that. The bird pictured below thins out the non-native house sparrow population around my place, but they are not too picky about which small bird species they select for dinner.

Young Sharp-shinned Hawk--looking good and ever wary.

Lastly, below is a picture of our smallest falcon, the American kestrel (Falco sparverius). Falcons generally exhibit purposeful, powerful and fast flight with somewhat narrow and pointed wings. This bird used to be called sparrow hawk, but normally feeds on small rodents and larger insects like grasshoppers. They can be found with bobbing tail onpowerlines or hovering over potential prey in open areas. It nests in cavities excavated by woodpeckers or other cavity like spaces, including those found in the walls of old barns. This one was suffering the cold winds on a cloudy New Year’s Day at Ladd Marsh (2008).

American Kestrel enduring a bitter cold wind on New Year's Day.

(I had hoped to show more cacti at Organ Pipe Cactus National Monument,
but this blog is already too lengthy so I will do them next time.)

PALESTINIAN-ISRAELI CONFLICT

Between January 15th and 19th, during the siege of Gaza, Israeli State terrorists killed at least 28 Palestinians and injured about 90 more, most of whom were civilians. 115 Palestinians have been killed since world leaders gathered for Bush’s farcical Annapolis “peace talks” in November of 2007. Israel accomplished these deeds with tanks, rockets, and American supplied F-16s against un-armed or lightly armed people. This killing spree was in response to the firing of primitive and inaccurate homemade Kassam rockets at the nearby town of Siderot in Israel. From the beginning of the 2nd intifada in September 0f 2000, to the 19th of January, 2008, 10 or 12 Israelis had been killed by the firing of these rockets (figures differ). No one had been killed this year, and only 2 people had been killed in 2007.

According to the Palestinian Center for Human Rights, since the beginning of the 2nd intifada:

“3534 Palestinians Civilians have been killed by Israeli Occupation Forces (IOF) forces in the OPT. [OPT = Palestinian Occupied Territories]

A further 928 Palestinians have been killed by Israeli Occupation Forces (IOF) in armed clashes in the OPT.

11300 Palestinians have been wounded by Israeli Occupation Forces (IOF) in the Gaza Strip since the beginning of the Intifada.

13450 Palestinians have been wounded by Israeli Occupation Forces (IOF) in the West Bank territory since the beginning of the Intifada.

Over 800 of the dead were children, 142 were women.

Israeli state terrorists killed 372 of these people, many of whom were innocent bystanders, while attempting extra-judicial assassinations of people they said were involved in various “crimes” of resistance to Israeli occupation. There is no right to a kangaroo court when Israel makes you a suspect in the occupied territories.

On the other hand, Palestinians have killed 705 Israeli civilians and 325 Israeli security personnel during the same time period.

Checkout Ali Abunimah on “Democracy Now” :
<”The United States is complicit. And, by the way, Amy, this is another
setback for the Bush Doctrine. The people of Gaza have been the victims
of an experiment by the Bush administration and Israel, where, first of
all, they had a democratic election [Hamas won! Chris]. The US and Israel didn’t like that
result, so they tried to overthrow Hamas using Contra-style militias
and using a starvation siege. Hamas turned the tables on them and got
rid of those militias. So they decided to tighten the siege on the
people of Gaza, and the people of Gaza decided to break out of it
themselves.”> Ali Abunimah


Palestinians surge into Egypt after knocking down Israeli built ghetto fence reminiscent of the Berlin Wall (Al Jazeera photo)

“Gazans are still subject to the control of the Israeli military which retains the ability and right to enter the Gaza Strip at will. Furthermore, Israel retains control over all of Gaza's public utilities, airspace, sea shore, and borders, including Gaza's border with Egypt. It is Israel that both sets and collects Gaza's taxes and customs [and often withholds them from the Palestinians-Chris]and controls its population registry. It controls Gaza's international relations, whether or not they can open a seaport or an airport, and continues its military activity along the GazaStrip's coastline. Taken together, these powers mean that all goods, services and people entering or leaving Gaza are subject to Israeli control.”
Quote above from: Q&A: The Occupation in Law
http://english.aljazeera.net/NR/exeres/17CCDB3E-3E53-4CF5-8B20-33A63A30EF65.htm

Gazans bring supplies back to their open-air prison from Egypt after knocking down one of Israel's border walls. (Electricintifada.net photo)

POP QUIZ ON THE PALESTINIAN – ISRAELI CONFLICT

1) True or False—The West Bank and Jerusalem are occupied by Israel, but the Gaza Strip is no longer occupied.

2) True or False—Israel’s ongoing, open-ended occupation is legal.

3) True or False—Israel’s ever-expanding settlements on occupied Palestinian land are legal.

4) True or False—The Palestinians and Hamas have the right to defend themselves and to resist Israel’s occupation and war crimes.

Since the beginning of the second Intifada in September of 2000, to the end
of 2007, Israel has killed around 3500 civilians (estimates vary),
including over 800 children. The Palestinians have killed 234 Israeli
civilians and 39 children.

5) True or False—Killing civilians and children is legal under international law.

During the same period, often using US supplied rockets and aircraft, Israel
killed 272 Palestinians during attempted extra-judicial assassination
attempts, including the wheelchair bound former Hamas leader Sheikh Ahmed Yassin.

6) True or False— Extra-judicial assassinations, aka, “targeted killings,” are legal under international law.

7) What is it called when Israel punishes the entire population of Gaza for the actions of a few resistance fighters?

8) True or False—Under the Geneva conventions, collective punishment by occupiers is illegal.

9) True or False—The U.N. Human Rights Council recently blasted Israel for the siege of Gaza.

10) How often does NPR’s Israel reporter, Linda Gradstein, offer a report on the conflict that isn’t biased in favor of Israel?

11) True or False—The population densities of the Nazi controlled Warsaw Ghetto (at its worst) and the “Beach” (Life’s a Beach!) Palestinian refugee camp in the Gaza Strip are about the same.

12) True or False—Most Americans could give a rat’s ass whether Palestinians suffer or die as a result of US and Israeli criminal behavior. Many are more concerned about the money they have to spend to drive around in their tank-like pickups than they are about the death and destruction our weapons and foreign policy spread around the globe.

Answers: 1 FALSE, 2 FALSE, 3 FALSE, 4 TRUE, 5 FALSE, 6 FALSE, 7 Collective punishment, 8 TRUE, 9 TRUE, The resolution, adopted by a vote of 30-1 in Geneva, called for "urgent international action to put an immediate end to the grave violations committed by the occupying power, Israel, in the occupied Palestinian territory.", 10 NEVER, she seems to be incapable of offering and objective undistorted report!, 11 TRUE, population density for both was/is around 1 person for each 130 square feet (10x13 foot rectangle). 12 TRUE Americans are brainwashed and otherwise misled by the mainstream media, their political leaders who are in the pocket of the Israel Lobby, their religious leaders who are enthralled by fantasies and the holocaust industry, and by a politicized educational system. Many have been led to believe that their most noble roles are to consume as much as possible, be otherwise entertained, believe in and pray to an invisible friend, and blame the victims.

For discussion of questions 1-6, see: Q&A: The Occupation in Law
http://english.aljazeera.net/NR/exeres/17CCDB3E-3E53-4CF5-8B20-33A63A30EF65.htm

IT’S THE CORRUPTION, STUPID!
Our current financial crisis, a follow-up act to the savings and loan
scandal and the technology bubble-bust, has been brewing since the late
90’s, and became inevitable during the reign of King George W. Its
roots have been nourished by the deregulation dogma begun in the Carter
administration and made a holy writ during the union busting regime of
master salesman and heartless bully, Ronald Reagan. Bill Clinton, the
face of the Democratic Leadership Council, along with his financial
advisor and Treasury Secretary, Robert Rubin (Goldman Sachs,Citigroup,
etc.), all but turned over the economic reigns to Wall Street, while
loosening conflict of interest regulations that had helped to keep the
financial scampsters on a long leash. War criminal George W. Bush
ignored the housing bubble while increasing the national debt by over
$3.5 TRILLION, or 62%, in 7 years. The 2006 trade deficit was double
that of 2000, the year Bush stole the Presidential election, and during
his time in office, over 3 million good manufacturing jobs have gone
overseas. Under G.W., energy prices have skyrocketed, credit card debt
has increased by almost half, total household debt, credit card and
mortgage, as a percent of the market value of total household assets is
at a new high, foreign-held debt has doubled, while the dollar is in
steep decline. The popping of the housing bubble, during which Wall
Street banker/traders made millions selling bad loans, and the ensuing
credit crunch, has left us in an ever-deepening financial crisis which
could lead to a variety of the “stagflation” we experienced in the
‘70s, if not a 21st century version of a depression. Bush and Congress
have concocted an inadequate and poorly targeted stimulus package that
will likely prove to be more politics, psychology and style than the
effective long-term reform necessary for rescuing the economy. There
are few politicians left in Congress who possess the sense of fairness,
compassion, intelligence and courage needed to reign in the bankers and
traders on Wall Street with new regulations.

Here are some interesting articles concerning the financial upheaval:

“Is This the Big One”
From Information Clearing House
http://www.informationclearinghouse.info/article19126.htm

Even the far-right Op-ed page of the Wall Street Journal conceded Greenspan's culpability in Saturday's edition…..

The Wall Street Journal admits that a new “structured debt” market was created to package dubious subprime liabilities (from “no doc”, no collateral, “bad credit” loan applicants) and sell them to hedge funds, insurance companies and foreign banks as if they were precious jewels. TheWSJ avers that this is the way that “smart people” “exploit” the opportunities from lavish “capital flows”.

But was it “smart” or criminal?

Fortunately, that question was answered this week in an extraordinary outburst on cable TV by market-insider and equities guru, JimCramer. In Cramer's latest explosion, he details his own involvement in creating and selling “structured products” which had never been stress-tested in a slumping market. No one knew how badly they would perform. Cramer admits that the motivation behind peddling this junk to gullible investors was simply greed. Here's his statement
:”
"ITS ALL ABOUT THE COMMISSION”
Cramer Rages on Banks: 'Where's the SEC?!'
http://www.cnbc.com/id/22706231
<”(We used to say) “The commissions on structured products are so huge let's JAM IT.” (note “jam it” means foist it on the customer) It's all about the 'commish'. The commission on structured product is GIGANTIC. I could make a fortune 'JAMMING THAT CRUMMY PAPER' but I had a degree of conscience---what a shocker!--We used to regulate people but they decided during the Reagan revolution that that was bad. So we don't regulate anyone anymore. But listen the commission in structured product is so gigantic. (pause) First of all the customer has no idea what the product really is because it is invented. Second, you assume the customer is really stupid; like we used to say about the German bankers, 'The German banks are just Bozos. Throw them anything.' Or the Australians 'M O R O N S' Or the Florida Fund (ha ha ) “They're so stupid let's give them Triple B (junk grade) Then we'd just laugh and laugh at the customers and Jam them with the commission...That's what happened; that's what happened....Remember, this is about commissions, about how much money you can make by jamming stupid customers. I've seen it all my life; you jam stupid customers.”
See the whole damning confession on
: http://www.cnbc.com/id/22706231

Trillions of dollars in structured investments (CDOs, MBSs, an ASCP) have now clogged up the global economic system and are dragging the world headlong into recession/depression. Cramer's confession is a candid admission of criminal intent to defraud the public by selling products which people--within the financial industry---KNEW were falsely represented by their ratings. They sold them simply to fatten their own paychecks and because there is no longer any regulatory agency within the US government that curtails ilicit activity.”
AND
Economics Journalist Robert Kuttner on the “Most Serious Financial Crisis Since the Great Depression”: “This is the Result of Rightwing Ideology and the Political Power of Wall Street
http://www.democracynow.org/2008/1/23/recession

Amy Goodman: The solutions now—the Fed interest-rate cut, the stimulus package—is this enough, Robert Kuttner?
ROBERT KUTTNER: No, it’s not the beginning of enough. And I think the place to start is to recognize why this recession is different from all other recessions. This began and is continuing with a collapse in credit markets, and the collapse in credit markets is, in turn, the result of deregulation gone nuts. And it’s a repeat of a lot of things that happened in the 1920s, where there was too much speculation with too much borrowed money and a complete lack of transparency. The regulators, the public had no idea of what these bonds that had been created out of subprime mortgages really contained, what they were worth. The people who packaged them were not subject to any kind of regulatory scrutiny.
. . . .
This did not just happen. This was not an accident. This was the agenda of business, particularly Wall Street, going back thirty years. And if you look at the history of this, the Great Depression discredited free-market ideology, because it was such a colossal practical failure. Nobody in the 1930s could argue with a straight face that free markets worked.

And so, we had a whole mixed economy, a regulatory structure invented during the New Deal, that really lasted thirty or forty years. By the ’70s, for a variety of reasons, big business had recovered a lot of the political power that it had lost in the Depression. And both parties, beginning with Carter, continuing with Clinton, became enablers of the kind of deregulation that finally has come home to roost in this crisis. So now we’re learning, painfully, for a second time a lesson that we never should have had to learn twice, that markets don’t regulate themselves. Markets, left to their own devices, create grotesque inequality, ruin the environment and ruin the economy. And we’re seeing that unfold.
. . . .
. . . they need to hang this around the necks, not just of the Republican Party, not just around George W. Bush, but around the whole conservative ideology, because this economic mess is the gift that’s going to keep on giving, unfortunately, for years to come, of rightwing ideology put into practice in its most extreme form since Reagan. And that message, I think, has to keep getting out. This did not come out of thin air. This was not like a comet striking the earth. This was the result of rightwing ideology and the political power of Wall Street taking over the economy
.“>

Robert Reich | Darker Days Ahead?
http://www.truthout.org/docs_2006/012608F.shtml
<According to Robert Reich in Newsweek,
"Think the last few days have been bad for Wall Street and the rest of the world's markets? Hang on, things are probably going to get worse, says Robert Reich, President Clinton's former secretary of Labor and author of the recent book 'Supercapitalism: The Transformation of Business, Democracy and Everyday Life.' According to Reich, who currently teaches public policy at the University of California, Berkeley, the United States might even be headed toward a depression.
">

Hard Times A-Coming
http://www.informationclearinghouse.info/article19133.htm

Neither Supply-Side Theory Nor Keynesian Remedies Can Save Us Now
http://www.counterpunch.org/roberts01222008.html

Also, from a new film, "Chalmers Johnson on American Hegemony," aka ("this is the way empires end”)
http://www.tomdispatch.com/p/chalmers_video
or view it at:
America – A Bankrupt Empire
http://antiwar.com/justin/?articleid=12259

IRAQ: KILLING AS IF WE WERE MORAL, SPENDING AS IF WE WERE RICH

January 23, 2008
U.S. War Costs In Iraq Up: Report
By REUTERS
WASHINGTON
(Reuters) - . . . . "Funding for U.S. operations in Iraq and Afghanistan and other activities in the war on terrorism expanded significantly in 2007," the Congressional Budget Office said in a report released on Wednesday. War funding, which averaged about $93 billion a year from 2003 through 2005, rose to $120
billion in 2006 and $171 billion in 2007 and President George W. Bush has asked for $193 billion in 2008, the nonpartisan office wrote. . . . . Since the September 11, 2001, attacks on the United States, Congress has written checks for $691 billion to pay for wars in Iraq and Afghanistan and such related activities as Iraq reconstruction, the CBO said.

More: http://www.nytimes.com/reuters/news/news-iraq-usa-spending.html?_r=1&oref=slogin

From ICH:
Number Of Iraqis Slaughtered Since The U.S. Invaded Iraq 1,168,058
http://www.justforeignpolicy.org/iraq/iraqdeaths.html
Number of U.S. Military Personnel Sacrificed (Officially acknowledged) In America'sWar On Iraq 3,932
http://icasualties.org/oif/

Documenting How the Busies Lied the Country into War
The Center for Public Integrity web site documenting the lies that the Bush administration used to destroy so many lives:
http://www.publicintegrity.org/WarCard/

NY Times article on CPI's "False Pretenses" site:
http://www.nytimes.com/2008/01/23/washington/23database.html?_r=1&scp=1&sq=Web+Site+Assembles+U.S.+Prewar+Claims&st=nyt&oref=slogin

KUCINICH

Well, the media finally mentioned Kucinich the other day—when he dropped out of the “race” for president. Due to lack of media attention, many people didn’t even know he was running. Part of the solution is public financing for election campaigns, instant runoff voting, and reform of the primary system with something like regional primaries. We don't need the media and a small fraction of the American electorate telling us who will appear on the final ballot.

Wildflowers will be in next blog.