Showing posts with label PBS. Show all posts
Showing posts with label PBS. Show all posts

Wednesday, March 28, 2012

A Description of the Slow Slide to Fascism in the U.S. by Rocky Anderson

[Edited 3/30/12]

I don't watch much TV. I rarely turn it on at my place, much preferring to find news and entertainment on the internet. Tuesday night, at my best and dearest friend's home, I watched PB'S' "News Hour" and two NCIS programs on CBS. The "News Hour" had an obviously propagandistic piece subtly demonizing Syria and the Assad government, ultimately insisting upon Assad stepping aside. The one and only guest on that segment was Andrew Tabler from the Washington Institute for Near East Policy (WINEP), a pro-Israeli foreign policy think-tank. WINEP is a simply another propaganda arm of AIPAC, the American Israel Public Affairs Committee, the most incredibly powerful lobby in the US today for the interests of Israel (See The Israel Lobby for starters). There were no opposing guests to speak for the Syrian state, whose territory on the Golan Heights has been illegally occupied by Israel since the 1967 war (never mentioned on "News Hour"). This is typical one sided PBS and NPR fare, even though they claim to God's gift for unbiased information to the American public.

It would have been adequately "fair & balanced," and much more informative and interesting, if they had included someone like Eric Margolis, or any of the AntiWar.com stable of writers, on the same program as and antidote to PBS's (and NPR's) AIPAC/Neocon guest list.

For another side of the story, see "THE DANGEROUS MESS IN SYRIA GROWS MURKIER" and listen to Scott Horton's recent interview with Eric Margolis on Antiwar Radio. In the interview, Margolis states that the US, Britain, France, aligned with Israel and Saudi Arabia, along with right-wing forces in Lebanon, have been infiltrating armed fighters into northern Syria from the beginning, much like the French intelligence did to create the self-serving early Bengazi insurgency in Libya.

The sound went out on PBS, so I switched to NCIS on CBS. The first hour was the usual, promoting the military police as a profoundly caring, justice seeking organization, just like most cop shows do for the police. The second, NCIS Los Angeles, was different. Like other police and military TV programs I have watched in the past, it ended up promoting not just killing willy-nilly, but in addition, the most egregious violations of Constitutional due process, simply because a Navy Seal Team had decided it was OK to kill a citizen because they thought he was a spy for the Taliban in Pakistan. No court order and no due process needed, because Seal Teams are all about honor and defending us. Ultimately, the powers that be in NCIS gave a wink and a knowing smile, and looked the other way, even though they knew the Seal Team members were involved in an extrajudicial killing of an American citizen on US soil without due process. I guess the message is that we need to forget the Constitution when, not just the Commander in Chief, but even teams of military commandos, decide amongst themselves that an American citizen on American soil needs to be "taken out" without formal charge or trial.

I thought about what a brain-washed and militarized society we have become--as TV has traveled quite a long way from the "I Love Lucy" shows of my youthful days. But hey, that's who we Americans are now--that's what we do--we kill people without regard to their Constitutional rights, or their rights as human beings. We tell only one side of the story. We threaten or make war upon nations and national groups at the command of the governing elites, Neocon think tanks and the corporate and "public" media, whenever they tell us those nations are "undemocratic," "kill their own people" (as we did in the most atrocious fashion during our own "Civil War"), and otherwise need a good thrashing. All this with no regard to the consequences for our own lives or for the lives of the people we attack. Constitutional protections of due process in a court of law, simply don't matter if the Executive Branch, the Military, or some other powerful group decides they don't. They are God.

How the hell did we get here???? Have we always been this way? Well, sort of, but it keeps getting worse (Are we just going back to the dark ages?).

Back in the last "just war," WWII, we killed hundred of thousands of civilians by dropping atomic bombs on Hiroshima and Nagasaki, Japan, and killed many more thousands of innocent women and children, while destroying priceless European architecture, in Dresden, Germany, just to make a point. Afterwards we ignored all that and tried the Nazis for their atrocities during the war crimes tribunals, and made war crimes of the German sort, violations of international law. Since then, only weak nations have been tried for war crimes, even though it is the US and the West that violate those same international laws routinely.

Back in 1967 and '68, I faced a decision. As a poor boy of 17-18, I had fallen into an even deeper poverty than I had known previously, when growing up in a lower middle class family that became divided by separation, and then divorce. When I tried to go off on my own to escape an untenable situation, my brother helped me buy books so I could attend the local community college, during a time when my life and mind were in great turmoil (for reasons I won't go into). In the summer of 1967, a friend and I hitch-hiked to Montreal, Canada, for the world's fair, and on to Boston and New York, and I came home a changed person, even more aware of what I considered to be a dishonorable war against the people of Vietnam, a people who had every right to seek self determination and to fight their own civil war, even if one side was socialist/"communist". In late 1967, if I remember it all correctly, my roommate, another dear friend, and I protested the Vietnam war by inscribing "Hell No, we won't go" on the college lawn (a nearly meaningless and ineffective statement, I must confess). We were two of very few there who spoke out against the War, even though just months earlier we had considered going to Israel as volunteers to help the Israelis in their struggle with the Palestinians. My good friend and roommate was Jewish and at the time we had been overcome by the false pro-Israeli narrative in the popular press. Such was the change in my own personal awareness of American Empire during that brief period of 1967 and 1968.

To make a long and very personal story short, after the Viet Cong's Tet Offensive in January, 1968, a new draft of 48,000 men was announced in February. I faced the loss of my college deferment and ended up in the Army. I could have gone to Canada, but had no support or wherewithal to do that, and did not wish to saddle my Army-Airforce father with having a son who chose not to serve. I was not, and could not truthfully claim to be, a conscientious objector to all wars in the religious sense, because I was, and still am, essentially an atheist. Atheists, after all, couldn't possibly have strongly held moral and ethical convictions--Godless people are lost souls and excluded from the possibility of morality.

In my induction papers, I told the Army that I would not participate in any war that was not similar to World War II, and the attack on America at Pearl Harbor, which appeared at the time to be a truly defensive war. They took me anyway, but after my father's early death, just after my 20th birthday, I engaged in various forms of resistance. It was a long, difficult, problem-filled rocky road that eventually kept me out of the much more threatening and problematic Vietnam War, and which left me with an honorable discharge, thanks to military friends who favored my sentiments. My life was eventually deeply affected by my choices, especially when I faced bosses who had served willingly and had killed innocent Vietnamese as if it were the honorable thing to do. Even though I received an honorable discharge, I most often had to truthfully state the facts of my Army experience in job applications, and particularly in cases when the boss was a Vietnam vet, it did not serve me well. They had their own bitterness, and revenge to exact on those who opposed the war and who questioned the ultimate value of their service.

In any event, the fruitless and destructive Vietnam War produced many more war crimes against innocent civilians, including the dropping of napalm on villages and the massacre at Mai Lai.

The point of this story, is that we all face choices, and as a nation, we need to create choices with more productive outcomes. Unfortunately, if Americans choose to not willingly participate in thoughtless, often criminal, always destructive and murderous, US wars against any defenseless nation, targeted for dubious reasons by our government, there can be a heavy price to pay. Others make a different choice, and they too, will live with it the rest of their lives, even if they are economically and socially rewarded for it. The targeted nations, however, live in a hell that most of us cannot even imagine.

Most often, in the absence of an equitable draft, now referred to as the "volunteer Army," it is the poor, due to their circumstance, and other people with few options, who end up fighting these rich men's wars. Without an equitable draft, one that would not permit the purchase of college deferments by the wealthy, low income people are sucked in by what is really a "poverty draft" in order to find income producing work and the self esteem so easily bestowed upon them by the upper classses and the one percent--those who will never have to risk their lives doing the devil's work--and who can live their often successful lives as if it never happened.

To the other veterans I offend: In a world of media propaganda and lies, I understand why you did what you did, and the honor you were seeking. I also understand and most honor those war veterans who came to realize the falsehoods that drove them to war, and the shame some feel for killing innocents, but mostly I understand the contempt they must feel for the officials and government who stole their lives to send them into wars based upon falsehoods, as currently is the case in Iraq and Afghanistan.

It is time for all, veterans and non-veterans alike, to wake up to the carnage, cultural dysfunction, and reactionary "terrorist" hatred, that we Americans are inflicting upon the world through our senseless wars. They leave us and other nations impoverished and serve no one other than the military-industrial complex, the one percent and their global war on the national self determination of others. Too often today, the "State" of Israel, which was imposed upon the Palestinians and Arabs in 1948, and which has been violating international laws and the rights of Palestinians ever since, is the ultimate beneficiary, as if it were really in our national interest.

In fighting the ever widening wars on "terror," which are the logical result of our own aggressive, oppressive, and wildly destructive wars on many nations, and beyond the important issue of degrading our own ethical and moral principles, we have decimated our own Constitutional rights to privacy and due process as American citizens, thus enabling the current slide into fascism. Today, President Obama thinks nothing of killing American citizens without judicial warrant simply on the advice of questionable advisors, while allowing the killing of others in foreign lands who resist, including many civilians, with drones directed from afar. He is cheered on by even more savage and "right-wing" militaristic AIPAC oriented Republicans who would likely be even more improvident and immoral were they in the oval office.

In the article below, Rocky Anderson, former Mayor of Salt Lake City, Utah, asks us to reconsider the guiding principles we have historically held dear, how they have been undermined in recent decades, and how we might restore them. I agree with much he has to say, but disagree with notions that would invite endless immigration to a finite nation with many long-term issues, both physical and social. It's a long read, but well worth your while.
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An End To Authoritarianism and Plutocracy in the United States: It's Up to Us

By Ross C. "Rocky" Anderson
Hinckley Institute of Politics

March 28, 2012 "Information Clearing House" ---

Let us consider the fundamental guiding principles for the United States of America -- freedom, equal opportunity, compassion, and security.

Then let us consider how those principles have been severely undermined, and how we, the American people, can restore them so that once again our government is of, by, and for the people, rather than a tool of oppression cynically utilized for the benefit of a small, powerful, abusive, elite political and financial class, to the detriment of the vast majority of U.S. citizens, as well as billions of people around the world.

We often hear it said that the United States is the greatest nation in the world. What exactly is meant by that? And is it true? The more important question is: Can we, the American people, make this, once again, a great and proud nation -- a nation that lives up to its original promise? We can achieve that -- if only we will.

Who are we as a people, what do we really believe in, and just what does our nation stand for? How far have we drifted away -- or, rather, bolted away -- from what we once were? And how do we, once again, attain greater freedom, more equal opportunity, compassion, and security for all?

These questions have never been more vital to consider and confront. Our nation has been transformed in just a few short years -- virtually unrecognizable in fundamental respects when compared to the republic that once proudly proclaimed a constitutional system of checks and balances, the rule of law, and constitutional protections of due process, restraints on war-making, and a truly balanced system of separation of powers among three co-equal branches of government.

We are at a nation-changing -- even world-changing -- fork in the road. We can continue on the path of becoming more totalitarian, even fascist, with an imperial presidency that continues to accrue to itself unprecedented tyrannical powers; more greedy as a nation and as a people; less capable to compete on a global stage; more empire-building and war-mongering; less equal under the law; more divided, in terms of income and wealth, between a tiny elite financial aristocracy and the rest of our citizenry; more cruel toward men, women, and children, here and abroad, who are not part of the elite political and financial classes; and less secure, as a nation and as individuals, now and in the future.

Or we can turn things around radically, becoming more free and respectful of the fundamental rights and interests of people in the U.S. and elsewhere, with restraints on executive power -- and accountability for abuses of that power -- as contemplated by the founders and by our Constitution; more generous and helpful as a nation and as a people; more capable of competing with other nations, their students, and their workers; more cooperative and friendly toward other nations; more committed to liberty and justice for all; more prosperous, with a strong, healthy middle class, capable of living rewarding lives through equal opportunity; kinder and more compassionate toward our own citizens, immigrants, and men, women, and children in other nations; and more secure in our homes, our communities, and our nation, presently and in the future.

The second sentence of the Declaration of Independence sets forth the general guiding principles of the founding of our great nation:

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.

There could be no stronger affirmation of our nation's guiding principles of freedom, equal opportunity, compassion, and personal, familial, community, and national security.

These guiding principles ring loudly in the first sentence of our Constitution:

We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.

The guiding principles, then, set forth in the Declaration of Independence and our Constitution are that people -- all people, not just citizens of the United States -- are created as equals, they all have unalienable rights, including the right to life, the right to liberty and the right to pursue happiness, that we seek to establish justice, ensure domestic tranquility (that is, peace), provide for the defense of our nation (that is, security), promote the welfare of everyone, and secure liberty not only for us, but for later generations -- "our posterity".

It is for each generation to exercise conscientious diligence in sustaining those guiding principles. Sadly -- tragically --, those who were to have represented our interests in Washington, particularly during these past ten years, have severely undermined those principles. And we, the people, have not sufficiently spoken out and acted to return our nation to the principled course set by the Founders. But we can -- if only we will.

After World War II, the U.S. and its allies prosecuted and convicted Germans for war crimes and crimes against humanity at the Nuremberg Tribunal. The chief prosecutor was United States Supreme Court Justice Robert Jackson. He made it clear that aggressive war -- that is, a military attack by an aggressor nation against a nation that has not attacked, and is not preparing to attack the aggressor nation -- is a crime, as reflected in a treaty to which the United States is a signatory, the Kellogg-Briand Pact. He emphasized that if the criminal prohibition against war is to have any meaning, it must be applied to all nations, including, as he said, those sitting in judgment at Nuremberg.

The illegality of aggressive war has been reinforced by the U.N. Charter, which expressly prohibits a military attack by one nation against another unless the target nation has itself illegally attacked, or was about to illegally attack, the other nation.

Instead of continuing the proud tradition of the Nuremberg principles, and complying with the Kellogg-Briand Pact and the United Nations Charter, the United States, during the Bush administration, engaged in the blatantly criminal act of invading and forcibly occupying Iraq, a nation that posed no risk of harm whatsoever to the United States. It was the sort of crime for which people were tried and convicted at Nuremberg. Two Secretaries-General of the United Nations, Kofi Annan and Boutros Boutros-Ghali, agreed it was a clear violation of international law -- yet no one has been held to account.

Making illegal war is the most serious crime because it purports to legalize mass murder, severe injuries, mass property destruction, and societal mayhem. Compounding this most serious crime in our invasion and occupation of Iraq, it was committed in blatant violation of the War Power Clause of the United States Constitution, which provides that Congress has the sole prerogative to decide whether to take our nation to war.

Congress cannot avoid its highest responsibility by unconstitutionally delegating to the President the authority to make the decision. However, that is exactly what Congress, in cowardly derogation of its constitutional duties, has sought to do repeatedly.

President Johnson lied to our nation about Vietnam in order to get Congress to allow him to make the decision as to whether we should make war against the North Vietnamese. Likewise, President Bush lied to our nation about Iraq in order to get Congress to pass the resolution allowing him to decide whether to make war against that nation, which had no involvement whatsoever in the attacks on 9/11. Our nation was deceived -- and we were betrayed -- all at an astounding cost in lives, tragedy, and national treasure.

In the run-up to the invasion of Iraq, Congress's abdication of perhaps its most important constitutional role was so pathetic that all but a handful of U.S. Senators (including our present Secretary of State) didn't even bother to walk to a secure room in the Capitol Building to read a National Intelligence Estimate, which made clear, contrary to what President Bush and his administration were telling us, that much of the U.S. intelligence community disagreed with claims about Iraq developing a nuclear capability and about its possession of weapons of mass destruction. In fact, just a few months before 9/11, Condoleezza Rice and Colin Powell independently stated that, following the first Gulf war, Iraq's weapons had been destroyed, it had not re-armed, and it didn't even pose a danger to its neighbors. Senator Bob Graham, who urged his colleagues to read the National Intelligence Estimate, went so far as to warn, correctly, that the security of the people of the United States would be put at great risk if we attacked Iraq, saying to his colleagues that, if they voted to allow the president to make the decision to go to war, blood would be on their hands.

More than a million innocent Iraqis killed, more seriously injured, and vast hatred and hostility generated throughout the Muslim world toward the United States, making us much less safe for generations to come -- all on the basis of lies. Had Congress done its fact-finding job and met its constitutional responsibility to determine for itself if war against Iraq was justified, none of it would ever have happened.

Several presidents since Truman have unconstitutionally made war against other nations, and several Congresses have unconstitutionally sought to delegate their war decision-making power to the president. So where have the courts been to make certain that the War Power Clause of the Constitution is followed? That is, after all, how our constitutional system of checks and balances is supposed to work.

The sad answer that strikes at the heart of our Constitution is that the courts have checked out, making excuses for dodging the question, most often in the form of the court-made "political question" doctrine. The Congress and President both violate the Constitution -- and the courts say, "Sorry, it's a political question and we can't -- or, rather, won't -- do anything about it." In other words, the War Power Clause essentially has been ripped out of our Constitution -- leading to the incredibly dangerous point where one person -- the President -- can make the decision as to whether our nation goes to war. That takes us one giant step closer to the tyranny our Founders sought to prevent.

Our nation's proud tradition has been that we do not torture -- and we do not permit torture. George Washington ordered his troops to refrain from torturing British soldiers, even when the British were committing such atrocities against colonial soldiers. The Lieber Code forbade torture during the Civil War. The U.S. has court-martialed our own servicemen for torturing, including water boarding -- during the 1900 conflict in the Philippines and during the Vietnam War. Numerous high-ranking members of the military, including Utah's own Brig. Gen. (ret'd) David Irvine, have uniformly called for enforcement of the absolute prohibition against torture, arguing persuasively that torture is productive of misinformation because torture victims will say anything in order to avoid further torture; it creates far more hatred and more enemies; and it creates a more dangerous situation for our own servicemen and servicewomen. Also, of course, it is fundamentally immoral, blatantly illegal, under both international and domestic law, and dehumanizing and demoralizing to those who engage in the torture.

We know now that President Bush and others in his administration authorized the use of torture. Unbeknownst to us at the time, on the day before President Bush was at the Opening Ceremony for the 2002 Salt Lake Winter Olympic Games, he signed a memorandum stating, directly contrary to what the Supreme Court later ruled, that the Geneva Convention protections against torture would not apply to people detained in the so-called war on terror. His authorization of torture, and the authorization by others in his administration of torture, constitute war crimes, under the Geneva Conventions and the Convention Against Torture, as well as under laws passed by Congress, including the War Crimes Act of 1996 and the federal anti-torture statute.

When President Obama said concerning those war crimes -- and about the federal felonies committed by those who engaged in warrantless surveillance of Americans' communications -- that there should be no accountability for the crimes because, in his words, we should look forward and not back, he dangerously contributed to the further deterioration of the rule of law in our nation. His virtual granting of immunity, notwithstanding the requirement in the Convention Against Torture that all signatories must prosecute torture as they do other serious offenses, is completely contrary to all applicable laws -- and characteristic of a dictator who believes that he is the law. It is another major ratcheting up of the imperial presidency -- and another momentous degradation of the rule of law and our constitutional system, in which the president and other members of the Executive Branch are to be constrained by the law and by the other two branches of our government. That evisceration of the rule of law by President Obama and a Congress that has timidly fallen in line with the assertion by the Bush and Abama administrations of unprecedented executive powers take us one more giant step closer to the tyranny our Founders sought to prevent.

President Bush was not only a "decider," he was an innovator. For the first time in our nation's history, we fought a war, then two wars -- and, at the same time, instead of raising revenues for the wars, he and the complicit Congress gave enormous tax breaks to the very wealthy. It was as if we took out credit cards in the names of our children and charged the costs of the wars on them, while enriching the very rich even more. It was a continuation of a reckless pattern of pandering by so-called conservatives -- aided and abetted by Democrats. Between 1979 and 2006, the top incremental tax rate on earned income was cut in half; capital gains taxes were cut by almost as much; and corporate taxes were reduced by more than 25%. Of course, not many corporations pay according to even that rate because of all the loopholes and deductions their lobbyists have pushed through Congress over the years.

If the Bush tax cuts had been allowed to expire in 2010, as promised, for people with incomes over $200,000, federal revenues would increase approximately $140 billion during this year. That would be sufficient to cover basic health care needs for those without coverage in the United States. What would the impact be on those making more than $200,000 a year? It would reduce their aftertax incomes, on average, by about 4.5%.

When offered the choice between health care for all or an elimination of the Bush tax cuts for the wealthy, Congress and the President have chosen less taxes for the wealthy.

The corrupting influence of money in our political system -- the massive campaign contributions that essentially put Congress and the White House on retainer to the wealthy -- has contributed significantly to what I call the Great Chasm. One of many examples is what Washington politicians -- those who are supposed to be representing all of us -- did for hedge fund managers. Our tax laws now allow hedge fund managers, some of whom make more than a billion dollars a year, to have most of their earnings taxed at the capital gains rate, 15%, while middle class working men and women pay a significantly higher rate. That loophole alone costs the federal government more than $6 billion in lost revenue, which would be enough to provide health care to three million children.[1] Almost $2 billion of that tax boondoggle goes to 25 people.[2]

Over the past decade, the incomes of the middle class have fallen, while those in the top 1 percent have enjoyed, on average, an increase of 18% in their incomes. And what incredible incomes they are! The top 1 percent in the United States are paid about 25% of the total income -- and they control a whopping 40% of the total wealth. The disparity in income and wealth between the small privileged class of the economic aristocracy and the rest of us in this nation has never been as great as it is now since the 1920's, on the eve of the Great Depression.

This is not something that just naturally happens because of market forces. It happens because of politicians serving the elite financial aristocracy to the immense detriment of the public interest.

How did we build a strong, healthy middle class and a prosperous economy following the Great Depression -- and what is taking us back now to the gross inequality and tremendous insecurity for most people reminiscent of the Gilded Age?

As Paul Krugman[3] describes, in the 1920s, there was a vast political polarization and an enormous income and wealth disparity -- very much like today. However, political reform -- public policy geared toward making life better for the vast majority of Americans -- made all the difference. There was a vast narrowing of the gap between the wealthy and the rest of the nation -- what Krugman calls "The Great Compression." It was entirely the opposite from today's Great Chasm.

Incomes for the very wealthy actually decreased from the 1920's to the 1950's, while the incomes for middle class families about doubled. The middle class also had greater security, with employers offering new benefits like health insurance and retirement plans. The federal government also provided unemployment insurance and Social Security for retirees.

It all equated to a major economic democratization of American society, with much narrower differences between the pay for executives and line workers, and much narrower differences between employees with formal education and manual laborers. Just the opposite of what we're experiencing today.

Much of the Gilded Age class consciousness was gone by the 1950s. And now it has returned. Many of the wealthy turn their backs on the quality of public education as they enroll their children in private schools. Many of the wealthy live only among themselves, providing for their own security, as they isolate themselves in gated communities. Only the best in medical care for the wealthy, while 50 million people go without basic health care coverage -- and, even if the Obama plan is fully implemented 23 million men, women, and children will be without essential medical coverage, unlike any other nation in the developed world. And 700,000 bankruptcies each year are attributable to enormous medical bills -- again, a tragedy unknown throughout the rest of the industrialized world.

Much of the change came about because of taxes. In the 1920s, the top income tax rate was only 24%. The top income tax rate rose to 63 % during the first Roosevelt administration, and 79 % in the second. By the mid-fifties, the top tax rate had risen to 91% -- and that was under the Republican administration of Dwight Eisenhower. Today's top tax bracket -- applicable only to income in excess of $388,000 -- is only 35%, yet listen to the wealthy and their lapdogs in Congress howl when anyone has the temerity to suggest that perhaps they should pay their fair share to help reduce the accumulated debt and tremendous interest burden we will hand off to our children and later generations -- and to lend a hand up to those living in poverty, including 22% of our nation's children.

The average corporate tax rate increased from less than 14% in 1929 to more than 45 percent in 1955 and 48% in 1979. Today's corporate tax rate is 35%, but the average corporation pays no more than 15%, and many corporations, like General Electric, taking advantage of massive loopholes and deductions corporate lobbyists have pushed through Congress, pay nothing at all.

The same thing happened with estate taxes -- what the Republicans, with the aid of the spin-meister Frank Luntz, would have us call "death taxes." Estate taxes went from 20% in the 1920's to 45%, then 60%, then 70%, and up to 77%. Today, the estate tax, applicable only to estates in excess of $5.12 million, is 35%. Yet listen to some of the wealthy whine -- as if their descendants are somehow entitled to more than $5 million without any taxation, while 22% of the children in the United States live in poverty.

If, following the 1920s, taxes accounted for the decrease in wealth for the very rich, what accounts mostly for the increase in wealth and income for most of the rest? In large part, it was the union movement. By the end of World War II, more than a third of nonfarm workers were union members. Strong union advocacy means higher wages, better benefits, and a rippling effect that raises wages for others. It also brings into focus the disparity between the pay of top executives and average workers.

Also, during the war, the Roosevelt administration set wages and, given the values of that administration, it tended to set the wages in such a way that the lower paid workers received more increases than others.

The increase in taxes for the wealthy, a strong union movement, and wage controls that shrunk the gap between the wealthy and the middle class led to a much more equal distribution of the total income for thirty years -- as well as unprecedented prosperity. Just the opposite of what we're experiencing today.

The gross inequalities today are alarming -- and tragic. As of 2007, the top 10% owned 84% of the financial wealth in the United States.[4] The bottom 80% owned just 7% of all financial wealth.

Between 1983 and 2004, in large part because of tax cuts for the wealthy and the defeat of labor unions, of all the new financial wealth created in the U.S., 43% of it went to the top 1%. Ninety-four percent of it went to the top 20% -- meaning that the bottom 80% received only 6% of all new financial wealth generated in the United States during the strong economic years of the '80s, '90s, and early 2000s.[5] In short, as working people produced more because of greater efficiencies, they shared in almost none of the gains -- while investors and top executives took almost all of it.

One factor contributing to this gaping disparity is yet another outrage: the average executive pay as compared with the average factory worker pay. CEO pay by 102 major companies was about 40 times that of average full-time workers in the U.S. By the early 2000s, CEO pay averaged 367 times the pay of the average worker.[6] In 2007, the ratio between CEOs and factory workers was 344:1, while in Europe it was about 25:1.[7]

What can we, the American people, do? First, recognize that the Democratic and Republican Parties are a democracy-destroying political duopoly, which has joined forces in shafting the vast majority of Americans, who are struggling every day to just get by, while serving politicians' campaign contributors, including Wall Street bankers, for-profit insurance companies, the pharmaceutical industry, hedge fund managers, for-profit colleges (many of which are owned by investment banks), and anti-union forces. These Democrats and Republicans deregulated the financial industry and looked the other way while financial institutions and their officers engaged in wholesale fraud -- all of which led to the economic melt-down from which we are still reeling, while the perpetrators are still lining their pockets with multi-million dollar bonuses, derived from government bail-outs.

They are the same duopoly that has caved to the fossil fuel industry in failing to provide essential international leadership to prevent the most catastrophic consequences of climate change. They have become so craven that President Obama even vetoed the EPA's effort to reduce the emission of ground level ozone and has now paved the way for the southern leg of the Keystone XL Pipeline and vastly expanded offshore oil drilling.

They are the same duopoly that thinks so little of our democracy that they have made it almost impossible for any new party or independent candidate to get on several states' ballots -- and, through their total control of the Presidential Debate Commission, which hijacked the presidential debates from the League of Women Voters, have prevented any non-plutocratic voices from being heard by the electorate during presidential debates.

In short, each of us can say: "We're not going to take it any more. We have drawn our line -- and won't budge from it.

We won't support anyone who disregards our Constitution and the rule of law.


We won't support anyone who tortures, authorizes torture, or opposes accountability for those who torture.


We won't support anyone who targets U.S. citizens for assassination.


We won't support anyone who will not work to stop the insane and inhumane incarceration of 2.3 million people, many of them for non-violent offenses -- an incarceration rate far greater than any other nation on earth and which is applied with a vengeance toward African-Americans and Latinos.


We won't support anyone who fails and refuses to face up to the need for rational, compassionate immigration reform.


We won't support anyone who will not commit to provide our students with an equal opportunity to obtain a higher education and equip themselves to be competitive globally with students and employees in other nations.


We won't support anyone who asserts the power to kidnap and indefinitely detain people, including U.S. citizens, without charges, trial, assistance of legal counsel, or right of habeas corpus -- perhaps the most subversive, anti-American stance ever taken by a Congress or a President in our nation's history.


We won't support anyone who takes, or purports to authorize a president to take, our nation to war without a finding by Congress that war is justified -- and without compliance with the U.N. Charter, to which the U.S. is a signatory.


We won't support anyone who allows the continuation of Bush's budget-busting tax breaks for the wealthy.


We won't support anyone who makes it more difficult for working men and women to organize.


We won't support anyone who continues to allow multi-national corporations to profit by depriving U.S. workers of their jobs while exporting millions of jobs with nearly slave conditions in other nations.


We won't support anyone who refuses to implement programs like the Works Progress Administration to hire millions of people to build up our nation's rapidly deteriorating infrastructure.


We won't support anyone who refuses to strengthen, rather than undermine, the safety nets provided by Social Security, Medicaid, and Medicare.


We won't support anyone who fails to provide crucial leadership on climate change and a thriving clean energy economy.


We won't support anyone who refuses to commit to do everything possible to rid our government and electoral system of the corrupting influence of money.


And we won't support anyone who refuses to join the rest of the industrialized world in providing a health care system that costs much less, produces far better medical outcomes, and is available to everyone.

For those who are cynical, for those who are resigned to not being able to overcome the corruption and perversity of the influence of money in our plutocracy -- that is, government of, by, and for the wealthy --, I urge you to find inspiration in our own nation's long history of progressive social movements, as well as from recent examples in the Arab world.

Major movements, such as the anti-slavery movement, the women's suffrage movement, the labor movement, and the civil rights movement, all succeeded because of the tenacious, passionate commitment and activism by people, organized at the grass roots level. And there was a lot of money aligned against many of them -- yet they prevailed.

Consider also that people in the Arab world -- for instance, in Tunisia, Egypt, and Libya -- recently organized, utilizing the democratized means of communication offered by social media, and succeeded in overthrowing long-time oppressive dictators. So, too, can the people of the United States, organize together, take a principled, courageous stand, and overthrow the corrupting influence of money in our government, including our electoral system, and achieve the restoration of the rule of law, a recommitment to fundamental constitutional principles, the reestablishment of the system of checks and balances essential to our republic, and a recommitment to the core values that will make this country great again: freedom, equal opportunity, compassion, and security.

Ben Franklin was approached by a woman as he was leaving the Constitutional Convention in Philadelphia. She asked him, "Doctor, what do we have -- a monarchy or a republic?" Franklin responded, "A republic, ma'am, if you can keep it."

It's up to us. If we don't take action, and insist on a return to the practices and policies that reaffirm our most fundamental values, our republic and all it stands for could be lost forever. However, if we will, we can restore our republic and breathe life once again into our Constitution and recommit to all that can make this nation once again what the Founders, and those who have given their lives for our freedoms and values, intended and expected. Rocky Anderson's 2012 Presidential Campaign Website www.voterocky.org

NOTES

[1] Paul Krugman, The Conscience of a Liberal (W.W. Norton & Company: New York London: 2007), p. 250.
[2] Id.
[3] Paul Krugman, The Conscience of a Liberal.
[4] "Financial wealth" means net worth minus the value of one's home.
[5] G. William Domhoff, "Wealth, Income, and Power," www2.ucsc.edu/whorulesamerica/power/wealth.html?print, citing E. N. Wolff (2007) "Recent trends in household wealth in the United States: Rising debt and the middle-class squeeze. Working Paper No. 502. Annandale-on-Hudson, NY: The Levy Economics Institute of Bard College.
[6] Paul Krugman, supra, at 142.
[7] G. William Domhoff, supra.

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Michael Franti - Bomb the World

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Iris Dement Wasteland Of The Free

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"War" by Edwin Starr (Original Video - 1969)

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Peter Paul & Mary - Blowin in the wind

Tuesday, November 24, 2009

Manufacturing Consent For An Attack On Iran

IN THIS ISSUE:

- Obama's Nuclear Spring

- More News on Israel

- Bill Moyers To Retire; PBS Cancels “Now”


THIS EDITION WAS EDITED AND MORE INFORMATION WAS ADDED ON 11/25/09.
________________________

Obama's Nuclear Spring [Israel Lobby's Wishful Thinking & Anybody's Guess]

An Israeli attack on Iran's atomic "weapons plants" rests on one thing – the US president's approval

By Benny Morris
http://www.informationclearinghouse.info/article24049.htm

[My comments are in brackets [. . . .]]

[Benny Morris is considered an evenhanded and talented, yet "revisionist," Israeli historian. His earlier works, (like Righteous Victims: A History of the Zionist-Arab Conflict, 1881-2001 http://www.amazon.com/Righteous-Victims-Zionist-Arab-Conflict-1881-2001/dp/0679744754/ref=ntt_at_ep_dpi_4) were more truly evenhanded and truthful, but like many of us, he has become more conservative, (and, unfortunately, in his case, protective of the illegal and inhumane Israeli Zionist project) in his older (declining?) years. Even back in July of 2008, he was predicting that Israel would attack Iran's nuclear POWER facilities. See Nader Page comments: (And if you doubt the seriousness of the situation, check out Israeli historian Benny Morris' recent Op-Ed in the New York Times in which he predicts that Israel will bomb Iran within four to seven months. http://mail.google.com/mail/?hl=en&tab=wm#search/Benny+Morris/11b559689978ef4d) Please keep in mind that Israel, a non-signatory to the Nuclear Non-proliferation Treaty (Iran signed it, bringing them much grief), has something like 200-500 nuclear bombs. The Palestinian lands of the West Bank and Gaza are occupied illegally by Israel, as are all of the Israeli settlements. See Also: Report Ties Dubious Iran Nuclear Docs to Israel http://www.informationclearinghouse.info/article22765.htm and The Grim Picture of Obama's Middle East http://www.informationclearinghouse.info/article22777.htm]

November 24, 2009 "The Guardian" --

The talk in Israel, explicit and open – including in the country's leading daily, Haaretz, last week – is about a war in the coming spring or summer. The skies will have cleared for air operations, Israel's missile shields against short- and medium-range rockets will at least be partly operational, and the international community, led by President Obama, will palpably have failed to stymie Iran's nuclear weapons programme. And the Iranians will be that much closer to a bomb.

Binyamin Netanyahu, the prime minister, and Ehud Barak, the defence minister [Both War Criminals], will then have to decide if Israel can live with a nuclear Iran and rely on deterrence. But if they judge the risk of a nuclear assault on Israel too great, Israel's military will have to do what it can to destroy Iran's nuclear installations, despite the likely devastating repercussions – regional and global.

These will probably include massive rocketing of Israel's cities and military bases by the Iranians and Hezbollah (from Lebanon), and possibly by Hamas (from Gaza). This could trigger land wars in Lebanon and Gaza as well as a protracted long-range war with Iran. It could see terrorism by Iranian agents against Israeli (and Jewish) targets around the world; a steep increase in world oil prices, which will rebound politically against Israel; and Iranian action against American targets in Iraq, Afghanistan and the Gulf. More generally, Islamist terrorism against western targets could only grow.

But it is not only Israel's leaders who will have to decide. So will Obama, a man who has, in the international arena, shown a proclivity for indecision (except when it comes to Israeli settlements in the West Bank)
[See http://www.guardian.co.uk/world/2009/nov/12/obama-middle-east-policy-stalled]. Will he give the Israelis a green light (and perhaps some additional equipment they have been seeking to facilitate a strike) and a right-of-passage corridor over Iraq for their aircraft? Or will he acquiesce in putting atomic weaponry in the mullahs' hands?

It is clear – and should be by then to all but the most supine appeasers [give me a break!] – that the diplomatic approach is going nowhere [ the diplomatic approach is to tell Iran not to defend themselves against the Israeli nuclear threat--or else], with the Iranians conning and stonewalling and dragging their feet, all the while enriching more uranium. And Tehran is laughing, as it were, all the way to Armageddon. Ahmadinejad and the mullahs know full well that the west will never impose the only sanctions that could work (a complete boycott of Iranian oil and cessation of the export to Iran of all products).

Some in the west blithely hope that the Iranians are aiming for a low-key and shadowy "bomb in the basement", rather than immediately usable atomic bombs, and that this reduces the necessity of a pre-emptive military strike. My guess is that Iran has not taken this giant gamble in order to achieve a dubious, implicit capability: it will not stop short of actual, usable atomic weapons with which to overawe and gain hegemony over its neighbours, deter the west and, perhaps, destroy Israel. [Israel, having already created nuclear weapons with the help of Great Britain and the US, currently uses those weapons and their fabulous conventional military might "to overawe and gain hegemony over its" Arab neighbours. That's just fine with Morris.]

So Obama is fast approaching his moment of truth. His predecessor, George Bush, repeatedly assured Israel that the US would not allow fundamentalist Iran to attain the bomb. The implication was that America itself would prevent this – at the last resort, by military means.

Today that seems highly unlikely. Obama is enmeshed in two wars in Muslim lands, with Afghanistan looking increasingly unwinnable, and Iraq stumbling either toward de facto partition or growing subordination to Shia Iran. With an American public increasingly tired of war, any war, the US president is unlikely to send in the air force, navy and special forces to smash the Iranian nuclear installations.
[Well, you never know what the "Peace President" will do!]

There is a sad double irony here. The Iranians and their proxies are likely to attack American targets whether or not the US is involved in a strike against Iran. [No kidding! It is America that has provided Israel with the weapons it has used to subdue and oppress the Plalestians and other Muslims in the Middle East!] And while Israel's conventional military capabilities are limited and could probably delay the Iranian acquisition of nuclear arms only by a few years, American conventional might – if brought resolutely and efficiently to bear – could completely halt Iran's nuclear project and thoroughly destroy its military carapace in a few weeks of intensive bombing; indeed, the regime itself might collapse like a house of cards, as did Saddam's under the American onslaught of March 2003.

This is not going to happen. Nevertheless Obama will soon have to decide whether to give Israel a green light, and how brightly it will shine. And soon. For spring is fast approaching.

-----
We live in interesting times.

It will be instructive to see what Obama does regarding the escalation of the illadvised war in Afghanistan. If he chooses to escalate, which is the conventional media wisdom, it is likely that Obama will go along with Israel, and his Jewish advisors, and support an Israeli attack on Iran (If he doesn't allow the American military to do it themselves). It is not clear, however, that Netanyahu actually needs a "green light" from Obama to proceed with an attack, as his government has ignored Obama's supposed objections to the continued expansion of illegal settlements. When it comes to Middle East policies affecting Israel, Obama, as well as the last few administrations, have chosen cowardly subservience instead of moral leadership.
___________________________

MORE NEWS ON ISRAEL:

New York State Assemblyman Dov Hikind led a group of fifty American Jews to buy property in illegal Israeli settlement

Democracy Now! Nov. 20, 2009
http://www.democracynow.org/2009/11/20/israel_under_widespread_international_criticism_for

AMY GOODMAN: Meanwhile, New York State Assemblyman Dov Hikind led a group of fifty American Jews to buy property in the nearby settlement of Nof Zion, also in East Jerusalem. During a tour of settlement real estate projects, the Democratic Assemblyman said, quote, “Rather than buying second homes in Florida, we want people to buy in Israel.”

DOV HIKIND: To own something in the land of Israel is something very special. I have been dreaming about that all my life, and finally here’s a place that I am in love with. I don’t want to interfere with anyone. I don’t want to displace anyone. I don’t want to kick anyone out of their home. I have no hate, no malice in my heart. I want to live here, and I’m trying to work that out.

[Yes Dov, please try to work that out. So what that if to make room for you and your Jewish friends, Israel has to evict the Palestinians living there, and bulldoze their homes, often on the best available land. You and your friends are worth it, superior so to speak. So very special, Right? Jerusalem was originally proposed by the UN to be a neutral international city for all three religions (Christianity, Judaism, and Islam), and the Palestinians have long sought to establish East Jerusalem as their Capital in an ever elusive "Palestinian state." Israel, in opposition to UN resolutions, has made Jerusalem the center of their national affairs, and has continued to annex Palestinian lands in East Jerusalem and in other Palestinian areas of the "West Bank."]
______________________________

Bill Moyers Journal
October 23, 2009
The Goldstone Report On Israeli and Hamas War Crimes

Transcript: http://www.pbs.org/moyers/journal/10232009/transcript3.html?print
The Journal: http://www.pbs.org/moyers/journal/index-flash.html



. . . . "There could not have been a more thankless job in the world this year than investigating allegations of war crimes between Israelis and Palestinians. You're about to meet the man who shouldered that task after others had turned it down. And sure enough, he is at the center now of a raging controversy.

Judge Richard Goldstone was born and raised in South Africa, where he came to prominence investigating the vicious behavior of white security forces during apartheid. . . .

Time and again he has placed himself in harm's way and smack in the middle of controversy, but a few months ago he took on what was to become the greatest challenge of his legal career. It came after years of Hamas militants firing their missiles from the Gaza strip into southern Israel. Israel retaliated last December with Operation Cast Lead: 22 days of military action targeting Gaza, those 139 square miles between Israel and Egypt that are recognized as Palestinian territory. More than twelve hundred Palestinians died. Three Israeli civilians were killed and 10 soldiers, four of them the result of friendly fire.When Israeli forces withdrew, Gaza was left devastated and reeling. Not only had military targets been destroyed but thousands of homes as well as hospitals, schools and mosques. The United Nations Human Rights Council called for an investigation. And Goldstone agreed to lead it, but only after expanding the fact-finding mission's mandate to include charges against Hamas as well as Israel.

Over the next several months, Judge Goldstone and his team would thread their way through a minefield of accusation and denial.

In September, he submitted their report, 574 pages, scorching in their detail. The report accused both the Israel Defense Forces and Hamas of war crimes and possibly crimes against humanity. While condemning Palestinian rocket attacks, the report's harshest language was reserved for Israel's treatment of civilians in Gaza.

RICHARD GOLDSTONE: These attacks amounted to reprisals and collective punishment, and constitute war crimes. The government of Israel obviously has a duty to protect its own citizens. That in no way justifies a policy of collective punishment of a people under effective occupation, destroying their means to live a dignified life and the trauma caused by the kind of military intervention the Israeli government called Operation Cast Lead.

The report and the angry debate surrounding it have exposed Goldstone to strident and bitter criticism. Nonetheless, late last week, the UN's Human Rights Council officially endorsed his findings.Richard Goldstone joins me now. Currently a visiting professor at Fordham Law School in New York, last spring he received the prestigious MacArthur Foundation Award for International Justice. His books include "For Humanity: Reflections of a War Crimes Investigator."

_________________________

In another development, Bill Moyers is "retiring" from PBS and his show, Bill Moyers Journal, and PBS is canceling another newsworthy Friday Night program, "Now" by David Brancaccio. Not much reason to watch PBS to find alternative opinions anymore.

Bill Moyers To Retire; PBS Cancels “Now”
http://www.democracynow.org/2009/11/23/headlines

And in media news, Bill Moyers has announced his retirement from weekly television. The last broadcast of his show Bill Moyers Journal will air on April 30th 2010. That day will also mark the final episode of “Now” hosted by David Brancaccio, which has been canceled by PBS.

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.

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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

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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. . . .