Wednesday, December 8, 2010

New Normal



The New Normal (NYT, 12/08/10)

The 'deal' orchestrated by President Obama and his 'team' with the Rethugs is already being debated. Last night, Charlie Rose had four commentators in round-table discussion (more or less; only one was actually in the studio): U.S. Representatives Jan Schakowsky (D - Illinois) and Anthony Weiner (D - NY), Kenneth Rogoff (Thomas D. Cabot Professor of Public Policy, and Professor of Economics at Harvard University), and Al Hunt, the Managing Editor for Bloomberg News.

Rogoff and Hunt were the Center-Right guests; Schakowsky and Weiner (who is one of the Democrats' most articulate and energetic spokespersons) were Progressive-Left. While Rogoff pooh-poohed it all with a well-so-what? attitude, Schakowsky and Weiner were absolutely clear: This 'compromise' adds hundreds of billions of dollars to the National Debt in order to provide tax breaks for billionaires (That, nearly a direct quote from Weiner).

Hunt noted that his reporters tell him the Republicans were willing to make more compromises, if the President and his administration had made a harder fight -- and were amazed when they received everything they wanted, allowing them to give Obama only one real concession: Extension of unemployment benefits.

Hunt related that the Republicans had instructions to give ground on everything except provisions in the Bush Tax Cuts involving the Estate Tax (of most benefit to only the wealthiest Americans with extremely large personal fortunes) -- that they would give Obama everything except that.

Rogoff concluded that there were many provisions in the deal that assisted the working poor and families; Representative Weiner responded that this was important, and that compromise in Washington is expected -- but, he asked, where was the President we voted for? He didn't define the debate for the country, allowing the Rethugs to do that.

Weiner asked, "People expected that [Obama] was going to roll up his sleeves and fight for America's middle-class working families." Why didn't he do that? Why does he say now this deal was the "best" he and his team could do -- when that is so obviously not true?

In the end, Weiner added, the people who benefited the most from the 'deal' were the 10,000 or so members of America's First Families, the top two per cent of the population. Legislation which allows them to protect their billions is long-lasting -- as befits the Rethug perspective that this is the "Owner" Class, the true source of jobs and prosperity in a trickle-down world.

For the rest of us, the 'deal' will provide short-term benefits; they are supposed to be a second 'Stimulus Package' without being openly labeled as such. But 'stimulus' is just that -- a short pulse, like using a defibrillator to restart the heart of a dying patient. Unlike the continuing fortunes of the First Families, it's disposable; it isn't meant to last.

Representative Schakowsky added that other Rethugs are now appearing in the media, crowing, on the strength of having gotten the Democrats to cave so easily -- and that now, they're announcing next year in Congress, we're going to vote on spending cuts. "They're going to take this momentum and go after programs like school tuition and help for families; programs that benefit the middle class."

This has always been their agenda, she added, and the President has given them every indication he won't stand up to them.

In looking at the New York Times this morning, what caught my eye was not the analysis in their main article about the deal: It was the caption below a photo accompanying the article: ...The unemployment rate, now at 9.8 per cent, is expected to be near 8 per cent by the end of 2012.

Please look at the job seekers in the accompanying photograph -- young and middle-aged black women, and an older white man. In most places in America, this is predominantly the face of unemployment: Young and black, or older and white.

8 per cent unemployment. With televisions blaring advertisements about luxury cars and vacations, sports and images of upward mobility for all; telling us everything is fine; just go back to sleep...

This is the 'new normal we're being asked to swallow. And this is acceptable?

Day In The Life



Still Missed.

Look at me
what am I supposed to be?
what am I supposed to be?
Look at me
what am I supposed to be?
what am I supposed to be?
Look at me
Oh My Love Oh My Love

Here I am
what am I supposed to do?
what am I supposed to do?
Here I am
What can I do for you?
What can I do for you?
Here I am
Oh My Love Oh My Love
Look at me,Oh Please Look at me, My Love
here I am - Oh My Love



Saturday, December 4, 2010

Many Busy Executives Ask: What About The Job Displacement Market In The City Of The Future?


Comparison Of Depth And Duration Of Post-WW2 Recessions
Calculated Risk -- Click For Bigger Chart. It's Easy and Fun!)

Hey; some week, huh? Here's a little rundown, in case you may have missed some of the grosser points:
  • Catfood Commission Chokes On Hairball: President Obama's Debt Commission had already released its final report, which essentially said that the future for ordinary Americans would have to be bleak and constrained, while those with large personal fortunes would hardly be affected at all. Forwarding their recommendations to Congress would have taken a 14 of 18-member majority; they didn't get it. Obama thanked them for their time, and then suggested we all move along; nothing to see here.

    However, fourteen current Democratic Senators sent a letter to the Majority Leader Harry Reid, urging that even though the Commission's ideas for effectively sinking Social Security and Medicare weren't approved by a majority of its members, that the President should still demand Austerity Now!.

    13 of the fourteen Senators signing this thing will still be in the Senate next year, and part of the Democratic majority of 53. Embarrassing for Obama that his own side wants to support Rethug ideals? Of course -- but, the Commission (another attempt to ask politely that the Rethugs be bipartisan) was his idea.

  • Some Swedish-Based Thing Did Some Things; People Unhappy: Wikileaks released over 200,000 pages of U.S. diplomatic cables -- primarily those sent by embassy or consular staff reporting on the Hub Bub in their little part of the world. They showed that (A) Pakistan is an amazingly corrupt little tribal tinderbox with nuclear weapons and people that be hatin' us Freedom; and (B) That all those graduates of Yale and Haavaad in the Foreign Service are trying to use those B.A.'s in English by being witty chroniclers of Life On The Fringes Of Empire. Oh, and Julian Assange, founder of Wikileaks, promises a big dump of data about "An American Bank" next year; it's been known for some time that Wikileaks possesses some 5 Gigs of data from Bank of America corporation. A.P. Gianini is expected to rise from the dead, and throw up.

  • Let North Korea Be North Korea: North Korea, The Funnest Place On Earth outside Robert Mugabe's Zimbawe or various parts of Detroit and Baltimore, fired artillery barrages at South Korean territory, in response to -- well, no one is sure. It may have coincided with a 'Hate Daffy Duck' campaign going on up there this week, or the annual joint NATO / South Korean military exercises being held. Several South Korean soldiers and civilians were killed, and it gave Little Rupert's Funnest Media Company On Earth the opportunity to sound Very Alarmed. Glenn Beck cried again, but really meant it this time.

  • President Obama And His Team Begs Tells Rethugs: Can't We All Just Get Along? After the Catfood Commission issued its report calling for The Little People to Bear More Burdens and Pay More Prices, Obama announced a two-year pay freeze on Federal Worker's salaries. No matter that the salaries of all Federal employees equal less than 3% of the Federal budget); this was an ill-considered publicity stunt. It was meant as an olive branch by Obama to the Rethugs, who will be running the House in Congress next year. His administration held 'closed-door meetings' with the Rethugs, almost begging them to be bipartisan.

    I rarely read the burblings of Frank Rich, columnist at the New York Times, because he's often addled in his little head, but his scribble for the Sunday Times did make a point: After noting the in-your-face antics of New Jersey's new Republican Governor, Chris Christie, Rich said that polls show New Jersians "know what he stands for and sometimes respect him for his forthrightness even when they reject the stands themselves." (Note: Quote below paragraphed for emphasis and clarity.)
    No one expects Obama to imitate Christie’s in-your-face, bull-in-the-china-shop shtick. But they have waited in vain for him to stand firm on what matters to him and to the country rather than forever attempting to turn non-argumentative reasonableness into its own virtuous reward.

    It’s clear now the shellacking
    [i.e., the loss of the House to Republican control in the Midterms last month] was not the hoped-for wake-up call. For starters, Obama might have robustly challenged the election story line pushed by the G.O.P. both before and after Nov. 2 — that deficit eradication and tax cuts for all are voters’ No. 1 priority. Repeating it constantly — as McConnell and John Boehner do, brilliantly — does not make it true. But the myth becomes reality if there’s no leader to trumpet the counternarrative.

    And, it becomes what people accept as true when the media is effectively dominated by the Right, and few mainstream media outlets do more than echo whatever President Boner says.

    What is happening now has happened over, and over, and over again since 2001: Rethugs act like the worst schoolyard bullies you've ever experienced; Democrats cower and hand over whatever the Rethugs want, or compromise on legislation -- expecting, at some point the Rethugs will have to act like moral, conscious, principled adults and work for the general betterment of all Americans.

    But the Rethugs never will. They're arrogant, festering, greed-driven monsters, one step above child molesters -- every single one of them (in case you wondered). They should be stepped on like cockroaches; and for their part, the Democrats are spineless, with the tensile strength of a jelly doughnut when it comes to supporting the Constitution, or the country. As Digby says,
    ... I think they [i.e., the Democrats] simply want to make as few waves as possible while the invisible hand and "savvy businessmen" magically fix everything so they can run on "Morning in America" in 2012. I think that's been the plan from the beginning. I don't think they have a Plan B.

    In fact, the biggest irony of this administration is how much they have depended on the preservation of the status quo to fix the problems. (Ironic considering the "change" message they ran on. Fully expected from neo-liberal lawmakers.) And yeah, it's a problem.

    Our current President, in one Dog's opinion, has irredeemably fucked up and is now in the process of handing the nation back to the creatures which almost destroyed it just a few years ago. We need a leader of the moral authority of a Dr. Martin Luther King, the jocular popularity of a Franklin Roosevelt, and the take-no-prisoners attitude of the Rethugs themselves.

    Instead, we have none of that. Way to go, Barack. Thanks, pal (Full disclosure: I worked quite hard for the man's election; do I feel betrayed? Absolutely).

    The Rethugs listened to the Democrats whine for a while (it's fun, for them), then said Fuck You and took Little Timmeh! Geithner's lunch money. President Boner and President Yertle The Turtle McConnell looked really happy, and said they wouldn't allow anything the Democrats wanted to pass in the few sessions left of the current, 'Lame-Duck' Congress -- such as extensions of unemployment benefits, or tax cuts for Americans making less than $250K per year. They want to destroy the Democratic party. They want to run Obama out of Potomac-Town and put some stupid freak in the White House who will do whatever the Lobbyists and the Serious Wealthy want them to do -- Little Sarah Palin; Emptyhead Mitt, or Mikey I Heart Jesus Huckabee.

    They collectively don't care if a Rethug President makes a mess of America's culture or society (or, even the rest of the world -- like Lil' Boots Bush, no?); they just want to keep the money and exclusive access to Fun and Stuff flowing for them. That's all -- they truly don't give a damn if people are dying, or hungry, or living in cardboard boxes. Truly, they don't.

  • President Palin Says Lots Of Things On Twitter: The American Media Hearts Little Sarah Palin, Straight 'n Tall. They would publish photographs of the marks made on her toilet paper if they could -- and David Broder would praise their shape and tasteful lack of smearing. Someone (Read: Jonah Goldberg) would claim to see the shape of the Virgin Mary in the issue of Little Sarah's tissues.

    So long as the media pays attention to her, Little Sarah will stay popular, classy, and Make Lots Of Money, too -- which is what's she in The Game for. It's all so good, here in the Greatest Country On Earth, and if you don't love her and love Jesus you can go back where you came from -- and if you're really really patient, we may just ship you there.

  • Acknowledged Unemployment Level Reaches 9.8%: In the sixty-two years since the end of World War Two, there have been 11 official Recessions. The current "situation" (again, by official edict) was supposed to have begun in 2008 and ended in 2009. Anyone who has a pulse knows this is crap, and that the crisis which began in the Fall of 2007 is in no way over. This is the longest loss of jobs in America's history since the Great Depression of 1929 - 1940 (But, not the deepest -- that benchmark, 10.8%, belongs to Ronald Reagan).

    The most recent unemployment report showed that 431,000 more people lost their jobs in November [this from the 4-week Moving Average of first-time applications for unemployment relief], while only 39,000 new jobs were created. The official Bureau Of Labor Statistics overall unemployment rate rose from 9.7 to 9.8%.

    Someone should remember to tell those 431,000 new Lucky Duckies applying for unemployment that, once their 26 weeks of "free money" runs out, that's it. If they haven't pulled themselves up by their own bootstraps by then, tough -- no more free lunches for you, Peasants.. Let them cry to President Boner, who doesn't care, or President Barbour, who will interrupt his fine steak dinner to observe that "Them people bettah get busy".

    And, hey! The average wage went up by one cent for the average worker in November, too. Spontaneous demonstrations in praise of Our Elite and our Wise Leaders were held in many cities, where workers demanded that higher salaries and bonuses be given to these far-sighted Ones, our National Treasure and Braintrust, for their selfless work on behalf of the People as they shepherd us through this crisis, which no one could have foreseen, and for which no one can be blamed.

    As a commenter on the site Grasping Reality With Both Hands noted, Thankfully, the average hourly rates for executives and Banksters went up considerably more than that. Soon, they will have even more employment opportunities for more groundskeepers, maids; butlers, wine stewards, valets, silver polishers, table attendants ... and more accountants and lobbyists.

[By the way; the title of this post is a line from an almost forgotten piece of Americana: I Think We're All Bozos On This Bus (1972), by the Firesign Theatre. "Ah, Clem" goes by bus to the Future Fair (A fare to all and no fair to anybody!), where he stands on line to meet an audio-animatronic President. In line ahead of him is 'Jim!', an African-American, who asks, "...Mister President -- Where can I get a job??"

The robotic 'President' replies Many busy executives ask me: What about the job displacement market in the city of the future? Well, count on us -- "Jim!" -- to be there! Because if we're successful tomorrow -- we won't have to answer questions like yours, ever again.)

Friday, December 3, 2010

Where'd Da Money Go, George?

The TARP, or Troubled Asset Relief Program, is also known as the Emergency Economic Stabilization Act of 2008, or Public Law 110-343, signed by George W. Bush on October 3, 2008, less than a month after the implosion of Merrill-Lynch and the resulting Crash of the Market. It allows the government to purchase or insure up to $700 Billion of "troubled assets", defined as
(A) residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before March 14, 2008, the purchase of which the Secretary [of the Treasury] determines promotes financial market stability; and (B) any other financial instrument that the Secretary, after consultation with the Chairman of the Board of Governors of the Federal Reserve System, determines the purchase of which is necessary to promote financial market stability, but only upon transmittal of such determination, in writing, to the appropriate committees of Congress.

The banking sector screamed that this amounted to nationalization of the banking system, but that was never true. The government was supposed to be giving the banks money to purchase the bad loans and take the risk of the bad loans off their books, and on to the backs of the taxpayers.

Gimmie Dat Money!

This was the functional equivalent of FDR's 'Lend-Lease' policy to Britain -- the government gave the financial sector a fire hose. The Banksters would give it back; there was no time limit on returning the money. This assumes, of course, that the Banksters used the money for the reasons it had been given to them in the first place -- to stabilize their operations and allow them to begin lending money again.

You can already see where this is going, can't you?

Wikipedia which tells us that

The effects of the TARP have been widely debated ... For example, a review of investor presentations and conference calls by executives of some two dozen US-based banks by the New York Times found that "few [banks] cited lending as a priority. Further, an overwhelming majority saw the program as a no-strings-attached windfall that could be used to pay down debt, acquire other businesses or invest for the future." [Emphasis added] The article cited several bank chairmen as stating that they viewed the money as available for strategic acquisitions in the future rather than to increase lending to the private sector...

...The Senate Congressional Oversight Panel created to oversee the TARP concluded on January 9, 2009: "In particular, the Panel sees no evidence that the U.S. Treasury has used TARP funds to support the housing market by avoiding preventable foreclosures". The panel also concluded that "Although half the money has not yet been received by the banks, hundreds of billions of dollars have been injected into the marketplace with no demonstrable effects on lending."

... During 2008, companies that received $295 billion in bailout money had spent $114 million on lobbying and campaign contributions. Banks that received bailout money had compensated their top executives nearly $1.6 billion in 2007, including salaries, cash bonuses, stock options, and benefits including personal use of company jets and chauffeurs, home security, country club memberships, and professional money management... Graef Crystal, a former compensation consultant and author of "The Crystal Report on Executive Compensation," claimed that the limits on executive pay were "a joke" and that "they’re just allowing companies to defer compensation."


So Where Da Money?

So, there was a pool of almost $700 Billion dollars available to the financial sector under part (A) -- but part (B) meant the government could purchase "any other financial instrument" to "promote market stability". such as majority ownership in an automobile manufacturing company, say.

Pro Publica, launched as a Progressive, factually-based reporting site, provides a full list of all the recipients of TARP funds; you can see it here (found via Barry Ritzholz' The Big Picture). It will show you both who got what, and how much each recipient still has to return to the Treasury.

So, let's pick up our crayons with our soft mouth parts (Oh; sorry - you humans have hands) and do the math:

$607,822,512,238 was available.

(553,918,968,267) was disbursed to 938 recipients.

220,704,475,564 has been returned to the government;

(333,214,492,703) is still in the hands of recipients.

TARP was ostensibly created to purchase bad securities, stabilize their underlying mortgages, and prop up the housing sector of the economy -- homeowners might not fall into foreclosure in droves, and the investment of the large Real-Estate developers would be preserved. And there wouldn't be huge ripple effects through the rest of the economy. But the Banksters took the money, got fatter, and have Robo-Foreclosed on the homeowners anyway.

And this doesn't even begin to get into the Obama administration's $760-plus Billion-dollar Stability package, handed primarily to the Banksters in 2009; or the additional $1.3 Trillion in loans provided to the Banksters through the U.S. Treasury at practically zero interest.

That puts the amount of the burden we carry -- all to make sure that people like Little Lloyd Blankfein can travel between his five or six homes in safety and comfort -- at $2.4 Trillion Dollars.

That we know about.


Wednesday, December 1, 2010

Желая Каждый Хорошее Ханука

A Note Being Brief By I. Rabschinski

So, it is time for the first night of the Hanukkah, where we are celebrating lights and days of gifts for SmallChild 01 and SmallChild 02 (also being children which are mine), and for Spouse, who plots to kill the Dog who makes this blog -- though we are trying to talk her out of this extreme of position, usually with distractions ("Hey! Spouse -- Be looking up there!"), and chocolate -- but, the Good from the Switzerland, not krumbly Amerikanyets шоколад which tastes like animal has wiped its back part across your shagging carpet, and then you must lick it.

Hey; you notice how Cyrillic for 'chocolate' -- шоколад -- looks little like "Wonka", maybe? Is deep with the irony, yes? No? Oh, Пожалуйста - получите жизни.

We also enjoy to make the celebration with my Great-Uncle Yehudi, who was wounded in the fight in Great Patriotic War, where he had to have his sense of humor amputated.

This is the actual okay, however: We got him another one many years ago (they are like big grafting of the skin), and so he can watch now the reruns of The Mister Ed and make laughing.

Speaking for myself strictly, a television programme with talking horse ("Oh; Vilbur! Do Not Be Touching Me There!") is like something made by demons. Or Polish people. But, as Uncle Yehudi reminds us, he make the fighting at Kursk and Berlin and we did not ("I did not see you there!") -- so that he could watch 'The Mister Ed' and 'Leaving All To The Beaver' and 'My Three Suns', which Yehudi tells me is science-fiction show. Why he like them, I have not a guess. But still we love him.

So, to all the Mankind, we are wishing is Goot season, Nize season for you and your own SmallChilds, and pets, and the home appliances also. Treat them well -- they watch you when you are not looking and really holding the grudge. So says Uncle Yehudi, and as war hero we must listen to him.

This is same reason why John McCain is, I think, occasionally the popular guy.

I, Rabschinski, say this -- to Moldavish Guy; you also.


Saturday, November 27, 2010

The Great Curmudgeon


Eschaton Screenshot; Saturday, November 27th, 2010
(Click On Image To Increase Size. It's Easy And Fun!)

There were a large number of blogs I used to follow when it was a new phenomenon -- Hey, you can hang out there and pretty much say whatever you want!. By now, as with any industry, for those bloggers who have continued providing analysis and entertainment to the Intertubes, they've developed into tribes, circles of mutually-supporting friends, each with their own sites.

Woe betide you if you bore them, piss them off, or are identified as a Troll. Commenting at their sites is a bit like appearing, the stranger, at someone's party and if you just don't quite fit in... Well, ostracization, 'Blackballing', 'freezing out', or simply "being asked to leave" is what it was once called; I believe the blogging term is they don't get to sit at the cool kids' table, and for the most part, that's pretty much the level where it's at.

I don't try to sit at the kid's table; I'm not a concise or especially original blogger when it comes to social commentary or Left politics, and even when I make jokes as a commentor it's as if I'd made a bad smell in the room.

But, if acclaim as a blogger, or 'getting a name' as a commentor on other blogs is the reason why someone posts, they should forget it. That's the functional equivalent of going into acting just to read the reviews.

Since Before Nine was launched in the Fall of 2008, after a hundred-plus posts and perhaps a thousand individual pageviews, I've had... five comments. It's nice for anyone to receive compliments about what they do, but that isn't why I write; I'd hazard a guess it isn't why the Kool Kidz do their blogs, either.

Eschaton, one of the original, Left blogsites (the Right has it's own, but fuck 'em) I still read for the Pithy, and the links to other things I ought to know -- such as The Irish Crisis (about to be played out in Your Town), and the reminder that the Top Two Percent of America's wealthy who we really work for, so they can live wonderful lives are doing all they can to profit from our collective misery solve these troubling 'bumps in the road' we're experiencing.

It may not help in a practical way -- but to know that there are others who recognize The Crazy as well as yourself, and are capable of expressing concisely and (hopefully) with humor that Yes, You Did Not Get This Wrong; We Are Fucked Beyond Measure... well, validation is incredibly important. And, we need voices to be raised when The Crazy comes -- as a testament, as a protest, as an assertion of our basic humanity.

As DailyKos is referred to fondly on Teh Left as The Great Orange Satan, I refer to Eschaton and its creator (who may or may not be named Duncan Black) as "The Great Curmudgeon" (If you read his site, you'll know what I mean; it's both a personal observation and a wry one -- somebody has to be the Blogger equivalent of the old man, shouting at the political Right Get Off My Constitution And Stop Fucking Us Over, Ya Damn Kids).

Anyway, Black doesn't need my poor Doggy seal of approval for his work -- he gets about a bazillion hits per week -- but if you don't at least occasionally follow his work, you should.

IT'S OFFICIAL!! 'CLASS WAR' OVER!!


By The Way, We Lost (Village Voice)

[From Bob Herbert's Op-Ed column, "Winning The Class War", in today's New York Times online:]


Even as millions of out-of-work and otherwise struggling Americans are tightening their belts for the holidays, the nation’s elite are lacing up their dancing shoes and partying like royalty as the millions and billions keep rolling in.

Recessions are for the little people, not for the corporate chiefs and the titans of Wall Street ... They have waged economic warfare against everybody else and are winning big time.


Spring, 2010: The Capo Gives The Soldiers A Taste

The ranks of the poor may be swelling and families forced out of their foreclosed homes may be enduring a nightmarish holiday season, but American companies have just experienced their most profitable quarter ever... the highest total since the government began keeping track more than six decades ago.

...On the same day that The
[New York] Times ran its article about the third-quarter surge in profits, it ran a piece on the front page that carried the headline: “With a Swagger, Wallets Out, Wall Street Dares to Celebrate.”


'Wall Street Warrior' Parties Are Very Popular, These Days

...Families on the wrong side of the divide find themselves under increasing pressure to just hold things together: to find the money to pay rent or the mortgage, to fend off bill collectors, to cope with illness and emergencies, and deal with the daily doses of extreme anxiety...



(Photo: Go Here)

Extreme inequality is already contributing mightily to political and other forms of polarization in the U.S. And it is a major force undermining the idea that as citizens we should try to face the nation’s problems... in a reasonably united fashion. When so many people are tumbling toward the bottom, the tendency is to fight among each other for increasingly scarce resources.

...Aristocrats were supposed to be anathema to Americans. Now, while much of the rest of the nation is suffering, they are the only ones who can afford to smile.


Friday, November 26, 2010

Ashvin Pandurangi: "Plutocracy Now!"

(Ashvin Pandurangi, a third-year law student at George Mason University in Virginia, recently wrote this brief article for 'The Market Oracle' in the U.K., arguing for abolishing the Federal Reserve, which has been posted and reposted many times on the Intertubes.)

(I've broken up some large paragraphs into multiples for clarity or emphasis, but otherwise am passing on the post in full.)



PLUTOCRACY NOW!
By Ashvin Pandurangi
Every so often, Americans should stop everything they're doing for a moment, and reflect upon the nature of their country. Specifically, upon what has traditionally been this country's defining characteristic. Was it our capitalist economy? No, there are many capitalistic countries around the world and capitalism was not first formulated by Americans.

What about our emphasis on personal freedom? Well, once again, many countries preach the virtues of freedom and many groups of people have fought for freedom well before America was formed. Surely it has been our diverse populace and our tolerance of all races, genders, sexual preferences... yeah, right. Personally, I would answer that it was our written Constitution and the democratic values embodied within it.

No other country had ever codified the structures and processes of their governing institutions to such an extent in one single document. Many people focus on the Bill of Rights when speaking about the Constitution, but the first four Articles are just as important.

They synthesized political ideas that were developed over hundreds of years by some of the most insightful thinkers, such as separation of federal powers, checks and balances, vertical division of powers (federalism), an independent judiciary and, of course, representative democracy. The latter emphasizes the notion that any policies enacted by the federal government must be authorized by the people, through their elected representatives who are held accountable to constituents every few years.

So what's the state of our Constitutional democracy today? Simple, it doesn't exist. International corruption surveys typically rank the U.S. higher (less corrupt) than most other countries, but this simply proves how bad these surveys are at capturing the essence of real, hardcore corruption. We could write stacks of books on the prevalence of money in politics and the swarms of lobbyists who descend on Washington every single week, and many people have, but it's simpler to just focus on the most egregious example of corruption.

The most powerful, influential economic policy-making institution in the country, the Federal Reserve ("Fed"), is an unelected body that is completely unaccountable to the people. Well, let's back up and start with the fact that this institution's very existence is most likely unconstitutional. Here's why:

Article I, Section 8 of the Constitution states that Congress has the power to "coin money" and "regulate the value thereof". The Supreme Court has long held that Congress can delegate its legislative powers to Executive agencies as long as it provides an "intelligible principle" to guide the agencies' action. We don't even have to reach the question of whether the Federal Reserve Act sets out an "intelligible principle", however, because existing precedent states that Congress cannot delegate its powers to private institutions. (Schecter Poultry [Note: A case heard before the U.S. Supreme Court] held "a delegation of its legislative authority to trade or industrial associations...would be utterly inconsistent with the constitutional prerogatives and duties of Congress").

In that case, the Supreme Court struck down parts of FDR's National Industrial Recovery Act which authorized these private organizations to draft "codes of fair competition" and submit them to the President for approval.

The Fed, by it's own admission, is an independent entity within the government "having both public purposes, and private aspects". By "private aspects", they mean the entire operation is wholly-owned by private member banks, who are paid dividends of 6% each year on their stock. Furthermore, the Fed's decisions "do not have to be ratified by the President or anyone else in the executive or legislative branch of government" and the Fed "does not receive funding appropriated by Congress".

In 1982, the Ninth Circuit Court of Appeals confirmed this view when it held that "federal reserve banks are not federal instrumentalities... but are independent, privately owned and locally controlled corporations". Yet, the Fed has exclusive control over the government's ability to create money and regulate its value through the targeting of interest rates and open market operations (when the Fed buys an asset, it typically prints the purchase money out of thin air).

How Congress can delegate its Constitutional powers to this independent, privately owned and unaccountable institution is beyond me.

Still, the Constitutional issue is just the tip of the iceberg when it comes to this twisted institution's embodiment of all things undemocratic. When Congress (and the people it represents) makes a valid delegation of its powers to an executive agency, it almost always retains a level of control through its powers of appropriations, impeachment and oversight.

For some not-so-strange reason, the Fed isn't appropriated any funds by Congress, and so it cannot be financially "starved" like any other agency. The members of the Fed's Board of Governors also cannot be impeached by Congress, which is especially twisted, since the President of the United States can be impeached for "high crimes and misdemeanors".

What about oversight? Well, a Congressional committee holds "hearings" every once in awhile to ask the Chairman a few irrelevant questions, but if this process is what passes for "oversight", then we have truly gone off the deep end.

Speaking of committees and oversight, when Fed Chairman Ben Bernanke testified under oath to Congress in July, he said in no uncertain words, "the Federal Reserve will not monetize the [federal] debt". Fast forward to the day after mid-term elections, in which the American people clearly voted for LESS spending/printing, and the Fed announces its plan to monetize $900 billion in treasury bonds.

The Chairman has proven his previous testimony before Congress to be a blatant lie, but instead of condemning the Fed's recent actions, the federal government has welcomed it with open arms. That's quite some oversight we have there. Perhaps the best way to oversee the Fed's actions would be to actually figure out what in Lloyd Blankfein [CEO of Goldman-Sachs]'s name it's been doing.

In this country, that's easier said than done. The Government Accountability Office is not allowed to audit the Fed's transactions for or with foreign governments, central banks, non-private international organizations or those made under the direction of the Federal Open Market Committee ("FOMC"). It just so happens that these are the types of transactions which are most influential on global and domestic financial markets, especially the open market operations.

These operations are conducted by the FOMC, who is comprised of the Board of Governors (7 members appointed by President and confirmed by Senate) and five representatives from the regional Fed[eral Reserve] Banks. Although the President appoints the Board of Governors, he must choose from a list of candidates provided by private institutions, and the other five representatives are also typically nominated by private member banks.

Talk about an organization with conflicts of interest, lack of transparency and lack of accountability all tightly woven into its very fabric!

In the last two years, the almighty Fed has printed trillions of dollars in our name to buy worthless mortgage assets from "too big to fail" banks. It has lent these banks our hard-earned money at about 0% interest, so they could lend our own money back to us at 3%+.

These banks also used our free money to ramp equity and commodity markets, which mostly benefited the top 1% of our population who owns 43% of financial wealth, and conveniently, also owns the Fed. The latter has kept interest rates at next to nothing to punish savers and encourage speculation, making everything less affordable for average Americans who have seen their wages stay the same, decrease or disappear.

What's left standing is the perniciously powerful, highly secretive and entirely unaccountable Fed, who now epitomizes the state of American democracy.

We have all become subject to the misguided and/or malicious whims of a few wealthy individuals operating the levers of economic policy, with no adequate means of challenging their power. Our most treasured contribution to political society has been reduced to a bunch of meaningless articles and amendments, containing equally meaningless words.

We the people, in our pursuit of "a more perfect union", have fallen into an age-old trap. Our economic policies, currency and laws are all manufactured by our very own private dictator, who amasses a fortune from our collective exploitation and destruction.

Then, this despot continues to operate like nothing ever happened. We can scream "ABOLISH THE FED" all day, non-stop to every single politician at the top of our lungs, but it will never happen.

The reality is that there is only one way back to a true democratic system now, and this path will require nothing less of us than the courage of our forefathers.



Thursday, November 25, 2010

Thanksgiving: Immerhin

Immerhin: Adj., [Ger.]; In spite of; even so; despite everything.

I'm trying to be thankful today. It's a day off from work, and time to spend with family or friends, and some are lucky enough that both of those categories are the same.

Here's hoping your day, with whomever you spend it and however you celebrate or feast, is good.


Monday, November 22, 2010

When Trains Collide

You Lose


Collision Of Two Washington, D.C. Red Line Commuter Trains
June 22, 2009 (Photo: Reuters, via Washington Post)

In his New York Times column this morning, Paul Krugman quoted a recent remark by former Wyoming Senator Alan Simpson (who apparently has patterned his mental activity after Abe Simpson's), one of the co-chairmen of President Obama's Catfood Debt Commission.

But a little backstory, first: Every year, the U.S. Congress votes to increase the Statutory Debt Limit of the government -- in other words, how far overdrawn the government can legally be on the national checking account. Without that Congressional approval, U.S. government spending, for anything, technically can't continue. The government wouldn't have to shut down, but a shutdown could be forced -- by the Republicans, say -- as they did in 1995.

The current Debt ceiling, voted into law in February of this year, is $14.3 Trillion dollars. Our current National Debt is $13.8 Trillion dollars, as of today, and it increases each year because of the National Deficit -- the amount the government went overbudget in a single year.

Earlier this year, President Obama issued an Order to create a Debt Reduction Commission of eighteen members (12 current members of Congress, and 6 private citizens) to provide ideas on reducing the National Debt. They were to complete their report and submit it to the President by December 1st. Erskine Bowles (D - Hereditary Wealth) and Alan Simpson (R - Cantankerous) were it's co-chairmen.


Erskine Bowles (Richie Rich) and Alan Simpson (OffLawnDamnKids)
(Photo: Stephen Crowley for the New York Times)

What Obama wanted were ideas to reduce current annual spending in the short term that did not reduce what we collectively consider "The American Dream", and did not manifestly change the policies -- Social Security, and Medicare -- that are the crown jewels of the social contract between America's government and it's citizens. What he got was... something else.


Anti-FDR Cartoon, 1940 (Graphic: Princeton University)

Rumors were that the Commission were discussing ways to destabilize, if not dismantle, Social Security and Medicare. Someone dubbed it the "Catfood Commission", bringing up an image of reductions to the National Debt made by slashing and burning bedrock social programs, which would affect the poor and the income of older, retired Americans, forcing them to live on catfood.

Earlier this month, CNN leaked a copy of the Commission's preliminary report, and suddenly the jokes about catfood weren't so funny. Simpson and Bowles decided to release the preliminary report publicly on November 10th (you can find a .pdf copy here); "It's good it's out there on the table," Alan Simpson said about the preliminary recommendations.

The New York Times reported that the Commission called for
deep cuts in domestic and military spending, a gradual 15-cents-a-gallon increase in the federal gasoline tax, limiting or eliminating popular tax breaks in return for lower rates, and benefit cuts and an increased retirement age for Social Security... It lays out options for overhauling the tax code that include limiting or eliminating the mortgage interest deduction, the child tax credit and the earned income tax credit. It envisions cutting Pentagon weapons programs and paring back almost all domestic programs.

The plan would reduce cost-of-living increases for all federal programs, including Social Security. It would reduce projected Social Security benefits to most retirees in later decades, though low-income people would get higher benefits. The retirement age for full benefits would be slowly raised to 69 from 67 by 2075, with a “hardship exemption” for people who physically cannot work past 62. And higher levels of income would be subject to payroll taxes.

For Congress to debate and act on any recommended legislation the Commission makes in its final report, 14 of the 18 commissioners must have voted in favor of it, and Congress was to move on that debate as quickly as possible.


Anti-Obama Billboard, Colorado, 2010

However, it appears that the preliminary findings are just one more Bellwether of the Rethug's political game plan. As Paul Krugman noted,

There’s a legal limit to federal debt, which must be raised periodically if the government keeps running deficits; the limit will be reached again this spring... But Republicans will probably try to blackmail the president into policy concessions by, in effect, holding the government hostage; they’ve done it before...

The fact is that
[the Republican party has] made it clear that it has no interest in making America governable, unless it’s doing the governing... the G.O.P. isn’t interested in helping the economy as long as a Democrat is in the White House.

...Republicans ... demand that the Bush tax cuts be made permanent while demagoguing efforts to limit the rise in Medicare costs, which are essential to any attempts to get the budget under control. ... Right now, in particular, Republicans are blocking an extension of unemployment benefits — an action that will both cause immense hardship and drain purchasing power from an already sputtering economy. But there’s no point appealing to the better angels of their nature; America just doesn’t work that way anymore.


This April, debate about raising the Statutory Debt limit will begin in a Congress dominated by braying, addled, manifestly stupid idiots. The other day, Simpson -- who has been nothing short of foul-mouthed in response to criticism of the Commission -- said, "I can't wait for the blood bath in April."

It won't matter whether two [Commissioners] have signed this, or 14 or 18. When debt limit time comes, [the Democrats are] going to look around and say, 'What in the hell do we do now? We've got guys [i.e., new Republican members of Congress] who will not approve the debt limit extension unless we give 'em a piece of meat, real meat, [from the Commission's recommendations].' And boy, the bloodbath will be extraordinary.

Simpson has said openly for decades that he supports rolling back all of FDR's New Deal policies -- and to begin doing this, Simpson is saying that the Rethugs and Teabaggers will force Obama and the (essentially) spineless Democrats left in Congress to agree to whatever changes in Social Security, Medicare, and social spending they want, or they'll shut down the government... again.


Chicago-Tribune Anti-FDR Cartoon, April 21, 1934.
(For a Full Description Of The Cartoon, Go Here)

You agree to begin dismantling the entitlements to the goddamn Peasants that cripple Roosevelt forced down our throats, They say, or the trash bins will overflow at the National Parks before you have to shut 'em down, you socialist Kenyan illegitimate leader -- by the way, we'll do everything we can to make you and the rest of you Defeatocrats look bad between now and 2012 so we can win; it don't matter how many Little People get hurt in the process. It's all about winning, so we can get back to doing what we did to the country ten years ago..

And you can expect Little Rupert's right-wing vomitorium will be spewing 'facts', as they always have, in support of the Rethugs, twenty-four hours a day. The same with Glenn Beck, World's smartest Human; Lard Boy; Lil' Mikey Weiner; and of course, Little Sarah, Plain 'n Tall.

This is only going to get worse, you understand. The underlying cancer at the heart of our financial system -- bad mortgage loans, pooled to make Trillions in near-worthless securities our financial institutions still claim are assets -- is the same as it is in Ireland, or Greece, or Spain, but (as befits the world's largest economy) on a gigantic scale.

The same reductions in standards of living which the Irish and the Greeks now face are about to begin happening here. Have you wondered why the wealthy seem to be retrenching, why paintings at Sotheby's and Christie's auctions have brought record sales levels; or why they fight so hard to keep their Lil' Boots-era entitlements in tax rates? Because they know what's coming; and you can never be too rich.


German-American Bund Rally, Madison Square Garden, 1939

And as things slowly get worse, the political instability of the United States will increase; the siren's call of power, of our own version of Volk und Reich (more likely for us, Volk und Gott) will begin taking shape, and many people will passively allow it to metastasize because they will just want the confusion and anxiety to stop. Crowds respond to ideas that are presented in the guise of national myths and symbols they already accept, ideas which promise safety and purpose -- even if, later, what resulted from accepting those ideas become exhibits in court trials for corruption, aggression, and massacre.

There are people, like Krugman, who see this crisis as a defining moment in the future of America. In 1933, in the middle of an economic crisis as serious as the one we face now (only, we haven't hit bottom yet), FDR took the country in a direction that created a compact between government and its citizens -- one that (nominally, at least) said "You, The People, matter -- You, The People, come first", and programs like Social Security were the result.

The Rethugs and Teabaggers don't believe in a social contract based on the rule of law, social justice, or equality. They believe in the power and dominance of wealth. They intend to continue pressing America backwards, into the Gilded Age, when America's version of Oligarchs ran much of the country; and in politics, graft was a way of life.

The Little People lived and died anonymously, knew their places and respected their Betters, or else. Those who rocked the boat -- labor organizers; 'agitators' for workplace safety, better quality in medical care, safer food and water, racial and sexual equality -- were arrested, ridiculed, ignored.

Of course, the inequities of such a world contributed to the rise of Communism, Fascism, and were triggers behind two horrific world wars, and a long battle for equality on almost every level that isn't over. But change doesn't even have to be that large to have an impact.

This coming spring, the showdown Krugman mentions to force America backwards will be a train wreck. We can already see it coming -- but I'm only a Dog, and no one listens to me.

Krugman closed his column by saying,

My sense is that most Americans still don’t understand ... They still imagine that ... our politicians will come together to do what’s necessary. But that was another country.

It’s hard to see how this situation is resolved without a major crisis of some kind. Mr. Simpson may or may not get the blood bath he craves this April, but there will be blood sooner or later. And we can only hope that the nation that emerges from that blood bath is still one we recognize.