The NYE Fiscal Cliff is a Buffalo Jump. Is your herd going to fall for it?

Fiscal Cliff is a Buffalo Jump
DENVER, COLORADO- The DC Kabuki Divas are amping up their New Years cliffhanger, the so-called Fiscal Cliff, to inaugurate domestic austerity measures meant to cement the widening income gap between the rich and everybody else. If it’s a cliff, it’s a buffalo jump off which the easily panicked are stampeded to their death. Fiscal Cliff even shares the same initials with the last economic extortion ploy, the Financial Crisis which intro’d President Obama’s preceding term.

So-called Fiscal Cliff is a Buffalo Jump

Remember the “Financial Crisis” from out of nowhere when Obama first came to office? Now it’s Bank Heist, the Sequel, branded most assuredly with the assistance of Madison Avenue as a “Fiscal Cliff”, shall we call it FC2? This time instead of extorting a so-called “bank bailout”, the oligarchs want austerity concessions. Having looted the public treasury, they’re after the public wealth we call government’s primary social benefit to which the public thought it was “entitled”. So our herders are crying FISCAL CLIFF hoping to divert the public beast to a real cliff, another Buffalo Jump, in urban terms, a shakedown.

The Caracas Commitment Si Se Puede

You might imagine the multinational corporate media would blackout the talk of a 5th Socialist International. They are most determined to censor the issues which the world’s leftist parties are resolved to address. Where Obama 2008 and Copenhagen 2009 project a vacuum of ideological momentum, check out the Caracas Commitment.

The Caracas Commitment
November 25, 2009?
By Declaration from World Meeting of Left Parties?
November 19-21 Caracas, Venezuela

Political parties and organizations from Latin America, the Caribbean, Europe, Africa, Asia, and Oceania commemorate and celebrate the unity and solidarity that brought us together in Caracas, Bolivarian Republic of Venezuela, and from this libertarian city we would like to express our revolutionary rebelliousness. We are glad of and committed to the proud presence of the forces of change in a special moment of history. Likewise, we are proud to reaffirm our conviction to definitively sow, grow and win Socialism of the 21st century.

In this regard, we want to sign the Commitment of Caracas as a revolutionary guide for the challenges ahead of us. We have gathered with the aim of unifying criteria and giving concrete answers that allow us to defend our sovereignty, our social victories, and the freedom of our peoples in the face of the generalized crisis of the world capitalist system and the new threats spreading over our region and the whole world with the establishment and strengthening of military bases in the sister republics of Colombia, Panama, Aruba, Curacao, the Dutch Antilles, as well as the aggression against Ecuadorian territory, and the invasions of Iraq and Afghanistan.

We consider that the world capitalist system is going through one of its most severe crises, which has shaken its very foundations and brought with it consequences that jeopardize the survival of humanity. Likewise, capitalism and the logic of capital, destroys the environment and biodiversity, bringing with it consequences of climate change, global warming and the destruction of life.

One of the epicentres of the capitalist crisis is in the economic domain; this highlights the limitations of unbridled free markets ruled by private monopolies. In this situation, some governments have been asked to intervene to prevent the collapse of vital economic sectors, for instance, through the implementation of bailouts to bank institutions that amount to hundreds of billions of dollars. Said governments have been asked to stimulate their economies by increasing public expenditure in order to mitigate the recession and the private sector decline, which evidences the end of the supposedly irrefutable “truth” of neo-liberalism that of non-intervention of the State in economic affairs.

In this regard, it is very timely to promote an in-depth discussion on the economic crisis, the role of the State and the construction of a new financial architecture.

In summary, the capitalist crisis cannot be reduced simply to a financial crisis; it is a structural crisis of capital which combines the economic crisis, with an ecological crisis, a food crisis, and an energy crisis, which together represents a mortal threat to humanity and mother earth. Faced with this crisis, left-wing movements and parties see the defence of nature and the construction of an ecologically sustainable society as a fundamental axis of our struggle for a better world.

In recent years, progressive and left-wing movements of the Latin American region have accumulated forces, and stimulated transformations, throwing up leaders that today hold important government spaces. This has represented an important blow to the empire because the peoples have rebelled against the domination that has been imposed on them, and have left behind their fear to express their values and principles, showing the empire that we will not allow any more interference in our internal affairs, and that we are willing to defend our sovereignty.

This meeting is held at a historic time, characterized by a new imperialistic offensive against the peoples and governments of the region and of the world, a pretension supported by the oligarchies and ultraconservative right-wing, with the objective of recovering spaces lost as a consequence of the advancement of revolutionary process of liberation developing in Latin America. These are expressed through the creation of regional organizations such as ALBA, UNASUR, PETROCARIBE, Banco del Sur, the Sao Paulo Forum, COPPPAL, among others; where the main principles inspiring these processes are those of solidarity, complementarity, social priority over economic advantage, respect for self-determination of the peoples in open opposition to the policies of imperial domination. For these reasons, the right-wing forces in partnership with the empire have launched an offensive to combat the advance and development of the peoples’ struggles, especially those against the overexploitation of human beings, racist discrimination, cultural oppression, in defence of natural resources, of the land and territory from the perspective of the left and progressive movements and of world transformation.

We reflect on the fact that these events have led the U.S administration to set strategies to undermine, torpedo and destabilize the advancement of these processes of change and recuperation of sovereignty. To this end, the US has implemented policies expressed through an ideological and media offensive that aim to discredit the revolutionary and progressive governments of the region, labelling them as totalitarian governments, violators of human rights, with links to drug-trafficking operations, and terrorism; and also questioning the legitimacy of their origin. This is the reason for the relentless fury with which all the empire’s means of propaganda and its agents inside our own countries continuously attack the experiences in Venezuela, Ecuador, Nicaragua, Bolivia, and Paraguay, as with its maintenance of the blockade against revolutionary and independent Cuba.

Part of the strategy activated by the U.S. Empire is evidenced by the coup in Honduras, as well as in other destabilizing initiatives in Central America, attempting to impose the oligarchic interests that have already left hundreds of victims, while a disgusting wave of cynicism tries to cover up the dictatorship imposed by the U.S. administration with a false veil of democracy. Along with this, it is developing a military offensive with the idea of maintaining political and military hegemony in the region, for which it is promoting new geopolitical allies, generating destabilization and disturbing peace in the region and globally through military intimidation, with the help of its allies in the internal oligarchies, who are shown to be complicit in the actions taken by the empire, giving away their sovereignty, and opening spaces for the empire’s actions.

We consider that this new offensive is specifically expressed through two important events that took place this year in the continent: The coup in Honduras, and the installation of military bases in Colombia and Panama, as well as the strengthening of the already existing ones in our region. The coup in Honduras is nothing but a display of hypocrisy by the empire, a way to intimidate the rest of the governments in the region. It is a test-laboratory that aims to set a precedent that can be applied as a new coup model and a way to encourage the right to plot against the transformational and independent processes.

We denounce the military agreement between the Colombian government and the United States administration strengthens the U.S.’s military strategy, whose contents are expressed in the so-called “White Book.” This confirms that the development of the agreement will guarantee a projection of continental and intercontinental military power, the strengthening of transportation capability and air mobility to guarantee the improvement of its action capability, in order to provide the right conditions to have access to energy sources. It also consolidates its political partnership with the regional oligarchy for the control of Colombian territory and its projection in the Andes and in the rest of South America. All this scaffolding and consolidation of military architecture entails a serious threat for peace in the region and the world.

The installation of military bases in the region and their interrelation with the different bases spread throughout the world is not only confined to the military sphere, but rather forms part of the establishment of a general policy of domination and expansion directed by the U.S. These bases constitute strategic points to dominate all the countries in Central and Latin America and the rest of the world.

The treaty for the installation of military bases in Colombia is preceded by Plan Colombia, which was already an example of U.S. interference in the affairs of Colombia and the region using the fight against drug trafficking and terrorism as an excuse. However, it has been shown that drug trafficking levels have increased in Colombia; therefore, the plan is no longer justified given that no favourable results have been obtained since its implementation, that would justify a new treaty with the U.S.

Today, the global strategy headed by the U.S. concerning drug trafficking is a complete failure. Its results are summarised by a rapid processes of accumulation of illegal capital, increased consumption of drugs and exacerbation of criminality, whose victims are the peoples of Latin America, especially the Colombian people. This strategy should be revisited and modified, and should be oriented towards a different logic that focuses on drug consumption as a public health issue. In Colombia, drug trafficking has assumed the form of paramilitarism, and turned into a political project the scope of which and persons responsible should be investigated so that the truth is known, so that justice prevails and the terror of the civilian population ceases.

We, the peoples of the world, declare that we will not give up the spaces we have managed to conquer after years of struggle and resistance; and we commit ourselves to regain those which have been taken from us. Therefore, we need to defend the processes of change and the unfolding revolutions since they are based on sovereign decisions made by the peoples.

Agreements

1. Mobilization and Condemnation of U.S. Military Bases

1.1.
To organize global protests against the U.S. military bases from December 12th to 17th, 2009. Various leftwing parties and social movements will promote forums, concerts, protest marches and any other creative activity within the context of this event.

1.2.
To establish a global mobilization front for the political denouncement of the U.S. military bases. This group will be made up by social leaders, left-wing parties, lawmakers, artists, among others, who will visit different countries with the aim of raising awareness in forums, press conferences and news and above all in gatherings with each country’s peoples.

1.3.
To organize students, young people, workers and women in order to establish a common agenda of vigilance and to denounce against the military bases throughout the world.

1.4.
To organize a global legal forum to challenge the installation of the U.S. military bases. This forum is conceived as a space for the condemnation of illegalities committed against the sovereignty and self-determination of the peoples and the imposition of a hegemonic imperialist model.

1.5.
To organise a global trial against paramilitarism in Colombia bringing testimonies and evidence to international bodies of justice.

1.6.
To promote a global trial against George Bush for crimes against humanity, as the person principally responsible for the genocide against the peoples of Iraq and Afghanistan.

1.7.
To promote a campaign for the creation of constitutional and legal provisions in all of our countries against the installation of military bases and deployment of nuclear weapons of mass destruction.

1.8.
To promote, from the different social organizations and movements of the countries present in this meeting, a political solution for the Colombian conflict.

1.9.
To organise solidarity with the Colombian people against the imperial aggression that the military bases entail in Colombian territory.

2. Installation and Development of a Platform of Joint Action by Left-Wing Parties of the World

2.1.
To establish a space of articulation of progressive and left-wing organizations and parties that allows for coordinating policies against the aggression towards the peoples, the condemnation of the aggressions against governments elected democratically, the installation of military bases, the violation of sovereignty and against xenophobia, the defence of immigrants’ rights, peace, and the environment, and peasant, labour, indigenous and afro-descendent movements.

2.2.
To set up a Temporary Executive Secretariat (TES) that allows for the coordination of a common working agenda, policy making, and follow-up on the agreements reached within the framework of this international encounter. Said Secretariat undertakes to inform about relevant events in the world, and to define specific action plans: statements, declarations, condemnations, mobilizations, observations and other issues that may be decided.

2.3.
To set up an agenda of permanent ideological debate on the fundamental aspects of the process of construction of socialism.

2.4.
To prepare common working agendas with participation from Latin America, Europe, Africa, Asia and Oceania.

2.5.
To organize solidarity of the people’s of the world with the Bolivarian revolution and President Hugo Chávez, in response to the constant imperial attacks.

2.6.
To commemorate the centenary of Clara Zetkin’s proposal to celebrate March 8th as the International Day of Women. The parties undertake to celebrate this day insofar as possible.

2.7.
To summon a meeting to be held in Caracas in April 2010 in commemoration of the bicentenary of our Latin American and Caribbean independences.

3. Organization of a World Movement of Militants for a Culture of Peace

3.1.
To promote the establishment of peace bases, by peace supporters, who will coordinate actions and denouncements against interventionism and war sponsored by imperialism through activities such as: forums, cultural events, and debates to promote the ethical behaviour of anti-violence, full participation in social life, respect for human rights and fundamental freedoms, acknowledgement of the cultural identities of our peoples and strengthening the framework of integration. This space seeks to raise awareness among all citizens in rejection of all forms of domination, internal or external intervention, and to reinforce the culture of peace. To struggle relentlessly for a world with no nuclear weapons, no weapons of mass destruction, no military bases, no foreign interference, and no economic blockades, as our peoples need peace and are absolutely entitled to attain development. Promote the American continent as a territory of peace, home to the construction of a free and sovereign world.

3.2.
To organize a Peace Parliament as a political space to exchange common endeavours among the world’s progressive and left-wing parliamentarians, and to know the historical, economic, legal, political and environmental aspects key for the defence of peace. Hereby we recommend holding the first meeting in February 2010.

4. Artillery Of International Communication to Emancipate Revolutionary Consciousness

4.1.
To discuss a public communication policy at an inter-regional level that aims to improve the media battle, and to convey the values of socialism among the peoples.

4.2.
To promote the creation and consolidation of alternative and community communication media to break the media siege, promote an International Alternative Left-wing Media Coordination Office that creates links to provide for improved information exchange among our countries, in which Telesur and Radiosur can be spearheads for this action.

4.3.
To create a website of all of the progressive and left-wing parties and movements in the world as a means to ensure permanent exchange and the development of an emancipating and alternative communication.

4.4.
To promote a movement of artists, writers and filmmakers to promote and develop festivals of small, short and full-length films that reflects the advancement and the struggle of peoples in revolution.

4.5.
To hold a meeting or international forum of alternative left-wing media.

5. Mobilize All Popular Organizations in Unrestricted Support for the People of Honduras

5.1.
To promote an international trial against the coup plotters in Honduras before the International Criminal Court for the abuses and crimes committed.

5.2.
Refuse to recognize the illegal electoral process they aim to carry out in Honduras.

5.3.
To carry out a world vigil on Election Day in Honduras in order to protest against the intention to legitimize the coup, coordinated by the permanent committee that emerges from this encounter.

5.4.
To coordinate the actions of left-wing parties worldwide to curb the imperialist pretensions of using the coup in Honduras as a strategy against the Latin American and Caribbean progressive processes and governments.

5.5.
To unite with the people of Honduras through a global solidarity movement for people’s resistance and for the pursuit of democratic and participatory paths that allow for the establishment of progressive governments committed to common welfare and social justice.

5.6.
To undertake actions geared towards denouncing before multilateral bodies, and within the framework of international law, the abduction of José Manuel Zelaya, legitimate President of Honduras, that facilitated the rupture of constitutional order in Honduras. It is necessary to determine responsibility among those who participated directly in this crime, and even among those who allowed his aircraft to go in and out Costa Rica without trying to detain the kidnappers of the Honduran president.

6. Solidarity with the Peoples of the World

6.1.
The Left-wing Parties of the International Meeting of Caracas agree to demand the immediate liberation of the five Cuban heroes unfairly imprisoned in American jails. They are authentic anti-terrorist fighters that caused no harm to U.S. national security, whose work was oriented towards preventing the terrorist attacks prepared by the terrorist counterrevolution against Cuba. The Five Heroes were subject to a biased judicial process, condemned by broad sectors of humanity, and stigmatized by a conspiracy of silence by the mainstream media. Given the impossibility of winning justice via judicial means, we call upon all political left-wing parties of the world to increase actions for their immediate liberation. We call on President Obama to utilize his executive power and set these Five Heroes of Humanity free.

6.2.
The International Meeting of Left-wing Parties resolutely demands the immediate and unconditional cessation of the criminal U.S. blockade that harmed the Cuban people so badly over the last fifty years. The blockade should come to an end right now in order to fulfil the will of the 187 countries that recently declared themselves against this act of genocide during the UN General Assembly.

6.3.
To unite with the people of Haiti in the struggle for the return of President Jean Bertrand Aristide to his country.

6.4.
We propose to study the possibility to grant a residence in Venezuela to Jean Bertrand Aristide, who was kidnapped and overthrown as Haiti’s president by U.S. imperialism.

6.5.
We express the need to declare a permanent alert aimed at preventing any type of breach of the constitutional order that may hinder the process of democratic change underway in Paraguay.

6.6.
We denounce the neoliberal privatizing advance in Mexico expressly in the case of the Electric Energy state-owned company, a heritage of the people, which aims through the massive firing of 45,000 workers to intimidate the union force, “Luz y Fuerza”, which constitutes another offensive of the Empire in Central and North America.

6.7.
To declare our solidarity with the peoples of the world that have suffered and are still suffering imperial aggressions, especially, the 50 year-long genocidal blockade against Cuba; the threat against the people of Paraguay; the slaughter of the Palestinian people; the illegal occupation of part of the territory of the Republic of Western Sahara and the invasion of Iraq and Afghanistan which today is expanding into Pakistan; the illegal sanctions imposed against Zimbabwe and the constant threat against Iran, among others.

Caracas, November 21st, 2009

Declaration of Solidarity with the People of Cuba

The Left-wing Parties of the International Meeting of Caracas agree to demand the immediate liberation of the five Cuban heroes unfairly imprisoned in U.S. prisons. They are authentic anti-terrorist fighters that caused no harm to US national security, whose work was oriented towards preventing the terrorist attacks prepared by the terrorist counterrevolution against Cuba. The Five Heroes were subject to a biased judicial process, condemned by broad sectors of humanity, and stigmatized by a conspiracy of silence by the mainstream media.

Given the impossibility of winning justice via judicial means, we call upon all political left-wing parties of the world to increase actions for their immediate liberation. We call on President Obama to utilize his executive power and set these Five Heroes of Humanity free.

The International Meeting of Left-wing Parties resolutely demands the immediate and unconditional cessation of the criminal U.S. blockade that harmed the Cuban people so badly over the last fifty years. The blockade should come to an end right now in order to fulfill the will of the 187 countries that recently declared themselves against this act of genocide during the UN General Assembly.

Caracas, November 21, 2009

Special Declaration on the Coup D’état in Honduras

We, left-wing parties of Latin America, Africa, Europe, Asia and Oceania, present in the international encounter of left-wing parties, reject the coup d’état against the constitutional government of citizen’s power of the President of Honduras Manuel Zelaya Rosales.

Cognizant of the situation of repression, persecution and murder against the Honduran people and the permanent military harassment against president Manuel Zelaya Rosales, which represents a breach of the rule of law in the sister nation of Honduras:

We support the actions of the national resistance front in its struggle to restore democracy.

We demand and support the sovereign right of the Honduran people to call for a national constituent assembly to establish direct democracy and to ensure the broadest political participation of the people in public affairs.

We denounce the United States intervention and its national and international reactionary right-wing allies and their connection with the coup, which hinders the construction of democracy in Honduras and in the world.

We condemn and repudiate the permanent violation of political and social human rights as well as the violation freedom of speech, promoted and perpetrated by the de facto powers, the Supreme Court of Justice, the National Congress of the Republic, the Ministry of Defence and Security since June 28, 2009.

We reiterate our demand to international governments and bodies, not to recognize the results of the general elections to be held on November 29, 2009 in Honduras, due to the lack of constitutional guarantees and the legal conditions necessary for a fair, transparent and reliable electoral process, the lack of reliable observers that can vouch for the results of this electoral process, which has already been rejected by most international governments, bodies and international public opinion.

To propose and promote an international trial against coup plotters and their accomplices in Honduras before the International Criminal Court, for the illegal actions, abuses and crimes they committed, while developing actions aimed at denouncing to the relevant bodies and in the framework of the international law, the violation of the rights and the kidnapping of the legitimate president of Honduras Manuel Zelaya Rosales, because it is necessary to establish the responsibility of those who participated directly and internally in the perpetration of this crime.

We urge national and international human rights organizations to support these measures, to carry on the campaign of denunciation and vigilance with permanent observers in face of the renewed human rights violations, particularly the persecution and sanction through the loss of jobs for political reasons against the members and supporters of the resistance and president Manuel Zelaya.

We repudiate and condemn the attacks against the diplomatic corps of the embassies of the Federative Republic of Brazil and the Republic of Argentina, and the embassies of the member countries of the Bolivarian Alliance for the Peoples of our America (ALBA); and express our solidarity with the heroic work of the staff of these diplomatic missions, who have been victims of harassment and hostility by the coup plotters.

We agree to establish coordination among left-wing parties of the world to exert pressure to oust the de facto government and for the restoration of the constitutional president and the right of the Honduran people to install a national constituent assembly that allows for deepening direct democracy.

We urge governments, international bodies and companies to maintain and intensify economic and commercial sanctions to business accomplices and supporters of the coup in Honduras, and to maintain an attitude of vigilance, to break all relations that recognize the coup plotters and the de facto government officers, as well as to take migration control measures that hinder the movement of people who have the purpose of voting in another country where elections are held with the aim of changing the results through the transfer of votes from one country to the other.

We agree not to recognize the international and national observers of the electoral process who are aligned and conspire to attempt to give legitimacy to an electoral process devoid of legality and legitimacy. We demand that rather than observing an illegal and illegitimate process, the return of the state of democratic law and the constitutional government of citizen power Honduras President Manuel Zelaya Rosales is guaranteed.

Caracas, November 21, 2009

Special Decision

The international encounter of Left-wing Political parties held in Caracas on November 19, 20 and 21, 2009, received the proposal made by Commander Hugo Chavez Frias to convoke the V Socialist International as a space for socialist-oriented parties, movements and currents in which we can harmonize a common strategy for the struggle against imperialism, the overthrow of capitalism by socialism and solidarity based economic integration of a new type. We assessed that proposition in terms of its historical dimension which calls for a new spirit of internationalism and agreed, for the purpose of achieving it in the short term, to create a WORKING GROUP comprised of those socialist parties, currents and social movements who endorse the initiative, to prepare an agenda which defines the objectives, contents and mechanisms of this global revolutionary body. We call for an initial constitutive event for April 2010 in the City of Caracas. Furthermore, those parties, socialist currents and social movements who have not expressed themselves on this matter can subject this proposal to the examination of their legitimate directive bodies.

Caracas, November 21, 2009

Did you elect Obama to finish the job?

obama cabbage patch doll

President Obama wants to “finish the job?” What job would that be? Are we talking about a job which Bush started? Because I am pretty sure Mr. Obama was elected NOT to do that. “Finish” Afghanistan? Where was Obama when the rest of us were learning what it meant to try to finish off Vietnam?

We don’t have to look further than Afghanistan to wonder what other jobs Barack Obama is already carrying water for. America is in some trouble if Obama is bent on finishing the job on our civil liberties. Guantanamo is still open isn’t it? Justice is still being obstructed, the Patriot Act still holds, the economy still crumbles; President Obama is doing George Bush’s job just fine.

Whether Afghanistan was about an oil pipeline, striking at Islam, or containing America’s rivals to superpower, it’s also the venture to break the back of the US middle class, and break all pretense of Democracy in America. We’ve gone from republic to empire, with citizens having no say in the matter. That job is done. What is the job Obama intends to finish when he promises to “finish the job?”

Supposedly it took Obama and Co all this decision-making time to come up with “Finish the Job TM.” It’s a branded meme, isn’t it? Like The Surge TM, the Financial Crisis TM and Nine Eleven TM. But like its forerunners, it’s probably no last minute inspiration, but a focus-group tested theme. Damn, who knew the American people wanted Obama to finish what they expended so much energy to have George Bush stop?

USS NY apt reincarnation of WTC steel

USS New York of World Trade Center steelFinally the USS New York, famously built from the steel of the fallen twin towers, sails into NY for a photo-op near the site of the WTC, looking every bit to me like a fortified extension of the official 9/11 cover up.

The wreckage of Ground Zero was carted off before forensic engineers could test the material and explain the mysterious collapse. Now the steel is back, albeit just two army trucks’ weight worth, in the bow of a floating fortress whose foreboding facade informs us, with a wicked armored smirk, that its secret will be remain off-limits to civilians forever. New Yorkers have to look across the water and be reminded the military laughs at the police and firemen, who bravely ascended buildings which should never have vaporized, who died on September 11, 2001 for reasons forever to remain unexplained.

The USS NY sailing up to NYC is gunboat diplomacy against America’s own people.

I’m no naval engineer, but the USS NY’s twin funnels are the most grotesque mimicry of the now iconic towers.

But how fitting a tribute, that the WTC remains –we might pretend even the dust of its victims, if military contractor shoddy standards follow precedent, are concealed in the steel– were used to build an amphibious transport ship, whose only military purpose is offensive. Unless you count America’s questionable dominion in the Pacific and Caribbean, to where would we need to ship troops in defense of our homeland. Lamentably, the USS New York is the perfect reincarnation of the World Trade Center, which engaged in relentless attacks on economies overseas, until cut brutally short by boxcutters and Third World anger. Of late, Americans may have glimpsed from the financial crisis that the WTC was also waging war on our own domestic economy. As these revelations dawn, so too will the USS N.Y. turn its guns against us.

The economic quicksand that sinks us

quicksandFunny how it is that when both the Republican Party and the Democratic Party both have the same economic program, that so many of the same actors are pointing fingers at each other? But then again what could we really expect from these two partisan camps run by the same economic interests?

What we have now is a situation where More of the Same means CHANGE, and those that push CHANGE actually push More of the Same! Most of us just kind of watch from our points stuck in the economic quicksand and hope that somehow, somebody manages to throw us all a rope to help pull us out with. Good luck…

Salon has an article where it mentions some of the critics of the Obama Presidency’s economic policies. None of the summaries mentions anything about the War Budget’s effects on the greater economic quicksand we currently reside in! That’s kind of amazing, really it is. Still, check Salon out and see who are the people the article highlights… The Prophets of Doom– Meet the Cassandras, 14 economists, bloggers, politicians and businesspeople of all political stripes who have become the most strident critics of President Obama’s stewardship of the economy.

Amazingly, the author at Salon who selected these 14 people missed including Joseph Stiglitz! Well here he is then with his latest commentary, Obama’s Ersatz Capitalism

And what about James Galbraith? Here below is what he says on Democracy Now back in February.

Economist James Galbraith: Bailed-Out Banks Should Be Declared Insolvent

With estimates of the cost of addressing the financial crisis exceeding $9.7 trillion, we speak with economist and University of Texas professor James Galbraith, author of The Predator State: How Conservatives Abandoned the Free Market and Why Liberals Should Too. Galbraith says rather than pouring billions into propping up troubled giant banks, the government should declare them insolvent.’

There are so many notable people who don’t like Obama’s economic policy that trying to include only 14 people in the list by Salon was a little bit unwise on their part. It is simple reality that Obama and his recycled Clintonistas are in quick danger of becoming sunk in this economic quicksand, too, since they seem to only know how to pour gasoline on the fire…. uh… I meant pour water into the quicksand…. or is it to throw tax monies into the economic quicksand?

Oh well, the idea is the same. Obama only knows how to sink us all yet further into the economic quicksand not get us out of it like some sort of fantasy Super Hero Economist could. HOPE for CHANGE is now underneath the muck.

Gandhi possessions safe from defilement

gandhi possessionsThe iconic personal possessions of Mahatma Gandhi were auctioned this week, and will remain in India. Gandhi’s poverty may have been largely symbolic, but his bowl and sandals remain unimpeachable representations of his ideals.
If there’s an upside to the banking collapse, it’s that some Wall Street or London financier was not able to purchase Mohandas’ bowl for the sole purpose of taking a shit in it.

Economic pie in the sky

Costa Rican rainbow Central HighlandsEric and I had fun in Costa Rica playing with a rainbow in the hills outside Santa Elena. We traveled down a narrow bumpy road until the bright double rainbow appeared to end in the backyard of the only house in sight. An inspiring illusion to be sure, but still only an illusion. Rainbows are like that, aren’t they? Manipulable to a point; there, but not, depending on your vantage point; seen by all, fully comprehended by few. As kids we dreamed of finding the promised pot of leprechaun gold, but we never could quite get there. The promise forever remained only a promise.

Chasing rainbows has become our financial pastime of late. Golden parachutes, speculation, valuation, debt forgiveness, creative accounting, off-book transactions, suspense accounts, slush funds, contra accounts, accruals, clean opinions, full disclosure, extraordinary items, going concerns, immateriality — I could go on for hours. We have a financial system that’s impossible to discern, is largely illusory and widely un-understood. Even by its makers.

The fractional reserve system, patently illegal not so long ago, means that our money isn’t a paper representation of what actually is, it is only what they say it is, which is whatever it is, I suppose. I’m told it’s lost 50% of its value in the past decade which means, I guess, that it’s now something other than what it was. And who knows what it will be tomorrow?

It would seem that printing off billions more crisp banknotes to give to soulless corporate people, whose paper assets and liabilities can be altered with the stroke of a pen, means little to anyone except the publicly-traded rich.

Is it any wonder that no one – which includes everyone – can get their arms around this mess? We don’t understand what’s really going on so we keep doing what we do, which is whatever that is, on any given day. Today Obama is coming to Denver to sign his economic stimulus plan into law — 1588 pages of freshly-printed unread paper that will solve our economic crisis and put us back on the road to financial prosperity.

I can’t recall where the momentous event is to take place, but I imagine it’s somewhere over the rainbow.

Apres nous, le Depression

If it matters what to call this financial crisis, what is it? Is America in a recession? When does a deep recession approach a depression? When is an economic crash revealed to be a collapse? Before we can rename the Great Depression, as we did the Great War (WWI), in deference to this latest, we would do better to address the cataclysm which left this depression.

It was not a meteor, not the foot of Godzilla, nor a collapsed salt mine. The scorched earth we see about us, this rapidly degrading economy, is the destruction wrought by a Norman raid; a blitz of rape and pillage with brutal indifference.

It wouldn’t matter what you call it except that the raiders are still among us. If your valuables are still intact, it’s because they haven’t yet been sacked. If you still have your house, it’s not because the tethers aren’t attached, it’s that they haven’t started towing it off.

When you can see this robbery for what it is, you’ll know that history can tell us that the barbarians do not leave even gold fillings unmolested.

Do you doubt a viking analogy? Look at the economic news today. Over half a million jobs lost in January, over three million jobs lost already. On the same day, the stock market rallies upward.

While you are losing your livelihood, those who invested in the long ships are heartened by the projected success of this raid.

Barack’s 1/2 measures, 1/4 measures, 1/8 measures and… his new health care ‘reform’

cancer childObama signs bill for kids health care program. But look again! Like Obama’s ‘withdrawal’ from Iraq, his ‘renouncement of torture,’ now his new health care measure is a fraud too! Everything about Barack Obama is a fraud! Here is the gist of his public pretense regarding giving kids health coverage. Obama is going to leave 4,000,000 children uncovered, even 5 years down the road!

Sure, this is better than worsening the situation as the Bush murderers did, but why such a 1/2 measure. Wait! It’s not even that, is it? These parents need coverage, too. What happened? This is not even a 1/4 measure! Might we have a 1/8 measure being announced by Obama then?

When it came to bailing out the gigantic fraudulently operating Bug Guys out, Barack Obama is not for any 1/2 measures, 1/4 measures, nor 1/8 measures or less. He goes all out at throwing public tax monies their ways. Can’t let the Big Guys suffer, he says. But he feels a little different about the poor kids, does he not? They can wait! That’s the Barack Obama con game in full measure.

Shame on you, Democrats!

The shipping news

container shipThe whining and hang-wringing about the “credit crunch” is getting on my nerves. It was this supposed crisis that led to the $700 billion bailout and we’re told every day that it must be solved quickly, no matter the cost, or we’re toast. But why? How many of us are actively seeking credit right now? Surely the developers and retailers want us to have lots and lots of it so we can keep hyper-consuming their goods; the bankers want us to have it so they can collect their interest and fees but, seriously, is free-flowing credit what the American public needs right now? Living beyond our means is what caused the credit meltdown in the first place!

Here’s a meaty statistic: the Baltic Dry Index, which measures the demand for global shipping capacity, dropped from 11,793 last May to, get this, an inconceivable zero. The complexity of the BDI is beyond the scope of this post but, suffice it to say, there are lots of cargo ships sitting at anchor today. The collapse of the BDI augurs a rapidly evaporating demand for foreign goods. Combine this with the massive deterioration in domestic consumption during the fourth quarter of 2008, and wager a guess as to the meaning of it all. We’re not buying anything and the world is following suit! So tell me, Wall Street wizards, why the continued hyperbole about a credit crunch?

How could our purchasing habits change so dramatically overnight? Currently, Americans own an estimated 250 million personal computers and 175 million iPods. There are 9 million mobile homes within our borders, approximately 102-130 million single-family homes, and countless million apartments. One could safely assert that there’s a home, an mp3 player and a personal computer for every man, woman and child in the United States. I’ll go on. Everyone has a television, a cell phone. Nearly everyone owns a car. Most have closets full of clothes they never wear, and we all have too many shoes. So when Barack Obama, Ben Bernanke or anyone else talks about freeing up the flow of credit, we should ask ourselves why.

Recently, through the dense economic fog came a thin ray of revelation: I may actually have enough stuff. Perhaps, just maybe, I can stop buying new stuff for awhile. I can keep my slightly dented iPod for yet another year. My Toyota with 90,000 miles is probably good for another road trip or two. I won’t move to a bigger house just yet, or buy the 52″ flatscreen Santa forgot to leave under the tree. I may have to forego the spring sales and make do with last summer’s tank tops, wrong color though they may be.

I don’t mean to minimize the hardship of doing without, but we are a nation of excess inventory. Somewhere in our stuffed dressers and overfull garages, there is room to accommodate a changed perspective.

Wall Street is telling us that all will soon be well. If we just give them hundreds of billions, they’ll take their cut and loan the rest to us so we can get back to “business as usual”. But what if we don’t cooperate with their economic “recovery” plan? What if we collectively turn our backs on Wall Street and Madison Avenue and live simply, buying what we need and paying as we go, stopping to share with others along the way?

Remember, our banks and investment companies built themselves toward inevitable failure during the economic boom. Don’t expect them to act nobly in the coming recession because they won’t. You can bank on that. So stop worrying about their silly market indices and their credit machinations. Let the Federal government give them another trillion pieces of worthless paper. Help them plaster their walls with negotiable instruments. Make them eat derivatives for breakfast, sell them short against the box and leverage them to outerspace. Leave them with their excess shipping capacity and their phantom dollar bills.

It’s time for the rest of us to disembark this sinking stinking ship for good.

Who is the economy calling stupid?

Okay, I’ve had enough of our readiness to believe, about the economy, that nobody knows what’s going on. Nobody will tell you what’s going on, is what’s going on.

Even my deepest thinking friend tells me, “Eric, they really don’t know” (The game theorists, the would-be global axis shifters, don’t know.) He may be right, but that’s not who we’re talking about. Between those guys, and you and I, who have no clue about where the economy is going, is a hand-basket courier. That composite abstraction at the handlebars knows the destination, he’s being paid cost-plus for the delivery, and he knows enough to collect his fee in advance.

We thought “it’s the economy, stupid” was directed at George Bush the Senior. Who is/was stupid? I’m finding the syncronicity of Alanis Morissette’s Jagged Little Pill song “Isn’t it ironic?” superlatively ironic. The era when a mass audience un-learned the meaning of irony, was when the joke was really on us.

Today the accepted theme to describe the economy is: nobody knows. I recently heard the governor of Colorado speak to the need for budget cuts in these hard times. He introduced the subject of the economic downturn by explaining, almost as a throwaway foregone conclusion, “Nobody saw this coming.”

I thought, really? This is what Americans are satisfied to expect for leadership? Elected authority figures return our system to us, broken, with not a mea culpa, but mea confuso. And we buy it.

For me, this no-comprendo motif doesn’t play well in Adagio. Today DC’s new lawmakers want to know what’s become of the first half of the TARP bailout money, and the good-enough-for-primetime answer is “nobody knows.” Don’t you just want to stand up and beg your fellow audience members for a collective show of incredulity? “NOBODY KNOWS?!”

Whoever pocketed the 350 Billion, KNOWS.

From explanations of the graft in Iraq, we the television public KNOW that just one million dollars in t-bills weighs more than you can get past surveillance cameras.

From nighttime video of the economic collapse in Argentina, documentary footage viewers know it takes a continuous train of armored trucks to do a run on the banks before the public gets there.

By the way, I’m certain Billion is always capitalized, out of respect for its size.

“Nobody knows” where went the 350 Billion? No. Nobody who knows, intends to tell us.

Either way, we don’t get to know, but the distinction makes a difference, don’t you think? The excuse we’re given for not dwelling on this incongruity, nudge nudge wink wink, is that all misdirection is for the sake of consumer confidence.

To look behind the green curtain is to become dis-illusioned. If you explain the slight of hand, instead of building confidence, you throw fuel on consumer doubt.

The better economists opposed the bailout. Hundreds of them signed a petition to tell us what’s going on is a heist. Under George Bush, bankers have been making off with the US treasury. What they couldn’t spend pay themselves to foist a war, or give themselves in tax cuts, they are having to abscond with under cover of an eleventh hour “bailout.”

The best of the honest economists, Paul Krugman, was given a Nobel Prize. At the same time, our president-to-the-rescue is saying he’d consider the advice of “even Paul Krugman,” like Krugman is a fringe opinion.

Do we empower the American public beast with a truer education about what’s happening to their finances, or do we narrow their peripheral foresight like the gangway to the abbatoire?

P.T. Barnum said no one ever went broke underestimating the American public. Barnum saw opportunity and he took it. I’ll bet he wasn’t satisfied to invest his winnings on the advice of the public’s broker.

The economy is tanking because the Bush investment banker free-for-all is over.

The cash heart of the consumer confidence fattened-calf is already in the bloody hands of the high priests. The American consumer is what’s being thrown off the wall. And the communal wealth of America’s middle class can’t be put together again because the pieces which formed Humpty Dumpty’s actual pre-confidence-ballooned size are going to come up missing.

Not missing, exactly. Look at the corporate jets, private skyboxes, enormous estates, private island kingdoms and advance ticket sales of quarter-million-dollar fares into space.

With much recent ballyhoo, George Bush set aside for protection some nature preserves in the Pacific. Unlike Yellowstone, or Yosemite, these parks of azure coral reefs are inaccessible. To you.

Barack Obama’s spread-the-wealth-around campaign lingo had nothing to do with the mad scramble to divvy the pot. Obama represents our non-insider’s reflexive grab for the fewer spoons. If Obama represents a wisening up at all.

Beyond buy low, sell high, here’s an example of how the scam worked: If a $100K house can be made seem worth $500K, a broker gets five times the commission, say $60K instead of $12K, and collects that money in cash. When the cows come home, you’ve got just a house, and let’s admit that value is arbitrary. But the broker is free and clear, his gleaning of a cash value done.

And actually, your house is not even worth the cost to build it. As the democratic capitalist apparatus downgrades, and the wealthy lose empathy for the lower classes, your house is worth just the value of the shelter it provides. Look at the concern they show for your health care. Your well-being, food and shelter wise, is worth only as much as the value you add to your landlord’s pleasure.

Did Bush cause the financial crisis?

Did Bush cause the financial crisis? is the question that the BBC’s North America Business Correspondent in New York, Greg Wood briefly explores and his conclusion is not surprising.

Here is a summation of his argument.

‘Deregulation started long before President Bush came to power, and it was enthusiastically pursued by both Democratic and Republican administrations. ‘

‘So the image of Mr Bush as the arch deregulator and the Democratic Party as the champion of stricter rules for business does not quite tally with the evidence.’

Why is it that so many liberals are deluded into thinking that one man caused the problems our country is now facing and that one man is going to fix them? It is hard to not think of the Democratic Party voting liberals as being as much the real problem as its solution. After all, they consistently vote for a now majority group of the problem makers, the Democratic Party politicians, and these liberals have not an ounce of desire to do anything more than this it seems.

Most of the ‘voters’ simply do nothing more than ‘vote’ for their one person solution, once every four years. Or perhaps to be fair, they ‘vote’ for subordinates too to their supposed Saviours, usually a time or two in the mean time between presidential elections. They are quite simply as deluded and lazy lot when you look at them rationally, rather than through their own rose-tinged sun glasses of CHANGE that ain’t.

So when you liberals begin to lose your jobs, houses, and your families begin to fall apart from the ensuing chaos, look in the mirror, will you? You voted for the problem instead of trying to change things for the better. Your acceptance of this single See-Saw American Political Corporatized System of ‘voting’ is what caused the financial crisis. Don’t just blame Bush alone, you are the problem.

The gilded age and the police nightstick

Oscar of the Waldorf cookbookA legacy institution of the Gilded Age is the Waldorf=Astoria Hotel. Most of us only know it from the nutty salad, the mysterious Red Velvet Cake recipe, Thousand Island Dressing and Veal Oscar named for the famous maitre d’ hotel. I encountered the book of recipes collected by “Oscar of the Waldorf” and its cover illustration caught my eye. The coachman and carriage don’t look so opulent to us today, but do you recognize a timeless trapping of affluence? There’s nothing else in the picture but the policeman and his nightstick.

We almost dismiss the incongruity of the attendant police officer. That’s because he’s Officer Friendly to us, circa the 1950s egalitarian economic boom, earned post New Deal and post WWII, when law enforcement began to serve and protect the middle class share of the pie. Before those times, whose order did the police enforce?

Could the Waldorf diorama have featured some other occupation at the curb? A newsboy, a shoeshine, or a traffic director? If the cabbie is picking up late night revelers, why not depict a doorman or lamplighter?

If this scene did not include the policeman, he’d be missing.

The Gilded Age of the soaring wealth of bankers and industrialists, of the steel, coal, and rail robber barons, came at the expense of poverty wages for all the rest. The homeless of America’s eastern cities died in the streets, if they crossed the paths of the leisure class at all. As in London, where the bobbies were celebrated for carrying no guns, cops on the beat didn’t need more than a nightstick to beat back beggars and riffraff.

Just as in the Waldorf illustration, the policeman’s nightstick isn’t holstered, it is fingered idly like a baton. We’ve seen it in countless Chaplin, Keaton, and Keystone reels. The policeman’s baton might be carried idly, and animated mindlessly as a clerk might twirl a pencil, but the gyrations telegraphed a swinging function meant to be understood.

Today, a modern financial crisis has finally hit the post industrial era, and unemployment is taking a precipitous plunge. The repercussions for the American middle class are yet unclear to most, their comforts still too tangible to fathom gone. But our modern times have already seen the resurgence of the Rich And Famous, (to even beyond the lunge of our Super-Lotto winners, who always chose the sub-six-figure annuity). Exclusive cars, toy submarines and tickets into space cost multi-millions, but the rich have that money to burn. Common Americans have also watched the armoring of their police, using weapons which offend us, but which protect the security of institutional wealth. Para-military police forces are the natural escalation of the right-to-bear-arms arms-race, the equivalent of nightsticks to quell our social disquiet.

Already aren’t we seeing the police block the public’s way, lest we soil the red carpet of the well-heeled? Aren’t police blocking free speech in public spaces, when the monied media has decided it wants the backdrop to serve their message? Wait until we are gazing covetously upon the gilded extravagances, from the alley side of the gilded wrought iron gate.
guilded age of the nightstick
Wiki notes:
Thousand Island Dressing came to the Waldorf from the so-named Lake Ontario waterway where New York’s super rich had their summer homes. The $100 recipe for Red Velvet Cake was the urban myth which resurfaced as the $250 Neiman Marcus chocolate chip cookie.

The original Waldorf Hotel was built by an Astor whose middle name was Waldorf, next door to an aunt with whom he was feuding. Later another Astor convinced her to move uptown and replaced her home with a taller hotel named the Astoria. The two luxurious hotels hyphened via the Peacock Alley, inspiring the popular song “Meet me at the hyphen.” In 1931 the landmark was moved to accommodate the Empire State Building, and was purchased in 1949 by Conrad Hilton who added the double-hyphen flourish, completely in the spirit of gilded ornamentation.

Money As Debt video

moneytrapThere is a short 45 minute video called Money As Debt that gives a great explanation of the current Financial Crisis. It is thoughtful, easy to understand, and a well done video with illustrations and quotes from insiders used as references.

Thanks to David V. for sending it my way! He’s been doing a lot of thinking about the real estate bubble in the South Florida region over the last 2 years. It is a bad situation in that area of the country.

Time to use the word DEPRESSION again

One of the most ridiculous of the utterly false and phony positive thinking talking points used by the US’s Right Wing corporate daily press and the talking heads of their TV stations is their constant babble about whether we have entered into a ‘recession’ or not? The correct word to be used is depression, it ‘s an ECONOMIC DEPRESSION we have been entered into worldwide, and there is nothing left to debate about it either. It’s here. End of discussion. Go take a hike, Clowns@!

Today, stocks fell almost 7% and that now is a drop of about 25% from the DOW all time high just 2 years ago. That is a depression. Further, this Friday morning Japanese stocks have already fallen 11% of their value in just a few minutes of trading. That is an economic depression.

Let’s cut to the quick on this. Bush and his clown clones are through. They are out of here. This presidential election will turn out to be a rout of McCain/ Palin, because they are more of the same, and The Same just flushed itself down the toilet via a whole shitload of corruption finally coming home to roost. But there is yet more here than the rout of the neocon corruptionists that will occur. If we in America are fed up with this crew, the rest of the world is even more so.

Yes, the rest of the world is going down the drain with us and our stupid economy where thieves rule the rest of us. They are going to hate the US for the misery we have delivered them into. In fact, they already do. Afghanistan to Iraq to Somalia to Pakistan and flush, flush, flush. They can put it together, even if your dumb Republican neighbors can’t.

It’s time to use the word depression once again, because we alhough we all thought the thought that ‘communism’ self destructs, we had all but forgotten that capitalism does just that in an even much worse way. We have been entered into a worldwide economic depression by all those that fed us the total line of crap that it was all running so very smoothly. Pompous stupid, arrogant twits they were, and now the world has once again had its eyes opened to the dangers that capitalism constantly puts the human race into. The unemployment to come will soon see to that.

The rich everywhere will say that The Treasury has no money to stop it. You can bet your 401K retirement funds on it! And the whole world will correctly blame the US government, AND the stupid American people themselves, for what is being done to them. Get used to really being hated, My Friends. And we will be hated rightly so, for playing stupid so long.

Good luck, Democratic Party. Just because everybody holds the Republican Party to be hugely responsible for this mess, don’t think that they won’t also begin to see you as the Republican’s cohorts. Hell! That’s what you have always claimed to be actually, isn’t it? People played stupid though and didn’t take you people at your own word. You are now in a BIG, BIG, BIG… BIPARTISAN MESS. We got it. You earned it!

Yes, it’s time to once again use the word DEPRESSION once again. It will be hard on us all (save the Capitalist rich who always profit off human misery).

How a ‘credit crunch’ can help kick an economic depression into place

jenny_and_marx.jpg In a system…where the entire continuity of the…process rests upon credit, a crisis must obviously occur — a tremendous rush for means of payment — when credit suddenly ceases and only cash payments have validity. At first glance, therefore, the whole crisis seems to be merely a credit and money crisis. And in fact it is only a question of the convertibility of bills of exchange into money.

But the majority of these bills represent actual sales and purchases, whose extension far beyond the needs of society is, after all, the basis of the whole crisis. At the same time, an enormous quantity of these bills of exchange represents plain swindle, which now reaches the light of day and collapses; furthermore, unsuccessful speculation with the capital of other people; finally, commodity-capital which has depreciated or is completely unsaleable, or returns that can never more be realized again.

The entire artificial system of forced expansion of the [ecomony] cannot, of course, be remedied by having some bank, like the [Federal Reserve], give to all the swindlers the deficient capital by means of its paper and having it buy up all the depreciated commodities at their old nominal values.

Incidentally, everything here appears distorted, since in this paper world, the real price and its real basis appear nowhere, but only bullion, metal coin, notes, bills of exchange, securities. Particularly in centers where the entire money business of the country is concentrated, like London [or New York]…the entire process becomes incomprehensible.

Senators give Paulson keys to treasury

The Senate has signed Paulson’s blank check for the Wall Street ransom payment. Band of Thieves, Murder of Crows, Goddamn Jerk of Senators!
democrat-republican
Overheard on the radio about Obama/McCain: “It’s amazing such similar solutions for the economic crisis can be coming from such vastly different candidates.” Not so amazing if you consider you’ve only assumed the red and blue are opposites. Both candidates colluding with the Banking oligarchs could be a tipoff that both parties represent the same interests. Time to wonder how the American people’s interest might have been represented by an alternative third [sic] party?

How well are you reconciling Barack Obama’s theme of “change” as he stumped for the Wall Street money grab. Obama likened the crisis to your neighbor’s house being on fire. Besides the implication that no one would want to be uncharitable, you might also deign to pitch in for the selfish motive of keeping your neighbor’s fire from spreading to your house. That was Obama’s clever pitch, but is that what the failing investments represent? The bankers’ homes? Hardly. I can’t even think of an analogy to represent what the jeopardized assets represent to the hierarchy of needs of the super wealthy.

Assuming they are your neighbors. Would it be their twelfth snow-machine that’s on fire? Their son’s floozy’s uncle’s twelfth snowmobile on fire and threatening your house. You need to what, pay him to buy another so that the burning one can be safely drenched without pissing him off, since the thrill he gets from that snowmobile is to keep it ablaze for the thrill of endangering you and your family.

Try that one on us Obama.

UPDATE FROM MICHAEL MOORE:

Tonight, the Senate passed an even worse “bailout” bill than the one the House defeated on Monday night. Only 25 Senators (and most of them for the wrong reasons) voted “No.” It now moves to the House for a vote, possibly on Friday. Why did Obama and Biden vote for it? I think we all know the answer. Let’s keep our eye on the ball of removing the Republicans from the White House, but let tonight be our first reminder that our work is not finished on November 4th when Obama wins. The struggle between what is best for the people and what is best in order to line the pockets of Wall Street will continue. 150 million Americans combined can’t even match the wealth of the richest 400 Americans. All we have is our vote. And there will always be more of us than them. We will all need to become more politically active if we are going to get our democracy back.

Credit crunch is a symptom of US economic malaise, not the cause of it

Texas A and MTaxpayers gifting the rich with $7,000,000,000 will not stop the coming capitalist depression at all, because it simply does not address the root causes of anything. We have been told that this crisis is merely the fault of toxic debts piling up from an American ‘housing bubble’, which happened due the crookedness of a few bad apples. Yes, its true, they add a few more details to this sob story but that is essentially all there is to the story line, with none of the American corporate ‘leadership’ class taking any personal or political responsibility at all. That is not too surprising about these moralizing immoralists at all. It is par for their course.

But the root cause of the capitalist downturn is about much more than a credit crunch cause or a real estate mortgages beginning the collapse. It is actually about the deficit military spending that corporate America has led us into with their stupid and asinine wars against shadows of their own making. Despite the destruction caused on that fateful day termed ‘9/11’, it could have been nothing more than a temporary and unfortunate side show for our country, but instead it was seized on by the military, policing, and corporate communities to justify skyrocketing their budgets, incomes, and profits. They went on a borrowing spree using foreign credit!

They did not buy anything of real value or substance though, and they progressively bankrupted the bulk of Americans by doing their borrowing, all the time while waving Old Glory and talking of American pride and national security, which they were busy undermining. ‘USA, USA, USA’ became the cry of the dunces they had marching behind them. They tortured not only Pentagon held POWs, but the American soul itself. The big guys total control over political life is what got us down into the pit.

Now, the only economic ‘security’ left for Americans is in the seeming ability to drag others down economically with us. Since we were such fat consumers here in the land of milk and honey, many depended on supplying us. However that market is about to collapse. Add to that that the whole world is left holding much of the valueless paper that our ruling class force fed to them at guns length. And, of course, we still have the biggest arsenal around. That almost makes our Federal Government just like any insane neighbor with an insanely huge gun collection, but barely living while dependent on food stamps to eat some fast food Chinese once and a while. Sarah and Dick to go hunting with perhaps?

Look around? The American auto industry just asked and got close to $30 billion in ‘bailout’ loot, too. It’s about to sink. And the biggest economic sink of them all is about to sink in the days ahead, also. Quite simply, our military is not sustainable. That is the cause of our economic malaise, not the housing market getting squeezed. All industry and finance got dragged down together in mass, and not just car sales and real estate.

The idiots of our country continue to want to wave the flag. They continue wanting to pump borrowed money into fighting unnecessary foreign wars like it is all some sort of crazed football game being played on the pro level! They like that corporate logo of Old Glory just as they do not mind all the corporate advertising hanging all over the place at the stadiums they hang out at weekends. They like the political and corporate cheerleaders, same as they like the young coed types with bonbons. at their games. This is their None Entiendo game done ever so Grande. Beep, beep, beep beep… Fireworks display!

The root cause of the economic downturn is deficit spending and deficit thinking by our neighbors, especially so in our White Conservative Christian neighborhoods, church on every other block. To sum it up, throwing $700,000,000,000 of tax money at the failed businesses solves nothing. It’s like throwing more weight on that old football bonfire.

Remember that collapse of the Texas A&M bonfire pileup several years ago? That’s the type of thinking America has on board at present. The economic bonfire stack is merely being set for collapse with this stupid bailout that they will eventually put through, because our nation is too dumb to have stopped it when we could. That picture of the Aggie bonfire before it collapsed is just like the Federal deficit debt pileup that is due to come crashing down on all of us. They constructed it out of vainglory.

Stop the Senate of would-be thieves!

wallstreet-bailoutCall your Band of Thieving Senators now to tell them you don’t want to give $700 Billion –more honestly likely to be $5 Trillion– to the robber bankers of Wall Street! Telephone Colorado Senators Ken Salazar at 202.224.5852 and Wayne Allard at 202.224.5941 NOW. Why not call OBAMA too! (phone: 202-224-2854) Tell them you want them to consult with at least ONE economist of repute! At least one analyst not on the corporate payroll. As he promised yesterday, Michael Moore suggests a 10 PART PLAN, only IF pressure can be brought to bear right now to stop the Senate bill.

Friends,

The richest 400 Americans — that’s right, just four hundred people — own MORE than the bottom 150 million Americans combined. 400 rich Americans have got more stashed away than half the entire country! Their combined net worth is $1.6 trillion. During the eight years of the Bush Administration, their wealth has increased by nearly $700 billion — the same amount that they are now demanding we give to them for the “bailout.” Why don’t they just spend the money they made under Bush to bail themselves out? They’d still have nearly a trillion dollars left over to spread amongst themselves!

Of course, they are not going to do that — at least not voluntarily. George W. Bush was handed a $127 billion surplus when Bill Clinton left office. Because that money was OUR money and not his, he did what the rich prefer to do — spend it and never look back. Now we have a $9.5 trillion debt. Why on earth would we even think of giving these robber barons any more of our money?

I would like to propose my own bailout plan. My suggestions, listed below, are predicated on the singular and simple belief that the rich must pull themselves up by their own platinum bootstraps. Sorry, fellows, but you drilled it into our heads one too many times: There… is… no… free… lunch. And thank you for encouraging us to hate people on welfare! So, there will be no handouts from us to you. The Senate, tonight, is going to try to rush their version of a “bailout” bill to a vote. They must be stopped. We did it on Monday with the House, and we can do it again today with the Senate.

It is clear, though, that we cannot simply keep protesting without proposing exactly what it is we think Congress should do. So, after consulting with a number of people smarter than Phil Gramm, here is my proposal, now known as “Mike’s Rescue Plan.” It has 10 simple, straightforward points. They are:

1. APPOINT A SPECIAL PROSECUTOR TO CRIMINALLY INDICT ANYONE ON WALL STREET WHO KNOWINGLY CONTRIBUTED TO THIS COLLAPSE. Before any new money is expended, Congress must commit, by resolution, to criminally prosecute anyone who had anything to do with the attempted sacking of our economy. This means that anyone who committed insider trading, securities fraud or any action that helped bring about this collapse must go to jail. This Congress must call for a Special Prosecutor who will vigorously go after everyone who created the mess, and anyone else who attempts to scam the public in the future.

2. THE RICH MUST PAY FOR THEIR OWN BAILOUT. They may have to live in 5 houses instead of 7. They may have to drive 9 cars instead of 13. The chef for their mini-terriers may have to be reassigned. But there is no way in hell, after forcing family incomes to go down more than $2,000 dollars during the Bush years, that working people and the middle class are going to fork over one dime to underwrite the next yacht purchase.

If they truly need the $700 billion they say they need, well, here is an easy way they can raise it:

a) Every couple who makes over a million dollars a year and every single taxpayer who makes over $500,000 a year will pay a 10% surcharge tax for five years. (It’s the Senator Sanders plan. He’s like Colonel Sanders, only he’s out to fry the right chickens.) That means the rich will still be paying less income tax than when Carter was president. This will raise a total of $300 billion.

b) Like nearly every other democracy, charge a 0.25% tax on every stock transaction. This will raise more than $200 billion in a year.

c) Because every stockholder is a patriotic American, stockholders will forgo receiving a dividend check for one quarter and instead this money will go the treasury to help pay for the bailout.

d) 25% of major U.S. corporations currently pay NO federal income tax. Federal corporate tax revenues currently amount to 1.7% of the GDP compared to 5% in the 1950s. If we raise the corporate income tax back to the level of the 1950s, that gives us an extra $500 billion.

All of this combined should be enough to end the calamity. The rich will get to keep their mansions and their servants, and our United States government (“COUNTRY FIRST!”) will have a little leftover to repair some roads, bridges and schools.

3. BAIL OUT THE PEOPLE LOSING THEIR HOMES, NOT THE PEOPLE WHO WILL BUILD AN EIGHTH HOME. There are 1.3 million homes in foreclosure right now. That is what is at the heart of this problem. So instead of giving the money to the banks as a gift, pay down each of these mortgages by $100,000. Force the banks to renegotiate the mortgage so the homeowner can pay on its current value. To insure that this help does no go to speculators and those who have tried to make money by flipping houses, this bailout is only for people’s primary residence. And in return for the $100K paydown on the existing mortgage, the government gets to share in the holding of the mortgage so that it can get some of its money back. Thus, the total initial cost of fixing the mortgage crisis at its roots (instead of with the greedy lenders) is $150 billion, not $700 billion.

And let’s set the record straight. People who have defaulted on their mortgages are not “bad risks.” They are our fellow Americans, and all they wanted was what we all want and most of us still get: a home to call their own. But during the Bush years, millions of them lost the decent paying jobs they had. Six million fell into poverty. Seven million lost their health insurance. And every one of them saw their real wages go down by $2,000. Those who dare to look down on these Americans who got hit with one bad break after another should be ashamed. We are a better, stronger, safer and happier society when all of our citizens can afford to live in a home that they own.

4. IF YOUR BANK OR COMPANY GETS ANY OF OUR MONEY IN A “BAILOUT,” THEN WE OWN YOU. Sorry, that’s how it’s done. If the bank gives me money so I can buy a house, the bank “owns” that house until I pay it all back — with interest. Same deal for Wall Street. Whatever money you need to stay afloat, if our government considers you a safe risk — and necessary for the good of the country — then you can get a loan, but we will own you. If you default, we will sell you. This is how the Swedish government did it and it worked.

5. ALL REGULATIONS MUST BE RESTORED. THE REAGAN REVOLUTION IS DEAD. This catastrophe happened because we let the fox have the keys to the henhouse. In 1999, Phil Gramm authored a bill to remove all the regulations that governed Wall Street and our banking system. The bill passed and Clinton signed it. Here’s what Sen. Phil Gramm, McCain’s chief economic advisor, said at the bill signing:

“In the 1930s … it was believed that government was the answer. It was believed that stability and growth came from government overriding the functioning of free markets.

“We are here today to repeal [that] because we have learned that government is not the answer. We have learned that freedom and competition are the answers. We have learned that we promote economic growth and we promote stability by having competition and freedom.

“I am proud to be here because this is an important bill; it is a deregulatory bill. I believe that that is the wave of the future, and I am awfully proud to have been a part of making it a reality.”

This bill must be repealed. Bill Clinton can help by leading the effort for the repeal of the Gramm bill and the reinstating of even tougher regulations regarding our financial institutions. And when they’re done with that, they can restore the regulations for the airlines, the inspection of our food, the oil industry, OSHA, and every other entity that affects our daily lives. All oversight provisions for any “bailout” must have enforcement monies attached to them and criminal penalties for all offenders.

6. IF IT’S TOO BIG TO FAIL, THEN THAT MEANS IT’S TOO BIG TO EXIST. Allowing the creation of these mega-mergers and not enforcing the monopoly and anti-trust laws has allowed a number of financial institutions and corporations to become so large, the very thought of their collapse means an even bigger collapse across the entire economy. No one or two companies should have this kind of power. The so-called “economic Pearl Harbor” can’t happen when you have hundreds — thousands — of institutions where people have their money. When you have a dozen auto companies, if one goes belly-up, we don’t face a national disaster. If you have three separately-owned daily newspapers in your town, then one media company can’t call all the shots (I know… What am I thinking?! Who reads a paper anymore? Sure glad all those mergers and buyouts left us with a strong and free press!). Laws must be enacted to prevent companies from being so large and dominant that with one slingshot to the eye, the giant falls and dies. And no institution should be allowed to set up money schemes that no one can understand. If you can’t explain it in two sentences, you shouldn’t be taking anyone’s money.

7. NO EXECUTIVE SHOULD BE PAID MORE THAN 40 TIMES THEIR AVERAGE EMPLOYEE, AND NO EXECUTIVE SHOULD RECEIVE ANY KIND OF “PARACHUTE” OTHER THAN THE VERY GENEROUS SALARY HE OR SHE MADE WHILE WORKING FOR THE COMPANY. In 1980, the average American CEO made 45 times what their employees made. By 2003, they were making 254 times what their workers made. After 8 years of Bush, they now make over 400 times what their average employee makes. How this can happen at publicly held companies is beyond reason. In Britain, the average CEO makes 28 times what their average employee makes. In Japan, it’s only 17 times! The last I heard, the CEO of Toyota was living the high life in Tokyo. How does he do it on so little money? Seriously, this is an outrage. We have created the mess we’re in by letting the people at the top become bloated beyond belief with millions of dollars. This has to stop. Not only should no executive who receives help out of this mess profit from it, but any executive who was in charge of running his company into the ground should be fired before the company receives any help.

8. STRENGTHEN THE FDIC AND MAKE IT A MODEL FOR PROTECTING NOT ONLY PEOPLE’S SAVINGS, BUT ALSO THEIR PENSIONS AND THEIR HOMES. Obama was correct yesterday to propose expanding FDIC protection of people’s savings in their banks to $250,000. But this same sort of government insurance must be given to our nation’s pension funds. People should never have to worry about whether or not the money they’ve put away for their old age will be there. This will mean strict government oversight of companies who manage their employees’ funds — or perhaps it means that the companies will have to turn over those funds and their management to the government. People’s private retirement funds must also be protected, but perhaps it’s time to consider not having one’s retirement invested in the casino known as the stock market. Our government should have a solemn duty to guarantee that no one who grows old in this country has to worry about ending up destitute.

9. EVERYBODY NEEDS TO TAKE A DEEP BREATH, CALM DOWN, AND NOT LET FEAR RULE THE DAY. Turn off the TV! We are not in the Second Great Depression. The sky is not falling. Pundits and politicians are lying to us so fast and furious it’s hard not to be affected by all the fear mongering. Even I, yesterday, wrote to you and repeated what I heard on the news, that the Dow had the biggest one day drop in its history. Well, that’s true in terms of points, but its 7% drop came nowhere close to Black Monday in 1987 when the stock market in one day lost 23% of its value. In the ’80s, 3,000 banks closed, but America didn’t go out of business. These institutions have always had their ups and downs and eventually it works out. It has to, because the rich do not like their wealth being disrupted! They have a vested interest in calming things down and getting back into the Jacuzzi.

As crazy as things are right now, tens of thousands of people got a car loan this week. Thousands went to the bank and got a mortgage to buy a home. Students just back to college found banks more than happy to put them into hock for the next 15 years with a student loan. Life has gone on. Not a single person has lost any of their money if it’s in a bank or a treasury note or a CD. And the most amazing thing is that the American public hasn’t bought the scare campaign. The citizens didn’t blink, and instead told Congress to take that bailout and shove it. THAT was impressive. Why didn’t the population succumb to the fright-filled warnings from their president and his cronies? Well, you can only say ‘Saddam has da bomb’ so many times before the people realize you’re a lying sack of shite. After eight long years, the nation is worn out and simply can’t take it any longer.

10. CREATE A NATIONAL BANK, A “PEOPLE’S BANK.” If we really are itching to print up a trillion dollars, instead of giving it to a few rich people, why don’t we give it to ourselves? Now that we own Freddie and Fannie, why not set up a people’s bank? One that can provide low-interest loans for all sorts of people who want to own a home, start a small business, go to school, come up with the cure for cancer or create the next great invention. And now that we own AIG, the country’s largest insurance company, let’s take the next step and provide health insurance for everyone. Medicare for all. It will save us so much money in the long run. And we won’t be 12th on the life expectancy list. We’ll be able to have a longer life, enjoying our government-protected pension, and living to see the day when the corporate criminals who caused so much misery are let out of prison so that we can help reaclimate them to civilian life — a life with one nice home and a gas-free car that was invented with help from the People’s Bank.

Yours,
Michael Moore

P.S. Call your Senators now. Here’s a backup link in case we crash that site again. They are going to attempt their own version of the Looting of America tonight. And let your reps know if you agree with my 10-point plan.

Who not to blame for failed bailout

wall-street-bailout protest
COLORADO SPRINGS- We held posters that read SEIZE THE FED, JAIL NOT BAIL-OUT, FORECLOSE ON WALLSTREET, NO REWARD FOR HIGH RISK, and of course NO BUSH BAILOUT. When we got rebuttals, it went like this: “Why do you bring Bush into this? Bush doesn’t have anything to do with the bailout.” We needed to complain to Barack, apparently.

Bush supporters come in either the biggest pickup trucks or the rustiest. There’s probably no socio-economic divide between the voters who wanted Bush for a drinking buddy.

A Vectra Bank representative came outside to ask us if we could move from under their sign, so as not to give the false impression we were protesting their bank, particularly at a time when depositors might easily be spooked into a run on the bank. We moved nearer the Wachovia Bank, perhaps a better juxtaposition anyway.

We were prepared for the inevitable, can you suggest something better? From Karl Denninger at Market Ticker, who credits Janet Tavakoli:

1–Force all off-balance sheet “assets” back onto the balance sheet, and force the valuation models and identification of individual assets out of Level 3 and into 10Qs and 10Ks. Do it now. : (In other words, no more Enron-type accounting mumbo-jumbo and no more allowing the banks assign their own “values” to dodgy assets)

2–Force all OTC derivatives onto a regulated exchange similar to that used by listed options in the equity markets. This permanently defuses the derivatives time bomb. Give market participants 90 days; any that are not listed in 90 days are declared void; let the participants sue each other if they can’t prove capital adequacy. (If trading derivatives contracts can damage the “regulated” system, than that trading must take place under strict government regulations)

3–Force leverage by all institutions to no more than 12:1. The SEC intentionally dropped broker/dealer leverage limits in 2004; prior to that date 12:1 was the limit. Every firm that has failed had double or more the leverage of that former 12:1 limit. Enact this with a six month time limit and require 1/6th of the excess taken down monthly. (Ed: The collapse in the “structured finance” model is mainly due to too much leverage. For example, Fannie Mae and Freddie Mac had $80 of debt for every $1 dollar of capital reserves when they were taken into government conservatorship.)