Jeffrey Sachs on the American Corporate State

The Economist   Nov 12, 2011          

Homeward bound

How to turn America around

The Price of Civilisation: Reawakening American Virtue and Prosperity. By Jeffrey Sachs. Random House; 336 pages; $27. Published in Britain as “The Price of Civilisation: Economics and Ethics after the Fall”. Bodley Head; £20. Buy from Amazon.com, Amazon.co.uk

JEFFREY SACHS is an American economist best known for his prescriptions for economically diseased poor countries. The country he now considers most in need of his diagnostic gifts is his own. “Something has gone terribly wrong in the US economy, politics, and society in general,” Mr Sachs writes in “The Price of Civilisation”. American politicians are the stooges of corporations, he says. And American voters have been tranquillised into obesity by saturation advertising.

Such sentiments would appear unremarkable if spouted by an Occupy Wall Street protester. But Mr Sachs, a professor at Columbia University, is a respected, mainstream macroeconomist. Mr Sachs catalogues the familiar problems that beset the American economy: unemployment stuck at 9%, an exploding budget deficit, America ceding technological leadership to China, poorly educated American children.

But this is not principally a work of economics. Mr Sachs blames America’s problems on politics. In the 1960s, southerners began to desert the Democratic Party and Republicans began to build an insurmountable congressional barrier to more activist government, which Mr Sachs deeply regrets. He despises Barack Obama’s Democratic Party almost as much as he does Ronald Reagan’s Republicans: “On many days it seems that the only difference between the Republicans and Democrats is that Big Oil owns the Republicans while Wall Street owns the Democrats.” He is particularly scathing of the “revolving door” between Mr Obama’s administration and Wall Street.

The convergence between the parties, says Mr Sachs, has led to policies that systematically favour capital over labour, keep tax rates low on footloose multinational corporations and starve government programmes that benefit the poor and the unemployed. This, he claims, flies in the face of popular will: he cites polls that find the majority of Americans favour more activist government and higher taxes on the rich.

Mr Sachs’s analysis can be doctrinaire and one-dimensional, but it is almost always grounded in solid economics. Capital, he argues, has prospered more than labour during the era of globalisation. And America’s per head GDP is inflated by spending on an inefficient health-care system and the armed forces. Mr Sachs’s prescriptions are also admirably precise: the federal government should spend an additional 0.5% of GDP on worker training and the same again on early-childhood development; the top tax rate should be raised to 39.6%, which, neatly enough, he says, would raise the equivalent of 0.5% of GDP……….

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Slavoj Zizek Joins Occupy Wall Street

Amy Lee  Huffington Post  10/10/11

Occupy Wall Street got some Slovenian philosopher star power on Sunday, as Marxist academic Slavoj Zizek joined the movement.

“We are not destroying anything,” he said. “We are only witnessing how the system is destroying itself.”

Using the “Human Microphone” system, where protestors repeat back the words of the speaker so that others can hear, Zizek spoke for over an hour to the enthusiastic crowd, who whooped and cheered as he went on.

While in China, entertainment programming that depicts alternate reality and time travel has been banned, in the U.S., we have a different problem, according to Zizek.

“Here we don’t think of prohibition, because the ruling system has even oppressed our capacity to dream, ” he said. “Look at the movies that we see all the time — It’s easy to imagine the end of the world, an asteroid destroying a whole life, but you cannot imagine the end of capitalism. So what are we doing here?”

Zizek also advised the people to see the Tea Party as a sister movement — “They may be stupid, but don’t look at them as the enemy,” he said.

But he warned the protestors against succumbing to the excitement of the immediate events instead of keeping their eye on the prize: True social change.

// // Carnvials come cheap,” he admonished. “What matters is the day after, when we will have to return to normal life. Will there be any changes then? I don’t want you to remember these days, you know like, ‘Oh, we were young, it was beautiful.’ Remember that our basic message is: We are allowed to think about alternatives. The rule is broken. We do not live in the best possible way. But there is a long road ahead. There are truly difficult questions that confront us. We know what we do not want. But what do we want?”

Zizek is just the latest of the prominent figures who have come to lend their voice in Zuccotti Park, alongside activists like Michael Moore, writer Naomi Klein as well as actors including Mark Ruffalo, Susan Sarandon, and Roseanne Barr.

SLAVOJ ZIZEK AT OWS PART2 

Also: Slavoj Zizek: The Delusion of Green Capitalism 

US power grid tests approved without public consent (costs and consequences)

By Rosalind Peterson

July 31, 2011

http://newswithviews.com/Peterson/rosalindA.htm

On June 27, 2011, CBS News reported: “…A yearlong experiment with America’s electric grid could mess up traffic lights, security systems and some computers and make plug-in clocks and appliances like programmable coffeemakers run up to 20 minutes fast…” [1]   CBS News also reported that:  “…Tom O’Brian, who heads the time and frequency division at the National Institute of Standards and Technology, expects widespread (unspecified) effects…” [1].

The CBS report did not specify who approved this test.  This test will begin without public consent, substantial public notice or public debate in mid-July 2011 [1].  This test could disrupt so many businesses, state and local governments, and other government agencies, that it could quickly become a National Security nightmare and a massive public headache.

“A lot of people are going to have things break and they’re not going to know why,” said Demetrios Matsakis, head of the time service department at the U.S. Naval Observatory, one of two official timekeeping agencies in the federal government…This will be an interesting experiment to see how dependent our timekeeping is on the power grid, Matsakis said. [1-2].

According to CBS News, “…The North American Electric Reliability Corporation (NERC), runs the nation’s interlocking web of transmission lines and power plants and they will be conducting the tests…” [1, 3].  Will this company be liable for appliance replacement and other costs associated with these tests?

The disruptions from these tests may have the following consequences according to various news reports:

The government doesn’t give a wan, eitolated damn about you- Fred Reed

The government doesn’t give a wan, eitolated damn about you. 

Eye-balling the Fifth Century

July 21, 2011   By Fred Reed       FredOnEverything.net

When a country works reasonably well—when the schools teach algebra and not governmentally mandated Appropriate Values, when the police are scarce and courteous, when government is remote and minds its business and works more for the benefit of the country than for looters and special interests, then pledging to it a degree of allegiance isn’t foolish. Decades back America was such a country, imperfect as all countries are, but good enough to cherish.

As decline begins, and government becomes oppressive, self-righteous, and ruthless yet incompetent, as official spying flourishes, as corruption sets in hard, and institutions rot, it is time to disengage. Loyalty to a country is a choice, not an obligation. In other times people have loved family, friends, common decency, tribe, regiment, or church instead of country. In an age of national collapse, this is wise.

A fruitful field of disengagement might be called domestic expatriation—the recognition that living in a country makes you a resident, not a subscriber. It is one thing to be loyal to a government that is loyal to you, another thing entirely to continue that loyalty when the Brown Shirts march and the government rejects everything that you believe in. While the phrase has become unbearably pretentious, it is possible to regard oneself as a citizen of the world rather than of the Reich.

Inconvenient Truths About The Debt Ceiling: None of US debt has been repaid for 51 years

“Not one penny of US debt has been repaid for 51 years: the last time US government funded debt actually decreased on a year-over-year basis was 1960″

Zero Hedge    by Tyler Durden on 07/10/2011

Bill Buckler presents an amusing compendium of facts, let us call them inconvenient truths, in the latest edition of his newsletter, some of which would make for entertaining anecdotes if presented at the Biden “deficit cutting” talks, which also, and very paradoxically, aim to cut US debt by increasing it.

• Not one penny of US debt has been repaid for 51 years: the last time US government funded debt actually decreased on a year-over-year basis was 1960
• 97% of today’s funded debt has been accumulated since August 1971 – the end of the Bretton Woods era by Nixon, and the terminal delinking of all fiat currencies from any and all hard assets, ushered in the era of modern-day hyper-debt insolvency
• Obama projects 2.5% Fed Funds rate in budget calculations through 2020. Average Fed Funds rate since 1980: 5.7%; Since 2008: 0.00%, If average 5.7% rate was used, projected US deficit would increase by another $4.9 trillion by 2020
• Obama projects 4.2% growth rate over next 3 years. If a normal growth rate of 2.5% is used, deficits would increase by another $4 trillion by 2020
• The US government borrows 40-50 cents for every dollar it spends. A balanced budget would mean cutting government spending in half.
• Implementing a balanced budget would not reduce current debt outstanding. It would merely stop it from growing.
• Over the past three fiscal years US debt grew by over $1.5 trillion per year: this is more than three times the record annual debt increase in any previous year in US history
• Last night deficit reduction targets were cut from $4 trillion to $2 trillion over the next decade, in exchange for a $2.4 trillion debt ceiling hike, which will last the Treasury until the next presidential election. Said otherwise, the Treasury needs to fund a $2.4 trillion hold over the next 15 months. Over a decade this come to $20 trillion: ten times more than the proposed deficit reduction.

And the most inconvenient truth of all:

The Global Financial Crisis (GFC) is said to have been precipitated by the Lehman failure in 2008 which froze inter-bank lending on a global basis and almost brought down the system. It is said to have been prevented by a massive and global increase in new money creation. In reality, had economic nature been left alone to take its course, there is a good chance that the world would be fast emerging from its financial black hole by now. At a minimum, most of the malinvestments would have been discounted to the point where they would no longer act as a dead weight on future savings and investment.

Economic “miracles” (so-called) have happened before. The US emerged from a deep recession in 1920-21 because the government and the central bank did NOT interfere. Germany emerged from the actual physical rubble of WW II for exactly the same reason. So, to a lesser extent, did Japan. In all these cases, debts which could not be repaid were not held on life support by central banks, they were written off. In all these cases, creditors took very severe “haircuts” indeed while many debtors literally had to start again from scratch. In all these cases, the LACK of government impediments or government largesse meant that a recovery took place in a much shorter time frame than would otherwise have been the case.

Economic distortions today are HUGELY bigger than they were then. That means that the recession will be deeper and the recovery phase possibly longer. But until it is allowed to begin, there is no way out.

None of the above will be noted anywhere by the great diversionary media spin machine over the next two weeks, since July 22 is the date by which Congress says it needs to pass the debt ceiling legislation so it can get it to Obama’s desk for his signature by August 2.

See also:

Why QE2 Failed: The Money All Went Overseas:

On June 30, QE2 ended with a whimper. The Fed’s second round of “quantitative easing” involved $600 billion created with a computer keystroke for the purchase of long-term government bonds. But the government never actually got the money, which went straight into the reserve accounts of banks, where it still sits today.

 

Truth Decay: reality vs. perception management

First, define it.  (Tough one, huh?)  In an era of plausible deniability, drone over-kill and high-tech surveillance it is perfectly reasonable to suspect both events and motives. I expected this article might be another to put tin foil hats on the usual suspects but it has a little different approach, and it’s worth reading.

What was ‘reality’ when people were encouraged to “Remember the Maine!”? We still don’t know for sure. But with the sophisticated and highly paid perception management industry busy twisting facts into talking points, we need to keep our critical thinking caps on 24/7. It’s too easy to obscure a nasty black-op with a “conspiracy theory” label.

-cwr

***

By Greg Guma      May 25, 2011          AlterNet   

Truth Decay: Conspiracy Theories and Hoaxes Are Blurring Reality

How about some accountability for the false prophets, gross opportunists, and irresponsible rumor-mongers who threaten society with truth decay?

After his End Times prediction failed last week millionaire radio prophet Harold Camping eventually came up with an excuse.  During his show “Open Forum” in Oakland on May 23, he explained that the world will still end in October. It’s a process and we’re just getting started. That’s a relief. At first I thought millions of people had just wasted days of time and energy fussing over some hairbrained idea.

There are so many theories out there. Obama is a secret Muslim – millions of people believe that, secular humanists want to repress religion, and liberals are plotting to confiscate people’s guns and push a “gay agenda.” At the opposite end of the political spectrum, there’s the assertion that 9/11 was an inside job and all that this entails. No offense meant. I’ve been called a “conspiracy nut” myself, specifically for saying that we should know more about the attack on the Twin Towers. Still, a modern-day Reichstag fire at multiple locations does qualify as a radical conclusion.

I usually resist the urge to challenge the controversial theories of fellow travelers, at least in mixed company. The other night, for example, during a discussion about Al-Qaeda after Osama, a speaker casually asserted that President Roosevelt knew about the attack on Pearl Harbor in advance and let it happen. No one said a word. I considered questioning the notion but let it pass.

Anything’s possible, right? Why be rude? But some theories and predictions are too important. They are widely accepted as indisputable and part of an overall world view, usually linked with an anti-establishment ideology. They have practical consequences for social action, can spark deep divisions, and influence how people see and treat others. In some groups, if you question the conclusions of a prevailing theory you’re either a dupe or a collaborator.

Deep skepticism is often at the root, a good thing in general. After all, so much of what we once believed has turned out to be a lie, or at least a very selective version of reality. But still, shouldn’t there be standards? Also, why do some theories get all the attention while others, perhaps more credible ones, get buried? And can’t we at least call people to account when their claims repeatedly lead down false trails?

Security Implications and the Decline of U.S. Manufacturing

Globalization, multi-national corporations, off-shore tax havens and governments willing to support them have created a global criminal enterprise designed to pillage nations and peoples for the profit of a very few.  De-industrialization of the United States was orchestrated for this purpose by the “enemies foreign and domestic” that we were warned about. Their plot has now become our national policy, and Congressional concerns will not be made public. - Claudia

Intelligence and the Decline of U.S. Manufacturing

March 28th, 2011           by Steven Aftergood FAS Secrecy News

The U.S. intelligence community will prepare a National Intelligence Estimate on the implications of the continuing decline in U.S. manufacturing capacity, said Rep. Jan Schakowsky (D-IL) citing recent news reports.

“Last month Forbes reported that the continued erosion of the U.S. manufacturing base has gotten so serious that the Director of National Intelligence has begun preparation of a National Intelligence Estimate… to assess the security implications of the decline of American manufacturing,” said Rep. Schakowsky, a member of the House Intelligence Committee.

“Our growing reliance on imports and lack of industrial infrastructure has become a national security concern,” said Rep. Schakowsky.  She spoke at a March 16 news conference (at 28:10) in opposition to the pending U.S.-Korea Free Trade Agreement.

The Forbes report referenced by Rep. Schakowsky was “Intelligence Community Fears U.S. Manufacturing Decline,” by Loren Thompson, February 14. The decision to prepare an intelligence estimate was first reported by Richard McCormack in “Intelligence Director Will Look at National Security Implications of U.S. Manufacturing Decline,” Manufacturing & Technology News, February 3.

Rep. Schakowsky told the newsletter Inside U.S. Trade (March 25) that she hopes a “declassified portion” of the NIE will be publicly released.

But according to the Congressional Research Service, that may be unlikely. “There seems to be an emerging consensus that publicly releasing NIEs, or even unclassified summaries, has limitations. Some of the nuances of classified intelligence judgments are lost and there are concerns that public release of an unclassified summary of a complicated situation does not effectively serve the legislative process.” See “Intelligence Estimates: How Useful to Congress?” (pdf), January 6, 2011.

“With 14 million Americans out of a job we should not be considering a trade deal that will ship additional jobs overseas,” said Rep. Schakowsky, referring to the U.S.-Korea Free Trade Agreement.

“Instead, we need to work to rebuild the American manufacturing sector, creating jobs at home. And instead of approving FTAs (free trade agreements) that will offshore more American jobs, we need to establish a trade policy that benefits American workers and the entire American economy,” she said.

The CRS (pdf) cited a study which concluded that overall changes in aggregate U.S. employment attributable to the US-Korea agreement “would be negligible given the much larger size of the U.S. economy compared to the South Korean economy. However, while some sectors, such as livestock producers, would experience increases in employment, others such as textile, wearing apparel, and electronic equipment manufacturers would be expected to experience declines in employment.” Accordingly, the “U.S. beef sector” supports the agreement, while some labor unions oppose it.

See “The Proposed U.S.-South Korea Free Trade Agreement (KORUS FTA): Provisions and Implications,” Congressional Research Service, March 1, 2011.  See also “Free Trade Agreements: Impact on U.S. Trade and Implications for U.S. Trade Policy,” January 6, 2011.

***

For an in-depth look at how Globalization really works see:

Treasure Islands: Tax Havens and the Men Who Stole the World by Nicholas Shaxson

Amazon link and

What “Free Trade” Has Cost The World- globalization makes peons of us all

Joe Bageant, 1946-2011 Exceptional “redneck socialist”

March 28, 2011

Bageant Moves On

We don’t last, and there’s no warranty

Joe Bageant and Fred Reed in Ajijic, Mexico, 2008

By Fred Reed
www.fredoneverything.net

Jocotepec, Mexico — Joe lived awhile down the lake. We would visit him of an afternoon, Vi and I, and find him, a bear of a man, bearded mountain Buddha, writing on the porch of his one-room place in Ajijic. Always he wore his old fishing vest, in which I suspect he was born, and sometimes he carried a small laptop in one of its pockets. Usually we adjourned to the living room, which was also the bedroom, dining room, and salon. He would fetch bottles of local red, or make the jalapeño martinis he invented — there was a bit of mad chemist in him — and we would talk for hours of art, music, the news, politics, and people. Especially people. Sometimes he grabbed one of the guitars from the wall and sang blues, at which he was good. I guess growing up dirt poor in West Virginia puts that kind of music in you.

Joe could fool you. He talked slow and Southern, lacked pretensions, and you could talk to him for weeks without realizing how very damned smart he was.
 One day we dropped in and he said he had just found that he had cancer. It went fast. He died Saturday.

Continue reading “Bageant Moves On” »

Going Public- to see that justice is served

March 26, 2011

A news discussion on CNN  yesterday revealed the Army’s reversal of charges of dereliction of duty by superior officers  Army accused of covering up mistakes in Afghan battle evidently in the hallowed tradition of “protecting the institution” and blaming the dead……

I noted another article in The Scientist which discusses the same inclination in scientific circles:

Sometimes going public with an accusation is the only way to bring the truth to light……..the local commission investigating the case might delay, play down or even suppress incriminating evidence, perhaps going public was the only way to see that justice was served.

A South Carolina news item Ideology trumps health reports:

Dr. David Cull, a prominent vascular surgeon in Greenville, had invented a small valve system that, if it works, could spare 300,000 dialysis patients across the country enormous suffering and save U.S. taxpayers billions of dollars.

But Cull’s hometown senator, Jim DeMint, would not write a letter supporting the surgeon’s application for a federal grant under the landmark health care bill that President Barack Obama signed into law a year ago today….

DeMint vowed in 2009 to make health care Obama’s “Waterloo” and is leading Republican efforts in Congress to repeal or deny funding to the law.

All our institutions are prone to cover their butts, choose ideology over the public good and discard those who seek justice.

In effect this delays institutional ability to learn from mistakes, and it used to go on for generations. New technology and recognition of the value of “transparency” (in word if not in action) are game changers.  Recent comments by Fouad Ajami about WikiLeaks in Foreign Policy magazine  included observations that nothing particularly new was revealed, just confirmation of what people already knew but was not officially acknowledged.

The powers-that-be are certain to push back in order to censor or punish those who reveal painful truths.  But those with the courage to go public today are challenging traditions of smirking hypocrisy, institutionalized corruption, and blaming the victim. I applaud them!

–Claudia

see also: Despite Reforms, Whistleblowers at Development Banks Face Retaliation
By Charles Davis

Corporate Control? Not in These Communities

Citizens of Mt. Shasta, California have developed an ordinance to keep corporations from extracting their water.

Photo by Jill Clardy.

Can local laws have a real effect on the power of giant corporations?

by Allen D. Kanner       Feb 04, 2011          YESmagazine

Mt. Shasta, a small northern California town of 3,500 residents nestled in the foothills of magnificent Mount Shasta, is taking on corporate power through an unusual process—democracy.

The citizens of Mt. Shasta have developed an extraordinary ordinance, set to be voted on in the next special or general election, that would prohibit corporations such as Nestle and Coca-Cola from extracting water from the local aquifer. But this is only the beginning. The ordinance would also ban energy giant PG&E, and any other corporation, from regional cloud seeding, a process that disrupts weather patterns through the use of toxic chemicals such as silver iodide. More generally, it would refuse to recognize corporate personhood, explicitly place the rights of community and local government above the economic interests of multinational corporations, and recognize the rights of nature to exist, flourish, and evolve.

Mt. Shasta is not alone. Rather, it is part of a (so far) quiet municipal movement making its way across the United States in which communities are directly defying corporate rule and affirming the sovereignty of local government.

Since 1998, more than 125 municipalities have passed ordinances that explicitly put their citizens’ rights ahead of corporate interests, despite the existence of state and federal laws to the contrary. These communities have banned corporations from dumping toxic sludge, building factory farms, mining, and extracting water for bottling. Many have explicitly refused to recognize corporate personhood. Over a dozen townships in Pennsylvania, Maine, and New Hampshire have recognized the right of nature to exist and flourish (as Ecuador just did in its new national constitution). Four municipalities, including Halifax in Virginia, and Mahoney, Shrewsbury, and Packer in Pennsylvania, have passed laws imposing penalties on corporations for chemical trespass, the involuntary introduction of toxic chemicals into the human body.

When the attorney general of Pennsylvania threatened to sue Packer Township for banning sewage sludge within its boundaries, six other Pennsylvania towns adopted similar ordinances.