One 77-year-old’s search for the truth: 9/11, election fraud, illegal wars, Wall Street criminality, a stolen nuke, the neocon wars, control of the U.S. government by global corporations, the unjustified assault on Social Security, media complicity, and the "Great Recession" about to become the second Great Depression. "The most important truths are hidden from us by the powerful few who strive to steal the American dream by keeping We the People in the dark."
Showing posts with label reverse-Robin-Hood. Show all posts
Showing posts with label reverse-Robin-Hood. Show all posts
Yves Smith: The finance sector used extortion against the American people in 2007-09 and are doing it again now
Bio
Yves Smith has written the popular and trenchant financial blog "Naked Capitalism" since 2006. Yves has spent more than 25 years in the financial services industry and currently heads Aurora Advisors, a New York-based management consulting firm specializing in corporate finance advisory and financial services. Prior experience includes Goldman Sachs (in corporate finance), McKinsey & Co., and Sumitomo Bank (as head of mergers and acquisitions). Yves has written for publications in the United States and Australia, including The New York Times, The Christian Science Monitor, Slate, The Conference Board Review, Institutional Investor, The Daily Deal and the Australian Financial Review. Yves is a graduate of Harvard College and Harvard Business School.
U.S. Debt Default Looms as Talks Stall on Deficit Reduction: “We Are Playing with Fire”
Discussion on a deficit reduction deal has stalled after five consecutive days of negotiations between Republicans and Democrats. In order to borrow beyond August 2, the United States must raise its $14.3 trillion debt ceiling. This week, Standard & Poor’s became the second of the major credit rating agencies to place U.S. debt under review, citing an increasing risk of a payment default. Republicans are pushing for massive spending cuts, many of which Obama has agreed to, even as Democrats say they want to raise taxes on corporations and wealthy households. We speak with Jeff Madrick, director of policy research at the Schwartz Center for Economic Policy Analysis at The New School and author of "Age of Greed: The Triumph of Finance and the Decline of America, 1970 to the Present." [Original includes rush transcript]
Michael Hudson is President of The Institute for the Study of Long-Term Economic Trends (ISLET), a Wall Street Financial Analyst, Distinguished Research Professor of Economics at the University of Missouri, Kansas City and author of Super-Imperialism: The Economic Strategy of American Empire (1968 & 2003), Trade, Development and Foreign Debt (1992 & 2009) and of The Myth of Aid (1971). ISLET engages in research regarding domestic and international finance, national income and balance-sheet accounting with regard to real estate, and the economic history of the ancient Near East. Michael acts as an economic advisor to governments worldwide including Iceland, Latvia and China on finance and tax law.
Michael Hudson is President of The Institute for the Study of Long-Term Economic Trends (ISLET), a Wall Street Financial Analyst, Distinguished Research Professor of Economics at the University of Missouri, Kansas City and author of Super-Imperialism: The Economic Strategy of American Empire (1968 & 2003), Trade, Development and Foreign Debt (1992 & 2009) and of The Myth of Aid (1971). ISLET engages in research regarding domestic and international finance, national income and balance-sheet accounting with regard to real estate, and the economic history of the ancient Near East. Michael acts as an economic advisor to governments worldwide including Iceland, Latvia and China on finance and tax law.
Maddow: Mich. Gov. Snyder using new ‘Emergency Financial Managers’ law to assist corporate land grab from the poor
* Posted on 04.20.11
* By Roxanne Cooper
* Categories: Nation
Benton Harbor, MI is 10,235 population town. 85.5% of the residents are African-American. The per capita income is among the lowest in the state: $10,235.
Michigan Governor Rick Snyder recently castrated the city government of the struggling town, using his controversial “Emergency Financial Managers” law. The law, as Raw Story previously reported, allows Snyder to “take over municipalities that don’t pass a financial stress test.”
On Tuesday night, MSNBC’s Rachel Maddow made the case that Snyder, Whirlpool (global headquarters in Benton Harbor), Harbor Shores (a developer) and assorted political cronies are using the newly enacted law to grab prime beachfront property deeded to the city’s residents in 1917 in order to develop it into a Jack Nicklaus-designed golf course and luxury “signature” homes.
Watch the segment below, which originally aired on MSNBC’s Rachel Maddow Show on April 19, 2011.
Blogger’s Note: Having a Ph.D. is no big deal. It’s what one does with his/her life after exiting the educational system that counts. Michael Moore is a perfect example. With only a high school degree, he perceived the impending loss of America’s moral compass and set out to inform Americans of the danger. My first exposure to Michael’s writings was about 9 years ago when our college-educated daughter began sending me his e-mail newsletter. Céline said she wanted to go to work for him (which might have happened but for the fact that Michael was a reverse racial discriminator). Worried that Céline might have been taken in by a kook, I read all of Michael’s newsletters of the time and was swiftly impressed by the lucidity of his writings and the scientific way he gathered facts and used them to reach well reasoned conclusions. Of course, nowadays everyone recognizes Michael as producer and director of four of the top 9 documentary movies of all time – one of which, Fahrenheit 9/11, was awarded the Palme d’Or at the 2004 Cannes Film Festival!
Michael Moore: The Smug Wealthy Have Gone Too Far -- And We're Finally Fighting Back
By trying to destroy us corporate America has given birth to a movement -- a movement that is becoming a massive, nonviolent revolt across the country.
Contrary to what those in power would like you to believe so that you'll give up your pension, cut your wages, and settle for the life your great-grandparents had, America is not broke. Not by a long shot. The country is awash in wealth and cash. It's just that it's not in your hands. It has been transferred, in the greatest heist in history, from the workers and consumers to the banks and the portfolios of the uber-rich.
Today just 400 Americans have more wealth than half of all Americans combined.
Let me say that again. 400 obscenely rich people, most of whom benefited in some way from the multi-trillion dollar taxpayer "bailout" of 2008, now have more loot, stock and property than the assets of 155 million Americans combined. If you can't bring yourself to call that a financial coup d'état, then you are simply not being honest about what you know in your heart to be true.
And I can see why. For us to admit that we have let a small group of men abscond with and hoard the bulk of the wealth that runs our economy, would mean that we'd have to accept the humiliating acknowledgment that we have indeed surrendered our precious Democracy to the moneyed elite. Wall Street, the banks and the Fortune 500 now run this Republic -- and, until this past month, the rest of us have felt completely helpless, unable to find a way to do anything about it.
I have nothing more than a high school degree. But back when I was in school, every student had to take one semester of economics in order to graduate. And here's what I learned: Money doesn't grow on trees. It grows when we make things. It grows when we have good jobs with good wages that we use to buy the things we need and thus create more jobs. It grows when we provide an outstanding educational system that then grows a new generation of inventers, entrepreneurs, artists, scientists and thinkers who come up with the next great idea for the planet. And that new idea creates new jobs and that creates revenue for the state. But if those who have the most money don't pay their fair share of taxes, the state can't function. The schools can't produce the best and the brightest who will go on to create those jobs. If the wealthy get to keep most of their money, we have seen what they will do with it: recklessly gamble it on crazy Wall Street schemes and crash our economy. The crash they created cost us millions of jobs. That too caused a reduction in revenue. And the population ended up suffering because they reduced their taxes, reduced our jobs and took wealth out of the system, removing it from circulation.
The nation is not broke, my friends. Wisconsin is not broke. It's part of the Big Lie. It's one of the three biggest lies of the decade: America/Wisconsin is broke, Iraq has WMD, the Packers can't win the Super Bowl without Brett Favre.
The truth is, there's lots of money to go around. LOTS. It's just that those in charge have diverted that wealth into a deep well that sits on their well-guarded estates. They know they have committed crimes to make this happen and they know that someday you may want to see some of that money that used to be yours. So they have bought and paid for hundreds of politicians across the country to do their bidding for them. But just in case that doesn't work, they've got their gated communities, and the luxury jet is always fully fueled, the engines running, waiting for that day they hope never comes. To help prevent that day when the people demand their country back, the wealthy have done two very smart things:
1. They control the message. By owning most of the media they have expertly convinced many Americans of few means to buy their version of the American Dream and to vote for their politicians. Their version of the Dream says that you, too, might be rich some day – this is America, where anything can happen if you just apply yourself! They have conveniently provided you with believable examples to show you how a poor boy can become a rich man, how the child of a single mother in Hawaii can become president, how a guy with a high school education can become a successful filmmaker. They will play these stories for you over and over again all day long so that the last thing you will want to do is upset the apple cart -- because you -- yes, you, too! -- might be rich/president/an Oscar-winner some day! The message is clear: keep you head down, your nose to the grindstone, don't rock the boat and be sure to vote for the party that protects the rich man that you might be some day.
2. They have created a poison pill that they know you will never want to take. It is their version of mutually assured destruction. And when they threatened to release this weapon of mass economic annihilation in September of 2008, we blinked. As the economy and the stock market went into a tailspin, and the banks were caught conducting a worldwide Ponzi scheme, Wall Street issued this threat: Either hand over trillions of dollars from the American taxpayers or we will crash this economy straight into the ground. Fork it over or it's Goodbye savings accounts. Goodbye pensions. Goodbye United States Treasury. Goodbye jobs and homes and future. It was friggin' awesome and it scared the shit out of everyone. "Here! Take our money! We don't care. We'll even print more for you! Just take it! But, please, leave our lives alone, PLEASE!"
The executives in the board rooms and hedge funds could not contain their laughter, their glee, and within three months they were writing each other huge bonus checks and marveling at how perfectly they had played a nation full of suckers. Millions lost their jobs anyway, and millions lost their homes. But there was no revolt (see #1).
Until now. On Wisconsin! Never has a Michigander been more happy to share a big, great lake with you! You have aroused the sleeping giant know as the working people of the United States of America. Right now the earth is shaking and the ground is shifting under the feet of those who are in charge. Your message has inspired people in all 50 states and that message is: WE HAVE HAD IT! We reject anyone tells us America is broke and broken. It's just the opposite! We are rich with talent and ideas and hard work and, yes, love. Love and compassion toward those who have, through no fault of their own, ended up as the least among us. But they still crave what we all crave: Our country back! Our democracy back! Our good name back! The United States of America. NOT the Corporate States of America. The United States of America!
So how do we get this? Well, we do it with a little bit of Egypt here, a little bit of Madison there. And let us pause for a moment and remember that it was a poor man with a fruit stand in Tunisia who gave his life so that the world might focus its attention on how a government run by billionaires for billionaires is an affront to freedom and morality and humanity.
Thank you, Wisconsin. You have made people realize this was our last best chance to grab the final thread of what was left of who we are as Americans. For three weeks you have stood in the cold, slept on the floor, skipped out of town to Illinois -- whatever it took, you have done it, and one thing is for certain: Madison is only the beginning. The smug rich have overplayed their hand. They couldn't have just been content with the money they raided from the treasury. They couldn't be satiated by simply removing millions of jobs and shipping them overseas to exploit the poor elsewhere. No, they had to have more – something more than all the riches in the world. They had to have our soul. They had to strip us of our dignity. They had to shut us up and shut us down so that we could not even sit at a table with them and bargain about simple things like classroom size or bulletproof vests for everyone on the police force or letting a pilot just get a few extra hours sleep so he or she can do their job -- their $19,000 a year job. That's how much some rookie pilots on commuter airlines make, maybe even the rookie pilots flying people here to Madison. But he's stopped trying to get better pay. All he asks is that he doesn't have to sleep in his car between shifts at O'Hare airport. That's how despicably low we have sunk. The wealthy couldn't be content with just paying this man $19,000 a year. They wanted to take away his sleep. They wanted to demean and dehumanize him. After all, he's just another slob.
And that, my friends, is Corporate America's fatal mistake. But trying to destroy us they have given birth to a movement -- a movement that is becoming a massive, nonviolent revolt across the country. We all knew there had to be a breaking point some day, and that point is upon us. Many people in the media don't understand this. They say they were caught off guard about Egypt, never saw it coming. Now they act surprised and flummoxed about why so many hundreds of thousands have come to Madison over the last three weeks during brutal winter weather. "Why are they all standing out there in the cold? I mean there was that election in November and that was supposed to be that!
"There's something happening here, and you don't know what it is, do you ...?"
America ain't broke! The only thing that's broke is the moral compass of the rulers. And we aim to fix that compass and steer the ship ourselves from now on. Never forget, as long as that Constitution of ours still stands, it's one person, one vote, and it's the thing the rich hate most about America -- because even though they seem to hold all the money and all the cards, they begrudgingly know this one unshakeable basic fact: There are more of us than there are of them!
Madison, do not retreat. We are with you. We will win together.
On Thursday in Washington, the Financial Crisis Inquiry Commission reported it's findings. And guess what? They found blame everywhere they looked ...but they couldn't see the fraud for the sleeze.
You can download this 696-page whitewash here. Or you can watch the TELL-IT-LIKE-IT-IS video below. The Bill Black videos that Prof. Hudson refers to can be found here.
You should be angry! Very angry!!! Not only did the big banks and banksters avoid indictment for the mega-crimes that crashed the western world's economies, but they also get to walk away with between $13- and $23-TRILLION of our taxpayer money dished out to cover their gambling debts.
The American working poor and middle class have just been tacitly reduced to serfdom ...and this is BEFORE they start cutting Social Security and Medicare to "reduce the deficit" that resulted from the greatest reverse-Robin-Hood rip-off in history!!!
Just how long are we going to tolerate this, folks?
theREALnewsnetwork .
January 28, 2011
Inquiry Doesn't Call Crisis Systemic Fraud
Michael Hudson: Financial Crisis Inquiry Report fails to call for criminal prosecutions against Wall Street
Bio
Michael Hudson is President of The Institute for the Study of Long-Term Economic Trends (ISLET), a Wall Street Financial Analyst, Distinguished Research Professor of Economics at the University of Missouri, Kansas City and author of Super-Imperialism: The Economic Strategy of American Empire (1968 & 2003), Trade, Development and Foreign Debt (1992 & 2009) and of The Myth of Aid (1971). ISLET engages in research regarding domestic and international finance, national income and balance-sheet accounting with regard to real estate, and the economic history of the ancient Near East. Michael acts as an economic advisor to governments worldwide including Iceland, Latvia and China on finance and tax law.
The Social Security Trustees' Annual Report on the program's finances comes out Wednesday, delayed from March by the health bill. It will be turned into a marketing tool by advocates of cutting Social Security to reduce the national debt.
Among those, the president's newly appointed National Commission on Fiscal Reform (the "debt commission") is threatening to strangle the economic lifeblood of seniors by denying the solvency of Social Security and then using the solvent funds for other purposes.
It's an illusion that cutting Social Security would reduce the deficit. If the new report does not point out that the money seniors have given to Social Security keeps it solvent through 2043, and after that 80 percent funded, it's a propaganda fraud for defunders.
Moreover, that future shortfall is only a blip - a point missed by nearly all media. After the Baby Boomers reap their Social Security benefits, since those Boomers have had the fewest children ever (2.1 per couple vs. the current 2.7 rate), the system will return to full solvency because it will pay benefits to fewer people.
To cut a national deficit by cutting Social Security, which does not have a deficit, is theft from seniors who have paid in. If a bank told a customer, "Sorry. We've spent your money on other items," would anyone accept that or say: "Fine, you made money on my money but you still owe me mine. Pay up."
The debt commission is littered with politicians and industry CEOs who have a history of wanting to scale back Social Security benefits. House Judiciary Committee Chairman John Conyers, D-Mich., told us in an interview, "The commission is loaded with billionaires who want to convert Social Security's money to business."
Commission Co-chairman Erskine Bowles is linked to Wall Street as a Morgan Stanley board member, and Honeywell CEO David Cote to the defense industry, both of which would benefit from Social Security's money. Will these captains of industry stand up for people who need Social Security the most? Or look for ways to transfer its money to defense and stocks?
Co-chairman Alan Simpson, along with Dave Camp, Judd Gregg, Tom Coburn and Mike Crapo, made statements supporting cutting or privatizing Social Security. Sen. Richard Durbin told "bleeding-heart liberals" to be open to Social Security cuts. Alice Rivlin co-authored a 2005 report titled Restoring Fiscal Sanity that advocated $47 billion in entitlement cuts, including an "increase in the retirement age under Social Security."
Why could the administration not appoint former Connecticut Congresswoman Barbara Kennelly, president of the National Committee to Preserve Social Security? Or Al Gore, who famously said he would protect Social Security in a "lockbox"? Or expert "policy wonk" Bill Arnone, a partner at Ernst & Young, co-author of the firm's retirement planning guide, a spokesman for the positive economics of Social Security?
The program remains indispensable in enabling the 38 million senior citizens over 65 nationwide and 3 million in Florida to live their lives in dignity. Without Social Security, nearly half of Americans age 65 or older would be below the poverty line. For two-thirds of the elderly, Social Security provides the majority of their income. For one-third, it provides nearly all.
We need the courage of the late Florida Congressman Claude Pepper. In 1978, when Commerce Secretary Juanita Kreps suggesting raising the retirement age, Rep. Pepper and House Social Security Chairman James Burke ran over for a meeting, and Rep. Pepper said they would "fight it to our death." Ms. Kreps suddenly said the proposal hadn't been drawn up.
The debt commission has plenty of options. Defense Secretary Robert Gates said the military needed to cut its "gusher of defense spending." Congress could also scale back the Bush tax cuts for the wealthy to the levels they were under President Clinton and could get rid of tax breaks for U.S. corporations doing business overseas. The deficit needs to be cut, but not at the cost of our seniors.
During a 2006 speaking tour, every time President Bush spoke of his plan to privatize Social Security, his approval ratings dropped. His advocacy of cuts helped cost Republicans the Congress. While up a hair recently, the market has lost 20 percent since 2000. Voters knew that would have meant 20 percent less food on the table for seniors or money for electricity. President Obama should not let the commission make the same mistake, or this time it will cost him and his party.
Robert Weiner was chief of staff of the House Select Committee on Aging, chaired by the late U.S. Rep. Claude Pepper, and a senior public-affairs director in the White House. Jonathan Battaglia is policy analyst at Robert Weiner Associates.
This article came to my attention through the e-mail news service Truthout. I encourage anyone wanting to keep up on news that the so-called mainstream media seldom tells you, to subscribe to Truthout. It is free but depends on tax-deductible donations.
In setting up his National Commission on Fiscal Responsibility and Reform, Barack Obama is again playing coy in public, but his intentions are widely understood among Washington insiders. The president intends to offer Social Security as a sacrificial lamb to entice conservative deficit hawks into a grand bipartisan compromise in which Democrats agree to cut Social Security benefits for future retirees while Republicans accede to significant tax increases to reduce government red ink.
Obama's commission is the vehicle created to achieve this deal. He ducks questions about his preferences, saying only that "everything has to be on the table." But White House lieutenants are privately talking up a bargain along those lines. They are telling anxious liberals to trust the president to make only moderate cuts. Better to have Democrats cut Social Security, Obama advisers say, than leave the task to bloodthirsty Republicans.
The president has stacked the deck to encourage this strategy. The eighteen-member commission is top-heavy with fiscal conservatives and hostile right-wingers who yearn to dismantle the retirement program. The Republican co-chair, former Senator Alan Simpson, is especially nasty; he likes to get laughs by ridiculing wheezy old folks. Democratic co-chair Erskine Bowles and staff director Bruce Reed secretly negotiated a partial privatization of Social Security with Newt Gingrich back when they served in the Clinton White House, but the deal blew up with Clinton's sex scandal. Monica Lewinsky saved the system.
Any recommendations require fourteen votes, and Obama has at least five loyalists who will protect him—Senators Dick Durbin and Max Baucus, Representatives Jan Schakowsky and Xavier Becerra, and former SEIU president Andy Stern. On the other hand, if Obama really wants to make a deal, these commissioners will very likely support him.
The people, once again, are kept in the dark. The Obama commission will not report its recommendations until after this fall's elections—too late for voters to express objections. Both parties assume they can evade blame by holding hands and jumping together.
What's extraordinary about this assault on Social Security is that a Democratic president is leading it. Obama is arm in arm with GOP conservatives like Wall Street billionaire Pete Peterson, who for decades has demonized Social Security as a grave threat to the Republic and has spread some $12 million among economists, think tanks, foundations and assorted front groups to sell his case. If Obama pulls the deal off, this will be his version of "Nixon goes to China"—a leader proving his manhood by going against his party's convictions. Even if he fails, the president will get some protective cover on the deficit issue. After all, he is targeting Big Government's most beloved and trusted program—the New Deal's most prominent pillar.
Obama's initiative rests on two falsehoods spread by Peterson's propaganda—the notion that Social Security somehow contributes to the swollen federal deficits and that cutting benefits will address this problem. Obama and his advisers do not say this in so many words, but their rhetoric implies that Social Security is a big source of the deficit problem. Major media promote the same falsehoods. Here is what the media don't tell you: Social Security has accumulated a massive surplus—$2.5 trillion now, rising to $4.3 trillion by 2023. This vast wealth was collected over many years from workers under the Federal Insurance Contributions Act (FICA) to pay in advance for baby boom retirements. The money will cover all benefits until the 2040s—unless Congress double-crosses workers by changing the rules. This nest egg does not belong to the government; it belongs to the people who paid for it. FICA is not a tax but involuntary savings.
As a candidate, Obama assured voters that any shortfall was in the distant future and could be easily resolved with minor adjustments. As president, he has abandoned this accurate analysis and turned rightward without explaining why. He faces an awkward problem, however. Despite conservative propaganda, cutting Social Security will have no impact on the deficit problem that so stirs public anxiety. The White House knows this, and some advisers admit as much. So why is the president targeting Social Security?
Paul Volcker, former Federal Reserve chair and adviser to the president, declares, "In my view, we can deal with the Social Security problem fairly promptly." Cutting benefits, Volcker adds, "is not going to deal with the deficit problem in the short run, but it's confidence building." John Podesta of the Center for American Progress, another adviser, agrees but says, "Reforms could starkly demonstrate to skeptical debt markets that the United States is willing to take on a politically difficult fiscal issue."
In other words, targeting Social Security is a smokescreen designed to reassure foreign creditors and avoid confronting the true sources of US indebtedness. The politicians might instead address the cost of fighting two wars on borrowed money or the tax cuts for the rich and corporations or the deregulation that led to the recent financial catastrophe and destroyed vast wealth. But those and other sources of deficits involve very powerful interests. Instead of taking them on, the thinking in Washington goes, let's whack the old folks while they're not watching.
This issue is a seminal fight with the potential to scramble party politics. If Democrats can no longer be trusted to defend Social Security, who can be? The people from left to right overwhelmingly support the program (88 percent), and a majority (66 percent) believe benefits should be increased now to cope with the loss of jobs and savings in the Great Recession.
Citizens can win this fight if they mobilize smartly. We can do this by arousing public alarm right now, while members of Congress face a treacherous election and before Obama can work out his deal. Some liberal groups are discussing a "take the pledge" campaign that demands senators and representatives sign commitments to keep Hands Off Social Security Benefits. If politicians refuse to sign, put them on the target list for November. Barack Obama is standing on the third rail of politics—let's give him a warning jolt.
