Archive for the 'Class' Category

A ‘Green New Deal’ can save the world’s economy, says UN

Courtesy The Independent (UK).

Top economists and United Nations leaders are working on a “Green New Deal” to create millions of jobs, revive the world economy, slash poverty and avert environmental disaster, as the financial markets plunge into their deepest crisis since the Great Depression.

The ambitious plan – the start of which will be formally launched in London next week - will call on world leaders, including the new US President, to promote a massive redirection of investment away from the speculation that has caused the bursting “financial and housing bubbles” and into job-creating programmes to restore the natural systems that underpin the world economy.

It aims to convince them that, far from restricting growth, healing the global environment will be a desperately -needed driving force behind it.

The Green Economy Initiative - which will be spearheaded by the United Nations Environment Programme (UNEP), headquartered here, and is already being backed by governments – draws its inspiration from Franklin Roosevelt’s New Deal, which ended the 1930s depression and helped set up the world economy for the unprecedented growth of the second half of the 20th century.

It, too, envisages basing recovery on providing work for the poor, as well as reform of financial practices, after a crash brought on by unregulated excesses of the free market and the banking system.

-Article Continues @ Sourced Site.

The “No BAILOUTS Act”

Courtesy Common Dreams.

There is nothing more frustrating than listening to defenders of fundamentally flawed bailout plan that House Speaker Nancy Pelosi and top Democratic and Republican leaders failed in passing Monday must be “saved” by Democrats who recognized when the House voted on Monday that this was the wrong response.

Pelosi’s plan is based on Treasury Secretary Hank Paulson’s wrongheaded scheming. Democrat leaders may have tinkered a bit with the Bush aide’s proposal, but certainly not enough to make it acceptable — let alone wisely enacted.

Oregon Congressman Peter DeFazio says, correctly, that the problem with the Democratic speaker’s bailout measure, which the House rejected by a 228-205 vote - with progressive Democrats joining fiscally conservative Republicans to say “no” - is that it “is still built on the Paulson-Bush premise.”

DeFazio, a Democratic dissenter, says that the bill Pelosi tried to get the House to back Monday demands that taxpayers take on too much of the risk which creating openings for Wall Streeters to pocket millions (perhaps billions) in federal dollars. While the Pelosi plan may put some limits on so-called golden parachutes, it still allows for what DeFazio describes as “camouflage parachutes”–hidden payouts to the corporate CEOs who created the crisis.

“We can do better,” says DeFazio. “We should start again on a new package.”

That’s exactly what the Oregon populist is doing with a new proposal, the “No BAILOUTS Act” (Bringing Accountability, Increased Liquidity, Oversight, and Upholding Taxpayer Security). Introduced Tuesday with co-sponsorship from some of the most outspoken critics of the Paulson machinations - including Ohio Democrat Marcy Kaptur, a leader of the anti-bailout movement in Congress - the measure would impose a securities tax equivalent to one quarter of one percent of profits and empower the Federal Deposit Insurance Corporation to deal more effectively with bank failures.

The plan is based on a proposal made last week by former FDIC chair William Isaac, who recalled that in the 1980s Congress enacted a “net worth certificate” program - which allowed the federal agency to shore up the capital of weak banks to give them more time to resolve their problems - and the FDIC resolved a $100 billion insolvency in savings banks for a total cost of less than $2 billion.

“It was a big success and could work in the current climate,” argued Isaac.

The chair of the FDIC during Ronald Reagan’s first term explained that that:

Article Continues @ Sourced Site.

National Protests Erupt Over Bailout Plan

Courtesy Common Dreams

NEW YORK - The George W. Bush administration’s plan to spend hundreds of billions of dollars to rescue giant Wall Street firms from their current financial meltdown has unleashed a spontaneous wave of protests across the United States.
Protesters said they want the Congress to protect millions of U.S. citizens who are on the verge of losing their homes due to bad lending practices of creditors instead of doling out public money to big investment firms responsible for ruining the economy.

“People are up in arms about this,” Matt Holland of the TrueMajority.org, an advocacy group comprising 700,000 members that played a major role in organising the protests, told IPS. “Our members are livid. They’re hitting the streets.”

According to the group, thousands of people in more than 190 cities and towns across the country took part in demonstrations against the corporate bailout bill proposed by U.S. Treasury Secretary Henry Paulson last Friday.

The four-page draft bill, which is currently under discussion on Capitol Hill, did not initially require any legal and financial measures to protect homeowners from possible foreclosures, nor did it put any limits on the salaries of the corporate executives — although legislators say that has since been amended.

On Thursday, Democratic and Republican lawmakers declared they were close to reaching a deal on a modified version of the bill, but still there was no indication if it would pass the Senate and the House.

“While many are focused on providing relief to the Wall Street, millions of homeowners are at risk of being left behind,” said Janet Murgula, president of the National Council of La Raza (NCLR), the nation’s largest Hispanic civil rights group.

To Murgula, “it is irresponsible public policy to ask taxpayers to foot the bill for a Wall Street rescue package while simultaneously denying them a sustainable response to the devastation the rising foreclosures rate is having throughout the country.”

Article Continues @ Sourced Site.

Bail-Out Blues Updated: Bailout in chaos, government seizes WaMu

Editorial Comment: In the interest of full disclosure, WaMu is this poster’s current financial institution. Remember folks, its just business, nothing personal….My Hairy postarier it ain’t Personal!!!

WASHINGTON (Reuters) - Talks on a $700 billion rescue for the U.S. financial system fell into chaos on Thursday amid accusations Republican presidential candidate John McCain scuppered the deal, and U.S. authorities closed Washington Mutual and sold its assets in America’s biggest ever bank failure.

As negotiations over an unprecedented billion bailout plan to restore credit markets degenerated into chaos, the largest U.S. savings and loan bank was taken over by authorities and its deposits auctioned off. U.S. stock futures fell by more than 1 percent, the dollar weakened and share markets in Asia fell.

The third-largest U.S. bank JPMorgan Chase & Co said it bought the deposits of Washington Mutual Inc, which has seen its stock price virtually wiped out because of massive amounts of bad mortgages. The government said there would be no impact on WaMu’s depositors and customers. JPMorgan said it would be business as usual on Friday morning.

Had a bailout deal been reached in Congress, it may have helped the savings and loan, founded in Seattle in 1889. Efforts to find a suitor to buy WaMu faltered in recent days over concerns about whether the government would reach a deal to buy its toxic mortgages.

Earlier on Thursday, U.S. lawmakers had appeared close to a final agreement on the bailout, lifting world stock markets and sending the dollar higher. But an emergency White House meeting between Congressional leaders with U.S. President George W. Bush “devolved into a contentious shouting match,” according to a statement from the McCain campaign.

In advance of that meeting, which included the two men battling to succeed him, Democrat Barack Obama and McCain, a compromise bipartisan deal seemed imminent.

After the session, Congressional leaders said an agreement could take until the weekend or longer.

Democratic Rep. Barney Frank, who has played a key role in talks over the Bush administration proposal, said negotiations would continue on Friday, but with no sign that House Republicans would take part.

Article Continues @ Sourced Site.

*The Vanishing Republican Voter

*Reader Advisory: Written from a moderate Republican point of view. But its fun to see them begin to realize that their party is going to hell with the voters and to also watch them turn themselves into Democratic-lite.

Courtesy NYTimes.

I LIVE IN WASHINGTON, in a neighborhood that is home to lawyers, political consultants, television personalities and the chief executive of the TIAA-CREF pension fund. Not exactly an abode of the superrich, but the kind of neighborhood where almost nobody does her own yardwork or vacuums his own floor. Children’s birthday parties feature rented moon bounces or hired magicians. The local grocery stores offer elegant precooked dinners of salmon, duck and artichoke ravioli.

Four miles to the southeast there stretches a different Washington. More than one-third of the people live in poverty. Close to half the young children are overweight. Fewer than half the adults work. The rate of violent crime is more than 10 times that of the leafy streets of my neighborhood.

Measured by money income, Washington qualifies as one the most unequal cities in the United States. Yet these two very different halves of a single city do share at least one thing. They vote the same way: Democratic. And in this, we are not alone. As a general rule, the more unequal a place is, the more Democratic; the more equal, the more Republican. The gap between rich and poor in Washington is nearly twice as great as in strongly Republican Charlotte, N.C.; and more than twice as great as in Republican-leaning Phoenix, Fort Worth, Indianapolis and Anaheim.

My fellow conservatives and Republicans have tended not to worry very much about the widening of income inequalities. As long as there exists equality of opportunity — as long as everybody’s income is rising — who cares if some people get rich faster than others? Societies that try too hard to enforce equality deny important freedoms and inhibit wealth-creating enterprise. Individuals who worry overmuch about inequality can succumb to life-distorting envy and resentment.

All true! But something else is true, too: As America becomes more unequal, it also becomes less Republican. The trends we have dismissed are ending by devouring us.

THE TREND TO INEQUALITY is not new, and it is not confined to the United States. It has manifested itself just about everywhere in the developed world since the late 1970s, and for the same two reasons.

The first reason is the revolution in family life. Not so long ago, most households were home to two adults, one who worked and one who did not. Today fewer than half of America’s households are headed by married couples, and married women usually work. So America and other advanced countries have become increasingly divided between families earning two incomes and those getting by on one at most.

The family revolution coincided with another: a great shift from a national to a planetary division of labor. Inequality within nations is rising in large part because inequality is declining among nations. A generation ago, even a poor American was still better off than most people in China. Today the lifestyles of middle-class Chinese increasingly approximate those of middle-class Americans, while the lifestyles of upper and lower America increasingly diverge. Less-skilled Americans now face hundreds of millions of new wage competitors, while highly skilled Americans can sell their services in a worldwide market.

As long as all Americans were becoming better off, few cared that some Americans were becoming better off than others. But since 2000, something has changed. Incomes at the middle have ceased to rise. The mood of the country has soured. Conservatives who disregard the mood of unease may forfeit their power to defend the more open and productive American economy they did so much to build.

STEP ACROSS THE COUNTY line between Washington and suburban Fairfax County, Va., and you see the forfeiting process at work.

A third of a century ago, Fairfax had only recently evolved from farm country to bedroom community. Some rich families clustered in the village of McLean, where Robert Kennedy had his Hickory Hill estate. Otherwise, Fairfax housed middle-class families looking for inexpensive housing and excellent schools. These middle-class families voted Republican, leading the Old Dominion’s political transition away from its reactionary segregationist past to a modern business-oriented conservatism.

Article Continues @ Sourced Site.

Satellites track Mexico kidnap victims with chips

QUERETARO, Mexico (Reuters) - Affluent Mexicans, terrified of soaring kidnapping rates, are spending thousands of dollars to implant tiny transmitters under their skin so satellites can help find them tied up in a safe house or stuffed in the trunk of a car.

Kidnapping jumped almost 40 percent between 2004 and 2007 in Mexico, according to official statistics. Mexico ranks with conflict zones like Iraq and Colombia as among the worst countries for abductions.

The recent kidnapping and murder of Fernando Marti, 14, the son of a well-known businessman, sparked an outcry in a country already hardened to crime.

More people, including a growing number of middle-class Mexicans, are seeking out the tiny chip designed by Xega, a Mexican security firm whose sales jumped 13 percent this year. The company said it had more than 2,000 clients.

Detractors say the chip is little more than a gadget that serves no real security purpose.

The company injects the crystal-encased chip, the size and shape of a grain of rice, into clients’ bodies with a syringe. A transmitter in the chip then sends radio signals to a larger device carried by the client with a global positioning system in it, Xega says. A satellite can then pinpoint the location of a person in distress.

Cristina, 28, who did not want to give her last name, was implanted along with seven other members of her family last year as a “preventive measure.”

“It’s not like we are wealthy people, but they’ll kidnap you for a watch. … Everyone is living in fear,” she said.

Article Continues @ Sourced Site.

The rise of the superclass

Courtesy Salon:

March 14, 2008 | In the first chapter of David Rothkopf’s “Superclass: The Global Power Elite and the World They Are Making,” the author quotes Mark Malloch Brown, a British minister of state and former deputy secretary-general of the United Nations, recalling what it was like to walk with his wife through a reception in New York for the World Economic Forum. The WEF puts on the famous annual meeting of business leaders, political figures, NGO heads, scientists and other movers and shakers, nicknamed after the small Swiss alpine town where it takes place, Davos. After crossing the room and shaking countless manicured hands in the process, the couple turned to each other and marveled that “we walk though the Davos party and know more people than when we’re walking across the village green in the town we live in.”

Brown is far from the only one who could tell such a tale. “Davos man” is an epithet coined by the conservative scholar Samuel Huntington to describe the very specific type that attends the conference. These are people who, as Huntington wrote, “have little need for national loyalty, view national boundaries as obstacles that thankfully are vanishing, and see national governments as residues from the past whose only useful function is to facilitate the elite’s global operations.”

Not everyone Rothkopf writes about in “Superclass” is a Davos man, but despite his efforts to remain impartial toward “the global power elite” he describes, you can tell that the elect milieu of the WEF gives him a palpable thrill. The book opens with a scene of the author making his way through the town’s frozen streets, recognizing CEOs, oil company executives and Harvard professors on his way to a fondue restaurant. Suddenly, he’s greeted effusively by a bestselling inspirational writer with whom he has been trading e-mail: Paulo Coelho, “an icon of the global literary scene”! (The literary scene? I don’t think so, though Coelho certainly is a publishing phenomenon.)

Rothkopf’s credible, if not especially original argument in “Superclass” is that over the past several decades a “global elite” has emerged whose connections to each other have become more significant than their ties to their home nations and governments. They schmooze regularly at conferences like Davos, go to the same schools, serve together on corporate and nonprofit boards, and above all do business with each other constantly — to the point that they have become a kind of culture in themselves, a “class without a country,” as Rothkopf puts it. Furthermore, these people are “the new leadership class for our era.”

A former undersecretary of commerce in the Clinton administration and an officer in an assortment of “advisory” firms (including Kissinger Associates, run by former Secretary of State Henry Kissinger, and the consulting company Rothkopf himself founded, Garten Rothkopf), Rothkopf is an insider of sorts, well enough connected to sit in on meetings of power brokers without quite being one himself. He also writes Op-Eds on international affairs for major newspapers and is a visiting scholar at the Carnegie Endowment for International Peace, positions that require the display of some critical distance. “Superclass” isn’t as condemnatory as Naomi Klein’s anti-globalization manifesto “No Logo,” let alone the conspiracy theorizing of “The Iron Triangle,” Dan Briody’s exposé of the Carlyle Group, but it doesn’t merely fawn over its subjects, either.

Article with links Continues @ Sourced Site.




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