Posted by rogerhollander in Barack Obama, Criminal Justice, Economic Crisis.
Tags: bank of america, banksters, derivitives, Economic Crisis, eric holder, glen ford, godman sachs, housing bubble, J.P. Morgan, jamie dimon, jp morgan fine, jp morgan settlement, Morgan Stanley, obama administration, roger hollander, too big to fail, Wall Street, Wells Fargo
Roger’s note: Black Agenda Report’s Glen Ford is one of the most incisive journalists on the Internet. Unlike the legions of mind/ethics challenged Obamabots, who for reasons of race or party loyalty are willfully blind to the Obama Administrations Wall Street/Military-Industrial Complex agenda, Black Agenda Report does not hesitate to speak the truth about the first Afro-American Emperor’s mythical new clothes.
Going on five years into the Obama regime, it is clear that Wall Street is immune from prosecution, no matter the savagery of the economic crime. Attorney General Eric Holder “has ruthlessly maneuvered every case against the oligarchs into his own jurisdictional arena, in order to protect the banksters from aggressive prosecution.” JP Morgan’s Jamie Dimon is a far bigger bandit than Lucky Luciano.
Obama and Holder Let Gangsters Pay Fine, Continue Business As Usual
by BAR executive editor Glen Ford
“The Obama administration has assessed a total of $28 billion in penalties against the Dimon mob, with no discernible effect.”
Imagine if Charles “Lucky” Luciano and his “Commission” representing the five reigning New York Mafia families plus the Chicago mob had been immune from law enforcement meddling in their activities, from the establishment of the “Syndicate” in 1931 to the present day. By now, Luciano’s gangster heirs would be the unchallenged rulers of economic and political life in the United States and, by imperial extension, the entire capitalist world.
JP Morgan chief executive Jamie Dimon is the man Lucky Luciano dreamed of becoming. A friend and golfing partner of President Obama, Dimon sits at the top of the ruling financial pyramid whose “commissioners” include the heads of Bank of America, CitiGroup, Wells Fargo, Goldman Sachs and Morgan Stanley. Their syndicate owns the cops, prosecutors, judges and major political parties and is, therefore, immune from criminal prosecution: the true “Untouchables,” too big to jail. So big, it will require a revolution to dislodge them from hegemonic power.
The latest Obama administration “settlement” of JP Morgan’s ongoing criminal enterprise amounts to a $13 billion fine, a mere speed bump in the unbroken spree of lawlessness that “helped create a financial storm that devastated millions of Americans,” in the words of Associate Attorney General Tony West. Although it is “the largest penalty in history,” Dimon and his fellow banksters are also the richest criminals in history – the most powerful cartel of all time – who can easily afford the levy. The bursting of their housing securities bubble may have wrecked much of the global economy in 2008, but Dimon and his boys made out like pure bandits in the aftermath, consolidating their positions at the center of a dying system. JP Morgan emerged as the biggest U.S. bank in terms of assets, a gleaming tower standing amid the ruins it created. Such is the logic of late stage finance capitalism: catastrophe becomes “creative destruction,” which begets greater economic monopoly, resulting in unchallengeable political supremacy, which makes Dimon too big to jail, whether he’s actually a friend of Obama, or not.
“Dimon and his fellow banksters can easily afford the levy.”
There is no reason whatsoever to believe that the $13 billion fine will have any measurable impact on JP Morgan’s business plan. So far, the Obama administration has assessed a total of $28 billion in penalties against the Dimon mob, with no discernible effect. This time around, however, Obama’s prosecutors have imposed the equivalent of mandatory community service on the corporate malefactor, as an alternative to actual justice. Part of the $4 billion set aside to help struggling homeowners will go towards knocking down abandoned or foreclosed homes in the urban neighborhoods laid waste by JP Morgan and its cohorts in the racially-targeted subprime mortgage frenzy. That’s like compelling the Mafia to do upkeep on the cemeteries where its victims are buried, in lieu of prison terms or execution.
Yet, Justice Department mouthpiece Tony West claims the eyesore clearance penalty will “rectify” some of the harm done to “areas hardest hit by the financial crisis.” But, of course, it doesn’t even come close. Whole communities have been wounded beyond repair. Black wealth took its deepest dive in history, with reverberations that will impact future generations. Many thousands of people have died from the social trauma inflicted by Jamie Dimon and his syndicate – and that’s just in the United States. Globally, millions have perished due to the actions for which the settlement is supposed to atone.
Back in the Spring, the Huffington Post noted that Attorney General Eric Holder was attempting to retract his famous admission that banks like JP Morgan are too big to jail. Holder’s original statement, in March, was:
“I am concerned that the size of some of these institutions becomes so large that it does become difficult for us to prosecute them when we are hit with indications that if you do prosecute, if you do bring a criminal charge, it will have a negative impact on the national economy, perhaps even the world economy. And I think that is a function of the fact that some of these institutions have become too large.”
Two months later, in May, Holder amended his remarks, to say:
“Let me make something real clear right away. I made a statement I guess in a Senate hearing that I think has been misconstrued. I said it was difficult at times to bring cases against large financial institutions because [of] the potential consequences that they would have on the financial system. But let me make it very clear that there is no bank, there’s no institution, there’s no individual who cannot be investigated and prosecuted by the United States Department of Justice…. Let me be very, very, very clear. Banks are not too big to jail. If we find a bank or a financial institution that has done something wrong, if we can prove it beyond a reasonable doubt, those cases will be brought.”
Clearly, Holder was lying, second time around. If there were ever a serial financial gangster, it’s Dimon. There are no better candidates for racketeering prosecution on the face of the Earth than the Big Six banks and their executives: the pinnacle of the ruling class.
“Globally, millions have perished due to the actions for which the settlement is supposed to atone.”
However, it is wrong to deride Holder and Obama as merely timid in the face of Wall Street’s awesomely destructive power. Rather, they are instruments of finance capital’s hegemony. Holder has ruthlessly maneuvered every case against the oligarchs into his own jurisdictional arena, in order to protect the banksters from aggressive prosecution by wayward state officials. Holder’s “settlements” are designed to insulate the banks from the rule of law, since, at this stage of systemic decay, the Lords of Capital can no longer function within existing legal constraints. The public sphere must be privatized; the urban centers, like Detroit, must be disenfranchised; the financial cartel must be allowed to absorb an ever greater proportion of the real economy into its derivatives casino; wealth must flow from the bottom to the top, without pause; and a planetary corporate code must be established through “free trade” treaties that supersede the sovereign laws of nations. All of the Obama administration’s marching orders flow from these imperatives.
Obama and Holder are guardians of the emerging new order, which does not yet have a legal code – and may well prefer to forgo such niceties, entirely. In the meantime, corporate Democrats and Republicans will give lip service to the law while the Mafia of Money runs the show.
And, you can take that to the bank.
BAR executive editor Glen Ford can be contacted at Glen.Ford@BlackAgendaReport.com.
Posted by rogerhollander in Economic Crisis, Labor.
Tags: Black Friday, Business News, capitalism, food banks, LA Walmart Strike, labor, labour, minimum wage, Our Walmart, poverty, poverty wages, retail workers, roger hollander, wage slavery, wal-mart, Walmart Arrests, Walmart Chinatown, Walmart Civil Disobedience, Walmart LA Protest, Walmart Los Angeles, Walmart Protest, Walmart Protesters Arrested, Walmart Protests, walmart strike, Walmart Wages, workers rights
Roger’s note: welcome to wage slavery in capitalist America, the land of freedom. Freedom to vote. Freedom to watch your children starve.
Surrounded by about 100 police officers in riot gear and a helicopter circling above, more than 50 Walmart workers and supporters were arrested in downtown Los Angeles Thursday night as they sat in the street protesting what they called the retailer’s “poverty wages.”
Organizers said it was the largest single act of civil disobedience in Walmart’s 50-year history. The 54 arrestees, with about 500 protesting Walmart workers, clergy and supporters, demonstrated outside LA’s Chinatown Walmart. Those who refused police orders to clear the street after their permit expired were arrested without incident. Those who fail to post $5,000 bail would be jailed overnight, Detective Gus Villanueva, a Los Angeles Police Department spokesman, told The Huffington Post.
Their primary demand to Walmart: pay every full-time worker at least $25,000 a year.
One of the protesting Walmart workers, Anthony Goytia, a 31-year-old father of two, said he believes he will make about $12,000 this year. It’s a daily struggle, he said, “to make sure my family doesn’t go hungry.”
“The power went out at my house yesterday because I couldn’t afford the bill,” Goytia told HuffPost. “I had to run around and get two payday loans to pay for my rent from the first” of the month. “Yesterday we went to a food bank.”
To make ends meet, Goytia said he sometimes participates in clinical trials and sells his blood plasma. He has been asking his managers for full-time employment for a year and a half. Instead, he said, they hire temporary workers, who can be fired at any time.
Goytia was one of several dozen Walmart workers in Southern California who went on strike Wednesday and Thursday, calling for an end to low wages, unpredictable part-time hours and retaliation for speaking out. They were joined by other employees on their days off and dozens more who rode buses from Northern California.
The strike, protest and arrests are the latest in a series of worker actions across the country coordinated by OUR Walmart, an advocacy organization with ties to the United Food and Commercial Workers Union. The strike and protest in Los Angeles this week are the first in what organizers said would be a series of protests leading into the holiday shopping season.
The protesters said Walmart can afford to pay every worker at least $25,000 a year — pointing to Walmart’s $17 billion profit from the latest year and the founding Walton family’s fortune, which equals the wealth of the bottom 42 percent of American families.
Walmart CEO Bill Simon disclosed in a presentation recently that 475,000 Walmart workers are paid more than $25,000 a year. That leaves 525,000 to 825,000 Walmart workers earning less than $25,000. House Democrats seeking to boost the federal minimum wage from $7.25 to $10.10 per hour have criticized Walmart for its low wages.
Walmart invited HuffPost to speak to a couple associates working in the Chinatown store during the protest Thursday. In the presence of a consultant working for Walmart, two employees — Do Nguyen, 29, and Aldo Hernandez, 55 — said that they are treated well at Walmart. Nguyen, who has worked for Walmart for almost a year, said that asking for a minimum of $25,000 is “a national issue, not a Walmart issue.”
Hernandez, who has worked for Walmart for almost five years, said he gets good health benefits through Walmart and doesn’t struggle to support himself and his son. Both Nguyen and Hernandez declined to say how much they make.
Kory Lundberg, a spokesman for Walmart, said that the company has hundreds of thousands of associates who earn $25,000 or more and that others have the opportunity to do so.
“There are unparalleled opportunities at Walmart,” Lundberg said. “We’re going to be promoting 160,000 associates this year. That’s larger than the total workforce of most companies out there.”
“Folks can come in as entry level or whatever level they’re at and can work up as far as they’re willing to go,” Lundberg said. “That’s one of the things we’re proudest of.”
After working full time at Walmart in Paramount, Calif., for 10 years, Martha Sellers, 55, makes $25,400 a year. In the last few years, she said, her managers have been cutting her weekly hours, sometimes to as few as 12 hours a week.
With that income, she said, she has to pay her rent in pieces. “If I pay all my rent at one time, then I have $12 to live on and put gas in my car until I get paid again,” Sellers, who attended Thursday’s protest, said.
“I have a very nice neighbor who lends me money. But then the next month, I’m short again,” Sellers said. “I never get caught up.”
LA’s Chinatown Walmart, about one-fifth the size of the company’s regular stores, opened in September despite thousands of Angelenos protesting it during the summer. It is the retailer’s first store in central LA.
In October 2012, for the first time in Walmart’s history, some workers went on a one-day strike, even though Walmart jobs have never been protected by a labor union. More than 70 LA Walmart workers from nine stores walked off the job, followed by over 80 Walmart workers walking off the job in a dozen other U.S. cities.
Last year, through online organizing, OUR Walmart coordinated strikes on Thanksgiving and Black Friday in 46 states and 100 stores. The actions put a spotlight on the world’s largest retailer during one of the biggest shopping periods of the year. Walmart had its best Black Friday ever, according to the company.
Regarding associates being required to work earlier on Thanksgiving, Lundberg said, “Folks understand that when they come to work for Walmart, that we’re a 24-hour store, and Thanksgiving is one of those days that we serve our customers.”
Sellers went on strike on Black Friday last year and said she plans to do so again this year. “Walmart claims to be a family-oriented company,” she said. “But where’s the family time? They took away Easter too.
“Where is the American economy going if we’re all working poverty wages?,” Sellers said. “There will be no working class. We’ll all be in a poverty class.”
Posted by rogerhollander in Economic Crisis, Latin America, Venezuela.
Tags: Economic Crisis, Latin America, mark weisbrot, poverty, roger hollander, Venezuela, venezuela economy, venezuela inflation, venezuela poverty
Roger’s note: As a fact checking exercise I went to the web site of the World Bank cited at the end of this article. On its page for Venezuela I was unable to find data to confirm the statement that poverty has dropped by 20% in the past year. What I did find was a chart that showed that poverty as a percentage of population dropped to 25.4% in 2012 from 31.6% in 2011, which does mean a drop of 6.2%, which indeed is approximately a 20% drop for the previous year. This is the World Bank, folks, you can’t go wrong.
Women queue to buy toilet paper at a supermarket in Caracas as a result of the shortage of basic goods. (Photograph: Reuters/Jorge Silva)
For more than a decade people opposed to the government of Venezuela have argued that its economy would implode. Like communists in the 1930s rooting for the final crisis of capitalism, they saw economic collapse just around the corner. How frustrating it has been for them to witness only two recessions: one directly caused by the opposition’s oil strike (December 2002-May 2003) and one brought on by the world recession (2009 and the first half of 2010). However, the government got control of the national oil company in 2003, and the whole decade’s economic performance turned out quite well, with average annual growth of real income per person of 2.7% and poverty reduced by over half, and large gains for the majority in employment, access to health care, pensions and education.
Now Venezuela is facing economic problems that are warming the cockles of the haters’ hearts. We see the bad news every day: consumer prices up 49% over the last year; a black market where the dollar fetches seven times the official rate; shortages of consumer goods from milk to toilet paper; the economy slowing; central bank reserves falling. Will those who cried wolf for so long finally see their dreams come true?
Not likely. In the opposition’s analysis Venezuela is caught in an inflation-devaluation spiral, where rising prices domestically undermine confidence in the economy and currency, causing capital flight and driving up the black market price of the dollar. This adds to inflation, as does – in their theory – money creation by the government. And its price controls, nationalisations and other interventions have caused more structural problems. Hyperinflation, rising foreign debt and a balance-of-payments crisis will mark the end of this economic experiment.
But how can a government with more than $90bn in oil revenue end up with a balance-of-payments crisis? Well, the answer is: it can’t, and won’t. In 2012 Venezuela had $93.6bn in oil revenues, and total imports in the economy were $59.3bn. The current account was in surplus to the tune of $11bn, or 2.9% of GDP. Interest payments on the public foreign debt, the most important measure of public indebtedness, were just $3.7bn. This government is not going to run out of dollars. The Bank of America’s analysis of Venezuela last month recognised this, and decided as a result that Venezuelan government bonds were a good buy.
The central bank currently holds $21.7bn in reserves, and opposition economists estimate that there is another $15bn held by other government agencies, for a total of $36.7bn. Normally, reserves that can cover three months of imports are considered sufficient; Venezuela has enough to cover at least eight months, and possibly more. And it has the capacity to borrow more internationally.
One problem is that most of the central bank’s reserves are in gold. But gold can be sold, even if it is much less liquid than assets such as US treasury securities. It seems far-fetched that the government would suffer through a balance-of-payments crisis rather than sell its gold.
Hyperinflation is also a very remote possibility. For the first two years of the economic recovery that began in June 2010, inflation was falling even as economic growth accelerated to 5.7% for 2012. In the first quarter of 2012, it reached a monthly low of just 2.9%. This shows that the Venezuelan economy – despite its problems – is very capable of providing healthy growth even while bringing down inflation.
What really drove inflation up, beginning a year ago, was a cut in the supply of dollars to the foreign exchange market. These were reduced by half in October of 2012 and practically eliminated in February. This meant more importers had to purchase increasingly expensive dollars on the black market. This is where the burst of inflation came from.
Inflation peaked at a monthly rate of 6.2% in May, then fell steadily to 3% in August as the government began to provide more dollars to the market. It jumped to 4.4% monthly in September, but the government has since increased its auctions of dollars and announced a planned increase of food and other imports, which is likely to put some downward pressure on prices.
Of course Venezuela is facing serious economic problems. But they are not the kind suffered by Greece or Spain, trapped in an arrangement in which macroeconomic policy is determined by people who have objectives that conflict with the country’s economic recovery. Venezuela has sufficient reserves and foreign exchange earnings to do whatever it wants, including driving down the black market value of the dollar and eliminating most shortages. These are problems that can be resolved relatively quickly with policy changes. Venezuela – like most economies in the world – also has long-term structural problems such as overdependence on oil, inadequate infrastructure, and limited administrative capacity. But these are not the cause of its current predicament.
Meanwhile, the poverty rate dropped by 20% in Venezuela last year – almost certainly the largest decline in poverty in the Americas for 2012, and one of the largest – if not the largest – in the world. The numbers are available on the website of the World Bank, but almost no journalists have made the arduous journey through cyberspace to find and report them. Ask them why they missed it.
© 2013 Guardian News and Media
Posted by rogerhollander in Democracy, Economic Crisis, Imperialism.
Tags: american fascism, chris hedges, christian fascism, Christian Right, default, democracy, john boehner, jon quelly, obamacare, paul krugman, Republican Party, right win, roger hollander, tea party, ted cruz
Republican senator from Texas, Ted Cruz. (Photo: AP)
“All of this was predictable.”
In the midst of the ongoing government shutdown—with the GOP still trying their darndest to kill Obamacare and the global financial markets now truly jittery over the quite real possibility of a US default—those five words, found in Paul Krugman’s Monday New York Times column, don’t say it all, but they begin to tell a story long in the making.
If the current situation in Washington is a consternation to many observers, why so predictable to progressives and others like Krugman? He writes:
It has been obvious for years that the modern Republican Party is no longer capable of thinking seriously about policy. Whether the issue is climate change or inflation, party members believe what they want to believe, and any contrary evidence is dismissed as a hoax, the product of vast liberal conspiracies.
For a while the party was able to compartmentalize, to remain savvy and realistic about politics even as it rejected objectivity everywhere else. But this wasn’t sustainable. Sooner or later, the party’s attitude toward policy — we listen only to people who tell us what we want to hear, and attack the bearers of uncomfortable news — was bound to infect political strategy, too.
In short, when an individual—or a political party—commits to a world view fundamentally insulated from reality, it is only a matter of time before the wheels will come off the rails. Like a pathological liar, the truth finally catches up. For a gambling addict, the house will ultimately call the game.
Over the weekend, the takeaway news was that Speaker of the House Rep. John Boehner (R-OH) was either “lying” or “incompetent” when he claimed on a Sunday talk show that he didn’t have the votes to pass a “clean CR” (continuing resolution) that would end the shutdown by funding the government without GOP riders or demands. The problem, of course—as many reporters and observers documented—was that it just wasn’t factually true.
As The Hill reports:
Democrats have repeatedly called on Boehner to allow a vote on a so-called “clean” Senate bill that would reopen the government for a short period of time, but not include Republican demands to delay or defund ObamaCare.
A whip count by The Washington Post found that 20 Republican representatives supported a so-called clean continuing resolution (CR), with another four counted as “leaning yes.” If all 200 Democrats voted for the legislation, they would need just 17 Republicans to vote with them.
Boehner made the comment during an interview on ABC’s “This Week,” after host George Stephanopoulos asked him if he was “prepared to schedule a clean bill on government funding.”
When Stephanopoulos pressed Boehner on whether it was true that the votes did not exist, the Speaker said that the American people expected leaders in Washington to “sit down and have a conversation.”
So what’s at stake? According to Bloomberg on Monday, a voluntary default by the U.S. on its debt obligations would be “catastrophic” and lead to worse consequences than when the collapse of Lehman Brothers helped facilitate the financial crisis that swept the globe in 2008. The business paper reports:
Failure by the world’s largest borrower to pay its debt — unprecedented in modern history — will devastate stock markets from Brazil to Zurich, halt a $5 trillion lending mechanism for investors who rely on Treasuries, blow up borrowing costs for billions of people and companies, ravage the dollar and throw the U.S. and world economies into a recession that probably would become a depression. Among the dozens of money managers, economists, bankers, traders and former government officials interviewed for this story, few view a U.S. default as anything but a financial apocalypse.
The $12 trillion of outstanding government debt is 23 times the $517 billion Lehman owed when it filed for bankruptcy on Sept. 15, 2008. As politicians butt heads over raising the debt ceiling, executives from Berkshire Hathaway Inc.’s Warren Buffett to Goldman Sachs Group Inc.’s Lloyd C. Blankfein have warned that going over the edge would be catastrophic.
If nothing else, that’s a view of how the global capitalists see the situation. But what it also reveals is confirmation of the argument presented by many that the modern day Republican Party has become hostage to its most radical and destructive elements. Once beholden to serve the leaders of global capitalism, the new Republican Party, dominated by the branding and rhetoric of the Tea Party, has seemingly lost its ability to even know what that is.
Chris Hedges, a freelance journalist and author of the American Fascists: The Christian Right and the War on America, writes on Monday, the rise in prominence of Sen. Ted Cruz of Texas is the best example of how the ‘Christian right’ and its “anti-Enlightenment” word view has taken over the party and in its lust for power, sabotaged the country’s ability to govern itself. On the ideology of Cruz and his followers, which he terms ‘American fascism,’ Hedges writes:
They live in a binary world of black and white. They feel they are victims, surrounded by sinister groups bent on their destruction. They have anointed themselves as agents of God who alone know God’s will. They sanctify their rage. This rage lies at the center of the ideology. It leaves them sputtering inanities about Barack Obama, his corporate-sponsored health care reform bill, his alleged mandated suicide counseling or “death panels” for seniors under the bill, his supposed secret alliance with radical Muslims, and “creeping socialism.” They see the government bureaucracy as being controlled by “secular humanists” who want to destroy the family and make war against the purity of their belief system. They seek total cultural and political domination.
All ideological, theological and political debates with the radical Christian right are useless. It cares nothing for rational thought and discussion. Its adherents are using the space within the open society to destroy the open society itself. Our naive attempts to placate a movement bent on our destruction, to prove to it that we too have “values,” only strengthen its supposed legitimacy and increase our own weakness.
It is a mixture of this religious politics, combined with the financial self-interest of billionaires and ideologues—like “the Koch brothers, the political arm of the Heritage Foundation and others” described by Krugman—that fuels the current crisis. And though many step back and call the whole thing “political theater,” the final act has yet to begin.
What was “predictable,” according to Krugman, was that the GOP would ultimately end up in such a position where their aversion to facts would make them victims of reality. What is not yet clear—though predictions abound—is how the current impasse ends and what impact it will have on U.S politics leading into the 2014 election season and beyond.
With the Democratic Party also guilty in propping up a political system that fails to deliver the transformative change demanded by a world awash in war, economic inequality, and on the precipice of runaway climate change, the prospects for a new progressive era originating in Washington, DC are not only dim, but non-existent.
As Charles P. Pierce writes at Esquire on Monday morning, both parties—despite all warnings by social activists, progressives and Keynesian economists—have already agreed on austerity as a cure for the ongoing recession.
“For all the talk about how Republican extremism is finally catching up with the party,” writes Pierce, “one can argue just as well that Wall Street-friendly, deficit-hawk, DLC-onomics is finally catching up with the Democratic party.” He continues:
After all, if the shutdown ended tomorrow, the sequester would still be in place. Austerity still would be the tacitly agreed upon program for both parties, and Paul Krugman likely still would be drinking before noon. The administration’s brilliant eleventy-dimensional chess in 2010 looks more and more like a case of being too smart by half. It created a new reality in which both sides decided that what a country barely out of a devastating recession really needed was some belt-tightening and some fiscal discipline.
And Richard Eskow, from Campaign for America’s Future, writes, “The Democrats have already made too many concessions.” What’s needed, he says, is “for the people to take their government back from the extremists, before their empire collapses and takes us all down with it.”
And Eskow gets no quarrel from Hedges, who writes:
The rise of Christian fascism is aided by our complacency. The longer we fail to openly denounce and defy bankrupt liberalism, the longer we permit corporate power to plunder the nation and destroy the ecosystem, the longer we stand slack-jawed before the open gates of the city waiting meekly for the barbarians, the more we ensure their arrival.
For the moment, however, how this “impasse” ends—and what rises in its ugly wake—continues to be a guess.
This work is licensed under a Creative Commons Attribution-Share Alike 3.0 License
Posted by rogerhollander in Economic Crisis, Sports.
Tags: federal taxes, lynda woolard, nfl, nfl commissioner, nfl taxes, roger hollander, tax exempt
ROGER’S NOTE: YOU MIGHT WANT TO GET UP FROM THE COUCH AT HALF TIME ON SUNDAY TO SIGN THIS PETITION. ME, I PREFER WATCHING COLLEGE FOOTBALL, WHERE PURE AMATEURISM REIGNS (LOL).
|By Lynda Woolard
|New Orleans, Louisiana
Despite the fact that it is a $9Billion/Year industry, the National Football League (NFL) continues to enjoy status as a non-profit organization — meaning it doesn’t have to pay federal corporate taxes.
The Commissioner of the NFL, Roger Goodell, makes nearly $30 million a year — earning more than the heads of companies like Coca-Cola and Wal-Mart. Through TV deals alone, the NFL has inked nearly $30 billion with various television networks. And so often, fans like you and me are asked to foot the bill for new stadiums through our own taxes.
Yet despite being the most profitable sports league in the entire world, the NFL does not pay federal taxes.
The NFL should pay their fair share towards our economy! Just like Major League Baseball, which gave up its nonprofit status in recent years, as well as the National Basketball Association, the NFL should not be able to hide under a nonprofit status in order to avoid paying federal taxes.
The NFL has methodically worked to shift all the power to their side, leaving players, employees and PARTICULARLY THE FANS little say in what goes on with the league. We deserve a say, but do not wish to boycott our teams! Therefore, we are calling on our elected representatives to revoke the tax-exempt status we bestowed upon the league half a century ago. Please sign this petition, and let Congress know that you want them to reconsider the NFL’s tax exempt status.
Posted by rogerhollander in Economic Crisis, Barack Obama.
Tags: deregulation, Economic Crisis, roger hollander, Greg Palast, Goldman Sachs, foreclosures, Federal Reserve, Wall Street, Larry Summers, robert rubin, jon corzine, stiglitz, derivitives, the fed, sub-prime mortgage, cfma, bail out, lending club
Larry Summers: Goldman Sacked
By Greg Palast for Vice Magazine
Monday, 16 September 2013
Joseph Stiglitz couldn’t believe his ears. Here they were in the White House, with President Bill Clinton asking the chiefs of the US Treasury for guidance on the life and death of America’s economy, when the Deputy Secretary of the Treasury Larry Summers turns to his boss, Secretary Robert Rubin, and says, “What would Goldman think of that?”
Then, at another meeting, Summers said it again: What would Goldman think?
A shocked Stiglitz, then Chairman of the President’s Council of Economic Advisors, told me he’d turned to Summers, and asked if Summers thought it appropriate to decide US economic policy based on “what Goldman thought.” As opposed to say, the facts, or say, the needs of the American public, you know, all that stuff that we heard in Cabinet meetings on The West Wing.
Summers looked at Stiglitz like Stiglitz was some kind of naive fool who’d read too many civics books.
R.I.P. Larry Summers
On Sunday afternoon, facing a revolt by his own party’s senators, Obama dumped Larry as likely replacement for Ben Bernanke as Chairman of the Federal Reserve Board.
Until news came that Summers’ torch had been snuffed, I was going to write another column about Larry, the Typhoid Mary of Economics. (My first, in The Guardian, 15 years ago, warned that “Summers is, in fact, a colony of aliens sent to Earth to turn humans into a cheap source of protein.”)
But the fact that Obama even tried to shove Summers down the planet’s throat tells us more about Obama than Summers—and whom Obama works for. Hint: You aren’t one of them.
All these Cabinet discussions back in the 1990s requiring the blessing of Goldman Sachs revolved around the Rubin-Summers idea of ending regulation of the US banking system. To free the US economy, Summers argued, all you’d have to do is allow commercial banks to bet government-guaranteed savings on new “derivatives products,” let banks sell high-risk sub-prime mortgage securities and cut their reserves against losses.
What could possibly go wrong?
Stiglitz, who would go on to win the Nobel Prize in Economics, tried to tell them exactly what would go wrong. But when he tried, he was replaced and exiled.
Summers did more than ask Rubin to channel the spirit of Goldman: Summers secretly called and met with Goldman’s new CEO at the time, Jon Corzine, to plan out the planet’s financial deregulation. I’m not guessing: I have the confidential memo to Summers reminding him to call Corzine.
[For the complete story of that memo and a copy of it, read “The Confidential Memo at the Heart of the Global Financial Crisis”.]
Summers, as Treasury official, can call any banker he damn well pleases. But not secretly. And absolutely not to scheme over details of policies that could make a bank billions. And Goldman did make billions on those plans.
Example: Goldman and clients pocketed $4 billion on the collapse of “synthetic collateralized debt obligations”—flim-flam feathers sold to suckers and dimwits i.e. the bankers at RBS. (See Did Fabrice Tourre Really Create The Global Financial Crisis?)
Goldman also cashed in big on the implosion of Greece’s debt via secret derivatives trades permitted by Summers’ decriminalization of such cross-border financial gaming.
The collapse of the euro-zone and the US mortgage market caused by Bankers Gone Wild was made possible only by Treasury Secretary Summers lobbying for the Commodities Futures Modernization Act which banned regulators from controlling the 100,000% increase in derivatives assets, especially super-risky “naked” credit-default swaps.
The CMFA was the financial equivalent of a fire department banning smoke alarms.
Summers took over the Treasury’s reins from Rubin who’d left to become director of a strange new financial behemoth: The combine of Citibank with and an investment bank, Travelers. The new bank beast went bankrupt and required $50 billion in bail-out funds. (Goldman did not require any bail-out funds–but took $10 billion anyway.)
Other banks-turned-casinos followed Citi into insolvency. Most got bail-outs … and got Larry Summers–or, at least, Larry’s lips for “consulting” or for gold-plated speaking gigs.
Derivatives trader D.E. Shaw paid Summers $5 million for a couple of years of “part-time” work. This added to payments from Citigroup, Goldman and other finance houses, raising the net worth of this once penurious professor to more than $31 million.
Foreclosure fills the Golden Sacks
When Summers left Treasury in 2000, The New York Times reports that a grateful Rubin got Summers the post of President of Harvard University—from which Summers was fired. He gambled away over half a billion dollars of the university’s endowment on those crazy derivatives he’d legalized. (Given Summers’ almost pathological inability to understand finance, it was most odd that, while President of the university, he suggested that humans with vaginas aren’t very good with numbers.)
In 2009, Summers, Daddy of the Deregulation Disaster, returned to the Cabinet in triumph. Barack Obama crowned him “Economics Tsar,” allowing Summers to run the Treasury without having to be questioned by Congress in a formal confirmation hearing.
As Economics Tsar in Obama’s first term, did Summers redeem himself?
Not a chance.
In 2008, both Democrat Hillary Clinton and Republican John McCain called for using the $300 billion remaining in the “bail-out’ fund for a foreclosure-blocking program identical to the one Franklin Roosevelt had used to pull the US out of the Great Depression. But Tsar Larry would have none of it, although banks had been given $400 billion from the same fund.
Indeed, on the advice of Summers and his wee assistant, Treasury Secretary Tim Geithner, Obama spent only $7 billon of the $300 billion available to save US homeowners.
What would Goldman think?
As noted, Goldman and clients pocketed billions as a result of Obama’s abandonment of 3.9 million families whose homes were repossessed during his first term. While American homeowners were drowning, Tsar Summers torpedoed their lifeboat: a plan to prevent foreclosures by forcing banks to write-off the overcharges in predatory sub-prime mortgages. Notably, Summers’ action (and Obama’s inaction) saved Citibank billions.
Loan Shark Larry
The deregulation disaster machinery is not done with mangling Americans. While not-for-profit credit unions, lenders of last resort for working people and the poor in the US, have been under legal and political attack, a new kind of banking operation has bubbled out of the minds of the grifters looking for a way to make loan-sharking legit.
One new outfit, for example, called “Lending Club,” has figured out a way to collect fees for arranging loans charging as much as 29%. Lending Club claims it cannot and should not be regulated by the Federal Reserve or other banking police. The recent addition to its Board of Directors: Larry Summers.
If you want to know why Obama would choose such a grifter and gamer to head the Fed, you have to ask, Who picked Obama? Ten years ago, Barry Obama was a nothing, a State Senator from the South Side of Chicago.
But then, he got lucky. A local bank, Superior, was shut down by regulators for mortgage shenanigans ripping off Black folk. The bank’s Chairwoman, Penny Pritzker was so angry at regulators, she decided to eliminate them: and that required a new President.
The billionaires connected Obama to Jamie Dimon of J.P. Morgan, but most importantly to Robert Rubin, former Treasury Secretary, but most important, former CEO of Goldman Sachs and mentor of Larry Summers. Without Rubin’s blessing and overwhelming fundraising power, Obama would still be arguing over zoning on Halsted Street.
Rubin picked Obama and Obama picks whom Rubin picks for him.
Because, in the end, Obama knows he must choose a Fed chief based on the answer to one question: What would Goldman think?
Posted by rogerhollander in Criminal Justice, Economic Crisis, Food, Housing/Homelessness, Poverty.
Tags: anti-food sharing, corporate profits, economic collapse, food banks, food sharing, homeless, homeless shelters, homelessness, hunger, michael bloomberg, michael snyder, poverty, roger hollander, welfare
By: Michael Snyder,
The Economic Collapse.
What would you do if a police officer threatened to arrest you for trying to share a sandwich with a desperately hungry homeless woman that really needed it? Such a notion sounds absolutely bizarre, but this is actually happening in major cities all over the United States. More than 50 large U.S. cities have adopted “anti-camping” or “anti-food sharing” laws in recent years, and in many of these cities the police are strictly enforcing these laws. Sometimes the goal appears to be to get the homeless people to go away. Apparently the heartless politicians that are passing these laws believe that if the homeless can’t get any more free food and if they keep getting thrown into prison for “illegal camping” they will eventually decide to go somewhere else where they won’t be hassled so much. This is yet another example of how heartless our society is becoming. The middle class is being absolutely shredded and poverty is absolutely exploding, but meanwhile the hearts of many Americans are growing very cold. If this continues, what is the future of America going to look like?
An organization called Love Wins Ministries made national headlines recently when police in Raleigh, North Carolina threatened to arrest them if they distributed sausage biscuits and coffee to homeless people living in the heart of the city. Love Wins Ministries had been doing this for years, but now it is apparently illegal. The following is from someone who was actually there…
On the morning of Saturday, August, 24, Love Wins showed up at Moore Square at 9:00 a.m., just like we have done virtually every Saturday and Sunday for the last six years. We provide, without cost or obligation, hot coffee and a breakfast sandwich to anyone who wants one. We keep this promise to our community in cooperation with five different, large suburban churches that help us with manpower and funding.
On that morning three officers from Raleigh Police Department prevented us from doing our work, for the first time ever. An officer said, quite bluntly, that if we attempted to distribute food, we would be arrested.
Our partnering church brought 100 sausage biscuits and large amounts of coffee. We asked the officers for permission to disperse the biscuits to the over 70 people who had lined up, waiting to eat. They said no. I had to face those who were waiting and tell them that I could not feed them, or I would be arrested.
Does reading that upset you?
And this is not just happening in Raleigh – this is literally happening all over the country.
In Orlando, Florida laws against feeding the homeless were actually upheld in court…
Since when is it illegal to give somebody food? In Orlando FL, it has been since April 2011, when a group of activists lost a court battle against the city to overturn its 2006 laws that restrict sharing food with groups of more than 25 people. The ordinance requires those who do these “large” charitable food sharings in parks within two miles of City Hall to obtain a permit and limits each group to two permits per park for a year.
That is yet another example of how corrupt and unjust our court system has become.
The funny thing is that some of these control freak politicians actually believe that they are “helping” the homeless by passing such laws. In New York City, Mayor Bloomberg has banned citizens from donating food directly to homeless shelters and he is actually convinced that it was the right thing to do for the homeless…
Mayor Michael Bloomberg’s food police have struck again!
Outlawed are food donations to homeless shelters because the city can’t assess their salt, fat and fiber content, reports CBS 2’s Marcia Kramer.
Glenn Richter arrived at a West Side synagogue on Monday to collect surplus bagels — fresh nutritious bagels — to donate to the poor. However, under a new edict from Bloomberg’s food police he can no longer donate the food to city homeless shelters.
Do you really think that the homeless care about the “salt, fat and fiber content” of their food?
Of course not.
They just want to eat.
It would be one thing if there were just a few isolated cities around the nation that were passing these kinds of laws. Unfortunately, that is not the case. In fact, according to USA Today, more than 50 large cities have passed such laws…
Atlanta, Phoenix, San Diego, Los Angeles, Miami, Oklahoma City and more than 50 other cities have previously adopted some kind of anti-camping or anti-food-sharing laws, according to the National Law Center on Homelessness & Poverty.
You can find many more examples of this phenomenon in one of my previous articles.
What in the world is happening to America?
The way that we treat the most vulnerable members of our society says a lot about who we are as a nation.
Sadly, it is not just our politicians that are becoming heartless. Below, I have posted a copy of a letter that was sent to a family with a severely autistic child. This happened up in Canada, but I think that it is a perfect example of how cold and heartless society is becoming…
Can you believe that?
Hearts are growing cold at the same time that the need for love and compassion in our society is growing.
As I proved the other day, there has not been any economic recovery for most Americans, and a recent CNBC article echoed those sentiments…
How strong the economic recovery has been since the Great Recession ended in 2009 probably depends on viewpoint.
For those in the top 5 percent, the recovery has been pretty good.
As for the other 95 percent, well … maybe not so much.
Even though corporate profits have soared to record levels in recent years and Wall Street has boomed thanks to Federal Reserve money printing, most Americans are still really struggling. The following very startling chart comes via Jim Quinn’s Burning Platform blog…
The mainstream media continually insists that we are in an “economic recovery” and that the economy “is growing”, but median household income is actually 4.4 percent lower than it was when the last recession officially “ended”.
There aren’t nearly enough jobs for everyone anymore, and the quality of the jobs that do exist continues to decline at a frightening pace.
As a result, more Americans are being forced to turn to the government for help than ever before. At this point, more than 100 million Americans are on welfare, and that does not even count programs such as Medicare or Social Security.
But nobody should ever look down on those that are getting government assistance.
The truth is that you might be next.
In fact, according to the Associated Press, four out of every five adults in the United States will “struggle with joblessness, near poverty or reliance on welfare for at least parts of their lives”.
So don’t ever be afraid to feed the homeless or to assist someone in need.
Someday you might be the one that needs the help.
- The Economic Collapse
- Image Credit
Read more http://www.trueactivist.com/it-is-illegal-to-feed-the-homeless-in-cities-all-over-the-united-states/
Posted by rogerhollander in Barack Obama, Economic Crisis, Labor.
Tags: amazon workers, corporate tax, Free Trade, glen ford, job creation, middle class, minimum wage, Obama, reaganomics, roger hollander, tax cuts, trickle down
A Black Agenda Radio commentary by BAR executive editor Glen Ford
“There is no jobs creation plan, only a series of corporate tax giveaway programs.”
President Obama went to a low wage warehouse in Chattanooga in the right-to-work state of Tennessee to renew his offer to massively lower corporate tax rates – from 35 to 28 percent – and had the nerve to call it a Grand Bargain for the middle class. Surrounding the president were employees who do backbreaking work for $11 or $12 an hour – and can by no stretch of imagination be considered middle class. Obama praised their cutthroat Amazon corporation bosses as the sort of benign masters that he’s depending on to bring the country back to economic health – once they’ve been properly incentivized with lower tax rates, on the one hand, and outright public subsidies, on the other. Amazon is only invested in Tennessee because the state has given the corporation huge tax breaks that will allow it to undercut other book sellers, forcing them out of business and their workers into unemployment. Amazon’s 7,000 new, low wage jobs come at the cost of lay-offs and bankruptcies among its competitors. It’s the Wal-Mart business model, which is quite popular at the White House.
The Obamas have a special place in their hearts for corporations of all kinds, as long as they’re big. The president told the Amazon warehouse workers, whose jobs are not very good, that he wants to create good jobs in other industries through renewable energy and electric cars and cheap natural gas – that is, “fracking.” Of course, by that he means providing additional government subsidies and tax breaks to corporations. Good jobs, presumably, will trickle down. Obama urged Congress to pass his Fix-It-First program to rebuild bridges and other public infrastructure, while blaming the Republicans for gutting government through “sequester” of spending. But it was Obama who proposed the sequestration disaster in the first place, as part of his earlier Grand Bargain with the GOP, in 2011.
“Good jobs, presumably, will trickle down.”
Obama used the Chattanooga visit to re-pitch much of his last State of the Union Address, in which he pledged to work for a public private partnership to upgrade the privately-owned U.S. infrastructure, such as energy grids and ports. That’s a euphemism for spending billions in public monies to subsidize private, profit making corporations. Obama calls that a jobs program.
He also thinks workers should be appreciative of the Free Trade deals whose proliferation has coincided with the destruction of the U.S. manufacturing base and the loss of millions of jobs that really were “good.” Obama promised to call a meeting of the CEOs of the same corporations that sent the jobs overseas, to ask them to do more for the country – as if they haven’t done enough, already. He’s got another program, called Select USA, that offers tax breaks and other incentives to foreign corporations that locate facilities in the U.S. Since so many U.S. headquartered high-tech corporations, like Apple, are actually Chinese companies for purposes of employment, Obama might as well combine his various tax break programs and hand out the goodies to CEOs regardless of nationality. In fact, that’s close to the actual practice. There is no jobs creation plan, only a series of corporate tax giveaway programs.
For workers, there’s the minimum wage, now set at $7.25 an hour. Obama promised, once again, in Chattanooga, to try to raise that to $9.00. But, back in 2008, candidate Obama vowed to fight for $9.50. I guess, somewhere along the way, he lost his incentive. For Black Agenda Radio, I’m Glen Ford. On the web, go to BlackAgendaReport.com.
BAR executive editor Glen Ford can be contacted at Glen.Ford@BlackAgendaReport.com.
Posted by rogerhollander in Barack Obama, Economic Crisis.
Tags: anti-union, commerce secretary, Economic Crisis, hyatt hotel heiress, Obama, Penny Pritzke, Robert Scheer, roger hollander, sub-prime, subprime, superior bank
Roger’s note: Obama strikes again: rewarding another one the architects of the economic disaster that ruined thousands of lives. But she got him elected and the banksters and the corporate blood-sucking congress-owning community will be pleased; and that is what is important to the president.
Published on Tuesday, May 7, 2013 by TruthDig.co
The love fest between Barack Obama and his top fundraiser Penny Pritzker that has led to her being nominated as Commerce secretary would not be so unseemly if they both just confessed that they did it for the money. Her money, not his, financed his rise to the White House from less promising days back in Chicago.
President Barack Obama looks to longtime fundraiser Penny Pritzker, right, as she laughs in the Rose Garden of the White House, where he announced he would nominate Pritzker to run the Commerce Department and economic adviser Michael Froman, left, as the next U.S. Trade Representative. (Photo: AP/Carolyn Kaster)
“Without Penny Pritzker, it is unlikely that Barack Obama ever would have been elected to the United States Senate or the presidency,” according to a gushing New York Times report last year that read like the soaring jacket copy of a steamy romance novel. “When she first backed him during his 2004 Senate run, she was No. 152 on the Forbes list of the wealthiest Americans. He was a long-shot candidate who needed her support and imprimatur. Mr. Obama and Ms. Pritzker grew close, sometimes spending weekends with their families at her summer home.”
But don’t sell the lady short; she wasn’t swept along on some kind of celebrity joyride. Pritzker, the billionaire heir to part of the Hyatt Hotels fortune, has long been first off an avaricious capitalist, and if she backed Obama, it wasn’t for his looks. Never one to rest on the laurels of her immense inherited wealth, Pritzker has always wanted more. That’s what drove her to run Superior Bank into the subprime housing swamp that drowned the institution’s homeowners and depositors alike before she emerged richer than before.
Pritzker and her family had acquired the savings and loan with the help of $600 million in tax credits. She became the new bank’s chairwoman and ended up as a director of the holding company that owned it. Under her leadership, Superior specialized in subprime lending, hustling folks with meager means and poor credit into high interest loans that were bundled into the toxic securities that wrecked the U.S. economy.
As federal regulators began to move in on her bank after it had dangerously inflated the value of its toxic assets, Pritzker assured its employees: “Our commitment to subprime has never been stronger.” Two months later, the bank was pronounced insolvent. At the time, the Federal Deposit Insurance Corp.‘s inspector general report concluded, “The failure of Superior Bank was directly attributable to the board of directors and executive management ignoring sound risk diversification principles, as evidenced by excessive concentration in residual assets related to subprime lending. …”
No biggie. In announcing her appointment, Obama joked, “For your birthday present, you get to go through confirmation. It’s going to be great.” It’s the same sort of joke he could have cracked in appointing Citigroup alum Jack Lew to be Treasury secretary.
It is deeply revealing that in the midst of the continuing cycle of misery brought on by the chicanery of the financial community two key Cabinet positions dealing with business practices will likely be occupied by people who specialized in those financial rip-offs.
For Pritzker, as with the confirmation of Lew, the fix is in. The Republicans don’t dare push back too hard on shady business practices that their deregulation legislation endorsed, and Democrats will go along with anything the president wants.
The same restraint will be exhibited in exploring the offshore tax havens that have protected the Pritzker family’s immense wealth. Back in 2008, when she had been rumored for this same Cabinet post, Pritzker was queried about avoiding the sort of taxes most ordinary folks are obligated to pay, and she replied in writing: “I am a beneficiary of some non-U.S. situs trusts which were established about 50 years ago (when I was a child) and are administered by a non-U.S.–based financial institution as trustee. I do not control how those assets are administered.” If the Republicans challenge that canard, the Democrats will smugly remind them of Mitt Romney’s tax havens, as if that excuses tax avoidance within their own ranks.
Certainly the Republicans will not raise questions about the anti-union practices that helped create the Hyatt fortune in the first place and continue to this day. Nor will the Democrats, who embrace unions only at national convention time.
“There is a huge unresolved set of issues in the Democratic Party between people of wealth and people who work,” noted Andy Stern, former president of the Service Employees International Union, which attempts to organize the miserably paid workers that produced Pritzker’s wealth. “Penny is a living example of that issue.”
But it’s payback time, and even normally progressive Democrats like Pritzker’s home state Sen. Dick Durbin are prepared to roll over. Treating the appointment of billionaire Pritzker as a victory for women everywhere, the senator said she’d “broken through the glass ceiling with her extraordinary intelligence and business acumen.”
Right, Pritzker will be a fine role model for those women working at the Asian factories that she’ll be touring as Commerce secretary extolling the virtues of the American business model.
© 2013 TruthDig.com