August 2015 archive

On This Day In History August 28

This is your morning Open Thread. Pour a cup of your favorite morning beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

August 28 is the 240th day of the year (241st in leap years) in the Gregorian calendar. There are 125 days remaining until the end of the year.

On this day in 1963, the Reverend Martin Luther King addressed the crowds assembled on the Washington Mall from the steps at the Lincoln Memorial. His speech, “I have a Dream”, is forever embedded in history and our memories as one of the great moments in the fight for civil rights. But there were many other speakers, and in particular one great performance by the “Queen of Gospel”, Mahalia Jackson. Right before Dr. King spoke, Ms. Jackson performed “How I Got Over”.

Indeed, if Martin Luther King, Jr., had a favorite opening act, it was Mahalia Jackson, who performed by his side many times. On August 28, 1963, as she took to the podium before an audience of 250,000 to give the last musical performance before Dr. King’s speech, Dr. King himself requested that she sing the gospel classic “I’ve Been ‘Buked, and I’ve Been Scorned.” Jackson was just as familiar with Dr. King’s repertoire as he was with hers, and just as King felt comfortable telling her what to sing as the lead-in to what would prove to be the most famous speech of his life, Jackson felt comfortable telling him in what direction to take that speech.

The story that has been told since that day has Mahalia Jackson intervening at a critical junction when she decided King’s speech needed a course-correction. Recalling a theme she had heard him use in earlier speeches, Jackson said out loud to Martin Luther King, Jr., from behind the podium on the steps of the Lincoln Memorial, “Tell them about the dream, Martin.” And at that moment, as can be seen in films of the speech, Dr. King leaves his prepared notes behind to improvise the entire next section of his speech-the historic section that famously begins “And so even though we face the difficulties of today and tomorrow, I still have a dream. It is a dream deeply rooted in the American dream….”

There is no embeddable video of Ms Jackson from that day but here is the inspirational song she performed that day.

Punting the Pundits

“Punting the Pundits” is an Open Thread. It is a selection of editorials and opinions from around the news medium and the internet blogs. The intent is to provide a forum for your reactions and opinions, not just to the opinions presented, but to what ever you find important.

Thanks to ek hornbeck, click on the link and you can access all the past “Punting the Pundits”.

Follow us on Twitter @StarsHollowGzt

New York Times Editorial Board: Killings of Journalists Bring Gun Violence to Dark New Level

It is an increasingly horrific fact of life and death in the United States that easily available guns offer troubled Americans the power to act out their grievances in public. This trend, dramatized in recent years by macabre shootings in schools, churches, movie theaters and workplaces, was taken to a dark new level on Wednesday in southwestern Virginia by a disturbed former reporter who chose not only to murder two journalists as they reported live for a television station that had fired him, but also to record and broadcast the crime on social media. [..]

Many politicians will focus on the gunman’s troubled personality and try to cast this shooting as a summons for better mental health care, certainly not gun control. Yet that ignores a grim reality: the estimated 300 million guns in America owned by a third of the population, far more per capita than any other modern nation. Guns are ubiquitous and easy to acquire, as statehouse politicians, particularly Republicans, genuflect to the gun lobby to weaken, not tighten, gun safety.

We all know no change is likely, for all the social media grotesquerie. The woeful truth underlying this latest shooting is more mundane than alarming. There are too many guns, and too little national will to do anything about them.

Trevor Timm: Many police departments spy on you without oversight. This must end

Local police around the country are increasingly using high-tech mass surveillance gear that can vacuum up private information on entire neighborhoods of innocent citizens – all to capture minor alleged criminals. Even worse, many cops are trying to put themselves outside the reach of the law by purposefully hiding their spying from courts to avoid any scrutiny from judges.

Two important news reports from the last week have shed light on the disturbing practices, and new technology that’s never been previously reported. The first investigation, done by USA Today’s Brad Heath, found: “In one case after another … police in Baltimore and other cities used the phone tracker, commonly known as a stingray, to locate the perpetrators of routine street crimes and frequently concealed that fact from the suspects, their lawyers and even judges.”

Dean Baker: The Stock Market Is Not the Economy

We are seeing the usual hysteria over the sharp drop in the markets in Asia, Europe, and perhaps the US. (Wall Street seems to be rallying as I write.) There are a few items worth noting as we enjoy the panic.

First and most importantly, the stock market is not the economy. The stock market has fluctuations all the time that have nothing to do with the real economy. The most famous was the 1987 crash, which did not correspond to any real-world bad event that anyone could identify.

Even over longer periods, there is no direct correlation between the stock market and GDP. In the decade of the 1970s, the stock market lost more than 40 percent of its value in real terms; in the decade of the 1980s it more than doubled. GDP growth averaged 3.3 percent from 1980 to 1990, compared to 3.2 percent from 1970 to 1980.

Amanda Marcotte: Why Fox News’ Defense Of Megyn Kelly Is Going To Backfire

Donald Trump has reignited his sexist harassment campaign against Megyn Kelly, and the folks at Fox News are, in seemingly coordinated fashion, striking back. Fellow Fox News hosts and pundits are asking Trump to cool it, and even Roger Ailes has released a statement calling Trump’s abuse “unacceptable” and “disturbing.” It’s almost touching, watching all these conservative media people who usually profit at peddling sexism choose, this time at least, to join together in an effort to stop this one particular instance of it.

It’s also going to backfire.

Conservative media and Fox News in particular have spent years – decades, if you count talk radio – training their audiences to believe that exhortations against sexism and racism are nothing but the “political correctness” police trying to kill your good time. Indeed, one reason that Trump was able to get so much attention for his presidential run in the first place is that Fox has spent years building him up, knowing that their audience enjoys vicariously needling imagined liberals and feminists with his loud-mouthed insult comic act.

Seamus Milne: China can ride out this crisis. But we’re on course for another crash

It may not yet be the moment to get in supplies of tinned food. That was what Gordon Brown’s former adviser during the 2008 crash, Damian McBride, suggested on Monday as stock markets crashed from Shanghai to New York and $1tn was wiped off the value of shares in one day. But seven years after the collapse of Lehman Brothers brought down the global financial system and plunged half the world into a slump, it’s scarcely alarmist to see the financial panic as the harbinger of a new crisis in a still crippled world economy.

The market gyrations that followed “Black Monday” this week and the 40% drop in the value of Chinese stocks since June have only underlined the fragility of what is supposed to be an international recovery. For all the finger-wagging hubris of western commentators over the fact that the latest mayhem has erupted in China, this is a global firestorm. And after three decades of deregulation punctuated by financial crises and a systemic meltdown, there is every reason to fear more fallout from casino capitalism.

Scott Lemieux: Gun control is political. So is refusing to address the politics of gun violence

After the 24-year-old television reporter Alison Parker and her 27-year-old cameraman Adam Ward were killed while on camera from a lake outside of Roanoke, Virginia on Wednesday morning, the frontrunner for the Democratic nomination, Hillary Clinton, somewhat predictably tweeted that “[w]e must act to stop gun violence, and we cannot wait any longer” and Virginia governor Terry McAuliffe called for new gun control measures in the form of background checks .

The conservative response to Democrats’ anodyne reactions is even more predictable:  it’s wrong, they say, to “politicize” individual acts of firearm violence. But gun violence in the United States has everything to do with politics – and we should be talking more, not less, about the impact of America’s failed gun policies on victims and their families and communities.

The Breakfast Club (Poohstick)

breakfast beers photo breakfastbeers.jpgIt’s not what you think.  This is the game Christopher Robin played with Winnie the Pooh in many of their A.A. Milne adventures.

The basic concept is simple- find some sticks, drop them in a stream or river on one side of a bridge, see which one emerges on the other side first.

Since this a childlike and contemplative game it’s best not to choose a rushing torrent as your course and turbulence can make it difficult to determine stick identity when it emerges.  Your best bet is a slowly meandering waterway on a hot summer day with a broad bridge to enhance the suspense and encourage deep philosophical conversation while awaiting the outcome.  

If your nature is more, ahem, competitive there are some tricks (all very fair and within the rules and spirit of the game).  They involve, as you might expect, stick selection since it is the only variable under your control.

Revealed: how to pick the perfect Poohstick

Press Association

Wednesday 26 August 2015 03.52 EDT

Poohsticks, the timeless game made famous by Winnie the Pooh, Piglet and Christopher Robin, is not a game of chance, according to scientists – and there’s even a formula to win.



Egmont Publishing joined Dr Rhys Morgan, director of engineering and education at the Royal Academy of Engineering, to equip the 39% of people who already take time sourcing the perfect Poohstick with the formula to ensure they pick the speediest stick to sail to victory.

It comes after a survey of 2,000 British parents revealed that 41% of players take the time to personalise their sticks to ensure they take no chances in knowing exactly who wins.

It turns out that just 11% of Britons naturally pick the right sort of stick, with a third of people (30%) heading straight for a long and thin stick, which according to Dr Morgan is only half right.

The scientist, a father of two and avid Poohsticks player himself, said the main variables that need to be considered when designing the optimum Poohstick included cross-sectional area, density/buoyancy, and the drag coefficient.

The perfect Poohstick would be tubby and long, fairly heavy (but not so heavy it will sink to the bottom of the river), with quite a lot of bark to catch the flow of the river like paddle.

Science and Technology News and Blogs

Science Oriented Video

The law that entropy always increases holds, I think, the supreme position among the laws of Nature. If someone points out to you that your pet theory of the universe is in disagreement with Maxwell’s equations – then so much the worse for Maxwell’s equations. If it is found to be contradicted by observation – well, these experimentalists do bungle things sometimes. But if your theory is found to be against the second law of thermodynamics I can give you no hope; there is nothing for it but to collapse in deepest humiliation.

Sir Arthur Stanley Eddington, The Nature of the Physical World (1927)

Obligatories, News and Blogs below.

New Orleans: A Tale of Two Cities

It is 10 years since Hurricane Katrina slammed into the Gulf Coast causing $108 billion in damages, killing over 1300 people and completely changing the city of New Orleans and the coastline.

Today New Orleans has changed in many ways, it is whiter, richer and the poor are poorer:

Ten years later, it is not exactly right to say that New Orleans is back. The city did not return, not as it was.

It is, first of all, without the more than 1,400 people who died here, and the thousands who are now making their lives someplace else. As of 2013, there were nearly 100,000 fewer black residents than in 2000, their absences falling equally across income levels. The white population decreased by about 11,000, but it is wealthier.

The city that exists in 2015 has been altered, by both a decade of institutional re-engineering and the artless rearrangement that occurs when people are left to fend for themselves.

Empowered by billions of federal dollars and the big ideas of eager policy planners, the school system underwent an extensive overhaul; the old Art Deco Charity Hospital was supplanted by a state-of-the-art medical complex; and big public housing projects, at once beloved and notorious, were razed and replaced by mixed-income communities with housing vouchers.

In a city long marinated in fatalism, optimists are now in ascendance. They promise that an influx of bright newcomers, a burst of entrepreneurial verve and a new spirit of civic engagement have primed the city for an era of greatness, or, at least, reversed a long-running civic-disaster narrative.

“Nobody can refute the fact that we have completely turned this story around,” said Mayor Mitch Landrieu, talking of streamlined government and year-over-year economic growth. “For the first time in 50 years, the city is on a trajectory that it has not been on, organizationally, functionally, economically, almost in every way.”

The word “trajectory” is no accident. It is the mayor’s case that the city is in a position to address the many problems that years of government failures had allowed to fester. He did not argue that those problems had been solved.

On This Day In History August 27

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

August 27 is the 239th day of the year (240th in leap years) in the Gregorian calendar. There are 126 days remaining until the end of the year.

On this day in 1883, The most powerful volcanic eruption in recorded history occurs on Krakatau (also called Krakatoa), a small, uninhabited volcanic island located west of Sumatra in Indonesia, on this day in 1883. Heard 3,000 miles away, the explosions threw five cubic miles of earth 50 miles into the air, created 120-foot tsunamis and killed 36,000 people.

Krakatau exhibited its first stirrings in more than 200 years on May 20, 1883. A German warship passing by reported a seven-mile high cloud of ash and dust over Krakatau. For the next two months, similar explosions would be witnessed by commercial liners and natives on nearby Java and Sumatra. With little to no idea of the impending catastrophe, the local inhabitants greeted the volcanic activity with festive excitement.

On 27 August four enormous explosions took place at 05:30, 06:44, 10:02, and 10:41 local time. The explosions were so violent that they were heard 3,500 km (2,200 mi) away in Perth, Western Australia and the Indian Ocean island of Rodrigues near Mauritius, 4,800 km (3,000 mi) away, where they were thought to be cannonfire from a nearby ship. Each was accompanied by very large tsunamis, which are believed to have been over 30 meters (100 ft) high in places. A large area of the Sunda Strait and a number of places on the Sumatran coast were affected by pyroclastic flows from the volcano.

The pressure wave generated by the colossal final explosion radiated from Krakatoa at 1,086 km/h (675 mph). It was so powerful that it shattered the eardrums of sailors on ships in the Sunda Strait and caused a spike of more than two and half inches of mercury in pressure gauges attached to gasometers in the Jakarta gasworks, sending them off the scale. The pressure wave radiated across the globe and was recorded on barographs all over the world, which continued to register it up to 5 days after the explosion. Barograph recordings show that the shockwave from the final explosion reverberated around the globe 7 times in total. Ash was propelled to a height of 80 km (50 mi).

The eruptions diminished rapidly after that point, and by the morning of August 28 Krakatoa was silent. Small eruptions, mostly of mud, continued through October, though further reports continued through February 1884. These reports were discounted by (Rogier) Verbeek.

The combined effects of pyroclastic flows, volcanic ashes and tsunamis had disastrous results in the region. There were no survivors from 3,000 people located at the island of Sebesi, about 13 km (8.1 mi) from Krakatoa. Pyroclastic flows killed around 1,000 people at Ketimbang on the coast of Sumatra some 40 km (25 mi) north from Krakatoa. The official death toll recorded by the Dutch authorities was 36,417, although some sources put the estimate at 120,000 or more.

Ships as far away as South Africa  rocked as tsunamis hit them, and the bodies of victims were found floating in the ocean for weeks after the event. The tsunamis which accompanied the eruption are believed to have been caused by gigantic pyroclastic flows  entering the sea; each of the four great explosions was accompanied by a massive pyroclastic flow resulting from the gravitational collapse of the eruption column.

In the aftermath of the eruption, it was found that the island of Krakatoa had almost entirely disappeared, except for the southern half of Rakata cone cut off along a vertical cliff, leaving behind a 250-metre (820 ft) deep caldera.

In the year following the eruption, average global temperatures fell by as much as 1.2 C (2.2 F). Weather patterns continued to be chaotic for years, and temperatures did not return to normal until 1888.

The eruption darkened the sky worldwide for years afterwards, and produced spectacular sunsets throughout the world for many months. British artist William Ashcroft made thousands of colour sketches of the red sunsets half-way around the world from Krakatoa in the years after the eruption.

Dispatches From Hellpeckersville- Easy To Be Hard

I’m probably going to be getting a precious little boy to watch for a while. He’s nine months old and just as cute as can be. His mama is an old friend. She used to help babysit my boys when they were little, she was a good kid, really, I always thought so anyway. She lived with my niece for a while, due to a conflict with her mom I was told. I never nosed into the details, I’ve seen a lot of kids whose parents were too busy off living their lives to be there for them in the way they need, I just assumed it was something like that. Eventually my boys got older and she moved to Texas, but I kept in touch.

She moved back here a couple of years ago. She again briefly lived with my niece, then she didn’t. A little later I saw her on facebook with her belly growing big. I was happy for her, she looked every bit the glowing expectant mommy. When the baby pictures came it was joyous. She beamed with love for that beautiful boy, but it seemed to me there was something missing. Yes, she was with her baby’s daddy, but he was never in the pictures, and I didn’t see many family kind of posts coming up, I worried, and I was right to worry.

When she got in touch to ask me if I could help her out, maybe watch her boy for a few hours a day, I didn’t ask her any questions. She said she was right down the street staying with my great-niece. I said I had to clear it with Pop, but yes, yes I would be willing to help. Bring that little fella up here to meet us. Let’s see how he likes Aunt triv.

She brought him up yesterday, and yes he is a cutie pie. She was sitting here telling me how thankful she was that I would help her. I said, “Look, you were in a bad situation, you had to get out, that’s all I need to know.” She did tell me more, that her mom thought she should stay in that bad situation, not willing to help her, not willing to let her come home. That she was willing to do anything to get out and make things better for herself and her little man, work two jobs, whatever it takes. So we sat and tried to look for a place for them to live on craigslist, not a lot of prospects there. I wish I could help her out on that score, but I can’t.

But I will do what I can. On her way out I tried to tell her that she’ll get through this, that some folks do care about her. She turned around and said, “Only you and K****.” I went back inside and cried a little. What the hell is wrong with people? I don’t know her mom, but I can tell you this much, I never thought she was there for her, and it’s not like she was any more trouble than the typical teenager. And now? Wow, I don’t don’t even know what to say.

So, I’m hoping she gets that second job, and I get to watch her baby boy. That she finds that room to rent and is able to save the money to get where she needs to go. Because I have never found it easy to be hard.

Punting the Pundits

“Punting the Pundits” is an Open Thread. It is a selection of editorials and opinions from around the news medium and the internet blogs. The intent is to provide a forum for your reactions and opinions, not just to the opinions presented, but to what ever you find important.

Wednesday is Ladies’ Day.

Thanks to ek hornbeck, click on the link and you can access all the past “Punting the Pundits”.

Follow us on Twitter @StarsHollowGzt

Katrina vanden Heuvel: The Danger of ‘Foreign Policy by Bumper Sticker’

The GOP’s paranoia and hubris promises yet another self-inflicted foreign policy disaster.

Appearing before the Senate Foreign Relations Committee in 1966, George F. Kennan, the legendary Cold War diplomat often called “the father of containment,” criticized the escalation of the war in Vietnam. The United States, he said, should not “jump around like an elephant frightened by a mouse.”

Kennan’s “frightened elephant” is a strangely apt metaphor for the situation in which we find ourselves nearly a half-century later. In the GOP primary, the candidates are calling for a foreign policy defined by fear-mongering and senseless aggression. Their agenda includes plans to reverse President Obama’s nuclear agreement with Iran, abandon renewed diplomatic ties with Cuba, escalate tensions with Russia and deploy U.S. troops in Syria. Much like Kennan’s agitated elephant, the Republicans candidates see threats in Iran, Vladimir Putin’s Russia, Bashar al-Assad’s Syria and in the Islamic State and other Islamic extremist groups that are far out of proportion to any real harm they could ever inflict on U.S. interests. They are so out of touch with reality that even admitting the folly of the Iraq war has become a sign of weakness. The far greater danger, though, is the combination of paranoia and hubris that characterizes the foreign policies of the Republican candidates leading us into yet another self-inflicted foreign policy disaster. Once again, they would have us rush to embrace unnecessarily militaristic responses to otherwise manageable foreign policy challenges, bringing yet more chaos to the Middle East and Eastern Europe while costing the nation even more in lost lives and treasure.

Joan Walsh: An ugly new frontier in GOP race-baiting: Attacking the Asian menace

Jeb says it’s Asians who have anchor babies, while Trump and Walker bash China. Good luck with the outreach, guys!

Jeb Bush proved for the millionth time Monday that he’s the worst candidate promoted as a presidential “frontrunner” since Ted Kennedy in 1980. Bush’s latest gaffe, you probably heard, involved his claim that he’s not scapegoating Latinos with his complaints about “anchor babies,” because the real “anchor baby” scammers – people who aren’t Americans but have children here so they become citizens – are “Asian people,” not Latinos.

Bush brushed off a suggestion that he’s alienating Latinos with his “anchor baby” rhetoric by pointing to “my background, my life, I’m immersed in the immigrant experience.” Then he stepped in it: “Frankly it’s more related to Asian people coming into the country…taking advantage of birthright citizenship.”

Suddenly it seems the GOP field has a new political scapegoat: Asians! There aren’t as many of them as there are Latinos, though they’re the fastest growing “minority” group in the country. The same day Bush slurred Asians on the illegal immigration issue, Gov. Scott Walker demanded President Obama cancel his meetings with Chinese president Xi Jinping, because…toughness? He didn’t really say.

Amy B. Dean: The charter school movement needs greater accountability

Even supporters should realize that corruption is tarnishing charter schools’ reputations and wasting public money

Charter schools enroll more than 2.5 million students in the U.S. But as these publicly funded, privately run schools have spread across the country, so have reports of corruption and waste bred by a lack of accountability.

A recent study published by the Alliance to Reclaim Our Schools and the Center for Popular Democracy, entitled “The Tip of the Iceberg,” found $203 million lost to fraud, corruption and mismanagement in charter schools, with a projected $1.4 billion in losses in 2015 alone. The Federal Bureau of Investigation is concerned as well: It has investigated schools in Pennsylvania, Louisiana, Connecticut, Arizona, Ohio, Massachusetts, Indiana and Illinois. [..]

Whether or not one thinks that charter schools are a good thing, we should be able to agree that greater accountability strengthens our school system. However, many charter advocates have stood in the way of reform.

Lauren Pagel: Forget fracking. We need clean energy now

New EPA rule on methane takes step in right direction, but we must expedite the transition to renewable energy

One year ago, Earthworks, the environmental advocacy organization I work for, launched the Citizens Empowerment Project to document the effects of fracking on air quality in across the country. With the help of a special thermal camera that detects and visualizes the presence of harmful gases, people near fracking sites across the country can now confirm what they have known for years to be true: Oil and gas development is polluting their air.

This pollution includes Volatile Organic Compounds (VOCs) such as benzene, a known carcinogen. These pollutants contribute to smog, which can trigger a variety of health problems such as asthma. Air pollution is a problem at almost every point along the development chain, from the well pad to the pipeline and beyond. But until now,  state rules to protect families living near such sites have been spotty and largely unenforced. And there are few national protections that safeguard our air from fracking and related development.

The Genius of Economics

(Note: This is a panel discussion from some time ago with Joseph Stiglitz and Paul Krugman, Nobel Laureates in Economics, and Thomas Piketty, Capital in the Twenty-First Century.  The interview with Christopher Beha of Harper’s Magazine referenced below took place recently at Book Culture book store in New York- ek)

Joe Stiglitz: The Dangerous Economic Thinking That’s Killing Greece and Threatening the European Union

By Lynn Stuart Parramore, AlterNet

August 21, 2015

Bad economic ideas inflict untold human suffering. When they come cloaked in a fog of Orwellian obfuscation, their poison and effects can spread with little hindrance. The public is misled. Power plays are hidden from view.



In discussing Greece’s Third Memorandum of Understanding and its draconian terms, Stiglitz observes that the MoU is really a “surrender document” that eclipses the country’s economic sovereignty and ensures that Greece’s depression – already deeper than America’s Great Depression – will get worse. An economy that is seeing youth unemployment reaching up to 60 percent is likely to lose another 5 percent in GDP. That is over and beyond the 25 percent plunge in GDP the country has suffered since the imposition of austerity measures.

Socially conservative Germans, Stiglitz warns, are doubling down on the discredited notion that austerity policies help economies recover in times of crisis. In reality, the insistence on keeping wages down, stripping bargaining power from workers, forcing small business owners to pay taxes a year in advance, and cutting pensions will only hamper demand and lead to a deepening spiral of debt. (Stiglitz emphasizes that hardly any of the money loaned to Greece has actually gone to help the Greeks themselves, but rather private-sector creditors, namely German and French banks).



In Stiglitz’s view, what’s behind the ill-advised economic schemes is a power struggle in which Germany and its supporters seek to undermine the Greek economy in order to push out a government (Syriza) they do not like. In doing so they are tearing apart families, snuffing out the hopes of young people and delivering humiliation and suffering to a country. History shows that such a policy does not turn out well for anyone.

Stiglitz reminded the audience that John Maynard Keynes once issued warnings about the Treaty of Versailles, the peace settlement signed at the end of World War I, which ordered Germany to pay massive reparations. Inflicting more pain on a weakened economy would send an already-battered nation into depression. Keynes turned out to be correct: resentment of the harsh terms and the resulting high unemployment led to the rise of Adolf Hitler. Far from restoring stability in Europe, the Treaty set the stage for an unprecedented disaster and unspeakable human misery.

Stiglitz warned that Germany, a major beneficiary of debt write-offs following WWII, had not learned the lesson of its own history. Officials are blind to the reality that debt forgiveness is necessary for Greece at a time when nearly everyone, including the International Monetary Fund (IMF), recognizes that the country simply can’t pay back what it owes. Instead of remembering the terrible consequences of mass unemployment following WWI, many Germans insist that it was hyperinflation that led to Hitler, and so they tend to support central bank policies that guard against that problem rather than the far more worrisome specter of joblessness.

As Stiglitz describes, the result of all this historical amnesia and economic blindness is a “Dickensian” nightmare that recalls 19th-century debtors prisons where people were punished for the inability to pay debts and locked (literally) into a situation in which paying them was, of course, impossible. Only now, the prisoner is an entire country.

Stiglitz notes the fundamental problem that eurozone leaders will not let individual countries like Greece, Portugal or Spain change economic policies, no matter how harmful they become. Extreme right-wing elements will benefit as trust in government diminishes. As Stiglitz sees it, flaws in the design of the euro, as well as flaws in the design of the European Central Bank, which is not equipped to address unemployment, hurt Europe’s prospects and yet are extremely difficult to address because they are embedded in treaties that require the unanimous agreement of member countries to alter. He pointed out that if you look at countries like Sweden, it appears that those that did not join the eurozone seem to be in better shape than those that joined. The eurozone has been stuck in persistent stagnation, whereas Sweden’s economy, for example, is brightening.

When an audience member asked whether forgiving Greek debt would lead to moral hazard – encouraging other countries to borrow beyond their means – Stiglitz responded that it was unimaginable that any country would want to go through what the Greeks are enduring. He noted that the lenders bear even more responsibility for the current mess than the borrowers. Goldman Sachs structured irresponsible deals that allowed the Greek government at the time of the Maastricht Treaty to hide its debt. Stiglitz concluded that if anything, moral hazard is a problem on the lender side, as there is little to discourage lending money to countries that are unlikely to be able to pay back. He also noted that the idea of the Greek government selling assets in the middle of a depression to pay back debt was a bad idea, because prices are so low this amounts to little more than a fire sale.



The real deficit in Europe, said Stiglitz, is a “democratic deficit.”

The Breakfast Club (Acceptance)

Welcome to The Breakfast Club! We’re a disorganized group of rebel lefties who hang out and chat if and when we’re not too hungover  we’ve been bailed out we’re not too exhausted from last night’s (CENSORED) the caffeine kicks in. Join us every weekday morning at 9am (ET) and weekend morning at 10:30am (ET) to talk about current news and our boring lives and to make fun of LaEscapee! If we are ever running late, it’s PhilJD’s fault.

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This Day in History

American women gain the right to vote, as the U.S. Constitution’s 19th Amendment takes effect; Investigators pinpoint the cause of the Space Shuttle Columbia disaster; Aviator Charles Lindbergh dies.

Breakfast Tunes

Something to Think about over Coffee Prozac

Our entire life – consists ultimately in accepting ourselves as we are.

Jean Anouilh

Michael Hudson on the China Crash

Michael Hudson (Research Professor of Economics at University of Missouri, Kansas City (UMKC) and a Research Associate at the Levy Economics Institute of Bard College, a former Wall Street analyst) is the author of Killing the Host: How Financial Parasites and Debt Destroy Global Economy.

“Casino Capitalism”: Economist Michael Hudson on What’s Behind the Stock Market’s Roller-Coaster Ride

Smoke and Mirrors of Corporate Buybacks Behind the Market Crash

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