This interview with economist James K. Galbraith, by Paul Jay of Real News Network about why the “fical cliff” is a scam, was posted at naked capitalism in two parts by Yves Smith and Lambert Strether.

This is a very good, high level interview of Jamie Galbraith by Paul Jay of Real News Network. It explains how the fiscal cliff scare was created and why Obama and the Republicans are united in fomenting a false sense of urgency. This is the sort of piece I’d suggest sharing with friends and relatives who’ve been unable to miss the news coverage and want to get up to speed.

Lambert made note of this passage:

[GALBRAITH:] If, for example, [incompr.] suggestion which has been in the news, you raise the eligibility age for Medicare, then what you’re doing is privatizing it in part. What you’re saying is that people who have employer-based insurance or other forms of private insurance have to hang on to that when they’re 66 and into, say, 67 [incompr.] they hit the age when they can shrug it off and get onto Medicare. That’s privatization. That’s what it is. And I think that should also be off the table.

Six Reasons the “Fiscal Cliff” is a Scam: A Mechanism for Rolling Back Social Security, Medicare and Medicaid.

by James K. Galbraith at Global Research

Stripped to essentials, the fiscal cliff is a device constructed to force a rollback of Social Security, Medicare and Medicaid, as the price of avoiding tax increases and disruptive cuts in federal civilian programs and in the military.  It was policy-making by hostage-taking, timed for the lame duck session, a contrived crisis, the plain idea now unfolding was to force a stampede.

In the nature of stampedes arguments become confused; panic flows from fear, when multiple forces – economic and political in this instance – all appear to push the same way.  It is therefore useful to sort through those forces, breaking them down into separate questions, and to ask whether any of them justify the voices of doom. [..]

In short, Members of Congress: if you can, just pass the President’s bill on middle-class taxes, and, if you can, eliminate the domestic sequester. Then, please go home.  Enjoy the holidays. Come back in January prepared to extend unemployment insurance, to phase out the payroll tax holiday gradually, to restore stable funding to necessary programs and to start dealing with our real problems:  jobs, foreclosures, infrastructure and climate change.

Over a month, New York City is still reeling from the aftermath of Hurricane Sandy. Many people are still without power, heat and far too many without a place to live. Volunteers are still needed in the hardest hit areas of Brooklyn, Queens and Staten Island. The last thing that the residents of these neighborhoods need is the heavy handed control tactics of Mayor Michael Bloomberg who likes to maintain the illusion that everything is going well and no more help is needed. Now all he needs is $32 billion in federal aid to repair Manhattan’s damaged infrastructure and expand the subway system, not protect it.

After reading the reports that the mayor was threatening to stop volunteers from distributing supplies and serving hot meals that were posted here, Docudharma and Daily Kos by ek hornbeck, I went to Midland Beach to spend a couple of hours talking to the people and walking around the area. Despite the destruction, the dwindling interest of the city to help clean up and frusrations, the attitude is perseverance and determination to rebuild and stay in their home community.

The one person I really wanted to meet was Aiman Youssef, whose home was destroyed, but instead of seeking refuge elsewhere he remained to set up a distribution hub on his property on Midland Ave. With the help of friends, neighbors and community volunteers they are offering cleaning supplies and equipment (mobs, buckets, crowbars, bleach), clothing, medical supplies and non-perishable food. I spoke with Mr. Youseff and his merry band of volunteers who call themselves the “Yellow Team” and say they are here for the duration. This is their home. They have set up a facebook page and aligned with Occupy Sandy, the offshoot of Occupy Wall St that is coordinating Sandy relief efforts through out the city.

There is an outdoor kitchen under a canopy that serves free hot food and coffee that’s located in a driveway. All of the tables are neatly stacked with the free for the taking supplies, extending along the curb side from in front of Mr. Youseff’s home for half a block in front of LaRocca’s Family Restaurant. The street and the side walk are cleaned up by the volunteers. One of the volunteers told me that they are being very careful since the city’s threat to shut the Hub, as it’s called, down for safety reasons. There is still a large police presence in the neighborhood and most likely will be for sometime to come.

The local NBC News interviewed Mr. Youseff about the lack of information and growing frustration with the city

It’s amazing that the city would be so concerned about the safety of the Hub when the streets in the area are still littered with piles of debris in front of homes that not only block the sidewalk but spill into the street. Driving and walking down narrow one way streets is hard enough with the vehicles of volunteer workers and pick up trucks but add broken glass, boards with rusting nails sticking out, household appliances, and moldy, rotting furnishing and there is the real safety hazard.

This house is next to another food kitchen across from the Yellow Team Hub.

This building under renovation is on the corner opposite the food kitchen.

This house has been condemned and is just around the corner for the Hub.

This is the other side of that street.

Residents were telling me that this has been like this for weeks and the piles grow daily. Where is the city? I was there nearly 2 hours talking to some very frustrated people who had no kind words for the mayor. During all that time, I didn’t see one sanitation truck. Yes, it’s Sunday but this is a disaster area and clean up here should be a 24/7 job. There is no excuse. The dime is on FEMA.

These are not wealthy people. They are blue collar workers. Some own and operate businesses out of their homes; some work for the city. They own; they rent. Many have lived here all their lives, while others moved here because Staten Island is unique. We have deer and zebras.

All is not gloom, there is laughter and smiles and dreams of a better future for Midland Beach. The Yellow Team is even looking forward to the holidays and put up a Christmas Tree. My picture didn’t come out, so here;s one from the team’s facebook page.

Those wishing to volunteer or donate non-perishable food, diapers, personal care items (toothpaste, toothbrushes, soap), cleaning supplies (especially bleach) or even (ahem) money, you can contact Mr Youseff or Hannah, the Yellow team coordinator here

Demand the Mayor’s office end community hub eviction and instead support hubs with space and equipment  by writing, calling, faxing or e-mailing:

Mayor Michael R. Bloomberg

City Hall

New York, NY 10007

PHONE 311 (or 212-NEW-YORK outside NYC)

E-MAIL:

http://www.nyc.gov/html/mail/html/mayor.html

Or contact the Public Advocate’s office:

   (212) 669-7250, 9am-5pm

   [email protected]

Lawrence O’Donnell spoke on his Thursday show about the recent killing of Jordan Davis, a 17-year-old black student who was shot dead by an older white man in Florida last Friday.

Michael Dunn, 45, allegedly shot and killed Davis after arguing with him about the loud music he was playing in his car. He is now invoking Florida’s notorious “Stand Your Ground” law, claiming that he thought he saw a shotgun in Davis’ car. Police found no gun in the car, and Dunn was charged with second-degree murder. The case drew immediate comparisons to the killing of Trayvon Martin, the unarmed black teenager who was shot dead by George Zimmerman in 2012.

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.

December 2 is the 336th day of the year (337th in leap years) in the Gregorian calendar. There are 29 days remaining until the end of the year.

On this day in 2001, Enron filed for Chapter 11 bankruptcy protection in a New York court, sparking one of the largest corporate scandals in U.S. history.

An energy-trading company based in Houston, Texas, Enron was formed in 1985 as the merger of two gas companies, Houston Natural Gas and Internorth. Under chairman and CEO Kenneth Lay, Enron rose as high as number seven on Fortune magazine’s list of the top 500 U.S. companies. In 2000, the company employed 21,000 people and posted revenue of $111 billion. Over the next year, however, Enron’s stock price began a dramatic slide, dropping from $90.75 in August 2000 to $0.26 by closing on November 30, 2001.

As prices fell, Lay sold large amounts of his Enron stock, while simultaneously encouraging Enron employees to buy more shares and assuring them that the company was on the rebound. Employees saw their retirement savings accounts wiped out as Enron’s stock price continued to plummet. After another energy company, Dynegy, canceled a planned $8.4 billion buy-out in late November, Enron filed for bankruptcy. By the end of the year, Enron’s collapse had cost investors billions of dollars, wiped out some 5,600 jobs and liquidated almost $2.1 billion in pension plans.

Accounting practices

Enron had created offshore entities, units which may be used for planning and avoidance of taxes, raising the profitability of a business. This provided ownership and management with full freedom of currency movement and the anonymity that allowed the company to hide losses. These entities made Enron look more profitable than it actually was, and created a dangerous spiral, in which each quarter, corporate officers would have to perform more and more contorted financial deception to create the illusion of billions in profits while the company was actually losing money. This practice drove up their stock price to new levels, at which point the executives began to work on insider information and trade millions of dollars worth of Enron stock. The executives and insiders at Enron knew about the offshore accounts that were hiding losses for the company; however, the investors knew nothing of this. Chief Financial Officer Andrew Fastow led the team which created the off-books companies, and manipulated the deals to provide himself, his family, and his friends with hundreds of millions of dollars in guaranteed revenue, at the expense of the corporation for which he worked and its stockholders.

In 1999, Enron launched EnronOnline, an Internet-based trading operation, which was used by virtually every energy company in the United States. Enron president and chief operating officer Jeffrey Skilling began advocating a novel idea: the company didn’t really need any “assets.” By pushing the company’s aggressive investment strategy, he helped make Enron the biggest wholesaler of gas and electricity, trading over $27 billion per quarter. The firm’s figures, however, had to be accepted at face value. Under Skilling, Enron adopted mark to market accounting, in which anticipated future profits from any deal were tabulated as if real today. Thus, Enron could record gains from what over time might turn out to be losses, as the company’s fiscal health became secondary to manipulating its stock price on Wall Street during the Tech boom. But when a company’s success is measured by agreeable financial statements emerging from a black box, a term Skilling himself admitted, actual balance sheets prove inconvenient. Indeed, Enron’s unscrupulous actions were often gambles to keep the deception going and so push up the stock price, which was posted daily in the company elevator. An advancing number meant a continued infusion of investor capital on which debt-ridden Enron in large part subsisted. Its fall would collapse the house of cards. Under pressure to maintain the illusion, Skilling verbally attacked Wall Street Analyst Richard Grubman, who questioned Enron’s unusual accounting practice during a recorded conference call. When Grubman complained that Enron was the only company that could not release a balance sheet along with its earnings statements, Skilling replied “Well, thank you very much, we appreciate that . . . asshole.” Though the comment was met with dismay and astonishment by press and public, it became an inside joke among many Enron employees, mocking Grubman for his perceived meddling rather than Skilling’s lack of tact. When asked during his trial, Skilling wholeheartedly admitted that industrial dominance and abuse was a global problem: “Oh yes, yes sure, it is.”

“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

The Sunday Talking Heads:

Up with Chris Hayes: Joining Chris will be: Gov. Dannel Malloy (@GovMalloyOffice), Democrat of Connecticut; Elizabeth Pearson, fellow at The Roosevelt Institute; Bruce Bartlett (@BruceBartlett), contributor to The New York Times‘ blog Economix , columnist for The Fiscal Times and Tax Note,  author of “The Benefit and the Burden;” Maya Wiley (@mayawiley), founder and president of the Center for Social Inclusion; Tony Dokoupil, senior writer at Newsweek and The Daily Beast; Kevin Sabet (@KevinSabet), assistant professor at The University of Florida’s Drug Policy Institute and former senior advisor in the Office of National Drug Control Policy in the Obama administration; Veronique de Rugy (@veroderugy), senior research fellow at the Mercatus Center at George Mason University; and Dedrick Muhammad, senior economic director at the NAACP.

This Week with George Stephanopolis: The guest on This Week is Treasury Secretary Timothy Geithner (and just about everywhere else).

The roundtable panel guests are  House Deputy Whip Rep. Tom Cole, R-Okla.; Rep. Keith Ellison, D-Minn., co-chair of the Congressional Progressive Caucus; former Romney campaign senior adviser Dan Senor; former Counselor to the Treasury Secretary and Lead Auto Adviser Steven Rattner; and ABC News’ Cokie Roberts.

Face the Nation with Bob Schieffer: Mr Schieffer’s guests are Treasury Secretary Timothy Geithner; Sen. Lindsey Graham, R-S.C. Sen.; Senate Intelligence Chair Dianne Feinstein, D-Calif.; and Chairman of the House Intelligence Committee Mike Rogers, R-Mich.

Joining a panel discussion of the “fiscal cliff” are Moody’s Analytics Mark Zandi, Campaign to Fix the Debt’s Maya MacGuineas, TIME Magazine’s Rana Foroohar and CBS News Political Director John Dickerson.

The Chris Matthews Show: Joining Chris Matthews are Annette Gordon-Reed, Author; Jodi Kantor, New York Times; Jon Meacham, Random House Author & Executive Editor and Michael Beschloss, Author.

Meet the Press with David Gregory: The guests on MTP are Treasury Secretary Timothy Geithner; Sen. Claire McCaskill (D-MO) and Sen. Bob Corker (R-TN).

The roundtable guests are  anti-tax advocate Grover Norquist; the top Democrat on the House Budget Committee, Rep. Chris Van Hollen (D-MD); and insights and analysis from CNBC’s Jim Cramer and Maria Bartiromo.

State of the Union with Candy Crowley: Ms. Crowley’s guests are Treasury Secretary Timothy Geithner; “Gang of 8” member Mark Warner (D-VA) and Sen. Kelly Ayotte (R- NH).

Joining her at the roundtable are former Chairman and CEO of Hewlett-Packard, Carly Fiorina, Governor Brian Schweitzer (D-Montana), USA Today‘s Susan Page, and A.B. Stoddard of The Hill.

Other than Chris Hayes this is going to be all right wing, neo-con spin, even Bruce Bartlett gets it. But we are spared John “Jowls” McCain. TMC

To discuss what they know since the week began, Up with Cris Hayes host Chris Hayes is joined by his guests Danielle Brian (@daniellebrian), executive director for the Project On Government Oversight; Eyal Press (@EyalPress), author of “Beautiful Souls: Saying No, Breaking Ranks and Heeding the Voice of Conscience in Dark Times;” Ed Pilkington, chief reporter for guardiannews.com, former national and foreign editor of the paper and author of “Beyond the Mother Country;” and former Marine Zachary Iscol.

Fast Food Workers Walk Off The Job: “We Can’t Survive On $7.25!”

from Gothamist

Low-income workers at giant chains fighting are back for better wages. Last week Wal-Mart workers across the country walked off the job in protest, and yesterday fast food workers here in New York took to the streets to demand for more money-and a union. Specifically, those marching to bring Fast Food Forward are organizing for a living wage-like, say, making $15 an hour. Because the average fast food worker in New York City makes just $11,000 a year.

Plenty of local politicians are supporting the workers. “This is the moment for New York City to turn the corner after a decade of rising income inequality,” mayoral hopeful Bill De Blasio said in a statement on yesterday’s actions, which took place all over the city. “We need to stand united as a city in support of fast food workers so they can win the fair pay and economic security every New Yorker deserves.”

And City Council member Jumaane Williams went even further at an afternoon rally in Times Square. “You deserve an honest days pay for an honest days work,” he told the crowd. “McDonald’s says billions and billions served and they aren’t even offering sick days or able to pay you for an honest days work? That’s some bull… ish!”

Why It’s Time To Raise The Wage Floor On Fast Food ‘McJobs’

by Sarah Jaffe, The Atlantic

The median hourly wage for food service and prep workers is a mere $8.90 an hour in New York City, according to the New York Department of Labor. But Jasska Harris still makes the federal minimum wage — $7.25 — after five months on the job, and struggles to get even 35 hours a week. And that minimum wage buys less than it used to. A recent study from the National Employment Law Project pointed out that the value of the minimum wage is 30 percent lower than it was in 1968. [..]

Wages in the fast-food industry have stayed low for two basic reasons. First, many are low-skill service jobs in an efficient assembly where workers are easily replaced and don’t require much education. Second, there is a large supply of people who are willing to make cheap burgers at a low wage. It is easy to look at this scenario and conclude, “well, economics determines prices and wages, and that’s that.” But the full story is more complicated. Cheap fast food and their cheap workers impose a cost on the country in the form of food stamps, welfare through the tax code, and social safety net programs. This is a place for government to intervene — and for corporations to sacrifice some of their profits — by raising wages to a livable level. [..]

What we’ve seen with Walmart and now with the fast food workers is an independent organization, supported by traditional labor unions (in this case, the Service Employees International Union along with New York Communities for Change, United NY, and the Black Institute), can be more creative in its organizing tactics. Lerner is particularly inspired by the one-day strike that the workers are undertaking today. “The old strike, you used to go out and stay out until you win. But the workers now are so angry and mistreated an the way you express that is short-term walkouts.”

Welcome to the Stars Hollow Health and Fitness News weekly diary. It will publish on Saturday afternoon and be open for discussion about health related issues including diet, exercise, health and health care issues, as well as, tips on what you can do when there is a medical emergency. Also an opportunity to share and exchange your favorite healthy recipes.

Questions are encouraged and I will answer to the best of my ability. If I can’t, I will try to steer you in the right direction. Naturally, I cannot give individual medical advice for personal health issues. I can give you information about medical conditions and the current treatments available.

You can now find past Health and Fitness News diaries here and on the right hand side of the Front Page.

Follow us on Twitter @StarsHollowGzt

These salads are all substantial enough to eat as a meal and have enough calories to sustain you until the next. But you could serve smaller portions as a starter or side dish. I found that some, like the Asian chopped salad and the quinoa salad, had great staying power throughout the week. If you are vegetarian and want to include a high protein food in the salads that call for turkey or chicken, use the baked seasoned tofu in the Asian chopped salad. It would be a welcome addition to any of these salads.

~Martha Rose Shulman~

“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

Robert L. Borsage: On the Fiscal Extortion; Just Say No

Pressure for a deal to avoid the so-called “fiscal cliff” at the end of the year is building. Even minor tremors in the stock market are treated as auguries of the panic that will attend a failure to act. A multi-million dollar campaign funded by Wall Street billionaire Pete Peterson and Corporate CEOs demands action to “fix the debt.”

The president has put forth a comprehensive $4 trillion-dollar plan, including ending the Bush tax breaks for the top 2 percent, $400 billion in savings from Medicare and Medicaid over 10 years, as well as extension of the payroll tax cut, and creation of an infrastructure bank to help sustain the economy. House Speaker John Boehner scorns this, arguing that the price of defusing the austerity bomb is a deal that combines far more significant cuts in “entitlements” — that is Social Security, Medicare and Medicaid — with smaller amounts of revenue coming from lowering top rates and closing loopholes. As the end of the year approaches, the hysteria will build.

Easily lost in the tumult is simple common sense. No deal is a far better alternative than a bad deal — and the grand bargain now being discussed is a very bad deal. Here are the reasons citizens should be skeptical about the rush to agree.

Jill Filpovic: Justice Ginsburg’s distant dream of an all-female supreme court

Women graduate in law and enter legal practice in parity with men. But instead of getting on the bench, they end up benched

When will there be enough women on the United States supreme court?

Supreme court Justice Ruth Bader Ginsburg says when all nine seats are filled by female judges: [..]

Ginsburg’s comments, which were made last month, ruffled some feathers – but she’s right. As she herself pointed out, for most of the supreme court’s history, all of the justices were men and no one “ever raised a question” about that. The court isn’t like Congress or a corporation where there are hundreds of people serving and female-only representation would suggest a serious (and probably intentional) imbalance. There are only nine justices on the supreme court. It’s not unreasonable to think that, at some point, nine of the finest legal minds in the country would belong to women.

Unfortunately, an all-female supreme court is a long ways off. And not because women aren’t just as smart as men, don’t achieve as highly or aren’t as ambitious. But because, socially, we set men up to succeed and set women up to fail.

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.

December 1 is the 335th day of the year (336th in leap years) in the Gregorian calendar. There are 30 days remaining until the end of the year

.

On this day in 1990, the Chunnel makes breakthrough. Shortly after 11 a.m. on December 1, 1990, 132 feet below the English Channel, workers drill an opening the size of a car through a wall of rock. This was no ordinary hole–it connected the two ends of an underwater tunnel linking Great Britain with the European mainland for the first time in more than 8,000 years.

The Channel Tunnel, or “Chunnel,” was not a new idea. It had been suggested to Napoleon Bonaparte, in fact, as early as 1802. It wasn’t until the late 20th century, though, that the necessary technology was developed. In 1986, Britain and France signed a treaty authorizing the construction of a tunnel running between Folkestone, England, and Calais, France.

The Channel Tunnel (French: Le tunnel sous la Manche), (also informally known as the Chunnel) is a 50.5-kilometre (31.4 mi) undersea rail tunnel linking Folkestone, Kent near Dover in the United Kingdom with Coquelles, Pas-de-Calais near Calais in northern France beneath the English Channel at the Strait of Dover. At its lowest point, it is 75 metres (250 ft) deep. At 37.9 kilometres (23.5 mi), the Channel Tunnel possesses the second longest undersea portion of any tunnel in the world. The Seikan Tunnel in Japan is both longer overall at 53.85 kilometres (33.46 mi), and deeper at 240 metres (790 ft) below sea level.

The tunnel carries high-speed Eurostar passenger trains, Eurotunnel Shuttle roll-on/roll-off vehicle transport-the largest in the world-and international rail freight trains. The tunnel connects end-to-end with the LGV Nord and High Speed 1 high-speed railway lines. In 1996 the American Society of Civil Engineers identified the tunnel as one of the Seven Wonders of the Modern World.

Ideas for a cross-Channel fixed link appeared as early as 1802, but British political and press pressure over compromised national security stalled attempts to construct a tunnel. However, the eventual successful project, organised by Eurotunnel, began construction in 1988 and opened in 1994. The project came in 80% over its predicted budget. Since its construction, the tunnel has faced several problems. Fires have disrupted operation of the tunnel. Illegal immigrants and asylum seekers have attempted to use the tunnel to enter Britain, causing a minor diplomatic disagreement over the siting of the Sangatte refugee camp, which was eventually closed in 2002.

“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

Paul Krugman: Class Wars of 2012

On Election Day, The Boston Globe reported, Logan International Airport in Boston was running short of parking spaces. Not for cars – for private jets. Big donors were flooding into the city to attend Mitt Romney’s victory party.

They were, it turned out, misinformed about political reality. But the disappointed plutocrats weren’t wrong about who was on their side. This was very much an election pitting the interests of the very rich against those of the middle class and the poor. [..]

The important thing to understand now is that while the election is over, the class war isn’t. The same people who bet big on Mr. Romney, and lost, are now trying to win by stealth – in the name of fiscal responsibility – the ground they failed to gain in an open election.

Daphne Eviatar: Ending Indefinite Detention of Americans Who Aren’t Being Detained Doesn’t Solve the Problem

Last year, Congress, through the National Defense Authorization Act, which authorizes funding for the military, expanded the category of terror suspects that could be held indefinitely by the military without charge or trial. Senator Lindsey Graham (R-S.C.) and others who supported the provision argued America is now the battlefield, so suspects picked up here should also be imprisoned indefinitely. This year, Sen. James Inhofe (R-Okla.) wants to require Guantanamo custody for all terror suspects. Sen. Kelly Ayotte (R-N.H.) would force the Pentagon to plan yet another offshore prison facility for them.

There are, as always, some well-meaning lawmakers who want to restore certain basic rights and values. But the one effort gaining steam in the Senate right now — the Due Process Guarantee Act, sponsored by Sen. Dianne Feinstein (D-Calif.) — would actually do nothing to solve the problem.