Tag: Politics

Reality Check: The Economy Is Not Recovering

The pessimistic opinion of a looming second recession that has been expressed by economists who have gotten it right in the past is finally being recognized by the traditional media.

After a two-year rebound, recession risks rise

by Tom Petruno

The U.S. economy has officially been out of recession for two years, but fear of falling back into the abyss has dogged the recovery every step of the way.

Now, the prospect of recession no longer is a fringe view.

snip

The almost universal belief was that global growth would accelerate in the second half of the year. But that view has been fading fast this summer.

“We’re seeing a pattern of data that look very similar to what you see at a turning point in the economy,” said Michael Darda, chief economist at MKM Partners in Stamford, Conn. And he doesn’t mean a turning point to better times.

A key measure of U.S. consumer confidence has crashed to a 30-year low. Stock market volatility has become gut-wrenching. And prospects in the manufacturing sector, one of the few true bright spots of the recovery, have dimmed markedly.

snip

Of course, whether GDP growth contracts or is just slightly positive may feel exactly the same to many Americans, particularly the jobless, and to the country’s countless struggling small businesses.

The danger is that, if another recession becomes official, it could feed on itself as consumers and businesses that might otherwise have spent money decide not to, opting instead to hoard more cash.

“It can be a self-fulfilling phenomenon when households and businesses just stop in their tracks,” (MKM Partners chief economists, Michael) Darda said.

Dangerously Close to Recession

By Joachim Fels & Manoj Pradhan

US and Europe dangerously close to recession: Our revised forecasts show the US and the euro area hovering dangerously close to a recession – defined as two consecutive quarters of contraction – over the next 6-12 months. The US growth disappointment in 1H11, when GDP advanced by an annual average rate of less than 1%, illustrates the brittleness of the US recovery in the face of external shocks (oil, Japan earthquake), despite ongoing QE2 and fiscal stimulus at the time. While the current quarter should still show some rebound in growth to around 3% from the very low bar in 1H, much of this rebound is likely due to temporary factors such as the ramping up of auto production as supply disruptions from the Japan situation ease. The most critical period for the US economy will likely be 4Q11, when we may see some fallout from the heightened volatility of risk markets, and 1Q12, when we get an automatic tightening fiscal policy if, as our US team currently assumes, this year’s fiscal stimulus measures will expire.

This from the economist who predicted the 1st recession before anyone else and was booed off the stage:

Roubini: Risks of global recession are greater than 50%

“In dealing with large debt, there should be a cutback on costs in both the public and private sectors, an attempt reduce overtime and adding to savings. Also, to avoid a second recession, banking requires more relaxed policies “says Roubini.

“There is too much debt, both in the government and in the private sector. The debt cannot be reduces except by saving, by strong economic growth or through the dangerous method of inflation, says Roubini. But if population and companies consumption do not restart, then you risk to remain in recession. ”

“Business does not help the economy, because there are risks. They aren’t investing because there is excess capacity,they are not hiring because there is insufficient demand. Here is the paradox. If you do not hire workers, there isn’t enough money for workers’ income, there isn’t enough consumer confidence and consumption is insufficient, “says Roubini.

To most Americans we never got out of the first recession as Atrios points out the linger unemployment rate at 9% is unacceptable:

The point is we never got out of the last recession, and whether GDP growth is barely positive or barely negative doesn’t matter all that much.

Cutting the Payroll tax again will not substantial increase the GDP or create jobs. It will hurt the Social Security fund by reducing the payroll contributions. Creating jobs that will rebuild and improve roads, schools and other crumbling infrastructure will. If private industry won’t do it, then the government must.

Countdown with Keith Olbermann: Worst Persons 8.18.11

And the Bronze goes to Ray Sandoval, the New Mexico director for OFA (Organizing for America aka Obama for America) for sending out an e-mail to supporters urging them to read the pejorative laced blog post of a so-called 28 year old “activist” that bashed the left and Nobel Prize winning New York Times columnist Paul Krugman. Keith eviscerates the blog post for using 9/11 in reference to our economic woes and points out the Obama will not get reelected without us on the “Firebagger Lefty blogosphere”. So maybe they should STFU.

Just a word on Sen. Tom Coburn. Sen. Coburn is not only an embarrassment to our great democracy but as a physician. Thank you, Keith, excellent choices.

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”.

Paul Krugman: A Success Story as Big as Texas? Actually, That’s a Myth

Texas has been adding jobs faster than the rest of the nation, a fact that has become especially notable in the past couple of years – I recently saw it referred to as the Texas “jobs juggernaut” – as overall job growth has been so poor.

But what’s the story here? Oddly, it’s rare to see anyone in this debate talking in terms of models – that is, the kind of stylized, simplified, but internally consistent stories (not necessarily mathematical) that are what economic analysis is all about. So let me try to fill that gap by offering three informal models of what might be going on in Texas.

In each of these stories, I imagine, to clarify things, an initial state in which America is divided into two identical regions; call them Texas and New York. Each of these regions has a labor force that lives in houses; I ignore other factors of production, except that I assume that building houses requires land, which is in limited supply. And we assume that initially everything is in equilibrium: wages and the cost of housing are the same in both regions.

Robert Reich: The President’s Bold Jobs Bill (Maybe)

The President is sounding like a fighter these days. He even says he’ll be proposing a jobs bill in September – and if Republicans don’t go along he’ll fight for it through Election Day (or beyond).

That’s a start. But read the small print and all he’s talked about so far is extending the payroll tax cut and unemployment benefits (good, but small potatoes), ratifying the Columbia and South Korea free trade agreements (not necessarily a job-creating move), and creating an infrastructure bank.

An infrastructure bank might be helpful, depending on its size.

Which is the real question hovering over the entire putative jobs bill – its size.

New York Times Editorial: The Wrong Idea

Stocks on Wall Street dropped sharply on Thursday, with investors spooked, again, about the euro-zone debt crisis and the sputtering United States economy.

Stocks on Wall Street dropped sharply on Thursday, with investors spooked, again, about the euro-zone debt crisis and the sputtering United States economy.

Yet, even at this hour, leaders on both sides of the Atlantic seem determined to handcuff fiscal policies – the main tools that can increase jobs, consumer demand and economic growth – with an unquestioning devotion to rigid austerity.

Europe’s post-2008 economic problems have differed from America’s in many important ways. Washington has mercifully never had to cope with the problem of a dollar torn apart by the separate taxing and spending policies of 17 sovereign governments.

Joe Conason: What Obama Should Learn From Wisconsin What Obama Should Learn From Wisconsin

With Wisconsin’s epic state Senate recall battle now over, the results carry a clear message that ought to resonate all the way to Washington-and especially the Obama White House. The essence of politics in America today, for Democrats at least, is to understand and communicate the political nature of the opposition.

Having suffered a bad beating last November, the Wisconsin Democrats and their allies have succeeded in building a strong movement that fights back explicitly against the right-wing policies of Gov. Scott Walker’s Republican Party.

Last week, they won two out of six recall campaigns mounted against GOP state senators, which was widely interpreted as a defeat or at best a draw. But on Tuesday, they won all three recall efforts against Democrats, giving them an overall series victory, and cutting deeply into perceived support for the Walker agenda.

Kristina Kallas and Akila Radhakrishnan: Why is the US Waging War on Women Raped in War?

Mandatory sonograms, forced lectures by doctors, humiliating permission slips from abusive husbands, paternalistic opinions from Supreme Court Justice Kennedy, uneducated and patently stupid soundbites from Tea Partiers. That’s not the worst. In this newest wave of the war on women, let’s not forget the U.S. government’s abortion policies toward women in war.

Rape is systematically being used as a weapon of war in conflicts worldwide. During the Rwandan genocide it is estimated that between 250,000 and 500,000 women were raped in 100 days and that approximately 20,000 children were born as a result of rape. Recent reports from Burma indicate that Burmese soldiers have orders to rape women. 387 civilians were raped in Walikale, North Kivu in the Democratic Republic of Congo (DRC) in a 4 day period last year. In 2008 alone, the U.N. Population Fund recorded 16,000 cases of rape in DRC, two-thirds of them adolescent girls and other children, in an area where rape is vastly underreported. Imagine what the real numbers are.

Daniel Greenwood: Cutting Out the Social Safety Net Is No Sign of Bravery

In today’s New York Times, Helene Cooper wrote a news analysis advocating that President Obama slash Medicare and Social Security even though it might cost him reelection. The reporter, however, offers no reason to think that reneging on the basic commitment citizens must have to one another would make anything better. In reality, damaging our basic contract might be highly profitable to Wall Street financiers (who hope to charge commissions for managing retirement funds that Social Security now manages for far less), hedge-fund managers (who can profit as easily by betting against the American economy as by betting for it), and insurance companies (which will profit from increasingly bloated medical costs until the cost of care gets so high that no one can afford it). But cutting back on the basic guarantees we offer citizens, like cutting back on the other essential governmental services that make successful economies possible, will only make our jobs crisis worse.

Countdown with Keith Olbermann: Worst Persons 8.17.11

Until I can find another embeddable feed for Countdown, I’ll post the YouTube segments for Worst Persons and others that would be interesting.

Worst Persons: Bachmann, Lamborn & entrepreneur Peter Thiel

Ratings Agency Under Investigation By DOJ

This is a start. But will it even get off the ground considering that it might lead to the prosecution of the banksters that are the root cause of this recession.

U.S. Inquiry Is Said to Focus on S.&P. Ratings

By Louise Story

The Justice Department is investigating whether the nation’s largest credit ratings agency, Standard & Poor’s, improperly rated dozens of mortgage securities in the years leading up to the financial crisis, according to two people interviewed by the government and another briefed on such interviews.

The investigation began before Standard & Poor’s cut the United States’ AAA credit rating this month, but it is likely to add fuel to the political firestorm that has surrounded that action. Lawmakers and some administration officials have since questioned the agency’s secretive process, its credibility and the competence of its analysts, claiming to have found an error in its debt calculations.

In the mortgage inquiry, the Justice Department has been asking about instances in which the company’s analysts wanted to award lower ratings on mortgage bonds but may have been overruled by other S.& P. business managers, according to the people with knowledge of the interviews. If the government finds enough evidence to support such a case, which is likely to be a civil case, it could undercut S.& P.’s longstanding claim that its analysts act independently from business concerns.

At Rolling Stone, Matt Taibbi has a in depth article of how the SEC, itself, ending and covering up investigations into Wall St. and the banking industry, as well as, the destruction of the evidence, over the last to decades that contributed to the financial crisis:

For the past two decades, according to a whistle-blower at the SEC who recently came forward to Congress, the agency has been systematically destroying records of its preliminary investigations once they are closed. By whitewashing the files of some of the nation’s worst financial criminals, the SEC has kept an entire generation of federal investigators in the dark about past inquiries into insider trading, fraud and market manipulation against companies like Goldman Sachs, Deutsche Bank and AIG. With a few strokes of the keyboard, the evidence gathered during thousands of investigations – “18,000 … including Madoff,” as one high-ranking SEC official put it during a panicked meeting about the destruction – has apparently disappeared forever into the wormhole of history.

Under a deal the SEC worked out with the National Archives and Records Administration, all of the agency’s records – “including case files relating to preliminary investigations” – are supposed to be maintained for at least 25 years. But the SEC, using history-altering practices that for once actually deserve the overused and usually hysterical term “Orwellian,” devised an elaborate and possibly illegal system under which staffers were directed to dispose of the documents from any preliminary inquiry that did not receive approval from senior staff to become a full-blown, formal investigation. Amazingly, the wholesale destruction of the cases – known as MUIs, or “Matters Under Inquiry” – was not something done on the sly, in secret. The enforcement division of the SEC even spelled out the procedure in writing, on the commission’s internal website. “After you have closed a MUI that has not become an investigation,” the site advised staffers, “you should dispose of any documents obtained in connection with the MUI.”

Many of the destroyed files involved companies and individuals who would later play prominent roles in the economic meltdown of 2008. Two MUIs involving con artist Bernie Madoff vanished. So did a 2002 inquiry into financial fraud at Lehman Brothers, as well as a 2005 case of insider trading at the same soon-to-be-bankrupt bank. A 2009 preliminary investigation of insider trading by Goldman Sachs was deleted, along with records for at least three cases involving the infamous hedge fund SAC Capital.

The widespread destruction of records was brought to the attention of Congress in July, when an SEC attorney named Darcy Flynn decided to blow the whistle. According to Flynn, who was responsible for helping to manage the commission’s records, the SEC has been destroying records of preliminary investigations since at least 1993. After he alerted NARA to the problem, Flynn reports, senior staff at the SEC scrambled to hide the

The article is five fascinating pages that lays out the the revolving door of the SEC managers from the agency to the banks and Wall St. positions and back to the SEC as investigators. Another case of the felons in charge of the investigation of their own criminal activity.

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”.

Robert Reich: How Austerity Is Ushering in a Global Recession

Not only is the United States slouching toward a double dip, but so is Europe. New data out today show even Europe’s strongest core economies – Germany, France, and the Netherlands – slowing to a crawl.

We’re on the cusp of a global recession.

Policy makers be warned: Austerity is the wrong medicine.

We all know about the weaknesses in Europe’s “periphery” – Greece, Ireland, Spain, Portugal, and Italy. But the drop in Europe’s core is dizzying.

Germany grew at an annualized rate of just half a percent last quarter, down from 5.5 percent in the first quarter of the year. France didn’t grow at all.

What’s going on in Europe’s core? Partly it’s a loss of confidence due to debt crises in the periphery. But that’s hardly all.

Robert Sheer: The Biggest Little Hypocrite in Texas

It is unfathomable that yet another Texas blowhard governor has emerged as a front-runner for the GOP presidential nomination. The persistent appeal of the mythology of Texas as a model for the nation defies the lessons of logic and experience, and yet here we are with Rick Perry, a George W. Bush look-alike, as a prime contender to once again run our nation into the ground.

To begin with, Texas is not and never will be a model for the nation unless the other states discover similarly rich deposits of oil and natural gas that account for one-third of jobs and supply 40 percent of tax revenues within those states. If Texas energy receipts and jobs helped float Gov. Bush’s reputation, they have been nothing short of miraculous for Perry’s tenure. The price of oil rose from $25 a barrel when Lt. Gov. Perry replaced the newly elected President Bush to $147 in 2008 and has stayed at more than $80 a barrel since, to the dismay of anyone who has to buy gasoline.

Frances G. Bienecke: No to Arctic Drilling

ABOUT 55,000 gallons of oil have escaped into the North Sea since last week from a leaky pipeline operated by Royal Dutch Shell, about 100 miles off Scotland.

Last year, Americans watched in mounting fury as the oil industry and the federal government struggled for five disastrous months to contain the much larger BP blowout in the Gulf of Mexico.

Now imagine the increased danger and difficulty of trying to cope with a similar debacle off Alaska’s northern coast, where waters are sealed by pack ice for eight months of each year, gales roil fog-shrouded seas with waves up to 20 feet high and the temperature, combined with the wind chill, feels like 10 degrees below zero by late September.

That’s the nightmare the Obama administration is inviting with its preliminary approval of a plan by Shell to drill four exploratory wells beginning next summer in the harsh and remote frontier of the Beaufort Sea, off the North Slope of Alaska.

New York Times Editorial: Wrong Answers in Britain

Nothing can justify or excuse the terrifying wave of violent lawlessness that swept through London and other British cities earlier this month. Hardworking people in struggling neighborhoods were its principal victims. Public support for racial and ethnic coexistence also suffered a damaging, and we fear lasting, blow.

The perpetrators must be punished, the police must improve their riot control techniques, and Prime Minister David Cameron’s government must do all it can to make such episodes less likely in the future. We are more confident about the first two happening than the third.

Mr. Cameron, a product of Britain’s upper classes and schools, has blamed the looting and burning on a compound of national moral decline, bad parenting and perverse inner-city subcultures.

William Pfaff: Assassination as Foreign Policy

Following the Second World War, people who had been involved with the American, British and other Allies’ “Jedburgh” teams supporting the European Resistance just before the Normandy landings, and the work of the British Special Operations Executive and the American Office of Strategic Services in Asia, were among those planning for the eventuality of a Soviet invasion of Western Europe.

We know now that this invasion never was a serious risk, either while Stalin was alive or after his death in 1953, but it was a threat that preoccupied governments in the West. Before the creation of NATO, a rudimentary “stay-behind” network of Europeans was developed to provide the nucleus for resistance following such an invasion. This was the work of the U.S. State Department-controlled Office of Policy Coordination, predecessor to the CIA, and British Intelligence’s MI9 department, which had run underground networks during the war. The U.S. part of the project was later assigned to the Defense Department. The operation was called “Gladio” (a Roman short sword) and remained secret until 1990. (In Italy and certain other countries, it had been corrupted by acquiring a right-wing conspiratorial political character.)

E. J. Dionne, Jr.: The GOP’s Summer of Discontent http://www.truthdig.com/report…

Mitt Romney’s presidential campaign is a cross between the Little Engine That Could and the big chain store fending off attacks from upstart rivals.

Romney gets little love from his fellow Republicans. He’s always confronting rumors spread by people who ought to support him that the existence of such a “weak field” will soon encourage new and better candidates to get in. The “weak field” line means they think Romney just doesn’t have it.

Yet Romney hangs on, methodically chipping away, avoiding mistakes and using his financial and organizational advantages to muscle his way through one month after another.

Sam Pizzigati: Doing Debt Ceiling Battle the FDR Way

At times of national fiscal crisis, President Franklin Roosevelt ever so firmly believed, you don’t give the awesomely affluent a free pass. You pound them – and then you pound them some more.

Against a Congress where zealously rich people-friendly conservatives hold the upper hand, how much can a President of the United States committed to greater equality realistically hope to accomplish?

The answer from today’s White House: not much. Advocacy for equality has to take a backseat, Obama administration insiders insist, once fanatical friends of the fortunate in Congress recklessly put at risk our nation’s full faith and credit.

But history offers another alternative. Back in 1943, halfway through World War II, a President of the United States confronted a debt ceiling crisis eerily similar to our own. That President, Franklin Roosevelt, faced a congressional opposition to inconveniencing the rich – with higher taxes – every bit

David Bromwich: Symptoms of the Bush-Obama Presidency http://www.tomdispatch.com/pos…

The Saved and the Sacked

Is it too soon to speak of the Bush-Obama presidency?

The record shows impressive continuities between the two administrations, and nowhere more than in the policy of “force projection” in the Arab world. With one war half-ended in Iraq, but another doubled in size and stretching across borders in Afghanistan; with an expanded program of drone killings and black-ops assassinations, the latter glorified in special ceremonies of thanksgiving (as they never were under Bush); with the number of prisoners at Guantanamo having decreased, but some now slated for permanent detention; with the repeated invocation of “state secrets” to protect the government from charges of war crimes; with the Patriot Act renewed and its most dubious provisions left intact — the Bush-Obama presidency has sufficient self-coherence to be considered a historical entity with a life of its own.

The significance of this development has been veiled in recent mainstream coverage of the national security state and our larger and smaller wars. Back in 2005-2006, when the Iraqi insurgency refused to die down and what had been presented as “sectarian feuding” began to look like a war of national liberation against an occupying power, the American press exhibited an uncommon critical acuteness. But Washington’s embrace of “the surge” in Iraq in 2007 took that war off the front page, and it — along with the Afghan War — has returned only occasionally in the four years since.

 

Impact

We were all having a good inter-blog chuckle reading the reactions to an e-mail that was sent to supporters by the the New Mexico Director of OFA telling them to read the poorly written, unsubstantiated, hair-on-fire rantings of an obscure blogger/alleged activist named Spandan Chakrabarti. The article, which was supposedly written to “explain” the debt ceiling, was couched in pejoratives calling Nobel Prize winning economist Dr. Paul Krugman a “political novice” and President Obama’s critics the “Firebagger Lefty blogosphere.” It got a thumbs down reaction from several well known web sites, including this one. Now we here at Stars Hollow make no claim to having any greater on-line impact in the blogosphere than any other site, after all we are still in our “growing” stage, but to our amusement late last night, we discovered that Mr. Chakrabarti’s web site doesn’t compare to the impact of our Chief Editor, ek hornbeck. We googled Mr. Chakrabarti’s name and this is the first page of that search:

Please note, The Stars Hollow Gazette article that mentioned the name, “Spandan Chakrabarti“, is 3rd while the blogger’s own web site is further down the page in 6th.

ek hornbeck‘s reaction was “I told you his on-line impact doesn’t begin to compare with mine.”

This embarrassing kerfuffle hasn’t ended for OFA or this obscure blogger. This morning Dr. Krugman responded:

Well, at least they’re paying attention.

I would say this: on one side you have the GOP, which responds to completely crazed Tea Party demands by doing all it can to assure the hard right that it’s on its side. On the other, you have the Democratic establishment or at least part thereof, which responds to complaints from its own base that it’s going too easy on the crazies by lashing out at the base, with a bit of bearded-professor bashing on the side.

Way to strengthen your bargaining position, guys.

And the Washington Post‘s Greg Sargent added his opinion:

That said, this story does provide a window into what I think is a real problem – the nature of the Obama team’s frustration with liberal critics. The problem is that some on the Obama team don’t reckon with what it is lefty critics are actually saying. Obama advisers get angry when they think liberal critics are refusing to accept the limits placed on him by current political realities, and when lefties presume at the outset that Obama will inevitably sell out. That’s reflected in Sandoval’s angry email and in other periodic explosions of anger at the “professional left.”

But the lefty critique goes considerably further than this. It’s an argument with Obama’s team about tactics and strategy, about what might be attainable if he handled these negotiations differently. The case from these critics is if Obama approached negotiations with a harder line, it would be better politics because it would juice up the base and show indys he’s a fighter. They also advocate for this course because the current dynamic is hopelessly broken – and they think a more aggressive approach has at least a chance of broadening the field of what’s substantively possible. (There’s a segment on the left that also thinks Obama wants what’s in the deals he keeps securing, but the points above are broadly what many lefties agree on.)

Whether you agree with this critique or not – people make persuasive cases in both directions – Sandoval’s email shows a broader failure to reckon with what it is that has lefty critics so ticked off. That’s the real problem here – and it’s one of the key causes of the tension between the left and the White House.

One good thing about all this is it got the attention of the traditional media and, for what it’s worth, the White House who denounced the e-mail by their own campaign director. And it got us more attention which is always a good thing. 😉

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”.

Wednesday is Ladies’ Day

Naomi Klein: Daylight Robbery, Meet Nighttime Robbery

I keep hearing comparisons between the London riots and riots in other European cities-window smashing in Athens or car bonfires in Paris. And there are parallels, to be sure: a spark set by police violence, a generation that feels forgotten.

But those events were marked by mass destruction; the looting was minor. There have, however, been other mass lootings in recent years, and perhaps we should talk about them too. There was Baghdad in the aftermath of the US invasion-a frenzy of arson and looting that emptied libraries and museums. The factories got hit too. In 2004 I visited one that used to make refrigerators. Its workers had stripped it of everything valuable, then torched it so thoroughly that the warehouse was a sculpture of buckled sheet metal.

Back then the people on cable news thought looting was highly political. They said this is what happens when a regime has no legitimacy in the eyes of the people. After watching for so long as Saddam and his sons helped themselves to whatever and whomever they wanted, many regular Iraqis felt they had earned the right to take a few things for themselves. But London isn’t Baghdad, and British Prime Minister David Cameron is hardly Saddam, so surely there is nothing to learn there.

Ruth Marcus: Rick Perry: Tax the Poor!

“We’re dismayed at the injustice that nearly half of all Americans don’t even pay any income tax.”

-Texas Gov. Rick Perry, presidential announcement speech, Aug. 13, 2011.

Washingotn – Really? Of all the ills in the world, of all the problems with the economy, all the difficulties with the tax code, this is the one that Perry chooses to lament?

Perry’s statement conjures visions of America as Slacker Nation, where the overburdened wagon-pullers drag an increasingly heavy burden of freeloaders. His number is correct but, like other conservatives who have seized on the statistic, Perry draws from it a dangerously misleading lesson.

The nonpartisan Tax Policy Center estimates that 46.4 percent of households will owe no federal income tax in 2011. This is, for the most part, not because people have chosen to loaf. It’s because they are working but simply don’t earn enough to owe income taxes, based on the progressive structure of the tax code and provisions designed to help the working poor and lower-income seniors.

Amy Goodman: San Francisco Bay Area’s BART Pulls a Mubarak

What does the police killing of a homeless man in San Francisco have to do with the Arab Spring uprisings from Tunisia to Syria? The attempt to suppress the protests that followed. In our digitally networked world, the ability to communicate is increasingly viewed as a basic right. Open communication fuels revolutions-it can take down dictators. When governments fear the power of their people, they repress, intimidate and try to silence them, whether in Tahrir Square or downtown San Francisco.

snip

Expect hacktivist groups to support revolutions abroad, but also to assist protest movements here at home. In retaliation for BART’s cellphone shutdown, a decentralized hacker collective called Anonymous shut down BART’s website. In a controversial move, Anonymous also released the information of more than 2,000 BART passengers, to expose the shoddy computer security standards maintained by BART.

The BART police say the FBI is investigating Anonymous’ attack. I interviewed an Anonymous member who calls himself “Commander X” on the “Democracy Now!” news hour. His voice disguised to protect his anonymity, he told me over the phone: “We’re filled with indignation, when a little organization like BART … kills innocent people, two or three of them in the last few years, and then has the nerve to also cut off the cellphone service and act exactly like a dictator in the Mideast. How dare they do this in the United States of America.”

Kristina Kallas and Akila Radhakrishnan: Why Is the U.S. Waging War on Women Raped in War?

Mandatory sonograms, forced lectures by doctors, humiliating permission slips from abusive husbands, paternalistic opinions from Supreme Court Justice Kennedy, uneducated and patently stupid soundbites from Tea Partiers. That’s not the worst. In this newest wave of the war on women, let’s not forget the U.S. government’s abortion policies toward women in war.

Rape is systematically being used as a weapon of war in conflicts worldwide. During the Rwandan genocide it is estimated that between 250,000 and 500,000 women were raped in 100 days and that approximately 20,000 children were born as a result of rape. Recent reports from Burma indicate that Burmese soldiers have orders to rape women. 387 civilians were raped in Walikale, North Kivu in the Democratic Republic of Congo (DRC) in a 4 day period last year. In 2008 alone, the U.N. Population Fund recorded 16,000 cases of rape in DRC, two-thirds of them adolescent girls and other children, in an area where rape is vastly underreported. Imagine what the real numbers are.

Mary Bottari: ALEC: Facilitating Corporate Influence Behind Closed Doors

Through the American Legislative Exchange Council (ALEC), corporations pay to bring state legislators to one place, sit them down for a sales pitch on policies that benefit the corporate bottom line, then push “model bills” for legislators to make law in their states. Corporations also vote behind closed doors alongside politicians on this wishlist legislation through ALEC task forces. Notably absent were the real people who would actually be affected by many of those bills and policies.

With legislators concentrated in one city, lobbyists descend on the conference to wine-and-dine elected officials after-hours, a process simplified by legislators’ schedules being freed from home and family responsibilities. Multiple Wisconsin lobbyists for Koch Industries, the American Bail Coalition, Competitive Wisconsin, State Farm, Pfizer, and Wal Mart were in New Orleans, as were lobbyists for Milwaukee Charter School Advocates, Alliant Energy, and Johnson & Johnson. Corporations also sponsor invite-only events like the Reynolds American tobacco company’s cigar reception, attended by several Wisconsin legislators including Health & Human Services chair Leah Vukmir.

Donna Smith: How Many Dead Children for Profit?

On the right is a photo of a dead child from Pakistan, Syed Wali Shah, 7, that Michael Moore’s site featured when showing the continued prospects of civilian deaths attributable to U.S. drone strikes.  Syed is one of 168 children killed in seven years of CIA drone strikes, said the report cited, and in response to the findings, Unicef, the United Nations children’s agency, said: “Even one child death from drone missiles or suicide bombings is one child death too many.”   The same report said a minimum of 385 civilians  (including the children) were killed over that seven-year period and that makes at least 52 civilians killed by these strikes each year or one each week.

It is a horrific reality that we (and many of our allies in the civilized and militarized world) participate in killing children.  It is right that we must look at their faces and hold our own souls and that of our elected officials and those who order the killings to account.

When I read about another child’s preventable death in Colorado and saw his face (also from a linked article on Michael Moore’s site), I waited a couple days to compose my thoughts rather than diminish either death or the numbers of deaths from decisions and actions by adults in power – whether those deaths are by acts of commission or omission or whether those deaths are in a distant foreign warzone or one in Denver or Dallas or Des Moines.

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”.

Wednesday is Ladies’ Day

Naomi Klein: Daylight Robbery, Meet Nighttime Robbery

I keep hearing comparisons between the London riots and riots in other European cities-window smashing in Athens or car bonfires in Paris. And there are parallels, to be sure: a spark set by police violence, a generation that feels forgotten.

But those events were marked by mass destruction; the looting was minor. There have, however, been other mass lootings in recent years, and perhaps we should talk about them too. There was Baghdad in the aftermath of the US invasion-a frenzy of arson and looting that emptied libraries and museums. The factories got hit too. In 2004 I visited one that used to make refrigerators. Its workers had stripped it of everything valuable, then torched it so thoroughly that the warehouse was a sculpture of buckled sheet metal.

Back then the people on cable news thought looting was highly political. They said this is what happens when a regime has no legitimacy in the eyes of the people. After watching for so long as Saddam and his sons helped themselves to whatever and whomever they wanted, many regular Iraqis felt they had earned the right to take a few things for themselves. But London isn’t Baghdad, and British Prime Minister David Cameron is hardly Saddam, so surely there is nothing to learn there.

Katrina vander Heuvel: The real grand bargain Washington should seek

“Pressure’s on for the deficit panel,” read a headline in The Post. President Obama urges legislators to pit country over party. An establishment chorus calls for courage to take on Socuial Security and Medicare and to find more revenue. The downgrading of U.S. debt by Standard & Poor’s; the stock market’s spasms; polls showing growing disgust of Americans with politicians of all stripes – all are invoked to push the 12 legislators on the “supercommittee” to reach agreement on another $2.2 trillion in deficit reduction by Nov. 23, when they are due to report.

Amid the din, House Minority Leader Nancy Pelosi actually spoke some common sense in public, something that, if not quite extinct in today’s Washington, is certainly endangered. Naming her three picks to the committee last week, Pelosi urged the group to focus on “economic growth and job creation,” suggesting that its members should “make decisions regarding investments, cuts and revenues and their timing to stimulate growth, while reducing the deficit.”

Ruth Marcus: Rick Perry: Tax the Poor!

“We’re dismayed at the injustice that nearly half of all Americans don’t even pay any income tax.”

-Texas Gov. Rick Perry, presidential announcement speech, Aug. 13, 2011.

Washingotn – Really? Of all the ills in the world, of all the problems with the economy, all the difficulties with the tax code, this is the one that Perry chooses to lament?

Perry’s statement conjures visions of America as Slacker Nation, where the overburdened wagon-pullers drag an increasingly heavy burden of freeloaders. His number is correct but, like other conservatives who have seized on the statistic, Perry draws from it a dangerously misleading lesson.

The nonpartisan Tax Policy Center estimates that 46.4 percent of households will owe no federal income tax in 2011. This is, for the most part, not because people have chosen to loaf. It’s because they are working but simply don’t earn enough to owe income taxes, based on the progressive structure of the tax code and provisions designed to help the working poor and lower-income seniors.

Amy Goodman: San Francisco Bay Area’s BART Pulls a Mubarak

What does the police killing of a homeless man in San Francisco have to do with the Arab Spring uprisings from Tunisia to Syria? The attempt to suppress the protests that followed. In our digitally networked world, the ability to communicate is increasingly viewed as a basic right. Open communication fuels revolutions-it can take down dictators. When governments fear the power of their people, they repress, intimidate and try to silence them, whether in Tahrir Square or downtown San Francisco.

snip

Expect hacktivist groups to support revolutions abroad, but also to assist protest movements here at home. In retaliation for BART’s cellphone shutdown, a decentralized hacker collective called Anonymous shut down BART’s website. In a controversial move, Anonymous also released the information of more than 2,000 BART passengers, to expose the shoddy computer security standards maintained by BART.

The BART police say the FBI is investigating Anonymous’ attack. I interviewed an Anonymous member who calls himself “Commander X” on the “Democracy Now!” news hour. His voice disguised to protect his anonymity, he told me over the phone: “We’re filled with indignation, when a little organization like BART … kills innocent people, two or three of them in the last few years, and then has the nerve to also cut off the cellphone service and act exactly like a dictator in the Mideast. How dare they do this in the United States of America.”

Kristina Kallas and Akila Radhakrishnan: Why Is the U.S. Waging War on Women Raped in War?

Mandatory sonograms, forced lectures by doctors, humiliating permission slips from abusive husbands, paternalistic opinions from Supreme Court Justice Kennedy, uneducated and patently stupid soundbites from Tea Partiers. That’s not the worst. In this newest wave of the war on women, let’s not forget the U.S. government’s abortion policies toward women in war.

Rape is systematically being used as a weapon of war in conflicts worldwide. During the Rwandan genocide it is estimated that between 250,000 and 500,000 women were raped in 100 days and that approximately 20,000 children were born as a result of rape. Recent reports from Burma indicate that Burmese soldiers have orders to rape women. 387 civilians were raped in Walikale, North Kivu in the Democratic Republic of Congo (DRC) in a 4 day period last year. In 2008 alone, the U.N. Population Fund recorded 16,000 cases of rape in DRC, two-thirds of them adolescent girls and other children, in an area where rape is vastly underreported. Imagine what the real numbers are.

Mary Bottari: ALEC: Facilitating Corporate Influence Behind Closed Doors

Through the American Legislative Exchange Council (ALEC), corporations pay to bring state legislators to one place, sit them down for a sales pitch on policies that benefit the corporate bottom line, then push “model bills” for legislators to make law in their states. Corporations also vote behind closed doors alongside politicians on this wishlist legislation through ALEC task forces. Notably absent were the real people who would actually be affected by many of those bills and policies.

With legislators concentrated in one city, lobbyists descend on the conference to wine-and-dine elected officials after-hours, a process simplified by legislators’ schedules being freed from home and family responsibilities. Multiple Wisconsin lobbyists for Koch Industries, the American Bail Coalition, Competitive Wisconsin, State Farm, Pfizer, and Wal Mart were in New Orleans, as were lobbyists for Milwaukee Charter School Advocates, Alliant Energy, and Johnson & Johnson. Corporations also sponsor invite-only events like the Reynolds American tobacco company’s cigar reception, attended by several Wisconsin legislators including Health & Human Services chair Leah Vukmir.

Donna Smith: How Many Dead Children for Profit?

On the right is a photo of a dead child from Pakistan, Syed Wali Shah, 7, that Michael Moore’s site featured when showing the continued prospects of civilian deaths attributable to U.S. drone strikes.  Syed is one of 168 children killed in seven years of CIA drone strikes, said the report cited, and in response to the findings, Unicef, the United Nations children’s agency, said: “Even one child death from drone missiles or suicide bombings is one child death too many.”   The same report said a minimum of 385 civilians  (including the children) were killed over that seven-year period and that makes at least 52 civilians killed by these strikes each year or one each week.

It is a horrific reality that we (and many of our allies in the civilized and militarized world) participate in killing children.  It is right that we must look at their faces and hold our own souls and that of our elected officials and those who order the killings to account.

When I read about another child’s preventable death in Colorado and saw his face (also from a linked article on Michael Moore’s site), I waited a couple days to compose my thoughts rather than diminish either death or the numbers of deaths from decisions and actions by adults in power – whether those deaths are by acts of commission or omission or whether those deaths are in a distant foreign warzone or one in Denver or Dallas or Des Moines.

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”.

Paul Krugman: Downgrade of US Credit Rating Is Baseless – ­and Outrageous

Standard & Poor’s has gone ahead with the threatened downgrade of the United States’ credit rating. It’s a strange situation.

On one hand, there is a case to be made that the madness of the right has made America a fundamentally unsound nation. And yes, it is the madness of the right: If not for the extremism of anti-tax Republicans, we would have no trouble reaching an agreement that would ensure long-run solvency.

On the other hand, it’s hard to think of anyone less qualified to pass judgment on America than the rating agencies.

The people who rated subprime-backed securities are now declaring that they are the judges of fiscal policy? Really?

Dean Baker: President Obama Joins the Cult of Economics Deniers

President Obama has abandoned evidence-based economics to return the US to growth in favor of the politics of deficit-cutting

A front page story in Sunday’s New York Times gave the country the bad news. President Obama is no longer paying attention to economists and economics in designing economic policy. Instead, he will do what his campaign people tell him will get him re-elected, presumably by getting lots of money from Wall Street.

The article said that President Obama intends to focus on reducing government spending and cutting programs like social security and Medicare. This is in spite of the fact that: “A wide range of economists say the administration should call for a new round of stimulus spending, as prescribed by mainstream economic theory, to create jobs and promote growth.”

In other words, President Obama intends to ignore the path for getting the economy back to full employment that most economists advocate. Instead, he is going to cut government spending – because his chief of staff and former JP Morgan vice president Bill Daley and his top campaign adviser David Plouffe both say this is a good idea.

New York Times Editorial:  The Clear Case for the Gas Tax

Unless Congress extends it, the 18.4 cents-a-gallon federal gas tax will expire on Sept. 30. Allowing that to happen would be tremendously destructive. It would bankrupt the already stressed Highway Trust Fund, with devastating effects on the country’s highways, bridges, mass transit systems and the economy as a whole.

Reports suggest that some House Republicans may push to let the tax lapse or use the threat of expiration as leverage in the budget wars. This is a dangerous idea. If anything, the tax should rise to maintain a system that constantly needs upkeep – the backlog of bridges needing repair is estimated at $72 billion – creates jobs and encourages drivers to buy more fuel-efficient cars.

Steven Rattner: Republican Extremism, Bad Economics

IN the middle of all the debt default drama and stock market turbulence, the leading Republican presidential candidates have begun to fill in the shadowy outlines of their positions on major economic issues.

And what a picture it is, a philosophy oriented around shrinking the role of the federal government in every imaginable way, by slashing spending, cutting taxes and halting or rescinding regulations. Their mantra is repeal and retrenchment, devoid of new initiatives or a positive agenda.

Some of these views are to the right even of the Tea Party; they amount to the most radically conservative positions of any set of candidates at least since Barry M. Goldwater in 1964.

John Nichols: FDR Went to Wisconsin to Battle ‘Economic Royalists,’ But Obama Avoids the State and the Fight http://www.thenation.com/blog/…

President Obama is interrupting his long vacation to bus across the battleground states of the Midwest this week, on an officially “non-political” journey that his aides obviously hope will renew a connection with the people who overwhelmingly elected him president in 2008. It is an essential endeavor, as Obama’s uncertain tenure has frustrated voters who once saw him as a transformational leader but now wonder whether there is a point to his presidency.  

The disconnect between Obama and his base has grown more profound this year, as he has focused on the compromises of Washington while working people in Wisconsin, Michigan, Ohio and other states have engaged in “Which side are you on?” fights against a Republican austerity agenda that threatens the very underpinnings of civil society and democratic experiment.

Eugene Robinson: Straw Poll Winner – Obama

Ames, Iowa – Strolling through the pageant of unhealthy food and unsound ideology that is the Iowa Straw Poll, amid the good-natured Republicans who swept Michele Bachmann to an impressive victory, I couldn’t help but reflect that this quadrennial exercise is one crazy way to pick a major-party candidate for president.

You’ll note that I used the words “Michele Bachmann” and “president” in the same sentence. That someone with views as extreme as Bachmann’s could win — and that Ron Paul, who seems to inhabit his own little reality, could finish second — would seem to rob the straw poll of all but comic value, making it analogous to the opening joke a dinner speaker might tell to warm up a stone-faced audience. But the ritual is serious business, as poor Tim Pawlenty found out. Less than 24 hours after he finished a distant third in the straw poll, “former candidate” became his new honorific.

Long before the results were tallied, it seemed clear that Pawlenty was in trouble. Like the other candidates who participated Saturday, he had a big tent on the grounds of the Iowa State University coliseum where voters could enjoy free food and entertainment. People were happy to line up for the Famous Dave’s barbecue that Pawlenty was serving, but they didn’t stay long — and when they walked away, they weren’t wearing the green Pawlenty T-shirts that signaled support. By mid-afternoon, volunteers were glum.

 

Load more