Tag: TMC Politics

Jul 23 2013

Chris Hedges: Questioning Everything

In the first of a seven part series, author and journalist, Chris Hedges sits down with Real News Network’s Paul Jay discussing how urban poverty led him to question everything and his commitment to the social movement:

I wanted to be an inner-city minister. You know, I was at the time. I was planning on being ordained. I was planning on spending my life in the inner-city.

And I had a kind of clash (and I write about it in the first chapter of my book Losing Moses on the Freeway: The 10 Commandments in America) with the institutional church and liberal institutions like Harvard Divinity School that like the poor but didn’t like the smell of the poor. They spent a lot of time talking about empowering people they never met. And that hypocrisy was something that I had great difficulty with. [..]

And I’ve always placed myself in or amongst the oppressed. Whether that was in Gaza, whether that was in El Salvador, whether that was in Sarajevo, I’ve always positioned myself as a reporter in a place where I was amplifying or giving voice to those who were being brutally oppressed. [..]

I would say actually the really seminal moment was moving into the inner city and watching what we do to our poor, the warehousing of our poor, the shattering of lives, especially the lives of children, of poor children. That maybe rattled me more than almost anything I saw. And I’ve seen horrific things. I remember going back to the chaplain at Colgate after a few months of living in the projects and just walking into his office and sitting down and saying, are we created to suffer? And his answer was: is there any love that isn’t?

And I think for a white person of relative privilege to confront the cruelty of what we do to poor people of color in this country and to begin to understand institutional forms of racism, all the mechanisms by which we ensure that the poor remain poor in, you know, what Malcolm X and Martin Luther King correctly called these internal colonies really rattled me, really shook me. It made me question all sorts of things–the myth we tell ourselves about ourselves, the nature of capitalism, the nature of racism, exploitation.

So those two and a half years I spent in Roxbury were quite profound–not that, of course, I wasn’t stunned at the evils of empire in places like El Salvador or Gaza or anywhere else. But Roxbury was quite a shock for me.



Full transcript can be read here

Jul 22 2013

At Least Obama Now Honest About Trashing the Fourth Amendment

On Thursday the White House was mum on whether they would seek renewal of the “secret” court order that allows the NSA to collect the phone records and e-mails of Americans without due process.

Officials declined to discuss what action they intend to take about the order at the center of the current surveillance scandal, which formally expires at 5pm Friday. [..]

On Thursday, the administration would not answer a question first posed by the Guardian six days ago about its intentions to continue, modify or discontinue the Verizon bulk-collection order. The White House referred queries to the Justice Department. “We have no announcement at this time,” said Justice Department spokesman Brian Fallon. The NSA and office of the Director of National Intelligence did not respond to questions.

At a hearing on Wednesday before the House Judiciary Committee, the top lawyer for the director of national intelligence, Robert S Litt, was asked by the chairman, Bob Goodlatte, if the administration thought if a surveillance program “of this magnitude … could be indefinitely kept secret from the American people?”

Litt answered, “well, we tried.”

Since the cat is out of the bag, so to speak, the White House decided on Friday to come clean that they would continue to violate the Fourth Amendment with impunity:

In an unprecedented move prompted by the Guardian’s disclosure in June of the NSA’s indiscriminate collection of Verizon metadata, the Office of the Director of National Intelligence (ODNI) has publicly revealed that the scheme has been extended yet again.

The statement does not mention Verizon by name, nor make clear how long the extension lasts for, but it is likely to span a further three months in line with previous routine orders from the secret Foreign Intelligence Surveillance Court (Fisa). [..]

The decision to go public with the latest Fisa court order is an indication of how the Obama administration has opened up the previously hidden world of mass communications surveillance, however slightly, since former NSA contractor Edward Snowden exposed the scheme to the Guardian.

Earlier on Friday, ODNI lawyer, Litt, told the Brookings Institute that the intelligence chiefs would consider NSA data collection changesbut continued defending the unconstitutional program:

“It is, however, not the only way that we could regulate intelligence collection,” Litt said. “We’re currently working to declassify more information about our activities to inform that discussion,” particularly concerning the bulk collection of Americans’ telephone records. [..]

“That could be a significant problem in a fast-moving investigation where speed and agility are critical, such as the plot to bomb the New York City subways in 2009,” Litt said.

But Litt also noted: “All of the metadata we get under this program is information that the telecommunications companies obtain and keep for their own business purposes.”

He acknowledged in the beginning of his speech: “There is an entirely understandable concern that the government may abuse this power.”

In response to a question about the legality of the program, Litt also suggested that congress could pass a law permitting the NSA to collect the records.

“You’d have to make sure that it enables the kind of flexibility and operational agility that we need to conduct the collection,” Litt said. “We don’t think a new statute is necessary. We think we have the authority. But obviously, if Congress thinks a new statute is appropriate for this, Congress can provide that.”

Brilliant, let’s pass another unconstitutional law. Way to go, Barack.

Jul 22 2013

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

Paul Krugman: Detroit, the New Greece

When Detroit declared bankruptcy, or at least tried to – the legal situation has gotten complicated – I know that I wasn’t the only economist to have a sinking feeling about the likely impact on our policy discourse. Was it going to be Greece all over again?

Clearly, some people would like to see that happen. So let’s get this conversation headed in the right direction, before it’s too late.

O.K., what am I talking about? As you may recall, a few years ago Greece plunged into fiscal crisis. This was a bad thing but should have had limited effects on the rest of the world; the Greek economy is, after all, quite small (actually, about one and a half times as big as the economy of metropolitan Detroit). Unfortunately, many politicians and policy makers used the Greek crisis to hijack the debate, changing the subject from job creation to fiscal rectitude.

New York Times Editorial Board: To Make a Safe City Safer

The next mayor’s challenge will be to meet high expectations for protecting the public – and not just against street crime, but terrorism, too – at a time of strapped budgets and with a depleted force of about 34,500 officers, down from a peak of about 40,000 in 2000. Though crime has been falling for a long time, the trend is not automatic or irreversible: data from this month, for example, show rapes, felony assaults and grand larcenies inching up.

The new mayor will also have to curb unconstitutional policing – the widespread harassment of innocent black and Hispanic men and surveillance of law-abiding Muslims – that has inflamed resentment across the city.

This won’t be easy. Still, it’s a chance for a fresh start, for new strategies that keep the peace, respect the Constitution and heal the divide between police and public.

William K. Black: Conservatives and Libertarians Should Support the Return of Glass-Steagall

Glass-Steagall prevented a classic conflict of interest that we know frequently arises in the real world. Commercial banks are subsidized through federal deposit insurance. Most economists support providing deposit insurance to commercial banks for relatively smaller depositors. I am not aware of any economists who support federal “deposit” insurance for the customers of investment banks or the creditors of non-financial businesses.

It violates core principles of conservatism and libertarianism to extend the federal subsidy provided to commercial banks via deposit insurance to allow that subsidy to extend to non-banking operations. Absent Glass-Steagall, banks could purchase anything from an aluminum company to a fast food franchise and (indirectly) fund its acquisitions and operations with federally-subsidized deposits. If you run an independent aluminum company or fast food franchise do you want to have to compete with a federally-subsidized rival?

Robert Kuttner: Breaking the Glass Ceiling at the Federal Reserve

Larry Summers is running hard to succeed Ben Bernanke as chairman of the Federal Reserve. This is a terrible idea, on several grounds (which I’ll discuss in a moment.) Even so, I’d place the odds of President Obama giving Summers the job at 50-50 or better, unless progressive Democrats get mobilized, and fast. [..]

The prime alternative to Summers is Fed Vice Chair Janet Yellen, who is very much like Bernanke, only better. She has gone even further in expressing concern for the economy’s persistent unemployment and in criticizing the bipartisan obsession with deficit reduction. I wrote about Yellen’s stellar performance for the Huffington Post back in February.

Yellen deserves to be Fed chair purely on the merits. It pains me to write that if she gets the job, one other major contrast with Summers will weigh in her favor. She is female.

Robert Reich: Detroit, and the Bankruptcy of America’s Social Contract

One way to view Detroit’s bankruptcy — the largest bankruptcy of any American city — is as a failure of political negotiations over how financial sacrifices should be divided among the city’s creditors, city workers, and municipal retirees — requiring a court to decide instead. It could also be seen as the inevitable culmination of decades of union agreements offering unaffordable pension and health benefits to city workers.

But there’s a more basic story here, and it’s being replicated across America: Americans are segregating by income more than ever before. Forty years ago, most cities (including Detroit) had a mixture of wealthy, middle-class, and poor residents. Now, each income group tends to lives separately, in its own city — with its own tax bases and philanthropies that support, at one extreme, excellent schools, resplendent parks, rapid-response security, efficient transportation, and other first-rate services; or, at the opposite extreme, terrible schools, dilapidated parks, high crime, and third-rate services.

William Greider: Stop Larry Summers Before He Messes Up Again

Washington insiders are spreading an alarming news alert. Barack Obama, I am told, is on the brink of making a terrible mistake by appointing Lawrence Summers as the new chairman of the Federal Reserve. That sounds improbable, since Summers is a toxic retread from the old boys’ network and a nettlesome egotist who offended just about everyone during his previous tours in government. More to the point, Summers was a central player in the grave governing errors that led to the financial collapse and a ruined economy.

Surely not, I thought, when I heard the gossip. But my source heard it from the White House. Obama’s senior economic advisers-still dominated by Clintonistas and aging acolytes of Robert Rubin-are pushing the president to choose Summers as the successor to Ben Bernanke, whose term ends in January. And they are urging Obama to make the announcement right now, before the opposition can get organized.

Jul 22 2013

In Memoriam: Helen Thomas 1920 – 2013

Journalism and the world lost one of its greatest on Saturday, the “Dean of the White House Correspondents” Helen Thomas died at her home in Washington. She was 92.

She had a lot of “firsts” for women in journalism. She broke down the walls of the traditional “old boys’ clubs” of the Beltway:

Thomas was the first female officer of the National Press Club, the first female member and president of the White House Correspondents’ Association, and the first female member of the Gridiron Club [..]

In 1962, Thomas convinced Kennedy to not attend the annual dinners held for the White House correspondents and photographers if they disallowed women from attending. Kennedy moved for the dinners to be combined into one event, with women allowed to attend. In 1970, UPI named Thomas their chief White House correspondent, making her the first woman to serve in the position. She was named the chief of UPI’s White House bureau in 1974.

Thomas was the only female print journalist to travel to China with President Richard Nixon during his 1972 visit to China. During the Watergate scandal, Martha Beall Mitchell, wife of United States Attorney General John N. Mitchell, frequently called Thomas to discuss how the Nixon administration was using Mitchell as a scapegoat.

She was the only member of the White House press corp to have her own seat, all the other seats are designated for the media outlets. She often reminded her colleagues, “We are not here to be their friends.”

She was remembered fondly by many this weekend.

She is a the roll model for all us who report the news,

We are the watch dogs

~Helen Thomas~

Thank you, Helen Thomas

Jul 21 2013

Punting the Pundits: Sunday Preview Edition

“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 Steve Kornacki: This Sunday;s guests were not listed.

This Week with George Stephanopolis: Guests are; Sen. Ted Cruz (R-TX); and Detroit Mayor David Bing.

Guests at the roundtable are : Former Obama White House Green Jobs Adviser Van Jones; former Bush White House Press Secretary Dana Perino; ABC News’ Cokie Roberts; ABC News Political Analyst and Special Correspondent Matthew Dowd;  ABC News Chief White House Correspondent Jonathan Karl; and ABC News Senior Justice Correspondent Pierre Thomas.

Face the Nation with Bob Schieffer: Mr Schieffer’s guest is Speaker of the House John Boehner.

Sitting at the roundtable are: The Washington Post‘s David Ignatius, USA Today‘s Susan Page, TIME‘s Michael Scherer and The Wall Street Journal‘s Gerald Seib.

The Chris Matthews Show: On the panel this Sunday are Chuck Todd, NBC News Chief White House Correspondent; Katty Kay, BBC Washington Correspondent; Kelly O’Donnell, NBC News Capitol Hill Correspondent; and David Ignatius, The Washington Post Columnist.

Meet the Press with David Gregory: On MTP this Sunday is Governor Rick Snyder (R-MI).

On a special panel discussing the aftermath of the Zimmerman verdict are Marc Morial, President of the National Urban League and former Mayor of New Orleans; Rep. Marcia Fudge (D-OH), Chair of the Congressional Black Caucus; Tavis Smiley, Host of the “Tavis Smiley Show” on PBS; Charles Ogletree, Professor at Harvard Law School; and Michael Steele, MSNBC Political Analyst and former Chairman of the Republican National Committee.

At the political roundtable are : Marc Morial; along with former Democratic Governor of Michigan Jennifer Granholm; NBC’s Political Director and Chief White House Correspondent, Chuck Todd; and columnist for the New York Times David Brooks.

State of the Union with Candy Crowley: Ms. Crowley’s guests are; Congressional Hispanic Caucus member Xavier Beccerra and Congressional Black Caucus member Cedric Richmond.

On a special panel discussing race and justice are  New York Times columnist Charles Blow; former House Speaker Newt Gingrich; NAACP Legal Defense and Educational Fund president Sherrilyn Ifill; and conservative commentator Crystal Wright.

Sen. John McCain (R-AZ) offers his take on sexual assaults in the military, U.S. involvement in Syria, and the path to immigration reform in an exclusive interview.

Jul 21 2013

What We Now Know

On this week’s segment of “What We Know Now,” Steve, along woth his panel guests Molly Ball, The Atlantic; Bob Herbert, Demos.org; Perry Bacon, Jr., TheGrio.com; and Carries Sheffield, The Daily Caller, discus what they have learned this week.

David Young Says Chuck Schumer Should Convert To Christianity, The Iowa Republican Reports

by Chris Gentilviso, The Huffington Post

Amid a crowded field of candidates to replace retiring Sen. Tom Harkin (D-Iowa), one Republican appears to have separated himself from the pack with a wacky proposal involving Jesus and Sen. Chuck Schumer (D-N.Y.).

David Young, the longtime chief of staff for Sen. Chuck Grassley (R-Iowa), appeared at Monday’s Faith and Freedom Coalition event in Cedar Rapids, Iowa. The Iowa Republican reports that when asked about the Christian “brotherhood,” Young vowed that if elected to the U.S. Senate, he’d invite Schumer to share the good news of Jesus Christ.

Marjorie Margolies, Chelsea Clinton’s Mother-In-Law, Fundraises Without Help From The Clintons

by Paul Blumental, The Huffington Post

Marjorie Margolies reported on Monday that she had raised $185,345 in her bid to reclaim the Pennsylvania congressional seat she lost in 1994, but she did so without contributions from her in-laws: Bill, Hillary and Chelsea Clinton.

Chelsea Clinton married Margolies’ son, Marc Mezvinsky, in 2010. Mezvinsky, who works for a hedge fund, did not donate to his mother’s campaign either.

Jul 20 2013

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

Jon Walker: How Can Obama Deliver This Speech on Racial Profiling While Considering Ray Kelly for DHS?

In response to the George Zimmerman verdict, today President Obama delivered remarks on race and racial profiling. In the speech he called on police forces to address the problem of racial profiling. [..]

It is shocking that the same man who delivered this speech just days earlier called New York Police Commissioner Ray Kelly one of the best law enforcement professionals there is and is considering appointing him to head the Department of Homeland Security.

Yochai Benkler: Bradley Manning ‘aiding the enemy’ charge is a threat to journalism

Without an informed and free press, there cannot be an enlightened people. That’s what this trial is really about

Thursday, Colonel Denise Lind, the judge in the Bradley Manning court martial, refused to dismiss the “aiding the enemy” charge. The decision is preliminary, and the judge could still moderate its effect if she finds Manning not guilty. But even if she ultimately acquits Manning, the decision will cast a long shadow on national security journalists and their sources. [..]

Thursday’s decision was preliminary and made under a standard that favors the prosecution’s interpretation of the facts. The judge must still make that ultimate decision on guilt based on all the evidence, including the defense, under the strict “beyond a reasonable doubt” standard.

Dean Baker: In Detroit’s Bankruptcy Why Are Contracts with Workers a Joke?

The decision by the City of Detroit to declare bankruptcy came as a shock to many. Detroit, which was once the nation’s fifth-biggest city, is by far the largest government in the United States ever to declare bankruptcy. While Detroit has been seeing a falling population and worsening finances for five decades, bankruptcy is still a dramatic step.

One part of this story that is striking is the discussion in the media of how workers’ pensions will fare in bankruptcy. Most articles seem to take it for granted that pensions will face large cuts, with some implying that retired workers may be in the same situation as unsecured creditors, getting just a few cents for each dollar owed.

This is striking because Michigan’s state constitution seems to say as clearly as possible that pension payments are a contractual obligation of the state.

Ryan Budish: Tech firms should be allowed to publish more data on US surveillance

The ‘deal’ the government offered tech firms to publish limited data is a joke. We need real transparency

Following the leaks about NSA surveillance, people demanded information about the scope and scale of the US government’s data collection. In response, the administration offered internet companies a deal: they could publish the number of secret national security requests, but only if it was aggregated with data about non-secret, criminal requests.

Facebook, Apple, Microsoft, and Yahoo! immediately accepted and published aggregate data. But Google rejected the offer, stating that “lumping the two categories together would be a step back for users”.

Google is right. Americans are understandably concerned that their digital privacy may be eroded through the government’s ham-handed approach to foreign surveillance. But fixating on the accidental collection of domestic communications during foreign surveillance risks ignoring the ways that the US government legally and intentionally surveils the digital communications of its citizens. We must be careful that, in our rush to answer questions about Prism, we don’t endanger the gains we have made over the past few years in understanding our domestic surveillance apparatus.

Steve Martinot: Whose Ground Is It, Anyway?

Zimmerman as Role Model for US Government

The Travesty goes like this.

The grounds for Zimmerman’s acquittal were that he shot someone, and killed him. Pure and simple.

The grounds for Trayvon Martin’s having been killed is that he decided to defend himself against someone stalking him.

Does it make sense? No. Is it true? Yes.

There’s nothing to understand. That’s just the way it is. But if we do want to understand it, we have to look at the “role model.” Or rather, at The Role Model.

The Role Model is the US, the War Making Power.

Mark LeVine: Clear and present dangers of Janet Napolitano’s appointment as UC President

With no experience in higher education, the appoint of Napolitano raises concerns about the future of the UC system.

The now confirmed appointment of Department of Homeland Security Secretary Janet Napolitano as President of the University of California should raise loud alarms for anyone concerned about the present state and future development of UC, for three reasons. [..]

As one of the world’s premier public university systems, UC’s highest priority must be the production of knowledge and the protection of the free exchange of ideas without which no university can fulfill its public mandate to educate future generations and help sustain a healthy and robust economy. Since the Regents and Secretary Napolitano were unwilling or unable to offer a vigorous defence of her experience, qualifications, and views before the Regents’ vote, and allow the university community a meaningful role in determining the wisdom and viability of her nomination, UC faculty should consider ourselves served notice that the UC to which so many of us have devoted our professional lives has finally been put out to pasture, and that a very different institution, administered by people with increasingly little experience, understanding or even concern for the core purposes and ethics of higher education, is emerging in its place. The question is, What are we going to do about it?

Jul 20 2013

Edward R. Murrow: “Harvest of Shame”

Watch Edward R. Murrow’s ‘Harvest of Shame’

by John Light, Moyers & Company

The people who harvest our fruits and vegetables are, today, among the country’s most marginalized. They earn well below the poverty line and spend a substantial portion of the year unemployed. They do not have the right to overtime pay or to collective bargaining with their employers. In some cases, workers have faced abuses that fall under modern-day slavery statutes. “The extreme is slavery,” observed Senator Bernie Sanders (I-Vt.), while visiting farm workers in Florida. “The norm is disaster.” [..]

In 1960, legendary broadcaster Edward R. Murrow and his producers Fred Friendly and David Lowe attempted to draw public attention to this state of affairs with the documentary Harvest of Shame. The film – an hour-long portrait of the “humans who harvest the food for the best-fed people in the world” – aired on CBS the day after Thanksgiving, 1960.

Jul 19 2013

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

Ta-Nehesi Coates: Raising the Wrong Profile

In 2003, State Senator Barack Obama spearheaded a bill through the Illinois legislature that sought to put the clamps on racial profiling. Obama called racial profiling “morally objectionable,” “bad police practice” and a method that mainly served to “humiliate individuals and foster contempt in communities of color.” [..]

That is why it is hard to comprehend the thinking that compelled the president, in a week like this, to flirt with the possibility of inviting the New York City Police Commissioner, Ray Kelly, the proprietor of the largest local racial profiling operation in the country, into his cabinet.

Paul Krugman: Hitting China’s Wall

All economic data are best viewed as a peculiarly boring genre of science fiction, but Chinese data are even more fictional than most. Add a secretive government, a controlled press, and the sheer size of the country, and it’s harder to figure out what’s really happening in China than it is in any other major economy.

Yet the signs are now unmistakable: China is in big trouble. We’re not talking about some minor setback along the way, but something more fundamental. The country’s whole way of doing business, the economic system that has driven three decades of incredible growth, has reached its limits. You could say that the Chinese model is about to hit its Great Wall, and the only question now is just how bad the crash will be.

Robert L. Borosage: Fed Chair to Congress: Stop Killing Jobs

In his congressional testimony yesterday, Fed Chair Ben Bernanke called out the Congress. He warned them to stop the reckless and mindless spending cuts that are killing jobs and growth. Their stupidity, he suggested, poses the biggest threat to Americans going back to work.

Of course, he didn’t phrase it quite like that. His testimony was purposefully vanilla, designed not to cause indigestion on Wall Street. But that didn’t stop him from indicting the Congress. In his first sentence he stated:

“The economic recovery has continued at a moderate pace in recent quarters despite the strong headwinds created by federal fiscal policy.”

Translated: If you idiots abandon your destructive austerity fetish, we might be able to put people back to work.

Richard (RJ) Eskow: McDonald’s Accidentally Served Up a Minimum Wage ‘McManifesto’

Marie Antoinette, meet Ronald McDonald.

A lot of people are angry about McDonald’s new financial advice website for employees, an ill-conceived project which drips with “let them eat cake” insouciance. “Every dollar makes a difference,” McDonald’s lectures its struggling and often impoverished workers.

But it’s time to ditch the resentment and offer McDonald’s a word of thanks. It has just performed an invaluable service for campaigns like Raise the Minimum Wage and petitions like this one by serving up a timely and exhaustively researched brief on their behalf. This new website provides invaluable data for a living-wage “McManifesto.”

You want fries with that?

Eugene Robinson: Obama is the wrong person to lead discussion about race

We should talk honestly about unresolved racial issues, such as those exposed by the Trayvon Martin case, but President Obama is not the best person to lead the discussion. Through no fault of his own, he might be the worst. [..]

The designation “first black (fill in the blank)” always brings with it unfair burdens, and one of Obama’s – he bears many – is that almost anything he says about race will be seen by some as favoring the interests of black Americans over white Americans.

At this point in his presidency, Obama could ignore this absurd reality and say whatever he wants. He must be sorely tempted. But the unfortunate fact is that if his aim is to promote dialogue about race, speaking his mind is demonstrably counterproductive.

Dale Weihoff: Fruits of NAFTA

Drug cartels existed long before the passage of the North American Free Trade Agreement (NAFTA) in 1994, but not drug cartels as we know them today. As we approach the 20th anniversary of NAFTA, we can no longer ignore its contribution to building a powerful and violent criminal enterprise that has brought Mexico close to being labeled a failed state and made the Mexican-U.S. border into a war zone.

Most often when we analyze trade agreements, the focus is on trade volumes, jobs and manufacturing statistics, poverty levels and immigration–all extremely important ways to understand the impact of neoliberal policies bequeathed to us from Ronald Reagan and Bill Clinton. But to fully appreciate how devastating free trade has been, we need to look more closely at the aftermath of free trade on the bonds that hold communities together. It starts out small, a single thread that eventually leads to unraveling the whole cloth.

Jul 19 2013

Wall Street’s Biggest Fear: Eliot Spitzer

Why is the financial world freaking out over the possibility of former New York State Governor Eliot Spitzer becoming New York City’s Comptroller? Professor of Political Science at the University of Massachusetts Thomas Ferguson laid it out in his article republished at naked capitalism:

Who, when the Justice Department, Congress, and the Securities and Exchange Commission all defaulted in the wake of a tidal wave of financial frauds, creatively used New York State’s Martin Act to go where they wouldn’t and subpoena emails and corporate records of the malefactors of great wealth, winning convictions and big settlements.

Who in 2005, as New York State Attorney General, actually sued AIG instead of thinking up ways to hand it billions of dollars of taxpayers’ money.

Who brought a suit over the Gilded Age compensation package Stock Exchange head Richard Grasso had been awarded by his chums on the board.

And who in 2013 with business as usual once again the order of the day, is promising to review how the Comptroller’s Office, which controls New York City’s vast pension funds, does business with Wall Street and corporate America. With his incisive questions about Wall Street’s fee structures and criticism of the passive stances most pension funds take to skyrocketing executive compensation in the companies they invest in, Eliot Spitzer is the last person on earth Wall Street wants to see in that slot.

The chorus of outrage from Wall Street pundits and media over Spitzer’s return after embarrassing exit from the governor’s office after his out of state tryst with prostitutes (omg, he had the nerve to use his own money) and, according to a New York Times article, his out of control ego and combative, go-it-alone style.

Prof. Ferguson dismisses the hyperbole as a “smoke screen” for the real objections that Spitzer would stop Wall Street from using the city’s pension funds to make profits for the 1% while cheating the workers out of a lifetime of investment. Spitzer as an activist for the 99% scares the crap out of them.

The compelling case for activism in the Comptroller’s Office by somebody of Spitzer’s intelligence, knowledge, and experience rests mostly on quite different grounds. As Spitzer has observed, most pension funds put up little or no resistance to management’s soaring claims for compensation. These come massively at the expense of investors as a group; pushing back would benefit investors in general and, obviously, beneficiaries of City pension funds. At a time when the air is filled with sometimes dubious claims of pension fund inadequacies, increasing returns to the City pension funds would be a real triumph. You can be sure, however, that the threat to ever-escalating executive salaries fuels a lot of the animus to Spitzer within much of big business and finance.

No less important, though, is another reality to which Spitzer has alluded to from time to time. Wall Street overcharges for financial advice and pension funds often find it expedient to tolerate this, rather than shop vigorously around. Studies of pension funds returns routinely note the frequency with which high fees accompany relatively shoddy performance, often over many years. It is high time attention was focused on this situation; Spitzer would likely do that.

And the Office of the Comptroller has subpoena power, that’s a lot of power:

First, part of the comptroller’s job is ensuring that private sector employees working on city projects are paid the prevailing wage. If an employer, for example a construction company, is reported to be paying workers below-market rates, the comptroller can open an investigation and subpoena payroll records if the employer won’t cooperate.

In addition, the comptroller has the authority to review all legal settlements entered into by the city’s corporation counsel. Last fiscal year, the city paid $486 million to settle lawsuits filed against its agencies or employees, the comptroller’s office said in a report last month. The settlements were for cases such as malpractice at city hospitals or police misconduct.

That’s just for starters.  

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