Tag: ek Politics

New Zealand Prime Minister Admits Drug Prices Will Rise Under TPP — Leaves Out The Part About More People Dying

by Mike Masnick, Tech Dirt

Thu, Jul 30th 2015

As we’re in the middle of crunch time for the final TPP negotiations, New Zealand’s Prime Minister John Key has finally admitted what many experts have been saying for years — that under the TPP, drug prices will undoubtedly rise, because it extends monopoly protections on important medicines. Key tries to play this off as no big deal, because it’s the government paying for the medicine so the public won’t notice (leaving aside the fact that it’s their tax dollars). However, folks who actually understand basic economics note that, when the price goes up, access to drugs gets more difficult even in New Zealand, where it’s noted that some key life saving drugs have not been made available because they’re too expensive.

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Back in the US, even a bunch of Congresscritters who voted in favor of giving the USTR fast track authority appear to be having a bit of buyer’s remorse as they’ve asked the USTR to explain why it appears the current draft of the TPP will make drugs more expensive rather than less.

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And even the AARP has stepped in to point out that it appears the TPP is going to make it more difficult for the US elderly to afford drugs.

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How can the USTR and the Obama administration continue to insist that the TPP is in the public interest when it’s abundantly clear that it’s in the pharmaceutical companies’ interests instead?

An honest politician is one who, when he is bought, will stay bought.

– Simon Cameron

I like Simon, he has loyalty.

His corruption was so notorious that a Pennsylvania congressman, Thaddeus Stevens, when discussing Cameron’s honesty with Lincoln, told Lincoln that “I don’t think that he would steal a red hot stove.”When Cameron demanded Stevens retract this statement, Stevens told Lincoln “I believe I told you he would not steal a red-hot stove. I will now take that back.”

Banks revolt over plan to kill $17B Fed payout

By Peter Schroeder, The Hill

07/25/15 12:25 PM EDT

When banks join the Federal Reserve system, they are required to buy stock in the central bank equal to 6 percent of their assets. However, that stock does not gain value and cannot be traded or sold, so to entice banks to participate, the Fed pays out a 6 percent dividend payment.

The Senate proposal says it would slash that “overly generous” payout to 1.5 percent for all banks with more than $1 billion in assets. While the summary language outlining the proposal said that change would only impact “large banks,” industry advocates argued that banks most would identify as small community shops could easily have assets in excess of that amount.

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While banking advocates make the policy argument, they also acknowledge they are facing a hard political reality – $17 billion is hard for members to pass up to help cover costs in a must-pass bill.

“It’s difficult to have a policy discussion when people are looking for a pay for,” said Ballentine. “That’s the issue we’ve been running into.”

The Senate bill is facing an uphill climb towards enactment, as House leaders from both parties have pushed the Senate to instead take up its short-term extension of highway funding and continue working on a longer-term proposal. But now that the Fed dividend has been identified as a way to raise billions of dollars, the industry now will be on high alert for it pop up elsewhere, when lawmakers are looking for a way to cover the costs of their preferred policies.

“That’s a genuine concern,” said Merski. “We’re going to remain actively opposed to this in any form.”

“Pay fors, they never die,” agreed Ballentine. “Perhaps we can take some of the spotlight off of this provision, which we think has served a good purpose.”

Bwahhahhahhahhah.

I have a higher and grander standard of principle than George Washington. He could not lie; I can, but I won’t.

In stunning attack, Cruz accuses leader McConnell of lying

By Erica Werner and Laurie Kellman, AP

July 24 at 1:39 PM

In a stunning, public attack on his own party leader, Republican Sen. Ted Cruz accused Majority Leader Mitch McConnell of lying, and said he was no better than his Democratic predecessor and couldn’t be trusted.

Cruz, a Texan who is running for president but ranks low in early polling, delivered the broadside in a speech on the Senate floor Friday, an extraordinary departure from the norms of Senate behavior that demand courtesy and respect.

“Not only what he told every Republican senator, but what he told the press over and over and over again, was a simple lie,” Cruz said.

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“It saddens me to say this. I sat in my office, I told my staff the majority leader looked me in the eye and looked 54 Republicans in the eye. I cannot believe he would tell a flat-out lie,” Cruz said.

“We now know that when the majority leader looks us in the eyes and makes an explicit commitment that he is willing to say things that he knows are false.”

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“We keep winning elections and then we keep getting leaders who don’t do anything they promised,” Cruz said.

Why Progressives Must Stay United

Robert Reich

Wednesday, July 22, 2015

It’s impossible to overcome widening economic inequality in America without also dealing with the legacy of racial inequality.

And it is impossible to overcome racial inequality without also reversing widening economic inequality.

They are not the same but they are intimately related.

Racial inequalities are baked into our political and economic system. Police brutality against black men and women, mass incarceration disproportionately of blacks and Latinos, housing discrimination that has resulted in racial apartheid across the nation, and voter suppression in the forms of gerrymandered districts, voter identification requirements, purges of names from voter registration lists, and understaffed voting stations in black neighborhoods – all reveal deep structures of discrimination that undermine economic (in)equality.

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For decades Republicans have exploited the economic frustrations of the white working and middle class to drive a wedge between races, channeling those frustrations into bigotry and resentment.

The Republican strategy has been to divide-and-conquer. They want to prevent the majority of Americans – poor, working class, and middle-class, blacks, Latinos, and whites – from uniting in common cause against the moneyed interests.

We must not let them.

Our only hope for genuine change is if poor, working class, middle class, black, Latino, and white come together in a powerful movement to take back our economy and democracy from the moneyed interests that now control both.

Without addressing widening economic inequality, the legacy of racism and social injustice cannot be corrected.  Why, you may ask, were LGBTQ issues advanced during this Administration after languishing for decades and in the face of vociferous and concerted opposition?

It’s not that I begrudge my otherly oriented comerades their victories, they were hard fought and well deserved, but they came at the point of a privileged gun.  The LGBTQ demographic is politically active, has disposable income for contributions, and looks just like me- white and upper middle-class.  1%ers if not .001%ers.

Women (not a minority) and minorities (not for much longer) face the additional problems of being distinguishable in their physical characteristics.  They’re women or their skin is browner.  To argue that these are not the basis of discrimination is to ignore Italian/Irish/Jewish assimilation (separate culture/language?  Check!  African-Americans are native English speakers.).

What we can learn from the LGBTQ victories is that economic pressure works!  Not just in terms of direct contributions though those are a very visible aspect, but also in shaping markets.  The reason Bus Lines were such a vulnerable target during the Civil Rights movement is that their ridership was overwhelmingly African-American and boycotts cut deep.

As citizens we must use the levers of the market to punish the traitors and reward the patriots if we wish to promote our agenda.

I’m not quite geeky and paranoid enough to claim that this really is a Sontaran plot to take over the Earth or that the Skynet is falling, but I know a bad idea when I hear one and ‘driverless’ cars is a bad idea.

Jeep owners urged to update their cars after hackers take remote control

by Samuel Gibbs, The Guardian

Tuesday 21 July 2015 10.30 EDT

Security experts are urging owners of Fiat Chrysler Automobiles vehicles to update their onboard software after hackers took control of a Jeep over the internet and disabled the engine and brakes and crashed it into a ditch.

A security hole in FCA’s Uconnect internet-enabled software allows hackers to remotely access the car’s systems and take control. Unlike some other cyberattacks on cars where only the entertainment system is vulnerable, the Uconnect hack affects driving systems from the GPS and windscreen wipers to the steering, brakes and engine control.

The Uconnect system is installed in hundreds of thousands of cars made by the FCA group since late 2013 and allows owners to remotely start the car, unlock doors and flash the headlights using an app.

The hack was demonstrated by Charlie Miller and Chris Valasek, two security researchers who previous demonstrated attacks on a Toyota Prius and a Ford Escape. Using a laptop and a mobile phone on the Sprint network, they took control of a Jeep Cherokee while Wired reporter Andy Greenberg was driving, demonstrating their ability to control it and eventually forcing it into a ditch.

Unlike the majority of hacking attempts on cars, the vulnerability within the Uconnect system allows cybercriminals to take control of the car remotely, without the need to make physical contact with the car.

The security researchers notified Fiat Chrysler nine months ago, allowing the car manufacturer to release a security update to fix the problem, which it did on 16 July.

However the update requires users to manually update their cars by visiting the manufacturer’s site, downloading a programme onto a flash drive and inserting it into the car’s USB socket. FCA dealers can update the car for owners, but the company is apparently unable to automatically update the cars over the internet.

Newsflash: Car Network Security Is Still A Horrible, Very Dangerous Joke

by Karl Bode, Tech Dirt

Tue, Jul 21st 2015 10:33am

As we’ve noted for years, the security on most “smart” or “connected” cars is aggressively atrocious. And in fact it’s getting worse. As car infotainment systems get more elaborate, and wireless carriers increasingly push users to add their cellular-connected car to shared data plans, the security of these platforms has sometimes been an afterthought. Hackers this week once again made that perfectly clear after they demonstrated to a Wired reporter that they were able to manipulate and disable a new Jeep Cherokee running Fiat Chrysler’s UConnect platform.

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The exploit appears to work on any Chrysler vehicle with Uconnect from late 2013, all of 2014, and early 2015. Chrysler/Fiat posted a notice to its website last week informing users that they need to update their in-car software either via USB stick (you can download the update here) or by taking it in to a dealer. Of course like many patches, most users won’t be paying much attention to the warning. And we’re only talking about Chrysler’s UConnect; there’s a bounty of half-assed security measures implemented in infotainment systems from automakers worldwide just waiting to be tinkered with by pranksters (or worse).

Sometimes the radical is the only responsible thing to do.

Lapavitsas Calls for Exit as the Only Strategy for Greek People

Interview with Costas Lapavitsas

How Goldman Sachs Profited from the Greek Debt Crisis

Robert Reich

Friday, July 17, 2015

Blankfein and his Goldman team helped Greece hide the true extent of its debt, and in the process almost doubled it. And just as with the American subprime crisis, and the current plight of many American cities, Wall Street’s predatory lending played an important although little-recognized role.

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Goldman Sachs came to the rescue, arranging a secret loan of 2.8 billion euros for Greece, disguised as an off-the-books “cross-currency swap”-a complicated transaction in which Greece’s foreign-currency debt was converted into a domestic-currency obligation using a fictitious market exchange rate.

As a result, about 2 percent of Greece’s debt magically disappeared from its national accounts. Christoforos Sardelis, then head of Greece’s Public Debt Management Agency, later described the deal to Bloomberg Business as “a very sexy story between two sinners.”

For its services, Goldman received a whopping 600 million euros ($793 million), according to Spyros Papanicolaou, who took over from Sardelis in 2005. That came to about 12 percent of Goldman’s revenue from its giant trading and principal-investments unit in 2001-which posted record sales that year. The unit was run by Blankfein.

Then the deal turned sour. After the 9/11 attacks, bond yields plunged, resulting in a big loss for Greece because of the formula Goldman had used to compute the country’s debt repayments under the swap. By 2005, Greece owed almost double what it had put into the deal, pushing its off-the-books debt from 2.8 billion euros to 5.1 billion.

In 2005, the deal was restructured and that 5.1 billion euros in debt locked in. Perhaps not incidentally, Mario Draghi, now head of the European Central Bank and a major player in the current Greek drama, was then managing director of Goldman’s international division.

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Greece was in the worst shape, and Goldman was the biggest enabler. Undoubtedly, Greece suffers from years of corruption and tax avoidance by its wealthy. But Goldman wasn’t an innocent bystander: It padded its profits by leveraging Greece to the hilt-along with much of the rest of the global economy.

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Even with the global economy reeling from Wall Street’s excesses, Goldman offered Greece another gimmick. In early November 2009, three months before the country’s debt crisis became global news, a Goldman team proposed a financial instrument that would push the debt from Greece’s healthcare system far into the future. This time, though, Greece didn’t bite.

As we know, Wall Street got bailed out by American taxpayers. And in subsequent years, the banks became profitable again and repaid their bailout loans. Bank shares have gone through the roof. Goldman’s were trading at $53 a share in November 2008; they’re now worth over $200. Executives at Goldman and other Wall Street banks have enjoyed huge pay packages and promotions. Blankfein, now Goldman’s CEO, raked in $24 million last year alone.

Meanwhile, the people of Greece struggle to buy medicine and food.

Goldman’s Blankfein joins the 3-comma club

By Bill McColl, Yahoo

July 17, 2015 10:28 AM

Bloomberg Billionaire’s Index finds Blankfein’s net worth is at $1.1 billion, thanks to a surge in the company’s stock price, which is up about 9% so far this year. Bloomberg notes Blankfein is the largest individual owner of Goldman shares, with a value of half a billion dollars. The rest of his wealth comes from real estate and an investment portfolio boosted by cash bonuses and payouts from the firm’s private-equity funds.

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“Lloyd Blankfein has gotten a lot of criticism in the last couple of years for doing ‘God’s work,’ and Goldman is the ‘vampire squid’ and all that bad stuff,” he notes. “But he’s the son of a postal worker. He did not grow up with a silver spoon in his mouth and he made it to the pinnacle of Wall Street society at Goldman Sachs through will, determination, skill and intelligence. That is a great American story for him as an individual.”

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Monica Mehta, Managing Principal at Seventh Capital, tells Yahoo Finance she finds it interesting the Blankfein news comes as we approach the fifth anniversary of the signing of the Dodd-Frank law, which was enacted after the financial crisis specifically to rein in the big banks.

“Aspects of Dodd-Frank in the name of consumer protection are actually making it difficult for people like small-business owners to get mortgages because it’s become tough for banks to lend off of W-2 income,” she adds. “But at the same time banks keep rolling along producing billionaires.”

C’mon, you know I had to.

Michael Grimm, Former Congressman, Gets 8-Month Sentence

By STEPHANIE CLIFFORD, The New York Times

JULY 17, 2015

Michael G. Grimm, a former New York congressman who resigned from office after pleading guilty to tax fraud, was given an eight-month sentence on Friday.

A federal investigation that initially focused on Mr. Grimm’s campaign fund-raising turned into a 20-count indictment related to his running of a restaurant in Manhattan, Healthalicious. Prosecutors said he underreported wages and revenue to the government and filed false tax documents as a result.

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Prosecutors had requested a sentence of 24 to 30 months, while defense lawyers argued for no prison time. Judge Chen, who said that federal sentencing guidelines called for a term of 18 to 24 months, described the crime as “sustained fraud.”

“That this type of crime is common does not lessen its significance,” the judge said. “Your moral compass, Mr. Grimm, needs some reorientation.”

Mr. Grimm was a former Marine and Federal Bureau of Investigation agent. He was elected in 2010 to represent Staten Island and part of Brooklyn in Congress, and resigned after he pleaded guilty in December to one count of tax fraud, a felony.

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Mr. Grimm had been punished enough, Mr. Rashbaum added, saying that he “suffered this humiliation” publicly: He left Congress and forfeited his pension; his law license has been suspended in New York and Connecticut; and he faces likely disbarment.

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An assistant United States attorney, James D. Gatta, argued that Mr. Grimm had not taken responsibility for his crime. “He wants the court to accept that he is remorseful, but still, even today, he is trying to shift the blame for his conduct to others,” he said.

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“He wraps himself in the oaths that he has sworn when it suits him, and turns his back on those oaths when it suits him,” Mr. Gatta said.

Mr. Grimm is scheduled to surrender Sept. 10 and begin his sentence. Once he serves his term, he must perform 200 hours of community service.

Judge Chen said that Mr. Grimm’s work for the F.B.I., as an agent investigating white-collar crime, meant that “he of all people knew better.”

Such a nice guy–

On January 28, 2014, NY1-TV political reporter Michael Scotto was interviewing Grimm in a balcony hallway of the U.S. Capitol building about the recently concluded 2014 State of the Union Address. He then tried to question Grimm about a campaign finance investigation. Grimm said he would not discuss the investigation. As Scotto started to mention the investigation again, Grimm walked off. Scotto then turned to the camera and implied that Grimm didn’t want to face the issue on camera. Grimm then appeared to threaten Scotto, saying that he would “break [Scotto] in half,” as well as threatening to throw Scotto over the balcony.

Grimm issued a statement defending his behavior, saying that he was annoyed by what he called a “disrespectful cheap shot” from Scotto.[67][68] The next day, Grimm contacted Scotto to offer an apology for his behavior, which Scotto deemed sincere.[69] Grimm also issued a written apology, saying, “I shouldn’t have allowed my emotions to get the better of me and lose my cool.”[70] An unnamed former staffer for Grimm and NY1-TV political director Bob Hardt reported that Grimm had behaved in a similar manner to other reporters on previous occasions.

We were told that Federal Felony Guilty Pleas represented some kind of penalties for JPMorgan and CitiBank engaging in conspiring to illegally manipulate the London Inter Bank Exchange Rate (LIBOR), a benchmark “which underpins over $300 Trillion worth of loans worldwide.” (by comparison Worldwide Annual GDP, every country all put together, is a mere $77 to $106 Trillion).

Well, that was a lie told by the Obama Administration and their Wall St. captive Justice Department.

Obama Administration Finds New Way to Let Criminal Banks Avoid Consequences

David Dayen, The Intercept

Jul. 15 2015, 12:35pm

Three top Democrats are accusing the Department of Housing and Urban Development of quietly removing a key clause in its requirements for taxpayer-guaranteed mortgage insurance in order to spare two banks recently convicted of federal crimes from being frozen out of the lucrative market.

HUD’s action is the latest in a series of steps by federal agencies to eliminate real-world consequences for serial financial felons, even as the Obama administration has touted its efforts to hold banks accountable.

In this sense, the guilty plea has become as meaningless to banks as their other ways of resolving criminal charges: out-of-court settlements, or deferred prosecution agreements.

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On May 20 of this year, JPMorgan Chase and Citigroup both entered a guilty plea on one felony count of conspiring to rig foreign currency exchange trades, the largest market on the globe.

Five days earlier, on May 15, HUD slipped a notice into the Federal Register, seeking to alter its standard loan-level certification form, known as HUD-92900-A. This form must be filled out for lenders to receive FHA insurance, which reimburses them if the homeowner falls into foreclosure.

On the current HUD-92900-A form, lenders must certify that their firm and its principals “have not, within a three-year period … been convicted of or had a civil judgment rendered against them” for a variety of crimes, including “commission of fraud … violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements or receiving stolen property.”

JPMorgan and Citi’s guilty plea would fall under the antitrust statute, and according to Brown, Warren and Waters’ reading of the certification, that would make them ineligible to obtain FHA insurance on their loans.

On the updated form, this language has been excised. The notice in the Federal Register did not even mention the removal, making it impossible to discover without comparing the old form and the proposed form side by side.

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While many industry observers believe banks should not be punished in one area of their business for the sins in another area, the threat of such consequences could act as an effective deterrent for the parent company to follow the law across its business lines. But if these consequences are habitually waived, the deterrent value becomes irrelevant. The industry has also warned of reduced access to credit if large FHA lenders like JPMorgan Chase and Citi were barred, a perennial objection any time profits are threatened.

“HUD may have good reasons for proposing these changes at this time,” write Brown, Warren and Waters, but “but its Federal Register notice fails to even describe the changes to the certifications on illegal conduct – let alone offer a rationale for them.”

European Neoliberals Crushed the Leftist Party in Greece

By Ed Walker (masaccio), emptywheel

Published July 16, 2015

Wolfgang Schauble, the German Finance Minister, took the position that the previous government had agreed to the austerity program, and the Greeks were stuck with it. When Varoufakis asked if debtor countries should just dispense with elections, Schauble was silent, which Varoufakis interprets to mean it would be great if that could be done. Then came the referendum, a smashing win for rejecting the austerity demands of the Troika. Varoufakis says he had a plan ready to get ready to exit the Euro, but Tsipras rejected it, and moved to capitulation.

So from this we can conclude that what we thought about Europe is true: it is a purely neoliberal state, one in which creditors cannot suffer losses. Either the debtor pays or the taxpayers pay, but the creditors do not lose money. And, of course, by taxpayers, I mean the working class and any remaining middle class. The elites use their control over governments to make sure they don’t pay.

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The interview with Kouvelakis makes it clear that this was purposeful. He tells us how it looked from the standpoint of the Left Platform, the leftist element of Syriza. He thinks that in June it became clear that the Troika was not negotiating in good faith, and were out to humiliate the people of Greece. Tsipras used the referendum to get himself out of the negotiating trap. He expected the referendum to win, not, as it did, to lose. The decisive factor was the decision by the ECB to force closure of Greek banks, which panicked people.

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In this Kouvelakis agrees with Varoufakis. He also agrees that their approach was logical and lucid, to use his words. The weakness was their belief in Left Europeanism. Tsipras and Varoufakis both thought that this was a negotiation between partners in the European project.

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Kouvelakis tells us that this was a class vote. The working class supported the no vote, and the wealthy supported the yes side. The age group 18-24 voted no overwhelmingly. These groups see the EU as hostile, and they are anti-European. They were betrayed by the people they elected.

Kouvelakis says that the yes supporters, the old guard in Greek politics, collapsed in the wake of the loss. But then Tsipras revived them with his call for a council of political leaders. These people decided to treat the referendum as a vote to continue negotiations, even for capitulation. Kouvelakis feels betrayed by this reversal. After a discussion of internal Greek procedures, Kouvelakis says that the Left Platform will leave Syriza, and that the rightist wing and the rest of the group will more or less unite with those rejected parties to form a party of national unity.

That’s so depressing it’s hard to write. One of the EU demands was replacement of the elected government of Greece. It is a direct rejection of democracy. The EU refuses to work with anyone outside the neoliberal consensus, meaning leftist parties. Syriza was never a revolutionary leftist party, more of a highly reform oriented leftist group, and that’s how Kouvelakis sees the Left Platform. So, by removing the Left Platform, Syriza is now nothing more than the Third Way Democrats: economic destruction of human beings with a nice smile. Large groups of Greeks were willing to do battle with the neoliberals, but they were betrayed, and their misery will go on indefinitely. The destruction of human lives is just the way things are in neoliberal lands.