Tag: ek Politics

Wall Street Whiners

What are those OWS people so angry about?

By Glenn Greenwald, Salon

Monday, Oct 17, 2011 9:12 AM Eastern Daylight Time

(G)rowing wealth and income inequality, by itself, would not spark massive protests if there were a perception that the top 1% (more accurately thought of as the top .1%) had acquired their gains honestly and legitimately. Americans in particular have been inculcated for decades with the belief that even substantial outcome inequality is acceptable (even desirable) provided that it is the by-product of fairly applied rules. What makes this inequality so infuriating (aside from the human suffering it is generating) is precisely that it is illegitimate: it is caused and bolstered by decisively unfair application of laws and rules, by undemocratic control of the political process by the nation’s oligarchs, and by a full-scale shield of immunity that allows them – and only them – to engage in the most egregious corruption and even criminality without any consequence (other than a further entrenching of their prerogatives and ill-gotten gains).

Anyone who expressed difficulty seeing or understanding what motivates these protests revealed many things about themselves. None is flattering. The only thing that’s surprising is that these protests didn’t happen sooner and that they’re not more widespread and intense. I think it’s become increasingly clear that that is likely to change, and soon. Like the Arab Spring, the rapid growth of these protests should be a permanent antidote against defeatism. It’s unclear what these protests will accomplish – that still depends on how many people join them and what they cause it to be – but, already, they prove that the possibility always exists for subverting even the most seemingly invulnerable power factions. That hasn’t happened yet, but the possibility that these protests are only in their incipient stages is one of the more exciting and positive political developments in some time. It’s been clear for quite awhile that unrest and disruptions – and the fear which they alone can put in the hearts and minds of those responsible for widespread ills – are absolute prerequisites for meaningful reform (our fundamentally corrupted electoral process certainly can’t and won’t accomplish that). These protests at least reflect the possibility, the template, for that to happen. And anyone expressing confusion about why these protests are erupting is almost certainly someone invested in keeping things exactly the way they are.

Losing Their Immunity

By PAUL KRUGMAN, The New York Times

Published: October 16, 2011

(T)he financialization of America wasn’t dictated by the invisible hand of the market. What caused the financial industry to grow much faster than the rest of the economy starting around 1980 was a series of deliberate policy choices, in particular a process of deregulation that continued right up to the eve of the 2008 crisis.

Not coincidentally, the era of an ever-growing financial industry was also an era of ever-growing inequality of income and wealth. Wall Street made a large direct contribution to economic polarization, because soaring incomes in finance accounted for a significant fraction of the rising share of the top 1 percent (and the top 0.1 percent, which accounts for most of the top 1 percent’s gains) in the nation’s income. More broadly, the same political forces that promoted financial deregulation fostered overall inequality in a variety of ways, undermining organized labor, doing away with the “outrage constraint” that used to limit executive paychecks, and more.

Oh, and taxes on the wealthy were, of course, sharply reduced.

All of this was supposed to be justified by results: the paychecks of the wizards of Wall Street were appropriate, we were told, because of the wonderful things they did. Somehow, however, that wonderfulness failed to trickle down to the rest of the nation – and that was true even before the crisis. Median family income, adjusted for inflation, grew only about a fifth as much between 1980 and 2007 as it did in the generation following World War II, even though the postwar economy was marked both by strict financial regulation and by much higher tax rates on the wealthy than anything currently under political discussion.



Money talks in American politics, and what the financial industry’s money has been saying lately is that it will punish any politician who dares to criticize that industry’s behavior, no matter how gently – as evidenced by the way Wall Street money has now abandoned President Obama in favor of Mitt Romney. And this explains the industry’s shock over recent events.

You see, until a few weeks ago it seemed as if Wall Street had effectively bribed and bullied our political system into forgetting about that whole drawing lavish paychecks while destroying the world economy thing. Then, all of a sudden, some people insisted on bringing the subject up again.

And their outrage has found resonance with millions of Americans. No wonder Wall Street is whining.

Morning #OWS Update

Occupy Wall Street Stays in Park

By Aaron Rutkoff, The Wall Street Journal

October 14, 2011, 6:57 AM ET

The real-estate company that owns the small park at the center of the Occupy Wall Street movement has postponed a planned cleaning of the site, a New York City deputy mayor announced early Friday morning.

The decision by Brookfield Office Properties Inc. to delay its planned cleaning of Zuccotti Park means that the protesters who have been living at the site for nearly a month will not be forced to depart and remove the tarps, beds and other items accumulated during the ongoing demonstration.

Wall Street sit-in goes global Saturday

Reuters

Fri Oct 14, 2011 6:52am EDT

For an October revolution, dress warm.

That’s the word going out – politely – on the Web to rally street protests on Saturday around the globe from New Zealand to Alaska via London, Frankfurt, Washington and, of course, New York, where the past month’s Occupy Wall Street movement has inspired a worldwide yell of anger at banks and financiers.



Italian police are preparing for tens of thousands to march in Rome against austerity measures planned by the beleaguered government of Prime Minister Silvio Berlusconi.

Yet in crisis-ravaged Athens, where big protests have seen violence at times of late, a sense of fatigue and futility may limit numbers on Saturday. In Madrid, where thousands of young “indignados”, or “angry ones”, camped out for weeks, many also feel the movement has run out of steam since the summer.

Germans, where sympathy for southern Europe’s debt troubles is patchy, the financial centre of Frankfurt, and the European Central Bank in particular, is expected to be a focus of marches calling by the Spanish-inspired Real Democracy Now movement.

NYC official says cleanup of protest site has been postponed; demonstrators consider new march

By Associated Press

Updated: Friday, October 14, 7:15 AM

NEW YORK – The cleanup of a plaza in lower Manhattan where protesters have been camped out for a month was postponed early Friday, sending cheers up from a crowd that had feared the effort was merely a pretext to evict them.

Deputy Mayor Cas Holloway said the owners of the private park, Brookfield Office Properties, had put off the cleaning. Supporters of the protesters had started streaming into the park in the morning darkness before the planned cleaning, forming a crowd of several hundred chanting people.

“I’ll believe it when we’re able to stay here,” said protester Peter Hogness, 56, a union employee from Brooklyn. “One thing we have learned from this is that we need to rely on ourselves and not on promises from elected officials.”

Nobel Prize-Winning Former President Of Poland To Visit Occupy Wall Street

By Christopher Robbins, Gothamist

October 12, 2011 4:14 PM

Lech Walesa, the Nobel Peace Prize-winning former president of Poland, will show his support of Occupy Wall Street by paying Zuccotti Park a visit. “How could I not respond,” Walesa said, “The thousands of people gathered near Wall Street are worried about the fate of their future, the fate of their country. This is something I understand.”

4 live streams courtesy of Elliott @ Firedog Lake below.

#OWS Emergency Action

EMERGENCY CALL TO ACTION: Keep Bloomberg and Kelly From Evicting #OWS

Posted Oct. 13, 2011, 2:14 p.m. EST by OccupyWallSt

EMERGENCY #OWS EVICTION DEFENSE:

Prevent the forcible closure of Occupy Wall Street

Tell Bloomberg: Don’t Foreclose the Occupation.

NEED MASS TURN-OUT: 6AM FRIDAY EVICTION DEFENSE

**SHOW UP AT MIDNIGHT**

This is an emergency situation. Please take a minute to read this, and please take action and spread the word far and wide.

(h/t tahoebasha3, riverdaughter, Joyce Arnold, and lambert)

Live streaming video courtesy of TheMomCat

Yankee Doodle

Many people don’t remember that Yankee Doodle was originally a song sung by the British to mock the rag-tag appearance of the Colonials.

They later adopted it as an anthem of their own and it endures as one of the most popular patriotic songs to this day.

Just so this particular ditty has appeared in the inboxes of European Bond and Forex traders and those 1%ers sing it (to the tune of I Will Survive) without the irony it so richly encapsulates.

At first we took the aid, we were petrified.

Kept thinking we could only live with Germans by our side.

But then we spent so many nights thinking how you did us wrong,

And we grew strong and learned to string you all along.

And so we’re back.  Just watch this space

What are the yields doing up here?  You’ve got a sad look on your face.

We should have made people pay tax and begun austerity,

But were busy on the beach and you bail us out for free.

Go on now go.  Walk out the door.

Things turned around now and the Dax is on the floor.

Merkel the one who tried to hurt me with goodbye.

Watch the Euro tumble.  EuroStox become the S M I.

Oh no, not I.  I will survive.

Oh as long as Trichet buys our bonds I know I’ll stay alive

We have our cushy lives to live,

And in return nothing to give.

And I’ll survive.  I will survive (hey hey)

Try this 3 line replacement-

We should have made the banksters pay tax and broke up too big to fail.

But you were busy in the Hamptons and knew the Treasury would bail.

Go on you Galts.  Walk out that door.

Sings a little truer now, doesn’t it?

Say what you like about the Nutmeg State, we have fine taste in traitors.

Fungible

The big lie about the Keystone XL pipeline (outside of the corruption and devastating impact on the environment) is that it will create jobs and reduce U.S. dependence on foreign (read angry middle eastern brown people) oil.

The facts are that far from the pitiful 20,000 jobs promised independent economists estimate a mere 6,000 and that instead of lowering energy prices in the U.S., most of the Tar Sand output is destined for shipment to China and other developing countries.

Of the 5 oil giants involved in the project, 5 are not based in the U.S. and the 6th, Valero, is primarily an exporting firm.

Say No to the Keystone XL

The Editors of The New York Times

Published: October 2, 2011

(T)he State Department appears to be more persuaded by proponents who claim that the pipeline will help reduce America’s dependence on oil from politically troubled sources in the Middle East. We are skeptical about that, too.

What pipeline advocates – including big-oil lobbyists and House Republicans who have tried to force an early, favorable decision – fail to mention is that much of the tar sands oil that would be refined on the Gulf Coast is destined for export. Six companies have already contracted for three-quarters of the oil. Five are foreign, and the business model of the one American company – Valero – is geared toward export.



We have considerable sympathy for one argument: that construction of the pipeline would bring jobs at a time of great economic uncertainty. TransCanada has said the 2,000-mile line would create 20,000 jobs in the United States. The State Department concludes that the real number may be closer to 6,000 jobs.

Environment, Size of U.S. Oil Exports Part of Keystone XL Pipeline Debate

By Lyudmila Tsubiks, infoZine

Wednesday, September 28, 2011

Much of the fuel refined from the proposed Keystone XL pipeline’s heavy crude oil will never reach U.S. drivers’ tanks, a new report says.

The oil will be refined into diesel and exported, Lorne Stockman, research director of Oil Change International, said. His group opposes the pipeline.

According to the report, the crude will be delivered from Hardisty, Alberta, by the 1,980-mile, 36-inch diameter Keystone XL pipeline to refiners in Texas that are focused on exports.

“Europe has a diesel deficit, Latin America has a petroleum product deficit generally and we are increasing exporting our surplus to these countries,” Stockman said.

The key quality here is Fungibility

Fungibility is the property of a good or a commodity whose individual units are capable of mutual substitution, such as crude oil, wheat, precious metals or currencies. For example, if someone lends another person a $10 bill, it does not matter if they are given back the same $10 bill or a different one, since currency is fungible; if someone lends another person their car, however, they would not expect to be given back a different car, even of the same make and model, as cars are not fungible.

And this applies to all the ‘Drill baby, drill’ arguments.  U.S. demand for energy has plummeted because our economy sucks and so much of our production is being sold offshore.

Dominion seeks exports of Marcellus Shale gas

Associated Press

OCTOBER 9, 2011, 5:27 P.M. ET

HARRISBURG, Pa. – An energy company is seeking federal approval to allow exports of liquefied natural gas from the booming Appalachian drilling industry, saying that the nation’s natural gas supply is outpacing demand.

Richmond, Va.-based Dominion Resources Inc. announced last week that it has applied to the Department of Energy to allow 1 billion cubic feet per day to be exported through a terminal it owns in Maryland. The application, filed Sept. 1, seeks permission for the exports of liquefied natural gas to any country with which the United States does not prohibit trade, the company said.



“It is in our nation’s best interests to develop our natural resources responsibly and reliably,” Farrell said. “In the process, we will be able to improve the nation’s balance of trade.”

So basically we’re being asked to ruin our environment, kill ourselves with pollution, and give away our natural resources so that greedy energy companies can steal more of our money.

The Definition Of Corruption

So, have you heard the one about how TransCanada (the Keystone XL people) recommended and paid for their own consultants to do the environmental impact report for Hillary Clinton’s State Department?

Pipeline Review Is Faced With Question of Conflict

By ELISABETH ROSENTHAL and DAN FROSCH, The New York Times

Published: October 7, 2011

The State Department assigned an important environmental impact study of the proposed Keystone XL pipeline to a company with financial ties to the pipeline operator, flouting the intent of a federal law meant to ensure an impartial environmental analysis of major projects.

The department allowed TransCanada, the company seeking permission to build the 1,700-mile pipeline from the oil sands of northern Alberta to the Gulf Coast in Texas, to solicit and screen bids for the environmental study. At TransCanada’s recommendation, the department hired Cardno Entrix, an environmental contractor based in Houston, even though it had previously worked on projects with TransCanada and describes the pipeline company as a “major client” in its marketing materials.



Environmental groups say the study underplays both the emissions impact of the new pipeline and the danger posed by a spill of crude from oil sands, called diluted bitumen, a hard-to-remediate mixture. An accident at a pipeline owned by Enbridge Energy in July 2010 dumped 843,000 gallons of such oil near Marshall, Mich.

A 35-mile stretch of the Kalamazoo River remains closed and cleanup has proved extremely difficult, running over budget and past deadlines set by the E.P.A. Estimates of cleanup costs have run well over $500 million. The E.P.A.’s regional administrator said her office had never seen a river system affected by so much submerged oil.

But the impact report for the Keystone XL project says that “response to a spill from the proposed pipeline would not require unique clean up procedures.”

The Enbridge spill is only mentioned briefly in addendums. And Cardno Entrix would have been aware of the challenges in Michigan: it was hired by Enbridge to assess the damage to natural resources caused by the spill.

State Department Admits Its ‘Independent’ Tar Sands Pipeline Review Was Paid For By TransCanada

By Brad Johnson, Think Progress

Oct 8, 2011 at 3:13 pm

The State Department has admitted their environmental review of the proposed Keystone XL tar sands pipeline was conducted by a contractor paid for by the pipeline company itself, a potentially illegal conflict of interest first reported by ThinkProgress Green. The Canadian tar sands company TransCanada has applied to construct a major pipeline through the United States to pump tar sands crude to Texas refineries for the international oil market, and is awaiting approval by Secretary of State Hillary Clinton and President Barack Obama. The State Department’s approval hinges upon a positive Environmental Impact Statement (EIS), required by the National Environmental Policy Act to assess whether the pipeline is in the national interest.

A State Department official has admitted to the New York Times that the EIS was conducted by a company chosen and paid by TransCanada itself, flouting NEPA’s conflict-of-interest rules.



A spokesman for TransCanada, Terry Cunha, told the New York Times that his company had recommended contractors to the State Department based on “technical ability, experience, and appropriate personnel.” But he said the final contract for the environmental assessment “provides that Department of State directs Entrix. As a result, we don’t have a direct relationship with Entrix.”

Where Did the President’s Mojo Go?

By Bill McKibben, Tom Dispatch

9:31am, October 11, 2011

Four years ago at this time, the early adopters among us were just starting to get used to the regular flow of email from the Obama campaign. The missives were actually exciting to get, because they seemed less like appeals for money than a chance to join a movement.



What we completely missed was that Obama didn’t want us at his back — that the minute the campaign was over he would cut us adrift, jettison the movement that had brought him to power. Instead of using all those millions of people to force through ambitious health-care proposals or serious climate legislation or [fill in the blank yourself here], he governed as the opposite of a movement candidate.



As the months of his administration rolled into years, he only seemed to grow less interested in movements of any sort. Before long, people like Tom Donahue, president and CEO of the U.S. Chamber of Commerce, were topping the list of the most frequent visitors to the White House.  And that was before this winter when — after they’d been the biggest contributors to GOP congressional candidates — Obama went on bended knee to Chamber headquarters, apologizing that he hadn’t brought a fruitcake along as a gift. (What is it with this guy and food?  At any rate, he soon gave them a far better present, hiring former Chamber insider Bill Daley as his chief of staff.)

Now, his popularity tanking, Obama and his advisors talk about “tacking left” for the election. A nice thought, but maybe just a little late.

Increasingly, it seems to me, those of us who were ready to move with him four years ago are deciding to leave normal channels and find new forms of action. Here’s an example: by year’s end the president has said he will make a decision on the Keystone XL pipeline, which would carry crude oil from the tar sands of northern Alberta to the Gulf of Mexico. The nation’s top climate scientists sent the administration a letter indicating that such a development would be disastrous for the climate.  NASA’s James Hansen, the government’s top climate researcher, said heavily tapping tar-sands oil, a particularly “dirty” form of fossil fuel, would mean “game over for the climate.” Ten of the president’s fellow recent Nobel Peace Prize laureates pointed out in a letter that blocking the prospective pipeline would offer him a real leadership moment, a “tremendous opportunity to begin transition away from our dependence on oil, coal, and gas.”

But every indication from this administration suggests that it is prepared to grant the necessary permission for a project that has the enthusiastic backing of the Chamber of Commerce, and in which the Koch Brothers have a “direct and substantial interest.”  And not just backing.  To use the words of a recent New York Times story, they are willing to “flout the intent of federal law” to get it done.  Check this out as well: the State Department, at the recommendation of Keystone XL pipeline builder TransCanada, hired a second company to carry out the environmental review.  That company already considered itself a “major client” of TransCanada.  This is simply corrupt, potentially the biggest scandal of the Obama years.  And here’s the thing: it’s a crime still in progress.  Watching the president do nothing to stop it is endlessly depressing.

Democracy Catches On

What a concept!

I’m not an Islamobigot so it doesn’t bother me at all to admit that the Sharia spirit of popular discontent with our corrupt and incompetent ruling class seems to be catching on, not just with the inchoate ill-dressed patchouli smelling masses of #occupywallstreet, but also with the sold out veal pen access whores of traditional ‘liberal’ special interest groups.

Case in point-

Environmental groups target Democratic lobbyists on Canadian oil pipeline

By Juliet Eilperin, The Washington Post

Thursday, October 6, 12:26 AM

Environmental groups are demanding more public documents from the State Department about a controversial oil pipeline that will cross the U.S.-Canada border, seeking information on half a dozen lobbyists and their firms connected to the Obama administration.

The new Freedom of Information Act request, which Friends of the Earth, the Center for International Environmental Law and Corporate Ethics International will file Thursday, is part of an ongoing campaign aimed at pressuring the administration to deny a construction and operating ­permit to TransCanada. The firm wants to construct a 1,700-mile pipeline to transport crude extracted from oil sands in Alberta, Canada, to Gulf Coast refineries. State has recently released a slew of e-mails in response to a FOIA that detail how a former campaign aide to Secretary of State Hillary Clinton, Paul Elliott, has appealed to the department’s officials to support the proposal.



Two of the lobbyists named in the request – Gordon Giffin with McKenna Long & Aldridge and James Blanchard with DLA Piper – served as fundraising bundlers for Hillary Rodham Clinton’s 2008 presidential bid. Jeff Berman, a lobbyist listed on Bryan Cave’s Keystone XL lobbying account, directed delegate selection in President Obama’s primary campaign.

A Day of Shame

The due-process-free assassination of U.S. citizens is now reality

By Glenn Greenwald, Salon

Friday, Sep 30, 2011 06:31 ET

It was first reported in January of last year that the Obama administration had compiled a hit list of American citizens whom the President had ordered assassinated without any due process, and one of those Americans was Anwar al-Awlaki.  No effort was made to indict him for any crimes (despite a report last October that the Obama administration was “considering” indicting him).  Despite substantial doubt among Yemen experts about whether he even has any operational role in Al Qaeda, no evidence (as opposed to unverified government accusations) was presented of his guilt.  When Awlaki’s father sought a court order barring Obama from killing his son, the DOJ argued, among other things, that such decisions were “state secrets” and thus beyond the scrutiny of the courts.  He was simply ordered killed by the President: his judge, jury and executioner.  When Awlaki’s inclusion on President Obama’s hit list was confirmed, The New York Times noted that “it is extremely rare, if not unprecedented, for an American to be approved for targeted killing.



What’s most striking about this is not that the U.S. Government has seized and exercised exactly the power the Fifth Amendment was designed to bar (“No person shall be deprived of life without due process of law”), and did so in a way that almost certainly violates core First Amendment protections (questions that will now never be decided in a court of law). What’s most amazing is that its citizens will not merely refrain from objecting, but will stand and cheer the U.S. Government’s new power to assassinate their fellow citizens, far from any battlefield, literally without a shred of due process from the U.S. Government.  Many will celebrate the strong, decisive, Tough President’s ability to eradicate the life of Anwar al-Awlaki — including many who just so righteously condemned those Republican audience members as so terribly barbaric and crass for cheering Governor Perry’s execution of scores of serial murderers and rapists — criminals who were at least given a trial and appeals and the other trappings of due process before being killed.

From an authoritarian perspective, that’s the genius of America’s political culture.  It not only finds way to obliterate the most basic individual liberties designed to safeguard citizens from consummate abuses of power (such as extinguishing the lives of citizens without due process).  It actually gets its citizens to stand up and clap and even celebrate the destruction of those safeguards.

So there you have it.  An American Citizen murdered for ‘thought crime’ at the whim of our unconstitutional monarch.

Obama: A disaster for civil liberties

He may prove the most disastrous president in our history in terms of civil liberties.

By Jonathan Turley, The L.A. Times

September 29, 2011

Protecting individual rights and liberties – apart from the right to be tax-free – seems barely relevant to candidates or voters. One man is primarily responsible for the disappearance of civil liberties from the national debate, and he is Barack Obama. While many are reluctant to admit it, Obama has proved a disaster not just for specific civil liberties but the civil liberties cause in the United States.



President Obama not only retained the controversial Bush policies, he expanded on them. The earliest, and most startling, move came quickly. Soon after his election, various military and political figures reported that Obama reportedly promised Bush officials in private that no one would be investigated or prosecuted for torture. In his first year, Obama made good on that promise, announcing that no CIA employee would be prosecuted for torture. Later, his administration refused to prosecute any of the Bush officials responsible for ordering or justifying the program and embraced the “just following orders” defense for other officials, the very defense rejected by the United States at the Nuremberg trials after World War II.

Obama failed to close Guantanamo Bay as promised. He continued warrantless surveillance and military tribunals that denied defendants basic rights. He asserted the right to kill U.S. citizens he views as terrorists. His administration has fought to block dozens of public-interest lawsuits challenging privacy violations and presidential abuses.

But perhaps the biggest blow to civil liberties is what he has done to the movement itself. It has quieted to a whisper, muted by the power of Obama’s personality and his symbolic importance as the first black president as well as the liberal who replaced Bush. Indeed, only a few days after he took office, the Nobel committee awarded him the Nobel Peace Prize without his having a single accomplishment to his credit beyond being elected. Many Democrats were, and remain, enraptured.



Even though many Democrats admit in private that they are shocked by Obama’s position on civil liberties, they are incapable of opposing him. Some insist that they are simply motivated by realism: A Republican would be worse. However, realism alone cannot explain the utter absence of a push for an alternative Democratic candidate or organized opposition to Obama’s policies on civil liberties in Congress during his term. It looks more like a cult of personality. Obama’s policies have become secondary to his persona.

Ironically, had Obama been defeated in 2008, it is likely that an alliance for civil liberties might have coalesced and effectively fought the government’s burgeoning police powers. A Gallup poll released this week shows 49% of Americans, a record since the poll began asking this question in 2003, believe that “the federal government poses an immediate threat to individuals’ rights and freedoms.” Yet the Obama administration long ago made a cynical calculation that it already had such voters in the bag and tacked to the right on this issue to show Obama was not “soft” on terror. He assumed that, yet again, civil libertarians might grumble and gripe but, come election day, they would not dare stay home.

This calculation may be wrong. Obama may have flown by the fail-safe line, especially when it comes to waterboarding. For many civil libertarians, it will be virtually impossible to vote for someone who has flagrantly ignored the Convention Against Torture or its underlying Nuremberg Principles. As Obama and Atty. Gen. Eric H. Holder Jr. have admitted, waterboarding is clearly torture and has been long defined as such by both international and U.S. courts. It is not only a crime but a war crime. By blocking the investigation and prosecution of those responsible for torture, Obama violated international law and reinforced other countries in refusing investigation of their own alleged war crimes. The administration magnified the damage by blocking efforts of other countries like Spain from investigating our alleged war crimes. In this process, his administration shredded principles on the accountability of government officials and lawyers facilitating war crimes and further destroyed the credibility of the U.S. in objecting to civil liberties abuses abroad.

Olbermann and Moulitsas on Kurtz and Ailes

The Failure of Neo-Liberal Politics

As Scorn for Vote Grows, Protests Surge Around Globe

By NICHOLAS KULISH, The New York Times

Published: September 27, 2011

Increasingly, citizens of all ages, but particularly the young, are rejecting conventional structures like parties and trade unions in favor of a less hierarchical, more participatory system modeled in many ways on the culture of the Web.

In that sense, the protest movements in democracies are not altogether unlike those that have rocked authoritarian governments this year, toppling longtime leaders in Tunisia, Egypt and Libya. Protesters have created their own political space online that is chilly, sometimes openly hostile, toward traditional institutions of the elite.



In the wake of the Soviet Union’s collapse in 1991, a consensus emerged that (neo) liberal economics combined with democratic institutions represented the only path forward. That consensus, championed by scholars like Francis Fukuyama in his book “The End of History and the Last Man,” has been shaken if not broken by a seemingly endless succession of crises – the Asian financial collapse of 1997, the Internet bubble that burst in 2000, the subprime crisis of 2007-8 and the continuing European and American debt crisis – and the seeming inability of policy makers to deal with them or cushion their people from the shocks.



Mr. Hazare’s anticorruption campaign tapped a deep chord with the public precisely because he was not a politician. Many voters feel that Indian democracy, and in particular the major parties, the Congress Party and the Bharatiya Janata Party, have become unresponsive and captive to interest groups. For almost a year, India’s news media and government auditors have exposed tawdry government scandals involving billions of dollars in graft.



The political left, which might seem the natural destination for the nascent movements now emerging around the globe, is compromised in the eyes of activists by the neoliberal centrism of Bill Clinton and Tony Blair. The old left remains wedded to trade unions even as they represent a smaller and smaller share of the work force. More recently, center-left participation in bailouts for financial institutions alienated former supporters who say the money should have gone to people instead of banks.

The entrenched political players of the post-cold-war old guard are struggling. In Japan, six prime ministers have stepped down in five years, as political paralysis deepens. The two major parties in Germany, the Christian Democrats and the Social Democrats, have seen tremendous declines in membership as the Greens have made major gains, while Chancellor Angela Merkel has watched her authority erode over unpopular bailouts.

In many European countries the disappointment is twofold: in heavily indebted federal governments pulling back from social spending and in a European Union viewed as distant and undemocratic. Europeans leaders have dictated harsh austerity measures in the name of stability for the euro, the region’s common currency, rubber-stamped by captive and corrupt national politicians, protesters say.

“The biggest crisis is a crisis of legitimacy,” Ms. Solanas said. “We don’t think they are doing anything for us.”

Why Liberals Are Lame: McCarthyite Identity Politics as Cover for Bankrupt Policies

Yves Smith, Naked Capitalism

09/28/2011

The latest desperate strategy of Obama’s spin-meisters highlights the rot at the core of the Democratic party: the heavy handed use of identity politics as a cover for neoliberal policies that betray the very groups the party purports to represent.



(A)s Obama’s economic policies have failed to pull the economy out of its crisis-induced deep malaise, he has done nothing different save get more pissy and double down on his failed strategy of selling out the middle class. His recent, and no doubt desperation-induced effort to rekindle the support of his badly abused base via gestures like a millioniares’ tax, are likely to go the way of past promises of change: they will be watered down to thin gruel so as not to ruffle his moneyed backers. It is remarakbly disingenuous for Harris-Perry to contend that dissatisfaction with Obama results from racism, as opposed to (among other things) ineffective policy responses to substantial and widespread economic stress.



The left is obsessed with what ought to be peripheral concerns, namely, political correctness and Puritanical moralizing, because it is actually deeply divided on the things that matter, namely money and the role of the state. The Democrats have been so deeply penetrated by the neoliberal/Robert Rubin/Hamilton Project types that they aren’t that different from the right on economic issues. Both want little regulation of banking and open trade and international capital flows. Both want to “reform” Medicare and Social Security. Both are leery of a welfare state, the Republicans openly so, the Rubinite Dems with all sorts of handwringing and clever schemes to incentivize private companies that generally subsidize what they would have done regardless (note that Americans have had a mixed record in providing good social safety nets, but a big reason is our American exceptionalism means we refuse to copy successful models from abroad).

The powerful influence of moneyed interests on the Democratic party has achieved the fondest aims of the right wing extremists of the 1970s: the party of FDR is now lukewarm at best in its support of the New Deal. Most Democrats are embarrassed to be in the same room with union types. They are often afraid to say that government can play a positive role. They were loath to discuss the costs of income inequality until it became so far advanced that it is now well nigh impossible to reverse it. After all, that sort of discussion might sound like class warfare, and God forbid anyone on the mainstream left risk sound like Marx.



So the Democratic party (and remember, our two party system makes the Democrats the home by default for the left) pretends to be a safe haven for all sorts of out groups: women, gays, Hispanics (on their way to being the dominant group but not there yet), blacks, the poor. But this is stands in stark contradiction to its policies of selling out the middle class to banks and big corporate interests, just on a slower and stealthier basis than the right. So its desperate need to maintain its increasingly phony “be nice to the rainbow coalition” branding places a huge premium on appearances. It thus uses identity politics as a cover for policy betrayals. It can motivate various groups on narrow, specific issues, opening the way for the moneyed faction to get what it wants.

It took most people far too long to get that Obama was a phony because the presumption that a black man would be sympathetic to the fate of the downtrodden is a deeply embedded but never voiced prejudice (and this bias is exploited successfully by the right in depicting Obama as a socialist). Other elements of traditional Democratic associations played into the Obama positioning: his Administration is chock full of technocratic Harvard wonks, and the last time an Administration was so dominated by technocrats was under Kennedy, the last Democratic Administration to have a strongly positive (indeed romanticized) image. (Yes, the Clintons also liked fancy resume types, but they also placed a very high premium on loyalty, and with the result that long-standing supporters often wound up in surprisingly senior roles).

These traditional iconic symbols of liberalism – secular urban elitism, blackness, technocratic skill, micro-issue identity based political organizing groups – have been fully subverted in the service of banking interests. Obama is the ultimate, but not the only, piece of evidence that these symbols are now used simply to con the Democratic base out of their support and money.

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