Archive for the ‘Politics’ Category

Secret “Free Trade” Negotiations Will Gut Regulations, Further Enrich Multinationals and Big Financial Firms

Thursday, May 16th, 2013

– I’ve written before on the Trans-Pacific Partnership (TPP) which is being negotiated between the United States, New Zealand, Brunei, Australia, Chile, Singapore, Peru, Vietnam, Canada, Mexico and Malaysia.  Japan, Korea, Taiwan and the Philippines have also expressed interest in joining.  

– I’ve also written on another agreement that Canada is negotiating, the FIPPA, that is just as toxic to human rights and the ability of the signatory government to legislate freely to protect the health and the rights of their peoples.

– These agreements, largely being drawn up and agreed to in secret, are a reflection of how very deeply the large multinational corporate interests have gotten into the knickers of our governments.

– These agreements do not favor the individual sovereign governments of any of their possible signatories.  The U.S., which is perhaps the largest player in the group, is not much better off that the other countries save for the fact that it is the home ground for many of the large corporate players backing these agreements.  

– But, as you will read, even U.S. Congressmen are complaining about being locked out of the agreements while the representatives of major corporations freely sit in and help shape what’s to be signed.

– Let’s get that straight.  HalliburtonChevronPHRMAComcast, and the Motion Picture Association of America can all see the current texts of the negotiations – and United States Senator Ron Wyden cannot?

– dennis

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It’s a sign of the times that a reputable economist, Dean Baker, can use the word “corruption” in the headline of an article describing two major trade deals under negotiation and no one bats an eye.

By way of background, the Administration is taking the unusual step of trying to negotiate two major trade deals in the same timeframe. Apparently Obama wants to make sure his corporate masters get as many goodies as possible before he leaves office. The Trans-Pacific Partnership and the US-European Union “Free Trade” Agreement are both inaccurately depicted as being helpful to ordinary Americans by virtue of liberalizing trade. Instead, the have perilous little to do with trade. They are both intended to make the world more lucrative for major corporations by weakening regulations and by strengthening intellectual property laws. The TPP has an additional wrinkle of being an “everybody but China” deal, intended to strengthen ties among nations who will then be presumed allies of America in its efforts to contain China. As we indicated via a link to an Asia Times article over the weekend, that’s proving to be a bit fraught as Japan is flexing its muscles militarily and thus less inclined to follow US directives tamely.

One of the most disturbing aspects of both negotiations is that they are being held in secret….secret, that is, if you are anybody other that a big US multinational who has a stake in the outcome.

Baker describes in scathing terms why these types of deals are bad policy:

…these deals are about securing regulatory gains for major corporate interests. In some cases, such as increased patent and copyright protection, these deals are 180 degrees at odds with free trade. They are about increasing protectionist barriers.

All the arguments that trade economists make against tariffs and quotas apply to patent and copyright protection. The main difference is the order of magnitude. Tariffs and quotas might raise the price of various items by 20 or 30 percent. By contrast, patent and copyright protection is likely to raise the price of protected items 2,000 percent or even 20,000 percent above the free market price. Drugs that would sell for a few dollars per prescription in a free market would sell for hundreds or even thousands of dollars when the government gives a drug company a patent monopoly…

The idea is that once a deal is completed there will be enormous political pressure for Congress to approve it no matter what it contains….news outlets like the Washington Post will use both their news and opinion sections to bash members of Congress who oppose a deal. They will be endlessly portrayed as ignorant Neanderthals who do not understand economics.

The reality of course is that it is the “free traders” who either do not understand economics or deliberately choose to ignore it. Many of the provisions that we are likely to see in these deals, like stronger patent protections, will slow growth and cost jobs.

These deals will also lead to more upward redistribution of income. The more money that people in the developing world pay to Pfizer for drugs and Microsoft for software, the less money they will pay for the products that we export, as opposed to “intellectual property rights”….

This is yet another case where the government is working for a tiny elite against the interests of the bulk of the population.

If that isn’t bad enough, there’s another side of these planned pacts that is often simply ignored. These “trade” deals are Trojan horses to erode or eliminate national regulations. Baker anticipates that these deals will include sections that would limit government regulation (including at the state and local level) on fracking and could revive much of the internet surveillance that reared its ugly head in the failed SOPA.

– More…

 

‘This Is Working’: Portugal, 12 Years after Decriminalizing Drugs

Friday, April 12th, 2013

Twelve years ago, Portugal eliminated criminal penalties for drug users. Since then, those caught with small amounts of marijuana, cocaine or heroin go unindicted and possession is a misdemeanor on par with illegal parking. Experts are pleased with the results.

Before he got involved in the global war on drugs, João Goulão was a family physician with his own practice in Faro, on Portugal’s Algarve coast. Arriving in his small office in Lisbon, the 58-year-old tosses his jacket aside, leaving his shirt collar crooked. He looks a little tired from the many trips he’s taken lately — the world wants to know exactly how the experiment in Portugal is going. Goulão is no longer able to accept all the invitations he receives. He adds his latest piece of mail to the mountain of papers on his desk.

From this office, where the air conditioning stopped working this morning, Goulão keeps watch over one of the world’s largest experiments in drug policy.

One gram of heroin, two grams of cocaine, 25 grams of marijuana leaves or five grams of hashish: These are the drug quantities one can legally purchase and possess in Portugal, carrying them through the streets of Lisbon in a pants pocket, say, without fear of repercussion. MDMA — the active ingredient in ecstasy — and amphetamines — including speed and meth — can also be possessed in amounts up to one gram. That’s roughly enough of each of these drugs to last 10 days.

These are the amounts listed in a table appended to Portugal’s Law 30/2000. Goulão participated in creating this law, which has put his country at the forefront of experimental approaches to drug control. Portugal paved a new path when it decided to decriminalize drugs of all kinds.

“We figured perhaps this way we would be better able get things under control,” Goulão explains. “Criminalization certainly wasn’t working all that well.”

Much the Same as a Parking Violation

As part of its war on drugs, Portugal has stopped prosecuting users. The substances listed in the Law 30/2000 table are still illegal in Portugal — “Otherwise we would have gotten into trouble with the UN,” Goulão explains — but using these drugs is nothing more than a misdemeanor, much the same as a parking violation.

Why set the limits on these drugs at 10 days’ worth of use, though?

“Well, it’s a limit, which by its nature is arbitrary,” Goulão says. Now the head of Portugal’s national anti-drug program and an important figure in Portuguese health policy, he still talks like an easygoing family doctor. Arrayed on Goulão’s windowsill are photographs, including one of him with Richard Branson, the British billionaire and hot air balloon operator. Another shows Goulão with the king of Spain. Both these men have received personal briefings on Portugal’s new drug program from Goulão.

“At the point when we designed the law, we had hardly any data to draw on,” Goulão relates. “We weren’t the least bit certain this would work.”

The question at stake: How can a government keep its citizens from taking dangerous drugs? One way is to crack down on those who provide the drugs — the cartels, the middle men and the street dealers. Another approach is to focus on the customers — arresting them, trying them and imprisoning them. Legal prosecution — as both a control mechanism and a deterrent — is the chosen approach for most governments.

Giving Up on the Idea of a Drug-Free World

“It’s important that we prevent people from buying drugs, and taking drugs, using every method at our disposal,” says Manuel Pinto Coelho, 64, the last great opponent of Goulão’s experiment. Pinto Coelho wants his country to return to normalcy, in the form of the tough war on drugsthat much of the rest of the world conducts.

Pinto Coelho is a doctor too. He has run rehab centers and written books about addiction. Now he’s at odds with former colleagues and with “the system,” as he says.

His greatest concern is that his country has given up on the idea of a drug-free world. How, Pinto Coelho asks, is it possible to keep young people away from drugs, when everyone knows exactly how many pills can legally be carried around? He still believes deterrents are the best form of prevention and that cold turkey withdrawal is the best treatment method. He is also fighting the extensive methadone program Portugal began as part of its drug policy reform, which now provides tens of thousands of heroin addicts with this substitute drug.

These days, Pinto Coelho earns his living running diet clinics, but he spends his evenings writing letters and drafting presentations on his country’s “absurd drug experiment.” He travels to symposiums to warn the rest of the world of its dangers. At home in Portugal, his critical perspective has made him an outsider, but he says he’s been well received abroad. As if offering proof, he shows a fact sheet issued by the United States Office of National Drug Control Policy, a brief and skeptically worded report on the Portuguese experiment.

The Freedom that Overwhelmed the Country

When João Goulão wants to explain why it is Portugal in particular that came up with the idea to stop prosecuting drug users, he starts with the country’s Carnation Revolution.

In 1974, Portugal broke free from nearly 50 years of military dictatorship, a political shift symbolized by the carnations soldiers stuck in the muzzles of their rifles.”Suddenly, the drugs were there,” Goulão says, as Portuguese returning from the country’s overseas colonies brought marijuana with them. Goulão, too, says he smoked pot back then. He was in his early twenties and “drugs promised us freedom.”

But it was a freedom that soon overwhelmed the country. When Goulão established his doctor’s practice in Faro, he soon found himself approached by parents whose children were no longer just smoking joints, but had moved on to heroin. Sometimes the children came to him as well, and Goulão had no idea how to treat them. When the first state-run rehab clinic opened in Lisbon, Goulão attended a training course there.

At that point, he says, the heroin epidemic was just beginning.

In the 1980s, cheap heroin from Afghanistan and Pakistan began flooding Europe. Portugal was not the only country affected, but Goulão says his nation was hit particularly hard, because people here had little idea how to handle drugs. “We were naïve,” he says.

The number of people taking illegal drugs in Portugal was low compared with other countries, but of those who did consume drugs, an unusually high number of them fell into the category that specialists in this field refer to as “problem drug users.”

From the pile of papers on his desk, Goulão unearths a copy of a speech he recently gave in Paris. Flipping through it, he finds the figure he’s looking for: 100,000. This is the number of severely drug-addicted people in Portugal at the height of the epidemic, in the mid-1990s. Portugal’s total population at the time was just under 10 million. The number of drug addicts who became infected with HIV was also considerably higher than in most other countries.

A drug slum formed in Lisbon, at the edge of a neighborhood known as Casal Ventoso. Here junkies slept in shacks or in the garbage, in extremely poor conditions. “They shot up on the street, and they died on the street,” Goulão says. Anyone in Portugal could observe this phenomenon — on TV, in newspaper pictures or even from the nearby highway.

– More…

– See also this story:  

 

Secret Files Expose Offshore’s Global Impact

Friday, April 12th, 2013

– This story is going to have legs for a long time, folks.  High net worth individuals and politicos all over the globe must be crapping themselves wondering what’s going to come out of this story.

– All us small folk are paying higher and higher taxes while the disparity between the rich and poor grows wider and wider and the folks on the top are clearly not paying their share.  They are, in fact, working very hard to pay little or nothing.

– Corporations and the rich are gaming the situation to push the tax burdens down on the middle classes and that’s one of the reasons why the middle classes are beginning to look like an endangered species.

– This can only go so far and there will be a backlash.   This, if carried far enough, is the stuff revolutions are made of.

– dennis

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Dozens of journalists sifted through millions of leaked records and thousands of names to produce ICIJ’s investigation into offshore secrecy ­

A cache of 2.5 million files has cracked open the secrets of more than 120,000 offshore companies and trusts, exposing hidden dealings of politicians, con men and the mega-rich the world over.

The secret records obtained by the International Consortium of Investigative Journalists lay bare the names behind covert companies and private trusts in the British Virgin Islands, the Cook Islands and other offshore hideaways.

They include American doctors and dentists and middle-class Greek villagers as well as families and associates of long-time despots, Wall Street swindlers, Eastern European and Indonesian billionaires, Russian corporate executives, international arms dealers and a sham-director-fronted company that the European Union has labeled as a cog in Iran’s nuclear-development program.

The leaked files provide facts and figures — cash transfers, incorporation dates, links between companies and individuals — that illustrate how offshore financial secrecy has spread aggressively around the globe, allowing the wealthy and the well-connected to dodge taxes and fueling corruption and economic woes in rich and poor nations alike.

The records detail the offshore holdings of people and companies in more than 170 countries and territories.

The hoard of documents represents the biggest stockpile of inside information about the offshore system ever obtained by a media organization. The total size of the files, measured in gigabytes, is more than 160 times larger than the leak of U.S. State Department documents by Wikileaks in 2010.

– More…

 – Later breaking stories on this subject…

Ottawa weighing plans for bank failures

Friday, April 12th, 2013

– Cyprus and the government’s actions there to seize depositor funds to rescue a failing economy and its banks wasn’t a one-off.  

– This same plan is wending it way through the parliament here in New Zealand under the guidance of the conservative National Government.  And, just as in the article, below, about Canada’s movements in the direction, the New Zealand government is doing their very best to deflect any and all questions about whether or not money would or would not be taken from depositor accounts of a bank to cover the shortfalls if that bank failed.  

– No one in New Zealand has explained why the bank’s officers should not first be stripped of all their assets before anyone should think of going after the bank’s depositors.  

– And no one has explained why, if it is the government’s rightful roll to regulate banks to prevent such things, why the government should not be culpable and why, if they were, they should not spread the burden of their malfeasance across the entire tax-payer base of the country to more fairly spread the load.

– And finally no one has explained why of these three; the bank’s officers, the government and the bank’s depositors, why the depositors (who would would obviously know the least about the bank’s stability) should be the ones tasked with paying the penalty for a bank’s failure.

– Yes, God damn it, the people DO want to know the answers to these questions.

– dennis

Canadian Federal government looking at ‘Cyprus solution’

Buried deep in last month’s federal budget is an ambiguously worded section that has roiled parts of the financial world but has so far been largely ignored by the mainstream media.

It boils down to this: Ottawa is contemplating the possibility of a Canadian bank failure — and the same sort of pitiless prescription that was just imposed in Cyprus.

Meaning no bailout by taxpayers, but rather a “bail-in” that would force the bank’s creditors to absorb the staggering losses that such an event would inevitably entail.

If that sounds sobering, it should. While officials in Ottawa are playing down the possibility of a raid on the bank accounts of ordinary Canadians, they chose not to include that guarantee in the budget language.

Canadians tend to believe their banks are safer and more backstopped than elsewhere in the world. The federal government enthusiastically promotes the notion, and loves to take credit for it.

It may well be true, even if Canada’s six-bank oligopoly isn’t terribly competitive, at least in comparison to the far more diverse American banking universe.

But in the ever-more insecure world that has unfolded since the financial meltdown of 2008, it is also increasingly clear that nothing is safe anymore, not even blue-chip bank stocks and bonds or even, in the case of the Cyprus bail-in, private bank accounts.

And now, Canada is making a bail-in official government policy, too.

“The government proposes to implement a bail-in regime … designed to ensure that, in the unlikely event that a systemically important bank depletes its capital, the bank can be recapitalized and returned to viability,” says Finance Minister Jim Flaherty’s March 21 budget, on page 144.

That would be done, the document says, through the rapid conversion of “certain bank liabilities.”

Ottawa’s budget document leaves the definition of “certain liabilities” to the reader’s imagination.

Bank deposits?

There has been very little public debate about the plan to date, but Finance Department officials and the banks protest it should never be taken to mean small personal deposits would be seized.

Deposits are insured by the Canadian Deposit Insurance Corporation, up to $100,000, and the inviolability of that insurance is key to maintaining the crucial public trust.

“The risk of the Canadian government not honouring its insurance on deposits is as close to zero as you can get,” says Craig Alexander, chief economist at TD Canada Trust.

Perhaps.

As the Cyprus meltdown proceeded, it became clear that Europe’s finance ministers and central banks, encouraged by the International Monetary Fund, were not only willing to freeze and seize uninsured deposits over 100,000 euros, they were also initially willing to cancel deposit insurance and go after small depositors, too.

In the end, the plan was rewritten, and insured deposits were protected. But the signal had been sent: The Europeans and the IMF had been prepared to do the unthinkable.

Holland’s finance minister then declared that bail-ins would be the template for all future bank rescues in Europe, and that he could not rule out seizure of deposits elsewhere.

– More…

 

A Capitalist Command Economy

Thursday, March 7th, 2013

George Monbiot, as I have said several times, is an excellent writer who highlights issues that we all need to be aware of.

– I’ve discussed corporations many times here myself.  I decry their growing power over our governments and over our lives.   What Monbiot’s talking about here really gives me the chills and has made me wonder if the ‘takeover’ I’ve been on about hasn’t bigger aims than I’d previously imagined before.

– He discusses here how the conservative government in the UK seems hell-bent on converting schools from the public to the private model which is scary enough.

– But, it made me imagine that corporations, which are gaining control more and more over governments, are also moving into controlling all the things that we think of as the rightful province of government; our schools, our utilities, our water, our power, our prisons, our road systems, and just about everything else.  I say ‘rightful’ because government is suppose to do these things for the good of the people and the nation.

– It will be a radically different model if these things all end up being done by corporations for profit because they won’t be doing them for the good of the people but, rather, for the good of the corporations’s profits.  And simple look as how things have gone in the U.S., as they’ve been experimenting with privatizing prisons there, should give us all deep pause.

– dennis

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Forcing schools into the hands of unelected oligarchs is the latest contradiction of everything the market fetishists claim to stand for.

By George Monbiot, published in the Guardian 5th March 2013

So much for all those treasured Tory principles. Choice, freedom, competition, austerity: as soon as they conflict with the demands of the corporate elite, they drift into the blue yonder like thistledown.

This is a story about England’s schools, but it could just as well describe the razing of state provision throughout the world. In the name of freedom, public assets are being forcibly removed from popular control and handed to unelected oligarchs.

All over England, schools are being obliged to become academies: supposedly autonomous bodies which are often “sponsored” (the government’s euphemism for controlled) by foundations established by exceedingly rich men. The break-up of the education system in this country, like the dismantling of the National Health Service, reflects no widespread public demand. It is imposed, through threats, bribes and fake consultations, from on high.

– More…

– Research thanks to Piers L.

 

Food, Corporations, Government and who’s got your back?

Tuesday, March 5th, 2013

– This is an original piece.  I feel pretty strongly about this stuff.  Comments will be welcomed.

– dennis

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The world has changed. I feel it in the water. I feel it in the earth. I smell it in the air. Much that once was is lost….”

~ Galadriel – Lord of the Rings

 Things are changing all around us though most of us do not see it.   Indeed, the world is nothing but change, and when enough change is going on around you, it is easy to miss some of it.

Administrations change, inflation rises and falls, the stock market wobbles along, prices at the market and at the gas station always seem to rise but then, to be fair, our wages seem rise as well.  Sometimes, amid all that change, it’s hard to see if we’re losing or winning.  After all, we’ve got businesses, families and lives to live.   The daily round of just getting on with things absorbs us.

Maybe it has always gone on but it seems to me that if we want to pick out just one area where things are going wrong, we could talk about food.

Food is big money because, after all, the millions of people who comprise a nation all have to eat and most of them are not farmers.

So, food industries are born and food is brought to us through vast networks of growers, transporters, processors, storage facilities, packagers and wholesale and retail outlets.

There are people and corporations out there making vast fortunes supplying us with food.  And therein lies a problem because where ever big money goes, there also goes big temptation.

Recently, here in New Zealand where I live, the top local executive of the American corporation, Coca-Cola, criticized New Zealand for being ‘anti-business‘ in an interview (http://tinyurl.com/br6dxex) that he gave on the occasion of his departure from the country.  Some of us here in New Zealand, myself included, were not amused.

But the real irony of his comments came a few weeks later when a story came out in the New York Times entitled, “The Extraordinary Science of Addictive Junk Food” (http://tinyurl.com/as52ncb).

This story details the efforts undertaken by major American food companies (like Nestlé, Kraft, Nabisco, General Mills, Procter & Gamble, Coca-Cola and Mars) to create foods that we just cannot resist.

On the face of it, that doesn’t sound too bad, does it?   It’s just good old Capitalism creating better products for the benefit of the American consumer?

But, it’s not all good news, I’m afraid.

These companies are corporations and they, especially the big publically held ones, are focused on only one thing and that is the maximization of profit for their shareholders.

When I say this (about corporations being solely about profits), I’m afraid that some folks might think this is some sort of a Liberal conspiracy theory on my part.

Well, it’s not.  Corporations are required in the U.S. by law to be primarily focused on profit.   You can read about it here: (http://tinyurl.com/3y63to)

In search of these profits, the big food companies, like those mentioned above, have established large and sophisticated laboratories setup to work out exactly how much of ‘this’ and how much of ‘that’ they should put into their products to make them as appealing to us as possible.  They know that the more appealing the products are, the more they will sell and thus the more they will profit.

Sadly, these companies have found through research that to maximize their sales they generally need to add more salt, fat and sugar.  And they also add preservatives and coloring agents and whatever else helps with the product’s visual appeal and its shelf life.  We all know that more salt, fat and sugar are not good for us, the consumers.   But, in the quest for profit, that becomes irrelevant.

I’m not going to go into a lot of detail here about how they optimize the appeal of their foods because it’s all in the article cited.

But remember, friends, that it is you and those you love that these companies are trying to manipulate into eating their junk food.   And they are not doing it for your health or welfare.

Quite simply, these folks do not care about whether the foods they create for profit  are making more and more of us obese or prone to diabetes (and they are making us more obese and prone to diabetes).   These concerns are irrelevant to them unless they should start to get ‘bad press’ that begins to hurt their sales.  But whichever way they turn, be assured it will be about profit.

So, to return to the subject of the Coca-Cola executive who criticized New Zealand for being ‘business unfriendly’ as he left?  One has to wonder what exactly he was criticizing New Zealanders for?  Did he judge them as  ‘unfriendly’ to business because people here in New Zealand might want to have some say in what foods they eat and how those foods might affect their health?

An American, Sinclair Lewis, said the following:

“It is difficult to get a man to understand something when his salary depends on his not understanding it.”

I think this would be the reason why the American Coca-Cola executive could have trouble understanding what the New Zealanders are concerned about.

From his point-of-view, such worries could interfere with Coca-Cola’s profits and thus with his career with Coca-Cola.  So he labels New Zealand ‘unfriendly’ to business.  That’s cynical in my view.  Does he think that New Zealanders are suppose to trade their health for Coca-Cola’s profits?

This story I’ve been sharing with you about junk food science is just one example of how corporations will pursue their profits without regard for the health of the people they sell their products to.

And this is a global problem.   If one country resists having their health corrupted in the name of corporate profits, then the corporation involved can always move along to another country.

As an example, let’s reflect a bit on the tobacco industry.

These days, people take it for granted in the U.S. that nicotine is addictive and that smoking causes cancer.

But it wasn’t always so.   You don’t have to be too old to remember a time not long ago in 1994, when several of the top U.S. tobacco executives went before the U.S. Congress and testified that nicotine was not addictive (http://tinyurl.com/4xofj7).  But the tobacco industry’s real subterfuge with regard to defending their profits began long before that.  If you follow this link (http://tinyurl.com/cl78heo), you can read about this deeper history which is referred to as ‘Operation Berkshire’.

After the congressional hearings and a lot of debate, the U.S. forced tobacco companies to lower the tar and nicotine levels in their products and to place health warnings on their packaging.

The tobacco corporations simply shifted their focus to concentrate more on other countries where there were less protections against their predatory practices.   The Philippines was one such target.   That poor country has long been a prime target of the tobacco industry.  You can read about it here: (http://tinyurl.com/cgtb4vw)

So, let me point out yet once again, that these strategies by tobacco corporations to advance and expand their markets whenever and where ever they can, with no regard for the health of consumers, is simply standard behavior for corporate entities.  Their primary motivation is the maximize the profits of their shareholders and the rest, all the human misery they cause, is irrelevant to them.

All of this begs the question, for those of you who are fortunate enough to own stocks or mutual funds, do you know what corporations your money is invested in?   Do you know what they are doing?  Are you making profits on investments that, if you really stopped to see what these corporations are doing, that you would find repugnant?

Not long after I read the story about junk food science in the U.S., I began to read another one about the Horsemeat Scandal in Europe.  Details are here: (http://tinyurl.com/cobggsg).

You’d have to have been living in a cave recently to have not heard of how the Europeans discovered through DNA testing that all over western Europe, meat labeled as beef actually contained significant amounts of horsemeat.

It’s a sordid tale and at the bottom of it, as always, it will be found that someone somewhere (whether an individual or a corporation) found a way to make extra money by cheating and substituting the cheaper horsemeat.  And they didn’t think they’d get caught or they thought that they’d make so much money that the risk would be worth it.  I doubt that they thought much about whether or not folks wanted to eat horsemeat.

I know that a lot of people in the U.S. and in other countries as well (like here in New Zealand), think that we just have too much government.

But isn’t it the government that is suppose to protect us from horsemeat scandals, from aggressively marketed junk food and from cigarettes, among things?

Some folks believe that the markets should be left alone and allowed to regulate themselves.  They believe that in a free market “cheaters never prosper“.

Well, I think that history has shown over and over again ad nauseam that this is a particularly naive point of view.  The evidence clearly seems to be that cheaters prosper quite a bit.

Another article appeared about a week ago.   This time the subject was bogus seafood in the U.S.

This was a great wake-up call for everyone in the U.S. who might have been smirking over their morning coffee and newspaper at  the horsemeat scandal in Europe.

Here’s the story in all its gory detail if you want to skip right to it: (http://tinyurl.com/buwrj5b).

It turns that an organization called Oceana.Org conducted DNA testing and determined that 33% of all fish samples subjected to testing in the U.S. were mislabeled.

That 59 percent of fish sold as tuna in U.S. restaurants and grocery stores is not actually tuna.

By retail outlets they found that, seafood was mislabeled 18 percent of the time in grocery stores, 38 percent of the time in restaurants and 74 percent of the time in sushi venues.

That 84 percent of fish samples described as ‘white tuna’ were actually Escolar.  Escolar is a type of Snake Mackerel that has rich, buttery flesh, but unpleasant side effects.

What side-effects, you ask?

Oh, just ‘prolonged, oily anal leakage’ for some of the people who eat it; nothing much.

And it only takes about 6 ounces of Escolar to cause this effect.

So, let’s go back to the ‘less government’ idea again.

Who exactly is it that we think is going to test for stuff like this?  Who is it that will ensure that when someone sells us something they call ‘Tuna’, that it is what they say it is?

While you are thinking about that, consider that 90% of all seafood consumed in the U.S. is imported.  And less than 1% of that is tested.

Consider as well that human nature seems to be such that there’s always going to be someone who, when given the opportunity to make significantly more money, is going to ‘work’ the system to do so if they can.  We can count on it.

So, shouldn’t it be obvious that someone is going to substitute cheaper varieties of fish for the more expensive ones unless they are prevented from doing so?

We’d all like to think that folks won’t cheat us, but the blindingly obvious fact is, many of them will.

In this case, it was an organization called Oceana.org (http://tinyurl.com/bxawv7x) that discovered the substitutions; not the U.S. government.

That was lucky for the American public.  But in my opinion, people should not have to rely on luck to uncover this stuff.

So, when you hear the siren song of ‘less government’ you should think about all of this.

So, why doesn’t the U.S. government protect Americans better on these sorts of issues now?   Well, sometimes they do.  But as the opening quote of the article suggests, “The world has changed”.  And it is continuing to change.

Part of the reason is because increasingly a lot of Americans believe in the idea of “less government”.  And, because they vote, their beliefs are reflected how the government runs and what it does.

Another reason is because it is in the best interest of many big corporations and high-net-worth individuals to prevent the government from making laws that interfere with their profits.  Thus these folks unleash armies of lobbyists and bags of money in their efforts to influence and control law makers.

And yet another reason is because of what’s called “The Revolving Door”.  The Revolving Door is the practice whereby a man who yesterday worked as an executive at a big coal mining company will somehow today be appointed to a high office in government to oversee the coal industry.

You can read about this practice here: (http://tinyurl.com/yzhndor)

The Revolving Door practice has been going on for a long time and it truly is an example of letting the fox into the chicken coop.  But, somehow in the U.S. (and in other countries) this has become an accepted way of doing things.  And a seriously dysfunctional way, in my opinion.

Regarding “less government”, I don’t like the over-the-top Liberal ‘nanny-state’ anymore than the next individual.  But people do, in fact, need government to  regulate business so we can all maintain our quality of life.   What we don’t need are governments that exist primarily to protect the rights of the corporations.

But, in my view, the sad truth is that these days corporations are slowly and inexorably increasing their control over our governments.

Witness the “Citizens United” ruling by the U.S. Supreme Court that says “corporations are people” (http://tinyurl.com/b4czkdp).  As a result of this ruling, corporations cannot now be limited in how much money they can donate to political campaigns.   Does that stink or what?

What do I want from my government in the U.S. or here in New Zealand (or anywhere else for that matter)?

I’d like to know that my government inspects my food and ensures that if I buy something called Tuna, that that’s what I’m getting.

I’d like a government that exerts itself to keep its populace well informed as to why the junk food being cooked up by the large corporations to maximize their profits may not be the best thing for people to eat.

I’d live a government staffed by people who haven’t just, for example, walked out the door of a coal mining company and are now sitting at a desk in the government office responsible for regulating the same coal industry.

I’d like a government that realizes that corporations bent solely on profit may not always make the best decisions for a people or for a country.  A government that will protect us against their worst excesses.

These are common sense ideas to me and most of us, I believe, would like think that this is how things are done.

But, I have to tell you, they are in general not being done this way and every day the influence of the corporations and big money over our governments grows.

Would you believe me if I said that corporations don’t even care about the health of nations?

Many people think that the economic problems in the U.S. began long before the melt-down of 2008.

They think that it actually began when many of the big U.S. based multi-national corporations realized that they could increase their profits by moving their U.S. based manufacturing operations overseas.  The corporate logic was that it will cost less to make it over there and we can therefore make more profit when we sell it.

That was good thinking for those corporations but it was bad for America.  The net result?   America has beggared itself.

Just ask yourself, how can a country remain a net creator of wealth when it isn’t making anything to sell?

And if it is not generating more than it is spending, how it can ever expect to pay off an ever increasing national debt?

So, off shoring was good for the corporations and absolutely ruinous for the American economy.   But the corporations didn’t care.  It was, as always, all about their profits.

So, the American national debt rises every year and the battles in Washington, D.C. about what to do about the debt get more and more rancorous all the time.  Everyone’s fallen into blaming everyone else because there isn’t any good solution to the mess the corporations have put us into.

The Liberals blame the Conservatives and the Conservatives blame the Liberals and the big corporate interests who are getting richer and richer just keep pouring money and lobbyists into Washington, D.C. every year to make sure that things don’t change in any way that will affect their profits.

But it gets even worse.

The main overseas beneficiary of sending American manufacturing offshore has been China.

China is the largest Communist country in the world.  China used to be dirt poor and now it is overflowing in American dollars.

America, helped by the mercenary multi-national corporations, has sent China all the money  it needs to convert the Chinese third rate, third-world military into something with first world capabilities so that now it is a force to be reckoned with.

The Chinese may look capitalistic but their government is Communist to the core and their ambition to remake us all in their image has never faded.

And, in the mean time, America’s having trouble paying its bills.

Corporations, unchecked, are a bad idea.  But they are, of course, just doing what comes natural to them when they seek profits above all else.

The truth is that they’re a lot like a junk-yard dog; it’s been trained to bite people and that’s what it does.   But you wouldn’t let a junk-yard dog run loose on the street, unchained, would you?

To be fair, corporations are good in many ways.  They drive innovation, they provide jobs, and they help the economy grow and prosper.   But they are too mono-maniacal in their focus on profit to be allowed to ‘run free’.  They, quite naturally, don’t care about the health of people or even the health of nations.

It’s my strong opinion that in every country, the number one priority of government should be to maximize the quality of life for the people of that nation.  The freedom of corporations should always be of a secondary priority.

Corporations should be allowed freedom of action only so long as their actions do not impinge on the quality of life or the freedom of the people.  Corporations will, of course, make less profits this way.  But this world should not primarily be about their profits but, rather, about the quality of life for all of us.

Until we make such a decision about our priorities, we will continue to be abused by those who care only about their profits.  Horsemeat, bogus fish, revolving doors, and foods designed to addict us and kill us.  How much evidence do we need?

Anonymous Hacks US Government Site, Threatens Supreme ‘Warheads’

Tuesday, February 12th, 2013

– This YouTube video makes for interesting viewing and it sets out a number of  grievances Anonymous has with the U.S. government’s escalating abuses of the rights of U.S. citizens.   It’s well worth a watch.

– Will it cause the U.S. government to change its ways?   I doubt it.  Most of the people involved on the U.S. government side are simple people doing their jobs who haven’t the courage or the imagination to see that the jobs they are increasingly doing are not in defense of the principles upon which the U.S. was founded but rather in defense of those powerful forces who are in the processing of capturing the U.S. system for their own gains.

– dennis

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The hacktivist group Anonymous hacked the U.S. federal sentencing website early Saturday, [January 26th, 2013] using the page to make a brazen and boisterous declaration of “war” on the U.S. government.

The group claims mysterious code-based “warheads,” named for each of the Supreme Court Justices, are about to be deployed.

As of midnight Pacific time, the front page of Ussc.gov — the Federal agency that establishes sentencing policies and practices for the Federal courts — is filled with a long screed in green on black, together with this YouTube video:  ➡

 – research thanks to Mashable

A Choice For Corporate America: Are You With America Or The Cayman Islands

Tuesday, February 12th, 2013

By Senator Bernie Sanders
February 9, 2013

When the greed, recklessness, and illegal behavior on Wall Street drove this country into the deepest recession since the 1930s, the largest financial institutions in the United States took every advantage of being American. They just loved their country – and the willingness of the American people to provide them with the largest bailout in world history. In 2008, Congress approved a $700 billion gift to Wall Street. Another $16 trillion in virtually zero interest loans and other financial assistance came from the Federal Reserve. America. What a great country.

But just two years later, as soon as these giant financial institutions started making record-breaking profits again, they suddenly lost their love for their native country. At a time when the nation was suffering from a huge deficit, largely created by the recession that Wall Street caused, the major financial institutions did everything they could to avoid paying American taxes by establishing shell corporations in the Cayman Islands and other tax havens.

In 2010, Bank of America set up more than 200 subsidiaries in the Cayman Islands (which has a corporate tax rate of 0.0 percent) to avoid paying U.S. taxes. It worked. Not only did Bank of America pay nothing in federal income taxes, but it received a rebate from the IRS worth $1.9 billion that year. They are not alone. In 2010, JP Morgan Chase operated 83 subsidiaries incorporated in offshore tax havens to avoid paying some $4.9 billion in U.S. taxes. That same year Goldman Sachs operated 39 subsidiaries in offshore tax havens to avoid an estimated $3.3 billion in U.S. taxes. Citigroup has paid no federal income taxes for the last four years after receiving a total of $2.5 trillion in financial assistance from the Federal Reserve during the financial crisis.

On and on it goes. Wall Street banks and large companies love America when they need corporate welfare. But when it comes to paying American taxes or American wages, they want nothing to do with this country. That has got to change.

Offshore tax abuse is not just limited to Wall Street. Each and every year corporations and the wealthy are avoiding more than $100 billion in U.S. taxes by sheltering their income offshore.

Pharmaceutical companies like Eli Lilly and Pfizer have fought to make it illegal for the American people to buy cheaper prescription drugs from Canada and Europe. But, during tax season, Eli Lilly and Pfizer shift drug patents and profits to the Netherlands and other offshore tax havens to avoid paying U.S. taxes.

Apple wants all of the advantages of being an American company, but it doesn’t want to pay American taxes or American wages. It creates the iPad, the iPhone, the iPod, and iTunes in the United States, but manufactures most of its products in China so it doesn’t have to pay American wages. Then it shifts most of its profits to Ireland, Luxembourg, the British Virgin Islands and other tax havens to avoid paying U.S. taxes. Without such maneuvers, Apple’s federal tax bill in the United States would have been $2.4 billion higher in 2011.

Offshore tax schemes have become so absurd that one five-story office building in the Cayman Islands is now the “home” to more than 18,000 corporations.

This tax avoidance does not just reduce the revenue that we need to pay for education, healthcare, roads, and environmental protection, it is also costing us millions of American jobs. Today, companies are using these same tax schemes to lower their tax bills by shipping American jobs and factories abroad. These tax breaks have contributed to the loss of more than 5 million U.S. manufacturing jobs and the closure of more than 56,000 factories since 2000. That also has got to change.

At a time when we have a $16.5 trillion national debt; at a time when roughly one-quarter of the largest corporations in America are paying no federal income taxes; and at a time when corporate profits are at an all-time high; it is past time for Wall Street and corporate America to pay their fair share.

That’s what the Corporate Tax Dodging Prevention Act (S.250) that I have introduced with Rep. Jan Schakowsky (D-Ill.) is all about.

This legislation will stop profitable Wall Street banks and corporations from sheltering profits in the Cayman Islands and other tax havens to avoid paying U.S. taxes. It will also stop rewarding companies that ship jobs and factories overseas with tax breaks. The Joint Committee on Taxation has estimated in the past that the provisions in this bill will raise more than $590 billion in revenue over the next decade.

As Congress debates deficit reduction, it is clear that we must raise significant new revenue. At 15.8 percent of GDP, federal revenue is at almost the lowest point in 60 years. Our Republican colleagues want to balance the budget on the backs of the elderly, the sick, the children, the veterans and the most vulnerable by making massive cuts. At a time when the middle class already is disappearing, that is not only a grossly immoral position, it is bad economics.

We have a much better idea. Wall Street and the largest corporations in the country must begin to pay their fair share of taxes. They must not be able to continue hiding their profits offshore and shipping American jobs overseas to avoid taxes.

Here’s the simple truth. You can’t be an American company only when you want a massive bailout from the American people. You have also got to be an American company, and pay your fair share of taxes, as we struggle with the deficit and adequate funding for the needs of the American people. If Wall Street and corporate America don’t agree, the next time they need a bailout let them go to the Cayman Islands, let them go to Bermuda, let them go to the Bahamas and let them ask those countries for corporate welfare.

 

The new face of how corporations dominate governments

Monday, October 15th, 2012

...that's the way you do on the M. T. V.

I’ve been watching developments with the proposed Trans Pacific Strategic Economic Partnership Agreement (TPP) between the United States, New Zealand, Brunei, Australia, Chile, Singapore, Peru, Vietnam, Canada, Mexico and Malaysia.  Japan, Korea, Taiwan and the Philippines have also expressed interest in joining.

The TPP negotiations have been largely held in private so people here in New Zealand have only a small idea of what our government is putting out on the table as negotiating chips.  The same is apparently true in the U.S. and and I would strongly suspect it is also true in the other negotiating countries.

Trouble in America

In the U.S., various groups are speaking out against the TPP.

In May 2012, a group of 30 legal scholars, critical of the Office of the United States Trade Representative‘s “biased and closed” TPP negotiation process and proposed intellectual property-related provisions, publicly called upon Ambassador Kirk to uphold democratic ideals by reversing the “dialing back” of stakeholder participation and to release negotiating texts for public scrutiny.

On May 23, 2012, United States Senator Ron Wyden introduced S. 3225, proposed legislation that would require the Office of the United States Trade Representative to disclose its TPP documents to all members of Congress.  Senator Wyden said,

“The majority of Congress is being kept in the dark as to the substance of the TPP negotiations, while representatives of U.S. corporations—like HalliburtonChevronPHRMAComcast, and the Motion Picture Association of America—are being consulted and made privy to details of the agreement. […] More than two months after receiving the proper security credentials, my staff is still barred from viewing the details of the proposals that USTR is advancing. We hear that the process by which TPP is being negotiated has been a model of transparency. I disagree with that statement”.

Let’s get that straight.  HalliburtonChevronPHRMAComcast, and the Motion Picture Association of America can all see the current texts of the negotiations – and we cannot?

Trouble in New Zealand

 

At a public forum on 6 July 2011, legal experts in New Zealand presented their concerns that the agreement could undermine law regarding Maori culturegenetic modification, copyright, and remove the subsidized medicine New Zealanders have access to through Pharmac.

More about this in a moment.

The Investor-state arbitration provisions

But perhaps the most worrying of the potential problems are the Investor-state arbitration provisions of the TPP that have been revealed from leaked documents.   This is from the Wikipedia article on the TPP:

The leaked draft treaty also caused a stir among anti-globalization groups that are opposed to investor-state arbitration, which permits foreign investors to bring claims directly against states before panels of trade arbitrators if they perceive public policy or legislative actions have expropriated their property or treated their investment (defined broadly enough to include most forms of intellectual property) “unfairly”. Those groups and other critics of the investment protection regime argue that traditional investment treaty standards are incompatible with environmental law, human rights protection, and public welfare regulation, meaning that TPP will be used to force states to lower standards for e.g. environmental and workers protection – or be sued for damages. As a worst case scenario, investor-state arbitration gives transnational corporations powers to trump the sovereign powers of nations and states and hold back important policy developments related to sustainability and a clean energy future. The Australian government and its negotiators have stated that they will not be agreeing to investor state dispute settlement provisions that give greater rights to foreign than domestic businesses in the TPP.

So, what’s the worry?

Well, just considering the Investor-state arbitration provisions, one can see that if New Zealand enters into these agreements and then later NZ, for example, wants to legislate that cigarette packages have to be plain with no advertisements and with bold warnings about the health risk, then the tobacco companies in the U.S. could sue us for damages under these provisions.

They would say that our new legislation undercut their profits from selling cigarettes and thus we’d hurt their financial interests.  Does that sound like something any country should open itself to?

Governments should be free to make whatever legislation they see fit for the betterment of their own people.  That’s what being a sovereign nations is all about, really.

In this proposed situation, government decisions would be checked by their possible economic consequences on the economic interests of foreign corporations.

Canada puts its willy in the Wringer

Canada

Canada has signed a new agreement that comes into effect at the end of October.  It’s called The Canada-China Foreign Investment Promotion and Protection Act (FIPPA).   It seems to be a model of what not to do to me.

In one instance, it prevents Canada from doing anything that will infringe on Chinese profits from the  Enbridge Northern Gateway pipeline.   These limitations will continue for 31 years.

In an article from the Vancouver Sun it says:

“This treaty, in effect, will pre-empt important elements of the debate of the Northern Gateway pipeline and may frustrate in a very significant way the ability of the current BC government or any future government—if the NDP were to win in spring—from stopping that pipeline or bargaining a better deal for BC,” said Gus Van Harten, an Osgoode Law professor who specializes in international investment law.

Van Harten noted that arbitrators in foreign investment agreement disputes will most likely judge in favour of Chinese investors in cases where the host country attempts to impose new or updated regulations that may interfere with the investor’s bottom line.

“If this treaty comes into effect, and there’s any Chinese ownership whatsoever in assets related to this pipeline—minority ownership, ownership we generally don’t know about—then Canada will be exposed to lawsuits under this treaty, because the BC government will be discriminating against a Chinese investor, which is prohibited by the treaty.” 

The treaty will protect investors’ rights for 31 years as of November 1.

Some sense?

I can see that corporations who make significant international investments in infrastructure will want to control things to protect their investments and to guarantee their profits.   These are corporations, after all, so such behaviors should be expected without question.

But why would sovereign governments want to sign negotiations that will limit their ability to make laws that are in the best interests of their own peoples?

Could it be (gasp) money?

Who’s making the deals – who are they?

When I first started considering all of this, I had a hard time wrapping my head around the idea that anyone negotiating on behalf of a sovereign government could possibly think treaties like this would be a good idea.

Then the light turned on when I thought about who our negotiators are.

Who is it these days who have risen so high in national governments that they have a seat at the table where such negotiations are done?

Business people, my friends, usually it is business people.

Trans Pacific Partnership

Here in New Zealand, we are led by John Key in a conservative government which is very business-friendly.

Canada is currently led by the Harper government of which we could very much say the same.

And the United States, as I’ve asserted for some time, has basically been captured by, and is largely under the control of, corporations and their minions; the business people.

Do you begin to see?

So, John Key is a major businessman here in New Zealand.  A millionaire who has made his money through business.

So, if he leads a negotiating team to the TPP negotiations that is willing to put our subsidized pharmaceuticals (PHARMAC) on the table as a negotiating chip, then he’s put something out there that the other side (big Pharma in the U.S.) would like.  And that’s free access to our NZ markets where they can sell us our pharmaceuticals for the same outrageous prices they sell them to the U.S. public for.

Unequal contest

John Key

In exchange, John Key, and the other business types he’s allied with here in New Zealand, will get access to new offshore markets through the TPP where they can sell the sorts of things they like to do business in.

In the end, by negotiating away something that belongs to all of us in New Zealand (PHARMAC), they will reap huge personal profits.

Now, they will say that some of that new money they will make will ‘trickle-down‘ into the pockets of other New Zealanders and that we will all be better off for it in the end.

Yeah right!   It’s been a long time since I’ve believed in ‘trickle-down’ anything other than political bullshit.   Trickle-down is just a conscience-saving mental ploy of the rich to try to make their profiting at our expense more palatable.

The new face of how corporations dominate governments

Is through international free trade agreements.  Watch for it – coming to nation like yours soon.

Elephants Down Under

Monday, July 2nd, 2012

– Great piece on the difference between politics in the U.S. and those in Australia and New Zealand.

– Dennis

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By Thomas Friedman, New York Times

I’ve learned three things visiting New Zealand and Australia: There is a place in the world where rugby is front-page news. There is a place in the world — the Auckland airport — where the restrooms have digital clocks in the entryway telling you hourly when they were last cleaned and when they will be cleaned again. And there is a place in the world where moderate Republicans still exist — unfortunately, you have to take a 13-hour flight from Los Angeles to get there.

Indeed, to go from America — amid the G.O.P. primaries — to Down Under is to experience both jet lag and a political shock. In New Zealand and Australia, you could almost fit their entire political spectrum — from conservatives to liberals — inside the U.S. Democratic Party.

Or as Paul Quinn, a parliamentarian from New Zealand’s conservative National Party, once told a group of visiting American Fulbright scholars: “I will explain to you how our system works compared to yours: You have Democrats and Republicans. My Labor opponents would be Democrats. I am a member of the National Party, and we would be … Democrats” as well.

For instance, there is much debate here over climate policy — Australia has a carbon tax, New Zealand has cap and trade — but there is no serious debate about climate science. Whereas in today’s G.O.P. it is political suicide to take climate change seriously, in Australia and New Zealand it is political suicide for conservatives not to.

In Australia and New Zealand, “there are plenty of climate skeptics in politics, but they know it’s a political loser to say so,” explained the Australian environmentalist Paul Gilding. “This became the case after Australia suffered its worst-ever drought, lasting more than a decade.” Now, “there is strong public acceptance of the basic scientific conclusion that the climate is changing and humans are a significant contributor.”

– More…

– Research thanks to Amy G. and Cara H.