Archive for the ‘CrashBlogging’ Category

TransPacific Partnership Will Undermine Democracy, Empower Transnational Corporations

Tuesday, May 21st, 2013

– I’ve written and displayed articles on this issue before.

– dennis

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Our country’s democratic values could be under threat if President Obama fast tracks the Trans-Pacific Partnership.

On critical issues, the massive Trans-Pacific Partnership (TPP) being negotiated in secret by the Obama administration willundermine democracy in the United States and around the world and further empower transnational corporations. It will circumvent protections for health care, wages, labor rights, consumers’ rights and the environment, and decrease regulation of big finance and risky investment practices.

The only way this treaty, which will be very unpopular with the American people once they are aware of it, can be approved is if the Obama administration avoids the democratic process by using an authority known as “Fast Track,” which limits the constitutional checks and balances of Congress.

If the TPP is approved, the sovereignty of the United States and other member nations will be dissipated by trade tribunals that favor corporate power and force national laws to be subservient to corporate interests.

Circumventing the Checks and Balances of US Democracy

President Nixon first developed the idea of “Fast Track” in 1973 as a way to secure Congressional approval of trade agreements, and it has been a key to passing many unpopular agreements such as the World Trade Organization (WTO) and NAFTA. As people have caught on to the offshoring of jobs and other detrimental consequences of these agreements, civil society now understands how important it is to not allow a president to circumvent the democratic role of Congress. Fast Track expired in 2007, so President Obama must have it re-instated in order to pass the TPP. His administration is moving to have Fast Track approved and hopes it will happen by this summer.

Under Fast Track, the president was allowed to negotiate and sign trade agreements with whatever countries the executive branch selected – all before Congress voted on the agreement. Fast Track meant that the Congressional committee processes were circumvented and the executive branch was empowered to write lengthy implementing legislation for each trade pact without Congress. These executive-only authored bills required US law to conform to the trade agreement. For example,Glass-Steagall had to be repealed under President Clinton to conform to the WTO. And, Fast Track empowered the president to submit the executive-branch written bill for a mandatory vote within a set number of days, with all amendments forbidden, normal Senate rules waived, and debate limited in both chambers of Congress. Fast Track clearly undermined democracy.

Indeed, Fast Track turned the US Constitution on its head. Under Article I Section 8, Congress has exclusive authority “to regulate commerce with foreign nations” and to “lay and collect taxes [and] duties.” Under the Constitution, the president is empowered to negotiate treaties, but Congress must vote to approve them. Thus, Fast Track took constitutional power from Congress and prevented the checks and balances needed to prevent an imperial presidency.

For most of the history of the United States, treaties and trade agreements went through the normal congressional process described in the Constitution. Fast Track is a relatively new concept that coincides with an era of increasing presidential power, which includes the power to declare war and to murder US citizens without warning or judicial oversight. If Congress had reviewed agreements such as the WTO and NAFTA beforehand and civil society had been able to participate in a democratic process, would the United States have made the mistake of passing these laws that have so injured our economy and others?

Fast Track is very unpopular, so now President Obama and others who advocate for it do not use the term. Instead they call it by the euphemism “Trade Promotion Authority.” But changing the name does not change what it is – a method of ceding the constitutional power of Congress and undermining the checks and balances built into the constitutional framework.

Congress needs to consider what agreements such as the TPP will do to jobs, trade balances and the environment. Since Nixon, Fast Track has been used by presidents to go way beyond trade and tariffs. These agreements have been used to change US law by establishing “rules related to domestic environmental, health, safety and essential-service regulations, including deregulation of financial services; establishment of immigration policies; creation of limits on local development and land-use policy; extension of domestic patent terms; establishment of new rights and greater protections for foreign investors operating within the United States that extend beyond US law; and even limitation of how domestic procurement dollars may be spent.” Thus, not only has the constitutional power of Congress to regulate commerce with foreign nations been undermined, but a whole host of domestic laws have been rewritten to satisfy international trade.

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‘Monsanto Protection Act’ slips silently through US Congress

Saturday, May 18th, 2013

The future approaching

– This was perhaps for me the last straw with President Obama.   That he signed this bill is unforgivable and deeply inconsistent with the values I’d hoped he represented.

Monsanto represents what is so deeply disquieting about the gathering ascendancy of corporate power and money over governmental processes which are suppose to act in and for the good of a nation’s people.

– dennis

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The US House of Representatives quietly passed a last-minute addition to the Agricultural Appropriations Bill for 2013 last week – including a provision protecting genetically modified seeds from litigation in the face of health risks.

The rider, which is officially known as the Farmer Assurance Provision, has been derided by opponents of biotech lobbying as the “Monsanto Protection Act,” as it would strip federal courts of the authority to immediately halt the planting and sale of genetically modified (GMO) seed crop regardless of any consumer health concerns.

The provision, also decried as a “biotech rider,” should have gone through the Agricultural or Judiciary Committees for review. Instead, no hearings were held, and the piece was evidently unknown to most Democrats (who hold the majority in the Senate) prior to its approval as part of HR 993, the short-term funding bill that was approved to avoid a federal government shutdown.

Senator John Tester (D-MT) proved to be the lone dissenter to the so-called Monsanto Protection Act, though his proposed amendment to strip the rider from the bill was never put to a vote.

As the US legal system functions today, and largely as a result of prior lawsuits, the USDA is required to complete environmental impact statements (EIS) prior to both the planting and sale of GMO crops. The extent and effectiveness to which the USDA exercises this rule is in itself a source of serious dispute.

The reviews have been the focus of heated debate between food safety advocacy groups and the biotech industry in the past. In December of 2009, for example, Food Democracy Now collected signatures during the EIS commenting period in a bid to prevent the approval of Monsanto’s GMO alfalfa, which many feared would contaminate organic feed used by dairy farmers; it was approved regardless.

Previously discovered pathogens in Monsanto’s Roundup Ready corn and soy are suspected of causing infertility in livestock and to impact the health of plants.

So, just how much of a victory is this for biotech companies like Monsanto? Critics are thus far alarmed by the very way in which the provision made it through Congress — the rider was introduced anonymously as the larger bill progressed through the Senate Appropriations Committee. Now, groups like the Center for Food Safety are holding Senator Mikulski (D-MD), chairman of that committee, to task and lobbing accusations of a “backroom deal” with the biotech industry.

– more…

 

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.

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“endorsement of free-market economics predicted rejection of climate science”

Monday, April 29th, 2013

Abstract

Although nearly all domain experts agree that carbon dioxide emissions are altering the world’s climate, segments of the public remain unconvinced by the scientific evidence. Internet blogs have become a platform for denial of climate change, and bloggers have taken a prominent role in questioning climate science. We report a survey of climate-blog visitors to identify the variables underlying acceptance and rejection of climate science. Our findings parallel those of previous work and show that endorsement of free-market economics predicted rejection of climate science. Endorsement of free markets also predicted the rejection of other established scientific findings, such as the facts that HIV causes AIDS and that smoking causes lung cancer. We additionally show that, above and beyond endorsement of free markets, endorsement of a cluster of conspiracy theories (e.g., that the Federal Bureau of Investigation killed Martin Luther King, Jr.) predicted rejection of climate science as well as other scientific findings. Our results provide empirical support for previous suggestions that conspiratorial thinking contributes to the rejection of science. Acceptance of science, by contrast, was strongly associated with the perception of a consensus among scientists.

– To the original:

 

Why Is Socialism Doing So Well in Deep-Red North Dakota?

Friday, April 12th, 2013

North Dakota is the very definition of a red state. It voted 58 percent to 39 percent for Romney over Obama, and its statehouse and senate have a total of 104 Republicans and only 47 Democrats. The Republican super-majority is so conservative it recently passed the nation’s most severe anti-abortion resolution – a measure that declares a fertilized human egg has the same right to life as a fully formed person.

But North Dakota is also red in another sense: it fully supports its state-owned Bank of North Dakota (BND), a socialist relic that exists nowhere else in America. Why is financial socialism still alive in North Dakota? Why haven’t the North Dakotan free-market crusaders slain it dead?

Because it works.

In 1919, the Non-Partisan League, a vibrant populist organization, won a majority in the legislature and voted the bank into existence. The goal was to free North Dakota farmers from impoverishing debt dependence on the big banks in the Twin Cities, Chicago and New York. More than 90 years later, this state-owned bank is thriving as it helps the state’s community banks, businesses, consumers and students obtain loans at reasonable rates. It also delivers a handsome profit to its owners—the 700,000 residents of North Dakota. In 2011, the BND provided more than $70 million to the state’s coffers. Extrapolate that profit-per-person to a big state like California and you’re looking at an extra $3.8 billion a year in state revenues that could be used to fund education and infrastructure.

One of America’s Best Kept Secrets

Each time we pay our state and local taxes—and all manner of fees—the state deposits those revenues in a bank. If you’re in any state but North Dakota, nearly all of these deposits end up in Wall Street’s too-big to-fail banks, because those banks are the only entities large enough to handle the load. The vast majority of the nation’s 7,000 community banks are too small to provide the array of cash management services that state and local governments require. We’re talking big bucks; at least $1 trillion of our local tax dollars find their way to Wall Street banks, according to Marc Armstrong, executive director of the Public Banking Institute.

So, not only are we, as taxpayers, on the hook for too-big-to-fail Wall Street banks, but we also end up giving our tax dollars to these same banks each and every time we pay a sales tax or property tax or buy a fishing license. In North Dakota, however, all that public revenue runs through its public state bank, which in turn reinvests in the state’s small businesses and public infrastructure via partnerships with 80 small community banks.

How the State Bank Creates Jobs

Banks are supposed to serve as intermediaries that turn our savings and checking deposits into productive loans to businesses and consumers. That’s how jobs are supported and created. But the BND, a state agency, goes one step further. Through its Partnership in Assisting Community Expansion, for example, it provides loans at below-market interest rates to businesses if and only if those businesses create at least one job for every $100,000 loaned. If the $1 trillion that now flows to Wall Street instead were deposited in public state banks in all 50 states using this same approach, up to 10 million new jobs could be created. That would effectively end our destructive unemployment crisis.

No Bailouts for the BND

Banking doesn’t have to be a casino. It doesn’t have to be designed to create gambling opportunities so bank traders and executives can make seven- and eight-figure salaries. As BND president Eric Hardmeyer said in a 2009 Mother Jones interview:

We’re a fairly conservative lot up here in the upper Midwest and we didn’t do any subprime lending and we have the ability to get into the derivatives markets and put on swaps and callers and caps and credit default swaps and just chose not to do it, really chose a Warren Buffett mentality—if we don’t understand it, we’re not going to jump into it. And so we’ve avoided all those pitfalls.

As state government employees, BND executives have no incentive to gamble their way toward enormous pay packages. As you can see, the top six BND officers earn a good living, but on Wall Street, cooks and chauffeurs earn more.

• Eric Hardmeyer, President and CEO: $232,500
• Bob Humann, Chief Lending Officer: $135,133
• Tim Porter, Chief Administrative Officer: $122,533
• Joe Herslip, Chief Business Officer: $105,000
• Lori Leingang, Chief Administrative Officer: $105,000
• Wally Erhardt, Director of Student Loans of North Dakota: $91,725

The very existence of a successful BND undermines Wall Street’s claim that in order to attract the best talent big banks need to offer enormous pay packages. Yet somehow, North Dakota is able to find the talent to run one of the soundest banks in the country? The BND is living proof that Wall Street’s rationale for sky-high executive pay is a self-serving fabrication.

Wall Street Is Gunning for Bank of North Dakota

As you can well imagine, our financial elites would love to see this successful (socialist!) bank disappear. Its salary structure and local investments makes a mockery of Wall Street’s casino banking system. But the bigger threat comes from the possible spread of this public banking concept to other states. Already, there are 20 or so state legislatures that are exploring state banks. Collectively, more public banks would pose an enormous threat to the $1 trillion in state and local bank deposits that now run through Wall Street.

But elite financiers also stand to lose much more. In the 49 states without a public bank, there’s no safe place to turn for loans to rebuild schools and finance other public infrastructure projects. That creates an enormous opportunity for Wall Street firms to hook localities on expensive bond programs—like capital appreciation bonds, which can lead to repayments equaling 10 times the original loan. Investment bankers and advisers also make enormous fees by selling expensive, high-risk financial schemes to state and local governments (read an investigative report here). But such schemes are useless in North Dakota where the state bank provides the capital the state needs for a fraction of the long-term costs.

Trade Agreements: Wall Street’s Weapon of Mass Destruction

Clearly, from Wall Street’s perspective, the North Dakota bank must go, and all other state efforts to replicate it must be thwarted. Wall Street’s stealth weapon may be lodged within the latest corporate trade agreement called the Trans-Pacific Partnership (TPP), which currently is being negotiated in secret. We already know that Wall Street is seeking to remove all tariff restrictions that prevent the U.S. financial services industry from doing business in countries like Brunei, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. The biggest banks also want the treaty to eliminate “non-tariff” barriers including regulations that create “unfair” competition with state-owned financial enterprises.

Depending on the final language, it is possible that the activities of the Bank of North Dakota could be ruled illegal because “foreign bankers could claim the BND stops them from lending to commercial banks throughout the state,” according to an analysis by Sam Knight in Truthout. How perfect for Wall Street: a foreign bank can be used as a shill to knock out the BND.

The Public Bank Movement

A small but highly dedicated group of financial writers, public finance experts and former bankers have formed the Public Bank Institute to spread the word. Working on a shoestring budget, its president Ellen Brown (author of Web of Debt), and its executive director Marc Armstrong have become the Johnny Appleseeds of public banking, hopping from state to state to encourage legislatures to explore state-owned banks.

The movement is gathering steam as it holds a major conference on June 2-4 at Dominican University in San Rafael, CA featuring such anti-Wall Street hell raisers as Matt Taibbi and Gar Alperowitz, along with Brigitte Jonsdottir, a member of the Icelandic parliament, and Ellen Brown.

Is America Up For This Fight?

Since the crash, the financial community has largely managed to wriggle off the hook. In fact, fatalism may be replacing activism as we sense that maybe Wall Street is simply too big and too powerful to change. After all, the big banks seem to own Washington, as too-big-to-fail banks are permitted to grow even larger and more invulnerable to prosecution and control.

But this new public banking movement could have legs, especially if it teams up with those fighting for a financial transaction tax (see National Nurses United.) Most Americans remain furious about how financial elites profited from the crisis—before, during and after—while the rest of us pick up the tab. Americans know deep down that Wall Street is the predator and we are the prey.

The state-owned and operated Bank of North Dakota proves that it doesn’t have to be that way. This is the time to fight for public state banking in a big way.

– To the original…

 

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.

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Can a collapse of global civilization be avoided?

Sunday, April 7th, 2013

– Beware, if you click on any of the citations in the article, below, you will be taken to the original article.  That is, of course, fine.   Just making you aware of this fact before you click on one.

– dennis

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By Paul R. Ehrlich and Anne H. Ehrlich

Abstract

Environmental problems have contributed to numerous collapses of civilizations in the past. Now, for the first time, a global collapse appears likely. Overpopulation, overconsumption by the rich and poor choices of technologies are major drivers; dramatic cultural change provides the main hope of averting calamity.

1. Introduction

Virtually every past civilization has eventually undergone collapse, a loss of socio-political-economic complexity usually accompanied by a dramatic decline in population size [1]. Some, such as those of Egypt and China, have recovered from collapses at various stages; others, such as that of Easter Island or the Classic Maya, were apparently permanent [1,2]. All those previous collapses were local or regional; elsewhere, other societies and civilizations persisted unaffected. Sometimes, as in the Tigris and Euphrates valleys, new civilizations rose in succession. In many, if not most, cases, overexploitation of the environment was one proximate or an ultimate cause [3].

But today, for the first time, humanity’s global civilization—the worldwide, increasingly interconnected, highly technological society in which we all are to one degree or another, embedded—is threatened with collapse by an array of environmental problems. Humankind finds itself engaged in what Prince Charles described as ‘an act of suicide on a grand scale’ [4], facing what the UK’s Chief Scientific Advisor John Beddington called a ‘perfect storm’ of environmental problems [5]. The most serious of these problems show signs of rapidly escalating severity, especially climate disruption. But other elements could potentially also contribute to a collapse: an accelerating extinction of animal and plant populations and species, which could lead to a loss of ecosystem services essential for human survival; land degradation and land-use change; a pole-to-pole spread of toxic compounds; ocean acidification and eutrophication (dead zones); worsening of some aspects of the epidemiological environment (factors that make human populations susceptible to infectious diseases); depletion of increasingly scarce resources [6,7], including especially groundwater, which is being overexploited in many key agricultural areas [8]; and resource wars [9]. These are not separate problems; rather they interact in two gigantic complex adaptive systems: the biosphere system and the human socio-economic system. The negative manifestations of these interactions are often referred to as ‘the human predicament’ [10], and determining how to prevent it from generating a global collapse is perhaps the foremost challenge confronting humanity.

The human predicament is driven by overpopulation, overconsumption of natural resources and the use of unnecessarily environmentally damaging technologies and socio-economic-political arrangements to service Homo sapiens’ aggregate consumption [1117]. How far the human population size now is above the planet’s long-term carrying capacity is suggested (conservatively) by ecological footprint analysis [1820]. It shows that to support today’s population of seven billion sustainably (i.e. with business as usual, including current technologies and standards of living) would require roughly half an additional planet; to do so, if all citizens of Earth consumed resources at the US level would take four to five more Earths. Adding the projected 2.5 billion more people by 2050 would make the human assault on civilization’s life-support systems disproportionately worse, because almost everywhere people face systems with nonlinear responses [11,2123], in which environmental damage increases at a rate that becomes faster with each additional person. Of course, the claim is often made that humanity will expand Earth’s carrying capacity dramatically with technological innovation [24], but it is widely recognized that technologies can both add and subtract from carrying capacity. The plough evidently first expanded it and now appears to be reducing it [3]. Overall, careful analysis of the prospects does not provide much confidence that technology will save us [25] or that gross domestic product can be disengaged from resource use [26].

– 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?