Obama Signs a Phony – and Dangerous – “JOBS” Bill
A Black Agenda Radio commentary by Glen Ford | April 10, 2012
President Obama is ramping up his phony progressive campaign rhetoric, trying to once again masquerade as something other than a Wall Street servant. But this time around, he is weighted down by his actual record in office, which shows Obama to have been a savior to the bankers and money speculators. Now, the president has joined with Republicans to create a whole new class of con men and corporate criminals who will further fatten the fees of banksters by blowing up another multi-trillion dollar bubble of doomed and fraudulent hi-tech firms. To add insult to injury, Obama, his congressional Democrats and his Republican soul mates had the nerve to set the stage for this disaster by passing something they called a “JOBS” bill.
Of course, there are no jobs in the bill. The acronym stands for “Jumpstart Our Business Start- Ups Act,” and it’s an invitation to a con game.
The new law, passed by 73 senators with Obama’s enthusiastic endorsement, allows corporations with less than $1billion in revenues – that’s a billion, as in a thousand million – to avoid hiring a professional auditing firm for five years after the company begins selling stock to the public. That means five long years of taking other people’s money without having to tell the truth about how your business is really doing. The scheme is designed to encourage what the money guys call “crowd funding” on the Internet, with little oversight by regulators.
Make no mistake: this is not an opportunity for those of you who want to open up a restaurant or a bar or a bookstore. Companies making less than $75 million can already avoid being subjected to professional audits; this bill extends the privilege to corporations at the billion dollar mark, who can now ensnare investors in their webs for twenty consecutive quarters without backing up a word of their sales pitch.
Of course, the banksters that handle these transactions and the Wall Street gamblers who bet on them will get over like fat rats – for a while. And then it will all come tumbling down, just as President Bill Clinton’s Dot.com bubble did at the end of the roaring Nineties. The collapse destroyed $5 trillion in investments, and led to the first George Bush recession, from which Black folks did not have a chance to recover before being crushed again by the meltdown of 2008.
Where did this phony “JOBS” bill come from? From the bowels of the Obama administration, where the task of creating employment is the purview of the President’s Council on Jobs and Competitiveness, packed with corporate executives from General Electric, Intel, Citigroup, Xerox, Boeing and American Express. Organized labor was adamantly opposed, seeing no jobs in the bill. But Obama doesn’t listen to unions, because he knows they will take an infinity of abuse rather than fight with a Democratic president. And the Black misleadership class has made itself totally irrelevant.
The lesson here is: late stage capitalism, which is incapable of creating real jobs in the United States, is pinning its hopes on inflating another hi-tech bubble to keep the casino wheels spinning for a few years. When the bubble bursts, they are confident that a bailout will be made available, no matter which party is in office. And the public will pick up the pieces.
Glen Ford can be contacted at Glen.Ford@BlackAgendaReport.com.
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US-Israel War on Iran: The Myth of Limited Warfare
By James Petras :: 04.04.2012
Introduction
The mounting threat of a US-Israeli military attack against Iran is based on several factors including: (1) the recent military history of both countries in the region, (2) public pronouncements by US and Israeli political leaders, (3) recent and on-going attacks on Lebanon and Syria, prominent allies of Iran, (4) armed attacks and assassinations of Iranian scientists and security officials by proxy and/or terrorist groups under US or Mossad control, (5) the failure of economic sanctions and diplomatic coercion, (6) escalating hysteria and extreme demands for Iran to end legal, civilian use-related uranium enrichment, (7) provocative military ‘exercises’ on Iran’s borders and war games designed for intimidation and a dress rehearsal for a preemptive attack, (8) powerful pro-war pressure groups in both Washington and Tel Aviv including the major Israeli political parties and the powerful AIPAC in the US, (9) and lastly the 2012 National Defense Authorization Act (Obama’s Orwellian Emergency Decree, March 16, 2012).
The US propaganda war operates along two tracks: (1) the dominant message emphasizes the proximity of war and the willingness of the US to use force and violence. This message is directed at Iran and coincides with Israeli announcements of war preparations. (2) The second track targets the ‘liberal public’ with a handful of marginal ‘knowledgeable academics’ (or State Department progressives) playing down the war threat and arguing that reasonable policy makers in Tel Aviv and Washington are aware that Iran does not possess nuclear weapons or any capacity to produce them now or in the near future. The purpose of this liberal backpedaling is to confuse and undermine the majority public opinion, which is clearly opposed to more war preparations, and to derail the burgeoning anti-war movement.
Needless to say the pronouncements of the ‘rational’ warmongers use a ‘double discourse’ based on the facile dismissal of all the historical and empirical evidence to the contrary. When the US and Israel talk of war, prepare for war and engage in pre-war provocations – they intend to go to war – just as they did against Iraq in 2003. Under present international political and military conditions an attack on Iran, initially by Israel with US support, is extremely likely, even as world economic conditions should dictate otherwise and even as the negative strategic consequences will most likely reverberate throughout the world for decades to come.
US and Israeli Military Calculations on Iran’s Capability
American and Israeli strategic policy makers do not agree on the consequences of Iran’s retaliation against an attack. For their part, the Israeli leaders minimize Iran’s military capacity to attack and damage the Jewish state, which is their only consideration. They count on their distance, their anti-missile shield and protection from US air and naval forces in the Gulf to cover their sneak attack. On the other hand, US military strategists know the Iranians are capable of inflicting substantial casualties on US warships, which would have to attack Iranian coastal installations in order to support or protect the Israelis.
Israel intelligence is best known for its capacity to organize the assassination of individuals around the world: Mossad has organized successful overseas terrorist acts against Palestinian, Syrian, and Lebanese leaders. On the other hand Israeli intelligence has a very poor track record with regard to its estimates of major military and political undertakings. They seriously underestimated the popular support, military strength and organizational capacity of Hezbollah during the 2006 war in Lebanon. Likewise, Israel intelligence misunderstood the strength and capacity of the Egyptian popular democratic movement as it rose up and overthrew Tel Aviv’s strategic regional ally, the Mubarak dictatorship. While Israeli leaders ‘feign paranoia’ – tossing clichés about ‘existential threats’– they are blinded by their narcissistic arrogance and racism, repeatedly underestimating the technical expertise and political sophistication of their Arab and regional Islamic foes. This is undoubtedly true in their facile dismissal of Iran’s capacity to retaliate against a planned Israeli air assault.
The US government has now overtly committed itself to supporting an Israeli assault on Iran when it is launched. More specifically, Washington claims it will come to Israel’s defense ‘unconditionally’ if it is “attacked.” How can Israel avoid being ‘attacked’ when its planes are raining bombs and missiles on Iranian installations, military defenses and support systems, not to mention Iranian cities, ports and strategic infrastructure? Moreover, given the Pentagon’s collaboration and coordinated intelligence systems with the Israel forces, its role in identifying targets, routes and incoming missiles, as well as integrated weapons and ordinance supply chains will be critical to an Israeli attack. There is no way that the US can dissociate itself from the Jewish State’s war on Iran, once the attack has begun.
The Myths of ‘Limited War’: Geography
Washington and Tel Aviv claim and appear to believe that their planned assault on Iran will be a “limited war”, targeting limited objectives and lasting a few days or weeks – with no serious consequences.
We are told Israel’s brilliant generals have identified all the critical nuclear research facilities, which their surgical air strikes will eliminate without horrific collateral damage to the surrounding population. Once the alleged ‘nuclear weapons’ program is destroyed, all Israelis can resume their lives in full security knowing that another ‘existential’ threat has been eliminated. The Israeli notion of a war, limited in ‘time and space’, is absurd and dangerous – and underlines the arrogance, stupidity and racism of its authors.
To approach Iran’s nuclear facilities Israeli and US forces will confront well-equipped and defended bases, missile installations, maritime defenses and large-scale fortifications directed by the Revolutionary Guards and the Iranian Armed Forces. Moreover, the defense systems protecting the nuclear facilities are linked by civilian highways, airfields, ports, and backed by a dual purpose (civilian-military) infrastructure, which includes oil refineries and a huge network of administrative offices. To ‘knock out’ the alleged nuclear sites will require expanding the geographic scope of the war. The scientific-technological capacity of the Iranian civilian nuclear program involves a wide swath of its research facilities, including universities, laboratories, manufacturing sites, and design centers. To destroy Iran’s civilian nuclear program would require Israel (and thus the US) to attack much more than research facilities or laboratories hidden under a remote mountain. It would require multiple, widespread assaults on targets throughout the country, in other words, a generalized war.
Iran’s Supreme leader Ayatollah Ali Khamenei has stated that Iran will retaliate with a war of equivalence. Iran will match the breadth and scope of any attack with a corresponding counter-attack: ‘We will attack them at the same level as they attack us’. That means Iran will not confine its retaliation to merely trying to shoot down US and Israeli bombers in its airspace or launch missiles at offshore US warships in its waters but will take the war to equivalent targets in Israel and in US-occupied countries in and around the Gulf. Israel’s ‘limited war’ will become a generalized war extending throughout the Middle East and beyond.
Israel’s current delusional fetish about its elaborate missile defense system will be exposed as hundreds of high-powered missiles are launched from Teheran, Southern Lebanon and just beyond the Golan Heights.
The Myth of Limited War: Time Frame
Israeli military experts confidently expect to polish off their Iranian targets in a few days – some might think a mere weekend – and perhaps without the loss of even a single pilot. They expect the Jewish state will celebrate its brilliant victory in the streets of Tel Aviv and Washington. They are deluded by their own sense of superiority. Iran did not fight a brutal, decade-long war against the US-supplied Iraqi invaders and its western/Israeli military advisers, to just turn over and passively submit to a limited number of air and missile attacks by Israel. Iran is a young, educated mobilized society, which can draw on millions of reservists from across the political, ethnic, gender, religious spectrum, galvanized in support of their nation under attack. In a war to defend the homeland all internal differences disappear to confront the unprovoked Israeli-US attack threatening their entire civilization – its 5,000-year culture and traditions, as well as its modern scientific advances and institutions. The first wave of US-Israeli attacks will lead to ferocious retaliation, which will not be confined to the original areas of conflict, nor will any such act of Israeli aggression end when and if Iran’s nuclear research facilities are destroyed and some of its scientists, technicians and skilled workers killed. The war will continue in time and extend geographically.
Multiple Points of Conflict
Just as any US-Israeli attack on Iran will involve multiple targets, the Iranian military will also have a plethora of easily accessible strategic targets. Though it is difficult to predict exactly where and how Iran will retaliate, one thing is clear: The initial US-Israeli strike will not go unanswered.
Given Israeli-US supremacy in long and medium range sea and air power, Iran will probably rely on short-range objectives. These would include the highly valued US military facilities and supply routes in adjoining terrain (Iraq, Kuwait and Afghanistan) and Israeli targets with missiles launched from Southern Lebanon and possibly Syria. If a few Iranian long-range missiles escape the Jewish State’s much vaunted ‘anti-missile dome’, Israeli population centers may pay a heavy price for their leaders’ recklessness and arrogance.
The Iranian counter-strike will lead to an escalation by US-Israeli forces, extending and deepening their air and sea war to the entire Iranian national security system – military bases, ports, communication systems, command posts and government administrative centers – many in densely populated cities. Iran will counter by launching its greatest strategic asset: a coordinated ground attack involving the Revolutionary Guards together with their allies among the Iraqi Shia troops, against US forces in Iraq. It will coordinate attacks against US facilities in Afghanistan and Pakistan with the growing nationalist-Islamic armed resistance.
The initial conflict, centered on so-called military objectives (scientific research facilities), will spread rapidly to economic targets, or what US and Israeli military strategists refer to as “dual civilian-military” targets. This would include oil fields, highways, factories, communications networks, television stations, water treatment facilities, reservoirs, power stations and administrative offices, such as the Defense Ministry and headquarters of the Republican Guard. Iran, faced with imminent destruction of its entire economy and infrastructure (which occurred in neighboring Iraq with the unprovoked US invasion of 2003), would retaliate by blocking the Straits of Hormuz and sending short range missiles in the direction of the principle oil fields and refineries of the Gulf States including Kuwait and Saudi Arabia, a mere 10 minute distance, crippling the flow of oil to Europe, Asia and the United States and plunging the world economy into deep depression.
It should not be forgotten that the Iranians are probably more aware than anyone in the region of the total devastation suffered by Iraqis after the US invasion, which plunged that nation into total chaos and devastated its advanced infrastructure and civilian administrative apparatus, not to mention the systematic obliteration of its highly educated scientific and technical elite. The waves of Mossad-sponsored assassinations of Iranian scientists, academics and engineers are just a foretaste of what the Israelis have in mind for Iran’s outstanding scientists, intellectuals and highly skilled technical workers. Iranians should have no illusions about the Americans and Israelis who seek to thrust Iran into the brutal dark ages of Afghanistan and Iraq. They will have no more role in a devastated Iran than their counterparts had in post-Saddam Iraq.
According to US General Mathis, who commands all US forces in the Middle East, Persian Gulf and Southwest Asia, ‘an Israeli first strike would be likely to have dire consequences across the region and for the United States there’ (NY Times, 3/19/12). General Mathis “dire cost” estimate only takes account of the US military losses, likely several hundred sailors on warships within missile distance of Iranian gunners.
However the most delusional and self-serving assessment of the outcome and consequences of an Israeli air attack on Iran, emanates from top Israeli leaders, academics and intelligence experts, who claim superior intelligence, superior defenses and supreme (if also racist) insight into the ‘Iranian mind’. Typical is Israeli Defense Minister Barak who boasts that any Iranian retaliation will at worst inflict minimal casualties on the Israeli population.
The ‘Judeo-centric’ view of re-ordering the balance of power in the region, which is prevalent in leading Israeli war circles, overlooks the likelihood that war will not be decided by Israeli air strikes and anti-missile defenses. Iran’s missiles cannot be easily contained, especially if they arrive several hundred a minute from three directions, Iran, Lebanon, Syria and possibly from Iranian submarines. Secondly, the collapse of its oil imports will devastate Israel’s highly energy dependent economy. Thirdly, Israel’s principle allies, especially the US and the EU, will be severely strained as they are dragged into Israel’s war and find themselves defending the straits of Hormuz, their army garrisons in Iraq and Afghanistan, and their oil fields and military bases in the Gulf. Such a conflict could ignite the Shia majorities in Bahrain and in the strategic oil-rich provinces of Saudi Arabia. The generalized war will have a devastating effect on the price of oil and the world economy. It will provoke the fury of consumers and workers rage everywhere as factories close and powerful shocks throughout the fragile financial system result in a world depression.
Israel’s pathological ‘superiority complex’ results in its racist leaders consistently overestimating their own intellectual, technical and military capabilities, while underestimating the knowledge, capacity and courage of their regional, Islamic (in this case Iranian) adversaries. They ignore Iran’s proven capacity to sustain a prolonged, complex multi-front defensive war and to recover from an initial assault and develop appropriate modern weaponry to inflict severe damage on its attackers. And Iran will have the unconditional and active support of the world’s Muslim population, and perhaps the diplomatic backing of Russia and China, who will obviously view an attack on Iran as another dress rehearsal to contain their growing power.
Conclusion
War, especially an Israeli-US war against Iran is indissolubly linked to the asymmetrical US-Israeli relationship, which sidelines and censors any critical US military and political analysis. Because Israel’s Zionist power configuration in the US can now harness US military power in support of Israel’s drive for regional dominance, Israeli leaders and most of their military feel free to engage in the most outrageous military and destructive adventures, knowing full well that in the first and last instance they can rely on the US to support them with American blood and treasure. But after all of this grotesque servitude to a racist, isolated country, who will rescue the United States? Who will prevent the sinking of its ships in the Gulf and the death and maiming of hundreds of its sailors and thousands of its soldiers? And where will the Israelis and US Zionists be when Iraq is overrun by elite Iranian troops and their Iraqi Shia allies and a generalized uprising occurs in Afghanistan?
The self-centered Israeli policy-makers overlook the likely collapse of the world oil supply as a result of their planned war against Iran. Do their Zionist agents in the US realize that as a result of dragging the US into Israel’s war, that the Iranian nation will be forced to set the Persian Gulf oilfields ablaze?
How cheap has it become to ‘buy a war’ in the US? For a mere few million dollars in campaign contributions to corrupt politicians, and through the deliberate penetration of Israel-First agents, academics and politicians into the war-making machinery of the US government, and through the moral cowardice and self-censorship of leading critics, writers and journalists who refuse to name Israel and its agents as the key decision makers in our country’s Mid East policy, we head directly toward a war far beyond any regional military conflagration and toward the collapse of the world economy and the brutal impoverishment of hundreds of millions of people North and South, East and West.
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Worse than SOPA? CISPA to censor Web in name of cybersecurity
RT | April 4, 2012
As congressmen in Washington consider how to handle the ongoing issue of cyberattacks, some legislators have lent their support to a new act that, if passed, would let the government pry into the personal correspondence of anyone of their choosing.
H.R. 3523, a piece of legislation dubbed the Cyber Intelligence Sharing and Protection Act (or CISPA for short), has been created under the guise of being a necessary implement in America’s war against cyberattacks. But the vague verbiage contained within the pages of the paper could allow Congress to circumvent existing exemptions to online privacy laws and essentially monitor, censor and stop any online communication that it considers disruptive to the government or private parties. Critics have already come after CISPA for the capabilities that it will give to seemingly any federal entity that claims it is threatened by online interactions, but unlike the Stop Online Privacy Act and the Protect IP Acts that were discarded on the Capitol Building floor after incredibly successful online campaigns to crush them, widespread recognition of what the latest would-be law will do has yet to surface to the same degree.
Kendall Burman of the Center for Democracy and Technology tells RT that Congress is currently considering a number of cybersecurity bills that could eventually be voted into law, but for the group that largely advocates an open Internet, she warns that provisions within CISPA are reason to worry over what the realities could be if it ends up on the desk of President Barack Obama. So far CISPA has been introduced, referred and reported by the House Permanent Select Committee on Intelligence and expects to go before a vote in the first half of Congress within the coming weeks.
“We have a number of concerns with something like this bill that creates sort of a vast hole in the privacy law to allow government to receive these kinds of information,” explains Burman, who acknowledges that the bill, as written, allows the US government to involve itself into any online correspondence, current exemptions notwithstanding, if it believes there is reason to suspect cyber crime. As with other authoritarian attempts at censorship that have come through Congress in recent times, of course, the wording within the CISPA allows for the government to interpret the law in such a number of degrees that any online communication or interaction could be suspect and thus unknowingly monitored.
In a press release penned last month by the CDT, the group warned then that CISPA allows Internet Service Providers to “funnel private communications and related information back to the government without adequate privacy protections and controls.
The bill does not specify which agencies ISPs could disclose customer data to, but the structure and incentives in the bill raise a very real possibility that the National Security Agency or the DOD’s Cybercommand would be the primary recipient,” reads the warning.
The Electronic Frontier Foundation, another online advocacy group, has also sharply condemned CISPA for what it means for the future of the Internet. “It effectively creates a ‘cybersecurity’’ exemption to all existing laws,” explains the EFF, who add in a statement of their own that “There are almost no restrictions on what can be collected and how it can be used, provided a company can claim it was motivated by ‘cybersecurity purposes.’”
What does that mean? Both the EFF and CDT say an awfully lot. Some of the biggest corporations in the country, including service providers such as Google, Facebook, Twitter or AT&T, could copy confidential information and send them off to the Pentagon if pressured, as long as the government believes they have reason to suspect wrongdoing. In a summation of their own, the Congressional Research Service, a nonpartisan arm of the Library of Congress, explains that “efforts to degrade, disrupt or destroy” either “a system or network of a government or private entity” is reason enough for Washington to reach in and read any online communiqué of their choice.
The authors of CISPA say the bill has been made “To provide for the sharing of certain cyber threat intelligence and cyber threat information between the intelligence community and cybersecurity entities,” but not before noting that the legislation could be used “and for other purposes,” as well — which, of course, are not defined.
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Left Takes ObamaCare To Court – Supreme Court
By John V. Walsh | Dissident Voice | March 27th, 2012
The struggle over the Affordable Care Act (aka, Obamacare) is facilely cast as a battle between Left and Right. Nothing could be farther from the truth. A tussle between the dominant factions of the Democratic and Republican Parties it certainly is in a superficial and temporary way, until the kabuki politics of the presidential campaign is over. But a battle between Left and Right, it most assuredly is not. Obamacare is opposed by the Left, which has long sought Single-Payer (Medicare for All) as a proven way to universal and egalitarian coverage. But many Leftists have been too cowed by Democratic operatives or by Obama loyalists in their midst to speak their convictions. Now that silence has been shattered.
Recently 50 physicians, all strong supporters of Single-Payer, along with the Left wing non-profits, Single Payer Action and It’s Our Economy, have joined conservative and libertarian opposition to Obamacare. They have submitted to the Supreme Court an amicus brief which is a dagger aimed at the noxious heart of Obamacare, the individual mandate which codifies in law the domination of the health care system by the insurance companies. The brief states:
Amici thus submit this brief for the purpose of disputing the primary tenet of the Government’s position, that Congress cannot regulate the national healthcare market effectively unless it has power to require that citizens purchase insurance from private insurance companies. On the contrary, as set forth herein, Congress has already demonstrated that it can regulate healthcare markets effectively by implementing a single payer system such as Medicare or the VHA (Veterans Health Administration).
And in case the dagger failed to pierce its mark with that, the brief plunges deeper:
Government contends that the provision is not only “reasonable” but also “necessary” to its broader regulation of the national healthcare market. In particular, the Government contends that the individual mandate is “key to the viability of the Act’s guaranteed-issue and community-rating provisions.” But while it might be true that these provisions will adversely impact private insurers’ profits, and that the individual mandate offsets this adverse impact by guaranteeing the private insurers a large stream of new customers who are required by law to purchase insurance, that is not sufficient to render the individual mandate constitutional. If it were, Congress could “reform” any private industry – whether it be automobiles, coal, pharmaceuticals or any other – by enacting legislation requiring that every American purchase the industry’s goods or services in exchange for some perceived public good the industry provides. Yet Congress has never before enacted such a mandate.
The amicus brief makes no argument against other features of Obamacare, for example, regulation of insurance companies and coverage of those with pre-existing conditions. Such “severability” has been advocated by many, most recently by Columbia law professors, Abbe Gluck and Michael Graetz in a New York Times Op-ed on March 23. But the Obama administration has resisted this separation and many Left groups have been pushed into silence for fear that they will be seen as opposing the “good” features of Obamacare. Severability, never mentioned by Obama loyalists, provides a simple way to oppose the nefarious features of Obamacare and yet allow the other features to go forward.
Much of the rest of the brief is devoted to describing the superiority of single-payer systems, most notably affordability and equality of care. The simplest argument for Single-Payer is that it works as advertised, as can be seen readily in Canada or France, for example.
It is a grave misperception to regard Obamacare as a stepping stone to Single-Payer, as promoted by Obama loyalists. It is not. In fact, it is a massive obstacle. Once in place it will create the impression that universal coverage with cost controls has been achieved, postponing genuine change to another day. And until that day there will be much needless suffering, even as we spend ever more on health care.
Quite simply, Obamacare is the preferred option for both the Republican and Democratic establishments and their backers in the financial sector. Romneycare, its older, Republican twin, has failed to deliver on the promise of cost control and decent care for all. Instead it has delivered a captive population up to the tender mercies of the insurers. Obamacare is more of the same. The coinage Obomneycare says it all.
The real struggle is not between Left and Right but between the top, which favors Obomneycare, and the bottom, the 99% in the parlance of the moment. Hence it is no surprise to see groups of diverse political philosophies, even divergent ones at first sight, rise from among the vast majority to oppose this latest scheme to make money from human illness in the guise of health care reform.
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Real Health Care Advocates Should Support Repeal of the Insurance Mandate
By Kevin Zeese | Dissident Voice | March 26th, 2012
It’s Our Economy, the organization I co-direct with Margaret Flowers, MD, Single Payer Action and 50 doctors filed an amicus brief in HHS v. Florida, the challenge to the Affordable Care Act being heard in the Supreme Court this week.
We support health care reform but oppose the insurance mandate. Merely removing two words from existing law will achieve the President’s stated goals of universal, affordable and guaranteed health care. By removing the words “over 65” from the Medicare law, every American will have health care based on a proven public health care model that has been in existence since 1965. This will control costs and immediately provide health care to everyone in the United States.
Forcing Americans to buy insurance is both unconstitutional and bad policy. Even the most favorable estimates of the Affordable Care Act predict that tens of millions of Americans will not have health insurance when it is fully implemented in 2019. The number of employers offering health benefits will decline under the ACA pushing employees into the individual insurance market where coverage is skimpier and more expensive. The cost of premiums continues to rise and insurance coverage continues to shrink, putting patients at risk of personal bankruptcy when they suffer a serious accident or illness.
The United States already spends enough to provide health care to all. As the amicus brief states:
Studies conducted by the nonpartisan General Accounting Office and the nonpartisan Congressional Budget Office have consistently concluded that if a national single payer system were implemented in the United States, administrative cost-savings alone would be enough to guarantee universal coverage without increasing overall healthcare spending.
In addition, improved Medicare for all will slow the growth in the cost of health care. The cost of health care under Medicare is growing more slowly than private insurance-based health care, despite the fact that it deals with America’s elderly and disabled populations, groups that generally need more health care services. Unlike private insurance, under Medicare the increased cost is not due to administrative costs and bureaucracy. Medicare’s administrative costs have been consistently about 2% while private insurance is 16% administrative costs.
Instead, the ACA builds and expands the system of private insurance. This system is among the least efficient of any healthcare system currently operating in developed nations. The brief states: “In 2009, 28 healthcare expenditures accounted for 17.4 percent of GDP in the United States, compared with only 9.6 percent in the average OECD [The Organization for Economic Co-operation and Development] nation” and “measured per capita, healthcare expenditures in the United States ‘are by far the highest among OECD countries.’”
Medicare provides health services that people like, as the brief points out: “In addition to achieving universal coverage for Americans aged 65 and older and maintaining consistently low administrative costs, Medicare is also highly rated by senior citizens who are its primary beneficiaries – 51 percent of whom give their health insurance an ‘excellent” rating.’”
If the US Congress had considered an evidence-based approach to health reform instead of writing a bill that funnels more wealth to insurance companies that deny and restrict care, it would have been a no brainer to adopt improved Medicare for all. All the data points to a single payer system as the only way to accomplish universal health care and control health care costs.
It is also bad precedent to allow the federal government to mandate all Americans buy a corporate product. This takes corporate welfare to new levels of extreme. If this is upheld, will a future president facing an economic crisis require Americans to buy cars made in the USA – of course, with a government subsidy? Or, will the pension crisis in the United States be ‘solved’ by setting up a pension exchange of JP Morgan, Bank of America, Well Fargo, Chase and Citibank and require Americans to buy a federally subsidized pension from Wall Street?
Finally, an improved Medicare for all system will give everyone in the United States the greatest control of their own healthcare. The insurance industry will be removed from between doctors and patients. Doctors will not have to convince an insurance, profit-minded, bureaucrat to pay for a treatment. And, people will no longer be threatened with increased premiums, decreased coverage and financial ruin caused by an insurance industry that puts profits before people.
We filed the amicus brief because forcing people to purchase a flawed product, private health insurance, is not necessary and will not achieve the goals of universal, guaranteed and affordable health care. There is a health care model in the US already that will achieve these goals – that’s improved Medicare for all. Medicare for all is constitutional and simple to attain – just drop a few words from existing law and we will be on the path to joining the rest of the civilized world when it comes to health care.
Kevin Zeese is executive director of Voters for Peace.
US leaders charged for accepting money from anti-Iran terrorist group
Rehmat’s World | March 19, 2012
On Friday, the US Treasury Department issued subpoenas into an investigation against over three dozen former high ranking US government and military officials for accepting large sum of money in return for lobbying for an anti-Tehran government terrorist militant group, the Mujahideen-e-Khalq (MEK), known as ‘Munafiqun-e-Khalq (or People’s traitors) in Iran. The group is listed as a ‘terrorist organization’ by the State Department. Allegedly, these Judeo-Christians sold their souls to the devil for $30,000 to $160,000.
All under investigation are ‘Israel-Firsters’ belonging to the Republican, Democratic and Tea parties. The list includes former Democratic Gov. Ed Rendell (Jewish) of Pennsylvania and currently MSNBC contributor, Democratic Gov. Howard Dean (Jewish) of Vermont; former Republican Homeland Security Advisor to George W. Bush and currently CNN’s resident terror expert, Frances Townsend (Jewish), Bush’s Attorney General, Michael Mukasey (Jewish), and former UN ambassador John Bolton (crypto-Jew); former Republican Mayor of New York, Rudolph Guiliani (Zionist Christian); and ex-FBI Director Louis Freeh (crypto Jew) and former chairman of the Joint Chiefs of Staff Gen. Hugh Shelton (friend of Jewish Army).
Several of these evil-doers have been advocating tirelessly to get the MEK removed from the US terrorist list. Howard Dean, Gens. Hugh H. Shelton, Peter Pace, Wesley K. Clark, James L. Jones and Rudolph Guiliani and several others went to Paris to meet MEK’s boss, Maryam Rajavi, who told these Muslim haters to urge Washington to recognize her as the President of Iran.
Both MEK and Jundallah terrorist groups are linked with Israel which has used them to destablize Iran by bombing civilian and military targets and assassination of country’s top nuclear scientists.
According to a ruling by the US Supreme Court in 2010 – a DOJ interpretation of the ‘material support’ statute, the MEK’s listing as a terror organization makes it illegal to coordinate with, provide assistance to, or take payment from the group.
Glenn Greenwald, American Jewish lawyer, columnist, author and blogger wrote in Salon recently:
“There are large numbers of people – almost always Muslims – who have been prosecuted and are now in prison for providing “material support” to Terrorist groups for doing far less than Fran Townsend and her fellow cast of bipartisan ex-officials have done with and on behalf of MEK. In fact, the US Government has been (under the administration in which Townsend worked) and still is (under the administration Rendell supports) continuously prosecuting Muslims for providing “material support” for Terrorist groups based on their pure speech, all while Fran Townsend, Ed Rendell and company have said nothing or, worse, supported the legal interpretations that justified these prosecutions“.
A Toxic System
An Inside Glimpse Into the Nefarious Operations of Goldman Sachs
By DARWIN BOND-GRAHAM | CounterPunch | March 15, 2012
Goldman Sachs employee Greg Smith’s very public resignation, replete with a pointed letter published in the New York Times yesterday, has landed upon the investment bank like a bomb. Slamming a “toxic and destructive environment” within Goldman Sachs, Smith says the firm’s internal culture has devolved to the point where the entire staff not only tolerates, but expects workers at all levels, from senior partners to associates, to pursue nothing but ever-more sophisticated means of “ripping their clients off.”
Apologists for the financial sector —including the editors of the major business newspapers and television networks— predictably have shot back with a flurry columns and reports, mostly designed to discredit the former vice president by making fun of Smith and his concerns. If you strip away the ad hominem layers to these responses though, the core problems raised by Smith remain, and the reaction of the business press seems all the more absurd, for Goldman’s pesky turncoat isn’t saying anything that’s news to the public: Goldman Sachs is characterized by a toxic culture of greed? Stop the presses!
There is much more to be said about Goldman Sachs’ derivatives operation, however, and Smith’s provocative resignation provides an opportunity because he was working in the belly of it.
At the center of Smith’s critique are derivatives, the arcane financial instruments that transformed the world’s splintered national economies and regional banking systems into a single, if complicated, global system. Evangelists of derivatives claim they have made new heights of economic growth, trade, and prosperity possible. Critics have pointed out since the beginning of the derivatives boom in the 1980s how perfectly suited they are to fraud and systemic catastrophe via the greed of the few and the powerful.
Derivatives, many close observers have reminded us, were at the center the Enron meltdown, the demise of Long Term Capital Management, the Asian Financial Crisis, and most recently the Great Recession and its various flares, from the housing bubble that exploded from junked collateralized debt obligations, to the current Greek debt imbroglio and the credit default swaps haunting the background. In each case, and many less-known fiascos, derivatives traders in Wall Street’s leading banks played key roles either as the major villains, or enabling partners in vast crimes of information, leverage, and risk. Time and again we find derivatives at the center of scandalous greed. Now we have a high-profile banker denouncing not just some bad apples in his firm, but the firm’s entire culture.
There’s a deeper and more disturbing truth still further below the surface though. To get there it’s instructive to know a little more about Goldman’s derivatives operation, and the wider industry of which Goldman is a small part.
Who are the clients on the receiving end of Goldman’s “toxic and destructive” tendencies? Many times the victims have been other corporations, industrial firms with less sophisticated and perhaps naive financial officers. Quite often though the victims of Goldman’s derivatives operation have been cities, counties, and local government agencies. A key client category for derivatives has been large local governments and agencies that issue hefty sums of long-term debt.
Goldman, and the handful of other global banks that dominate the derivatives industry, sold local governments on the idea that a particular set of derivative products could provide wondrous solutions to hedge against the risks inherent in issuing long term debt. The banks claimed that interest rate swaps could shield counties, cities, and agencies from possible spikes in floating interest rates attached to their bonds. Thus many governments agreed to complex, multi-decade deals involving the swapping of payments on fictive amounts of money associated with real debt. In no time at all interest rate swaps became the single largest category of derivatives, dwarfing all others.
Today interest rate swaps make up 82% of the total market in derivatives, measured by total notional amounts. This is partly the result of governments all over the world entering into interest rate swaps, agreeing to tie cash flows to trillions of notional dollars. What’s key is that none of this has required duplicity or reckless greed on the part of bankers at Goldman Sachs or other firms. Let’s be clear; this is a structural transformation of capitalism on a global scale, and it has sucked up all corporate and government entities into the new logic of hedging and efficiency. That a few powerful financial corporations have placed themselves in strategic positions to benefit from this structural shift should come as no surprise.
In California’s Bay Area, multiple governments have come to find themselves on the paying end of Goldman’s derivatives department where apparently traders referred to clients as “muppets.” The most obvious example is the city of Oakland where a chronic budget crisis has led to the shuttering of schools and cuts to elder services, housing, and public safety. Oakland signed an interest rate swap with Goldman in 1997. The terms of the deal, revised once in 2003, were typical of interest rate swaps except that Oakland’s financial officers, based on this author’s research and impressions, seem to have agreed to a somewhat higher fixed rate obligation than most other cities that signed swap deals for similar amounts of debt with comparable ratings. Oakland partly did this, I am guessing, to receive upfront payments of roughly $5 and $10 million from Goldman Sachs, cash that the city wished to have on hand immediately. The bank seemed eager to do this because the original terms, and renegotiated terms in 2003, were much to its favor. It would earn the $15 million back, and then some over the twenty-four year life of the swap.
Across the Bay, Goldman Sachs signed an interest rate swap agreement with the San Francisco International Airport in 2007 to hedge $143 million in debt. Today this agreement has a negative value to the Airpot of about $22 million, even though its terms were much better than those Oakland agreed to. The Airport, like Oakland, must now pay millions each year to Goldman Sachs until the agreement expires, or until the floating LIBOR interest rate rises enough to offset the net balance of payments. Goldman sold derivatives up and down California and across the United States to cities, counties, and agencies, promising them a means of reducing debt payments over the long haul.
Business press pundits who are now slamming Smith say it’s absurd to expect that Goldman Sachs was doing anything less than trying to make money off these deals, and that counter-parties to the firm’s dealings knew well what they were signing up for. This mischaracterizes the entire problem, however, and threatens to steer the conversation into a narrow, and politically irrelevant one about whether Goldman Sachs is or isn’t a den of fraud.
When governments signed up for interest rate swap deals with Goldman Sachs they certainly did know that the bank would be making money off the agreement, first in the form of up-front fees, and then off of savings produced by the pairing of comparative advantages in debt markets that interest rate swaps are designed to achieve. If you don’t understand that last point, don’t worry. What it means simply is that Goldman Sachs sold interest rate swap products to governments by promising to both protect a government against interest rate volatility, and to also likely reduce the overall long-term cost of borrowing money. It was supposed to be a win-win game.
The truly impressive thing about the whole derivatives market is that it is supposed to ratchet up the efficiency of the entire global economy, making dollars go much further, protecting all parties from volatility, transcending previous market barriers and smoothing flows of cash… at least in theory. The theory seemed to be working in the 1990s and through most of the 2000s. Goldman didn’t have to convince anyone of this for the results were plain to see.
That it hasn’t panned out in practice, that the whole derivatives-based economy nearly collapsed in 2008 and continues to falter, isn’t so much the result of Goldman’s toxic culture of greed as it is the outcome of a much more troubling feature of our economic system. While I agree with Smith’s observation —which is important because it’s based on insider knowledge— that Goldman Sachs is an especially predatory corporation, I see a larger pattern of power relations embodied in the new economy, structured as it is by derivatives, that isn’t based on any specific firm’s internal culture or corruption, or the supposed naivety and stupidity of financial officers in government and less profitable sectors of the economy.
Consider the fact that Goldman Sachs isn’t even the biggest fish in the pond, nor is it profiting the most from the blizzard of derivative products that structure the capitalist economy today. Of the five financial corporations that “dominate in derivatives,” as the U.S. Office of the Comptroller of the Currency puts it, Goldman Sachs ranks fourth, behind by Bank of America, Citibank, and far behind the absolute king of derivatives, JP Morgan Chase.
In February JP Morgan Chase let slip that it cleared $1.4 billion in revenue on trading interest rate swaps in 2011, making these instruments one of the bank’s biggest sources of profit. According to some reports, JP Morgan Chase made billions more in 2008 and 2009 when the financial crisis and federal response combined to make floating-to-fixed interest rate swaps into extremely profitable assets for the banks on the floating side of the deal. Similar things can be said for Mogan Stanley, HSBC, Wells Fargo, Bank of America, Bank of New York, and the dozens of smaller interest rate swap peddlers currently profiting from direct transfers of public dollars.
Are all these banks poisoned by toxic cultures of greed? Surely there are similarities in the internal cultures of large banks, and greed and a little sociopathic ability to profit from another’s loss is a professional asset in these sorts of organizations. In contemporary corporate culture the euphemism for this is “competition.”
Toxic culture and greed, or “competitiveness” if you prefer, in the investment banks isn’t a sufficient answer to why derivatives have become the foundation of today’s global economy, however. The criminal activities of some bankers, driven by these more pervasive cultures, can’t explain the economic crisis and the vast injustices that are being perpetrated still in the name of “economic recovery.” The interest rate swap crisis stinging local governments and enriching the banks is a case in point.
The windfall of revenue accruing to JP Morgan, Goldman Sachs, and their peers from interest rate swap derivatives is due to nothing other than political decisions that have been made at the federal level to allow these deals to run their course, even while benchmark interest rates, influenced by the Federal Reserve’s rate setting, and determined by many of these same banks (the London Interbank Offered Rate, LIBOR) linger close to zero. These political decisions have determined that virtually all interest rate swaps between local and state governments and the largest banks have turned into perverse contracts whereby cities, counties, school districts, water agencies, airports, transit authorities, and hospitals pay millions yearly to the few elite banks that run the global financial system, for nothing meaningful in return. These perfectly legal cash flows measuring globally in the hundreds of billions, from the public to the banks, dwarf anything that is the result of fraud.
Back when the economy was in a “normal” stasis of growth, the early and mid-2000s, interest rate swaps and other derivatives promised security against risk, and a new vista for capitalism and public finance. Tellingly, when the crisis struck, swaps were allowed to become a one way flow of funds from the public to the banks. This shadow bailout for the banks has done considerable damage to already cash-strapped local governments suffering from declines in tax revenues and federal aid.
Whether Goldman Sachs is or isn’t an organization gripped by a toxic culture isn’t all that important when one considers the destructive impact that derivatives have had, and continue to have upon society. Capitalism as it functions today is completely dependent upon derivatives. Interest rate swaps are the single largest type of derivative, measured by notional amount, because they achieve an integration of different national, regional, and sectoral financial markets into one global financial system. It’s in the genetics of the project of financial globalization, fueled by derivatives, that the real problem lies, not in the internal culture of Goldman Sachs, or the illegal behaviors of some bankers across many firms. The real crime lies in perfectly legal and legitimated activities whereby a few powerful corporations design a system that puts the welfare of the world’s vast majority at grave risk. It’s the system that’s toxic. Goldman Sachs merely operates well within the toxicity.
Nevertheless, Greg Smith’s effort to pull back the curtain on one of the most nefarious and powerful corporations in history is most welcomed, especially for the deeper conversations it can stoke about the origins of the current crisis.
Darwin Bond-Graham is a sociologist and author who lives and works in Oakland, CA. He is a contributor to Hopeless: Barack Obama and the Politics of Illusion, forthcoming from AK Press.
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Dying for AIPAC
By Philip Giraldi | The Passionate Attachment | March 15, 2012
In ancient Greece and Rome the front line soldiers were drawn from the wealthiest class of citizens. That was partly because each soldier had to provide his own equipment and armor was expensive, but it was also due to the belief that men who had the most to lose would fight best. It also guaranteed that wars would be no more frequent than necessary, would be short in duration, and would be decisive in nature. America’s Founding Fathers clearly had similar ideas, envisioning only a small national army and much larger state militias where the local property owners would come out on weekends and drill with their weapons on the village green, developing the skills necessary to defend their homes.
I was thinking about the duties entailed in citizenship as I watched television coverage of the spectacle of the annual conference of the American Israel Public Affairs Committee (AIPAC). I wondered about the six thousand plus attendees at the conference and their hubristic sense of entitlement minus any sense of responsibility for what they advocate. The entire conference was dedicated to going to war with Iran, a war that is manifestly not in America’s interest. But there they were, welcoming more than half of Congress and a majority of Supreme Court Justices as well as the President of the United States, as they called for war on behalf of a foreign country.
I asked myself how many of those at AIPAC would pay any price at all for going to war with Iran? How many of them have children in the military? With a little searching I could only find ten members out of the 535 members of Congress having recently had sons or daughters in the military and I would imagine the numbers among other AIPAC attendees would be even lower. I would bet the percentage is miniscule. And how many of those at AIPAC will be contributing their wealth to support another absolutely senseless foreign war? None, most likely as America has become addicted to going to war on a credit card. Instead, the AIPAC attendees have learned that it is possible to start wars by using much smaller sums of money to buy influence and votes on Capitol Hill and compliant editorial writers in the media, meaning that AIPAC’s $65 million budget can easily translate into a war that costs the American taxpayer several trillion dollars, as occurred with Iraq.
AIPAC understands that there is no need to sacrifice one’s children or spend anything more than necessary when there are other people’s children out there who are ready, willing and able to die for your cause and for the foreign land that you hold most dear. It is a coward’s way to go to war without pain, without grief, and without cost to you personally, where fighting and dying by others is little more than an abstraction. It is one more powerful reason why groups like AIPAC, instead of being celebrated, should be placed under Justice Department supervision and strictly monitored as collaborative and subversive agents of foreign powers, which is precisely what they are. And when they step out of line by stealing secrets or suborning politicians it should mean hard time in prison. No one deserves to die in someone else’s fight, particularly in a bad cause, and no one should be able to start a war and escape the consequences.
Philip Giraldi is the executive director of the Council for the National Interest.
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“Democratic Institutions?” – 10 Lessons from history that will destroy your trust in the CIA
By Kit | OffGuardian | July 20, 2018
… At every corner, we are urged to simply believe what we are told. Whether it is about believing Porton Down and MI6 about “novichok”, or believing the White Helmets about Sarin, or believing the FBI about “collusion”, we are presented with no facts, just assertions from authority. Those who question those assertions are deemed “bots” at best or “traitors” at worst.
Well here, fellow traitors, are the Top Ten reasons to question anything and everything the CIA – or any intelligence agency – has ever told you. … Read full article
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