Iranian researchers have produced a nano-drug which has proven effective in battling treatment resistant cancers.
The Cancer Research Center of Tehran University of Medical Sciences produced the polymer-based nanocarrier for the targeted release of the anti-cancer drug curcumin, ISNA reported on Sunday.
“This nanocarrier was made without the use of poisonous catalysts and has proven successful in clinical trials on a number cancer patients,” said Dr Ali Mohammad Alizadeh from the Iran Nanotechnology Initiative Council.
Research has proven that curcumin, which is found in turmeric, has anti-cancer and cancer preventing properties apart from its anti-oxidant and anti-inflammatory properties, he added.
When curcumin is prescribed in its edible form, it has a low effect on the targeted tissues because of its low absorption rate and fast metabolism which causes it to be flushed from the body, he noted.
However, by capsuling curcumin in nano-emulsions (nano curcumin) its medical properties increase, Alizadeh noted.
Even if prescribed in high dosages, the drug is proven not poisonous during first-stage clinical trials and is currently near the end of stage two clinical trials on drug-resistant breast and digestive tract cancers.
Alizadeh added that because all the basic materials required to manufacture nano-curcumin are available in the country it can be domestically mass-produced as an anti-cancer drug.
April 27, 2015
Posted by aletho |
Economics, Science and Pseudo-Science | Cancer, Curcumin |
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Guaranteed profits—at any price
Last Tuesday, President Barack Obama told beltway bullhorn Chris Matthews that Senator Elizabeth Warren was “wrong” about the Trans-Pacific Partnership (TPP), the largest trade deal in American history, linking United States and Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam in a pervasive and binding treaty. The president was referring to Warren’s claim that the trade treaty will license corporations to sue governments, and her contention that this was, to put it mildly, a bad idea.
Warren isn’t wrong, Obama is. And he knows it. The entire TPP, as understood, is based on a single overarching idea: that regulation must not hinder profiteering. This is a fundamentally anti-democratic concept that—if implemented—would effectively eliminate the power of a demos to make its own law. The final authority on any law’s validity would rest elsewhere, beyond the reach of popular sovereignty. From the TPP point-of-view, democracy is just another barrier to trade, and the corporate forces behind the draft treaty are intent on removing that barrier. Simple as that.
That’s why the entire deal has been negotiated in conclave, deliberately beyond the public purview, since the president and his trade representatives know that exposing the deal to the unforgiving light of popular scrutiny would doom it to failure. That’s why the president, like his mentor President Clinton, has lobbied hard for Trade Promotion Authority, or Fast Track, which reduces the Congressional role in the passage of the bill to a ‘yea’ or ‘nay.’
Cracks have begun to show in the formidable cloak behind which the deal has been structured. A coalition of advocacy groups advanced on the U.S. Trade Representatives office this week. Wikileaks has obtained and released chapters from the draft document. Senator Harry Reid declared his position on Fast Track as “… not only no, but hell no.” Warren has proved to be a persistent thorn in the side of White House efforts to smooth over troubling issues with the deal. But the monied interests that rule the beltway have all pressed for passage. And as a Fast Track draft makes its way through Congress, stakes are high. The TPP is, in the apt estimation of political activist Jim Hightower, a “corporate coup d’état.”
Not for the first time, the president and his Republican enemies are yoked by the bipartisan appeal of privilege against this faltering fence of protest. The marriage of convenience was described in last Friday’s sub-head to a New York Times article on TPP: “G.O.P. Is Allied With President Against His Own Party.”
All The Usual Suspects
Who else supports the TPP? Aside from this odd confection of neoliberals, the corporations that rule the beltway feverishly back the TPP. From the leak of Sony digital data we learn that it and its media peers have enthusiastically pressed for the passage of the deal. Sony is joined by major agricultural beneficiaries (Monsanto), mining companies like Infinito Gold, currently suing Costa Rica to keep an ecology-harming mine pit active, as well as pharmaceutical coalitions negotiating stiff intellectual property rights unpopular even in Congress, and various other technology and consumer goods groups. And don’t forget nicotine kingpins like Philip Morris.
Obama reinforces the corporate line: “We have the opportunity to open even more new markets to goods and services backed by three proud words: Made in America.” Perhaps he isn’t aware that our leading export is the workforce that once took pride in that moniker. We’ve exported five million manufacturing jobs since 1994, largely thanks to NAFTA, the model on which the TPP is built. The TPP will only continue that sad trend. The only jobs not being offshored are the ones that can’t be: bartenders and waitresses and health care assistants. That’s the Obama economy: a surfeit of low-wage service jobs filled by debt-saddled degree holders. As Paul Craig Roberts argued in The Failure of Laissez Faire Capitalism, between 2007 and 2014, some eight million students would graduate from American universities and likely seek jobs in the United States. A mere one million degree-requiring jobs would await them. The irony of Obama’s statement is that the TPP would actually move to strip the use of labels like, “Buy American,” since they unduly advocate for local goods.
In truth, the authors of the treaty already know all this. The bill concedes as much, with Democrats building in some throwaway provisions of unspecified aid to workers whose jobs have been offshored, and a tax credit to ostensibly help those ex-workers purchase health insurance. Cold comfort for the jobless, as they are exhorted by the gutless paladins of globalization to ‘toughen up’ and deal with the harsh realities of a globalized economy. As neoliberal stooge Thomas Friedman has said, companies in the glorious global marketplace never hire before they ask, “Can this person add value every hour, every day — more than a worker in India, a robot or a computer?” Of course, the answer is invariably no, so the job goes to Bangladesh or a robot. No moral equation ever enters the picture. Just market discipline for the vulnerable and ingenious efforts by a captive state to shelter capital from the market dynamics it would force on others.
The Investment Chapter
Despite Obama’s disingenuous clichés about “… fully enforceable protections for workers’ rights, the environment and a free and open Internet,” the trade deal makes it clear that labor law and environmental law are both barriers to profitability. We know this thanks to Wikileaks, which once again proved its inestimable value by acquiring and releasing another chapter from the cloak-and-dagger negotiations. This time it was the investment chapter, in which so much of the treaty’s raison d’etre is expressed.
As Public Citizen points out in its lengthy analysis of the chapter, any domestic policy that infringes on an investor’s “right” to a regulatory framework that conforms to their “expectations,” is grounds for a suit. Namely, the suit may be pressed to “the extent to which the government action interferes with distinct, reasonable investment-backed expectations.”
Here’s what the TPP says about such legislation as it relates to investor expectations:
For greater certainty, whether an investor’s investment-backed expectations are reasonable depends, to the extent relevant, on factors such as whether the government provided the investor with binding written assurances and the nature and extent of governmental regulation or the potential for government regulation in the relevant sector.
Try putting that tax on financial transactions. Forget it. Barrier to a reasonable return. Don’t believe it? Just read the TPP investment protocols that would ban capital controls, which is what a financial tax is considered to be by TPP proponents. Try passing that environmental legislation. Not a chance. Hindrance to maximum shareholder value. Just ask Germany how it felt when a Swiss company sued it for shutting down its nuclear industry after Fukushima. Try enacting that youth safety law banning tobacco advertising. Sorry. Needless barrier to profits. Just ask Australia, which is being sued by Philip Morris for trying to protect kids from tar and nicotine.
Public Citizen has tabulated that, “The TPP would newly empower about 9,000 foreign-owned firms in the United States to launch ISDS cases against the U.S. government, while empowering more than 18,000 additional U.S.-owned firms to launch ISDS cases against other signatory governments.” It found that “foreign investors launched at least 50 ISDS claims each year from 2011 through 2013, and another 42 claims in 2014.” If these numbers seem small, recall that for a crucial piece of labor legislation to be struck down, only one firm need win in arbitration in order to financially hamstring a government and set a precedent that would likely ice the reformist urge of future legislatures.
As noted earlier, the text also appears to suggest to ban the practice of promoting domestic goods over foreign—another hurdle to shareholder value. This would effectively prohibit a country from implementing an import-substitution economy without threat of being sued. Governments would be relieved of tools, like tariffs, historically used to protect fledgling native industries. This is exactly what IMF prescriptions often produce—agricultural reforms, for instance, that wipe out native crop production and substitute for it the production of, say, cheap Arabica coffee beans, for export to the global north. Meanwhile, that producer nation must then accept costly IMF lending regimes to pay to import food it might have grown itself.
Of course, it is rarely mentioned that protectionism is how the United States and Britain both built their industrial economies. Or that removing competitor market protections is how they’ve exploited developing economies ever since. The TPP would effectively lock in globalization. It’s a wedge that forces markets open to foreign trade—the textual equivalent of Commodore Perry sailing his gunships into Tokyo Harbor.
ISDS Tribunals
The bill’s backers point to language in which natural resources, human and animal life, and public welfare are all dutifully addressed in the document. The leaked chapter explicitly says that it is not intended to prevent laws relating to these core concerns from being implemented. So then, what’s the problem? The problem is that these tepid inclusions lack the teeth of sanctions or punitive fines. They are mere rhetorical asides designed to help corporate Democrats rationalize their support of the TPP. If lawmakers really cared about the public welfare, they’d move to strip the treaty of its various qualifiers that privilege trade over domestic law. By all means, implement your labor protection, but just ensure “… that such measures are not applied in an arbitrary or unjustifiable manner, or do not constitute a disguised restriction on international trade or investment.”
If lawmakers cared about national sovereignty, they wouldn’t outsource dispute settlement to unelected arbitration panels, more fittingly referred to as, “tribunals.” (Think of scrofulous democracy hunched in the dock, peppered with unanswerable legalese by a corporate lawyer, a surreal twist on the Nuremberg Trials.) Just have a glance at Section B of the investment chapter. Suits will be handled using the Investor-State Dispute Settlement (ISDS) model, itself predicated on the tribunal precedent. And in the event a government lost a suit or settled one, legal costs would be picked up by taxpayers, having been fleeced by an unelected committee whose laws it has no recourse to challenge.
Perhaps investor protections like ISDS were once intended to encourage cross-border investment by affording companies a modicum of reassurance that their investments would be safeguarded by international trade law. But the ISDS has been used for far more than that. The ISDS tribunals have a lovely track record of success (first implemented in a treaty between Germany and Pakistan in 1959). Here’s Public Citizen:
Under U.S. “free trade” agreements (FTAs) alone, foreign firms have already pocketed more than $440 million in taxpayer money via investor-state cases. This includes cases against natural resource policies, environmental protections, health and safety measures and more. ISDS tribunals have ordered more than $3.6 billion in compensation to investors under all U.S. FTAs and Bilateral Investment Treaties (BITs). More than $38 billion remains in pending ISDS claims under these pacts, nearly all of which relate to environmental, energy, financial regulation, public health, land use and transportation policies.
New Era, New Priorities
Now the ISDS is a chisel being used to destroy the regulatory function of governments. All of this is being negotiated by corporate trade representatives and their government lackeys, which appear to have no qualms about the deleterious effects the TPP will have on the general population. But then the corporations these suits represent have long since discarded any sense of patriotic duty to their native nation-states, and with it any obligation to regulate their activities to protect vulnerable citizenries. That loyalty has been replaced by a pitiless commitment to profits. In America, there may have been a time when “what was good for Ford was good for America,” as memorably put by Henry Ford. But not anymore. Now what’s good for shareholders is good for Ford. This was best articulated a couple of years ago by former Exxon CEO Lee Raymond, who bluntly reminded an interviewer, “I’m not a U.S. company, and I don’t make decisions based on what’s good for the U.S.” Those decisions usually include offshoring, liberalizing the labor market, practicing labor arbitrage, relocating production to “business friendly climates” with lax regulatory structures, the most vulpine forms of tax evasion, and so on—all practices that ultimately harm the American worker.
Apple says it feels no obligation to solve America’s problems nor, one would assume, any gratitude to the U.S. taxpayer for funding essential research that Apple brilliantly combined in the iPod and iPhone. Former Labor Secretary Robert Reich finally admits corporations don’t want Americans to make higher wages. The U.S. Chamber of Commerce encourages shipping American jobs abroad. World Bank chiefs point to the economic logic of sending toxic waste to developing nations. Wherever you look, there seems to be little if any concern for citizenry.
The Financial Times refers to ISDS as, “investor protection.” But what it really is, is a profitability guarantee, a legal bulwark against democracy expressed as regulation. Forgive me for thinking that navigating a fluid legislative environment was a standard investment risk. Evidently the champions of free trade can’t be bothered to practice it. Still the White House croons that it has our best interests at heart. If that were true, it would release the full text, launch public charettes to debate its finer points, or perhaps just stage a referendum asking the American people to forfeit their hard-won sovereignty. No such thing will ever happen, of course. As it turns out, democracy is the price of corporate plunder. After all, the greatest risk of all is that the mob might vote the wrong way. And, as the language of the TPP makes explicitly obvious, there are some risks that should be avoided at all costs.
Jason Hirthler can be reached at: jasonhirthler@gmail.com.
April 26, 2015
Posted by aletho |
Civil Liberties, Economics, Progressive Hypocrite | Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, Monsanto, New Zealand, Obama, Peru, Philip Morris, Singapore, United States, Vietnam |
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Chants for bread and social justice didn’t emerge out of the January 25, 2011 revolution. Long before 2011, a strong protest movement existed against the economic policies of former President Mubarak and his regime, which gained momentum in 2006 through the protests and strikes of labor workers in Mahalla al-Kubra.
Nadeem Mansour, director of the Egyptian Center for Economic and Social Rights (ECESR), speaks to Mada Masr about the challenges facing the labor movement in Egypt and the battle for bread and social justice.
Mada Masr: Why do you think demands for social justice were masked by an identity battle post-January 25, 2011?
Nadeem Mansour: My work is still about the struggle for bread, social justice and the minimum wage, but after January 25, political organizations — the Muslim Brotherhood, Salafis and liberal groups — used the media to wage a very public battle over identity politics that masked this fight to some extent. Those who chanted for social rights in 2011 were not able to achieve their aims for numerous reasons — they didn’t have parties to speak for them, nor a media interested in propagating their ideals. Private media in Egypt is owned almost entirely by businessmen, who often have personal interests that are in conflict with labor movements.
At the ECESR, we have a monitor for economic and social protests. We’ve noticed that many protests over the last four years have had economic and social demands, and there have been a lot of them. In 2013, for example, the number of protests exceeded 5000. Our role is to support these demands. Social justice is the key to making any real change, and to all of the problems facing Egyptian society today. For example, terrorism will only be confronted and stability brought about by ensuring structural and social inequalities are addressed.
MM: How has the absence of political support for economic and social rights affected your work at the center?
NM: Support of the poor and marginalized has never received much genuine political interest. Such attention fluctuates according to the political climate. Part of our role as an entity that offers legal, research and media services, and supports syndicates and local communities, is to help people find solutions to their problems on a local level, and then ensuring attention is given to their problems more widely.
Take the case of the minimum wage, as an example. Before we started the campaign and filed the lawsuit, the issue was not even a matter of discussion. The last minimum wage was set in 1982, as far as I remember, and it was around LE34. The campaign — both research and online — was initiated in partnership with workers, as there were no independent trade unions or syndicates at the time. We succeeded in raising the minimum wage from LE34 to LE400, and then to LE700 after the revolution. Now the minimum wage stands at LE1200, and we are still demanding its increase. By setting the minimum wage as a revolutionary demand, it became a public issue, not just one concerning workers.
We are also interested in working more on specific cases, such as the issue of the Misr Shebin al-Kom Spinning and Weaving Company [the country’s largest textile company, based in Mahalla], which was sold to an Indian investor who already owned some of its competitors. He bought it illegally at a cheap price in order to destroy its equipment and decrease production and thus competition. This case prompted the government to issue a law protecting contracts, which we believe is unconstitutional and have challenged in court.
We partnered with a group of workers and farmers in 2012, when the constitution was being revised, to issue a document, “Workers and farmers write the constitution.” While the conflict over the civil or Islamic identity of the state continued, and there were many calls for workers and farmers to be educated about their rights, we decided to go and ask them about what they thought these rights should be. We went to 22 governorates and we talked with thousands of people. We put them together in a legal document and ended up with something similar to the international Covenant on Economic and Social Rights in its relation to health, work and water. This is part of our work, empowering local communities to make decisions that impact on their own lives.
MM: What about the syndicates and unions for workers?
NM: The syndicates and unions are weak because they are part of a nascent movement that is also facing attacks from many directions, and lacks organizational capacity. Additionally, the strength of these organizations is closely related to that of local communities and their capacity to mobilize and sustain action.
The question is, can these problems be solved by uniform state action, or do they require a decentralized approach?
The economic and social crisis in Egypt is partly due to corruption and government bureaucracy. Attempts at reform often happen in a very centralized manner, whereas capacity building has to be conducted locally.
There are between 1500 and 3000 syndicates, and the union’s [Federation of Independent Trade Unions] capacity for representation is limited. Also, there is no legal framework to structure their work, meaning the right to strike is not protected.
The syndicates are weak right now, and consequently so is the union. The ability to mobilize in the public domain is difficult in Egypt currently, and the attention of the public is focused on political parties and activists. But the attack on syndicates is much fiercer.
MM: How would you describe this attack?
NM: Workers face many problems, including: Dismissal, lack of financial rights, penalties against striking workers, threats, jail, physical assaults, torture and death — in extreme cases. The Protest Law also applies to workers, and is often enforced more vigorously. We have workers who are currently being tried for going on strike. Over the last 10 years, Egypt has developed a strong strike movement. The public mobilization on Jan 25 and June 30 were related to strikes over economic and social issues.
The entire movement is not often suppressed, as it is so vast, but smaller attacks are waged. During Morsi’s term in office, workers at the Portland Company in Alexandria were attacked by police dogs, and some were thrown from the second floor of the building, leading to severe injuries.
Just a few days ago, we were able to secure the release of a worker who criticized the administration of his employer on Facebook and is being investigated for it. Such attacks are often arbitrary, so we try to raise the profile of them in the media as much as we can.
Violence and the interference of the security services in the public domain have reached levels we haven’t witnessed in the last 10 years. The general climate is one of fear.
In one incident, a private company ended negotiations with its workers after military intelligence got involved. This is documented in the company’s official records.
MM: How do you deal with legislative obstacles to your work?
NM: We have strong objections to the current law regulating the work of civil society and against various drafts of the newly proposed law. The state is attempting to restrict rights-based work without understanding this will hinder democratic reform.
The Center is registered according to the law. We are not an association, but a legal services company, providing consultancy on legal and economic matters. We are a legal office and as such pay the appropriate taxes and have the required documents. Our work is transparent and open.
We are, however, interested in the law governing non-governmental organizations, because we are interested in the ways people organize and in supporting this locally and nationally. We want a law that supports activities and solidarity work. If I’m a legal firm that wants to provide free services, I should be able to do so. Why am I being dealt with as an association in this case?
MM: When and why did you decide to work in human rights?
NM: I began work as a trainee researcher at the Hisham Mubarak Law Center in 2008. I then started the ECESR with Khalid Ali and two other colleagues in 2009.
My interest in rights stems from my study of political economies, which focused on the relationship between the state, local communities and the labor movement. In human rights centers, there are many opportunities for young researchers to expand and develop their ideas.
Many people benefit from our legal services that wouldn’t have access to them otherwise. This motivates me to continue. Our work builds on that of many other generations and organizations. The public domain expanded dramatically after the revolution, enabling rights work to gain ground and the number of organizations dedicated to it to increase. The scale of such work was much more limited in the 90s, for example.
MM: Do you think the current restrictions on civil society will deter young people from getting involved in rights-based work?
NM: I don’t think this will prevent new generations from joining. There have always been restrictions on rights-related work. Under Mubarak, and even before I started in the 90s and 2000s, we suffered consistent and fierce attacks. The intensity of the attack on the movement has also increased with its ability to make an impact.
As long as people’s rights are violated, there will be a need for such organizations to exist.
—
This is part of a series of interviews with human rights workers in Egypt that will be published in the coming weeks.
April 26, 2015
Posted by aletho |
Civil Liberties, Economics, Solidarity and Activism | Egypt, Human rights |
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Richard Cordray (former Attorney General of Ohio), the head of the Consumer Finance Protection Bureau (CFPG) and Gary Gensler (a former disaster under Bill Clinton and Goldman Sachs) have been the two great appointments by President Obama in the field of finance. Obama’s other appointments at Treasury, the financial regulatory agencies, and the (non) prosecutors who are supposed to specialize in financial prosecutions have been nightmarishly bad.
Gensler was another Rubinite from Goldman Sachs who, under Bill Clinton, helped destroy Brooksley Born’s effort to protect the nation from the financial derivatives that blew up AIG and much of the financial world through passage of the infamous Commodity Futures Modernization Act of 2000. As Obama’s appointee to chair the Commodity Futures Trade Commission (CFTC), however, Gensler justly earned praise for attempting to restore effective regulation. Gensler was a grave disappointment to Obama’s administration, which thought it was sending a reliably pro-finance Rubinite to run a fairly obscure agency he had helped emasculate. When Gensler showed a spine Obama refused to reappoint him and replaced Gensler with Timothy G. Massad, a Timothy Geithner minion noted for his pro-industry views. Massad’s claim to fame was being one of the principal unprincipled architects of the failed homeowner relief programs. As I pointed out in my first Bill Moyers interview, failing (for the right political reasons) proves you are a reliable “team player” and gets you promoted in Washington, D.C. As Geithner found out, succeeding gets you your walking papers. Jesse Eisinger, as his norm, wrote a great piece about Massad when Obama nominated him in November 2013. An alternative view can be found in the American Banker, which gave prominently space to an op ed praising Massad’s nomination written by the head of a firm that trains CFTC staff.
Massad’s tenure represents a regulatory retreat at the CFTC, but in fairness, as bad as Obama is on financial regulation the Republicans are vastly worse. They are trying to force the wholesale repeal the Dodd-Frank protections on financial derivatives and they have waged an unholy war on the CFTC’s budget to try to make it impossible for the agency to protect the public. The GOP also fought hard to prevent Cordray’s appointment because they (more precisely, their donors), rightly, feared his integrity and skills.
One might think that Obama, and Democratic Party candidates for the presidential nomination would be campaigning on the issue of Republicans being in the pocket of the industry and trying to recreate Bush’s anti-regulatory “Wrecking Crew” (as Tom Frank aptly labeled it) that produced the financial crisis. But leaders of the Democratic Leadership Council (DLC) (aka “new Democrats,” which include both Clintons and Obama – by his own words) cannot bring themselves to channel their inner FDR and take on big finance. (The DLC is defunct as a formal organization, but its political leaders and pro-finance and anti-regulatory dogmas remain intact.) Big finance is the DLC’s financial base. Senator Bernie Sanders may run. If he does the Republican Party’s unholy war on regulation will be one of his primary issues.
Hillary Clinton’s Successful Gensler Gambit
The financial media is abuzz today with the leaked news that Hillary Clinton is hiring Gensler as a senior campaign staffer. From H. Clinton’s perspective, the media buzz was perfect. Bloomberg’s article bears this gushing one sentence summary: “Hillary Clinton will bring on one of Wall Street’s fiercest critics to oversee her campaign’s finances.” The article explains the politics.
“For Clinton, who has been fighting her left flank’s concern that she is too cozy with Wall Street, Gensler is a notable hire. He became known as someone with sharp elbows —even during his negotiations within the Obama administration—in his push for tighter regulation.”
In short, H. Clinton’s campaign got the ideal spin from what could have been a very hostile financial media. Hiring, and leaking, Gensler’s hire was a very smart political move.
Just One Little Catch
But here’s the catch. Gensler is being hired for a job that will take 150% of his available time given H. Clinton’s ability to raise money and the obscene rules that make modern campaign finance a sport in which both parties routinely devise “black box” funding devices to allow the wealthy to rule American politics secretly. This has two critical implications. Gensler will not be working to block the power of the secretive wealthy – he will be doing the opposite, at least 16 hours a day. It also means that he was not hired to advise H. Clinton on the crimes of Wall Street banksters and the vital need for vigorous regulation and prosecutions. Even if he had the desire to fill that role he will have no time to do so and he will be busy secretly catering to the needs of the wealthy and politically dominant criminal class.
Gensler Was No Godzilla When He Led the CFTC
Gensler’s stint at the CFTC is a nice story of redemption. He did try to be a vigorous regulator over great opposition from the industry, much of Congress (including many House Democrats), and Treasury. Gensler’s desire to be an effective regulator was unacceptable to Obama, who in another act of “revealed preferences” refused to reappoint Gensler.
But Gensler is not, remotely, “one of Wall Street’s fiercest critics.” Quick: memory association: what’s Gensler’s “fiercest” criticism of Wall Street? You came up blank, didn’t you? I checked the Wall Street Journal and did a more general web search. The WSJ was happy to see that Obama refused to reappoint him (the cover story is that Gensler did not want to serve another term) and it criticized him as harsh – but I could not find a story quoting any harsh denunciation of Wall Street by Gensler. Given that even life-long banking apologists like Geithner’s replacement as President of FRBNY now routinely refer to the corrupt culture of Wall Street, Geithner is not even one of the harsher critics of Wall Street within the none-too-critical Obama administration.
The “sharp elbows” claim is pure invention by Geithner’s worse than useless minions. Anyone who refused to brownnose the finance industry was considered far too aggressive by Geithner. Geithner and his team launched the same smear at Sheila Bair (FDIC chair) and Neil Barofsky (SIGTARP). We (the S&L regulators) were routinely referred to as “Nazis,” the “Gestapo,” and the “KGB.” The political, dirty tricks, and litigation attacks on us were far more severe and consequential because our actions were sending elites to prison and humiliating their political patrons who rushed to return campaign contributions from those we exposed as frauds.
Back in the S&L days under the team assembled by Federal Home Loan Bank Board Chairman Edwin Gray, the Reagan administration detested us precisely because Gensler (in his CFTC incarnation) would have been somewhere in the middle of the distribution of regulatory vigor. The comparison is conjectural because under Gray’s leadership, which generally became so supportive of regulatory vigor, and the tutelage of Joe Selby and Mike Patriarca (the Nation’s consensus choices as the most effective and vigorous financial regulators), Gensler might have developed into a far more effective regulator. Gensler’s mentor, Robert (“Bob”) Rubin, inflicted a severe impediment to regulatory effectiveness that Gensler had to struggle to try to overcome.
Conclusion
Ignore the media crush on Gensler’s appointment. As campaign CFO for H. Clinton his job is the care and feeding of the DLC’s financial base – the finance industry. H. Clinton’s Gensler gambit is smart politics, but if you think it means she is seeking progressive advice you are being played – successfully.
April 26, 2015
Posted by aletho |
Corruption, Deception, Economics, Progressive Hypocrite | Gary Gensler, Goldman Sachs, Hillary Clinton, Robert Rubin, United States |
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A good portion of the money that is supposed to be going to government retirees is being skimmed off by Wall Street as fees, much of them undisclosed, charged by private equity companies.
CEM Benchmarking, which compares costs for various public and private equity funds, says in a report (pdf) that “Less than one‐half of the very substantial [private equity] costs incurred by U.S. pension funds are currently being disclosed.” The difference can be as much as $60 million on a portfolio valued at $3 billion, CEM reported.
Private equity funds say they’re worth the fees they charge because they bring in better returns on investments. However, it’s difficult to verify this claim because long-term returns are mostly self-reported by the equity firms.
Of this country’s $3 trillion in public pension fund assets, roughly 9% ($270 billion) gets invested in private equity firms. The industry’s 2% management fee therefore pays the equity industry about $5.4 billion a year. But if CEM’s calculations apply uniformly, that could mean that in fact more than $10 billion a year, half of that in hidden fees, are being taken from retirees at the same time that governments are trying to cut benefits, according to the International Business Times.
One recent example of this is in New Jersey, where big fees for handling government pensions have gone to fund managers who supported Republican Governor Chris Christie’s election campaigns. In the five years since Christie took office, the International Business Times reported, fees have quadrupled at the same time Christie has said the funds don’t have enough money to pay all the benefits to which retirees are entitled. New Jersey pension trustees have announced an investigation of the funds.
“With billions of public worker and taxpayer dollars put at risk in the highest-cost, most opaque investment schemes ever devised by Wall Street for a decade now, investigations that hold Wall Street profiteers accountable are long, long overdue,” former Securities and Exchange Commission attorney Ted Siedle wrote in Forbes.
Other governments aren’t waiting around. Montgomery County, Pennsylvania, in the Philadelphia suburbs, has switched most of its retirement funds from private equity to low-fee stock index funds. California’s massive retirement system, CalPERS, announced last year that it would be divesting itself of hedge funds because of their high costs.
To Learn More:
Cities and States Paying Massive Secret Fees to Wall Street: Report (International Business Times )
Public Pension Fund Analysis (Private Equity Growth Capital Council) (pdf)
The Time Has Come for Standardized Total Cost for Private Equity (CEM Benchmarking) (pdf)
State Government Revenues Tops Expenditures Thanks to Pension Fund Investments (by Noel Brinkerhoff, AllGov )
California Pensions to Dump $4-Billion Hedge Fund Investments (by Noel Brinkerhoff, Steve Straehley and Ken Broder, AllGov California )
“Vulture” Capitalists Strike Vulnerable Cities and Counties (by Matt Bewig, AllGov )
April 26, 2015
Posted by aletho |
Corruption, Economics | Chris Christie, New Jersey, United States |
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The idea sounds great—provide Internet access for the millions of people in developing areas that don’t have it. But in the process of putting that knowledge at the fingertips of that under-served community, Facebook founder Mark Zuckerberg’s Internet.org has drawn a bright line between the haves and have-nots.
Zuckerberg’s plan, developed with manufacturers such as Nokia, Ericsson, Qualcomm and Samsung, allows free access via mobile phones in developing areas only to certain parts of the Internet. Surprise—Facebook is one of the applications able to be reached by way of the Internet.org app. Wikipedia is also available as are weather and a few other sites. But if you want to go to a site not on the app, you must either pay a fee or you’re out of luck.
Latin American leaders, such as Colombian President Juan Manuel Santos, have applauded the Internet.org strategy, according to the Electronic Frontier Foundation (EFF). But others, including Carolina Botero, executive director of the Karisma Foundation in Bogotá, have reservations. Karisma supports the positive use of technology as it pertains to human rights. Botero said: “We have serious concerns that Internet.org is presented as a public policy strategy for universal access to the Internet. This initiative compromises everyone’s rights and blurs the government’s obligation to reduce the digital divide for its citizens for compromised access to certain applications. No matter how interesting they are, these services are associated with a commercial interest of a multinational which the state is directly supporting.”
Zuckerberg claims that because Internet.org doesn’t specifically block sites or charge sites more to run faster, the app conforms with net neutrality principles. But more businesses are starting to see it the other way and are opting out of the program, among them a group of Indian publishers.
“We support net neutrality because it creates a fair, level playing field for all companies—big and small—to produce the best service and offer it to consumers,” The Times Group, one of the publishers that withdrew from Internet.org, said in a statement. Other Indian companies to opt out of Internet.org are travel website Cleartrip and information site Newshunt. “What started off with providing a simple search service has us now concerned with influencing customer decision-making by forcing options on them, something that is against our core DNA,” Cleartrip said in a statement, according to The Wall Street Journal.
“The problem runs deeper than simply which sites to which poor users should have subsidized access,” wrote EFF’s David Boagado and Katitza Rodriguez. “It lies in the very concept that Facebook and its corporate partners, or governments, should be able to privilege one service or site above another. Despite the good intentions of Facebook and the handful of allied companies, Internet.org effectively leaves its users without a real Internet in the [Latin American] region.”
The result is “having access to only a sliver of what is supposed to be the worldwide web,” wrote Issie Lapowsky at Wired. “As we’ve said before, this creates ‘an Internet for poor people.’”
Zuckerberg’s response, basically, is that half a loaf is better than none. “Arguments about net neutrality shouldn’t be used to prevent the most disadvantaged people in society from gaining access or to deprive people of opportunity,” he wrote April 17 in a Facebook post. “Eliminating programs that bring more people online won’t increase social inclusion or close the digital divide. It will only deprive all of us of the ideas and contributions of the two thirds of the world who are not connected.”
To Learn More:
Does Internet.org Leave Latin Americans Without A Real Internet? (by David Bogado and Katitza Rodriguez, Electronic Frontier Foundation)
Mark Zuckerberg Can’t Have It Both Ways on Net Neutrality (by Issie Lapowsky, Wired )
Indian Companies Pull Out of Internet.org amid Battle over Net Neutrality (by Aditi Malhotra, Wall Street Journal )
Supreme Court Upholds Cyber Freedom in India (by Karan Singh, AllGov India )
April 26, 2015
Posted by aletho |
Economics, Full Spectrum Dominance | Ericsson, Facebook, India, Latin America, Mark Zuckerberg, Nokia, Qualcomm, Samsung |
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Germany’s Federal Intelligence Service has been spying for US intelligence agencies for years. Merkel’s Office should have been informed in 2008 about this practice, but the federal government has not undertaken any corresponding measures, a German magazine wrote.
It became known on Thursday the German Federal Intelligence Service (BND) overheard communications of European companies and politicians for the NSA, according to Deutsche Wirtschafts Nachrichten.
However, Merkel’s Office seems to have done nothing to stop these activities, though it was informed about US espionage attempts in 2008.
According to the available information, the NSA was trying to get information about the multinational arms companies EADS and Eurocopter. This was contrary to German interests, and the BND had rejected the requests at that time.
However, now it has become clear that the BND assisted the US National Security Agency (NSA) in spying on European targets over the last few years.
The revelation was perceived by many German politicians as “scandalous”. They demanded an end to such ‘collaboration’ with the US and argued that the chancellor’s office should probably have been aware of the spy agencies’ cooperation.
April 26, 2015
Posted by aletho |
Corruption, Economics, Illegal Occupation | BND, Germany, National Security Agency, NSA, United States |
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MOSCOW — Metropolitan police have used tear gas against protesters after they have tried stormed into a police station in South London’s Brixton during anti-gentrification demonstrations, local media reported Saturday.
According to ITV, members of the law enforcement removed the protesters who entered the station using tear gas.
Thousands of people have gathered in Brixton’s central square to protest against gentrification earlier in the day, according to media.
The event’s organizers claim they support change and regeneration which would benefit the existing communities in the area, but not gentrification. The local council or associations have sent eviction notices to tenants of at least four council homes to be renewed by private constructions.
“Stop rent rises, stop evictions,” the protesters’ placards read. Other slogans included “People before profit,” “More council homes, not luxury homes,” and “Property developers are vultures.”
One demonstrator held a sign saying “Black communities matter,” protesting against the gentrification of Brixton, which has a large percentage of residents of African and Caribbean descent.
“Social diversity is driven out by lack of truly affordable housing. Local businesses are driven out by increasing rents and redevelopment schemes that benefit national & multinational businesses, siphoning money out of the area,” according to the event’s organizers, who fear only the wealthy would be able to live in Brixton.
Gentrification is affecting more and more regions all over London, with people protesting against urban renewal. Earlier this week, anti-gentrification campaigners disrupted a property developer event in London, according to the local media.
April 25, 2015
Posted by aletho |
Economics, Supremacism, Social Darwinism | Brixton, Human rights, London, UK |
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In the years before he ran for President in 1968, Richard Nixon’s publicists promoted a New Nixon. It was the same old Tricky Dicky with the rough edges smoothed away.
The old Nixon lost the 1960 presidential election to John Kennedy in 1960; then Pat Brown defeated him in 1962, when he ran for the Governorship of California. The hope after that was, as Nixon himself put it, that the press would no longer “have Nixon to kick around anymore.” Nixon had always had trouble with the press.
But this was not to be. You just can’t keep a good scoundrel down.
The Vietnam War was a bipartisan concoction, from its inception to its ignominious end, but, before 1968, liberal Democrats – JFK and Lyndon Johnson, leading figures in their administrations, and Democratic Senators and Representatives — were the ones leading the way. Vietnam was not just an anti-Soviet and anti-Chinese proxy war; it was a liberal’s war.
Republicans were culpable too, and Nixon was hardly an exponent of peace. But neither he nor the party whose ticket he led had yet taken on the now familiar more-bellicose-than-thou persona of the post-Vietnam GOP.
The more unpopular the war became, the happier Republicans were that Lyndon Johnson, not one of their own, was taking the blame. Democrats were still widely considered the more warlike of the two parties. How could they not be – having brought the United States into the First and Second World Wars and into Korea? Vietnam was their thing.
But then, as now, the Democratic Party was where the liberals were, most of them anyway; and so, the part of the anti-war movement that was electorally inclined, the less radical part, gravitated into their ranks, effectively dividing the party into pro- and anti-war camps.
There were Republican liberals too back then, but a cultural divide already separated the anti-war movement from the GOP; and, with only a few exceptions, Republican liberals and moderates were no more peace-friendly than LBJ. The prospect of turning the GOP into an anti-war party never occurred.
As the 1968 election approached, Nixon said that he had a secret plan for ending the war. He was lying, of course; but, at the time, his claim was not implausible; hadn’t Eisenhower said much the same about Korea, and he was telling the truth.
There were even a few anti-war liberals who voted for Nixon to punish the Democrats, and many more who considered doing so.
The Democrats who led the way in Vietnam, LBJ and the cohort he inherited from Kennedy, were decent enough on domestic policy. By today’s standards, they were outstanding.
Nixon wasn’t bad either. Unlike today’s Republicans and Democrats, but like Eisenhower, he had no interest in dismantling New Deal and Fair Deal advances.
And for getting affirmative action going, for launching various “black capitalism” programs, for floating the prospect of a negative income tax and genuine national health insurance, for breathing life into the environmental movement, for pumping money into scientific research and infrastructure development, and much else, his presidency puts Barack Obama’s and Bill Clinton’s to shame.
Between Nixon and what we can expect from Bill Clinton’s even more retrograde wife, there is no comparison at all.
To get his presidential aspirations back on track, there was therefore no need for him to take a liberal or “populist” turn. This was not what the New Nixon was about.
It was about how he presented himself, his public persona. His publicists understood that that had to be changed – fast.
But, you cannot change a public persona without bringing politics in; not if you are running for President. There must be at least the appearance of substantive change.
And so what made the New Nixon new was his adoption of a more statesmanlike veneer.
The New Nixon was, or was made to seem, more thoughtful than the Old. His anti-Communism was toned down a notch — to appear less paranoid and crass. And, under Henry Kissinger’s tutelage, he learned how to present himself before the world as a geopolitical strategist of uncommon insight.
Of the Old Nixon, people would say: “would you buy a used car from that man?” The New Nixon was less flagrantly sleazy.
The mean-spirited, internally tormented figure voters rejected twice was made over to seem avuncular and wise, an Eisenhower in the rough.
As it turned out, the makeover was not entirely smoke and mirrors. Nixon’s personality was what his detractors knew it to be; there was no changing that. But there was some reality behind the statesman-like veneer that his handlers had him project.
No one would have expected the Old Nixon to lead the opening towards China or to advance détente with the USSR; no one thought he had it in him.
Once in office, it became clear that the man was not as void of vision or as incapable of deep thinking as everyone had believed.
It also became clear that there was more villainy in him than even his most ardent detractors had imagined.
* * *
With her campaign for the presidency in 2016 now officially underway, we are witnessing the roll-out of a New Hillary.
The parallels with Nixon’s makeover are striking.
Clinton’s presidential plans had been thwarted by a more glamorous opponent, just as Nixon’s had been; and she too has always had trouble with the press.
And the New Hillary, like the New Nixon, will be very much like the Old.
There are other uncanny parallels: Barack Obama, the rival who did the Old Hillary in, was, at the time, heralded as the next JFK, the man who defeated Nixon forty-eight years before. Even Caroline Kennedy was on board with that.
For a moment too, there was hope, as they vacated the White House, that, in the new century, we wouldn’t have Clintons to kick around anymore.
Of course, there was never any chance of that – not with Bill being, as the quip went, the bride at every wedding and the corpse at every funeral; and not with Hillary being parachuted into New York state to be its Senator.
That arrangement also conjures up memories of the sixties – of Jack’s brother Bobby, RFK. When Johnson wanted him out of Washington, he too was parachuted into New York to become its Senator.
Massachusetts would have been more appropriate, but brother Teddy was already a Massachusetts Senator, and two Kennedys in the Senate from the same state would be unseemly.
More important to RFK and his minions, adding on to the Kennedy power base in Massachusetts would have been a waste or time and effort. New York was a different story.
Hillary was even less a New Yorker than Kennedy was. She was an Illinois girl, born and bred, who went to college and Law School in New England and then spent her adult life in Arkansas and Washington DC. New York City was just a great place to visit; the rest of the state might as well have been on the dark side of the moon.
This is not the only reason why the parallel with RFK is not exact.
Robert Kennedy had at least been his brother’s Attorney General, and also his closest advisor and most trusted friend. He knew about, and participated in, JFK’s intrigues and assignations; he knew about his brother’s poor health. He was the keeper of the family’s skeletons.
While his brother was alive, the whole world knew that when RFK spoke, he was speaking for the President. He was the Kennedy administration’s unchallenged and unchallengeable consigliere. When need be, he was also the enforcer of his brother’s will.
And he was his brother’s heir apparent. As such, RFK was a power to be reckoned with – not just for his hold over the Democratic Party but, more importantly, over the popular imagination.
With Hillary, there was nothing like that. She did play a role in her husband’s administration – a comparatively minor and not very successful one. It was she, for example, who, more than anyone, set the cause of health care reform back a generation.
Though hardly a Queen of Camelot, her role was more or less like Jackie’s. She and her husband had arrived at a modus vivendi — based on necessity, not trust.
When she spoke, it was with her own voice, not his; and she would be the last, not the first, to know about his intrigues and assignations.
Hillary’s only qualification for the office she sought in New York was that she had been a First Lady, an official wife.
Because she was the wife of a philandering husband, she sometimes did get her way. Aggrieved wives often do, especially when their husbands are in the national spotlight and hanging on by the skins of their teeth. The last thing Bill needed was political embarrassment on Hillary’s account.
But she was never the voice of the Clinton administration, and she was never her husband’s administration’s consigliere.
By the time Robert Kennedy was assassinated, the hopes of a generation were riding on his shoulders. No hopes ride on Hillary’s; none ever have and none ever will.
Therefore, it wasn’t just within “the great right-wing conspiracy” Hillary spoke of that, for all the wrong reasons, people looked forward to seeing the back of her. There were many who shared this hope – for reasons that are eminently sound.
But, as it had been with Nixon, those who hoped hoped in vain. She never really retired from public view.
Her operatives think that a makeover now will get her back on track for winning the office she believes her due.
One wonders how much the Nixon precedent figures in their thinking. It is unclear what, if anything, his makeover had to do with it, but a made over Nixon did finally gain the office that he too believed his due.
For this, the country paid dearly; and Vietnam, Cambodia, Chile and much of the rest of the world suffered egregiously.
We can expect outcomes similarly horrendous, if and when the New Hillary calls the shots. This is yet another parallel waiting to happen.
* * *
Old Hillary cannot be made over in quite the way that Old Nixon was. After her tenure as Secretary of State, promoting her diplomatic prowess is out of the question.
Future historians will fault her handling of America’s affairs almost everywhere the empire’s talons reached – not just in the Muslim world. But her clueless fumbling during the Arab Spring is sure to receive special attention.
On this, her Republican detractors are on to something.
But if the past is any guide, to drive the point home, they will focus only on her role in Libya in 2011 and in the months that followed.
She does indeed have much to answer for about that. So do Obama and his other humanitarian interveners. They brought Libya to ruin. The consequences of their clueless bumbling are still unfolding.
Thanks to Secretary Clinton and her posse, Libya became a failed state. In the Mediterranean today, off the Libyan coast, refugees and asylum seekers are drowning because of what Clinton and the people around her helped bring about.
But the Republican way is to tell only part of the story, and to tell it in ways that mainly reflect their own disingenuousness. Where the Clintons are concerned, this is how it has been since Day One.
Therefore expect Republicans to focus narrowly, if not exclusively, on the deaths of American diplomats (or whatever they were) in the consulate in Benghazi.
This was indeed a disaster, but their concerns are disingenuous because they know, as well as anyone, that the Benghazi consulate was, as the Iranians would say, “a nest of spies” that neither Clinton nor anyone else in the Obama administration can talk about honestly.
It was the same with the famous “missile gap” that JFK would bring up every chance he got when he ran against Nixon. There was no such thing, and Kennedy knew it. He also knew that Nixon couldn’t say this without compromising what he – and his boss, President Eisenhower — took to be the national interest.
This time, the shoe will be on the other party’s foot.
Still, the fact remains: Clinton was in way over her head when the Arab Spring erupted, and almost everything she did was wrong. If only for that, she should never be allowed anywhere near the corridors of power again.
Just as surely as Republicans will make the attack on the Benghazi consulate the issue, Democrats will do their best to make Clinton’s failures at the State Department a non-issue.
They will probably succeed too – well enough to fool most liberals.
But, to that end, the less they say about her diplomacy, the better for them. This is why Clinton’s makeover, unlike Nixon’s, will have little, if anything, to do with foreign affairs.
It will be about her likeability instead.
The Old Hillary was imperious; she exuded a sense of entitlement. The New Hillary is downright personable.
When New Hillary campaigns, instead of just flying in and out of major venues for mega-rallies or hobnobs with plutocrats, she will now sometimes also chat one-on-one with (carefully selected) “ordinary” people. She will brandish the common touch.
She will also take what media pundits call a “populist” line, doing her best to appeal to voters who would prefer Elizabeth Warren – or anybody to Hillary’s left.
These changes run together – “populist,” “popular.” Some well-remunerated marketing genius in Hillary’s employ must think that the two are one and the same, or that the target audience can be duped into thinking that they are.
It will be a hard sell, but the sales campaign will probably succeed with the target audience. Everybody knows that what candidates say bears almost no relation to what they will do – think, for example, of Obama’s “I will close Guantanamo” — but the will to believe becomes indomitable around election time.
Who is in the audience that Hillary’s hucksters are targeting? Apparently, it is social liberals – people who would vote for her, or any Democrat, over any imaginable Republican anyway, but who may, from sheer disgust or learned indifference, not vote at all.
In other words, they are preaching to the choir. This might seem a waste of time and effort; it usually is. But with a Hillary Clinton presidency looming, the choir cannot be counted on to show up at the church. They must be made to want to sing.
Hillary’s hucksters understand this; they know that their first order of business is to remind the Democratic “base,” the social liberal part of it, what makes Democrats worth supporting.
There are too few Democrats on Hillary’s right on economic policy issues to worry about, in any case; and her team is evidently counting on Republicans scaring off most “swing voters.” This happened in 2012, and it is likely to happen again in 2016.
And so the idea is to emphasize Hillary’s social liberalism – in the hope of getting potential voters enthused.
Her handlers have an even more compelling reason too: there is no other way to provide her with a more leftish patina that would not upset the donor class.
* * *
As a rule, advertisers like to appeal to the kinds of consumers known in the days when Nixon was starting his makeover, and when Hillary was still a Goldwater Girl, as “the Pepsi Generation,”
The Pepsi Generation was “with it,” whatever “it” was; and they felt good about themselves and about their world. Optimism was in the air they breathed.
The name lingers – it was a triumph of advertising genius – and the idea behind it continues to guide marketing campaigns.
But, in an age of increasing social insecurity, what works for selling soft drinks is no longer directly transferable to advertising campaigns aimed at selling candidates to voters.
Ronald Reagan’s “morning in America” was its last hurrah.
Since then, a succession of Reaganite (neoliberal, aggressively imperialist) Presidents – Reagan himself, the two Bushes, Bill Clinton and Barack Obama – have superintended such a profound diminution in voters’ expectations that it is no longer possible be with it and perky, or even mildly optimistic, in political contexts.
The one brief exception was America’s – and the world’s – brief Obamamania phase. In retrospect, the predictable shattering of the illusions that sprouted up around Obama’s candidacy in 2008 only accelerated the long term, increasingly pessimistic trend.
But even if optimism no longer sells candidates, being with it still counts for something – or so Hillary’s hucksters believe.
If their campaign launch video — featuring single moms, a multi-racial family and a gay couple about to be married — is any indication, Hillary’s minions seem to have decided to cede the religious Right to Ted Cruz or whichever wing-nut strikes the fancy of America’s most benighted, and to appeal instead to voters who are already on board, but who may not turn out for Hillary even so.
She is plainly not a candidate to get the juices flowing the way Obama did once upon a time; she is way too uncool.
But social liberalism is cool – cool enough, Team Hillary hopes, to bring the faithful out on Election Day.
In the Golden Age of the Pepsi Generation, Democrats aspiring to become their party’s nominee would be courting labor leaders and appealing to rank-and-file workers.
But Hillary and the people around her see no percentage in that; not when the union movement is a pale shadow of its former self, a casualty of the neoliberal age; and not when the leaders of what is left of it are as eager as their predecessors were to do Democrats yeoman service.
In the old days, there was at least a quid pro quo. Democrats did the labor movement favors too.
When Obama ran the first time, this tradition had not yet entirely died out. Candidate Obama was not about to come out against Taft Hartley, but he did endorse the Employee Free Choice Act. Had it been enacted, union organizing would have become easier. Obama said that he would make it a priority.
Needless to say, no one has heard anything from him about it since.
And now, true to form, most labor leaders are falling into place — behind Hillary. Her people see no need to chat them up; they have — or think they have — nowhere else to go.
Count on them instead to give their all while expecting nothing in return — beyond keeping the Republicans at bay. They no longer even ask.
* * *
Is pandering to later-day Pepsi Generation types, while ignoring workers and other traditional Democratic constituencies, a good strategy?
Not as a rule, especially in general elections. But, this time, it hardly matters because it is as plain as can be that the Republican candidate in 2016 will be whacky enough to scare off all but the most reactionary voters. The Democrat, whoever she is, will win no matter what strategy she deploys.
Meanwhile, the Clinton makeover strategy is a good one insofar as its point is to ward off competitors in Democratic primaries and caucuses.
Were any candidate to advance even modestly “populist” economic proposals in a way that seems that they mean it, the full weight of the donor class would come down upon them. This is not something Hillary would do in any case; it goes against her nature.
Therefore the only thing she can do, when she and her advisors find it expedient to take a more liberal or populist turn, is display support for costless (to capitalists) social issues. When, like gay marriage, those issues enjoy widespread support in nearly all sectors of the population outside the religious Right, proclaiming support is a no-brainer.
No surprise, then, that the Clinton campaign led with this gambit. Her handlers have positioned her well.
Even so, a real populist could defeat Hillary-style “populism,” provided word gets out to voters in the early caucus and primary states in time to build what the first President Bush called “the big Mo.” Even in today’s America, this could happen without billionaire backing.
This is why I am inclined to support the candidacy of Jim Webb.
If he plays his cards right, later-day Pepsi Generation types could become the ones with nowhere else to go, while the kinds of voters who made the New and Fair Deals possible, and who propelled the Great Society forward, putting the Democratic party on the side of racial and economic justice, could come back into the fold – not grudgingly, but enthusiastically.
Webb could turn the New Nixon’s Southern Strategy around, bringing not just “white ethnics” but also white Southerners back onto the right side of a class war that never ended – though it looked like it had because, in recent decades, one side, the wrong one, has been consistently getting its way.
Jimmy Carter, the best and the most underrated American President in a very long time, kept the Southern Strategy more or less at bay through the latter half of the seventies. He did it just by being a Southerner and being there.
But Carter ceded too much power to Cold War liberals like Zbigniew Brzezinski and to economists intent on reviving old nostrums that the New Deal once seemed to have laid to rest.
He even let Henry Kissinger talk him into letting the Shah of Iran into the United States for medical treatment, unleashing a chain of events that has diminished his reputation to this day.
Had Carter made peace with the Iranian Revolution, the United States and the world might have been spared Ronald Reagan; and we might not now, three and a half decades later, be facing the prospect of a war with Iran.
Carter’s instincts were decent, except when it came to deciding whose advice to trust. This cost him dearly. And, by diminishing his power, it rendered him all but useless for holding back the Republican tide in the South.
Bill Clinton, for all his efforts to come on as a Bubba to the good old boys while remaining presentable to donors in Manhattan and Beverly Hills, never made a dent in what the New Nixon got going. It wasn’t just the good old boys who saw through him, working people did too.
Hillary was not the only albatross around his neck. There was also his unctuous and transparent phoniness. It is as if he took the Eddie Haskell character on “Leave It to Beaver” for a role model.
He did indeed have Southern roots, but his heart was where the money was, and where the sleaze balls who had it congregated.
In the run up to the 2008 election, John Edwards seemed just the one to turn the Southern Strategy around — until the Obama steamroller and his own horn dog disposition did him in. Like Carter, Edwards was a bona fide Southern liberal, not a poseur like Hillary’s better half.
His strategy was to outflank Hillary from the left. Her other rivals, Joe Biden excepted, had the same idea. But Edwards could appeal to white Southerners, as they could not. In 2008, he might even have been able to do what Al Gore, eight years earlier, could not: pry away a few Southern states, along with their Electoral College votes, from the solidly Republican South.
But even had he turned out to be more like he (briefly) seemed to be, his candidacy would have been more like Elizabeth Warren’s might be, were she to run, than like Jim Webb’s.
Like Warren and Bernie Sanders and Martin O’Malley, Edwards was a zero on foreign policy and on military affairs – the areas where, even with money talking as loudly as it does, Presidents can actually make a difference.
These are Webb’s strong points. He has consistently opposed America’s Middle Eastern wars. And, knowing what war is about, he is no fan of gunboat diplomacy or military brinksmanship. He despises chicken hawks and the wars they foist on the people he cares about. In these respects, he is the true anti-Clinton.
* * *
The main thing, though, is that, contrary to what the hucksters selling Hillary seem to believe, the stars are now lining up right for moving social liberal considerations off dead-center and bringing working class issues back in.
This is because even the voters Team Hillary is targeting, functional equivalents of yesterday’s Pepsi Generation, are discovering that working class issues are their issues too.
This is happening all over the developed world.
It is more visible overseas than it is here because it is easier to gain a purchase on what voters are thinking in democracies that are less undemocratic than ours. The UK is a case in point.
There, as almost everywhere else, big money is much less a factor in determining electoral outcomes than it is in the United States, and the political culture is not quite as bent out of shape by the prevailing party system.
For this reason, Team Hillary would be well advised to take a close look at next month’s parliamentary elections.
Less than eight months ago, the Scottish National Party (SNP) suffered a significant defeat in a referendum on Scottish independence, its signature issue. Now, mainly at Labor’s expense, it is poised to become the third largest party in the British parliament.
Because neither the Conservatives nor Labor are likely to win a majority of seats in their own right, the SNP will wield tremendous influence in the next Parliament; it may even enter the government as Labor’s junior partner.
The reason for its sudden change of fortune is plain: voters are fed up with neoliberal austerity politics; and voting for the SNP is the best way to make this sentiment known.
The SNP is the most left leaning, most Social Democratic, of any of the larger political parties in Great Britain. If it were less intent on breaking up the country it may soon help govern, and if it fielded candidates throughout the entire UK, it might even be able to win outright.
There is a lesson in the SNP’s rise that has implications for the 2016 electoral season already unfolding in the United States.
In all developed countries, including our own, voters are less inclined than they used to be to think that it is acceptable, or even necessary, that only a tiny fraction of the population benefits as productive capacities expand at a dizzying rate, and while everyone else becomes, in varying degrees, worse off – the greatest burdens falling on those who are already the least well off of all.
Try as neoliberal ideologues might, it is a lot harder than it was just a few years ago to convince the general public that this is how it must be.
Voters everywhere are way ahead of the political leaders of their respective countries.
Hillary’s single moms and biracial families, and her gay couples, don’t speak to these concerns, though they are of great importance to people who fall under those descriptions and to others who do not, but care about those who do.
Even if her sales force gets her to declare support for a few Elizabeth Warren – Bernie Sanders type reforms, it will make hardly any difference; and not just because everybody knows that, were she to become President, whatever she says now will be yesterday’s lunch.
It will make hardly any difference because the realization is dawning that tinkering here and there is, at best, a palliative, not a solution. There is something rotten in the system itself, and more and more people are beginning to realize it.
No Democrat, including Webb, is likely to propose anything that would seriously address this rot.
But a Democrat can address one of the fundamental conditions of its possibility: the Democratic Party’s malign neglect of the working class and of the white, rural population in so-called “red” states, the South especially.
This is what a Webb candidacy could do. It is unlikely that anyone else with any chance at all of winning the Democratic nomination could do it nearly as well.
And it is certain that, no matter how “populist” the New Hillary’s guise, she will not – and probably cannot – do it at all.
* * *
There is a good chance that Hillary understands this, but doesn’t care – because it is the average donor, not the average citizen, that she aims to please.
That has always been the Clinton way. But the times are changing – more quickly and more profoundly than Hillary Clinton’s makeover team imagines.
The New Hillary is nevertheless likely to win the nomination and, if she does, she will win the race for the presidency, just as the New Nixon did.
She and her people ought to reflect on all the harm that came out of that; all the murder and mayhem, and all the devastation.
They might also reflect on Nixon’s fate. Theirs could be even worse.
April 24, 2015
Posted by aletho |
Deception, Economics, Militarism, Progressive Hypocrite | Democratic Party, Hillary Clinton, Richard Nixon, Scottish National Party, SNP, Social liberalism, UK, United States |
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Germany’s BND intelligence agency spied on European politicians and companies for the NSA for over a decade, Spiegel Online revealed. But an internal probe showed that at least 40,000 of those spying requests were against German and EU interests.
Over the course of 10 years, the NSA sent the BND thousands of so-called ‘selectors,’ which included IP addresses, emails, and phone numbers, Spiegel reported.
Several times a day, the BND downloaded the NSA selectors into their monitoring system and used them to spy on targets. The results were sent to the German agency’s headquarters in Pullach for evaluation, and then to some extent to the NSA, Zeit Online revealed, adding that the NSA sent about 800,000 ‘selectors’ to the BND in total.
Among the selectors were European politicians, whose names were not revealed. It was mentioned that the list included French authorities. Among the companies spied upon were the European Aeronautic Defence and Space Company (EADS) and Eurocopter.
Since at least 2008, BND employees felt that some of the selectors ran contrary to the mission profile of the intelligence agency and the goal of the German Foreign Ministry, as they were not covered by the 2002 Memorandum of Agreement between Germany and the US, aimed at combating global terrorism.
However, it wasn’t until 2013, in the midst of the Edward Snowden revelations, that an investigation into the spying activities took place. That probe revealed that 2,000 of the selectors actually violated German and Western European interests, with many used to spy on politicians. However, those revelations were not reported to the Chancellor’s Office. Instead, one of the BND’s department chiefs simply asked the NSA to stop making such requests.
But upon re-examination following parliamentary request, the BND came to the conclusion that up to 40,000 selectors were actually directed against Western European and German interests. The Chancellor’s Office was notified of the findings in March.
Chancellery Minister Peter Altmaier informed members of the parliamentary oversight committee of the latest developments on Wednesday. BND chief Gerhard Schindler was excluded from the meeting.
Konstantin von Notz, deputy parliamentary leaders of the Greens, told Leipziger Volkszeitung newspaper that he found it “hard to imagine” that the Chancellor’s Office was unaware of the collaboration between the two spy agencies.
“The limit has now been exceeded. The chancellor must explain the situation,” he added.
Left Party leader Gregor Gysi has called the collaboration a “scandal” and demanded an end to “conformism with the US administration,” Deutsche Welle reported.
April 23, 2015
Posted by aletho |
Corruption, Deception, Economics | BND, Germany, National Security Agency, Scandal, USA |
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The US reportedly expects that the ongoing confrontation with Russia would continue until at least 2024 and involve many directions. Washington wants to rally support of its European allies to continue mounting pressure on Moscow.
The expected diplomatic and economic war of attrition is being outlined in a Russia policy review currently prepared by Celeste Wallander, special assistant to President Barack Obama and senior director for Russia and Eurasia on the National Security Council, reports Italian newspaper La Stampa. The publication said it learned details of the upcoming policy change from a preview that Washington sent to the Italian government to coordinate the future effort.
US diplomats say Russia changed the cooperative stance it assumed after the collapse of the Soviet Union and is now using force to defend its national interests, the paper said. The change is attributed to the personality of Russian President Vladimir Putin, who, Washington expects, will remain in power until at least 2024.
The change became apparent with the conflict in Ukraine, but was emerging since at least the 2008 conflict in South Ossetia, when Russia used military force after Georgia sent its army to subdue the rebellious region, killing Russian peacekeepers in the process.
Washington’s solution to the new Russia is keeping sanctions pressure on it while luring its neighbors away with economic aid and investment, La Stampa said. The current round of sanctions, it reports, was designed not to have too much impact on the Russian economy so that a threat of harsher sanctions could be applied.
While the tug of war in Europe continues into the next decade, Washington wants to continue cooperation with Russia in other areas like nuclear non-proliferation and space exploration. However until Putin is out of the picture, the US does not expect for things to go back to where they were, the newspaper said.
The strategy was hardly unnoticed in Moscow, as evidenced by the annual report of the Russian Foreign Ministry published on Wednesday. The document said the US is pursuing “a systematic obstruction to Russia, rallying its allies with the goal to damage domestic economy” through blocking credits, technology transfer and an overall destabilization of the business environment.
The ministry said Washington had some success with the policy that resulted in an almost 8 percent drop of Russia’s trade with EU members in 2014. However some European countries like Austria, Hungary or Slovakia are pragmatically keeping bilateral ties with Russia active. In European heavyweight Germany, whose government is among the leading supporters of the anti-Russian sanctions, there is a strong business resistance to keeping them.
Non-EU members in the region like Serbia and Turkey are among priority partners for Russia in the current environment, the ministry added.
April 22, 2015
Posted by aletho |
Economics | Russia, Sanctions, USA |
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There is a lot of public debate around the rates utilities charge solar customers, but very little of it shows an awareness of the embedded technical and philosophical issues.
This posting will seek to provide a general context to help sort out issues in that ongoing debate. It will focus on transmission for simplicity’s sake, but the concepts can be extended to generation as well.
Part of the problem is that people associate rates with costs. Rates are crude ways to collect costs that work out on average. Early innovators can often take advantage of rate structures to get more than they pay for. But as usage patterns change and as more consumers “game” the system – rates need to be refined and adjusted. For example, for many years many systems did well charging residential customers just a flat energy rate. Based on the average use of their customers over the year they were able to collect their fixed cost and variable costs. However, for example, some areas saw increasing numbers of summer cottages that used only limited amounts of energy. Charging for their limited usage did not accrue enough to cover the fixed cost for providing the meter, the line and their usage. Some utilities corrected by adding a fixed monthly charge. People get irate when they have to pay something they did not before. They rarely realize that perhaps before they were getting below cost service and that as rate structures are exploited they need to change.
Traditionally the costs of transmission service were collected from consumers through their electric energy usage charges. For homes with behind the meter solar the price of the transmission cost can’t effectively be distributed for them across regular usage hours. While transmission costs are driven by peak demand periods, it would be extremely cumbersome and costly to individually monitor and bill residences for their contribution to transmission costs. Rate methods are devised to get approximate appropriate charges from individual customers, but these rate methods need to keep up with changes in how customers use (and “game”) the system.
Customers with their own generation are receiving a different service from the utility than traditional customers and traditional cost structures will not work for them. They are benefiting from back up service that will not be paid for by their use under existing rates in most cases. Extra costs are incurred to provide backup service to residential solar customers from the grid. Utilities can’t collect transmission expenses from them that are spread out across hourly energy costs. To recoup the costs associated with backup, utilities either can have a general charge for backup, charge backup customers’ extremely high costs when it is needed or subsidize them by charging rates designed for higher usage customers. The subsidized approach was acceptable when roof top solar made up a small portion of the customer base. The inequity could be ignored because supporting fledgling renewables did not cost other customers much and was seen as desirable or not worth the trouble to fix. This approach will cause problems with higher penetrations of intermittent renewables.
A digression
To get away from the emotion generated by consideration of renewables here is a short discussion of potential philosophies around cost sharing.
Imagine you are having a contractor do some work in your backyard for a cost of $8,000. You learn that your neighbor is planning a similar smaller project that will cost him $4,000. You talk to your contractor and he can combine both jobs and do it for $10,000. There are multiple ways that the $2,000 savings could be apportioned.
Business Model: You go to your neighbor with an offer that competes with his. Perhaps because you are overseeing all the work, he would prefer to have you do it for $4,000 or perhaps you have to lower the price some to be competitive. But basically you seek to use your capabilities to meet your neighbor’s need and offer him some small benefit, so you can maximally offset your costs.
Subsidy Model: Perhaps you decide to treat your neighbor. If you decide to pay more than $8,000 for the combined project you are subsidizing your neighbor. He could see anywhere from a $2,000 to $4,000 benefit from the combined project from this approach. There likely needs to be some other motivating factor to make you accept this arrangement.
Incremental Cost Model: You pay the $8,000 for your share and charge the neighbor the $2,000 increment. The neighbor gets his project at half of what his cost would be otherwise, as the entire $2,000 saving goes to benefit him. You’ve done your neighbor a favor, but received no benefit.
Shared Savings Model: You and your neighbor each reduce your cost by $1,000 or perhaps you each reduce your cost by 20%. This provides benefits to both parties and encourages cooperation from both sides.
None of the above models are generically right or wrong, but may be more or less applicable in various situations.
Hypothetical renewable example
Imagine a system with a level of solar roof penetration such that the transmission system would cost $10 billion for combined service to traditional and solar rooftop customers. If the system only served traditional customers it would cost $8 billion. A system to serve just the solar rooftop customers would cost $4 billion. Let’s look at the models introduced above in the context of this example.
Business Model: the utility would seek to get as close as possible to $4 billion from the solar customers to provide benefits to their traditional customers. I don’t believe anything approximating such an arrangement has or would occur in the electric utility industry. Such a model would cripple the potential for most self-generating customers who require grid back up as they do not have other feasible alternatives.
Subsidy Model: The traditional full service customers could be responsible for most of the costs. This is the model which dominates the utility industry today. At small penetration levels the costs are not large for the traditional customers, but as costs increase they can get very burdensome increasing the risk of a death spiral. A death spiral would occur if rising costs to traditional customers cause defections to solar customers and the reduced customer base has to continue subsidizing the growing base of solar customers.
Incremental Cost Model: Here the traditional customers are held neutral and the solar customer reaps all the benefits of the combined system. This is a controversial model today because it makes it very difficult to justify solar programs in many areas.
Shared Savings Model: For those familiar with cost accounting, charging renewable customers their fully allocated costs would be one way of doing this. I don’t know anywhere that this approach is currently being seriously and successfully advocated in cost of service studies for renewables, though it is generally common for other classes of service. (I welcome reader input and enlightenment here.) It would greatly reduce the risk of a death spiral but it would also greatly delay the implementation of renewable resources until such time as they were more cost competitive.
Discussion
History, inertia and the desire to support renewables have resulted in significant support for the idea that traditional customers should subsidize renewable customers. Perhaps this is coupled with the idea that traditional customers should be punished while renewable customers should be rewarded. Many of the battles around charges to solar customers are just over what the appropriate degree of the subsidy should be. Moving away from the subsidy model engenders great conflict. I have not read all the details, but I believe the Salt River Project’s controversial pricing plan is just trying to recoup the incremental costs of serving rooftop solar. (Perhaps they are asking for some help with shared/common costs. Any help readers?) In the press Salt River Project has been accused of “penalizing” solar customers, being anti-competitive, sabotaging their customer’s right to choose and far worse.
We need to move the public debate so that it is not just about the level of subsidy utilities should provide to solar. The subsidy model nearly guarantees that if the system transitions to high levels of local renewables there will be a major death spiral collapse as the traditional customer base erodes and the subsidized population increases. While some envision utilities as highly profitable entities with deep pockets that can well afford massive subsidies, in fact, the subsidies come from the ratepayers. Whether utilities pay for their system through money collected from their traditional customers or backup customers, their profits are in the hands of their public service commissions. Unlike the utilities, which will make money if they work with their regulators, ratepayers will be materially impacted by the cost sharing model selected. Indirect taxes placed upon electric utility ratepayers are terribly regressive and in the area of rooftop solar they result in significant wealth transfers from the less affluent to the more affluent.
Renewable subsidies disproportionately impact the poor, impacting their quality of life. To avoid these effects traditional customers should pay no more than incremental costs. If as a society we want to offer subsidies to rooftop solar we should consider funding it through a less regressive and punishing approach. That source will likely be less convenient to target but far more appropriate.
Aside from the appeals to fairness for ratepayers, the other models have further benefits. They send appropriate price signals to encourage more rational choices. They could help provide better flexibility for a transition to a renewable future that avoids price collapses and is open and potentially better able to serve newer and better “clean” energy alternatives.
April 21, 2015
Posted by aletho |
Economics, Environmentalism | Solar energy, United States |
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