Even as Pentagon officials complain that budget cuts threaten to hollow out its ranks and degrade its military capabilities, they have been able to find money for new sun rooms, a museum, golf course netting and other “questionable projects,” according to a Senate Armed Services Committee report released last week.
The report focuses on the military’s $10 billion-a-year overseas construction efforts, about 70% of which is spent in just three countries with a large U.S. troop presence: Japan, South Korea, and Germany. According to the report, much of this spending occurs with little oversight, sometimes in violation of military regulations and Pentagon promises to Congress.
The specific boondoggles include addition of sun rooms to housing for senior officers in Stuttgart, Germany; a $10 million museum in South Korea praising the U.S. Army; and $2.9 million worth of netting around an Army golf course at Camp Zama, Japan.
Perhaps more disturbing than the amounts involved is the surreptitious manner in which the Pentagon spent the money and kept Congress and the public in the dark. The U.S. is withdrawing or relocating troops in all three countries, and as the military relinquishes various facilities to the host countries, they are expected to pay the U.S. for the returned properties. However, a little-known rule lets local American commanders waive these payments in return for work of an equivalent value performed by the host country—without approval from Congress or even the Pentagon itself. Each of the most questionable expenses—the sun rooms in Germany, the pro-Army museum in South Korea and the golf netting in Japan—was financed this way.
“When the Pentagon and the entire federal government face enormous fiscal challenges, the questionable projects and lack of oversight identified in this review are simply unacceptable,” said Sen. Carl Levin (D-Michigan), the committee chairman.
“We are aware of the report, and we take it very seriously,” said Air Force Maj. Robert Firman, a Department of Defense spokesman. “The DOD strives to be a good steward of taxpayer resources and we look forward to discussing it with Congress in the near future.”
April 22, 2013
Posted by aletho |
Corruption, Economics, Militarism | Camp Zama, Germany, Japan, South Korea, Stuttgart, United States Department of Defense |
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At a Press Conference with his Russian counterpart Vladimir Putin, Egypt´s President Mohammed Morsi stated, that Egypt was committed to finding a peaceful and legal solution to the crisis in Syria. Today, the official Egyptian State Information Service states, that Egypt has said no to a loan from the International Monetary Fond, IMF, because the IMF´s conditions were unacceptable. Earlier this year, prior to a state visit in India, Morsi pronounced that Egypt has aspirations for joining the BRICS.
Since the discontinuation of the Soviet Union, the bilateral relations between Cairo and Moscow have slowly degraded. The main talking points on the agenda at the talks between Morsi and Putin were the revival of trade, commerce and economic cooperation between the two countries as well as the instability that has swept over Northern Africa and the Middle East since 2011.
Earlier this year, prior to a planned state visit to India, Morsi stated, that Egypt has aspirations of becoming a member of the BRICS, leading to speculations, whether Egypt is planning to assume a similar role as it had during the 1950s and 1960s, where the country walked a tightrope between alignment with Moscow and Washington. As a member of the non-aligned movement, Egypt may very well try to reassert its role as a regional power broker.
A closer alignment of Egypt with Moscow would make the country less dependent on US foreign policy and could, at least to a certain degree, counter the strong influence the USA is asserting over the Arab League through Qatar.
The little Gulf Kingdom has since 2007 grown into a veritable regional political superpower, which has stood and is standing behind many of the sweeping changes which have cast northern Africa and the Middle East into turmoil since 2011. Qatar and the USA are the primary powers behind the attempted subversion of Syria.
The question one may ask is, whether Morsi´s statement, that Egypt is committed to finding a peaceful and legal solution to the crisis in Syria is indicative of a more self-confident Egypt, and an Egyptian president who is aware of the fact that an alignment with the USA and Qatar, without playing the Moscow card, makes him as easily disposable as his predecessor Hosni Mubarak.
There are also other signs which indicate that Morsi may be trying to reassert Egypt´s role as regional power and greater independence from Washington. Morsi´s ambitions to have Egypt become the “E” in something that could become the BRICS+E was one indication. Prior to his visit to India, Morsi also stated, that Egypt is planning to increase its relations with eastern and Asian countries.
Today´s rejection of the IMF´s loan, following talks with the Russian President in Sochi, are lending additional credibility to those who are arguing for an Egyptian realignment to the middle, and the recent signals from the BRICS, that it will create a BRICS development bank, are indicative that Morsi may have substance behind the possible dream of a course change.
Asked about the reasons for turning down the IMF, Mosi said, “We seek to carry out clear changes in the government´s economic program to receive the loan and we are keen on the interests of the Egyptian citizens”. On of the greatest points of critique against Morsi, other than oppression of his political opponents were, that Morsi “already sold out Egypt and its people to the IMF and World Bank, before he even was elected”. With backup from Russia and the other BRICS members however, Morsi would be less dependent on Washington´s and the IMF´s economic dictates. With the World Bank and IMF systems, as some analysts have it, close to exploding into an international scandal which could spell the beginning of the end of the Bretton Woods gentleman´s agreement, Morsi may be making a very wise decision.
Morsi showed true statesmanship when he said, that he is “seeking real investments in Egypt” and that “loans don´t solve problems and are just temporary solutions”. During his interview with Al-Jazeera Morsi also reiterated the importance of maintaining the integrity of Egyptian territory, stating, that “Egypt´s lands are not for sale and are prohibited for non-Egyptians”.
While increased Egyptian self-confidence and increased assertiveness in the Arab League as well as Egypt´s possible influence for finding a political solution to the crisis in Syria may be plausible and welcome, he may still have to tackle internal problems. Consolidating the continuity and stability of the Egyptian government in times of sudden and comprehensive unrest and change may have made sweeping power grabs a tempting solution. As a long-term strategy however, a semi-dictatorial, Muslim Brotherhood influenced Egyptian government is as counter productive to the stability of Egypt´s society and government, as loans are counterproductive as a long-term strategy for economic growth.
During an interview with Al-Jazeera, Morsi also stressed that Egypt is maintaining good relations with Iran and that Egypt´s relations with Iran are not directed against anyone. Morsi reiterated, the importance of Iran´s role with regard to finding a peaceful resolution to the crisis in Syria.
The renewed ties between Cairo and Moscow may also indicate that Russia is planning to play a more active role throughout the Middle East, and that the Russian government is planning to reassert some of the influence Moscow has lost in the region during the last years of the Soviet era and the early 1990s.
A Russian fleet, composed of the anti-submarine destroyer Admiral Panteleyev and the two logistic warships Peresvet and Novelskoy, with a total number of 712 crew have entered the Iranian Army´s first naval zone in Bandar Abbas.
The three vessel´s visit is aiming at consolidating the relations between Iran and Russia and the expansion of interactions between the two countries in the field of naval security. The three Russian warships have left their home port Vladivostok for duty in the world oceans and are visiting Bandar Abbas en route to their operational destinations. The Russian Ministry of Defense has announced, that Russia has begun forming a separate Mediterranean squadron.
The visit of Egypt´s President Morsi to Sochi and the talks with Russian President Putin, Egypt´s interest in joining the BRICS, the rejection of the IMF loan, Morsi´s commitment to finding a peaceful solution to the crisis in Syria while stressing the importance of Iran´s role as part of the solution, and Russian commitment to a stronger naval presence in the Mediterranean indicate that Egypt could be playing a key role in limiting the current US Middle East and Northern Africa Pivot. The rejection of the IMF loan and indications to more commitment to democracy could indicate, that Russian influence also has inspired the Muslim Brotherhood led government to bring its own house in order while considering to assume a greater regional role.
April 21, 2013
Posted by aletho |
Economics, Timeless or most popular | BRICS, Egypt, Middle East, Morsi, Russia, Syria, Vladimir Putin |
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The NYT has difficulty finding pundits who can write knowledgeably about economics. Thomas Friedman made this point in his Sunday column. At one point he quotes Gary Green, the president of Forsyth Technical Community College, in Winston-Salem, N.C.:
“‘We have a labor surplus in this country and a labor shortage at the same time,’ Green explained to me. Workers in North Carolina, particularly in textiles and furniture, who lost jobs either to outsourcing or the recession in 2008, often ‘do not have the skills required to get a new job today’ in the biotech, health care and manufacturing centers that are opening in the state.
“If before, he added, ‘you just needed a high school shop class or a short postsecondary certificate to work in a factory, now you need an associate degree in machining,’ a two-year program that requires higher math, I.T. and systems skills. In addition, some employers are now demanding that you not only have an associate degree but that nationally recognized skill certifications be incorporated into the curriculum to show that you have mastered the skills they want, like computer-integrated machining.”
Actually there are simple ways to identify labor shortages. First and foremost we should be seeing rapidly rising wages. If employers cannot get the workers they need then they raise the wages they offer to pull workers away from other employers. This is how markets work. (We should also see longer workweeks and increased vacancies.)
In fact there is no major sector of the economy where wages are rising rapidly. This shows rather conclusively that workers do not have skill shortages although it may be the case that many managers are so ignorant of markets that they don’t know that the way to attract better workers is to raise wages. Of course that would suggest the need to better train managers, not workers.
At one point the piece tells readers;
“We need to reform Social Security and Medicare so they can support all the baby boomers about to retire. ….
“As Bloomberg News reported on Monday: ‘Typical wage-earners retiring in 2010 will receive at least $3 for every $1 they contributed to the Medicare health-insurance program, according to an Urban Institute study.’ That’s unsustainable.”
It would have been helpful if Freidman had also mentioned that the same Urban Institute study shows workers already paying slightly more into Social Security than they get back. Yet Friedman wants to cut benefits.
The main reason that the Medicare benefits workers receive are more than they pay in taxes is we pay more than twice as much per person as people in other wealthy countries for our health care. This is due to the fact that we pay close to twice as much for our doctors, drugs, and medical equipment. It is not due to the fact that we get better care. This might suggest the need to reduce payments to health care providers rather than cut Medicare. Of course health care providers are a powerful lobby that Friedman apparently does not want to anger.
April 21, 2013
Posted by aletho |
Deception, Economics, Mainstream Media, Warmongering | Friedman, Medicare, New York Times, Thomas Friedman, United States |
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South Africa has lashed out at the United States and European Union for imposing oil sanctions on Iran over its nuclear energy program without first consulting major importers of the Iranian energy supplies.
South Africa’s Energy Minister Elizabeth Dipuo Peters, who is in India to attend the Clean Energy Ministerial (CEM) meeting, said that such decisions have geopolitical implications and mostly affect “the poorest of the poor” that are in dire need of energy supplies and have no alternative.
“When decisions are made at bilateral or unilateral levels that have serious geopolitical consequences, we need to engage seriously,” Peters said.
“When we had to look for crude of the kind we got from Iran, it came at a premium,” she added.
“It has a multiple knock-on effect, especially on the poorest. When these decisions are taken, they must always consider the impact and consequences of their decisions at the geopolitical level. Or at least involve other countries so that when the decision is made they can say South Africa is taking it consciously. They have calculated the impact on them but not on others,” the South African minister said.
At the beginning of 2012, the US and EU imposed new sanctions on Iran’s oil and financial sectors with the goal of preventing other countries from purchasing Iranian oil and conducting transactions with the Central Bank of Iran.
On October 15, 2012, the EU foreign ministers reached an agreement on another round of sanctions against Iran.
The sanctions have been imposed on Iran over the groundless charges of a potential military diversion in Iran’s nuclear energy program.
Iran rejects the unfounded allegations over its nuclear energy program, arguing that as a committed signatory to the Non-Proliferation Treaty (NPT) and a member of the International Atomic Energy Agency (IAEA), it has the right to use nuclear technology for peaceful purposes.
Peters said that that the petroleum industry is a victim of financial sanctions, which include US sanctions on dollar-denominated trading and EU sanctions on insurance for shipping companies.
She emphasized that the US 18-month exemption for Iran oil sanctions had not benefited South Africa because the EU has refused to grant waivers.
On December 8, 2012, the US added China, India, South Korea, Malaysia, Singapore, South Africa, Sri Lanka, Turkey, and Taiwan to the list of countries exempted from the sanctions for another six months.
April 19, 2013
Posted by aletho |
Economics, Wars for Israel | European Union, Iran, Press TV, Sanctions against Iran, South Africa, United States |
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According to a report just released by the highly-respected Stockholm International Peace Research Institute (SIPRI), world military expenditures in 2012 totaled $1.75 trillion.
The report revealed that, as in recent decades, the world’s biggest military spender by far was the US government, whose expenditures for war and preparations for war amounted to $682 billion — 39 percent of the global total.
The United States spent more than four times as much on the military as China (the number two big spender) and more than seven times as much as Russia (which ranked third). Although the military expenditures of the United States dipped a bit in 2012, largely thanks to the withdrawal of U.S. troops from Afghanistan, they remained 69 percent higher than in 2001.
US military supremacy is even more evident when the U.S. military alliance system is brought into the picture, for the United States and its allies accounted for the vast bulk of world military spending in 2012. NATO members alone spent a trillion dollars on the military.
Thus, although studies have found that the United States ranks 17th among nations in education, 26th in infant mortality, and 37th in life expectancy and overall health, there is no doubt that it ranks first when it comes to war.
This Number 1 status might not carry much weight among Americans scavenging for food in garbage dumpsters, among Americans unable to afford medical care, or among Americans shivering in poorly heated homes. Even many Americans in the more comfortable middle class might be more concerned with how they are going to afford the skyrocketing costs of a college education, how they can get by with fewer teachers, firefighters, and police in their communities, and how their hospitals, parks, roads, bridges, and other public facilities can be maintained.
Of course, there is a direct connection between the massive level of US military spending and belt-tightening austerity at home: most federal discretionary spending goes for war.
The Lockheed Martin Corporation’s new F-35 joint strike fighter plane provides a good example of the US government’s warped priorities. It is estimated that this military weapons system will cost the US government $1.5 trillion by the time of its completion. Does this Cold War-style warplane, designed for fighting enemies the US government no longer faces, represent a good investment for Americans? After twelve years of production, costing $396 billion, the F-35 has exhibited numerous design and engineering flaws, has been grounded twice, and has never been flown in combat. Given the immense military advantage the United States already has over all other nations in the world, is this most expensive weapons system in world history really necessary? And aren’t there other, better things that Americans could be doing with their money?
Of course, the same is true for other countries. Is there really any justification for the nations of Asia, Africa, the Middle East, and Latin America to be increasing their level of military spending — as they did in 2012 — while millions of their people live in dire poverty? Projections indicate that, by 2015, about a billion people around the world will be living on an income of about $1.25 per day. When, in desperation, they riot for bread, will the government officials of these nations, echoing Marie Antoinette, suggest that they eat the new warplanes and missiles?
President Dwight Eisenhower put it well in an address before the American Society of Newspaper Editors 60 years ago:
Every gun that is made, every warship launched, every rocket fired signifies in the final sense a theft from those who hunger and are not fed, those who are cold and are not clothed. . . . This world in arms is not spending money alone; it is spending the sweat of its laborers, the genius of its scientists, the hopes of its children. . . . This is not a way of life at all in any true sense. Under the clouds of threatening war, it is humanity hanging from a cross of iron.
That sentiment persists. On April 15, 2013, people in 43 countries participated in a Global Day of Action on Military Spending, designed to call attention to the squandering of the world’s resources on war. Among these countries was the United States, where polls show that 58 percent of Americans favor major reductions in US military spending.
How long will it take the governments of the United States and of other nations to catch up with them?
April 18, 2013
Posted by aletho |
Economics, Militarism | Federal government of the United States, Global Day of Action on Military Spending, Stockholm International Peace Research Institute, United States, World military spending |
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The Canadian International Development Agency is no longer. In its recent budget the Conservative government collapsed CIDA into Foreign Affairs, creating the Department of Foreign Affairs, Trade and Development.
While there was plenty of commentary on the Tories’ move, no one — from the mainstream right to the development NGO left — pointed out that Canadian aid has primarily been about maintaining and/or extending the grip the world’s richest one percent holds over the entire globe.
Canada began its first significant (non-European) allocation of foreign aid through the Colombo Plan. With Mao’s triumph in China in 1949, the 1950 Colombo Plan’s primary aim was to keep the former British Asian colonies, especially India, within the Western capitalist fold.
To justify an initial $25 million ($250 million in today’s dollars) in Colombo Plan aid External Affairs Minister Lester Pearson told the House of Commons:
Communist expansionism may now spill over into South East Asia as well as into the Middle East … it seemed to all of us at the [Colombo] conference that if the tide of totalitarian expansionism should flow over this general area, … the Free World will have been driven off all but a relatively small bit of the great Eurasian landmass. … We agreed at Colombo that the forces of totalitarian expansionism could not be stopped in South Asia and South East Asia by military force alone.
Two years later Prime Minister Louis St. Laurent was even more explicit about the carrot and stick approach to defeating left wing nationalism (“communism”). In September 1952 St. Laurent explained:
In South East Asia through the establishment of the Colombo plan not only are we trying to provide wider commercial relations but we are also fighting another Asiatic war against Communism in the interests of peace, this time with economic rather than military weapons. We Canadians know that in the struggle against Communism there are two useful weapons, the economic and the military. While we much prefer to use the economic weapons as we are in the Colombo plan, we know that we may have no choice but to use the military weapons as we have been forced to do in Korea [27 000 Canadian troops participated in this war that left 3 million dead].
In other words, if some of India’s post-colonial population had not set their sights on a socialistic solution to their troubles — with the possibility of Soviet or Chinese assistance — Canada probably would not have provided aid. Five years into the Colombo Plan, Pearson admitted “Canada would not have started giving aid if not for the perceived communist threat.”
The broad rationale for extending foreign aid was laid out at a 1968 seminar for the newly established Canadian International Development Agency. This day-long event was devoted to discussing a paper titled “Canada’s Purpose in Extending Foreign Assistance” written by Professor Steven Triantas of the University of Toronto. Foreign aid, Triantas argued, “may be used to induce the underdeveloped countries to accept the international status quo or change it in our favour.” Aid provided an opportunity “to lead them to rational political and economic developments and a better understanding of our interests and problems of mutual concern.” Triantis discussed the appeal of a “‘Sunday School mentality’ which ‘appears’ noble and unselfish and can serve in pushing into the background other motives … [that] might be difficult to discuss publicly.”
A 1969 CIDA background paper, expanding on Triantas views, summarized the rationale for Canadian aid:
To establish within recipient countries those political attitudes or commitments, military alliances or military bases that would assist Canada or Canada’s western allies to maintain a reasonably stable and secure international political system. Through this objective, Canada’s aid programs would serve not only to help increase Canada’s influence within the developing world, but also within the western alliance.
This type of thinking continues to drive aid policy. Largely ignored in recent commentary, there are innumerable documented instances of Canadian aid advancing highly politicized geopolitical objectives over the past 25 years.
As an early advocate of International Monetary Fund/World Bank structural adjustment programs, since the early 1980s Canada has channeled hundreds of millions in “aid” dollars to supporting privatization and economic liberalization efforts in the Global South. At the start of the 2000s Ottawa plowed millions of dollars into supporting the Western-backed “coloured revolutions” in Eastern Europe and opposition to Jean Bertrand Aristide’s elected government in Haiti. More recently, the Conservatives have ramped up aid spending in Latin America to combat independent-minded, socialist-oriented governments. Barely discussed in the media, the Harper government’s shift of aid from Africa to Latin America was largely designed to stunt Latin America’s recent rejection of neoliberalism and U.S. dependence by supporting the region’s right-wing governments and movements.
An entirely unacknowledged, though increasingly obvious, principle of Canadian aid is that where the USA wields its big stick, Canada carries its police baton and offers a carrot. Or to put it more bluntly, where U.S. and Canadian troops kill Ottawa provides aid.
During the 1950-53 Korean War the south of that country became a major recipient of Canadian aid and so was Vietnam during the U.S. war there. The leading recipient of Canadian aid in 1999/2000 was the war-ravaged former Yugoslavia and Iraq and Afghanistan were top two recipients in 2003/2004. Since that time Afghanistan and Haiti (where Canadian and U.S. troops helped overthrow the elected government in February 2004) have been the leading recipients. Tens of millions in Canadian “aid” dollars have been spent to reestablish foreign and elite control over Haiti’s security forces.
There are a number of reasons for the lack of discussion about aid being used as a tool to maintain/extend Western capitalist dominance. NGO critics of aid policy are generally unwilling to point out the geopolitical underpinnings of Canadian aid because their jobs depend on keeping quiet. They stick to criticizing the ways in which foreign assistance is used to benefit specific corporate interests. This stakeholder criticism generally amounts to no more than NGOs saying: “Give the aid money to us not the corporations, because we’ll do a better job of whatever it is you want to accomplish.”
If you tell truth to power by saying Canadian aid is largely designed to maintain Western capitalist dominance of the Global South, you’re not likely to have your grant renewed.
The funny thing is, with the Conservatives in power, if you’re doing anything remotely useful to ordinary people, you’re not likely to anyway.
Yves Engler is the author of Lester Pearson’s Peacekeeping: The Truth May Hurt. His latest book is The Ugly Canadian: Stephen Harper’s foreign policy.
April 18, 2013
Posted by aletho |
Deception, Economics | Aid, Canada, Canadian International Development Agency, Colombo Plan, Jean Bertrand Aristide, Non-governmental organization |
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More than two dozen workers have been injured in a dispute over unpaid salaries in southern Greece when their supervisor shot them, police reports.
The incident took place on Wednesday near the village of Manolada, about 260 kilometers (160 miles) west of the capital, Athens.
Police Captain Haralambos Sfetsos said the shooting occurred after at least one of three foremen opened fired on a crowd of about 200 migrant strawberry pickers, who demanded six months’ back pay.
Thirty workers most of them from Bangladesh were wounded in the shooting. Eight of those hurt are in serious condition in hospital.
The owner of the farm, who was not present at the time of the incident, has been taken into custody for questioning while arrest warrants have been issued for the three foremen, who are all Greek.
On March 16, the Council of Europe’s commissioner for human rights rapped Greece for not having tough measures to combat a surge in racist violence in the country.
The Manolada area has reportedly been at the center of several cases involving violence against migrant workers in recent years.
In 2012, two Greek men were arrested for beating an Egyptian worker, ramming his head in a car window and dragging him for about one kilometer.
Migrants on farms in the area went on a four-day strike in 2008 to protest salaries as low as five euros a day and unsanitary living conditions.
April 18, 2013
Posted by aletho |
Economics, Subjugation - Torture | European Union, Greece, Human rights, Migrant worker |
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The US Defense Department plans to spend nearly 400 million dollars during the next two years on Israel’s Iron Dome missile system, despite budget cuts affecting the lives of many Americans.
Bloomberg reported on Tuesday that the Pentagon intends to allocate $220 million for the Israeli missile batteries in fiscal year 2014, which starts on October 1.
Washington also plans to spend $175.9 million in 2015.
If the budget is approved during the annual defense budget process, it will be added to the $486 million that Washington has already spent on the Israeli regime’s Iron Dome missile system during the past few years.
Meanwhile, US Defense Secretary Chuck Hagel is planning to travel to Israel in a few days.
“Our interests are very clear and common,” Hagel said at a US House hearing on Tuesday, adding, “I think the Israelis know that.”
The Israeli regime receives more than three billion dollars from the United States in direct foreign assistance every year.
Hagel recently reassured Tel Aviv that Washington would continue funding Israel’s costly Iron Dome.
On March 5, Hagel held a meeting with then Israeli Minister for Military Affairs Ehud Barak at the Pentagon, during which he voiced Washington’s “strong commitment” to backing funding for the Iron Dome, despite fiscal uncertainty for the US administration.
April 17, 2013
Posted by aletho |
Economics, Ethnic Cleansing, Racism, Zionism, Militarism, Progressive Hypocrite | Iron Dome, Israel, United States, Zionism |
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American hospitals are financially discouraged from properly caring for their patients because, as a new study reveals, surgical complications and extra medical care result in higher profits generated from insurance companies.
The study’s results were published Tuesday in The Journal of the American Medical Association. In an editorial accompanying the findings, the authors recommended changing the American payment structure to put an end to a system that rewards hospitals that provide poor care.
Without such reforms, hospitals need to look no further than their bottom line to see that there’s no incentive to improve.
“It’s been known that hospitals are not rewarded for quality,” said study author and Harvard School of Public Health director Atul Gawande. “But it hadn’t been recognized exactly how much more money they make when harm is done.
“We found clear evidence that reducing harm and improving quality is perversely penalized in our current health care system,” said study author Sunil Eappen, who serves as the chief medical officer of the Massachusetts Eye and Ear Infirmary. Other authors hailed from the Boston Consulting Group, Harvard University School of Medicine, and the nonprofit Texas Health Resources.
It’s estimated that Americans and their insurance providers or government benefit programs spend $400 billion on surgery annually. Privately insured patients with surgery complications net hospitals 330 per cent more profit than privately insured patients who have a successful surgery. Elderly and disabled patients under a government Medicare plan provide hospitals with 190 per cent higher profit when their surgeries go wrong.
“If you personalize this and a relative is having a heart surgery, which gets complicated by pneumonia, I don’t think we would want a hospital’s profit to go up as a result of that pneumonia,” study co-author Barry Rosenberg, a partner in Boston Consulting Group’s health care practice, told the Washington Post.
The results highlight the longstanding problem with the American health care system’s for-profit foundation, which pays doctors for every service they provide – even if it’s done wrong.
“We have never seen hospitals that are actively trying to cause complications to make a profit,” said Gawande. “But we’ve seen a lot of hospitals where you say, ‘Why aren’t you investing in reducing risk, the way other industries do?’”
The results are based on the analysis of the records of 34,256 patients who had surgery in 2010 at one of 12 hospitals. Of that total, 1,820 people left surgery with one or more preventable complication including pneumonia, blood clots or infected incisions. The median stay of those patients would then quadruple to 14 days – whereupon insurers would average an additional $30,500.
“This is a clear indication that health care payment reform is necessary,” Gawande said. “Hospitals should gain, not lose, financially from reducing harm.”
April 17, 2013
Posted by aletho |
Corruption, Economics, Timeless or most popular | Health care in the United States, United States |
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Eyebrows have been raised around the world to see Brits in their thousands dancing through the night in spontaneous street parties following the death of 1980s Prime Minister ‘Iron Lady’ Margaret Thatcher.
As the nickname suggests, she had a fearsome reputation round the world for hitting hard for Britain, but at home it was a different story. In the industrial North most knew several families who lost their livelihood on her watch. Londoners saw ominous shifting sands, homeless youngsters begging on the streets whom her regime had turned it’s back on.
The taboo not a single commentator has broached though is the shadowy ‘advisory’ role played throughout her premiership by European banking fraternity’s Labour peer Lord Victor Rothschild. He was revealed in the book the Thatcher government tried to suppress, Peter Wright’s Spycatcher, to be behind London’s top secret service appointments. In 1986 Rothschild penned ‘Paying for Local Government’ the policy paper that led to the notorious Poll Tax that fell hardest on the poorest, and which brought Britons onto the streets of London in their hundreds of thousands in 1990, riots echoing London’s Poll Tax revolt of 1381.
And according to the then BBC Chairman Marmaduke Hussey, Lord Victor also initiated the sacking in 1987 of the last independent-minded Director General of the BBC, a castration from which the corporation never quite recovered.
One word captures the essence of the Thatcher legacy; ‘privatisation’. As an exasperated former Tory Prime Minster Harold Macmillan put it “she’s selling off the family silver!”. And so tens of mind-boggling billions of pounds of silver were auctioned off to the highest bidders, mostly to Rothschild’s kith and kin. From shipyards and public housing to telephones, steel, oil, gas and water, anyone in the world was free to own the infrastructure and manufacturing heart of Britain that was once collectively ‘ours’.
Was this to pay the USA Lend-Lease second world war debts? To repay Britain’s humiliating 1976 IMF loan? Or simply to fill the hole left in the national accounts after Thatcher dropped income tax on Britain’s richest by more than half from 83% to 40%? Or was it just daylight robbery? When she refused to join the EMU, the forerunner to the vice-like Euro, she was promptly knifed in the back by those who sing her praises today.
Since Thatcher, City institutions have bought up much of our politics and mass media, leaving a post-industrial wasteland ‘museum’ of a nation where the Joseph Rowntree Foundation recently estimated six-and-a-half million British adults are being cruelly blamed, punished and made destitute for ‘not wanting’ full-time jobs, that don’t exist.
Today the cracks that Margaret and Victor’s turbo-charged crowbar opened up have become a chasm which is reawakening this nation’s anger at injustice. The £10 million of taxpayers money being spent on Lady Thatcher’s state funeral, by the millionaires for the millionaires, is rubbing salt in the wounds. Hundreds of thousands of Britons who know right from wrong will turn away and raise a solemn glass to the damnation of Margaret Thatcher and her ‘rehabilitation of greed’ this week, demanding better. The sleeping giant of the British public is rousing from its slumber.
As millionaire Prime Minister David Cameron reads the Christian eulogy at Lady Thatcher’s lavish funeral, those of Britain’s ruling class who still have something resembling a conscience will do well to heed them.
Britain’s first woman Prime Minister – the Margaret Thatcher timeline
1925 October 13 – Margaret Thatcher is born in the market town of Grantham, Lincolnshire
1947 – Thatcher graduates from Oxford with a Chemistry degree
1954 June 1 – Qualifies as a lawyer
1970 – Enters the Cabinet as Education Secretary
1975 February 11 – Elected Conservative Party leader, beating Edward Heath.
1975-9 – Leader of the Opposition
1979 May 4 – The Conservative Party wins the general election, Thatcher succeeds James Callaghan as PM
1979 December 13 – Abolition of Exchange Controls
1980 – Buses deregulated and bus routes privatised
1980 – British Aerospace partly privatised
1980 – April – Local Government stopped from building council homes and tenants given the right to buy
1981 – March Prisoners at Northern Ireland’s Maze Prison go on hunger strike to regain status as political prisoners
1981 – April-July Urban rioting in Brixton in London, Toxteth in Liverpool and St. Pauls in Bristol.
1982 – January Unemployment tops 3 million
1982 – April-June Falklands War
1983 – Associated British Ports (ABP) privatised
1983 – British Shipbuilding privatised
1983 June 9 – Second term as PM begins; the Conservatives secure a landslide election victory
1984-5 – Miners strike, amid the closure and privatisation of coal mines
1984 – British Leyland car manufacturers privatised
1984 October 12 – Narrowly escapes death after the IRA bombs the Conservative party conference in Brighton, killing 5
1984 November – British Telecom (BT) the old Post Office Telecommunications is privatised
1985 – Attempted suppression of former MI5 officer Peter Wright’s autobiography ‘Spycatcher’ which is then published in Australia & Scotland.
1985 June 1 – Battle Of The Beanfield, Britain’s traveller peace convoy destroyed near Stonehenge, Wiltshire by violent police action as recorded in the ‘Operation Solstice’ documentary
1986 – January Wapping dispute as Rupert Murdoch embraces electronic publishing and breaks the power of print unions, depicted in the documentary ‘Despite The Sun’
1986 – British Airports Authority (BAA) privatised
1986 – March Abolition of Ken Livingstone’s opposition Labour controlled Greater London Council or GLC
1986 October 27 – Big Bang deregulation of the City of London financial sector which many believe contributed to the 2008 financial crisis
1986 December – British Gas privatised
1987 January – After several TV and radio programmes critical of the Thatcher government Victor Rothschild & Marmaduke Hussey sack BBC Director General Alasdair Milne
1987 February – British Airways privatised
1987 – Majority share in British Petroleum (BP) privatised
1987 – Rolls Royce aero engines privatised
1987 June 11 – Wins third term as Prime Minister
1988 – British Steel privatised
1989 – British Aerospace fully privatised
1989 – Water Boards privatised
1990 – The Electricity Act began the complex privatisation of electricity (except nuclear)
1990 March 31 – Poll tax riots culminate in a 200,000 strong march on central London, as portrayed in The Battle Of Trafalgar documentary
1990 October 30 – Thatcher No!, No!, No! speech in Commons makes it clear she is set against European Monetary and Political Union
1990 November 13 – Geoffrey Howe resigns in protest at Thatcher’s refusal to agree a timetable for European Monetary Union
1990 November 14 – Former cabinet minister Michael Heseltine challenges Margaret Thatcher for the party leadership
1990 November 28 – Thatcher resigns, despite having won the first ballot. She is succeeded by John Major
1992 – Thatcher leaves the House of Commons, joins the Lords as Baroness Thatcher
1994 – Praises Tony Blair and New Labour as her proudest achievement
2013 April 8 – Lady Thatcher dies in The Ritz hotel owned by Daily Telegraph proprietors the Barclay twins.
Beginning his working life in the aviation industry and trained by the BBC, Tony Gosling is a British land rights activist, historian & investigative radio journalist.
April 16, 2013
Posted by aletho |
Corruption, Economics, Timeless or most popular | Britain, Lord Victor Rothschild, Margaret Thatcher, Northern Ireland, Thatcher, UK |
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It’s a sign of how well relentless propagandizing works that Joe Stiglitz has to devote a lengthy op-ed in the New York Times to debunking the idea that our income tax system, whose salient characteristic is low tax burdens for the rich, is good for anyone other than the rich. Economists have increasingly taken note of the fact that the U.S. experiment in lowering taxes produced the opposite of the outcomes that were claimed for it, namely, spurring growth and increasing incomes in all cohorts (the barmy “trickle down” theory). Cross-country comparisons show that advanced economies with higher growth rates, like Germany, typically tax their wealthy more, showing that high taxes on the rich are not a negative for growth. Instead, giving tax breaks to the rich has turbo-charged rentier capitalism:
Remember, the low tax rates at the top were supposed to spur savings and hard work, and thus economic growth. They didn’t. Indeed, the household savings rate fell to a record level of near zero after President George W. Bush’s two rounds of cuts, in 2001 and 2003, on taxes on dividends and capital gains. What low tax rates at the top did do was increase the return on rent-seeking. It flourished, which meant that growth slowed and inequality grew. This is a pattern that has now been observed across countries. Contrary to the warnings of those who want to preserve their privileges, countries that have increased their top tax bracket have not grown more slowly. Another piece of evidence is here at home: if the efforts at the top were resulting in our entire economic engine’s doing better, we would expect everyone to benefit. If they were engaged in rent-seeking, as their incomes increased, we’d expect that of others to decrease. And that’s exactly what’s been happening. Incomes in the middle, and even the bottom, have been stagnating or falling.
Stiglitz provides a compelling summary of how the rich get favored treatment:
The richest 400 individual taxpayers, with an average income of more than $200 million, pay less than 20 percent of their income in taxes – far lower than mere millionaires, who pay about 25 percent of their income in taxes, and about the same as those earning a mere $200,000 to $500,000. And in 2009, 116 of the top 400 earners – almost a third – paid less than 15 percent of their income in taxes….
With such low effective tax rates – and, importantly, the low tax rate of 20 percent on income from capital gains – it’s not a huge surprise that the share of income going to the top 1 percent has doubled since 1979, and that the share going to the top 0.1 percent has almost tripled, according to the economists Thomas Piketty and Emmanuel Saez. Recall that the wealthiest 1 percent of Americans own about 40 percent of the nation’s wealth, and the picture becomes even more disturbing.
Stiglitz points out that not only are our tax rates on top earners strikingly low by OECD standards, but the income level at which they kick in are also higher than in most other advanced economies. And that is before you factor in that the rich for the most part don’t make their money through income but capital gains, which are taxed at lower rates. That preferable treatment has been exploited flagrantly by the hedge fund and private equity industries, which have been able to structure their funds so that the overwhelming majority of the income they get from managing the funds, which is labor income, is taxed at capital gains rates. And the worst is that the Masters of the Universe act as if that is perfectly reasonable. Stiglitz objects:
Some Wall Street financiers are able to pay taxes at lower capital gains tax rates on income that comes from managing assets for private equity funds or hedge funds. But why should managing financial assets be treated any differently from managing people, or making discoveries? Of course, those in finance say they are essential. But so are doctors, lawyers, teachers and everyone else who contributes to making our complex society work. They say they are necessary for job creation. But in fact, many of the private equity firms that have excelled in exploiting the carried interest loophole are actually job destroyers; they excel in restructuring firms to “save” on labor costs, often by moving jobs abroad.
And then the good professor turns to corporate tax breaks, citing poster child GE, which has paid on average less than 2% of its income in taxes since 2002. The picture is likely even worse than these figures suggest since corporations and wealthy individuals can hide income tax havens. … Full article
April 16, 2013
Posted by aletho |
Economics, Timeless or most popular | George W. Bush, Joseph Stiglitz, Tax rate, United States |
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The good news is that the cellulosic ethanol industry—turning trees and woody plants into liquid fuels—has yet to take off. And without an endless stream of taxpayer handouts to develop this polluting and environmentally destructive energy source, it probably never will.
Under the guise of taking action on climate change, the US Environmental Protection Agency (EPA) launched the Renewable Fuel Standard (RFS) under the Energy Policy Act of 2005, expanding it under the Energy Independence and Security Act (EISA) of 2007.
According to Institute for Energy Research, the RFS “mandates the production of ethanol to the level of 36 billion gallons by 2022, where 15 billion gallons is to be corn-based and the remainder is to come from advanced forms of biofuels, including cellulosic ethanol.
“The advanced biofuel contribution starts at 0.6 billion gallons in 2009 increasing to 1.35 billion gallons in 2011, 2.0 billion gallons in 2012 and eventually to 21.0 billion gallons in 2022.”
At first, the advanced biofuels component was set at an optimistic 0.6 billion gallons by 2009, 1.35 billion by 2011, 2.0 billion by 2012, and an obscene 21.0 billion by 2022. Yet the industry’s repeated botched attempts to break down wood cellulose into a usable fuel combined with overwhelming investor uncertainty—in the wake of corn ethanol’s recent fall from grace—meant refiners weren’t able to get their hands on anywhere near the EPA’s desired amount.
“Because cellulosic ethanol was not yet commercial, EPA issued changes to the original act that requires four separate standards including 1.0 billion gallons of biomass-based diesel by 2012 and 16 billion gallons of cellulosic biofuels by 2022.”
The requirement for motor fuel from cellulose was initially set at 250 million gallons by 2011 and 500 million by 2012. When that proved impossible, the EPA lowered the bar to 6.6 million gallons by 2011 and 8.65 million by 2012.
When big biofuels still couldn’t make the cut in 2011, the EPA fined refiners $6.8 million. Yet in January 2013, the DC District Court of Appeals struck down the mandate, ruling that it was unfair of the EPA to put refiners in an “impossible position” by punishing them for not buying and blending biofuels that didn’t exist. The EPA repaid the fines.
Wally Tyner, agricultural economist at Purdue University, claims in a Science Insider article that the court decision doesn’t entirely gut the RFS. Tyner concludes that if more cellulosic ethanol comes online in the future, the EPA will then be able to issue their beloved “blending mandates.”
Which won’t happen anytime soon. In 2012 the entire US biofuels industry brewed up only 20,069 gallons of cellulosic ethanol, according to Climatewire.
But the elusive nature of the magic tree gas hasn’t stopped some of the more enterprising bio-profiteers from cashing in. Rodney Hailey, owner of Maryland-based Clean Green Fuel, LCC, sold $9 million in “renewable fuel credits” for biofuels his company never even produced. In February 2013, a US District Court Judge sentenced Hailey to twelve years in the slammer for his sins.
Florida, Georgia, and Oregon have been the site of the industry’s latest casualties. Even the heaping fortunes of fossil fuels giant British Petroleum (BP) weren’t enough to make a go of a $350 million forest-to-fuels facility in Highlands County, Florida—which went belly up in 2012.
A $37 million federal grant and $235 million loan guarantee couldn’t prevent major financial difficulties that ultimately forced ZeaChem, a cellulosic ethanol company in Boardman, Oregon to “scale back plant operations…and let go a number of our valued employees” in March 2013. Only a few weeks before, the company had produced its first and only batch of ethanol. While ZeaChem insists they’re not throwing in the paper towel yet, a recent Oregonian article suggests otherwise.
Perhaps the highest profile bio-failure to date—dubbed the “Solyndra of biofuels” by some—is the shuttering of Range Fuels’ wood-to-ethanol factory in Treutlen County, Georgia. The corporation broke ground in 2007 with promises to produce 100 million gallons of ethanol, seducing the US Department of Energy (DOE) to fork over a $76 million grant. As one of his final acts as president, George W. Bush also doled out an $80 million loan guarantee. The facility was completed in 2010—after having absorbed $46.3 million of the DOE grant and $42 million of the loan—when Range Fuels jumped ship and sold the facility in 2011 for a mere $5.1 million—without having brewed up a single tank of gasoline.
Range Fuels and the company that snatched it up for pennies on the taxpayer subsidized dollar, LanzaTech, are financed by investment company Khosla Ventures. “Billionaire Vinod Khosla, who is known for investing in so-called black swan ideas and innovation that could disrupt markets, also sits on the LanzaTech board,” according to Smart Planet.
Despite the industry’s repeated losses right out of the gate, investors like Khosla keep betting on the same horse. In a fit of either desperation or supreme optimism, Khosla is also backing a Columbus, Mississippi cellulosic ethanol factory that produced its first shipment in March 2013, with plans to build another plant in Natchez, Mississippi later this year.
More ominously, Khosla invested through Mascoma Corporation in a proposal to build a cellulosic ethanol biorefinery in Kinross, Michigan, in the state’s Upper Peninsula. When Mascoma struggled to find sufficient funding, Valero—the largest US refiner of traditional gasoline and the company that would process the dirty tar sands oil at the end of the yet-to-be-constructed Keystone pipeline in Texas—dropped $50 million into the project while agreeing to purchase up to 40 million gallons of the stuff.
Even with Khosla’s millions, in March 2013 Mascoma withdrew its registration for a $100 million initial public offering (IPO)—when a company goes from private to publicly trading on the stock market—blaming “market conditions.” Now the facility is being solely managed by Valero and its disturbingly long track record of Clean Air Act violations.
Pat Egan, area resident and former owner and publisher of the local daily newspaper, is fearful that with Valero acting as sugar daddy the Kinross facility stands a fairly good chance of creating a “commercial and viable product.” Add to this a $26 million grant from the feds, $80 million from DOE and $26 million from the state of Michigan, the facility is certainly a contender.
Before jumping ship, Mascoma conjured up a process called consolidated bioprocessing (CBP) to “develop genetically-modified yeasts and other microorganisms to reduce costs and improve yields in the production of renewable fuels and chemicals.” It’s evident that commercial scale cellulosic biofuels can’t happen without the equally controversial—if not more so—practice of genetic engineering.
Perhaps the unholiest of marriages between the biofuels and genetic manipulation industries involves ArborGen, the progenitor of genetically modified freeze-tolerant eucalyptus trees to convert into paper pulp and biofuels. The US Department of Agriculture is accepting public comments until April 29 in its consideration whether or not to allow the Franken-company to sell hundreds of millions of the experimental life form across Texas, Florida, Alabama, Louisiana, Mississippi, South Carolina, and Georgia.
In order for the Kinross project to work, according to Egan, the facility has to cut all its wood within a 150 mile radius. If you look at a map and draw a circle around the facility, Egan points out that one-third of it is water, including Lake Superior and Lake Michigan, and one-third of it is Canada. Egan believes a significant portion of the grant and development money will migrate north to Canada.
The facility would require a “phenomenal” amount of wood—1.1 million green tons per year to produce 20 million gallons, according to Egan. In comparison, a 50 megawatt biomass power incinerator burns about 500,000 green tons per year. The wood for Kinross would come primarily from pulpwood or whole trees in Michigan and Ontario, sixty to seventy cordwood trucks a day, said Egan.
Upper Peninsula-based Longyear Forestry, a partner in the project, is slated to be providing many of the trees to chip and convert into ethanol and has provided the land to site the facility. 56% of the wood would come from private land owners and the rest from public land, cutting down wild forests and monocrop tree plantations alike, including willow and aspen, explained Egan.
The Michigan Department of Natural Resources is “already changing their ten year forest plan to create more fast growing use of land,” said Egan. Two national forests, the Hiawatha National Forest and the Superior National Forest are within 150 miles. “All the state and federal sustainable cuts would still offer less than half of the wood supply the project may need.”
A Michigan State University Department of Forestry study acknowledged a limited woodshed in the region, admitting that already “wood-fired electric power plants consume large quantities of wood throughout Michigan and in the Kinross supply region.”
The Kinross biorefinery would provide about fifty to sixty five jobs, said Egan. Yet those numbers don’t include the loss of jobs from businesses competing for the same wood source—that don’t have the taxpayer subsidies to pay top dollar—such as fiberboard.
Not long ago, Pat thought the “bottom” use of wood was for electricity, but now believes “this ethanol thing can be even worse on per job basis.” He points to an area paper mill that employs 1,100. “All of a sudden the paper industry is looking like the good old days,” he said, worried that the refinery’s commandeering of local wood could knock the mill out of business. It’s a perfect example of the government “picking winners and losers.”
Egan refers to the potential biomass boom as the “third big cut”—the first cut being the initial land clearing by settlers in the 1800’s and the second cut taking place in the 20th century for lumber to build houses. Instead of trees growing to 80 to 120 years for high quality lumber, Egan warns that the biomass industry will only be waiting ten to twenty five years between cuts.
“People die” in refinery accidents, said Egan, including Valero’s refinery explosions in March 2012 in Memphis, Tennessee that killed one and injured two. It’s ironically cheaper to pay those fines—$63,000 in the case of Memphis—than make the preventative safety changes, said Egan. Though asked for an emergency plan, the developers have yet to deliver. The ethanol plant would be located within a few hundred yards of a Sioux Tribal Housing facility, with hundreds of residents living across the road. Down the road a couple miles are three state prisons with their captive population of thousands.
Egan is worried that, while so many other ethanol plants have gone bust, Kinross just might make it. He points to Mascoma’s experimental plant in Utica, New York where they claim to have “perfected” the process—burning through 25 million taxpayer dollars in the process. “As soon as they figure out non-food source ethanol and make it saleable and gasoline prices stay high,” warned Egan, they’ll be putting up “cookie cutter plants” all around the country.
So who would buy the ethanol? “If somebody can crack this nut and find the holy grail of commercial cellulosic biofuels, they have a ready made customer in the military,” said Egan. The US Department of Defense is aiming for 40% of their energy to come from biofuels by 2023. In 2012, the US Air Force tested its first ethanol in jets.
“Taking carbon traps, trees that grab carbon out of the air and grow and do so much more in terms of biodiversity,” Egan cautioned, “taking those down and releasing carbon is doing two horrible things.”
Kinross resident Larry Klein—who lives two miles from the proposed refinery site—is fighting the refinery in the courts, with the help of the Sierra Club of Michigan, suing through the NEPA process in regards to the Department of Energy’s $80 million grant. In November 2012, a judge threw out the case, which is now in appeals court in Cincinnati.
April 15, 2013
Posted by aletho |
Economics, Environmentalism, Malthusian Ideology, Phony Scarcity, Timeless or most popular | Biofuel, Biomass Monitor, Energy Policy Act of 2005, EPA, Ethanol, Josh Schlossberg, Renewable Fuel Standard, RFS, United States Environmental Protection Agency, ZeaChem |
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