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Paul Merrell

New Data Reveals U.S. Far From Freest Country in the World - 0 views

theantimedia.org/om-freest-country-in-the-world

U.S. economy economic-freedom ranking stats

shared by Paul Merrell on 27 Sep 15 - No Cached
  • According to the annual Economic Freedom of the World report, the United States has dropped to #16 in an index of economic freedom. The list, released by the Fraser Institute, ranks countries around the world by a number of different factors that include the size and scope of government: expenditures, taxes, enterprises, legal structure and security of property rights, access to sound money, freedom to trade internationally, and regulation of credit, labor, and business were all evaluated. The study also considered income levels and poverty rates. As the introduction of the study details:“The cornerstones of economic freedom are (1) personal choice, (2) voluntary exchange coordinated by markets, (3) freedom to enter and compete in markets, and (4) protection of persons and their property from aggression by others. Economic freedom is present when individuals are permitted to choose for themselves and engage in voluntary transactions as long as they do not harm the person or property of others.”At the top of the list was Hong Kong, followed by Singapore, New Zealand, Switzerland, United Arab Emirates, Mauritius, Jordan, Ireland, and Canada. The United Kingdom and Chile tied at #10. The United States followed behind at #16, continuing a downward trend that has grown for several years.
  • The report also noted that “Nowhere has the reversal of the rising trend in the economic freedom been more evident than in the United States. Throughout the period from 1970 to 2000, the United States ranked as the world’s freest OECD nation (generally the third freest economy overall behind only Hong Kong and Singapore). The chain-linked summary rating of the United States in 2000 was 8.65. By 2005, the US rating had slipped to 8.22. The slide has continued. The 7.73 chain-linked rating of the United States in 2013 was more than 0.9 of a unit lower than the 2000 rating. Thus, the decline in economic freedom in the United States has been more than three times greater than the average decline found in the OECD [emphasis added].”While the U.S. has never had a truly free economy, the new study makes it evident that Americans have far less economic freedom and opportunity than they did in the year 2000. Now that economic conditions are even worse in the U.S. than they were before, a culture of extreme economic control has taken over and exacerbated the growing recession — one that history may end up redesignating a depression.
Paul Merrell

Eurasian emporium or nuclear war?: Pepe Escobar | Asia Times - 0 views

atimes.com/...um-or-nuclear-war-pepe-escobar

war & peace U.S.-foreign-policy Russia ColdWar2.0 NATO War-Party

shared by Paul Merrell on 09 Apr 15 - No Cached
  • A high-level European diplomatic source has confirmed to Asia Times that German chancellor Angela Merkel’s government has vigorously approached Beijing in an effort to disrupt its multi-front strategic partnership with Russia. Beijing won’t necessarily listen to this political gesture from Berlin, as China is tuning the strings on its pan-Eurasian New Silk Road project, which implies close trade/commerce/business ties with both Germany and Russia. The German gambit reveals yet more pressure by hawkish sectors of the U.S. government who are intent on targeting and encircling Russia. For all the talk about Merkel’s outrage over the U.S. National Security Agency’s tapping shenanigans, the chancellor walks Washington’s walk.  Real “outrage” means nothing unless she unilaterally ends sanctions on Russia. In the absence of such a response by Merkel, we’re in the realm of good guy-bad guy negotiating tactics.
  • The bottom line is that Washington cannot possibly tolerate a close Germany-Russia trade/political relationship, as it directly threatens its hegemony in the Empire of Chaos. Thus, the whole Ukraine tragedy has absolutely nothing to do with human rights or the sanctity of borders. NATO ripped Kosovo away from Yugoslavia-Serbia without even bothering to hold a vote, such as the one that took place in Crimea.
  • In parallel, another fascinating gambit is developing. Some sectors of U.S. Think Tankland – with their cozy CIA ties – are now hedging their bets about Cold War 2.0, out of fear that they have misjudged what really happens on the geopolitical chessboard. I’ve just returned from Moscow, and there’s a feeling the Federal Security Bureau and Russian military intelligence are increasingly fed up with the endless stream of Washington/NATO provocations – from the Baltics to Central Asia, from Poland to Romania, from Azerbaijan to Turkey. This is an extensive but still only partial summary of what’s seen all across Russia as an existential threat: Washington/NATO’s intent to block Russia’s Eurasian trade and development; destroy its defense perimeter; and entice it into a shooting war. A shooting war is not exactly a brilliant idea. Russia’s S-500 anti-missile missiles and anti-aircraft missiles can intercept any existing ICBM, cruise missile or aircraft. S-500s travel at 15,480 miles an hour; reach an altitude of 115 miles; travel horizontally 2,174 miles; and can intercept up to ten incoming missiles. They simply cannot be stopped by any American anti-missile system.
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  • Some on the U.S. side say  the  S-500 system is being rolled out in a crash program, as an American intel source told Asia Times. There’s been no Russian confirmation. Officially, Moscow says the system is slated to be rolled out in 2017. End result, now or later: it will seal Russian airspace. It’s easy to draw the necessary conclusions. That makes the Obama administration’s “policy” of promoting war hysteria, coupled with unleashing a sanction, ruble and oil war against Russia, the work of a bunch of sub-zoology specimens. Some adults in the EU have already seen the writing on the (nuclear) wall. NATO’s conventional defenses are a joke. Any military buildup – as it’s happening now – is also a joke, as it could be demolished by the 5,000 tactical nuclear weapons Moscow would be able to use.
  • Of course it takes time to turn the current Cold War 2.0 mindset around, but there are indications the Masters of the Universe are listening – as this essay shows. Call it the first (public) break in the ice. Let’s assume Russia decided to mobilize five million troops, and switch to military production. The “West” would back down to an entente cordiale in a flash. And let’s assume Moscow decided to confiscate what remains of dodgy oligarch wealth. Vladimir Putin’s approval rate – which is not exactly shabby as it stands – would soar to at least 98%. Putin has been quite restrained so far. And still his childishly hysterical demonization persists. It’s a non-stop escalation scenario. Color revolutions. The Maidan coup. Sanctions; “evil” Hitler/Putin; Ukraine to enter NATO; NATO bases all over. And yet reality – as in the Crimean counter coup, and the battlefield victories by the armies of the People’s Republics of Donetsk and Lugansk – has derailed the most elaborate U.S. State Department/NATO plans. On top of it Merkel and France’s Francois Hollande were forced into an entente cordiale with Russia – on Minsk 2 – because they knew that would be the only way to stop Washington from further weaponizing Kiev.
  • Putin is essentially committed to a very complex preservation/flowering process of Russia’s history and culture, with overtones of pan-Slavism and Eurasianism. Comparing him to Hitler does not even qualify as a kindergarten prank. Yet don’t expect Washington neo-cons to understand Russian history or culture. Most of them would not even survive a Q&A on their beloved heroes Leo Strauss and Carl Schmitt. Moreover, their anti-intellectualism and exceptionalist arrogance creates only a privileged space for undiluted bullying. A U.S. academic, one of my sources, sent a letter to Nancy Pelosi copied to a notorious neo-con, the husband of Victoria, the Queen of Nulandistan. Here’s the neo-con’s response, via his Brookings Institution email: “Why don’t you go (expletive deleted)  yourself?” Yet another graphic case of husband and wife deserving each other.
  • At least there seem to be sound IQs in the Beltway driven to combat the neo-con cell inside the State Department, the neo-con infested editorial pages of the Wall Street Journal and the Washington Post, an array of think tanks, and of course NATO, whose current military leader, Gen. Breedlove/Breedhate, is working hard on his post-mod impersonation of Dr. Strangelove. Russian “aggression” is a myth. Moscow’s strategy, so far, has been pure self-defense. Moscow in a flash will strongly advance a strategic cooperation with the West if the West understands Russia’s security interests. If those are violated – as in provoking the bear – the bear will respond. A minimum understanding of history reveals that the bear knows one or two things about enduring suffering. It simply won’t collapse – or melt away.
  • Meanwhile, another myth has also been debunked: That sanctions would badly hurt Russia’s exports and trade surpluses. Of course there was hurt, but bearable. Russia enjoys a wealth of raw materials and massive internal production capability – enough to meet the bulk of internal demand. So we’re back to the EU, Russia and China, and everyone in between, all joining the greatest trade emporium in history across the whole of Eurasia. That’s what Putin proposed in Germany a few years ago, and that’s what the Chinese are already doing. And what do the neo-cons propose? A nuclear war on European soil.
  • Paul Merrell on 09 Apr 15
     
    Merkel is in a poor position to break up Russia-China relations, having blown up the South Stream Pipeline project and playing the U.S. lapdog role on sanctions against Russia, which drove Russia into China's arms. China has been happily switching from Gulf Coast oil supply lines to Russian, given that the U.S. is busily blowing up the Middle East. Moreover, neither Merkel nor the Saudis bring anything to the China de-dollarization play while Russia does.   Follow the link from "This" to see what has Pepe Escobar so freaked out. The U.S. War Party is going nuts with their Cold War 2.0. 
Paul Merrell

Israel Joins Chinese Bank, Defies U.S.  « LobeLog - 0 views

www.lobelog.com/-joins-chinese-bank-defies-u-s

war & peace economic-warfare Israel China AIIB U.S.-foreign-policy

shared by Paul Merrell on 10 Apr 15 - No Cached
  • Updating the post I wrote a couple of weeks ago on how the U.S. failed to persuade some of its closest allies not to join the new Chinese-backed Asian Infrastructure Investment Bank (AIIB), it’s worth noting that Israel has also abandoned Washington by signing up for membership. The Israeli foreign ministry announced on March 31–the deadline for applying to join the new bank–that Prime Minister Benjamin Netanyahu had signed “a letter of application to join the [AIIB], a result of the initiative of the President of China.”
  • The process of joining the bank was led by the Ministry of Foreign Affairs in recognition of the importance of joining major Asian organizations on the continent. Israel’s membership in the Bank will open opportunities for integration of Israeli companies in various infrastructure projects, which will be financed by the bank. …It should be noted that the establishment of the bank is a Chinese diplomatic achievement. China initially intended that 35 countries should join, and to date 50 countries have joined. The establishment of AIIB is one of the most important initiatives in terms of Chinese foreign policy and in particular for President Xi Jinping, as this is his personal initiative.
  • Needless to say, Israel’s decision, which is perfectly defensible on the grounds of national interest, constitutes another slap at the Obama administration, which in the view of many experts stupidly lobbied U.S. allies against membership. (Of Washington’s closest allies, only Canada and Japan did not apply.) Israel has substantial commercial interests in China, particularly in the hi-tech and defense sectors. In fact, the Pentagon has long complained about Israeli transfers of sensitive U.S. military technology to China. In 2004, the Bush administration even sent then-Undersecretary of Defense for Policy and Greater Israel advocate Douglas Feith to Jerusalem to demand the resignation of the director general of the Israeli Defense Ministry, Amos Yaron, for allegedly concealing details of the sale and upgrade of an Israel-made Harpy attack drone to China.
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  • Of course, one of the reasons Obama lobbied allies against joining the bank is that he knew that a Republican Congress would itself reject Washington’s accession. The same Republican Congress has steadfastly refused to ratify a long-pending governance reform of the International Monetary Fund (IMF) and the World Bank that would give Beijing and some other middle-income countries a somewhat bigger voice in the two western-dominated Bretton-Woods institutions (even without diluting the U.S. voting power on their boards). And, yes, this is the same Republican Congress that invited Netanyahu to speak to it, that approves virtually any appropriation desired by Israel, and that is trying its utmost to derail a multilateral nuclear agreement with Iran largely at Bibi’s behest.
  • Like most small countries, Israel practices realpolitik. Despite claims by AIPAC, neoconservatives, and many Christian Zionists that Israel is our “closest ally” in the Middle East, if not the world, and that its “values” are identical to our own, in fact, it pursues its own interests abroad with little regard for Republican (or anyone else’s) sensibilities. As we have reported before, it is also providing support to al-Qaeda’s affiliate in Syria, but no Republican that I know of has raised the slightest objection. Indeed, in their devotion to Netanyahu and his Likud Party, no doubt well lubricated by the millions of dollars in campaign and other political contributions offered by Sheldon Adelson, Paul Singer, and other Republican Jewish Coalition donors, most Republican lawmakers appear perfectly comfortable with Israel’s Middle East policies, including continued settlement-building and expansion in the West Bank and East Jerusalem, the de facto blockade against Gaza, and demands that Israel be recognized as a Jewish State. These actions and others serve not only to radicalize the Palestinians and other Arabs but also make it more difficult for the United States and its military to gain goodwill and operate effectively throughout the region, as then-CentCom Commander Gen. David Petraeus told the Senate Armed Services Committee shortly after Netanyahu became prime minister. Indeed, no one has undermined U.S. credibility in the region and beyond over the past six years as much as Bibi himself.
Paul Merrell

Top 1 Percent Own More Than Half of World's Wealth | Global Research - Centre for Resea... - 0 views

www.globalresearch.ca/...5482126

income inequality stats Credit-Suisse banksters bail-outs

shared by Paul Merrell on 15 Oct 15 - No Cached
  • A new report issued by the Swiss bank Credit Suisse finds that global wealth inequality continues to worsen and has reached a new milestone, with the top 1 percent owning more of the world’s assets than the bottom 99 percent combined. Of the estimated $250 trillion in global assets, the top 1 percent owned almost exactly 50 percent, while the bottom 50 percent of humanity owned collectively less than 1 percent. The richest 10 percent owned 87.7 percent of the world’s wealth, leaving 12.3 percent for the bottom 90 percent of the population. The Credit Suisse report focused not on the top 1 percent, but on a slightly smaller group, the 0.7 percent of adults with assets of more than 1 million US dollars. This figure includes both financial assets and real assets, such as homes, small businesses and other physical property. The report’s eye-catching “Global Wealth Pyramid” divides the human race into four categories by wealth: 3.4 billion adults with net assets of less than $10,000; 1 billion with net assets from $10,000 to $100,000; 349 million with net assets from $100,000 to $1 million; and 34 million with net assets over $1 million.
  • The lowest category comprises 71 percent of all adults and owns only 3 percent of total wealth; the next-poorest group comprises 21 percent of adults and owns 12.5 percent of the wealth; above this is a group comprising 7.4 percent of adults and owning 39.4 of the wealth; and finally the top layer, 0.7 percent of adults owning 45.2 percent of the wealth. This top layer, defined by the report as “high-net-worth individuals,” is itself divided very unequally, as shown in a second pyramid: 29.8 million with assets of $1 million to $5 million; 2.5 million with assets of $5 million to $10 million; 1.34 million with assets of $10 million to $50 million; and finally, 123,800 with assets over $50 million. These 123,800 “ultra-high-net-worth individuals,” as the report calls them, are the true global financial aristocracy, exercising decisive sway not only over banks and corporations, but over governments and international institutions as well. Of these, nearly 59,000, almost half the total, live in the United States. Another quarter live in Europe (mainly Britain, Germany, Switzerland, France and Italy), followed by China and then Japan.
  • The Credit Suisse report notes the particularly rapid rise in inequality since the Wall Street crash of 2008 and relates it directly to the stock market boom that followed the bailout of the banks, initiated by the Bush administration and greatly expanded by the Obama administration. A key passage reads: “There are strong reasons to think that the rise in wealth inequality since 2008 is mostly related to the rise in equity prices and to the size of financial assets in the United States and some other high-wealth countries, which together have pushed up the wealth of some of the richest countries and of many of the richest people around the world. The jump in the share of the top percentile to 50 percent this year exceeds the increase expected on the basis of any underlying upward trend. It is consistent, however, with the fact that financial assets continue to increase in relative importance and that the rise in the USD (US dollar) over the past year has given wealth inequality in the United States—which is very high by international standards—more weight in the overall global picture.” In other words, deepening global economic inequality is being driven above all by American capitalism, with the United States being both the wealthiest and by far the most unequal country in the world. The US has less than 5 percent of the world’s population, but a staggering 46 percent of the world’s millionaires.
  • Paul Merrell on 15 Oct 15
     
    Gee, the wealth concentration is accelerating. Why might that be?
Joseph Skues

Why capitalism can't meet human needs - 0 views

www.workers.org/socialism

jobs capitalism OVERPRODUCTION

shared by Joseph Skues on 14 Aug 10 - Cached
  • This crisis began when the housing bubble burst. Capitalist banks were lending money to profit-seeking real estate developers to build houses. The same banks were lending money to mortgage companies to make as many loans as they could. The goal was to boost profits. Soon there were more houses than the workers and the middle class could buy. The prices of homes fell. Mortgages could not be refinanced. Workers could not pay the steep increases in interest rates built into their loans. Banks stopped lending. Millions of households went into foreclosure. Put simply, people became homeless because there were too many houses! Not too many houses that were needed or already here, but too many houses that can be sold at a profit. Furthermore, the workers who build homes and all the workers who make the things that go into homes are losing their jobs because these homes can no longer be sold at a profit. That is the essence of all the capitalist crises that have occurred since the first crisis in 1825. It is the crisis of overproduction.
  • Now the crisis of overproduction is sweeping the auto industry. From the auto industry and the housing industry it is spreading throughout the economy. The stock markets are plummeting because the financial bailouts, the pumping of trillions of dollars into the banks, cannot stop the capitalist economic crisis.
  • Profits consist of unpaid labor.
  • ...17 more annotations...
  • Under the system of capitalist exploitation wealth flows to the top, and the level of inequality is obscene.
  • the super-rich who have all the levers of power in society, owned 34.3 percent of the wealth in 2004.
  • Racism and national oppression
  • distribution of wealth under capitalism
  • the median wealth (that is, savings and other assets) of households by race in 2004 was $140,700 for whites, $20,600 for African Americans and $18,600 for Latin@s
  • Oppression and economic discrimination also fall on women and lesbian, gay, bi and trans people under capitalism
  • sex and gender bias as a way to divide and conquer.
  • A system in which people are homeless because there are too many homes must go
  • How else could 1 percent of the population dominate the workers and oppressed
  • As the present crisis engulfs wider and wider sections of the workers, the potential for bringing about that unity is growing stronger.
  • The Pentagon is nothing more than an enforcer for U.S. capitalism
  • The growing witch-hunt against undocumented workers has the same poisonous, divisive goal.
  • in which workers are losing their jobs and being plunged into poverty because they have produced too much wealth
  • which cannot provide jobs and education but imprisons 2.4 million people
  • majority of them Black and Latin@, is bankrupt
  • where production takes place for human need, not for profit. The class that produces the wealth, the multinational working class, should own and distribute that wealth.
  • Trillions of dollars are now being used to bail out the banks and fund the Pentagon under capitalism. Under socialism, that money would guarantee that everyone would have a decent job and income, free health care, affordable housing, free education, low-cost transportation, healthy, reasonably priced food and much more. The well-being of the multinational working class would be the goal of society, not their exploitation as it is under capitalism.
Joseph Skues

Bechtel Corporation: Key U.S. Benefits - 0 views

www.bechtel.com/key_us_benefits.html

banksters bechtel financial-oligarchs financial-crisis benefits Banksters

shared by Joseph Skues on 18 Nov 10 - No Cached
  • one-on-one health coaching
  • earn wellness credits each pay period, which may be applied toward the cost of medical coverage or taken as additional taxable income.
  • other healthy activities may be available such as weight management programs and free flu shots.
  • ...12 more annotations...
  • Coverage is available f
  • recognizes registered domestic partners for all applicable benefits. 
  • Confidential, short-term outpatient counseling services are offered at no cost
  • at no cost to employees. Basic life insurance Business travel accident insurance Company paid accident insurance
  • Both plans allow employees to contribute up to $5,000 each year to each plan
  • nine paid holidays a year in the United States
  • 20 days (160 hours) of paid time off per year, up to 80 days
  • for vacation, sick leave, personal time off, or religious observance.  
  • This option allows employees to “buy” an additional 40 hours of vacation. The employee’s salary is reduced by one week’s pay, with the reduction spread over the entire year.
  • Company matching and profit sharing contributions begin after one year of service. Immediate vesting entitles employees to the full value of company contributions.
  • Additional Benefits Additional benefits include Bechtel
  • University online training
Joseph Skues

Bechtel Corporation: Key Australian Benefits - 0 views

www.bechtel.com/australia-benefits.html

banksters bechtel benefits financial-crisis socialism finacial-crisis financial-oligarchs Banksters

shared by Joseph Skues on 18 Nov 10 - No Cached
  • company-paid accident insurance at no cost.
  • Under the Choice of Super Legislation, employees are eligible to nominate a super fund of their choice
  • provides at least the Superannuation Guarantee Charge, which is determined in accordance with federal government legislation
  • ...4 more annotations...
  • The plan also includes insurances for death coverage and income protection coverage
  • Confidential counseling services are offered at no cost to help
  • Additional benefits include
  • cholarship availability for children of full-time employees
Gary Edwards

Why Are We So Afraid To Fix Banks The Right Way?* | Clusterstock Henry Blodgett - 0 views

clusterstock.alleyinsider.com/...aid-to-fix-banks-the-right-way

finacial-crisis

shared by Gary Edwards on 21 Jan 09 - Cached
  • a debt-equity swap
  • LIF said: Jan. 19, 3:17 PM MY PLAN 1. Mandate a 12-1 leverage cap for all financial institutions to take effect within 180 days. This 12-1 leverage cap has to be calculated using real market prices, not mark-to-model prices. 2. Temporary ban on capital raising by banks – water can’t dilute poison. You eliminate the poison first then add more water. 3. Force banks, etc to reach this 12-1 leverage cap by selling their toxic assets within 180 days via a US Govt Auction. The US Govt will be the Auctioneer but will NOT bid for assets 4. Any bank that is unable to sell sufficient assets to bring it under the 12-1 leverage cap will automatically nationalized by the US Govt at a price of $1. All shareholdrers and bond holders forfeit their assets. This will provide an incentive to the banks/financial institutions to sell these assets. 5. The US Govt will now hold all the toxic assets to maturity - this will prevent private market bidders from low-bidding in (3) above. Private market bidders in essence are being told, you buy the assets during the auction or you will not have another opportunity to buy the assets, as the US Govt will sieze them at an effective rate of ZERO and then hold them to maturity. 6. Any bank that falls under nationalization will also have its CEO, Board of Directors and members of the Management committee for the past 5-10 years disgorge all compensation earned during the past 5-10 years. 7. Create standardized CDS products that traded on an electronic exchange. All non-standard CDS products should be liquidated in the OTC market or swapped into standardized CDS products prior to the commencement of the new CDS exchange. The exchange will commence within180 days. 8. New Mortgage Financing Rules: 20-30% minimum govt mandated down payments. Strict Debt to Income limits, etc. These rules must be codified into federal law. 9. New Credit Card/Auto Finance rules: strict rules on the amount of credit card/Auto finance debt available to consumers.
  • Gary Edwards on 21 Jan 09
     
    You don't have to subsidize banks and their stakeholders at taxpayer expense to avoid another Lehman.  You just have to fix the banks the right way. What's the right way? * Temporarily seize the banks * Write their assets down to nuclear-winter levels (or, if desired, put them in a big bad bank, as Sheila Bair wants to do.) * Convert enough of their debt to equity to put them in a strong capital position. That's it.  No taxpayer money.  No citizen outrage.  No comical "Yes, we're lending" assurances when what the banks are really doing is, sensibly, hoarding everything. We could do this to Citigroup and Bank of America tomorrow afternoon, and on Wednesday morning, two of our biggest banks would be rock solid (they could also still be publicly traded, under the same ticker symbols, with different shareholders). 
Gary Edwards

Speculators, Politicians, and Financial Disasters : A history of Banking and Socialism - 0 views

www.commentarymagazine.com/...the-madness-of-crowds-13180

politics banking socialism fannie-freddie

shared by Gary Edwards on 29 Oct 08 - Cached
  • As the sorry tale of the S&L crisis suggests, the road to financial hell is sometimes paved with good intentions. There was nothing malign in attempting to keep these institutions solvent and profitable; they were of long standing, and it seemed a noble exercise to preserve them. Perhaps even more noble, and with consequences that have already proved much more threatening, was the philosophy that would eventually lead the United States into its latest financial crisis—a crisis that begins, and ends, with mortgages. A mortgage used to stay on the books of the issuing bank until it was paid off, often twenty or thirty years later. This greatly limited the number of mortgages a bank could initiate. In 1938, as part of the New Deal, the federal government established the Federal National Mortgage Association, nicknamed Fannie Mae, to help provide liquidity to the mortgage market.
  • it was, ironically, the New Deal that institutionalized discrimination against blacks seeking mortgages. In 1935 the Federal Housing Administration (FHA), established in 1934 to insure home mortgages, asked the Home Owner’s Loan Corporation—another New Deal agency, this one created to help prevent foreclosures—to draw up maps of residential areas according to the risk of lending in them. Affluent suburbs were outlined in blue, less desirable areas in yellow, and the least desirable in red. The FHA used the maps to decide whether or not to insure a mortgage, which in turn caused banks to avoid the redlined neighborhoods. These tended to be in the inner city and to comprise largely black populations. As most blacks at this time were unable to buy in white neighborhoods, the effect of redlining was largely to exclude even affluent blacks from the mortgage market.
  • In 1977, responding to political pressure to abolish the practice, Congress finally passed the Community Reinvestment Act, requiring banks to offer credit throughout their marketing areas and rating them on their compliance. This effectively outlawed redlining.
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  • in 1995, regulations adopted by the Clinton administration took the Community Reinvestment Act to a new level. Instead of forbidding banks to discriminate against blacks and black neighborhoods, the new regulations positively forced banks to seek out such customers and areas. Without saying so, the revised law established quotas for loans to specific neighborhoods, specific income classes, and specific races. It also encouraged community groups to monitor compliance and allowed them to receive fees for marketing loans to target groups.
  • the Clinton changes in 1995. As part of them, Fannie and Freddie were now permitted to invest up to 40 times their capital in mortgages; banks, by contrast, were limited to only ten times their capital. Put briefly, in order to increase the number of mortgages Fannie and Freddie could underwrite, the federal government allowed them to become grossly undercapitalized—that is, grossly to reduce their one source of insurance against failure. The risk of a mammoth failure was then greatly augmented by the sheer number of mortgages given out in the country.
    • Gary Edwards
      Gary Edwards on 29 Oct 08
       
      wow, there's that "40 to 1" lending to asset ratio that took down the big five investment banks in October of 2008!
  • Since banks knew they could offload these sub-prime mortgages to Fannie and Freddie, they had no reason to be careful about issuing them. As for the firms that bought the mortgage-based securities issued by Fannie and Freddie, they thought they could rely on the government’s implicit guarantee. AIG, the world’s largest insurance firm, was happy to insure vast quantities of these securities against default; it must have seemed like insuring against the sun rising in the West.
  • remaining at the heart of the financial beast now abroad in the world are Fannie Mae and Freddie Mac and the mortgages they bought and turned into securities. Protected by their political patrons, they were allowed to pile up colossal debt on an inadequate capital base and to escape much of the regulatory oversight and rules to which other financial institutions are subject. Had they been treated as the potential risks to financial stability they were from the beginning, the housing bubble could not have grown so large and the pain that is now accompanying its end would not have hurt so much.
  • Gary Edwards on 29 Oct 08
     
    Fueled by easy credit, the real-estate market had been rising swiftly for some years. Members of Congress were determined to assure the continuation of that easy credit. Suddenly, the party came to a devastating halt. Defaults multiplied, banks began to fail. Soon the economic troubles spread beyond real estate. Depression stalked the land. The year was 1836.
Gary Edwards

Naked Capitalism: "Only 21% Say U.S. Government Has Consent of the Governed ... - 0 views

www.nakedcapitalism.com/...e-consent-of-the-governed.html

obammunism socialism oligarchy

shared by Gary Edwards on 19 Feb 10 - Cached
  • Gary Edwards on 19 Feb 10
     
    A new Rasmussen poll finds: The founding document of the United States, the Declaration of Independence, states that governments derive "their just powers from the consent of the governed." Today, however, just 21% of voters nationwide believe that the federal government enjoys the consent of the governed. *** Seventy-one percent (71%) of all voters now view the federal government as a special interest group, and 70% believe that the government and big business typically work together in ways that hurt consumers and investors.That helps explain why 75% of voters are angry at the policies of the federal government, and 63% say it would be better for the country if most members of Congress are defeated this November… In his new book, In Search of Self-Governance, Scott Rasmussen observes that the American people are "united in the belief that our political system is broken, that politicians are corrupt, and that neither major political party has the answers." He adds that "the gap between Americans who want to govern themselves and the politicians who want to rule over them may be as big today as the gap between the colonies and England during the 18th century." *** Sixty percent (60%) of voters think that neither Republican political leaders nor Democratic political leaders have a good understanding of what is needed today. Thirty-five percent (35%) say Republicans and Democrats are so much alike that an entirely new political party is needed to represent the American people. Nearly half of all voters believe that people randomly selected from the phone book could do as good a job as the current Congress.
Gary Edwards

Rich Dad's Conspiracy of the Rich: The 8 New Rules of Money | Silver Monthly - The Silv... - 0 views

www.silvermonthly.com/...-rich-the-8-new-rules-of-money

silvermonthly robert-kiyosaki federal-reserve inflation-conspiracy banksters

shared by Gary Edwards on 13 May 10 - Cached
  • he makes it very clear that the rules of money changed dramatically when the U.S. went off the gold standard in 1971.  For up until that time, “technically, prior to 1971, the U.S. dollar was a derivative of gold.  After 1971, the U.S. dollar became a derivative of debt.”
  • The Invisible Bank Robbery
  • He says “since money is invisible, a derivative of debt, bank robberies by bankers have become invisible.” 
  • ...15 more annotations...
  • Two ways these invisible robberies occur are:  fractional reserve banking, which is nothing more than banks lending money they don’t have; and deposit insurance, which “protects the bankers – not savers.” 
  • “why should an insurance company like AIG receive bailout money in the first place?  Isn’t bailout money reserved for banks?”
  • “because it owed the biggest banks in the world a lot of money and didn’t have the cash to pay up.”
  • five new rules
  • money is knowledge; learn how to use debt;
  • learn to control cash flow;
  • prepare for bad times and you will only know good times;
  • and the need for speed. 
  • The name of the game, according to Kiyosaki, is “cash flow.”
  • The focus has to be on cash flow, not on capital gains.
  • Businesses that provide passive cash flow. Income-producing real estate. Paper assets – stocks, bonds, savings, annuities, insurance and mutual funds. Commodities – gold, silver, oil, platinum, etc.
  • invest in four basic areas:
  • By selling more than you buy, you can eventually become rich.
  • in Kiyosaki’s opinion, the ultimate definition of “sell” is building a business and then taking it public.
  • “knowledge is the new money.”
  • Gary Edwards on 13 May 10
     
    As Kiyosaki writes in his book:  "So has there been a conspiracy?  I believe so, in a way."  He goes on to explain why he believes so, citing the lack of financial education in the school systems, the Federal Reserve Act, and Nixon's 1971 dismissal of the gold standard.  And most interestingly, Kiyosaki believes that 401(k) retirement vehicles placed the retirement money of average people in the hands of Wall Street. The first chapter of the book is entitled 'Can Obama Save the World?'  Kiyosaki's answer is no.  And apparently, Obama doesn't want to even if he could.  For he appointed Summers and Geithner, both of who played a part in repealing the Glass Steagall Act.  In other words, it's the same old same old.  Nothing has changed.  Which means that the average person needs to understand how taxes, debt, inflation, and retirement affect them.  Kiyosaki sums up the chapter by stating that once one understands the new rules of money, then one can "opt out of the conspiracy of the rich." From there, Kiyosaki moves on to explain how we got where we are.  He points the finger at the Federal Reserve Bank, which inflates the money supply, which destroys the value of savings and retirement plans.  And he makes it very clear that the rules of money changed dramatically when the U.S. went off the gold standard in 1971.  For up until that time, "technically, prior to 1971, the U.S. dollar was a derivative of gold.  After 1971, the U.S. dollar became a derivative of debt." Kiyosaki proceeds to discuss what he calls 'The Invisible Bank Robbery.'  He says "since money is invisible, a derivative of debt, bank robberies by bankers have become invisible."  Two ways these invisible robberies occur are:  fractional reserve banking, which is nothing more than banks lending money they don't have; and deposit insurance, which "protects the bankers - not savers."  Then he asks a very pertinent question:  "why should an ins
Gary Edwards

Works and Days » Zero Jobs 101 - the Psychology of Alienating Employers - 0 views

pajamasmedia.com/...job-killing-101

VDH Obammunism financial-collapse crony-socialism

shared by Gary Edwards on 07 Sep 11 - No Cached
  • Here is the lament I heard: the near $5 trillion in borrowing in just three years, the radical growth in the size of the federal government and its regulatory zeal, ObamaCare, the Boeing plant closure threat, the green jobs sweet-heart deals and Van Jones-like “Millions of Green Jobs” nonsense, the vast expansion in food stamps and unemployment pay-outs, the reversal of the Chrysler creditors, politically driven interference in the car industry, the failed efforts to get card check and cap and trade, the moratoria on new drilling in the Gulf, the general antipathy to new fossil fuel exploitation coupled with new finds of vast new reserves, the new financial regulations, an aggressive EPA oblivious to the effects of its advocacy on jobs, the threatened close-down of energy plants, the support for idling thousands of acres of irrigated farmland due to environmental regulations, the constant talk of higher taxes, the needlessly provocative rhetoric of “fat cat”, “millionaires and billionaires,” “corporate jet owners,” etc. juxtaposed, in hypocritical fashion, to Martha’s Vineyard, Costa del Sol, and Vail First Family getaways — all of these isolated strains finally are becoming a harrowing opera to business people.
  • “This bunch doesn’t like me much and I’m going to hunker down, hoard my cash, and sit out the next year and a half until they are gone.”
  • And the administration’s efforts to counteract these symbols and impressions by courting a high-profile, hyper-capitalist Warren Buffett, or a GE CEO Jeffrey Immelt have proven even more ironic:
  • ...3 more annotations...
  • the former calls for higher taxes that his firms seek to avoid, or targets his post-mortem wealth to (more efficient?) private foundations that rob the Treasury of billions in lost inheritance taxes, or knows higher taxes won’t much matter to his tens of billions in net worth;
  • the latter’s firm paid no 2010 U.S. income taxes on many of its profits and outsourced jobs overseas.
  • Borrow another $5 trillion?
  • Gary Edwards on 07 Sep 11
     
    Nobody lays it out so quickly and too the point as VDH..... awesome summary of sweeping reach.  I've been hesitant to apply the term "crony capitalism" to Obama even though his Bankster relationships and continuing bailouts scream loudly.  It seems to me that the term "crony socialism" better fits the full range of fascist power brokering Obama engages in.  Big Government, Big Banksters, Big Unions, Big Media, Big Education.  If anything, Obammunism is BIG! VDH excerpt: Here is the lament I heard: the near $5 trillion in borrowing in just three years, the radical growth in the size of the federal government and its regulatory zeal, ObamaCare, the Boeing plant closure threat, the green jobs sweet-heart deals and Van Jones-like "Millions of Green Jobs" nonsense, the vast expansion in food stamps and unemployment pay-outs, the reversal of the Chrysler creditors, politically driven interference in the car industry, the failed efforts to get card check and cap and trade, the moratoria on new drilling in the Gulf, the general antipathy to new fossil fuel exploitation coupled with new finds of vast new reserves, the new financial regulations, an aggressive EPA oblivious to the effects of its advocacy on jobs, the threatened close-down of energy plants, the support for idling thousands of acres of irrigated farmland due to environmental regulations, the constant talk of higher taxes, the needlessly provocative rhetoric of "fat cat", "millionaires and billionaires," "corporate jet owners," etc. juxtaposed, in hypocritical fashion, to Martha's Vineyard, Costa del Sol, and Vail First Family getaways - all of these isolated strains finally are becoming a harrowing opera to business people.
Joseph Skues

We're Not Broke: Congress -Here's $400 Billion In New Annual Revenue « SpeakEasy - 0 views

blogs.alternet.org/...400-billion

not broke we're congress TAXES SNYDER

shared by Joseph Skues on 08 Apr 11 - Cached
  • Congress has blown holes in our tax code, losing hundreds of billions in revenue. Worse, lawmakers have averted their eyes as corporate lobbyists drill new tax loopholes and extract new corporate welfare subsidies.
  • How else can we explain how a profitable company like General Electric pays no taxes?
  • Other huge global companies such as Verizon, Boeing, ExxonMobil, and Bank of America also pay no taxes.
  • ...11 more annotations...
  • They pretend to earn their profits offshore and then report their paper losses here in the United States–so they don’t have to pay the IRS a dime.
  • f U.S. millionaires and billionaires paid taxes based on 1961 tax rules, we would have raised an additional $231 billion in federal revenue this year.
  • By reversing years of tax giveaways to America’s rich and the corporations that enrich them, Congress could raise trillions in revenue. We could fund the public structures that safeguard our families and our future.
  • a modest financial transaction tax on the transfers of stock, currency, and speculative investments that do little to strengthen the real economy
  • reduce corporate tax dodging by closing overseas tax havens and requiring companies to pay U.S. taxes on the profits they actually earn in this country. This could generate as much as $100 billion a year.
  • new top tax rates on households with annual incomes over $1 million, which could generate another $100 billion a year.
  • a progressive estate tax on fortunes over $5 million, with higher rates on billionaire estates. That would generate $45 billion a year.
  • aking all four of these straightforward steps could raise a total of approximately $400 billion per year.
  • But that doesn’t mean we’re broke. It just means we need to get our priorities straight.
  • Originally Published in OtherWords.
  • Senior scholar at the Institute for Policy Studies where I direct the Program on Inequality and the Common Good (www.ips-dc.org/inequality). Co-founder of Wealth for the Common Good (www.wealthforcommongood.org). Co-author with Bill Gates Sr. of Wealth and Our Commonwealth: Why America Should Tax Accumulated Fortunes. Co-author with Mary Wright of The Moral Measure of the Economy.
  • Joseph Skues on 08 Apr 11
     
    Here is the proof we are well off and not broke.
Paul Merrell

India now world's 3rd largest economy, behind just US, China - Financial Express - 0 views

www.financialexpress.com/...1245626

economy world-ranking U.S. China India World-Bank

shared by Paul Merrell on 18 May 14 - No Cached
  • India is now the world's third largest economy in terms of purchasing power parity, ahead of Japan and behind the US and China which hold the top two spots. This was revealed by the 2011 round of the World Bank's International Comparison Program (ICP) released on Tuesday. "The United States remained the world’s largest economy, but it was closely followed by China when measured using PPPs. India was now the world’s third largest economy, moving ahead of Japan," the report said. (Read report) It highlighted the fact that the largest economies were not the richest, as shown in the ranking of GDP per capita. The middle-income economies with large economies also had large populations, setting the stage for continued growth, it added.
Paul Merrell

The US's Vicious Colonial War - LewRockwell.com - 0 views

www.lewrockwell.com/...the-uss-vicious-colonial-war

war & peace U.S.-foreign-policy Afghanistan war-on-drugs™

shared by Paul Merrell on 03 Nov 14 - No Cached
  • The last British soldiers were airlifted out of Afghanistan last week, marking the sorry end of Britain’s fourth failed invasion of Afghanistan. With them went the last detachment of US Marines in Helmand. Well has Afghanistan earned its title, “Graveyard of Empires.” To be more precise, this honor belongs to Afghanistan’s Pashtun (or Pathan) mountain tribes, who bend their knees for no man and take pride in war.
  • The US garrison in Kabul will continue to make Afghanistan safe for opium, which is the base for heroin. Americans have simply turned a blind eye to their ownership if the world’s top producer of heroin. As Washington orates about the so-called War on Drugs, Afghan opium production rose in 2013 from $2 billion to $3 billion. The UN says over 500,000 acres of land in Afghanistan are now devoted to the opium poppy – right under the eyes of the US garrison. While US-installed rulers in Kabul pay lip service to opium eradication, the rural warlords who support them, and receive stipends from CIA, continue to grow rich on the opium trade. Trying to blame Taliban for the scourge of opium is dishonest: when Taliban was in power it eradicated almost all of the nation’s opium production, reported he UN Drug Agency, except in the region controlled by the Communist Northern Alliance – which today shares power in Kabul. When the full history of the Afghan war is finally written, CIA’s involvement in that nation’s drug trade will become a notorious episode. French intelligence became deeply involved in the Laotian opium trade to pay its Lao mercenaries. The US was up to its ears with its Contra allies in the Central American cocaine trade.
  • Any native “disturbance” would be bombed and strafed by the RAF. In the 1920’s, Winston Churchill authorized RAF to use poison gas bombs against restive Pashtun and Kurdish tribesmen. Ironically, seven decades later I discovered British scientists who had been sent by HM government to Iraq to build germ weapons for Saddam Hussein to use against Iran. Similarly, the “Pax Americana” will be enforced by US airpower based at Bagram. US warplanes flying from Bagram, Qatar, and aircraft carriers on 24 hour call have been the only force keeping the Pashtun movement Taliban at bay. Without intense employment of US air power, western occupation forces, like the Imperial British armies before them, would have been driven from Afghanistan. Without US air power, garrison troops and large numbers of “civilian contractors” and old-fashioned mercenaries the Kabul puppet regime would soon be swept away. Afghanistan’s government army is likely to collapse as quickly as Iraq’s did before ISIS. Most of southern Afghanistan would declare for Taliban which, however harsh, is the nation’s only authentic political movement apart from the Tajik and Uzbek Communists in the north.
  • ...3 more annotations...
  • The old imperialists are gone, but the occupation of Afghanistan continues. The new regime in Kabul just installed by Washington to replace uncooperative former ally Hamid Karzai, rushed to sign an “agreement” allowing the United States to keep some 10,000 soldiers in Afghanistan for years. This garrison will be exempt from all Afghan laws. However, there’s much more to this arrangement. The US combat troops, tactfully labeled “trainers” or “counter-terrorist forces,” are too few in number to dominate all Afghanistan. Their task is to defend Kabul’s sock puppet government from its own people and to defend the all-important US Bagram airbase. Washington clearly plans to continue ruling Afghanistan and Iraq the same way that the British Empire did. Small numbers of British troops garrisoned the capital; white officers led the native mercenary army. But Britain’s real power was exercised by RAF units based in Iraq and Northwest Frontier Province.
  • Now, US intelligence has besmirched its name once again aiding and abetting Afghan drug lords so as to supposedly wage war on “terrorists.” In dirt-poor Afghanistan, there are only two sources of income: money from Washington, and from narcotics. The collusion of senior members of government, military and police is necessary to export tons of opium to either Pakistan, Central Asia or Russia – where morphine addiction is now a major epidemic. Adding to this shameful record, the US Congressional auditor for Special Reconstruction of Afghanistan just reported that much of the $104 billion appropriated for Afghan “reconstruction” has to no surprise been wasted or stolen. Some of it has been used to irrigate opium poppy fields. Spare parts are unavailable for Russian helicopters bought by the US for use in battling Taliban and supposed opium fighting. Why? Because the US-imposed trade sanctions on Russia bars the US from buying the spare part. Catch-22.
  • By now, the longest war in US history has cost some $1 trillion, maybe more. No one can properly account for the billions and billions of US dollars flown into Afghanistan and Iraq and dished out to the natives – or the numbers of Afghans killed. For Washington’s allies, like Canada and Britain, the war has been a total waste of lives and treasure. For Canada, 158 dead for nothing; for Britain 453. Forget all the phony claims about “mission” and “nation building.” This has been yet another dirty little colonial war that is better forgotten – and never repeated. So this war will simmer on, at least until Washington finds some face-saving way out of the mess in the Hindu Kush. If the US was wise, it would simply quit Afghanistan. But power, like opium, is highly addictive. So America’s longest war will drag on and on.
Paul Merrell

Iran's Political Infighting Intensifies | nsnbc international - 0 views

nsnbc.me/...litical-infighting-intensifies

Iran Rouhani Ahmadinejad Khamenei corruption prosecution litigation

shared by Paul Merrell on 22 Nov 14 - No Cached
  •  Former Iranian President Mahmoud Ahmadinejad’s intention to run for a seat in the Majlis, the country’s unicameral legislature, isn’t sitting well with his opponents, led by current President Hassan Rouhani.
  • For the past several months, Rouhani’s team has been availing itself of the levers of power to prevent Ahmadinejad from returning to public life. Rouhani’s operatives have been using targeted strikes against Ahmadinejad’s inner circle, without hurting him directly for the time being. Accusations of incompetence and corruption are being levied, and the current Iranian administration says those factors are the primary reason for the country’s dire economic straits.
  • They single out former First Vice President Mohammad Reza Rahimi. He is accused of using his high-level government position to pressure leaders of the National Insurance Company, forcing them to transfer large sums of US currency to accounts under his control. On September 30, Iranian authorities formally indicted Rahimi, charging him with embezzling public funds. Taking Iran’s decision-making structure into account, Rouhani first enlisted the support of Iran’s Supreme Leader Ayatollah Ali Khamenei before setting out after one of Ahmadinejad’s closest associates. Another prominent person who has come under criminal investigation is Iranian multimillionaire Babak Zenjani, the owner of numerous companies and assets. His net worth, according to Western experts, is estimated at nearly $14 billion. During Ahmadinejad’s presidency, shady contracts for the sale of crude oil were funneled through Zenjani to skirt sanctions on shell corporations. This was necessary to supplement the country’s budget. According to the testimony of Iranian Oil Minister Bijan Namdar Zangene, Zenjani owes his agency $2.7 billion, which was transferred to Malaysia‘s First Islamic Investment Bank. The money was earmarked to pay contractors for their work in Iran’s oil refining sector. Zenjani is also accused of not paying back a large amount of money he obtained from black-market oil transactions, a sum of about several billion dollars. As for Zenjani himself, he says that Western sanctions are to blame. Because of the sanctions a portion of the money “is stuck” in foreign banks, he says.
  • ...1 more annotation...
  • The unfolding scandal surrounding the alleged misuse of funds allocated for construction of affordable housing for low-income families, a program also known as Mehr, could deal another blow to Ahmadinejad. Opponents of the former president are demanding a thorough probe, claiming that he stole tens of billions of dollars. External observers say reformers led by Rouhani are using the attacks to try to weaken the conservatives’ influence on politics and the economy. We can expect that in the time leading up to the next parliamentary elections, which are slated for March 2016, Iran‘s political infighting will not only worsen but also may present some unexpected surprises.
Paul Merrell

43 US Senators 'Alarmed' by Reports of Iran Deal - News from America - News - Arutz Sheva - 0 views

www.israelnationalnews.com/...187727

war & peace Iranian-nukes-myth Iran-negotiations U.S.-foreign-policy Congress

shared by Paul Merrell on 23 Nov 14 - No Cached
  • In a scathing two-page letter by 43 Republican senators to US President Barack Obama dated this Wednesdasy, the senators, led by Mark Kirk and Marco Rubio, warned that they were "alarmed" by reported plans to bypass Congress and reach a nuclear deal with Iran. The senators were alarmed at "reports that your administration plans to circumvent Congress and unilaterally provide significant sanctions relief under a comprehensive nuclear agreement with Iran.” US Secretary of State John Kerry insisted Wednesday that the US and Iran would reach a nuclear deal by November 24, indicating the stage may be set for a titanic battle between the Obama Administration and the incoming Republican-majority US Senate on the exact terms of any Obama-Iran nuclear deal. Most noticeably absent from the signatories to the senators' missive was Senator Rand Paul, who has a history of not signing any pro-Israel letters. By contrast Senator Ted Cruz, Paul’s likely Republican nomination presidential contender, was a signatory to the Rubio-Kirk Letter.
  • The Senate Republican letter goes on to state, “Reported plans to circumvent Congress suggest that your negotiators may be concluding a weak and dangerous deal which...would ensure the ultimate failure of any agreement, and runs directly counter to Secretary of State John Kerry's April 2014 statement to the Senate that your administration was absolutely obligated by law to come back to Congress in order to lift sanctions as part of the final deal with Iran.” Arutz Sheva reported in October that Ben Rhodes, a senior White House adviser, had been secretly taped bragging that a nuclear deal with Iran was Obama’s foreign-policy “signature” equivalent of “ObamaCare,” and that they working to structure a deal that would evade any congressional approval or ratification.
  • With the Republicans poised in control of the US Senate for the next two years, the Republican senators threatened that “unless the White House genuinely engages with Congress, we see no way that any agreement consisting of your administration's current proposals to Iran will endure the 114th Congress and after your presidential term ends.”
  • Paul Merrell on 23 Nov 14
     
    The weakness in the argument is that Congress gave Obama discretion to impose or withdraw the sanctions, hence he needs no legislation to lift them. 
Paul Merrell

Progressives put Sanders ahead of Clinton - 0 views

www.burlingtonfreepress.com/...19352673

Auction 2016 progressives polls Sanders Warren Hillary

shared by Paul Merrell on 21 Dec 14 - No Cached
  • November 21, 2014
  • Sen. Elizabeth Warren is progressives' runaway favorite for president in 2016, with Sen. Bernie Sanders in second place, a new poll shows.Sanders, I-Vt., who says he's considering a presidential run, edged out former Secretary of State Hillary Rodham Clinton, 24 percent to 23 percent, according to Democracy for America's first 2016 Presidential Pulse poll of its members.More than 42 percent of respondents wanted Warren to run for president, although she has said she's not running. Warren's strong showing wasn't a surprise, but Sanders' placement ahead of Clinton shows "the race for the Democratic nomination is far from locked" among progressives, according to the group, founded by former Vermont Gov. Howard Dean."If they decide to get in the race, our poll clearly shows that any number of candidates could win Democracy for America members' support, especially if they focus their campaign on combatting income inequality, the driving issue of the 2016 campaign," Charles Chamberlain, DFA's executive director said in a statement.
  • From Nov. 6-to18, the group's members cast 164,733 votes for potential candidates, with members able to rank their votes for up to three potential candidates. The group released a portion of the poll on Thursday.Behind Clinton came former Secretary of Labor Robert Reich at 3 percent and Vice President Joe Biden at 2 percent.
  • Paul Merrell on 21 Dec 14
     
    Note that this is a poll in a group that is loyal to the Democratic Party and confines itself to voting Democrat in the main elections. As such, their influence is negligible. Progressives who are willing to run spolier campaigns as independents, like Ralph Nader have far more potential to move the Democratic Party than those who stay within its fold.  Ditto for Tea Partiers and the Republican Party. What's needed is a coalition to form a new party based on areas of agreement, rather than the divide-and-conquer split between the two major "parties" that guarantees a bankster/War Party win. 
Paul Merrell

Bank Of America's $17 Billion Mortgage Crisis Settlement Could Be A Total Bust | ThinkP... - 0 views

thinkprogress.org/...bank-of-america-deal-shrinkage

economic-collapse litigation BoA settlement criminal-fraud

shared by Paul Merrell on 11 Aug 14 - No Cached
  • Bank of America has agreed to a legal settlement with the Department of Justice (DOJ) to avoid prosecution for the hundreds of billions of dollars in bad mortgage loans that it and its subsidiaries sold to unwitting investors in the run-up to the financial crisis, according to multiple new reports. The total on-paper cost of the deal is reportedly at least $16 billion and perhaps as high as $17 billion, which makes it the largest corporate legal settlement with the government in U.S. history. But that record price tag is deceptive. The deal is unlikely to cost Bank of America anywhere close to that amount.
  • “If you let a thief buy his way out of jail, you should really make sure the check doesn’t bounce,” HDL national campaign director Kevin Whelan said in an email. “Even a record $17 billion settlement is a small fraction of the damage done by B of A and Countrywide. But it could do real good for a lot of families,” Whelan said. “The fact that the JP Morgan Chase settlement has not delivered any noticeable relief to families makes us skeptical.”
  • the government’s decision to pursue civil settlements rather than criminal cases against banks that inflated the toxic mortgage bubble means that shareholders pay the price while executives who oversaw the misconduct earn large bonuses.
  • ...2 more annotations...
  • Even at face value, the reported settlement is minuscule compared to the harm caused by Bank of America companies. The on-paper cost of the deal is less than 7 percent of the value of the mortgage deals Bank of America and its subsidiaries Countrywide and Merrill Lynch made before the crisis that have since gone bad. (Bank of America bought Countrywide and Merrill Lynch at the height of the crisis.) Those three companies issued just shy of a trillion dollars in mortgage-backed securities in the run-up to the financial collapse, and $245 billion of those products have gone bad, according to Bloomberg. Bank of America had pushed for a much smaller settlement for months, arguing that it should not have to pay for the sins of the firms it bought at bargain-bin prices when the economy was reeling. But a court ruling last month regarding Countrywide’s most notorious mortgage swindle caused the bank to change its tune, according to the New York Times. Judge Jed Rakoff ordered the bank to pay about $1.3 billion for one tranch of defective mortgages sold under a program that Countrywide nicknamed “Hustle” because of its fraudulent nature. Having lost one court case over Countrywide’s notorious misdeeds, the Times says, Bank of America decided to stop resisting federal officials’ settlement demands.
  • After tax deductions, the settlement could easily shrink below the roughly $15 billion in profits the company has reported since 2011. And because the financial crisis sucked something like $14 trillion out of the economy and destroyed tens of trillions of dollars in wealth for homeowners, the DOJ can hardly claim to have delivered a proportional response. The department’s claims about the Bank of America settlement are likely to draw political scrutiny. A bipartisan bill from Sens. Elizabeth Warren (D-MA) and Tom Coburn (R-OK) would require government officials to state the full tax deductibility and true cost of corporate legal settlements in all public statements about them. That bill, inspired by the revelations that JP Morgan’s sweetheart deal with the DOJ didn’t come close to the portrait that Attorney General Eric Holder painted of it, was passed out of committee late last month.
Paul Merrell

Richest 1% will own more than all the rest by 2016 - Oxfam | Blogs | Oxfam GB - 0 views

www.oxfam.org.uk/...more-than-all-the-rest-by-2016

income inequality

shared by Paul Merrell on 20 Jan 15 - No Cached
  • The combined wealth of the richest 1 per cent will overtake that of the other 99 per cent of people next year unless the current trend of rising inequality is checked, Oxfam warned today ahead of the annual World Economic Forum meeting in Davos. The international agency, whose executive director Winnie Byanyima will co-chair the Davos event,  warned that the explosion in inequality is holding back the fight against global poverty at a time when 1 in 9 people do not have enough to eat and more than a billion people still live on less than $1.25-a-day.
  • Wealth: Having it all and wanting more, a research paper published today by Oxfam, shows that the richest 1 per cent have seen their share of global wealth increase from 44 per cent in 2009 to 48 per cent in 2014 and at this rate will be more than 50 per cent in 2016. Members of this global elite had an average wealth of $2.7m per adult in 2014. Of the remaining 52 per cent of global wealth, almost all (46 per cent) is owned by the rest of the richest fifth of the world's population. The other 80 per cent share just 5.5 per cent and had an average wealth of $3,851 per adult - that's 1/700th of the average wealth of the 1 per cent.
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