History Readings

Clinton’s position is Netanyahu’s. And that’s important to understand. If you want a United States with no daylight between it and any Israeli government, whatever that government may do, vote for Clinton. If you want someone who believes the Libya intervention was the right thing to do, vote for Clinton. If you think America’s problem is not torture or drones or destabilizing occupations or debt but that we don’t tell the world how great we are enough, then vote for Clinton. If you really long for 2003 again, vote for Clinton.

isn’t it amazing that after the catastrophes of the Bush-Cheney era, both parties could effectively be running neocons for the presidency in 2016! Welcome to Washington – where the past is always present, amnesia is a lubricant, and the leading Democrat is running as a neocon.

“My comparison is to speed limits,” Ms. Admati said in an interview near the Stanford campus. “Basically what we have here is the market has decided nobody else should be driving faster than 70 miles an hour and these are the biggest trucks with the most explosive cargo and they are driving at almost 100 miles an hour.”

“At one level, the story on capital and liquidity ratios is very simple: From the viewpoint of the stability of the financial system, more of each is better,” he said. But the United States, he said, was constrained by practicality. If other countries aren’t willing to impose stricter capital requirements on their own banks — and they don’t appear to be — then unilateral increases would hurt the American banking industry and the broader economy.

“If you lower the speed limit on one highway, you’ll have fewer accidents on that highway,” he said. “But the other road will just get more crowded.”

Ms. Admati compares this logic to letting American manufacturers pollute so that they can compete more effectively with companies in China.

banks continue to rely on debt financing far more than other kinds of corporations. Last year, the eight largest American banks together derived less than 5 percent of their funding from shareholders, according to Thomas M. Hoenig, vice chairman of the Federal Deposit Insurance Corporation. The average equity financing for nonfinancial corporations was about 60 percent.

Ms. Admati argues that banks are taking larger risks than other kinds of companies because they use other people’s money, and the results are that they keep crashing the economy.

The industry’s more serious argument is that equity is more expensive than debt. If governments require banks to raise more equity, the industry warns, the results would be higher interest rates, less lending and slower economic growth.

an increase of 10 percentage points in capital requirements would raise interest rates by 0.25 to 0.45 percentage points.

This, in the view of Ms. Admati, is a small price to pay for fewer crises. She notes that debt is cheaper than equity largely because of government subsidies — not just deposit insurance but also tax deductions for interest payments on other kinds of debt — so more equity would basically transfer costs from taxpayers to banks

the economic impact may well be positive. A study last year by Benjamin H. Cohen, an economist at the Bank for International Settlements, found that banks with more capital tended to make more loans.

Ms. Admati says large banks should be required to raise at least 30 percent of their funding in the form of equity, about six times more than the current average for the largest American banks.

she says, banks should be required to suspend dividend payments, thus increasing their equity by retaining their profits, until they are sufficiently capitalized.

She freely concedes that there is no particular science behind her 30 percent equity figure. The point, she says, is that 5 percent is the wrong ballpark. The proper baseline, in her view, is what the market imposes on other kinds of companies.

“We have too much belief that we can be precise,” she said. “I don’t mean 20 percent. I don’t mean 30 percent. I mean add a digit. I mean a lot more.”

The other half agree that some jobs will disappear, but they are not convinced that new ones will take their place, even for some highly skilled workers. They fear a future of widespread unemployment, deep inequality and violent uprisings — particularly if policy makers and educational institutions don’t step in.

We’re going to have to come to grips with a long-term employment crisis and the fact that — strictly from an economic point of view, not a moral point of view — there are more and more ‘surplus humans.'  ”

“The degree of integration of A.I. into daily life will depend very much, as it does now, on wealth. The people whose personal digital devices are day-trading for them, and doing the grocery shopping and sending greeting cards on their behalf, are people who are living a different life than those who are worried about missing a day at one of their three jobs due to being sick, and losing the job and being unable to feed their children.”

“Only the best-educated humans will compete with machines. And education systems in the U.S. and much of the rest of the world are still sitting students in rows and columns, teaching them to keep quiet and memorize what is told to them, preparing them for life in a 20th century factory.”

“We hardly dwell on the fact that someone trying to pick a career path that is not likely to be automated will have a very hard time making that choice. X-ray technician? Outsourced already, and automation in progress. The race between automation and human work is won by automation.”

“Robotic sex partners will be commonplace. … The central question of 2025 will be: What are people for in a world that does not need their labor, and where only a minority are needed to guide the ‘bot-based economy?'  ”

“Employment will be mostly very skilled labor — and even those jobs will be continuously whittled away by increasingly sophisticated machines. Live, human salespeople, nurses, doctors, actors will be symbols of luxury, the silk of human interaction as opposed to the polyester of simulated human contact.”

The biggest exception will be jobs that depend upon empathy as a core capacity — schoolteacher, personal service worker, nurse. These jobs are often those traditionally performed by women. One of the bigger social questions of the mid-late 2020s will be the role of men in this world.”

To understand why this matters, you have to know a little bit about the many tribes within the world of economics.

There are the academic economists who study the forces shaping the modern economy. Their work is rigorous but often obscure. Some of them end up in important policy jobs (See: Bernanke, B.) or write books for a mass audience (Piketty, T.), but many labor in the halls of academia for decades writing carefully vetted articles for academic journals that are rigorous as can be but are read by, to a first approximation, no one.

Then there are the economists in what can broadly be called the business forecasting community. They wear nicer suits than the academics, and are better at offering a glib, confident analysis of the latest jobs numbers delivered on CNBC or in front of a room full of executives who are their clients. They work for ratings firms like S.&P., forecasting firms like Macroeconomic Advisers and the economics research departments of all the big banks.

they are trying to do the practical work of explaining to clients — companies trying to forecast future demand, investors trying to allocate assets — how the economy is likely to evolve. They’re not really driven by ideology, or by models that are rigorous enough in their theoretical underpinnings to pass academic peer review. Rather, their success or failure hinges on whether they’re successful at giving those clients an accurate picture of where the economy is heading.

worries that income inequality is a factor behind subpar economic growth over the last five years (and really the last 15 years) is going from an idiosyncratic argument made mainly by left-of center economists to something that even the tribe of business forecasters needs to wrestle with.

Because the affluent tend to save more of what they earn rather than spend it, as more and more of the nation’s income goes to people at the top income brackets, there isn’t enough demand for goods and services to maintain strong growth, and attempts to bridge that gap with debt feed a boom-bust cycle of crises, the report argues. High inequality can feed on itself, as the wealthy use their resources to influence the political system toward policies that help maintain that advantage, like low tax rates on high incomes and low estate taxes, and underinvestment in education and infrastructur

The report itself does not break any major new analytical or empirical ground. It spends many pages summarizing the findings of various academic and government economists who have studied inequality and its discontents, and stops short of recommending any radical policy changes

The thing to understand about racist "policy" is that it existed in consort with racist private policy, racist civic groups, and racist people.

public policy made private plunder possible. 

Massey and Denton demonstrate that African-Americans are not just another "ethnicity" on the come up, but the most hyper-segregated group in American history.

as if to balance Hamas’s blame for every single death in the conflict, Goldblog feels the need to chide the Israeli prime minister for his “mistake” in having utter contempt for any two-state solution. “Mistake” is an interesting word to use. It implies a relatively minor slip-up, a miscalculation, a foolish divergence from sanity. But it is perfectly clear to anyone not always finding excuses for the Israeli government that Netanyahu wasn’t making a mistake. He was simply reiterating his longstanding view that Israel will never, ever allow a sovereign Palestinian state to co-exist as a neighbor. And unless you understand that, nothing he has done since taking office makes any sense at all. Everything he has said and done presupposes permanent Greater Israel. And he is not some outlier. Israel’s entire political center of gravity is now firmly where Netanyahu is. The rank failure of the peace process simply underlines this fact. As do half a million Jewish settlers and religious fanatics on the West Bank.

Since the whole idea of a two-state solution is as dead as the infamous parrot, why on earth are Americans still pursuing it? I think because many want Israel to be other than what it plainly is. They understand that this project of a bi-national state with Jim Crow segregation and disenfranchisement is a horrible fate. Jeffrey is as eloquent on this today as he has ever been: If Netanyahu has convinced himself that a Palestinian state is an impossibility, then he has no choice but to accept the idea that the status quo eventually brings him to binationalism, either in its Jim Crow form—Palestinians absorbed into Israel, except without full voting rights—or its end-of-Israel-as-a-Jewish-state form, in which the two warring populations, Jewish and Arab, are combined into a single political entity, with chaos to predictably ensue. But this is clearly the reality. The Obama administration was the last hope for some kind of agreement, and the Israelis have told the president to go fuck himself on so many occasions the very thought of accommodation is preposterous. With the acceleration of the settlements, and the ever-rising racism and religious fundamentalism in Israel itself, this is what Israel now is.

This is what really put Israel’s occupation and settlement of the West Bank in perspective for me: Israel has possessed the West Bank for almost precisely the same proportion of its national existence as the United States has possessed Texas and California. About seven-tenths

the United States would first have to become an existentially different nation before it would even consider peaceably permitting California and Texas to leave the union. Just so with Israel

Despite protestations otherwise, possession of the West Bank has become a fundamental and existential part of the character of Israeli nationhood. Possession of the West Bank is not temporary, it is not contingent, and it is not an exception to the general rule of the character of Israeli nationhood. Occupation and settlement are as central to the Israeli nation, its politics and culture, as burritos, Hollywood, and Sunbelt conservatism are to American politics, culture, and national identity.

It also helps distract from the fact that Hamas itself did not kill the three Israeli teens which was the casus belli for the latest Israeli swoop through the West Bank; that Netanyahu had called for generalized revenge in the wake of the killings, while concealing the fact that the teens had been murdered almost as soon as they had been captured; and that Israeli public hysteria, tapping into the Gilad-like trauma of captivity, then began to spawn increasingly ugly, sectarian and racist acts of revenge and brutality.

in this instance, there is no equivalence. One side deliberately and deceptively instigated absolutely unjustified collective punishment of an entire population, and pre-meditatedly whipped up nationalistic and racist elements to back them up. They then went on to bombard Gaza – and many civilians – into another submission – after a period of relative calm and peace. The result is another disproportionate slaughter: around 100 Palestinians dead so far, and no Israelis. If you see nothing wrong with this, your moral compass is out of whack.