War on the Poor Continues With Planned Pension Cuts in Detroit and Illinois

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Yesterday Federal bankruptcy court judge Steven Rhodes ruled that Detroit is insolvent and eligible for a Chapter 9 debt restructuring. This gives the city the go-ahead to cut retirement benefits as part of its restructuring plan, despite pensions being explicitly protected by the state constitution.

Learn more about the situation in Detroit at Detroit Inquiry.

Judge Rhodes’s decision serves as a precedent for city and state governments across the country to carry out a similar policies. Just hours after the Detroit ruling, both chambers of the Illinois legislature also passed an unconstitutional pension reform bill that would steal money from the pension plans Illinois state workers paid for, reduce and suspend cost-of-living increases and limit their salaries.

Such acts of class warfare demonstrate how the government/corporate machine views the 99% as merely a source of wealth and cannon fodder. Once they find cheaper labor and more prosperous markets elsewhere and once soldiers return home after fighting their wars, we’re worth even less to them. Judging from their actions, the corporatocracy has no loyalty, trust and respect for us. Why should we give them any loyalty, trust and respect if it’s not reciprocated?

Detroit Bankruptcy Timeline:

2011

March 16: Michigan’s Public Act 4 emergency manager law goes into effect.

Nov. 16: Detroit Mayor Dave Bing says the city could run out of cash by April 2012 and have a potential shortfall of $45 million by the end of the fiscal year June 30.

Dec. 2: State Treasurer Andy Dillon orders a preliminary financial review of Detroit. The move sparks protests against Michigan Public Act 4, the emergency manager law that expanded EM powers.

Dec. 21: Dillon announces “probable financial stress” in Detroit and recommends Snyder send a team to review city finances.

2012

Jan. 10: Former State Treasurer Andy Dillon gives Mayor Dave Bing until the first week of February to submit a financial plan to avoid an emergency manager.

March 13: A 25-page proposed consent agreement is given to the City Council.

March 21: A state review team declares Detroit in a “severe financial emergency.”

March 23: The Michigan Court of Appeals reverses an Ingham County judge’s ruling that barred the state from entering a consent agreement with Detroit.

April 4: The City Council, 5-4, approves a consent agreement.

April 5: Gov. Rick Snyder and Bing sign the agreement.

June 15: A nine-member oversight board created under the consent agreement holds its first meeting.

Aug. 2: A proposed repeal of Public Act 4 is placed on the Nov. 6 ballot and the law immediately is suspended. Public Act 72, the prior 1990 law that grants fewer powers to emergency financial mangers, is reinstated.

Nov. 7: Public Act 4 is repealed in the general election.

Dec. 10: Detroit’s Financial Advisory Board calls for a 30-day review of the city’s finances under Public Act 72.

Dec. 14: A state review of Detroit finances finds “a serious financial problem.”

Dec. 27: Snyder signs a new emergency manager bill, Public Act 436, which is to take effect March 28.

2013

Jan. 3: An audit shows Detroit has a $327 million accumulated deficit as of June 30.

Feb. 19: A state team reviewing Detroit’s finances determines the city is in a financial emergency with “no satisfactory” plan to resolve it.

March 1: Snyder announces plans to bring an emergency manager to Detroit.

March 9: The council makes a formal request for an appeal hearing in Lansing.

March 12: Detroit officials fail to convince the state’s Emergency Loan Board that a satisfactory plan in place to address Detroit’s fiscal crisis without an emergency manager.

March 14: Snyder appoints Kevyn Orr as Detroit emergency manager. He takes office March 25 for the job, which pays $275,000 per year. State officials hope he can complete his job within 18 months.

March 26: Public Act 436 goes into effect and opponents file a lawsuit in U.S. District Court in Detroit, arguing the legislation deprives citizens of “constitutionally protected rights” and dilutes their vote.

May 13: Orr submits a preliminary financial and operating plan to the state Treasury Department, saying Detroit’s cash-flow crisis makes it “insolvent.”

June 14: Orr unveils to creditors his plans to restructure the city’s finances and avoid bankruptcy.

June 20: Orr holds closed-door meetings with union officials to discuss a restructuring proposal that includes health care and pension cuts and launches a probe of the city’s pension funds amid concerns about corruption, spending and management.

July 5: The city files a lawsuit against Syncora Guarantee Inc., in an attempt to recover $11 million a month in casino payments and taxes that Detroit claims are being improperly withheld by the insurance company.

July 15: Orr submits a quarterly financial report to the state saying the city’s financial condition “continues to be dire.”

July 17: The city’s two pension funds sue Snyder July 17 to block him from authorizing what would be the biggest municipal bankruptcy in U.S. history on claims it would violate retirees’ constitutional right to a pension.

July 18: Orr files a petition for municipal bankruptcy in U.S. District Court’s Eastern District in Detroit.

July 19: The case is assigned to U.S. Bankruptcy Judge Steven Rhodes.

July 24: Rhodes freezes all lawsuits against the city challenging the legality of Detroit’s bankruptcy filing.

Aug. 2: Rhodes creates a committee to represent city retirees.

Aug. 5: Orr announces he has contracted with Christie’s, the New York-based international auction house, to appraise the collection of the Detroit Institute of Arts.

Aug. 13: Chief U.S. District Judge Gerald Rosen is appointed to mediate disputes between the city and creditors.

Sept. 26: An audit commissioned by Orr reveals the city’s pension funds lost more than $125 million on real estate deals and gave questionable bonus payments to employees.

Oct. 9: Gov. Rick Snyder is questioned under oath about his decision to authorize the largest municipal bankruptcy in U.S. history. Snyder is the first sitting governor in modern Michigan history to face a sworn deposition.

Oct. 11: Orr announces the city has secured a $350 million loan agreement with Barclays to pay off a pension related-debt and finance city service improvements while Detroit is in bankruptcy.

Oct. 15: In a report to Dillon, Orr says the city’s financial condition remains dire but cash flow improved during the first quarter since the bankruptcy filing.

Oct. 25: Detroit’s eligibility trial begins before Judge Rhodes in Detroit’s federal courthouse.

Nov. 6: Judge Rhodes denies the NAACP’s request to pursue a lawsuit against Gov. Rick Snyder’s administration over the constitutionality of the emergency manager law.

Nov. 8: The city’s nine-day eligibility trial ends.

Nov. 8: Orr postpones a proposed health care initiative for retirees until Feb. 28 under an agreement with the city and retiree committee created through bankruptcy proceedings.

Nov. 13: A city union representing Detroit’s EMTs reaches a five-year, out-of-court contract agreement with Orr.

Nov. 25: Rhodes in a court filing announces he will decide Dec. 3 whether Detroit can proceed with its Chapter 9 bankruptcy filing.

Nov. 26: A group of creditors ask for an independent evaluation of the Detroit Institute of Arts collection.

Nov. 27: Judge Rhodes halts Detroit’s efforts to fix its broken streetlight system after discovering one of the city’s law firms involved in the bankruptcy case also represents the new Public Lighting Authority, a potential conflict of interest.

Nov. 27: A trial over Detroit’s plan to seek a $350 million bankruptcy loan is pushed back amid new objections by creditors. Judge Rhodes and attorneys representing the city and several creditors agreed in principle to delay the trial to Dec. 17-19.

Dec. 3: Rhodes delivers decision on bankruptcy eligibility.

(Timeline: Associated Press)

Economic Bubbles Take From the Poor, Give to the Rich

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At the Economic Populist Blog, Robert Oak posted an excellent analysis of the Pew Research report, A Rise in Wealth for the Wealthy; Declines for the Lower 93%, based on Census data on wealth taken since the so-called economic recovery after 2009. Oak highlighted one of the most important findings of the report:

During the first two years of the nation’s economic recovery, the mean net worth of households in the upper 7% of the wealth distribution rose by an estimated 28%, while the mean net worth of households in the lower 93% dropped by 4%.

In other words, what the report shows is that there was never an economic recovery for most people other than the wealthy 1%. The economic bubble and resultant policies effectively served as a mechanism to transfer wealth from the poor to the wealthy.

According to Michael Snyder at the Economic Collapse blog, it’s extremely likely that we’re about to witness another massive transfer of wealth to the 1% judging from the following 15 signs:

#1 Bob Shiller, one of the winners of this year’s Nobel Prize for economics, says that “bubbles look like this” and that he is “most worried about the boom in the U.S. stock market.”

#2 The total amount of margin debt has risen by 50 percent since January 2012 and it is now at the highest level ever recorded.  The last two times that margin debt skyrocketed like this were just before the bursting of the dotcom bubble in 2000 and just before the financial crisis of 2008.  When this house of cards comes crashing down, things are going to get very messy

“When the tablecloth gets pulled out from under the place settings, you’re going to have a lot of them crash and smash on the floor,” said Uri Landesman, president of Platinum Partners hedge fund. “That margin’s going to get pulled and everyone’s going to have to cover. That’s when you get really serious corrections.”

#3 Since the bottom of the market in 2009, the Dow has jumped 143 percent, the S&P 500 is up 165 percent and the Nasdaq has risen an astounding 213 percent.  This does not reflect economic reality in any way, shape or form.

#4 Market research firm TrimTabs says that the S&P 500 is “very overpriced” right now.

#5 Marc Faber recently told CNBC that “we are in a gigantic speculative bubble”.

#6 In the United States, Google searches for the term “stock bubble” are at the highest level that we have seen since November 2007 – just before the last stock market crash.

#7 Price to earnings ratios are very high right now…

The Dow was trading at 17.8 times the past four quarters of earnings of its 30 components, according to The Wall Street Journal on Friday. That was up from 13.7 times its earnings a year ago. The S&P 500 is trading at 18.7 times earnings. The Nasdaq-100 Index is trading at 21.5 times earnings. At the very least, the ratios are signaling that stock prices are rich.

#8 According to CNBC, Pinterest is currently valued at more than 3 billion dollars even though it has never earned a profit.

#9 Twitter is a seven-year-old company that has never made a profit.  It actually lost 64.6 million dollars last quarter.  But according to the financial markets it is currently worth about 22 billion dollars.

#10 Right now, Facebook is trading at a valuation that is equivalent to approximately 100 years of earnings, and it is currently supposedly worth about 115 billion dollars.

#11 Howard Marks of Oaktree Capital recently stated that he believes that “markets are riskier than at any time since the depths of the 2008/9 crisis”.

#12 As Graham Summers recently noted, retail investors are buying stocks at a level not seen since the peak of the dotcom bubble back in 2000.

#13 David Stockman, a former director of the Office of Management and Budget under President Ronald Reagan, believes that this financial bubble is going to end very badly

“We have a massive bubble everywhere, from Japan, to China, Europe, to the UK.  As a result of this, I think world financial markets are extremely dangerous, unstable, and subject to serious trouble and dislocation in the future.”

#14 Bob Janjuah of Nomura Securities believes that there “could be a 25% to 50% sell off in global stock markets” over the next couple of years.

#15 According to Tyler Durden of Zero Hedge, the U.S. stock market is repeating a pattern that we have seen many times before.  According to him, we are experiencing “a well-defined syndrome of ‘overvalued, overbought, overbullish, rising-yield’ conditions that has appeared exclusively at speculative market peaks – including (exhaustively) 1929, 1972, 1987, 2000, 2007, 2011 (before a market loss of nearly 20% that was truncated by investor faith in a new round of monetary easing), and at three points in 2013: February, May, and today.”

Read the full article here: http://theeconomiccollapseblog.com/archives/15-signs-that-we-are-near-the-peak-of-an-absolutely-massive-stock-market-bubble

Anonymous Calls for Worldwide Wave of Action #www

Via: Anonymous

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The modern paradigm may still seem insurmountable “because it possesses an outward front, the work of a long past, but is in reality an edifice crumbling to ruin and destined to fall in at the first storm.”
— Gustave Le Bon, The Crowd: A Study of the Popular Mind

The decentralized movement toward freedom is raging across the world. It cannot be stopped. The tipping point is near. Despite the lack of coverage in the mainstream media, actions are springing up on an increasing basis. A wave of transformation is rising. The zeitgeist is shifting in our direction.

At this point, given all the nonviolent direct actions that are currently being planned, it makes strategic sense for us to organize them, in a decentralized way, in a way that the mainstream media cannot ignore. A slightly more coordinated approach is all it will take.

The Awakening Wave

The last time we all rallied together in a loosely knit collective fashion, the Occupy movement was born and the 99% meme brought the corruption of our political and economic system, along with the grotesque inequality of wealth, into mass consciousness in a profound and lasting way. It was the opening act, the awakening wave.

Since the Occupy camps were crushed by brutal police state force, the movement has splintered in many different directions. This is now proving to have been a blessing in disguise. It gave us time to learn from our mistakes, figure out what worked best and forced us back into the autonomous actions that built the movement in the first place. We have now experimented with different tactics and thought through longer-term strategies.

Meanwhile, the repressive conditions that inspired Occupy in the first place have become even more oppressive. Now more than ever, governments no longer have the consent of the governed. A critical mass has lost faith and trust in our existing institutions. The present paradigm has outlived its usefulness. It has been overrun with corruption and rendered obsolete. Our political, economic and legal systems are doing much more to limit our potential than enhance it.

It’s Time For A Worldwide Wave of Transformation

Let’s pick a three-month span, perhaps throughout this coming spring, and unite our collective actions into an unprecedented Worldwide Wave that cannot be ignored by anyone.

Let’s crowdsource a relentless global wave of action that protests the corrupt, while also rallying around and celebrating effective alternatives and solutions to the vast problems we are confronted by. Imagine thousands of nonviolent guerrilla armies swarming corrupt targets and rallying for viable solutions for a sustained three-month cycle. If we begin preparing now, a massive spring offensive can lead to a summer of transformation.

Staying true to the vital nature of the movement, you lead, in your own way. Pick whatever issues concern you most and run with them, knowing that likeminded people throughout the world will also be fighting in solidarity, in whatever way they can, at the same time you are.

Not Focused Enough?

In an attempt to dismiss and undermine us, status quo propagandists will once again criticize us by saying that our message of systemic change is not focused enough or lacks coherent goals. This feeble attempt to keep people from joining in with us will be overcome by our widespread and consistent actions, which will lead by example and inspire the cultural shift in mass consciousness that we urgently need. Our diverse crowdsourced actions will boldly demonstrate our will to expose, fight and overcome tyrannical systems. By rallying around viable solutions and protesting what we are against, the goals and freedoms that we aspire to will organically become self-evident to all.

Throughout history, when people have fought against tyranny and oppression, they didn’t have one perfect utopian model outcome agreed upon beforehand. They just knew that the invading and old systems were detrimental to their wellbeing and had to go. We are now in that position.

Don’t let the propagandists fool you. We do not need corrupt corporations or aristocratic government rulers anymore. They are obsolete. People throughout this interconnected technological world have already come up with much more effective systems to replace the tyrannical one that is currently dominating our lives. There are already many effective solutions to our problems, solutions that are held back by the entrenched forces of shortsighted greed. Once a small percentage of us withdraw our participation from corrupt entities and opt out of tyranny, the old and obsolete systems of rule will quickly fall away.

Extensive empirical evidence demonstrates that nonviolent movements toward freedom result in positive outcomes. Research has proven that it only takes approximately 3% of the population engaging in various forms of nonviolent action to create significant meaningful change, for the betterment of society. We now have the necessary critical mass of aware people who are ready, willing and capable.

Guerrilla Tactics

This time the police state will not be able to crush us. We will not have stationary targets. We will be everywhere, fluid and evasive. The movement will be an unstoppable crowdsourced, decentralized and autonomous revolutionary force.

We will engage in a diversity of nonviolent tactics, from large-scale mobilizations to small daily acts. Most of you already know the actions and tactics that are needed. Without revealing too much strategic information, here are a few basic actions to get a fire going in your mind:

-Mass gatherings, demonstrations;
-Marches, parades;
-Flash mobs, swarms;
-Shutdown harmful corporate and governmental operations;
-Worker Strikes;
-Hunger strikes;
-Sit-ins;
-Strategic defaults, debt strikes;
-Foreclosure prevention;
-Boycotting corrupt corporations;
-Monkeywrench corrupt corporations;
-Move your money out of the big banks and the stock market;
-Use alternative currencies and economic systems;
-Cancel your cable television and support independent media;
-Use independent online tools that don’t sell your info and protect your privacy;
-Online civil disobedience, Anonymous operations;
-Leak information on corruption;
-Use alternative energy;
-Build your own urban and hydroponic farms, or get your food from them;
-Support local businesses;
-Join local community organizations;
-Take part in food banks and help develop community support systems;
-Start or join intentional and autonomous communities;
-Experiment with new governing systems, Liquid Democracy;
-Create Temporary Autonomous Zones
-Host teach-ins;
-Organize socially conscious events;
-Make conscious media;
-Guerrilla theater;
-Guerrilla gardening;
-Guerrilla postering, messages on money;
-Help inspiring groups and organizations spread their message;
-Random acts of kindness and compassion;
-Mass meditations, prayer sessions and spiritual actions.

The list goes on and on. You know what you can do to play a part. Do whatever you feel inspired to do. Amplify what you are already doing. Think about what you are willing to do to be the change that we urgently need to see in the world, and then do it.

Don’t get bogged down in infighting and caught up in negativity. Ignore the saboteurs. Collaborate with people who inspire you. Keep moving forward with an indomitable will, a compassionate spirit and radiate a positive attitude. Moods are contagious. Be passionate and have fun!

Our ability to take part in civil disobedience is multiplied by our ability to easily record the actions on video and spread them throughout the Internet. By flooding social media with these inspiring videos, we will create a positive feedback loop that translates into more action on the ground.

Radical change is urgently needed, so let’s make transforming the world the cool thing to do. Let’s create a culture of transformation. Let’s blaze a contagious nonviolent wave of action through mass consciousness, signaling the end of the old world, ushering in a new paradigm.

Now is the time.

~~*~~

Ride the Worldwide Wave of Transformation
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#www

Tweak this meme! This is a draft call to action, a work in progress. Feel free to make changes to it and spread it around however you see fit.

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European Television’s Double Standards

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Lately I’ve been enjoying the program “Double Standards” on the Press TV YouTube channel. It’s a London-based news and satire show hosted by Afshin Rattansi. While it may not be as consistently funny and polished as “The Daily Show” and “The Colbert Report”, it is on occasion more fearless in its choice of targets and strength of its critiques, as shown in this clip from a recent program on bankers and government lackeys:

Their interviews are also usually more politically substantial, such as this clip from last year featuring Patrick Henningsen of 21st Century Wire discussing the European Commission and UK’s Ofcom regulator’s decision to ban Press TV from European satellite and cable broadcasting:

Inside the Psyche of the 1%

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Don Fitz, editor of Synthesis/Regeneration, recently wrote an illuminating overview of what current scientific studies can tell us about psychopaths in positions of power. In the following passage he examines why the psychiatric establishment has focused less on “successful psychopathy” than on other anti-social personality disorders:

The concept of “successful psychopath” is not new. An early text described “complex psychopaths” who were very intelligent and included unscrupulous politicians and businessmen. [6] By the 1970s it was more widely recognized that “this category includes some successful businessmen, politicians, administrators.” [7] In other words, the unsuccessful psychopath might go to jail for swindling dozens of people with home improvement scams while successful psychopaths might swindle millions with bank deals, get bailed out by friends in government, and never spend a day in jail.

Perhaps the most fascinating aspect of the medicalization of the disorder is how the psychiatric establishment departed from science in order to grant partial exemption from being characterized as psychopaths to the wealthy. According to the Diagnostic and Statistical Manual of the American Psychiatric Association, in order to receive a diagnosis of “anti-social personality disorder” (i.e., psychopathy) a person must exhibit at least 3 of 7 listed behavior patterns. These include “arrest,” “physical fights or assaults,” and “failure to sustain consistent work behavior.” [8] This means that those who can pay off cops (or never have charges pressed against them due to their social status), or pay someone else to commit violence on their behalf, or own companies instead of having to work for a living are all less likely to receive an official label of “psychopath.”

An increasing number of psychologists are becoming aware that traditional research was limited by the bias of only looking at people in jail. One wrote that subjects in psychopathy research “were usually institutionalized at the time of testing, and consequently our research may not accurately capture the internal structure and dynamics of the successful antisocial or psychopathic individual.” [9]

Support for the concept of successful and unsuccessful psychopaths is provided by the discovery that the “Psychopathic Personality Disorder” syndrome actually has two factors. [10] Statistical analyses have revealed an “emotional detachment” factor, which includes superficial charm and skill at manipulating others, as well as an “anti-social behavior” factor, which includes poor impulse control and the tendency to engage in activities that are illegal.

Multiple studies have confirmed that run-of-the-mill psychopaths (often studied while in jail) score particularly high on anti-social behavior while successful psychopaths score higher on emotional detachment factors. For example, Babiak [11] looked at “industrial psychopaths” and found that they scored higher on “emotional” factors than “deviant life style” factors. Functioning smoothly in the corporate world, they had a “charming façade” that allowed them to easily manipulate others.

In a study of “disordered personalities at work” other researchers [12] were able to give personality tests to business managers and chief executives. They contrasted their personality scores to psychiatric patients and “mentally disordered offenders.” Compared to the mental patients, the corporate executives showed greater “emotional” components of personality disorder and less “acting out” (such as aggressiveness).

There were no clear-cut differences between “psychopaths” and “normals.”
The authors concluded that “participants drawn from the non-clinical population [i.e., business managers] had scores that merged indiscernibly with clinical distributions.” There were no clear-cut differences between “psychopaths” and “normals.” The most likely explanation of psychopathy is that, like any other personality dimension, it has a bell-shaped curve: a few people have almost none of the characteristics, most people have some characteristics of psychopathy, and a few people have a lot. The most visible outlets for people high on psychopathy scales are petty con artists and corporate conniving. Operating in different worlds, their psychopathy expresses itself in different ways.

Now that it is clear that a streak of psychopathy runs through the 1%, it would be worthwhile to go back to those who espouse that “there is no ethic which requires we treat him [the psychopath] as we treat other adults” and ask if that would apply to corporate psychopaths as well. Will editors of scholarly volumes seek out articles heaping abuse on the 1% with the same vigor with which they find articles despising prison inmates? Will academics proclaim that “public health needs” dictate that we suspend civil liberties of corporate executives even if they “have not been convicted of any crime?” Will professors compare the “needed treatment” of the 1% to the “necessary slaughter” of animals?

Since academics know very well where funding for their research comes from, my guess is that they will be a wee bit less harsh on the corporate class than the jailed burglar who provides no grant money. We can be confident that the Tea Party will not be proposing that, if corporate psychopaths who blast the tops off of mountains wreak a thousand times the havoc of petty thieves who steal copper wire from air conditioners, then their punishments should be 1000 times as great.

Yet, it is important not to overstate the evidence and suggest that every capitalist is a psychopath. Not all corporate executives score high on scales of psychopathy. This is likely because many actually believe their ideology of greed makes for a better world.

Fitz also offers plausible explanations for various studies indicating that, on average, test subjects of a higher income have lower levels of empathy while test subjects of a lower income have higher levels of empathy:

Compassion reflects the opposite of psychopathy. When those with wealth and power plan to strangle social security, they never say they intend to hurt people, but rather they want to help them stand on their own. When corporations drive native people from forests, they tell us it is part of their grand scheme to stop climate change. Are we to believe that they are just as compassionate as everyone else…but that they reveal their compassion in their own way? There is now good evidence that there are, in fact, class differences in levels of compassion.

Social class could be linked to compassion more than to any other emotion.
By definition, the rich and powerful have more material resources and spend more of their time telling others what to do. Those with fewer material resources get told what to do. As a result, the rich value independence and autonomy while those with less money think of themselves as more interdependent with others. [13] In other words, the rich prize the image of the “rugged individual” while the rest of us focus on what group we belong to.

How do people explain the extremely unequal distribution of wealth? Those with more money attribute it to “dispositional” causes—they believe that people get rich because their personality leads them to work harder and get what they deserve. Those with less money more often attribute inequality to “external” factors—people’s wealth is due largely to events beyond their control, such as being born into a rich family or having good breaks in life. [14]

People with fewer financial resources live in more threatening environments, whether from potential violence, being unable to pay medical bills, or fearing the possibility of being evicted from their homes. This means that social classes differ in the way that they view the world from an early age. Children from less financially secure homes respond to descriptions of threatening and ambiguous social scenarios with higher blood pressure and heart rate. [15] Adults with lower incomes are also more reactive to emotional situations than are those with more money.

This means that people with fewer financial resources are more attentive to others’ emotions. Since low income people are more sensitive to emotional signals, they might pay more attention to the needs of others and show more altruism in response to suffering.

This was the thinking behind research linking higher income to less compassion. In one study people either watched a neutral video or one depicting a child suffering from cancer. People with lower income had more change in their heart rate and reported feeling more compassion. But they did not rate other emotions as higher. Social class could be linked to compassion more than to any other emotion. [16]

In another study, people reported their emotions toward a partner when the two of them went through a hypothetical job interview. Lower income people perceived more distress in their partners and expressed more compassion toward them. Again, they did not report more intense feelings of other emotions. Nor did participants show more compassion toward people with the same income level as their own. [17]

Like most psychological research, these findings are limited by their use of university students. This makes it hard to conclude that their findings apply to those not in school. Of course, it is quite possible that effects would be even stronger in situations that are far more intense than the somewhat mild experiences that occur in psychological laboratories. A greater problem is interpreting psychological findings as showing absolute differences between groups rather than shades of grey.

It would not be accurate to claim that research proves that the 1% have no compassion while all of the 99% do. But it strongly implies that the 1% feel less compassion, whether watching a videotape of suffering or participating in a live social interaction. Also, lab studies are consistent with findings that people with fewer financial resources give a higher proportion of what they do have to charity. In economic game research, they give more to others. [18]

The greatest reason is the huge jump in happiness as people move out of poverty …
This line of research confirms that (1) people with fewer financial resources identify with a larger “in-group;” (2) “attention to and recognition of suffering is a prerequisite step before compassion can take place;” and (3) “moral emotion is not randomly distributed across social classes…” [19] Compassion toward the suffering of others is less likely among the 1%.

He follows this with a recap of studies indicating how once the accumulation of wealth and material possessions get people above poverty level, it generally doesn’t correlate to increased levels of happiness. There tends to be a “tolerance” effect for happiness derived from wealth while social connection and altruism are more important for sustained happiness for most non-psychopaths. In his conclusion, Fitz argues that for corporate psychopaths, obtaining wealth and power is an addiction with harmful consequences for everyone and the entire planet, and it’s a societal problem requiring nothing less than a cultural transformation to solve:

The 1% could easily find compassion getting in their way as their actions affect an increasing number of lives. Gaining enough wealth to move out of poverty makes a significant difference in the life satisfaction of a person who has little. Gaining the same amount of wealth has no effect on the happiness of the very rich. They must grab the wealth of many impoverished people in order to have a perceptible increase in happiness. As for a drug addict, the rush from an increase in material possessions of those who already have more than enough is merely a temporary fix.

Soon they will have to prevent even more from rising out of poverty if they are to get another short-term happiness rush. Whether the rush is from the actual possessions or the power that they manifest, it still won’t be enough. They must increase the rate of wealth accumulation that they push through their veins. If those with spectacular quantities of obscene wealth are to get their next high, they cannot merely snort enough happiness objects to prevent masses of people from rising out of poverty—they have to manipulate markets to grind an ever-increasing number into poverty.

The petty psychopath and the grand corporate psychopath seek happiness through the act of obtaining material possessions as much as having them. A major difference between them is that the grand psychopath has the ability to cause so much harm. Even more important, the amount of harm that corporate psychopaths cause grows at an exponential rate. Their financial schemes are no longer millions or billions, but now trillions. Not content to drive individual farmers off their land, they design trade deals that force entire countries to plow under the ability to feed their own people and replace it with cash crops to feed animals or produce biofuels.

Finding that the pollution of small communities generates insufficient funds, they blow off the tops of mountain ranges for coal, raze boreal forests for tar sands, attack aquatic ecosystems with deep sea drilling, and contaminate massive natural water systems by mining gold or fracking for gas. While the petty psychopath may become proficient enough to become a godfather, the grand psychopath is driven not merely to planetary destruction but to a frenetic increase in the rate of destruction at precisely the moment when the tipping point of climate change is most haunting. A natural question might seem to follow: Would getting rid of the current batch of corporate psychopaths benefit the world greatly? Actually, no. It would do no good whatsoever because what psychologists call the “reward contingencies” of the corporate world would still exist. The fact that capitalism prizes accumulation of wealth by the few at the expense of the many would mean that, even if the worst corporate criminals disappeared, they would soon be replaced by marketplace clones.

Progressives should avoid using the same “categorical” model so adored by right wing theorists for its utility in hating the poor. A much better explanation for psychopathy among the 1% is that the corporate drive to put profits before all else encourages norms of manipulating people without compassion. The more readily corporate leaders succumb to this mind set, the more likely they will be to climb the ladder. As the corporate mentality dominates society, it reproduces its attitudes and expectations of behavior throughout every organization, institution and individual it touches.

In challenging what the market does to our souls, Alan Nasser said it so well:

A certain kind of society tends to produce a certain kind of person. More precisely, it discourages the development of certain human capacities and fosters the development of others. Aristotle, Rousseau, Marx and Dewey were the philosophers who were most illuminating on this. They argued that the postures required by successful functioning in a market economy tend to insinuate themselves into those areas of social intercourse which take place outside of the realm of the market proper. The result, they claimed, was that the arena for potentially altruistic and sympathetic behavior shrinks over time as society is gradually transformed into a huge marketplace. [35]As mentioned, there are differences in compassion and types of psychopathy between high and low income people. But the differences are not large. Perhaps, even in the corporate board room, many feel the old norms of group loyalty. It is also possible that differences are small, not because of the unwillingness of corporate executives to be ultra-manipulative, but because capitalism pushes everyone toward a “use people” mode.

Thus, building a new society involves going beyond equalizing material wealth. It means changing the core nature of interpersonal relationships. This requires vastly reducing the emphasis on material possessions. Relationships of people to people can never flourish as long as relationships of people to objects reign supreme.

As long as society continues to be deeply divided between those who tell others what to do and those who get told, it will not be possible to establish the emotional sharing that is the basis of widespread altruism. If the 1% are to develop the same level of understanding of others that the 99% has, they will need to walk in their shoes. If they continue to be the ones who live their lives telling others what to do while the rest of us continue being told what to do, they will not develop levels of compassion typical of the 99%.

This means that in office jobs, they should be able to share the joys of typing letters rather than ordering others to type for them. If we decide mining is necessary, those who are now the 1% should get to know that work life. In work at home, they should not be excluded from washing toilets but should participate in the same human activities as the rest of society. Creating a world of universal compassion requires a world of shared experiences.

Read the full article here: http://www.greens.org/s-r/60/60-06.html

Building Bridges: Top 10 Issues That 99% Can Agree On

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On a recent episode of PBS Newshour, Jeffrey Brown hosted a roundtable discussion exploring the dangers of polarized politics for American Governance. The guests were Eric Liu, Steven Hayward and Beverly Gage. Most of the discussion was an analysis of the recent government shutdown from a typical left vs. right perspective, but I thought their view of reactions of average citizens was interesting:

JEFFREY BROWN: And so, Eric Liu, let me ask you, because I know you’re very — you’re trying to engage people in the act of citizenship. What do you see the effect of all of this? Are they more engaged? Are they just more disgusted and turned off?

ERIC LIU: Well, I don’t think those are mutually exclusive. There is disgust.

(LAUGHTER)

ERIC LIU: But, because of the disgust, there’s actually more engagement.

And that’s true on both the left and the right. Look, I think the reality is, when Steven was speaking a moment ago about the kind of encroachment of ever-growing and ever-larger government, we can have reasonable debates in this country about what the proper size and scope of government ought to be, but we ought to regard those debates not as “on/off, yes/no, my way or we shut the whole thing down” kind of debates.

…so people from both left and right watching these last two weeks are ready for something different.

They’re ready to actually hear each other and see one another and not the caricatures of one another, and try to figure out, well, where is it that we can manage to agree on the role of government, and where we can’t agree, how can we recognize that to be a citizen isn’t just a single-shot sudden death game. It’s infinite repeat play, and you’re going to win some, and I’m going to win some.

JEFFREY BROWN: All right, let me ask Steven Hayward to respond to this.

Do you see the result of this as people ready to work together or more divisions that ever more polarizes?

STEVEN HAYWARD: Well, I think there’s two things to think about here.

One is, is we have divided government once again. The voters, God bless them, have a lot of cognitive dissonance. Right? In the last week, what you saw is people say, I don’t like Obamacare, but I don’t want the government shut down. I don’t want it to be a matter of a budget fight the way it’s become. And that’s why Republicans lost this proximate battle.

But if you look at some of the poll numbers right now, I think they ought to be very worrying for everybody, but I think more worrying ultimately for liberals, for this reason. You have seen record high numbers of people who now say — I think 65 percent in one poll — that government is a threat to their rights.

You have seen a long-term trend going back really to the 1960s of the number of people saying they have confidence that the federal government will do the right thing down in 15 percent, 20 percent, when it used to be in the ’50s up around 60 to 70 percent. And to the extent that if you’re liberal and that you believe in political solutions to our social problems or government engagement with our problems, you want the public to have confidence in the federal government’s capacities.

And so it seems to me that, as much as this might have been a train wreck for Republicans, the long-term effect of this might not necessarily play out that way.

JEFFREY BROWN: Well, Beverly, when you look back at political — what could be called political crises of the past, what does it — what happens in terms of public response to those?

BEVERLY GAGE: Well, I think to some degree, Steven’s quite right, in that I would kind of like to subscribe to Eric’s view that we’re going to have a much more serious conversation, a much more bipartisan conversation.

But I think it’s equally possible that you’re actually going to see people throw their hands up and say, oh, it’s all such a mess. I don’t really want to make sense of it. I don’t want to deal with it. And, in that way, it sort of serves an anti-government message, and in some ways, even serves sort of the Tea Party message in ways that maybe were intended and maybe weren’t.

But I think there’s also a danger for the Republican Party in all of this, which is to say that these divisions that we’re seeing right now within the Republican Party between moderates and Tea Party conservatives and also between a sort of establishment business class, which is very, very alarmed about what’s happening, and this more right-wing part of the party, that actually may in fact spell destruction for the Republican Party.

Those are divisions that have been there for a long time. They have often been papered over. But when you’re on the brink of financial catastrophe in the way that we were, we may not see them be papered over, and we may in fact see some sort of political realignment coming out of this.

You can read the complete transcript here: http://www.pbs.org/newshour/bb/politics/july-dec13/governing_10-17.html

All three guests made good points, though the views of conservatives and liberals are typically generalized in such discussions and I think issues of most concern to citizens on a grassroots level are often not the ones being debated enough in Washington D.C. There definitely needs to be more political discussion between left and right not just within government but among the general public. Increased communication and education is the best defense against “divide and conquer” tactics but of course this is easier said than done because politics has become a taboo subject for many, mainly due to fear of getting into heated arguments. But perhaps this fear is unwarranted because there’s many issues that the left and right can agree on (though motives and priorities may differ). These are just some of the more topical examples:

  1. End the Wars – As demonstrated by widespread negative reaction to war threats against Syria, people are perhaps becoming more aware of political trickery thus becoming harder to persuade. Also, as living standards drop for more people, the connection between costly foreign policy and the nation’s declining economy and infrastructure has never been more obvious.
  2. Stop the Surveillance State – Privacy is a universal human need. Mass spying on citizens is illegal and unethical whether online or through drones and informants.
  3. End Unjust Trade Agreements – Agreements such as NAFTA and the Trans-Pacific Partnership (TPP) hurt working people and endangers health and safety, the environment, and national sovereignty.
  4. End the Fed – We’ve endured 100 years of a “Federal” Reserve run by private bankers and all we have to show for it is a debt of tens of trillions of dollars. It will never be paid off as long as we continue to use interest-bearing federal reserve notes as currency.
  5. Create Affordable Health Care – It can be argued that Obamacare is an incremental improvement but everyone knows it’s not enough and is far more beneficial for greedy insurance companies than the poor.
  6. End the Drug War – We can all agree the Drug War is a colossal failure (when it comes to the stated purpose of reducing drug addiction). It has only increased incarceration rates while enriching the prison-industrial complex and drug cartels. We need to adopt policies that have proven to be effective such as legalization, decriminalization and harm-reduction.
  7. Stop GMOs – GMOs are unnecessary, physically and economically harmful to farmers, may have potentially catastrophic effects on the ecosystem, and only serves to increase profits for companies like Monsanto.
  8. End Obscene Economic Inequality – Complete economic equality might not be possible, but when economic inequality reaches absurd and unsustainable levels as they have today, obviously something needs to change.
  9. Protect Internet Freedom – Legislation such as the NDAA, SOPA and PIPA indicate that government and corporations are threatened by the internet. Attacks against internet freedom are attacks against freedom of speech, freedom of information and cognitive liberty.
  10. Ignore Corporate News – Another point of agreement between right and left is the corporate news media’s increasing irrelevancy and bias. Today it is not so much a liberal or conservative bias as it is a neoliberal and neoconservative bias.

Rushkoff on the Economy

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I’ve been reading Douglas Rushkoff’s “Present Shock: When Everything Happens Now” and have by coincidence just reached a chapter of the book covering the topic of currencies and the economy as Washington D.C. attempts to avoid another default. I found similar writings from Rushkoff on the same topic in two articles published by Arthur Magazine. As can be seen from these excerpts, they’re helpful for understanding our current situation:

Local currencies favored local transactions, and worked against the interests of large corporations working from far away. In order to secure their own position as well as that of their chartered monopolies, monarchs began to make local currencies illegal, and force locals to instead use “coin of the realm.” These centralized currencies worked the opposite way. They were not earned into existence, they were lent into existence by a central bank. This meant any money issued to a person or business had to be paid back to the central bank, with interest.

What does that do to an economy? It bankrupts it. Think of it this way: A business borrows 1000 dollars from the bank to get started. In ten years, say, it is supposed to pay back 2000 to the bank. Where does the other 1000 come from? Some other business that has borrowed 1000 from the bank. For one business to pay back what it owes, another must go bankrupt. That, or borrow yet another 1000, and so on.

An economy based on an interest-bearing centralized currency must grow to survive, and this means extracting more, producing more and consuming more. Interest-bearing currency favors the redistribution of wealth from the periphery (the people) to the center (the corporations and their owners). Just sitting on money—capital—is the most assured way of increasing wealth. By the very mechanics of the system, the rich get richer on an absolute and relative basis.

The biggest wealth generator of all was banking itself. By lending money at interest to people and businesses who had no other way to conduct transactions or make investments, banks put themselves at the center of the extraction equation. The longer the economy survived, the more money would have to be borrowed, and the more interest earned by the bank.

[…]Commerce is good. Commerce is not the problem. Monopolies are.

Except in a few rare cases, corporate charters and centralized currency were never intended to promote commerce. They were intended to prevent locals and non-chartered entities from creating and exchanging value. They are not extensions of the free market, but efforts at extracting value from the free market. Corporate monopoly charters were extended to a king’s favorite companies in return for shares. Then, no one else was allowed to do business in that industry. Centralized currency forced businesses to run their revenue through the king’s coffers. Likewise, in its current form, centralized currency is more akin to a ponzi scheme of interest rates, each borrower paying up to the banker above him.

Both of these innovations—corporate charters and centralized currency—tend towards resource exploitation rather than innovation. They are extractive in nature, not productive. And, more importantly, these particular innovations cause wealth to end up being generated through speculation rather than creation. They cause scarcity, not abundance. Over time, it becomes easier to make money by having money than by doing anything. And this was the pure, stated intent of centralized currency and banking in the early Renaissance: to keep the wealthy wealthy, in the face of a rising merchant class.

This isn’t some extremist perspective. It’s just historical fact, though largely forgotten and seemingly refuted by our collective false memory of the Renaissance’s greatness. If you’re interested in finding out more about this, or seeing the evidence on which my research is based, take a look at the best historians writing about the era: Fernand Braudel (The Wheels of Commerce: Civilization and Capitalism: 15th-18th Century, Volume 2, Univ. of California Press, 1992), Carlo M. Cipolla (Before the Industrial Revolution: European Society and Economy, 1000-1700, WW Norton, 1994) or Bernard A. Lietaer, whose book On Human Wealth used to be available for free download off his site, but doesn’t seem to be anymore. In these books, you can find out about the sustainable local economic systems of the Late Middle Ages, learn that the Black Plague actually began after mandated centralized currency had impoverished Europe, and find support of my contention that cathedrals were built with local money before the Renaissance, not Vatican money during the Renaissance.

I highly recommend checking out both articles here (as well as his most recent book “Present Shock”):

http://arthurmag.com/2009/03/16/let-it-die-rushkoff-on-the-economy/

http://arthurmag.com/2009/03/23/hack-money-hack-banking-rushkoff-on-the-economy/

More voices of sanity (Nicole Voss and Laurence Boomert) calling for an overhaul of the monetary system can be heard on the C-Realm podcast :

How to End the National Debt

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One solution is to stop the war machine. At Boiling Frogs there’s a great recent post from Sibel Edmonds called “What National Debt? US Taxpayer Dollars Continue to Flow to the World’s Despots, Torturers & Human Target Practice Fields”. Among her findings:

Afghanistan gets around $7 Billion= $7,000,000,000. Now, don’t mistake this for our money spent on our war in Afghanistan. That’s in the trillions of dollars. That’s a separate deal. No, this money goes to Afghanistan’s government – known for being crooks, criminals, heroin dealers, and terrorist breeders. They take the money, and misplace it- so the money, some of it, ends up with the guys we are supposedly bombing and waging war against. Then we point at those guys and say, hey, you see these armed terrorists, and then we go bomb the hell out of them. They take the money and invest it in some highly lucrative poppy fields and heroin production, so that we can spend billions of dollars pretending to destroy those poppy fields and production centers.  And then we give more money to these government guys, so that we can go and bomb them some more, and target more poppy fields … and the cycle continues, and continues. Trust me, it makes sense …Not necessarily to you and me, but it makes lots of sense to our fat war-profiteers here at home. After all, who gives a damn if things make sense to the people-since when have they counted?

Of course Israel gets quite a lion’s share. That goes without saying. They get nearly $3 billion=$3,000,000,000, in military aid and another large sum as financial aid for …well, let’s put aside all the diplomacy and political correctness and call a duck a duck: They get all the military and foreign aid so that they can turn around and spend those dollars through their powerful network and lobby here, to make sure we are all screwed up in developing and implementing our foreign policy. Does that make sense? Just think about the billions of dollars, directly or indirectly, spent by the Israel lobby to form and control our foreign policy, aka war-war and more war. They get all those billions of dollars in foreign and military aid, come over here, get us into wars so that we go spend trillions of additional dollars in wars and screwing up the world … and ourselves… and then give Israel more in foreign and military aid. It doesn’t make sense, does it? Of course not, It’s not supposed to make sense, dude!

Egypt gets its $1 billion of our tax money for … for what? Thank God it’s been in the news lately so even the mass ignoramus population in our nation is able to have an idea: guns and bullets to kill political dissenters, tanks and tear gas to be used against civilians, helicopters to fire at civilians below … bring about a coup de tat, and then bring about another one …Okay, so that one we get. We know what they use our money and military equipment for. No brainer. As to why we would shower Egypt with all this money and military power? Why in the world do we end up giving all these dollars to the side that gets in via a coup, and to the side who takes out those who brought about the coup and gets in with its own coup … and another coup after that, and many dead … Why? Well, duh. It’s because that’s what we do. Since when has our government been in the business of providing reasons and justification to its people? Since when do they worry about having to make sense to their lowly people? Maybe, referring to the paragraph above, maybe it’s because of the billions of dollars we gave Israel, which came back here and were spent so that our government would put together this policy of giving billions of dollars to many different sides in Egypt – so that they would continue coups and butcher their people.

Pakistan gets more or less $1 Billion. They get military aid to make sure they create desirable conditions so that our military can send its drones out there and bomb the hell out of them every day. Makes sense. No? All right, try this: How else do we give these drones and our other killing machines a real-life test run? See! Like shooting ranges, our government needs to go out there, pick countries (and their inhabitants), and make them viable war-practice fields.  Call them Human Target Practice Fields. You haven’t heard?! Nothing like a real test drive. Of course these things ain’t free, so of course the money has to be spent, thus, our foreign aid to countries like Pakistan. Why is the price so high? Because Pakistan is dangerous, and it has nuclear weapons that we made sure they would get, and that makes Pakistan kinda expensive.

Those are just the largest recipients. For the complete list read the full article here: http://www.boilingfrogspost.com/2013/10/08/what-national-debt-us-taxpayer-dollars-continue-to-flow-to-the-worlds-despots-torturers-human-target-practice-fields/#more-24922

Another way to end the national debt is to switch to government issued debt-free money. Michael Snyder of The Economic Collapse Blog describes what the process might look like:

#1) The U.S. Congress votes to take back all of the functions that it has delegated to the Federal Reserve and begins to issue debt-free United States Notes.  These United States Notes would have the exact same value as existing Federal Reserve Notes, and over time all existing Federal Reserve Notes would be taken out of circulation.

#2) The U.S. Congress nationalizes all debt held by the Federal Reserve.  That would instantly reduce the national debt by 1.6 trillion dollars.  In fact, there are a few members of Congress that have already proposed this.

#3) A Constitutional amendment is passed limiting future U.S. government deficits to a reasonable percentage of GDP.  Any future deficits would not be funded by borrowing.  Rather, future deficits would be funded by newly created United States Notes.  Therefore, the federal government would never again accumulate another penny of debt.

And it would be important to inject new money into the economy from time to time.  When existing money is destroyed or when the population grows it is important to inject a certain amount of new money into the system in order to avoid deflation.

#4) The existing national debt would be very slowly paid off with newly created United States Notes.  The U.S. government spent over 454 billion dollars on interest on the national debt during fiscal year 2011, and over time this expense would go to zero.

If the national debt is paid off slowly enough, it would not create too much inflation.  I believe that it could be paid off gradually over 50 years without shocking the economy too much.

Read the full article here: http://theeconomiccollapseblog.com/archives/debt-free-united-states-notes-were-once-issued-under-jfk-and-the-u-s-government-still-has-the-power-to-issue-debt-free-money

Such a solution may seem simple, but the obvious obstacle would be overcoming the immense political and economic influence of the central banks. The only U.S. presidents who challenged the central banking scheme were John F. Kennedy, James Garfield, Abraham Lincoln and Andrew Jackson. Kennedy, Garfield and Lincoln were assassinated in office. Jackson would have been assassinated in an attempt in 1835 were it not for two guns miraculously misfiring. Jackson later famously stated:

The Bank is trying to kill me – but I will kill it!

…If the American people only understood the rank injustice of our money and banking system – there would be a revolution before morning.