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Slowly, Then All at Once

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By James Howard Kunstler

Source: Clusterfuck Nation

The staggering incoherence of the election campaign only mirrors the shocking incapacity of the American public, from top to bottom, to process the tendings of our time. The chief tending is permanent worldwide economic contraction. Having hit the resource wall, especially of affordable oil, the global techno-industrial economy has sucked a valve in its engine.

For sure there are ways for human beings to inhabit this planet, perhaps in a civilized mode, but not at the gigantic scale of the current economic regime. The fate of this order has nothing to do with our wishes or preferences. It’s going down whether we like it or not because it was such a violent anomaly in world history and the salient question is: how do we manage our journey to a new disposition of things. Neither Trump or Clinton show that they have a clue about the situation.

The quandary I describe is often labeled the end of growth. The semantic impact of this phrase tends to paralyze even well-educated minds, most particularly the eminent econ professors, the Yale lawyers-turned-politicos, the Wall Street Journal editors, the corporate poobahs of the “C-Suites,” the hedge fund maverick-geniuses, and the bureaucratic errand boys (and girls) of Washington. In the absence of this “growth,” as defined by the employment and productivity statistics extruded like poisoned bratwursts from the sausage grinders of government agencies, this elite can see only the yawning abyss. The poverty of imagination among our elites is really something to behold.

As is usually the case with troubled, over-ripe societies, these elites have begun to resort to magic to prop up failing living arrangements. This is why the Federal Reserve, once an obscure institution deep in the background of normal life, has come downstage front and center, holding the rest of us literally spellbound with its incantations against the intractable ravages of debt deflation. (For a brilliant gloss on this phenomenon, read Ben Hunt’s essay “Magical thinking” at the Epsilon Theory website.)

One way out of this quandary would be to substitute the word “activity” for “growth.” A society of human beings can choose different activities that would produce different effects than the techno-industrial model of behavior. They can organize ten-acre farms instead of cell phone game app companies. They can do physical labor instead of watching television. They can build compact walkable towns instead of suburban wastelands (probably even out of the salvaged detritus of those wastelands). They can put on plays, concerts, sing-alongs, and puppet shows instead of Super Bowl halftime shows and Internet porn videos. They can make things of quality by hand instead of stamping out a million things guaranteed to fall apart next week. None of these alt-activities would be classifiable as “growth” in the current mode. In fact, they are consistent with the reality of contraction. And they could produce a workable and satisfying living arrangement.

The rackets and swindles unleashed in our futile quest to keep up appearances have disabled the financial operating system that the regime depends on. It’s all an illusion sustained by accounting fraud to conceal promises that won’t be kept. All the mighty efforts of central bank authorities to borrow “wealth” from the future in the form of “money” — to “paper over” the absence of growth — will not conceal the impossibility of paying that borrowed money back. The future’s revenge for these empty promises will be the disclosure that the supposed wealth is not really there — especially as represented in currencies, stock shares, bonds, and other ephemeral “instruments” designed to be storage vehicles for wealth. The stocks are not worth what they pretend. The bonds will never be paid off. The currencies will not store value. How did this happen? Slowly, then all at once.

We’re on a collision course with these stark realities. They are coinciding with the sickening vectors of national politics in a great wave of latent consequences built up by the sheer inertia of the scale at which we have been doing things. Trump, convinced of his own brilliance, knows nothing, and wears his incoherence like a medal of honor. Clinton literally personifies the horror of these coiled consequences waiting to spring — and the pretense that everything will continue to be okay with her in the White House (not). When these two gargoyle combatants meet in the debate arena a week from now, you will hear nothing about the journey we’re on to a different way of life.

But there is a clear synergy between the mismanagement of our money and the mismanagement of our politics. They have the ability to amplify each other’s disorders. The awful vibe from this depraved election might be enough to bring down markets and banks. The markets and banks are unstable enough to affect the election.

In history, elites commonly fail spectacularly. Ask yourself: how could these two ancient institutions, the Democratic and Republican parties, cough up such human hairballs? And having done so, do they deserve to continue to exist? And if they go up in a vapor, along with the public’s incomes and savings, what happens next?

Enter the generals.

Oligarchs, Bankers, and Swindlers

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Washington’s “New Managers” in Latin America

By James Petras

Source: Dissident Voice

Amid raging corruption, social pathologies and outright political thuggery, a new gang of vassal regimes has taken-over Latin America. The new rulers are strictly recruited as the protégé’s of US financial and banking institutions. Hence the financial press refers to them as the “new managers” – of Wall Street.

The US financial media has once again provided a political cover for the vilest crimes committed by the ‘new managers’ as they launch their offensive against labor and in favor of the foreign and domestic financiers.

To understand the dynamics of the empire’s new vassal managers we will proceed by identifying (1) the illicit power grab (2) the neo-liberal policies they have pursued (3) the impact of their program on the class structure (4) their economic performance and future socio-political perspectives.

Vassals as Managers of Empire

Latin America’s current vassalage elite is of longer and shorter duration.

The regimes of longer duration with a historical legacy of submission, corruption and criminality include Mexico and Colombia where oligarchs , government officials and death squads cohabitate in close association with the US military, business and banking elites.

Over the past decades 100,000 citizens were murdered in Mexico and over 4 million peasants were dispossessed in Colombia. In both regimes over ten million acres of farmland and mining terrain were transferred to US and EU multinationals.

Hundreds of billions of illicit narco earnings were laundered by the Colombian and Mexican oligarchy to their US accounts via private banks.

The current political managers, Peña in Mexico and Santos in Colombia are rapidly de-nationalizing strategic oil and energy sectors, while savaging dynamic social movements – hundreds of students and teachers in Mexico and thousands of peasants and human rights activists in Colombia have been murdered.

The new wave of imperial vassals has seized power throughout most of Latin America with the direct and indirect intervention of the US. In 2009, Honduras President Manuel Zelaya was ousted by a military coup backed by Secretary of State Hillary Clinton. Zelaya’s program of agrarian reform, regional integration (with Venezuela) and constitutional elections was abolished. Zelaya was replaced by a US vassal, Roberto Micheletti who proceeded to murder several hundred landless rural workers and indigenous activists.

Washington moved to organize a constitutional cover by promoting a highly malleable landowner, Porfirio Lobo Sosa to the presidency.

The State Department next ousted Paraguyan President Francisco Lugo who governed between 2008-2012. Lugo promoted a moderate agrarian reform and a centrist regional integration agenda.

With the backing of Secretary of State Clinton, the Paraguayan oligarchy in Congress seized power, fabricated an impeachment decree and ousted President Lugo. He was briefly replaced by Vice President Federico Franco (2012-2013).

In 2013, Washington backed the capital Asuncion’s, notorious crime boss for President, one Horacio Castes – convicted for currency fraud in 1989, drug running in 1990, and most recently (2010) money laundering.

The Honduras and Paraguayan coups established (in miniature) the precedent for a new wave of ‘big country’ political vassals. The State Department moved toward the acceleration of banking takeovers in Brazil, Argentina and Peru.

In rapid succession, between December 2015 and April 2016 vassal managers seized power in Argentina and Brazil. In Argentina millionaire Mauricio Macri ruled by decree, by-passing constitutional legality. Macri fired scores of thousands of public service workers, closed social agencies and appointed judges and prosecutors without Congressional vote. He arbitrarily arrested social movement leaders – violating democratic procedures.

Macri’s Economic and Finance Ministers gained millions of dollars by ‘buying into’ multinational oil companies just prior to handing over private options on public enterprises.

The all-encompassing swindles and fraud carried out by the ‘new managers’ were covered up by the US media,who praised Macri’s professional team.

Moreover, Macri’s economic performance was a disaster. Exorbitant user fees on utilities and transport for consumers and business enterprises, increased three to ten-fold, forcing bankruptcy rates to soar and households to suffer light and gas closures.

Wall Street vulture funds received seven billion dollar payment from Macri’s managers, for defaulted loans purchased for pennies over a dollar, twenty-fold greater then the original lenders.

Data based on standard economic indicators,highlights the worst economic performance in a decade and a half.

Price inflation exceeds 40%; public debt increased by twenty percent in six months. Living standards and employment sharply declined. Growth and investment data was negative. Mismanagement, official corruption, and arbitrary governance did not induce confidence among local small and medium size businesses.

The respectable media, led by the New York Times, the Financial Times, the Wall Street Journal, and the Washington Post falsified every aspect of Macri’s regime. Failed economic policies implemented by bankers turned cabinet ministers were dubbed long-term successes; crude ideologically driven policies promoting foreign investor profiteering were re-invented as business incentives.

Political thugs dismantled and replaced civil service agencies were labelled ‘a new management team’ by the vulgar propaganda scribes of the financial press.

In Brazil, a phony political power grab by Congressional opportunists ousted elected President Dilma Rousseff. She was replaced by a Washinton approved serial swindler and notorious bribe taker, Michel Temer.

The new economic managers were predictably controlled by Wall Street, World Bank and IMF bankers. They rushed measures to slash wages, pensions and other social expenditures, to lower business taxes and privatize the most lucrative public enterprises in transport, infrastructure, landholdings, oil and scores of other activities.

Even as the prostitute press lauded Brazil’s new managers’, prosecutors and judges arrested three newly appointed cabinet ministers for fraud and money laundering. ‘President’ Temer is next in line for prosecution for his role in the mega Petrobras oil contracts scandal for bribes and payola.

The economic agenda by the new managers are not designed to attract new productive investments. Most inflows are short-term speculative ventures. Markets, especially in commodities, show no upward growth, much to the chagrin of the free market technocrats. Industry and commerce are depressed as a result of the decline in consumer credit, employment, and public spending induced by ‘the managers’ austerity policies.

Even as the US and Europe embrace free market austerity, it evokes a continent wide revolt. Nevertheless, Latin America’s wave of vassal regimes remain deeply embedded in decimating the welfare state and pillaging public treasuries led by a narrow elite of bankers and serial swindlers.

Conclusion

As Washington and the prostitute press hail their ‘new managers’ in Latin America, the celebration is abruptly given way to mass rage over corruption and demands for a shift to the political left.

In Brazil, “President” Temer rushes to implement big business measures, as his time in office is limited to weeks not months. His time out of jail is nearing a deadline. His cabinet of ‘technocrats’ prepare their luggage to follow.

Maurico Macri may survive a wave of strikes and protests and finish the year in office. But the plunging economy and pillage of the treasury is leading business to bankruptcy, the middle class to empty bank accounts and the dispossessed to spontaneous mass upheavals.

Washington’s new managers in Latin America cannot cope with an unruly citizenry and a failing free market economy.

Coups have been tried and work for grabbing power but do not establish effective rulership. Political shift to the right are gyrating out of Washington’s orbit and find no new counter-balance in the break-up of the European Union.

Vassal capitalist takeovers in Latin America generated publicist anesthesia and Wall Street euphoria; only to be rudely shocked to reality by economic pathologies.

Washington and Wall Street and their Latin America managers sought a false reality of unrestrained profits and pillaged wealth. The reality principle now forces them to recognize that their failures are inducing rage today and uprisings tomorrow.

 

James Petras is author of The End of the Republic and the Delusion of Empire, Extractive Imperialism in the Americas: Capitalism’s New Frontier (with Henry Veltmeyer), and The Politics of Empire: The US, Israel and the Middle East. Read other articles by James, or visit James’s website.

The Great Ponzi Scheme of the Global Economy

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By Michael Hudson and Chris Hedges

Source: CounterPunch

CHRIS HEDGES: We’re going to be discussing a great Ponzi scheme that not only defines not only the U.S. but the global economy, how we got there and where we’re going. And with me to discuss this issue is the economist Michael Hudson, author of Killing the Host: How Financial Parasites and Debt Destroy the Global Economy. A professor of economics who worked for many years on Wall Street, where you don’t succeed if you don’t grasp Marx’s dictum that capitalism is about exploitation. And he is also, I should mention, the godson of Leon Trotsky.

I want to open this discussion by reading a passage from your book, which I admire very much, which I think gets to the core of what you discuss. You write,

“Adam Smith long ago remarked that profits often are highest in nations going fastest to ruin. There are many ways to create economic suicide on a national level. The major way through history has been through indebting the economy. Debt always expands to reach a point where it cannot be paid by a large swathe of the economy. This is the point where austerity is imposed and ownership of wealth polarizes between the One Percent and the 99 Percent. Today is not the first time this has occurred in history. But it is the first time that running into debt has occurred deliberately.” Applauded. “As if most debtors can get rich by borrowing, not reduced to a condition of debt peonage.”

So let’s start with the classical economists, who certainly understood this. They were reacting of course to feudalism. And what happened to the study of economics so that it became gamed by ideologues?

HUDSON: The essence of classical economics was to reform industrial capitalism, to streamline it, and to free the European economies from the legacy of feudalism. The legacy of feudalism was landlords extracting land-rent, and living as a class that took income without producing anything. Also, banks that were not funding industry. The leading industrialists from James Watt, with his steam engine, to the railroads …

HEDGES: From your book you make the point that banks almost never funded industry.

HUDSON: That’s the point: They never have. By the time you got to Marx later in the 19th century, you had a discussion, largely in Germany, over how to make banks do something they did not do under feudalism. Right now we’re having the economic surplus being drained not by the landlords but also by banks and bondholders.

Adam Smith was very much against colonialism because that lead to wars, and wars led to public debt. He said the solution to prevent this financial class of bondholders burdening the economy by imposing more and more taxes on consumer goods every time they went to war was to finance wars on a pay-as-you-go basis. Instead of borrowing, you’d tax the people. Then, he thought, if everybody felt the burden of war in the form of paying taxes, they’d be against it. Well, it took all of the 19th century to fight for democracy and to extend the vote so that instead of landlords controlling Parliament and its law-making and tax system through the House of Lords, you’d extend the vote to labor, to women and everybody. The theory was that society as a whole would vote in its self-interest. It would vote for the 99 Percent, not for the One Percent.

By the time Marx wrote in the 1870s, he could see what was happening in Germany. German banks were trying to make money in conjunction with the government, by lending to heavy industry, largely to the military-industrial complex.

HEDGES: This was Bismarck’s kind of social – I don’t know what we’d call it. It was a form of capitalist socialism…

HUDSON: They called it State Capitalism. There was a long discussion by Engels, saying, wait a minute. We’re for Socialism. State Capitalism isn’t what we mean by socialism. There are two kinds of state-oriented–.

HEDGES: I’m going to interject that there was a kind of brilliance behind Bismarck’s policy because he created state pensions, he provided health benefits, and he directed banking toward industry, toward the industrialization of Germany which, as you point out, was very different in Britain and the United States.

HUDSON: German banking was so successful that by the time World War I broke out, there were discussions in English economic journals worrying that Germany and the Axis powers were going to win because their banks were more suited to fund industry. Without industry you can’t have really a military. But British banks only lent for foreign trade and for speculation. Their stock market was a hit-and-run operation. They wanted quick in-and-out profits, while German banks didn’t insist that their clients pay as much in dividends. German banks owned stocks as well as bonds, and there was much more of a mutual partnership.

That’s what most of the 19th century imagined was going to happen – that the world was on the way to socializing banking. And toward moving capitalism beyond the feudal level, getting rid of the landlord class, getting rid of the rent, getting rid of interest. It was going to be labor and capital, profits and wages, with profits being reinvested in more capital. You’d have an expansion of technology. By the early twentieth century most futurists imagined that we’d be living in a leisure economy by now.

HEDGES: Including Karl Marx.

HUDSON: That’s right. A ten-hour workweek. To Marx, socialism was to be an outgrowth of the reformed state of capitalism, as seemed likely at the time – if labor organized in its self-interest.

HEDGES: Isn’t what happened in large part because of the defeat of Germany in World War I? But also, because we took the understanding of economists like Adam Smith and maybe Keynes. I don’t know who you would blame for this, whether Ricardo or others, but we created a fictitious economic theory to praise a rentier or rent-derived, interest-derived capitalism that countered productive forces within the economy. Perhaps you can address that.

HUDSON: Here’s what happened. Marx traumatized classical economics by taking the concepts of Adam Smith and John Stuart Mill and others, and pushing them to their logical conclusion. Progressive capitalist advocates – Ricardian socialists such as John Stuart Mill – wanted to tax away the land or nationalize it. Marx wanted governments to take over heavy industry and build infrastructure to provide low-cost and ultimately free basic services. This was traumatizing the landlord class and the One Percent. And they fought back. They wanted to make everything part of “the market,” which functioned on credit supplied by them and paid rent to them.

None of the classical economists imagined how the feudal interests – these great vested interests that had all the land and money – actually would fight back and succeed. They thought that the future was going to belong to capital and labor. But by the late 19th century, certainly in America, people like John Bates Clark came out with a completely different theory, rejecting the classical economics of Adam Smith, the Physiocrats and John Stuart Mill.

HEDGES: Physiocrats are, you’ve tried to explain, the enlightened French economists.

HUDSON: The common denominator among all these classical economists was the distinction between earned income and unearned income. Unearned income was rent and interest. Earned incomes were wages and profits. But John Bates Clark came and said that there’s no such thing as unearned income. He said that the landlord actually earns his rent by taking the effort to provide a house and land to renters, while banks provide credit to earn their interest. Every kind of income is thus “earned,” and everybody earns their income. So everybody who accumulates wealth, by definition, according to his formulas, get rich by adding to what is now called Gross Domestic Product (GDP).

HEDGES: One of the points you make in Killing the Host which I liked was that in almost all cases, those who had the capacity to make money parasitically off interest and rent had either – if you go back to the origins – looted and seized the land by force, or inherited it.

HUDSON: That’s correct. In other words, their income is unearned. The result of this anti-classical revolution you had just before World War I was that today, almost all the economic growth in the last decade has gone to the One Percent. It’s gone to Wall Street, to real estate …

HEDGES: But you blame this on what you call Junk Economics.

HUDSON: Junk Economics is the anti-classical reaction.

HEDGES: Explain a little bit how, in essence, it’s a fictitious form of measuring the economy.

HUDSON: Well, some time ago I went to a bank, a block away from here – a Chase Manhattan bank – and I took out money from the teller. As I turned around and took a few steps, there were two pickpockets. One pushed me over and the other grabbed the money and ran out. The guard stood there and saw it. So I asked for the money back. I said, look, I was robbed in your bank, right inside. And they said, “Well, we don’t arm our guards because if they shot someone, the thief could sue us and we don’t want that.” They gave me an equivalent amount of money back.

Well, imagine if you count all this crime, all the money that’s taken, as an addition to GDP. Because now the crook has provided the service of not stabbing me. Or suppose somebody’s held up at an ATM machine and the robber says, “Your money or your life.” You say, “Okay, here’s my money.” The crook has given you the choice of your life. In a way that’s how the Gross National Product accounts are put up. It’s not so different from how Wall Street extracts money from the economy. Then also you have landlords extracting …

HEDGES: Let’s go back. They’re extracting money from the economy by debt peonage. By raising …

HUDSON: By not playing a productive role, basically.

HEDGES: Right. So it’s credit card interest, mortgage interest, car loans, student loans. That’s how they make their funds.

HUDSON: That’s right. Money is not a factor of production. But in order to have access to credit, in order to get money, in order to get an education, you have to pay the banks. At New York University here, for instance, they have Citibank. I think Citibank people were on the board of directors at NYU. You get the students, when they come here, to start at the local bank. And once you are in a bank and have monthly funds taken out of your account for electric utilities, or whatever, it’s very cumbersome to change.

So basically you have what the classical economists called the rentier class. The class that lives on economic rents. Landlords, monopolists charging more, and the banks. If you have a pharmaceutical company that raises the price of a drug from $12 a shot to $200 all of a sudden, their profits go up. Their increased price for the drug is counted in the national income accounts as if the economy is producing more. So all this presumed economic growth that has all been taken by the One Percent in the last ten years, and people say the economy is growing. But the economy isn’t growing …

HEDGES: Because it’s not reinvested.

HUDSON: That’s right. It’s not production, it’s not consumption. The wealth of the One Percent is obtained essentially by lending money to the 99 Percent and then charging interest on it, and recycling this interest at an exponentially growing rate.

HEDGES: And why is it important, as I think you point out in your book, that economic theory counts this rentier income as productive income? Explain why that’s important.

HUDSON: If you’re a rentier, you want to say that you earned your income by …

HEDGES: We’re talking about Goldman Sachs, by the way.

HUDSON: Yes, Goldman Sachs. The head of Goldman Sachs came out and said that Goldman Sachs workers are the most productive in the world. That’s why they’re paid what they are. The concept of productivity in America is income divided by labor. So if you’re Goldman Sachs and you pay yourself $20 million a year in salary and bonuses, you’re considered to have added $20 million to GDP, and that’s enormously productive. So we’re talking in a tautology. We’re talking with circular reasoning here.

So the issue is whether Goldman Sachs, Wall Street and predatory pharmaceutical firms, actually add “product” or whether they’re just exploiting other people. That’s why I used the word parasitism in my book’s title. People think of a parasite as simply taking money, taking blood out of a host or taking money out of the economy. But in nature it’s much more complicated. The parasite can’t simply come in and take something. First of all, it needs to numb the host. It has an enzyme so that the host doesn’t realize the parasite’s there. And then the parasites have another enzyme that takes over the host’s brain. It makes the host imagine that the parasite is part of its own body, actually part of itself and hence to be protected.

That’s basically what Wall Street has done. It depicts itself as part of the economy. Not as a wrapping around it, not as external to it, but actually the part that’s helping the body grow, and that actually is responsible for most of the growth. But in fact it’s the parasite that is taking over the growth.

The result is an inversion of classical economics. It turns Adam Smith upside down. It says what the classical economists said was unproductive – parasitism – actually is the real economy. And that the parasites are labor and industry that get in the way of what the parasite wants – which is to reproduce itself, not help the host, that is, labor and capital.

HEDGES: And then the classical economists like Adam Smith were quite clear that unless that rentier income, you know, the money made by things like hedge funds, was heavily taxed and put back into the economy, the economy would ultimately go into a kind of tailspin. And I think the example of that, which you point out in your book, is what’s happened in terms of large corporations with stock dividends and buybacks. And maybe you can explain that.

HUDSON: There’s an idea in superficial textbooks and the public media that if companies make a large profit, they make it by being productive. And with …

HEDGES: Which is still in textbooks, isn’t it?

HUDSON: Yes. And also that if a stock price goes up, you’re just capitalizing the profits – and the stock price reflects the productive role of the company. But that’s not what’s been happening in the last ten years. Just in the last two years, 92 percent of corporate profits in America have been spent either on buying back their own stock, or paid out as dividends to raise the price of the stock.

HEDGES: Explain why they do this.

HUDSON: About 15 years ago at Harvard, Professor Jensen said that the way to ensure that corporations are run most efficiently is to make the managers increase the price of the stock. So if you give the managers stock options, and you pay them not according to how much they’re producing or making the company bigger, or expanding production, but the price of the stock, then you’ll have the corporation run efficiently, financial style.

So the corporate managers find there are two ways that they can increase the price of the stock. The first thing is to cut back long-term investment, and use the money instead to buy back their own stock. But when you buy your own stock, that means you’re not putting the money into capital formation. You’re not building new factories. You’re not hiring more labor. You can actually increase the stock price by firing labor.

HEDGES: That strategy only works temporarily.

HUDSON: Temporarily. By using the income from past investments just to buy back stock, fire the labor force if you can, and work it more intensively. Pay it out as dividends. That basically is the corporate raider’s model. You use the money to pay off the junk bond holders at high interest. And of course, this gets the company in trouble after a while, because there is no new investment.

So markets shrink. You then go to the labor unions and say, gee, this company’s near bankruptcy, and we don’t want to have to fire you. The way that you can keep your job is if we downgrade your pensions. Instead of giving you what we promised, the defined benefit pension, we’ll turn it into a defined contribution plan. You know what you pay every month, but you don’t know what’s going to come out. Or, you wipe out the pension fund, push it on to the government’s Pension Benefit Guarantee Corporation, and use the money that you were going to pay for pensions to pay stock dividends. By then the whole economy is turning down. It’s hollowed out. It shrinks and collapses. But by that time the managers will have left the company. They will have taken their bonuses and salaries and run.

HEDGES: I want to read this quote from your book, written by David Harvey, in A Brief History of Neoliberalism, and have you comment on it.

“The main substantive achievement of neoliberalism has been to redistribute rather than to generate wealth and income. [By] ‘accumulation by dispossession’ I mean … the commodification and privatization of land, and the forceful expulsion of peasant populations; conversion of various forms of property rights (common collective state, etc.) into exclusive private property rights; suppression of rights to the commons; … colonial, neocolonial, and the imperial processes of appropriation of assets (including natural resources); … and usury, the national debt and, most devastating at all, the use of the credit system as a radical means of accumulation by dispossession. … To this list of mechanisms, we may now add a raft of techniques such as the extraction of rents from patents, and intellectual property rights (such as the diminution or erasure of various forms of common property rights, such as state pensions, paid vacations, and access to education, health care) one through a generation or more of class struggle. The proposal to privatize all state pension rights, pioneered in Chile under the dictatorship is, for example, one of the cherished objectives of the Republicans in the US.”

This explains the denouement. The final end result you speak about in your book is, in essence, allowing what you call the rentier or the speculative class to cannibalize the entire society until it collapses.

HUDSON: A property right is not a factor of production. Look at what happened in Chicago, the city where I grew up. Chicago didn’t want to raise taxes on real estate, especially on its expensive commercial real estate. So its budget ran a deficit. They needed money to pay the bondholders, so they sold off the parking rights to have meters – you know, along the curbs. The result is that they sold to Goldman Sachs 75 years of the right to put up parking meters. So now the cost of living and doing business in Chicago is raised by having to pay the parking meters. If Chicago is going to have a parade and block off traffic, it has to pay Goldman Sachs what the firm would have made if the streets wouldn’t have been closed off for a parade. All of a sudden it’s much more expensive to live in Chicago because of this.

But this added expense of having to pay parking rights to Goldman Sachs – to pay out interest to its bondholders – is counted as an increase in GDP, because you’ve created more product simply by charging more. If you sell off a road, a government or local road, and you put up a toll booth and make it into a toll road, all of a sudden GDP goes up.

If you go to war abroad, and you spend more money on the military-industrial complex, all this is counted as increased production. None of this is really part of the production system of the capital and labor building more factories and producing more things that people need to live and do business. All of this is overhead. But there’s no distinction between wealth and overhead.

Failing to draw that distinction means that the host doesn’t realize that there is a parasite there. The host economy, the industrial economy, doesn’t realize what the industrialists realized in the 19th century: If you want to be an efficient economy and be low-priced and under-sell competitors, you have to cut your prices by having the public sector provide roads freely. Medical care freely. Education freely.

If you charge for all of these, you get to the point that the U.S. economy is in today. What if American factory workers were to get all of their consumer goods for nothing. All their food, transportation, clothing, furniture, everything for nothing. They still couldn’t compete with Asians or other producers, because they have to pay up to 43% of their income for rent or mortgage interest, 10% or more of their income for student loans, credit card debt. 15% of their paycheck is automatic withholding to pay Social Security, to cut taxes on the rich or to pay for medical care.

So Americans built into the economy all this overhead. There’s no distinction between growth and overhead. It’s all made America so high-priced that we’re priced out of the market, regardless of what trade policy we have.

HEDGES: We should add that under this predatory form of economics, you game the system. So you privatize pension funds, you force them into the stock market, an overinflated stock market. But because of the way companies go public, it’s the hedge fund managers who profit. And it’s those citizens whose retirement savings are tied to the stock market who lose. Maybe we can just conclude by talking about how the system is fixed, not only in terms of burdening the citizen with debt peonage, but by forcing them into the market to fleece them again.

HUDSON: Well, we talk about an innovation economy as if that makes money. Suppose you have an innovation and a company goes public. They go to Goldman Sachs and other Wall Street investment banks to underwrite the stock to issue it at $40 a share. What’s considered a successful float is when, immediately, Goldman and the others will go to their insiders and tell them to buy this stock and make a quick killing. A “successful” flotation doubles the price in one day, so that at the end of the day the stock’s selling for $80.

HEDGES: They have the option to buy it before anyone else, knowing that by the end of the day it’ll be inflated, and then they sell it off.

HUDSON: That’s exactly right.

HEDGES: So the pension funds come in and buy it at an inflated price, and then it goes back down.

HUDSON: It may go back down, or it may be that the company just was shortchanged from the very beginning. The important thing is that the Wall Street underwriting firm, and the speculators it rounds up, get more in a single day than all the years it took to put the company together. The company gets $40. And the banks and their crony speculators also get $40.

So basically you have the financial sector ending up with much more of the gains. The name of the game if you’re on Wall Street isn’t profits. It’s capital gains. And that’s something that wasn’t even part of classical economics. They didn’t anticipate that the price of assets would go up for any other reason than earning more money and capitalizing on income. But what you have had in the last 50 years – really since World War II – has been asset-price inflation. Most middle-class families have gotten the wealth that they’ve got since 1945 not really by saving what they’ve earned by working, but by the price of their house going up. They’ve benefited by the price of the house. And they think that that’s made them rich and the whole economy rich.

The reason the price of housing has gone up is that a house is worth whatever a bank is going to lend against it. If banks made easier and easier credit, lower down payments, then you’re going to have a financial bubble. And now, you have real estate having gone up as high as it can. I don’t think it can take more than 43% of somebody’s income to buy it. But now, imagine if you’re joining the labor force. You’re not going to be able to buy a house at today’s prices, putting down a little bit of your money, and then somehow end up getting rich just on the house investment. All of this money you pay the bank is now going to be subtracted from the amount of money that you have available to spend on goods and services.

So we’ve turned the post-war economy that made America prosperous and rich inside out. Somehow most people believed they could get rich by going into debt to borrow assets that were going to rise in price. But you can’t get rich, ultimately, by going into debt. In the end the creditors always win. That’s why every society since Sumer and Babylonia have had to either cancel the debts, or you come to a society like Rome that didn’t cancel the debts, and then you have a dark age. Everything collapses.

 

Michael Hudson’s new book, Killing the Host is published in e-format by CounterPunch Books and in print by Islet. He can be reached via his website, mh@michael-hudson.com. Chris Hedges’s latest book is Days of Destruction, Days of Revolt, illustrated by Joe Sacco.

Fellow Americans, Wake Up & Escape The Matrix

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Where Do Matters Stand?

On the eve of World War II the United States was still mired in the Great Depression and found itself facing war on two fronts with Japan and Germany. However bleak the outlook, it was nothing compared to the outlook today.

By Paul Craig Roberts

Source: Covert Geopolitics

Has anyone in Washington, the presstitute Western media, the EU, or NATO ever considered the consequences of constant military and propaganda provocations against Russia? Is there anyone in any responsible position anywhere in the Western world who has enough sense to ask: “What if the Russians believe us? What if we convince Russia that we are going to attack her?”

The same can be asked about China.

The recklessness of the White House Fool and the media whores has gone far beyond mere danger. What do the Russians think when they see that the Democratic Party intends to elect Hillary Clinton president of the US? Hillary is a person so crazed that she declared the president of Russia to be “the new Hitler” and organized through her underling, neocon monster Victoria Nuland, the overthrow of the democratically elected government of Ukraine. Nuland installed Washington’s puppet government in a former Russian province that until about 20 years ago was part of Russia for centuries.

I would bet that this tells even the naive pro-western part of the Russian government and population that the United States intends war with Russia.

Ever since Russia stood up to Obama over Syria, the Russians have been experiencing hostile propaganda and military operations on their borders. These provocations are justified by Washington and its NATO vassals as a response to “Russian aggression.” Russian aggression consists of nothing but obviously false assertions that Russia is about to invade the Baltics, Poland, and Romania and recreate the Soviet Empire, the Eastern European part of which, together with the former Russian provinces of Georgia and Ukraine, now belong to the American Empire.

The Russians know that the propaganda about “Russian aggression” is a lie. What is the purpose of the lie other than to prepare the Western peoples for war with Russia?

There is no other explanation.

Even morons such as Obama, Merkel, Hollande, and Cameron should be capable of understanding that it is extremely dangerous to convince a major military power that you are going to attack. To simultaneously also convince China doubles the danger.

Clearly, the West is incapable of producing leadership capable of preserving life on earth.

What can be done when the entire West demonstrates a death wish for Planet Earth?

Until the criminal regimes of Clinton, George W. Bush, and Obama, American presidents from John F. Kennedy forward worked to reduce tensions with the Soviets. Kennedy worked with Khrushchev to reduce tensions caused by US missiles in Turkey and Soviet missiles in Cuba. President Nixon negotiated SALT I (the Strategic Arms Limitation Treaty) and the Anti-Ballistic Missile Treaty. President Carter negotiated SALT II, which was never ratified by the US Senate but was observed by the executive branch. President Reagan negotiated with Soviet leader Gorbachev the end of the Cold War. President George H.W. Bush in exchange for Gorbachev’s agreement to the reunification of Germany promised that NATO would not move one inch to the East.

All of these achievements were thrown away by the neoconized Clinton, George W. Bush, and Obama regimes, each a criminal regime on par with Nazi Germany.

Today life on Planet Earth is far less secure than during the darkest days of the Cold War. Whatever threat global warming poses, it is miniscule compared to the threat of nuclear winter. If the evil that is concentrated in Washington and its vassals perpetrates nuclear war, cockroaches will inherit the earth.

I have been warning about the growing danger of a nuclear war resulting from the arrogance, hubris, ignorance, and evil personified by Washington. Recently, four knowledgable Russian-Americans spelled out the likely consequences of trying to drive Russia to submission with war threats: http://www.paulcraigroberts.org/2016/06/03/41522/

See also: http://www.paulcraigroberts.org/2016/05/28/as-our-past-wars-are-glorified-this-memorial-day-weekend-give-some-thought-to-our-prospects-against-the-russians-and-chinese-in-world-war-iii/

Don’t expect the brainwashed American population to have the moral conscience and fortitude to prevent nuclear war or even the intelligence to prevent their own vaporization. In a recent article in the Wall Street Journal Scott Sagan and Benjamin Valentino report that 59% of the US population support attacking Iran with nuclear weapons in the event that Iran sank one US Navy ship: http://www.wsj.com/articles/would-the-u-s-drop-the-bomb-again-1463682867

Republicans were much more likely than Democrats to approve attacking Iran with nuclear weapons with 81% of Republicans approving nuclear war compared to 47% of Democrats. Yet, the Democrats are behind Hillary who would be the first to use nuclear weapons. After all, a feminized woman has to prove how tough she is, just as Margaret Thatcher was “the Iron Lady.”

Before it is too late for Americans and all of humanity, arrogant Americans need to recall that “those who live by the sword, die by the sword.”

The economic picture is equally dismal and unpromising. The latest payroll jobs report was even more awful than reported. Hardly any new jobs were created, but what largely escaped reporting is the fact that the economy actually lost 59,000 full-time jobs.

Increasingly the US economy consists of part-time jobs that cannot support an independent existence. Thus, more Americans age 19-34 live at home with parents than independently with spouses or partners. Fully half of 25-year old Americans live in their childhood rooms in their parents’ homes.

This is the “New Economy” that the filthy lying neoliberal economists promised would be reward for the American work force giving up their manufacturing and professional skill jobs to foreigners. What a monstrous lie the neoliberal economists told so that corporate executives and shareholders could put into their own pockets the living wage of the American work force. These neoliberal economists, and, alas, libertarian “free market” ones, have not been held accountable for their impoverishment of the American work force deeply buried in debt with no future prospects.

Those few Americans who have any awareness are beginning to realize that the One Percent and the western governments that serve them are re-establishing feudalism. The brilliant and learned economist, Michael Hudson, has labeled our era the era of neo-feudalism.

He is correct. The majority of young Americans come out of university heavily indebted, primed for debtor prison. When half of 25-year olds cannot marry and form households, how can anyone believe that housing sales and prices are rising except as a result of speculative investors banking on rental income from a population that cannot even pay its student loans.

The United States is the sickest place on earth. There is no public or political discussion of any important issue or of the multiple crises that confront America or the crises that America brings to the world.

The American people are so stupid and unaware that they are capable of electing a criminal and a warmonger like Hillary president of the United States and be proud of it.

These “tough” Americans are so frightened of hoax dangers, such as “Muslim terrorists” and “Russian aggression” that they willingly sacrificed their depleted pocketbooks, the Constitution of the United States—an act of treason on the part of the American people who utterly failed their responsibility to protect the Constitution—and their own liberty to a universal police state that has all power over them.

It is extraordinary that once-proud, once-great European peoples look for leadership from a country of moronic non-entities who have pissed away the liberty, security, and prosperity that their Founding Fathers gave to them.

Fellow Americans, if you care to avoid vaporization and, assuming we do avoid it, live a life other than serfdom, you must wake up and realize that your most deadly enemy is Washington, not the hoax of “Russian aggression,” not the hoax of “Muslim terrorism,” not the hoax of “domestic extremism,” not the hoax of welfare bankrupting America, not the hoax of democracy voting away your wealth, which Wall Street and the corporations have already stolen and stuck in their pockets.

If you cannot wake up and escape The Matrix, your doom will bring the doom of the planet.

Hillary Clinton’s Email Absolution: Two Parties, One Criminal Regime

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By Eric Draitser

Source: StopImperialism.org

What was your reaction when you heard FBI Director James Comey announce to the world that the Bureau would not be recommending that charges be filed against Hillary Clinton over her handling of emails while she was Secretary of State?  Did you do a humorous spit take with your coffee like some modern day Danny Thomas?  Were you frozen in place like Americans were on November 22, 1963?  Did your jaw hit the floor with your tongue rolling out like a flabbergasted cartoon character?

Chances are you weren’t the least bit surprised that no charges were recommended.  But what does that tell you about our political system?

That millions of Americans weren’t remotely caught off guard by the exculpation of Hillary Clinton is less a commentary about American attitudes than it is a clear indication of the all-pervasive criminality that is at the heart of America’s political ruling class.  And the fact that such criminality is seen as par for the course demonstrates once again that the rule of law is more a rhetorical veneer than a juridical reality.

But consider further what the developments of recent days tell us both about the US and, perhaps even more importantly, the perception of the US internationally. For while Washington consistently wields as weapons political abstractions such as transparency, corruption, and freedom, it is unwilling to apply to itself those same cornerstones of America’s collective self-conception. Hypocrisy is perhaps not strong enough a word.

Not Even Hiding It Anymore…    

Remember the good old days when corrupt politicians committed their crimes in smoke-filled rooms, making handshake deals in quiet corners of luxury hotel suites or over lobster at five star restaurants? Those things certainly still happen, but the transgressions, like all things, seem to have lost a bit of their classiness. It may not be the Plaza Hotel, but the Phoenix airport was no less a scene of wanton lawlessness and impropriety when former President, and soon to be First Gentleman, Bill Clinton met privately with Attorney General Loretta Lynch.

The meeting, which only came to light thanks to the work of local ABC15 morning anchor Christopher Sign, has been widely criticized by pundits and legal experts from both sides of the political spectrum.  Naturally, questions about impropriety, and potential illegal tampering in a federal investigation, were immediately raised once the meeting was made public.  Of course, nothing was done to alleviate any of those concerns, calling into question the very impartiality of the investigation.

But the larger story has to do with symbolic message being sent by the meeting.  Specifically, there is one set of laws for American citizens, and an entirely different set of laws for political elites like the Clintons.

Moreover, there’s more to it than just criminality.  There is the air of superiority which oozes from every action taken by the Clintons who have made hundreds of millions of dollars unscrupulously pandering to, and serving the interests of, the financial elite of Wall Street and the corporate oligarchy.  That feeling of invincibility is what drives someone like Bill Clinton to demand that the FBI surrounding him at the Phoenix airport dictate to bystanders that there are to be “no photos, no pictures, no cell phones.”  To make such a demand is to see oneself as above the law, above the First Amendment, above the plebs, as it were.

And this sort of behavior is what we’ve come to expect from the Clintons.  Who can forget the seemingly endless rap sheet that the dynamic Democrat duo has earned over the decades?  The Whitewater Scandal, in many ways a template for the Clinton email scandal, involved shady business practices and political insider dealing by the Clintons and their real estate developer cronies.  And, like the email scandal, Whitewater was an example of the Clintons deliberately destroying records that likely implicate them in very serious crimes.

As the New York Times reported in 1992, “The Clintons and Mr. McDougal disagree about what happened to Whitewater’s records. Mr. McDougal says that at Mr. Clinton’s request they were delivered to the Governor’s mansion. The Clintons say many of them have disappeared. Many questions about the enterprise cannot be fully answered without the records.”

So it seems the Clintons have this nasty habit of committing crimes and then destroying the records of those crimes and claiming complete ignorance about what happened.  For you and me, such a flimsy excuse would go over like a lead balloon, likely leading to jail time.  For the Clintons, the controversy quietly fades away and slips down the memory hole.

And then of course there’s the mysterious death of Deputy White House Counsel Vince Foster, the man who filed three years of delinquent Whitewater corporate tax returns, and then was subsequently found dead a month later.  While his death was officially ruled a suicide, the serendipitous development for the Clintons led to speculation that Foster was killed on the order of the Clintons in order to silence a potentially damning source of information about Clinton misdeeds.

Indeed, some claim that evidence exists that Foster was in fact murdered, including the statements from one of the lead prosecutors investigating the death, Miguel Rodriguez, who claims that photos showed a gunshot wound on Foster’s neck, a wound that was not mentioned in the official report.  Whether true or not, the speculation about the Clintons’ involvement in a political assassination has only grown.

But of course there are so many more scandals it’s hard to keep count.  From appointments of Clinton Foundation donors to key State Department positions in a sort of “pay for play” scheme, to the salaries paid to people like Hillary’s Deputy Chief of Staff Huma Abedin who, while working for the State Department, alsoworked for Teneo, a consulting firm run by another close Clinton crony.  And who could forget the Clinton Foundation and the myriad conflict of interest issues, lack of transparency, and outright criminality associated with it?

This article would go on for tens of thousands more words were it to chronicle all of Clinton’s scandals.  But the true focus here is not even simply on Clinton crimes, but rather on the culture of corruption and lawlessness that exists unfettered in Washington; it is the endemic corruption that the Clintons represent, perhaps better than anyone.

Corruption and Malfeasance: As American as Apple Pie

It is difficult to encapsulate in a few short paragraphs the multi-layered forms of corruption that are embedded in the very fabric of America’s political culture. Perhaps it could be best separated into three distinct, though interrelated, categories: the open door, the closed door, and the revolving door.

The open door of corruption and criminality represents the kind of wrongdoing that takes place out in the open, in full view of the public, but which is treated as anything but criminal.  Whether it be lying the US into wars of aggression – the Iraq War was based on lies about weapons of mass destruction, the war on Libya was sold on the pretext of lies about civilians being murdered by the government – or simply the obviously corrupt form of campaign financing that allows Wall Street and the corporate elites to bankroll the alleged “democracy” that the US so proudly proselytizes the world over; these forms of corruption and criminality are in many ways the bedrock of American politics.

As the International Military Tribunal at Nuremberg famously stated, “To initiate a war of aggression…is not only an international crime; it is the supreme international crime, differing only from other war crimes in that it contains within itself the accumulated evil of the whole.” By this very definition, every political leader in the US going back decades is guilty of war crimes.

Going further, one can draw on the legacy of Franklin Roosevelt who, in a now legendary speech at Madison Square Garden in 1936, unequivocally proclaimed:

We had to struggle with the old enemies of peace–business and financial monopoly, speculation, reckless banking, class antagonism, sectionalism, war profiteering. They had begun to consider the Government of the United States as a mere appendage to their own affairs. We know now that Government by organized money is just as dangerous as Government by organized mob. Never before in all our history have these forces been so united against one candidate as they stand today. They are unanimous in their hate for me–and I welcome their hatred.

But today, rather than welcoming the hatred of Wall Street and the corporate oligarchy, America’s politicians pander to them, grovel before them, kiss their rings in hopes of securing for themselves a financially and professionally lucrative future. So deep is the rot that most Americans passively accept this as business as usual, failing to understand that it is anything but acceptable.

The closed door forms of criminality are often completely concealed from public view, and what does become known is only thanks to courageous actions by reporters and whistleblowers.  Take for instance the activities of the CIA, only a fraction of which were exposed by the Church and Pike Committees, which included obviously criminal activities ranging from the overthrow of governments to assassination of political leaders to domestic spying and propaganda, all of which being blatantly illegal.

But the closed door also conceals the activities of prominent political figures such as Hillary Clinton, whosesecret lobbying for things like right wing coup governments in Honduras, shows the degree to which politicians literally conspire in secret.  Clinton, like so many of her colleagues, also grovels at the feet of Wall Street financiers, including taking massive payoffs for speeches with the tacit wink-wink-nudge-nudge that goes along with them.

Finally, the revolving door is one of the shining examples of America’s political corruption, or perhaps better put, complete subservience to the corporate oligarchy.  When key government officials leave public life and head to that oft-lionized “private sector,” what they are actually providing is access – access to government for corporations and capital.

When the head of the Centers for Disease Control (CDC) leaves her government post and takes a job as President of Merck & Co. Inc’s vaccine division, no one bats an eye.

When the architect of Obamacare, who before working on the health plan was an executive at one of the nation’s largest health insurance providers, leaves her government job and takes a position with Johnson & Johnson’s government affairs and policy group, it garners barely a passing comment.

When Wall Street executives take positions at head of the Treasury Department – Tim Geithner and Hank Paulsen both worked for Goldman Sachs, as just one example – it is simply “the way things are.”  This revolving door form of political corruption may not be anything new, but it is so rarely defined as corruption.  But that’s exactly what it is.

However, none of this prevents Washington from publicly admonishing other countries for their corruption problems.  Russia? Zimbabwe? Venezuela? China? Nigeria? All corrupt.  United States? Well, er, ummm…Democracy! Freedom!  This is the sort of reflexive hypocrisy that typifies American exceptionalism or, as the rest of the world might call it, the arrogance of empire.

 

Related Podcast:

Progressive Commentary Hour – 7.19.16

Hillary and Tim Kaine: a Match Made on Wall Street

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By Eric Draitser

Source: CounterPunch

Earlier this week, Bernie Sanders warned that Hillary Clinton’s eventual vice presidential pick must not be someone from the milieu of Wall Street and Corporate America. And while Sanders is still fighting to win the Democratic Party nomination in what many have argued is a rigged system with a foregone conclusion, it appears that Sanders is also intent on influencing the course of the Clinton campaign and the party itself.

In a thinly veiled demand that Clinton embrace the core principles of the Sanders campaign in order to secure the support of Sanders’s political base, the insurgent Democratic candidate hoped aloud “that the vice-presidential candidate will not be from Wall Street, will be somebody who has a history of standing up and fighting for working families, taking on the drug companies…taking on Wall Street, taking on corporate America, and fighting for a government that works for all of us, not just the 1%.”

And while that description may sound positive for its sheer idealism, it does not seem to account for the fact that banks and corporations effectively own both major parties, and that nearly every top Democrat is in various ways connected to the very same entities. In any event, it is useful still to examine a few of the potential Clinton running mates in order to assess just what sort of forces are going to be put in motion to help deliver a Clinton presidency.

The Actors on the Playbill

Beltway pundits are fond of remarking that Tim Kaine, the underwhelming centrist Democrat senator (and former Governor) from Virginia, is at the top of the list for Clinton. He’s safe. He’s experienced. He’s safe. He’s a Democratic Party loyalist with experience fundraising. Oh, and did I mention that he’s safe? Such is the general tenor of the conversation around Kaine, a politician with a long track record and a mostly forgettable personality known more to DC insiders than to the general voting public.

What could be better for Hillary Clinton, perhaps the least liked Democratic (presumptive) nominee in decades, than to have a party establishment insider who represents the status quo as her running mate in an election year that will undoubtedly be remembered for the ostensibly anti-establishment candidates and rhetoric on display throughout?

To be fair, Kaine does represent Virginia, a swing state that is crucial for Donald Trump, and which could spell victory for Clinton should she carry it.  And of course, Kaine can also posture as “tough on Wall Street” from his days as DNC Chairman and party mouthpiece during the passage of the so-called “Wall Street reform” bill.  Despite nothing substantive coming out of the bill, Kaine is still able to cash in the political currency derived from that bill, and perhaps meekly shield Clinton from continued attacks vis-à-vis her connections to Wall Street.

Of course Kaine also comes with his own baggage, including his anti-abortion stance which earned him the ire of many pro-choice activists in Virginia when he was Governor.  Considering the shameless droning from Clinton and her backers about being “the first woman president,” it would certainly raise serious questions – and open up an obvious angle of attack for Trump – were she to sport her feminism and focus on women’s reproductive rights by selecting a man with an anti-abortion record.

A look down the list of other potential choices reveals that Clinton truly has very little to choose from.  Both Housing and Urban Development (HUD) Secretary Julian Castro, as well as Labor Secretary Tom Perez, have both had their names bandied around as Clinton seeks to solidify the Latino vote in an election where the Republican candidate has worked tirelessly to alienate that all-important demographic as much as possible.  But of course, the obvious question to be asked in response to either of these potential selections would be “Who?” Neither Castro nor Perez is well known nationally, nor have either of them won major elections or really done anything of note in their tenure in Obama’s cabinet.  Despite being Latinos, they are utterly forgettable, and unlikely to bring significant returns to Clinton.

While other names such as New Jersey junior senator Cory Booker, as well as Ohio senator Sherrod Brown, have been discussed, both men hail from states with Republican governors, meaning that were they to accept a VP slot, their senate vacancies would be likely filled by Republicans, a scenario that Senate Minority Leader Harry Reid has already said “Hell no!” to, vowing to “yell and scream to stop that.”

Who Else Is “Ready for Hillary”?

So that then leaves the two most interesting potential running mates: Elizabeth Warren and Bernie Sanders himself. Warren, who conspicuously refused to endorse Clinton over Sanders, has tremendous upside for Clinton as she has been perhaps the Democratic Party’s most vehement opponent of Wall Street, having led many high profile attacks on the major banks in her tenure in the Senate.  From a public relations branding perspective, she is essentially the female Bernie Sanders, a progressive Democrat who presents herself as an ally of working people and an enemy of bankers. For Clinton, Warren would also round out the “First Woman…” card, allowing the Clinton campaign to quite literally become a campaign about breaking the glass ceiling in US politics. The stump speeches almost write themselves.

Finally, there’s Mr. #FeelTheBern himself. His latest comments (mentioned above) certainly do have a subtext that implies his willingness to accept a running mate slot.  Having fashioned himself as the champion of the middle class and threat to the Washington establishment, Bernie would provide much in the way of credibility to a lackluster Clinton campaign which has failed to excite even many ardent Democrats.  Sanders would also guarantee a unified Democratic Party ticket, and provide much needed defense of Clinton’s left flank.  In short, Sanders, like Warren, would give anti-Clinton progressives the pretext many of them need to justify their voting for the much-hated Clinton.

Never mind the fact that neither Sanders nor Warren would actually do anything to combat Wall Street finance capital as Vice President.  Never mind the fact that no one on Wall Street is particularly scared of either politician being given the ceremonial power that comes with the Vice Presidency.  These are just the kind of uncomfortable, but inescapable, facts that progressives must choose to ignore.

The difficulty for either Sanders or Warren is the marketing of their decision to left progressives, some of whom would see collaboration with Clinton and the Clinton political machine as a betrayal and a complete sell-out.  However, aside from driving a some relatively small number of progressives to vote for Jill Stein and the Green Party (or stay home entirely), it is unlikely that the negative impact in the progressive base would amount to anything more than some hurt feelings followed by the usual acquiescence to the Democratic Party line.

If such an analysis sounds cynical and jaded, that’s because it is. Perhaps a better descriptor would be disdainful.  Indeed, as someone who watched with bemused melancholy as progressives lined up to support Al Gore in 2000, John Kerry in 2004, and Barack Obama in 2008 and 2012, my position on support for ANY Democrat is the same as Harry Reid’s position on swing state senator VP picks: Hell no!

Indeed, the very notion of collaboration with a war criminal and Wall Street puppet such as Clinton is anathema to everything the left and “progressives” are supposed to stand for.

Of course, there is also the elephant (and donkey) in the room: both major parties are wholly owned subsidiaries of finance capital and the corporations that rule over us. This is the realization that millions of Americans have already made, and which millions more are making.  This is the realization that keeps Democratic and Republican apparatchiks up at night.  And this critical revelation is what Bernie, Liz, & Co. are there to suppress.

Eric Draitser is the founder of StopImperialism.org and host of CounterPunch Radio. He is an independent geopolitical analyst based in New York City. You can reach him at ericdraitser@gmail.com.

DNC Caught Accepting Money from Union-Busting Companies in New Leak

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By Tom Cahill

Source: U.S. Uncut

A new set of documents leaked by hacker Guccifer 2.0 allegedly shows the Democratic National Committee has no qualms about asking for donations from some of the most evil corporations in America — even the corporations whose values are directly in opposition to the Democratic Party’s stated goals.

The spreadsheet, which can be viewed in its entirety here, shows that DNC chair Debbie Wasserman Schultz and others within the DNC contacted several dozen corporate lobbyists to secure donations for the 2016 election cycle, soliciting four, five, and six-figure donations from their clients. The same spreadsheet shows the DNC asking for and receiving large sums of money from labor unions, environmental groups, and other advocates of progressive causes who may have likely given more thought to their donation had they known the DNC was asking their biggest opponents for money as well.

On a tab labeled “YesCommits,” meaning donors that said yes to the DNC’s requests for money, the Service Employees International Union (SEIU) committed to a $45,000 donation for 2016. Just four slots below, Walmart’s PAC for Responsible Government is shown having donated $15,000 to the Democratic Party in 2015.

Walmart has always been openly anti-union and is known nationwide for forcing employees into captive-audience meetings, in which anti-union propaganda videos are shown to new hires. Nonetheless, at the same time the DNC asked Walmart for money, it also asked for and received a $45,000 donation from the United Food and Commercial Workers union, one of the unions leading and sponsoring protests and strikes at Walmart stores nationwide for the corporation’s opposition to raising wages and displays of open hostility toward unions.

In the “Active” tab, under which active requests that are awaiting a reply are filed, the DNC is seen asking the National Restaurant Association PAC for $45,000, and asking for an undisclosed amount from McDonald’s.

This is particularly ironic, as the National Restaurant Association is one of the leading opponents of a national minimum wage hike, and the SEIU has been leading and funding the Fight for $15 minimum wage campaign since 2012, with McDonald’s as one of its key targets. The Democratic Party has had a $15/hour minimum wage in its official platform since August 2015, when party activists passed a nonbinding resolution, which became official last weekend when the minimum wage hike was approved by the Platform Drafting Committee.

The DNC also received $15,000 from Verizon and $105,000 from Comcast despite also asking the Communications Workers of America (CWA) for funding. The union is currently actively fighting companies like Verizon and Comcast for better wages and working conditions for its workers.

The spreadsheet also shows the DNC has no problem soliciting organizations that have actively fought the Democratic Party’s key legislative fights over the years. While the Affordable Care Act is widely seen as President Barack Obama’s chief legislative victory throughout his two terms in office, the DNC nonetheless asked for a donation from the American Medical Association, which was one of the earliest opponents of healthcare reform, dating all the way back to 2009. The DNC also asked for money from health insurance giants Anthem, Cigna, and UnitedHealth group, despite all three of those companies donating to Republicans campaigning on a promise to repeal Obamacare.

Another key legislative victory for the Obama administration was the passage of the Dodd-Frank Act, which was written with the aim of reining in abuse on Wall Street in the wake of the 2008 financial crisis. Some of the big banks and financial institutions that opposed Dodd-Frank also received fundraising asks from the DNC, including Wells Fargo, Citigroup, HSBC, Capital One, UBS, and Morgan Stanley. The DNC also asked Wall Street lobbyists for money in 2016, including the Securities Industry and Financial Markets Association (SIFMA) PAC and the American Bankers Association PAC. Bloomberg once referred to SIFMA as “Wall Street’s largest trade group.”

Other opponents of the Democratic Party’s agenda to regulate the prices of pharmaceutical drugs have been pursued by the DNC. Pharmaceutical kingpin Pfizer committed to a $15,000 donation for 2016 after being asked for a stunning $150,000, while Merck and Eli Lilly were both asked to donate. In January, Pfizer increased the prices of more than 100 different drugs, some by as much as 20 percent. Eli Lilly jacked up the price of its Humalog insulin by 20 percent, while Pfizer increased prices on the anticonvulsant Dilantin, angina drug Nitrostat, hormone therapy drug Menest, and irregular heartbeat medication Tykosyn by 20 percent each.

Merck, which makes the type 2 diabetes drug Januvia, increased the drug’s price by 20.8 percent in 2015. Merck CEO Kenneth Frazier, who is also the head of Big Pharma’s chief lobby, the Pharmaceutical Research and Manufacturers of America (PhRMA), defiantly defended the price increase in a Wall Street Journal interview in February.

“Merck has increased the prices of its drugs on a yearly basis, but we’ve tried to be constrained in how we’ve done it, in a way we think doesn’t prevent people from affording our drugs,” Frazier said.

Other donors the DNC solicited are notorious household names for much of the Democratic Party’s base. Weapons manufacturers BAE Systems, General Dynamics, Lockheed Martin, Northrop Grumman, and Raytheon were all targeted for donations in the 2016 cycle. Fossil fuel companies Duke Energy, Murray Energy, Peabody Energy, and Valero were also on the list. The DNC list also featured universally loathed companies like News Corp, parent company of Fox News, and Monsanto, which is reviled for monopolizing American agriculture with genetically modified food and mob-like legal tactics to subdue farmers into submission who save their seeds.

Pfizer lobbyist Julie Idelkope and News Corp lobbyist Joanne Dowdell, who are listed as points of contact on the DNC spreadsheet, did not immediately respond to interview requests. Walmart spokesman Greg Hitt responded to an email request asking what the money was for, to which he responded that they “[d]on’t have specifics on how the DNC will use the money, but it is intended to support the convention.”

He also wrote, “We gave $15,000 to the DNC’s convention fund; same as we’ve given to the RNC’s convention fund.”

 

Tom Cahill is a writer for US Uncut based in the Pacific Northwest. He specializes in coverage of political, economic, and environmental news. You can contact him via email at tom.v.cahill@gmail.com.

Bernie Sanders Endorses the World’s Greatest (Presumptive) Evil

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Bernie Sanders ran an extraordinary race, making lots of noise and causing great consternation, but never daring to leave the corporate duopoly. Now his job is to deliver the bulk of his sheep into Hillary Clinton’s enclosure. This final mission will require lots of lying, but Bernie got off to a good start with his surrender speech. “The Clintons have an infinite capacity for lying, and now they’ve got Bernie Sanders lying for them, too.”

By Glen Ford

Source: Black Agenda Report

“Sanders’ job is to shepherd his flock into a little leftwing corner of Hillary’s Big Tent, right next to the latrine and alongside her loyal Black Democrats.”

Bernie Sanders this Tuesday consummated his sheepdog agreement with the Democratic Party, delivering a formal endorsement of Hillary Clinton for president.  The capitulation script that Sanders read in New Hampshire, with the cackling Banshee of War at his side, could have been written back in the spring of last year, when he formally threw his hat into the race. From the very start, Sanders was firm in his allegiance to the Democratic wing of the corporate duopoly, and any indications to the contrary were purely products of his supporters wishful imaginations.

Bernie Sanders did not lie to his followers; they deceived themselves, just as most of them – the ones that were old enough – had fooled themselves into believing that Barack Obama was a peace candidate and a political progressive back in 2008, although Obama’s actual record and policy pronouncements showed him clearly to be a corporate imperialist warmonger – a political twin of his principal primary election opponent, Hillary Clinton and her philandering, huckster husband.

Back then, phony leftists like Bill Fletcher and Tom Hayden swore on their mothers’ honor that Obama’s campaign was really a people’s movement, a prelude to revolution – as if the Democrats, a militarist corporate political party, could give birth to an anti-corporate, anti-militarist people’s revolution.

Real Fascist vs. Trump Cartoon Version

Bernie Sanders threw around the word “revolution” quite a bit. He was still using it in his surrender speech on Tuesday, assuring his flock that the revolution would continue as he marched arm in arm with the most dangerous person in the world, today – far more dangerous than Donald Trump, who will be buried in a landslide of historical proportions in November by a multi-billion dollar mountain of campaign contributions from Hillary Clinton’s Democratic and Republican friends on Wall Street. Sanders’ job is to shepherd his flock into a little leftwing corner of Hillary’s Big Tent, right next to the latrine and alongside her loyal Black Democrats, who are so meek in the presence of power that they won’t even complain about the smell.

In his kow-tow to the Queen of Chaos, Sanders put words in Clinton’s mouth that she never really said, and that would be lies if she did say them. Hillary “feels” this, Hillary “believes” that – it was as if he could read Hillary’s mind.  Hillary “knows,” said Sanders, “that something is very wrong when the very rich become richer while many others are working longer hours for lower wages.” Maybe she does know that, but she has no intention to do anything about it – just as she had no intention of allowing the Democratic Party platform to oppose TPP, although she claims she’s against it. As for those compromises Clinton did make on the platform: she was lying. The Clintons have an infinite capacity for lying, and now they’ve got Bernie Sanders lying for them, too.

If only 5 percent of Bernie Sanders’ 13 million voters formed or joined a party of the 99 percent – let’s say, the Green Party – that party would have nearly twice as many members as the British Labor Party. which would be one helluva start. Or, they can crawl along with Bernie into Hillary’s stinking Big Tent, where the real fascists live – the ones with actual experience in regime change, nuclear brinksmanship and mass Black incarceration.