Thursday Reads: Poverty and Joblessness *Are* Social and Political Issues

Guess who said this:

“There are pockets of our society that are not just broken, but are frankly sick.

“It is a complete lack of responsibility in parts of our society, people allowed to feel the world owes them something, that their rights outweigh their responsibilities and their actions do not have consequences. Well, they do have consequences.”

You’re darn right! The global elites have gone too far! The banksters have stolen trillions from ordinary taxpayers, and then demanded and received massive government bailouts. Politicians have lost any sense of responsibility toward their constituents, only listening to their corporate masters and their lobbyists. Yes there are consequences and these wealthy elites will discover there are consequences for their corrupt and immoral actions.

Oh wait. That was Prime Minister David Cameron talking about the poor and jobless young people who have been rioting in the streets of London and other British cities for the past five days. I’ll bet he has absolutely no clue how ridiculous it is that he is chastising these people for looting after he and other global elites allowed banksters to steal and loot trillions with absolutely no consequences. From Raw Story:

The U.S. Federal Reserve gave out $16.1 trillion in emergency loans to U.S. and foreign financial institutions between Dec. 1, 2007 and July 21, 2010, according to figures produced by the government’s first-ever audit of the central bank.

Last year, the gross domestic product of the entire U.S. economy was $14.5 trillion.

Of the $16.1 trillion loaned out, $3.08 trillion went to financial institutions in the U.K., Germany, Switzerland, France and Belgium, the Government Accountability Office’s (GAO) analysis shows.

Additionally, asset swap arrangements were opened with banks in the U.K., Canada, Brazil, Japan, South Korea, Norway, Mexico, Singapore and Switzerland. Twelve of those arrangements are still ongoing, having been extended through August 2012.

Out of all borrowers, Citigroup received the most financial assistance from the Fed, at $2.5 trillion. Morgan Stanley came in second with $2.04 trillion, followed by Merill Lynch at $1.9 trillion and Bank of America at $1.3 trillion.

Lambert has been highlighting the hypocrisy of the global elites on the riots. Yesterday he linked to this article in the Guardian.

This scepticism toward the potency of democratic politicians – and therefore democratic politics itself – is oddly echoed by the looters themselves. Certainly no one outside the Iranian state media is calling them “protesters”, but even “rioters” seems the wrong word, carrying with it a hint of political purpose. For some, especially at the start in Tottenham, there was clearly a political dimension – with the police the prime focus of their anger. But many of the copycat actions across London and elsewhere have no apparent drive beyond the opportunistic desire to steal and get away with it. It’s striking that the targets have not been town halls or, say, Tory HQ – stormed by students last November – but branches of Dixons, Boots and Carphone Warehouse. If they are making a political statement, it is that politics does not matter.

Lambert notes that at least these looters didn’t steal $16 trillion from the U.S. Treasury.

And while the revulsion at the looting has been widespread and bipartisan – with plenty of liberals admitting to “coming over all Daily Mail” at the ugliness of the vandalism – that sense of the impotence of politics is widespread, too. One aspect of the phone-hacking scandal that went deep was its revelation that those we might think exert authority – police and politicians – were in fact supine before an unelected media corporation. The sheer power of News Corp contrasted with the craven behaviour of those we elect or entrust to look out for us.

But elected officials are supposed to protect all citizens–even the poor, the unemployed, and the elderly–aren’t they? Yet in the U.S. and Europe, the burden of the economic crisis is falling on those with the least ability to pay, while the wealthy continue to receive their government handouts. When people are pushed to the point that they feel they have nothing to lose, this is what happens. Why it is coming as such a surprise to the comfortable elites is the real mystery.

Let’s take a look at what some of the rioters themselves have said about the meaning of their actions. From Yahoo News:

The Conservative-Liberal Democrat coalition government, making deep cuts to public services to tackle a record budget deficit, has been quick to deny that the unrest was linked to austerity measures, calling the disorder “pure criminality.” [….]

Public anger over the widespread looting of shops appears to have strengthened the government’s argument, with stolen goods ranging from the expensive — televisions and jewelry — to the absurd — sweets and bottles of alcohol.

However, community leaders and rioters themselves said the violence was an expression of the frustration felt by the poorest inhabitants of a country that ranks among the most unequal in the developed world.

“They’ve raised rates, cut child benefit. Everyone just used it as a chance to vent,” one man who took part in unrest in the east London district of Hackney told Reuters.

Surprise, surprise. Cutting social services to pay for the bankers’ failures has real life consequences. Austerity measures create more unemployment, and people who don’t have jobs get hungry and scared. When you take everything from people who can least afford it, they get angry. What on earth do these people expect? What planet are they living on anyway? And no, I’m not condoning violence. I’m just saying that it’s going to happen when you push people too far.

Here are some quotes from two young women who participated in the British riots:

Two girls who took part in Monday night’s riots in Croydon have boasted that they were showing police and “the rich” that “we can do what we want”.

From The New York Times: London Riots Put Spotlight on Troubled, Unemployed Youths in Britain

“I came here to get my penny’s worth,” said a man who gave his name as Louis James, 19, a slightly built participant in the widening riots that have shaken London to its core. With a touch of guilt on Tuesday, Mr. James showed off what he described as a $195 designer sweater that he said he took during looting in Camden Town, a gentrified area of north London.

Politicians from both the right and the left, the police and most residents of the areas hit by violence nearly unanimously describe the most recent riots as criminal and anarchic, lacking even a hint of the anti-government, anti-austerity message that has driven many of the violent protests in other European countries.

But the riots also reflect the alienation and resentment of many young people in Britain, where one million people from the ages of 16 to 24 are officially unemployed, the most since the deep recession of the mid-1980s.

Don’t these politicians, police, and other observers understand that poverty and jobless *are* sociopolitical issues? Just because people are acting out of desperation or even opportunism doesn’t mean that their actions are not political. Just because someone is young and poor does not mean he or she isn’t aware that government and corporate corruption have caused much of their distress. Back to the NYT article:

In many ways, Mr. James’s circumstances are typical. He lives in a government-subsidized apartment in northern London and receives $125 in jobless benefits every two weeks, even though he says he has largely given up looking for work. He says he has never had a proper job and learned to read only three years ago. His mother can barely support herself and his stepbrothers and sisters. His father, who was a heroin addict, is dead.

He says he has been in and out of too many schools to count and left the educational system for good when he was 15.

“No one has ever given me a chance; I am just angry at how the whole system works,” Mr. James said. He would like to get a job at a retail store, but admits that he spends most days watching television and just trying to get by. “That is the way they want it,” he said, without specifying exactly who “they” were. “They give me just enough money so that I can eat and watch TV all day. I don’t even pay my bills anymore.”

Jonathan Portes, the director of the National Institute of Economic and Social Research in London, says that Mr. James’s plight reflects a broader trend here. More challenging students, Mr. Portes says, have not been receiving the attention they should as teachers, under pressure to meet educational goals, focus on children from more stable homes and those with greater abilities and social skills. Disillusioned, those who cannot keep up just drop out.

The Los Angeles Times in an opinion piece searches for the reasons for the violence and asks if it could happen here.

The Tottenham riots that blindsided Britain were sparked by the fatal police shooting of Mark Duggan, a 29-year-old black man. Over the past few days, they’ve continued and spread, turning into what has largely become youths’ looting and destroying parts of London. But no one is exactly sure why they’re doing it. Prime Minister David Cameron called it “criminality, pure and simple.”

But why have the riots continued day after day?

The riots are neither politically or racially fueled, wrote Doug Sanders of the Globe and Mail. They’re the result of a “lost generation” of youth under 20 who have little to lose and a bleak future. Here’s an excerpt:

Whether the thousands of rioters actually did express disillusionment — some did say they were angry at police or the world, but many appeared gleeful or greedy — it is clear that most had nothing else to do with themselves, and no reason to fear or feel responsible for the consequences of their actions.

This is a chronic problem in Britain, which has a “lost generation” of young high school dropouts far larger than most other Western countries’.

It’s so simple-minded to expect that youthful rioters are going to calmly explain their behavior in a reasoned, intellectual manner or that they are not going to act euphoric once they let go of restraint and begin acting out as part of a mob. None of that means that the reasons for their behavior are not political.

It seems to me that masses of young people who have “little to lose and bleak future” is in fact a powerful political issue for any society. And when people are powerless, there are few ways for them express their anger. Violence is one way to get attention from the powerful.

Can it happen here? You bet it can. As long as the President and Congress continue enacting austerity measures and ignoring unemployment and general misery among ordinary Americans, it’s guaranteed the U.S. will see riots in the streets–as we have in the past. When it happens here, will our elites be as dumbfounded and out-of-touch with reality as those in Great Britain? Probably.

I posted this in a comment yesterday, but I’m going to put it up again here. It’s an interview of writer and broadcaster Darcus Howe by a clueless BBC “journalist.”

—————————————-

That’s my suggested reading for today. What do you recommend?

UPDATE: I found a piece in the Guardian that reflects my thinking.

Seumas Milne: These riots reflect a society run on greed and looting

It is essential for those in power in Britain that the riots now sweeping the country can have no cause beyond feral wickedness. This is nothing but “criminality, pure and simple”, David Cameron declared after cutting short his holiday in Tuscany. The London mayor and fellow former Bullingdon Club member Boris Johnson, heckled by hostile Londoners in Clapham Junction, warned that rioters must stop hearing “economic and sociological justifications” (though who was offering them he never explained) for what they were doing.

When his predecessor Ken Livingstone linked the riots to the impact of public spending cuts, it was almost as if he’d torched a building himself. The Daily Mail thundered that blaming cuts was “immoral and cynical”, echoed by a string of armchair riot control enthusiasts. There was nothing to explain, they’ve insisted, and the only response should be plastic bullets, water cannon and troops on the streets.

We’ll hear a lot more of that when parliament meets – and it’s not hard to see why. If these riots have no social or political causes, then clearly no one in authority can be held responsible….If this week’s eruption is an expression of pure criminality and has nothing to do with police harassment or youth unemployment or rampant inequality or deepening economic crisis, why is it happening now and not a decade ago? The criminal classes, as the Victorians branded those at the margins of society, are always with us, after all. And if it has no connection with Britain’s savage social divide and ghettoes of deprivation, why did it kick off in Haringey and not Henley?

…To refuse to recognise the causes of the unrest is to make it more likely to recur – and ministers themselves certainly won’t be making that mistake behind closed doors if they care about their own political futures.


Friday Reads

Good Morning!

At least there’s some good news this morning.  Senator Harry Reid has found a deal to end FAA furloughs so that lots of people can return to work and those monies go to the government and not into the pockets of the airline industry.

Under a deal Reid made with House Speaker John Boehner (R-Ohio), the Senate will pass the House bill that includes cuts to rural flight service to airports in Nevada, West Virginia and Montana. But Transportation Secretary Ray LaHood will use his authority to waive the airports from the cuts, ending a 13-day impasse that left 4,000 FAA employees and about 70,000 construction employees out of work.

Reid said the deal did not solve the issues that led to the partial shutdown of the FAA, but he said those can be dealt with another day.

“I am pleased to announce that we have been able to broker a bipartisan compromise between the House and the Senate to put 74,000 transportation and construction workers back to work,” Reid said in a statement released by his office. “This agreement does not resolve the important differences that still remain. But I believe we should keep Americans working while Congress settles its differences, and this agreement will do exactly that.”

NASA’s funding may be on the chopping block, but the agency continues to do first class science.  It has announced that it has found evidence of liquid water on Mars.

Pictures taken by the powerful HiRISE camera aboard the Mars Reconnaissance Orbiter (MRO) showed fingers of dark material running down rocky slopes facing the equator during spring and summer months. Scientists believe that this represents a significant sign that briny water is flowing on the surface of the red plant.

The dark stripes, approximately 0.5 yards wide and hundreds of yards long, appear during the warm months and then disappear again in cold months. The salty surface of Mars means that liquid water would be salty as well, making it less likely to freeze at the observed tempratures.

“These dark lineations are different from other types of features on Martian slopes,” MRO project scientist Richard Zurek said in a press advisory. “Repeated observations show they extend even farther downhill with time during the warm season.”

In my Monday Reads I mentioned the horrible famine taking place in Somalia.  SOS Hillary Clinton has made an appeal to al-Shabaab to focus on feeding hungry people and letting world aid groups do their jobs.

U.S. Secretary of State Hillary Clinton on Thursday appealed to al-Shabaab militants in Somalia to give unfettered access to relief workers trying to aid thousands of people threatened by famine.  Clinton said a high-level U.S. team will lead a fact-finding mission to neighboring Kenya to review relief efforts.

The United States lists al-Shabaab, which has ties to al-Qaida, as a terrorist organization and has actively helped Somalia’s U.N.-supported transitional government try to resist a takeover by the Islamic militants.

But in an unusual direct appeal to al-Shabaab, Clinton urged the group to drop what she said was its deliberate effort to block food deliveries in south-central Somalia and in parts of the capital, Mogadishu, under its direct or indirect control.

“It is particularly tragic that during the holy month of Ramadan, al-Shabaab are preventing assistance to the most vulnerable populations in Somalia – namely children, including infants, and girls and women who are attempting to bring themselves and those children to safety and  the potential of being fed before more deaths occur,” said Clinton. “I call on al-Shabaab to allow assistance to be delivered in an absolutely unfettered way throughout the area that they currently control.”

Al-Shabaab, which dominates the southern part of Somalia, maintains there is no famine and has barred the entry of aid groups other than the International Committee of the Red Cross.

Creepy old polygamist leader–Warren Jeffs– has been convicted of child sex abuse despite his self representation in criminal court.  He mostly hid under the mantle of The Book of Mormon and his right to practice his religion as he saw fit.

Warren Jeffs, leader of the Fundamentalist Latter Day Saints, has been convicted on child sexual assault charges.

His case stems from his relationship with two young followers he took as brides in what the FLDS church calls “spiritual marriages.”

Jeffs has acted as his own attorney during the trial after firing his attorneys on July 28.

In 2008, authorities raided the YFZ ranch near Eldorado, and seized about 400 children.

Jeffs faces up to life in prison.

A forensic analyst testified that Jeffs was an almost certain DNA match to the child of a 15-year-old mother.

Jeffs also was accused of assaulting a 12-year-old girl.

At least 2000 Syrians that oppose the dictator there have been killed.  The latest slaughter–which is taking place during the Islamic holiday of Ramadan–includes tanks in Hama.  SOS Hillary Clinton has said the current government of Syria has lost all legitimacy.

“The sound of tank shelling and their heavy machineguns echoed in Hama all day. We fear many more martyrs. Most people in my neighborhood have fled,” said one resident in Sabounia district, a small business owner who did not want to be named.

“The shabbiha (militiamen loyal to Assad) are cleaning the streets near the university campus to stage a pro-Assad march tomorrow as if nothing is happening in Hama,” he told Reuters by satellite phone.

Electricity and communications have been cut off and as many as 130 people have been killed in a five-day military assault since Assad, from Syria’s minority Alawite sect, sent troops into the city on Sunday, residents and activists said.

U.S. Secretary of State Hillary Clinton said Washington believed Assad’s forces were responsible for the deaths of more than 2,000 Syrians in their attacks on peaceful protesters during the five-month uprising.

Clinton repeated that the United States believed Assad had lost legitimacy in Syria and said Washington and its allies were working on strategies to apply more pressure beyond new sanctions announced earlier on Thursday.

Meanwhile, happy times are here again if you’re stinking, filthy rich.

Nordstrom has a waiting list for a Chanel sequined tweed coat with a $9,010 price. Neiman Marcus has sold out in almost every size of Christian Louboutin “Bianca” platform pumps, at $775 a pair. Mercedes-Benz said it sold more cars last month in the United States than it had in any July in five years.

Even with the economy in a funk and many Americans pulling back on spending, the rich are again buying designer clothing, luxury cars and about anything that catches their fancy. Luxury goods stores, which fared much worse than other retailers in the recession, are more than recovering — they are zooming. Many high-end businesses are even able to mark up, rather than discount, items to attract customers who equate quality with price.

“If a designer shoe goes up from $800 to $860, who notices?” said Arnold Aronson, managing director of retail strategies at the consulting firm Kurt Salmon, and the former chairman and chief executive of Saks.

The rich do not spend quite as they did in the free-wheeling period before the recession, but they are closer to that level.

The luxury category has posted 10 consecutive months of sales increases compared with the year earlier, even as overall consumer spending on categories like furniture and electronics has been tepid, according to the research service MasterCard Advisors SpendingPulse. In July, the luxury segment had an 11.6 percent increase, the biggest monthly gain in more than a year.

I’d say that trend might end given that equities markets are crashing and crashing extraordinarily big time.  Yesterday was the worst day for the market since 2008.  That’s what happens when the confidence fairy runs off with the high priest of voodoo economics. Poof!  Don’t say I didn’t tell you to bail a few months ago!

Stocks plunged Thursday in their single worst day since the 2008 financial crisis.

The Dow tumbled 512 points — its ninth deepest point drop ever — as fear about the global economy spooked investors.

“The conventional wisdom on Wall Street was that the economy was growing — that the worst was behind us,” said Peter Schiff, president of Euro Pacific Capital. “Now what people are realizing is the stimulus didn’t work, and we may be headed back to recession.”

Also, don’t tell me I didn’t tell you that the stimulus wasn’t going to be enough to jump start the economy either.  I think we all saw it.  Too bad they never listen to us?  Hmmmm? So, I’ll continue to watch this.

The disaster at Fukushima nuclear power plant continues. Radiation levels inside the crippled was said to be at levels that went beyond measurement capabilities.  Folks, this is so scary. I can’t imagine the bravery of the workers trying to deal with this.  It sounds like going near the place is a death sentence.

Radiation dosages of 5 sieverts per hour were detected indoors on the second floor of the No. 1 reactor at the crisis-hit Fukushima Daiichi nuclear power plant on Tuesday, the highest figure yet indoors, plant operator Tokyo Electric Power Co. said.

The figure was detected in front of a pipe in an air-conditioning machine room, the utility said, adding the dosage may be larger than the measured amount as it exceeds the capacity of measuring equipment.

Radioactive substances are considered to be staying in the pipe after they entered there when pressure in the reactor’s containment vessel was lowered on March 12, according to Tokyo Electric known as TEPCO.

The company has made the area off-limits.

TEPCO also said radiation doses of more than 10 sieverts, or 10,000 millisieverts, per hour were detected outdoors again Tuesday at the plant.

If exposed to such a high-level dosage of radiation in a short period of time, almost all people exposed would die, radiation experts said.

On Monday, Tokyo Electric said radiation doses of as high as 10 sieverts per hour were detected outside the buildings for the No. 1 and No. 2 reactors.

What’s on your reading and blogging list today?


Tuesday Reads

Good Morning!! I have a few interesting reads for you today, and they aren’t all about the idiotic debt ceiling debate. I’m going to lead off with a few excellent blog posts about that idiocy, and then I’ll move on to something else.

First up, Scarecrow compares the movie Cowboys and Aliens to the events in DC: In Cowboys and Aliens, Humans Win; In Washington’s Zombies Vs. Pods, They Lose. In the movie, Scarecrow writes:

humans of all types realize they have to join together to defeat the rapacious creatures who are looting the planet and turning humans into zombies and pod people. There’s hope for our species!

Back in Washington, D.C. there are no heroes and no upbeat ending. Instead, the looting, muggings and beatings will continue until morale improves.

In our “real” world, there is a radical extremist group driven by zombies and zombie beliefs who successfully blackmail the nation into strangling its own economy. The supposedly “sane” group that is supposed to stop this madness has become cowardly and turned into mindless pod people, who assure the nation that the gutting of American government and essential services and safety nets won’t occur in one step but in several, whose outcome is locked in by an undemocratic Super Congress and the next debt limit blackmail in 2013.

It’s a terrific post.

On a more serious note, Emptywheel asks, Is Mark Warner the Designated Social Security Killer? It’s all about what may happen if the so-called “Super Congress” comes to be. Read it and weep.

At the New Yorker, John Cassidy argues that the debt ceiling bill is all smoke and mirrors.

In removing the immediate threat of a debt default, the agreement…signals that the U.S. government still satisfies the minimum standard of financial functionality: it pays its bills on time. That should be enough to head off an immediate downgrade in the nation’s credit rating, and it explains why Wall Street bounced at Monday’s opening bell.

Beyond that it is hard to see anything very positive about a deal in which President Obama finally persuaded the Republicans to accept a Republican plan. Putting on my ethicist cap, I agree with Bernie Sanders that the deal is wrongheaded and immoral. To be sure, America has a long-term fiscal challenge that needs to be confronted. But at a time when fourteen million Americans are unemployed, and many millions more have been forced to work just part-time, the government should be focussing on job growth rather than cutting the budget….

As I’ve said before, headlines such as “Democrats and Republicans agree on $2.4 trillion in spending cuts over 10 years” are virtually meaningless. The United States, like every other country, budgets on an annual basis. What really matters for the economy, and for the unemployed, is how much cash the federal government will spend in the remaining months of the 2011 fiscal year and in fiscal 2012, which begins October 1st. A pledge to cut spending in 2016, say, is just that: a pledge. Between now and then, we will have another bipartisan spending review (that’s also part of the deal), a Presidential election, and who knows how many budget battles. The actual 2016 spending outcome will almost certainly bear little relation to the figures in this agreement.

Also at the New Yorker, Hendrick Hertzberg has a funny piece about Louie Gohmert, looney Texas Republican Congressman quoting Communist Leon Trotsky. I don’t want to ruin it for you by pulling out a quote. It’s not long, so go read the whole thing.

Susie Madrak has a great post at Crooks and Liars: This Year We’ve Broken Or Tied 2,676 Heat Records – So Far. Think We Could Talk About Climate Change Yet? Be sure to check it out.

Do you realize how many people go missing in the U.S.? A lot. And most of them seem to be women and children. Here is a slide show of 64 people from the FBI’s kidnapped and missing persons list.

The little girl whose photo comes first is 11-year-old Celina Cass, from West Stewartstown, NH. Her body was found today in a river near her family home. Sadly, when a child disappears, a family is often responsible. In this case, I have a feeling her stepfather had something to do with Celina’s death. I hope I’m wrong. At least she was found fairly quickly.

Many missing people aren’t found for years, if at all. Indiana University student Lauren Spierer disappeared from Bloomington, Indiana on June 3. Despite intense searches by hundreds of volunteers and a large reward offered by her parents and IU, she has not been found. It looks like people whom Lauren thought were “friends” may have had something to do with her disappearance, because just about everyone who was with her before she went missing has lawyered up and isn’t talking to police.

A Denver woman, Amy Ahonen, disappeared without a trace a few weeks ago. Her car was found parked unlocked along the highway with her purse, ids, cell phone, and keys inside. What happened to her? No one knows and the police have stopped looking. It so happens that a budding serial killer was on the loose in the area at the time of her disappearance, but the police don’t seem to be making that connection.

There are many more stories like this breaking every day in this country. Why do we accept that women and children will disappear daily and in most cases, they will be found murdered and often raped?

Speaking of missing people, a legendary missing person has resurfaced in the news. From the LA Times: D.B. Cooper hijacking mystery is revived with ‘promising lead’

D.B. Cooper, the infamous airplane hijacker who vaulted into urban mythology by parachuting out of a jetliner over the Pacific Northwest with a $200,000 ransom, is back on the FBI’s radar screen.

Cooper, whose case remains the only unsolved airline hijacking in U.S. history, became the stuff of legend on the night of Nov. 24, 1971, when he jumped from a Boeing 727 into the skies between Portland, Ore., and Seattle. He disappeared with the ransom he extorted — 10,000 $20 bills.

The case has remained open, but the trail has been cold despite hundreds of tips, thousands of theories and dozens of breakthroughs in scientific investigation. Now the FBI, which has previously said that Cooper is likely dead, is looking at fresh evidence, according to weekend reports in the media in Seattle, the epicenter of the story that seemingly can never die.

From the Seattle Post-Intelligencer:

The man investigated as a suspect in the D.B. Cooper case – the nation’s only unsolved commercial airplane hijacking – has been dead for about 10 years, and a forensic check didn’t find fingerprints on an item that belonged him, an FBI spokesman told seattlepi.com Monday.

“There are also other leads we’re pursuing,” agent Fred Gutt said. “Some of the other names have been out in the public, some of the names have not come out.”

The name of a man not previously investigated was given to the FBI nearly a year ago by a law enforcement colleague, and an item that belongs to him was sent for fingerprint work at the agency’s Quantico, Va., forensic lab, agents told seattlepi.com.

“The nature of the material was not good for prints,” Gutt said.

He added agents are obtaining other items that may have the suspect’s fingerprints in hopes of matching them with prints taken from the Northwest Orient plane after Cooper jumped the night of Nov. 24, 1971.

The situation in Syria is escalating. There has been a great deal of violence there for some time, and it is not getting the same attention that Egypt, Iran, and Libya have gotten. But now the UN Security Council plans to take up the issue.

Reacting to new bloodshed in Syria, European powers relaunched a dormant draft U.N. resolution to condemn Damascus for its crackdown on protesters, circulating a revised text to the Security Council at a meeting on Monday.

Following the hour-long closed-door meeting, several diplomats said that after months of deadlock over Syria in the council, the fresh violence appeared to be pushing the divided members towards some form of reaction.

But envoys disagreed over whether the 15-nation body should adopt the Western-backed draft resolution or negotiate a less binding statement.

Germany requested the meeting after human rights groups said Syrian troops killed 80 people on Sunday when they stormed the city of Hama to crush protests amid a five-month-old uprising against President Bashar al-Assad.

More than 1600 people have been killed during the Syrian uprising.

From the Daily Beast:

You have to wonder if President Barack Obama ever rereads his speeches.

At the State Department last May, the president spoke at length of democratization in the Middle East. He chose his words carefully, dropping caveats and provisos. But Obama also bluntly declared that, “it will be the policy of the United States to promote reform across the region, and to support transitions to democracy.” He justified the intervention in Libya by recalling that “we saw the prospect of imminent massacre … Had we not acted along with our NATO allies and regional coalition partners, thousands would have been killed.”

Yet precisely such sordid outcomes have come to pass, not in Libya but during the four-month uprising against the regime of President Bashar al-Assad in Syria. Around 1,600 people are believed to have been killed, not mentioning some 3,000 disappeared, many of them presumed dead. Massacres have proliferated, and on Sunday, the eve of the holy month of Ramadan, the Syrian army entered the city of Hama, which had effectively escaped from government writ weeks ago.

Throughout, the White House has painstakingly avoided demanding that Assad step down, saying only that he must lead a transition to democracy or get out of the way. The Syrian dictator has, of course, done neither.

I’ll end with just one more link on the debt deal that Dakinikat sent me.

Reuters analysis – Debt deal unlikely to boost investor confidence

Rather than a relief rally, U.S. stocks ended modestly lower on Monday as ugly economic data and some lingering concerns about whether the deal would get through Congress dominated trading. But even when the House of Representatives voted to pass the plan late in the day there was little reaction from U.S. stock index futures.

The deal agreed to by Republican and Democratic leaders will raise the government’s borrowing ceiling while cutting spending by at least $2.1 trillion over 10 years. All of the burden could fall on spending cuts with no guarantee of steps to lift tax revenues.

Rather than perceiving it as a meaningful effort at tackling the United States’ huge debt problem, investors worried about the impact of austerity on an economy already hit by souring business and consumer confidence.

Plans for such a significant fiscal retrenchment, even though most of the impact will be in the latter years of the program, come at a vulnerable time for the world economy. Recession risks are rising in the United States, the European economy remains entwined in its own debt crisis, and China’s supercharged economy could slow.

“Risk markets may rally temporarily, but until economic growth and job creation is addressed, there can be no sustained rally,” Bill Gross, the co-chief investment officer of PIMCO, which manages more than $1.2 trillion, said in an interview.

Will Washington ever wake up to reality? I’m afraid they (and we) will have to hit bottom first. They are like alcoholics, except they are drunk on greed and power. So on that note, what are you reading and blogging about today?


Tuesday Reads: Cantor’s Conflict, Libertarian Cruelty, bin Laden’s DNA, and a Cold Case Solved

Good Morning!! I’ll take my coffee iced today, because it’s hotter than hell here in the Boston area. And about 110 percent humidity. OK, let’s get to the news.

The Washington Post has a laudatory profile of House Majority Leader Eric Cantor and his refusal to negotiate on raising the Federal debt ceiling–without ever mentioning that Cantor stands to make lots of money if the U.S. defaults on its debts.

Last month, Cantor walked out of talks led by Vice President Biden. Cantor said the reason was Democrats’ insistence on raising taxes as part of a deal to increase the national debt ceiling.

Then, last week, Cantor urged House Speaker John A. Boehner (R-Ohio) to reject a possible “grand bargain” with President Obama, which could have included tax increases. Boehner pulled Republicans out of those talks.

Now, as Cantor joins other leaders at the White House for near-daily summits in the third different grouping of negotiators, his moves have revealed him as a third major player in a legislative drama that had been dominated by Obama and Boehner. Where Boehner has sought to define what Republicans can do with their newfound power, Cantor, the House’s ambitious number-two, wants to underline what Republicans would never do.

So what is Cantor’s negotiating strategy?

On Monday, with a potential default less than a month away, Cantor was asked to identify compromises that Republicans had offered to help negotiations along.

He told reporters that the negotiation itself was a compromise.

“I don’t think the White House understands how difficult it is for fiscal conservatives to say they are going to vote for a debt-ceiling increase,” Cantor said.

Gee, it wasn’t all that hard to increase the debt ceiling again and again under Bush, now was it? But maybe in those days Cantor wasn’t betting against the U.S. in his financial investments. It’s very troubling that the Post didn’t mention Cantor’s humongous conflict of interest.

According to a new Washington Post-Pew poll, increasing numbers of Americans are “very concerned” about a U.S. default, but they are also “concerned” that raising the limit will lead to out-of-control spending.

The twin, divergent, concerns complicate the political calculus for the White House and congressional leaders as they attempt to strike an agreement. Nearly eight in 10 Americans are worried about raising the debt limit, and about three-quarters are concerned about not doing so.

Asked to choose, 42 percent see greater risk in a potential default stemming from not raising the debt limit, a seven-point increase from a Post-Pew poll six weeks ago. Slightly more, 47 percent, express deeper concern about lifting the limit, but the gap has narrowed.

Sixty-six percent of Republicans worry more about raising the debt limit than the U.S. defaulting on its debts. {sigh…}

Hipparchia has a wonderful post at Corrente that is an extended metaphor for libertarian attitudes about health care, specifically in reaction to the writings of a libertarian from the CATO Institute, Michael F. Cannon on the new Oregon health care plan. Here is the relevant quote from Cannon that set her off.

Michael F Cannon, of Cato@Liberty :

The OHIE establishes only that there are some (modest) benefits to expanding Medicaid (to poor people) (after one year). It tells us next to nothing about the costs of producing those benefits, which include not just the transfers from taxpayers but also any behavioral changes on the part of Medicaid enrollees, such as reductions in work effort or asset accumulation induced by this means-tested program. Nor does it tell us anything about the costs and benefits of alternative policies.

Reduction in work effort?? This would be really funny if Cannon weren’t so deadly serious. Providing health care to poor people means that more of them are just going to spend their days hanging out in parks, yakking on their cell phones , I guess. So, Libertarians are in favor of liberty for themselves and wage slavery for anybody else. Good to know.

Please go read the whole thing if you have time. It’s well worth the effort. We live in a world of selfish, greedy narcissistic fops. How can the country survive them?

Joseph Cannon has a short but pithy post on the media’s obsession with Casey Anthony being found not guilty. He then points out that the media has completely ignored the fact that

In 1995, when the Presidency was in the hands of the despised Bill Clinton, government regulators overseeing skullduggery on Wall Street referred 1,837 cases to the Justice Department for prosecution. That number has gone down. Between 2007 and 2010, the Justice Department has received just 72 referrals a year (on average).

Gosh. How can this be? I guess investment bankers are simply more honest than they used to be.

You won’t see this issue discussed on CNN. It’s not newsworthy.

I did not know that. Thank you Joseph Cannon. F&ck you CNN (and HLN and Nancy Grace).

Here’s an interesting story from The Guardian UK: CIA organised fake vaccination drive to get Osama bin Laden’s family DNA

As part of extensive preparations for the raid that killed Bin Laden in May, CIA agents recruited a senior Pakistani doctor to organise the vaccine drive in Abbottabad, even starting the “project” in a poorer part of town to make it look more authentic, according to Pakistani and US officials and local residents.

The doctor, Shakil Afridi, has since been arrested by the Inter-Services Intelligence agency (ISI) for co-operating with American intelligence agents.

Relations between Washington and Islamabad, already severely strained by the Bin Laden operation, have deteriorated considerably since then. The doctor’s arrest has exacerbated these tensions. The US is understood to be concerned for the doctor’s safety, and is thought to have intervened on his behalf.

The vaccination plan was conceived after American intelligence officers tracked an al-Qaida courier, known as Abu Ahmad al-Kuwaiti, to what turned out to be Bin Laden’s Abbottabad compound last summer. The agency monitored the compound by satellite and surveillance from a local CIA safe house in Abbottabad, but wanted confirmation that Bin Laden was there before mounting a risky operation inside another country.

DNA from any of the Bin Laden children in the compound could be compared with a sample from his sister, who died in Boston in 2010, to provide evidence that the family was present.

Jeralyn at Talk Left has finally decided that Obama deserves to get a pink slip. Yes, I know, she should have known better. But please go read anyway.

I’m going to end with a story about a long ago murdered child and how the case has been solved–54 years later. Maria Ridulph disappeared in 1957 when she was 7 years old. Maria and her best friend Kathy were playing on the street one day.

Kathy Chapman, who was 8 at the time, recalled that she and Maria were under a corner streetlight when a young man she knew as “Johnny” offered them a piggyback ride. Chapman, now 61 and living in St. Charles, Ill., told the AP she ran home to get mittens and that when she returned, Maria and the man were gone.

Maria’s disappearance and death had a powerful effect on her small community.

Charles “Chuck” Ridulph always assumed the person who stole his little sister from the neighborhood corner where she played and dumped her body in a wooded stretch some 100 miles away was a trucker or passing stranger — surely not anyone from the hometown he remembers as one big, friendly playground.

And, after more than a half century passed since her death, he assumed the culprit also had died or was in prison for some other crime.

On Saturday, he said he was stunned by the news that a one-time neighbor had been charged in the kidnapping and killing that captured national attention, including that of the president and FBI chief. Prosecutors in bucolic Sycamore, a city of 15,000 that’s home to a yearly pumpkin festival, charged a former police officer Friday in the 1957 abduction of 7-year-old Maria Ridulph after an ex-girlfriend’s discovery of an unused train ticket blew a hole in his alibi.

Maria Ridulph

From the Seattle Times:

A judge in Seattle set bail Monday at $3 million for Jack Daniel McCullough, of Seattle, a former police officer who denies he is the man Illinois police have been seeking in the 1957 slaying of a young girl….

McCullough, 71, a former police officer in Milton and Lacey, has been living in North Seattle and working as a night watchman in a senior-housing facility, Four Freedoms.

McCullough, 18 at the time of the girl’s death, had been a suspect early in the investigation. He lived about a block from where the girl disappeared and matched the description of a man seen at the site.

At the time, police did not show Maria’s best friend Kathy a picture of their suspect. But last year, they showed her a picture of the teenaged McCullough (then using the last name Tessier) and she recognized him.

That’s all I’ve got for today. What are you reading and blogging about?


Independence Day Reads

Happy Independence Day!

We have a republic and a lot of people have sacrificed a lot over the last several centuries to keep it.  Too bad most of our politicians aren’t in that number.  They can’t see past their next elections.

It seems that two senators– McCain and Corynyn–say they’re open to tax increases as a way to solve the budget stand off.   Guess there are a few of them left that would prefer not to tank our economy. Let’s hope this starts some real negotiations instead of the usual Republican hostage taking and Democratic cave-in that’s been politics as usual the last dozen years or so.

One of the senators, John Cornyn of Texas, said he would consider eliminating some tax breaks and corporate subsidies in the context of changes in the tax code, provided there was not an overall increase in taxes.

“I think it’s clear that the Republicans are opposed to any tax hikes, particularly during a fragile economic recovery,” Mr. Cornyn said on “Fox News Sunday.” “Now, do we believe tax reform is necessary? I would say absolutely.”

But he insisted that any changes in taxes be “revenue neutral,” meaning that the government would not take in any more money from individuals or businesses than it does now.

The other senator, John McCain of Arizona, said he would be willing to consider some “revenue raisers” as part of a broad deal, but he refused to name specific measures.

Mr. Cornyn, a member of the Senate leadership, also said that Republicans would be open to a short-term deal on the debt ceiling to provide more time for a comprehensive agreement.

Let’s also hope that more reasonable and less ideological heads prevail on the right and that the left stands up for what’s right for a change.  Former President Clinton had a words of policy advice over the weekend.  His advice to President Obama is “not to blink”.

Former President Bill Clinton Saturday night urged President Obama not to “blink” at Republican demands to exclude revenue increases from any agreement to extend the government’s debt ceiling.

If Republicans maintain their opposition to revenue increases, Clinton said, Obama should pursue a short-term deal to extend the debt ceiling based on spending cuts both sides have already accepted in the negotiations between the administration and Congressional leaders from both parties.

“I hope they will make a mini-deal,” Clinton said in an interview conducted with him at the Aspen Ideas Festival here.

The White House and Congressional negotiators from both parties are attempting to assemble a deficit reduction package that could win support in Congress for legislation to extend the nation’s debt ceiling, which the Treasury says the government will reach on August 2. The talks have foundered amid demands from Congressional Republicans to exclude any revenue increases from that prospective deficit reduction package.

Asked what the administration could do if GOP leaders hold to that posture, Clinton replied: “First the White House could blink. I hope that won’t happen. I don’t think they should blink.”

If Republicans will not accept revenues in a package to lift the debt ceiling by August 2, Clinton said, Obama should pursue a short-term agreement based on the spending reductions both sides have already accepted.

“There are some spending cuts they agree on …and he can take those and [get] an extension of the debt ceiling for six or eight months,” Clinton said.

Clinton also called on a package of reforms to US tax policy that includes a corporate tax cut if special interest tax loops are closed.  This is something Obama has also supported.

“It made sense when I did it. It doesn’t make sense anymore – we’ve got an uncompetitive rate. We tax at 35 percent of income, although we only take about 23 percent. So, we SHOULD cut the rate to 25 percent, or whatever’s competitive, and eliminate a lot of the deductions so that we still get a FAIR amount, and there’s not so much variance in what the corporations pay. But how can they do that by Aug. 2?”

Clinton also said Grover Norquist, who as president of Americans for Tax Reform is the GOP’s unofficial enforcer of no-new-taxes pledges, has a “chilling” hold on the nation’s lawmaking.

The former president said it has seemed like Republicans need any revenue concessions need to be “approved in advance by Grover Norquist.”

“You’re laughing,” he told the crowd of 800. “But he was quoted in the paper the other day saying he gave Republican senators PERMISSION … on getting rid of the ethanol subsidies. I thought, ‘My GOD, what has this country come to when one person has to give you permission to do what’s best for the country.’ It was chilling.

There’s an extremely interesting piece at The Atlantic Wire on “What Really Happened at Fukushima”. It includes interviews with workers that have been inside the crippled nuclear plant.

Throughout the months of lies and misinformation, one story has stuck: “The earthquake knocked out the plant’s electric power, halting cooling to its reactors,” as the government spokesman Yukio Edano said at a March 15 press conference in Tokyo. The story, which has been repeated again and again, boils down to this: “after the earthquake, the tsunami – a unique, unforeseeable [the Japanese word is soteigai] event – then washed out the plant’s back-up generators, shutting down all cooling and starting the chain of events that would cause the world’s first triple meltdown to occur.”

But what if recirculation pipes and cooling pipes, burst, snapped, leaked, and broke completely after the earthquake — long before the tidal wave reached the facilities, long before the electricity went out? This would surprise few people familiar with the 40-year-old Unit 1, the grandfather of the nuclear reactors still operating in Japan.

The authors have spoken to several workers at the plant who recite the same story: Serious damage to piping and at least one of the reactors before the tsunami hit. All have requested anonymity because they are still working at the plant or are connected with TEPCO. One worker, a 27-year-old maintenance engineer who was at the Fukushima complex on March 11, recalls hissing and leaking pipes.  “I personally saw pipes that came apart and I assume that there were many more that had been broken throughout the plant. There’s no doubt that the earthquake did a lot of damage inside the plant,” he said. “There were definitely leaking pipes, but we don’t know which pipes – that has to be investigated. I also saw that part of the wall of the turbine building for Unit 1 had come away. That crack might have affected the reactor.”

The reactor walls of the reactor are quite fragile, he notes. “If the walls are too rigid, they can crack under the slightest pressure from inside so they have to be breakable because if the pressure is kept inside and there is a buildup of pressure, it can damage the equipment inside the walls so it needs to be allowed to escape. It’s designed to give during a crisis, if not it could be worse – that might be shocking to others, but to us it’s common sense.”

Here’s some frightening news on the disaster in Japan. Radioactive Cesium has been found in Tokyo’s water supply.

Radioactive cesium-137 was found in Tokyo’s tap water for the first time since April as Japan grapples with the worst nuclear disaster in 25 years.

Cesium-137 concentration registered at 0.14 becquerels per kilogram in the city’s Shinjuku ward on July 2, compared with 0.21 becquerels on April 22, according to the Tokyo Metropolitan Institute of Public Health. No cesium-134 or iodine-131 was detected, the agency said on its website.

The Nuclear Safety Commission of Japan sets a safety limit of 200 becquerels per kilogram for cesium-134 and cesium-137. The limit for iodine-131 consumption is 300 becquerels per kilogram.

Japan is battling radiation leaks into the air, soil and water after an earthquake and tsunami on March 11 knocked out cooling systems at Tokyo Electric Power Co.’s Fukushima Dai- Ichi nuclear station, resulting in the meltdown of three of the six reactors at the plant.

The UK Guardian lists an interesting set of Greek public assets for sale.  Many have no buyers.  Bobby Jindal is putting up a lot of Louisiana assets for sale too.  I wonder if this is going to be the new way to raise money.  The Kochs already rent a big chunk of Yellowstone.   Let’s hope we don’t have to put our national treasures on the chopping block.

Up for sale are 39 airports, 850 ports, railways, motorways, sewage works, a couple of energy companies, banks, defence groups, thousands of acres of land for development, casinos and Greece’s national lottery. George Christodoulakis, Greece’s special secretary for asset restructuring and privatisations, said the sell-off would raise €50bn (£44bn) to help pay back the country’s €110bn bailout debt.

The private equity bosses gathered in the hotel’s ballroom for the parade of Greece’s national treasures showed little interest in buying anything.

Nikos Stathopoulous, managing partner of BC Partners, which has invested more than €3.5bn in Greece, said investors are put off by bureaucracy, strong unions, corruption and a lack of transparency. “Even in the good times Greece is not a country that attracts investment. Foreign investors don’t want to invest in a country where there is no flexibility in hiring and firing people,” he said. “You don’t want to invest in a country in which you wake up and a new law has been passed which totally undermines and destroys the value of the investment you’ve just made.”

Stathopoulous said investors were finding it very hard to assess the risk of investing into Greece, which means assets “will be priced at lower than they are worth, lower than the Greek government, and even the European Union, expects”.

Here’s a compelling argument for getting the shadow banking sector into a more regulated, transparent, and standardized order.  It’s written by Henry Tabe who is a Founding Partner of Sequoia Investment Management Company Ltd.  It particularly addresses the use of the Structured Investment Vehicle (SIV).  Complex, nonstandard, and unregulated markets make pricing assets difficult and introduce unnecessary risk and volatility.

Risk management requires identification, measurement, aggregation, and effective management of risks. It should help businesses allocate sufficient capital for survival and growth. The SIV’s extinction highlights risk management failures by the vehicles, their sponsors, rating agencies, policymakers, and regulators.

Financial regulators permitted bank, insurance company, pension, and hedge-fund sponsors to establish SIV “mini-banks” without ensuring that they maintain sufficient capital or back-stop liquidity in the event of a run. Policymakers also seemed unaware of the knock-on effects of the SIV’s demise on the securitisation and global credit markets. The Financial Security Authority’s call for regulators to incorporate sectoral analytical capabilities in their micro-prudential policies should help close the knowledge gap and ensure that timely solutions can be implemented to avert collapses that engender significantly more stress on the financial system (FSA 2009).

Lessons learned include the tightening of regulation governing the sponsorship of off-balance-sheet structures and the sizing of their capital and liquidity needs. These require that regulators adopt a more proactive, dampening role in the wild swings from exuberance to despair that are so characteristic of the financial markets. Discussions around contingent capital and similar products suggest regulators have embraced that dampening role and moved away from the prevailing pre-crisis philosophy of minimal regulation.

Lessons learned also include closer supervision of shadow banks, more skin-in-the-game for their sponsors, in-house retention of risk-analytics capabilities by investors, and less reliance on credit-rating agencies. The agencies themselves are more tightly supervised in order to reduce ratings shopping by issuers and inherent conflicts of interest in the business model (CESR 2009). Tighter regulation will also help to ensure that the agencies improve the monitoring of analyst performance, qualifications, and experience (Dodd-Frank 2010).

These measures should help restore confidence in rating agencies and the global financial system, an outcome more urgently required given on-going turmoil in the sovereign debt market.

So, there’s some wonky goodness to keep you entertained if you’re inside today.  Be sure to let us know what you’re reading and blogging!  Hope your Fourth of July is a happy one!