Consuming the News
Posted: January 1, 2011 Filed under: the blogosphere, The Media SUCKS, U.S. Politics | Tags: Bill Kovach, Blur, journalism, propaganda, the media, the press 34 CommentsI was one of those nerdy little kids in class that loved it when show and tell switched to bringing a current events article
and presenting it to the class. In my grade school, the big day was Wednesday. I got my first subscription to The Paris Match in 7th grade and my Honors World History teacher turned me on to The Guardian in 11 th grade. My grandmother made sure we all had subscriptions to The Christian Science Monitor until the day she died. I think a lot of it had to do with being trapped in Omaha where nothing EVER happened. I was fortunate that my family put a high priority on travel because the newspaper subscriptions were a portion of what kept me away from becoming the archetypal Omahan. Geographical and cultural isolation can lead to some strange people. (Cue The Deliverance banjos.)
I’ve been returning to the PEJ site now that I know it exists. That’s where I’ve pulled this book review and an interesting set of suggestions on how to “interpret the news”. I admit to having a preference for C-SPAN these days as I’m pretty tired of the idiots that filter and read the MSM items now. I probably will order up the book ‘Blur, How to Know What’s True in the Age of Information Overload’ by Bill Kovach and Tom Rosenstiel. The review says its goal is to provide a “pragmatic, serious-minded guide to navigating the twenty-first century media terrain”. That’s a serious agenda given the number of commercial news outlets we have these days.
Here’s another bit from that:
Blur provides a road map, or more specifically, reveals the craft that has been used in newsrooms by the very best journalists for getting at the truth. In an age when the line between citizen and journalist is becoming increasingly unclear, Blur is a crucial guide for those who want to know what’s true.
What I want to offer up is the list they provide. It’s called “Ways of Skeptical Knowing”. My mother handed me her middle name–Jean–for my birth certificate. She was always a true to form Show-Me-State skeptic. That’s why I always consider “Skeptic” to be my authentic middle name.
Ways of Skeptical Knowing—Six Essential Tools for Interpreting the News
1. What kind of content am I encountering?
2. Is the information complete? If not, what’s missing?
3. Who or what are the sources and why should I believe them?
4. What evidence is presented and how was it tested or vetted?
5. What might be an alternative explanation or understanding?
6. Am I learning what I need?
So, armed with this, I got slightly
curious about the guys that wrote the book and found an interview with Bill Kovach at a site called Stinky Journalism. I gave up writing for the school paper back in high school so I actually didn’t know he’d authored your basic Journalism 101 textbook, The Elements of Journalism. The site explains how Blur “focuses on the importance of verification, fact-checking and evidence in media — whether it be traditional newspaper media or an online blog”. Evidence!!! Verification!!! Fact-Checking!!! NOW, we’re talking stuff that sends tingles up and down my researcher leg!!
I found this quote to be very interesting.
“The separation between journalists and citizens is slowly disappearing. I mean, anyone, anywhere can be a reporter of the next big news incident. Anyone can be a reporter now, and in terms of the information citizens need because they have access to the online presentation of information from hundreds of sources, they are becoming their own editors. So it’s imperative that we both help journalists understand this change…and citizens understand how they can determine what they can believe in.”
What drove my Grandmother to send me The Christian Science Monitor, my French teacher to share the Paris Match, and my history teacher to encourage me to read The U.K. Guardian is what drives me to alternative sources on the World Wide Web today. I was fortunate enough to develop a healthy skepticism about relying on any one source of information from these precious folks who cared about my development as a person. I am thankful for my earliest experiences of looking out side of the Omaha World Herald for information. I do have to say that I was fortunate to be educated in an excellent public school system that was well known for its outstanding English programs and teachers. This is the same high school and school system that produced Kurt Andersen. (One of my friends had a wicked crush on him and used to use my access to get into the Journalism classroom/lab to get near him when we were sophomores.)
I guess I’m bringing this up for several reasons. First, I think part of being in a democracy means that you become an informed citizen. That implies you need information and it should be factual information. Second, I think that the powers that be have found so many profound means of disseminating propaganda through main stream sources–think WMDs and the Iraq War– that we have to actively search out alternatives to find out not just the information; but the truth.
Lastly, nothing is making this an imperative as the Wikileaks episode. What first made some things clear to me in Junior High School was The Pentagon Papers. For some childish reason, I thought my exceptionally wonderful and moral country would never lie to me or hide things from me other than battlefield plans. I believe that my reaction to both was formed early by the intents of my grandmother and my teachers to get me to look outside my narrow life to the world at large. Our government, many people in our communities and plenty of those around us–including the press–are not always acting from truth or the best interest of all of us. It’s important to discover intent, funding, and connections. We must all become investigative journalists. However, it heartens me to see that there are still journalists that remember they are an important element of democracy. It saddens me when journalism turns into celebrity gossip rags and spin vehicles.
Thomas Paine and Benjamin Franklin were the bloggers of their day. Samuel Adams made certain that the Massachusetts Circular Letter was seen by more than just the local politicians. His ‘leaks’ outraged the British monarchy. It also lead to our nascent democracy. Much of what is going on right now is part of our heritage as Americans. However, so many people have have access to platforms now that it’s important to do the basic research for ourselves. We must be vigilant and tenacious truth seekers.
New Year’s Eve Reads
Posted: December 31, 2010 Filed under: Global Financial Crisis, Gulf Oil Spill, health hazard, morning reads, the blogosphere, The Little Blog that could, The Media SUCKS, U.S. Economy, U.S. Politics, Wikileaks, Women's Rights | Tags: Brazil's first woman president, Consumer Financial Protection Bureau, Dilma Rousseff, Elizabeth Warren, Filibuster, Marine mammals struggle with oil, New Media Report, oil spill, oiled marshes, Oily beaches, Pew Research, Reform, Senate, Tom Udall, Transocean 28 CommentsGood morning!
Today we begin to say good bye to 2010 and the first decade of the millennium and century! What a decade and what a year it has been! I don’t know about you, but just the last five years alone have turned my life upside down. (Think Hurricane Katrina, BP Oil Tsunami, and the financial crisis that has empowered thugs like Governexorcist Jindal to enforce absolute budget austerity on Louisiana and higher education.) Despite all that, we’re going to have an Airing of the Gratitude thread as part of the-Little-Blog-That-Could’s New Year’s Celebration. I’ve bought my black eyed peas and cabbage. Now, I’m making my list of things that I resolve to appreciate for the thread. I’d like to invite you to think about yours too and join in. A lot of my gratitude comes under the heading of my daughters, dad and sister, and my friends. That includes you ! We’re a blogging community that was forged from some really tough political times.
Meanwhile, here are some headlines to gear you up for the coming year and decade. May things improve for the better!! May peace and sanity prevail!! May every one’s health and circumstances improve tremendously! Many, many blessings to each and every one of you!
Are you pessimistic or optimistic about the coming year? A CNN poll shows a lot of people are optimistic about the the world outlook, but less so about their personal situation. Men are much more optimistic than women. Where do you fit in?
The Senate appears to have reached its limit on perpetually trying to find 60 votes for cloture and taking every ‘threat’ of a filibuster seriously. Brian Beutler at TPM is following the reform movement and the possible hurdles it faces.
The consensus package will aim to put an end to “secret holds” (anonymous filibuster threats) and disallow the minority from blocking debate on an issue altogether. Those two reforms are fairly straightforward. The third is a bit more complex. Udall, along with Sen. Jeff Merkley (D-OR), say there’s broad agreement on the idea to force old-school filibusters. If members want to keep debating a bill, they’ll have to actually talk. No more lazy filibusters.
But how would that actually work? In an interview Wednesday, Udall explained the ins and outs of that particular proposal.
“What we seem to have the most consensus on, is what I would call… a talking filibuster,” Udall told me. “Rather than a filibuster which is about obstruction.”
As things currently stand, the onus is on the majority to put together 60 votes to break a filibuster. Until that happens, it’s a “filibuster,” but it’s little more than a series of quorum calls, votes on procedural motions, and floor speeches. The people who oppose the underlying issue don’t have to do much of anything if they don’t want to.
Here’s how they propose to change that. Under this plan, if 41 or more senators voted against the cloture motion to end debate, “then you would go into a period of extended debate, and dilatory motions would not be allowed,” Udall explained.
As long as a member is on hand to keep talking, that period of debate continues. But if they lapse, it’s over — cloture is invoked and, eventually, the issue gets an up-or-down majority vote.
DDay at FDL has a thread up that offers a more detailed explanation. This includes a bit on what is being called ‘continuous debate’ which sounds a lot like that Jimmy Stewart movie “Mr. Smith goes to Washington” or what every one was hoping for when Bernie Sanders started talking a few weeks ago.
After 41 Senators or more successfully maintain a filibuster by voting against cloture, they would have to hold the floor and go into a period of extended debate. Without someone filibustering holding the floor, cloture is automatically invoked, and the legislation moves to an eventual up-or-down vote, under this rule change.
This would institute the actual filibuster. The Majority Leader would have the capacity, which Harry Reid says he doesn’t have now, to force the minority to keep talking to block legislation. It becomes a test of wills at this point – whether the minority wants to hold out for days, or whether the majority wants to move to other legislation.
Here’s hoping we can fix our broken government that is driven by corporate cash and interests and railroaded by imperious Senators. I’m not very hopeful that congress can actually fix itself, but I guess we’ll see. I will say that I do think Tom Udall is a good man. He’s one of the people that is fighting for an improved process.
I still have Louisiana and New Orleans on my mind right now. We have a new headline in our ongoing BP Oil Gusher Saga. This is from Raw Story. It appears the company that owns the rig–Transocean–is refusing to co-operate with the federal oil spill probe. I just want to find out what went wrong so we don’t ever repeat it. I’m sure all they are thinking about is the upcoming lawsuits.
Transocean said the U.S. Chemical Safety Board does not have jurisdiction in the probe, so it doesn’t have a right to the documents and other items it seeks. The board told The Associated Press late Wednesday that it does have jurisdiction and it has asked the Justice Department to intervene to enforce the subpoenas.
Last week, the board demanded that the testing of the failed blowout preventer stop until Transocean and Cameron International are removed from any hands-on role in the examination. It said it’s a conflict of interest. The request is pending.
Our economy is in sad shape down here and a good part of it is due to Transocean’s role in destroying livelihoods and life around the Gulf of Mexico. Human lives aren’t the only thing still struggling from the gulf gusher. Here’s some local news on that.
Scientists at the institute of Marine Mammal Studies in Gulfport are studying why two endangered manatees died near the Gulf Coast in the past two weeks.
According to the Institute’s Executive Director Dr. Moby Solangi, cold water killed the manatees, but they should have migrated to warmer water.
Scientists are finding an unusually large number of Gulf of Mexico animals out of place since the BP oil spill began.
“It is no different than having a forest fire,” Dr. Solangi said Thursday. “The oil spill expanded, it went thousands of square miles and as their habitat shrunk, these animals moved to areas that were not affected.”
The problem, according to Dr. Solangi, is those unaffected areas were also unfamiliar to the animals.
Too many turtles, for instance, wound up in waters off the Mississippi coast, where they didn’t understand the food supply.
300 turtles died in Mississippi.
Many more were caught by fishermen.
“In the past years, we would get one or two or maybe three animals, this year we had 57,” Dr. Solangi said.
He and his staff at the Institute for Marine Mammal Studies are now caring for dozens of sea turtles.
Of course, turtles in distress have to be swimming through some pretty nasty stuff in their environment. The shores along the Gulf are still oiled. Here’s a story about 168 miles of coast in Louisiana alone. This is from New Orleans own Times Picayune. Yes, folks, every single story I’m linking to on this is no more than a day old. We’re still living this nightmare down here.
Louisiana’s coastline continues to be smeared with significant amounts of oil and oiled material from the BP Deepwater Horizon disaster, with cleanup teams struggling to remove as much as possible of the toxic material by the time migratory birds arrive at the end of February, said the program manager of the Shoreline Cleanup and Assessment Teams, which are working for BP and the federal government.
There are 113 miles of Louisiana coastline under active cleanup, with another 55 miles awaiting approval to start the cleanup process, according to SCAT statistics. Teams have finished cleaning almost 72 miles to levels where oil is no longer observable or where no further treatment is necessary.
But that’s not the whole story for the state’s coastline. According to SCAT statistics, there’s another 2,846 miles of beach and wetland areas where oil was once found but is no longer observable or is not treatable.
Gary Hayward, the Newfields Environmental Planning and Compliance contractor who oversees the SCAT program, said that large area will be placed into a new “monitor and maintenance” category, once Louisiana state and local officials agree to the procedures to be used for that category.
“With rare exceptions, most of the marshes still have a bathtub ring that we have all collectively decided we aren’t going to clean any more than we already have because we’d be doing more harm to the marshes than the oil is going to be doing to them,” Hayward said.
Raise your hand if you heard any thing about any of this on your local newspaper or the national TV stations. We’re so out of sight and out of mind down here that some times I wonder if we’re even considered part of the country. You do realize that a majority of water-related commerce and a majority of oil comes through our state, don’t you?
The South American country of Brazil is looking forward to incoming-President Dilma Rousseff. The Nation has an article that spotlights the country’s first female elected head of state. I only hope to see a day like that for our country. I’d also like to end the Reagan legacy and get a real Democrat back in the White House. Yes, I’m clapping for Tinkerbelle.
When the confetti was still falling after her victory at the polls on October 31, Dilma Rousseff, Brazil’s first female president-elect, said, “I want to state my first commitment after the elections: to honor Brazil’s women so that today’s unprecedented result becomes a normal event and may be repeated and enlarged in companies, civil institutions and representative entities of our entire society.”
In a country where women have typically played a limited role in politics, the election of a woman to Brazil’s highest office signals a major break from the past. But Rousseff’s term will likely be marked by continuity with her predecessor, Luiz Inácio Lula da Silva. Lula, a member of the Workers’ Party (PT), is leaving office with 87 percent support in the polls. An economist, PT bureaucrat, chief of staff under Lula and former guerrilla in the anti-dictatorship movements of the 1960s and ’70s, Rousseff was handpicked by Lula to follow his lead as president. When she is sworn in on January 1, she will inherit Lula’s popular legacy and will be further empowered by the fact that her party and allied parties won a majority of seats in the Senate and Congress. Not even Lula counted on this much support.
Well, at least somewhere, women are getting their due. I’m getting tired of living through stories where women in the U.S. watch jobs they should have go to less qualified people. Then, they get to do all the work without the title. What’s worse is when the boyz club in power make you participate in the charade of celebration and finding the royal heir. Like that legitimizes their malfeasance! Here’s yet another example in a WSJ story about Elizabeth Warren searching for a person for the job she would hold if the world weren’t so upside down. It seems less and less about qualifications and knowledge these days and more and more about appearances and appeasing the old boyz. Money screams!
White House adviser Elizabeth Warren and a top lieutenant are quietly asking business and consumer groups for names of people who might run the new Consumer Financial Protection Bureau, people familiar with the matter said.
The hunt suggests that Ms. Warren, a lightning rod for some bankers, might not be selected to lead the bureau, a centerpiece of the Dodd-Frank financial overhaul bill that passed this summer. Still, many liberal groups will push to get her in the post.
President Barack Obama’s choice could signal how he intends to deal with resurgent Republicans in Congress. The feelers to business groups serve as a reminder that any nominee would likely need support from at least seven Republicans in the Senate to win confirmation.
Among the names being discussed are Iowa’s attorney general, Tom Miller; New York state bank regulator Richard Neiman; and former Office of Thrift Supervision director Ellen Seidman.
The reality is Obama fights for nothing but Obama. I know there are other Obama appointments coming up shortly and I’m trying to get a grasp on what I want to discuss with you on the proposed replacements for Larry Summers. Well, I know what I want to discuss but it’s more like trying to figure out how to describe what I see as the problem. As some one who rides both sides of the finance and economics line, I have some insight that many don’t have. Finance is where you make the money and it’s really based on chimera. I know the details and the proofs behind asset pricing models and it’s simply smoke and mirrors. Economics is where the brains and the real insight exists. There is going to most likely be a bland, uninspired replacement for Larry Summers. A finance person will undoubtedly win that appointment. Hence, we will get smoke and mirrors and meaningless numbers.
Once again, it’s the vision thing. All these appointments seem to reek of employing micromanaging corporate bureaucrats that are part of the problem. They can crank through the data but they can’t put it into perspective. As old President Bush used to say, no one seems to be good at the “vision thing”. No one is crafting a blue print that incorporates a better big picture based on what we already know. The Great Depression and the inflationary 70s–and definitely the failures of Reagan’s voodoo economics–are full of lessons that every one seems to be ignoring. We’re seeing the appointment of types that just muck around in the already mucked up bureaucracy decimated by Dubya Bush whose only inspiration appeared to be blowing things up like a psychopathic third grade with a bunch of firecrackers and a pond full of frogs.
Finance people have tons of numbers in search of a theory. They crunch that data until they come up with a hypothesis that fits their storyline. Macroeconomists have a broader sense of what the system needs to look like in order to really change things. Economics has theory proved endlessly by empiricists. Finance people have run amok since the 1980s and really, it’s time to end overt data mining and look to bigger principles.
This White House seems really short on values, vision, and a blueprint to carry our country forward into this new decade. We need an economic strategy that includes real job creation; not imaginary ‘saved’ jobs. We need to unwind any thing that’s too big too fail and empower small, facile, and agile companies. Our money needs to be concentrated on developing strategies and resources that we can nurture and renew. (No, corn ethanol is not the answer. Making higher education more expensive and less accessible to all is not the answer either.) We need to find a way to fulfill our promises to the weakest among us. Current income inequality is not only immoral but it’s at levels approaching the powder keg of revolutions. (Have you listened to a Teabot recently?) We can no longer be railroaded by the interests of the few just because they can afford to fund political campaigns. No government law should incent a business to leave its community in need to search out obscene profits elsewhere because government policy encourages it. We should not accommodate any country that buggers growth from us by proffering trinkets on credit. Vision is not a difficult thing. Fighting for what’s right should not be a difficult thing either unless you’re in the fight with the wrong motivation.
Compromise seems to come so easy these days because there’s nothing proffered but compromise. The original positions are badly compromised from the get-go. Law making is based on political victory and not victory for the country. No one is shifting real strategies due to midterm elections because there’s never been an overarching plan to begin with. Moving pieces around a chess board is not playing chess. Government at the highest levels has just gotten to be a muddled process with no guiding principles. The White House is intently putting mid-level bureaucrats from corporations and the Clinton administration in charge of making tasteless sausage. It’s just making things even more muddled and more muddled is not the type of change people want. No bold vision could ever include the likes Timothy Geithner, Joe Biden, or Bill Richardson in positions that require vision. Instead, we have people of vision–like Elizabeth Warren–hunting for acceptable seat warmers.
Meh.
I would just like to say that the last two months of being more than a file cabinet has brought a lot of intriguing things to Sky Dancing. We have a growing number of readers and front pagers and I find that all very exciting. So, must other parts of the blogosphere. WonktheVote’ s excellent piece ‘What if this is as good as the Obama administration gets? ‘ made Mike’s Blog Round up at Crooks and Liars. Another surprise showed up last night from Pew Research Center and the Pew Research Center’s Project for Excellence in Journalism. This time a reference and quote come from BostonBoomer on Julian Assange and the Wikileaks. Here’s their story and how we fit in.
Espousing a unique mix of politics, technology, free speech and transparency, WikiLeaks has captured the attention from bloggers in a way few stories ever do. It has been a focus of social media conversation for three weeks this month alone, with a discussion that moved from one dimension to the next. After centering on political blame, the value of exposing government secrets, and the importance of a free press, the debate took on yet a new angle last week.For the week of December 20-24, more than a third (35%) of the news links on blogs were about the controversy, making it the No. 1 subject, according to the New Media Index from the Pew Research Center’s Project for Excellence in Journalism.
…
“It should go without saying that I do not approve of Assange’s behavior if the allegations against him are true. Nevertheless, I still believe the allegations are very convenient for the powers that be,” declared Sky Dancing.
The Center produces something that’s called the New Media Report. Here’s the description.
The New Media Index is a weekly report that captures the leading commentary of blogs and social media sites focused on news and compares those subjects to that of the mainstream press.
PEJ’s New Media Index is a companion to its weekly News Coverage Index. Blogs and other new media are an important part of creating today’s news information narrative and in shaping the way Americans interact with the news. The expansion of online blogs and other social media sites has allowed news-consumers and others outside the mainstream press to have more of a role in agenda setting, dissemination and interpretation. PEJ aims to find out what subjects in the national news the online sites focus on, and how that compared with the narrative in the traditional press.
In similar news, Technorati just gave us a new badge early this morning. It’s a nice little green rectangle that says TOP 100 US POLITICS. We’re currently 95. Not so bad for a blog that was just a file cabinet 2 months ago.
Our goals here include becoming part of the bigger conversation as well as providing more links and information to news items than we get via traditional main stream media outlets dominated by the concerns of advertisers and sources. We complement that with our commentary and explanations and yours. Yes. They hear us now.
So what’s on your reading, blogging and celebration lists today?
Watch Dog of the Lap Dogs
Posted: December 30, 2010 Filed under: The Media SUCKS | Tags: bad journalism, FAIR, P.U.litzer awards, stupid journalists 23 Comments
Since I went off on the media yesterday, I thought I’d continue the rant and share ‘Smell Something Rotten?’ from FAIR. FAIR stands for Fairness and Accuracy In Reporting. It’s their annual P.U. litzer award time. Here’s a few juicy roasts of the worst media had to offer in 2010.
Prosecute the Messenger Award: Diane Sawyer (ABC News)
On October 22, ABC World News anchor Diane Sawyer introduced a report on WikiLeaks‘ exposure of thousands of classified documents from the Iraq War. ABC correspondent Martha Raddatz summarized the contents of the WikiLeaks files: “Deadly U.S. helicopter assaults on insurgents trying to surrender…. The Iraqi civilian death toll far higher than the U.S. has acknowledged…. Graphic detail about torture of detainees by the Iraqi military.” After Raddatz’s report, Sawyer offered this followup: “I know there’s a lot of outrage about this again tonight, Martha. But tell me, anything more about prosecuting the WikiLeaks group?”
–The Quarter-Million-Dollar Middle Award: Kiran Chetry (CNN)
CNN anchor Kiran Chetry (American Morning, 2/1/10) interviewing White House budget director Peter Orszag: “You also talk about letting taxes expire for families that make over $250,000. Some would argue that in some parts of the country that is middle class.” Back in reality, more than 98 percent of U.S. households make less than $250,000
–Disappearing Palestinians Award: New York Times
On the New York Times op-ed page (8/27/10), Martin Indyk of the Brookings Institution gave one reason to be hopeful about peace talks between Israel and the Palestinian Authority: “First, violence is down considerably in the region.” What he meant was that Israeli deaths were down. Completely unmentioned were the roughly 1,500 Palestinians that have been killed since the Israeli assault on Gaza in December 2008–the vast majority of whom were minors or noncombatant adults, according to the Israel human rights group B’Tselem. This oversight wasn’t just confined to the op-ed page: a Week in Review article by Ethan Bronner (11/21/10) reported “that the Palestinian/Israeli conflict has been largely drained of deadly violence in the past few years.” Hundreds of dead Palestinians are what is meant by “drained of violence.”
–Balancing Tolerance with Hate Award: Washington Post’s On Faith Blog
On National Coming Out Day (10/11/10), the Washington Post’s On Faith blog decided it would be a good time to hear from raging homophobe Tony Perkins of the Family Research Council. Perkins penned a column attacking “homosexual activist groups” under the headline “Christian Compassion Requires the Truth About Harms of Homosexuality.” Why on Earth does anyone need to hear Perkins’ claptrap? The Post explained on Twitter (10/12/10) that it was a matter of journalistic balance: “We’re working to cover both sides. Earlier, we hosted Dan Savage of It Gets Better in a live chat.” For the record, “It Gets Better” is Savage’s campaign to combat suicides among queer youth. Who knew that was a point of view that needed balancing?
–Am-I-Reading-The-Onion Headline Writing Award: Washington Post
For its April 26 story, “Amid Outrage Over Civilian Deaths in Pakistan, CIA Turns to Smaller Missiles.”
Honorable mention goes to the New York Times, whose November 11 story explained the U.S. plan to remain in Afghanistan for at least three years longer than advertised. The headline: “U.S. Plan Offers Path to Ending Afghan Combat.”
I’d love to put them all up, but then I’d go way over the rule of FAIR use. At least Rick Sanchez is off the air or there would be enough on their list to fill up about 5 posts.
As Brad Delong says, “Why Oh Why Can’t We Have a Better Press Corps?”
A little Economics this and that …
Posted: December 27, 2010 Filed under: Catfood Commission, Civil Liberties, Civil Rights, The Media SUCKS, U.S. Economy, U.S. Politics, Voter Ignorance, We are so F'd, WE TOLD THEM SO | Tags: AFL-CIO, Chris Hedges, commodity prices, Paul Krugman, wealth gap 44 CommentsI thought I’d post a little end of the year economics stuff just in case you need a nap!!
I’ve been writing for around a year about a possible bubble in commodity prices but a definite increases in base commodity prices coming shortly. Now, this doesn’t necessarily mean it will involve an increase in over all inflation because these price increases are mostly in the already volatile areas of food and energy which are considered outside the ‘core’ inflation measures because they tend to bump and shuffle a lot. This is from Paul Krugman in his column: “The Finite World”.
Oil is back above $90 a barrel. Copper and cotton have hit record highs. Wheat and corn prices are way up. Over all, world commodity prices have risen by a quarter in the past six months.
Is it speculation run amok? Is it the result of excessive money creation, a harbinger of runaway inflation just around the corner? No and no.
What the commodity markets are telling us is that we’re living in a finite world, in which the rapid growth of emerging economies is placing pressure on limited supplies of raw materials, pushing up their prices. And America is, for the most part, just a bystander in this story.
Krugman goes on to explain how booms in the economies of developing nations is causing increased Demand for certain commodities. This simply means the price will go up when the supply is limited for some reason or another. Some times the supply is slow to increase because of production considerations or inventory considerations. Other times the supply is limited just because there is a finite amount of it on the planet. Some of this may also be due to the market taking in the impact of those just passed subsidies to corn-based ethanol which take farm land out of food/other crop production and funneling it to corn production, This decreases the supply of wheat, soybeans, and cotton too.
And those supplies aren’t keeping pace. Conventional oil production has been flat for four years; in that sense, at least, peak oil has arrived. True, alternative sources, like oil from Canada’s tar sands, have continued to grow. But these alternative sources come at relatively high cost, both monetary and environmental.
Also, over the past year, extreme weather — especially severe heat and drought in some important agricultural regions — played an important role in driving up food prices. And, yes, there’s every reason to believe that climate change is making such weather episodes more common.
Krugman concludes with the important question of what does this mean for us?
So what are the implications of the recent rise in commodity prices? It is, as I said, a sign that we’re living in a finite world, one in which resource constraints are becoming increasingly binding. This won’t bring an end to economic growth, let alone a descent into Mad Max-style collapse. It will require that we gradually change the way we live, adapting our economy and our lifestyles to the reality of more expensive resources.
But that’s for the future. Right now, rising commodity prices are basically the result of global recovery. They have no bearing, one way or another, on U.S. monetary policy. For this is a global story; at a fundamental level, it’s not about us.
Yes. The world economy is “not about us” any more. So many other countries now have huge viable economies that we are no long the center of the Supply and Demand world like we were post World War 2. This is definitely going to take some adjusting on our part and some ignoring of the rhetoric of the right on our country’s role in the world. We can not continue to maintain the idea of American Exceptionalism in its current form given that we are really no longer exceptional in many, many ways. That adaptive behavior does not diminish our historical role as the original provider of Democracy-based Constitutions and Civil Liberties or our military role in freeing many countries from monarchy and fascism in both world wars.
We can continue to pour our resources and the lives of our young into asserting ourselves as the global military police in attempt to maintain our delusion of being ‘special’, or we can put our resources into assuring ourselves and our children a comfortable niche in the world with a respected voice at a big table. The Right Wing has to understand that we don’t own the table anymore. If only our politicians would grow up enough to make the best choice for us instead of deluding us into thinking that we’ll ever see post World War 2 America again.
I want to couple this with something I got in a tweet from the AFL-CIO: ‘U.S. Workers Earned Less in 2009 Than in 2008’. This goes along with the fact that many things we could finance or buy twenty to thirty years ago will elude us today.
New data show America’s workers earned less in 2009 than in 2008, according to the Bureau of Labor Statistics. Compensation was down by 3.2 percent in 2009 with declines in construction and manufacturing fueling the plunge. St. Louis County, the hardest hit, saw a decline of 11.5 percent.
For those lucky enough to have a job, average pay increased by 1.2 percent. But overall income inequality is now at its worst since 1928. As the chart by the Economic Policy Institute (EPI) shows here, between 1979 and 2005, households at the bottom fifth of the income scale have seen an average, inflation-adjusted income growth of just $200. The $200 figure does not represent an average annual increase in income, but rather an increase of $200 over the entire 26-year period. By contrast, a small number of households at the top 0.1% of the income scale saw average income growth of almost $6 million over that same period.
In addition, the “wealth gap,” which differs from the income gap because it measures total net worth, is now 225 times greater between the richest 1 percent and the median family net worth.
Lest we forget, corporations are sitting on $1.93 trillion as of Sept. 30—up from $1.8 trillion at the end of June–and not using some of that money pot to create jobs.
The bottom is falling out for the middle classes in this country. Income inequality is as bad as it was in 1928 during the peak of the Robber Baron age. There is no way we’ll have a shot at seeing ‘morning again in America’–even one concocted from a senile man’s political rhetoric–without a strong middle class. This is one of the reasons that I highly recommend your holiday reading included Chris Hedges ‘Death of the Liberal Class’. Here’s Sanctuary TV’s you tube on his explanation the “genesis of the book”. Wonk mentioned some of his thesis in her excellent post yesterday.
The ‘lies of omission’ that we see in the Main Stream Media today makes this imperative that we have conversations outside of channels that are controlled by for-profit corporations. Listen in to the video at around 2:45.
Most of the images that are disseminated around our culture are skillfully put together and are disseminated by for profit corporations so that we are made to …or we confuse … how we are made to feel with knowledge. Which is precisely how ended up with Barrack Obama.
This is especially true with things economic. I had a conversation with my Republican Dad yesterday which ended up with him accusing me of sounding just like the Democrats after the Great Depression. (I will wear that badge proudly, thank you.) I was trying to explain to him how Social Security isn’t going bankrupt, that the overages are invested in T-bonds and T-bills and that isn’t the same as massive borrowing from the fund by the federal government, and that if social security can’t rely on the interest and their capital invested in T-bonds or T-bills in the future, we will undoubtedly have a much greater problem than having smaller social security checks. (My guess is that we would be in the middle of a government collapse similar to what happened to the USSR in the 1980s.) Dad kept accusing me of living in the theoretical world of economics–me, an empirical economist–when I kept telling him it was just a matter of debits and credits which are anything but theoretical economics.
The deal is this if you read studies, and follow the debits and the credits. The threat to social security isn’t coming from its cash flows. It’s coming from the politicians in Washington, D.C. and it appears that it will shortly be led by the aforementioned Barrack Obama. Some of these people seem intent on collapsing our Republic and its democratic roots. These Bircher-like attacks on the New Deal are real attacks on the ways the government–through New Deal Policies, Laws, and Agenciess- levels the economic playing field for small businesses and working class people. This is the same way that Bircher-like attacks on Civil Rights attacks the ways the government levels the legal playing field for minorities and women.
Again, I’m drawn to the quote most attributed to the late great Senator Patrick Monihan. People and politicians are entitled to their opinions but not the facts. The problem is that fact manufacturing–or labeling political diatribes by media monsters like Glenn Beck–appears to be rampant in the very outlet that provides the life blood of our democracy.
This maldescriptions of unemployment, the role and purpose and very political independence of the Fed are more features of this misinformation campaign. I’m going to further reference Paul Krugman and his economist yogini–yup, there’s at least two of us out there–wife Robin Wells here. They co-authored an excellent essay on “Where do We Go from Here” in The New York Review of Books. This part comes after their joint call to the Democratic congress critterz–left standing from the midterms elections–to fight.
First, it would mean fighting on economic issues. While it is extremely unlikely that Democrats can undertake any further fiscal stimulus, they can put Republicans on the spot, resisting calls for austerity and making the case, repeatedly, that the GOP is standing in the way of necessary action. The fight over renewal of unemployment benefits should be only the start. Democrats can also denounce Republican attacks on the Federal Reserve and defend the Fed’s independence. They can resist attempts to turn back health care reform, on both humanitarian and long-term budgeting grounds, as health care reform is the critical factor in reining in the long-term budget deficit.
Health Care Reform Inc. could be one more rung on the ladder for the middle class on the ladder back to upwards mobility. Instead of repealing the now unpopular bill, we should be working actively to get the right things into its corporate enabling shell. That would be–at minimum–a Public Option. We have to get them to fight on Economic issues. Also, we desperately need to deal with Fannie and Freddie. These organizations used to be the way to home ownership for working class Americans. I stand proudly as an example in that regard. My little kathouse in the bayou in the middle of a solid urban hood shines as a beacon of what those things were supposed to do before they started manufacturing loans to the derivatives market.
And there are steps that the White House could take without congressional approval. Democrats could pressure the administration to fix the inexcusable mess at the HAMP (mortgage modification) program—a program whose Kafkaesque complexity has in many cases made matters so bad for home owners that it has triggered the foreclosures it was supposed to avoid. In addition, mortgage relief would benefit the wider economy. Furthermore, the scope of mortgage relief could be made much wider if Fannie Mae and Freddie Mac were used to guarantee mortgage refinancing. Other proposals go even further: for example, that Fannie and Freddie engineer reductions in mortgage principals. All of this could be done, conceivably, by executive order.
What we are seeing is a brick by brick removal in the walls that support the social net built during the New Deal that helped America become the thing it was during the 1950, 1960s and 1970s. Yes, we helped many countries get rid of Nazis and Fascist and this did make us some what exceptional at the time, but ushering in the very policies and attitudes of fascism does not make us the least bit exceptional now. It weakens the very people that make for a vibrant Democracy. Also, given that the Wikileaks information has been the soul source recently of unmanufactured news and opinion passed off as fact, it also gives us a glance at why the rest of the planet has ceased to see the US as exceptional too.
To paraphrase the words of Common Dreams and Margaret Flowers: We Must Resist. Okay, so this essay was a little Political Economy and not just economics. You awake?
update:
I get to update this post with a link to one of the more influential ‘liberal’ economist who is also writing on the changes in the Political Economy at Project Syndicate. Here’s something from Jeffrey D. Sachs writing on ‘America’s Political Class Struggle’. You may recall that both Krugman and Sachs were called to the Obama woodshed a few weeks ago and told to get on board with the McConnell-Obama tax cuts.
America is on a collision course with itself. This month’s deal between President Barack Obama and the Republicans in Congress to extend the tax cuts initiated a decade ago by President George W. Bush is being hailed as the start of a new bipartisan consensus. I believe, instead, that it is a false truce in what will become a pitched battle for the soul of American politics.
As in many countries, conflicts over public morality and national strategy come down to questions of money. In the United States, this is truer than ever. The US is running an annual budget deficit of around $1 trillion, which may widen further as a result of the new tax agreement. This level of annual borrowing is far too high for comfort. It must be cut, but how?
The problem is America’s corrupted politics and loss of civic morality. One political party, the Republicans, stands for little except tax cuts, which they place above any other goal. The Democrats have a bit wider set of interests, including support for health care, education, training, and infrastructure. But, like the Republicans, the Democrats, too, are keen to shower tax cuts on their major campaign contributors, predominantly rich Americans.
The result is a dangerous paradox. The US budget deficit is enormous and unsustainable. The poor are squeezed by cuts in social programs and a weak job market. One in eight Americans depends on Food Stamps to eat. Yet, despite these circumstances, one political party wants to gut tax revenues altogether, and the other is easily dragged along, against its better instincts, out of concern for keeping its rich contributors happy.
This tax-cutting frenzy comes, incredibly, after three decades of elite fiscal rule in the US that has favored the rich and powerful. Since Ronald Reagan became President in 1981, America’s budget system has been geared to supporting the accumulation of vast wealth at the top of the income distribution. Amazingly, the richest 1% of American households now has a higher net worth than the bottom 90%. The annual income of the richest 12,000 households is greater than that of the poorest 24 million households.
Please go read the rest of the article. I think this shows further evidence that Obama didn’t placate liberal economists.








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