Indiana Democrats Flee to IL and KY to Avoid Voting on Right to Work Law

Posted: February 22, 2011 | Author: | Filed under: collective bargaining, Democratic Politics, U.S. Economy, U.S. Politics, unemployment, worker rights | Tags: , , , , , , , , , | 32 Comments

Indiana House with Empty Democratic Seats

Yes, folks, it’s going viral! Indiana House Democrats have emulated Wisconsin Democratic Senators and leave the state rather than vote on a draconian anti-union bill.

Seats on one side of the Indiana House were nearly empty today as House Democrats departed the the state rather than vote on anti-union legislation.

A source tells The Indianapolis Star that Democrats are headed to Illinois, though it was possible some also might go to Kentucky. They need to go to a state with a Democratic governor to avoid being taken into police custody and returned to Indiana.

The House came into session twice this morning, with only three of the 40 Democrats present. Those were needed to make a motion, and a seconding motion, for any procedural steps Democrats would want to take to ensure Republicans don’t do anything official without quorum.

With only 58 legislators present, there was no quorum present to do business. The House needs 67 of its members to be present.

Indiana Government Mitch Daniels, who has completely unrealistic presidential aspirations tried to laugh off the Democrats’ strategy.

downplayed the boycott and the labor protests and laughed off suggestions that he might send the state police to pick up Democrats, some of whom left the state to escape their jurisdiction.

[….]

The right-to-work bill would prohibit Hoosier companies from entering into contracts requiring employees either to join a union or pay union dues or fees.

The bill would have a dramatic impact on teachers.

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The Uncertainty Blues

Posted: February 22, 2011 | Author: | Filed under: U.S. Economy, U.S. Politics, unemployment, We are so F'd | Tags: , | 14 Comments

There are several headlines today that you really don’t want to see if you’re hoping for an economic recovery.  This one is especially chilling:  ‘Home prices fall 4.1%, near 2009 lows’. There are good reasons this doesn’t bode well.  The first is that the construction sector is a large economic generator in our economy and it also is a job generator. The second is that when people feel less wealthy, they spend less.  Both tend to have recessionary effects.  It doesn’t look like things will improve either.

And things may get a lot worse, said Robert Shiller, a Yale economist and half of the Case-Shiller team, in a web conference after the report’s release.

“There’s a substantial risk of home prices falling another 15%, 20% or 25% more,” he said.

Shiller cited a few reasons for his bearish stance. The government is expected to reduce the presence of Fannie Mae and Freddie Mac in the housing market. These agencies currently provide loan guarantees for about two-thirds of mortgages. If they fade away, private mortgage money will have to fill the gap and the cost of mortgage borrowing will surely rise. That will hurt home prices.

There’s also talk of possibly ending the mortgage interest tax deduction for many homeowners. Meanwhile, the weak economic recovery may be threatened by higher oil prices as a result of turmoil in the Mideast.

At the web conference, Shiller’s index partner Karl Case wasn’t much more optimistic.

“I see [the market] bouncing along the bottom with a slight negative trend,” said Case, an economics professor emeritus at Wellesley College.

Unrest in Libya and Bahrain are also driving up oil prices. Both of these countries are oil producers.  This also drove stock market prices lower.  This is also not good as stock market decreases also make people feel poorer so they spend less.  Additionally, higher gas prices forces people to readjust their budgets.

U.S. investors returned from the long holiday weekend in a selling mode amid increased concern about developments in North Africa and the Middle East.

Global financial markets recoiled overnight as Libya appeared on the verge of civil war and continuing protests in Bahrain sent crude prices surging. After Brent crude futures approached $110 per barrel in London, benchmark West Texas Intermediate (WTI) surged above $91 per barrel in New York trading midday Tuesday.

Higher energy prices threaten the global economic recovery, on which much of the two-year rally in stocks has been based. Heading into this week, the S&P was up 100% from its March 2009 low, meaning both that continued growth is “priced into” stocks and there a lot of paper profits waiting to be booked.

In recent trading, the S&P was down 1.6% while the Dow was off 1.1% and the Nasdaq by more than 2%.

On top of this, we still have high unemployment coupled with increasing threats of lay offs for state and local workers.  Any lay offs or decreases in wages and benefits has the same effect: it makes people feel poor and makes them re-arrange their budgets.   Unions have been largely responsible for benefits and salary levels enjoyed by all workers. Any attempts to further erode collective bargaining is sure to suppress wages and benefits in all sectors.  Several polls today seem to indicate that most people are aware of this and oppose weakening unions.  Here’s one such poll from USA Today.

Americans strongly oppose laws taking away the collective bargaining power of public employee unions, according to a new USA TODAY/Gallup Poll. The poll found 61% would oppose a law in their state similar to such a proposal in Wisconsin, compared with 33% who would favor such a law.

All of this uncertainty is sure to impact the economic outlook.  Many of these are indicative further weakening. Remember, tax cuts for businesses work only if they have revenues.  They won’t have increased revenues without customers.  Higher oil prices–as well as higher prices for other commodities like food–are likely to transfer dollars away from discretionary spending.  We could see further weakening in the demand for consumer durables like cars and big appliances.  I’ve noticed some rather spectacular sales this weekend for these items.  We’ll see in a few months if those commercials today are acts of desperation to unload inventory.

It appears that many in government are purposefully trying to shrink not only the government but also the economy. I’m not sure why every one has decided to go to faith based tax cuts rather than rely on economic theory.  It’s as if years of experience and evidence have been thrown out the window.  Many Republican governors are doing the same thing that created budget problems for Wisconsin.  They are creating deficits by passing tax cuts benefiting the rich and passing the sacrifice to the poor and middle class. The poor and middle class are the consumers that really matter in an economic crunch.  They spend most of their money and they do it on goods that generate local jobs. Remember, this just happened at the national level too. We’ve seen tax cuts go predominantly to the wealthy while talk of benefit cuts are rampant.

State budgets across the country are in disarray as a weak economy, the end of tens of billions in Recovery Act funds, and a GOP-led House that is pushing for deep cuts to many programs that benefit state and local governments set the stage for massive in shortfalls over the next two years. Instead of making the tough choices necessary to help their states weather the current crisis with some semblance of the social safety net and basic government services intact, Republican governors are instead using it as an opportunity to advance several longtime GOP projects: union busting, draconian cuts to social programs, and massive corporate tax breaks. These misplaced priorities mean that the poor and middle class will shoulder the burden of fiscal austerity, even as the rich and corporations are asked to contribute even less.

Follow that Think Progress link to find some of the worst states with worst abuses.  Arizona tops the list.

Now, however, Governor Jan Brewer is proposing to kick some 280,000 Arizonans, mostly childless adults, off the state’s Medicaid rolls. Brewer claims such a move is the only way to get the state’s fiscal house in order, as it would save $541.5 million in general funding spending. Brewer also wants to save $79.8 million by dropping 5,200 “seriously mentally ill” people from the state’s Medicaid program. Instead of balancing out these draconian cuts with additional revenue increases or simply not making the cuts in the first place, Brewer instead signed $538 million in corporate tax cuts into law two weeks ago.

Other states to watch out for are New Jersey, Texas, Michigan, Ohio and of, course, Wisconsin.  Here’s an example from Florida.

Scott’s radical budget proposal, unveiled at a tea party event, includes $4.6 billion in spending cuts that would result in the direct loss of more than 8,000 jobs. It would also privatize large areas of state services, including juvenile justice facilities, Medicaid, and some hospitals. Education spending would be cut by more than $3 billion and teachers and other public employees would see their pensions under threat. Such deep cuts in essential programs and services are necessary to offset Scott’s proposal to cut corporate and property taxes by at least $4 billion.

If these things occur, you can look forward to a return to the Depression Years.  I guarantee it.

Presidents’ Day Reads

Posted: February 21, 2011 | Author: | Filed under: Bahrain, Diplomacy Nightmares, Drone Warfare, Egypt, Foreign Affairs, income inequality, Libya, morning reads, Psychopaths in charge, U.S. Economy, U.S. Politics, Voter Ignorance, worker rights, Yemen | Tags: , , , , , , , , , | 51 Comments

Good Morning! It’s “Presidents’ Day.” Talk about a generic holiday. We used to mark two presidents’ birthdays in February–Washington’s birthday on the 22nd and Lincoln’s birthday on the 12th–but now we just have a Monday in February when everything goes on sale, and pictures of Washington and Lincoln are used to sell cars and mattresses. At least some of us get the day off work.

There’s an awful lot of news happening, and I’m guessing there could be a even more happening Libya by the time you start reading this. The latest is that protesters are in Tripoli, and the family of Libyan dictator Muammar Gaddafi is vowing to fight the protesters “to the last man standing,” according to Gaddafi’s son Saif al-Islam in a really monotonous, rambling speech yesterday.

Anti-government protesters rallied in Tripoli’s streets, tribal leaders spoke out against Gaddafi, and army units defected to the opposition as oil exporter Libya endured one of the bloodiest revolts to convulse the Arab world.

Gaddafi’s son Saif al-Islam Gaddafi appeared on national television in an attempt to both threaten and calm people, saying the army would enforce security at any price.

“Our spirits are high and the leader Muammar Gaddafi is leading the battle in Tripoli, and we are behind him as is the Libyan army,” he said.

“We will keep fighting until the last man standing, even to the last woman standing…We will not leave Libya to the Italians or the Turks.”

He also warned of “rivers of blood.” But those may be famous last words. From the Guardian UK:

In fast-moving developments after midnight, demonstrators were reported to be in Tripoli’s Green Square and preparing to march on Gaddafi’s compound as rumours spread that the leader had fled to Venezuela. Other reports described protesters in the streets of Tripoli throwing stones at billboards of Muammar Gaddafi while police used teargas to try to disperse them.

“People are in the street chanting ‘Allahu Akbar’ (God is great) and throwing stones at photos of Gaddafi,”an expatriate worker told Reuters by telephone from Tripoli. “The police are firing teargas everywhere, it’s even getting into the houses.”

There was also plenty of protesting going on in other Middle Eastern countries:

Libya’s extraordinary day overshadowed drama elsewhere in the region. Tensions eased in Bahrain after troops withdrew from a square in Manama occupied by Shia protesters. Thousands of security personnel were also deployed in the Iranian capital, Tehran, to forestall an opposition rally. Elsewhere in the region unrest hit Yemen, Morocco, Oman, Kuwait and Algeria.

At Asia Times Online, Pepe Escobar wrote a couple of days ago that the protests in Bahrain could soon spread to Saudi Arabia. That is one fascinating article.

In Wisconsin, protesters say they aren’t going anywhere.

“We’ll be here Monday, Tuesday, Wednesday, Thursday — as long as it takes,” Gary Lonzo, a union organizer and former Wisconsin corrections officer, said Sunday as he watched protesters banging drums and waving signs here for a sixth day in a row. “We’re not going anywhere.”

As the protests went on through falling sleet and snow, some lawmakers suggested that a compromise might yet be possible over the cuts that Gov. Scott Walker, a Republican, has proposed. A spokesman for Dale Schultz, a moderate Republican senator, said that Mr. Schultz supported Mr. Walker, particularly in his assessment that the state budget situation was dire, but that Mr. Schultz also hoped to work to preserve collective bargaining rights.

Meanwhile, Wisconsin’s Democratic State Senators are staying in Illinois until further notice.

“This is not a stunt, it’s not a prank,” said Senator Jon Erpenbach, one of the Democrats who drove away from Madison early Thursday, hours before a planned vote, and would say only that he was in Chicago. “This is not an option I can ever see us doing again, but in this case, it’s absolutely the right thing to do. What they want to do is not the will of the people.”

Either I missed this story completely, or the US corporate media ignored it. An exiled religious leader, Muslim cleric Yusuf al-Qaradawi, has returned to Egypt after 50 years and may be trying to “stealing the revolution,” according to a retweet from Mona Eltahawy (h/t, Wonk the Vote). Quaradawi made a speech to more than a million people in Cairo’s Tahrir Square on Friday. During the rally,

Google executive Wael Ghonim, who emerged as a leading voice in Egypt’s uprising, was barred from the stage in Tahrir Square on Friday by security guards, an AFP photographer said. Ghonim tried to take the stage in Tahrir, the epicentre of anti-regime protests that toppled President Hosni Mubarak, but men who appeared to be guarding influential Muslim cleric Yusuf al-Qaradawi barred him from doing so.

Ghonim, who was angered by the episode, then left the square with his face hidden by an Egyptian flag.

Uh oh….

Remember Raymond Davis, who was arrested in Pakistan for shooting two Pakistani men on the street? He was more or less outed as a CIA agent during his trial. The U.S. has been trying to save him from murder charges by claiming he had diplomatic immunity. But the trial has gone on anyway, and now it’s definite that he’s CIA.

Raymond Davis has been the subject of widespread speculation since he opened fire with a semi-automatic Glock pistol on the two men who had pulled up in front of his car at a red light on 25 January.

Pakistani authorities charged him with murder, but the Obama administration has insisted he is an “administrative and technical official” attached to its Lahore consulate and has diplomatic immunity.

Based on interviews in the US and Pakistan, the Guardian can confirm that the 36-year-old former special forces soldier is employed by the CIA. “It’s beyond a shadow of a doubt,” said a senior Pakistani intelligence official. The revelation may complicate American efforts to free Davis, who insists he was acting in self-defence against a pair of suspected robbers, who were both carrying guns.

[….]

The Pakistani government is aware of Davis’s CIA status yet has kept quiet in the face of immense American pressure to free him under the Vienna convention. Last week President Barack Obama described Davis as “our diplomat” and dispatched his chief diplomatic troubleshooter, Senator John Kerry, to Islamabad. Kerry returned home empty-handed.

Many Pakistanis are outraged at the idea of an armed American rampaging through their second-largest city. Analysts have warned of Egyptian-style protests if Davis is released.

Oh dear, another diplomatic nightmare for our indecisive President to deal with. BTW, has he said anything about the bloody massacres in Libya yet?

The New York Post has a nasty takedown of Mitt Romney by Josh Kosman, author of a book on how private equity firms could cause the next economic crisis.

…the former private equity firm chief’s fortune — which has funded his political ambitions from the Massachusetts statehouse to his unsuccessful run for the White House in 2008 — was made on the backs of companies that ultimately collapsed, putting thousands of ordinary Americans out on the street. That truth if it becomes widely known could become costly to Romney, who, while making the media rounds recently, told CNN’s Piers Morgan that “People in America want to know who can get 15 million people back to work,” implying he was that person.

Romney’s private equity firm, Bain Capital, bought companies and often increased short-term earnings so those businesses could then borrow enormous amounts of money. That borrowed money was used to pay Bain dividends. Then those businesses needed to maintain that high level of earnings to pay their debts.

Romney in 2007 told the New York Times he had nothing to do with taking dividends from two companies that later went bankrupt, and that one should not take a distribution from a business that put the company at risk.

Yet Geoffrey Rehnert, who helped start Bain Capital and is now co-CEO of the private equity firm The Audax Group, told me for my Penguin book, “The Buyout of America: How Private Equity Is Destroying Jobs and Killing the American Economy,” that Romney owned a controlling stake in Bain Capital between approximately 1992 and 2001. The firm under his watch took such risks, time and time again.

I’m going to leave you with this video from The Ed Show live in Madison, Wisconsin.

What are you reading and blogging about today?

US Claims “National Security” to Cover Up Embarrassing Deal with Con Man

Posted: February 20, 2011 | Author: | Filed under: income inequality, Psychopaths in charge, Social Security, The Bonus Class, U.S. Economy, U.S. Military, U.S. Politics, We are so F'd | Tags: , , , , , , , , | 10 Comments

According to the politicians running things in our country these days, paying fair salaries to teachers, social workers, and firefighters is irresponsible because it runs up the deficit. Paying Social Security to old folks is driving the country into bankruptcy. But when the feds pour millions of dollars down the drain because they get duped by a con man, that’s a national security secret.

Dennis Montgomery, Con Man

From The New York Times:

For eight years, government officials turned to Dennis Montgomery, a California computer programmer, for eye-popping technology that he said could catch terrorists. Now, federal officials want nothing to do with him and are going to extraordinary lengths to ensure that his dealings with Washington stay secret.

In fact, the Justice Department has argued in court that if they had to reveal the embarrassing details of what happened, it would damage national security. That could be true if revealing how dumb our public officials and “intelligence” experts are puts our country in danger….

Mr. Montgomery and his associates received more than $20 million in government contracts by claiming that software he had developed could help stop Al Qaeda’s next attack on the United States. But the technology appears to have been a hoax, and a series of government agencies, including the Central Intelligence Agency and the Air Force, repeatedly missed the warning signs, the records and interviews show.

Get this, Montgomery convinced U.S. intelligence wizards that he had designed some software that could detect secret Al Qaeda messages concealed in Al Jazeera broadcasts! ROFLOL! That’s reminds me of the days when religious nuts used to claim they could detect Satanic messages in rock ‘n’ roll music by playing it backwards.

Montgomery also told the CIA that his magic software could “identify terrorists from Predator drone videos” and pick up sounds from submarines. And the CIA geniuses bought Montgomery’s tale hook, line, and sinker. As a result of the government’s involvement with this grifter, there was

…an international false alarm that led President George W. Bush to order airliners to turn around over the Atlantic Ocean in 2003.

The software led to dead ends in connection with a 2006 terrorism plot in Britain. And they were used by counterterrorism officials to respond to a bogus Somali terrorism plot on the day of President Obama’s inauguration, according to previously undisclosed documents.

OMG, my sides are splitting from laughter! And on top of all that,

C.I.A. officials…came to believe that Mr. Montgomery’s technology was fake in 2003, but their conclusions apparently were not relayed to the military’s Special Operations Command, which had contracted with his firm. In 2006, F.B.I. investigators were told by co-workers of Mr. Montgomery that he had repeatedly doctored test results at presentations for government officials. But Mr. Montgomery still landed more business.

In 2009, the Air Force approved a $3 million deal for his technology, even though a contracting officer acknowledged that other agencies were skeptical about the software, according to e-mails obtained by The New York Times.

Angelo Mozilo, Fraudster

Hold onto your wallets, I think President Obama is going to have to ask us “small people” to “sacrifice” some more to make up the difference. Meanwhile, Mr. Montgomery will very likely get away with his fraud, just like Countrywide’s Angelo Mozilo, formerly of Countrywide, and every other fraudster and bankster who comes down the pike. Don’t worry, though, “sacrifice” is good for you, your parents, and your children and grandchildren.

Will 2011 “Rock the World” Like 1968 Did?

Posted: February 19, 2011 | Author: | Filed under: Algeria, Bahrain, Egypt, Foreign Affairs, Iraq, Middle East, Tunisia, U.S. Economy, U.S. Politics, worker rights, Yemen | Tags: , , , | 27 Comments

Paris, May 1968

For the past few weeks, as the protests in Tunisia spread to Egypt and then to several other countries, I’ve been reminded of the worldwide political uprisings that took place back in 1968, “the year that rocked the world.” Now that we are even seeing Americans protesting in the streets of Madison, Wisconsin and Columbus, Ohio, I wonder: could it happen again?

In case you weren’t around in 1968 or your memory is fuzzy, the Guardian published a summary of some of the events of that unbelievable year back in 2008. Sean O’Hagen describes how in May 1968, Paris

…was paralysed after weeks of student riots followed by a sudden general strike. France’s journey from ‘serenity’ to near revolution in the first few weeks of May is the defining event of ‘1968’, a year in which mass protest erupted across the globe, from Paris to Prague, Mexico City to Madrid, Chicago to London.

[….]

These rebellions were not planned in advance, nor did the rebels share an ideology or goal. The one cause many had in common was opposition to America’s war in Vietnam but they were driven above all by a youthful desire to rebel against all that was outmoded, rigid and authoritarian. At times, they gained a momentum that took even the protagonists by surprise. Such was the case in Paris, which is still regarded as the most mythic near-revolutionary moment of that tumultuous year, but also in Mexico City, Berlin and Rome.

In these cases, what began as a relatively small and contained protest against a university administration – a protest by the young and impatient against the old and unbending – burgeoned into a mass movement against the government. In other countries – like Spain, where the Fascist General Franco was still in power, and Brazil, where a military dictatorship was in place – the protests were directed from the start against the state. In Warsaw and Prague, the freedom movements rose up briefly against the monolithic communist ideology of the USSR. And in America, capitalism was the ultimate enemy, and Vietnam the prime catalyst.

Those protests, along with revolutions in music, art, fashion, and mores truly changed the world. Could it be happening again? Have we really reached a tipping point?

I thought I’d just put up some links to the important events that have taken place today in the many ongoing protests. You can add your own links in the comments (if anyone else is still awake).

More below the fold….

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