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To: Bank Holding Company who wrote (241805)3/22/2010 6:51:55 PM
From: Broken_ClockRespond to of 306849
 
March 22, 2010

Don't Stop Now

On to the Unemployment Crisis

By CRAIG D. ROSE

Okay, health care is done, now a quick deep breath and on to a bigger crisis: how to get millions of Americans back to work.

The gross numbers alone are daunting:

- Nearly 15 million people flat out unemployed.

- Almost 9 million working part-time because they can’t find full-time work

Millions more marginally attached workers or so-called discouraged and not counted as unemployed.

The bottom line is that America needs more than 10 million jobs just to get back to where we were two years ago. That would be difficult enough if we had at least begun adding jobs. But the U.S. economy continues to lose jobs.

The problem is so deep that even those with jobs are affected. That’s because that vast army of the unemployed is depressing incomes for those who do have jobs, according the Bureau of Labor Statistics, which pegs the decline in income at 1 percent for year ending February.

If the unemployment is rightfully deemed a crisis, the future offers little prospect of relief.

This past week the Obama administration’s economic team, led by Treasury Secretary Timothy Geithner, told Congress it expects the economy to generate about 100,000 per month for the remainder of this year. That’s better than losing jobs but 100,000 jobs monthly is barely what’s needed to keep pace with new workers entering the job market.

In other words, 100,000 jobs monthly would hold lock things at the status quo.

Further ahead, Geithner and company predict the unemployment rate – now 9.7 percent nationally and 12.5 percent in California – will edge down to 8.9 percent by the close of 2011. I don’t think I’ll hold either my breath or the Champagne for that prospect.

What should make this all the more scary is that none of the plans being offered for dealing with unemployment even pretend to deal with the scope of the problem.

That jobs bill Obama signed giving small companies tax breaks for hiring the unemployed this past week?

It might result in about 200,000 hires, according to the W.E. Upjohn Institute. Don’t race for your calculator, I’ve done the math: If the HIRE Act works as advertised, it would generate about 2 percent of jobs we need.

To be sure, neither the Obama nor Congress characterized the jobs bill as anything but a small step. That that would be encouraging, if there were additional measures in the offing that make sense.

There aren’t.

Apply a sharp pencil to the host of job proposals on the table and it’s obvious that none has the breadth, depth or wherewithal to get millions of people back to work.

More credit for small businesses?

Help me out here: Why would small business expand when American incomes are falling and even the employed fear for their future?

The small business people I know are seeing sales fall and have no interest in expanding at this time. The demand for credit, in fact, has fallen in the recession.

Rather than a credit crunch, we have a debt crisis at nearly every level - personal, state, federal and financial. (Oh, that’s right; we took care of the debt problem on Wall Street. What a load off my mind.)

Think American innovation will bail us out?

Well, while the U.S. was inventing synthetic collateralized debt obligations (don’t ask, but as Counterpunch readers now we all own them since taxpayers bailed out AIG), China was blowing past us in the manufacture of wind turbines and photovoltaic panels.

Oh, our engineers can beat their engineers?

Maybe, but will our engineers work for $9,000 annually – that’s going rate for these technical workers in China. With a master’s degree, no less.

Think training will get America? We’ve all heard that one and it’s true that employment in certain technical niches has increased (though not for electrical engineers and computer programmers). But there’s no way these technical occupations can absorb the millions who need work.

And keep this in mind: This past week the top scientist at Advanced Materials, a Silicon Valley company which is the world’s largest supplier of equipment to make semiconductors and photovoltaic, said he was moving to China. According to the New York Times, “companies are concluding their researchers need to be close to factories and consumers.”

Factories – remember those? What we forgot as we watched a third of America’s manufacturing move abroad is that this sector employs more scientists and technical workers than any other.

There’s ample evidence that things would have been much worse without the stimulus package passed last year. Most estimates are that we’d have roughly two million fewer jobs now without that program.

But for those looking for a plausible plan to get back to a reasonable level of employment, there’s little on the table now but despair.

Of course, many with a deep-seated faith in the ability of the US economy to renew itself, to come up with the latest widget, and to generate jobs may believe the absence of serious programs for unemployment is a good thing. Government tinkering will only cause harm, they say. Let the free market reign.

Well, if you believe that one, AIG has got a deal for you: billions of dollars in synthetic collateralized debt obligations. And there are thousands of financial wizards who can tell you how they work.

What they can’t explain is how to get America back to work.

Craig D. Rose is a San Diego-based journalist who writes about energy and the economy.



To: Bank Holding Company who wrote (241805)3/22/2010 6:59:39 PM
From: Broken_ClockRead Replies (1) | Respond to of 306849
 
How's your compassion for Mexico doing?

Just a preview of the US in a decade o so.
----
March 22, 2010

Why the Death Toll in Juarez Will Continue to Rise

Obama's Bloody War in Mexico

By MIKE WHITNEY

Last Saturday, a US consulate employee and his pregnant wife were gunned down in their SUV in Ciudad Juarez while their seven month old baby watched from the backseat. Just minutes later, another consulate employee was killed at point-blank range in the northern part of the city. Both shootouts took place in broad daylight and were executed with precision, clearly the work of professionals.

The only thing that stands out about these incidents, is that two of the victims were American citizens. Otherwise, it's just "business as usual" in the murder capital of the western hemisphere. Juarez has been rocked by a wave of gangland-style killings for the last two years. The statistics are mind-boggling. 50 people were killed last weekend alone (four of the victims were beheaded) and there have been more than 500 homicides since the beginning of 2010. All told, more than 19,000 people have been killed since Mexican President Felipe Calderon took office in 2006. Juarez is presently the most dangerous place in the world, worse has Baghdad or Kabul.

* * *

The violence in Juarez is not accidental. It's the result of a deeply-flawed US/Mexico policy. The Merida Initiative, which was signed in 2007 by President George W. Bush and Calderon, has led to the militarization of law enforcement which has intensified the battle between the state and the drug cartels. Plan Mexico--as Merida is also called--has increased the incidents of gang-related crime and murder by many orders of magnitude. The military is uniquely unsuited for tasks that should be handled by criminal investigators or the police. That's why the death toll keeps rising. The bottom line, is that the troubles in Juarez have more to do with Plan Mexico than they do with drug-trafficking. This is "policy-driven" carnage and the United States is largely to blame.

Shortly after he took office in 2006, Calderon began using the military to battle Mexico's powerful narco-mafia. Since then, there's been a steady escalation in troop deployments and violence across the country. The Calderon strategy has been universally condemned except (of course) by US think-tank ideologues who applaud the bloodletting as proof of its success. Laura Carlsen, the director of the Americas Policy Program in Mexico City, was recently interviewed about Plan Mexico and asked whether the policy has changed under Barack Obama. Here's what she said:

“The Obama administration has supported Plan Mexico and even requested, and received from Congress, additional funds beyond what the Bush administration requested. In the three years since Calderon launched the war on drugs in Mexico with the support of the US government drug related violence has shot up to over 15,000 executions and formal reports of violations of human rights have increased sixfold.....Washington recognizes serious problems with the drug war model and yet continues to claim, absurdly, that the rise in violence in Mexico is a good sign--it means that the cartels are feeling the heat..

“Plan Mexico... grew out of the extension of NAFTA into security areas, known as the Security and Prosperity Partnership.... It was designed in Washington as a way to "push out the borders" of the US security perimeter, that is, that Mexico would take on US security priorities including policing its southern border and allowing US companies and agents into Mexico's intelligence and security operations."

NAFTA transformed Juarez into a manufacturing hub where assembly plants and electronics companies turned out all types of goods that were shipped to the United States tariff-free. In the last few years, however, corporations have exited Mexico en masse seeking cheaper labor costs in China. According to the Wall Street Journal: "Since 2005, 10,600 businesses—roughly 40 per cent of Juárez's businesses—have closed their doors, according to the country's group representing local chambers of commerce." Free trade has left Juarez in ruins which has only added to the current troubles.

Laura Carlsen again:

"The Bush administration used the counterterrorism paradigm to extend US presence in strategic areas. In Mexico, the idea was to open up lucrative defense and intelligence contracts while aiding the rightwing government, which still faced serious questions of legitimacy due to unresolved accusations of fraud in the 2006 elections."

Carlsen confirms that Plan Mexico is not so much about the fictitious war on drugs as it is about creating a business-friendly authoritarian regime that will crush any threat to state/corporate power. By throwing his support behind the current policy, Obama is merely picking up where his predecessor G.W. Bush left off.


Calderon has largely complied with whatever directives he's gotten from Washington. In practical terms, he's assumed the mantle of "provincial governor" charged with carrying out US security operations south of the border; a regular Mexican Karzai. And he has performed reasonably well too, which is to say that he's turned the country to a free-fire zone where anything-goes as long as the billions in US aid continues to roll in. A recent survey shows that more than half of the population now believes that Calderon has made the country more dangerous. In an interview with Democracy Now, author Charles Bowden describes what life is really like for the people who live in Juarez and have to adjust to the daily violence:

"This is in a city where people live in cardboard boxes sometimes. Ten thousand businesses have given up and closed in the last year. Thirty to sixty thousand people from Juárez, mainly the rich, have moved across the river to El Paso for safety, including the mayor of Juárez, who likes to bunk in El Paso. And the publisher of the newspaper there lives in El Paso. Somewhere between 100,000 and 400,000 people simply left the city. A lot of the problem is economic, not simply violence. At least 100,000 jobs in the border factories have vanished during this recession because of the competition from Asia. There’s 500 to 900 gangs there, estimates vary.

So what you have is about 10,000 federal troops and federal police agents all marauding. You have a city where no one goes out at night; where small businesses all pay extortion; where 20,000 cars were officially stolen last year; where 2,600-plus people were officially murdered last year; where nobody keeps track of the people who have been kidnapped and never come back; where nobody counts the people buried in secret burying grounds, and they, in an unseemly way, claw out of the earth from time to time. You’ve got a disaster. And you have a million people, too poor to leave, imprisoned in it. That’s the city."

The war in Juarez isn't about narcotics; it's about a foreign policy that supports proxy-armies to impose order through police-state repression and militarization. The media keep reiterating the same tedious refrain about the ongoing "drug war", but it's all baloney. The so-called war on drugs--like the war on terror--is merely the public relations mask which conceals the political agenda. Regional hegemony is the ostensible goal, and extreme violence is the cornerstone upon which the entire policy rests. Here's a clip from an article in the Independent which sums up the futility of the drug war and its corrosive effect on government institutions:

"The outlawing and criminalizing of drugs and consequent surge in prices has produced a bonanza for producers everywhere, from Kabul to Bogota, but, at the Mexican border, where an estimated $39,000m in narcotics enter the rich US market every year, a veritable tsunami of cash has been created. The narcotraficantes, or drug dealers, can buy the murder of many, and the loyalty of nearly everyone. They can acquire whatever weapons they need from the free market in firearms north of the border and bring them into Mexico with appropriate payment to any official who holds his hand out.

“And drug-related bribery is gnawing deep into US institutions, as Calderon has long alleged. Thomas Frost of the US Dept of Homeland Security says that last year the department accused 839 of its own agents of corruption.... the FBI ... dug up more than 400 public corruption cases that resulted in well over 100 arrests and more than 130 state and federal prosecutions...

The narcos have penetrated the US embassy in Mexico City (as they had previously the one in Colombia's capital, Bogota), their funds allowing them to siphon out a stream of intelligence about future operations against the narcos." ("The US-Mexico border: where the drugs war has soaked the ground blood red", Hugh O'Shaughnessy The Independent)

The real reason US powerbrokers want to militarize Mexico is to counter the leftist social movements which have sprouted up everywhere in Latin America. The administration wants to get a foot in the door so they can roll back the advances that have been made in health care, civil liberties, education, wealth redistribution and land reform. The US wants to quash the burgeoning unions, the indigenous communities, and pro-democracy groups which have taken root and replaced the kleptocratic regimes which were propped up by Washington. The Merida Initiative is an attempt to return to the dark days of oligarchy and torture, of death squads and "dirty wars". Clearly, Uncle Sam will not be easily deterred; it will take determined resistance from grassroots organizations and engaged citizens.

As for the faux "drug war" here's an extended excerpt from an article written by CounterPunch co-editors Cockburn & St Clair back in June, 1998, stemming from their book Whiteout:

"Amid the United Nations’ special session in New York on drugs, hundreds of prominent people from around the world signed on to the view that the drug war has been a disaster and “the time has come for a truly open and honest dialogue about future global drug control policies.

“The statements to which the signatories put their names are mostly unimpeachable common sense: ‘Drug war politics impede public health efforts to stem the spread of HIV, hepatitis and other infectious diseases. Human rights are violated, environmental assaults perpetrated and prisons inundated with hundreds of thousands of drug law violators.’

“All true, and every phrase repeated, proved and doubly proved year after year. So why does the drug war grind on, decade after decade, immune to reason, often grotesque in its hypocrisy?...

“The answer is plain enough, particularly if one takes a look at the history of drug wars over the past 150 years. These drug wars are either enterprises that expand the drug trade or pretexts for social and political repression. In either case, the aim of halting the production, shipment and consumption of drugs is not on the agenda.

“Domestically, the ‘drug war’ has always been a pretext for social control, going back to the racist application of drug laws against Chinese laborers in the recession of the 1870s when these workers were viewed as competition for the dwindling number of jobs available. ....

“President Nixon was helpfully explicit in his private remarks. H.R. Haldeman recorded in his diary a briefing by the president in 1969, prior to launching of the war on drugs: ‘Nixon emphasized that you have to face the fact the whole problem is really the blacks. The key is to devise a system that recognizes this while not appearing to.’

“So what was ‘the system’ duly devised? The 1986 Anti-Drug Abuse Act, with its 29 new minimum mandatory sentences, and the 100-to-1 sentencing ratio between possession of crack and powder cocaine, became a system for locking up a disproportionate number of black people.

“So to call for a ‘truly open and honest dialogue’ about drug policy, as all those distinguished signatories in the advertisement requested, is about as realistic as asking the U.S. government to nationalize the oil industry. Essentially, the drug war is a war on the poor and the dangerous classes, here and elsewhere. How many governments are going to give up on that?”

Obama knows that the war on drugs is a sham, but that won't stop him from committing billions more to Plan Mexico. In fact, it's already a done deal. What the administration wants is a "hemispheric security policy" which creates a hospitable environment for resource extraction and corporate exploitation. And, they don't care how many people get killed in the process. That's why the death toll in Juarez will to continue to rise.

Mike Whitney lives in Washington state. He can be reached at fergiewhitney@msn.com



To: Bank Holding Company who wrote (241805)3/22/2010 7:47:35 PM
From: Broken_ClockRead Replies (1) | Respond to of 306849
 
Chris Hedges' Columns
The Health Care Hindenburg Has Landed

Posted on Mar 22, 2010

AP / Charles Dharapak
Rep. Dennis Kucinich, D-Ohio, accompanies President Barack Obama as they arrive at Cleveland-Hopkins International Airport before the congressman decided to switch his vote and help pass a health care reform bill he had staunchly opposed.

By Chris Hedges

Rep. Dennis Kucinich’s decision to vote “yes” in Sunday’s House action on the health care bill, although he had sworn to oppose the legislation unless there was a public option, is a perfect example of why I would never be a politician. I respect Kucinich. As politicians go, he is about as good as they get, but he is still a politician. He has to run for office. He has to raise money. He has to placate the Democratic machine or risk retaliation and defeat. And so he signed on to a bill that will do nothing to ameliorate the suffering of many Americans, will force tens of millions of people to fork over a lot of money for a defective product and, in the end, will add to the ranks of our uninsured.

The claims made by the proponents of the bill are the usual deceptive corporate advertising. The bill will not expand coverage to 30 million uninsured, especially since government subsidies will not take effect until 2014. Families who cannot pay the high premiums, deductibles and co-payments, estimated to be between 15 and 18 percent of most family incomes, will have to default, increasing the number of uninsured. Insurance companies can unilaterally raise prices without ceilings or caps and monopolize local markets to shut out competitors. The $1.055 trillion spent over the next decade will add new layers of bureaucratic red tape to what is an unmanageable and ultimately unsustainable system.

The mendacity of the Democratic leadership in the face of this reality is staggering. Howard Dean, who is a doctor, said recently: “This is a vote about one thing: Are you for the insurance companies or are you for the American people?” Here is a man who once championed the public option and now has sold his soul. What is the point in supporting him or any of the other Democrats? How much more craven can they get?

Take a look at the health care debacle in Massachusetts, a model for what we will get nationwide. One in six people there who have the mandated insurance say they cannot afford care, and tens of thousands of people have been evicted from the state program because of budget cuts. The 45,000 Americans who die each year because they cannot afford coverage will not be saved under the federal legislation. Half of all personal bankruptcies will still be caused by an inability to pay astronomical medical bills. The only good news is that health care stocks and bonuses for the heads of these corporations are shooting upward. Chalk this up as yet another victory for our feudal overlords and a defeat for the serfs.

The U.S. spends twice as much as other industrialized nations on health care—$7,129 per capita—although 45.7 million Americans remain without health coverage and millions more are inadequately covered, meaning that if they get seriously ill they are not covered. Fourteen thousand Americans a day are now losing their health coverage. A report in the journal Health Affairs estimates that, if the system is left unchanged, one of every five dollars spent by Americans in 2017 will go to health coverage. Private insurance bureaucracy and paperwork consume 31 cents of every health care dollar. Streamlining payment through a single nonprofit payer would save more than $400 billion per year, enough, Physicians for a National Health Plan points out, to provide comprehensive, high-quality coverage for all Americans. Check out www.healthcare-now.org. It has some of the best analysis.


This bill is not about fiscal responsibility or the common good. The bill is about increasing corporate profit at taxpayer expense. It is the health care industry’s version of the Wall Street bailout. It lavishes hundreds of billions in government subsidies on insurance and drug companies. The some 3,000 health care lobbyists in Washington, whose dirty little hands are all over the bill, have once more betrayed the American people for money. The bill is another example of why change will never come from within the Democratic Party. The party is owned and managed by corporations. The five largest private health insurers and their trade group, America’s Health Insurance Plans, spent more than $6 million on lobbying in the first quarter of 2009. Pfizer, the world’s biggest drug maker, spent more than $9 million during the last quarter of 2008 and the first three months of 2009. The Washington Post reported that up to 30 members of Congress from both parties who hold key committee memberships have major investments in health care companies totaling between $11 million and $27 million. President Barack Obama’s director of health care policy, who will not discuss single payer as an option, has served on the boards of several health care corporations. And as salaries for most Americans have stagnated or declined during the past decade, health insurance profits have risen by 480 percent.
Obama and the congressional leadership have consciously shut out advocates of single payer from the debate. The press, including papers such as The New York Times, treats single payer as a fringe movement. The television networks rarely mention it. And yet between 45 and 60 percent of doctors favor single payer. Between 40 and 62 percent of the American people, including 80 percent of registered Democrats, want universal, single-payer not-for-profit health care for all Americans. The ability of the corporations to discredit and silence voices that represent at least half of the population is another sad testament to the power of our corporate state to frame all discussions.

Change will come only by building movements that stand in fierce and uncompromising opposition to the Democrats and the Republicans. If they can herd Kucinich and John Conyers, the sponsors of House Resolution 676, a bill that would create a publicly funded National Health Program by eliminating private health insurers, onto the House floor to vote for this corporate theft, what is the point in pretending there is any room left for us in the party? And why should we waste our time with gutless liberal groups such as Moveon.org, which felt the need to collect more than $1 million to pressure House Democrats who had voted “no” on the original bill to recant? What was this purportedly anti-war group doing anyway serving as an obsequious recruiting arm of the Obama election campaign? The longer we tie ourselves to the Democrats and these bankrupt liberal organizations the more ridiculous and impotent we appear.

“I’m ready to listen to the White House, if the White House is ready to listen to the concerns about putting a public option in this bill,” the old Kucinich said on the “Democracy Now!” radio and television program before he flipped. “I mean, they can do that. You know, they’re still cutting last-minute deals. Put the public option back in. Make it a robust public option. Give the people a chance to really negotiate rates with the insurance companies … from the standpoint of having a public option. But don’t just tell the people that you’re going to call this health care reform, when you’re giving insurance companies an even more powerful monopoly status in our economy.”