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To: koan who wrote (45540)6/10/2013 2:33:09 PM
From: Broken_Clock  Read Replies (1) | Respond to of 85487
 
JUNE 10, 2013

counterpunch.org

Another Sign of the Buckling Economy
The Collapse of the Hourly Wage
by MIKE WHITNEY
“If we care about building a fast growing economy that provides opportunity for every American, then we must enact policies that build it from the middle out, not the top down. Tax the wealthy and corporations–and invest that money in the middle class as we once did in this country. Those polices won’t just be great for the middle class, they’ll be great for the poor, for businesses large and small, and the rich.”

– Nick Hanauer, “ A 1 percenter tells the truth about “job creators”, Hullabaloo

U.S. workers are getting squeezed like never before. Hourly pay for nonfarm workers (you and me) fell at an annual rate of 3.8 percent in the first three months of the year. This represents the biggest decline in wages on record. Factory workers took an even bigger hit. They saw their wages plunge by nearly 7 percent in the same period. These grim figures were released last week by the Bureau of Labor Statistics (BLS) in their quarterly Productivity and Costs Report. The report was ignored by virtually all the mainstream media, and for good reason, it shows that the recovery is largely a mirage created by tub-thumping media pundits and their miscreant corporate bosses.

Last week’s news on wages was followed by even bleaker data on US manufacturing (which dipped into contraction in May) and a tepid unemployment report where nearly all of the jobs created were execrable part-time, low-paying service sector positions that provide neither benefits, pensions, health care nor sufficient income to feed and clothe oneself. Wall Street reacted to the wretched job’s report in predictable fashion, by buying up everything that wasn’t bolted to the floor of the NYSE. The Dow Jones ended Friday up 207 points while the S&P and the NASDAQ catapulted higher.

Falling wages, lackluster hiring and a slowdown in manufacturing have to be seen in the broader context of record-high corporate profits, ever-widening inequality, and steadily-shrinking budget deficits. Corporate earnings have consistently beat estimates despite weaker revenues mainly because cost cutting CEOs have trimmed their workforce wherever possible and slashed expenses to the bone. Meanwhile, all the gains from increased productivity have gone to management, which means labor no longer has sufficient income to sustain demand. (See charts here)

So, while US workers are busy mopping tables at Denny’s or cleaning bedpans at the local retirement center for minimum wage, US companies are rolling in clover. Take a look at this from the Wall Street Journal:

”American companies are keeping a record cash pile. U.S. nonfinancial corporations held $1.78 trillion in cash and other liquid assets in the first quarter of the year, up $46 billion from the end of 2012, the Federal Reserve said on Thursday.” (“ Vital Signs Chart: Companies Holding Record Cash Pile“, Wall Street Journal)

US corporations have so much money they don’t know what to do with it. But they know what they DON’T want to do with it. They don’t want to invest in a sinking economy where demand is weak, unemployment is high, and 47 million people are scraping by on food stamps. Oh no, they don’t want that at all. They don’t want to recycle their hard-earned lucre into Obama’s black hole economy when they can double or triple their dough via stock buybacks. The beauty of buybacks is that they goose share prices higher while adding absolutely zilch to production. Swapping paper assets is just another way for the uber-rich to skim more cream off the top. Check this out from Trader Magazine:

“Companies authorize buybacks and carry them out from time to time through brokerages as a way to reduce outstanding stock and increase per-share earnings. U.S. firms have announced about $275 billion of repurchases this quarter, the highest total in more than five years, Jeffrey Kleintop, chief market strategist at LPL Financial Holdings Inc. (LPLA), wrote in a report this week.” ( “Goldman Sachs Buyback Orders Reach Highest Level of Year“, Traders Magazine)

The rich are getting richer, but none of the wealth is trickling down to the wage slaves below. In fact, things are getting worse for working people all the time. Did you know that wages, as a share of gross domestic product GDP are at a record low? In the booming ’70's, wages accounted for more than 50 percent of GDP. Now that figure has dwindled to less than 44 percent and is on track to drop even further. Of course, everyone knows why wages are flatlining. It’s because all the money is flowing upwards to the Scotch-guzzling bankers and their shifty plutocrat friends. As U.C. Berkeley economics professor Emmanuel Saez discovered in his research on inequality, 65 percent of the country’s income growth between 2002 to 2007 went to the top 1 percent of households.

Surprisingly, it’s gotten worse since the recession ended. According to the Pew Research Center the top 7 percent of US households increased their wealth by 28 percent from 2009 to 2011, while the bottom 93 percent saw their wealth slashed by 4 percent. So, while the moneybags 1 percenters at the top of the fiscal foodchain have recouped all their losses from the financial crisis, (thanks to QE3) working people are still facing the same problems they’ve faced for the last 5 years; droopy paychecks, soaring unemployment, and government cutbacks that suck the life’s-blood out of the economy. All of these are going to get worse as the sequester tightens its grip in the second half of 2013. This is from the New York Times:

“In the last three months, the federal work force has shrunk by about 45,000 positions, including 14,000 in May alone. In part, that is because federal offices have gone on hiring freezes and taken other steps to wrench down their spending.

Tens of thousands of federal workers are also seeing their hours cut through mandatory furloughs and bans on overtime. …expect those furloughs to take a significant bite out of income and consumer spending. Come July, for instance, the Pentagon is going to start to furlough 680,000 civilian workers – out of about 800,000 total – for up to 11 days each.

Sequestration is having an impact on private businesses as well, even if it is harder to see given the way the recovery continues to chug along. Millions of their customers have less money to spend.” (“ The Sequester Starts to Show”, New York Times)

Still think the sequester’s not going bite?

Think again. Falling wages are the unavoidable result of government deficit reduction policy which keeps unemployment needlessly high. The administration’s obsession with budget cutting has pushed wages below 2012-levels when worker pay grew by a measly 1.9 percent year-over-year barely keeping pace with the rate of inflation.

While the sequester accounts for less than 50,000 lost jobs (so far), the sum is much higher when one adds the 750,000 public sector jobs (mostly state and local) that were cut during the recession. Had Obama provided desperately needed fiscal aid to the states during the worst part of the slump, most of these jobs could have been saved which would have boosted tax revenues, increased activity, and turbo-charged GDP. Instead, Obama chose to follow the advice of his nincompoop deficit hawk advisors who see high unemployment as an opportunity to crush organized labor and reduce living standards across the board. Here’s more from Andre Damon at the World Socialist Web Site:

“Since June 2009, the public sector as a whole has eliminated 737,000 jobs, nearly half of which have been in state and local education.

The millions of people who remain out of work are having any remaining government assistance taken away from them. Two million people had their unemployment benefits cut back by up to 20 percent due to the “sequester” budget cuts. Many have been cut from rolls altogether as a result of cuts in states throughout the country.

The U-6 unemployment rate, which includes those working part-time for economic reasons, remained essentially unchanged at 13.8 percent, meaning that 22 million people in the US are either unemployed or underemployed…..

The May jobs report points to the fact that there has been no economic recovery for working people in the United States: millions remain unemployed, and millions more have left the labor force because no jobs are available. Wages, which have plunged in real terms since 2008, remain stagnant, while government assistance for the poor and unemployed is being slashed.” (“ Anemic US jobs report points to ongoing slump”,World Socialist Web Site)

The weakest recovery in US history is about to get weaker still. According to the CBO, fiscal deficits will drop 1.4 percent per year for the next three years, which means that GDP will sputter-along at a pathetic 1 percent during that same timeframe. Less fiscal stimulus, means higher unemployment, sluggish growth, and more grinding hardship for working stiffs.

Obama is implementing the Reagan’s “strangle the beast” agenda, albeit with greater skill and eloquence than his mentor



To: koan who wrote (45540)6/10/2013 3:09:15 PM
From: Sdgla  Read Replies (1) | Respond to of 85487
 
I can see how you have issues with the truth koan...
There is no full proof formula for what is right and wrong
Might be your parents did not teach you how to tell right from wrong but, as an adult, that really shouldn't be an issue.



To: koan who wrote (45540)6/10/2013 5:05:04 PM
From: Broken_Clock  Read Replies (1) | Respond to of 85487
 
JUNE 10, 2013

Washington Stinks
Living in an Era of Unprecedented Bullshit
by DAVE LINDORFF
Many years ago, back in 1975 when Gerald Ford was the nation’s default president, I spent a summer living in the home of two Minneapolis friends, both important anti-war academics, who had two young children. One of their kids, Jacob, who was about seven at the time and smart as a whip, had been given the gift of a can of compressed air which carried a label claiming it contained a miracle product called “Bullshit Repellent.” Whenever someone in the house — family member, me, or some other guest — would say something ridiculous, stupid or false, someone would inevitably yell out, “Jacob, get the Bullshit Repellent!” Jacob would come running in enthusiastically with the can and would spray it proudly at whoever was uttering the BS.

I sure wish I had Jacob and his spray can right now. I simply cannot believe the BS being spouted by President Obama, National Security Agency Director James Clapper, or the members of Congress who should be demanding their heads for the unprecedented surveillance and spying on all Americans that has just been exposed.

Let’s begin at the top: Our president (who once boasted of having taught Constitutional law), decried, way back in 2007 when he was contemplating a run for the White House, what he correctly labeled the Bush-Cheney administration’s “false choice between the liberties we cherish and the security we provide.” Fast forward to the president today, after his all-encompassing monitoring of all the phone and internet communications of all Americans, and here’s what he’s saying now (speaking last Friday in San Jose) after the humongous pervasiveness and intrusiveness of the spying was exposed in the U.KGuardian newspaper and the Washington Post:

“I think it’s important for everybody to understand … that there are some trade-off’s involved. You can’t have 100 percent security and also then have 100 percent privacy and zero inconvenience. You know, we’re going to have to make some choices as a society.”

Jacob, quick! The bullshit repellent!

Where to start? A security-for-liberty trade-off, he says? Where’s the security? We just had a bombing in Boston that would have been spotted in a minute if the FBI were monitoring the Tsarnaev brothers‘ websites (assuming they are the guilty parties). But the FBI claims it “stopped” monitoring Tamerlan Tsarnaev after interviewing him several times, and “closed” his case, despite his having travelled to Dagestan, a former Soviet struggling with separatist Islamic rebels, and despite warnings from Russian intelligence. This is the kind of “100 percent security” we get in return for handing over 100% of our privacy on the phone and online? What incredible BS!

And about that need to make choices? The president says he “welcomes a debate” on those choices, but how are we supposed to do that if the entire surveillance program, not to mention the snatching of the records of journalists at Fox News and the Associated Press, is all done in secret? It’s like a waiter stealing the menus from your table and then asking you what you’d like to order. We only know about the massive spying program aimed at us because of whistleblowers, like the heroic Edward Snowde, who, their disgust and patriotism overcoming their fear of jail, alerted the Guardian’s Glenn Greenwald and the Post. And far from welcoming the resulting “conversation” we’re now having about “choices,” opened up by those disclosures, we learn that the Obama “Justice” Department (the same one that ordered the secret monitoring of 100 of the phone lines of AP reporters), is about to launch a criminal investigation into the leaks.



At the risk of having the Secret Service sicced on me, once the NSA’s PRISM monitors read what I’m typing here, I sure wish I had Jacob’s spray can so I could shoot a blast of it at the president.

Then there’s Clapper. On Saturday, this surveillance Svengali released a “fact sheet” on PRISM. He claimed that the program is not just a sweep of data. Rather, he said it was “overseen by all three branches of government.” And for good measure he added, undermining the claims of the industry, that “The United States government does not unilaterally obtain information from the servers of U.S. electronic communication service providers.” He also tried to reassure people that the program only targets “foreign” communications.

Jacob! I need you again with your bullshit repellent!

What BS! The NSA’as data sweep is almost total. That’s precisely why the agency built its huge top-secret National Cybersecurity Initiative Data Center in Utah. If they were just targeting alleged terrorism suspects with their PRISM program, they could handle all the data with a single laptop computer. Instead they have what is the largest assemblage of supercomputers in the world, designed to store and go through data measured in a term I never heard before — yottabytes — which means a trillion terabytes or, if you prefer, a trillion trillion, or a quadrillion gigabytes. Gigabytes, by the way, are how we measure the memory storage capacity of our personal computers — the ones that Clapper and his spook minions are monitoring, apparently even as we type on their keyboards. As for that bit about PRISM just targeting foreign communications, given the borderless nature of the Internet, that claim is absurd on its face, and it is clearly just more BS intended to mislead us.

But it ain’t just the White House, the Justice Department and the NSA that are spouting BS.

How about Sen. Dianne Feinstein (D-CA), the top Democrat on the Senate Intelligence Committee that is supposed to oversee the nation’s intelligence agencies, including the super-secret NSA? She seems to have no problem with all this epic spying on the nation’s citizens. Last Thursday, when the Guardian’s story broke about the NSA’s monitoring of all the communications of Verizon customers (a revelation that would quickly prove to be just the tip of a very huge surveillance iceberg), Feinstein noted that the activity had been approved by the super secret Foreign Intelligence Surveillance (FISA) Court, and said, “As far as I know, this is an exact three-month renewal of what has been the case for the past seven years. Therefore it is lawful. It has been briefed to Congress.” Apparently, any godawful thing can be done to us and the Constitution in today’s America by the Executive branch, as long as it secretly “briefs” the useless dregs we send to Congress, who are required to keep it secret from us.

Jacob! We need you again!

If this is oversight, I think it is in the other meaning of that word. Actually, it was two years ago, back in 2011, that Sen. Ron Wyden (D-OR) publicly warned Americans about the spying, but said he could not reveal the details as he was sworn to secrecy. As he put it, “I want to deliver a warning this afternoon: when the American people find out how their government has secretly interpreted the Patriot Act, they will be stunned and they will be angry.” A colleague, Sen. Mark Udall (D-CO), backed him, saying, “Americans would be alarmed if they knew how this law is being carried out.”

The two men claimed they could not provide any details of what was going on because, as members of the Senate Intelligence Committee, they were sworn to protect secrets the government reveals to them. But that’s pure BS. As Senators, they and the rest of the 98 men and women in that chamber, as well as the 435 others in the House, are bound by a much higher oath of office, in which they vowed to uphold and defend the Constitution. And if the Bill of Rights means anything, this surveillance violates that document egregiously.

Jacob, where are you! Hurry and bring your spray can!

Now the White House, the NSA and backers of the spying in Congress like Sen. Lindsay Graham (R-SC) and Senate Majority Leader Harry Reid (D-NV) are citing a couple of alleged terror plots that they claim this huge national and international electronic spying campaign prevented from happening. This shameless attempt to get frightened people to accept the end to privacy in communications is all pure bullshit, though. Sens. Wyden and Udall, who ought to know, given their positions on the Senate Intelligence Committee, are not buying it. “As far as we can see, all the useful information that it has provided appears to have also been available through other collection methods that do not violate the privacy of law-abiding Americans,” they both say. And that’s not bullshit!

So we may need more than one can of Jacob’s miracle spray for all this BS. We may in fact need truckloads of the stuff.

That would include needing to spray some at the executives of the telecom and internet firms that are now claiming, rather incredibly, that they didn’t know any of this. Last Thursday, Google, Facebook and Apple were issuing denials (quickly contradicted by NSA director Clapper) saying they had “no knowledge” about the spying program. Google issued a statement piously saying, “Google cares deeply about the security of our users’ data.” An Apple spokesman said, “We have never heard of PRISM. We do not provide any government agency with direct access to our servers, and any government agency requesting customer data must get a court order.”

More BS of course. It’s all in how you word your denial, right? Google and Apple may never have heard the code name PRISM, but they sure knew their customer data was being systematically mined and analyzed by the NSA. And while maybe these companies, and Microsoft and AOL and the rest of them, do usually require a court order for a specific request for data on a particular customer, they have been happily complying with a FISA court permit to let the NSA mine and review all their customer data wholesale for years. None of the companies has appealed the FISA orders, which they could have done either individually or collectively.

We are living in an era of unprecedented Washington BS. The odor at this point is beyond what it was when Tricky Dick Nixon was president, denying that he was a criminal and denying that he knew anything about the Watergate break-in of Democratic Party headquarters. If the place stunk like an uncleaned stable back then, today it stinks like a mid-western cattle feedlot, and trust me, you don’t even want to visit one of them without a gas mask.

I’m not sure even my now grown young friend Jacob’s bullshit repellent can clear the air.

DAVE LINDORFF is a founding member of ThisCantBeHappening!, an online newspaper collective, and is a contributor to Hopeless: Barack Obama and the Politics of Illusion (AK Press).

http://www.counterpunch.org/2013/06/10/living-in-an-era-of-unprecedented-bullshit/



To: koan who wrote (45540)6/10/2013 6:37:54 PM
From: Brumar89  Read Replies (1) | Respond to of 85487
 
If there's no formula for saying what is right and wrong, you have no reason to say racism or gay bashing is wrong.

Clearly you don't believe what you said about right and wrong.



To: koan who wrote (45540)6/11/2013 12:52:14 PM
From: Broken_Clock  Respond to of 85487
 
ST. PAUL (WCCO) — US Sen. Al Franken, D-Minn., says he’s not surprised by revelations that federal security agencies collect phone and computer data on American citizens.

The National Security Agency secretly gathered personal data on Americans since 2007, including their internet use and cell phone service. It’s something Franken says he “was very well aware of.”

“I can assure you, this is not about spying on the American people,” Franken said.

Franken, who sits on the Senate Judiciary Committee, says he got secret security briefings on the program and he says it prevented unspecified terrorist acts.

“I have a high level of confidence that this is used to protect us and I know that it has been successful in preventing terrorism,” Franken said.