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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?


To: koan who wrote (784755)5/14/2014 1:27:08 PM
From: Broken_Clock  Read Replies (2) | Respond to of 1572359
 
Go ahead and answer the question koan. Quit dodging.
++++++++

To: koan who wrote ( 784674)5/13/2014 5:17:02 PM
From: Broken_Clockof 784748
How does Condoleeza's sell out compare to Dems today that voted in Barrack twice even after he stuffed his staff with Bush and Clinton warmonger wall st. stooges?



To: koan who wrote (784755)5/14/2014 1:43:10 PM
From: Broken_Clock  Read Replies (1) | Respond to of 1572359
 
koan
Are these crooks Republicans or Democrats?

a simple yes or no.

++++

https://portside.org/2014-05-05/hedge-fund-ate-chicago
The Hedge Fund That Ate Chicago

Why does a millionaire mayor and a billionaire hedge fund CEO team up to attack public pensions? Because that's where the money is.

Les Leopold

Alternet

May 5, 2014


Carol Simpson

There's a battle royale raging in Chicago. It pits hedge funds, the Chicago financial exchanges, real estate interests and Mayor Rahm Emanuel on the one side, against public employee unions and community groups on the other.

At issue is whether public employee pension benefits should be slashed. Mayor Emanuel claims that, "If we make no reforms at all across our pension funds, we would have to raise City property taxes by 150%.... Businesses and families would flee, not just from our city but from our state." By 2017, he claims the city will have to pay $2.4 billion a year into the pension fund.

The public employee unions and community activists contend that city's fiscal problems could be solved easily through a small sales tax on financial trades on the Chicago Mercantile Exchange and the Chicago Board Options Exchange.

The outcome may determine the health and well-being of pension funds as well as public services all across the country.

Wall Street buys a Mayor?

When Rahm Emanuel worked as a presidential assistant in the Clinton administration, he earned $118,000 a year. After he left his White House job in 1998, he got a raise, making over $18 millionin the next two and a half years working for the "boutique" investment banking firm of Wasserstein Perella. Emanuel had no previous banking experience.

Ken Griffin, the CEO of the Chicago-based Citadel hedge fund and "his wife Anne Dias Griffin, donated more than $200,000 to Mayor Emanuel’s campaign for Mayor in 2011," report David Sirota and Ben Joravsky in Pandodaily. "Griffin describes the mayor as his 'good friend'. Other Citadel employees have donated about $178,000 to Emanuel’s campaign."

The 45-year-old Griffin's income for 2013 was $900 million (or about $492,632 an hour).

Apparently a good deal of his income comes from high-frequency trading (see my summary) that runs through the two Chicago financial exchanges. "His Citadel LLC returned more than 300 percent in a fund started as a high-frequency strategy," according to Bloomberg News.

Griffin, alone, could fund all of Chicago's pension liabilities for the current year (estimated at $692 million) and still have $208 million left to scrap by on. Yet Griffin is terribly worried that the mayor is being too soft on retirees. He "castigated Chicago and Illinois politicians for not making 'tough choices,' blaming Democrats who control city, county and state government for not fixing pension, education and crime problems," reports Crain's.

Mayor's Payback?

"On March 5," report Sirota and Joravsky, "Chicago’s city council overwhelmingly voted to approve Mayor Rahm Emanuel’s proposal to divert $55 million of taxpayer resources into a new privately run hotel in the city’s south loop." The Marriot was selected to run "one of America’s largest hotels next to America’s largest convention center—and doing so with massive taxpayer subsidies, but without having to pay to construct the hotel and without having to pay property taxes."

As luck would have it, Griffin is likely to make a great deal of money on this deal: "In the months before the development deal was announced, Griffin’s hedge fund was buying up large blocs of Marriott stock." What a coincidence!

Why Does a Millionaire Mayor and a Billionaire Hedge Fund CEO Team Up to Attack Public Pensions?

Because that's where the money is, and lots of it. Mayors and governors want to reduce pension fund contributions so that they can continue to lavish tax breaks and subsidies on their corporate patrons and still balance their budgets. In Chicago, the yearly cost of those corporate tax subsidies is already higher than the yearly costs of Chicago's pension fund outlays, according to an analysis by Goods Jobs First.

Hedge funds and other financial firms join the attack, and perhaps instigate it in the first place, because they want the lucrative business of advising and investing all those pension dollars. In New Jersey, Governor Christie's administration awarded a $300 million pension management contract to a controversial hedge fund thatalso is major contributor to Christie's re-election campaign.

The Wall Street-trained treasurer of Rhode Island, Gina Raimondo, rammed through severe cuts to public pension funds, while her hedge fund allies lined up at the trough. As Matt Taibbi reports, Rhode Island's "strategy for saving money involved handing more than $1 billion—14 percent of the state fund—to hedge funds, including a trio of well-known New York-based funds: Dan Loeb's Third Point Capital was given $66 million, Ken Garschina's Mason Capital got $64 million and $70 million went to Paul Singer's Elliott Management."

The amazing irony is there would be no talk of a pension "crisis" at all were it not for the fact that Wall Street crashed the economy. The hedge funds that covet pension fund reform and pension fund contracts were full partners in the reckless gambling spree that took down the economy and destroyed 8 million jobs in a matter of months. As economist Dean Baker shows the pension shortfall is primarily the result of the 2007-'08 crash in the financial markets. "If pension funds had earned returns just equal to the interest rate on 30-year Treasury bonds in the three years since 2007, their assets would be more than $850 billion greater than they are today."

The lesson learned should be this: If you use hedge funds to run your pension funds, you'll get fleeced come the next crisis.

Why Are the Financialists Getting Away With It?

Rahm Emanuel, Chris Christie and hundreds of other politicians are able to attack public pension funds with impunity because defined benefit pensions in the private sector are an endangered species. One demagogic question is all they need to ask and they ask it again and again:

"Why should you pay taxes for public employee benefits that you don't have?"

Such an attack only works because Wall Street already has systematically destroyed private sector defined benefit pension funds—which are funds that provide retirees with a set payment for life (and sometimes beyond for spouses). Employers can reduce their costs by switching from defined benefit pensions to defined contribution 401ks. Better yet they might be able to eliminate the employer contributions altogether. Employees usually benefit more from defined benefit pensions and are very reluctant to see them altered. (For more about defined pension funds see here.)

As the chart below demonstrates less than 15 percent of private sector employees now have defined benefit pension programs, down from nearly 40% in 1979. Meanwhile, 401ks have grown from 16% to over 42%. This didn't happen by accident.

Wall Street Strip-Mines Private Pension Funds

Defined pension funds are disappearing for two overlapping reasons. The first is that unions, the main driver of defined-benefit pensions, are in decline. Today, union's represent less than 7 percent of the private sector workforce, down from 35% in 1955. But that's only part of the story.

The most crucial cause is the deregulation of the financial sector which started in the late 1970s. Once freed from their New Deal shackles, corporate raiders (now called private equity firms, hedge funds and investment firms) strip-mined thousands of corporations using borrowed money. Those debts were (and still are) placed on the books of the target company and its cash flow is used to pay the interest on the debts as well as pay huge sums to the raiders, their investment advisors, their bankers, and the compliant top managers of the target company.

How does the target firm pay for all these new costs? The raiders, of course, claim that through their own entrepreneurial genius, they "unlock" hidden value. In reality, they milk the company in every way imaginable. They sell off product lines, shut down facilities, move work off-shore, slash R&D, and raid the pension fund, claiming it was "overfunded." Often the target company also tries to discontinue the pensions entirely or shift to 401ks forcing the employees to kick in most of the money. Many corporations become so loaded up with debt that they go into bankruptcy, through which they can further whittle away employee benefits and reduce or discontinue pensions.

As the financial strip-mining proceeds through thousands upon thousands of corporations, the average worker loses his or her benefits, and the financial strip-miners become filthy rich. As the chart below shows, in 1970 the top 100 CEO earned $45 for each $1 earned by the average worker. By 2006, the ratio jumped to 1,723 to one.

A Tax on Financial Strip Mining?

The financial transaction tax (sometimes called a financial speculation tax or Robin Hood Tax) is designed to retrieve some of the money that is being siphoned away from our wages, benefits and tax dollars. Because the super-rich, their hedge funds and their corporations have a myriad of ways to avoid income taxes, especially by shifting money offshore, the financial transaction tax hits them where they live—buying and selling financial assets on the markets, especially on the Chicago exchanges where derivatives and futures contracts are sold.

It is estimated that a minuscule tax ($1 dollar on both the buyer and on the seller of future contracts, and $2 on derivatives contracts) would generate $12 billion a year for Illinois. That would be $9.6 billion more than $2.4 billion pension shortfall Mayor Emanuel claims Chicago will face in 2017. That still leaves more than enough money to dramatically improve education and even make higher education tuition free in Illinois (thereby cutting into Wall Street's predatory student loan business).

While such a tax could easily fulfill the promises made to public employees, it might also be prudent and just to use some of the financial tax to create a statewide defined benefit pension fund for private sector as well as public employees. That should put an end to the divide-and-conquer tactics opportunistic politicians and their hedge fund cronies use to enrich themselves and their political ambitions.

Can the financial transaction tax become reality?

Let's take heart from what Rahm Emanuel infamously said when serving as President Obama's chief of staff at the height of the financial crisis:

"You never let a serious crisis go to waste. And what I mean by that it's an opportunity to do things you think you could not do before."

Les Leopold is the director of the Labor Institute. His most recent book is " How to Make a Million Dollars an Hour: Why Hedge Funds Get Away with Siphoning of America's Wealth (Wiley, 2013)." His next book project will focus on why the richest country on earth is so poor.



To: koan who wrote (784755)5/14/2014 3:42:41 PM
From: Broken_Clock  Respond to of 1572359
 
Is Obama a D or an R? Why is his staff filled with Clinton and Bush retreads? W



To: koan who wrote (784755)5/14/2014 3:43:37 PM
From: Broken_Clock  Respond to of 1572359
 
Amazing. Bill Gates and Rahm in bed with the Koch Brothers.

+++

An Interview With Mercedes K. Schneider
Bill Gates and the Push to Privatize Public Education
by SETH SANDRONSKY
Mercedes K. Schneider holds degrees in secondary education (English and German), guidance and counseling, and applied statistics and research methods. She is finishing her 19th full-time year of teaching, 14 of which have been as a certified teacher in the traditional public school classroom. Schneider lives in her native southern Louisiana and blogs on education issues at deutsch29.wordpress.com. Information Age Publishing just released Schneider’s first book, A Chronicle of Echoes: Who’s Who in the Implosion of American Public Education, which is climbing in popularity on Amazon. Her book unpacks the whys and wherefores of the groups and people propelling the corporate assault on the nation’s public K-12 schools. She and I conducted this interview via email.

Seth Sandronsky: Talk about who you are and the actors (family influences) and factors (class interests) that produced Mercedes K. Schneider today.

Mercedes K. Schneider: One major influence on my development was my father. He thought I was smart and strong, and he told people so in front of me. He also enjoyed conversing with me about history and politics (he served in World War II under Army General George Patton). He died when I was only 12 (today happens to be the 34th anniversary of his funeral), but his influence on me during my formative years was undeniable. He allowed me to work part time at an early age (11 years). He also allowed me to pursue my varied interests despite their unusualness. For example, I had a Honda CT 70 minibike, and I remember sitting on our patio cleaning the carburetor as he watched. I also rebuilt bicycles and sold them and repaired appliances. He was clearly proud of me.

Another major influence was my teachers. I am a product of public schools and state universities. So many of my teachers took obvious pleasure in my abilities. I am able to function well in both math and English. I did not know until I was an adult that functioning well in both is unusual.

SS: In A Chronicle of Echoes: Who’s Who in the Implosion of American Public Education, you investigate and reveal the corporate actors and factors driving school reform: “The primary motivation behind this destruction is greed.” How does that motive work in politics?

MKS: One of the best examples of greed driving the political process is the American Legislative Exchange Council (ALEC). Corporations pay thousands of dollars annually to belong to ALEC, but legislators pay $100. Legislators are then “scholarshipped” to attend conventions that second as appealing vacations.

ALEC’s corporate members foot the bill in exchange for legislators’ taking corporate-benefiting “model legislation”—including education legislation—back to their districts. All are happy: ALEC’s corporate members increase profits via legislation designed to protect the profit motive; legislators receive”perks” such as nice vacations called “conventions” and they get to take credit for the model legislation. Thus begins a cycle of corporations and legislators “helping” each other to serve their own selfish purposes in a twisted mockery of democracy.

SS: Describe your awakening to the perils of K-12 public school reform.

MKS: In October 2011, my principal was concerned about the upcoming state board of education (BESE) elections. A number of candidates were in favor of “reforms” such as teacher evaluations based upon student test scores and charter takeover of schools deemed “failing” based upon an imposed school letter grade system. My principal told me that if the “reform” candidates gained a majority in on the state education board, we (public education) were in trouble. I remember his words sinking in.

In my Chiefs for Change chapter, I write about Florida GOP Gov. Jeb Bush’s role in influencing the 2011 BESE elections. The out-of-state money bought the election: thenation.com

SS: The Chicago Teachers Union and city residents fought back against top-down reform in 2011. What is the response of the reformers?

MKS: The “reformers”—chiefly the one wielding the control (the goal of corporate reform is to centralize control, preferably in a single individual) is the mayor, Rahm Emanuel. His “response” was to close 49 public schools and later open 7 new charters, which, according to the Chicago Tribune, keeps the number of charters opening “on schedule”: articles.chicagotribune.com

Thus, conversion of Chicago Public Schools into a privatized system continued.

SS: Organized labor has been on the receiving end of a one-sided upper class attack for decades. What is the leadership of national teacher unions (not) doing to resist this trend?

MKS: The leadership of both national unions, the National Education Association (NEA) and American Federation of Teachers (AFT), have bought into the corporate reform “experiment.” Thus, those attacking the national unions really haven’t done their homework. Both AFT and NEA are attempting to pull their memberships in the direction of corporate reform. No issue illustrates this better than the diehard allegiance of both AFT and NEA to the Common Core State Standards (CCSS). Both AFT and NEA have accepted millions from noted CCSS funder, billionaire Bill Gates, to develop “CCSS-aligned” lessons (NEA) and “work on CCSS” (AFT).

Both AFT and NEA have locals that are also a members of the group, Teachers Union Reform Network (TURN), a group that states the following as its goal:

TURN’s intended goal is to explore, develop, and demonstrate models that lead to the restructuring of unions so that they will become more responsive and responsible in organizing around projects designed to improve student learning.

Gates supports the “reform” of unions. He has paid $3.5 million to TURN under the heading, Consortium for Educational Change

Gates calls this “advancing teaching and learning through labor-management collaboration.”

Keep in mind that Gates approaches organizations that he views will follow his wishes and offers them his money.

In sum, the “one sided attacks” on both national teachers unions is idiocy on the part of the “upper class”– those chiefly promoting education privatization.

What are the national unions doing? Taking the corporate reform money and carrying out the privatization bidding. The actions of both national union presidents read more like privatizing reformer actions than union president actions.

SS: Filmmaker M. Night Shyamalan and Michelle Rhee, past chancellor of public schools in DC, and current head of the advocacy group StudentsFirst, are joining forces to advance the case for reforming U.S. public education. Talk about the role of the media and public school reform.

MKS: In my book, A Chronicle of Echoes, I wrote two chapters on Michelle Rhee and her so-called “reforms.” She “taught” for one year unassisted, and according to her test score expectations as DC Chancellor, she would have had to fire herself. Then there is the suspicious “investigation” into the DC test erasures also detailed in my book.

Corporate reform wields power via the billions in corporate and “philanthropic” money at its disposal. Media is dependent upon those billions; as such, the message promoted in the mainstream media is often a pro-privatization message. The exploding popularity of social media as a means to communicate the reality of the failure of data-driven “reform” attests to the failure of the mainstream media to ethically rise to the occasion.

When it comes to ticket sales of Rhee-promoted “parent trigger” film, Won’t Back Down, however, America told Rhee what it thought of parent takeover of a “failing” school: B ox Office Mojo ranked the movie as having the worst opening since 1982 out of movies that saturated 2,500-plus theaters.

Rhee’s StudentsFirst still tried to push the movie onto lawmakers by enticing them with beer and food. No go.

SS: The Common Core State Standards (CCSS) are sweeping the nation. Explain what the CCSS are, and the motives of the people and groups pushing them.

MKS: Though I have one chapter on CCSS “lead architect” David Coleman in A Chronicle of Echoes, I plan to write a book on CCSS this summer. The CCSS “arrangement” is quite the deep well. However, allow me to offer a very abbreviated explanation here.

It seems that 46 (likely 45 states and DC) governors and state education superintendents signed a memorandum of understanding (MOU) for CCSS in 2009. So, to say that CCSS is now “sweeping the nation” implies a current decision to adopt. What is “sweeping the nation” now is the awareness that CCSS is an ill-fitting, inflexible trap that was chosen for each of 46 states by two individuals in 2009, before there was even a federal Race to the Top (RTTT, part of the American Recovery and Reinvestment Act of 2009) to tie CCSS to, and before CCSS was even created.

In short, what is happening now is that the American education stakeholders (teachers, parents) are realizing that they have been had, that those couple of privileged, powerful individuals whose lives are not directly touched by the public school classroom have signed away those classrooms for the sake of sameness, of standardization—and of the possibility of federal money.

CCSS is an unprecedented experiment. Bill Gates, the man who has pumped at least $2.3 billion into CCSS (Georgia State University Professor Jack Hassard’s calculation) has admitted in different interviews documented by both education blogger Anthony Cody and by Washington Post education writer Valerie Strauss that CCSS (and other Gates-funded education reforms) is an experiment. Furthermore, in an American Enterprise Institute interview, Gates notes that he believes CCSS is important because “scale is good for free-market competition.”

An excellent education experience for students is not the ultimate goal of CCSS. Enabling large scale standardization of public education in order to market education as a product on a national scale (including curriculum, assessments, and teacher training and ongoing professional development) is.

CCSS is a rigid anchor to which mega-corporations such as Pearson, “the world’s leading learning company,” might construct the profoundly profitable, national education experience for the masses. (Note: CCSS is not for the elite. The children of privilege—those attending schools that cost $35,000-plus per year, for instance—are exempt).

The National Governors Association (NGA) and Council of Chief State School Officers (CCSSO) are the copyright holders of CCSS. In signing the CCSS MOU, governors and state education superintendents have agreed to not alter CCSS. Thus, the “states” have agreed to forego any future “state leading” away from CCSS, and they did so before CCSS was even created. “States” can add some content to CCSS but cannot remove content.

The twisted premises behind CCSS is that standardizing education for the masses is both possible and good, and that the profit-driven “market forces” will benefit public education. Some principal promoters of CCSS are former Florida Governor Jeb Bush, U.S. Secretary of Education Arne Duncan, Fordham Institute President Chester Finn and Executive Vice President Mike Petrilli, AFT President Randi Weingarten, NEA President Dennis van Roekel, and Education Trust CEO Kati Haycock.

None of these individuals has children subjected to CCSS. None is a classroom practitioner forced to adapt to CCSS. All live lives shielded from the direct impact of a CCSS-forced rigidity, and all are pushing CCSS so hard as to make their doing so for ulterior motives (such as money and power) the only plausible explanation.

SS: Thank you for your time, Mercedes K. Schneider.

MKS: My pleasure, Seth. Thank you for your interest in my work.

Seth Sandronsky is a Sacramento journalist and member of the freelancers unit of the Pacific Media Workers Guild. Email sethsandronsky@gmail.com.