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America’s Waning Influence Has a Silver Lining – NYTimes.com

2 Nov

…the relative decline of the United States as an international force also comes with a silver lining. For decades, the United States has been the global rescuer of last resort. It is a role that has brought significant costs, both financial and human.

The last few months may well end up being an inflection point, in which the United States, though easily still the world’s leading power, no longer has quite the responsibility or the burden it once did. The pattern has been evident in the Arab Spring, with the American military playing mostly a supporting role in Libya, and now in the European financial crisis, with Asian money coming to aid the Europeans. …

In many ways, the situation is a natural evolution of the campaign promises made by Mr. Obama in 2008, when he vowed to turn away from the Bush administration’s more unilateral approach.

via America’s Waning Influence Has a Silver Lining – NYTimes.com.

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Vatican Calls for Global Oversight of the Economy – NYTimes.com

2 Nov

The Vatican called on Monday for an overhaul of the world’s financial systems, and again proposed establishment of a supranational authority to oversee the global economy, calling it necessary to bring more democratic and ethical principles to a marketplace run amok.

In a report issued by the Pontifical Council for Justice and Peace, the Vatican argued that “politics — which is responsible for the common good” must be given primacy over the economy and finance, and that existing institutions like the International Monetary Fund had not been responding adequately to global economic problems. . . .

The language in the document, which the Vatican refers to as a note, is distinctively strong. “We should not be afraid to propose new ideas, even if they might destabilize pre-existing balances of power that prevail over the weakest,” the document states.

The message prompted comparisons with the rallying cries of protest movements that have been challenging the financial world order, like the indignados in Madrid and the Occupy Wall Street protesters in New York City. Still, Vatican officials said the document was not a manifesto for disaffected dissidents.

via Vatican Calls for Global Oversight of the Economy – NYTimes.com.

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Archbishop of Canterbury Endorses Tax on Bankers – NYTimes.com

2 Nov

Dr. Williams [archbishop of Canterbury] supported a Vatican statement last week endorsing the idea of a “Robin Hood” tax on financial transaction and for a separation of the retail and investment operations banks that have relied on bailouts from public funds.

“These ideas — ideas that have been advanced from other quarters, religious and secular, in recent years — do not amount to a simplistic call for the end of capitalism, but they are far more than a general expression of discontent,” he said.

via Archbishop of Canterbury Endorses Tax on Bankers – NYTimes.com.

David Brooks, Fooled by Inequality

1 Nov

He’s at it again, being reasonable out of one side of his mouth while makin’ it up out of the other. I’m talking about David Brooks, Mr. Reasonable, the Mr. Blizzard of plausible risibility. His current column, The Wrong Inequality, is a masterpiece of rhetorical legerdemain and misdirection.

It’s about two inequalities, call them Inequality One and Inequality Two. That’s not what he calls them, but his labels are part of the misdirection, so we’ll skip them for the moment. Inequality One is the 1% vs. the 99%. Inequality Two is the college educated vs. those without college.

After laying them out Brooks helpfully observes: “These two forms of inequality exist in modern America. They are related but different. Over the past few months, attention has shifted almost exclusively to” Inequality One. And, yes, he’s right on all three counts. America has both, they’re related, and attention is now on One, rather than Two.

The point of Brook’s advertorial is that, while Inequality One is bad (his loss leader), Inequality Two is Much Much Worse. For it affects many more people, a big percentage of the 99%, though he doesn’t quite put it that way. Here’s his oh so reasonable conclusion: “If your ultimate goal is to reduce inequality, then you should be furious at the doctors, bankers and C.E.O.’s. If your goal is to expand opportunity, then you have a much bigger and different agenda.”

Notice, first of all, that that conclusion is apples vs. oranges. We’re angry at the beneficiaries of Inequality One (apples), but we’re supposed to expand opportunity in response to Inequality Two (oranges). Umm, err, Mr. David Brooks, Sir, if we’re angry at the One Percenters, what are we to do about it? He doesn’t say or suggest. All he does is divert out attention to the need for more opportunities for, well, the bottom 50%. Well, yes, they need opportunity, and debt forgiveness, health care, and jobs would be nice too. Continue reading →

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Corzine Crashes Like It’s 2008 – NYTimes.com

1 Nov

Or, How the 1% takes care of NUMBER ONE

The idea that Corzine, who single-handedly destroyed MF Global Holdings, was in a position to command so much as a penny in severance is horrifying. It suggests two things. The first is the extent to which “heads-I-win-tails-you-lose” remains the operative concept for Wall Street compensation. The second is that one’s politics doesn’t much matter when it comes to lining one’s pockets. Corzine is an avowed liberal who has decried income inequality and Wall Street pay — but right up until the end, he had his hand out for millions he didn’t deserve.

He ran the firm like it was only about the payday:

When I read MF Global Finance’s second-quarter results, though, what popped out at me was its compensation expenses: 64 percent of revenues went to compensation. In any industry but Wall Street, that would be obscene. Indeed, in a talk he gave at Princeton last year, Corzine said that he’d been “arguing about compensation sins of Wall Street” for decades. Not enough to actually do anything about it, though, once he was back in charge of a firm.

via Corzine Crashes Like It’s 2008 – NYTimes.com.

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OWS has transformed public opinion

31 Oct

…for the first time in more than half a century, a broad cross-section of the American public is talking about the concentration of income, wealth and political power at the top.

Score a big one for the Occupiers.

Even more startling is the change in public opinion. Not since the 1930s has a majority of Americans called for redistribution of income or wealth. But according to a recent New York Times/CBS News poll, an astounding 66 percent of Americans said the nation’s wealth should be more evenly distributed.

A similar majority believes the rich should pay more in taxes.

via OWS has transformed public opinion – Occupy Wall Street – Salon.com.

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Occupy Wall Street: Too Abstract? Will it Last?

31 Oct

Plus Zombies, Bicycles, and Fat Cats

John McWhorter and Glenn Loury have an interesting discussion, mostly about Occupy Wall Street. McWhorter went down there the other day and noticed that it’s small.

Yes it is. Was there yesterday afternoon (Sunday 30 Oct) and it IS small. A whole city block, yes, but a small block. And crowded with tents. It’s large in the imagination, but physically small.

And jammed with people taking photos, shooting videos, and doing interviews. Which surely is the point, get in the media however possible.

orange_mesh2

The crowd, more diverse than some reports suggest, though it’s hard to tell the OWSers from the one-time visitors. Some folks, of course, visit time and again. I got an armband of orange mesh—just like the police use to corral people—from an older couple who were helping out. I also saw some seminary students offer a sympathetic ear as Pastors for Occupy Wall Street (something like that, I forget the exact banner they flew under). Yes, lots of young folks, but also middle aged and old. Women as well as men, and a child singer playing a pink guitar in one placer, a child drummer in another. Black white yellow, probably red too.

Will OWS Last?

But back to McWhorter and Loury. McWhorter thinks they’ll all disperse in a month or so when the weather gets really cold. Perhaps.

What McWhorter and Loury were wondering is whether or not THIS is the sort of thing that really stirs the passions so that the protest will last and last. And thus really get in people’s minds and under their skin.

Yes, the 1% vs. 99% message is clear enough, economic inequality. But you push beyond that, and what do you get? They feat that the enemy may be too abstract. Financial manipulation, derivatives, that’s a bit abstract. Cheating is not abstract, but is that cheating? How so?

I think they’ve got a point. How to bring the message home? Continue reading →

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Bombs, Bridges and Jobs – NYTimes.com

31 Oct

Or, Why Republicans Prefer to Waste Money on Military spending over doing something constructive with government money.

A shrewd take on “weaponized Keynsianism” (Barney Frank’s phrase):

But why would anyone prefer spending on destruction to spending on construction, prefer building weapons to building bridges?

John Maynard Keynes himself offered a partial answer 75 years ago, when he noted a curious “preference for wholly ‘wasteful’ forms of loan expenditure rather than for partly wasteful forms, which, because they are not wholly wasteful, tend to be judged on strict ‘business’ principles.” Indeed. Spend money on some useful goal, like the promotion of new energy sources, and people start screaming, “Solyndra! Waste!” Spend money on a weapons system we don’t need, and those voices are silent, because nobody expects F-22s to be a good business proposition.

But there are also darker motives behind weaponized Keynesianism.

For one thing, to admit that public spending on useful projects can create jobs is to admit that such spending can in fact do good, that sometimes government is the solution, not the problem. Fear that voters might reach the same conclusion is, I’d argue, the main reason the right has always seen Keynesian economics as a leftist doctrine, when it’s actually nothing of the sort. However, spending on useless or, even better, destructive projects doesn’t present conservatives with the same problem.

 

via Bombs, Bridges and Jobs – NYTimes.com.

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Did You Hear the One About the Bankers? – NYTimes.com

30 Oct

Our financial industry has grown so large and rich it has corrupted our real institutions through political donations. As Senator Richard Durbin, an Illinois Democrat, bluntly said in a 2009 radio interview, despite having caused this crisis, these same financial firms “are still the most powerful lobby on Capitol Hill. And they, frankly, own the place.”

Our Congress today is a forum for legalized bribery. One consumer group using information from Opensecrets.org calculates that the financial services industry, including real estate, spent $2.3 billion on federal campaign contributions from 1990 to 2010, which was more than the health care, energy, defense, agriculture and transportation industries combined. Why are there 61 members on the House Committee on Financial Services? So many congressmen want to be in a position to sell votes to Wall Street.

via Did You Hear the One About the Bankers? – NYTimes.com.

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Wall Street Protesters Hit the Bull’s-Eye – NYTimes.com

29 Oct

From 1979 to 2006, the financial industry’s share in the nation’s corporate profits grew from a fifth to almost a third. By 2006, bankers and insurers were making 70 percent more, on average, than workers in the rest of the private sector. Then they set off one of the worst financial crises in living memory, and taxpayers bailed them out.

The protesters’ grievances may be aimed at Wall Street as a metaphor for broader economic forces. But there is nothing metaphorical about who is taking home the wealth. The protesters might even aim a bit higher: the real income growth is happening in the top 0.1 percent. There are lots of bankers there, too.

via Wall Street Protesters Hit the Bull’s-Eye – NYTimes.com.

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