One more thing...

I forgot to mention during my last post, but I will continue to update both my shared items and Delicious bookmarks. They are accessible from the right-hand column of this blog, or by bookmarking the hyperlinks in the last sentence.

Also, it appears that I'm not the only one feeling this way. Sharon Astyk writes a great blog, and today she wrote the following:

You see, I’m starting to feel I can’t compete with reality - any actual attention to events as they unfold points up the fact that my own doomiest imaginings are being wildly exceeded.

Let’s see - California is broke, functionally insolvent, and has stopped paying for just about everything, including its state police. Remember how often they trumpted that they were the 6th largest economy in the world - well, that’s kinda like saying the UK is insolvent…oh, and that actually might be not so far from the truth too, since they just had to nationalize their banking system. We’ve lost at least 300,000 jobs in two weeks. The New York Times may be out of business by spring. While neither rain nor sleet nor hail will keep the postal service from its appointed rounds, money probably will, and they are talking about cutting out Saturday deliveries. Homelessness and hunger are rapidly on the rise, as are suicide and murder suicide.

There’s rioting in Russia, China, Greece, and massive worker demonstrations in France and Britain. Australia is seeing record high temperatures, while many of the rest of us struggle with record lows. California’s drought may be the worst in a century. And the already hungry are among the deepest sufferers of the food crisis. The New York Times, Fortune Magazine, Bloomberg - they are all starting to use words like “Biblical proportions” “Deep Depression” “Apocalypse.” It is getting hard to compete with the mainstream doomers.

We’ve been “fixing” the problem - which is a big part of the problem - think of the word “fix” here as in “the fix is in.” We’ve just spent 8 trillion dollars bailing out the banks - more than all the wars in US history, the Louisiana purchase and the space program combined. And what did we get for it? Bank of America and Citi are still teetering, the jobs are still being flushed daily. The estimate is half a million a month - every month.

And people aren’t really very angry yet. They should be - think about what 8 trilliion dollars could actually have bought us, had anyone cared as much about the people as they do about the banks, and about the wealth of the fortunate. At some point people will realize that it isn’t going to work - and their anger will be frightening - and just. The New Hampshire state legislature is currently debating legislation that would assert that if the US implements martial law or abrogates the Constitution, it will effectively dissolve the Union. While one wonders where they were the last eight years, this is being taken quite seriously, and it would have been unthinkable a decade ago.

Eight trillion could have paid for free health care for every American, cradle to grave for a century. Eight trillion was sufficient to cover the cost of almost all the mortgage debt - every American could have been given their house and the “foreclosure crisis” ended instantly. Eight trillion was enough to build renewable energy infrastructure that could have softened the crisis, to reinsulate our houses, to provide basic food and health care to the world’s poor. The same eight trillion we were told we didn’t have when it was needed by those who wanted educations, basic medical care, decent shelter, a home, hope, a decent life, we had a plenty for the banks and the wealthiest people in the world.

A number of energy and environmental advocates don’t seem to grasp that the 8 trillion figure - and the monies spent by other nations - aren’t proof that we can build a renewable infrastructure or address peak oil if we really want to - instead, they are what we are doing *instead.* Yes, nations can print money, but in order to inflate our currency, we’d have to disentangle ourselves quite violently from the other nations with which we are economically intertwined, and that would have its price too. That is, our ability to keep bailing is limited - and the 8 trillion now buried in bank vaults and flushed down the toilet is money we don’t have for future adaptations. Think about it - we’re debating 3/4 of a trillion dollars for all the American people combined (and some of that will also make its ways into the coffers of the bank) - while we’ve already spent almost 9 times that much on the banks. 300 million Americans get 1/8 or less what the banks get. What does that say about us? And what does it say about the ability and willingness to mobilize funds for things that actually protect human lives?

I encourage you to read the whole post, but that's the part that really struck me. I guess that's why I can't keep talking about all of this, it's got such an air of inevitability. Anyway, if you want to see the full-text of the New Hampshire (state motto: "Live free or die") legislation that would define the conditions under which they will secede (and encourage other states to do the same), it's here. Quite a read. Stunning really, watching this type of history unfold. I mean, the fact that the majority of the population in the US does not realize that there is a new debate about secession going on is really quite amazing. It ought to really hammer home the seriousness of the problems. And to think, I wondered if I was being too dramatic when I wrote about the potential for new wars of secession in November last year.

I'm done

We've had a pretty good run, here in the US. At least, since the Great Depression, things have been remarkably stable. My feeling, and that of others, is that the time for relative peace and economic growth has come to an end. You can see the signs everywhere, if you look for them. Unfortunately, too many people refuse to look, or refuse to recognize them for what they really are.

The bailout is not the problem. Sub-prime lending is not the problem. The credit crisis is not the problem. Unemployment, foreclosures, and defaults are not the problem. They are merely symptoms of the real problem. The real problem lies in our paradigm, the problem lies in our belief that things will, or must, always grow, always improve, and that tomorrow will always be better than today. This blind faith in inexorable progress is belied by the simple fact that our growth is simply unsustainable. Daily, more proof arrives that the tremendous march of "progress" since the industrial revolution has been purchased at a tremendous cost- one that the planet can scarcely bear for much longer. Or, as award-winning journalist Chris Hedges argued yesterday in a brilliant article, "It's not going to be OK".

Many will wonder why nobody tried to warn them what was coming. The reality is, there are voices out there that are telling you what is coming, but it's not a pretty picture and so you choose to ignore them. For myself, I listen to those who have been right all along. I choose track-record over happy thoughts. Since the current economic crisis really picked up steam in September of last year, the "experts" have been wrong time and time again, while those few voices in the wilderness have been saying that this downturn will be worse than anyone's expecting, will last longer than anyone's expecting, and the consequences will be far worse than anyone's expecting. Those are the voices I choose to listen to now. It certainly is not the politicians that have been saying that nobody could have predicted the current crisis, ignoring the fact that plenty of people did predict it. No longer comparing the current crisis to milder recessions of the 70's, 80's or 90's, expert economists are now calling for an unprecedented depression.

Journalists are starting to realize that they've been far too complicit. Lost in all the news about why newspapers are shuttering their doors around the country is the simple fact that they have been wrong, horribly wrong, for far too long. The rise of the internet has delivered undreamt of resources to those of us who demand truth, and that truth has come at the expense of the so-called opinion makers and spin-doctors. When the media only quotes those who say that we've reached a "bottom", and it becomes clear within days (or hours) that there is no end in sight, it becomes clear that both those sources and the media themselves are no longer worthy of attention. At the same time, they are useful as they ferret out a small portion of the corruption in our modern age. A staggering amount of wrongdoing exists in all levels of government, and if the populace were truly paying attention, the government would have already been overthrown. Taking one small glance at the news of the day reveals that two of Obama's cabinet level appointees (or 17%) have suddenly remembered that they forgot to pay taxes on perks or income they received, to the tune of hundreds of thousands of dollars. Luckily, they remembered just as Obama won the election! Geithner has been confirmed, and Daschle is expected to be. These two people should have been disqualified on that basis alone, and yet nobody seems to think it's a problem.

Politicians only have themselves to blame, both for the current crisis and the fact that nobody is yet grasping the gravity of the situation. Like the boy who cries wolf, decades of overheated rhetoric has numbed the public to pronouncements of genuine seriousness. A week ago Friday, our new president had this to say: "Look, we are all political animals here. If we don't do this, we may lose seats. I may not be re-elected. But none of that's going to matter if we don't pass this because the economy will be in a crisis and the American people will be hurting." Ignoring for a moment the fact that his solution is unlikely to work, and just listen to the raw appeal for desperate measures. "I may not be re-elected. But none of that's going to matter." When have you ever heard a politician say that getting re-elected does not matter? It's a half-step away from admitting (as a British minister did last week) "The banks are fucked, we're fucked, the country's fucked."

Iceland's government has fallen in this crisis. It will not be the last. Civil unrest is spreading rapidly throughout Eastern Europe and China, and there have been many predictions that it will strike in America before we're done. We've thrown trillions of dollars at the problem, close to 30 banks have failed (with hundreds or thousands more poised to fail at any moment), unemployment has been rising at over half a million per month, and still we are no closer to anything resembling a solution, or even a slowing in the bloodbath.

I'm not asking anyone to take this all on faith. Read both sides of these arguments. Then go back and read the counter-arguments. Read opinions that disagree with yours, read about subjects that you ordinarily would not. Rely as much as you can using direct evidence, or any statistics you can find. The reporting of statistics can be spun, but the raw numbers themselves do not lie. Obama was indisputably correct during his inaugural speech when he said "the time has come to set aside childish things." Stop watching "American Idol", or whatever mindless drivel masquerades as entertainment these days. Are you prepared to provide for yourself and your family should the grocery stores suddenly be empty of food- or closed due to bankruptcy? Or if water stops coming free from the tap, how will you conquer thirst?

Food banks around the country are reporting a 30% increase in demand, double the increase from six months ago. Last week, on Monday- in a single day- approximately 80,000 Americans lost their jobs, and the stock market rejoiced, if only briefly. That's 15% of the total loss for December, and it came in a single day. Where will you go for food when you have job, no money, and the food banks are empty? I hope you won't be part of the rising numbers of Americans taking their own lives.

For what it's worth, the government now admits that we have essentially ignored global warming for too long- it's now irreversible. The twin crises of global economic collapse and climate change are more interrelated than most people realize. In any case, it's too late to do much to solve either- the time has now come to focus on ways to mitigate the fallout. This is what collapse looks like. A slow-motion collapse is now occurring, and time is short for you to figure out how best to weather it.

As I said, rely on those whose predictions have been proven correct, not those who tell you comforting lies. Consider this from a 2006 Maclean's article:

And when the truth can no longer be obscured, the price will spike, the economy nosedive, and the underpinnings of our civilization will start tumbling like dominos. The U.S. -- Consumer No. 1 in the lingo of Leggett's book -- will be the most vulnerable, having allowed its citizens to pile up mountains of debt. "The price of houses will collapse. Stock markets will crash. Within a short period, human wealth -- little more than a pile of paper at the best of times, even with the confidence about the future high among traders -- will shrivel." There will be emergency summits, diplomatic initiatives, urgent exploration efforts, but the turmoil will not subside. Thousands of companies will go bankrupt, and millions will be unemployed. "Once affluent cities with street cafés will have queues at soup kitchens and armies of beggars. The crime rate will soar. The earth has always been a dangerous place, but now it will become a tinderbox."

By 2010, predicts Leggett, democracy will be on the run. As with the Great Depression, economic hardship will bring out the worst in people. Fascists will rise, feeding on the anger of the newly poor and whipping up support. These new rulers will find the tools of repression -- emergency laws, prison camps, a relaxed attitude toward torture -- already in place, courtesy of the war on terror. And if that scenario isn't nightmarish enough, Leggett predicts that "Big Oversight Number One" -- climate change -- will be simultaneously making its presence felt "with a vengeance." On the heels of their rapid financial ruin, people "will now watch aghast as their food and water supplies dwindle in the face of a climate seemingly going awry." Prolonged droughts will spread, decimating harvests. As oceans warm, fish catches "will fall off a cliff," and protein will become a luxury.

The first paragraph reads like recent history or current newspaper headlines (see hyperlinks for examples, or your local newspaper), the second paragraph is yet to come. If you wish, there are plenty of others out there that have made similar arguments. Contrast the words of these prophets with the statements of your politicians, you will find very little overlap, if any. One of these groups has been consistently correct, the other group repeats lame excuses that "nobody could have anticipated the reach, depth, or severity of the current crisis" and then proceeds to promise you a return to "normal" in short order, if you only vote for them or agree with their decision to throw trillions of dollars at the crisis.

How can I begin to explain to you the insanity of politicians? They advocate spending close to a trillion dollars in a stimulus package in which they argue that every $1 of stimulus results in $1.50 in economic growth. If that were true, then why not spend like this every day? Why not spend quadrillions of dollars, and make everyone in the US wealthy? Or why has nobody noticed that every four years we have this masturbatory celebration known as an election- new politicians come to power promising change, vowing to tackle corruption and to solve the really hard problems; and yet, nothing ever changes, corruption is endemic, and the really hard problems are only growing in severity? Frankly though, we're all to blame. We keep looking to them for solutions to problems that they caused in the first place. Well, those days are ending, soon they will no longer be able to pretend that they have solutions- in fact, you can hear that in their statements right now if you are paying attention. The word "unprecedented" is used all too frequently for them to really know what they are doing. Even economists seem eager to get the stimulus on, as it will solve for them the debate over whether fiscal stimulus really works or not. Although politicians worldwide seem to act as though that debate was already settled, in fact, it's not. And what are we to do if we throw trillions into this black hole, and it doesn't do anything after all? Is anyone even asking that question? The Wall Street Journal quotes Rahm Emanuel as saying, "Never let a serious crisis go to waste. What I mean by that is it's an opportunity to do things you couldn't do before." This frank admission is chilling to anyone familiar with Naomi Klein's Shock Doctrine. In short, the frightened masses which would normally oppose this type of reckless endangerment of their fiscal health (not to mention that of their children and grandchildren) can be persuaded that "desperate times call for desperate measures." Left unsaid is the fact that the desperate measures will tend to benefit the upper class of society disproportionately.

Most of the masses take some comfort in the fact that doomsdayers have been wrong before, a point I freely grant. However, doomsayers only have to be correct once. Additionally, those who believed their empires would last forever have also been wrong-- 100% of the time, historically. As the great Roman society was poised on the brink of destruction, did anyone alive at the time really believe what was happening, did they recognize the signs for what they were? Or any of the great civilizations that have sprang up to dominate their world- Mayan, Incan, Egyptian, Norse- did any of them recognize the coming collapse? Clearly, not in time to prevent it. Are we any different?

Of course, the end of the world has been promised by Jews, Christians, Muslims and assorted crazies with sandwich boards for as long as there has been a human world to end. But those doomsdays were the product of faith; reason always used to say the world will continue. The point about the new apocalypse is that this situation has reversed. Now faith tells us we will be able to solve our problems; reason says we have no answers now and none are likely in the future. Perhaps we can't cure cancer because the problem is simply beyond our intellects. Perhaps we haven't flown to the stars because our biology and God's physics mean we never can. Perhaps we are close to the limit and the time of plenty is over.

The evidence is mounting that our two sunny centuries of growth and wealth may end in a new Dark Age in which ignorance will replace knowledge, war will replace peace, sickness will replace health and famine will replace obesity. You don't think so? It's always happened in the past. What makes us so different? Nothing, I'm afraid.

If we manage to escape the current crisis relatively unscathed, will we heed it for the warning sign it is? Jared Diamond's amazing book Collapse: how societies choose to fail or succeed poses an interesting question: What did the person on Easter Island who cut down the last tree think about as he was doing it? You see, deforestation was a major factor in the collapse of Easter Island society. Diamond spotlights several other once-mighty societies that collapsed because of their stupid, short-term, profligate use of natural resources. Put simply, they used their resources until they were gone, and then they died. Their societies crumbled surprisingly quickly, often within only decades from reaching their peak. There is nothing to suggest that American society is any different, or has learned the lessons of the past. Quoting Diamond:

"One of the disturbing facts of history is that so many civilizations collapse. Few people, however, least of all our politicians, realize that a primary cause of the collapse of those societies has been the destruction of the natural resources on which they depend. Fewer still appreciate that many of those civilizations share a sharp curve of decline. Indeed, a society's demise may begin only a decade or two after it reaches its peak population, wealth and power."

If we assume this is not the great collapse, then it will certainly arrive within decades if we continue on our current path, and probably even if we make radical changes. The deniers have been far too successful, and we are utterly unprepared for the implications. They have postponed action on the most pressing of problems, citing potential damage to the economy (which after all, must continue to grow, at all costs). Well, they've succeeded, and gained the ultimate pyrrhic victory. The economy is now in the process of being destroyed, and it's too late to solve the environmental problems we will be facing. Scientific consensus is now that the human race, if not all life on Earth, will go extinct within the next 100 years. It takes a bit of connecting the dots, but they are all well-regarded scientific studies. Or, if you choose not to believe that one, how about the NASA scientist and climate expert that says Obama has only 4 years to save planet earth? I, for one, am not optimistic that he can muster the will to do so, even if we grant that it's not yet too late.

In any case, I am not going to be spending much more time chronicling this collapse. I'm definitely done posting about political and economic corruption within the US, as there are far too many articles and I have too little time. I urge you to spend whatever time and resources you can muster in preparing yourself for what's to come. I am not going to point you in the direction of "recommended reading" or some similar list. If you are interested, you can find such information on your own, but I suspect that most of you are not interested enough to even try. Pity, but consider this parting thought: before the rise of the age of oil (a mere two centuries ago), the earth was able to support approximately 1 billion people. There are now approximately 6.7 billion. If there is the slightest chance that any of our most respected scientists are correct then the coming wars, pandemics, droughts, famine, and extreme weather are set to reduce that number dramatically, if not totally erase it. Mankind has proven itself to be a parasite, remorselessly feeding on the resources of our host planet. Like a parasite, we may just be killing ourselves along with our host. Or perhaps a cancer is an apt description- growing exponentially, eventually choking out and destroying the healthy parts until the whole organism dies.

Thanks to all who have taken the time to read my postings over the past year or two, and I'm very sincerely wishing you good luck.

THE SECOND COMING

Turning and turning in the widening gyre
The falcon cannot hear the falconer;
Things fall apart; the centre cannot hold;
Mere anarchy is loosed upon the world,
The blood-dimmed tide is loosed, and everywhere
The ceremony of innocence is drowned;
The best lack all conviction, while the worst
Are full of passionate intensity.

Surely some revelation is at hand;
Surely the Second Coming is at hand.
The Second Coming! Hardly are those words out
When a vast image out of Spiritus Mundi
Troubles my sight: a waste of desert sand;
A shape with lion body and the head of a man,
A gaze blank and pitiless as the sun,
Is moving its slow thighs, while all about it
Wind shadows of the indignant desert birds.
The darkness drops again but now I know
That twenty centuries of stony sleep
Were vexed to nightmare by a rocking cradle,
And what rough beast, its hour come round at last,
Slouches towards Bethlehem to be born?

It's not going to be OK

I'm finding it difficult to have much to say about this article. For once, I don't have anything to criticize. I thought I might be able to pick on the reporter himself, but he's impeccably credentialed, as far as I can tell.

It’s Not Going to Be OK

Posted on Feb 2, 2009

AP Photo / Nikolas Giakoumidis

Riots have spread across Europe since the economic crisis began. Here, Greek riot police stand near a burning car.

By Chris Hedges

The daily bleeding of thousands of jobs will soon turn our economic crisis into a political crisis. The street protests, strikes and riots that have rattled France, Turkey, Greece, Ukraine, Russia, Latvia, Lithuania, Bulgaria and Iceland will descend on us. It is only a matter of time. And not much time. When things start to go sour, when Barack Obama is exposed as a mortal waving a sword at a tidal wave, the United States could plunge into a long period of precarious social instability.

At no period in American history has our democracy been in such peril or has the possibility of totalitarianism been as real. Our way of life is over. Our profligate consumption is finished. Our children will never have the standard of living we had. And poverty and despair will sweep across the landscape like a plague. This is the bleak future. There is nothing President Obama can do to stop it. It has been decades in the making. It cannot be undone with a trillion or two trillion dollars in bailout money. Our empire is dying. Our economy has collapsed.

How will we cope with our decline? Will we cling to the absurd dreams of a superpower and a glorious tomorrow or will we responsibly face our stark new limitations? Will we heed those who are sober and rational, those who speak of a new simplicity and humility, or will we follow the demagogues and charlatans who rise up out of the slime in moments of crisis to offer fantastic visions? Will we radically transform our system to one that protects the ordinary citizen and fosters the common good, that defies the corporate state, or will we employ the brutality and technology of our internal security and surveillance apparatus to crush all dissent? We won’t have to wait long to find out.

There are a few isolated individuals who saw it coming. The political philosophers Sheldon S. Wolin, John Ralston Saul and Andrew Bacevich, as well as writers such as Noam Chomsky, Chalmers Johnson, David Korten and Naomi Klein, along with activists such as Bill McKibben and Ralph Nader, rang the alarm bells. They were largely ignored or ridiculed. Our corporate media and corporate universities proved, when we needed them most, intellectually and morally useless.

Wolin, who taught political philosophy at the University of California in Berkeley and at Princeton, in his book “Democracy Incorporated” uses the phrase inverted totalitarianism to describe our system of power. Inverted totalitarianism, unlike classical totalitarianism, does not revolve around a demagogue or charismatic leader. It finds its expression in the anonymity of the corporate state. It purports to cherish democracy, patriotism and the Constitution while cynically manipulating internal levers to subvert and thwart democratic institutions. Political candidates are elected in popular votes by citizens, but they must raise staggering amounts of corporate funds to compete. They are beholden to armies of corporate lobbyists in Washington or state capitals who write the legislation. A corporate media controls nearly everything we read, watch or hear and imposes a bland uniformity of opinion or diverts us with trivia and celebrity gossip. In classical totalitarian regimes, such as Nazi fascism or Soviet communism, economics was subordinate to politics. “Under inverted totalitarianism the reverse is true,” Wolin writes. “Economics dominates politics—and with that domination comes different forms of ruthlessness.”

I reached Wolin, 86, by phone at his home about 25 miles north of San Francisco. He was a bombardier in the South Pacific during World War II and went to Harvard after the war to get his doctorate. Wolin has written classics such as “Politics and Vision” and “Tocqueville Between Two Worlds.” His newest book is one of the most important and prescient critiques to date of the American political system. He is also the author of a series of remarkable essays on Augustine of Hippo, Richard Hooker, David Hume, Martin Luther, John Calvin, Max Weber, Friedrich Nietzsche, Karl Marx and John Dewey. His voice, however, has faded from public awareness because, as he told me, “it is harder and harder for people like me to get a public hearing.” He said that publications, such as The New York Review of Books, which often published his work a couple of decades ago, lost interest in his critiques of American capitalism, his warnings about the subversion of democratic institutions and the emergence of the corporate state. He does not hold out much hope for Obama.

“The basic systems are going to stay in place; they are too powerful to be challenged,” Wolin told me when I asked him about the new Obama administration. “This is shown by the financial bailout. It does not bother with the structure at all. I don’t think Obama can take on the kind of military establishment we have developed. This is not to say that I do not admire him. He is probably the most intelligent president we have had in decades. I think he is well meaning, but he inherits a system of constraints that make it very difficult to take on these major power configurations. I do not think he has the appetite for it in any ideological sense. The corporate structure is not going to be challenged. There has not been a word from him that would suggest an attempt to rethink the American imperium.”

Wolin argues that a failure to dismantle our vast and overextended imperial projects, coupled with the economic collapse, is likely to result in inverted totalitarianism. He said that without “radical and drastic remedies” the response to mounting discontent and social unrest will probably lead to greater state control and repression. There will be, he warned, a huge “expansion of government power.”

“Our political culture has remained unhelpful in fostering a democratic consciousness,” he said. “The political system and its operatives will not be constrained by popular discontent or uprisings.”

Wolin writes that in inverted totalitarianism consumer goods and a comfortable standard of living, along with a vast entertainment industry that provides spectacles and diversions, keep the citizenry politically passive. I asked if the economic collapse and the steady decline in our standard of living might not, in fact, trigger classical totalitarianism. Could widespread frustration and poverty lead the working and middle classes to place their faith in demagogues, especially those from the Christian right?

“I think that’s perfectly possible,” he answered. “That was the experience of the 1930s. There wasn’t just FDR. There was Huey Long and Father Coughlin. There were even more extreme movements including the Klan. The extent to which those forces can be fed by the downturn and bleakness is a very real danger. It could become classical totalitarianism.”

He said the widespread political passivity is dangerous. It is often exploited by demagogues who pose as saviors and offer dreams of glory and salvation. He warned that “the apoliticalness, even anti-politicalness, will be very powerful elements in taking us towards a radically dictatorial direction. It testifies to how thin the commitment to democracy is in the present circumstances. Democracy is not ascendant. It is not dominant. It is beleaguered. The extent to which young people have been drawn away from public concerns and given this extraordinary range of diversions makes it very likely they could then rally to a demagogue.”

Wolin lamented that the corporate state has successfully blocked any real debate about alternative forms of power. Corporations determine who gets heard and who does not, he said. And those who critique corporate power are given no place in the national dialogue.

“In the 1930s there were all kinds of alternative understandings, from socialism to more extensive governmental involvement,” he said. “There was a range of different approaches. But what I am struck by now is the narrow range within which palliatives are being modeled. We are supposed to work with the financial system. So the people who helped create this system are put in charge of the solution. There has to be some major effort to think outside the box.”

“The puzzle to me is the lack of social unrest,” Wolin said when I asked why we have not yet seen rioting or protests. He said he worried that popular protests will be dismissed and ignored by the corporate media. This, he said, is what happened when tens of thousands protested the war in Iraq. This will permit the state to ruthlessly suppress local protests, as happened during the Democratic and Republic conventions. Anti-war protests in the 1960s gained momentum from their ability to spread across the country, he noted. This, he said, may not happen this time. “The ways they can isolate protests and prevent it from [becoming] a contagion are formidable,” he said.

“My greatest fear is that the Obama administration will achieve relatively little in terms of structural change,” he added. “They may at best keep the system going. But there is a growing pessimism. Every day we hear how much longer the recession will continue. They are already talking about beyond next year. The economic difficulties are more profound than we had guessed and because of globalization more difficult to deal with. I wish the political establishment, the parties and leadership, would become more aware of the depths of the problem. They can’t keep throwing money at this. They have to begin structural changes that involve a very different approach from a market economy. I don’t think this will happen.”

“I keep asking why and how and when this country became so conservative,” he went on. “This country once prided itself on its experimentation and flexibility. It has become rigid. It is probably the most conservative of all the advanced countries.”

The American left, he said, has crumbled. It sold out to a bankrupt Democratic Party, abandoned the working class and has no ability to organize. Unions are a spent force. The universities are mills for corporate employees. The press churns out info-entertainment or fatuous pundits. The left, he said, no longer has the capacity to be a counterweight to the corporate state. He said that if an extreme right gains momentum there will probably be very little organized resistance.

“The left is amorphous,” he said. “I despair over the left. Left parties may be small in number in Europe but they are a coherent organization that keeps going. Here, except for Nader’s efforts, we don’t have that. We have a few voices here, a magazine there, and that’s about it. It goes nowhere.”

Theiving Merrill executives accelerated bonuses before BofA deal

Every time I think I've seen the lowest, most despicable, most brazen, unconscionable, outright theft, something like this comes along and proves me all wrong. When do we start seeing these fucking executives in handcuffs?

Merrill delivered bonuses before BofA deal
Merrill Lynch took the unusual step of accelerating bonus payments by a month last year, doling out billions of dollars to employees just three days before the closing of its sale to Bank of America.

The timing is notable because the money was paid as Merrill’s losses were mounting and Ken Lewis, BofA’s chief executive, was seeking additional funds from the government’s troubled asset recovery programme to help close the deal.

Merrill and BofA shareholders voted to approve the takeover on December 5. Three days later, Merrill’s compensation committee approved the bonuses, which were paid on December 29. In past years, Merrill had paid bonuses later – usually late January or early February, according to company officials.

Within days of the compensation committee meeting, BofA officials said they became aware that Merrill’s fourth-quarter losses would be greater than expected and began talks with the US Treasury on securing additional Tarp money.

Last week, BofA said it would be receiving $20bn in Tarp money, in addition to the $25bn that had been earmarked for it and Merrill last year. It was then revealed that Merrill had suffered a $21.5bn operating loss in the fourth quarter.

Despite the magnitude of the losses, Merrill had set aside $15bn for 2008 compensation, a sum that was only 6 per cent lower than the total in 2007, when the investment bank’s losses were smaller.

The bulk of $15bn in compensation was paid out as salary and benefits throughout the course of the year. A person familiar with the matter estimated that about $3bn to $4bn was paid out in bonuses in December.

Nancy Bush, an analyst with NAB Research, described the size of the 2008 Merrill bonus payments as “ridiculous”.

BofA said: “Merrill Lynch was an independent company until January 1 2009. John Thain (Merrill’s chief executive) decided to pay year-end incentives in December as opposed to their normal date in January. BofA was informed of his decision.”

BofA declined to specify when Mr Thain informed the bank of his decision.

A source familiar with the matter says Mr Thain, in the weeks leading up to the December 8 compensation committee meeting, had been weighing the possibility of requesting a bonus of at least $10m for himself before ultimately deciding against such a move.

So, if you're not clear what this means, let me break it down for you. Merrill decides they are too broke to function as an independent company, so they decide to sell themselves to Bank of America. Bank of America gets $25,000,000,000 (it seems like a bigger number if you use all the zeros instead of just saying "$25 billion") from the Paulson to make the deal work. Merrill decides a couple of days later that they've done a hell of a wonderful job and still deserve their bonuses, but they've got to hurry up and pay them out before BofA takes them over. In the meantime, BofA realizes that Merrill's eyeball deep in bad shit, and wants out of the deal. Paulson says, "no way", and kicks in another $20,000,000,000 and agrees to guarantee up to $118,000,000,000 in bad loans. Today, BofA says to John Thain (former CEO of Merrill Lynch) "your services are no longer needed."

In short: Merrill executives are fucking theives, and have perpetrated a massive heist on Bank of America, who passed the buck on to you, the taxpayer. How does that make you feel?

The Audacity of Hypocrisy

Barack Obama's inaugural address is expected to rely heavily on themes of sacrifice, of paring down the excesses, of hearkening back to a time when people were responsible for themselves, as well as for others in their communities.

Aides said the President-Elect's first words as president would hark back to John F Kennedy's plea to "ask not what your country can do for you – ask what you can do for your country".

Rahm Emanuel, who will be chief of staff in the new White House, said: "We need that culture of responsibility, not just to be asked of the American people, but its leaders must also lead by example."

The address was mostly written a week ago, according to new press secretary Robert Gibbs, and will be "heavily infused with this notion of responsibility and getting our country back on track".

Just don't expect our overlords in Washington to set an examply of the sacrifice required. To ensure that the American people gets the message loud and clear, a estimated total of $150 million will be spent. Yes, these truly are perilous times: tens of millions unemployed, businesses closing their doors all around the country, millions facing foreclosure. Obama is showing how important it is to squarely face these challenges by having a big party that costs a shitload of money. Of course, the banking industry is suffering more than most, but they somehow still found it within their means to donate more than any other industry to the celebration. I guess all those billions of dollars we gave them weren't wasted after all. The phrase "fiddling while Rome burns" springs to mind.

jkerkez1 has written a brilliant diary on the subject over at DailyKos, please read the whole thing. If you can't, check out the final two paragraphs:

In my opinion, Barack Obama should have cancelled the inauguration celebration, re-directed all of the money set aside for the events to food banks around the nation, and modeled for the nation the sobering realities that we face. Instead he has chosen a grand and glorious wedding rather than a quiet marriage in front of a Justice of the Peace. He has opted for the ten thousand dollar wedding ring rather than weaving blades of grass together into a wedding band. He has baked a cake for a million wedding invitees, a lovely frosting-encased edifice that has no nutritional value for the country. And once the grand wedding is over, all of the drunk celebrants will return home and wake up on Wednesday morning with hangovers and less money in the bank and will scratch their heads and wonder what happens next.

Truth be known, I believe that in time the festivities of the inauguration will serve to undermine Obama's authority during this the most trying moment in American History. People will recall the smiles and good feelings and they will wonder aloud, "what the hell were we thinking?". Had Barack Obama opted for a more understated and somber inauguration, people may have been jolted out of their somnabulent complacency. Unfortunately, while the rest of the nation battens down the hatches, it's party time in Washington!

Oakland to fire 11 cops in search warrant case

Is it shocking to anyone that cops have been lying to obtain warrants? Especially in Oakland, California (site of the recent murder of unarmed and detained Oscar Grant at the hands of the police).

In this case, 2 sergeants and 9 officers are about to be terminated for lying to obtain search warrants. Is everyone clear what a lie is? It's when you tell something that isn't true. I only ask because the attorney for the cops apparently doesn't understand what the issue is here. Mary Sansen, the attorney for the officers, says they weren't trained on how to properly fill out an affidavit.

"The fact that I have anybody who's being terminated over this case is just simply outrageous," Sansen said. "Some of my officers have routinely been denied any form of training. I have clients who are writing search warrants who have never been to search-writing school, who have been expected to pick up as they go."

OK, I guess we're supposed to believe that training is the issue, it's not lying. When the cops told the judge that substances seized from suspects "had been identified by the Oakland police crime lab as narcotics", the judge gave them a warrant. But those statements were LIES. It doesn't matter if they didn't fill out the form correctly, what matters is that THEY WERE LYING. I don't care if they've never been to "seach-writing school", whatever the fuck that is, but I do care that THEY WERE DELIBERATELY LYING in order to get warrants that were not supported by the evidence.

Related Stories:

• 98% of Emergency Room doctors believe they've treated patients who were victims of excessive force by police. Ninety-eight percent!?!?!!! That's a staggering number. 95% report treating injuries caused by fists and feet. "Unlike cases of suspected domestic violence, elderly abuse and child abuse, which doctors must report to authorities, physicians are not required to notify anyone of suspected excessive force by police." How convenient, one law for us, and no laws for them.
• An Oakland man has stepped forward, saying that he is also a victim of police brutality at the hands of former-officer Johannes Mehserle. Mehserle was the pig who shot unarmed, defenseless, prostrate Oscar Grant in the back while another officer kneeled on his neck. Disturbing video of the execution can be seen here.
  

Riots: coming to America?

If you thought yesterday's post on the possiblity of civil disorder was outside the realm of possibilities, Freakonomics blog is discussing (for the second time this year) the possibility of economy-related riots in the US. The Freakonomics authors cite an article in the Atlantic by Robert Kaplan where he writes

It’s tempting to dismiss this as a purely Greek affair that carries little significance to the outside world. But the global economic crisis will take different forms in different places in the way that it ignites political unrest. Yes, youth alienation in Greece is influenced by a particular local history that I’ve very briefly outlined here. But it is also influenced by sweeping international trends of uneven development, in which the uncontrolled surges and declines of capitalism have left haves and bitter have-nots, who, in Europe, often tend to be young people. And these young people now have the ability to instantaneously organize themselves through text messages and other new media, without waiting passively to be informed by traditional newspapers and television. Technology has empowered the crowd—or the mob if you will.

Pay close attention to Greece; at a time of world-wide economic upheaval, it might eerily presage disturbances elsewhere in 2009.

So consider, whether in the United States, the "uncontrolled surges and declines of capitalism [that] have left haves and bitter have-nots". Wikipedia ranks Greece as having less economic inequality than the United States. The Gini coefficient is a statistical measure of the inequality within a given country, where the lower the number, the more equality exists. Greece has a Gini coefficient of 34.3, while the US is 40.8 (equally ranked with Ghana and Turkmenistan). Once people wake up and realize the true measure of inequality in this country, it will be hard to keep them satisfied with platitudes about the vagaries of the free market.

How far does a billion dollars go?

It's only shocking if you haven't been paying attention. Two new bailout items of interest today, but honestly I'm getting tired of talking about this. Nobody cares. Trillions of dollars are being wasted, but nobody cares.

Have we forgotten what these numbers mean? I know they sound the same.... "million, billion, trillion..." But because they rhyme, it's easy to forget how much money that actually is. Think of it in terms of miles traveled. A dollar bill is about 6" wide. A million dollars laid end-to-end would go about 94.7 miles. A billion dollars would go about 94,697 miles, almost enough to go four times around the earth at the equator. A trillion is a thousand times larger than that. A trillion dollars is 94,696,969.7 miles, which is enough to travel to the moon and back to earth about 198 times. Does that give you an idea of the scale here?

Where'd the bailout money go? Here are some of the actual answers from bankers:

• "We've lent some of it. We've not lent some of it. We've not given any accounting of, 'Here's how we're doing it.' We have not disclosed that to the public. We're declining to."
• "We're not providing dollar-in, dollar-out tracking."
• "We're choosing not to disclose that."
• "We're not sharing any other details. We're just not at this time."
• "We are going to decline to comment on your story."

And my favorite quotation is

• "I just would prefer if you wouldn't say that we're not going to discuss those details."

In other words, "I'm not telling you how we're spending it, and please don't report the fact that we're not telling you." Of course, they can't really come out and say that it's going to bonuses can they?

AP Reports $1.6 billion went to bailed-out execs. That's enough for more than 6 trips around the earth with dollar bills laid end-to-end. The median income in the US in 2007 was $50,233 in 2007, enough to travel 4.75 miles. The CEO of Goldman Sachs made $54,000,000 last year, enough to travel 5113 miles. It's just obscene.

Paulson flips (again)

Paulson Tuesday, 12/16:

Paulson also said he has no current plans to ask Congress to make the second half of the $700 billion financial rescue fund available before the Bush administration leaves office on Jan. 20.

Paulson, Friday, 12/19:

Treasury Secretary Henry Paulson said Friday that Congress will need to release the last half of the $700 billion rescue fund because the first $350 billion has been committed.

Any questions?

The myth of electoral accountability

DailyKos and Open Left especially have been making an issue of "progressive accountability", or ways to ensure progressive priorities on the campaign trail are translated into action. This typically takes one of two forms- first, by complaining that Democrats as a party tend to be overly willing to accede to demands of the Republican (minority) party (see here, here, and here for examples), or secondly by seeking strategies to ensure that Democrats are forced to be more responsive to progressives (see here and here).

This type of discussion has usually been restricted to progressive dissatisfaction with Obama's cabinet selections, which makes sense given that he has yet to advance any specific policy positions. However, in the wake of Obama's decision to have Rick Warren offer the invocation at the inauguration, the issue appears to be at a boiling point. Rachel Maddow called it "a lose-lose proposition" and "the first big mistake of his post-election politicking." However, Obama has defended his selection as his attempt to "create an atmosphere where we can disagree without being disagreeable and then focus on those things that we hold in common as Americans." This attitude seems to match well with that of his White House Chief of Staff selection, Rahm Emanuel, whose attitude seems to be that it's OK to piss off the progressives since it makes the new administration "look bipartisan."

What the progressive commenters here are missing is the same thing that they've been missing all along. Namely, that neither of the two major parties will ever be more interested in what progressives say than what big business says. Markos at the DailyKos even disparaged Nader supporters, saying

Fuck Ralph Nader, and fuck his supporters. If the past eight years hasn't smacked any sense into their addled brains, then nothing will. This site caters to the reality-based community. No one else need apply.

So at what point do you start to question your repeated (and failed) attempts to pursue your strategy, Markos? Well, it appears he's on the right track:

So you either tear your hair out and go mad at the rank idiocy of it all, or you laugh. And let me tell you, the number of times we've gone through this crap makes laughing about it increasingly difficult.

Welcome to the true reality-based community here, Markos. Maybe you have a few more years of disappointment ahead before some sense gets smacked into your addled brain, but I think sooner or later you'll come around.

Still asking: where's the credit crunch?

As I first reported here on November 18, the available data indicate that there was, in fact, no national credit crisis. Kudos to David Sirota for the reporting there, and apparently he's been keeping up on it in the meantime- read the whole report here, entitled "Did America get punked on the bailout? Yes, now here's what to do".

If you don't believe him (I must admit that even I was skeptical), check out the source data. It comes from the Federal Reserve's own numbers, as reported by the Federal Reserve Bank of Minneapolis' Research Division. Their main working paper is here, and the technical details are here. He also quotes from a Reuter's story which says

"It is startling that many of (Federal Reserve) Chairman (Ben) Bernanke and (Treasury) Secretary (Henry) Paulson's remarks are not supported or are flatly contradicted by the data provided by the very organizations they lead," said the report.

Did you get that? The stories they are telling you are contradicted by their own data! So there are two possibilites:

1. Bush, Paulson, Bernanke & Co. are stupid. Extremely stupid. So incredibly stupid that they cannot understand what a column of basic numbers are telling them. So stupid they frequently have to stop and wipe the drool from their slack jaws as they stumble incoherently about. So stupid they are in danger of drowning if they look at the sky when it's raining.
   
2. They are group of utterly brazen thieves, that have (so far) managed to extort trillions of dollars from .

And I don't think they're that stupid.

Priest Sentenced For Embezzling From Churches

Coming from my hometown, our very own priest scandal. It is just me, or is this guy getting a total pass, just because he's a priest? I mean, he nets $60 grand and only gets probation? And maybe I'm not following enough sentencing hearings, but how often do you see the defense setting up a restitution account for anyone that wants to help pay the restitution?

Priest Sentenced For Embezzling From Churches "OMAHA, Neb. -- An Omaha priest who stole more than $83,000 from an Omaha parish has received probation.

Judge Russell Bowie sentenced Rodney Adams to three to five years of probation. Adams must also pay $23,000 in restitution over the next five years. The defense has established a restitution account at Wells Fargo bank for anyone who wants to help Adams pay back the church. He also must complete 500 hours of community service."

The Raw Story | Whistleblower exposed NSA wiretapping because 'this is crazy'

Thomas Tamm was a lawyer for the Justice Department, until he became a whistleblower that exposed the illegal warrantless wiretapping program that the Bush Administration pursued as a part of the broader war on personal liberty. Listen to the emotions here as he explains, "My entire life, really, was based on trying to enforce the law ... and I believed that the law was being broken in the place where I was working."

Whistleblower exposed NSA wiretapping because 'this is crazy': "'I just stepped back and said, 'This is crazy,'' Tamm told [MSNBC's Rachel] Maddow. 'This is not what the Department of Justice is all about. This is not what the Constitution is about.'

Tamm would now like to see serious consideration of prosecutions for these crimes. 'It offends me that we feel we're not strong enough as a country, that our laws are not strong enough, that our Congress is not strong enough, that our courts are not strong enough to protect us,' he stated. 'And I personally -- I'm a prosecutor ... I think it should be looked at very seriously.'"

Goldman Sachs slashes compensation: now only $363,654

Boo-fucking-hoo. But can anyone explain to me why wage concessions from workers (not executives) is part of the proposed automaker bailout, but we're not requiring any salary caps or executive compensation limits as part of the great Wall Street Bailout of '08?

Bloomberg.com: Worldwide: "Dec. 16 (Bloomberg) -- Goldman Sachs Group Inc. eliminated 2,500 jobs in the fourth quarter and slashed average pay per worker 45 percent to $363,654 as the firm posted the first quarterly loss since going public almost a decade ago."

But how will those poor bastards survive on only $363,654 apiece? Well, it's time for us as a nation to pull together, I guess we all have our burdens to bear, right?

Executive compensation-- Part II

Dean Baker has got a very credible alternative theory. Maybe Paulson's not a lone gunman here, Congress may also be to blame. Rather than actually limiting executive compensation, just tell everyone you limited it.

Let me suggest an alternative hypothesis. Perhaps Congress really did not want to cut executive compensation on Wall Street. After all, word has it that members of Congress gets lots of campaign contributions from very high paid Wall Street executives.

Of course, giving taxpayer dollars to the richest people in the country is not very popular with ordinary taxpayers. So, it might be in the interest of members of Congress to appear to be trying to rein in executive compensation on Wall Street, even if this is not their real intention. In other words, the restrictions of executive compensation put in the bailout bill were just a charade for the kids.

No limits on executive pay, after all

Paulson says, "All your dollars are belong to us!" Photo: AP

On September 24th, the New York Times reported Treasury Secretary Henry Paulson as saying "The American people are angry about executive compensation, and rightfully so. Many of you cite this as a serious problem, and I agree. We must find a way to address this in legislation without undermining the effectiveness of the program.” Paulson was ostensibly arguing that banks would rather go bankrupt than face these limits on the compensation paid to their top executives.

Soon thereafter, he capitulated and agreed to the limits, one of the few sticking points in Congress for a massively unpopular bailout bill. It seemed to me at the time that he agreed fairly quickly to this condition, but I chalked it up to his stated desire to get the bailout done with unprecedented speed. Turns out, he agreed to it because they had already figured out a way around the limits.

Today's Washington Post reports that during the tense bailout negotiations, a seemingly minor change took place:

But at the last minute, the Bush administration insisted on a one-sentence change to the provision, congressional aides said. The change stipulated that the penalty would apply only to firms that received bailout funds by selling troubled assets to the government in an auction, which was the way the Treasury Department had said it planned to use the money.

Now, however, the small change looks more like a giant loophole, according to lawmakers and legal experts. In a reversal, the Bush administration has not used auctions for any of the $335 billion committed so far from the rescue package, nor does it plan to use them in the future. Lawmakers and legal experts say the change has effectively repealed the only enforcement mechanism in the law dealing with lavish pay for top executives.

Is anyone even surprised with these revelations anymore? So now we know why Paulson decided not to use the auction mechanism after all, in favor of just giving the money directly to the banks. If there were auctions, then the big guys wouldn't get paid as much. Paulson couldn't do that to his old pals (who made $39 BILLION in bonuses alone last year), so he had to change the entire way the program worked. Luckily Congress gave him a bill that let him do whatever he wanted! As Barry Grey remarked during the original debate over executive compensation:

The universal mantra is the need for all Americans to “come together,” put aside their partisan differences and personal interests and accept the need for “sacrifice” in support of the common good—which just happens to coincide with the interests of Wall Street and the multi-millionaires and billionaires who control it.

But Paulson, in his weekend television appearances, was obliged to implicitly acknowledge that there is one segment of society that is not prepared to sacrifice a dime and will not hesitate to throw the country into a depression, if the alternative is the slightest diminution in its seven- and eight-figure compensation packages.

In spite of his intentions, Paulson’s comments demonstrate the utter fraud of the claims that the plan to place the national wealth at the disposal of Wall Street is driven by concerns for the well-being of the American people. His remarks reveal the most basic truth about American society: The interests of the overwhelming majority of the people are entirely subordinated to the money-mad strivings of a financial aristocracy.

The plutocrats call the shots. They determine public policy. They exercise an absolute veto on all decisions taken by the government, which is, in the final analysis, an instrument for the defense and advancement of their narrow and socially destructive interests.

The constant invocations of patriotism are purely for public consumption—a means of blinding the people to the class relations that dominate America.

Bad Times Draw Bigger Crowds to Churches

Bad Times Draw Bigger Crowds to Churches:

"...since September, pastors nationwide say they have seen such a burst of new interest that they find themselves contending with powerful conflicting emotions — deep empathy and quiet excitement — as they re-encounter an old piece of religious lore:

Bad times are good for evangelical churches."

Guess which emotion they feel more- "deep empathy" or not-so-"quiet excitement?" Consider these quotations from the article:

• “It’s a wonderful time, a great evangelistic opportunity for us."

• “I found it very exciting, and I called up that fellow to tell him so. We need to leverage this moment, because every Christian revival in this country’s history has come off a period of rampant greed and fear. That’s what we’re in today — the time of fear and greed."

So the message is that it's wonderful that there's massive unemployment, millions of people in foreclosure, and not enough food; it's all part of God's plan to bring people back to church. Well, I've said it before and I'll say it again- if this kind of sick and twisted god actually exists, I still would not worship him. Hunger and homelessness are up in a big way, and what god wants is your ass back in the seat? That sounds like extortion- not at all an admirable trait in a deity.

Instead of praying for better times, why not donate to a food bank, or do some other sort of charitable giving? It's like prayer because it helps you feel better, but it also has the added advantage of actually doing something to make the situation better.

How's this for "Transparency"?

Remember the early days, when the bailout was first sprung upon an unsuspecting public? We were treated to lies like this:

Henry Paulson: "We need oversight. We need transparency. I want it. We all want it."

Seemed pretty clear right? Of course, the only reason he said that was because people actually read his original three-page proposal which revealed what he really wanted (this is the full text of Section 8):

Sec. 8. Review.

Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.

So now, is anyone really shocked that not even a lawsuit will force them to be transparent?

The Federal Reserve refused a request by Bloomberg News to disclose the recipients of more than $2 trillion of emergency loans from U.S. taxpayers and the assets the central bank is accepting as collateral.

Bloomberg filed suit Nov. 7 under the U.S. Freedom of Information Act requesting details about the terms of 11 Fed lending programs, most created during the deepest financial crisis since the Great Depression.

...

“There has to be something they can tell the public because we have a right to know what they are doing,” said Lucy Dalglish, executive director of the Arlington, Virginia-based Reporters Committee for Freedom of the Press. “It would really be a shame if we have to find this out 10 years from now after some really nasty class-action suit and our financial system has completely collapsed.”

Consider also:

Bipartisan coalition of 75+ groups demand bailout transparency.

The three layers of oversight promised in the original bill is still not in place, despite spending almost all of the first $350 billion.

Economist: Paulson plan "truly idiotic"; shows a "complete leadership failure in Congress and the administration".

Corruption, horse-trading, or politics as usual?

The country seems to be shocked at the governor of Illinois, Rod Blagojevich, and his allegedly corrupt practices and subsequent arrest earlier this week. I would like to suggest that the only reason we call him corrupt is that he was doing it for money. Political horse-trading like this goes on all the time, but the only time we call a spade a spade is when there are large sums of money involved. As Chris Bowers at Open Left pointed out, there are several examples of Democrats offering to vote a certain way in order to get something that they desire in exchange.

While it is not illegal to threaten to switch voting habits if certain demands are not met, it is just as unprincipled as selling a Senate seat for money. In both cases, power is for sale for its own sake, prior beliefs and values be damned. Lieberman was threatening to start voting with Republicans on a number of issues that he previously did not if he was not granted more power. The same appears to be the case for these three Senate Democrats in New York. Power trumps values. Like Blagojevich, they are all demanding certain amounts of power before they will support your ideas.

And that's why the government is broken. There are no principles anymore, there is only "what can you do for me?" Moreover, corruption of the Blagojevich scale is not even that rare anymore, he was just dumber than most in getting caught on tape. As John Stewart pointed out on the Daily Show:

After noting in a segment 'for children' that 3 of the last 7 Illinois Governors have ended up in jail, Stewart explains that statistics show if you grow up to become the Governor of Illinois, you're more likely to go to jail than if you commit murder. Calling the job of Governor for the state of Illinois a "dead end" and "a ticket to nowheresville," he says if Blagojevich is convicted, that will total "50% who end up in jail" while "If you commit murder, only 48% end up in jail for their crime."

And all of this after running on an anti-corruption campaign.

Until his arrest Tuesday on federal corruption charges, the self-proclaimed "always lawful" Blagojevich had built a political career, in part, on fighting corruption. When he ran for governor, he touted his past as a state criminal prosecutor and promised to break away from politics as usual.

"A governor must be willing to take on the special interests, not carry their water," he said when he announced his candidacy for governor in 2001, at the North Side Chicago steel mill where his Serbian immigrant father once worked. "It means shaking up a system that serves itself instead of the people."

So I started thinking about others that have been accused or convicted of corruption or ethics problems in recent memory:

• Norm Coleman
• Sarah Palin
• Ted Stevens
• Michael Bloomberg
• Chuck Rangel
• William Jefferson
• Rep. Robert Ney
• Rep. Peter Roskam
• Jack Abramoff
• Duke Cunningham

And that's where I got depressed and stopped thinking about it. I thought maybe I was overstating things, and decided to turn to Wikipedia and see what the data said. Turns out there's a survey known as the "Corruption Perceptions Index", which measures "the degree to which corruption is perceived to exist among public officials and politicians". Countries are scored on a 10-point score, with 10 being perceived as least-corrupt. If you scroll down, the USA is about 20th on the list, with a score of 7.2. Our score has also been sliding down, from 7.6 in 2002, indicating that the perception of corruption has been steadily increasing since that time.

I'm not saying Blago ought to be given a pass, what I am saying is far more revolutionary. Professional politicians do not have our best interests at heart. We have ceded far too much control over every aspect of our lives to political "leaders" that are utterly divorced from the views of those that they are supposed to represent. As Lord Acton said, "Power tends to corrupt, and absolute power corrupts absolutely. Great men are almost always bad men." It's time for us to start taking some of our power back.

Everyone should be unionized?

In the midst of an unprecedented economic crisis, and massive unemployment I agree with the calls of some for greater unionization. It appears that Republic Window and Door workers will get what they have earned, as a result of their unionization and sit-in. This is one small demonstration of the power that exists when we, as workers, unite.

The workers are "very, very satisfied" with the agreement, said Mark Meinster of the United Electrical Workers union, which represents the employees.

"Hopefully this is an example for workers across the country that when things like this happen, you can step up, you can speak out, and you can win," he said.

The wealthy of this country have been exploiting us all for far too long, it's time that we finally start to demand some reciprocity, especially as they continue to get bailed out to the tune of trillions of dollars. Some interesting tidbits:

* from 1980 to 2004, while U.S. gross domestic product per person rose by almost two-thirds, the wages of the average worker fell after adjusting for inflation. (source)
* Over the three decades from 1972 to 2001, the wages and salaries of even those Americans at the 90th percentile (those doing better than 90 percent of their fellow citizens) experienced income gains of only 1 percent a year on average. Those at the 99.9th percentile saw their income rise by 181 percent over these years (to an income averaging almost $1.7 million). Those at the 99.99th percentile had income growth of 497 percent. (source)
* Since 1969, the share of aggregate household income controlled by the lowest income quintile (one-fifth of the population) has decreased from 4.1 percent to 3.6 percent in 1997, while the share to the highest quintile increased from 43.0 percent to 49.4 percent. Most noticeably, the share of income controlled by the top 5 percent of households has increased from 16.6 percent to 21.7 percent.


(source)

• To compensate for this loss of purchasing power, middle-class America has been forced more and more deeply into debt (see the chart above). Consumer debt has increased, and at an ever-faster pace. In 2003, revolving consumer debt was growing at 2.9% per year. By 2007, that number had more than doubled to a growth rate of 7.4%. This debt is part of the current crisis in which we find ourselves.

• Noam Chomsky: [It's quite a long quotation, feel free to skip this and meet me below for some more analysis. That being said, it's definitely worth reading!] That's part of the driving force. The other part of the driving force is the Washington Consensus, the neoliberal policies that for the last 25 years have been one of the most dramatic disasters in economic history. It won't come as a surprise to anyone that has studied economic history since the industrial revolution, that it is very striking that where these neoliberal policies have been pursued, particularly in South America, there has been a rapid decline in virtually all macro-economic measures: rate of growth, rate of productivity, etc. And also a rise in inequality. The same can be said of the United States, where the measures have not been applied with the rigidity of Latin America, but they have, to some extent, been applied for the last 25 years. And this has been a bleak period in US economic history. For 25 years real wages have been in decline for the majority of the population. The United States is the richest country in the world and, as you would expect, 25 years ago had the highest wages and shortest working week of any industrialized country in the world. And now that's been reversed. Now it has the lowest wages and the longest working hours of any industrialized country in the world. Salaries have remained the same, but working hours have increased, and inequality has just soared.

  Throughout the first phase of post World War II history, the 1950s trough the 1970s, we had rapid growth, but we had egalitarian growth. And it was growth of social welfare and it resulted in a rise of all the social indicators. And there was a healthy society. That changed in the period of 1970 to 1975. The social indicators began to decline and growth fell very sharply and inequality fell back to what it was in the 1920s. And for most of the working population, it is one of the worst periods in economic history. That's been mirrored throughout the world. In the regions where these policies have been pursued, there has been a very sharp decline in comparison to the previous 25 years. There has been growth and development in the international economy during that period, but the social benefits have been seen in regions where these neoliberal policies have been ignored. South East Asia has been a striking example. Now the World Bank and other institutions, have figures that try to obscure these facts by putting together things that are quite unrelated. They put together participation in trade, with adherence to the Washington Consensus. So, for example China undergoes very high growth by violating the principles of the Washington Consensus. They ignore the total picture by making the claim that China has a high growth rate and never mentioning that it's a result of violating the principles of Washington Consensus. But, if you look at the World Bank figures and take them apart, then what you find is that adhering to these neoliberal policies has been economically harmful, in a surprisingly consistent way. The truth is that violating the principles of the Washington Consensus has often been associated with very high rates of growth, but that is rarely mentioned. It is similar to the first 25 years after World War II, often referred to as the "golden age".

  But that's only part of the story: these neoliberal measures, quiet apart from economic consequences, were virtually designed as an attack on democracy. There has been a dramatic decline throughout Latin America for support of democratic systems. Not that people don't want democracy, but support has fallen for the parliamentary systems as they exist. That's been a decline that has occurred parallel to the imposition of neoliberal polices. It was in the design of these policies, at every point, to undermine democracy. For example the imposition of financial liberalization is undermining democracy by taking away the capacity of governments to control things that will have an impact on the population. They took away governments' capacity to make public policy. Neoliberal policies create a virtual parliament of investors and landlords that is not democratic and is not under the control of the population in a democratic manner. Democracy existed before the neoliberal years, in the post-war period, because capital controls could be imposed by governments. And that was a way of exercising democracy. Capital controls were imposed not just as a way of controlling capital but also to give governments space to carry out the development programs that their populations wanted. That was a way to exercise democracy. Things have change in the last 25 years, and they have not changed in a democratic way. I should say that these are staples of economic theory and economic history. They are not obscure. They are in all of the economic text books.

  The same can be said about privatization. There is no empirical evidence that privatization has any economic benefits. The evidence is just the opposite, especially with health care and social services. But privatizations do have the effect of taking decisions and control out of the public realm. It takes things out of democratic control and puts them in the control of unaccountable private entities. "Services" includes just about everything that people care about; health, resources, education and the environment, all the things that people care about. These are called "services". And then there is "trade in services", when you add on trade. This means transferring all the things in life into the hands of private enterprises. They are unaccountable and they are taking things out of the public arena. When that happens you can have a formal democracy, but there is nothing left with which to make decisions. The same runs true trough the rest of the neoliberal package. And it is all of these factors, along with the rising inequality, that is driving people to call for change.

It seems like the "little guy" gets exploited at every turn. So what can be done? Increasingly, unions are becoming an attractive alternative. Starbucks workers have even organized (by the way, they need your support). Unionization of Walmart employees is slowly moving forward. Perhaps seeing the victory of the workers of Republic Window & Door in Chicago will help more of us to realize that the poor and middle-class have much more in common with each other than we will ever have with the ultra-wealthy.

It's worth remembering that WE are the true productive members of society. You can see that in the current disconnect between the financial crisis and the conditions on Main Street. Trillions of dollars have been wiped from the financial system, but those are speculative dollars, not real ones. We are the ones that pour your coffee, we fix your heater, we work on your car. We don't depend on speculative dollars, we live on real budgets that impact our real lives. We are not the ones that get hurt when credit default swaps go bad, or Collateralized Debt Obligations are not as well collateralized as the banksters thought. At least, if things were fair, we wouldn't be. We could continue on about our life, shaking our head at the folly of it all. Instead, they still get millions in bonuses, spa vacations, and billions of dollars in bailouts, all while we get pink slips. The only way to combat this is to demand better alternatives, to demand solutions that work for more than just those at the top. The time has come to demand justice for all of us.