Wednesday, June 8, 2011

The Bernanke Scandal: Full-Frontal Cluelessness

Robert Scheer's Columns,from trughdig.com
The Bernanke Scandal: Full-Frontal Cluelessness


Posted on Jun 7, 2011
AP / Alex Brandon

Fed Chairman Ben Bernanke testifies before the Senate Budget Committee in January.

By Robert Scheer

How I wish that Ben Bernanke would get caught emailing photos of his underwear-clad groin. Otherwise we don’t stand a chance of reversing this administration’s economic policy, which is shaping up to be every bit as disastrous as that of its predecessor.

Indeed, the Fed chairman’s much anticipated remarks on Tuesday take one back to the contemptuous indifference of a Herbert Hoover to the public’s suffering: Bernanke dismissed the wobbly economy with its anemic 1.8 percent first-quarter growth as merely “somewhat slower than expected.” The rise in unemployment to 9.1 percent was “some loss of momentum.”

The problem with Bernanke is that he is utterly clueless as to the stark pain and fear endured by the 50 million Americans who have experienced, or face the prospect of, losing their homes. His remarks reflected the insularity of a ruling-power elite that is magnificently impervious to the damage that Bernanke’s policies in the current and past administration helped inflict on what used to be called the American way of life. This is a man who assured us there was no housing crisis, while his policies at the Fed encouraged the mortgage securitization swindles that caused the meltdown of the economy.

His full statement stands as a classic example of the limits of economic language as morally descriptive: “Overall, the economic recovery appears to be continuing at a moderate pace, albeit at a rate that is both uneven across sectors and frustratingly slow from the perspective of millions of unemployed and underemployed workers.” Frustratingly slow—how about going bat nuts with fear over not being able to make your mortgage payment and losing your home? Tell it to workers who must contend with stagnant wage rates and sharply rising gas and food costs as better jobs and therefore consumer demand move offshore. Bernanke takes low wages to be reassuring news on what he sees as the all-important inflation front: “ ... Subdued unit labor costs should remain a restraining influence on inflation.”

At home we are experiencing a social tsunami with the disappearance of a middle-class workforce of stakeholders who were assumed by observers as varied as Thomas Jefferson and Alexis de Tocqueville to be the very bedrock of America’s experiment in freedom. Many with jobs are struggling desperately to get by as the average workweek and pay scales fall, and countless workers find themselves settling for rewards well below their skill sets. Even those slim pickings are denied to the unemployed. Bernanke concedes: “Particularly concerning is the very high level of long-term unemployment—nearly half of the unemployed have been jobless for more than six months.”

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The jobs that have been created by our large multinational corporations, like the bailed-out GE, are primarily outside of the country, as Bernanke admitted: “Many U.S. firms, notably in manufacturing but also in services, have benefited from the strong growth of demand in foreign markets.” Those foreign gains, fueled by far more successful anti-recession policies in China, Brazil and Germany, have driven up demand and prices abroad in the areas of petroleum, food and key construction commodities.

Bernanke, speaking at a monetary conference in Atlanta, conceded that “the depressed state of housing in the United States is a big reason that the current recovery is less vigorous than we would like,” and that the “U.S. economy is recovering from both the worst financial crisis and the most severe housing bust since the Great Depression.”

But he offered not a word as to how the severe effects of that housing bust might be mitigated. Not a word about assisting people to stay in their homes. Yet he claimed that the relief that the Fed provided to the bankers by buying up more than $1.2 trillion of the toxic mortgages those bankers had created “has been accomplished, I should note, at no net cost to the federal budget or to the U.S. taxpayer.”

This is the Big Lie technique at work, employed by a huge banking lobby that stresses the direct cost of the TARP program while ignoring other programs that will not be paid back, as well as the additional cost of $5 trillion to the national debt that a proper Fed policy could have avoided.

The record is by now indelibly clear that the economic approaches pursued by George W. Bush and Barack Obama, with Bernanke playing a key role in both administrations, can be most accurately summarized as a policy of government of the bankers, by the bankers, and for the bankers.

Assurances of stability to the financial markets, meaning the ability for companies to borrow government funds at a near-zero interest rate without giving anything back to the public in the form of mortgage relief or job creation, have been the overwhelming goal. But even by that standard, as the latest statistics on job creation and construction starts attest, the government’s effort is not working. Putting the bankers first has represented pushing on a string, what Paul Volcker condemns as a “liquidity trap,” a situation in which taxpayer money has been made available to major corporations that invest in job creation that benefits foreigners instead of U.S. workers. Now that’s an obscenity we should be concerned about.

Tuesday, June 7, 2011

With Humala's win, Peru turns to the left

With a former army officer winning the presidency, Peru joins Brazil, Bolivia and Venezuela in tilting to the left.
Greg Grandin Last Modified: 07 Jun 2011 18:43


Add Peru to the list of Latin American countries that have turned left. On Sunday, Peruvians voted in a second-round run-off ballot and elected Ollanta Humala, a 48-year old former army officer, president. This is Humala’s second try for the office. In 2006, he came close to winning, but WikiLeaks cables reveal that Peru's establishment politicians put aside their differences and beat a path to the US embassy, asking for help smearing Humala as a Peruvian Hugo Chávez.

WikiLeaks also reveals that that same year the Mexican right and the US State Department worked together to defeat the populist presidential candidate Andrés Manuel López Obrador, leading many in the US to gloat that the "left turn" in Latin America had run its course.

Humala's victory suggests otherwise. Here's just some of what has happened since 2006: In Bolivia, Evo Morales presided over the ratification of a new social-democratic constitution and was re-elected as president in 2009 with 64 per cent of the vote. In Ecuador, Rafael Correa also easily won reelection and ratified a new constitution that guarantees social rights and puts tight limits on privatization. Recently, Ecuadorians likewise voted on ten progressive ballot initiatives, passing them all. They included the strict regulation of two blood sports: banks are now banned from speculation and bulls can no longer be killed in bull fights.

And last year in Brazil, the trade unionist Luiz Inácio Lula da Silva left office the most popular politician on the planet, handing over the presidency of one of the world's largest economies to Dilma Rousseff, a former urban guerrilla and economist who vows to continue to try to make Brazil a more humane and equal nation.

All of these national left political projects—from Venezuela to Uruguay—have their problems and shortcomings, and are open to criticism on any number of issues by progressive folk. But combined, the Latin American left can claim a remarkable achievement: It has snatched the concept of democracy away from neoliberals and the corporate privateers who came close to convincing the world that democracy equals deregulated capitalism and returned the term to its more humane, sustainable definition. In Latin America, democracy means social democracy. So considering the otherwise bleak global landscape, the return of the Latin American left, now well into its second decade, is cause for great cheer.

What does Humala's victory mean for Peru? Most importantly in the short run, it has halted the return of Alberto Fujimori's style of death-squad neoliberalism. Humala's opponent was Fujimori's daughter, Keiko, who pledged to free her jailed father, who was convicted of murder, kidnapping and corruption.

In the long run, many Peruvians, particularly those outside of Lima, voted for Humala because they have seen little benefits from the country's celebrated macroeconomic performance over the last decade, driven by the high price of silver, zinc, copper, tin, lead and gold—which comprise sixty per cent of the country's exports.

Over thirty per cent of Peru's thirty million people live in poverty and eight per cent in extreme poverty. In rural areas, particularly in indigenous communities, more than half of all families are poor, many desperately so. Humala has promised to address this inequity with a series of pragmatic measures—a guaranteed pension to people over 65; expanding health care in rural areas, including the construction of more provincial hospitals; an increase in public sector salaries, to be paid for with a windfall profit tax on the mining sector.

In terms of foreign policy, Humala's election is another victory for Brazil in its contest with Washington for regional influence. If Fujimori had won, she would have aligned Peru politically with Washington and economically with US and Canadian corporations.

Humala, in contrast, will tilt toward Brazilian economic interests. Indeed, the Peruvian historian Gerardo Rénique said that the election, while representing an important victory for democratic forces, could also be understood in part as a contest between Brazil and the US over Peruvian energy and mineral resources. In this perspective, one could say that it didn't matter who won the Peruvian election: the Amazon lost.

Here then might be the question that determines the success of Humala's presidency: As he tries to put into place his "growth with social inclusion" agenda, will he be able to balance the conflicting interests of his Brazilian allies and the social movements that elected him, many of which are fighting for sustainable development and local control of resources?

In addition to reviving social democracy, the other major accomplishment of the renewed Latin American left has been to dilute the entrenched racism that has defined the continent for centuries. In Bolivia, Ecuador, Chile, Brazil, Venezuela and other countries, Native Americans and peoples of African descent have led a remarkable, if still incomplete, democratization of politics and culture. Peru, with its 45 per cent Amerindian population, has largely been left out of this process. In fact, some say that racism has deepened over the last decade, with the mining boom wreaking havoc on the dark-skinned Andean countryside and Amazonian lowlands while financing the rise of luxury condos and malls in white, middle-class Lima.

So however hard it might be for Humala to take on international capital—Peru's stock market plunged 12 per cent the day after his election—an equally difficult challenge will be to tackle Peruvian racism. "El Indio Humala" lost Lima by a wide margin, driven mostly not by fears he would turn Peru into Chávez's Venezuela but into neighboring Indian-governed Bolivia. Candidate Humala did his best to deflect these concerns.

President Humala, however, will have to confront this racism directly if he is to succeed in democratising Peru. After all, even before all the votes where in, tens of thousands of his supporters began to fill the country's plazas, including Lima's. They raised high the rainbow wiphala flag that became ubiquitous in Bolivia, during the rise of the social movements that brought Evo Morales to power. Today, it is waved throughout the Andes as a symbol of indigenous pride and sovereignty.

Greg Grandin is a professor of history at New York University and a member of the American Academy of Arts and Sciences. He is the author of a number of prize-winning books, including most recently, Fordlandia: The Rise and Fall of Henry Ford's Forgotten Jungle City (Metropolitan 2009), which was a finalist for the Pulitzer Prize in History, as well as for the National Book Award and the National Book Critics Circle Award.

A version of this article first appeared in The Nation magazine.

The views expressed in this article are the author's own and do not necessarily reflect Al Jazeera's editorial policy.

Veni, Vidi, Vici, Weiner

NY Democratic Congressman Anthony Weiner richly deserves this moment of public humiliation for his self-inflicted wounds. He's not only a gross narcissist and hubris-infused schmuck, but a coldly reactionary member of the APAIC amen chorus...and there's even more.

A lot of liberals see him as a progressive champion, standing up to the Republican onslaught, particularly because of his defense of Medicare.

But besides his crude, racist (you have to hear him action as I did when he spoke at a public meeting at the New School, debating former Rep. Baird from Washington State.) apologies for Israeli ethnic cleansing and land theft, he's a supporter of the Bush/Obama wars in Iraq and Afghanistan and a champion of FBI domestic spying on legal political activities, and also a supporter of the Patriot Act.

No tears for this scumbag.

Yes, but it's different

Syrian armed forces fire on unarmed peaceful protesters, many killed and wounded. US and Israeli government condemn the Syrian government.


Israeli armed forces fire on unarmed peaceful protesters, many killed and wounded. US and Israeli government condemn the protesters.

Mass, peacful protest scares Israeli government more than any armed uprising

From Max Blumenthal's web site

On Naksa Day, unarmed resistance sends Israel into violent contortions
On 06.06.11, By Max Blumenthal


Last week, I interviewed Rami Zurayk, an agronomist at the American University of Beirut and Palestinian refugee rights activist, about the planning of the May 15 and June 5 demonstrations in Lebanon. Zurayk described to me a meeting that took place in Beirut before the Fatah-Hamas unity deal took where the May 15 movement planned its strategy. All Palestinian factions were represented, however, each leader received only a single vote on the motions being deliberated. “It was unbelievable to see the Hamas guy who represents 100,000 people have the same power as an independent person from the camps,” Zurayk told me. “In this setting, the lines began to blur and you could not tell who was from what faction any more. In the past, it was impossible to get people from the camps to agree on rallying under one flag and one symbol. But in this meeting everything changed.”

Zurayk said the refugees and their Lebanese allies (the involvement of Lebanese youth and civil society also reflected a new trend) resolved to carry out a mode of resistance that was “pacifistic in nature.” “Like the demonstrations in Tahrir Square and throughout Tunisia, the [May 15] demonstrators were audacious, tenacious and most of all, repetitive,” he explained. “Repetition is why Tahrir worked — you put your body on the line against repression. So that became our modality.” Zurayk described scenes he witnessed of refugee youth rushing the Israeli controlled frontier at Maroun al-Ras with nothing but Palestinian flags in their hands, and of the Israeli response: soldiers shot the youth dead, killing one almost every five minutes.

After an international outcry, Israel blamed the Syrian regime and Iran for the demonstrations at the frontiers (it had little to say about the killings it committed in Maroun al Ras, Lebanon, however). I asked Zurayk about the Israeli claim. He remarked, “No amount of Syrian money can make people run to a border knowing they will be shot at. If the Syrians are being clever, that is their consideration. But do you really think Palestinians need Syrians to make them want to return to Palestine? They are living in camps with sewage running openly, with no jobs and no opportunities.”

While evidence that the Syrian regime directly organized the demonstrations is scant to non-existent, the regime clearly enabled the demonstrators to reach the fence by neglecting to repel them with its own troops. Not only does this fact fail to excuse Israel’s wanton killing, it highlights the irony of Israel and its allies condemning the Syrian regime for its brutal repression of Syrian citizens rising up against it (of course, the whole world should deplore Assad’s draconian rule), while at the same time demanding that the regime repress the Palestinian refugees who are protesting for their own internationally recognized rights.

Yesterday, on June 5, the commemoration of Naksa Day, Palestinian refugees and their supporters returned to the Israeli controlled frontiers to protest the 44th anniversary of the occupation. Protests swelled at the Qalandia checkpoint between Ramallah and Jerusalem, where according to Joseph Dana Israeli forces tested out new and unusual weapons on demonstrators, and spread to Nablus, where Israeli forces fired teargas shells at a group of people protesting the occupation by planting trees. The most intense protests took place at the Quneitra crossing near the occupied Golan Heights, where Israeli forces gunned down at least 20 unarmed demonstrators as they approached the frontier fence (be sure to watch the video at the link). “We could have taken the easier route of uncontrolled fire, but we decided to operate in a very limited manner,” an army spokesman said afterward, reassuring the world that Israel could have killed hundreds more, but chose to pick off about 20 unarmed civilians in the name of restraint.
Would you buy a used car from this man? "The Syrian Chalabi" Farid Ghadry claims demonstrators at Quneitra were in fact "Syrian farmers" paid $1000 by Assad to show up

Would you buy a used car from this man? "The Syrian Chalabi" Farid Ghadry claims demonstrators at Quneitra were in fact "Syrian farmers" paid $1000 by Assad to show up

In the hours following the bloodshed, the Israeli response grew increasingly contorted. Army spokespeople claimed the demonstrators “were responsible for their own deaths,” claiming they stepped on landmines. No evidence of landmine deaths was provided by the unnamed military sources, only conjecture. Next, Israel turned to its favorite Syrian cut-out in Washington, Farid Ghadry, an AIPAC member and discredited “serial entrepreneur” who is widely regarded as the Syrian version of Ahmed Chalabi — Ghadry actually met Chalabi in Richard Perle’s living room. In a statement published on the website of his astro-turfed Reform Party of Syria, Ghadry claimed that the protesters at Quneitra were not actual Palestinian refugees, but impoverished “Syrian farmers” who had been paid $1000 each by the Assad regime just to show up, and $10,000 to die. Ghadry claimed he gleaned the information from “intelligence sources close to the Assad regime in Lebanon.”

Israeli military spokespeople appear to be pushing Ghadry’s press release, because the canard immediately showed up in a report by Yediot Aharnoth’s Hanan Greenberg, one of the many military correspondents in the Israeli media who dutifully report any claim by any flack in an olive uniform as though it were a substantiated fact. “Syrian Opposition: Anti-Israel Rioters paid $1000,” read the Yediot headline. But the story has not graduated beyond the pro-Israel blogosphere, probably because Ghadry and his shell of an opposition group — it is quite clearly a neocon front organization — have no credibility in Syria or anywhere else.

Leaving aside the allegations about Syria’s role in the demonstrations on the Israeli occupied frontiers of Golan, it is worth questioning whether Israel actually wants to see Assad step down. Yaakov Katz, another military correspondent who serves as a tool for Israeli securitocrats and army spokespeople, making him occasionally useful as a window into the army’s thinking, wrote in the Jerusalem Post in March:

As Israel watches the ongoing demonstrations in Syria against President Bashar Assad, its greatest concern for the moment is the uncertainty that change in Syria would bring to the region. Israel has gotten used to Assad and he is almost predictable.

A new regime, led by a new actor, would likely be unpredictable and when considering the large arsenal of long-range Scud missiles Syria has stockpiled over the years and the accompanying chemical warheads, Israel needs to be considered…

But when Israel looks at Syria it also sees the possible development of a new enemy, far more radical and extreme than the Assad they are familiar with. While not as strong and large as the Egyptian military, the Syrian military has obtained some advanced capabilities which, if the country falls apart, could fall into terrorist hands or be used by the country against Israel…

In the meantime, Israeli intelligence services are cautious in trying to predict how the riots in Syria will end and whether Assad will be prepared to cede power as easily as Hosni Mubarak did in Egypt.

By this logic, Israel is trying to calibrate its approach to the anti-Assad protests, taking into account the fact that the opposition movement is likely to be more antagonistic to it than Assad has been. The military-intelligence apparatus will determine how and when Israel responds, seeking to derive maximum gain from Syria’s internal crisis. But since the Arab Spring arrived on Israel’s doorstep, Israel’s strategy has depended on lethal violence and little else. And it may be that it has no other strategy, that there is no Plan B. Meanwhile, as I write, the demonstrators who camped out at Quneitra are waking up.

Wednesday, June 1, 2011

Coldplay promotes 'Freedom for Palestine' song

from Ynet, 6/1/11

(Video) British band's Facebook page invites fans to listen to music video created by various artists in cooperation with pro-Palestinian organizations

VIDEO - Coldplay for Palestine – a message on the popular British band's official Facebook page invites fans to listen to the song "Freedom for Palestine" – a musical collaboration initiated by the OneWorld organization.

A message posted on the band's wall reads: "Some of our friends are involved in OneWorld's new 'Freedom for Palestine' single - find out more at http://www.waronwant.org/freedomoneworld/. "

Only in America: Revived JIm Crow Goes National

During the Apartheid days of legalized racism after the end of Reconstruction, which lasted into the 1960s, restricting the right to vote was an important pillar of white supremacy. The Reconstruction era was the post-Civil War period of 1865-1877 when the South was under martial law and an attempt was made by the federal government (led by the "Radical Republicans" in Congress, who were champions of equality...hard to believe now, right?) to enforce equal rights for the freed slaves. During this period blacks were elected to local state and federal offices, including the US Senate.

After the withdrawal of Union troops from the South and the end of Reconstruction, the Southern states that had comprised the former Confederacy enacted laws to prevent blacks from voting (among many other things). It would have been too flagrant and would have openly violated the Constitution and Federal law to simply say that only white men could vote.

The method used was the poll tax and the literacy test. Making registering to vote cost money eliminated most potential black voters. For those who actually could pay the tax there was the literacy test. Illiterate whites always passed, while college educated blacks always failed. Eliminating these bars to voting in the South was one of the accomplishments of the 60s civil rights movement.

Since Nixon's presidency the Republican Party, opting for the "Southern Strategy," has become a Southern based, white supremacist organization (with a few prominent Uncle Toms like Clarence Thomas Colin Powell or Condi Rice for cover). But demographics are tipping against them as their reliable white, older stalwarts shrink in number. What to do?

True, the barring of convicted felons from voting helped out, since it works out that most convicted felons are black. But it's not enough.

Figuring they can't get away with poll taxes or literacy tests (not yet anyway) the latest way to whiten and conservatize the vote is the voter ID scam. For years rightists have yelled about stopping "voter fraud." This obviously does exist here and there, but in fact the serious fraud has been from the right. Consider the previous two stolen Presidential elections and the flagrant partisan manipulation of the vote count and the use of security-free electronic voting machines by Republican state governments in Florida and Ohio.

"Voter Fraud" is a synonym for the offense of "voting while being non-white." An obvious flaw in our great whiteocracy...err, I mean, democracy. One solution to stem the surging horde of darker skin voters is the ID law.

The fired-up white reactionary base will show up at the polls, acceptable ID in hand. But others will forget, or not have a driver's license, or not quite meet the standards being enforced by some racist election official. Poor whites are less likely to have up-to-date, designated IDs as well. Since poor white voter might even not vote for Republicans, they can qualify as non-whites who shouldn't be voting.

State voter ID laws have been gaining ground over the years in Republican run Southern states over the last few years. Now, with the new 2010 crop of Republican governors and state legislators across the country, the trend is going national. Ohio, Indiana, Michigan and other states have enacted or are inacting laws that try to prevent the "wrong" people from voting. Democracy is a great thing, huh?

Of course restricting the franchise has been a time honored tradition in our fair land. From the start only white, male property owners could vote. It took decades of popular struggle to expand the franchise to get to a place where there could possible be a reasonable approximation of fairness and democracy.

Now that "somewhat" democratic system just won't do. Sigh, it's such a struggle to "maintain election security" these days. But some white man...I mean somebody's got to do it.