IMF: G-20 Fiscal Stimulus On Target

In the news:

The IMF says the G-20 fiscal stimulus will reach its 2% target.

Bloomberg reports on the figures spent so far:

“The G-20 countries will spend $820 billion on stimulus measures in 2009, up from a March estimate of $780 billion, and will spend $660 billion in 2010, the fund estimated.

The IMF also revised its forecast for budget deficits in G- 20 countries as a result of fiscal expansion. Today’s report calculates that budget deficits in the G-20 this year will increase by 5.5 percentage points of gross domestic product relative to 2007 and 5.4 percent in 2010. In March, the fund forecast a 4.7 percentage-point rise this year and a 5.1 percentage-point jump next year.

Strauss-Kahn said yesterday that governments should start to discuss “exit strategies” from the emergency spending once the crisis passes.

The fund’s estimate for financial-sector support also increased today to 32.1 percent of GDP, up more than 3 percentage points from the March estimate….”

My Comment (check back for more):

Domininique Strauss-Kahn, a member of the Socialist party and a former finance and economy minister in  Lionel Jospin‘s “Plural Left” government became the new managing director of the International Monetary Fund on September 2007, replacing Spain’s Rodrigo de Rato.

Interesting things to note about Strauss-Kahn:

  1. He’s part of the European Council on Foreign Relations, launched in October 2007 (i.e. just after DSK became IMF chief), which in an expression of pan-Europeanism in world affairs. Rubbing shoulders with DSK, according to Source Watch are such notable globalists as George Soros (Chairman of the Open Institute), Stephen Wall (Chairman of the influential PR firm Hill & Knowlton, advisor to Tony Blair), and Timothy Garton Ash (whose influential book, The Magic Lantern, cheered on the 1989 revolutions in Eastern Europe). Note: Hill & Knowlton was the outfit that concocted the story about Iraqi soldiers killing babies that became a provocation for the 1991 Gulf War.
  2. Strauss-Kahn has been linked to the financial scandal around ELF Aquitaine, a state-owned oil giant through which former President Francois Mitterand allegedly channeled money to Germany’s Christian Democrats. Strauss-Kahn’s wrong-doing was apparently less serious than some of the fraud and corruption with which other French government officials and company heads were charged (including money-laundering, influence peddling, falsification of documents, and bribery)
  3. Money from the ELF oil company, as well as from the Taiwan frigates scandal, passed through “unpublished accounts” at  Clearstream Banking, the clearing division of Deutsche Bourse, based in Luxembourg. The ELF affair and the Taiwan frigates scandal were the two major financial scandals that hit France in the 1990s. And in both, Clearstream was a platform for money-laundering and tax evasion.

Good Friday, 2009

 Reconciliation

Siegfried Sassoon, November 1918

“When you are standing at your hero’s grave,
Or near some homeless village where he died,
Remember, through your heart’s rekindling pride,
The German soldiers who were loyal and brave.
Men fought like brutes; and hideous things were done;
And you have nourished hatred harsh and blind.
But in that Golgotha perhaps you’ll find
The mothers of the men who killed your son.”

John Gatto on The Bartleby Project

Thanks to Sunni Maravillosa  for posting this great piece, The Bartleby Project,  by John Gatto.

The Bartleby Project

By the end of WWII, schooling had replaced education in the US, and shortly afterwards, standardized testing became the steel band holding the entire enterprise together. Test scores rather than accomplishment became the mark of excellence as early as 1960, and step by step the public was brought, through various forms of coercion including journalism, to believe that marks on a piece of paper were a fair and accurate proxy for human quality. As Alexander Solzhenitzyn, the Nobel Prize winning Russian author, said, in a Pravda article on September 18, 1988, entitled “How to Revitalize Russia:”

No road for the people [to recover from Communism] will ever be open unless the government completely gives up control over us or any aspect of our lives. It has led the country into an abyss and it does not know the way out.

Break the grip of official testing on students, parents and teachers, and we will have taken the logical first step in revitalizing education. But nobody should believe this step can be taken politically—too much money and power is involved to allow the necessary legislative action; the dynamics of our society tend toward the creation of public opinion, not any response to it. There is only one major exception to that rule: Taking to the streets. In the past half-century the US has witnessed successful citizen action many times: In the overthrow of the Jim Crow laws and attitudes; in the violent conclusion to the military action in Vietnam; in the dismissal of a sitting American president from office. In each of these instances the people led, and the government reluctantly followed. So it will be with standardized testing. The key to its elimination is buried inside a maddening short story published in 1853 by Herman Melville: “Bartleby the Scrivener.”

I first encountered “Bartleby” as a senior at Uniontown High School, where I was unable to understand what it might possibly signify. As a freshman at Cornell I read it again, surrounded by friendly associates doing the same. None of us could figure out what the story meant to communicate, not even the class instructor.

Bartleby is a human photocopy machine in the days before electro-mechanical duplication, a low-paid, low-status position in law offices and businesses. One day, without warning or explanation, Bartleby begins to exercise free will—he decides which orders he will obey and which he will not. If not, he replies, “I would prefer not to.” To an order to participate in a team-proofreading of a copy he’s just made, he announces without dramatics, “I would prefer not to.” To an order to pop around the corner to pick up mail at the post office, the same: “I would prefer not to.” He offers no emotion, no enlargement on any refusal; he prefers not to explain himself. Otherwise, he works hard at copying.

That is, until one day he prefers not to do that, either. Ever again. Bartleby is done with copying. But not done with the office which employed him to copy! You see, without the boss’ knowledge, he lives in the office, sleeping in it after others go home. He has no income sufficient for lodging. When asked to leave that office, and given what amounts to a generous severance pay for that age, he prefers not to leave—and not to take the severance. Eventually, Bartleby is taken to jail, where he prefers not to eat. In time, he sickens from starvation, and is buried in a pauper’s grave.

The simple exercise of free will, without any hysterics, denunciations, or bombast, throws consternation into social machinery—free will contradicts the management principle. Refusing to allow yourself to be regarded as a “human resource” is more revolutionary than any revolution on record. After years of struggling with Bartleby, he finally taught me how to break the chains of German Method schooling. It took a half-century for me to understand the awesome instrument each of us has through free will to defeat Germanic schooling, and to destroy the adhesive which holds it together—standardized testing…..”

by John Gatto

My Comment

I once wrote the libretto for a one-act opera about Bartleby composed by a friend of mine at Catholic University.  Unlike John Gatto, I always related to Bartleby and understood it because my first education was in India.

Education in the liberal arts was terribly rote-like in India in the 1980s. Long lists of figures to memorize. Map boundaries that had to be drawn from recollection. Senseless lists of obscure kings and their completely fungible achievements.  Venkatappa I built 40 highways, 500 hospitals and 35 colleges. Krishnayya III built 35 roads, 502 colleges, 25 temples. Chandravarma XX conquered the Marathas or Rajputs or whoever in 807 AD…etc., etc. Not much in the way of ideas. The whole thing was like a long catalog. Lists of the building materials (limestone, gypsum, white marble) used for various famous mosques, monuments, temples – none of which I’d ever seen, since traveling in India was difficult and expensive for middle-class families. Nehru’s Five-Year Plans, every dam and hydel project, with the exact monetary figure for each one.

We’d copy the whole thing onto a large piece of brown wrapping paper and then memorize it in sections until we could reel it off without a flaw.  Some of the girls took a few – shall we say – chemical stimulants to pull off this feat. The week after our exams, we would all be flat on our backs with exhaustion, fifteen pounds lighter, and hardly any more enlightened than before our labors.  The next term, we’d go back to “bunking” class (playing truant) for the first few weeks to make up for this torture.

There  was also a lot of long-hand copying of notes, because photocopy machines were nonexistent in our college and books were precious when you were living in a hostel. I copied scores of T. S. Eliot poems into a long notebook. In another I copied essays about Jane Austen. We took notes copiously in the classroom, although our lecturers were often less informed about things than we were. When things got boring, the more practical girls took to crocheting long scarves or eating lunch surreptitiously.

The whole thing was calculated to destroy any intelligence or interest in the subjects we were studying. It was a long, medieval exercise in mental gymnastics.

Amazingly, many of us ended up no worse intellectually than people who had had the finest undergraduate training.

But it was in spite of what we went through, not because.

New York Times Shills For AIG

Boo-hoo. Poor AIG employees are suffering unfairly from the public outrage over executive bonuses.

Look, we know these guys aren’t the culprits. The bad guys are too powerful (Hank Greenberg & Co.) or have skipped town.

So, yes, we know that the letter writer isn’t the  problem. BUT….

He and his colleagues ARE senior people who worked at AIG  while rampant fraud/crime was prevalent at other divisions. Did any of them say anything or do anything about it? AIG was involved in repeated infractions of the laws, over decades – a lot of which had already been exposed to the public eye or was being prosecuted.  These guys didn’t know? Give me a break. And sez who the other divisions did nothing shady? How much do we really know?

Even if they themselves didn’t do a thing wrong, in light of their company’s centrality to the whole financial crisis, they should have had enough decency to have refused their bonuses.  Where’s their public spirit?

Yes, the whole bonus fracas is a distraction and purely symbolic. But symbols are important. And people are understandably outraged.

Instead,  we get this rather narcissistic letter in the Times that tells a single personal story.

Dear me, senior managers at a major financial firm work 12-14 hours, do they?

So do a lot of people who don’t get that kind of compensation.

Tough. There’s a serious problem and everyone has to contribute what they can, especially the people directly involved in the crisis.

Notice how the NY Times has been playing the bonus story.

Read this story by Allen Salkin

He says AIG rage isn’t healthy – chill it, you yokels.  Interesting. I checked through Mr. Salkin’s archives to find out if he’d ever commented about politics so directly. But no. The only time since 2000 Salkin ever had anything to say about politics was recently – to try to douse rage over AIG and to defend their executive salaries (you need 500k to live in New York, he says here).

Thousands of people in the financial industry were killed in the 9-11 attacks. President Bush went on a rampage in Iraq that killed thousands of US servicemen and women and mutilated tens of thousands of them, in addition to killing over a million Iraqi  civilians and reducing the country to near rubble in many areas. It was, arguably, a genocide. Since the 1990s, the financial industry in New York has created huge bubbles of fraud and crime that have destroyed the life savings, income, credit, and productivity of  millions of people and firms all over the globe and has set off what looks like a global depression that could last for years. Did Allen Salkin at any time tell any of the frenzied speculators, corrupt regulators, and slavering real estate salesmen who pushed all this on the public to take a yoga class and chill? Did he tell them that lying, cheating, swindling, cosmic looting and mass murder are “not healthy”? No, I don’t recall he did.

Had New York journalists been doing their duty ( a central discipline necessary for practitioners of yoga) in the past two decades, I doubt the world would be in this mess.

Selective high-mindedness isn’t reason speaking. It’s servility to power masquerading as spirituality. Don’t fall for it.

The outrage over the bonuses was a distraction, yes, but it symbolized for struggling working class and middle-income people what’s wrong in the let-them-eat-cake world of the financial elites. To treat their outrage (which was also carefully orchestrated by the administration, by the way) as simply populist feeling gone mad is strangely and suspiciously selective.

Full disclosure: Salkin called me for comments for his piece. I said roughly what I said above. He didn’t use those comments.

PS: Nice to see Karl Denninger thinks along the same lines.

I have no idea who Denninger is but his take on things is almost identical with mine (dollar contrarian, psyop-savvy).

PPS: I note that Matt Taibbi wrote a post on this same letter and posted it on Alternet the day of this blog post.

Bringing Water to Villages in Haiti

The 2008 Templeton Freedom Award winner, Deep Springs International a Pennsylvania group that coordinates the work of NGOs (which provide point-of-use water treatment technologies that are relatively inexpensive – about $3 to $80), microfinance institutes (which provide money to train the poor and to help them start businesses), and local schools and institutions (which usually don’t focus on water treatment).

Deep Springs has a number of ways you can help them, from donating, to buying items on their page, to changing your search engine to

Good Search and iGive.

Remember that gold mining is one of the worst offenders in using up water. So if you do hold physical gold (I don’t and it’s one of the reasons I don’t), remember you may be contributing to water problems in those areas and have some responsibility to help where you can.

A Call To The Plagiarized

If you are a writer, blogger, or journalist whose work has been used without attribution, distorted, plagiarized, or stolen, I would be interested in hearing from you.

All letters should include a brief description of what happened and a way to contact you.

If you post on this blog, please post anonymously and I will contact you at the email that my admin panel displays.

Leave the Police State While You Can…

“Some time between 9/11 and now America became a police state. I cannot pinpoint the tipping point because the last several years are a blur of laws and policies that were passed so quickly and in such volume that no one could track them, let alone provide analysis. Even lawmakers didn’t read what they were passing. Moreover, I am not sure how to define “a police state” as opposedto a quasi one…so pinpointing is a term of accuracy that doesn’t apply. But, like pornography, I know a police state when I see it and I see everytime I glance State-side. And the collapse of the American dollar has not even occurred yet. When that happens — and it will be as swift as the mortgage collapse — the fear and panic generated could well allow/encourage the establishment of one of the worst totalitarian states the world has seen in a developed nation.

People who value their freedom and safety should leave…if possible. Having said this, I cannot fault those who stay to be near family and friends or a business that took a decade to establish. Nor can I blame anyone who says “Hell, no!” and draws a line against surrending their freedom on the soil of their birth. Hell, I have all those urges warring within me. But I don’t think it is wise to heed them. I think it is wise to GET OUT and fight for freedom from comparative safety. Get your assets out, get your family out, get your body out of the reach of the United States government. ….”

Wendy McElroy, “Leave the police state that is America” via Sunni Maravillosa

GenV Entrepreneurs Light Up Indian Village

“One of the biggest problems faced by Indian villages is scarce electricity to power light bulbs. Electricity is provided only for a very few hours and only during day time. Hence, children are unable to study at night and have to resort to using lanterns, which can contribute to pollution related ailments.

To provide a solution, we came up with an idea of using tractor batteries as an energy source to light 9-12W CFLs. At night, the tractors are not used and they can be used to light CFLs.

One-twelfth of the battery is consumed to use 1 CFL for 4 hours. The tractor’s battery then gets recharged during day time when it runs on the fields or is used for other agricultural purposes. Thus, the net is that we are not consuming any additional power to light up the CFLs on the days that the tractor is used.

We implemented this idea successfully in 17 homes in our village and this was of great help to the students. The whole setup cost was INR 135 (for wires, DC CFL and circuit board).

The advantages of this system are:

  1. Reduction of pollution by using CFLs instead of bulbs and lanterns: 240,000 liters of CO2 per month and 2,450,000 kJ of heat per month.
  2. Improvement in academic performance of students.
  3. Better health for users by reducing Asthma, ENT and Eye problems.
  4. Cost Savings for farmers and rural students, and for the Government.
  5. Increased lifespan of tractor battery.”

Shailesh Upadhyay and Ujala Shankar
More here at GenV Campaigns.

State Sovereignty Movement Gaining Steam

“As more governors declare their opposition to the Stimulus Bill — which is now estimated to include more than $1 trillion in unfunded mandates for the states above and beyond the initial $800 billion cost — more and more state legislators across the nation have been introducing bills to assert state sovereignty under the 10th Amendment in an effort to assert the rights of their citizens and the authority of state governments against unwarranted interference by the federal government….”

Dave Nalle, Republican Liberty Caucus, February 20, 2009