Obamanomics: Tax Job Creators, Bankroll Swindlers

“We have no problem with taxing hedge fund operators and leverageurs till they bleed from the ears, and we’ll even go along with a cap on bankers’ salaries (although we’d have preferred they be publicly flogged). But how could a plan that purports to stimulate the economy have overlooked the entrepreneurs who are the lifeblood of American prosperity? A logical answer is that the stimulus package is deliberately anti-capital, a vengeful and self-destructive act against every GOP president since Reagan. To the extent this is so, it could be a long, long time before the economy shows any signs of returning to health….”

Rick Ackerman  

Hampshire College’s Brave Anti-Occupation Students

“In the last 3 years I have several times declared hopefully that young people are going to lead us; and I have been premature. I did it at Columbia University in an article for New York Magazine in ’07, I did it at Brandeis University in The American Conservative that year too. On both occasions I was blown away by the diversity of the progressive student movement on campus: that identity politics meant nothing to these kids; Jews intermingled with Muslims and Asians in a cohesive manner, and no one gave a s**t.Well now I am saying the same thing about the Hampshire divestment and betting that I will be right. This is a shot that will be heard ’round the nation. It is no wonder that Dershowitz called the students in a threatening manner as soon as they had taken the action: Dershowitz and I recognize the huge symbolic meaning of this stroke. For years divestment had been stopped dead by then-President Lawrence Summers’s attack on it at Harvard, saying it was “antisemitic in effect if not intent,” or words similar, which caused rightthinking gentile faculty to steer away from the issue like a plague. Then it was stopped among the Protestant churches by endless legal wrangling, again with the threat of being labelled antisemitic hanging over their heads.

Those Protestant churches tabled and couldn’t adopt simple measures that limited the divestment to companies doing business in the Occupation! The evil occupation, with its crazy settlers and pogroms–and that’s all the Hampshire initiative applies to, the companies that helped to kill Rachel Corrie! So let us be clear, This is a huge moral stroke. And who is responsible: not Protestant churches or Middle East Studies professors, but an organization of committed students, many of them Jews, who will not be intimidated by anyone, their own administration or Alan Dershowitz. Bless them and honor them!

A few other observations must be made. According to one of those students, in this comment on Indypendent, when Hampshire College first divested from Apartheid South Africa years ago, “the Administration did what it could to distance itself from the situation then, too, with then-President Adele Simmons calling it a ‘big non-issue.'” And today when you visit Hampshire, they brag on that hammer blow! And this will happen again. We and Hampshire will look back on the bravery and independence of Hampshire students as we look back on the bravery of the Wilmot Proviso, or of Harriet Beecher Stowe, or of Congressman Abraham Lincoln when he introduced anti-slavery legislation in Congress in 1848– in these hammer blows of free and unafraid people, others were summoned to the great task at hand!

Again: Dershowitz knows this as well as I do. He is a great advocate. He knows he must stop this now, and blacken the Hampshire initiative, so that no signal goes out to others that It is OK to do this thing. But Dershowitz is too late. The students hung up on him and laughed. Generational forces are at work. He is 70 years old and is advocating for the evil settlement program that even the American government knows is a disaster, that even Gary Ackerman, the Israel Lobby’s main man in the House, or one of them, has lately condemned as settler “pogroms”  (language first employed by me, then later by Jeffrey Goldberg).

Dershowitz employed a traditional Jewish intimidation tactic, calling the Jews and reminding them of their loyalty to the Jewish family. But it didn’t work. These were Hannah-Arendt-Baruch-Spinoza Jews who feel loyalty first to the human family…”

From PhilipWeiss.org.

Comment:

Surely Jewish people aren’t the only ones who employ the “intimidation tactic of reminding people of their group loyalties”? Seems like I hear some of that from Indian friends whenever I write anything that “makes India/Indians look bad” to the West. It’s a natural concern and normally, I wouldn’t leap to the conclusion that there was “intimidation” involved at all, but knowing Dershowitz’s extremely abrasive ad hominem style of argument, there probably was in this case.

Jay Leno Plugs Barry Dyke’s “Pirates of Manhattan”

UPDATE:

Just to clarify:

I wrote and published pieces on Goldman Sachs from 2006-2010, based on research I did while trading in 2004-05, which is when I first saw material that implicated Goldman Sachs in manipulation on trading websites.

I tried to include more of this material in “Mobs,” when I was researching it in 2006-2007, but that was cut out by my co-author. The first (hard cover) edition of “Mobs” came out in fall, 2007, with the paper-backed edition out in 2009.

 

ORIGINAL ARTICLE

“Leno is referring to the fact that Barry Dyke predicted a major collapse of the U.S. financial system in June 2007 way before everyone else when “The Pirates of Manhattan” was first published.

Hampton, NH (PRWEB) February 5, 2009 — The Tonight Show host Jay Leno recently stated that author “Barry Dyke called it!”. Leno is referring to the fact that Barry Dyke predicted a major collapse of the U.S. financial system in June 2007 way before everyone else when “The Pirates of Manhattan” was first published….”

Comment:

Way to go, Barry!  Good friend, Barry Dyke (how’s that for name-dropping?) proves that “doing it my way” works. Barry self-published and made his book a best-seller all on his own – sans major reviewers or promoters. I’m glad to be one of those who recognized how important Barry’s work was – especially on Goldman Sachs, where he beat me to the punch getting a book out.  (My own writing on GS in “Mobs” got cut out for many reasons).  Knowing what a hard slog it’s been for him, I couldn’t be happier to see it. The major media is finally picking up on the people who really were telling it like it is.  Barry’s book was 10 years in the writing and he struggled on with it despite major personal setbacks that he describes in his introduction – everything from bankruptcy to divorce to surgery…

Check the book out at the Pirates of Manhattan website.

Global Games: Bio-tech Hype Makes Money For Agribusinesses

From the Center for Food Safety, a press release:

GENETICALLY MODIFIED CROPS FEED BIOTECH GIANTS, NOT THE POOR
Contacts: Bill Freese, Center for Food Safety, 202-547-9359 (North America); Nnimmo Bassey, Friends of the Earth Nigeria, +234 80 37 27 43 95 (Africa); Helen Holder, Friends of the Earth Europe Brussels: +32 474 857 638 (Europe)

Biotech Companies Exploit Food Crisis by Raising GM Seed and Pesticide Prices, Record Profits Projected Biotech Propaganda Distracts Attention from Real Solutions for Small Farmers

Washington D.C., February 11, 2009 – A new report released today by the Center for Food Safety and Friends of the Earth International warned that genetically modified (GM) crops are benefiting biotech food giants instead of the worldís hungry population, which is projected to increase to 1.2 billion by the year 2025 due to the global food crisis.

The report explains how biotech firms like Monsanto are exploiting the dramatic rise in world grain prices that are responsible for the global food crisis by sharply increasing the prices of GM seeds and chemicals they sell to farmers, even as hundreds of millions go hungry.

The findings of the report support a comprehensive United Nationsí assessment of world agriculture ñ the International Assessment of Agricultural Knowledge, Science and Technology for Development (IAASTD) – which in 2008 concluded that GM crops have little potential to alleviate poverty and hunger in the world. IAASTD experts recommended instead low-cost, low-input agroecological farming methods.

“GM crops are all about feeding the biotech giants, not the worldís poor,” said Nnimmo Bassey, executive director of Friends of the Earth Nigeria and chair of Friends of the Earth International.

“GM seeds and the pesticides used with them are much too expensive for Africaís small farmers. Those who promote this technology in developing countries are completely out of touch with reality,” he added.

“U.S. farmers are facing dramatic increases in the price of GM seeds and the chemicals used with them,” said Bill Freese, science policy analyst at the US-based Center for Food Safety and co-author of the report. “Farmers in any developing country that welcomes Monsanto and other biotech companies can expect the same fate – sharply rising seed and pesticide costs, and a radical decline in the availability of conventional seeds,” he added.

GM seeds cost from two to over four times as much as conventional, non-GM seeds, and the price disparity is increasing. From 80% to over 90% of the soybean, corn and cotton seeds planted in the U.S. are GM varieties. Thanks to GM trait fee increases, average U.S. seed prices for these crops have risen by over 50% in just the past two to three years.

Exploitation of the food crisis has been extremely profitable for Monsanto, by far the dominant player in GM seeds. Goldman Sachs recently projected that Monsanto’s net income (after taxes) would triple from $984 million to $2.96 billion from 2007 to 2010.

The exorbitant cost of GM seeds is not the only problem. The vast majority of GM crops are not grown by or destined for the world’s poor, but instead are soybeans and corn used to feed animals, generate biofuels, or produce highly processed food products consumed mostly in rich countries.

The report documents that nearly 90% of the global area planted GM crops in 2008 was found in just 6 countries with highly industrialized, export-oriented agricultural sectors in North and South America, with the U.S., Argentina and Brazil responsible for 80% of GM crops. The United States alone produced 50% of the world’s GM crops in 2008.

Despite more than a decade of hype, the biotechnology industry has not introduced a single GM crop with increased yield, enhanced nutrition, drought-tolerance or salt-tolerance. In fact, the biotechnology industry’s own figures show that 85% of all GM crop acreage worldwide in 2008 was planted with herbicide-tolerant crops. Herbicide-tolerant GM crops – chiefly Monsanto’s Roundup Ready varieties used with Monsanto’s Roundup herbicide – have increased overall use of chemical weed killers. Roundup prices in the U.S. have more than doubled in the past two years.

Meanwhile, biotech propaganda has obscured the huge potential of low-cost agroecological and organic techniques to increase food production and alleviate hunger in developing countries. The report mentions several such projects, such as push-pull maize farming, practiced by 10,000 farmers in east Africa. The enormously successful push-pull system controls weed and insect pests without chemicals, increases maize production, and raises the income of smallholder farmers….”

More at the Center for Food Safety

Activism: The Boston Tea Party

[Note: The Boston Tea Party’s 2008-2010 program consists of the Campaign For Liberty’s four points, endorsed by US Rep. Ron Paul (R-TX) and presidential candidates Chuck Baldwin (Constitution Party), Cynthia McKinney (Green Party), Ralph Nader (Independent), Bob Barr (Libertarian Party) and Charles Jay, the Boston Tea Party’s 2008 presidential nominee.]

1. Foreign Policy: The Iraq War must end as quickly as possible with removal of all our soldiers from the region. We must initiate the return of our soldiers from around the world, including Korea, Japan, Europe and the entire Middle East. We must cease the war propaganda, threats of a blockade and plans for attacks on Iran, nor should we re-ignite the cold war with Russia over Georgia. We must be willing to talk to all countries and offer friendship and trade and travel to all who are willing. We must take off the table the threat of a nuclear first strike against all nations.

2. Privacy: We must protect the privacy and civil liberties of all persons under US jurisdiction. We must repeal or radically change the Patriot Act, the Military Commissions Act, and the FISA legislation. We must reject the notion and practice of torture, elimination of habeas corpus, secret tribunals, and secret prisons. We must deny immunity for corporations that spy willingly on the people for the benefit of the government. We must reject the unitary presidency, the illegal use of signing statements and excessive use of executive orders.

3. The National Debt: We believe that there should be no increase in the national debt. The burden of debt placed on the next generation is unjust and already threatening our economy and the value of our dollar. We must pay our bills as we go along and not unfairly place this burden on a future generation.

4. The Federal Reserve: We seek a thorough investigation, evaluation and audit of the Federal Reserve System and its cozy relationships with the banking, corporate, and other financial institutions. The arbitrary power to create money and credit out of thin air behind closed doors for the benefit of commercial interests must be ended. There should be no taxpayer bailouts of corporations and no corporate subsidies. Corporations should be aggressively prosecuted for their crimes and frauds.

More  at The Boston Tea Party

Activism: Canadian Internet Journalist Fights Back

“This past June, then Industry Minister Jim Prentice introduced a bill on Parliament Hill that sparked debate across creative industries nationwide. Bill C-61, a reform on copyright legislation, could have potentially strangled the freedom of online journalists without them even realizing it. Fortunately, thanks to university professor, blogger and columnist Michael Geist, thousands were aware of the impending bill. When Geist heard of the proposal in December, 2007, he took to his blog, posted videos on YouTube and set up a Facebook group called Fair Copyright For Canada. Soon, Geist was everywhere, making appearances on CBC’s The Hour and TVO’s The Agenda. The bill didn’t survive with the October election, but the debate made many realize Canada needs to update its decade-old copyright legislation. And now Geist is leading the pack of journalists seeking fair copyright laws.

As writers increasingly find their print articles published online, Geist wants to clear the confusion around internet law and what it means for journalism. Legislation like C-61 would prevent journalists from effectively conducting research and news gathering, and would squelch our freedom of expression. While the government struggles to keep up with ever-evolving internet law, Geist continues to fight to protect the rights of journalists to conduct news gathering and keep the public informed. He is armed with two master’s degrees and a doctorate in law, and is the Canada Research Chair in Internet and E-Commerce Law at the University of Ottawa. His technology columns appear weekly in the Toronto Star and Ottawa Citizen. As both a journalist and lawyer, Geist sees an urgent need to protect Canadians’ rights to use the internet for freedom of expression. “It’s often citizens who are performing journalistic activities who are the first and sometimes the most authentic source of information,” says Geist. “People who are engaged in [journalism] ought to enjoy the protection that journalists traditionally enjoy.” Geist sensed that online freedom was about to be seriously threatened a couple of years ago.

In fall 2007, rumours swirled around Ottawa that Prentice wanted to introduce legislation for anti-circumvention laws. Anti-circumvention prevents the circumvention of Digital Rights Management software placed on digital files (such as music or Word documents) by copyright holders. Under the copyright act, journalists are exempt from infringement under the Fair Dealing provision for the purpose of news reporting. But with the proposed legislation “everybody becomes a criminal, or at least an infringer,” says Geist, “once they seek to pick that lock…..”

More by Lori Grady at Ryerson’s Review of Journalism

Financial Follies: How To Guard The Guardians

Apropos the Satyam case in India, fund manager Atim Kabra of Frontline Strategy writes: 

“We would be erring if to the cast of Raju brothers, their ‘independent directors’, the infamous auditors, the bestowers of corporate governance awards, we forget to add the collective conscience of the ‘fund managers and brokers’ who, in my opinion, had a fair inking of not all being well at Satyam. Any broker or fund manager worth his salt would have heard not only of the huge real estate parcels said to be owned by the Rajus but also of their extremely close political connections. They would have known of the phoenix like rise of Maytas and the lucrative contracts housed in these ‘Satyam Group Companies’. They would have had an understanding of the nature of real estate transactions in

India and the significant cash component which accompanies these transactions. Yet, they chose to turn a blind eye to the shenanigan, invested and traded in Satyam Computers, contributed to the enhancement of its market capitalization and ironically now profess shock at the lack of corporate governance at Satyam. While the financial community needs to introspect at its own doing and the propensity to turn a blind eye to the going ons in Corporate India, I believe that collectively, the financial community can be one of the most significant agents of change.  However, I worry that by the time change is implemented and percolates down the system, the same Satyam story might have been repeated in many companies in India and Satyam most certainly would not the last one to hit the can due to accounting fraud….”

Atim Kabra, with a blueprint for how to improve corporate governance. 

American Food Crisis Or Sustainable Farming?

“The proposals we’re discussing would increase employment opportunities in agriculture — sustainable farming will require more “eyes per acre,” and replacing fossil-fuel energy with human energy and ecological knowledge makes good economic sense. With the reduced need for the hoe or plow, and land management relying more on fire and grazing, we draw on the naturalist instinct in nearly all of us, rather than presenting farm work as nothing but the “sweat of the brow” amid “thistles and thorns.” This will be necessary to counter the longstanding denigration of the countryside and rural communities, which has been a feature of our so-called cosmopolitan culture.We’re seeing that on a small scale now, with more young farmers staying on the land, with creative new endeavors in community-supported agriculture. People recognize that life is more than working in a small cubicle and consuming in a big-box store. People are hungry for good food, and they’re also hungry for a good life. People are ready to explore what it would mean to come home, not to a romanticized vision of the past but to a sustainable future….”

Robert Jensen, “Is America on the Brink of a Food Crisis?” at Alternet

King Is Dead….Is King’s Dream Dead Too?

From activist Lenni Brenner:

(Brenner is the author of Zionism in the Age of the Dictators (1983) among a number of other works and writes frequently for publications from the Nation to the Jewish Guardian.

DECLARATION RE DR. MARTIN LUTHER KING’S BIRTHDAY, JANUARY 19,
AND BARACK OBAMA’S INAUGURATION, JANUARY 20th.

As if in celestial convergence, Martin Luther King’s birthday falls on the
eve of the inauguration of the nation’s first Black president. With the world
economy in free fall, amid spreading armed conflict, the classic question posed
from pulpits at this time – What would Dr. King do? – has never been more
urgent.  

January 19 and 20 are heavy with historical significance and contradiction.
Barack Obama proclaims that his presidency would be unthinkable were it not for
the civil rights struggle which King personifies. Yet he also hails John
Kennedy – who he knows criminally wiretapped King – as his role model. And is it
conceivable that King would be pleased with Obama after he broke his promise
to filibuster an electronic wiretapping bill if it included an immunity clause
for telecommunications companies that collaborated with Bush’s illegal
eavesdropping after 9/11?  

The New York Times correctly calls Obama’s orientation “center-right.” Never
an advocate of total withdrawal from Iraq, he called for the recruitment of
nearly 100,000 additional military, expanded war in Afghanistan, and more
aggressive US actions in Pakistan. In retaining Secretary of Defense Robert Gates
and other Republican Pentagon political appointees, Obama blurs the differences
between his foreign policy and George Bush’s. His United Nations ambassador,
Susan Rice, advocates “humanitarian” military intervention in Africa, and
Obama supports Bush’s latest US Africa Command (AFRICOM). He is silent on the
US-fomented war in Somalia.

Obama is also silent re the onslaught on Gaza, even as the Israeli embassy
justified it by distributing videos of his campaign statement: “If somebody was
sending rockets into my house, where my two daughters slept at night, I’m
going to do everything in my power to stop that. And I would expect Israelis to do
the same thing.”

Domestically, Obama has put his economic portfolio into the hands of Wall
Street hacks intimately associated with financial deregulation and the
plague-like spread of derivatives and other exotic “fictional capital” –- the witch’s
brew of meltdown — and backed Bush’s banker bailout.

Is it difficult to project what Dr. King’s politics would be, were he alive
today? Faced with an administration committed to expansion of a military
already as costly as the combined armed forces of the rest of the planet, King
would join — indeed lead — a principled, active anti-war opposition.  

King called the America of his day “the greatest purveyor of violence in
the world,” and his characterization remains apt. He broke with Lyndon Johnson’s
White House, as he saw the Vietnam War obliterating the “shining moment” when
it “seemed as if there was a real promise of hope for the poor – both black
and white – through the poverty program.” On April 4, 1967, King explained that
“America would never invest the necessary funds or energies in
rehabilitation of its poor so long as adventures like Vietnam continued to draw men and skills
and money like some demonic destructive suction tube.” Domestically, Obama’s
determination to put more military “boots on the ground” in multiplying
conflicts is an update of the “demonic destructive suction tube” King opposed.
He would doubtlessly view Obama’s military posture as “a war against the poor,”
as was LBJ’s war. 

Obama’s appointments have been made, his priorities amply recorded. Given
Obama’s declared politics, King would never grant a “honeymoon” season to an
incoming administration placing government economic levers in the hands of
plundering bankers diverting huge public wealth to the feeding of the dogs of war. He
became his day’s greatest “drum major” for social justice and peace, and we
have only one alternative before us. We call upon Americans and the world to
try to act now in Dr. King’s spirit and join us in opposing any and all imperial
administrations, in the media, in the voting booth and in the streets.

Signatories (as of January 19, 2009)

Lenni Brenner, Pat Bryden, Tom Condit, Lenore Jean Daniels, Ph.D., Michael Dickinson, Ghassan El-Kadri, Vera Alice Vasques El-Kadri,
Dieter Elken, Per Fagereng, John W. Farley, Dermot Ferry, Glen Ford, John Glackin, Robert Glaser, Patricia Gray, David Halpin, Dove and Dolphin Charity, Norma J F Harrison, Tuma Hazou, Stanley Heller, Edward S. Herman, Tom Lacey, Ronit Lentin, David Letwin, Claran Mc Clean, Colm McGinn, David McReynolds, Chuck Mohan, Tinoush Moulaei, Liz Mulford,  Judith Norman, Tolu Olorunda, Margaret Parrish, Ginger Pepper, James Petras, Millie Phillips, Karen Platt, Lila Rajiva, Roland Rance, Esther Rapoport, Mel Reeves, R. B. Riddle, Eugene E. Ruyle, Al Sargis, Tony Savin, Evalyn F. Segal, Martha Abu Shawish, Roger Sheppard, Roland Sheppard, Michael J. Smith, Kwame Somburu, William Steinsmith, Stuart Troy,  C. T. Weber, Abraham Weizfeld, Derek Wharton, Jebsen & Company (Hong Kong) Ltd., Joan Wiley

Wall Street Powerhouses Invested Alongside Madoff

“Primex Trading’s Dark Pool Operations

There has been much debate among Wall Street veterans as to why major European investment banks suffered serious damage from the Bernard Madoff Ponzi scheme while our biggest U.S. investment banks escaped unscathed.

For the past two decades, Wall Street watchers could count on four U.S. firms to land in the middle of every securities scandal. From Nasdaq price fixing to fake research to rigging the IPO markets to peddling toxic subprime assets, one could rest assured that Citigroup’s Smith Barney, Morgan Stanley, Merrill Lynch and Goldman Sachs would be heading the lineup. Their complete absence from the greatest Ponzi scheme in history raises the question: what did they know and when did they know it?

The answer may reside in a pentagonal structure created in 1999 to serve the interests of a Wall Street cartel.

On September 14, 1999, it was officially announced that Citigroup’s Smith Barney, Morgan Stanley, Merrill Lynch and Goldman Sachs had partnered with Bernard Madoff to compete head on with the New York Stock Exchange in a venture called Primex Trading.

Madoff had bought the rights to a new technology called Financial Auction Network (FAN) created by Christopher Keith, a 17-year veteran of technology creation at the New York Stock Exchange (NYSE). Mr. Keith had retired from the NYSE and started a technology think tank in lower Manhattan in the early 1990s called Exchange Lab. FAN was one of the early technology offerings and the rights to develop it were bought by Madoff. The firm that emerged was Primex Trading, a division of Primex Holdings. (Primex Holdings holds two patents and may be part of those secret Madoff assets the court won’t release to the public.)

In addition to harnessing the brains of Mr. Keith from the New York Stock Exchange, Primex hired Glen Shipway, the Executive Vice President of the over the counter stock market, Nasdaq, whose duties had included market surveillance of broker dealers like this gang of five.

The partners made a big splash in the press at the time, extolling altruistic intentions of getting better prices for their customers in an electronic version of the New York Stock Exchange. Here’s an excerpt from the New York Times on September 19, 1999:

“Primex is aiming to be an electronic version of the New York Stock Exchange. Participants will not only be able to buy and sell stocks at prevailing market prices, as they now do through many traditional and electronic exchanges, but also interact openly with one another — in effect, bargain — to find the best prices possible. ‘I think the fact four of the world’s largest securities firms have backed this system suggests that it brings something new and unique to our ability to obtain the best execution for our customers,’ said Bill Hart, a managing director in equity trading at Salomon Smith Barney.”

In reality, a very different motive was at work. One of the best kept secrets from the public is a benign sounding process on Wall Street called internalization. That’s where broker dealers like Madoff’s Primex partners match their customers’ buy and sell orders in-house rather than sending them off to the New York Stock Exchange or some other transparent stock exchange. The entities that engage in this trading process are called dark pools. (Recall that “pools” were the same secretive creatures that rigged the stock market leading up to the crash of 1929.)

While the investing public was being served up visions of Primex creating a more transparent and fairer pricing market mechanism, the goal for Madoff’s partners was to legitimize the highly questionable trading practice of internalization….”

— Pam Martens at Counterpunch.