Citibank predator will be the next Treasury Secretary

Barack Obama, the Nobel Laureate, has now officially presented Jack Lew to be his next Treasury Secretary. Lew, currently Obama’s Chief of Staff, would replace Timothy Geithner, a tool of big finance capital. Can we expect Lew to act in the general interest? No, he too promises to be a tool of big finance capital:

President Barack Obama’s choice [of Lew] to lead the White House budget office oversaw a Citigroup unit that profited off the housing collapse and financial crisis by investing in a hedge fund king who correctly predicted the eventual subprime meltdown and now finds himself involved in the center of the U.S. government’s fraud case against Goldman Sachs.

Lew also broke a Graduate Student’s union while working for New York University and before betting against American citizens while at Citigroup.

Obama intends to sell rotten fish to the ‘lesser people’

The New York Times, stenographer of the powerful, reports that:

As he prepares to meet with Congressional leaders at the White House on Friday, aides say, Mr. Obama will not simply hunker down there for weeks of closed-door negotiations as he did in mid-2011, when partisan brinkmanship over raising the nation’s debt limit damaged the economy and his political standing. He will travel beyond the Beltway at times to rally public support for a deficit-cutting accord that mixes tax increases on the wealthy with spending cuts.

I bet Obama wants to protect his political standing more than he wants to protect the economy. Of course, I might be wrong about this. Obama could sincerely believe the conventional wisdom which maintains as dogma that federal budget deficits harm the economy and cutting social programs will spur growth. Yet I just cannot convince myself that Obama is anything but a dedicated class warrior for a class to which he does not belong.

Quote of the day

In Obama’s America, each day is Halloween. The “lesser people” (Alan Simpson) should be afraid, very afraid! Why? Uncle Sam is bankrupt. He lives merely on the kindness of strangers. Only painful actions can remedy this situation.

Uncle Sam, you see, has long suffered from Affluenza. While the condition is often mistaken for a state of healthy well-being, the illness can be terminal. There are limits. They need to be respected. Austerity looms. The open question before Americans today: What kind of austerity will we have? The common answer amounts to this: Uncle Sam’s Affluenza would be fatal but for the remedies which a public commitment to fiscal austerity can provide.

The medicine is harsh and drastic, but necessary.

Or, so it is often claimed by a large fraction of America’s political and economic elite. Bob Urie, on the other hand, points out that:

The scare tactics being used to cut social insurance depend on the public’s misunderstanding of several related issues. In the first, the U.S. isn’t ‘broke’ because it can create money as needed — ask yourself: how were the bank bailouts funded? Next: what is an ‘entitlement’ when existing government policy overwhelmingly benefits the rich through favorable tax treatment, cost-plus government contracts, Federal Reserve bailouts and government guarantees of the banks. ‘Free markets’ have nothing to do with how the wealthy became so. The fight over ‘entitlements’ is over how government expenditures are allocated, not over their ‘scarcity.’

Urie suggests that the rich have prevailed in the democratic class struggle and now wish to deepen and intensify their exploitation of the “lesser people,” using the federal state and its fiscal situation as their hammer:

Social Security has an income ‘cap’ of $110,000 above which no deduction is made. A billionaire who became rich by sending jobs overseas — by firing and lowering the wages of labor, pays a smaller proportion of his or her income into Social Security than does the worker whose wages have been reduced. And by reducing the wages of labor, workers are left with less to pay in to these social insurance programs through payroll taxes. The problem with Social Security and Medicare is that a small group of connected plutocrats have ‘entitled’ themselves to far more of what labor produces. How often has the deficit ‘crisis’ been raised when there is a war to be fought for multi-national oil companies or a corporate welfare scheme like the bank bailouts to be paid for?

And this all ties back to Mr. Obama’s Affordable Care Act — if he and his corporate supporters were truly interested in fiscal discipline they would have pushed for far less costly ‘Medicare for all.’ Instead Mr. Obama pursued a deal with private health insurers that includes (sic) a ‘profit’ above the cost of a government program. Those wanting to argue the political infeasibility of Medicare for all are now confronted with a ‘liberal’ Democratic President who believes he can cut the programs that most of us have paid into under known terms for decades. If doing this is politically feasible while building a rational public health care system isn’t, we are truly doomed.

Doomed? Yes….

Ultimately Mr. Obama, like his ‘opponent’ Mitt Romney, is but an apparatchik in a class war launched by the rich against the rest of us. Left out of the contrived nonsense about an ‘entitlement’ society is who exactly is entitled. Were the government spending the rich live off of under the knife there would be no argument of scarcity — we have the wars, the bailouts and corporate welfare to prove it. But social insurance programs stand between over one hundred million of our citizens and destitution. And these are programs we have collectively paid for — they aren’t a ‘gift’ as the rich and their servants in government would have us believe.

Even the ‘gifts’ of income transfers, support for education and public transportation, Medicaid, subsidized housing, occupational training, works programs, etc. are not lacking in social benefits which directly and indirectly improve the quality of life enjoyed by every American. Every American would benefit from a fair and humane society, from a better standard of living. Such a society serves a common and public good. Who, after all, wants to watch the homeless die on the street for want of food and medical care? How might the United States compete with the emerging Asian economic powers when its education system, long the envy of the world at large, falters because of a lack of fiscal and political support? Who wants to bring children into the world when they will intimately know insecurity and want?

But the Nobel Laureate Americans just reelected wishes to create neither a fair nor humane society. He is a system politician who serves his various masters. The latter are cruel and greedy. Americans of the lesser kind along with the world at large deserve much better than Barack Obama. They truly need a man much better than him.


The new austerity

Congressional Republicans have been working hard to cut SNAP funding (Food Stamps). As we know, Vice Presidential candidate Paul Ryan has worked very hard on this matter, having made his name nationally with his draconian budget proposal. While the Republican effort to cut Food Stamp funding is unsurprising, their effort remains disturbing nonetheless given the severity and length of the economic crisis which emerged in 2008 and given the looming food crisis. To be sure, the food crisis directly ahead of us will be a consequence of the 2012 drought. The existence of the drought belongs with the other effects produced by global warming, an issue on which the Republicans have an irrational position. As more Americans find themselves jobless or food-deprived and while the morbidity attributable to food-shortages will surely increase because of inflating food prices and food shortages, the Republican Party wants to intensify the deprivation many Americans will suffer by cutting Food Stamp funding.

What the Republican Party wants to impose on America is not a sound fiscal regime but an intense and risk-laden class war.

Mitt Romney picks Paul Ryan to be his running mate

Is it shocking that Romney picked a Koch Kreature such as Rep. Paul Ryan for this job? No!

Quote of the day

Bob Urie describes the politics of economic predation thusly:

For forty years the rich and connected, the ruling class, have used their representatives in government to take exactly what they wanted. Tax cuts, executive payouts and stock dividends were paid instead of promised pension contributions. Social institutions such as schools have been turned into cash cows for connected capitalists who have no intention of educating our children. Environmental standards have been gutted in return for promised jobs that never materialized. And while the ruling class has taken what it wanted without apology, the chattering class — liberals and progressives, has acted as if it’s at a debate club meeting.

Ironically, bond “king’ Bill Gross of PIMCO makes a (Keynesian) point that many clever economists looking at the issue have not grasped — the West’s bet that financial returns leveraged on the ‘real’ economy — actual goods and services, could rise forever, are coming unwound. With finance capitalism having impoverished the customers needed to keep itself going, available rates of return on investment in the real economy don’t justify making that investment. This is why corporations that have taken an increasing proportion of GDP in recent decades are sitting on piles of cash. In the aggregate, they’ve taken it from their customers who can no longer afford to buy their products. It’s also why the Fed’s QE (quantitative easing) remains a pathetic scam—keeping interest rates low when there is no loan demand (because borrowers have no faith in earning a return in the real economy) only drives financial speculation.

Paging Michał Kalecki!

Paul Krugman on ALEC

ALEC is the acronym of the American Legislative Exchange Council, a self-proclaimed non-partisan think tank which drafts legislation which is often made into law by the various states. For instance, ALEC wrote for and promoted the “kill at will” or “stand your ground” legislation that recently resulted in the Trayvon Martin killing. As a consequence of its efforts in this matter, ALEC has become a focal point for the Justice for Trayvon Martin movement. ALEC has earned this critical attention for the Martin killing and for much else, including Scott Walker‘s attack on the state of Wisconisn.

Krugman’s description of ALEC is both accurate and critical in intent:

What is ALEC? Despite claims that it’s nonpartisan, it’s very much a movement-conservative organization, funded by the usual suspects: the Kochs, Exxon Mobil, and so on. Unlike other such groups, however, it doesn’t just influence laws, it literally writes them, supplying fully drafted bills to state legislators. In Virginia, for example, more than 50 ALEC-written bills have been introduced, many almost word for word. And these bills often become law.

Many ALEC-drafted bills pursue standard conservative goals: union-busting, undermining environmental protection, tax breaks for corporations and the wealthy. ALEC seems, however, to have a special interest in privatization — that is, on turning the provision of public services, from schools to prisons, over to for-profit corporations. And some of the most prominent beneficiaries of privatization, such as the online education company K12 Inc. and the prison operator Corrections Corporation of America, are, not surprisingly, very much involved with the organization.

What this tells us, in turn, is that ALEC’s claim to stand for limited government and free markets is deeply misleading. To a large extent the organization seeks not limited government but privatized government, in which corporations get their profits from taxpayer dollars, dollars steered their way by friendly politicians. In short, ALEC isn’t so much about promoting free markets as it is about expanding crony capitalism.

ALEC — the well-funded defender and promoter of crony capitalism, desiccated democracy, political opacity and unaccountability as well as the socio-political environment which nurtures economic predation. In the last instance, it appears that Trayvon Martin was just unlucky prey for ALEC and some of its tools (George Zimmerman, the Florida state legislators linked to ALEC who passed
Florida’s Stand Your Ground law, etc.). But it is wise to keep one’s attention on the fact that Trayvon Martin was prey because the most Americans are prey.