http://groups.yahoo.com/group/libertyunderground/message/3893

*MASTERS OF ECONOMIC CORRUPTION EXPOSED


*
**

*"A report released today by US Senator Bernie Sanders (I-Vt.) has
revealed the names of 18 former and current directors from Federal
Reserve Banks who directly benefited from financial bailouts after the
2008 crisis. The Reserve directors worked in banks and corporations that
collectively received over $4 trillion in bailout money allocated by the
Federal Reserve," begins a piece at Common Dreams
<http://www.commondreams.org/headline/2012/06/12-9>.
*

*But wait-- shouldn't this be a major headline at all of our mass media
sites?  Oops, that would be too revealing, going against the major
propaganda in the Land of the Free.
*

*The Federal Reserve system, composed of banksters who secretly award
themselves low interest or no interest loans they turn around and invest
in high interest paper, while controlling the money supply and leaving
us peasants on the hook for it, is about as corrupt as any financial
system we could imagine at /LUV News/.  Maybe putting the Mafia in
charge of the economy would be worse, but we're not so sure.
*

------------------------------------------------------------------------
*TO LEAK OR NOT TO LEAK, THAT IS THE QUESTION


*
**
*With President Obama generously leaking secrets to the /NY Times/ and
others in order to make himself appear to be a great warrior in
convincing the corporate media-duped public to vote for him, as Glenn
Greenwald has so intricately documented, all the while savagely
prosecuting those who leak secrets to expose our government's human
rights violations, war crimes, corruption and other embarrassments, he
is walking a dangerous tightrope.

Dan Froomkin says this morning
<http://www.huffingtonpost.com/dan-froomkin/white-house-leaks-obama-administration_b_1590950.html>
that Obama's outsourcing the leak investigation to the Department of
Justice is a "cowardly ducking of responsibility," showing how Obama
might instead stop the leaks if he so desired.

Michael Hastings says the path Obama has chosen to investigate the leaks
may be fraught with peril
<http://www.buzzfeed.com/mhastings/could-leaks-sink-the-obama-white-house>,
leading to the next Whitewater scandal as Republicans seek to widen the
investigation into whatever will bring ruin to Obama.

Can Monica Lewinsky be standing by in case she's needed?  One thing we
may count on-- our government is not going to do anything in the public
interest-- there's no campaign financing bribes
<http://luvnews.info/Bribes.htm> for that.
*
**
------------------------------------------------------------------------
*ANOTHER DAY, ANOTHER WAR


*
**

*"The US military said Tuesday it planned to help the Philippines
monitor its coastal waters as Manila faces an escalating dispute with
China over territorial claims," begins a piece in French news
<http://sg.news.yahoo.com/us-military-help-philippines-monitor-coastal-waters-225526152.html>
this morning.  For those who haven't been paying attention, this is
another step in renewing the old Cold War with Russia and China, as an
excuse to award more billions to the Nuclear Mafia for their major role
in financing our elections.
*

**

------------------------------------------------------------------------

**Despite the pretense of "free press" in the Land of the Free, we get
only a slanted opinion from our mass media.  Capitalism and the
capitalists dominate and control the dictionaries, textbooks, daily city
newspapers, TV stations, nearly all of the radio stations, cable
companies, satellite companies, publishing houses/magazines by volume,
in short, all but a smidgeon of print and electronic information.

To protect the ruling Forces of Greed <http://luvnews.info/FOG.htm>
(FOG), responsibilities for crimes are largely delegated to corporations
which cannot be imprisoned or executed, no matter how many people they
poison, electrocute, mutilate or murder in the pursuit of profit at any
cost.  Should a prosecutor get a wild notion of taking one of the FOG to
court, they should be advised that the FOG make the laws, and the laws
are pretty much air tight.  Their go-fers in the White House and
Congress sit up and roll over on command, providing backup when
necessary, should a new law be needed.
**

**In the 1930's Al Capone and Adolph Hitler identified as capitalists,
and both made it clear they despised communists (Hitler by putting them
in the death camps long before he got to the Jews).  Henry Ford and
other industrialists greatly admired Hitler and supported his efforts
(Ford provided thousands of trucks used in the invasion of France).
Modern capitalists closely adhere to Capone's "You can get much farther
with a kind word and a gun than you can with a kind word alone."**

**The first love of our ruling FOG is fascism, but Hitler gave the word
such a bad connotation that they now choose to be fascists who go by the
euphemism "capitalist."  When you control the dictionaries, words mean
whatever you want them to mean, and many meanings have changed over the
decades to cover up the creeping fascism-that-is-not-named.

Part of the indoctrination of Americans from birth is the demonization
of the word socialism, seen by the ruling FOG as a means for the masses
to redistribute their wealth through an outbreak of the dreaded
democracy.  And it is /their/ wealth-- all of it.  Don't take my word
for it, ask them.

Paul Street has a piece, following, which goes beyond the economic
propaganda, defining our dilemma, and giving us a road map out of our
dire straits, should we choose to organize and struggle in that
direction  --Jack Balkwill

**
**The Real Problem With Obama's "Rosy Claim"**
<http://www.zcommunications.org/the-real-problem-with-obama-s-rosy-claim-by-paul-street>


****
**by Paul Street**

****
******It is interesting and chilling to observe how U.S. corporate media
helps nudge the nation's rancid and plutocratic political culture ever
further rightward with seemingly innocent and innocuous word and phrase
choices that are chock full of reactionary meaning. Starting in mid 2009
and well into last year, for example, it became commonplace for U.S.
reporters and news-readers to almost reflexively refer to the
arch-plutocratic right-Republican, corporate-backed, and classically
Astroturf "Tea Party" phenomenon as a "populist," "grassroots,"
"anti-establishment," "independent" and "conservative" social and
political "movement" against the "big government" agenda of the
supposedly "liberal" and even "left"-leaning Obama administration.
**

**All of these descriptions were egregiously inaccurate and false, but
this hardly stopped them from reigning in the dominant media's' coverage
and commentary -- even creation -- of the Tea Party phenomenon. That
coverage and commentary helped check the possibility of progressive
policy change when the Obama administration enjoyed Democratic
majorities in the Congress. It also helped create an historic right
Republican sweep in the mid-term Congressional elections of 2010. [1]
**

**"The Problem with That Rosy Claim"
**

**Look, for another example, to a recent Associated Press (AP) story by
veteran AP correspondent Andrew Taylor. Titled "Fact Check: Obama Off on
Thrifty Spending Claim," Taylor's report argues that  Obama is
misleading the public when he claims on the campaign stump that "Federal
spending since I took office has risen at the slowest pace of any
president in almost 60 years."
**

**"The problem with that rosy claim," Taylor writes, "is that the Wall
Street bailout is part of the calculation. The bailout ballooned the
2009 budget just before Obama took office, making Obama's 2010 results
look smaller in comparison. And as almost $150 billion of the bailout
was paid back during Obama's watch, the analysis counted them as
government spending cuts."
**

**Barack Obama's campaign boast (if that's what we want to call it)
sparked Taylor to undertake an investigation that claims  to discover
that "All told, government spending now appears to be growing at an
annual rate of roughly 3 percent over the 2010-2013 period, rather than
the 0.4 percent claimed by Obama...." By Taylor's calculation, federal
spending rose 10 percent ("much of which is attributable to Obama") in
2009 and 8 percent in 2010." Then came slower spending growth over
2011-2012 -- something that "reflects the influence of Republicans
retaking control of the House and their budget and debt deal last summer
with Obama." [2]
**

**The Vicious Austerity Circle
**

**Is Obama wrong to claim that federal spending has risen at the slowest
rate since the Eisenhower years during his tenure in the White House?
Taylor never actually engages that historical question. My sense is that
the president's claim is in fact technically false but that this is
completely irrelevant. Washington in the Age of Obama remains in
neoliberal mode, privileging tax cuts for the rich and their
corporations and a giant corporate-welfarist military budget over
anti-poverty social expenditures and stimulus measures. The austerity
drive in Washington and many U.S. state governments is supposed to be
all about cutting debt and deficit, but the refusal of policymakers to
increase taxes on the grossly under-levied rich and corporations suggest
what its really about:  manufacturing a deficit panic as a pretext for
dismantling social programs and rolling back public workers' wages,
benefits, and union rights.
**

**The "free market"' theory behind this policy reality holds that making
wealthy elites wealthier makes the rest of us richer too since it is the
rich who seek out marketing opportunities and then invest to create
jobs. That theory is totally false, as the last three plus decades of
slow U.S. economic growth and the ongoing Great Recession show. "Trickle
down economics" doesn't work. It can have no positive outcomes in the
absence of polices that (contrary to neoliberal doctrine) that make the
moneyed class deliver higher investment and share the benefits with --
and put spending power in the hands of -- non-affluent people, who spend
a far higher portion of their income than do the rich.[3]  The best way
for a government to drive economic expansion -- and to end a recession
-- is for it to spend in ways that put significant purchasing power in
the hands of lower and working class people. "In an economic downtown,
like today's," the neo-Keynesian Cambridge economist Ha Joon Chang
notes, "the best way to boost the economy is to redistribute wealth
downward, as the poorer people tend to spend a higher proportion of
their incomes. The economic-boosting effect of the extra billion dollars
given to the lower-income households will be bigger than the same amount
given to the rich through tax cuts." [4]
**

**As John Maynard Keynes noted more than seven decades ago, "The boom,
not the slump, is the right time for austerity." "Even if you have a
long-run deficit problem," liberal neo-Keynesian economist and /New York
Times/ columnist Paul Krugman notes, "slashing spending while the
economy is deeply depressed is a self-defeating strategy, because it
just deepens the depression."
**

**Further:  "As many economists have pointed out, America is currently
suffering from a classic case of debt deflation: all across the economy
people are trying to pay down debt by slashing spending, but, in so
doing, they are causing a depression that makes their debt problems even
worse. This is exactly the situation in which government spending should
temporarily rise to offset the slump in private spending and give the
private sector time to repair its finances. Yet that's not happening. "[5]
**

**The real "problem[s] with [Obama's supposedly] rosy claim" is that
cutting government spending is the last thing a responsible head of
state should be boasting (accurately or not) about having done in the
middle of an epic recession. The real problem is that the dominant
"mainstream" political culture has been pushed so far to the right by
business interests (including the reality-shaping mass media, a critical
capitalist asset to say the least) that government acts to deepen the
crisis with austerity. A related problem is the president's failure, the
media's failure, and the broader political culture's failure to make key
distinctions between different types of government expenditure --
between those that simply reward financial and corporate parasites for
bad behavior (i.e., the record-setting Bush-Obama Wall Street bailouts)
and those (like social welfare and public works programs) that would
actually reduce poverty and increase effective demand and growth.
**

**"Everything Else We're Talking About Won't Matter"
**

**Not that we want growth per se -- simple economic expansion to
generate jobs as such. The looming environmental crisis shows that we
are rapidly approaching the Earth's environmental tipping point[6] --
the end of our planet's capacity to carry growth safely (for the lives
of humans and other species) under the current carbon-addicted system of
endemic pollution and climate change. Given modern capitalism's deep
sunk-cost fixed capital investment in the eco-cidal petroleum-addicted
model of growth[7] -- a model that promises to generate a whole new
generation of deadly and costly resource wars in "the race for what's
left" (Michael Klare)[8] -- the obvious existential demand these days is
for massive government spending on jobs programs dedicated to the
post-carbon (and post-nuclear) ecological retro-fitting and
re-conversion of the American (and global) economy and society:
industry, agriculture, diet, transportation, homes and offices
(facilities) and more. Noam Chomsky put it very well in a recent, widely
cited essay: **

****

**"there are two dangerous developments in the international arena,
which are a kind of shadow that hangs over everything ...There are, for
the first time in human history, real threats to the decent survival of
the species."
**

**"One has been hanging around since 1945. It's kind of a miracle that
we've escaped it. That's the threat of nuclear war and nuclear weapons.
Though it isn't being much discussed, that threat is, in fact, being
escalated by the policies of this administration and its allies. And
something has to be done about that or we're in real trouble."
**

**"The other, of course, is environmental catastrophe. Practically every
country in the world is taking at least halting steps towards trying to
do something about it. The United States is also taking steps, mainly to
accelerate the threat. It is the only major country that is not only not
doing something constructive to protect the environment, it's not even
climbing on the train. In some ways, it's pulling it backwards."
**

**"And this is connected to a huge propaganda system, proudly and openly
declared by the business world, to try to convince people that climate
change is just a liberal hoax. 'Why pay attention to these scientists?'"
**

**"We're really regressing back to the dark ages. It's not a joke. And
if that's happening in the most powerful, richest country in history,
then this catastrophe isn't going to be averted -- and in a generation
or two, everything else we're talking about won't matter. Something has
to be done about it very soon in a dedicated, sustained way."[9]
**

**How to "solve the deficit" -- and put millions of modern capitalism's
structurally redundant human beings to socially useful work? Save the
planet for humans and other living things. End the petro-wars/empire and
tax the rich with extreme prejudice to pay for the Green Transformation
that is urgently required if we are going to have any chance of a decent
and democratic future.
**

**Just to be clear, I do not believe that transformation (required for
human survival) can be achieved under the profits system that Keynes was
proud of saving and to which the neo-Keynesians Krugman and Chang
necessarily retain allegiance[10] That system amounts at the end of the
day to a socio-pathological and unelected dictatorship of capital,
creating a deep and deadly "democracy deficit" that poses a far greater
threat to humanity than the fiscal deficit leading politicians of both
political organizations (hardly even real parties anymore) endlessly
prattle on about. But that is a conclusion that can only become
widespread common sense -- as it must -- through struggle and experience
and with the help of skilled and dedicated cadres.
**

**http://www.zcommunications.org/the-real-problem-with-obama-s-rosy-claim-by-paul-street
**

**Paul Street (www.paulstreet.org) is the author of numerous books,
including Empire and Inequality: America and the World Since 9/11
(Paradigm, 2004), Racial Oppression in the Global Metropolis
(Rowman&Littlefield, 2007), The Empire's New Clothes: Barack Obama in
the Real World of Power (Paradigm, 2010), and (co-authored with Anthony
DiMaggio) Crashing the Tea Party: Mass Media and the Campaign to Remake
American Politics (Paradigm, 2011). Street can be reached at
[email protected]
**

**Footnotes:**
****

**[1] See Paul Street and Anthony DiMaggio, Crashing the Tea Party: Mass
Media and the Campaign to Remake American Politics (Paradigm, 2010);
Anthony DiMaggio, The Rise of the Tea Party: Political Discontent and
Corporate Media in the Age of Obama (New York: Monthly Review, 2011).

[2] Andrew Taylor, "Fact Check: Obama Off on Thrifty Spending Claim,"
Associated Press, May 26, 2012 at
http://news.yahoo.com/fact-check-obama-off-thrifty-spending-claim-231221900.html;_ylt=A2KJ3CbkUcBPaDsADQ7QtDMD


[3] Ha Joon Chang, 23 Things They Don't Tell You About Capitalism (New
York: Bloomsbury, 2010).

[4] Chang, 23 Things, 146.

[5] Paul Krugman, "The Austerity Agenda," New York Times, May 31, 2012.

[6] Common Dreams Staff, "Earth Facing Imminent Environmental Tipping
Point," Common Dreams (June 8, 2012), posted at
http://www.countercurrents.org/cds080612.htm

[7] For some instructive reflections, see Bill McKibben, Eaarth: Making
Life on a Tough New Planet (New York: Times Books), 52-55.

[8] Klare's latest chilling book is an essential read: The Race for
What's Left: The Global Scramble for the World's Last Resources (New
York: Metropolitan, 2012).

****[9] Noam Chomsky, "Plutonomy and the Precarait," Huffington Post
(May 8, 2012), read online at
http://www.huffingtonpost.com/noam-chomsky/plutonomy-and-the-precari_b_1499246.html
**
******
[10] Chang leaves no doubt that allegiance: "This book is not an
anti-capitalist manifesto...Despite its problems and limitations, I
believe that capitalism is still the best economic system that humanity
has invented. My criticism is of a particular version of capitalism that
has dominated the world over the last three decades, that is, free
market capitalism..." For a critique of Chang from an anti-capitalist
perspective that focuses significantly (though not exclusively) on
Chang's gaping environmental blind spot, see Paul Street, "Some Big
Things Ha Joon Chang Doesn't Tell You About Capitalism," ZNet (June 16,
2011), read at,
http://www.zcommunications.org/some-big-things-ha-joon-chang-doesn-t-tell-you-about-capitalism-by-paul-street

**

****

****
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