December 2012 archive

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Muse in the Morning


Ogle 22

What’s The Difference Between “Broadening the Base” and Squeezing Pennies From The Poor?

[Hint: There isn’t any.]

One of the Great Untold Stories of the past few decades was the fall of the murderous “Iron Lady,” Margaret Thatcher, when she proposed a modified head tax.

Thatcher could sail with aplomb above the increasingly nasty reputation of the English in Europe for her extrajudicial killings and mass imprisonment with little ceremony of the revolting Irish, especially with the full backing of the “World’s Greatest Power” across the big drink.

But the attack on les miserables even despite the inability of the voiceless ones to speak up for themselves sunk the old battleaxe.

Surprisingly fast.

In England of all places.

Maybe if England hadn’t lost the gift of poetry and lyrical literature that once stood her so well…

There has been an abortive destruction of the ham-handed Republicans, who had preveiously been raised from the grave by one of their own under a different label with a skillful ability to croon the old siren songs without shame.

We are obviously headed back towards the reign of a new and far more skillful Iron Lady if the stars foretelling the future are not giving a false signal.

Not looking good at all for working folk, the very young, the aged and the sick.

Then again it never did – ever.

Best,  Terry

The Real Financial Crisis: Income Disparity and Poverty

Steve Kornacki, MSNBC host sitting in for Chris Hayes on Sunday’s Up with Chris Hayes, discussed the political posturing on fiscal negotiations with David Cay Johnston, Pulitzer Prize winner and distinguished visiting lecturer at the Syracuse University College of Law; Joan Walsh, MSNBC political analyst, editor at large of Salon.com; Laura Flanders, founder of GritTV; Neera Tanden, president and CEO of the Center for American Progress; and Avik Roy, former member of Mitt Romney’s health care policy advisory group, senior fellow at the Manhattan Institute. Unlike the usual talk show, where right wing talking points are rarely challenged, Up pushes back and debunks those memes for the hollow myths and out right lies they are. This panel talks head on how income disparity and poverty are the real financial crisis and the insanity of “shared pain.” Topics about taxes on Wall Street transactions, defense cuts and closing loop holes that only benefit the wealthy were mentioned. You won’t hear that on “Meet the Press” or “ABC’s This Week”.

Heather at Crooks and Liars pointed out the conversation in the second video and responses in the third video to Avik Roy arguing how things are different now that when Bill Clinton was president and the nonsense that the rich already pay too much in taxes. The responses from the panel shredded Roy’s talking points. Here are just some of the comments from the panel:

   DAVID CAY JOHNSTON: The average income of the bottom 90 percent of Americans has fallen back to the level of 1966 when Johnson was president, and the top 1 percent of the top 1 percent have gone in today’s dollars from 4 million to 22 million. In 2010, the first year of the recovery, 37 percent of all of the increased income in the entire country went to 15,600 households.

   We have created a privatized system to redistribute upwards and the reason people at the top are sharing a larger share of the income taxes because their incomes are growing at this enormous rate, but their burden is falling. And to suggest we don’t need to raise more revenue by applying it to people who are a success depends on this government, on living in this society, with its rules that make it possible to make that money is just outrageous. It is arguing that we should burden the poor and help the rich.

   […]

   LAURA FLANDERS: No, you’re right. we have 50, 5-0 million Americans living in poverty at this point with food stamp help for many of them. We’ve got 9 million Americans over the age of 50 who are food insecure. One in three of us have no savings whatsoever.

   I mean, you talk the Johnson years, in that period, ’65 to ’73 the war on poverty reduced poverty by 43 percent. We know how to do it. It works. That’s what we should be talking about. We are in a crisis where we’re going to see stimulus. We’re going to see stimulus of poverty and hunger in this country and it’s shameful. And again, going back to ’63, you had more than 60 percent of Americans, I think even in1983, 60 percent of Americans had private pension plans. Now, it’s under 20 percent.

   So these elders that you’re talking about, young people with greater unemployment than ever before. I mean, this is the stuff that we want to be talking about after the last election, children and poverty are exploding.

   JOAN WALSH: And also… we need higher tax rates for the tippy top earners because everybody likes to talk about building the middle class or rebuilding the middle class. Well, the top tax rate that the middle class we in the ’40s,’ 50s and ’60s. The top marginal rate was in the 90’s. I’m not saying you should go back to that, but you can’t say at 37 percent.

The Great Debate on the Grand Sell Out of Medicare

Cross posted from The Stars Hollow Gazette

Whether you voted for Barack Obama or not, the reality is he is on the same path he was on for the last four years and that is to sell out the majority of Americans to reach a “bargain” with Republicans, who lost the election, on the mythical “fiscal cliff” and the  unconstitutional “debt ceiling.” Part of that sell out is raising the eligibility age for Medicare recipients to 67. This little nugget has started a “great debate” and a bit of an internet dispute about whether or not this is a good, or even workable, idea.

In his article at AMERICAblog our friend Gaius Publius, who is just reporting it, quotes Paul Krugman’s reaction on his NY Times blog to Ezra Klein’s commentary in The Washington Post on Jonathan Chait’s article in The New Yorker, who thinks that raising the eligibility age by two years is an OK idea. What the Herr Doktor said:

Ezra Klein says that the shape of a fiscal cliff deal is clear: only a 37 percent rate on top incomes, and a rise in the Medicare eligibility age. [..]

First, raising the Medicare age is terrible policy. It would be terrible policy even if the Affordable Care Act were going to be there in full force for 65 and 66 year olds, because it would cost the public $2 for every dollar in federal funds saved. And in case you haven’t noticed, Republican governors are still fighting the ACA tooth and nail; if they block the Medicaid expansion, as some will, lower-income seniors will just be pitched into the abyss.

Second, why on earth would Obama be selling Medicare away to raise top tax rates when he gets a big rate rise on January 1 just by doing nothing? And no, vague promises about closing loopholes won’t do it: a rate rise is the real deal, no questions, and should not be traded away for who knows what. [..]

All that effort to reelect Obama, and the first thing he does is give away two years of Medicare? How’s that going to play in future attempts to get out the vote?

If anyone in the White House is seriously thinking along these lines, please stop it right now.

Meanwhile, Chait’s article, Go Ahead, Raise the Medicare Retirement Age, prompted David Dayen’s response at FDL and the Wanker of the Day Award from Atrios.

Dayen’s critique prompted some poutrage from Chait and Ed Kilgore at Washington Monthly, who was more concerned about “tone” than the consequences of raising Medicare’s eligibiliy age.

Which resulted in Dayens’ response to Chait, the ill informed Ezra Klein comment agreeing with Chait that the Affordable Care Act would “blunt the pain,” and a hat tip to Kilgore’s pique about “tone.”

Meanwhile, Karoli at Crooks & Liars gets it in her response to Klein’s interview with Peter Orzag, former director of the Obama Administration’s Office of Management and Budget, currently Vice Chairman of Global Banking at Citigroup:

Listen Up, White House! Take Medicare Eligibility Age Off The Table NOW.:

Raising the Medicare eligibility age is terrible, awful, horrible policy that plays right into the Republicans’ goal of killing Medicare altogether. Obamacare does not change that fact in substantive ways. Here’s why, in bullets:

  • Adverse selection – Obamacare or no Obamacare, raising the eligibility age means people enter the Medicare system with a higher likelihood of health problems. Even if they have health insurance before they’re eligible for Medicare, facts are facts: The older one gets, the more likely health problems become.
  • Administrative costs – Medicare’s administrative costs consistently come out to about 7 percent. Obamacare allows for administrative costs of 15 percent. Extending coverage via Obamacare means higher, not lower, costs to the government and the middle class. Subsidies will cost more for that older group as well as for the younger group, since insurers will set a higher baseline on young people in order to pad reserves for older people because of the 3:1 ratio requirement on rates between youngest and oldest.
  • Workforce phase-outs of older employees – This is the dirty little elephant in the middle of the room that no one talks about. Because of the high demand for jobs right now, older employees are being shoved phased out earlier. Beginning at around age 50 to 55, jobs become scarce for older workers, leaving them with a 10-15 year gap before they become eligible for Social Security and Medicare. That means they’re living on their savings, home equity, or odd jobs just to scratch their way to the social safety net. Moving that football means leaving them on the hook for 2 extra years, not only for living expenses, but also covering their health insurance, whether or not subsidized.

[..]I’ve been told by some pragmatic liberals who I usually agree with that I’m being unreasonable on this point. I beg to differ. It is not reasonable for Peter Orszag to say we’ve gotten a concession from Republicans because privatizing Social Security is off the table entirely. That’s a little like saying we’re really lucky that they’re holding the gun to our hearts instead of our heads. The impact of conceding any ground on Medicare eligibility is immeasurably negative for Democrats.

HELLO, Barack, raising the eligibility age for Medicare is a really bad idea.

We heard about the Sell Out

It’s a hell of a start, it could be made into a monster if we all pull together as a team.

Today on The Stars Hollow Gazette

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The Stars Hollow Gazette

Don’t Hold Your Breath

Banks are crime syndicates and their management Mafiosi.

Banks Face a Huge Reckoning in the Mortgage Mess

By JESSICA SILVER-GREENBERG, The New York Times

Published: December 9, 2012

Regulators, prosecutors, investors and insurers have filed dozens of new claims against Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and others, related to more than $1 trillion worth of securities backed by residential mortgages.

Estimates of potential costs from these cases vary widely, but some in the banking industry fear they could reach $300 billion if the institutions lose all of the litigation.



Efforts by the banks to limit their losses could depend on the outcome of one of the highest-stakes lawsuits to date – the $200 billion case that the Federal Housing Finance Agency, which oversees the housing twins Fannie Mae and Freddie Mac, filed against 17 banks last year, claiming that they duped the mortgage finance giants into buying shaky securities.



(I)n October, federal prosecutors in New York accused the bank (of America) of perpetrating a fraud through Countrywide by churning out loans at such a fast pace that controls were largely ignored. A settlement in that case could reach well beyond $1 billion because the Justice Department sued the bank under a law that could allow roughly triple the damages incurred by taxpayers.

Bank of America’s attempts to resolve some mortgage litigation with an umbrella settlement have stalled. In June 2011, the bank agreed to pay $8.5 billion to appease investors, including the Federal Reserve Bank of New York and Pimco, that lost billions of dollars when the mortgage securities assembled by the bank went bad. But the settlement is in limbo after being challenged by investors. Kathy D. Patrick, the lawyer representing investors, has said she will set her sights on Morgan Stanley and Wells Fargo next.

What should happen is that they should be seized and the assets distributed to those they defrauded.  Investors should take a 100% haircut and the individuals convicted and sentenced to a lifetime of hard labor.

“All of Wall Street has essentially refused to deal with the real costs of the litigation that they are up against,” said Christopher Whalen, a senior managing director at Tangent Capital Partners. “The real price tag is terrifying.”

But not as terrifying as the tumbrils.

“Keep Your Hands Off My Medicare”

Cross posted from The Stars Hollow Gazette

Where is the Tea Party now that the Republican Party wants to cut Medicare? Does anyone remember the 2010 election that gave the right wing extremists control of the House of Representatives and the disruption these Tea Partiers caused at Democratic Town Halls with their signs and demands that government keep their hands off Medicare? Anyone? Buehler?

So far not a peep from this vociferous crowd now that the Republicans are holding tax reform and budget negotiations hostage demanding major cuts to Medicare and Medicaid and raising Medicare eligibility age to 67 because wealthy white men are living longer.

The popularity for Medicare, Medicaid and Social Security, the three programs that are the major components of the social safety, is overwhelming. According to an ABC News/ Washington Post Poll (pdf) 79% of Americans do not want Medicare cut at all. By a large majority (65%) they would prefer tax hikes on the wealthy than reduction of payments to hospitals and doctors. Meanwhile, the Republicans in the House and Senate, who still think they won in November, are demanding drastic cuts after they campaigned against those very cuts.

Subbing for MSNBC’s Rachel Maddow on her show, Chris Hayes talks about the effort to defend Medicare and making the program more efficient with Rep. Jan Schawkowsky (D-IL), a member of the House Budget Committee.

 

Cartnoon

So Vanna, what have they won?

On This Day In History December 9

Cross posted from The Stars Hollow Gazette

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

December 9 is the 343rd day of the year (344th in leap years) in the Gregorian calendar. There are 22 days remaining until the end of the year.

On this day in 1861, The Joint Committee on the Conduct of the War is established by the U.S. Congress.

The Joint Committee on the Conduct of the War was a United States Congressional investigating committee created to handle issues surrounding the American Civil War. It was established on December 9, 1861, following the embarrassing Union defeat at the Battle of Ball’s Bluff, at the instigation of Senator Zachariah T. Chandler of Michigan, and continued until May 1865. Its purpose was to investigate such matters as illicit trade with the Confederate states, medical treatment of wounded soldiers, military contracts, and the causes of Union battle losses. The Committee was also involved in supporting the war effort through various means, including endorsing emancipation, the use of black soldiers, and the appointment of generals who were known to be aggressive fighters. It was chaired throughout by Senator Benjamin Wade of Ohio, and became identified with the Radical Republicans who wanted more aggressive war policies than those of Abraham Lincoln.

History

Union officers often found themselves in an uncomfortable position before the Committee. Since this was a civil war, pitting neighbor against neighbor (and sometimes brother against brother), the loyalty of a soldier to the Union was simple to question. And since Union forces had very poor luck against their Confederate counterparts early in the war, particularly in the Eastern Theater battles that held the attention of the newspapers and Washington politicians, it was easy to accuse an officer of being a traitor after he lost a battle or was slow to engage or pursue the enemy. This politically charged atmosphere was very difficult and distracting for career military officers. Officers who were not known Republicans felt the most pressure before the Committee.

During the committee’s existence, it held 272 meetings and received testimony in Washington and at other locations, often from military officers. Though the committee met and held hearings in secrecy, the testimony and related exhibits were published at irregular intervals in the numerous committee reports of its investigations. The records include the original manuscripts of certain postwar reports that the committee received from general officers. There are also transcripts of testimony and accounting records regarding the military administration of Alexandria, Virginia.

One of the most colorful series of committee hearings followed the Battle of Gettysburg in 1863, where Union Maj. Gen. Daniel Sickles, a former congressman, accused Maj. Gen. George G. Meade of mismanaging the battle, planning to retreat from Gettysburg prior to his victory there, and failing to pursue and defeat Robert E. Lee‘s army as it retreated. This was mostly a self-serving effort on Sickles’s part because he was trying to deflect criticism from his own disastrous role in the battle. Bill Hyde notes that the committee’s report on Gettysburg was edited by Wade in ways that were unfavorable to Meade, even when that required distorting the evidence. The report was “a powerful propaganda weapon” (p. 381), but the committee’s power had waned by the time the final testimony was taken of William T. Sherman on May 22, 1865.

The war it was investigating completed, the committee ceased to exist after this last testimony, and the final reports were published shortly thereafter. The later Joint Committee on Reconstruction represented a similar attempt to check executive power by the Radical Republicans.

Six In The Morning

On Sunday

Egypt crisis: President Morsi annuls decree

Egyptian President Mohammed Morsi has annulled a decree he issued last month that hugely expanded his powers and sparked angry protests, officials say.

 9 December 2012 Last updated at 07:04 GMT

However, a news conference in Cairo was told that a controversial referendum on a draft constitution would still go ahead as planned on 15 December.

Mr Morsi’s critics have accused him of acting like a dictator, but he says he is safeguarding the revolution.

Some opposition figures were quick to dismiss his latest move.

Mr Morsi’s decree of 22 November stripped the judiciary of any right to challenge his decisions and triggered violent protests on the streets of Cairo.

“The constitutional decree is annulled from this moment,” said Selim al-Awa, an Islamist politician acting as a spokesman for a meeting Mr Morsi held with political and public figures on Saturday.




Sunday’s Headlines:

As noose tightens on Assad, rebels ask: what comes next?

Doomsayers await the end of the world – in 12 days’ time

At last, Doha climate talks agree to Kyoto extension

Tough-talking Mugabe shows no signs of slowing down

Is Latin America punishing nonviolent drug offenders too harshly?

What We Now Know

Up host Chris Hayes outlines what we’ve learned since the week began, including details from a new World Bank report that suggests region s on North Africa and much of the Middle East will suffer more severely from the effects of climate change. Joining him on Saturday’s Up with Chris Hayes are Robert Freling, executive director of the Solar Electric Light Fund; Katie McGinty, senior vice president and managing director, Strategic Growth at Weston Solutions, Inc.; David Roberts (@drgrist), staff writer on energy politics at Grist.org; and Shalini Ramanathan (@UnGranola), vice president of development at RES Americas and Next Generation Project Fellow at the Robert S. Strauss Center for International Security and Law at the University of Texas at Austin.

Facing Up to the Threat of Climate Change in the Arab World

   

  • Consequences of climate change especially acute in the Arab world
  • Traditional coping methods severely stressed by current rate of climate change
  • Actions needed to reduce vulnerability also contribute to sustainable development

The year 2010 was globally the warmest since records began in the late 1800s, with 19 countries setting new national temperature highs. Five of these were Arab countries, including Kuwait, which set a new record at 52.6 °C in 2010, only to be followed by 53.5 °C in 2011.

According to a new report, Adaptation to a Changing Climate in the Arab Countries, extreme weather events are the new norm for the region. The consequences of the global phenomenon of climate change are especially acute in the Arab world.  While the region has been adapting to changes in rainfall and temperature for thousands of years, the speed with which the climate is now changing has, in many cases, outstripped traditional coping mechanisms.

Climate change is a reality for people in Arab countries,” said Inger Andersen, World Bank Vice President for the Middle East and North Africa region. “It affects everyone – especially the poor who are least able to adapt – and as the climate becomes ever more extreme, so will its impacts on people’s livelihoods and wellbeing. The time to take action at both the national and regional level in order to increase climate resilience is now.

To Stop Climate Change, Students Aim at College Portfolios

by Justin Gillis

SWARTHMORE, Pa. – A group of Swarthmore College students is asking the school administration to take a seemingly simple step to combat pollution and climate change: sell off the endowment’s holdings in large fossil fuel companies. For months, they have been getting a simple answer: no.

As they consider how to ratchet up their campaign, the students suddenly find themselves at the vanguard of a national movement.

In recent weeks, college students on dozens of campuses have demanded that university endowment funds rid themselves of coal, oil and gas stocks. The students see it as a tactic that could force climate change, barely discussed in the presidential campaign, back onto the national political agenda.

How Cellphone Companies Have Resisted Rules for Disasters

by Cora Currier, ProPublica, Dec. 3, 2012

In a natural disaster or other emergency, one of the first things you’re likely to reach for is your cellphone. Landlines are disappearing. More than 30 percent of American households now rely exclusively on cellphones.

Despite that, cell carriers have successfully pushed back against rules on what they have to do in a disaster. The carriers instead insist that emergency standards should be voluntary, an approach the Federal Communications Commission has gone along with.

After Hurricane Katrina, for instance, carriers successfully opposed a federal rule that would have required them to have 24-hours of backup power on cell towers. In another instance, an FCC program to track crucial information during an emergency – such as which areas are down and the status of efforts to bring the network back – remains entirely voluntary. Nor is the information collected made public.

After Sandy, when thousands roamed the streets looking for service, many had no idea where they could get a signal. AT&T and Sprint, among the major carriers, didn’t initially release details on what portion of their network was down.

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