Friday, January 3, 2014

Whistle Blowers Save Lives, Expose Evil

The Year of the "Leaker"

Tuesday, 31 December 2013 09:31 By Robert Parry, Consortium News | Op-Ed
2013 1231-4(Photo: Mike Herbst / Flickr)
People who condemn the leaks of classified documents by Pvt. Bradley (now Chelsea) Manning and National Security Agency contractor Edward Snowden typically cite the supposed harm done to U.S. diplomacy and say lives have been put at risk. Manning/Snowden defenders counter by noting how government secrecy has been used to conceal government excesses and to stifle meaningful debate.

But there is another factor in this discussion: Secrecy often has empowered U.S. government propagandists to manipulate the people and to trick them into policies that, in turn, have cost lives, inflicted damage to national security and created hatred toward America that its enemies can then exploit. In other words, secrecy is the enabler of deception which has undercut precisely those interests that the Manning/Snowden critics say they want to protect (diplomacy and innocent life).

While one could take note of the secrecy and lies that cleared the paths into the disastrous wars in Vietnam and Iraq, let’s look at a less known case that I faced in 1988 as a correspondent at Newsweek: At the time, the Reagan administration – having suffered political damage from the Iran-Contra scandal – was trying to get its proxy war against Nicaragua’s Sandinista government back on track.

President Ronald Reagan’s skilled propagandists seized on what they claimed was Sandinista repression of Nicaragua’s Catholic Church and its Cardinal Obando y Bravo. All right-thinking Americans, especially Catholics, were incited to outrage over affronts to religious freedom. Because of this Sandinista behavior, the White House put political pressure on Congress to send more money and weapons to the Contra rebels who were killing thousands of Nicaraguans in towns near Honduras and Costa Rica.

But there was another side of the story that was hidden behind a veil of U.S. government secrecy. For years, the CIA and the White House had been funneling money through the Catholic Church into Nicaragua to destabilize the government. In effect, the Reagan administration had an inside-outside game going, Cardinal Obando and a group of right-wing Catholic priests were spreading around money to subvert Nicaragua from the inside while the Contra rebels were inflicting bloody havoc from the outside.

Whenever the Sandinista government would take steps against the U.S.-financed subversion, Reagan’s team would cite those actions as more justification to fund the Contra war. However, to make the propaganda work on the American people and Congress, the propaganda campaign required hiding the fact that the Reagan administration was using Cardinal Obando and his church infrastructure as a financial conduit.

In my reporting on the Contra war and Reagan’s obsession about Nicaragua, I had uncovered this secret. Ultimately I had more than a dozen sources inside the Contra movement or close to U.S. intelligence confirming these operations, which I was told carried an annual budget of about $10 million. I also discovered that the CIA’s support for Obando and his Catholic hierarchy went through a maze of cut-outs in Europe, apparently to give Obando deniability.

But one well-placed Nicaraguan exile said he had spoken with Obando about the money and the Cardinal had expressed fear that his past receipt of CIA funding would come out. The CIA funding for Nicaragua’s Catholic Church had originally been unearthed in 1985 by the congressional intelligence oversight committees, which insisted that the money be cut off to avoid compromising Obando.

However, White House aide Oliver North simply had his off-the-books Contra-support operation pick up where the CIA had left off. In fall 1985, North earmarked $100,000 of his privately raised money to go to Obando for his anti-Sandinista activities.

But what to do with this information? On one hand, I worried that exposure of this clandestine operation could put Obando and those right-wing priests in greater danger. On the other hand, my job – as I saw it – was to arm the American people with relevant facts so they could make knowledgeable judgments and avoid being manipulated by government propaganda, especially on a matter as important as war or peace.

Balance Tipped
For me, the balance of this question was tipped when the Reagan administration began disseminating propaganda citing the Sandinistas’ supposedly unprovoked clampdown on Obando’s operation as a reason for reauthorizing Contra funding. If I didn’t put forward this reporting, I would, in effect, be collaborating in a deception of the American people and contributing to a violation of international law, support for what any objective observer would call Contra terrorism.

So, I presented the information to my bureau chief, Evan Thomas. To my surprise, Thomas was eager to go forward. Newsweek editors then contacted the Central America correspondent Joseph Contreras, who outlined our questions to Obando’s aides and prepared a list of questions to present to the Cardinal personally. When Contreras went to Obando’s home in a posh suburb of Managua, the Cardinal literally evaded the issue.

As Contreras later recounted in a cable back to the United States, he was approaching the front gate when it suddenly swung open and the Cardinal, sitting in the front seat of his burgundy Toyota Land Cruiser, blew past. As Contreras made eye contact and waved the letter, Obando’s driver gunned the engine. Contreras jumped into his car and hastily followed. Contreras guessed correctly that Obando had turned left at one intersection and headed north toward Managua.

Contreras caught up to the Cardinal’s vehicle at the first stop-light. The driver apparently spotted the reporter and, when the light changed, sped away, veering from lane to lane. The Land Cruiser again disappeared from view, but at the next intersection, Contreras turned right and spotted the car pulled over, with its occupants presumably hoping that Contreras had turned left. Quickly, the Cardinal’s vehicle pulled onto the road and sped back toward Obando’s house. Contreras gave up the chase, fearing that any further pursuit might appear to be harassment.

Several days later, having regained his composure, the Cardinal finally met with Contreras and denied receiving any CIA money. But Contreras told me that Obando’s denial was unconvincing. Newsweek then drafted a version of the story, making it appear as if we weren’t sure of the facts about Obando and the money. When I saw a readback of the article, I went into Thomas’s office and said that if Newsweek didn’t trust my reporting, we shouldn’t run the story at all. He said that wasn’t the case; it was just that the senior editors felt more comfortable with a vaguely worded story.
We ended up in hot water with the Reagan administration and right-wing media attack groups anyway. Accuracy in Media lambasted me, in particular, for going with such a sensitive story without being sure of the facts (which, of course, I was). Thomas was summoned to the State Department where Assistant Secretary of State Elliott Abrams heaped more criticism on me though not denying the facts of our story.

I was later told that the Reagan administration was shocked that an American reporter would disclose such a sensitive operation. In other words, Reagan’s propagandists assumed they could simply get away with manipulating the American people without the background facts coming out. The attacks also worsened my relations with senior Newsweek executives.

But the disclosure of the Obando operation had none of the feared repercussions inside Nicaragua. The Sandinistas did nothing to punish Obando, who gradually evolved more into a figure of reconciliation than confrontation. Indeed, the Newsweek story may have helped facilitate an eventual political settlement in Nicaragua.

Lessons Learned
In general, the lessons that I have learned from several decades of dealing with these kinds of stories is that you should be careful to minimize risks to specific individuals whenever possible. But the real-life dangers cut both ways. Secrecy can be the handmaiden of deception – and that can get lots of innocent people killed.

To this day, former senior Pentagon official Daniel Ellsberg berates himself for not leaking the Pentagon Papers history of the Vietnam War earlier, when the revelations of government lying might have saved the lives of countless Americans and Vietnamese.

Journalists also bear a profound responsibility to the people who — in the United States – represent the sovereign power of a democratic Republic. The United States is not a monarchy or a dictatorship where government secrets are the possession of a king or the dictator.

The information rightly belongs to “We the People” and government officials should take seriously their stewardship of these facts. They should restrict access only when absolutely necessary, not when just convenient for their careers or expedient for manufacturing consent behind some desired policy.
In the real world, however, government officials can be expected to tilt the secrecy-disclosure balance in ways that make their lives easier. There is always some rationalization to wield the secrecy stamp, always some possibly negative consequence that can be dreamt up if the truth comes out.

Yes, there is a chance that al-Qaeda terrorists will take greater care in their communications if they hear about U.S. intercept capabilities, but the evidence is that they were already doing that, as the long hunt for Osama bin Laden showed. It’s also true that the deceptions that led the U.S. military into the Iraq invasion have helped al-Qaeda expand its influence across the Middle East by inflaming animosity toward the United States.

There can be little doubt, too, that the NSA’s collection of “metadata” and other information vacuumed up about hundreds of millions of innocent people has gotten seriously out of whack – a judgment shared by President Barack Obama’s special advisory panel on surveillance policies and by U.S. District Judge Richard Leon, an appointee of that paragon of the imperial presidency George W. Bush.

NSA leaker Snowden is clearly correct when he says this system of pervasive spying represents “turnkey tyranny,” ready to be abused by some future imperial president to silence his political opponents through blackmail and other means.

So, when the government’s internal checks and balances fail – for reasons of political expedience or bureaucratic inertia – the pressure builds within the government for some idealistic citizen with access to the secrets to challenge national security overreach by releasing some of the information, often in a messy and chaotic way.

Then, of course, the government and its apologists will decry the damage done to national security and to foreign policy. But that is a complaint that would carry more weight if government officials were not so eager to clutch so many “secrets” close to their chests and deem other Americans unfit to know the facts.

At a time when many senior officials have used secrecy to cover up their crimes – for example, torture carried out by President George W. Bush, Vice President Dick Cheney and scores of their subordinates – and when these government criminals have escaped all manner of accountability, is it any wonder that a few people of conscience would step forward and risk their careers and even their liberty to let the American public in on the secrets?

It becomes an existential question for this democratic Republic: why should patriots like Pvt. Manning face a 35-year prison term – and why should Edward Snowden have to seek asylum in Russia to avoid harsh prosecution at home – when U.S. government officials are free to flout the nation’s laws and then flaunt their authority over the nation’s secrets?

Tuesday, December 31, 2013

Drone Operator Exposes Errors

I worked on the US drone program. The public should know what really goes on

Few of the politicians who so brazenly proclaim the benefits of drones have a real clue how it actually works (and doesn't)

An Elbit Systems Hermes 450 drone. Photograph: AFP/Getty Images

Whenever I read comments by politicians defending the Unmanned Aerial Vehicle Predator and Reaper program – aka drones – I wish I could ask them a few questions. I'd start with: "How many women and children have you seen incinerated by a Hellfire missile?" And: "How many men have you seen crawl across a field, trying to make it to the nearest compound for help while bleeding out from severed legs?"

Or even more pointedly: "How many soldiers have you seen die on the side of a road in Afghanistan because our ever-so-accurate UAVs [unmanned aerial vehicles] were unable to detect an IED [improvised explosive device] that awaited their convoy?"

Few of these politicians who so brazenly proclaim the benefits of drones have a real clue of what actually goes on. I, on the other hand, have seen these awful sights first hand.

I knew the names of some of the young soldiers I saw bleed to death on the side of a road. I watched dozens of military-aged males die in Afghanistan, in empty fields, along riversides, and some right outside the compound where their family was waiting for them to return home from the mosque.
The US and British militaries insist that this is an expert program, but it's curious that they feel the need to deliver faulty information, few or no statistics about civilian deaths and twisted technology reports on the capabilities of our UAVs. These specific incidents are not isolated, and the civilian casualty rate has not changed, despite what our defense representatives might like to tell us.

What the public needs to understand is that the video provided by a drone is not usually clear enough to detect someone carrying a weapon, even on a crystal-clear day with limited cloud and perfect light. This makes it incredibly difficult for the best analysts to identify if someone has weapons for sure. One example comes to mind: "The feed is so pixelated, what if it's a shovel, and not a weapon?" I felt this confusion constantly, as did my fellow UAV analysts. We always wonder if we killed the right people, if we endangered the wrong people, if we destroyed an innocent civilian's life all because of a bad image or angle.

It's also important for the public to grasp that there are human beings operating and analysing intelligence these UAVs. I know because I was one of them, and nothing can prepare you for an almost daily routine of flying combat aerial surveillance missions over a war zone. UAV proponents claim that troops who do this kind of work are not affected by observing this combat because they are never directly in danger physically.

But here's the thing: I may not have been on the ground in Afghanistan, but I watched parts of the conflict in great detail on a screen for days on end. I know the feeling you experience when you see someone die. Horrifying barely covers it. And when you are exposed to it over and over again it becomes like a small video, embedded in your head, forever on repeat, causing psychological pain and suffering that many people will hopefully never experience. UAV troops are victim to not only the haunting memories of this work that they carry with them, but also the guilt of always being a little unsure of how accurate their confirmations of weapons or identification of hostile individuals were.

Of course, we are trained to not experience these feelings, and we fight it, and become bitter. Some troops seek help in mental health clinics provided by the military, but we are limited on who we can talk to and where, because of the secrecy of our missions. I find it interesting that the suicide statistics in this career field aren't reported, nor are the data on how many troops working in UAV positions are heavily medicated for depression, sleep disorders and anxiety.

Recently, the Guardian ran a commentary by Britain's secretary of state for defence, Philip Hammond. I wish I could talk to him about the two friends and colleagues I lost, within a year of leaving the military, to suicide. I am sure he has not been notified of that little bit of the secret UAV program, or he would surely take a closer look at the full scope of the program before defending it again.

The UAVs in the Middle East are used as a weapon, not as protection, and as long as our public remains ignorant to this, this serious threat to the sanctity of human life – at home and abroad – will continue.

• Editor's note: Heather Linebaugh does not possess any classified material and has honored her non-disclosure agreement since the time of her discharge. 

Friday, December 27, 2013

Wall Street Attacks Tea Party Candidates

Chamber of Commerce Promises $50 Million in Fight Against Tea Party

Image: Chamber of Commerce Promises $50 Million in Fight Against Tea Party
Friday, 27 Dec 2013 07:54 AM
By Cathy Burke
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The U.S. Chamber of Commerce is ready to take on the tea party in 2014 Senate primaries and elections with a deep-pocketed boost of establishment and business Republican candidates.

"Our No. 1 focus is to make sure, when it comes to the Senate, that we have no loser candidates," Chamber strategist Scott Reed told The Wall Street Journal. "That will be our mantra: '
No fools on our ticket."

The financial support, which The Hill reported would pour at least $50 million into the campaigns of centrist GOP candidates, is part of an aggressive approach toward tea party Republicans since the 16-day October government shutdown.

The Chamber has expressed its displeasure with tea party favorites Sen. Ted Cruz of Texas and Sen. Mike Lee of Utah, who resisted passing a budget without a provision to defund Obamacare, triggering a stalemate.

Just a month later, the Chamber jumped into the intra-party GOP voting, backing establishment GOP candidate Bradley Byrne over tea party prospect Dean Young in an Alabama special House election.

Byrne beat Young, and went on to an easy victory in the Dec. 17 special election, defeating Democrat Burton LeFlore.

The Chamber — which hasn't usually gotten involved in GOP primaries — is airing ads for Rep. Mike Simpson in Idaho, where he faces a tea party-backed challenger in his race for a ninth House term.

Hard-right candidates' blunders are perceived to have cost the GOP five Senate seats in recent years, The Hill reported.

Republicans, for example, lost Senate elections in Indiana and Missouri after conservative candidates made controversial comments about abortion and rape that hurt their support, particularly among women.

The Chamber could also toss its influence into upcoming Senate races in Georgia,
Iowa, and North Carolina, where tea party candidates are challenging, The Hill reported.

Meanwhile, the head of Heritage Action is vowing to challenge GOP leaders on a number of fiscal issues — and to keep active with grassroots activists.

"Lawmakers do not have a monopoly on information, and we will continue to communicate directly with their constituents on important legislation as it moves through Congress," Michael Needham, chief executive of Heritage Action, the political arm of the Heritage Foundation think tank, told the Journal.

He said most lawmakers "will find it difficult to go back home and defend votes that increase spending, increase deficits and undermine the rule of law."

Wednesday, December 25, 2013

Fracking Unconstitutional in Pennsylvania

Fracking Law are Unconstitutional
From The Pittsburgh Post-Gazette:
The Pennsylvania Supreme Court today declared unconstitutional major provisions of the state’s Marcellus Shale drilling law, Act 13, including one that allowed gas companies to drill anywhere, overriding local zoning laws. The court’s decision, on a 4-2 vote, also sent back to Commonwealth Court challenges by townships and individuals to the Act 13 provisions that would have prevented doctors from telling patients about health impacts related to shale gas development.
...
State Rep. Jesse White, D-Cecil, who has been an outspoken opponent of shale development, hailed the ruling as an affirmation of the state constitution’s guarantee of “clean air and clean water” and the self-governance rights of local communities.
He said “... a clear message has been sent to Governor Corbett and his friends in the energy industry: Our fundamental constitutional principles cannot be auctioned off to wealthy special interests in exchange for campaign dollars. On this day, David has defeated Goliath.”

Thursday, December 19, 2013

Volker Rule Weakened by Bankster Lobbies

Volcker Rule Made Meaningless by Abundant Exemptions

AP/Bernd Kammerer

By Nomi Prins
The subject of heated debate in financial circles, the Volcker Rule, which was originally passed as part of the 2010 Dodd–Frank Wall Street Reform and Consumer Protection Act, was finally approved by regulators. It will begin taking effect in April 2014 with full compliance required by July 2015. They say the devil is in the details. Regarding the Volcker Rule, the devil is in the details of its abundant exemptions. These include a laundry list of practices and businesses that mega-banks have performed under one roof, since the 1999 repeal of Glass-Steagall, as well as the myriad perks they won along the way to that power-consolidating event.

The Volcker Rule in its current form ostensibly focuses on mitigating the “excessive” risk of proprietary trading at banks (which it doesn’t do well). Worse, it leaves all the other risky trading related activity that poses a far greater systemic threat untouched, such as:
1) Market making—the ability of banks to trade on behalf of clients or eventual clients, which is how they make the bulk of their trading profits, and thus create risk.
2) Underwriting—the creation of securities that can contain multiple layers of financial complexity, such as the toxic assets at the heart of the recent crisis.
3) Hedging—or the desire of banks to “protect” themselves through trading, which is virtually impossible to detect from any other kind of trading.
4) Trading government bonds. 5) Organizing or offering hedge and private equity funds, which involves trading and was theoretically to be prohibited under the original intent of the Volcker Rule.

Other exclusions (yes, there are more) relate to the ability of banks to trade—proprietary or otherwise—within their brokerage arms (which are supposedly, but not actually, distinct from their deposit-taking arms) and insurance company arms (which have historically been eager buyers and accumulators of toxic assets).

The real danger of the Volcker Rule, though, isn’t just that it leaves the structure of Wall Street’s deposit-insured, security-distributing and market-making services intact. The danger is that Wall Street critics believe it makes a meaningful difference, that it’s an obvious road on the way to the Glass-Steagall reinstatement highway, and are thus not ranting and raving for it to be made stronger, even as the bank lobbyists and lawyers are making every effort to further weaken it.

The Volcker Rule Exclusions Are the Rule
Between effectiveness and legalese, you can drive an 18-wheeler of financial wizardry. And that’s even accepting the notion that proprietary trading was a key culprit in causing any major financial crisis, relative to nearly any other risk producing bank practice, which it wasn’t.

Even so, the banks have been lobbying for exemptions in this minimal attempt at regulation and won’t stop. Thus the eventual implemented rule will entail more pages of exemptions, particularly if the public remains oblivious to its current impotence to deter risk.

The Big Six banks (JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, Goldman Sachs and Morgan Stanley) that control the majority of domestic deposits (and nearly all of U.S. derivatives) dangle them as financial hostages before complicit regulators, legislators and presidents. Too big to fail is about power, not size. These banks that sit atop the U.S. financial hierarchy by virtue of their legacy leaders having attacked 1933 Glass-Steagall regulations since the 1950s—piece by piece—own insurance companies, asset management companies, and brokerage or trading houses.

They not only have access to an increasingly higher proportion of deposits, but also of pension and other funds, and insurance policies. That’s why one of the main things that banks did to weaken the possibility of broad restriction on any of their overall trading activities was to ensure these side financial service businesses would bear no restriction on trading, proprietary or otherwise, as per their exemptions in the Volcker Rule.

The Fed’s Language Game
The Volcker Rule won’t take full effect until July 15, 2015. Thus, the only thing that really happened on Dec. 10, 2013, was that the Fed announced that five federal agencies “issued final rules” to “implement section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the ‘Volcker Rule’).”

As Fed Chairman Ben Bernanke remarked with great fanfare from a media hailing the mere “adoption of final rules” as a deterrent to Wall Street’s most heinous behavior (December is a slow news month):

“This provision of the Dodd-Frank Act has the important objective of limiting excessive risk taking by depository institutions and their affiliates. Getting to this vote has taken longer than we would have liked, but five agencies have had to work together to grapple with a large number of difficult issues and respond to extensive public comments” (italics mine).

It’s true that the Volcker Rule has the ability to limit “excessive risk,” but only in the most literal sense. Even Bernanke’s choice of words indicated focus on a small portion of risk—not systemic risk and not the risk that these banks remain too powerful to fail.

A more misleading aspect of Bernanke’s statement was that he claimed it took so long to get to this point because of the need to address “public comments.” Given the comparative length of bank-supportive pages relative to public-protecting ones, “public comments” essentially means bank lobbyist demands.

Separately, the Fed’s press release underscored the elements of trading the rule would not touch as much, if not more so, than what it would. The release stated that insured-deposit-taking banks would be prohibited from “engaging in short-term proprietary trading of certain securities, derivatives, commodity futures and options on those instruments for their own account” plus be subject to “limits on investments in, or relations with hedge funds or private equity funds.” But it also stated that “the final rules provide exemptions for certain activities, including market making, underwriting, hedging, trading in government obligations, insurance company activities, and organizing and offering hedge funds or private equity funds.” In addition, it clarified that “certain activities are not prohibited.” That these exclusions were prominent in the Fed’s press release speaks volumes to the parties the Fed is trying to coddle.

CEOs must attest to the program’s integrity, under the eye of an outside regulator—who will have to take all this pious restraint at face value.


Breaking It Down
The proposed rules tally 892 pages, of which the beginning contains exposition and outlines the crux of the rule prohibiting certain proprietary trading and hedge and private equity fund activities.
The exclusions kick in on page 55. Through page 79, we get their general aspects, with more specific details following on page 80. We wander through Underwriting Exemptions from pages 80 to 139, followed by a long section on Market-Making Exemptions from pages 140 to 317.

Then, we get a bunch of permitted hedge fund related activities that nearly negate the idea of the Volcker Rule altering the relationship of big banks to big hedge funds from pages 317 to 361. From this point, we meander through permitted trading in certain government and municipal securities (including in foreign bonds). There are a few antiquated categories that seem open to more lobbying through page 388.

Permitted Trading on behalf of clients gets 10 pages, as does permitted trading by a regulated insurance company. Permitted trading activities of a foreign banking entity get 23 pages.
Then we come to a section that sounds sort of regulatory, but is too obtuse to tell from pages 433 to 447. After a few pages of definitions as to what constitutes “High-Risk Asset” and “High-Risk trading strategy,” we get one page—one page!—on trading that could “Pose a Threat to Safety and Soundness of the Banking Entity or the Financial Stability of the United States.”

Another section of loopholes begins with covered fund activities on page 463. This is the stuff that allows banks to trade almost anything anywhere as long as it’s named in such a way as to avoid suspicion. Section 10 begins with prohibitions on banks buying or having certain relationships with a “Covered Fund.”

Pages 500 to 637 provide lists of exemptions to the above such as foreign public funds, insurance company separate accounts, loan securitizations (which were central to the subprime crisis), derivatives on loan securitization (ditto), venture capital funds (another word for private equity funds) and credit funds (which can hold all sorts of AIG-type credit derivatives).

In Section 11, we get another laundry list of permitted activities in conjunction with organizing covered funds, including “permitted risk-mitigating hedging activities” (and aren’t they all?) from pages 638 to 766. These also include foreign funds and insurance companies. To cap it off, we get some obligatory legal jargon about how to comply with whatever weakened rules remain from pages 767 to 882. C’est tout.

Something Is Not Always Better Than Nothing
For those people who think the Volcker Rule is a swipe at the banks and will reduce risk in the system, I urge you to reconsider. The Volcker Rule (and Paul Volcker, for whom it’s named) might have had good intentions, but the form it has taken, and was destined to take as I’ve written before, is a placation. It is not substantive reform, or even the right path.

Only a resurrection of Glass-Steagall will truly reduce the risk mega-banks pose to our economic lives. The multiple decades of regulation assassination, the combining of financial services from insurance policies to our pension funds, the epic leverage in the banking system as part of the high-stakes game of global profit, the enabling of the derivatives market to reach many times the world’s GDP, disproportionally controlled by the Big Six U.S. banks—are all time bombs of financial devastation.

This immense power in the hands of the Big Six banks and their leaders is dangerous to all of us, whether we believe that something like the Volcker Rule or Dodd-Frank represents true reform or not. Without curtailing that power, through a full separation of deposits and loan taking services from any other kind of trading and security creation engine or other form of financial service—the intent of the original Glass-Steagall Act—we are not safe. There will be bigger and broader crises.

Our apathy is exactly what the banks, their CEOs, their lawyers and their lobbyists count on. They depend on citizens getting bored and glassy-eyed when a financial term is mentioned and turning to stories about Miley Cyrus twerking or Kim Kardashian’s bikini bod instead. They rely on journalists not reading between the lines or even tabulating the lines. They bet that most legislators (excluding Sens. Elizabeth Warren and Bernie Sanders) will focus anywhere else, because they can out-complicate the lingo. They are confident that the population will continue to furnish them chips on the global betting table. That is our current system. That is the system that must be abolished through the strict re-employment of Glass-Steagall. We—all of us—have too much at stake to be blindsided by anything else

Wednesday, December 18, 2013

$1 Billion Wind Turbines for Iowa

Tue Dec 17, 2013 at 05:32 AM PST

Wind power generation almost at par w Coal as Buffet spends $1 Billion on new Iowa wind generators


Wind Power has arrived at a point where it is almost competitive with Coal for generation. Warren Buffet's electrical utility is poised to spend $1 Billion on new wind turbines in Iowa.
Wind Power Rivals Coal With $1 Billion Order From Buffett By Ehren Goossens

The decision by Warren Buffett’s utility company to order about $1 billion of wind turbines for projects in Iowa shows how a drop in equipment costs is making renewable energy more competitive with power from fossil fuels.

Turbine prices have fallen 26 percent worldwide since the first half of 2009, bringing wind power within 5.5 percent of the cost of electricity from coal, according to data compiled by Bloomberg. MidAmerican Energy Holdings Co., a unit of Buffett’s Berkshire Hathaway Inc., yesterday announced an order for 1,050 megawatts of Siemens AG wind turbines in the industry’s largest order to date for land-based gear.
5.5% is a relatively small premium to pay to buy sustainable green energy drove dirty coal power generation. Coal is the most destructive fuel available for generating electric energy of any fossil fuel. 

Coal now provides a large portion of the worlds electrical generation capacity, and that won't change overnight. But this shows how close how competitive greener alternatives are coming to conventional fossil fuels. That gives electric utilities all over the world a new cleaner alternative to dirty coal for a small price deferential. And that's very good news for all of us who want a future on this planet.

Wolff on Current Crisis

Capitalism and Democracy: Year-End Lessons

Wednesday, 18 December 2013 09:12 By Richard D Wolff, Truthout | News

(Image: <a href=" http://www.flickr.com/photos/42269094@N05/6163857290/in/photolist-aoFo2y " target="_blank"> Jared Rodriguez / t r u t h o u t</a>)**********
2013 drove home a basic lesson: US capitalism's economic leaders and their politicians now regularly ignore majority opinions and preferences.

For example, polls showed overwhelming popular support for higher taxes on the rich with lower taxes on the rest of us and for reversing the nation's deepening economic inequalities. Yet Republicans and Democrats, including President Obama, raised payroll taxes sharply on January 1, 2013. Those taxes are regressive; they take a smaller percentage of your income the higher your income is above $113,700 per year. Raising the payroll tax increased economic inequality across 2013.

For another example, many American cities and towns want to use eminent domain laws to help residents keep their homes and avoid foreclosure. Eminent domain is a hallmark democratic right as well as US law. It enables municipal governments to buy individual properties (at market prices) when doing so benefits the community as a whole. Using eminent domain, local leaders want to compel lenders (e.g., banks, etc.) to sell them homes whose market prices have fallen below the mortgage debts of their occupants. They would then resell those homes at their market prices to their occupants. With their mortgages thus reduced to their homes' actual prices, occupants could stay in them. They still suffer their homes' fallen values but avoid homelessness. Communities benefit because decreased homelessness reduces the fall of other property values, reduces the number of abandoned homes (and thus risks of fire, crime, etc.), reduces the number of customers lost to local stores, sustains property tax flows to local governments and so on.

Used this way, eminent domain forces lenders - chiefly banks - to share more of the pains produced by capitalism's crisis. Most Americans support that, believing it will help reverse income and wealth inequalities and also that banks bear major responsibility for the economic crisis.

Yet the country's biggest banks are using "their" money and laws (that they often wrote) to block municipalities' use of eminent domain. "Their" money includes the massive bailouts Washington provided to them since 2007. Big bank directors and major shareholders - a tiny minority - fund the politicians, parties and think-tanks that oppose municipalities' use of eminent domain. In these ways, capitalism systematically undermines democratic decision-making about economic affairs.

For yet another example, the recent bankruptcy court decision about Detroit allows the city to cut retired city workers' pensions. Those workers bargained and signed contracts with Detroit's leaders over many years. They accepted less in wages and benefits in exchange for their pensions as parts of their agreed compensation for work performed. Now that an economic crisis and the unemployment it generated have cut Detroit's tax revenues, this system's "solution" includes cutting retired workers' pensions. Other cities are expected to adopt this solution. Inequality worsens as the costs of this economic crisis shift from lenders to cities (usually rich) to retired city-worker pensioners (never rich).

In these and other ways, 2013 taught millions of Americans that capitalism repeatedly contradicts the democratic idea that majority decisions should govern society as a whole. The system's tendency toward deepening inequalities of income and wealth operated across 2013 in direct contradiction to the will of substantial American majorities.

The same happened in the decades before the 1930s Great Depression. However, in that Depression, a mass movement from below (organized by the Congress of Industrial Organizations - CIO - and socialist and communist parties) successfully reversed capitalism's tendencies toward inequality. Supported by majorities of Americans, it was strong enough to obtain Social Security, unemployment compensation and millions of federal jobs for the people whom private capitalists could not or would not employ. Those programs helped average people rather than bailing out banks and other large corporations. That movement also got the government to pay for those programs by taxing corporations and the rich at far higher rates than exist now. Capitalism's deepening inequality was partly reversed by and because of a massive democratic movement.

However, that movement stopped short of ending capitalism. Thus it only temporarily reversed capitalism's tendencies toward inequality. After World War II, business, the rich and conservatives mobilized a return to "capitalism as usual." They organized a massive government repression of the coalition (CIO, socialists and communists) that led the 1930s movement from below. By such means as the Taft-Hartley Act and McCarthyism, capitalism resumed its development of ever-greater economic inequalities, especially after 1970. In the Great Recession since 2007, the absence of a sustained movement from below has allowed inequality to worsen as our examples above illustrate.

The lessons of recent history include this: To secure democratic decision-making and the kind of society most Americans want requires moving beyond capitalism. Capitalism's difficulties (including its crises and inequalities) and its control of government responses to those difficulties keep teaching that lesson. The widening gap between democratic needs and impulses and the imperatives of capitalism is becoming clear to millions in the United States but also in other countries.

For example, the Rajoy government in Spain recently imposed new levels of repression on the strengthening protests against its austerity policies. Spain's unemployment rate today exceeds the US rate in the worst year of the Depression. Rajoy wants fines of up to $40,000 for offenses such as burning the national flag, insulting the state or causing serious disturbances outside Parliament. Indeed some fines go up to $800,000 for "demonstrations that interfere in electoral processes."

Contradictions between democratic rights and demands and the processes of capitalism are accelerating into clashes in legislatures and the streets. Informed by history's lessons about capitalism and democracy, today's movements more likely will recognize the need to confront and supersede capitalism to secure real democracies. Policies that achieve only temporary reversals of capitalist inequalities no longer suffice.

The system's imperatives to profit, compete and grow are now so costly to so many that its critics and opponents are multiplying fast. Once they confront and solve the problem of politically organizing themselves, social change will happen fast, too. (??? ed)