Headlines of the day: Class, theology, union?

From Salon:

Jaron Lanier: The Internet destroyed the middle class

Kodak employed 140,000 people. Instagram, 13. A digital visionary says the Web kills jobs, wealth — even democracy

From Haaretz:

Israel has highest poverty rate in the developed world, OECD report shows

Israel is the most impoverished of the 34 member countries, with a poverty rate of 20.9%, according to a report released by the Organization for Economic Cooperation and Development

From the BBC:

Pope Francis hits out at global ‘cult of money’

Gee, maybe there’s something to this one from the London Telegraph:

Pope Francis elected after supernatural ‘signs’ in the Conclave, says Cardinal

The surprise election of Pope Francis came about because of a series of supernatural “signs”, one of the leading Cardinals in the Roman Catholic Church has claimed

From McClatchy Newspapers:

In Mexico, fears for democracy as threatened journalists curtail coverage

From The Independent:

François Hollande calls for ‘European political union’ within two years

Headlines of the day: Recessions and Big Agra

From EUbusiness:

Eurozone trapped in austerity-led recession

From Keep Talking Greece:

Recession here: Greece economy shrank by 5.3% in 1Q of 2013

From Svenska Dagbladet via Presseurop:

‘Inequality growing fastest in Sweden’

From The Guardian, reporting on something we’ve covered extensively:

Diplomatic cables reveal aggressive GM lobbying by US officials

Review of more than 900 cables reveals campaign to break down resistance to GM products in Europe and other countries

And, from Mother Jones, something else from Big Agra to worry about:

Mysterious Poop Foam Causes Explosions on Hog Farms

Headlines of the day: Of corporations and cash

From The Atlantic Wire:

How the Maker of TurboTax Fought to Keep Your Taxes Complicated

From Common Dreams:

Disaster Capitalism Strikes as Hedge Funds Circle Near-Bankrupt Municipalities Like Vultures

A troubling pattern emerges as private funds seek to profit from beleaguered cities

From ANSAmed:

Greece: youth unemployment reaches a grim record of 64.2%

From World Socialist Web Site:

IMF demands further austerity in Greece

From Raw Story:

Mao Zedong’s grand-daughter worth more than $815 million according to China’s ‘New Fortune’ magazine

Headlines of the day: It’s a simple matter of class

First, from Bloomberg, a story by a fellow doing quite well, thank you very much:

Gore Is Romney-Rich With $200 Million After Bush Defeat

And from Business Insider, news about others not doing as well:

The Worst Unemployment Crisis In Modern History Is Unfolding Right Now

And from the London Telegraph, a story about a change of heart:

 

German euro founder calls for ‘catastrophic’ currency to be broken up

Oskar Lafontaine, the German finance minister who launched the euro, has called for a break-up of the single currency to let southern Europe recover, warning that the current course is “leading to disaster”.

And back home to California, where the fruits of a clever neoliberal property tax scheme are continuing to bear fruit for the one percenters, reported by the Los Angeles Times:

Prop. 13 loophole gives edge to big players

Change of ownership, key to reassessment, is cut-and-dried for homeowners but not businesses. It means a loss of tens of millions of dollars a year in tax revenue.

Quote of the day: Gee, ya think so?

From UC Berkeley’s Robert Reich:

Four years into a so-called recovery and we’re still below recession levels in every important respect except the stock market. A measly 88,000 jobs were created in March, and total employment remains some 3 million below its pre-recession level. Labor-force participation is its lowest since 1979.

Businesses won’t hire and expand unless they have more customers, but most Americans can’t spend more. Last Friday’s retail sales report showed sales down .4 percent in March. Consumer sentiment has fallen to its lowest level in nine months.

The underlying problem is the vast middle class is running out of money. They can’t borrow more — and shouldn’t, given what happened after the last borrowing binge.

Real annual median household income keeps falling. It’s down to $45,018, from $51,144 in 2010. All the gains from the recovery continue to go to the top.

Charts of the day: Indentured servitude soars

Graphic goodness from a special report from the Federal Reserve Bank of St. Louis:

 

Headlines of the day: Another day, more patterns

From Forbes:

Unemployment Is Really 14.3%–Not 7.6%

From the Los Angeles Times:

Budget cuts force California courts to delay trials, ax services

The courts have lost about 65% of their state general fund support in the last five years, a new study says, and the effect of the cuts is growing

From Deutsche Welle:

Risk of social unrest rises in EU

From the London Telegraph:

Helmut Kohl: I acted like a dictator to bring in the euro

Helmut Kohl, Germany’s former chancellor, has admitted that he acted like a “dictator” to bring in the single currency to the country, otherwise he “would have lost” had he held a referendum

Quote of the day: The mad wealth scramble

From James Howard Kunstler, writing at his blog, Clusterfuck Nation:

Things are breaking loose. Holes have appeared in the fabric of fraud and lies that passes for the world money system. They are black holes, gravitationally sucking in the things breaking loose, and as these things cross their event horizons, they will never be seen again. These things I speak of are the collateral for vast nebulae of falsely generated debts and obligations that were never intended to be honored (i.e. regarded as real). As they vanish down the wormholes of time, they take with them their pretenses of money value, meaning they leave reverberations of impoverishment in the shadowy place that the real world has become.

The process described above – an alchemy of physics – will begin to shed light where the shadows have been, revealing a much harsher world in sharp contours and shocking color, for instance: red, the color of ink representing losses on real balance sheets of every household, every enterprise, and every government the whole world round. A scramble for safety now ensues, not just to lay hold of anything with remaining real “moneyness,” but for the resources that drive the kind of economies we have. In other words, for gold and silver, and for oil and gas.

Headlines of the day: Looking for patterns?

From the London Telegraph:

Europe’s leaders paralysed as EMU jobless rate hits record high

Eurozone unemployment reached a record 12pc in February and looks certain to ratchet higher as fiscal cuts deepen and manufacturing continues to struggle, raising the spectre of social explosion across southern Europe

From the London Daily Mail:

U.S. sees highest poverty spike since the 1960s, leaving 50 million Americans poor as government cuts billions in spending… so does that mean there’s no way out?

From The Independent:

Pregnant women ‘more likely to miscarry as result of cuts to Government spending’

From The Guardian:

Extreme poverty could be wiped out by 2030, World Bank estimates show

World Bank head speaks of ‘auspicious moment in history’ amid criticism rhetoric is not being matched with detailed policies

From the Irish Independent:

IMF wants faster home repossessions

From Ekathemerini:

Golden Dawn wants death penalty for violent migrants

From Keep Talking Greece:

German policemen at Greek airports to check travellers bound to Germany

Stunning, infuriating: ‘The Tax Free Tour’

From Dutch public television, another stunning VPRO Backlight documentary [previously featured shows], this one exploring the dirty little corporate tricks used to avoid  paying taxes:

The program notes:

“Where do multinationals pay taxes and how much?” Gaining insight from international tax experts, Backlight director Marije Meerman (‘Quants’ & ‘Money & Speed’), takes a look at tax havens, the people who live there and the routes along which tax is avoided globally.

Those routes go by resounding names like ‘Cayman Special’, ‘Double Irish’, and ‘Dutch Sandwich’. A financial world operates in the shadows surrounded by a high level of secrecy. A place where sizeable capital streams travel the world at the speed of light and avoid paying tax. The Tax Free Tour is an economic thriller mapping the systemic risk for governments and citizens alike. Is this the price we have to pay for globalised capitalism?

At the same time, the free online game “Taxodus” by Femke Herregraven is launched. In the game, the player can select the profile of a multinational and look for the global route to pay as little tax as possible.

research: William de Bruijn
camera: Jean Counet
montage: Bart van den Broek
geluid: Tim van Peppen, Benny Jansen, Joris van Ballegoijen
productie: Marie Schutgens
animaties: Bitcaves & Motoko

What becomes clear is that borders are only meaningful for the flesh-and-blood person, while they are utterly permeable for the disembodied corporate person so beloved of the U.S. Supreme Court.

Headlines of the day: From hither and yon

From EconoMonitor:

Latest US GDP Data Show Economy Weak at Year’s End but Corporate Profits Near Record High

From RT:

Obama signs ‘Monsanto Protection Act’ written by Monsanto-sponsored senator

From World Socialist Web Site:

US food stamp use swells to a record 47.8 million

From Cornell University:

You Don’t “Own” Your Own Genes

Ethos: A documentary on money and power

Hosted by actor Woody Harrelson and written and directed by Pete Gain, Ethos is a 2011 documentary that explores the relationship between banking, power, politics, personal freedom, and environmental destruction. Among those featured are Noam Chomsky, Howard Zinn, and Chalmers Johnson.

It’s well worth 68 minutes of your time.

Student debt & financialization of academia

Paul Jay of The Real News Network interviews economist Michael Hudson on the lethal collusion of politics, banks, and academia that has inflicted a blanket of debt servitude on generations of American students.

Hudson devotes special attention to New York University, which he describes as a real estate company that wins tax exemptions by offering classes.

A transcript of the interview is posted here.

Frankie the First: The austerian pope

Pay close attention to this Oscar Leon report from The Real News Network on Jorge Mario Bergoglio, the Argentinian Cardinal transformed into Pope Francis I — signifying his homage to St. Francis of Assisi, that most austere-living of saints.

Indeed, watch the headlines displayed in the video, and their invocation of papal austerity as sign of the new pope’s conspicuous frugality.

Watching the video, we had a perverse thought.

Frankie’s no liberation theologian, out to redistribute wealth. No, he’s here to preach the religious benefits accruing from the embrace of austerity. The poor accrue virtue by acceptance of their status, nay, by embracing their status.

Looking back at the recent history of the Catholic church, we see an easy acceptance of fascism in preference to communism, the provision of escape lines for Nazi war criminals in the wake of Nazi defeat, and the ongoing cooperation and funding of radical right underground groups during the Soviet era.

Who better to sell the austerian message to the peoples of, say, Spain, Portugal, and Italy, that a Latin American pope who names himself after a hippie saint?

And he’s proven himself quite accommodating to oligarchical imposers of austerian measures, and now runs a city state with its own bank-with-a-troubled history, laundering both mafia and spook money.

Anyway, just a thought.

Pope Francis accused by family and friends of tortured priests

A full transcript of the segment is posted here.

UPDATE: Donning our Madison Avenue thinking caps, we came up with a slogan for the Vatican to use to sell folks on latter-day indentured servitude:

Poverty: Not just a necessity,
It’s a divine virtue!

Quote of the day: ‘Democratizing’ debt

From economist Michael Hudson:

Book V of Aristotle’s Politics describes the eternal transition of oligarchies making themselves into hereditary aristocracies – which end up being overthrown by tyrants or develop internal rivalries as some families decide to “take the multitude into their camp” and usher in democracy, within which an oligarchy emerges once again, followed by aristocracy, democracy, and so on throughout history.

Debt has been the main dynamic driving these shifts – always with new twists and turns. It polarizes wealth to create a creditor class, whose oligarchic rule is ended as new leaders (“tyrants” to Aristotle) win popular support by cancelling the debts and redistributing property or taking its usufruct for the state.

Since the Renaissance, however, bankers have shifted their political support to democracies. This did not reflect egalitarian or liberal political convictions as such, but rather a desire for better security for their loans. As James Steuart explained in 1767, royal borrowings remained private affairs rather than truly public debts. For a sovereign’s debts to become binding upon the entire nation, elected representatives had to enact the taxes to pay their interest charges.

By giving taxpayers this voice in government, the Dutch and British democracies provided creditors with much safer claims for payment than did kings and princes whose debts died with them. But the recent debt protests from Iceland to Greece and Spain suggest that creditors are shifting their support away from democracies. They are demanding fiscal austerity and even privatization sell-offs.

This is turning international finance into a new mode of warfare. Its objective is the same as military conquest in times past: to appropriate land and mineral resources, communal infrastructure and extract tribute. In response, democracies are demanding referendums over whether to pay creditors by selling off the public domain and raising taxes to impose unemployment, falling wages and economic depression. The alternative is to write down debts or even annul them, and to re-assert regulatory control over the financial sector.

Read the rest.

Headlines of the day: Forests, being eaten away

From Al Jazeera:

Ireland mulls selling forests to pay debt

Controversial new scheme is part of efforts to meet IMF demands to reduce debt

From the Washington Post:

China’s disposable chopstick addiction is destroying its forests

Headlines of the day: Austerity in action

Both at home [from the New York Times]:

Recovery in U.S. Is Lifting Profits, but Not Adding Jobs

And abroad [also from the New York Times]:

Greece, Creditors to Discuss Public Sector Layoffs

A must-see video: Wealth Inequality in America

From vlogger politizane, a stunning visualization of wealth inequality based on research by researchers Michael I. Norton [Harvard] and Dan Ariely [Duke]  reported in “Building a Better America—One Wealth Quintile at a Time,” published in Perspectives on Psychological Science [PDF].

For more on wealth inequality, see here.

Video report: The Financialization of Food

From The Real News Network, a Paul Jay interview with Sasha Breger Bush, lecturer at the University of Denver’s Josef Korbel School of International Studies. She describes her specialty as “International political economy, development studies, global financial markets, food and farming, and political theory.

A transcript of the discussion is posted here.

Chart of the day: The rich, naturally, got richer

From UC Berkeley economist Emmanuel Saez, fresh proof [PDF] that what was financial crisis for the rest of us was a gold opportunity for those at the top, siphoning off the dwindling wealth of the mass for the private profit of the few. Click on the image to enlarge: