Archive for the 'capitalism' Category



Let’s say you’re Sen. John Dough. You’re running for re-election. You need money. Often, you have to travel to where the money is to get it. Say, in Los Angeles. So you fly. But you wish to avoid flying commercial. Too much time wasted. Too many hassles, mingling among the proletariat in lines and in the damn crowded plane.

Back in the good ol’ days, you’d merely text your old pal I.B. Loaded, CEO of Amalgamated Rules Bender Inc. Loaded’s given you tons of cash over the years for your campaigns. He, his wife and children, his employees, his vendors — all have seen the wisdom of slipping dough to you, your official campaign committee, and, of course, your “Leadership PAC.”

And, of course, Loaded would have his Gulfstream V (I mean, rather, his corporate-owned private jet) fly into Reagan National to pick you up (after, of course, a taxpayer-paid car and driver deposited you, your luggage, and golf clubs there). Loaded himself would be on the plane to entertain you and see to your every need. After you’d both consumed a few hits from Loaded’s stash of 40-year-old Glen Garioch, he’d probably steer the conversation into an arcane tax-policy issue that would likely benefit Amalgamated Rules Bender Inc. to the tune of millions of dollars.

You’d be the only passenger on a sophisticated jet costing $59 million with an hourly operating cost of about $7,000. Yet, before 2007, you’d only pay the cost of first-class airfare to LA — maybe a grand or less, depending on discounts. Then Congress shut the door to corporate-provided air travel by passing the Honest Leadership and Open Government Act.

And this week, those idiots at the Federal Election Commission reopened the door.
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Former Rep. William J. Jefferson, a Louisiana Democrat, is off to prison. In August, a jury told him that bribery, racketeering and money laundering were not acceptable behaviors for anyone, let alone a member of Congress.

As a felon, Jefferson has had equally despicable company: Rep. Andrew J. Hinshaw, R-Calif. (accepting a bribe); Rep. Charles Diggs Jr., D-Mich. (payroll kickback scheme); Rep. Michael Myers, D-Pa. (accepting bribes from FBI agents impersonating Arab businessmen); Reps. John Murphy, D-N.Y., Frank Thompson, D-N.J., John Jenrette, D-S.C., and Raymond Lederer, D-Pa. (Arab businessmen bribery scandal, a.k.a. Abscam).

And Rep. Mario Biaggi, D-N.Y. (extorting money from a defense contractor); Rep. Mel Reynolds, D-Ill. (sex with underage campaign worker, bank fraud); Rep. Walter Tucker III, D-Calif. (accepting and demanding bribes); Rep. Dan Rostenkowski, D-Ill. (felony mail fraud); Rep. James A. Trafficant, D-Ohio (bribery, conspiracy and racketeering); Rep. Randy “Duke” Cunningham (accepting bribes from defense contractors) and Robert W. Ney, R-Ohio (Abramoff scandal). I’m sure readers can name more. Full Story »


money burning earthImagine that in a few years you wake up to news reports on the radio that your town is under a flash flood watch. The ground has been so baked by the recent drought that water can’t soak in, and so the pounding rain is just flowing off into streams and filling low-lying areas.

What’s worse is you’ve got a pediatrician appointment today for both of your kids – their asthma is acting up and the drugs aren’t working as well as they should be. Furthermore, your son is still recovering from a case of malaria he picked up, probably from a mosquito bite he got during the pee wee football game by the reservoir a couple of months ago. At least the rains will damp down on your environmental allergies some today. Better rain, even flooding, than the dust storm that blew through the area a couple of weeks ago. That caused several major pileups and fouled up ventilation so bad that some of the buildings downtown are still closed..

As you pull together breakfast for the family, there’s no milk because it’s too expensive. Full Story »


carboholic

tdat

Is the Earth’s climate approaching a critical transition, aka a “tipping point,” beyond which major and largely unpredictable climate changes are guaranteed to occur? At this point, scientists do not know the answer to that question. A study published in the journal Nature aims to explain the mathematics of critical transitions beyond just the Earth’s climate and in the process, determine if there are early-warning signals that indicate when a complex system is about to undergo a critical transition.

According to the paper, every complex system, whether it be climate, asthma attacks and epileptic seizures, or systemic crashes in financial markets, exhibits the same basic precursor signs of a tipping point, at least mathematically speaking. Full Story »


The word carries a sense of enforced separation — walls, as in pay walls. Keep out those who don’t belong — meaning those who don’t, won’t, or can’t pay.

Managers of content-provision corporations — there’s no point any more in calling them “newspaper companies” — are desperate for revenue after enduring print ad losses. So, after 15 years of giving away the milk for free online, they’ve finally mustered up the cojones to at least talk about charging for content on their websites. They speak of this in a language the reporters they’ve fired would never use — the content provision managers talk of monetizing their sites, of incorporating paid-content strategies, of generating additional digital revenue.

And if you believe pay-content impresario Steven Brill of Journalism Online, about 1,000 publishers — er, content-provision specialistsexpect to make $900 million at $8.33 a month from the 10 percent of online website visitors Mr. Brill thinks would be willing to cough of up the cash. But an American Press Institute study says only 51 percent of publishers (who voluntarily completed a survey) think they can charge successfully for online content.

But what does “successfully” mean? And who gets to define it? Easy: Cui bono?
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Mr. President, Mr. Vice President, Speaker Pelosi, Majority Leader Reid, Senator Bennet, Senator Udall, Representative DeGette:

As we all know, the nation has been alive with discourse of all flavors over the current state of the health care system and the insurance industry. Recently, Senator Baucus has brought forth his proposal, dubbed by some critics (rightly so, in my opinion) the “Insurance Industry Profit Protection and Enhancement Act.

Please listen: The very reason we need the government to intervene is because millions of us have a Sword of Damocles hanging over our heads. Private industry has already proven that it cannot be trusted to look out for its bottom line and simultaneously safeguard and maintain the health of the American people, even if some of us are misguidedly rallying in the streets against our interests at the urgings of their preferred Chicken Littles of media and industry.

It is my belief that what needs to be accomplished is the affirmation of every American citizen’s right to a basic level of health, security and well-being above a private company’s right to make a profit, which it currently does in part by conveniently discounting and disregarding its customers’ human rights at its whims. Private insurers need to know, as my mother would say, that “your rights stop where another one’s starts.” Full Story »


You’re honey child to a swarm of bees
Gonna blow right through you like a breeze
Give me one last dance
Well slide down the surface of things

You’re the real thing
Yeah the real thing
You’re the real thing
Even better than the real thing

- U2

Fantasy stories, myths, legends, tall tales, fairy tales, horror, all these have been with us for a very long time. Science fiction, as well, has been with us since Mary Shelley found herself in a bet with Lord Byron about the possibility of writing a new kind of horror, one not grounded in the gothic.* So the presence in our popular culture of stories based in unreality of one form or another is certainly nothing new.

It seems to me that there’s been a lot more of it lately, though. Full Story »


For 20 years, bureaucrats in Brussels have monitored the curvature and shape of more than 40 types of vegetable and fruit. 

Rule-makers claimed that this protected European consumers from poor quality, but it is hard to argue that a lump on the side of a potato alters its flavour or nutritional value in any way.  A welcome respite came on 1 July 2009, when 36 classes of produce were deregulated.

European risk-aversion is built on the complacency that comes with good fortune. Companies have accepted high taxation, used for social entitlements, in exchange for protectionist agreements.

The credit crisis has exposed an interdependency that confounds unemployment targets, raises prices, and leaves state finances mightily exposed to the experiences of a small number of national champions. Full Story »


The newspaper industry promises it will begin charging for news online. But it shares a similar problem with the music industry. It has allowed consumers of news for well more than a decade to treat news as a free good.

Further, during that decade, the newspaper industry has purposely deteriorated its product in a vain attempt to chase the last dram of declining advertising revenue. To do this, it has cut costs in the two principal areas it can — paper and people. Physically, newspapers have shrunk in height, width and number of pages, reducing the amount of newsprint required. In 1990 America’s daily newspapers had 56,900 staffers; 5,900 journalists lost their jobs in 2008; and thousands more have been whacked this year. And it’s the expensive high end of the experience spectrum that the industry has callously discarded. So profit levels remained tolerable to shareholders, but only because of decreased costs — not increased revenue.

And the titans of the industry now say they’re going to charge for a product produced by fewer people with less experience that’s led to far more editing errors and one-source stories that reveal much in their shallowness about the quality of the product being sold? Good luck with leading the paid content charge, Rupert.
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NFL Commissioner Roger Goodell has conditionally reinstated former Atlanta quarterback Michael Vick, who was convicted of running a dogfighting ring in 2007. Vick served 23 months in federal prison, followed by two months of house arrest.

Last Thursday the Philadelphia Eagles answered the question as to which team would sign a convicted dog-killer (there were 32 possible answers to the question, and “none of the above” wasn’t one of them), and in doing so touched off a long-awaited PR war for the souls of their stunned fans. Full Story »


My new Democratic congressman, who barely bested an entrenched Republican, has disappointed. Rep. Eric Massa, NY-29, has parted with his most cherished, pre-election promise. He has gained power; now, like all members of Congress, he wishes to keep it. Now he’ll take the “tainted” money other politicians do and fabricate a specious reason for doing so.

Flip, from 2007:

I promise that when I am elected to Congress, I will always put the American public above everything else. Unlike 99.9% of Congressional Candidates, I have never accepted a single cent of Corporate PAC money … [emphasis added]

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And so, as i predicted in December, it came to pass that GMAC was given bank-holding company status and GM declared bankruptcy. Chrysler did too, but as always Chrysler is an afterthought. With the benevolence of the taxpayers and their representatives ushering GM through a very quick bankruptcy process, something called “The New GM” has emerged phoenix like from the ashes of a house fire it set by falling asleep with a lit cigarette. We’re treated to headlines of how wonderful the new company will be and optimistic scenarios of returns to profitability in the near term. But let’s put the word “new” into its proper, governmental, context. When the CEO says “new”, hear your Congressperson saying “reform” or your presidential candidate saying “change”.

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Twenty-seven people nominated to ambassadorships by President Obama, as tracked by the Center for Responsive Politics, have made $4,475,725 in campaign contributions, almost all to Democrats, since 1989.

These 27 nominees contributed $144,431 to President Obama and $57,900 to once-rival and now Secretary of State Hillary Clinton, reports the center. They have bundled (collected, as middleman, donations from others) at least $5 million for the president’s campaign and at least $1,782,500 for the president’s inauguration.

The president’s most recent nominee as ambassador to Germany, former Democratic National Committee finance chair and former Goldman Sachs executive Philip D. Murphy, and his wife “have contributed nearly $1.5 million to federal candidates, committees and parties since 1989, with 94 percent of that sum going to Democrats, according to a Center for Responsive Politics analysis. They also contributed an additional $100,000 to Obama’s inauguration committee.”

But this isn’t the real news. According to figures kept by the American Foreign Service Association, President Obama is making political patronage nominations to ambassadorships at twice the rate of the previous nine presidents.
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not_that_into_youA modest proposal, perhaps.

It’s been entertaining watching American public “discourse” since the election. (I use that word in its broadest, most ridiculous sense, since nothing that hinges so completely on self-absorption, rank ignorance and pathological dishonesty can be accurately characterized by such a noble word. But indulge me. I’ve been working on my irony lately.)

On the one hand you have conservatives fainting dead away that we’re now in the clutches of a “socialist” president. Never mind that these folks wouldn’t know a real socialist if he was gnawing their balls off. Never mind that most of these folks think “socialist” is the French word for Negro. Never mind that Obama demonstrably is to socialism what Joe the Plumber is to brie-sucking Northeastern intellectualism. As arch-conservative TV pundit Stephen Colbert says, “this is a fact-free zone.”

On the other you have the righteous outrage of the progressosphere, which feels six different kinds of betrayed by a president who promised them the moon and stars and has now left them to what looks like at least a four-year walk of shame. If I might borrow from an old fraternity joke, imagine the following scene from the Oval Office: Full Story »


A week after the election of Barack Obama as the 44th president of the United States, the chief of his transition team, John Podesta, served notice that the president would make good on his campaign promise of change in the area of ethics. In a statement, Mr. Podesta said:

President-elect Barack Obama has pledged to change the way Washington works and curb the influence of lobbyists. … During the campaign, federal lobbyists could not contribute to or raise money for the campaign. … [T]he president-elect is taking those commitments even further by announcing the strictest, and most far reaching ethics rules of any transition team in history.”

Presumably, that means President Obama wishes to end the pay-to-play philosophy that pervades the practice of politics. Well, he’s got some explaining to do, because what he promises is not always what he does.
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I’d like to thank President Obama for giving me a $400 payroll tax cut. I’d sure like to help out with the economic recovery.

But that tax cut, thanks to 41 consecutive days of gasoline price increases, now amounts to only $150. Figuring my local commuting habits and trips to visit family and friends, I’ll pay about $700 to fill up my little Scion for the rest of the year at the current national average of $2.62 a gallon. I’ll be spending about $250 more at this price than I would if gasoline had remained near the December average of $1.62.

If the price of gasoline rises more (wanna bet?) over summer, I’ll be handing even more of my payroll tax cut to Big Oil.

So why the sharp, 62 percent increase? Why did the “experts” who are supposed to understand gasoline and oil markets get it wrong? Journalists have indeed been telling us the “experts” were wrong and what factors have been driving gasoline prices higher — but not why the “experts” erred in missing those factors.
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Part eleven in a series

“China is more capitalistic than any capitalist country.”

Amy, an employee at a jewelry booth in Beijing's pearl market, strings together a strand of pearls after striking a bargain with a shopper.
Amy, an employee at a jewelry booth
in Beijing’s pearl market, strings
together a strand of pearls after
striking a bargain with a shopper.

Roger Perkins of Cooper Industries told us that early on our trip. You’d have to see it to believe it, perhaps—but I’ve seen that firsthand several times on the trip, most dramatically at the silk and pearl markets. It happens on the scale of global companies, too.

“China is pragmatic,” says John Chen of Prometric, a company that specializes in testing and surveying. “When it wants to be capitalistic, it’s capitalistic. When it wants to be communist, it’ll be communist.

Chen likens China’s approach to situational management: different situations require different management approaches.

China needs the influx of cash that capitalism provides in order to continue to fuel its burgeoning economy. But at times, the country’s top-down dictatorial style allows things to get done that otherwise couldn’t happen in a democracy.

“India, for instance, is the most democratic country in the world,” Chen points out by way of example. “Everything gets debated to death and nothing ever gets done.”
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“A TOP TEN LIST? Really? Are you fucking kidding me, Cargo? You do not appear to have the qualifications to make such a list, what with your lack of tooth gaps and, well, jeez. I mean, you? A Top Ten list? Gawd. You must be out of mate–OW!”

No.

As the American Dream™ continues to gnaw on every last bit of exposed flesh it can pick from our flailing limbs, it will no doubt, for many of us, also eat those debt-strangled, rapidly depreciating havens of dirty secrets, personal failure and indoor allergens known as parcels of real estate.

It will eventually, after a judicial process, a waiting period and probably more judicial processes, send a henchman or three to, at long last, relieve you of the burdens of homeownership and shelter.

But, come on. People in any line of work are nonetheless good, hard-working people too! They know just as well as anybody that remembers what it’s like to be employed in recent memory that work sucks and is hard, and comic relief can get us through even the toughest of times.

Accordingly, when the Evicto Man comes to summon you to your shiny new life as a spent munition in America’s War on Prosperity, here are the:

TOP TEN ADVISORIES FOR YOUR FRIENDLY FORECLOSURE EVICTION REPRESENTATIVE!

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Gerg wasn’t a monster, they insisted.

He was big. He was temperamental. He was covered in green fur and didn’t wear pants. He was ever demanding. His face changed color, shape and expression depending on who was looking at him. Everybody loved Gerg, and Gerg loved everybody, but not in that genuine, heartfelt way — more like a golddigger cherishes her trophy husband, or a cheerleader loves the ugly friend she keeps around to look better in front of guys. But the support was strong, the words as heartfelt as they could sound, and the dubious sincerity of it all was easily drowned out with more wide smiles and more pairs of outstretched arms.

Gerg was, indeed, the town’s beloved mascot. On top of it all, he was always hungry. Full Story »


You’re a coalition of multinational corporations. Imagine this deal: Invest $1 in lobbying. Get a return on investment of $220. Save $100 billion on taxes, too. Nice, eh?

That’s the conclusion of three University of Kansas professors who undertook an empirical analysis of the American Jobs Creation Act of 2004 to study rates of return for money spent on lobbying, reported The Washington Post in an April 12 story by Dan Eggen.

This law — this shady excuse for a law with a name only charlatans could love — allowed companies that had earned profits overseas to inexpensively bring that money back into the States. The customary tax rate on such profits was 35 percent. But this elegantly named process — repatriation of profits — gave companies a one-time chance four years ago to haul the money home, paying only 5.25 percent.

The act was a tax holiday sought by a coalition of companies, primarily big pharmaceutical and high-technology corporations, all because they sought to pay little or no taxes on profits generated overseas — and they concocted a successful scheme to pull it off.
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