Author Archives: deanwebb

This Is Why We Can’t Have Nice Things

I know things have to be bad when I turn on C-SPAN to watch the House of Representatives. I did it to watch the debate on the Boehner budget proposal. One representative hit the nail on the head: this bill enshrines the mistakes of the Bush II era. The giveaways that administration made possible for big oil, big finance, big incomes, probably also big hair for all I know… If it was big, Bush’s policies benefited it. If it was too big to fail, Bush’s policies were a dream come true. And now that 21% of hardcore Bushites are doing the equivalent of a temper tantrum to make sure their Dear Leader remains an albatross around the necks of Americans forever.

The US Government created $16 trillion out of thin air to bail out big automobiles and too big to fail finance. Yet, it can’t find a nickel, it seems, to aid the poor. Citibank could have failed and AIG could have been blown away and the FDIC had the money necessary to make sure that no depositor would lose his or her money: the former head of the FDIC revealed that Greenspan, Paulson, and Geithner all told her, basically, to rescue the gamblers. The richest of the rich, in other words.

America has the wherewithal to run its affairs fairly and properly. The problem is that the richest of the rich are greedy and that they own enough politicians to keep the laws in their favor. Boehner’s budget is awful. Reid’s is laughable. All of these budgets, in some way or another, ensure the rich keep their goodies. Boehner’s benefits them the most, while Reid’s is essentially no real change, so it’s no loss to them.

The Republicans aren’t good for America. The Democrats aren’t as bad, but they’re still not good. The Tea Party is suicide. The richest of the rich have had their grip on the nation since the crisis of 1861, when the US plunged into war with itself. To finance that war, the bankers did not pledge their money as grants: they loaned it to the government on condition that the debt be perpetual.

We live in a plutocracy, with trimmings of a republic. There are charades enacted by the plutocrats to appease the masses, but the true power is in the hands of the richest of the rich. Every political faction with organization is manipulated with the money of the richest of the rich. Not every person: just enough in order to mess everything up.

As a nation, we are governed by a class that has no compassion for the poor. This is why we can’t have nice things.

Save the Gamblers?

Democracy Now! ran a story about the debt crisis and who will stand to benefit most from its resolution. Hint: it’s the same group of people that benefited from the bailouts. All these benefits, of course, come off of the backs of people that don’t sit on a bank’s board of directors.

This morning, the talking heads on Face the Nation were saying that if we don’t get a debt solution in place, interest rates will go up, and that’s going to be bad for the average American.

So let me get this straight: interest rates are bad when they go up.

Well, that’s what I’ve been saying for a while, with the addendum that interest rates are just plain bad. The only thing they do is move money from the poor to the rich, with concomitant social ills following in the wake of increasing income and wealth disparity.

And what we have now are the ratings agencies telling us that if the banks don’t get what they want, we’ll lose our national credit rating and we all suffer terribly for that. The Greeks are being told to sell off their nation so that foreign banks won’t have to sustain losses. Are we in a similar position? Or at least heading that way?

We are governed by our financial institutions. The Constitution exists now as a framework within which financial institutions must operate if they wish to increase profits. The Constitution has some brilliant ideas in it, but it has been perverted in its current application. This is not a sudden thing: it is a long process that has generated calls for alarm and attention for over two centuries.

What is a Christian?

Ainsley Earhardt tells me that, compared to Rick Perry, I’m not a Christian. Never mind, that, according to Fox News’ own segment, at 2:36 for those who care to use a slider, I am a member of The Church of Jesus Christ of Latter-Day Saints. (emphasis mine)

At 4:14, the host asks does it matter what other people think about us? Let me interject my emphatic yes: as a member of a religious denomination that faced an extermination order in 1830s Missouri, as a descendant of a man who was forced to flee the USA to seek religious freedom elsewhere, YES it matters very much. (emphasis mine)
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There is no American flag in heaven.

Whether you believe in heaven or not, there is still no American flag there. God is not an American, and neither is Jesus. I state this in a position contrary to one seemingly adopted by hard-right conservative Christian ideologues.

Neither God nor Jesus has signed any sort of trade deal, mutual defense pact, or even a treaty of goodwill with the USA. God, therefore, is not on our side. He’s on His own side and those who are not with Him are against Him.

Who is against Him? Jesus said one cannot serve both God and Mammon. Mammon is the Hebrew word for money, not some arcane Philistine deity. Mammon is money. Money is the world made to go ’round by money. Money is not love – it is cruelty, it is interest rates, it is moral hazard, it is corruption, it is that, when loved by man, becomes the root of all evil. To say otherwise is to lie.
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Goldman Sachs Hates You

Goldman Sachs hates you. Now that the BSkyB takeover is dead, thanks to revelations that Rupert Murdoch’s employees were the private-sector equivalents to the KGB, all the big brokerages that took up huge positions on BSkyB stock in anticipation of that merger are left holding a very expensive bag.

They thought the BSkyB stock would go up, but it is not going to do that anymore. They will take big losses on their positions unless something else happens to get that stock back up. Goldman Sachs just issued a strong “buy” recommendation to its clients in a naked attempt to prop up its bottom line by selling its stock to bigger fools than they. That’s why Goldman Sachs hates you.

The bigger picture is that lots of former GS executives are all over the financial side of the US Government, and they carry that hate with them. Given a choice between ruining 90-95% of Americans or letting the 1% that have been pillaging take a loss, the GS crowd and its cronies will take the first option, every time.

The US Default: Whose Fault?

It’s simple to figure this out. The Democrats are making deep concessions. The Republican leadership is working to find a way, but hasn’t made concessions as deep as the Democrats have offered. The Tea Party crowd is refusing to make any kind of deal at all. If August 3 shows up and the USG can’t mail out checks that day, blame the Tea Party.

Yes, I want fiscal responsibility in my government. Now is not the time to rip the entitlements completely apart. Tea Party talking heads say that raising taxes in a recession is a Bad Thing for the economy. This is true. But removing government spending is a Catastrophic Thing. We’re not ready for that level of drastic measure. If the Tea Party is serious about fiscal reform, they’ll have to do it gradually and make concessions.

Cutting government spending all at once would remove a bigger chunk of GDP than raising taxes by the amounts suggested. To keep the economy going the way the bankers would like, the Treasury and Fed will have to do QE3 in a highly flagrant way. The Tea Partiers break out in a rash when they hear “inflation”, but that’s what they’ll have if spending is cut. If they somehow got their wish and kept the money supply where it is, we’d have a complete crash, thanks to a liquidity collapse.

It’s basic economics, but ideology blinds the Tea Party the same way it blinded the Communist Part of China when it started the Great Leap Forward. Ideology ruined a nation before, and it can ruin one again. When the US defaults, I’ll blame the blind ideologues in the Tea Party.

Czech Dream

Czech Dream is a compelling documentary that asks some penetrating questions about the power and pervasiveness of advertising. Although the filmmakers lied about the new hypermart, the ending showing the ads for a fake market coming down to be replaced with ads for cigarettes and credit cards made me ask which ads were really more damaging.

Apple’s Exploiting Example

Apple makes the iPod, right? Sure they do, but where? Try overseas. Apple employs 27,250 overseas employees at an average salary of $11,743. Sure, the company is making great profits, but that’s because it’s both exploiting overseas labor and refusing to give jobs to Americans. Most of its US jobs are low-paying, to be fair. No, wait, that’s unfair!

7789 of Apple’s US jobs pay an average of $28,244, about 2.5 times what the Chinese and Filipinos are paid, but still hardly anything relative to what it costs to live here. And before someone brings up the “it’s cheaper to live in Asia” argument, there’s a reason why it’s cheaper there: they don’t have access to lots of things that are necessary for getting around in the USA. They still face massively more expensive food prices, crowded living conditions, and poor access to health care – kind of like the poor in the USA, but without cars.

6101 professionals and engineers working for Apple’s iPod division made an average of $86,051. They can afford the stuff the rest of the workers made. This is a pattern common across US-based firms and firms that were formerly based in the US, but which moved their HQs to Switzerland to avoid paying taxes to support the nation that gave them their start.

While my own salary is just above the nation’s per capita income, I don’t earn enough for my household of 5 to have a total income equal to that per capita number times 5. I don’t have health care, it’s kinda crowded in this house, and food and fuel are part of my inflationary worries, even if the USG doesn’t want me to think about them. I’m not part of the world of the Apple engineers and the rest of the iPod users. I’m constantly asked to “do more with less”, which is a codephrase for “you’re going to be exploited more.” The whole world has to do more with less so that those who have more can get more still.