Category Archives: Wall Street Fraud

Voting the “Lesser of Two Evils” is a Wasted Vote for the Status Quo

14 Sunday Oct 2012

Posted by in Corporate State, Empire, Wall Street Fraud

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What was that Einstein quote again?…”Insanity is doing the same thing over and over again and expecting different results.”

Another blogger, the Conflicted Doomer, posted a write-up of why she was voting for Obama this November:

…I’ve thought about voting for one of the third party candidates – either the Peace and Justice Party or the Green Party – but, quite honestly, neither has a chance in hell of winning and by the time either gained enough strength to have a viable chance, the party will likely be over (though that wouldn’t preclude me from voting for them for Congress or at the local level).  If there is any chance of enough change coming to at least hold a nation together while the Empire goes down, it will have to come from the Empire’s rulers because they think it will save the Empire.  It won’t, of course, but it might save the nation.

You may see that as compromising my principles.  I see it as pragmatic.  I’m not telling you how to vote here, only why I am voting for the person I will vote for in November.  You have already, I hope, done your own wrestling and come to your own conclusions as I write this.

I’ve often said here, there’s not a dime’s worth of difference between the two parties when it comes to running the country, because neither party can let go of the illusion that the Empire is the nation. For the most part, I believe that, although I do think that if you stand that dime on its edge, you might find such a difference.  And in the end, it’s that slim, dime’s edge of a difference I see that finally decided which way I’ll cast my vote…

While I understand her logic, I don’t agree with her conclusion. Casting your vote with one of the two parties is what the establishment wants the populace to do. It keeps the oligarchic powers in place and preserves the ongoing corruption. Thinking that change will have to come from the figureheads of status quo is a naive and dangerous belief, and it’s this foolish mindset that has gotten us the “elections” we have today – a corporate-funded reality TV series that runs every four years with the same results…

Voting pragmatically is what keeps the indistinguishable and corrupt two-party system in place. Wedge issues are simply red meat for the populace to fight over and keep voting for “the lesser of two evils.” Core issues like U.S. militarism, the security and surveillance state, wealth inequality and the destruction of the middle class, monied interests controlling government, climate change and a fossil fuel-based economy, as well as other environmental issues, etc. will stay the same between the two parties.

M. G. Piety explains why voting within the confines of a morally bankrupt system only leads to further entrenchment of corporate rule and a deeper grave for the long-dead liberal class.

…There’s been a lot of angry posturing from Americans who think of themselves as progressive about how the purported political center in this country has been moving inexorably to the right, yet it’s these very people who are directly responsible for the shift. If you vote for a candidate whose farther right than you would prefer, well, then you’re shifting the political “center” to the right. Republicans aren’t responsible for the increasingly conservative face of the democratic party. Democrats are responsible for it. Democrats keep racing to the polls like lemmings being chased by the boogeyman.

“This is not the election to vote for real change” runs the democratic refrain. We’re in a crisis! We must do whatever it takes to ensure that the republicans don’t get in office even if that means voting for a democrat whose policies we don’t really like and which are only marginally distinguishable from those of the republican candidate. That “margin” is important, we’re reminded again and again. That little difference is going to make all the difference.

Even if that were true, which it ought to be clear by now it is not (see Bart Gruzalski’s “Jill Stein and the 99 Percent”), it would still offer a very poor justification for voting for a candidate one doesn’t really like. Why? Because it is an expression of short-term thinking. Thomas Hobbes argued that privileging short-term over long-term goals was irrational, and yet that’s what we’ve been doing in this country for as long as I can remember. Americans are notoriously short-term oriented. As Luc Sante noted in a piece in the New York Review of Books, America is “the country of the perpetual present tense.” Perhaps that’s part of the anti-intellectualism that Richard Hofstadter wrote about. “Just keep the republicans out of office for this election!” we’re always commanded. “We can worry about real change later!”

Of course anyone who stopped to think about it ought to realize that that mythical “later” is never going to come. Our choices are getting worse not better, and if we keep invoking the “lesser of the two evils” to justify them, we are in effect, digging our own graves…

Voting with your conscience is the right thing to do despite the belief that a third party has no chance. Registering your disgust with the system is the best action you can take in our faux election process that amounts to nothing more than a corporate auction.

Some other thoughts on the subject…

“The lesser-of-two-evils argument is morally obtuse, and dangerous, the first, because it means complicity with policies ultimately destructive, the second, because it induces an undeserved self-righteousness which next time around would yield further compromise. If the people are gulled and lulled into the acceptance of mock-democracy, courtesy of Goldman Sachs and waterboarding apologist Brennan, with Obama presiding over the bread-and-circuses routine, heaven help us.”
~ Norman Pollack

“The only people who will benefit from the election of either Romney or Obama are those associated with the private oligarchies that rule America.”
~ Dr. Paul Craig Roberts

“As the Republicans get more right-wing, the Democrats follow them, staying just one step behind. That will continue as long as right-wing Democrats can get elected by saying that the Republicans are worse.”
~ Richard Stallman

For those who continue to fall back on the comforting excuse of “voting for the lesser of two evils” in the morally ambiguous and desperate hope of receiving some social bread crumbs, you are complicit in supporting America’s inverted totalitarianism and the strengthening of a Corporate Fascist State.

You are a cog in the machine.

Reality TV Has Become the Real World for Americans

04 Thursday Oct 2012

Posted by in Capitalism, Consumerism, Corporate State, Inequality, Wall Street Fraud

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I was doing a little net surfing this morning and wondered what my buddy Jeremy Scahill has been up to. Shoot, it’s been 6 months since I’ve seen an article from him. A recent video of him reaffirms why I like him so much…

We live in this culture where we have this reality television which has become the real world, and what’s being done with our dollars, and with our soldiers, and in foreign countries in our name has become page seven.
~ Jeremy Scahill

He still has a sense of humor too.

 
Concerning those debates, which in this day and age are only another reality TV production brought to you by Wall Street, Democracy Now had a truly jaw-dropping show on the corporate takeover of the political debates over the last couple of decades. Secret agreements were formed between the two parties which framed the “debates” so that only predetermined, soft-ball questions would be asked and no third party candidates would be allowed to participate. When you watch a “presidential debate”, what you are seeing is pure fluff and staged answers. You might as well be hearing ventriloquist voices emanating from manikins. And to top it all off, one of the primary corporate sponsors of the debates is Anheuser-Busch. How fitting… Bud Light and cheesy made-for-TV “reality” shows constitute the method by which the American sheeple choose their ‘leaders’. I don’t know whether to laugh or cry.

I urge you to watch this interview. It explains a lot about the development of the modern American Cororatocracy and the dumbing down of its population of “consumers”.

 
Here is George Farah’s Website (click the pic to go there):

Future Forecast: Rising Fascism, Expensive Food, and Social Unrest

03 Wednesday Oct 2012

Posted by in Climate Change, Consumerism, Corporate State, Ecological Overshoot, Empire, Environmental Degradation, Military Industrial Complex, Peak Oil, Wall Street Fraud

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I found the following story pathetic, predictable, and a microcosm of America’s inverted totalitarianism. This is the corporate state flexing its fascist muscles with for-hire private armies, replete with the latest face-stomping boots and weaponry from Homeland Security. You can never have too much police intimidation in the land of the fearful and home of the paranoid.

Basic rights are what the workers were requesting, but the corporations are working hard to ensure American workers are on the same footing as laborers of Third World sweatshops.

…and don’t forget the sonic cannons to completely suppress the oppressed:

Criminalizing dissent extinguishes free speech. The threat of a nightstick cracking open your head is a good silencer. I fail to see much difference between America and China at this point. A lot has been written recently about the rise of America’s ‘Security and Surveillance State’. Let’s recap:

Why Don’t Americans Care About Democracy at Home?

…the financialization of the economy and culture has resulted in the poisonous growth of monopoly power, predatory lending, abusive credit card practices and misuses of CEO pay. The false but central neoliberal tenet that markets can solve all of society’s problems has no way of limiting the power of money and has given rise to “a politics in which policies that favor the rich … have allowed the financial sector to amass vast economic and political power.”[24] As Joseph Stiglitz points out, there is more at work in this form of governance than a pandering to the wealthy and powerful: There is also the specter of an authoritarian society “where people live in gated communities,” large segments of the population are impoverished or locked up in prison and Americans live in a state of constant fear as they face growing “economic insecurity, health care insecurity [and] a sense of physical insecurity.”[25] In other words, the authoritarian nature of neoliberal political governance and economic power is also visible in the rise of a national security state in which civil liberties are being drastically abridged and violated.

As the war on terror becomes a normalized state of existence, the most basic rights available to American citizens are being shredded. The spirit of revenge, militarization and fear now permeates the discourse of national security. For instance, under Presidents Bush and Obama, the idea of habeas corpus with its guarantee that prisoners have minimal rights has given way to policies of indefinite detention, abductions, targeted assassinations, drone killings and an expanding state surveillance apparatus. The Obama administration has designated 46 inmates for indefinite detention at Guantanamo because, according to the government, they can be neither tried nor safely released. Moreover, another “167 men now confined at Guantanamo … have been cleared for release yet remain at the facility.”[26]

With the passing of the National Defense Authorization Act in 2012, the rule of legal illegalities has been extended to threaten the lives and rights of US citizens. The law authorizes military detention of individuals who are suspected of belonging not only to terrorist groups such as al-Qaeda but to “associated forces.” As Glenn Greenwald points out, this “grants the president the power to indefinitely detain in military custody not only accused terrorists, but also their supporters, all without charges or trial.”[27] The vagueness of the law allows the possibility of subjecting US citizens who are considered in violation of the law to indefinite detention. Of course, that might include journalists, writers, intellectuals and anyone else who might be accused because of their dealings with alleged terrorists. Fortunately, US District Judge Katherine Forrest of New York agreed with Chris Hedges, Noam Chomsky and other writers who have challenged the legality of the law. Judge Forrest recently acknowledged the unconstitutionality of the law and ruled in favor of a preliminary barring of the enforcement of the National Defense Authorization Act.[28]

The anti-democratic practices at work in the Obama administration also include the US government’s use of state secrecy to provide a cover or prevent being embarrassed by practices that range from the illegal use of torture to the abduction of innocent foreign nationals. Under the rubric of national security, a shadow state has emerged that eschews transparency and commits unlawful acts. Given the power of the government to engage in a range of illegalities and to make them disappear through an appeal to state secrecy, it should come as no surprise that warrantless wiretapping, justified in the name of national security, is on the rise at both the federal and state levels. For instance, the New York City Police Department “implemented surveillance programs that violate the civil liberties of that city’s Muslim-American citizens [by infiltrating] mosques and universities [and] collecting information on individuals suspected of no crimes.”[29] And the American public barely acknowledged this shocking abuse of power. Such anti-democratic policies and practices have become the new norm in American society and reveal a frightening and dangerous move toward a 21st century version of authoritarianism.

 
This police state the über wealthy are building better live up to all the hype that’s been advertised about it. There are too many horsemen (Climate Change, Peak Oil, Neoliberal Economic Policies, 6th Mass Extinction, Water Scarcity, Ocean Acidification) bearing down on humanity to even entertain the idea that the starving masses will go die quietly in some dark corner.

If There Are Riots In New York, You Can Blame Ethanol And Index Funds…

…Yaneer Bar-Yam, a physicist, complex systems theorist and general man-about-town with a pleasing CV that includes writing a book called “Making Things Work” and telling Slate that “the shortcomings of the U.N. humanitarian-response system in Haiti have a lot to do with a 50-year-old mathematical theorem known as Ashby’s Law of Requisite Variety.”

He and some friends wrote a paper, released yesterday, arguing that increases in food prices over the last few years can be explained almost entirely by two factors: financial market speculation and the growing use of corn for ethanol production rather than food.

Now these arguments have been made before, and also disputed or minimized. The new paper rejects a lot of those criticisms; more interestingly, it constructs a fairly simple four-parameter model that can pretty closely match the actual trends in food prices over the last few years:

So, neat. Also disturbing. And more disturbing is this:

That’s from their companion, non-mathy paper that proposes “that protests may reflect not only long-standing political failings of governments, but also the sudden desperate straits of vulnerable populations. If food prices remain high, there is likely to be persistent and increasing global social disruption.” The main graph is food prices, the red dotted lines are incidents of rioting. Charmingly the numbers in parentheses are death tolls. They predict global doom in 2012-2013.

We apparently value feeding our cars over alleviating worldwide hunger and misery as well as preventing global unrest. A little unrest is always good for the bottom line of the Military Industrial Complex.

“Food prices (blue) and food price model (red) including projected increases in coming months. The social unrest threshold, corrected for inflation (purple dashed line) is a level of food prices that is likely to cause food riots of impoverished populations and social disruption. Parameters as in July update, modified to include larger recent reported FAO food price index increase of 6%.” – link

And a new report buy Oxfam, Extreme Weather, Extreme Prices, looks into the grim future of food production in a world of extreme climate change:

  • Even under a conservative scenario, another US drought in 2030 could raise the price of maize by as much as 140 per cent over and above the average price of food in 2030, which is already likely to be double today’s prices.
  • Drought and flooding in southern Africa could increase the consumer price of maize and other coarse grains by as much as 120 per cent. Price spikes of this magnitude today would mean the cost of a 25kg bag of corn meal – a staple which feeds poor families across Africa for about two weeks – would rocket from around $18 to $40.
  • A nationwide drought in India and extensive flooding across South East Asia could see the world market price of rice increase by 25 per cent. This could see domestic spikes of up to 43 per cent on top of longer term price rises in rice importing countries of such as Nigeria, Africa’s most populous country.

My prediction is that we will continue to sacrifice land and human lives at the altar of American, and now Chinese, car culture. Walmart, the enduring symbol of happy fascism in America, will enjoy a growing pool of cheap labor amid cut-throat competition to ensure stellar profit margins. And a new reality TV series featuring climate change survivors will air on America’s propaganda box. Why not? We’ve already got a reality TV series to promote our perpetual war economy.

Today Grab a Dollar that Results in Your Death Tomorrow

03 Monday Sep 2012

Posted by in Capitalism, Climate Change, Corporate State, Environmental Degradation, Inequality, Pollution, Wall Street Fraud

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This post features a couple of stories highlighting the total inner rot behind the facade of a free press, completely driven by the profit motives of corporations, and this country’s so-called democratic system with its fictitious “free work force”.

14 Year Ex-MSM ‘Journalist’: “None of it is Real.”

The financial elite and Washington have become a single entity, with the rotating door between lobbyists, industry, and positions of government operating more like an eight-lane autobahn highway. Under the stampede of corporations buying off the instruments of government, the news media or fourth estate has been completely flattened into the grease-palmed asphalt of that profiteering highway. Once in a while a flicker of ethical consciousness propels a few souls to climb out of the corrupt cesspool. A case in point is Andrea Seabrook, a 14-year mainstream media journalist who states, “None of it is Real.”

After 14 years at National Public Radio, Andrea Seabrook left in July and, to hear her talk about her experience covering Capitol Hill, it’s clear that she had one takeaway: It’s damn frustrating. “I realized that there is a part of covering Congress, if you’re doing daily coverage, that is actually sort of colluding with the politicians themselves because so much of what I was doing was actually recording and playing what they say or repeating what they say,” Seabrook told POLITICO. “And I feel like the real story of Congress right now is very much removed from any of that, from the sort of theater of the policy debate in Congress, and it has become such a complete theater that none of it is real. … I feel like I am, as a reporter in the Capitol, lied to every day, all day. There is so little genuine discussion going on with the reporters. … To me, as a reporter, everything is spin.

We’re still light years behind the eight ball of actually doing anything radical enough to save ourselves, but it is reaffirming to hear straight from the horse’s mouth that the system is total B.S..

Climate Change Denier makes it Mandatory his Minions of Coal Miners Attend a Romney Rally.

Earlier this month, Mitt Romney was welcomed for a campaign event at the Century Mine in Beallsville, Ohio, by hundreds of coal workers and their families. Now many of the mine’s workers are saying they were forced to give up a day’s worth of pay to attend the event, and they feared they might be fired if they didn’t, according to local news radio WWVA.

The claims have been mostly denied by Rob Moore, Chief Financial Officer of Murray Energy Company, which owns the mine. He acknowledges that workers weren’t paid that day but says no one was made to attend the event. Well, kind of.

The claims have been mostly denied by Rob Moore, Chief Financial Officer of Murray Energy Company, which owns the mine. He acknowledges that workers weren’t paid that day but says no one was made to attend the event. Well, kind of.

“Our managers communicated to our workforce that the attendance at the Romney event was mandatory, but no one was forced to attend,” he told local news radio WWVA, which has received several emails from workers claiming that the company records names of workers that don’t attend those types of events…

Murray, who is also a climate-change denier, has been an outspoken critic of President Obama’s stance on coal. That view may be why Moore told WWVA that having employees attend the Romney event “was in the best interest of anyone that’s related to the coal industry in this area or the entire country…

Better you not think about the civilization-ending reality of climate change because your job depends on this CO2-polluting substance. That’s got to be the epitome of short-term thinking – today grab a dollar that results in you and your children’s death tomorrow. Nobody ever said this living arrangement was sensible.

For the Elite, The Ability to Buy Government Institutions is the Mark of a Free Country

01 Saturday Sep 2012

Posted by in Capitalism, Climate Change, Corporate State, Ecological Overshoot, Environmental Degradation, Inequality, Wall Street Fraud

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Democracy Now had an interesting little run-in with David Koch at the RNC that the corporate-laden media tried to sweep under the rug. With all the dittoheads in the audience chanting “USA! USA! USA!” as the Romneybot of the billionaires mouthed his platitudes, it was refreshing to see an actual journalist at work:


 
While oil and gas giant David Koch was protected from questioning by his ‘survivaball’ of humans that sprang upright around him, Amy Goodman was able to direct the same question to Edward Cox who answered in the following manner:

AMY GOODMAN: Are you concerned about, especially young people, looking at what’s happening in the country, where a handful of multi-millionaires and billionaires are so disproportionately determining the democratic process?

EDWARD COX: That’s a statement that isn’t true. This country is governed by the people. That’s what it’s always been based on.

RNC SECURITY 1: Will you keep this moving? One deep.

AMY GOODMAN: Yeah, I will. I will.

RNC SECURITY 1: OK, thank you.

AMY GOODMAN: OK, one deep, I got you. Mr. Cox answered a question. Why can’t—why can’t Mr. Koch answer a question? I only have one question.

KOCH HANDLER 2: He’s not going to answer. Get out of here.

If you really want to know how David Koch would have answered Amy’s question, a similar inquiry was put to him by Politicker “about the controversial level of influence major contributors have on American elections.” Here was his answer:

We have a free society and people are free to do what they want, you know, as long as they don’t hurt others and they obey the law,” Mr. Koch said. “So, I believe in free speech and if people want to spend money in politics or something else, it’s their right, nothing wrong with that. So, I endorse that.

So you see, as far as the elite are concerned, we live in a free society in which there should be no constraints on the corrupting influence that wealth has on government institutions and public policy. For them, freedom includes the ability to buy the instruments of government so that the interests of the elite may be best served rather than the common good of the citizenry who failed to rise to the ranks of the 0.001% in the game of capitalism. As Noam Chomsky explains in “Plutonomy and the Precariat: On the History of the U.S. Economy in Decline“:

For the general population, the 99% in the imagery of the Occupy movement, it’s been pretty harsh — and it could get worse. This could be a period of irreversible decline. For the 1% and even less — the .1% — it’s just fine. They are richer than ever, more powerful than ever, controlling the political system, disregarding the public. And if it can continue, as far as they’re concerned, sure, why not?

 
Going back to Chomsky’s article, the interests of the elite do not include facing up to the reality of climate change because it’s a direct threat to their power and the wealth they have hoarded. Capitalism must be defended at all costs, even if that means denying that this system is causing our own extinction:

…Practically every country in the world is taking at least halting steps towards trying to do something about it. The United States is also taking steps, mainly to accelerate the threat. It is the only major country that is not only not doing something constructive to protect the environment, it’s not even climbing on the train. In some ways, it’s pulling it backwards.

And this is connected to a huge propaganda system, proudly and openly declared by the business world, to try to convince people that climate change is just a liberal hoax. “Why pay attention to these scientists?”

We’re really regressing back to the dark ages. It’s not a joke. And if that’s happening in the most powerful, richest country in history, then this catastrophe isn’t going to be averted — and in a generation or two, everything else we’re talking about won’t matter…

In the minds of the elite, if they can’t keep a stranglehold on the world, then they’ll be damned if anyone else is going to be allowed to live on a habitable planet.


Free Market Blinders and the Coercion of Industrial-Corporate Capitalism

30 Thursday Aug 2012

Posted by in Capitalism, Consumerism, Corporate State, Environmental Degradation, Inequality, Wall Street Fraud

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I think many of us intuitively understand that free market ideologues have a narrow path to walk in order to keep afloat their construct of a world that is best run by the omnipotent and omniscient capitalist market system. Perhaps the idea that our globalized capitalist economy knows best is as damaging to society as the teachings of a fanatical cult urging all its members to drink from the poisoned chalice. Certainly the needs of the global capitalist economic system, currently propped up by money printing, supersedes all other considerations, including compassion for our fellow man and the well-being of the environment which is the forgotten lynchpin of the economy, not to mention the crucial factor in determining whether or not humankind continues to survive on this planet.

In the realm of the worker and the capitalist elite(the ones who own the means of production), the exploitation of humans on such a large-scale amounts to a society of wage-slave toiling zombies:

The distinguishing feature of a capitalist society is the commodification of human labour—and it is this that differentiated early modern England from any other nation. England was not the first country to develop long-distance trade or to plunder other parts of the world; throughout the fifteenth, sixteenth and seventeenth centuries, countries like Portugal, Spain and Holland exceeded England in these regards. What set English society of the time apart from its European rivals, however, was that it alone established an extensive labour market, the key to capitalist development. […]

On the labour market, every economic transaction touches directly on essential qualities of human life—material, social and moral. In exchange for wages, those who sell their labour power surrender to the capitalist ultimate control over the work to be done, its conditions, pace and organization. Rather than treating our creative energies as a unique source of personal identity, “the owners of the conditions of production treat living labour-power as a thing” (Marx, Capital, v. 1, trans. Fowkes, 1976, p. 989). The result is a profound personal alienation, a hollowing out of the meaning of life. This is why the poor, as we shall see, have historically resisted being driven into the labour markets as their only means of survival.

Reflecting on this relationship, Karl Marx described work under capitalism as alienated labour: Relinquishing control over her labour, the worker suffers an estrangement from an essential part of her humanity. As Marx (Wage Labour and Capital, Progress Publishers, 1952, p. 20) put it in one succinct passage:

“But the exercise of labour power, labour, is the worker’s own life-activity, the manifestation of his own life. And this life-activity he sells to another person in order to secure the necessary means of subsistence. Thus, his life-activity is for him only a means to enable him to exist. He works in order to live. He does not even reckon labour as part of his life, it is rather a sacrifice of his life. […]”

For the worker, in other words, work is a means to life, but not life itself. Real life begins after work, during “free time”. The familiar expression, “Thank God It’s Friday”, is a depressing acknowledgement that work for the majority is oppressive, alienating, boring and dehumanizing. Of course, things look very different from the vantage point of the capitalist.

Since the worker alienates control of her labour to the employer, the capitalist is in a position to exploit that labour—to force the labourer to perform an amount of work that exceeds the value of the wages paid. Indeed, this is the whole point of the transaction for the capitalist: to make a profit on the purchase of labour by getting workers to produce more value than what they are paid. And this difference between labour’s output and the wages paid—called surplus value—is the secret to the massive inequalities of capitalism: enormous amounts of the wealth produced by workers accumulate in the hands of the owning class.

And our economic system labels everyone the cold and dehumanizing term of “consumers”. Your behavior is methodically studied and cataloged so that the system can exploit your consumerist tendencies:

When you accept the label of ‘consumer’, you accept that you have become a financial object, willing to be manipulated by whatever marketing tricks abound. Consumer choice would be far better entitled ‘Conchoice’, a term describing the true level of choice that individuals are provided with, should they find themselves within the consumer culture.

Here is an email from Darbikrash, entitled ‘Buy or Die’, which illustrates the mind-numbing, invasive nature of corporations and the consumer culture:

…As there are too many goods chasing too few consumers (with any money left) the end game is to invent markets, to cajole and hoodwink people into believing they need something that they really don’t, and then to create products to port into this fabrication, rotating through product ideas at high speed to “see what sticks”.

What is really laughable is the degree of planning, co-ordination and control that exists in a typical retail outlet, say for example, Bed, Bath and Beyond. Every square inch of that jumbled, packed to the rafters collection of junk and useless assorted trinkets is planned. The product lineout is planned seasonally, and rotated to reflect the calendar quadrant. Each product, each one, is placed at the precise height, shelf location, and aisle location to optimize traffic and elicit the best response to a shoppers’ buy signals. The orientation of the aisles, the sequence to which high demand products are placed to maximize traffic to get to that product is profound. They know with statistical certainty which direction you will turn your shopping cart when you enter the store and when you reach the end of a given aisle.

They run full scale mock-ups or “focus groups” to optimize traffic patterns to increase the sales volume of the highest margin items. Shelf placement is determined by the highest margin. Products with lower margins are back charged to the manufacturers with “slotting fees”, bribes in effect to obtain higher shelf placement in a more lucrative aisle.

The store locations and real estate acquisition decisions are made with greater precision than a military invasion of a foreign country, and in many ways it is just that. They know to 6 significant digits the average household income within a 40 mile radius of each store location. They know how many times you leave the house to buy a product, and how far you are willing to drive to get it. They know if you’re male or female, married or single, and they know the preference curves of your demographic. They know how close to the entrance you will want to park before you drive off in disgust, and they know what type of music to play over the loudspeaker to increase your propensity to buy. They know how many visits you’ll make (on average) per calendar quarter, and the average amount of money you’ll spend at each visit, to incredible accuracy.

But just try and pass a law that restricts a multi-national from acting as a sovereign state. Just try to pass something that will put consumer protections in place. Imagine the uproar if there was an initiative to place healthy food in the front of a store and unhealthy food in the back, for example. There would be riots in the streets, with calls of Communist and Police state tactics shouted from every corner.

Who runs this country?

King Romney’s Dream for America: Slave Labor in Barb-Wired Factories & a Double Down on Fossil Fuels

26 Sunday Aug 2012

Posted by in Capitalism, Corporate State, Environmental Degradation, Inequality, Peak Oil, Wall Street Fraud

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On the Labor front….

I came across the above video yesterday evening. It’s a recording of Mitt Romney recounting his days at Bain Capital when he was off-shoring U.S. manufacturing to slave labor camps in China. From the video I’m assuming that America’s gift to the world, as Romney refers to it, is neoliberal capitalism and the privilege that economic system brings to the masses who can enjoy working for pennies per hour in a sweatshop factory complete with dormitories holding “12 girls per room”, all of which is enclosed by barb-wired fencing. And as Romney relates, the fences are to keep the hoards of people out who are dying to fill a position in the factory as soon as someone falls over. For Romney and the typical vulture capitalist, this is a wet dream: endless numbers of cheap laborers ready to fill assembly-line positions which are unencumbered by unions, safety regulations, and basic rights for workers. In such factories humans are reduced to cattle in order to extract the maximum profit. A Foxconn executive expressed the general sentiment of corporate capitalists when he referred to his workers as “animals” earlier this year. Despite recent reports by the Fair Labor Association (FLA) on the heels of an eye-opening report on labor conditions, the reality on the ground, as Romney can attest to from his days at Bain, is the same as it ever was:

As reported here, China Labour Watch is claiming that bribery is undermining the audit system. China Labour Watch founder Li Qiang has not minced his words: “Although the working hours at Foxconn have been reduced to less than 60 hours per week, the intensity of the hourly work has been increased. According to our follow-up investigation, the workers have to complete the workload of 66 hours before within 60 hours now per week. As a result, the workers get lower wages but have to work much harder and they are not satisfied with the current situation. The harsh working conditions are by no means isolated to just Foxconn but exist throughout Apple’s supply chain. However, that report only focused on Foxconn factories. It is Apple’s entire supply chain system that should be responsible for the squeezing of workers.”

On the Energy Front:

King Romney is going to double down on fossil fuels in America, further dismantling regulations and awarding more tax breaks for Big Oil:

Romney unveiled his energy plan, which makes no mention of climate change and focuses on reaching energy independence by 2020 through increased extraction and use of oil, gas and coal, accompanied by reduced regulation for these industries.

The plan underlines the fact that the Republican Party and the oil, gas and coal industries, long in agreement on policy and ideology, have grown closer than ever before. Romney, whose top energy adviser is the wealthiest oilman in the country, is on pace to raise more money from these industries than either George W. Bush or Sen. John McCain (R-Ariz.) did when he ran for president. The industries are also pumping millions into the new unlimited money vehicles, super PACs and dark money nonprofits, that are spending tens of millions of dollars per month to influence the election…

…A central part of the plan is taking the power to permit and license new onshore drilling on federal lands out of the hands of the federal government and putting it into the hands of the states. That means that states like Alaska or North Dakota, which is enjoying a massive oil boom under the current regulatory regime, would be able to allow drilling on federal lands with no oversight from Washington.

North Dakota stands out, in particular, as it is where Romney’s top energy adviser, oil billionaire Harold Hamm, is making his fortune. Hamm, whose stump speech is only three words, “Beat Barack Obama,” has given $985,000 to Restore Our Future and raised money for the Romney campaign. He would profit greatly from this change in policy as his company, Continental Resources, would be freed to drill beyond the Bakken fields in North Dakota using techniques including hydraulic fracking and horizontal drilling….

…Among many other policies supporting the industry, Romney calls for a repeal of regulations limiting the amount of mercury, a hazardous pollutant, that can be emitted from coal and oil power plants…

Overlooking the catastrophic externality of climate change, notice that Romney is heralding America’s energy independence through his plan of ‘Drill, Baby, Drill’ of fossil fuels. If you look at the following graph, you’ll see that there is no amount of drilling we could do within America to achieve fossil fuel energy independence:

As you can see, America hit peak oil around 1970 at 9.637 mbpd (million barrels per day), as predicted by Hubbert, and then in 1993 America’s domestic oil production was surpassed by consumption, a point from which we have never recovered. Even with the recent drastic drop in consumption due to an anemic economy, we are still importing around 10 to 11 MBPD while domestic production is somewhere between 7 to 8 MBPD. Domestic production would have to double from the current rate or total consumption, which sits currently at roughly 18 to 19 MBPD, would have to be halved while allowing for the requisite economic growth that we worship. That’s not going to happen. As Loren Steffy explains, “U.S. oil production gains are like water pumps on the Titanic“:

…The much-ballyhooed increase in U.S. production simply isn’t enough to have a meaningful effect on global oil prices, which doubled from 2005 to 2011. That ultimately is the biggest factor in setting prices for retail gasoline.

U.S. production gains look impressive, but much of it offsets declines earlier in the decade because of major hurricanes that disrupted offshore and Gulf Coast facilities. Domestic production was 7.5 million barrels a day in 2010, according to the Energy Information Administration, and that number probably increased to about 7.7 million barrels last year, estimates Jeffrey Brown, an independent petroleum geologist in Fort Worth who writes frequently on oil issues.

In 2004, before the spate of hurricanes, production was 7.2 million barrels. That means domestic production hasn’t increased more than about 500,000 barrels a day despite the fracking binge and other efforts to encourage drilling. During the same period, net exports for all countries in North America — including Canada, Mexico and Venezuela, some of our biggest suppliers — fell by 1.4 million barrels, or 23 percent, according to Brown’s analysis.

Brown compares the situation to water flowing into the Titanic after it hit the iceberg.

“Let’s assume that water is pouring into the ship 10 times faster than than water is being pumped out,” he said. “The water being pumped out is analogous to the slow increase in U.S. crude oil production. The water flowing in is analogous to declining annual net exports. Guess which metric most people seem to be focused on?”

That doesn’t even account for China, India and other rapidly developing countries, whose oil imports are rising sharply, increasing the competition for oil with countries like the U.S.

“So, while slowly increasing U.S. crude oil production is very important, the dominant trend we are seeing is that developed oil importing countries like the U.S. are being gradually priced out of the global market for exported oil,” Brown said…

King Romney, nevertheless, will use the rallying call of his energy plan to increase domestic oil production, with its attached gifts of even more environmentally destructive deregulation and kleptocratic giveaways to Big Oil from the taxpayer, as a reason for voters to put him into the White House. But as pointed out at Fair.org, this is all a smokescreen manipulating public perception:

In a New York Times story (8/24/12) about Mitt Romney’s energy proposals, reporters Eric Lipton and Clifford Krauss make this observation:

With gasoline prices again approaching $4 a gallon, Mr. Romney, the presumptive Republican nominee, is also trying to merge energy and economic policy in a way that will make voters see increased energy production as a pocketbook issue.

Note that Lipton and Krauss don’t say that increased U.S. energy production will actually affect the $4-a-gallon price of gas and hence the voters’ pocketbooks; that would be inaccurate, since oil is a global commodity and it’s impossible for the U.S. to increase its production enough to change it substantially. In fact, with the formulation “in a way that will make voters see,” the Times  reporters suggest that they are well aware that increased oil drilling will not actually alter gas prices–that this is a matter of changing public perceptions, not economic realities.

But then, Lipton and Krass don’t do anything in their piece to let the reader know that the implied connection between increased drilling and lower gas prices is fraudulent…

The doublespeak used by politicians of all stripes to bend reality is the same as it ever was.

The System Has Reached Entropy

24 Friday Aug 2012

Posted by in Capitalism, Climate Change, Consumerism, Corporate State, Empire, Environmental Degradation, Inequality, Military Industrial Complex, Peak Oil, Pollution, Wall Street Fraud

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Getting It Wrong on Natural Gas

21 Tuesday Aug 2012

Posted by in Capitalism, Corporate State, Environmental Degradation, Peak Oil, Pollution, Wall Street Fraud

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This guy Friedman sparked my interest from the last post on America’s corporate talking heads, so I looked to see what Tom has been writing about recently (Get It Right on Gas) and thought I’d dispel Tom’s delusional corporate-funded views about natural gas in America. But before I do that, I little history on Tom:

Thomas L. Friedman won the 2002 Pulitzer Prize for commentary, his third Pulitzer for The New York Times. He became the paper’s foreign-affairs Op-Ed columnist in 1995. Previously, he served as chief economic correspondent in the Washington bureau and before that he was the chief White House correspondent. In 2005, Mr. Friedman was elected as a member of the Pulitzer Prize Board.

In a recent essay, Glenn Greenwald, who by the way is now writing for the UK Guardian, described Friedman in the following manner:

If I had to pick just a single fact that most powerfully reflects the nature of America’s political and media class in order to explain the cause of the nation’s imperial decline, it would be that, in those classes, Tom Friedman is the country’s most influential and most decorated “foreign policy expert.”

Now on to Friedman’s misinformed article about natural gas in America, Get It Right on Gas, which gets it totally wrong on natural gas. In the article, Friedman calls America’s natural gas deposits a “potential game changer” and that it “may soon be powering cars, trucks and ships as well.” It’s the usual spiel we’ve been hearing for several years now. The reality is that the supposed natural gas boom is indeed a financial Ponzi scheme on a grand scale based on false claims of economically recoverable reserves. Remember last year the news story about internal documents from financial insiders and experts of gas drillers that surfaced? Various internal memos said the following:

An August 2009 memo from the firm IHS Drilling Data says, “The word in the world of independents is that the shale plays are just giant Ponzi schemes and the economics just do not work.” Earlier this year, an analyst at PNC Wealth Management compared natural gas projects to the dot-com boom, saying, “money is pouring in” even though drilling is “inherently unprofitable.” In another memo, a retired geologist for a major oil giant writes, “These corporate giants are having an Enron moment… They want to bend light to hide the truth.”

Off the back of that news story from last year comes the following revelation from business insider Wolf Richter, as quoted in an Automatic Earth article:

…thanks to the Feds zero-interest-rate policy and the trillions it has handed over to its cronies since late 2008, the sweeps of creative destruction have broken down. Instead, boundless sums of money have been searching for a place to go, and they’re chasing yield when there is none, and so they’re taking risks, any kind of risks, in their vain battle to come out ahead…

…But the money has dried up. And drilling for natural gas is collapsing. Last week, there were only 562 rigs drilling for dry natural gas, the lowest number since September 1999…

…At $2.53 per million Btu at the Henry Hub, the price of natural gas is up 33% from the April low of $1.90 per million Btu, a number not seen in a decade.

…even if it doubled, it would still be below the cost of production. And if it tripled, it might still be below the cost of production for most producers. That’s how mispriced the commodity has become.

The economics of fracking are horrid. All wells have decline rates where production drops over time. But instead of decades for traditional wells, decline rates in horizontal fracking are measured in weeks and months: production falls off a cliff from day one and continues for a year or so until it levels out at about 10% of initial production. To be in the black over its life under these circumstances, a well in the Barnett Shale would have to sell its production for about $8 per million Btu, pricing models have shown….

…Drilling is destroying capital at an astonishing rate, and drillers are left with a mountain of debt just when decline rates are starting to wreak their havoc. To keep the decline rates from mucking up income statements, companies had to drill more and more, with new wells making up for the declining production of old wells. Alas, the scheme hit a wall, namely reality…

It’s interesting to note that the Russian gas company, Gazprom, hired an American consulting firm just 20 miles from the White House in Fairfax, Virginia to analyze the economic viability of the natural gas “boom” in America. With the data collected by Pace Global Energy Services, Gazprom concluded the following:

“We think the current US gas market model is unsustainable in the medium and long term,” Komlev told Platts via email. “We forecast that soon, the disparity between the shale gas costs and sales price will disappear. When it happens, it will make the US plans to become a major gas exporter economically unviable.”

…Based largely on Pace’s review of quarterly earnings reports and other financial data from US gas companies, Gazprom says the true costs of shale-gas production are upwards of 150% higher than the revenues its practitioners have been reaping in the last few years. But companies are continuing to use the approach for now, Komlev says, because they are also producing some higher-priced gas liquids in the process.

Gazprom also believes that shale-gas drillers will incur additional costs to ensure that the chemicals they use in the fracking process will not contaminate underground sources of drinking water.

In a May 2012 article, Dmitry Orlov quotes Gazprom’s chairman, Alexei Miller:

“Shale gas is a well-organized global PR-campaign. There are many of them: global cooling, biofuels.” He pointed out that the technology for producing gas from shale is many decades old, and suggested the US turned to it out of desperation.

In addition to the poor or nonexistent EROEI and short life of shale gas wells in the U.S., Orlov also brings up a problem I was not aware of with Marcellus Shale, and that is its radioactivity:

Thanks to Marcellus shale gas, radioactive radon gas is being delivered directly to your kitchen, via the burners of your stove, or to a power plant smokestack upwind from where you live. This is expected to result in increased lung cancer rates in the coming years.

Michael Miller, writing an article for the Anton News of New York, had this to say about the natural gas bubble:

Last week, three Bradford County families reached a $1.6 million settlement with Chesapeake Energy of Oklahoma City (“America’s Champion of Natural Gas”), compensation for the ruination of their water wells by methane gas migrations from nearby high volume hydraulic fracturing (“fracking”) operations. This is the first time ever that details of a Marcellus Shale settlement have been revealed to the public, at the insistence of the families…

…Gas companies sold large chunks of futures last year at more than $5 per million BTU. Even if they’re still doing well on paper, these prices are far below the cost of production. Chesapeake Energy now leases drilling rights on over 15 million acres of land (more than eight times the area of Nassau and Suffolk Counties) and makes its profits mostly by flipping properties. In 2010, the company sold land it had purchased in Texas for $2,000 an acre to a large Chinese oil company for $11,000 an acre, making a profit of $2.2 billion…

…Natural gas wells can’t compete for investment capital with oil wells, which have a much higher “Energy Returned On Energy Invested” ratio (after only several months, sometimes only several weeks, production from fracked wells falls off the table and levels off at about 10 percent of initial production). That’s why gas companies are flooding daytime television and the halls of the State Capitol in Albany with millions of dollars in advertising and lobbying power, trolling for small investors and warning off politicians who might be tempted to meddle. And this has been working.

Many of us, exposed to the incessant propaganda, think that America is poised to become the energy-exporting powerhouse it once was, if only the government would get out of the way. In fact, the natural gas industry as we know it wouldn’t exist without massive subsidies and tax breaks. Last week, it was reported that since its founding 23 years ago, Chesapeake Energy has paid only $53 million on its $5.5 billion in profits.

The U.S. Department of Energy has cut its estimate of gas available in the Marcellus Shale by nearly 70 percent. A Colorado School of Mines report estimates that the U.S. has a recoverable gas supply of 23 years, not the “near 100-year supply” that President Obama still talks about as a centerpiece of his energy plan.

Recently, a coalition of 55 institutional investors with over $1 trillion in assets called on companies involved with shale gas fracking to police themselves and reign in the tactics that are turning off America and putting everybody’s money at risk. T. Boone Pickens, the billionaire who toured the country promoting natural gas as the answer to our country’s energy problems, announced in May that he was “out of the natural gas stocks…We didn’t like natural gas.”

The money is talking.

There are no easy answers to our energy, climate and fiscal situations, and fossil fuels are made mostly of carbon, not magic.

I contacted Michael Miller by email and asked for his sources which he emailed me, also telling me other sources included personal contacts of “people in government, particularly Albany.” So there you have it. The natural gas boom is pretty much a bust egged on by low-interest loans by the Fed, financial shenanigans of energy corporation executives, and America’s desperation for energy in the age of peak oil. I did not get into the other major environmental disasters of gas fracking in this post, but I have talked about them in Profiting Off Acts of Desperation, and I posted the mini-documentary “The Sky is Pink” here. I noticed that Josh Fox, producer of the aforementioned documentary, made a comment on Tom Friedman’s article:

Recently, politicians and publications have conditionally endorsed so-called “safe fracking” as a part of the nation’s energy mix. But safe fracking is an impossibility, and the industry’s claims for it are knowingly based on false premises.

Chief among them is the notion that a “leakproof well” is possible. We’ve heard time again that strict regulation is the key to moving forward on fracking, and that new regulations should make sure that industry constructs leakproof wells that do not pollute the water table. There is no such thing as a leakproof gas well. The gas industry knows this; in fact, it has known it for decades.

I recently made a short film addressing the well casing failure issue called THE SKY IS PINK and you can watch it here: www.pinkskyny.com.

A 2003 joint industry publication from Schlumberger, the world’s No. 1 fracking company, cites astronomical failure rates of 60 percent over a 30-year span. To imagine gas companies voluntarily committing to an eternity of costly maintenance on wells failing at ever-increasing rates is beyond credulity. “Safe fracking” is a contradiction in terms.

Leaking gas wells at these rates mean thousands across the nation have enough contaminants in their water and land to render them unfit for residential use.

It’s not only the gas wells that have integrity problems; it is the oil and gas industry itself. We can believe in their self-interested assertions of leakproof wells about as much as we can expect pigs to fly.

In addition to what Josh mentioned above, a 2009 Cornell University study suggests that Shale Gas may be worse than coal as far as greenhouse gas emissions are concerned, with substantial levels of methane leaks traced back to underground Shale Gas operations. Will America’s natural gas reserves make it energy independent? I’ll believe that when pigs fly.

Post Script: I just noticed that the other major corporate mouthpiece, Fareed Zakaria, is also singing the praises of America’s wondrous bounty of natural gas…

As long as there’s sheople to fleece, you’ll have people like Thomas Friedman and Fareed Zakaria filling the corporate airways.

Also see:

Is Fracking DOA in NYS? 

King Romney’s Turd on a Silver Platter: Paul Ryan

18 Saturday Aug 2012

Posted by in Capitalism, Corporate State, Empire, Inequality, Wall Street Fraud

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Just discovered this blog: The Paul Ryan Watch:

Paul Ryan, cool cat wannabe, loves Rage Against the Machine’s music, he says. He must not listen to the lyrics. Here’s what the band’s guitarist/activist Tom Morello has to say:

Ryan’s love of Rage Against the Machine is amusing, because he is the embodiment of the machine that our music has been raging against for two decades. Charles Manson loved the Beatles but didn’t understand them. Governor Chris Christie loves Bruce Springsteen but doesn’t understand him. And Paul Ryan is clueless about his favorite band, Rage Against the Machine.

Rolling Stone has more.

As Paul Ryan preaches to the masses about the evils of living on the dole of government largesse, it was revealed recently that his family’s fortune was made from contracts with the U.S. government.

And of course he had to recently disavow himself from his ethical and spiritual idol, Ayn Rand:

 
Such pompous, self-serving, and seemingly sociopathic behavior among the elite in capitalist America is nothing new. As a matter of fact, it seems to have always been the norm in American history:

America’s Plutocratic Traditions 

I recently read a book by University of Maryland historian Terry Bouton, Taming Democracy, which is an account of the intense struggles over wealth and power that emerged in the earliest days of the United States. Bouton’s detailed research was focused on Pennsylvania, but he describes patterns that also appeared elsewhere in the infant republic.

The core of the story he tells is that the colonial coalition that made possible the political break with Britain fractured even while the Revolutionary War was still in progress, as wealthy interests in the colonies quickly had second thoughts about the democratic fervor that they had helped to set in motion and how it might jeopardize their ability to amass still more wealth….

…The story demonstrates that strong class consciousness and class-specific drivers of policy have been a major part of American politics since independence. A key part of that class struggle all along has been a strong sense among a wealthy elite of separateness from the non-wealthy, and of having a right to push hard for public policies that favor their own class even if they are clearly detrimental to others.

A major figure in Bouton’s account is the Philadelphia merchant and financier Robert Morris…

…An even more blatant ploy of using government to favor his own class’ interests at the expense of others concerned speculation in war debt. Amid poverty, scarcity of money, and uncertainty about government funding of debt, many holders of IOUs — who had furnished support to the war effort ranging from food to blacksmithing — sold them for cents on the dollar to speculators who hoped to redeem them eventually for much more than that.

Morris not only participated in this game but openly promoted it. He told the Continental Congress in 1782 that speculators should be encouraged to buy up the IOUs “at a considerable discount” and then have the government bring the pieces of paper “back to existence” by paying them off at top dollar.

This big transfer of wealth would provide the affluent with “those funds which are necessary to the full exercise of their skill and industry.” Bouton writes, “As Morris saw it, taking money from ordinary taxpayers to fund a huge windfall for war debt speculators was exactly the kind of thing that needed to be done to make America great.”

We have tended to whitewash such aspects of American history from our consciousness, for several reasons. One is the hagiography we customarily apply to the Founding Fathers. Another is that we lose sight of the connections between class consciousness of the past and that of today by euphemizing today’s version and espousing more subtle notions of trickle-down economics than the crude version that Morris espoused.

People of his economic stratum were known at the time as “gentlemen”; today they would more likely be called “job creators.” A further reason is Americans’ belief in the national myth that America is less stratified into classes, and exhibits more mobility between classes, than do other countries and especially the old countries of Europe. That myth has become increasingly distant from fact in recent decades…

For those who believe that class structure and the struggles therein do not exist in America, history shows that it has always been a part of our country, reasserting itself with a vengeance in recent times. With the elite having a lock on mass media and now the use of the empire’s security and surveillance state to squash dissenters, malcontents, and any challengers of the status quo, there does not seem to be any going back to a society embodied by a strong middle class, especially in an age where the economic pie is forever shrinking.