June 20, 2012 archive

There was a recent kerfluffle at FDL that in the light of presidential election, Jane Hamsher, FDL’s founder, felt it necessary to restate and clarify the site policy regarding diaries and commenting. I agree with what Jane said:

In the contentious 2008 Democratic Presidential primary, there were many members of the FDL community who passionately supported one candidate over another.  We chose as a blog not to endorse either candidate because we did not want to alienate either significant sector of our community.

Moreover, we firmly believe that elections are the time when candidates are the most responsive to the needs of the constituents whose votes they hope to woo. [..]

We believe that the Presidential election should be a time for healthy discussion among those who have different and often passionately held points of view. [..]

Individual writers on FDL may take different positions.  It does not mean that as a blog we endorse any of them.  Our goal is to make a fair home for all sides of this discussion, and not shut it down. [..]

The one thing we have no interest in being is a mind-reading site.   “You just want Obama to win” or “you just want Romney to win” or “you just don’t care about X” furthers no conversation.  Its only intent is to poison the discussion and launch a pie fight. [..]

Our only goal is to foster a vigorous and open debate on FDL in the ensuing months.  The fact that we will not be playing the role of arbiter is not a reflection of any hidden agenda, but rather a continuation of what we have historically sought to be during times when our community is intensely divided:  a town square where a fair discussion of the merits of all sides can take place.

That is what our goal is here at The Stars Hollow Gazette and Docudharma

Thank you, Jane, for all you do.

Cross posted from The Stars Hollow Gazette

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

Click on images to enlarge.

June 20 is the 171st day of the year (172nd in leap years) in the Gregorian calendar. There are 194 days remaining until the end of the year.

On leap years, this day usually marks the summer solstice in the northern hemisphere and the winter solstice in the southern hemisphere.

On this day in 1789, Third Estate makes Tennis Court Oath.

In Versailles, France, the deputies of the Third Estate, which represent commoners and the lower clergy, meet on the Jeu de Paume, an indoor tennis court, in defiance of King Louis XVI’s order to disperse. In these modest surroundings, they took a historic oath not to disband until a new French constitution had been adopted.

Louis XVI, who ascended the French throne in 1774, proved unsuited to deal with the severe financial problems he had inherited from his grandfather, King Louis XV. In 1789, in a desperate attempt to address France’s economic crisis, Louis XVI assembled the Estates-General, a national assembly that represented the three “estates” of the French people–the nobles, the clergy, and the commons. The Estates-General had not been assembled since 1614, and its deputies drew up long lists of grievances and called for sweeping political and social reforms.

The Tennis Court Oath (French: serment du jeu de paume) was a pivotal event during the first days of the French Revolution. The Oath was a pledge signed by 576 of the 577 members from the Third Estate who were locked out of a meeting of the Estates-General on 20 June 1789 so they made a makeshift conference room inside a tennis court.

In 17 June 1789 this group, led by Honoré Gabriel Riqueti, began to call themselves the National Assembly. On the morning of 20 June, the deputies were shocked to discover that the chamber door was locked and guarded by soldiers. Immediately fearing the worst and anxious that a royal attack by King Louis XVI was imminent, the deputies congregated in a nearby indoor real tennis court where they took a solemn collective oath “not to separate, and to reassemble wherever circumstances require, until the constitution of the kingdom is established” It later transpired that the most probable reason why the hall was closed was that the royal household was still in mourning the death of the Dauphin (the king’s oldest son) two weeks earlier; ordinarily, political matters could not be conducted until the King had emerged from mourning. The oath is therefore a contentious point in French political history, since pro-monarchists then and now characterize it as a duplicitous and hysterical over-reaction which deliberately made capital out of a private tragedy in the royal family. Other historians have argued that given political tensions in France at that time, the deputies’ fears, even if wrong, were reasonable and that the importance of the oath goes above and beyond its context.

The deputies pledged to continue to meet until a constitution had been written, despite the royal prohibition. The oath was both a revolutionary act, and an assertion that political authority derived from the people and their representatives rather than from the monarch himself. Their solidarity forced Louis XVI to order the clergy and the nobility to join with the Third Estate in the National Assembly.

The only deputy recorded as not taking the oath was Joseph Martin-Dauch from Castelnaudary. He can be seen on the right of David’s sketch, seated with his arms crossed and his head bowed.

Cross posted from The Stars Hollow Gazette

We are halfway through the year and are ready to celebrate the first harvest amidst climate disruption, natural disasters compounded by man’s foolish idea that he could harness the devil. I spent some time this morning weeding my herb garden, snipping the flower buds from the huge pot of sweet basil so the energy goes to the flavorful leaves and a short walk on the beach. Tomorrow morning I will watch the sun rise for the last few hours of Spring and later watch it set on the first few hours of Summer which ushers in at 7:09 PM EDT as the Earth tilts towards the sun at its Northern maximum, the Tropic of Cancer. It is a but a moment in time significant for so many cultures, religions and countries. Here in the US there are many cities that will light huge fires in public places to celebrate the longest day of the year, Midsummer. The fires will be lit in the stone fire pit in my yard. We’ll eat some of the newly harvested vegetable that are available at the local markets and eat food cooked with the herbs from my garden.

ONCE, HUMANS were intimate with the cycles of nature, and never more than on the summer solstice. Vestiges of such awareness survive in White Nights and Midnight Sun festivals in far northern climes, and in neo-pagan adaptations of Midsummer celebrations, but contemporary people take little notice of the sun reaching its far point on the horizon. Tomorrow is the longest day of the year, the official start of the summer season, the fullest of light – yet we are apt to miss this phenomenon of Earth’s axial tilt, as we miss so much of what the natural world does in our surrounds.

In recent months, catastrophic weather events have dominated headlines as rarely before – earthquakes and tsunami in Asia; volcanic cloud in Europe; massive ice melts at the poles; tornadoes, floods, and fires in America. “Records are not just broken,” an atmospheric scientist said last week, “they are smashed.” Without getting into questions of causality, and without anthropomorphizing nature, we can still take these events as nature’s cri de coeur – as the degraded environment’s grabbing of human lapels to say, “Pay attention!”

Cross posted from The Stars Hollow Gazette

The Greeks choice of staying with the pain of austerity measures may have helped divert a crisis for the Euro Zone, but not for long. There is still Spain.

Spain bailout fears mount

Fears of a full-scale bailout for Spain have mounted as its borrowing costs spiked to danger levels on concern over the nation’s stricken banks and fast-rising debt. [..]

Tapping the markets for the first time since the Greek vote on Sunday, Spain raised 3.04 billion euros, beating its 2.0-3.0 billion euro target in an auction of 12- and 18-month notes.

But it had to pay exorbitant rates to lure investors – 5.074 per cent for 12-month debt and 5.107 per cent for 18-month debt.

The yield on Spanish benchmark 10-year government bonds shattered the 7.0 per cent barrier on Monday for the first time since the creation of the euro in 1999, pushing above 7.2 per cent.

On Tuesday, the yield on 10-year bonds was at 7.003 per cent. [..]

Spanish borrowing costs at ominous levels

Spain, on the edge of losing debt-market access, paid around 200 basis points more in interest rates Tuesday than a month ago to lure investors to its Treasury bill sale, an ominous sign ahead of a critical government bond auction Thursday.

The latest surge in the country’s borrowing costs comes a day after fresh central-bank data showed Spanish lenders were sitting on the highest level of bad loans in 18 years, raising fresh worries over the battered sector’s capital needs.

The Fat Lady isn’t singing yet.

Just an interesting aside about interest rates, David Dayen points out this exchange from today’s House hearings with none other than the Obama administration’s favorite banker, Jaime Dimon:

But the two stars of the show thus far were Democratic Reps. Gary Ackerman and Brad Sherman. Ackerman asked point-blank if there’s any difference between gambling and investing. Dimon replied that with gambling, the house usually won, to which Ackerman quipped “That has been my experience in investing.” But he got at the central point, that hedging, which entails making a bet that would counteract any other actions in the markets, really bears reveals no difference from gambling. He emphasized that “with hedging, if you’re right, only you win, and if you’re wrong, we all lose.” Precisely. There’s no productive business being done with hedging.

Dimon replied to this by saying that they do a lot of other productive business with the rest of their $2 trillion in assets, so the gentleman from New York should kindly shut his mouth (that’s a paraphrase). And Brad Sherman followed up on that very well. He first said that hundreds if not thousands of small businesses need loans, and instead of accommodating them, “you took $350 billion to London.” Sherman added that JPMorgan holds a $14 billion subsidy through their implicit Too Big to Fail guarantee. This elicited an amusing moment, as Dimon said “We borrow in the marketplace, with the smartest people in the world, with 200 basis points over Treasury.” Sherman replied that “after you lost so much money in London, I would be surprised if people lent you money for less than that.”

Well.

Cross posted from The Stars Hollow Gazette

Other than the names and faces of the actors, not much is different in either Greece or Egypt after much analyzed and anticipated elections this weekend. In Greece, the center right is still faced with the dilemma of forming and holding together a coalition government to deal with the economic crisis that threatens to take down the Eurozone. While is Egypt, despite the historic election of an Islamic president, the military still maintains a tight control and all the power.

Greek elections: Antonis Samaras faces tough task to forge unity

The fault lines are so deep that even if a government is formed, many believe it will be a miracle if it survives for long

[..]The ambitious politician faces the Herculean labour of forging a government of “national salvation” at a time of unprecedented crisis. Not since the collapse of military rule has the country come so close to resembling a failed state. Following almost three months of political paralysis – before and after an inconclusive poll in May – Greece’s public finances are in tatters, its public administration is in disarray and its austerity-weary people are beaten down. It is now for Samaras to pick up the pieces. [..]

Late on Monday Samaras announced he had agreed with the head of Pasok, Evangelos Venizelos, to build a coalition, with negotiations expected to be concluded by Tuesday. Once bitter political rivals, the socialists, who came in with 12.3% of the vote, say the creation of a government of “national co-responsibility” is vital if Greece is to be steered through the crisis.

Combined, the two parties would control a comfortable majority of 162 seats in the Greek parliament. [..]

But fault lines in Greek society are so deep that even if a government is formed many believe it will be a miracle if it survives for long. To secure further rescue loans Athens has agreed to pass an extra €12bn in budget cuts, measures seen as vital if its economy is to reclaim competitiveness. And on Monday creditors led by Germany appeared in little mood to relent.The fiscal adjustment programme might be relaxed but “only marginally,” several officials said. “Greek society simply cannot endure any more measures,” insisted (New Democracy MP Kyriakos) Mitsotakis. “It’s not a question of what party is in office, it is a fact.”

German Chancellor Andrea Merkel, emboldened by the Greek center right narrow victory, has continued her hard line stand on enforcing the Greek deal

“The Greek government will and must naturally follow through on the commitments that were made,” Ms. Merkel told reporters at the Group of 20 meeting in Los Cabos, Mexico, disappointing those in Athens who hoped for a signal of new flexibility toward Greece in the wake of the vote. “There can be no loosening of the reform steps.”

At least Greece has a Parliament. Egypt on the other hand is once again on the verge of revolution as the Muslim Brotherhood threatens to take to the streets once again in protest over the military usurpation of power:

The ruling generals sought for the first time to sell the public on the decision to dissolve the Brotherhood-led Parliament on the eve of the vote. In a nearly two-hour news conference that was edited before it was televised, two members of the military council insisted that they regretted dissolving Parliament, but that they had been forced by a court ruling from judges appointed by former President Hosni Mubarak.

And although they have now issued an interim Constitution keeping legislative and much of the executive power for themselves – and even said later Monday that they would appoint a general to run the new president’s staff – the generals promised to hold a “grand celebration” when they turned over power as promised at the end of the month. [..]

In their news conference, the generals acknowledged they would have a monopoly on all lawmaking powers as well as control of the national budget. But they said that the new president – they did not name Mr. Morsi – would retain a veto over any new laws and could name the prime minister as well as other cabinet officials.

The generals have not backed away from the initial charter that removed the military and the defense minister from presidential authority and oversight and defended the imposition of martial, arresting and detaining civilians for trials in military courts. They also took it upon themselves to appoint the new president’s chief of staff and revived a special national defense council packed with loyal military officers, charged with overseeing matters of national security. This is not going over very well with the Egyptian people.

The bright spot in all of these travails, the French who gave newly elected president François Hollande a majority in Parliament on Sunday, which is likely only to embolden his drive for more growth-oriented spending and a retreat from German-style austerity. But if everything you hear about Greece and Egypt sound familiar, it is.