May 22, 2013 archive

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John T. Harvey: Austerity Leads To… Austerity!

In the real world and the reality based community, there is talk about austerity from people who understand the nuances of it and macroeconomic accounting identities. They point out the undeniable fact that there is austerity in the UK, the Eurozone, and yes, the United States. This interactive chart will show this, though I can’t embed it here. So instead, I will add a small snapshot of some of the data.

Net spending in the United States has steadily declined since it rose from 2008 to 2009 when the inadequate stimulus(only $500 billion of direct spending at about 1.5 percent of GDP) was passed. Stimulus packages don’t exist in a vacuum, and you have to count all government spending, which basically shows how exactly the numbers, including the stimulus as this does, didn’t close the output gap. And since the numbers didn’t, that is actually austerity. After all, spending went up in the UK and Eurozone from 2008 to 2009 as well, and since then, their spending has declined. Even though it is on a higher level, it is being cut at an even more alarming rate with its fate set to go below our miserable level by 2017.

I have pointed this out before. Sometimes I get frustrated, and point this out harshly, because some pride themselves on denying this established data to support whatever a politician in their party says or does. I don’t know why. Denying reality is not going to give resources to people who need them. There is a reason my last diary has been cited by the reality based Post Keynesian MMT community, in which I am truly grateful for and humbled by; it is the truth.

The real economy of jobs and wages continues to go nowhere thanks to the lack of deficit spending and an illogical debate in DC about how much austerity we need to appease the invisible bond vigilantes and confidence fairies. It is neoliberal deficit terrorist economic insanity based on lies. And on that note, it is my pleasure to republish a piece by someone in the reality based economic community whom I can now proudly say is a friend of mine, Post Keynesian MMT economist John T. Harvey. He, once again, brings clarity to these matters in a way that only he can.  

On This Day In History May 22

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.

May 22 is the 142nd day of the year (143rd in leap years) in the Gregorian calendar. There are 223 days remaining until the end of the year.

On this day in 1843, the Great Emigration departs for Oregon

A massive wagon train, made up of 1,000 settlers and 1,000 head of cattle, sets off down the Oregon Trail from Independence, Missouri. Known as the “Great Emigration,” the expedition came two years after the first modest party of settlers made the long, overland journey to Oregon.

Great Migration of 1843

In what was dubbed “The Great Migration of 1843” or the “Wagon Train of 1843”, an estimated 700 to 1,000 emigrants left for Oregon. They were led initially by John Gantt, a former U.S. Army Captain and fur trader who was contracted to guide the train to Fort Hall for $1 per person. The winter before, Marcus Whitman had made a brutal mid-winter trip from Oregon to St. Louis to appeal a decision by his Mission backers to abandon several of the Oregon missions. He joined the wagon train at the Platte River for the return trip. When the pioneers were told at Fort Hall by agents from the Hudson’s Bay Company that they should abandon their wagons there and use pack animals the rest of the way, Whitman disagreed and volunteered to lead the wagons to Oregon. He believed the wagon trains were large enough that they could build whatever road improvements they needed to make the trip with their wagons. The biggest obstacle they faced was in the Blue Mountains of Oregon where they had to cut and clear a trail through heavy timber. The wagons were stopped at The Dalles, Oregon by the lack of a road around Mount Hood. The wagons had to be disassembled and floated down the treacherous Columbia River and the animals herded over the rough Lolo trail to get by Mt. Hood. Nearly all of the settlers in the 1843 wagon trains arrived in the Willamette Valley by early October. A passable wagon trail now existed from the Missouri River to The Dalles. In 1846, the Barlow Road was completed around Mount Hood, providing a rough but completely passable wagon trail from the Missouri river to the Willamette Valley-about 2,000 miles.

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Emanuel, Duncan, and Rhee’s Neoliberal War on Public Education- Chicago Fights Back

Marching in Chicago: Resisting Rahm Emanuel’s Neoliberal Savagery

By Henry A. Giroux, Truthout

Monday, 20 May 2013 10:16

Chicago Mayor Rahm Emanuel’s current attempt to close down 54 public schools largely inhabited by poor minorities is one more example of a savage, racist neoliberal system at work that uses the politics of austerity and consolidation to further disenfranchise the unskilled young of the inner city. The hidden curriculum in this instance is not so invisible. Closing schools will result in massive layoffs, weakening the teachers unions. It will free up land that can be gentrified to attract middle-class voters, and it will once again prove that poor minority students, regardless of the hardships, if not danger, they will face as a result of such closings, are viewed as disposable – human waste to be relegated to the zones of terminal exclusion.  Not only are many teachers and parents concerned about displacing thousands of students to schools that do not offer any hope of educational improvement, but they are also concerned about the safety of the displaced children, many of whom “will have to walk through violent neighborhoods and go to school with other students who are considered enemies.”

This is not simply misguided policy, it is a racist script that makes clear that poor black youth are disposable and that their safety is irrelevant.  How else to explain the mayor’s plan to produce a Safe Passage Plan in which firefighters would be asked to patrol the new routes, even though they have made it clear that they are not trained for this type of special duty. That many of these children are poor black children trapped in under-resourced schools appears irrelevant to a mayor who takes his lead from politicians such as Barack Obama and Arnie Duncan, two educators who have simply reproduced the Bush educational reform playbook, i.e., more testing, demonize teachers, weaken unions, advocate for choice and charter schools, and turn public schools over to corporate hedge-fund managers and billionaires such as Bill Gates. Emanuel’s passionate zeal to downsize schools in impoverished black neighborhoods is matched only by his misdirected enthusiasm to lay out $195 million “on a basketball arena for DePaul University, a private Chicago university.”



What these three days of demonstrations must address is that without power over the conditions of their labor, teachers become pawns in a neoliberal politics in which they are deskilled, reduced to security guards, and work under conditions that transform education into a form of training.  High-stakes testing and its corresponding tactic of promoting cheating among administrators, putting into play the most degrading forms of competition, and its killing of the civic imagination is both a debased form of instrumental rationality and a reification of method – put another way, a kind of methodological madness.



The war being waged against Chicago Public schools, teachers and students is the product of a corporate ideology and pedagogy that numbs the mind and the soul, emphasizing repressive modes of learning that promote winning at all costs, learning how not to question authority, and disdaining the hard work of learning how to be thoughtful, critical, and attentive to the power relations that shape everyday life and the larger world. As learning is privatized, depoliticized, and reduced to teaching students how to be good consumers, any viable notions of the social, public values, citizenship and democracy wither and die.

Late Night Karaoke

Around the Blogosphere

Cross posted from The Stars Hollow Gazette

The main purpose our blogging is to communicate our ideas, opinions, and stories both fact and fiction. The best part about the the blogs is information that we might not find in our local news, even if we read it online. Sharing that information is important, especially if it educates, sparks conversation and new ideas. We have all found places that are our favorites that we read everyday, not everyone’s are the same. The Internet is a vast place. Unlike Punting the Pundits which focuses on opinion pieces mostly from the mainstream media and the larger news web sites, “Around the Blogosphere” will focus more on the medium to smaller blogs and articles written by some of the anonymous and not so anonymous writers and links to some of the smaller pieces that don’t make it to “Pundits” by Krugman, Baker, etc.

We encourage you to share your finds with us. It is important that we all stay as well informed as we can.

Follow us on Twitter @StarsHollowGzt

This is an Open Thread.

Chris in Paris and John Aravosis at Americablog gives us some good news on the aftermath of the deadly tornado in Moore, OK:

Then from John, the uglier side of this tragedy from the “Me, But Not For Thee” crowd:

Over at Corrente, lambert‘s marathon ObamaCare Clusterf**k continues with:

At FDL’s Newsdesk, DSWright fills us in on the news that we missed while the MSM is reporting the disaster. No, folks, the idiocy in politics and the changing canvas of the “Scandal-Gate” has not stopped:

From Jon Walker at FDL Action:

Kevin Gosztola continues his reporting on “Reporter- Gate” and the Bradley Manning trial at FDL’s The Dissenter:

From the many contributors at MyFDL:

From the contributors at Grist here are just a few of today’s really interesting features:

And finally, Charles P. Pierce gives Sen. Sheldon Whitehouse a Big Bravo. Both Charles and Atrios make note of a possible “band reunion” of sorts:

Bring the band back together.

   The president should announce that he has told the Justice Department to appoint an independent investigator with bulldog instincts and bipartisan credibility. The list of candidates could start with Kenneth Starr, who chased down the scandals, real and imagined, of the Clinton presidency.

They learned nothing.

The stupid just burns.

Obama’s Never Ending War

Cross posted from The Stars Hollow Gazette

The Authorization to Use Military Force is a joint resolution passed by the United States Congress on September 14, 2001, authorizing the use of United States Armed Forces against those responsible for the attacks on September 11, 2001. During a hearing before the Senate Armed Services Committee, Pentagon officials testified that the authorization would be needed for another 10 to 20 years and could be used anywhere from “Boston to FATA (Pakistan’s federally administered tribal areas).” According to the interpretation of these officials this could be done under the current AUMF without any further authorization from Congress. Those claims elicited disbelief, even from war hawk Sen. John McCain (R-AZ) who said, “For you to come here and say we don’t need to change it or revise or update it, I think is, well, disturbing.”

Indeed, but disturbing is an understatement, but none of the Senators suggested that the powers under the AUMF be dialed back.

Testifying before the committee on May 16 were Assistant Defense Secretary Michael Sheehan; Robert Taylor, the acting general counsel for the Department of Defense; Brig. Gen. Richard Gross, Legal Counsel, Chairman of the Joint Chiefs of Staff; and Gen. Michael Nagata, Deputy Director for Special Operations/Counterterrorism, J-37, Joint Staff

This excerpt of the hearing from Democracy Now includes Sen. Lindsey Graham (R-SC); Robert Taylor, acting general counsel, Department of Defense; Michael Sheehan, assistant secretary of defense for special operations/low-intensity conflict, Department of Defense; and Sen. Angus King (I-Maine).



Transcript is here

From Glenn Greenwald at the Guardian on Pres. Obama’s permanent war on terror:

That the Obama administration is now repeatedly declaring that the “war on terror” will last at least another decade (or two) is vastly more significant than all three of this week’s big media controversies (Benghazi, IRS, and AP/DOJ) combined. The military historian Andrew Bacevich has spent years warning that US policy planners have adopted an explicit doctrine of “endless war”. Obama officials, despite repeatedly boasting that they have delivered permanently crippling blows to al-Qaida, are now, as clearly as the English language permits, openly declaring this to be so.

It is hard to resist the conclusion that this war has no purpose other than its own eternal perpetuation. This war is not a means to any end but rather is the end in itself. Not only is it the end itself, but it is also its own fuel: it is precisely this endless war – justified in the name of stopping the threat of terrorism – that is the single greatest cause of that threat. [..]

The genius of America’s endless war machine is that, learning from the unplesantness of the Vietnam war protests, it has rendered the costs of war largely invisible. That is accomplished by heaping all of the fighting burden on a tiny and mostly economically marginalized faction of the population, by using sterile, mechanized instruments to deliver the violence, and by suppressing any real discussion in establishment media circles of America’s innocent victims and the worldwide anti-American rage that generates.

Though rarely visible, the costs are nonetheless gargantuan. Just in financial terms, as Americans are told they must sacrifice Social Security and Medicare benefits and place their children in a crumbling educational system, the Pentagon remains the world’s largest employer and continues to militarily outspend the rest of the world by a significant margin. The mythology of the Reagan presidency is that he induced the collapse of the Soviet Union by luring it into unsustainable military spending and wars: should there come a point when we think about applying that lesson to ourselves?

Then there are the threats to Americans’ security. Having their government spend decades proudly touting itself as “A Nation at War” and bringing horrific violence to the world is certain to prompt more and more people to want to attack Americans, as the US government itself claims took place just recently in Boston (and as clearly took place multiple other times over the last several years). [..]

The Obama administration already claims the power to wage endless and boundless war, in virtually total secrecy, and without a single meaningful check or constraint. No institution with any power disputes this. To the contrary, the only ones which exert real influence – Congress, the courts, the establishment media, the plutocratic class – clearly favor its continuation and only think about how further to enable it. That will continue unless and until Americans begin to realize just what a mammoth price they’re paying for this ongoing splurge of war spending and endless aggression.

Harvard Law professor and former Bush DOJ official Jack Goldsmith, who also testified, wrote this at the end of his brief summery of the hearing:

My general impression of the hearing was that (1) DOD officials were very uncomfortable talking about how they interpret the AUMF and what groups are covered by it, (2) those officials interpret the AUMF very broadly, and (3) several members of the Committee were surprised by the breadth of DOD’s interpretation of the AUMF.  I came away thinking that Congress cannot address the problem of extra-AUMF threats until it gets a handle on how the AUMF is being interpreted and deployed.  I also came away thinking more than ever that Congress needs to re-engage in a serious way about the nature and scope of the conflict against al Qaeda and affiliates.  Amazingly, there is a very large question even in the Armed Services Committee about who the United States is at war against and where, and how those determinations are made.

The solutions are for Congress to repeal the AUMF or for the Supreme Court to declare it unconstitutional. Don’t hold your breath for either of those things happening.

AP-Gate Just Got Worse

Cross posted from The Stars Hollow Gazette

Regardless of the left’s opinion of Fox News, the Obama administration has gone way over the constitutional line and this is adds to the serious threat to freedom of the press. The idea that the government. on its unconstrained wild hunt for whistle blowers, can issue secret subpoenas for telephone records just got worse this morning. The case is being made against Fox News reporter James Rosen for his reporting on the possibility that North Korea would respond to additional UN sanctions with more nuclear tests back in 2009. The Department of Justice is prosecuting State Department adviser and arms expert Stephen Jin-Woo Kim for “leaking” the information to James Rosen of Fox News. To makes the case against Rosen this is what the DOJ did:

They used security badge access records to track the reporter’s comings and goings from the State Department, according to a newly obtained court affidavit. They traced the timing of his calls with a State Department security adviser suspected of sharing the classified report. They obtained a search warrant for the reporter’s personal e-mails. [..]

Court documents in the Kim case reveal how deeply investigators explored the private communications of a working journalist – and raise the question of how often journalists have been investigated as closely as Rosen was in 2010. The case also raises new concerns among critics of government secrecy about the possible stifling effect of these investigations on a critical element of press freedom: the exchange of information between reporters and their sources.

First, Kim did not obtain these documents illegally, he had access to them, He did not steal or sell the documents, or pass them to an enemy agent of the US. He gave, what is for all intents and purposes, innocuous information to a news reporter. For that Kim is being prosecuted under the Espionage Act. Now the DOJ is seeking to prosecute Rosen for revealing the information.

Glenn Greenwald reiterated that it is not against US law to to publish classified information and is far worse than the secret subpoena of the phone records of the Associated Press:

The focus of the Post’s report yesterday is that the DOJ’s surveillance of Rosen, the reporter, extended far beyond even what they did to AP reporters. The FBI tracked Rosen’s movements in and out of the State Department, traced the timing of his calls, and – most amazingly – obtained a search warrant to read two days worth of his emails, as well as all of his emails with Kim. In this case, said the Post, “investigators did more than obtain telephone records of a working journalist suspected of receiving the secret material.” It added that “court documents in the Kim case reveal how deeply investigators explored the private communications of a working journalist”.

But what makes this revelation particularly disturbing is that the DOJ, in order to get this search warrant, insisted that not only Kim, but also Rosen – the journalist – committed serious crimes. The DOJ specifically argued that by encouraging his source to disclose classified information – something investigative journalists do every day – Rosen himself broke the law.

In an affidavit (pdf) from the FBI by Agent Reginald B. Reyes in the application for the search warrant, Reyes alleged that because Rosen and Kim used aliases to protect their communications and sought ways to maintain confidentiality, all completely legal for journalists to do, Rosen was acting “much like an intelligence officer would run an [sic] clandestine intelligence source, the Reporter instructed Mr. Kim on a covert communications plan… to facilitate communication with Mr. Kim and perhaps other sources of information.”

In her comparison of this case with the Associated Press, and cases against James Risen of The New York Times and Bradley Manning, Marcy Wheeler notes that Agent Reyes used the strategy of painting Rosen as criminal to circumvent the “Privacy Protection Act protections for media work product” in order to obtain the warrant for Rosen’s e-mails and other records:

In other words, during a period from May 2010 through January 2011, Eric Holder’s DOJ was developing this theory under which journalists were criminals, though it’s just now that we’re all noticing this May 2010 affidavit that lays the groundwork for that theory.

Maybe that development was predictable, given that during precisely that time period, the lawyer who fucked up the Ted Stevens prosecution, William Welch, was in charge of prosecuting leaks (though it’s not clear he had a role in Kim’s prosecution before he left in 2011).

But it’s worth noting the strategy – and the purpose it serves – because it is almost certainly still in effect. FBI Special Agent Reginald Reyes accused Rosen of being a criminal so he could get around the Privacy Protection Act protections for media work product (See pages 4 and following), which specifically exempts “fruits of a crime” or “property … used [] as a means of committing a criminal offense.” Then he further used it to argue against giving notice to Fox or Rosen.

   Because of the Reporter’s own potential criminal liability in this matter, we believe that requesting the voluntary production of the materials from Reporter would be futile and would pose a substantial threat to the integrity of the investigation and of the evidence we seek to obtain by the warrant. (29)

While the AP’s phone records weren’t taken via a warrant, it would be unsurprising if the government is still using this formula – journalists = criminals and therefore cannot have notice – to collect evidence. Indeed, that may be one reason why we haven’t seen the subpoena to the AP.

It is very clear that this is an unprecedented threat to freedom of the press and the Obama administration has escalated this war since Obama took office in 2009.

In an interview last week with Amy Goodman and Nermeen Shaikh, senior fellow at The Nation Institute Chis Hedges, called the monitoring of the AP phone records “one more assault in a long series of assault against freedom of information and freedom of the press.”

“Talk to any investigative journalist who must investigate the government, and they will tell you that there is a deep freeze. People are terrified of speaking, because they’re terrified of going to jail.”

~Chris Hedges~

Here is Mr. Hedges piece from Truthdig documenting The Death of Truth

Other related articles from Glenn Greenwald at The Guardian:

Justice Department’s pursuit of AP’s phone records is both extreme and dangerous

The major sea change in media discussions of Obama and civil liberties

Chronic Tonic- With A Flare~

originally published at VOTS

I guess the fibro flare was inevitable, what with the uptick in stress and all. The tiredness and muscle pain, well, I can deal with that. I’m only mildly annoyed, really. You want to know what’s killing me? The fog. The losing my train of thought, my next word, the standing there with my mouth hanging open…I hate that!

And it is stupid things too. I’ll be standing in kitchen, wanting more coffee, but being fogged, I will have left my cup by my computer. So I say, “Collin, could you bring me my….” that thing, that thing right there, I’m looking at it, I’m pointing at it, the kid is starting to look at me strangely now….”cup, that cup.” Damn it.

My dad talks to my while I’m typing. Well, to be honest, my dad talks to me, no matter what I’m doing. On the phone, typing, talking, reading, and normally, I don’t like to say anything to him because if I do he gives me that exaggerated ‘sorry” that tells me he’s anything but, and I ought to feel like shit for daring to speak. He just thought I’d like to know that pot roast was on sale. While I’m busy telling him that he buys it I just cook it– I look down to notice I just typed “pot roast”– in an e-mail to Dan’s teacher. Yeah…son of a bitch. Backspace, backspace, backspace…..ugh.

Then last night I pissed myself off so badly…I can scarcely express it. I’ve always been a bit of a channel surfer during commercial breaks. I was watching a true crime thing on Discovery ID and it went to commercial, so I surfed. Do you know I never came back? Nope. Just clean forgot I was watching something. It wasn’t like I found something more fascinating to watch on another channel or something like that, no. Oh, no, no, no! I was still mindlessly switching around when a glance at the clock showed me 59 minutes and I made an audible gasp. Now how the hell did that case turn out? Gah!

Stuff like this…it really bothers me.