Tag: ek Politics

What we learned from liberals at Netroots Nation

By KATIE GLUECK, Politico

7/20/14 10:09 AM EDT

At a high-profile gathering of progressives this week, Hillary Clinton was tolerated, Barack Obama was pitied, and Elizabeth Warren was treated like a hero.

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Candidates hoping to harness this crowd’s enthusiasm will need to embrace that pugnacious stance toward big business, not just talk about creating more opportunities for the middle class. Attendees here see Wall Street as a deeply damaging force in American politics and they want the kind of retribution Warren promises.

Netroots attendees hail from the most liberal corners of the Democratic Party. To them Clinton is simply too conservative on fiscal and foreign policy matters. They see the former New York senator as tight with Wall Street, and she doesn’t strike them as willing to fight for working people the way Warren does.

Yet interviews with several attendees suggest it’s not a lost cause for Clinton. If she distances herself from big business, highlights her support for labor – a point that came up several times here, given the big union representation at the conference – and demonstrates she cares about the struggles of ordinary Americans, she could go a long way with this group. What it really comes down to, activists say, is a shift in what Clinton emphasizes.

“She would have to have Elizabeth Warren’s message,” said Cindy Pettibone, an activist from the Washington, D.C., area. “Against big banks and corporations, for the little guy, restoring the middle class and unions.”

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Even though grassroots activists acknowledge that Clinton is the most electable Democrat on the radar right now, they don’t want a Clinton coronation.

And if Warren doesn’t run, they are hoping another left-leaning candidate will challenge Clinton so that the party will have to engage in a full-throated debate about where it stands on economic issues. They also believe that regardless of whether other candidates are viable, a contested primary would push Clinton to the left.

Potential alternatives some cited include Sen. Bernie Sanders (I-Vt.), a self-described socialist. There’s also Vice President Joe Biden, whose keynote speech Thursday was well-received. Though some activists said they don’t view Biden much to the left of Clinton, they love that he pushed (if only inadvertently) President Barack Obama to endorse gay marriage in 2012. And they perceive him as slightly less hawkish than the president.

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The president has had a tumultuous relationship with the Netroots crowd.

They loved him during his nomination fight ahead of the 2008 election, but many of these activists have grown disillusioned at seeing the White House fail to produce much of the change they felt they’d been promised.

Dem base: Fine with Hillary Clinton, pining for Elizabeth Warren

By KATIE GLUECK, Politico

7/18/14 4:31 PM EDT

Netroots draws the most liberal elements of the Democratic base – but they are also among the most politically active, and Clinton will need to inspire enthusiasm among them should she run. And it’s not as if that sentiment is nonexistent: Several people said they see her as a trailblazer for women in politics. But many others also described the former secretary of state and first lady as too close to Wall Street, too conservative on national security issues and as an insufficiently fiery champion for the middle class.

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“Does she connect with people? Can she articulate [their struggles]?” Wherley said. “Elizabeth Warren speaks regularly about that. Hillary Clinton does not. … Elizabeth Warren intends to lift up the middle class. I don’t know what Hillary’s vision is for doing that. Would she cross bankers? Payday lenders?”

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Clinton is “fairly close to Wall Street, she’s less aggressive about standing up,” said Derek Cressman, who just lost a bid for California secretary of state. “On economic populism, Warren is stronger. Credible and stronger language, standing up to banks, standing up to Wall Street.”

The Elizabeth Warren Fantasy

By BILL SCHER, Politico

July 17, 2014

Her traveling road show powerfully demonstrates why. Warren blows past any Beltway skittishness over “class warfare.” In her recent appearances alongside Kentucky’s Alison Lundergan Grimes and West Virginia’s Natalie Tennant, she portrayed the options before voters as “a choice between billionaires and students” or between someone who will “stand up for Wall Street” or “stand up for the families.” She name-checked Citibank and Goldman Sachs as among the Wall Streeters who already have “plenty of folks in the United State Senate who are willing to work on their side,” suggesting they don’t need to hold on to eager recipients of financial industry campaign cash like Sen. Mitch McConnell or Rep. Shelley Capito. And she used her signature student loan bill that would pay for refinancing by closing tax loopholes, filibustered by Republicans but embraced by the two Appalachian Democrats, as a case study of whose side each candidate is on.

Warren’s Wall Street bashing has a good chance of boosting Tennant and Grimes because no matter what shade the state, people hate Wall Street. Already this year, Rep. Eric Cantor lost his job in part because Tea Party conservatives felt he was too close to big banks. After that Virginia primary, pollster Greenberg Quinlain Rosner conducted a national survey showing that 64 percent believe “the stock market is rigged for insiders” and 60 percent support “stricter regulation” on financial institutions, reflecting support that spans across the partisan spectrum.

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Obama doesn’t neglect the populist critique of a system skewed toward the top one percent. But he stops short of embracing Warren’s us-versus-them framework. “Wall Street,” or its unpopular representatives, are never mentioned by name. Obama prefers the word “everybody,” as when he declared in Colorado, “we’re fighting for the idea that everybody gets opportunity” with robust investments in infrastructure, energy and education, along with a higher minimum wage and increased workplace flexibility. Clinton is singing from the same hymnal, reportedly using the line “we’re all in this mess together” when discussing her thinking on economic issues in recent speeches.

The hits keep right on coming from an Administration that makes Boss Tweed and Warren Harding look like Mother Theresa.

Hunt for oil and gas to begin off East Coast

By Laura Barron-Lopez, The Hill

07/18/14 01:47 PM EDT

The Obama administration opened up the Atlantic to oil and gas exploration for the first time in nearly four decades on Friday.

The announcement from Interior’s Bureau of Ocean Energy Management (BOEM) allows the use of air guns and sonic sensors to search off of the East Coast.

It is a major step toward allowing future drilling in the Atlantic, which has remained off-limits for over 30 years.

While the decision doesn’t guarantee that lease sales for drilling in Atlantic waters will be included in the Interior Department’s five-year plan for 2017-2022, it is a step in that direction.

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“For more than 30 years, the Atlantic coast has been off limits to offshore drilling. Today, our government appears to be folding to the pressure of Big Oil and its big money,” said OCEANA spokeswoman Claire Douglass.

Green groups say the tests could kill thousands of marine mammals, injuring dolphins and endangered whales.

The Natural Resources Defense Council called seismic testing the “gateway drug to offshore drilling.”

Choosing Big Oil over whales: Obama opens East Coast for offshore exploration

Lindsay Abrams, Salon

Friday, Jul 18, 2014 03:09 PM EST

Federal waters off the East Coast are officially open for oil exploration, the Obama administration announced Friday, meaning energy companies can begin surveying the Eastern Seaboard, from the coast of Delaware down to Florida, in preparation for potential drilling.

The most immediate concerns, to environmentalists, are the air guns and sonic sensors used to find the oil, which can harm endangered whales and other marine life, like fish and sea turtles. In its environmental impact study conducted ahead of the approval, the U.S. Bureau of Ocean Energy Management estimated that more than 138,000 sea creatures could potentially be harmed by the activity, including nine north Atlantic right whales. Only 500 of the whales remain worldwide.

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And where there’s oil exploration, there usually ends up being oil drilling, to which coastal states, concerned about fisheries, tourism and the potential for spills, are largely opposed. Michael Jasny, director of the Natural Resources Defense Council’s Marine Mammal Protection Project, told Fuel Fix that seismic exploration is “a gateway drug to offshore drilling.” Fuel Fix has more on how the fossil fuel industry is exerting its influence:

Friday’s move also helps pave the way for possible drilling off the East Coast in the 2020s, by giving the industry a new chance to prove the oil and gas potential of the area right as the Obama administration is assembling a five-year plan for selling offshore energy leases beginning in late 2017.

Remember, this is not “Energy Independence” oil (though that would be bad enough in terms of climate change), this is “Export Oil” that Big Carbon sells overseas to line the pockets of their Executive Oligarchs.

Nobel Economist Joseph Stiglitz Hails New BRICS Bank Challenging U.S.-Dominated World Bank & IMF

Democracy Now

Thursday, July 17, 2014

A group of five countries has launched its own development bank to challenge the U.S.-dominated World Bank and International Monetary Fund. Leaders from the so-called BRICS countries – Brazil, Russia, India, China and South Africa – unveiled the New Development Bank at a summit in the Brazilian city of Fortaleza. The bank will be headquartered in Shanghai. Together, BRICS countries account for 25 percent of global GDP and 40 percent of the world’s population. To discuss this development, we are joined by Nobel Prize-winning economist Joseph Stiglitz, a professor at Columbia University and the World Bank’s former chief economist. “It’s very important in many ways,” Stiglitz says of the New Development Bank’s founding. “This is adding to the flow of money that will go to finance infrastructure, adaptation to climate change – all the needs that are so evident in the poorest countries. It [also] reflects a fundamental change in global economic and political power. The BRICS countries today are richer than the advanced countries were when the World Bank and the IMF were founded. We’re in a different world – but the old institutions haven’t kept up.”

Web Special: Joseph Stiglitz on TPP, Cracking Down on Corporate Tax Dodgers & New BRICS Bank

Democracy Now

July 17, 2014

Part 2.

Is the New BRICS Bank a Challenge to US Global Financial Power?

The Real News

July 18, 14

Michael Hudson is a Distinguished Research Professor of Economics at the University of Missouri, Kansas City.  Leo Panitch is the Canada Research Chair in Comparative Political Economy and a distinguished research professor of political science at York University in Toronto.

The Calm Before The Calm

By Charles P. Pierce, Esquire

7/17/2014 at 12:45 PM

The annual Netroots Nation gathering is an almost placid affair. For example, in contrast to the CPAC convention, at which every wingnut with delusions of grandeur showed up and at which enough red meat was thrown out to give the Potomac atherosclerosis, this hootenanny is remarkably uncontaminated by major politicians, and especially by those national politicians who allegedly aspire to a higher office than the one they presently hold. The only real marquee names are Senator Professor Warren, who speaks on Friday morning, and Vice President Joe Biden, who pops in this afternoon to inflame the masses as only he can. Hillary Clinton is too busy having a really bad book tour.

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Nevertheless, having been to CPAC, it’s hard not to conclude that the two national parties continue to have conspicuously different attitudes toward their respective bases. At CPAC, every high-profile Republican showed up, whether or not they happened to have five votes in the hall. Chris Christie got hooted at by the denizens of the monkeyhouse, and nobody seemed to know quite what to do with Rand Paul and his devotees. But they showed up. Here, once again, it is fair to conclude that the national Democratic party — at least as represented by its high-profile national figures — can still be scared away from its base and its issues by a strong breeze. The people at Netroots are being held at arm’s length in a way that national Republicans never would dare hold CPAC. And with the triangulated, deadening specter of an inexorable Clinton Restoration looming over everything, and that includes everything here, it’s difficult to see that changing very much. I’m sure Senator Professor Warren will get a wild ovation tomorrow. How long and how profoundly that ovation echoes in our politics is still very much an open question.

Yeah, Markos.  Things are better than ever.  How’s that working out for your business model Bucky?

“Iraq Has Already Disintegrated”: ISIS Expands Stronghold as Leaks Expose US Doubts on Iraqi Forces

Democracy Now

July 16, 2014

Iraq remains on the verge of splintering into three separate states as Sunni militants expand their stronghold in the north and west of Iraq. The Islamic State of Iraq and Syria (ISIS) declared itself a caliphate last month and now controls large parts of northern and western Iraq and much of eastern Syria. Recent advances by ISIS, including in the city of Tikrit, come amidst leaks revealing extensive Pentagon concerns over its effort to advise the Iraqi military. Iraqi politicians, meanwhile, are scrambling to form a power-sharing government in an effort to save Iraq from splintering into separate Shiite, Sunni and Kurdish states. We are joined by two guests: Reporting live from Baghdad is Hannah Allam, foreign affairs correspondent for McClatchy Newspapers, and joining us from London is Patrick Cockburn, Middle East correspondent for The Independent and author of the forthcoming book, “The Jihadis Return: ISIS and the New Sunni Uprising.”

U.S. Sees Risks in Assisting a Compromised Iraqi Force

By ERIC SCHMITT and MICHAEL R. GORDON, The New York Times

JULY 13, 2014

The report concludes that only about half of Iraq’s operational units are capable enough for American commandos to advise them if the White House decides to help roll back the advances made by Sunni militants in northern and western Iraq over the past month.

Adding to the administration’s dilemma is the assessment’s conclusion that Iraqi forces loyal to Prime Minister Nuri Kamal al-Maliki are now heavily dependent on Shiite militias – many of which were trained in Iran – as well as on advisers from Iran’s paramilitary Quds Force.

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The Pentagon’s decision this month to rush 200 troops, plus six Apache helicopter gunships and Shadow surveillance drones, to the Baghdad airport was prompted by a classified intelligence assessment that the sprawling complex, the main hub for sending and withdrawing American troops and diplomats, was vulnerable to attack by ISIS fighters, American officials have now disclosed.

“It’s a mess,” said one senior Obama administration official who has been briefed on the draft assessment and who, like two other American officials briefed, spoke on the condition of anonymity because of the continuing review and the delicate nature of the assessment.

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One of the assessment’s conclusions was that Iraqi forces had the ability to defend Baghdad, but not necessary hold all of it, especially against a major attack. Already, the capital has been targeted by ISIS car bombs.

Transcript

Oil Train Blast Zone Website Lets You See Your Proximity to Bomb Trains

Justin Mikulka, DeSmogBlog

Thu, 2014-07-10 11:31

ForestEthics has launched a new Oil Train Blast Zone website that allows people to search their address and determine if they are within the estimated blast zones for the trains carrying highly flammable crude oil, known as “bomb trains.”

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Due to the explosive nature of the oil and the continued use of unsafe DOT-111 tanker cars, even in accidents only involving a few cars rupturing and burning, like the one in Lynchburg, Virginia, first responders have taken the approach of just letting the tank cars and oil burn itself out instead of trying to put the fire out.

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In Albany, NY, which has become one of the top destinations for oil trains filled with Bakken crude oil, an event was held at the Ezra Prentice apartments which are located directly along tracks that regularly have the oil tank cars parked on them or moving along them.

While the event was a vigil for the 47 people who died in Lac-Megantic (link added) a year ago, there was plenty of talk about the fact that these apartments and many others in Albany were located within the blast zone.

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This past week in Lac-Megantic, it was still very clear where the blast zone was from that accident a year ago.  While the train company has been purchased by the massive New York hedge fund Fortress Investment Group and the tracks have been rebuilt, downtown is still fenced off so that the work of continuing to remove the contaminated soil can continue.

The trains have returned but Lac-Megantic is a long way from being rebuilt.

Who Is the Unsung Hero of the $7 Billion Citigroup Settlement?

William K. Black, The Real News Network

7/15/14

This is the latest in the way of embarrassing settlements by the Department of Justice that they’re trying to bill as if they were holding Citicorp accountable. So it’s $7 billion. As you say, the $4 billion is a larger number than has previously gone to the United States, but it’s not the biggest settlement. The JPMorgan settlement is larger in overall terms. And it really doesn’t matter how much goes to the federal government versus state governments in these terms.

Let me give you two words that you’re not going to hear in the coverage of this, and those words are Richard Bowen. Richard Bowen was the whistleblower that made all of this possible, that gave this case on a platinum platter to the Department of Justice. And today the attorney general of the United States, Eric Holder, has given a press conference in which he has never mentioned Richard Bowen’s name and has never used it as an opportunity to praise him and to ask other people to come forward and blow the whistle so that we can prevent these kind of crimes.

In addition you’ll note that there are no criminal charges in this case against the individuals or against Citicorp. And as a result of all of this, all of the individuals who became wealthy through what the Department of Justice describes as an egregious fraud that was followed by a coverup–in other words, multiple felonies–have not been charged at this point, and, frankly, there’s no indication that they’re about to be charged as well. So the people that committed the frauds get to keep all of the bonuses that were created as a result of those frauds, and it’s another disgraceful moment in the chapter of the Department of Justice.

Citigroup Is Said to Be Close to Settling Inquiry Into Mortgage Securities

By MICHAEL CORKERY and BEN PROTESS, Yhe New York Yimes

July 8, 2014 9:07 pm

At one point in the talks, the government demanded that Citigroup pay $10 billion. While the settlement will fall short of that demand, the bank will still pay more than once expected.

The two sides are still working out some details. Citi is expected to pay roughly $4 billion in cash, according to a person briefed on the matter. The remainder of the $7 billion would include so-called soft dollar penalties, including mortgage modifications and other forms of relief to homeowners, and possibly payments to state attorneys general involved in the case.

The total amount will almost certainly exceed the $2 billion that some Wall Street analysts initially estimated that Citigroup would be liable to pay, though more recent estimates have put the number closer to $6 billion.

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Citigroup was not nearly as big a player in this business as JPMorgan Chase, which agreed to a $13 billion settlement with the Justice Department last year.

Lawyers for the big banks say privately that federal prosecutors appear to have scrapped the model used in that case and are demanding penalties that are far more punitive than what JPMorgan paid.

The Citigroup deal raises the stakes for Bank of America, which is expected to be the next large bank to settle its mortgage case with the Justice Department. Talks between the bank and federal prosecutors have largely gone dormant in recent weeks as the Justice Department focused on resolving its case with Citigroup, people briefed on the matter said.

Citigroup Settles Mortgage Inquiry for $7 Billion

By MICHAEL CORKERY

July 14, 2014 8:29 p.m.

The unusual arrangement, which was outlined in the deal on Monday, underscores how difficult it remains for Citigroup to shed its rocky past and how federal prosecutors are getting creative in holding the nation’s big banks accountable for losses that crippled the global financial system in 2008.

Like other settlements the federal government has signed with Wall Street, Citigroup’s deal also requires the bank to modify mortgages of struggling homeowners. But Citigroup’s mortgage business has shrunk appreciably since the financial crisis, and the bank doesn’t service enough troubled mortgages to satisfy the monetary settlement terms for homeowner relief. So the bank agreed to finance affordable rental housing in unspecified “high cost of living areas.”

Wall Street watchdog groups and housing advocates said the terms of the $7 billion settlement highlight how the federal government has fallen short in its effort to hold banks accountable, noting that neither Citigroup nor any of its executives have been criminally charged for the bank’s mortgage problems.

In announcing the deal on Monday, Attorney General Eric H. Holder Jr. said the hard-fought settlement did not absolve the bank or its employees from facing criminal charges. “The bank’s misconduct was egregious,” he said. “As a result of their assurances that toxic financial products were sound, Citigroup was able to expand its market share and increase profits.”

The Justice Department said Citigroup routinely ignored warnings that a significant portion of the mortgages it was packaging and selling to investors in 2006 and 2007 had underwriting defects. In one internal email cited by prosecutors, a Citigroup trader wrote “went thru Diligence Reports and think that we should start praying … I would not be surprised if half of these loans went down.” But the bank securitized the loans anyway.

The Justice Department said it was this type of evidence that enabled prosecutors to extract a $4 billion cash penalty from Citigroup – the largest payment of its kind. That money will go into the United States Treasury’s general fund and is not earmarked for any particular use.

The deal also includes $2.5 billion in so-called soft dollars designated for the financing of rental housing, mortgage modifications, down payment assistance and donations to legal aid groups, among other measures intended to provide relief to consumers.

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In a boon for Citigroup, the deal with the Justice Department forgoes any potential cases against the bank related to collateralized debt obligations, or C.D.O.s, which were often tied to mortgages. While Citi was a relatively small player in the mortgage securities market, it was a leader on Wall Street in C.D.O.s.

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But for many borrowers who have already gone through foreclosures, the settlement comes too late, consumer advocates say.

“Seven billion sounds like a lot. But compared to the number of families that lost their homes, it is not very much at all,” said Isaac Simon Hodes, a community organizer with Lynn United for Change, a group that advocates on behalf of Boston-area residents facing foreclosure.

Citigroup Pays Just $7 Billion For Causing Financial Crisis

By: DSWright, Firedog Lake

Monday July 14, 2014 7:22 am

Attorney General Eric Holder, once a Wall Street lawyer who represented clients involved in mortgage fraud that led to the 2008 crisis, said “The bank’s misconduct was egregious,” while promoting the inconsequential settlement.

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The Justice Department declined an earlier offer from Citigroup noting it had emails and other evidence that, according to AG Holder, showed “[W]idespread defects among the increasingly risky loans they were securitizing, the bank and its employees concealed these defects.” Kind of sounds like criminal fraud doesn’t it?

Citigroup itself was formed under dishonest circumstances through the merger of Citibank and Travelers Group when Federal Reserve Chair Alan Greenspan approved the merger despite it being illegal at the time. Congress, who had taken millions of dollars from owners and investors in Citigroup, then approved the merger. One of those lobbying for the merger to be retroactively legalized was Clinton Treasury Secretary Robert Rubin who would go on to serve as chairman of Citigroup and make over $100 million.

Citigroup has been bailed out at least four times by the federal government and continues to be implicated in illegality regarding money laundering for terrorists and drug cartels as well as other crimes in the foreign exchange market. The former CEO of Citigroup and architect of the merger in the 90s, Sandy Weill, has said the merger no longer makes sense and Citigroup should be broken up.

Germany Expels Top U.S. Intelligence Officer

By ALISON SMALE and MELISSA EDDY, The New York Times

JULY 10, 2014

“The representative of the U.S. intelligence services at the United States Embassy has been asked to leave Germany,” a government spokesman, Steffen Seibert, said in a statement.

“The request occurred against the backdrop of the ongoing investigation by federal prosecutors as well as the questions that were posed months ago about the activities of U.S. intelligence agencies in Germany,” he said. “The government takes the matter very seriously.”

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German officials have been frustrated in their efforts to receive clarification from Washington over allegations of spying that began last year when it was revealed that the National Security Agency had been monitoring the chancellor’s cellphone. Although President Obama has offered assurances that it will no longer happen, revelations last week that a member of the German secret services had been spying for the United States sparked a fresh round of outrage.

On Wednesday, the police searched the Berlin office and apartment of a man suspected of being a spy, federal prosecutors said. They declined to give further information, but the German news media reported that the suspect worked for the Defense Ministry. A ministry spokesman confirmed that it was involved in an investigation.

Oh, that’s right.  In case you missed it the was a second spy, this one in the Defense Department.

Second German government worker suspected of spying for US

Philip Oltermann, The Guardian

Wednesday 9 July 2014 13.20 EDT

Public prosecutors confirmed that the home and office of a defence ministry employee in the greater Berlin area had been searched on Wednesday morning.

They told the Guardian that a search had been conducted “under suspicion of secret agent activity” and that evidence – including computers and several data storage devices – had been seized for analysis. The federal prosecutor’s office confirmed that no arrest had yet been made.

According to Die Welt newspaper, the staffer being investigated is a soldier who had caught the attention of the German military counter-intelligence service after establishing regular contact with people thought to be working for a US secret agency.

The news came just days after a member of the German intelligence agency BND confessed to having passed more than 200 confidential files to a contact at the CIA.

The new case is not thought to be directly related to that of the BND staffer. However, one government insider familiar with the case told Süddeutsche Zeitung that the new case being investigated was “more serious” than that of the BND spy, in which the sold documents are thought to have been of limited value.

So we have the NSA tapping Andrea Merkel’s phone.  A spy at the German intelligence agency.  Another spy in the Defense Department and John Brennan, Director of National Intellegence for the United States and proven liar under oath to Congress calling to try and patch things up.

US officials have been trying to limit the diplomatic fallout, with the CIA’s head, John Brennan, reportedly calling Angela Merkel, the German chancellor, in the wake of the latest spying scandal.

Why John Brennan you ask?  Well because the CIA and the NSA don’t deign to tell Barack Obama about their spying on friendly allied governments.

Spying Case Left Obama in Dark, U.S. Officials Say

By MARK MAZZETTI and MARK LANDLER, The New York Times

JULY 8, 2014

What Mr. Obama did not know was that a day earlier, a young German intelligence operative had been arrested and had admitted that he had been passing secrets to the Central Intelligence Agency.

While Ms. Merkel chose not to raise the issue during the call, the fact that the president was kept in the dark about the blown spying operation at a particularly delicate moment in American relations with Germany has led frustrated White House officials to question who in the C.I.A.’s chain of command was aware of the case – and why that information did not make it to the Oval Office before the call.

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What is particularly baffling to these officials is that the C.I.A. did not inform the White House that its agent – a 31-year-old employee of Germany’s federal intelligence service, the BND – had been compromised, given his arrest the day before the two leaders spoke. According to German news media reports, the agency may have been aware three weeks before the arrest that the German authorities were monitoring the man.

A central question, one American official said, is how high the information about the agent went in the C.I.A.’s command – whether it was bottled up at the level of the station chief in Berlin or transmitted to senior officials, including the director, John O. Brennan, who is responsible for briefing the White House.

Yeah, right.  The BND spy was arrested and in custody and identified as a  CIA spy a full day before the phone call to Merkel.

And Brennan didn’t know?  And Barack Obama didn’t know?

There’s a lovely little bridge in their home town I’d like to sell these propagandists.

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THE POLITICS AND ECONOMICS OF INEQUALITY: A LECTURE TO THE TOP ONE-TENTH OF 1 PERCENT

Robert Reich

Thursday, July 3, 2014

The irony of talking about inequality with an audience composed almost entirely of the richest one-tenth of 1 percent of Americans was not lost on me. When I suggested that we return to the 70 percent income-tax rate on top incomes that prevailed before 1981, many looked as if I had punched them in the gut.

But I stressed it’s not a zero-sum game, and they’d do better with a smaller share of a rapidly-growing economy – growing because the vast middle class and the poor had the purchasing power to get the economy back on track – than they’re doing with a large share of an economy that’s barely growing at all.

It’s crucial that America’s most powerful and privileged understand what’s happening, and why they must support fundamental reform.

Obama Consults a “Wide Variety of Economists” – Just Not Those Who Got it Right

William Black, New Economic Perspectives

July 3, 2014

Obama is already well into the lame duck phase of his presidency, so this is simply a PR exercise.  The message Obama wants to send is the same one he has sounded throughout his presidency.  He is open to economic views from the parts of the political spectrum that range from the hard right to the mild left.

Obama is not open to hearing the economic views of anyone who got the crisis correct or anyone his advisors consider to the left of Paul Krugman (who is mildly left in economic terms).  James Galbraith (.pdf) captured the first point brilliantly in an essay about a Krugman column.  Krugman was making the correct point that conservative economists had gotten the crisis wrong and, in passing, mentioned less than a handful of economists he considered to have gotten it right.  Galbraith stressed Krugman’s lack of interest in what economists got the crisis right and Krugman’s failure to list the economists who had actually gotten it right and had theoretical explanations for the causes of the crisis that had proved accurate in multiple crises.

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Obama’s current set of luncheon meetings with economists includes economists that range from the hard right to Krugman on the “responsible” left.  The article portrays this as “tapping a broad array of ideological views.”  It fails to “tap,” however, anyone who actually got the crisis correct and anyone remotely as far left as the economists Obama chose to speak with on the hard right.  Economists such as James Galbraith were once on the fringes of Obama’s economic team (pre-inauguration).  Galbraith is a bit to the left of Krugman, but he is nowhere near as far from the center as are several of the hard right economists Obama chose to talk with about economic policy.  The same is true of Dean Baker, Randy Wray, and Stephanie Kelton.  Our friends at U. Mass. – Amherst are about as far to the left as folks like Kevin Hassett are to the right.  The real difference, the thing sure to exclude Galbraith, Baker, Wray, and Kelton from Obama’s luncheon list, is that they have committed the unforgivable sin of having been proved correct (again) about big finance and the crisis.  There is, of course, no chance that Obama will ever invite any of us, much less our friends at Amherst, to lunch to discuss economic policy.