Department of Bust Out Profit Models and Vampiric Capitalism
Robbie Couch in an article on HuffPo recently asserted:
The $400 billion program to create a fleet of F-35 Joint Strike Fighter jets, which, as The Hill points out, is seven years behind schedule and chronically plagued with misfortunes and incompetencies, could have housed every homeless person in the U.S. with a $600,000 home.
Obama’s promise to “reform” the Veterans Affairs’ health care system hides a real agenda of privatization assert Kate Randall and Barry Grey in “The drive to privatize US veterans’ health care.” Read more about ‘Reform’ of VA Means Privatization for Profits NOT Vets!
The apt “OILigarchy’”coinage belongs to Jacqueline Marcus in “When It Comes to Expanding the US Oil Empire, Expect Chaos in Ukraine and Nigeria.” She writes:
While climate change escalates to an emergency crisis, a growing national security concern, the US OILigarchy-government is on a "search and seize mission" for the very product that is obliterating our earth: Polluting Oil.
Fortune 500 health insurers increased compensation for their CEOs more than 19% in 2013 over 2012! Aetna's CEO Mark Bertolini received a 131% pay hike, bringing in $30.7 million: that's 877 times the $35k that the average worker makes in a year. Centene and Molina Healthcare doubled pay for their CEOs as well.
Matthew Behrens calls out -- big time -- Prime Minister of Canada, Stephen Harper, along with John Baird, Harper’s “foreign affairs pitbull” in “Ukraine and Canada’s Coup-Supporting Corporate Cowboy Diplomacy”.
Behrens writes of a “messianic” foreign policy of the present Canadian government, “making the world safe for Canadian corporate profits.” Read more about Ukraine Crisis Christmas for Corporate-Pimped Canadian Pols
Matt Stoller believes that the recent pre-publication release of a study by Martin Gilens and Benjamin I. Page doesn't support the idea that the United States is an oligarchy yet. He says:
A lot of people are misreading this Princeton study on the political influence of the wealthy and business groups versus ordinary citizens. The study does not say that the US is an oligarchy, wherein the wealthy control politics with an iron fist. If it were, then things like Social Security, Medicare, food stamps, veterans programs, housing finance programs, etc wouldn’t exist.
What the study actually says is that American voters are disorganized and their individualized preferences don’t matter unless voters group themselves into mass membership organizations. Then, if people belong to mass membership organizations, their preferences do matter, but less so than business groups and the wealthy.
Well, it's true that Gilens and Page never say that United States is an oligarchy, and perhaps it's also true that they don't believe it. But they do say this: Read more about Are We An Oligarchy Yet?
Dan Roberts in “Wall Street Deregulation Pushed by Clinton Advisers, Documents Reveal” provides some compelling revelations from 7000 pages of documents withheld from public scrutiny by the Presidential Records Act for twelve years and now destined for the Clinton Library research room.
America’s banking crisis of 2007 was set up by dramatic deregulation during the Clinton presidency in the late 1990s. Read more about Clinton Advisers Who Set Up Deregulation/US Economic Crash
Recently, I've been writing about oligarchs advocating for entitlement cuts and austerity. I've discussed attacks on entitlement benefits for the elderly from Abby Huntsman (of MSNBC's The Cycle) and Catherine Rampell (a Washington Post columnist), both the children of well-off individuals. These posts have come in the context of the English language release of Thomas Piketty's Capital in the Twenty-First Century, and the more recent pre-publication release of a study by Martin Gilens and Benjamin I. Page using quantitative methods and empirical data to explore the question of whether the US is an oligarchy or a majoritarian democracy. They conclude:
”What do our findings say about democracy in America? They certainly constitute troubling news for advocates of “populistic” democracy, who want governments to respond primarily or exclusively to the policy preferences of their citizens. In the United States, our findings indicate, the majority does not rule -- at least not in the causal sense of actually determining policy outcomes. When a majority of citizens disagrees with economic elites and/or with organized interests, they generally lose. Moreover, because of the strong status quo bias built into the U.S. political system, even when fairly large majorities of Americans favor policy change, they generally do not get it.”
With this as a backdrop, today I want to de-construct a recent statement by Michael A. Peterson, President and COO, of one of the centers of American oligarchy, the Peter G. Peterson Foundation (PGPF), and the son of the multi-billionaire Peter G. Peterson, commenting on the CBO's Report earlier this month, on its updated budget projections for 2014 - 2024. Read more about Peterson/CBO Beat for Austerity Goes On!
In my last post, I took issue with a recent column by Catherine Rampell, who tries to make the case that seniors haven't paid for their Social Security and Medicare because they “generally receive” more in benefits out of these programs than they pay into them. Rampell relies on an Urban Institute study to make her case. Since that post, she's offered another that replies to some of the questions raised by commenters on her earlier effort. I'll reply to that new post shortly, but first I want to present key points emerging from my analysis of Federal monetary operations in my reply to her earlier post. See that post for the full argument.
First, once Congress mandates spending, there is no way that the Treasury can be forced into insolvency or an inability to pay its obligations as long as it is willing to make use of all the ways it can cause the Fed to create reserve credits in Treasury spending accounts which can then be used for its reserve keystroking into private sector account activities that today represent most of the reality of Federal spending. Read more about More Misdirection from Rampell in the Service of Generational War
Some of the favored children of the economic elite who have a public presence, work hard in their writing and speaking to divert attention from inequality and oligarchy issues by raising the issue of competition between seniors and millennials for “scarce” Federal funds. That's understandable. If millennials develop full consciousness of who, exactly, has been flushing their prospects for a decent life down the toilet, their anger and activism might bring down the system of wealth and economic and social privilege that benefits both their families and the favored themselves in the new America of oligarchy and plutocracy.
Here and here, I evaluated Abby Huntsman's arguments for entitlement “reform,” and, of course, Pete Peterson's son, Michael fights a continuing generational war against seniors in pushing the austerian line of the Peterson Foundation. Now comes Catherine Rampell, who, in a recent column, sets forth the position that seniors haven't paid for their Social Security and Medicare because they “generally receive” more in benefits out of these programs than they pay into them.
I'll reply to all of the main points in Rampell's argument, by quoting liberally and then replying to the points she makes in each quote. She says: Read more about Misdirection: Rampell Views Entitlements Through the Generational War Lens
In a highly illuminating article entitled “The Global Money Matrix: The Forces behind America’s Economic Destruction” Dr. Gary Null cites psychologist Clive Boddy as maintaining that “the psychopathological behavior of financial executives was a major cause for the 2007 economic collapse.”
Boddy also has asserted that “individuals with the strongest psychopathic tendencies are those who tend to be promoted fastest.” Read more about Corporate Exec ‘Psychopathic Groupthink’ Crashed Our Economy
Paul Craig Roberts, former U.S. Treasury Secretary bottom-lines the present economic doom of America’s working -- and non-working -- class in "Another Fraudulent Jobs Report." He writes:
Americans live in a matrix of total lies.
What can Americans do? Elections are pointless.
All of a sudden MSNBC cable commentators are talking about plutocracy and oligarchy. Surprisingly, the first occurrence of this I'm aware of was Chuck Todd, reacting on his Daily Rundown show to the spectacle of Republican candidates traveling to Vegas to seek funding from Sheldon Adelson and his group of hugely wealthy Jewish Republican donors. Todd began to explore the implications of that event. He seemed exercised, and more than the slightest bit upset, about its meaning for Democracy and used the words plutocracy and oligarchy. Andrea Mitchell also discussed it later and she, too, registered apparent dismay, while using the “p” and “o” words.
Chris Hayes has been on leave during this period, so we haven't heard from him about this. But Chris Matthews, the “oh so very slightly left-of-center insider” has been making very unfriendly noises about Adelson, the Kochs, and the Supremes, culminating today (April 3rd) with nasty references to plutocrats, oligarchs, and candidates, kissing oligarchs somewhere or other, on both his program and Al Sharpton's. Read more about Is the MSM Blackout on Inequality, Plutocracy, and Oligarchy Ending?