A Doomsday View of 2012
James Petras
Introduction
The economic, political and social outlook for 2012 is profoundly negative. The almost universal consensus, even among mainstream orthodox economists is pessimistic regarding the world economy. Although, even here, their predictions understate the scope and depth of the crises, there are powerful reasons to believe that beginning in 2012, we are heading toward a steeper decline than what was experienced during the Great Recession of 2008 – 2009. With fewer resources, greater debt and increasing popular resistance to shouldering the burden of saving the capitalist system, the governments cannot bail out the system.
PermalinkSuper Congress in Session - More of the Cruel Charade
By Michael Collins
Wall Street and the big banks owe $1.5 trillion for the bailout (at least). The Super Congress needs to cut $1.5 trillion over ten years. Get the money from Wall Street and cancel the Super Congress. Problem solved.
Last month’s debt ceiling crisis was resolved when Congress and the Obama administration made a deal to cut trillions in federal spending over the next ten years. Congress identified the easy cuts, the low hanging fruit so to speak, for a total of nearly $1.0 trillion. At the same time, Congress and the White House created the “Super Congress” committee of six senators and six representatives charged with cutting another $1.5 trillion. (Image: Lucy White with permission)
The committee has unparalleled power to draft legislation, without the normal legislative processes of debate, deliberation, modification, and amendments. If seven of the twelve committee members vote in favor of the budget cutting legislation by the November 23 deadline (see chart in appendix III), the bill will be submitted to the entire Congress for an up or down vote. The bill will not be subject to any modification or change. Debate will be very limited. (Joint Select Committee on Deficit Reduction Text-pdf)
Michael Collins: Things are Different (and sometimes much better) in the East
The nation formerly known as the Ottoman Empire is building a strong foundation for a bright future. That nation is also addressing its scandalous recent past as it reaches out to old enemies. The dynamics producing real change in Turkey are well worth understanding. Turkey is on a path to rapid economic growth, cultural liberalization, and will emerge as a key player in world affairs.
The Crazies versus the Sleepwalkers - Big Budget Showdown
The Republican crazies are in a celebrity death match with sleepwalking Democrats. It is a fabricated drama amounting to not much of anything in terms of the nation's well being. The stakes are supposedly the shutdown of the United States government at midnight this Friday. But the most pressing issue isn't discussed on Capitol Hill.
Why can't anyone in a position of power mention the unmentionable? There have been no net new jobs in the United States since 2000. There were 137 million employed citizens that year. There are 139 million employed citizens today. This comes into clear focus when you consider the size of the workforce for 2000 and 2010; 143 million versus 154 million respectively. There are actually fewer jobs in proportion to the workforce.
Isn't this a worthy topic? Shouldn't the story be carried nightly on a major network with a title like: Jobless America, Day 4112
The "Recovery" - - Just Don't Eat, Heat Your Home, or Buy Clothing
We still don’t even know if Fed officials actually believe the ridiculous things they say, or whether they are merely acting stupid to hide the fact that they have created a world in which financial prudence is punished, those who save are forced to subsidize those who speculate, and people around the world are rioting just so someone will notice that they can no longer afford to feed themselves or their family.
What They Didn't Tell You - The Financial Crisis Inquiry Commission
By Numerian posted by Michael Collins
What America really needs is a Commission of Truth, that would outline how Selfishness became triumphant, how it has devastated our country, and what we as a community and as a nation must do about this
What’s it like spending two years doing thankless work that, in the end, is going to be ignored by the very people who asked for your services? The members of the Financial Crisis Inquiry Commission have just found out. Their 662 page report is sinking rapidly into oblivion in official Washington, and is now destined to be of interest only to historians. This was fully predictable. The Commission was given a charter by Congress to tell us who, what, when, and where about the financial crisis, but they were not allowed to explain why. To understand why this crisis occurred would be stepping on way too many powerful toes in Washington, and for this reason the Commission was told not to make any policy recommendations to Congress that would help prevent such a crisis from occurring again.
Decline and Fall (Maybe) January 1, 2011
The Happy New Year Edition (with some good news about 2011)
Michael Collins
The Money Party. Lots of fiddling while Rome and the rest of the world burned. Knowledge is power and among the ruling elite in the United States, the power was off. Somebody forgot to pay the bill or paid with a bad check, no doubt.
A Decade of Job Stagnation In 2000, 135 million citizens were employed. In 2010 there were 139 million Americans employed. Given the 9.7% increase in population since 2000, we would expect to see at least 148 million citizens with jobs. Nobody much wants to talk about this or the true unemployment figures produced by the US Census called "U6". That measure accounts for, "Total unemployed, plus all persons marginally attached to the labor force, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all persons marginally attached to the labor force." Bureau of Labor Statistics
The "U6" unemployment figure is 17%, well above the official 9.8% we hear all the time. The official number accounts for 15 million citizens. But when we use U6, we add 9 million citizens forced by economic conditions to work less than they want in part time jobs and 2.5 million marginally attached to the work force - those who gave up looking and get no benefits. That gives us a real world total of 26.5 million citizens out of work or working part time against their will.
It's all good! Party on like there's no tomorrow
By Numerian posted by Michael Collins
"The US financial system is close to collapse - The deliberate public relations campaign by government, politicians, and business leaders to assure us that “all is well” when it comes to the banking system is unraveling. The dry rot that is destroying banks keeps eating away at the foundations of finance, the latest example being the revelations regarding the foreclosure process. The ugly, life-threatening reality that no one in banking wants to talk about is that the biggest asset class of the industry – home mortgages – may be severely compromised because the mortgages themselves may be uncollateralized. ... The simple fact that the banks have failed for twenty years to keep the borrower’s note connected to the mortgage document, and have both registered with local recorders of deeds, means that banks cannot really prove they are the legal lender with rights to foreclose."
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