Opinion-Columns.com

"Having Been Unable to Strengthen Justice, We Have Justified Strength"

That's a quote concerning justice and strength from the dim past of 350 years ago--another proof that not much changes across the pages of history--by philosopher-mathematician Blaise Pascal, dead since 1662.

Barbara Ehrenreich writes in the Huffington Post; "The Democrats are feeling empowered -- in part -- by the resounding echoes of change that is ringing in their ears."

That would be a hopeful message, if it were true. But what is more likely to be ringing in their ears is a phone call from Squibb or Martin-Marietta. Meanwhile, what rings in the ears of the electorate (the 55% that is left of it) is the apathy and incompetence  of the long-awaited congressional control by Democrats.

Ehrenreich is not easily dismissed. She was a regular columnist for Time, currently contributes regularly to The Progressive and has written for the New York Times, Mother Jones, The Atlantic Monthly, Ms, The New Republic, Z Magazine, In These Times, Salon.com, and other publications. Author of some 20 books. The lady knows the territory and, to her credit, has not become inured to echoes of change ringing in ears.

We've seen the first act of the play yet to come, titled "Democrats Back in Charge." It's had a bunch of bad 2006 reviews. Spencer Tracy had it right about stage presence; "learn your lines and don't bump into the furniture."

Thus far, Democratic control has yet to achieve either goal. At a time when Democrats need desperately not to act like Democrats, Harry Reid tries to morph from wrestling-coach to statesman. It's just not in the man from Nevada. The hand is a bust. Pelosi, all wriggly and giggly from her moment of fame has shown herself to be too partisan a dominatrix of House discipline to serve her country in time of need. 

• We are no closer to getting out of Iraq than before
• The uncontrolled (and disastrously un-admitted) real estate bubble has imploded in a mire of  fraud and conspiracy
• Health care is an issue for tomorrow and tomorrow and tomorrow
• Impeachment of the most criminal administration in the history of the country remains 'off Nancy Pelosi's table.'
• A small and unheralded, largely unseen military dies on a daily basis to prove the unprovable staying of a headstrong president's course
• This new and toothless 'Congress of change' can't even enforce its will to bring testimony from a successfully defiant executive branch

Pelosi and Reid are terrified, not of impeachment (or the fantasy that it will complicate election 2008), but of their personal roll in the Democratic complicity that an impeachment trial would reveal. Every single step of the way, the Bush administration's murky wreckage of American ideals was approved by Democrats.

The ongoing whine that Pelosi & Co just can't get past a need for 60 votes in the Senate is ample evidence. Republicans were in exactly the same position. Had Democrats the will, had Pelosi and Reid the guts, Bush would never have been able to run off with the country.

Newt Gingrich and Tom DeLay at least had the guts not to give a shit. They stood there, guns blazing and dressed the theft of American politics as a Contract With America. Had Bush and Cheney not been so heavy-handed, the Gingrich-DeLay legacy would not yet be at risk.

American government has been on the take for decades, mainlining the intravenous drip of special interest money until the body politic tumesced from bloat. Democrats were (and are) in on the deal, a consideration that sets the stage for massive disappointment once November has come and gone. (Which November of which year has recently become a question, since we seem to have gravitated toward multi-year campaigns)

"Change" is a feel-good, but meaningless word. Defined as "Become different in some particular way, without permanently losing one's or its former characteristics or essence."

Parse that, baby. Become different (Democrat rather than Republican) without permanently losing former characteristics (power, greed) or essence (the best government money can buy). Justice doesn't happen to be a part of change in this context and we are full-circle, back to the brilliant observation of Pascal that in the absence of justice, strength will suffice. Or the promise of strength, the hope of strength, the vision or the image of strength, when strength itself has proven too costly.

This self-servingly constructed framework of government under whose foot we find ourselves has to be ripped apart and reconfigured to serve society. We need to pull the money out of legislating and I don't see a program (or even an admission such a thing exists) on the part of national or regional candidates.

I am uninspired that the very legislators who have pounded together these lobbyist- congressional- military- industrial- pharma- agri- oil complexes (nail by nail, like Jesus on the cross) are the ones upon whom we must rely to tear it all down. Don't ask a theologian to tear down the church.

Barack can't do that, nor can Hillary or John. Only citizens in the streets can do that and they are busy at the moment, lowing like cattle behind the fences government has erected for them. Unless.

Unless it all comes down on their (and our) heads in a massive failure of the American and world economies, a financial disaster of the breadth and scope of 1929. That would, essentially, change all the rules as it did in the aftermath of the Hoover administration, a time not too unlike our own.

There's little purpose in speculating on that scenario. If it happens, it will not be a subject of speculation, but one of reality and the cards will fall as they may--but certainly, they will fall.

I find it personally interesting that, in the wake of the most frightening upheaval Wall Street has faced in recent decades, that Henry Paulson and Ben Bernanke have contrived (some might say conspired) to keep the Dow-Jones happily above 12,000. They have done that by irrationally, unsettlingly and without precedent, opening the money pumps to private investment banks. The money in that pipeline does not exist. They printed it.

Your and my house, car, furniture and lawnmower is worth half today of what it was when George Bush took office.

You will not be aware of that, because it is not likely you have reason to keep up with international currencies. Within the United States, all seems well. The waters are quiet. Outside America, a financial tsunami has taken place and the dollar is on the brink of collapse. No one wants our currency. No one wants our debt. No one wants much of anything America has chosen to export in the past seven years.

It seems that, having failed to strengthen justice, we have pulled off the double-whammy of failing to justify strength as well. Meanwhile, the two candidates upon whom we pin our faintest of hopes in the most perilous of times, have descended to a controversy over which among them is or is not elitist.

The government we demand is, unfailingly, the government we deserve.
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Media comment;

• USA Today-Poll shows no change in Pa., Clinton up by 6
• Kansas City Star-Obama, rivals spar over 'elitist' remarks, but voters see nuance
• CNN-Congress wants to jolt economy - again
• Spiegel Online-Germany-The Madness of Ben Bernanke
• EuroNews.net-France-G7 finance chiefs push for financial market transparency

Smash the Presses Before Ben Bernanke Starts Printing

In about a year it will be the 90th anniversary of the establishment of the Weimar Republic, the nickname for post-WWI Germany and a moniker forever connected with the hyper-inflationary economy of Germany. That circumstance lead directly to the democratic election of Adolph Hitler and WWII.

In 1914, the German mark was worth about 25 cents, or four to the dollar. Nine years later in 1923, Germany had printed itself enough marks to make 50 million of them worth exactly one dollar.

Fed to Make $200 Billion Available To Lenders
Bank Seeks to Loosen Credit
(Neil Irwin and David Cho, Washington Post Staff Writers, March 8, 2008)

The Federal Reserve took strong action yesterday to restore order to frazzled lending markets while a new report showing unexpected job losses underscored the toll that credit markets are taking on the economy.

The world's financial plumbing is so clogged that the central bank sees a need for new steps to clean it out to prevent severe damage. Mounting panic in the credit markets is making it harder for Americans to get mortgages and is increasing the rates they must pay on credit cards and auto loans. Even solid businesses are finding it difficult to raise money to expand.

Ben Bernanke, who is the current chairman of the Fed is hardly a plumber. One can only wish he was.

Under his tutelage, we may as well take the book from the left hand of the Statue of Liberty and replace it with a can of gasoline. A torch in one hand, gasoline in the other, the perfect metaphor for an American economy so distorted and so finance-driven, it hardly deserves the name.

"Send us your investors, your huddled capital funds"

We are no longer a capitalist society and have not been one for some years now. We are an interest-rate dependent consumer society and the sole, wheezing, smoking engine left to support that house of cards is consumer confidence. Essentially, the American dream has become a confidence-game (noun: a swindle in which you cheat at gambling or persuade a person to buy worthless property).

The immediate problem is that a massive sub-prime mortgage fraud has sucked us dry of the basic fuel necessary for staggering on--confidence. There ain’t none left. The tank is dry.

Ben Bernanke is going to fill ‘er up on money. He and George Bush and Henry Paulson have connived between them a ‘stimulus package to bolster the economy.’ If you look up ‘bolster,’ one meaning is to support and strengthen and another is to add padding. I leave it to your judgment which definition most closely defines giving each taxpayer $300 to $1,200 of his own money to goose the economy in the sole interests of the above-named public officials' personal friends.

None but the Washington Post (deprived in these days of cutbacks of any true financial writer other than Steven Pearlstein) could possibly swallow without a fit of coughing, the swindler’s excuse that ‘the world's financial plumbing is so clogged that the central bank sees a need for new steps to clean it out to prevent severe damage.’ Who on earth fed WaPo that line? Certainly it was not vetted by Steve. I don’t doubt he choked on his coffee when he saw it.

The Fed said it will make $200 billion available to financial institutions in an effort to ease a crisis of confidence that is making it harder for families and businesses to borrow money.

"They're recognizing that financial markets aren't functioning well, and that that creates risks to the real economy," said Vincent Reinhart, a resident scholar at the American Enterprise Institute and a former senior Fed official.

Where do they get these people? Can I get a job at the Fed?

Financial markets have been looted, Ben. Wake up. This is not about families and businesses, this is about pumping up the worthless investments hedge-funds created. It’s about papering-over the hole in the missing billions before their major institutional investors sue them for fraud and send the whole crop of $100 million a year criminals off to Sing Sing.

Bernanke’s $200 billion is merely the camel’s nose in the tent. He proposed to create (read that print) $100 billion a month to prop up the banks for at least a year, but essentially for as long as it takes. Another ‘surge’ in an unwinnable war--anything it takes to get George safely back at the ranch before this whole swindle collapses on his head. Every 12 months (unless it’s not enough), Bernanke proposes to add $1.2 trillion to a money supply that totals approximately $7 trillion.

And the sworn duty of the Fed is to prevent inflation. Don’t cry for me, Argentina.

The dollar this administration has contrived to devalue by approximately half during its brief term in office, is now to be further demolished by stimulating, diddling, futzing with and printing their way over the edge of the cliff.  The printing press is to monetary policy as Viagra is to maintaining an erection. The one gives you a sore dick, but the other turns the United States into Argentina.

"A lot of what we've done has been mostly just to offset the tightening of credit that has arisen because of the financial situation," Fed Chairman Ben S. Bernanke said in congressional testimony last week.

Instead of simply cutting interest rates further, the Fed responded to this latest crisis yesterday with carefully targeted measures. The central bank said it will auction $100 billion to financial institutions, injecting money into the banking system by trading cash for troubled securities. The Fed will also make another $100 billion in cash available in exchange for securities issued by Fannie Mae and Freddie Mac, trying to restore confidence to the market for home mortgages.

The problems are the latest wave of a crisis in debt markets that began in August and reappeared again in November and late February. This crisis is one major factor in a pullback by consumers and businesses that has driven the economy to the brink of recession, or possibly over it.

• Lie #1: Offsetting the tightening of credit is (for Ben) easier than tightening the handcuffs on the criminals who profited from this fraud on the taxpayer.
• Lie #2: Measures were not carefully targeted, but recipients were. Wall Street will get its plumbing unclogged and you, dear taxpayer, will get the bill for it. (Before all this manipulation was factored in, your personal share of ‘unfunded debt,’ including tax breaks to the rich and an untaxed war, is—as of 8pm today-- $30,967.40. Family of four? Pony up $123,868.96.)
• Lie #3: No one is injecting anything. They are not ‘trading for troubled securities,’ they are buying bad debts with your tax money. They are bailing out criminals, so that no one will call them at their game, which has been to fleece the American public and blame it on ‘market conditions.’
• Lie #4: Bailing out Freddy Mac and Fannie Mae does nothing to restore confidence to the market for home mortgages, it merely supports fragile government backed institutions, who have been part of the game—again, with your dough. The same money you don’t have to pay child-care and health-insurance.
• Lie #5: There was no August crisis in debt markets. In August, we had the first indications of a purposeful financial fraud, committed against investors by a consortium of co-conspirator mortgage salesmen, mortgage bankers, bond rating companies, investment banks and hedge-funds. This will probably turn out to be the largest and most damaging Wall Street fraud ever to bring down an economy—far larger than the 1929 crash.
• Lie #6: A misnamed and lied-about ‘crisis,’ cannot possibly be a factor in anything other than the continuing cover-up of massive financial fraud.

Six lies is a lot of lies to pack into three paragraphs and 161 words. Amazingly, the WaPo failed to call a single one of them. No major newspaper in the United States has been carrying this as the widespread crime that it is. Steven Pearlstein has come the closest, which is why he no doubt spit coffee all over his office when he read the piece.

There is a cure for all this sickness and greed and fraud, but it will not be found in the halls of Congress, the meeting rooms of the Fed or within a new administration, no matter how much ‘change’ is promised.

Attempting to repair a half-century of financial malfeasance is as dreary a chore as trying to ‘fix’ communism. Just as Ronald Reagan never ‘won’ the Cold War (the wheels finally came off, while he happened to occupy the office), Bernanke, Paulson and Bush haven’t a clue about what to do. Other, that is, than run around with a torch in one hand, gasoline in the other, trying to calm crooked markets.

"The Fed has been running around putting fingers in dikes," said Diane Swonk, chief economist of Mesirow Financial. "Without that, the dike would have imploded, and water would have been spilling in."

Diane is closer to the truth than any of them. The dike will indeed implode and therein lies the only viable cure. An international crash.

The world danced around the Argentine problem, the Mexican difficulty and the Asian unpleasantness, but the financial capitals of the planet are not strong enough or flexible enough to waltz their way past an American crash.

From the ashes, we may be sufficiently humbled and perhaps even wise enough to do the things we haven’t courage enough to accomplish now;

• Oversee the absolutely uncontrolled hedge-fund industry that triggered this mess
• Disconnect business and industry from the IPO as a borrowing mechanism and send them back to traditional loans at traditional banks
• Do away entirely, completely and irrevocably with leverage
• Disabuse the investor of the charming fairy tale that uncontrolled growth is anything other than the definition of malignancy
• Return corporate stock certificates to their intended purpose of investment, rather than speculative instruments
• Make criminal the offer of stock options as incentives to management
• Consider laws initiating minimum-term (3-6 month) investment requirements to reduce the volatility of markets
• Tax capital gains as ordinary income
• Do away with the income tax
• Re-institute logical trade tariff policy

Those would be a few things that could be successfully accomplished following a crash. Add to those massive government investments in infrastructure, schools, public transport, alternative power sources, the de-corporatizing of agriculture and re-planning of our auto-centric and dehumanizing suburban sprawl.

Taking back control of the investment community would prevent the flight of scarce capital from the have-nots to the haves. Infrastructure investment, reorganizing agriculture, instituting tariffs and killing off the income tax are positive ways of creating good jobs at good wages. There is simply no political will to accomplish any of these goals, otherwise they would hardly have gained the half-century momentum that set us up for the current financial landslide, avalanche, tsunami or metaphor of your choice.

Meanwhile, someone please take the keys to the currency-printing presses away from Ben Bernanke.
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Media comment;

• Bloomberg-Most Read on Bloomberg: Carlyle; Bernanke on Mortgages; Ambac
• New York Times-When Ben Bernanke Speaks
• Financial Times-UK-Mortgage principal forgiveness will meet resistance from servicers
• Bloomberg-Paulson Says Deal `Very Close' With Congress on Housing Bill
• Wall Street Journal-Trichet Urges Dollar Unity

Elite? You Got a Problem with Elite?

Immigration—everybody’s hot-button issue--and America is once again arguing across the metaphoric back-fence and having the very devil of a time trying to balance fairness and equity.

The End of War

Not the end of conflict, certainly not the end of fighting . . . but it is worth considering that as we blindly multiply our efforts toward a supremacy-gap between ourselves and the rest of the world in military hardware, the enemy is dissolving before our eyes. What can we possibly be thinking? More to the point, what can the rest of the world possibly think we are thinking?

DEFINE 'GRAPPLE.' DEFINE 'STIMULUS.' WHAT THE HELL, DEFINE 'WHITE HOUSE!'

What a hoot.

Congressional lawbreakers and the pResident in the Ovalist of offices are all standing around the flattened body of the U.S. economy, run down like an errant rabbit by the 16-wheeler fraud that came roaring out of both parties.

"Free Speech" Winnows the List of Candidates

Winnow (noun) The act of separating grain from chaff.

If we are indeed winnowing, then America has been winnowed into three guys left standing on the Republican side and two Democrats. Something like 5 out of 24, depending on who you count. Whether they are wheat or chaff depends upon your point of view.

Why a Democrat President Hasn’t a Chance to Save the Nation

Joe Stiglitz is no dummy. He’s a member of the Columbia University faculty (although we can probably forgive him that) and 2001 Nobel Prize winner in economics.

Is There Anything American About America Anymore?

Sometimes I wonder where they took my country when I wasn’t looking. It's been dragged off, sealed in a box and hidden in the basement under a pile of recyclables.

New York Times Editorial on Kids’ Health and Tobacco—Wrong Again

Few things are as disingenuous as trying to sound warm and fuzzy while supporting the status-quo, which is cold and prickly. But the NYTimes has accomplished it yet again. Writing editorially yesterday, BIG TOBACCO DEFEATS SICK KIDS

Put On the Cuffs, I’m Guilty as Charged

If you thought, as I did, that some pretty scary legislation was created in the past seven years of this administration, you might want to pay attention.