Archive for the ‘free market’ Category

Brain Factories

2 July 2013

Back in the 18th Century, Adam Smith pointed out that companies with stockholders were not nearly as beholden to their customers as to their stockholders, and that truism now shows up in America everywhere we look.

For example, we now have major appliances that last, on average, not the twenty to thirty years as did the major appliances of our grandparents, but around six years. Current dishwasher companystockholders are delighted because people now have to replace expired machines with regularity. In fact, since our lightly used dishwasher died five days ago, I’m now reading reviews that indicate the current generation of dishwashers most likely won’t last as long as the dead one, but, hey, I’m going to have to pay twice as much to replace it.

I am not happy. And then I click up Raw Story and see this:


“For-profit Schools Blamed for Denigration of Sweden’s School System”

Sweden’s example is just another indication that under corporate capitalism, one does NOT always get what one pays for. My deceased twenty-first century dishwasher is more proof. While I’m grudgingly willing to replace a dishwasher, I want young Americans to have a basic education that lasts a lifetime.

Cassandra

Update: Oregon may well have found a way around part of our current higher education mess: “Pay It Forward: Innovative Oregon Proposal Could Solve Problem of Student Loan Debt.”

GOP Talking Point Decoder

7 April 2013

I wish I disagreed with the “funny” definitions on the poster that comes up if you click the link below. Unfortunately, they strike me as being spot on.

GOP Talking Point Decoder.

On a related note, I was thinking how nice it is that I no longer have to travel to Africa or anywhere else to explore places that look a lot like autocratic Third World countries. Nice of these places to come to me.

Elitistly yours,

Cassandra

Amazon: The Eight Hundred Pound Gorilla?

8 December 2012

Still another Upworthy article caught my attention, this one on Amazon.com:
“The Truth Behind Amazon’s Success? It’s Kinda Evil.”

This article confirmed what I suspected. Amazon uses people and small businesses–and some large ones too–badly. Tactics reminiscent of Wal-Mart are troblesome to say the least, and this troubles me morte since I’ve become an Amazon junkie. Shopping online appeals to my introverted, research-oriented nature. Plus, I’ve gotten some great deals. Now the inevitable guilt is sinking in because I know have to factor in the tactics they use in order to provide such deals.

Perhaps I can take some comfort that, with books at least, I use Amazon as a springboard to buy used books through bookfinder.com.

Responsible shopping’s a bitch for someone who wants to patronize the little guy and still get a great deal.

Cassandra

The Wealth of National Morality?

26 October 2011

Once again, Matt Taibbi of Rolling Stone nailed a major point about Americans and the current chatter about the Occupy Wall Street movement. Here’s Taibbi’s point:

Success is the national religion, and almost everyone is a believer. Americans love winners. But that’s just the problem. These guys on Wall Street are not winning – they’re cheating. And as much as we love the self-made success story, we hate the cheater that much more.

Whole article here: “Wall Street Isn’t Winning – It’s Cheating

See also my other post from today:

Oh, yes, just one more bit of trivia, completely unsubstantiated since I’m too lazy right now to go back and look it up. According to some recent poll, what percentage of Americans answered that they thought they would one day be in the top one percent? The answer was, I believe, forty percent.

American innumeracy and lack of historical insight are right up there with American optimism. I hope the American sense of fair play still exists, but sometimes I wonder.

Cassandra

That Top One Percent

26 October 2011

Anyone who’s been living under a rock and is hence unaware of the income shift in the USA might want to read this short article from NPR: “Why Has Income Gone up So Much for the Top 1 Percent?

Here are my favorite paragraphs:

Why have salary, bonus, etc. gone up so much for this group? Lots of economists have been asking this question, and CBO runs through some of the possibilities, without really settling on an answer [emphasis added]. Three of the possibilities suggested by the report:

1. Companies have grown larger and more complex. So a single executive can have a bigger impact on profits. Therefore, it’s rational for companies to pay executives a lot more.

2. A shift toward paying execs with stock options means that the value of their pay packages can shoot way up when the stock market rises.

3. “Weaknesses in corporate governance have enabled corporate executives to overpay themselves.” In other words, it’s not rational for companies to pay executives so much.

“Without really settling on an answer”?! Had I not recently read William Domhoff’s Who Rules America and John Bogle’s Battle for the Soul of Capitalism, it might have taken me a nanosecond to figure out the best answer.

Unfortunately, having read those two books and several others, I felt almost grateful that the Congressional Budget Office at least threw out the that third possibility.

I will refrain from sarcastic mutterings and simply move on to read the whole report from the Congressional Budget Office. It’s here: Trends in the Distribution of Household Income between 1979 and 2007

Once again I’ll most likely dream of sharpened pitchforks.

Cassandra

Our Chris Who Is in NYC

18 April 2011

Sometimes Chris Hedges sounds like a preacher man.

Oh, yeah, that’s right, he has a Master’s from Harvard Divinity School.

I especially like the Raskolnikov reference: “The Raskolnikovs of the world place unbridled and total faith in the human intellect. They disdain the attributes of compassion, empathy, beauty, justice and truth.” In many, I suspect the Crime and Punishment reference will evoke thoughts of a Russian-born American who’s currently enjoying favor in a good many high places. Subtle though. No names dropped.

Amen, Brother Chris. Amen.

Cassandra

The Magic Handbasket: Free Crap

17 April 2011

Finally, others besides the usual doomers are starting to notice the world food problem: “20 Reasons to Be Prepared for a Global Food Crisis.”

This article by Michael T. Snyder is on today’s Seeking Alpha, one of my favorite financial sites. Snyder lists a number of issues I’ve posted about over the last year or so–water, topsoil, ethanol among them.

I read it nodding but wondered why the author didn’t address the underlying population problem. However, a good many of those who commented pointed out this link.

But then there was this comment:

You did not mention ,” my dog ate my homework” as another reason. The free market will take care of shortages as high prices cuts consumption and creates incentives to bring on new production. Unlimited demand will be curtailed by price, and limited supply will also be stimulated by price. Let the market price signal do it’s [sic–and sick as well] work. Sure there are physical constraints, and oil does raise the cost of production, though substitutes will replace them.

Cornucopians no longer amuse me. “Unlimited demand will be curtailed by price, and limited supply will also be stimulated by price”? Is “price” a new euphemism for “death”?

As I read this, I wondered if this person was just being especially sarcastic or if he actually believed in both the Free, Righteous, and Easy Economy (FREE) and the Complete Replacement Analogue for Petroleum (CRAP). So far, I see no substantial evidence that either of these exist or are likely to exist, and I have grave difficulty with anyone over the age of five who utters statements of blind, unsupported faith.

Childish utterances from adults stopped amusing me a few years ago when an extremely bright neighbor told me that we would quickly solve the crises caused by the depleteion of fossil fuels. I laughed and asked “How?” Without answering my question, but with a straight face, he just said, “Because we have to.”

Because we have to? I guess I missed the appearance of the Magic Fairy (MF) who told these folks that merely having wants and needs guarantees their gratification.

Cassandra

News Flash: Bank Robbery

5 April 2011

The bank robbery was perpetrated by Wachovia Bank years ago. They dealt out and are now off the hook for this one.

Read all about it way after the fact: “How a Big US bank Laundered Billions from Mexico’s Murderous Drug Gangs”

Here’s a key paragraph:

Criminal proceedings were brought against Wachovia, though not against any individual, but the case never came to court. In March 2010, Wachovia settled the biggest action brought under the US bank secrecy act, through the US district court in Miami. Now that the year’s “deferred prosecution” has expired, the bank is in effect in the clear. It paid federal authorities $110m in forfeiture, for allowing transactions later proved to be connected to drug smuggling, and incurred a $50m fine for failing to monitor cash used to ship 22 tons of cocaine.

Wouldn’t one think US newspapers would hang the now deceased Wachovia out to dry on this one? You know, headlines, investigative interviews, that sort of thing?

I read voraciously, yet I found out about this from a UK. Unfortunately, this no longer surprises me.

Cassandra

Not Your Typical Financial Guru

23 April 2010

One of my favorite financial commentators is Jeremy Grantham of GMO.

GMO mutual funds are relatively little known because they are aimed at institutions and the ueber-rich, as in requiring millions–plural–to get in.  I discovered Grantham a few years ago when I stumbled across his rant about ethanol being a total scam.  I don’t feel like searching for that gem right now, but here’s a good 2007 overview article from The Street:

“Cheney’s Fund Manager Attacks … Cheney”

Aside from showing up in interviews and authoring general articles, Grantham also gives free access to his company newsletters. Users do have to sign up and log in, but, hey, here’s a sample of his advice from his January 2007 quarterly newsletter, this one titled “Goldilocks Rules: Or Safe As a House in 2007”:

See why I like Grantham?

And what’s not to like about a financial heavy-hitter who donates not only to the London School of Economics but who founds the Grantham Institute for Climate Change at London’s Imperial College as well?

Lastly, Grantham has a lingering, spiffy accent as well. The Financial Times has an April 2010 interview with him “On Bubbles.”

Cassandra

Stop the Presses!

26 March 2010

When I awoke, I was greeted by this headline: “Tempers Flare As Reports of Anti-Democratic Violence Mount.” I thought that was troubling enough, then I started checking out some of my favorite blogs and found a portion of Paul Craig Roberts’ “Truth Has Fallen and Taken Liberty with It” on Richard Brenneman’s blog Eats Shoots ‘n Leaves.

With a hat tip to Brenneman, I’m going to post the full story here. The link on his site went to World News Daily Information Clearing House: News You Won’t Find on CNN or FoxNews, but the story is viral on the Web. I stopped after clicking after 30 pages on Google.

Here’s the entire article by Paul Craig Roberts, former Assistant Secretary of the Treasury under Ronald Reagan and former associate editor of the Wall Street Journal:

“During times of universal deceit, telling the truth becomes a revolutionary act.” George Orwell

March 24, 2010 “Information Clearing House” — There was a time when the pen was mightier than the sword. That was a time when people believed in truth and regarded truth as an independent power and not as an auxiliary for government, class, race, ideological, personal, or financial interest.

Today Americans are ruled by propaganda. Americans have little regard for truth, little access to it, and little ability to recognize it.

Truth is an unwelcome entity. It is disturbing. It is off limits. Those who speak it run the risk of being branded “anti-American,” “anti-semite” or “conspiracy theorist.”

Truth is an inconvenience for government and for the interest groups whose campaign contributions control government.

Truth is an inconvenience for prosecutors who want convictions, not the discovery of innocence or guilt.

Truth is inconvenient for ideologues.

Today many whose goal once was the discovery of truth are now paid handsomely to hide it. “Free market economists” are paid to sell offshoring to the American people. High-productivity, high value-added American jobs are denigrated as dirty, old industrial jobs. Relicts from long ago, we are best shed of them. Their place has been taken by “the New Economy,” a mythical economy that allegedly consists of high-tech white collar jobs in which Americans innovate and finance activities that occur offshore. All Americans need in order to participate in this “new economy” are finance degrees from Ivy League universities, and then they will work on Wall Street at million dollar jobs.

Economists who were once respectable took money to contribute to this myth of “the New Economy.”

And not only economists sell their souls for filthy lucre. Recently we have had reports of medical doctors who, for money, have published in peer-reviewed journals concocted “studies” that hype this or that new medicine produced by pharmaceutical companies that paid for the “studies.”

The Council of Europe is investigating big pharma’s role in hyping a false swine flu pandemic in order to gain billions of dollars in sales of the vaccine.

The media helped the US military hype its recent Marja offensive in Afghanistan, describing Marja as a city of 80,000 under Taliban control. It turns out that Marja is not urban but a collection of village farms.

And there is the global warming scandal, in which climate scientists, financed by Wall Street and corporations anxious to get their mitts on “cap and trade” and by a U.N. agency anxious to redistribute income from rich to poor countries, concocted a doomsday scenario in order to create profit in pollution.

Wherever one looks, truth has fallen to money.

Wherever money is insufficient to bury the truth, ignorance, propaganda, and short memories finish the job.

I remember when, following CIA director William Colby’s testimony before the Church Committee in the mid-1970s, presidents Gerald Ford and Ronald Reagan issued executive orders preventing the CIA and U.S. black-op groups from assassinating foreign leaders. In 2010 the US Congress was told by Dennis Blair, head of national intelligence, that the US now assassinates its own citizens in addition to foreign leaders.

When Blair told the House Intelligence Committee that US citizens no longer needed to be arrested, charged, tried, and convicted of a capital crime, just murdered on suspicion alone of being a “threat,” he wasn’t impeached. No investigation pursued. Nothing happened. There was no Church Committee. In the mid-1970s the CIA got into trouble for plots to kill Castro. Today it is American citizens who are on the hit list. Whatever objections there might be don’t carry any weight. No one in government is in any trouble over the assassination of U.S. citizens by the U.S. government.

As an economist, I am astonished that the American economics profession has no awareness whatsoever that the U.S. economy has been destroyed by the offshoring of U.S. GDP to overseas countries. U.S. corporations, in pursuit of absolute advantage or lowest labor costs and maximum CEO “performance bonuses,” have moved the production of goods and services marketed to Americans to China, India, and elsewhere abroad. When I read economists describe offshoring as free trade based on comparative advantage, I realize that there is no intelligence or integrity in the American economics profession.

Intelligence and integrity have been purchased by money. The transnational or global U.S. corporations pay multi-million dollar compensation packages to top managers, who achieve these “performance awards” by replacing U.S. labor with foreign labor. While Washington worries about “the Muslim threat,” Wall Street, U.S. corporations and “free market” shills destroy the U.S. economy and the prospects of tens of millions of Americans.

Americans, or most of them, have proved to be putty in the hands of the police state.
Americans have bought into the government’s claim that security requires the suspension of civil liberties and accountable government. Astonishingly, Americans, or most of them, believe that civil liberties, such as habeas corpus and due process, protect “terrorists,” and not themselves. Many also believe that the Constitution is a tired old document that prevents government from exercising the kind of police state powers necessary to keep Americans safe and free.

Most Americans are unlikely to hear from anyone who would tell them any different.

I was associate editor and columnist for the Wall Street Journal. I was Business Week’s first outside columnist, a position I held for 15 years. I was columnist for a decade for Scripps Howard News Service, carried in 300 newspapers. I was a columnist for the Washington Times and for newspapers in France and Italy and for a magazine in Germany. I was a contributor to the New York Times and a regular feature in the Los Angeles Times. Today I cannot publish in, or appear on, the American “mainstream media.”

For the last six years I have been banned from the “mainstream media.” My last column in the New York Times appeared in January, 2004, coauthored with Democratic U.S. Senator Charles Schumer representing New York. We addressed the offshoring of U.S. jobs. Our op-ed article produced a conference at the Brookings Institution in Washington, D.C. and live coverage by C-Span. A debate was launched. No such thing could happen today.

For years I was a mainstay at the Washington Times, producing credibility for the Moony newspaper as a Business Week columnist, former Wall Street Journal editor, and former Assistant Secretary of the U.S. Treasury. But when I began criticizing Bush’s wars of aggression, the order came down to Mary Lou Forbes to cancel my column.

The American media does not serve the truth. It serves the government and the interest groups that empower the government.

America’s fate was sealed when the public and the anti-war movement bought the government’s 9/11 conspiracy theory. The government’s account of 9/11 is contradicted by much evidence. Nevertheless, this defining event of our time, which has launched the US on interminable wars of aggression and a domestic police state, is a taboo topic for investigation in the media. It is pointless to complain of war and a police state when one accepts the premise upon which they are based.

These trillion dollar wars have created financing problems for Washington’s deficits and threaten the U.S. dollar’s role as world reserve currency. The wars and the pressure that the budget deficits put on the dollar’s value have put Social Security and Medicare on the chopping block. Former Goldman Sachs chairman and U.S. Treasury Secretary Hank Paulson is after these protections for the elderly. Fed chairman Bernanke is also after them. The Republicans are after them as well. These protections are called “entitlements” as if they are some sort of welfare that people have not paid for in payroll taxes all their working lives.

With over 21 percent unemployment as measured by the methodology of 1980, with American jobs, GDP, and technology having been given to China and India, with war being Washington’s greatest commitment, with the dollar over-burdened with debt, with civil liberty sacrificed to the “war on terror,” the liberty and prosperity of the American people have been thrown into the trash bin of history.

The militarism of the U.S. and Israeli states, and Wall Street and corporate greed, will now run their course. As the pen is censored and its might extinguished, I am signing off.

Paul Craig Roberts was Assistant Secretary of the Treasury during President Reagan’s first term. He was Associate Editor of the Wall Street Journal. He has held numerous academic appointments, including the William E. Simon Chair, Center for Strategic and International Studies, Georgetown University, and Senior Research Fellow, Hoover Institution, Stanford University. He was awarded the Legion of Honor by French President Francois Mitterrand.

This commentary precedes the article on PrisonPlanet.com:

Editor: When Paul Craig Roberts gave us permission to post this article, he indicated to Alex Jones that it would probably be his last. Regular readers of PCR’s outstanding columns will be disappointed to hear that he is bowing out for the time being. Alex will discuss the reasons behind this on tomorrow’s show. Roberts has also told us that he will probably appear as a guest on The Alex Jones Show later next week to expand on why he has decided to “sign off,” as he puts it in the [above] article.

For more information on Roberts, Wikipedia gives a good overview:

http://en.wikipedia.org/wiki/Paul_Craig_Roberts

It looks like Roberts has decided the presses have already stopped. Should I worry about how long it’s going to be before the US starts blocking Internet access the way China does?

Cassandra