What are we to make of the recent outburst of aggression between the two Koreas? And while we’re on the subject of puzzling moments in international diplomacy, what exactly is America’s goal in Afghanistan? Related Entries November 24, 2010 More News, Less Turkey November 19, 2010 ‘Left, Right & Center’: Bad-Touched by TSA
Continue reading …After a day of overindulgence in food and drink, many Americans observe the nutty consumerist tradition known as Black Friday around the country. Here’s a montage of some of the most frightening mass stampedes in recent history. Related Entries November 11, 2010 The High Cost of Low Prices August 17, 2010 Eat Pray Buy
Continue reading …Click here to view this media I’m always glad to see our court jesters like Letterman and Stewart and Colbert do their best to make sure something that the public should be paying attention to doesn’t fly under the radar. David Letterman did just that with this Top Ten segment and so you didn’t have to be a reader of The Nation or watch Rachel Maddow’s show to know the U.S. screwed the pooch on this one. How we ended up negotiating with some fake Taliban leader is beyond me but as Scahill pointed out, it doesn’t bode well for any of our supposed intelligence on the ground in Afghanistan.
Continue reading …Following a consumer uproar, Apple Inc. quietly took down a controversial—and conservative—app on Friday called the Manhattan Declaration, which includes a feature that informs users that they’re wrong if they support same-sex relationships.
Continue reading …It’s very depressing to see what passes for sane economic policy in Ireland. In negotiating with the same financial terrorists who got them into this mess, Ireland is only asking for more of the same. I’m still baffled, and not just about Ireland: Just how did these financial “experts” manage to make the rest of us responsible for the reckless judgment (and likely fraud like that of the Anglo-Irish Bank ) of those involved with these high-flying banks? Paul Krugman points out just how crazy it all is: Before the bank bust, Ireland had little public debt. But with taxpayers suddenly on the hook for gigantic bank losses, even as revenues plunged, the nation’s creditworthiness was put in doubt. So Ireland tried to reassure the markets with a harsh program of spending cuts. Step back for a minute and think about that. These debts were incurred, not to pay for public programs, but by private wheeler-dealers seeking nothing but their own profit. Yet ordinary Irish citizens are now bearing the burden of those debts. Or to be more accurate, they’re bearing a burden much larger than the debt — because those spending cuts have caused a severe recession so that in addition to taking on the banks’ debts, the Irish are suffering from plunging incomes and high unemployment. But there is no alternative, say the serious people: all of this is necessary to restore confidence. In early 2009, a joke was making the rounds: “What’s the difference between Iceland and Ireland? Answer: One letter and about six months.” This was supposed to be gallows humor. No matter how bad the Irish situation, it couldn’t be compared with the utter disaster that was Iceland. But at this point Iceland seems, if anything, to be doing better than its near-namesake. Its economic slump was no deeper than Ireland’s, its job losses were less severe and it seems better positioned for recovery. In fact, investors now appear to consider Iceland’s debt safer than Ireland’s. How is that possible? Part of the answer is that Iceland let foreign lenders to its runaway banks pay the price of their poor judgment, rather than putting its own taxpayers on the line to guarantee bad private debts. As the International Monetary Fund notes — approvingly! — “private sector bankruptcies have led to a marked decline in external debt.” Meanwhile, Iceland helped avoid a financial panic in part by imposing temporary capital controls — that is, by limiting the ability of residents to pull funds out of the country. And Iceland has also benefited from the fact that, unlike Ireland, it still has its own currency; devaluation of the krona, which has made Iceland’s exports more competitive, has been an important factor in limiting the depth of Iceland’s slump. None of these heterodox options are available to Ireland, say the wise heads. Ireland, they say, must continue to inflict pain on its citizens — because to do anything else would fatally undermine confidence. But Ireland is now in its third year of austerity, and confidence just keeps draining away. And you have to wonder what it will take for serious people to realize that punishing the populace for the bankers’ sins is worse than a crime; it’s a mistake . Krugman is being polite here. If you’ll remember, back in March, Iceland’s voters caused an international uproar by telling the bankers to kiss their arses over a proposed bailout deal. And unlike other countries, Iceland actually arrested their bankers for fraudulent loans. Connect the dots. Maybe holding bankers accountable is good for the economy!
Continue reading …Click here to view this media Sarah Palin’s still pushing hard on her “drill baby drill” mantra hard, especially in terms of the Alaska National Wildlife Refuge, which she can barely wait to open up for drilling and a new pipeline. She went on Greta Van Susteren’s show on Thanksgiving Day to criticize “the extreme politicians over on the left who want to buy into those extreme environmentalists who claim that there’s no way you can responsibly develop a plot of land that was set aside for oil and gas development” — particularly President Obama: SARAH PALIN: Well, Obama needs to get up here. If he has as much time as he has on his hands to take all these vacations, maybe he should vacation in ANWR. At least fly over it, Mr. President, or play — you know, play golf or do what he does. This is a national security need. This is — there’s that inherent link between security and our own domestic development. I think it’s inexcusable that our president won’t come up here and look at it. Does anyone know what Palin’s talking about here? Earlier this summer, Republicans tried attacking Obama for taking a vacation, until the WaPo pointed out that Obama at that point had taken far fewer days of vacation than his predecessor, the inimitable proprietor of the Lazy W Ranch in Crawford: Obama has embarked on nine “vacations” since taking office, bringing his total days off to 48. Some of those trips lasted a day and some, like his Christmas holiday in Hawaii, more than a week. By comparison, Bush had visited his ranch in Crawford, Tex., 14 times at this point in his administration and spent 115 days there. Indeed, FactCheck found that Obama also took less vacation time than the revered Saint Ronnie, too — though more than those lazy liberal Democrats, Bill Clinton and Jimmy Carter. Maybe Palin has in mind Obama’s trip to Asia, since her pal Michele Bachmann had gone on national TV and lied about its magnitude and cost — even though its utter falsity was quickly established. Indeed, the wingnuts of the wingnutosphere have insisted on referring to it as Obama’s “vacation” in India. They were helped along in this by Glenn Beck, who described the trip as “$2 billion for ten days so [Obama] can go see the festival of lights.” BECK: All on the heels of his wife’s lavish trip to Spain, now our president is planning another lavish trip. And our dollar is losing value and the Chinese are warning us. The media again is missing it. The bickering today back and forth about how many hundreds or maybe — maybe billions of dollars this is going to cost to insure the president’s security but no one is asking, “Wait a minute, it could cost up to $2 billion to make sure he’s safe? Then why is he — has he seen the Grand Canyon?” From the November 4 edition of Glenn Beck: BECK: A report came out that has made the rounds on the Internet about the high cost of this trip. Some people say that it is up to $2 billion for 10 days. Is that true? I don’t know. The media is bickering back and forth about what the real cost is and how many ships will be there. Thirty-four warships, possibly. I don’t know. Two hundred million dollars a day while in India. I don’t know. president has blocked off eight hundred hotel rooms. Do we even know if he’s traveling with 3,000 people? Do we know if that’s true? No one knows any of the details of this trip, the real cost of the trip. One thing we can say for certain is it’s going to be quite expensive. In reality, of course, this is not a vacation at all, but a major diplomatic tour of ally nations, particularly India. And there’s a great deal at stake, both in terms of security issue and major business deals. Is that what Palin means by “all this vacation time”? If so, it once again demonstrates her utter lack of fitness for the job. So, for that matter, does her ceaseless attempts to push ANWR drilling, because it clearly displays her eagerness to not only ignore real science but also to essentially open up her entire state to resource extraction without regard to consequences. To Van Susteren’s credit, she did invite Rep. Jay Inslee on to discuss the other side of the issue: Click here to view this media INSLEE: Well, I guess I’d offer three reasons that I think it’s unwise for us to move in this direction right now. Number one, the fact is — and this is just a geologic and economic fact — is that drilling in this area really is not going to make an appreciable difference for our economy. And the reason is, is that this represents less than half of 1 percent of the world’s oil reserves. And according to the energy studies that have been done, even if they prove out, which remains a question, might have — might have an impact of maybe 3 cents a gallon of our cost of gasoline in the year 2028. So it’s quite a minimal amount when you look at the word oil supply. In fact, the problem is, you know, we’ve only got 3 percent of the world’s oil supply, but we use 25 percent of the world’s oil. So it’s really not a solution to our problem. That’s number one. Number two — and I think this is an important fact — and I appreciate your looking at this issue — but the fact of the matter is, if we’re going to grow our economy, if we are going to seize the jobs of the next century, we have to get busy focusing our national debate and our national investment on the new clean energy technologies, or China is going to eat our lunch. China right now is preparing to roll out electric cars, lithium ion batteries, solar cells, cellulosic ethanol. This is where the future of energy is. We’ve a finite resource in oil, just like we had a finite resource in whale oil, and we made a transition. And we have to really focus our national energies in a bipartisan way, I would hope, on finding our way to compete with China to really build new energy sources of the future. And third — and this is an important one, and maybe it’s obvious but I think it’s worth saying. We’ve made some national commitments to our grandkids. We’ve done it in Yellowstone National Park. We’ve done it in Glacier. We’ve done it in Mt. Rainier National Park. And we’ve done it in the Arctic refuge. You know, a Republican, Teddy Roosevelt, started this whole shebang at the Pelican (ph) Refuge, and we’ve never violated that commitment. This is a special place. We’ve made a commitment that this is — this is during the Eisenhower administration, by the way. We made a decision that we were going to make a commitment to our grandchildren that we were going to preserve this relatively small space the way the creator designed it. And I just think that’s a commitment that we should keep. It’s the right thing for America both economically and as a part of a commitment to our grandkids. She later brought on Peter Van Tyne of the NRDC to explain that Palin in fact is lying about the impacts of the drilling: VAN TYNE: I think it is wrong on a couple of points. First of all, the coastal plain of the arctic refuge about 1.5 million acres is considered by the scientists to be the biological heart of that refuge. And think about this — in a two week period in the summer the porcupine caribou herd calves on the coastal plain, and they have 35,000 babies in that two-week period. On the coastal plain you have over 160 species of birds. In every state of your viewers there’s a bird that spends some portion of their life cycle on the Arctic Refuge coastal plain. And it’s also considered by scientists to be the most important land habitat in the United States for polar bears. And scientists say in the entire arctic, circumpolar arctic this place has the most diverse plant and animal species. You mentioned that there’s an idea of drilling being only a small area. That is simply not borne out. You yourself were over in the Prudhoe Bay area and you looked at the development there. This is 1,000 square miles of development, the size of Rhode Island. You can see it from space. There’s no way — the National Academy of Sciences has looked at these issues carefully. They say that when you drill in a particular place you’ve made the essential trade off, their words, not mine, where you are necessarily industrializing an area by drilling it for oil and actually undercutting if not completely eliminating the other values of the area. Maybe Palin needs to take a vacation down in the Gulf of Mexico to see some of the consequences of trusting the oil companies too much, eh?
Continue reading …When I first saw this video at a non-Government/General Motors site, I said, “Wow, that's quite a spoof. Who did that?” It's not a spoof. It's for real. It's posted in the media section at GM's web site. Even diehard defenders of the GM and Chrysler bailouts have to wonder what in the world the folks who put together the 60-second ad were thinking. Here's the hype for the ad found at GM's site
Continue reading …Click here to view this media I hope everyone had a wonderful Thanksgiving and that you didn’t have to spend any time arguing with your right-wing relatives about this nonsense. Right Wing Continues to Push “Socialist Pilgrims” Myth : Despite a comprehensive repudiation by historians of the belief that the original Pilgrims were socialists who only began to succeed and prosper once they turned to capitalism, on this Thanksgiving conservative leaders and writers continue to spread the urban legend that the settlers were almost doomed by their socialist-ways. Some background: according to real historians , the Pilgrims held their land in common “in the interest of realizing a profit sooner, and was only intended for the short term; historians say the Pilgrims were more like shareholders in an early corporation than subjects of socialism.” But the settlers, who came from different part of England, “spoke different dialects and had different methods of farming, and looked upon each other with great wariness.” Because of such difficulties, the colony scrapped the land arrangements in 1623, yet the colony held the first Thanksgiving in 1621 and the original “arrangement did not produce famine.” But that hasn’t stopped the Right from propagating the myth that the failures of “socialism” forced them to embrace capitalism. In order to make the myth seem true, Fox News commentator John Stossel simply moves the date of the first Thanksgiving from 1621 to 1623. And Rep. Todd Akin continued to embarrass the state of Missouri with some similar nonsense as well. Rep. Todd Akin: The Pilgrims Came To America To Flee ‘Unbiblical’ Socialism In The 1620′s : Today, millions of Americans celebrate Thanksgiving with their families. To mark this holiday, Rep. Todd Akin (R-MO) took to the floor of the House of Representatives on Tuesday to explain its history. At one point, he opined, “It might be helpful to think back and say there’s more to Thanksgiving than the Pilgrims.” He explained that they were “a group of people who were willing to change the system, to think of different ideas.” Akin continued, “They came here with the idea that after trying socialism that it wasn’t going to work. They realized that it was unbiblical, that it was a form of theft, so they pitched socialism out. They learned that in the 1620s”: AKIN: It might be helpful to think back and say, there’s more to Thanksgiving than the Pilgrims. They were a group of people who were willing to change the system, to think of different ideas. They came here and separated civil and church governments. They came here and created the model of a written constitution, the idea that the government should be the servant of the people. […] They came here with the idea that after trying socialism that it wasn’t going to work. They realized that it was unbiblical, that it was a form of theft, so they pitched socialism out. They learned that in the early 1620’s. And as TPM noted, the teabaggers and Glenn Beck have been getting in on the act as well. Happy Thanksgiving! Right Jabs Pilgrims For … Communism? (VIDEO) : It’s reasonable to assume that tea partiers, Fox News hosts and conservative bloggers look forward to today for the same reason most Americans do: the turkey (or tofurkey , depending on your preference) and the football (or cable TV marathons , depending on your preference.) But those folks also look forward to Thanksgiving for another reason that it’s equally reasonable to imagine most Americans don’t : the celebration of capitalism’s final victory over communist-leaning Pilgrims. “Sadly, few Americans know the real story of the early colonists,” FreedomWorks’ Julie Borowski wrote yesterday. “For evidence of the failures of communism, we do not need to look to disastrous experiments in foreign lands. In fact, the Plymouth Plantation is one of the most apparent examples of the failures of collectivism.” As the New York Times reported last week, the story is part of Rush Limbaugh’s yearly Thanksgiving broadcast, and it’s part of the course load at Glenn Beck’s online university . And last but not least Steve Benen did a nice write up on Akin’s hackery as well — J ust in Time for Thanksgiving .
Continue reading …Credit: Justin Fox ( Click to enlarge .) Despite a decade of Bush tax cut windfalls for the wealthy pushing income inequality to levels not seen since 1929, Republicans are calling for another $700 billion, 10-year payday for the richest Americans. So it should come as no surprise that as corporate profits reached an all-time record in the third quarter, leading voices in the Republican Party want their tax bill slashed , too. As the New York Times reported Tuesday, happy days are indeed here again for corporate America: “American businesses earned profits at an annual rate of $1.659 trillion in the third quarter, according to a Commerce Department report released Tuesday. That is the highest figure recorded since the government began keeping track over 60 years ago, at least in nominal or noninflation-adjusted terms.” Those numbers should be taken with a grain of salt . Having slashed costs and reaped the benefits of big productivity gains at this early stage of the recovery, U.S. firms are sitting on a mountain of cash. But even expressed as a percentage of American gross domestic product , corporate profits are returning to the 9.5% range enjoyed in 2006: Nevertheless, the leading lights of the Republican Party are calling for a rollback in corporate tax rates . Last week, Texas Congressman and terror baby foe Louie Gohmert decried the “insidious” tax of American business and demanded its abolition. Earlier this year, future GOP White House hopeful Newt Gingrich proposed cutting the corporate tax rate from 35% to 12.5%, the same level as in the multinational haven of Ireland. And as ThinkProgress reported, Gingrich and Gohmert have plenty of company: Gohmert’s defense of corporations are not the words of a single rogue congressman. Rather, sticking up for the big guy is an orthodoxy that pervades the Republican Party and the conservative movement. Newly-elected Gov. Scott Walker (R) of Wisconsin has pledged to repeal the state’s corporate income tax. Sen.-elect Marco Rubio (R-FL) wants to slash the federal corporate income tax. And Rep. Paul Ryan (R-WI) proposes completely eliminating the tax in his radical Roadmap for America. Of course, Republican mythmaking obscures both the real tax burden and true global competitive environment for U.S. firms. As Forbes documented, myriad loopholes dramatically lower the effective U.S. corporate tax rate. In 2009, the U.S. tax bill on ExxonMobil’s record $45.2 billion profit was zero. (Exxon responded by saying its final bill would be “substantial” – but undisclosed.) General Electric not avoided paying taxes altogether last year; it actually record a $1.1 billion tax benefit. While the effective U.S. corporate rate at 25.3% remains higher than most developed countries, its contribution to federal revenue is shrinking. As CBPP noted , an analysis by the Congressional Research Service showed U.S. corporations paid than 49 percent in the 1950s, 38 percent in the 1960s, and 33 percent in the 1970s. And the total bill for corporate taxes has dropped to only about 10% of federal revenue. Combined federal and state corporate taxes now represent just 2.1% of American GDP , combined to an average of 3.4% among OECD members. As ThinkProgress explained, on that scorecard “American corporations actually already pay far less in taxes than those in other industrialized nations.” Total federal taxes as a percentage of GDP have remained roughly 20% since the 1950′s. But as Tom Schaller at FiveThirtyEight explained using data and a helpful chart from the Tax Policy Center , the contribution of corporate tax revenue has plummeted: Income taxes as a share of GDP have held steady during the same time period. Corporate and excise taxes, paid mostly by businesses and which conservatives complain are inefficient and simply passed through to consumers anyway, have gone down as a share of that 20 percent. What’s gone up are payroll taxes which fund programs like Medicare and Social Security that the same tea partiers were warning Obama and congressional Democrats not to touch in the same breath they were complaining about the socialist expansion of the healthcare system. As the picture reveals, corporate tax revenue as a percentage of GDP has plunged by roughly two-thirds since 1950: As Ezra Klein explained in the Washington Post in September, despite our higher effective corporate tax rates, “If you actually look at the amount of money our corporate tax raises, we’re about one standard deviation beneath the OECD average.” Why? The reason is simple enough: Our corporate tax code is complicated. A lot of businesses, like S-corporations and partnerships, don’t pay corporate taxes. Others use loopholes and exemptions and deductions to push their actual rate way down. We could have a simpler code with lower rates that would raise more money. Or as Klein lamented in April : The U.S. corporate tax rate really is (pdf) larger than in most developed countries, even as revenues are considerably lower and shrinking. But that doesn’t suggest that a simple cut in the corporate income tax would bring back this revenue. If these companies have developed practices for sheltering income overseas, what’s to say they won’t continue to do so even after the tax rate is cut, meaning that revenue would actually fall? The Wyden-Gregg reform package takes the right approach, lowering the rate at the same time as it subjects foreign profits to the tax. This makes evasion both harder and less attractive. In the mean time, the new Republican majority continues to push for more tax breaks for their corporate constituents on Wall Street. Which is altogether fitting. Even as the GOP calls to extend the Bush tax cuts for the richest 2% of Americans, the barons of Wall Street have returned to their opulent ways . And as it turns out, their firms are the very ones piling up the biggest profits right now. As Justin Fox via Ezra Klein explains, not all corporations are pulling in near-record profits: So the reason that corporate profits are near their all-time highs would appear to be that financial corporations (mainly big financial corporations) and multinationals are making lots of money and paying less of it out in taxes. Hmmmm. The corporate profit picture would seem to mirror what’s been going on in income distribution for individuals for the past few decades. The money is increasingly going to a select group at the very top of the economic food chain, who are able to reap the rewards of global growth, play the financial system astutely, and avoid taxes. Welcome to the Republican Party platform. (An earlier version of this piece also appears at Perrspectives .)
Continue reading …Iceland’s President Olafur Grimsson, surveying the global financial mess, including the pending $112 billion bailout of Ireland’s shaky banking sector, can gloat a bit. His country, he says, is in better shape because it let private banks fail two years ago. —JCL Bloomberg: “The difference is that in Iceland we allowed the banks to fail,” Grimsson said in an interview with Bloomberg Television’s Mark Barton [Thursday]. “These were private banks and we didn’t pump money into them in order to keep them going; the state did not shoulder the responsibility of the failed private banks.” Ireland’s Prime Minister Brian Cowen said this week his government has discussed an 85 billion-euro ($112 billion) bailout with the European Union and International Monetary Fund after the country’s banks threatened to bring the euro member to the brink of bankruptcy. Iceland’s banks, which still owe creditors about $85 billion, were split to create domestic units needed to keep the financial system running, while foreign liabilities remained within the failed lenders. As a consequence, “Iceland is faring much better than anybody expected,” Grimsson said. Read more Related Entries November 24, 2010 Fail and Grow Rich on Wall Street November 21, 2010 Soccer Star Boots the Banks
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