Tag Archives: Economy

Books, Climate Solutions, Earth Day

These Books take a Hard look how Climate Change & Capitalism Clash

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Above: Photo Collage / Lynxotic / Simon & Schuster

Naomi Klein’s new book is third in a venerated series on problems we face as a species

As the disasters mount and more and more are definitively linked to man-made climate change and global warming, millions around the globe recognize the need for solutions. More and more the solutions arise, only to be blocked or derailed by the same phenomena: corrupt governments beholden to status quo power and short-sighted corporate greed.

This dynamic; available solutions being actively opposed by business and governments that answer to those powerful corporate entities, even as they mount massive multi-million dollar ad campaigns to “green-wash” their image and try to appear aligned with the very solutions they violently oppose is nearly all pervasive.

Meanwhile, as the problems continue to grow, it has become clear that we, that is to say humanity and its future survivors, are not just fighting a battle against the problem itself, the rapidly deteriorating climate caused by Carbon dioxide (CO2), the primary greenhouse gas emitted through human activities, but even more so a political battle is underway which pits an entire entrenched, unequal and corrupt system (regardless of ideology) against the very issue that needs to be tackled in order for our species to survive.

Without solving the problem of Capitalism’s built-in bias toward profit at any cost, any solution to the climate crisis will be stopped or hindered before it can take root and make enough impact to give us a chance against the looming disasters.

Recently Greta Thunberg posted a statement that governments were literally doing nothing, while at the same time preaching and advertising their “commitment” to solving the problem.

Naomi Klein represents a voice, a top selling author, that has stayed focused on this specific aspect of the challenge for decades. The documentary based on her best-selling book “This Changes Everything” (trailer below) is now a classic and zeros in on the monumental importance of this problem, and how the political and economic systems of the world will require massive and immediate change if we are to survive.

This is not about the tired tropes of Socialism vs Capitalism vs Communism and so on, but rather about the specific corruption and suicidal deception that threatens us all, as fake dedication to solving the problem is paraded simultaneously with efforts that double-down on protecting the homicidal status quo of greed and destruction.

Now, with the Biden administration touting its green status and the green new deal, there must be accountability and more than just words and slogans. The new book shown below is an in-depth look at just what needs to happen to confront the political gridlock and the tendency for real solutions to be blocked or destroyed in the crib.

On Fire: The (Burning) Case for a Green New Deal

Click photo for more on “On Fire“.

Naomi has been at the forefront reporting on the many ways the economy has waged war one planet and people for over 20 years.

An instant bestseller, On Fire shows Klein at her most prophetic and philosophical, investigating the climate crisis not only as a profound political challenge but also as a spiritual and imaginative one. Delving into topics ranging from the clash between ecological time and our culture of “perpetual now,” to the soaring history of humans changing and evolving rapidly in the face of grave threats, to rising white supremacy and fortressed borders as a form of “climate barbarism,” this is a rousing call to action for a planet on the brink. An expansive, far-ranging exploration that sees the battle for a greener world as indistinguishable from the fight for our lives, On Fire captures the burning urgency of the climate crisis, as well as the fiery energy of a rising political movement demanding a catalytic Green New Deal.

Within this text, you will find her essays, written whilst in the midst of natural disasters, dire warnings of the future that is waiting for us if we do nothing to change. The long-forms essays display both the prophetic and philosophical while also challenging the spiritual and imaginative.

Her writings span events ranging from the smoky skies of the Pacific Northwest, the barren Great Barrier Reef to the post-hurricane Puerto Rico and many other climate crises.

This Changes Everything: Capitalism vs. the Climate

Click photo for more on “This Changes Everything“.

Author Naomi Klein wants readers to embrace the radical, that there is no longer the option to remain at the status quo. Climate Change isn’t just something to be “fixed” it is a crisis that requires immediate action. Also now a feature documentary.

In her book she exposes climate change deniers, delusions of geoengineers, why mainstream green initiatives have failed thus far and how capitalism will only make things worst.

The most important book yet from the author of the international bestseller The Shock Doctrine, a brilliant explanation of why the climate crisis challenges us to abandon the core “free market” ideology of our time, restructure the global economy.

The Shock Doctrine: The Rise of Disaster Capitalism

Click photo for more on “The Shock Doctrine“.

Klein introduces us to a new term, disaster capitalism, how those who experience catastrophic events (i.e. war/extreme violence or tsunami/ natural, ect) not only had to suffer from the disaster but also were being taken advantage by “rapid-fire corporate makeovers”.

“The Shock Doctrine” shows how economic policies have capitalized on crises, how at the core of disaster capitalism is to use a cataclysmic event to radicalize privatization.

In her groundbreaking reporting, Naomi Klein introduced the term disaster capitalism. Whether covering Baghdad after the U.S. occupation, Sri Lanka in the wake of the tsunami, or New Orleans post-Katrina, she witnessed something remarkably similar. People still reeling from catastrophe were being hit again, this time with economic shock treatment, losing their land and homes to rapid-fire corporate makeovers. 

The Shock Doctrine retells the story of the most dominant ideology of our time, Milton Friedman’s free market economic revolution. In contrast to the popular myth of this movement’s peaceful global victory, Klein shows how it has exploited moments of shock and extreme violence in order to implement its economic policies in so many parts of the world from Latin America and Eastern Europe to South Africa, Russia, and Iraq.

Watch Trailer for Documentary: ‘This Changes Everything’

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Business, Elon Musk

Do poison pills work? A finance expert explains the anti-takeover tool that Twitter hopes will keep Elon Musk at bay

Poison pills usually work, but Elon Musk appears undeterred. screenshot from china launch video

Tuugi Chuluun, Loyola University Maryland

Takeovers are usually friendly affairs. Corporate executives engage in top-secret talks, with one company or group of investors making a bid for another business. After some negotiating, the companies engaged in the merger or acquisition announce a deal has been struck.

But other takeovers are more hostile in nature. Not every company wants to be taken over. This is the case with Elon Musk’s US$43 billion bid to buy Twitter.

Companies have various measures in their arsenal to ward off such unwanted advances. One of the most effective anti-takeover measures is the shareholder rights plan, also more aptly known as a “poison pill.” It is designed to block an investor from accumulating a majority stake in a company.

Twitter adopted a poison pill plan on April 15, 2022, shortly after Musk unveiled his takeover offer in a Securities and Exchange filing.

I’m a scholar of corporate finance. Let me explain why poison pills have been effective at warding off unsolicited offers, at least until now.

What’s a poison pill?

Poison pills were developed in the early 1980s as a defense tactic against corporate raiders to effectively poison their takeover efforts – sort of reminiscent of the suicide pills that spies supposedly swallow if captured.

There are many variants of poison pills, but they generally increase the number of shares, which then dilutes the bidder’s stake and causes them a significant financial loss.

Let’s say a company has 1,000 shares outstanding valued at $10 each, which means the company has a market value of $10,000. An activist investor purchases 100 shares at the cost of $1,000 and accumulates a significant 10% stake in the company. But if the company has a poison pill that is triggered once any hostile bidder owns 10% of its stock, all other shareholders would suddenly have the opportunity to buy additional shares at a discounted price – say, half the market price. This has the effect of quickly diluting the activist investor’s original stake and also making it worth a lot less than it was before.

Twitter adopted a similar measure. If any shareholder accumulates a 15% stake in the company in a purchase not approved by the board of directors, other shareholders would get the right to buy additional shares at a discount, diluting the 9.2% stake Musk recently purchased.

Poison pills are useful in part because they can be adopted quickly, but they usually have expiration dates. The poison pill adopted by Twitter, for example, expires in one year.

A successful tactic

Many well-known companies such as Papa John’s, Netflix, JCPenney and Avis Budget Group have used poison pills to successfully fend off hostile takeovers. And nearly 100 companies adopted poison pills in 2020 because they were worried that their careening stock prices, caused by the pandemic market swoon, would make them vulnerable to hostile takeovers.

No one has ever triggered – or swallowed – a poison pill that was designed to fend off an unsolicited takeover offer, showing how effective such measures are at fending off takeover attempts.

These types of anti-takeover measures are generally frowned upon as a poor corporate governance practice that can hurt a company’s value and performance. They can be seen as impediments to the ability of shareholders and outsiders to monitor management, and more about protecting the board and management than attracting more generous offers from potential buyers.

However, shareholders may benefit from poison pills if they lead to a higher bid for the company, for example. This may be already happening with Twitter as another bidder – a $103 billion private equity firm – may have surfaced.

A poison pill isn’t foolproof, however. A bidder facing a poison pill could try to argue that the board is not acting in the best interests of shareholders and appeal directly to them through either a tender offer – buying shares directly from other shareholders at a premium in a public bid – or a proxy contest, which involves convincing enough fellow shareholders to join a vote to oust some or all of the existing board.

And judging by his tweets to his 82 million Twitter followers, that seems to be what Musk is doing.

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Tuugi Chuluun, Associate Professor of Finance, Loyola University Maryland

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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News, Observation, Politics

How the Supreme Court Could Make Your Life More Dangerous: new video by Robert Reich

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Below we’ve embedded the new video, along with the text of the video.

Your life could get a lot more dangerous. Republican appointees on the Supreme Court seem poised to strip away basic safety standards for our workplaces, our food, our air and water. 

Congress gives federal agencies the authority to enact regulations that protect us in our daily lives. Congress defines the goals, but leaves it up to the health and safety experts in those agencies to craft and enforce regulations. I know regulations don’t sound very exciting, but they’re how our government keeps us safe.

Remember when lots of romaine lettuce was recalled because it was causing E.coli outbreaks? That was the Food and Drug Administration protecting us from getting sick. Working in a warehouse? The Occupational Safety and Health Administration sets standards to ensure you don’t breathe in dangerous chemicals like asbestos. Enjoying the fresh air on a clear, sunny day? Thank the Environmental Protection Agency for limiting the amount of pollution that can go into our air.

These agencies save lives. Since OSHA was established a half-century ago, its workplace safety regulations have saved more than 618,000 workers’ lives.

Republicans have been trying to gut these agencies for decades. Now, with the Supreme Court’s right-wing majority solidly in place, they have their best chance yet.

In January 2022, the Supreme Court blocked OSHA’s vaccine-or-testing mandate from going into effect, which was estimated to prevent a quarter-million hospitalizations.

The Court claimed that Covid isn’t an “occupational hazard” because people can become infected outside of work, and that allowing OSHA to regulate in this manner “would significantly expand” its authority without clear Congressional authorization.

This is absurd on its face. Section 2 of the Occupational Safety and Health Act of 1970 clearly spells out OSHA’s authority to enact and enforce regulations that protect workers from illness, injury, and death in the workplace. Congress doesn’t need to list every specific workplace hazard before OSHA can protect workers.

What this ruling tells us is that the Republican appointees on the Supreme Court are intent on gutting the power of agencies to issue regulations.

This term, the Court will also hear a case regarding the EPA’s authority to enforce the Clean Water Act. If the Court undermines the EPA’s authority, it will put our environment – and our health – at risk. Remember when the Cuyahoga River caught on fire because it was brimming with oil, acid, and factory chemicals? That’s what we may be returning to.

And what’s next? Will they gut the Federal Trade Commission and put us all at risk of being defrauded? Target the Securities and Exchange Commission and deregulate the financial sector, sparking another financial crisis?

Beware. If Republican appointees on the Supreme Court succeed in gutting regulatory agencies, we all lose. This agenda is anti-worker, anti-consumer, and anti-environment. The only thing it’s good for is corporate profits.

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Economics, Finance, News, Politics

Why the Fed can’t stop prices from going up anytime soon – but may have more luck over the long term

Above: Photo Adobe Stock

The Federal Reserve has begun its most challenging inflation-fighting campaign in four decades. And a lot is at stake for consumers, companies and the U.S. economy.

On March 16, 2022, the Fed raised its target interest rate by a quarter point – to a range of 0.25% to 0.5% – the first of many increases the U.S. central bank is expected to make over the coming months. The aim is to tamp down inflation that has been running at a year-over-year pace of 7.9%, the fastest since February 1982.

The challenge for the Fed is to do this without sending the economy into recession. Some economists and observers are already raising the specter of stagflation, which means high inflation coupled with a stagnating economy.

As an expert on financial markets, I believe there’s good news and bad when it comes to the Fed’s upcoming battle against inflation. Let’s start with the bad.

Inflation is worse than you think

Inflation began accelerating in fall 2021 when a stimulus-fueled demand for goods met a COVID-19-induced drop in supply.

In all, Congress spent US$4.6 trillion trying to counter the economic effects of COVID-19 and the lockdowns. While that may have been necessary to support struggling businesses and people, it unleashed an unprecedented bump in the U.S. money supply.

At the same time, supply chains have been in disarray since early in the pandemic. Lockdowns and layoffs led to closures of factories, warehouses and shipping ports, and shortages of key components like microchips have made it harder to finish a wide range of goods, from cars to fridges. These factors have contributed to a worldwide shortage of goods and services.

Any economist will tell you that when demand exceeds supply, prices will rise too. And to make matters worse, businesses around the world have been struggling to hire more workers, which has further exacerbated supply chain problems. The labor shortage also worsens inflation because workers are able to demand higher wages, which is typically paid for with higher prices on the goods they make and the services they provide.

This clearly caught the Fed off guard, which as recently as November 2021 was calling the rise in inflation “transitory.”

And now Russia’s war in Ukraine is compounding the problems. This is mostly because of the conflict’s impact on the supply of gas and oil, but also because of the sanctions placed on Russia’s economy and the ancillary effects that will ripple throughout the global economy.

The latest inflation data, released on March 10, 2022, is for the month of February and therefore doesn’t account for the impact of Russia’s invasion of Ukraine, which sent U.S. gas prices soaring. The prices of other commodities, such as wheat, also spiked. Russia and Ukraine produce a quarter of the world’s wheat supply.

Inflation won’t be slowing anytime soon

And so the Fed has little choice but to raise interest rates – one of its few tools available to curb inflation.

But now it’s in a very tough situation. After arguably coming late to the inflation-fighting party, the Fed is now tasked with a job that seems to get harder by the day. That’s because the main drivers of today’s inflation – the war in Ukraine, the global shortage of goods and workers – are outside of its control.

So even dramatic rate hikes over the coming months, perhaps increasing rates from about zero now to 1%, will be unlikely to make an appreciable impact on inflation. This will remain true at least until supply chains begin to return to normal, which is still a ways off.

Cars and condos

There are a few areas of the U.S. economy where the Fed could have more of an impact on inflation – eventually.

For example, demand for goods that are typically purchased with a loan, such as a house or car, is more closely tied to interest rates. The Fed’s policy of ultra-low interest rates is one key factor that has driven inflation in those sectors in recent months. As such, an increase in borrowing costs through higher interest rates should prompt a drop in demand, thus reducing inflation.

But changing consumer behavior can take time, and it’ll require more than a quarter-point increase in rates at the Fed. So consumers should expect prices to continue to climb at an above-normal pace for some time.

Higher interest rates also tend to reduce stock prices, as other investments like bonds may become more attractive to investors. This in turn may lead people invested in stock markets to reduce their spending because they feel less wealthy, which may help reduce overall demand and inflation. The effect is minimal, however, and would take time before you see the impact in prices.

The good news

That is the bad news. The good news is that the U.S. economy has been roaring at the fastest pace in decades, and unemployment is just about down to its pre-pandemic level, which was the lowest since the 1960s.

That’s why I think it’s unlikely the U.S. will experience stagflation – as it did in the 1970s and early 1980s. A very aggressive increase in interest rates could possibly induce a recession, and lead to stagflation, but by sapping economic activity it could also bring down inflation. At the moment, a recession seems unlikely.

In my view, what the Fed is beginning to do now is less taking a big bite out of inflation and more about signaling its intent to begin the inflation battle for real. So don’t expect overall prices to come down for quite a while.

Jeffery S. Bredthauer, Associate Professor Of Finance, Banking and Real Estate,, University of Nebraska Omaha

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Breaking News, News

Red Alert for Fukushima Nuclear Plant After 7.3 Quake in Japan

Over two million homes in the Tokyo region were left without power.

This is a breaking story… Please check back for possible updates…

A series of earthquakes off the coast of Japan on Wednesday triggered a tsunami advisory for Miyagi and Fukushima prefectures—just over 11 years after the region endured a major nuclear disaster.

The first two earthquakes, with magnitudes of 6.4 and 7.3, struck within two minutes of each other, followed by another 5.5 magnitude quake over an hour later, according to the U.S. Geological Survey (USGS).

The strongest quake hit about 60 kilometers or 37 miles below the sea and left more than two million homes without electricity in an area serviced by the Tokyo Electric Power Company (TEPCO), the Associated Press reported.

The AP noted that TEPCO said workers were checking for any possible damage at the Fukushima Daiichi Nuclear Power Plant in Ōkuma, the site of the March 2011 disaster—which was caused by a 9.0 magnitude quake and resulting tsunami that led to multiple meltdowns at the facility.

No abnormalities were found at the Fukushima plant, The Japan Timesreported, citing the nation’s Nuclear Regulation Authority.

TEPCO also found no abnormalities at the Onagawa Nuclear Power Plant in Miyagi Prefecture, according to Japan’s public broadcaster, NHK.

“There is a possibility that another earthquake as strong as an upper 6 could strike in the next week or so,” Japanese Chief Cabinet Secretary Hirokazu Matsuno told reporters just after midnight local time. “We need to be on alert.”

As Common Dreams reported last week, environmental defenders marked the 11th anniversary of the Fukushima disaster with calls for a renewable energy future free of nuclear power.

Originally published on Common Dreams by JESSICA CORBETT and republished under

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Breaking News, Politics

Dems Introduce Windfall Tax on Big Oil So Companies ‘Pay a Price When They Price Gouge’

Above: Photo Collage / Lynxotic / Adobe Stock

“This is a bill to reduce gas prices and hold Big Oil accountable,” said Rep. Ro Khanna, who led the measure in the U.S. House.

Congressional Democrats on Thursday introduced the bicameral Big Oil Windfall Profits Tax to target price gouging by profit-gorging fossil fuel companies amid Russian President Vladimir Putin’s invasion of Ukraine.

“We need to curb profiteering by Big Oil and provide relief to Americans at the gas pump—that starts with ensuring these corporations pay a price when they price gouge.”

“This is a bill to reduce gas prices and hold Big Oil accountable,” declared Rep. Ro Khanna (D-Calif.), who’s leading the measure in the U.S. House.

“As Russia’s invasion of Ukraine sends gas prices soaring,” said Khanna, “fossil fuel companies are raking in record profits. These companies have made billions and used the profits to enrich their own shareholders while average Americans are hurting at the pump.”

Sen. Sheldon Whitehouse (D-R.I.) introduced the legislation in the upper chamber along with co-sponsors including Sens. Jeff Merkley (D-Ore.), Elizabeth Warren (D-Mass.), and Bernie Sanders (I-Vt.).

The proposal followed President Joe Biden’s announcement earlier this week of a ban on U.S. imports of Russian fuels and amid swelling accusations that Big Oil has been taking advantage of the crisis in Ukraine to “pad their bottom line with war-fueled profits.”

The Democrats’ proposal aims to get some relief for Americans, who are facing average gas prices of $4.31 a gallon.

Big oil companies, specifically those that produce or import at least 300,000 barrels of oil per day, are targeted under the measure. They would face a per-barrel tax—whether the oil is domestically produced or imported—equal to 50% of the difference between the current price of a barrel of oil and the average price per barrel between 2015 and 2019.

The measure exempts smaller companies, which, according to a statement from the lawmakers, account for roughly 70% of the domestic production. This approach is meant to deter the larger multinational producers from simply raising prices.

The tax imposed on the energy firms would be quarterly. Consumers would receive quarterly rebates, with the relief phasing out for single filers earning more than $75,000 annually and joint filers earning more than $150,000 annually. The lawmakers project the tax to raise $45 billion per year at $120 per barrel of oil, delivering to single filers $240 annually and joint filers $360 annually.

“While Putin’s war is causing gas prices to go up, Big Oil companies are raking in record profits,” Warren said in a statement. “We need to curb profiteering by Big Oil and provide relief to Americans at the gas pump—that starts with ensuring these corporations pay a price when they price gouge, and using the revenue to help American families,” she said.

A number of social justice and climate groups heaped praise on the legislative proposal.

According to Richard Wiles, president of the Center for Climate Integrity, “The oil and gas industry got the world into this mess by lobbying and lying to keep us hooked on fossil fuels. Now they’re using the war in Ukraine to distract us from the fact that they are ripping off hard working Americans with high gas prices as they reap record earnings.”

“It’s time we stop allowing Big Oil to use its record profits, earned on the backs of hard-working American families, to reward wealthy shareholders and CEOs, and instead make them pay a fair share to lower the cost for consumers,” he added.

Collin Rees, U.S. program director at Oil Change International, welcomed the proposal as precisely the opposite of what the fossil fuel lobby has called for to counter Putin’s power, namely expanded domestic fossil fuel production.

“The so-called ‘solutions’ to the energy crisis being put forward by Big Oil companies and the American Petroleum Institute would do nothing but further line their own pockets and lock in a climate-wrecking, fossil-fueled future,” he said. “What’s needed now is immediate relief for American consumers, which is what this commonsense windfall profits tax bill would provide.”

The bill also drew plaudits from Lukas Ross, program manager at Friends of the Earth, which released an analysis Thursday along with BailoutWatch finding that Big Oil CEOs have “absolutely” used the spiked in fuel prices triggered by Russia’s invasion of Ukraine to “price-gouge and profiteer.”

In a statement responding to the new legislation, Ross said: “All-American oil oligarchs are profiteering off the war in Ukraine while sacrificing our communities and climate. The windfall profits tax will require Big Oil to pay their fair share while putting billions of dollars back into the pockets of taxpayers.”

Originally published on Common Dreams by ANDREA GERMANOS and republished under  a Creative Commons license (CC BY-NC-ND 3.0)

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News, Observation, Politics

Economic sanctions may deal fatal blow to Russia’s already-weakdomestic opposition

The West has responded to Russia’s invasion of Ukraine by imposing harsh economic sanctions.

Above: Photo Collage

Most consequentially, key Russian banks have been cut out of the SWIFT payments messaging system, making financial transactions much more difficult. The United States, European Union and others also moved to freeze Russian Central Bank reserves. And U.S. President Joe Biden is weighing a total ban on Russian oil imports.

These sanctions are aimed at generating opposition from both Russian President Vladimir Putin’s inner circle and everyday Russians. As a scholar who studies regime change, I believe the risk is that they will actually drive the Kremlin’s weak opposition further into obscurity.

A ‘punishment logic’

Economic sanctions follow a “punishment logic”: Those feeling economic pain are expected to rise up against their political leaders and demand a change in policies.

Everyday Russians have already felt the pain from the newest sanctions. The ruble plummeted in value, and Russia’s stock market dipped. The effects of Western sanctions were seen in the long lines at ATMs as Russians tried to pull out their cash before it was lost.

But the odds of an uprising are not great. Empirical research suggests that sanctions rarely generate the sorts of damage that compel their targets to back down. Their greatest chance of success is when they are used against democratic states, where opposition elites can mobilize the public against them.

In authoritarian regimes like Putin’s, where average citizens are the most likely to suffer, sanctions usually do more to hurt the opposition than help it.

How Putin has quelled dissent

Putin has used a variety of tools to try to quell domestic opposition over the past two decades.

Some of these were subtle, such as tweaking the electoral system in ways that benefit his party. Others were less so, including instituting constitutional changes that allow him to serve as president for years to come.

But Putin has not stopped at legislative measures. He has long been accused of murdering rivals, both at home and abroad. Most recently, Putin has criminalized organizations tied to the opposition and has imprisoned their leader, Alexei Navalny, who was the target of two assassination attempts.

Despite a clampdown on activism, Russians have repeatedly proved willing to take to the streets to make their voices heard. Thousands demonstrated in the summer and fall of 2020 to support a governor in the Far East who had beaten Putin’s pick for the position only to be arrested, ostensibly for a murder a decade and a half earlier. Thousands more came out last spring to protest against Navalny’s detention.

Putin has even begun facing challenges from traditionally subservient political parties, such as the Communist Party and the nationalist Liberal Democratic Party.

Flickers of opposition

Importantly, Putin has occasionally shown a willingness to back down and change his policies under pressure. In other words, as much as Putin has limited democracy in Russia, opposition has continued to bubble up.

The result is a president who feels compelled to win over at least a portion of his domestic audience. This was clear in the impassioned address Putin made to the nation setting the stage for war. The fiery hourlong speech falsely accused Ukrainians of genocide against ethnic Russians in eastern Ukraine. “How long can this tragedy continue? How much longer can we put up with this?” Putin asked his nation.

Since Russia invaded Ukraine, Russians have continued to show their willingness to stand up to Putin. Thousands have gathered to protest the war in Ukraine, despite risking large fines and jail time.

They have been aided by a network of “hacktivists” outside Russia using a variety of tactics to overcome the Kremlin’s mighty propaganda machine. These groups have blocked Russian government agencies and state news outlets from spreading false narratives.

Controlling the narrative

Despite these public showings, the liberal opposition to Putin is undoubtedly weak. In part, this is because Putin controls state television, which nearly two-thirds of Russians watch for their daily news. Going into this war, half of Russians blamed the U.S. and NATO for the increase in tensions, with only 4% holding Russia responsible.

This narrative could be challenged by the large number of Russians – 40% – who get their information from social media. But the Kremlin has a long track record of operating in this space, intimidating tech companies and spreading false stories that back the government line. Just on Friday state authorities said they would block access to Facebook, which around 9% of Russians use.

Putin has already shown he can use his information machine to convert past Western sanctions into advantage. After the West sanctioned Russia for its 2014 takeover of Crimea, Putin deflected blame for Russians’ economic pain from himself to foreign powers. The result may have fallen short of the classic “rally around the flag” phenomenon, but on balance Putin gained politically from his first grab on Ukraine. More forceful economic sanctions this time around may unleash a broader wave of nationalism.

More importantly, sanctions have a long track record of weakening political freedoms in the target state. As the situation in Russia continues to deteriorate, Putin will likely crack down further to stamp out any signs of dissent.

And former Russian president Dmitry Medvedev reacted to the country’s expulsion from the Council of Europe by suggesting Russia might go back on its human rights promises.

Another casualty of the war

This has already begun.

In the first week of the war, Russian authorities arrested more than 7,000 protesters. They ramped up censorship and closed down a longtime icon of liberal media, the Ekho Moskvy radio station. The editor of Russia’s last independent TV station, TV Dozhd, also announced he was fleeing the country.

Russia already ranked near the bottom – 150 out of 180 – in the latest Reporters Without Borders assessment of media freedom. And a new law, passed on March 4, 2022, punishes the spread of “false information” about Russia’s armed forces with up to 15 years in jail.

Ironically, then, the very sanctions that encourage Russians to attack the regime also narrow their available opportunities to do so.

Ultimately, the opposition seen on the streets in Russia today and perhaps in the coming weeks may be the greatest show of strength that can be expected in the near future.

The West may have better luck using targeted sanctions against those in Putin’s inner circle, including Russia’s infamous oligarchs. But with their assets hidden in various pots around the world, severely hurting these actors may prove difficult.

Even in the best of circumstances, economic sanctions can take years to have their desired effect. For Ukrainians, fighting a brutal and one-sided war, the sanctions are unlikely to help beyond bolstering morale.

The danger is that these sanctions may also make average Russians another casualty in Putin’s war.

[The Conversation’s Politics + Society editors pick need-to-know stories. Sign up for Politics Weekly.]

This article is republished from The Conversation BY Brian Grodsky, University of Maryland, Baltimore County under a Creative Commons license. Read the original article.

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Business, Economics, Finance, Observation

The Hidden Link between Corporate Greed and Inflation: Video by Robert Reich

Video

Not new, perhaps, but getting worse by the day

In a new video from Robert Reich, former secretary of labor and accomplished author, the phenomena we are all experiencing on a daily basis, such as incredible high gas prices, crazy energy prices, more out-of-pocket at the grocery store, and what sure looks like price gouging and price hikes on almost everything, he takes on the root of it all, in other words: Inflation.

Naturally, with all of this being so obvious to you and me there’s no shortage of folks to explain the purported causes, from media outlets like The Washington Post, to Biden administration officials and pundits from left, right and center.

One explanation you will seldom hear, however, is that much of the pain we are experiencing is due to monopoly power, the inequality growing out of the economic concentration of the American economy and the ever increasing concentration of financial and market power to a relative handful of big corporations.

This perspective is not only refreshingly direct, but it actually has a remedy attached, unlike the usual reasons given, such as economic policy, government spending, irresponsible actions by the federal government and federal reserve and so on. While all of these are certainly good candidates for finger pointing, they generally have only one response attached that is suggested as a remedy: higher interest rates.

“How can this structural problem be fixed? Fighting corporate concentration with more aggressive antitrust enforcement. Biden has asked the Federal Trade Commission to investigate oil companies, and he’s appointed experienced antitrust lawyers to both the FTC and the Justice Department.”

– Robert Reich

The idea that corporate greed, massive corporate profits that keep rising, in spite of supply chain disruptions and other issues, could be at the root of the problems, and that aggressive use of antitrust law might just be an appropriate response to the deeper structural issue is spot on.

A real change via antitrust might help to reinstate tough competition, weed out greedy businesses and even slow down the increasing consolidation of the economy, and the concept comes across as a welcome revelation, or at least beats a job and economy crushing series of Paul Volcker-style (huge) interest rate hikes.

There’s an even bigger challenge on the horizon, however, which is the sheer size of the biggest tech firms, who make the companies mentioned in the video, such as Coke, Pepsi, Procter & Gamble, meat conglomerates and the pharmaceutical industry seem tiny by comparison. As noted by the Wall Street Journal, during the pandemic the behemoths such as Facebook, Amazon and Microsoft have surged.

This is evidence of even less competition than in the sectors mention and presented in the video, and yes, the energy sector, consumer goods, food prices are all showing little competition and that situation is getting worse.

In a recent New York Times article “Economists Pin More Blame on Tech for Rising Inequality” the author, Steve Lohr, argues that, above and beyond the horrors outlined in The Hidden Link Between Corporate Greed and Inflation there’s an automation factor at work concentrating the already ludicrous levels of unending power faster and more efficiently. Great.

At least we have Mark Zuckerberg, from a recent YouTube interview with Lex Fridman, with his sunny personality shining through, saying that “what if playing with your friends is the point [of life]?, and further “I think over time, as we get more technology, the physical world is becoming less of a percent of the real world, and I think that opens up a lot of opportunities for people because you can you can work in different places you can stay closer to people who are in different places removing barriers of geography”. At least, then, there’s that. Thanks Mark.

The video text reads well also on the page. Charts, graphics and the charismatic voice of Robert Reich are worth the watch, but here is the full text, in case you prefer:

Inflation! Inflation! Everyone’s talking about it, but ignoring one of its biggest causes: corporate concentration.

Now, prices are undeniably rising. In response, the Fed is about to slow the economy — even though we’re still at least 4 million jobs short of where we were before the pandemic, and millions of American workers won’t get the raises they deserve. Republicans haven’t wasted any time hammering Biden and Democratic lawmakers about inflation. Don’t fall for their fear mongering.

Everybody’s ignoring the deeper structural reason for price increases: the concentration of the American economy into the hands of a few corporate giants with the power to raise prices.

If the market were actually competitive, corporations would keep their prices as low as possible as they competed for customers. Even if some of their costs increased, they would do everything they could to avoid passing them on to consumers in the form of higher prices, for fear of losing business to competitors.

But that’s the opposite of what we’re seeing. Corporations are raising prices even as they rake in record profits. Corporate profit margins hit record highs last year. You see, these corporations have so much market power they can raise prices with impunity.

So the underlying problem isn’t inflation per se. It’s a lack of competition. Corporations are using the excuse of inflation to raise prices and make fatter profits.

Take the energy sector. Only a few entities have access to the land and pipelines that control the oil and gas powering most of the world. They took a hit during the pandemic as most people stayed home. But they are more than making up for it now, limiting supply and ratcheting up prices.

Or look at consumer goods. In April 2021, Procter & Gamble raised prices on staples like diapers and toilet paper, citing increased costs in raw materials and transportation. But P&G has been making huge profits. After some of its price increases went into effect, it reported an almost 25% profit margin. Looking to buy your diapers elsewhere? Good luck. The market is dominated by P&G and Kimberly-Clark, which—NOT entirely coincidentally—raised its prices at the same time.

Another example: in April 2021, PepsiCo raised prices, blaming higher costs for ingredients, freight, and labor. It then recorded $3 billion in operating profits through September. How did it get away with this without losing customers? Pepsi has only one major competitor, Coca-Cola, which promptly raised its own prices. Coca-Cola recorded $10 billion in revenues in the third quarter of 2021, up 16% from the previous year.

Food prices are soaring, but half of that is from meat, which costs 15% more than last year. There are only four major meat processing companies in America, which are all raising their prices and enjoying record profits. Get the picture?

The underlying problem is not inflation. It’s corporate power. Since the 1980s, when the U.S. government all but abandoned antitrust enforcement, two-thirds of all American industries have become more concentrated. Most are now dominated by a handful of corporations that coordinate prices and production. This is true of: banks, broadband, pharmaceutical companies, airlines, meatpackers, and yes, soda.

Corporations in all these industries could easily absorb higher costs — including long overdue wage increases — without passing them on to consumers in the form of higher prices. But they aren’t. Instead, they’re using their massive profits to line the pockets of major investors and executives — while both consumers and workers get shafted.

How can this structural problem be fixed? Fighting corporate concentration with more aggressive antitrust enforcement. Biden has asked the Federal Trade Commission to investigate oil companies, and he’s appointed experienced antitrust lawyers to both the FTC and the Justice Department.

So don’t fall for Republicans’ fear mongering about inflation. The real culprit here is corporate power.

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Business, News, Observation, Politics

Economists Warn Against the Fed Raising Rates at Worst Possible Time

Video

Above: Photo / Collage / Lynxotic / Adobe Stock

“A large across-the-board increase in interest rates is a cure worse than the disease,” says economist Joseph Stiglitz. “That might dampen inflation if it is taken far enough, but it will also ruin people’s lives.”

As the U.S. Federal Reserve mulls hiking interest rates in the coming weeks in an effort to curb inflation, progressive economists are warning against such a move—arguing that it will hurt workers and fail to address the real source of rising prices: unmitigated corporate power.

“The last thing average working people need is for the Fed to raise interest rates and slow the economy further.”

“A large across-the-board increase in interest rates is a cure worse than the disease,” Joseph Stiglitz, a Nobel laureate in economics and Columbia University professor, wrote Monday in Project Syndicate. “We should not attack a supply-side problem by lowering demand and increasing unemployment. That might dampen inflation if it is taken far enough, but it will also ruin people’s lives.”

Josh Bivens, director of research at the Economic Policy Institute, echoed Stiglitz’s message, writing Monday: “The inflation spike of 2021 has been bad for typical families and is a real policy challenge. But it remains the case that an overreaction to it could end up causing the most damage of all.”

Stiglitz and Bivens’ essays came three days after Robert Reich, professor of public policy at the University of California, Berkeley, made a similar warning.

According to Reich:

Fed policymakers are poised to raise interest rates at their March meeting and then continue raising them, in order to slow the economy. They fear that a labor shortage is pushing up wages, which in turn are pushing up prices—and that this wage-price spiral could get out of control.

It’s a huge mistake. Higher interest rates will harm millions of workers who will be involuntarily drafted into the inflation fight by losing jobs or long-overdue pay raises. There’s no “labor shortage” pushing up wages. There’s a shortage of good jobs paying adequate wages to support working families. Raising interest rates will worsen this shortage.

Although Federal Reserve Chair Jerome Powell “has expressed concern about wage hikes pushing up prices,” Reich wrote, “there’s no ‘wage-price spiral.'”

“To the contrary, workers’ real wages have dropped because of inflation,” he added. “Even though overall wages have climbed, they’ve failed to keep up with price increases—making most workers worse off in terms of the purchasing power of their dollars.”

click to watch

Reich conceded that “wage-price spirals used to be a problem” but argued that’s no longer the case “because the typical worker today has little or no bargaining power.”

Declining union membership and corporations’ increased mobility—both key pillars in the ruling class’ highly effective assault on workers that has been carried out on a bipartisan basis for more than four decades—”have shifted power from labor to capital,” wrote Reich. “Increasing the share of the economic pie going to profits and shrinking the share going to wages… ended wage-price spirals.”

It is “totally wrong” to contend that inflation is being fueled by rising wages stemming from a so-called “tight” labor market, Reich argued. He continued:

The January jobs report shows that the U.S. economy is still 2.9 million jobs below what it had in February 2020. Given the growth of the U.S. population, it’s 4.5 million short of what it would have by now had there been no pandemic.

Consumers are almost tapped out. Not only are real (inflation-adjusted) incomes down, but pandemic assistance has ended. Extra jobless benefits are gone. Child tax credits have expired. Rent moratoriums are over. Small wonder consumer spending fell 0.6% in December, the first decrease since last February.

“Given all this, the last thing average working people need is for the Fed to raise interest rates and slow the economy further,” Reich added. “The problem most people face isn’t inflation. It’s a lack of good jobs.”

When it comes to what is causing inflation, Reich blamed “continuing worldwide bottlenecks in the supply of goods, and the ease with which big corporations (with record profits) are passing these costs to customers in higher prices.”

Corporate greed has played a large role in why people are paying higher prices for food and gas, as Common Dreams has reported and a majority of the public appears to understand, based on recent polling. Amid a public health crisis that has claimed the lives of more than 900,000 people in the U.S. and 5.7 million people globally, price-gouging corporations are enjoying mega-profits not seen since 1950.

While pandemic profiteering is evident, the question remains as to what made global supply chains so fragile to disruption in the first place—leading to prolonged shortages of key inputs and increased shipping costs that have been accompanied by price hikes.

According to Rakken Mabud, chief economist and managing director of policy and research at the Groundwork Collaborative, the answer lies in offshoring, financialization, deregulation, just-in-time logistics, and other profit-maximizing policies associated with neoliberalization and globalization.

Mabud made that case last week when testifying at a House Energy and Commerce Committee hearing. She and David Dayen, executive editor of The American Prospect, expanded on that argument in a recent essay introducing a new series on the supply chain crisis.

As a number of economists have warned recently, policymakers on the verge of making life-altering decisions with respect to interest rates may be doing so based on faulty data or misconceptions. 

“Among the biggest job gains in January were workers who are normally temporary and paid low wages (leisure and hospitality, retail, transport and warehousing),” Reich cautioned. “This January employers cut fewer of these low-wage temp workers than in most years, because of rising customer demand and the difficulties of hiring during Omicron. Due to the Bureau of Labor Statistics’ ‘seasonal adjustment,’ cutting fewer workers than usual for this time of year appears as ‘adding lots of jobs.'”

Stiglitz, meanwhile, noted that “the inflation rate has been volatile. Last month, the media made a big deal out of the 7% annual inflation rate in the United States, while failing to note that the December rate was little more than half that of the October rate.”

“Moreover, given that a large proportion of today’s inflation stems from global issues—like chip shortages and the behavior of oil cartels—it is a gross exaggeration to blame inflation on excessive fiscal support in the U.S.,” Stiglitz continued.

While “the U.S. has slightly higher inflation than Europe,” he added, “it also has enjoyed stronger growth. U.S. policies prevented a massive increase in poverty that might have occurred otherwise. Recognizing that the cost of doing too little would be huge, U.S. policymakers did the right thing.”

Stiglitz wrote that his “biggest concern is that central banks will overreact, raising interest rates excessively and hampering the nascent recovery. As always, those at the bottom of the income scale would suffer the most in this scenario.”

“What we need instead,” he argued, “are targeted structural and fiscal policies aimed at unblocking supply bottlenecks and helping people confront today’s realities.”

For instance, wrote Stiglitz, “food stamps for the needy should be indexed to the price of food, and energy (fuel) subsidies to the price of energy.”

“Beyond that, a one-time ‘inflation adjustment’ tax cut for lower- and middle-income households would help them through the post-pandemic transition,” he added. “It could be financed by taxing the monopoly rents of the oil, technology, pharmaceutical, and other corporate giants that made a killing from the crisis.”

Originally published on Common Dreams by KENNY STANCIL and republished under a Creative Commons license (CC BY-NC-ND 3.0)

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News, Observation, Politics

Tax-Dodging Billionaire Dynasties Could Cost US $8.4 Trillion: Report

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Above: Photo / collage / Lynxotic / various

The wealth-hoarding by ultrarich families would be equivalent to over four Build Back Better plans

Over the next few decades, the richest American families could avoid paying about $8.4 trillion in taxes, or more than four times the cost of the stalled Build Back Better package, according to a report released Wednesday.

“We can fix our broken estate and gift tax system… or we can trust our democracy to a handful of trillionaire trust fund babies.”

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The Americans for Tax Fairness report—entitled Dynasty Trusts: Giant Tax Loopholes that Supercharge Wealth Accumulation—urges Congress to fix the federal tax code to address dynastic wealth.

The new analysis details how loopholes have made the payment of estate, gift, and generation-skipping taxes—collectively called wealth-transfer taxes—effectively optional for the “ultrawealthy” and thereby accelerate the “accumulation of dynastic wealth.”

“Ultrarich families use dynasty trusts—the term for a variety of wealth-accumulating structures that remain in place for multiple generations—to ensure their fortunes cascade down to children, grandchildren, and beyond undiminished by wealth-transfer taxes,” the report explains.

Some U.S. states, such as South Dakota, have even changed their laws on dynasty trusts to attract wealthy residents, as Chuck Collins of the Institute for Policy highlighted last year.

The new report notes that U.S. lawmakers aren’t planning to address the issue, even if the Senate passes a version of a House-approved package:

The Build Back Better (BBB) legislation now before Congress—otherwise a vehicle for significant progressive tax reform—does nothing to directly reverse this toxic accumulation of dynastic wealth. Moreover, some dynasty trust reforms that were included in the bill passed by the House Ways and Means Committee in September 2021 were stripped out before the House voted on the measure in November.

The BBB bill needs full support from Senate Democrats to pass. Sen. Joe Manchin (D-W.Va.)—one of the primary reasons the legislation hasn’t reached President Joe Biden’s desk—said Tuesday that it is “dead.”

However, Americans for Tax Fairness still uses the whittled-down BBB package to illustrate just how much money wealthy Americans can hoard for their families in the years ahead thanks to the U.S. tax system.

“The tax savings for the richest families could be about $8.4 trillion over the next 24 years or so if the current 40% estate tax rate remains in place,” the report states. “That’s the equivalent of more than four Build Back Better plans costing $1.75 trillion each over 10 years.”

The report adds that “about half of the $8.4 trillion is equivalent to the cost of the expanded child tax credit, which was included in the House-passed BBB bill and is estimated to reduce childhood poverty by 40%, for 24 years at $160 billion a year.”

“This hoarding of wealth is inexcusable,” declared the report’s principal author, Bob Lord, who practiced estate law for 30 years before joining Americans for Tax Fairness as tax counsel.

“The BBB legislation now before the U.S. Senate should be amended to close loopholes in the three components of America’s wealth transfer tax system: the estate, gift, and generation-skipping tax,” he asserted. “Effective reforms have already been developed—all that’s needed is for Congress to recognize the urgency to act now.”

The group’s new analysis and call for action come after Americans for Tax Fairness estimated last month that the 10 wealthiest billionaires in the United States have become approximately $1 billion richer collectively every day of the Covid-19 pandemic.

Wednesday’s report contains a warning about that group of ultra-billionaires, mentioning by name Amazon’s Jeff Bezos, Facebook’s Mark Zuckerberg, and Elon Musk of Telsa and SpaceX.

“As much as familiar fortunes have blossomed in the low-regulation, low-tax, wealth-worshiping environment of the previous 40 years,” the report says, “the next 40 and beyond could see the rise of economic dynasties that will make the old money look small.”

Along with closing dynasty-trust tax loopholes, Americans for Tax Fairness urges reforms that would “curb the year-to-year accumulation of wealth in existing trusts.” Specifically, it calls for a new income-tax bracket “on undistributed trust income in excess of $250,000 that is five percentage points higher than the maximum income-tax bracket for individuals.”

Noting a proposal from Sen. Elizabeth Warren (D-Mass.), the group also encourages U.S. lawmakers to “impose an annual 2% wealth tax on the portion of a dynasty trust’s holdings that exceed $50 million, and an additional 1% on dynasty trust accumulations in excess of $1 billion.”

“The choice is clear,” according to the report. “We can fix our broken estate and gift tax system and stop the concentration of an ever-larger share of America’s wealth inside enormous dynasty trusts, or we can trust our democracy to a handful of trillionaire trust fund babies.”

“Fortunately, we know what needs to be done,” the report concludes. “The sole remaining challenge is to summon the courage to stand up to the holders of dynastic wealth and their enablers.”

Originally published on Common Dreams by JESSICA CORBETT and republished under a Creative Commons license (CC BY-NC-ND 3.0)

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Climate Solutions, News, Observation, Politics

Top US Banks and Investors Responsible for Nearly as Much Emissions as Russia, Report Finds

Above: Collage by Lynxotic, Original Photo by Unsplash

“Wall Street’s toxic fossil fuel investments threaten the future of our planet and the stability of our financial system and put all of us, especially our most vulnerable communities, at risk.”

Fueling fresh calls for swift, sweeping action by President Joe Biden and financial regulators, a report published Tuesday reveals that if the planet-heating pollution of the 18 largest U.S. asset managers and banks is compared to that of high-emissions countries, Wall Street is a top-five emitter.

“Financial regulators have the authority to rein in this risky behavior, and this report makes it clear that there is no time to waste.”

The new report—entitled Wall Street’s Carbon Bubble: The global emissions of the U.S. financial sector—was released by the Center for American Progress (CAP) and Sierra Club. The analysis was done by South Pole, which replicated an approach it used earlier this year for a U.K.-focused effort commissioned by Greenpeace and the World Wide Fund for Nature (WWF).

Though likely a “gross underestimate,” as Sierra Club put it, because the analysis relies on public disclosures that exclude key data, the researchers found that “just the portions of the portfolios of the eight banks and 10 asset managers studied in this report financed an estimated total of 1.968 billion tons CO2e based on year-end disclosures from 2020.”

Putting that CO2e—or carbon dioxide equivalent, which is used to compare emissions from various greenhouse gases—figure into context, the report notes:

  • If the financial institutions (FIs) in this study were a country, they would have the fifth largest emissions in the world, falling just short of Russia;
  • Financed emissions from the 18 institutions covered in this report are equivalent to 432 million passenger vehicles driven for one year;
  • Financed emissions from the eight banks studied in this report are equivalent to 80 million homes’ energy use for one year; and
  • Financed emissions from the 10 asset managers studied in this report are equivalent to three billion barrels of oil consumed.

The banks analyzed are Bank of America, Bank of New York (BNY) Mellon, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, State Street, and Wells Fargo.

The asset managers included are BNY Mellon Investment Management, BlackRock, Capital Group, Fidelity Investments, Goldman Sachs Asset Management, JPMorgan Asset Management, Morgan Stanley Investment Management, PIMCO, State Street Global Advisors, and the Vanguard Group.

When Wall Street is factored into the list of the world’s top 10 countries responsible for the most annual greenhouse gas emissions, it falls after China, the United States, India, and Russia but ranks ahead of Indonesia, Brazil, Japan, Iran, and Germany, according to Climate Watch data.

As the new publication warns:

The findings of this report make clear that the U.S. financial sector is a major contributor to climate change. Given that the indirect emissions of the U.S. financial sector are just below the total emissions of Russia, it should be considered a high-carbon sector and treated as such. Therefore, if President Biden and his administration do not put in place measures to mitigate U.S.-financed emissions, the United States will almost certainly fall far short of its targets to achieve a 50% to 52% reduction from 2005 levels in 2030 and net-zero emissions economy-wide by no later than 2050.

The implications of falling short would be dire. Continued unfettered emissions supported by the financial industry would mean that the deadly wildfires, droughts, heatwaves, hurricanes, floods, and other extreme weather events that Americans and communities around the world are already experiencing will only become worse, and efforts to mitigate emissions will only become more challenging and costly.

Representatives from the groups behind the report echoed its call to action in a statement Tuesday.

“Climate change poses a large systemic risk to the world economy. If left unaddressed, climate change could lead to a financial crisis larger than any in living memory,” said Andres Vinelli, vice president of economic policy at CAP. “The U.S. banking sector is endangering itself and the planet by continuing to finance the fossil fuel sector.”

Vinelli added that “because the industry has proven itself to be unwilling to govern itself,” regulators including the U.S. Securities and Exchange Commission and Office of the Comptroller of the Currency “must urgently develop a framework to reduce banks’ contributions to climate change.”

Ben Cushing, Sierra Club’s Fossil-Free Finance campaign manager, agreed that “regulators can no longer ignore Wall Street’s staggering contribution to the climate crisis.”

“The U.S. banking sector is endangering itself and the planet by continuing to finance the fossil fuel sector.”

“Wall Street’s toxic fossil fuel investments threaten the future of our planet and the stability of our financial system and put all of us, especially our most vulnerable communities, at risk,” he said. “Financial regulators have the authority to rein in this risky behavior, and this report makes it clear that there is no time to waste.”

The report comes as financial institutions worldwide face mounting criticism for their contributions to the climate emergency—including at the COP26 climate summit in Scotland last month—and as the Koch-funded American Legislative Exchange Council (ALEC) is pushing model legislation that opposes fossil fuel divestment.

More than three dozen climate advocacy groups argued Monday that “what ALEC claims to be discriminatory action”—referring to divestment from major polluters—”is instead prudent action to ensure the stability of our financial system and economy.”

“We know from the Great Recession that the financial sector won’t take responsibility,” the organizations noted. “It’s up to regulators to protect people from the impact on climate and financial risk of fossil fuel investment.”

Originally published on Common Dreams by JESSICA CORBETT and republished under a  Creative Commons (CC BY-NC-ND 3.0)

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Climate Solutions, News, Observation

To Avert ‘Uncontrollable Climate Chaos,’ Scientists Tell Biden to Stop Backing Fossil Fuels

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“When scientists across the U.S. are imploring the president to get the country off fossil fuels, it’s time to listen.”

With an open letter expressing “the utmost alarm about the state of our climate system,” over 330 scientists on Thursday urged President Joe Biden to declare a climate emergency and swiftly put an end to a fossil fuel-based energy system.

“When scientists across the U.S. are imploring the president to get the country off fossil fuels,” said Dr. Shaye Wolf, climate science director at the Center for Biological Diversity, “it’s time to listen.”

The letter—an effort organized by biologist Dr. Sandra Steingraber and climate scientist Dr. Peter Kalmus along with advocacy groups Center for Biological Diversity and Food & Water Watch—frames the current moment as a “time of peril” that must be met with “emergency action.”

Other initial signatories include Dr. Robert Bullard, known as the father of environmental justice, and climate scientist Michael Mann, director of the Earth System Science Center at Pennsylvania State University.

A three-step action plan is presented in the letter, beginning with a full ban on any new fossil fuel leasing and extraction on public lands and waters; no future permits for related infrastructure; and ending fossil fuel exports and subsidies.

Biden must also declare a climate emergency, the letter says, through which a chunk of the nation’s vast military spending would instead be directed to fund renewable energy projects and the crude oil export ban would be reinstated.

As a third key step, the president needs to reject fossil fuel industry schemes, such as carbon capture and storage, that the scientists frame as “delay tactics” that ultimately “impede the rapid transition to renewable energy.”

The first two in the trio of demands mirror those set out by the People Vs. Fossil Fuels mobilization, which is set to kick off next week.

“U.S. scientists are done speaking calmly in the face of inaction,” Steingraber said in a statement in which she expressed solidarity with the upcoming mobilization.

She also urged the president to follow through on a key campaign vow that his support for pipelines like the Dakota Access and Line 3 has betrayed.

“President Biden,” said Steingraber, “listening to science means acting on science. It means stopping new fossil fuel projects, opposing industry delay tactics, and declaring a national climate emergency.”

The scientists warned that “our chances for avoiding irreversible and uncontrollable climate chaos diminish daily.”

“We implore you, on behalf of and for the love of all life on Earth,” they added, “to respond to the greatest threat ever to face our species and lead the transition away from fossil fuels that humanity desperately needs.”

Originally published on Common Dreams by ANDREA GERMANOS and republished under a Creative Commons License (CC BY-NC-ND 3.0).

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Business, Climate Solutions, News, Observation

‘Enough Is Enough’: Report Shows Big Oil’s Offshore Tax Loopholes Cost US at Least $86 Billion Per Year

“We continue to bankroll the very fossil fuel companies responsible for the climate crisis, then wonder why our planet is on fire.”

A new report released Wednesday identifies $86 billion worth of offshore tax loopholes that a dozen U.S.-based oil and gas companies exploit each year as part of a “tax bonanza,” a finding that comes as climate justice advocates push Congress to eliminate subsidies to the fossil fuel industry.

“Our government cannot continue to bankroll climate destruction,” Friends of the Earth tweeted Wednesday.

The report (pdf), compiled by Friends of the Earth, Oxfam America, and BailoutWatch, reveals the consequences of “two esoteric provisions in the tax code worth tens of billions of dollars to Big Oil’s multinational majors,” including ExxonMobil, Chevron, ConocoPhillips, and other polluters most responsible for the climate emergency.

As a result of the GOP’s 2017 tax law, corporations that drill overseas benefit from special treatment under the Global Intangible Low-Tax (GILTI) framework, which covers Foreign Oil and Gas Extraction Income (FOGEI).

The Treasury Department estimates that repealing the Trump-era exemption for FOGEI would raise $84.8 billion in revenue from just 12 companies that are currently eligible for the carveout, the report notes.

“It is unfortunate but not surprising that the handful of companies benefitting from these loopholes are lobbying to protect their special treatment.”
—Chrive Kuveke, BailoutWatch

Another corporate handout, the so-called dual capacity loophole, is “a longstanding gimmick” wherein fossil fuel giants “artificially inflat[e] their foreign tax bills” to evade U.S. taxes.

Although they are permitted to claim tax credits for taxes paid to foreign governments, U.S. companies are not allowed to do so for non-tax payments such as royalties. 

“In practice, however, the categories often are commingled—particularly when companies make a single combined payment including both taxes and fees,” the report explains. “A foreign country may even try to disguise non-tax payments as a tax, knowing that in many cases a multinational company may receive a foreign tax credit from its home country. Existing regulation gives dual capacity taxpayers vast latitude to assert what portions of their payments are taxes eligible to offset U.S. tax bills.” 

Eliminating the dual capacity loophole would raise at least an additional $1.4 billion, according to the Biden administration, while the Joint Committee on Taxation puts the figure somewhere between $5.6 billion and $13.1 billion. The report points out that “the estimates vary so widely in part because we have precious little visibility into Big Oil’s payments to governments—and that’s just how the companies want it.”

“As Democrats propose closing loopholes to help cover the cost of their $3.5 trillion reconciliation package,” the report states, “these obscure subsidies present a rare chance to act on climate, fund infrastructure, and promote tax fairness in a single stroke.”

While the House Ways and Means Committee’s markup of the Build Back Better Act includes a tax reform proposal that would reverse the FOGEI carveout and the dual capacity loophole, it would leave intact at least $35 billion in federal subsidies for domestic fossil fuel production—despite President Joe Biden’s call to phase out polluter giveaways over a decade.

House Democrats’ failure to stop showering Big Oil with public money—a move supported by a majority of people in the U.S. and many, though not all, Democratic lawmakers—has drawn progressives’ ire.

“The House bill made a decent start by targeting Big Oil’s international tax loopholes, but it went nowhere near far enough,” Lukas Ross, Climate and Energy Justice program manager at Friends of the Earth, said Wednesday in a statement.

Senate Majority Leader Chuck Schumer (D-N.Y.) “needs to lead on climate and ensure that all $121 billion in fossil fuel subsidies are repealed in the final package,” Ross added.

According to Daniel Mulé, policy lead for Oxfam’s Extractive Industries Tax and Transparency project, “U.S. Big Oil companies like Exxon and Chevron have fought tooth and nail to keep the payments they make to governments around the world a secret, while paying lip service to the global movement for payment transparency.”

“This secrecy,” said Mulé, “has a potential tax impact in the U.S. as well, as it makes it all the more difficult to discern if U.S. oil and gas companies are illegitimately inflating their foreign tax credits.”

The report draws attention to several legislative proposals that would do away with subsidies for domestic fossil fuel production as well as tax exemptions for foreign extraction, including:

The report was released the same day members of the Congressional Progressive Caucus urged House leaders to include a repeal of domestic fossil fuel subsidies in the Democrats’ Build Back Better Act.

“Instead of creating jobs,” the progressive lawmakers wrote, the subsidies “widen the profit margin of fossil fuel companies.”

The report emphasizes that fossil fuel champions—including the Exxon lobbyist who was caught on camera discussing how the company benefits from offshore tax loopholes and intends to further undermine climate action—are fighting hard to preserve billions of dollars in taxpayer-funded handouts.

“Big Oil isn’t going quietly,” said Chrive Kuveke, an analyst at BailoutWatch. “Since Biden became president, it is unfortunate but not surprising that the handful of companies benefitting from these loopholes are lobbying to protect their special treatment.”

Originally published on Common Dreams by KENNY STANCIL and republished under Creative Commons.

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Breaking News, Crypto

Crypto Crash on Bitcoin Day knocks $420 Billion off at Dip

Above: Photo by Michael Krahn on Unsplash with elements added by Lynxotic

Coming after a frenzied run-up the hand wringing is no surprise

On the big El Salvador day for Bitcoin to go live, for the first time as legal tender, naturally there were glitches. And the predictions for crypto in general and Bitcoin in particular to surge on the news were, backwards.

The longstanding stock market adage “buy on rumor, sell on news” once more proved itself as what is now being called a “crypto flash crash” knocked around $400 billion off the market cap of the previous 24 hour period, or almost 12%, as per CoinMarketCap at the time of this writing.

The president of El Salvador announced that his government used the dip to buy an additional 150 Bitcoin, above the 400 he had announced on the previous day, bringing the total to 550.

From CoinMarketCap:The global crypto market cap is $2.07T, a 11.91% decrease over the last day

  • The total crypto market volume over the last 24 hours is $227.12B, which makes a 66.15%increase. 
  • The total volume in DeFi is currently $30.41B, 13.39% of the total crypto market 24-hour volume. 
  • The volume of all stable coins is now $179.83B, which is 79.18% of the total crypto market 24-hour volume.
  • Bitcoin’s price is currently $46,893.62.
  • Bitcoin’s dominance is currently 42.55%, an increase of 1.17% over the day.

By 3:30 PM ET on Tuesday Bitcoin bounced back, the “discount” ended, for now, and recovered to around $47,000 after dipping to $42,870. The recent highroad been $52,732, with the all time high from April still intact above $63,000.

I many ways it seems as if Bitcoin and Cryptocurrencies appeared suddenly in 2021 out of the head of Zeus. Protean and fully formed, with billions and trillions in market caps, and all your sisters, brothers, cousins and even the Uber driver climbing aboard.

And the FOMO blog posts, where every hour an innocent reader is assaulted by a story, perhaps true, perhaps exaggerated and certainly foolhardy in retrospect, of an innocent putting their life savings into Dogecoin and suddenly having, theoretically, huge gains at their disposal.

Meanwhile, craggy faced, ancient stock market mavens would interject famous last words that now appear to be wise. However, all that notwithstanding, this week’s crash is nothing new or unexpected.

In reality, as can be seen from the graphic below, provided by Visual Capitalist, there have been so may crashes / corrections and doomsday prognostications since 2012 in Bitcoin that it seems like a miracle the there’s any thing such as Crypto at all.

There’s a reason it’s not dead and it’s in the DNA

The resiliency, far from a shock to those that have been around more than a fortnight, is kinda the point. When Satoshi Nakamoto built the system architecture of Bitcoin and since then inspired the over 8000 new crypto entities that have been developed, it was, just like the internet itself that was build to survive WWIII, supposed to be as indestructible as possible.

Like physical gold, which is considered have been adopted as a store of value partly due to its indestructibility and immutability (alchemy notwithstanding) the volatility and sometimes violent-seeming life story of Bitcoin is a necessary adjust to its role in finance, commerce and even individual monetary survival.

Not for the faint of heart, perhaps

While the mainstream and those forces opposed to the adoption or survival of Bitcoin and Crypto are out in force pointing to the “unsuitability” of Bitcoin and other cryptocurrencies for any “legitimate” use as a trade or savings vehicle, the progress so far, in spite of the obvious fact that volatility has always been baked in to the situation, is an obvious refutation of that viewpoint.

Will the current drop in dollar values relative to Bitcoin end it’s popularity and strip it of the respect it has thusfrar earned among many? In a word, no. In essence what is happening is, as many have foretold, what happens often and repeatedly, the excess attention and dollars that were pumped into crypto by you brother, sister, cousin and Uber driver are now getting blown out, since those were more speculation and psychosis than any kind of vote for viability or permanency.

And, why not? Where was to concern, shock and hesitation by the masses when the prices seemed to only rise for weeks and even months across so many products and coins it was impossible to keep count? Why was to feeding frenzy and the mania-like piling on not ignored as an anomaly?

The herd does as the herd will do. Diamond hands and Paper hands will ebb and flow as long as the rivers flow to the sea and humans herd like buffalo. And, in all likelihood, dollars and euros and yen will be long forgotten when the last bitcoin is transferred to the final wallet in the sky.

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Lynxotic does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Breaking News, Business, Crypto, Observation

Bitcoin Nation? El Salvador is first to make it Legal Tender

El Salvador has officially legalized bitcoin as legal tender (alongside the U.S. dollar which is the country’s current national currency) starting today; September 7, 2021.

The day before the big day, President Nayib Bukele announced El Salvador had purchased 200 Bitcoins and later in the day confirmed that “we now hold 400 bitcoins”.  Given the current market prices, the country’s recent bitcoin purchases amount to roughly $20.8 million.  

In June this year, El Salvador’s Congress voted 62 out of 84 votes to establish the crypto coin as legal tender. This will make the small country is Central America the first in the world to recognize bitcoin as an official form of currency.

In a subsequent tweet Bukele’s translated tweet said 

Like all innovation, the process of #Bitcoin in El Salvador it has a learning curve. Every road to the future is like this and not everything will be achieved in a day, or in a month.

 But we must break the paradigms of the past. El Salvador has the right to advance towards the first world.

-President of El Salvador – Nayib Bukele

Bitcoin climbed nearly 2% to more than $52,680 as of Sept 6, and according to a market analyst with Reuters the cryptocurrency is on track to reach $56,000.

Salvadorians will now have the ability to use the digital coin in exchange for goods and services, and as an accepted form of tax payments by the government. Bitcoin is actually the second legal tender in El Salvador, with the US Dollar also having that status since 2001.

Upon its adoption, users who register with the country’s government supported Bitcoin wallet called Chivo will be awarded with $30 worth of currency pre-loaded (must have a Salvadorian national ID number). 

The overall impetus for legalizing bitcoin officially is, according to experts, that savings that will be possible for citizens to receive remittances – transfers, until now in US dollars, without intermediaries and the large fees they charge for international transfers.

Remittances account for more than 20% of GDP for El Salvador – mainly in the form of dollars sent by the approximately 1.5 million ex-patriots living abroad and wiring payments to families in El Salvador.

Western Union, for example, handles these transactions and charges a hefty fee. And those fees would represent a percentage (for small remittances up to 10%) of $5.9 Billion per year that flows into the small country from abroad, mostly from the United Stated, according to World Bank data.

Although there has been a lot of political rhetoric and expressions of opinion against the move, such an obvious adversary as the international wire transfer interests, like Western Union, and the large income from fees that may begin to dry up starting today, could easily explain at least a portion of the well represented opposition opinion.

That being said, the now famous price swings of Bitcoin do represent a real risk for people hoping to transfer directly into the country. Another risk is losing the coin due to lack of experience handling a digital currency, by people who are more likely to know the feel of paper dollars than digital screens, cryptocurrency exchanges and virtual wallets.

For observers, both crypto adherents and detractors, this is a very important opportunity to see what kinds of practical obstacles will arise and what benefits are realized by the El Salvadoran people.

It is also a kind of warning to those in governments, including in the U.S., that hope to stop Bitcoin’s seemingly inexorable rise, and to prevent what they perceive as threats to the public, and perhaps, to the U.S. dollar’s previously unchallenged hegemony.

The news that 400 Bitcoins were purchased by El Salvador was, naturally seen as a positive by the Bitcoin trading community, and there has been speculation of further pricing strength likely continuing going forward.

On the utopian dream side, various experiments have recently been announced related to Bitcoin and crypto. For example, in El Salvador there are emerging plans to make Bitcoin mining a state run operation with power being supplied by geothermal energy drawn from the country’s volcanos. How’s that for cheap, renewable resources?

A town in the U.S., fittingly called Cool Valley, MO has a mayor who recently announced that the city government is considering making payments to all residents of 1000 in Bitcoin. In this case, the idea behind the plan is to give citizens a crypto nest-egg, and the holders would be barred from selling, with the hope that, in the event the currency continues its exponential climb, the residents would benefit from holding it as an appreciating capital asset.

Which leads to the observation that, over the last few years, a fog of confusion appears to hang above the media regarding coverage of cryptocurrencies.

Price speculation is off the charts and there’s a kind of mania afoot. But the biggest confusion seems to come from one simple truth, that the U.S. dollar has gone only in one direction for more than 100 years, since the Federal Reserve was established in December 1913, down.

Against any measure of buying power for goods and services the dollar is continuously worth less, far less, on a yearly basis.

Although many headlines scream “Crypto and Bitcoin are Worthless” the same could be said of the U.S. dollar, in relative terms, against a basket of goods and services which is the traditional measure of “inflation” and against other assets, for example, now that Bitcoin provides a second measuring tool, dollars are worth less over time against bitcoin.

With prominent people and companies around the world and in the U.S. already supporting the idea of Bitcoin and Cryptocurrencies with their dollars and by choosing to hold crypto, it will be very interesting to see what transpires as these “currency wars” mutate and expand around the globe.

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Breaking News, Observation

The Golden Trump (Statue) Fiasco has Just Begun

Video

Just when you thought it couldn’t go lower dept.

https://video.twimg.com/ext_tw_video/1365483668723105793/pu/vid/1280x720/Jd47DaRpQnu5E4OM.mp4?tag=10

Clearly there is something going on here and it seems blazingly obvious to everyone except those gathered to partake. The Conservative Political Action Conference (CPAC) of 2021 began in Orlando, Florida on Friday. And nearly straight away this thing grabbed the show by the horns (above).

Or at least the Twitter reaction and meme factory was impressed. For all the wrong reasons. The four years of the “former guy” were hard to live through for sane people. But it is becoming more and more apparent that those that reveled in those times were not just angry political weirdos but, possibly, certifiable.

First was the warning from the Chief of the Capitol Police that pro-former-guy and right wing militia members were plotting to set bombs, literally, off at the Capitol to coincide with Biden’s upcoming State of the Union Address.

“We know that members of the militia groups that were present on January 6th have stated their desires that they want to blow up the Capitol and kill as many members as possible with a direct nexus to the State of the Union.”

Capitol Police Chief Yogananda Pittman

Now, as the always bizarre anyway CPAC conference convenes they decide to set up a Gold-calf worship statue and parade it around for the faithful.

Another seems to think BigBoy Burgers had something to do with the statue’s origin:

As long as the bible is in play one twitter user pointed out the obvious sins of the clown-father:

On a more somber note:

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Breaking News, Business, Tech

Jeff Bezos will step down as Amazon CEO: will Exec Chair position allow remote control?

All signs point to continued involvement, or?

Founder and CEO of Amazon, Jeff Bezos has announced he will step down and become executive chairman.  Andy Jassy, the current cloud computing chief, will become the next CEO stated for the third quarter. 

Read more: Spacex’s Starlink Broadband Speed Goal just went into the Stratosphere

During the pandemic and recent holidays, Amazon with its warehouses open, recorded sky-high profits reaching quarterly sales over $100 billion.

Read More: Amazon declines to join Google, Facebook and Microsoft in French “Tech for Good Call”

Based on a memo posted for Amazon employees, Bezos noted:  “As Exec Chair I will stay engaged in important Amazon initiatives but also have the time and energy I need to focus on the Day 1 Fund, the Bezos Earth Fund, Blue Origin, The Washington Post, and my other passions.”

Read more: Apple’s Tim Cook: ‘A social dilemma, cannot be allowed to become a social catastrophe’

Or:

Though his Exec Chair position may mean that very little changes going forward, based on the challenging prospects for the huge and much criticized firm it may indeed signal the end of an era.

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Observation, Stock Market

Opinion: With Trump in the Rear-view we are shifting to the Economy, Corona and Climate

The wheels are already spinning towards new challenges brought on by Trump’s actions

With so many challenges facing the US and, in many ways the entire world, even as the bizarre political drama recedes, it may be hard to find even a moment of neutral footing before the next crisis phase begins.

In fact it is in the most “positive” areas, endlessly touted as a triumph, where the first fireworks could be set off. Although many believe that the stock market is in a bubble phase, as extreme if not more extreme than either the “dot-com crash” of 2000 or the real estate collapse on 2008, this is truly the first time a bubble was inflated during a time when a triple threat – political, medical and climate emergencies, was in various phases of unfolding at the same time.

But it’s the forth “leg”, the lone bright spot as it has seems, that could carry a very big danger. With the pandemic still not showing any signs of abating, although there are vaccines being distributed, and the political madness of 2020 looking to begin to fade (at least partially), it is the possibility that the stock market bubble finding it’s “pin” that could trigger the next challenge to Biden and the country as a whole.

Perhaps the various stimulus funds being planned for dissemination can postpone any reckoning for at least a few months, but if that is not the case the situation could become extremely dangerous very quickly.

How the current stock market climate compares to 1999 and 2007

Looking back at the history of both of those bubble-crash cycles there are some notable differences. But there are far more similarities. All the various sentiment metrics and herding behaviors are present in forms, just as extreme, potentially more so.

The actual peak may be in the future, as SPAC entities are joining with traditional VCs to ride the avalanche of FED funds flooding into the money supply.

As was the case in 1999 there’s a momentum – a reflexivity as George Soros termed it, that begins as a smooth wave and eventually a tsunami of self-perpetuating belief in the absurd.

That moment could already have come and gone, it’s only in retrospect that the over-heated irrational exuberance becomes obvious to all. Perhaps the folly of WeWork will be the pastor child, or perhaps something that is just now happening.

Once the tsunami hits the shore, however, it will make landfall on an already devastated geography. After four years of corruption and devastating lock-downs (underplayed just enough to extend the misery) and so many challenges and messes to clean up, there will be a shock to the financial system that is unlike anything seen in 2000 and 2008.

A trillion plus dollar bail out after several (three?) have already been set in motion for other rescues and attempts to reinvigorate the economy, will be a hard and dangerous method to use, although it “worked” in the first two bubble-crash scenarios.

The big picture may look endless grim but the hope is in the change

Without a doubt the one thing that would like arise from such a nightmare scenario, similarly to the pandemic and the climate crisis, is that deep and irreversible change on a massive scale will be needed to begin a new phase of recovery.

Just as there’s a “bottoming out” that has to happen when a person finally confronts addictions and other self-destructive behaviors, humankind as a whole will be forced to make severe and lasting changes in order to overcome what will seem like an escalation of woe, at precisely the moment that a happy, sunny return to “normal” is anticipated

While all of this sounds dire, there are few today, who are paying attention, who would not say that massive change is needed. In politics, in business, in the economy, in healthcare and, of yes, in our response to existence level threats such as the climate crisis, we need, more than anything else to change.

Perhaps a downturn in a fantasy filled stock market bubble is just the pin prick that we need to wash away the negative trends of the past and begin from a new perspective that recognizes just how different our organizing principals need to be, as a species, in order to not only survive, but to do so in abundance.

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AI, Cutting Edge, Tech

2021 CES will be an all Virtual Conference and you can View it too

Video

 Zoom panels, product unveilings all to take place while you have no pants

This year CES2021 is scheduled from Monday January 11-14. It’s a bit later than usual due to lot and lots of strange things happening in the world, and, oh yes, cause they had to shrink it into a phone-sized screen, or at least a zoom-panel for your desktop.

While attempting to put a happy face on it all the exhibitors described it thusly: ”an all-digital experience connecting exhibitors, customers, thought leaders and media from around the world. The new format will allow participants to hear from technology innovators, see cutting-edge technologies and the latest product launches, and engage with global brands and startups from around the world.“

In all seriousness if you want to check out the new gadgets, trends and progress you can now attend without “borrowing” somebodies pass who had to leave a day or two early. Wuuhuu! An infinite virtual exhibit hall will be replacing the 3 million square feet of actual exhibition space, but the more than 100,000 attendees will not be renting rooms in Vegas.

Or getting room service on the company tab, or watching pay-per-view from same said tab. Which is all not great for Vegas – but there will be better news next year – we hope seriously and sincerely.

As for this year let’s try to get the hang of this whole virtual thing! There are almost 2,000 exhibits for 2021 CES, to see the in detail, check out CES exhibitor list.

We can recommend, for those who will not register as an official attendee to view the action on CNET’s livestream. They’ll be broadcasting all day on Monday, Jan. 11 and you can follow along for press conferences, product reveals, a CES keynote presentation and expert commentary from the editors and hosts.

At least one special treat for attendees will be iHeartMedia’s exclusive performance by Billie Eilish as part of CES2021:

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Breaking News, Observation, Politics

NBC Data might show that PPP Loans were Given to Trump & Kushner affiliated firms

Above: Photo Collage / Lynxotic

Nixon once asserted: “Well, when the president does it, that means that it is not illegal”. The implication was not lost on Trump who has seemingly flaunted the law throughout his life and then appeared to shift into overdrive once in the White House. 

Naturally, as has been evident as well, also even boasted “I don’t pay taxes because I’m smart”, and when money, especially free money gained at the expense of the less fortunate, it seems Trump and his “Jr. partner Jared Kushner might indeed pull out all the stops. 

Therefore, it comes as no surprise that, once details on who received pandemic relief loans were revealed by the Small Business Administration, including the PPP or Paycheck Protection Program, multiple businesses linked to both were allegedly present.

NBC news: Over 25 PPP loans worth more than $3.65 million were given to businesses with addresses at Trump and Kushner real estate properties, paying rent to those owners. Fifteen of the properties self-reported that they only kept one job, zero jobs, or did not report a number at all.

—NBC News

While there have been many reports of fraud and abuse related to this and other pandemic relief programs, most stories on these were slanted towards shaming various individuals who had engaged in fraud to obtain the loans. 

There were also numerous accounts of, in some cases, public companies with access to billions in capital applying for and receiving $100s of millions of dollars in forgivable loans. Names like Shake Shack, Ruth’s Chris, Potbelly Corp. and others were embroiled in controversy when some information leaked, and in some cases the companies, fearing public boycott or backlash, returned funds. While these examples show no specific wrongdoing on any particular company, the appearance of impropriety is nevertheless in question.

Now with more data the headlines are expanding to include potential impropriety , if not possible criminal action of Trump and Kushner seen as bilking the program at will, as well as massive and tragically-comical mismanagement of the “relief” funds with 100s of examples such as loans payed to companies that did not supply a name and many larger companies using multiple subsidiaries to gang together groups of smaller loans into sums totally tens of millions or more. 

According to NBC, All these tricks and potentially more were employed (surprise!) by Trump and Kushner affiliated firms. 

NBC: Sweeping [analysis of] data released by the Small Business Administration…found that properties owned by the Trump Organization as well as the Kushner Companies, owned by the family of Jared Kushner, President Donald Trump’s son-in-law and senior adviser, profited from the program.

NBC News

The potential abuses, beyond the obvious one that this money was meant to relieve business not connected to government officials, and those who’s business were damaged by the pandemic in general, followed a pattern where the money flowed to those that needed it least (due to massive wealth, such as stories that have circulated about Kanye West) or due to already having existing access to nearly unlimited capital (such as the public companies that lined up to access relief funds rather than use billions they had in reserve).

Other examples of Trump allegedly using and exploiting the presidency are so common as to make it almost redundant to cite these massive, and if true, unethical and potentially criminal abuses. So many have already been noted and cited in the press – from the profits flowing into his properties directly from taxpayer dollars or by diverting foreign officials to them, tax cheating, dirtying money to his daughter and son-in-law, on and on it goes. 

The only question that remains is why there appears to be “no-one home” when it comes to holding Trump and his family of abusers accountable. Much has been made of his soon-to-be gone immunity from federal prosecution, but what about the family? Pardons and tra-la-la? 

That can’t be the way this ends. Otherwise the rest of us are just as corrupt by letting it happen without a response of appropriate magnitude. 

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Books, Business, Economics, Stock Market

Looming Economic Collapse and Ways to Prepare; Historic Echos and Warnings

Photo Collage / Book Publishers

2008 and it’s Aftermath was a Wake Up Call that was Heeded by Virtually No-one

There are many good films on the economic collapse of 2008 (The Big Short is a favorite), also known as “The Great Recession” for fear of using the “D” word. Books too have opined on the lessons learned and, in some cases, taken dubious credit for the “rescue” of the world economy.

Read More: Conspiracy Theories are gaining adherents like never before: where’s the Reality?

Watched or read closely, these books, with the exclusion of the self-congratulatory ones mentioned above, all point to a sobering conclusion: the underlying issues that nearly led to a protracted worldwide economic collapse were not solved or fixed but “the can was simply kicked further down the road”.

Unfortunately, they also agree that “further down the road”, currently around 11 years later, translates to “soon”. Accordingly, we’d all be wise to revisit the 2008 crisis and read some of the conclusions, in detail, that have been drawn from a deeper study of the remaining and very serious issues faced as we go further forward into the 2020’s.

So much of our destinies are tied to economics, it is always a wise area to begin to look for solutions to all macro-dilemmas 

Of course, now, in a crowded life-raft of a planet, we also have the rising threat of Climate Change, the ongoing and terrifying challenges associated with global pandemics and sociopolitical trends, that point towards anything but harmonious co-operation, within and between societies around the world. 

All the more reason to embrace what at times appears to be the lone bright spot, in this saga of seemingly-endless doom and gloom: we have educational resources available and the modern marvel of human-networked-communication devices (a.k.a. the internet and the software and hardware we use to access it), is becoming a more powerful ally by the hour. 

Here are books we highly recommend to start your journey towards your heroic contributions to finding solutions and hope, as we look to the future:

The Great Devaluation: How to Embrace, Prepare, and Profit from the Coming Global Monetary Reset

Click here to see “The Great Devaluation”
and help Independent Bookstores.
Also available on Amazon.

The Great Devaluation is the #1 bestselling book that explains why the real crisis facing the world today is not the Coronavirus. The real crisis facing the world is explosive government debt and deficits. Governments are now left with no choice but to spend more than they make, borrow more than they can ever repay, and devalue their currencies to cover it all up.

Former Hollywood storyteller Adam Baratta brings monetary policy to life in this follow-up to his national bestseller, Gold Is A Better Way. You’ll learn how and why Federal Reserve polices have facilitated an explosion in government debt and have systematically undermined the world financial system in the name of profit. The result? An out of control system where financial inequality has become a ticking time bomb set to blow up the global economy. Click here to see “The Great Devaluation” and help Independent Bookstores. Also available on Amazon.

Crashed: How a Decade of Financial Crises Changed the World

Click here to see “Crashed”
and help Independent Bookstores.
Also available on Amazon.

We live in a world where dramatic shifts in the domestic and global economy command the headlines, from rollbacks in US banking regulations to tariffs that may ignite international trade wars. But current events have deep roots, and the key to navigating today’s roiling policies lies in the events that started it all–the 2008 economic crisis and its aftermath.

Despite initial attempts to downplay the crisis as a local incident, what happened on Wall Street beginning in 2008 was, in fact, a dramatic caesura of global significance that spiraled around the world, from the financial markets of the UK and Europe to the factories and dockyards of Asia, the Middle East, and Latin America, forcing a rearrangement of global governance. With a historian’s eye for detail, connection, and consequence, Adam Tooze brings the story right up to today’s negotiations, actions, and threats–a much-needed perspective on a global catastrophe and its long-term consequences. Click here to see “Crashed” and help Independent Bookstores. Also available on Amazon.

Manias, Panics, and Crashes: A History of Financial Crises, Seventh Edition

Click here to see “Manias, Panics, and Crashes”
and help Independent Bookstores.
Also available on Amazon.

This seventh edition of an investment classic has been thoroughly revised and expanded following the latest crises to hit international markets. Renowned economist Robert Z. Aliber introduces the concept that global financial crises in recent years are not independent events, but symptomatic of an inherent instability in the international system.

Covering such topics as the history and anatomy of crises, speculative manias, and the lender of last resort, this book puts the turbulence of the financial world in perspective. Click here to see “Manias, Panics, and Crashes” and help Independent Bookstores. Also available on Amazon.

The Fed and Lehman Brothers: Setting the Record Straight on a Financial Disaster

Click here to see “The Fed and Lehman Brothers”
and help Independent Bookstores.
Also available on Amazon.

The bankruptcy of the investment bank Lehman Brothers was the pivotal event of the 2008 financial crisis and the Great Recession that followed. Ever since the bankruptcy, there has been heated debate about why the Federal Reserve did not rescue Lehman in the same way it rescued other financial institutions, such as Bear Stearns and AIG. The Fed’s leaders from that time, especially former Chairman Ben Bernanke, have strongly asserted that they lacked the legal authority to save Lehman because it did not have adequate collateral for the loan it needed to survive.

Based on a meticulous four-year study of the Lehman case, The Fed and Lehman Brothers debunks the official narrative of the crisis. It shows that in reality, the Fed could have rescued Lehman but officials chose not to because of political pressures and because they underestimated the damage that the bankruptcy would do to the economy. The compelling story of the Lehman collapse will interest anyone who cares about what caused the financial crisis, whether the leaders of the Federal Reserve have given accurate accounts of their actions, and how the Fed can prevent future financial disasters. Click here to see “The Fed and Lehman Brothers” and help Independent Bookstores. Also available on Amazon.

Too Big to Fail: The Inside Story of How Wall Street and Washington Fought to Save the Financial System–And Themselves

Click here to see “Too Big to Fail”
and help Independent Bookstores.
Also available on Amazon.

Brand New for 2018: an updated edition featuring a new afterword to mark the 10th anniversary of the financial crisis. The brilliantly reported New York Times bestseller that goes behind the scenes of the financial crisis on Wall Street and in Washington to give the definitive account of the crisis, the basis for the HBO film.

In one of the most gripping financial narratives in decades, Andrew Ross Sorkin–a New York Times columnist and one of the country’s most respected financial reporters–delivers the first definitive blow-by-blow account of the epochal economic crisis that brought the world to the brink. Through unprecedented access to the players involved, he re-creates all the drama and turmoil of these turbulent days, revealing never-before-disclosed details and recounting how, motivated as often by ego and greed as by fear and self-preservation, the most powerful men and women in finance and politics decided the fate of the world’s economy. Click here to see “Too Big to Fail” and help Independent Bookstores. Also available on Amazon.

Crash of 2008 and What It Means: The New Paradigm for Financial Markets

Click here to see “The Crash of 2008“
and help Independent Bookstores.
Also available on Amazon.

In the midst of one of the most serious financial upheavals since the Great Depression, George Soros, the legendary financier and philanthropist, writes about the origins of the crisis and proposes a set of policies that should be adopted to confront it.

Soros, whose breadth of experience in financial markets is unrivaled, places the crisis in the context of his decades of study of how individuals and institutions handle the boom and bust cycles that now dominate global economic activity. In a concise essay that combines practical insight with philosophical depth, Soros makes an invaluable contribution to our understanding of the great credit crisis and its implications for our nation and the world. Click here to see “The Crash of 2008 and What it Means” and help Independent Bookstores. Also available on Amazon.

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Entertainment

In a blow to the future of live cinema – Regal shutting down all U.S. 536 theaters

Struggling cinemas may not survive the impact of the pandemic

On Thursday, October 8th, Regal Cinemas­— the second largest movie theater chain in America­—will be shutting its doors to audiences. This occurs as British parent company Cineworld deems the market far too unstable for its theaters to continue operating through the pandemic.

Read More: ‘Wonder Woman 1984’ showcases New Trailer during the virtual DC FanDome event

Cineworld owns 536 theaters in the United States and 127 in the UK. All of them will be closed indefinitely by the end of the week. According to the New York Times, these closures will impact 40,000 employees in the U.S. and over 5,000 in Europe. 

Many theaters have been holding on for dear life since COVID-19 arrived this year. Most were forced to shut their doors in April and have only reopened within the past couple months— notably for the release of Christopher Nolan’s “Tenet.”

While “Tenet” should have been a blockbuster hit, though, the $200 million budget film only managed to earn $300 million at the box office. Evidently, even if the theaters are open, audiences are still tepid about returning to the cinema.

Read More: Covid-19 Documentary Exposes still more inside details of Trump’s failure to contain the Pandemic

Simultaneously, “Tenet’s” underperformance showed studios that they remain better off waiting to releasing their films or moving them onto other platforms. Unfortunately, this means a shortage of product for the theaters.

The dominos are falling with Bond as the last straw

Non-coincidentally then, Cineworld decided to close up just days after MGM delayed the release of its 25th James Bond movie, “No Time To Die.” This is the second time the film has been pushed back, as it was originally billed for this Spring, but was delayed until November, and now won’t see the screen until next April.

In fact, almost all of the 2020 blockbusters have seen perpetual delays. Warner Brother’s “Wonder Woman: 1984” was supposed to come out earlier this year, but is now aiming for a Christmas release. Likewise, Marvel’s “Black Widow” was meant to be a summer sensation, but now sits on the backburner until 2021. Meanwhile, Disney’s “Mulan” went straight to the company’s streaming site, for the premium price of $30 on top of the monthly subscription fee.

Clearly, “No Time To Die” was simply the straw that broke the camel’s back for Cineworld.

According to The Hollywood Reporter, Cineworld had already lost $1.6 billion in the first half of 2020. Now, on top of moviegoer’s concerns about COVID, there is not enough exciting content to get people into the cinema.

Perhaps people would risk going to the movies to see a new James Bond, Marvel, or DC film, but with these releases being continually postponed, staying open becomes a major and unrewarding gamble for theater owners.

Part of the struggle may also be tied to a reticence to consider theaters amongst other indoor businesses that warrant reopening. New York City and Los Angeles, for example, provide a huge portion of domestic audiences, but their respective government officials have been nervous about letting people return to the cinema. Without such hubs being operational, ticket prices will inevitably fall short of expectations.

As of right now, there is no telling when Regal Cinemas might reopen, or if other theater chains will follow in its footsteps. All of that depends heavily on how the country and its leaders deal with the coronavirus.

https://youtu.be/Wemdq9-cfws

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