Category Archives: Banking

The Politics Of Division And Deception.

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For many years, the GOP has used so-called “social” issues, such as proposed anti-abortion legislation and “sanctity of marriage” laws to divide the voting populace and fire up their base. The Democratic Party has focused on issues like social safety nets, minimum wages and availability of health care. And the debate has left our government largely paralyzed.

In some ways, arguing about the issues that divide the rank and file of the two political parties is akin to rearranging deck chairs on the Titanic. It’s not that the issues aren’t important. But compared to other issues, they are mere distractions…the political equivalent of a con artist bumping your shoulder while picking your pocket.

The con artists are working for large, multinational corporations and the very wealthy. In order to grow and thrive, these companies need two things: A plentiful supply of natural resources and cheap labor. Over the course of history, those needs have led the wealthy to finance exploration, nations to build wide-ranging empires, and corporations to destroy collective bargaining movements.

Following World War II, the desire for access to oil, rubber, timber, tin and other resources led the British, the US and the Soviet Union to attempt to divide much of the world culminating in the Cold War. The desire to acquire resources led us into conflicts in the Caribbean, Central America, South America, the Middle East and Southeast Asia. It was the cause of the Spanish-American War, the war with Japan, the war in Vietnam, and the war in Iraq. It led our CIA to orchestrate the overthrow of elected leaders in Brazil, Chile, El Salvador, Honduras, Indonesia, Iran, Iraq, Nicaragua and elsewhere.

Similarly, the need for cheap labor led mining companies to create company stores and to build entire towns designed to trap workers into becoming hopelessly obligated to the owners. It caused companies to hire thugs to brutally beat striking workers. It led to shooting wars between corporate interests and labor unions. More recently, it led corporations to move factories to Southern “right-to-work” states then on to Mexico to China to India, Pakistan and Sri Lanka.

The executives behind these actions aren’t evil. They’re just doing business. They claim that it’s not their responsibility to worry about social or environmental problems. They believe that their only responsibility is to increase the return on investment for shareholders by decreasing costs and increasing productivity. To them, picturesque mountains merely cover the precious minerals they covet. Pristine forests are merely the lumber needed for construction. Impoverished people in distant lands are simply motivated laborers.

And so it goes.

While we argue over the debt ceiling, corporations and billionaires quietly park their profits in off-shore tax havens then lobby for a tax “holiday” that will allow them to bring the money home at greatly reduced tax rates. While we argue over extending unemployment benefits, corporations lobby for more subsidies and government giveaways. While we argue over food stamps, corporate agribusinesses pocket billions in taxpayer funds. While we argue over Social Security retirement benefits, too-big-to-fail financial institutions steal trillions from 401ks, IRAs, pension funds and foreclosed homes. At the same time, all of these corporations continue to lobby for reduced government regulation and oversight.

It is because of our inattention that a mere 85 individuals now own as much wealth as half of the world’s population…the equivalent of the populations of China, India, the United States, Indonesia and Brazil combined. It’s why unemployment has grown and why most salaries have not. It’s why a few corporations now control most of our food supply. It’s why those same corporations are able to poison the food supply in search of ever larger profits. It’s why the incidence of chronic disease has skyrocketed despite government-funded technology and research that give us the ability to end it. It’s why our climate is rapidly changing while we continue to subsidize the companies responsible for changing it.

As long as we focus on the distractions instead of the actions, things will only get worse.

Affluenza: Too Rich To Jail.

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The young Texas boy who was given probation for killing four pedestrians and critically injuring two of his companions while driving drunk is less the exception than you may think. Certainly, his defense of pleading guilty to being a spoiled brat is unique. But the end result was not. Instead of going to jail, the Texas youth will be forced to suffer the indignity of attending a $450,000/year California treatment program complete with martial arts lessons and private chef. The horror!

Fact is, the rich and the privileged have always received special treatment.

Likely, most of us can recall at least one incident when someone in our school or community was treated differently because his or her family had money or knew the “right” people. It might have been an athlete before a big game. It might have been the child of a community leader who got a grade they hadn’t earned. Those kinds of things are bad enough. But when they extend to our justice system?…

There are people from poor communities who received life sentences for petty, non-violent crimes while the Wall Street goons who stole trillions from homeowners and investors received six and seven figure bonuses. (Most have not even faced charges, and likely never will.) While the poor rot in prison after being caught with crack cocaine, the rich caught snorting powder cocaine are released with a fine and probation…or sentenced to a spa-like treatment center. Many of the wealthy have even gotten away with murder thanks to their highly-paid “dream” teams of attorneys and consultants.

In some cases, the perps don’t even have to be rich to receive special treatment. After finally being indicted for shooting an unarmed boy, George Zimmerman was allowed to get away with murder thanks to his team of lawyers paid for by the gun lobby.

Of course, the same kind of special treatment extends to large corporations.

After it was determined that a Koch refinery carelessly spilled aviation fuel into the ground water and tried to cover it up, the company was fined…wait for it…a sum equal to less than one day’s net profit from the refinery. And, while BP was forced to pay more than $42 billion for the Gulf oil disaster, a US district court ruled that the company originally responsible for the leak and ensuing explosion, Halliburton, will not have to share in the costs. (It wouldn’t have anything to do with Halliburton’s connection to former V.P. Richard “The Dick” Cheney, would it?)

I guess money and influence can buy happiness, after all. Obviously, they can buy special treatment.

The Tao Of Politics.

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I am not a Taoist. Nevertheless, I have learned that the philosophy of Taoism has much to offer. The Taoist concept of Yin and Yang holds that nothing is ever entirely black or white; hard or soft; good or bad. Taoism teaches that good people can do bad things. It also teaches that those we consider bad can, on occasion, do good things.

This is particularly true as it pertains to politics.

For example, I know many who are otherwise caring, loving people who would deny food, shelter, health care and other human necessities to the unfortunate simply because their Republican Party preaches personal responsibility. They have become convinced that the poor are merely taking advantage of those of us who have been successful. They want to believe that the majority of the poor are lazy. Such thinking allows them to look the other way when they see someone who is in desperate need of help.

They cannot conceive that someone can work hard and still struggle to feed their families because they are underpaid by large, greedy corporations. They falsely believe that minimum wage jobs are entry level jobs that are the first step up the economic ladder. In past times, that may have been true. But in today’s economy, with many of our high-paying jobs now shipped offshore, for many people, the economic ladder has been pushed aside by greedy corporate executives.

Many Republicans refuse to accept that the American Dream no longer exists for many people; that the US is not the land of opportunity it once was; that no amount of hard work can pull many of the unfortunate out of poverty; that the US now has less upward mobility than most of the rest of the industrialized world.

As a result, many good Republicans cheered when the federal government cut $5 billion from the annual budget of SNAP (food stamps) – an amount equal to all of the charitable organizations in the nation (501c4 “charities” such as American Crossroads and FreedomWorks, not included). The same people who would gladly give food and money to a family member or neighbor are still clamoring to cut another $4-40 billion from SNAP at a time when 1 in 6 Americans and 1 in 4 American children are dealing with hunger.

These grinches are not bad people. They are simply uninformed or misinformed.

These champions of personal responsibility and faith are convinced that social safety nets are not only unnecessary. They believe that social programs are creating a culture of dependence. They believe that the minimum wage, labor unions and government regulation are threats to our economy.

They believe that subsidies and giveaways to large corporations are good. But that subsidies and giveaways to people are bad. Why? If it’s true that corporations are people, shouldn’t they both be treated equally? If a half dozen banks are considered too big to fail, shouldn’t group consisting of millions of poor Americans also be considered too big to fail?

Taoism teaches that all things are part of a greater whole – the great Tao – and that if you harm another, in reality you harm yourself. Caring Republicans would be wise to keep that in mind.

How Small Of A Government Is Small Enough?

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For years, Republicans have demanded a smaller government with limited powers. Indeed, Grover Norquist has said, “I want to shrink it down to the size where we can drown it in the bathtub.’

Okay, I get it. Republicans really hate government. But given the fact that our federal government is already the smallest in 47 years, and given that the size of our federal government ranks just 120th in the world as a percentage of GDP, when will Republicans consider it small enough to drown in the proverbial bathtub?

Exactly how small is small enough?

Roughly a third of all US federal employees are dedicated to national defense. Another 10 percent are in the Department of Homeland Security created by the Bush administration following 9/11. Yet another 10 percent are in law enforcement and prisons. According to Republicans, all of these people are necessary. In fact, Republicans constantly call for increasing the size of our military and border security!

That leaves roughly half of all federal employees to manage all of the remaining functions of government. Of those, nearly half work for the quasi-governmental US Postal Service. Do we no longer need mail service? If not, who is going to deliver your bills, your payments, your magazines, your checks? (Not everyone has access to the Internet, and it has not yet proven to be secure.)

The remaining 600,000-plus federal employees manage all other aspects of government. So what goes? Do we get rid of the IRS which collects the revenue to run our government? If so, how does the government get the money it needs to operate? Do we actually expect it to run on private donations?

Do we eliminate Social Security, Medicare, Medicaid and food stamps? Then what happens to the elderly and the poor? Do we eliminate unemployment insurance? Then what happens to those who can’t find work?

Do we eliminate our federal court system? Do we eliminate our foreign embassies?

Do we eliminate government regulators? Then who becomes responsible for food safety, drug safety and transportation safety? Who keeps banks from taking all of our money and causing a complete collapse of our economy? Who keeps corporations from defrauding our citizens, pillaging our land, dumping industrial waste into our waters and poisoning our air? Who builds our highways? Who keeps hunters, fishermen and commercial interests from “harvesting” species into extinction? Who keeps corporations from clear-cutting our forests? Who subsidizes research and our universities?

It’s one thing to say that government is too big and out of control. It’s quite another to face the reality of living in a plutocracy with corporations and the greedy allowed to completely run amok.

GOP Put “Obamacare” Tantrum Above Infrastructure And Jobs.

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In March of this year, President Obama called for Congress to approve a $21 billion package designed to update our crumbling infrastructure and create jobs. “Let’s get this done. Let’s rebuild this country we love. Let’s make sure we’re staying on the cutting edge,” Obama said, calling for a “partnership to rebuild America.”

As part of the package, Obama proposed creating an infrastructure bank to help seed major projects. In addition, his proposal would invest $4 billion to support the Transportation Infrastructure Finance and Innovation Act (TIFIA) designed to leverage private and non-federal funding for projects of regional or national significance through loans, loan guarantees and lines of credit. The proposal also called for tax incentives meant to support state and municipal bonds for infrastructure modernization projects. The president noted that both the U.S. Chamber of Commerce and labor unions back infrastructure spending.

It was met with indifference by Republicans in Congress.

Speaker John Boehner questioned how such projects would be funded. “It’s easy to go out there and be Santa Claus and talk about all the things you want to give away, but at some point somebody has to pay the bill,” he said.

Keep in mind the cost of the package was $21 billion…$3 billion less than Republicans and their Tea Party parasites squandered by shutting down the government for 16 days! Who’s going to pay that bill?

Wait! I already know the answer. If the GOP follows it’s usual protocol, the money will be taken from food stamps, kids and the working poor.

Do NSA Revelations Actually Surprise Anyone?

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Ever since Edward Snowden announced that the National Security Agency is collecting phone and email records of US citizens before skipping the country, many in the media and in Congress have expressed surprise and outrage.

Really? How could anyone be surprised at this invasion of privacy?

Since the late nineties, there has been an explosion of surveillance cameras on city streets and in public buildings across the country. Large firms have been working on various forms of customer recognition since at least the mid-eighties. First, we saw the “smart” card – a credit card with a computer chip containing a wealth of personal information about the person carrying it. Then we saw efforts to “read” the magnetic strips on credit cards as you enter a store. And, following 9/11, Congress passed the Patriot Act giving the government sweeping powers to prevent terrorism.

Now, according to a story on CBS’ 60 Minutes, we are nearing an era of facial recognition which will allow governments, retail stores and other institutions to use security cameras to identify people from mug shots, driver’s licenses, passports and other forms of identification. Add to that the information already being collected by the three major credit agencies, along with the GPS feature in your cell phone and your car, and almost no aspect of your life will be private. Even your activities in the bedroom are potentially vulnerable to hackers through your computers, cell phones and smart TVs.

By comparison, that makes the activities of the NSA seem a lot less threatening doesn’t it?

Betrayal Of Public Trust.

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Now that Michigan’s GOP governor has forced the City of Detroit into bankruptcy, it’s expected that retired city workers will have to settle for a fraction of the pensions they were awarded under contract.

As a result of the expected bankruptcy settlement, many of the retirees may be forced to file bankruptcy themselves and find jobs to make up for their lost pensions. The governor and his supporters responded to that news by saying that’s what bankruptcy does. It forces all creditors to settle for the same percentage of their claims.

This is a complete reversal of the GOP position regarding the failure of the too-big-to-fail banks. Back then, many GOP leaders argued that the very executives whose decisions led to the banks’ failure should not be denied the multi-million dollar bonuses that were written into their six and seven-figure contracts.

But many of those same GOP leaders now argue that city workers who had been paid salaries as little as $19,000/year should agree to voiding their contracts as part of the bankruptcy. These contracts were the result of negotiations with city managers during which they agreed to give up short-term salary gains in lieu of a secure retirement.

Indeed, long-term retirement benefits have always been the incentive for taking government jobs over equivalent jobs in the private sector. Taking away or reducing the pension payments after the fact is not only a violation of the workers’ contract. It’s a complete betrayal of public trust. The natural outcome of such a violation will be to make government workers at every level demand higher salaries knowing that they will no longer be able to trust governments to live up to their obligations.

We have long known that we can’t count on corporations and private companies to live up to their promises. But we should be able to count on our governments to live up to theirs.

Stop & Frisk Old White Men.

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Since dimwits like Bill O’Reilly think the NYC Stop & Frisk program is so great, I propose it be redirected for a year or so. Instead of targeting minorities, let the police target white guys around Wall Street. After all, they have been responsible for far greater crimes than minorities, having stolen trillions of dollars over the past 30 years.

The bad guys are easy to spot. Instead of hoodies, they wear expensive suits and lounge in the back of black limos.

I, for one, would love to see them forced to spread their legs and arms, patted down and asked what they’re doing in the neighborhood and where they’re going. Then, if they object, they could be slammed to the ground, cuffed and taken to jail to be booked for obstructing an officer in his, or her, duties. Let them be held overnight and assigned a public defender (no overpaid Wall Street attorneys allowed).

Just for good measure, the police should also patrol the neighborhood of Fox News. After all, it has been the center of crimes against reality and facts. And don’t forget to include balding, angry white guys in the profile. Then they would be certain to catch O’Reilly in the dragnet.

Seriously, why not?

It would do the nation a lot of good, and it would almost certainly put an end to other senseless, racist measures. And as long as we’re on the subject let’s force cavity searches or similarly invasive procedures on all white male legislators. That might give them pause before voting for more mandatory invasive procedures on pregnant women.

Finally, let’s limit voting centers and voting hours in wealthy white neighborhoods forcing voters to stand in line for six, seven, eight hours or more. Then when they eventually get to the head of the line, they could have their IDs questioned and given a provisional ballot that may or may not be counted.

What Happened To Creativity?

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After the conclusion of the past TV season and viewing the latest sample of so-called blockbuster (emphasis on bust) movies, I must conclude that creativity in the US is either dead or on life support.

As a former advertising creative director, for the first time since the early 1960’s, I ignore most of the commercials. It seems that most US commercials are bland compared to their international counterparts. It’s not for lack of budget. Large US advertisers are literally throwing money at production and getting little in return. That’s because the ideas are mostly formulaic and stunted by research.

Much of the TV programming is worse than the advertising. Except for HBO, “Reality” TV has replaced comedy and drama. We have Survivor, Big Brother, Storage Wars, Swamp People, Here Comes Honey Boo Boo, The Apprentice, The Amazing Race…ad nauseum. Unfortunately, there appears to be no end in sight for the dumbing down of American TV (hard to imagine it could get worse that the vast wasteland of the 60’s and 70’s). Because reality TV is cheap to produce, some industry insiders are predicting the end of scripted television.

Our movies are no better. Hollywood has abandoned stories in favor of bombastic production. Most of the movies are devoted to disasters of one kind of another. Those that aren’t, are remakes of old classics. The reason?  Lynda Obst, in her book Sleepless in Hollywood, argues that the movie industry is driven by foreign demand. She says that foreign movie sales now account for 80 percent of all movie income; that movies with complex stories relying on dialogue simply don’t draw movie audiences in Europe and Asia. As a result, American movie-goers are forced to suffer through movies that are long on action and short on story. Of course, that fits into the video game psyche of American youth.

To my mind, these industries are only indicators of a distressing lack of creativity throughout the US. More and more, we’re falling behind other nations when it comes to creativity and invention. Now that the hedonistic yuppies of the 80’s are running our corporations, we’re good at making money. But not much else.

Hedge fun managers are creative in finding new ways to rip off unsuspecting investors. Mortgage lenders are creative in finding ways to foreclose on homes. Multinational corporations are creative in avoiding taxes, increasing productivity while cutting costs, and socializing their financial losses.

I believe the US won’t reclaim its leadership role until we, once again, value products, design and people over profits; creativity over productivity; customer service over sales; and craftsmanship over cost-cutting.

Until then, we can watch our nation’s demise on our screens in 3D and HD.

The Dismal State Of Our Union.

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Upon listening to the last day of Neal Conan’s Talk of the Nation on NPR, I was surprised by Ted Koppel’s response when asked about the future. Turns out, Koppel shares many of the same concerns as I do. For what it’s worth, here is a compilation of my own views of the current state of our union and its future.

Civil Rights – How depressing that people are still struggling for civil rights nearly 150 years after the end of slavery! The Supreme Court ruling on the Voting Rights Act was a huge setback, unleashing red states to suppress minority votes.

Abortion – Although abortion was made legal in 1973, women are still fighting to wrest control of their own bodies from the old men who control our political system. Amazingly, women are now forced to fight for access to contraception!

Environment – Most Americans say they’re concerned about our environment. They just don’t act like it. Most refuse to sacrifice anything on behalf of our planet’s future.

Hunger – In the richest nation on Earth, 50 million people are unsure of where they’ll get their next meal. That includes 17 million American children!

Energy – Nearly 40 years after President Carter had solar panels installed on the White House, we’re still addicted to fossil fuels. We spill more oil than most other countries use.

Healthcare  – The dirty secret is that we have no healthcare system. We spend more than twice as much as other advanced nations, yet achieve worse outcomes. And we spend more on pharmaceuticals than the rest of the world combined.

Wall Street – Greed has turned large banks into high stakes casinos. Their gambling habit not only cost individuals and pension plans trillions…many families lost their homes. Yet any attempt to regulate these banks has been undermined by millions in lobbying efforts.

Income Disparity – The US ranks among the world’s worst nations for income inequality. 400 Americans control more wealth than half of our population, and the gap is growing. Yet Republicans believe that 47 percent are sponging off the rest!

Jobs – Simply put, we don’t have enough of them. And far too few of them pay enough to support a family. Corporate leaders and politicians, on the other hand, each make enough to support dozens of families.

Privatization – We’ve privatized prisons, prison healthcare, schools, our military, even our intelligence efforts. Although all of these efforts have proven to cost more than publicly run institutions, Republicans are pushing for even more privatization.

Pensions – We lost tens of thousands of employee pensions over the past 40 years, replaced by IRAs and 401Ks which were originally intended to supplement defined benefit pension plans. The money once used for employee benefits now lines the pockets of CEOs, executives and investors.

Politics – Our politics have continued to move to the right, even though our population hasn’t. When Republicans are in control, they unabashedly cram through partisan legislation. When Democrats are in control, they tentatively nibble around the margins instead of doing what they were elected to do. Both parties rely on large corporations to finance their political campaigns.

Tea Party – This is a relatively small group that has had a large impact. Based on lies and meanness, it seems its goal is to take us back to the 16th Century.

Surveillance – Following 9/11, we traded privacy for increased security. The NSA tracks records of our phone calls, search engine terms and emails. Banks and credit card companies track our purchases. And surveillance cameras are everywhere.

Guns – While the NRA works to increase the availability of guns, even for criminals and the mentally ill, manufacturers make guns ever more lethal.

Education – Thanks to conservatives, public education is underfunded and teachers are woefully underpaid. Enough said.

Science – Many now claim that evolution is merely a theory. But so is gravity! Of course, these people also deny man’s affect on climate change. (See education.)

Religious Intolerance – Islam is not the only religion with extremists. The intolerance of all religions seems to be growing.

Anger and Pettiness – Within 20 years of the end of the Fairness Doctrine, 91 percent of talk radio was conservative…mean, angry, venomous Rush Limbaugh-style conservative… and it’s getting worse. (See Tea Party)

War – There’s no denying it. The US absolutely LOVES war. We glorify soldiers and their war machines with military-style ceremonies and flyovers at nearly every large event. And we spend hundreds of billions on “defense” to build bigger, badder war toys.

Iraq – Iraq cost us trillions of dollars and thousands of lives. The result of our sacrifices is that we have turned Iraq into a vassal state of radical Iran.

Afghanistan – Despite setting a deadline for withdrawal, there is no clear outcome for this war. We may leave the country no better off than it was when we arrived.

Syria – Yet another opportunity to dive into a war with no real reason or plan. But it is a war and some of our politicians don’t want to be left out.

War on Drugs – This “war” may have ruined more lives than the drugs themselves. It disproportionately affects minorities, filling our prisons to overflowing. Indeed, we have a larger prison population than any other nation.

Militarization of Police – As our soldiers return from war, they’re increasingly hired by police departments. As a result, police become ever more militarized…with assault weapons and assault vehicles…and further removed from ordinary citizens.

Journalism – In the 1980’s, TV networks began measuring the success of their news organizations by ratings which instantly sensationalized the news and created the “sound bite.”  Worse, most news groups have lost their independence as they were gobbled up by conglomerates.

With all this, it’s difficult to be optimistic about the future, but the pendulum may soon swing the other way. I hope so.