Showing posts with label corporate accountability. Show all posts
Showing posts with label corporate accountability. Show all posts

Sunday, September 12, 2010

The Heart of Corporate Darkness


By STEPHEN MARTIN, Counterpunch

'Mistah Kurtz, he dead'
Joseph Conrad, Heart of Darkness.

It really is so very difficult to attempt to understand what is going on in the World today, though perhaps the point as made by Karl Marx; that the priority is not to understand the World but to change it is valid - and we certainly live in time of change - sense of 'Sic Transit Gloria Mundi'?

This small article seeks to examine what amounts to Political horror; that horror which is Corporatism become synonymous with 'Ecocide', and describable as 'Heart of Darkness'.

These small quarters write as a 'Prole', sense of George Orwell's abbreviation of 'Proletariat'; and it is certainly the case that Orwell had a sublime consciousness. His concept of 'Inner Party, Outer Party and Prole' holds approximate sense of Gini Co-efficient today in most parts of the Western World - as does his vision of 'Geopolitical Power Block' as 'supra National'; sense of 'Eastasia, Eurasia and Oceania', express prescience?

The Proletariat, and indeed the 'Lumpenproletariat' or 'Proletariat in rags', are growing in number daily in the Western World given the shrinkage of the middle classes under the onslaught of Economic Depression - and are increasingly liable to be viewed as 'superfluous' accordant the growth of power of 'Inner Party' as 'Masters of the Universe' or '?bermenschen'?

'Population Control' is a euphemism as can be employed by 'Philanthropists' who see themselves as '?bermenschen', and to whom 'Genocide' concerning the elimination of 'Prole' as '?ntermenschen' is but only a further step along the Corporate line in an Orthodoxy demanding seeing others as less worthy of Life - and as to be so 'constrained'?

So it goes.

It is a questionable proposition that the engineering of an Economic Depression constitutes Population Control?

The horror!

These small quarters write expressive of a psychophysical consciousness which is reflective of a neurophysiological integration, involving an 'anamnesis' as put by Socrates, and within context of a 'Paradigm' as would be determined by Empiricism. It is ultimately through Empiricism that Corporatism as an Orthodoxy has been spawned, much along the lines of 'Dialectic' as enumerated by Marx concerning relationship to means of Production determined by Science as a fruit of Empiricism - as it is also through same Empiricism as paradigm Corporate that a mere Prole is not 'meant' to use words such as 'psychophysical' or 'neurophysiological' - as Orwell in his concept of 'Newspeak' acknowledged?

The point being made is that the 'Heart of Darkness' is not only 'out there' in Cartesian sense of particular best laid scheme being played with 'matter', but is also 'in here' sense of best laid scheme being played with 'mind'?

The point is also that the 'Inner Party' as Stateless Bastards imposing Orthodoxy for gain 'Utilitarian' have a variety of ways of 'grinding' Man down through the imposition of illusion directed at destroying Hope; or at the very least rendering it capable of being described as 'audacious'?

Asking the 'right questions' in a Panopticon comes with the risk of being 'unintelligible' or labelled 'derogatory' - such the control as they who would have wrong questions asked have attained – never mind the truth that 'hope springs eternal in the human breast' as Pope stated?

The pragmatism of the Corporatist Age in which we currently 'live' will surely be viewed in the future as being 'Dark' as Lichtenberg proposed; and in such illumination the Horror of the Age as illusion imposed will necessarily be faced and recognised for the denial it was?

'Grundrisse' as outlines critique of Political Economy is Marx's prescience concerning the inevitable effects of concentration of wealth as a polarisation of power- and the degeneration of Capitalist Democracy to Corporatism?

That 'History is written by the 'Victorious' was illustrated through alternative interpretation expressing a transcendence of such 'paradigm' by Howard Zinn - as an iconoclast concerning Orthodox American History?

For as there are certain Men as cannot be 'ground down' sense of Illegitimum non carborundum, and who retainthe right to have own opinions, idiosyncratic or offensive as they may be, but whose consciousness constitutes the attempt at 'CounterPunch' against Corporatist illusion in the denial of denial; so there is orthodox propaganda founded in a cynical pragmatic of the materialism which Corporatism has come to represent at the level of hegemony?

Squeezed out to the margins through technologically enhanced Hegemony of Orthodoxy; the narrative of those as are able to refuse reduction to the cynicism of pragmatism and deny imprisonment within the paradigm of illusion yet remains a vital sign of 'Political Life on the Planet' -though there exists an ongoing effort to render such not only 'illegitimate' but 'unintelligible'? Corporatism 'works' by means of invisible restraint as of 'unwritten rule' concerning what is palatable, what is acceptable, what will be 'rewarded' - and in the final analysis what is comprehensible?

As Orwell put sublimely in 1984:

"Don't you see that the whole aim of Newspeak is to narrow the range of thought?… Has it ever occurred to you, Winston, that by the year 2050, at the very latest, not a single human being will be alive who could understand such a conversation as we are having now?…The whole climate of thought will be different. In fact, there will be no thought, as we understand it now. Orthodoxy means not thinking—not needing to think. Orthodoxy is unconsciousness."

For we all exist in a 'cage' do we not, such as 'Yellow Submarine' as song sung of represents 'imprisonment' of sensibilities, and for some such a 'tubular cage' is more constraining, and not just in the singularity of 'One Dimensional Man', as Marcuse put, but also by way of multiplicity; as in the context of 'Realpolitik' the imperative exists of division, as of by way of the Roman maxim which has rationale of 'conquering', by way of illusion become as between 'Republican' or 'Democrat' concerning the power of 'Inner Party' - and as there can be 'cages within a cage'?

The Corporatist Orthodoxy demands a uniformity which has the inevitable developmental line of marginalising Humanity through abrogation of Life as denial of Truth in the propagation of Death - as the acceptance of Lie as an unconsciousness; as in 'no need to think'?

The tragedy of such Darkness' as would be even at 'Noon' sense of Koestler, is that such cage will become ever more confining but yet would be 'unseen' under the illusion which is expressive of 'power of mind over mind'.

The tragedy of America contemporaneous is of the Darkness of a Panopticon, such as the Heart of Corporatism would 'pump up the volume' to point of incapacitating level; as in where Man cannot hear himself or herself think – and so gives up the ghost' concerning the imperative of consciousness?

Concerning Politics as 'moral economics', there is a Manichean aspect; given the acknowledgement of 'morality'?

These small quarters seeing the trend contemporaneous in Western World as being primarily evil, as evident in the infliction of sufferance epitomised by Corporatism.

At present these small quarters can only speak as a 'mushroom' kept in a particular darkness the intent of power of mind over mind. In such darkness there exists as 'foodstuff' a certain kind of 'shit' which defines the demanded illusion of 'geopolitical power block'. The unity of such power block is expressed in the currency, or money which is believed in, and controlled as of the exercise of a hidden taxation - to the 'wetting of the beak' in Mafia parlance by the 'Inner Party' as International Financier?

That 'The Heart of Corporate Darkness' is to be found within a 'Continuity of Memoranda' relating to identifiable horrors is the proposition of this small article.

In mind here is the 'Ford Pinto Memo' as real and demonstrable - and a Memorandum as must exist somewhere concerning the 'Gulf of Mexico', which summates the mechanics of deliberation concerning disaster as a series of pragmatic calculations within an obscene and warped Orthodoxy, realised in the denial of Life?

Increasingly mere 'Proles' such as these small quarters are being 'asked' to 'suspend disbelief' in the face of a crafted illusion which is wreaking 'havoc!', given 'unleashing' of the Corporatist 'Dogs of War'; where 'War', as in the multiplicity concerning context of restraint apropos 'cage' above, is a polymorphous horror: ranging from a wrought Economic Depression with its 'collateral damage' of millions impoverished, to the abuse of military force against Nation with its 'collateral damage' of millions killed, to the destruction of Ecosystem with its 'collateral damage' of millions of lives lost - as considered across a wondrous diversity of species.

America, Iraq and the Gulf of Mexico exemplify respectively.

The horror!, the horror!, the horror!

Yet the manifold forms of Warfare as 'Racket' are not just for Mind, they are ultimately for Soul, such the 'what it is all about' concerning the pump of the Heart of Darkness - as every beat of dark bastard heart leads to further sufferance reflecting breakdown of 'Life'; which in the case of America means making a mockery, to point of tragedy, of the best Political Constitution which the World has yet seen, through the destruction of 'Life, Liberty and the Pursuit of Happiness' evident through impoverishment of the Citizenry - and the diversion, under Orthodoxy, of precious resources to a Military Industrial Complex which projects 'Empire' fearful to point of 'shock and awe' under such pitifully perverse illusion as the imposition of Democracy by force in an Irony far from sublime as the grubby racket it represents by way of expropriation?

The horror!

Americans need not look far to see what such horror as irony means; for every American Citizen reliant on Food Stamp to survive, every American Citizen under threat of foreclosure and homelessness, every American Citizen living in fear of losing livelihood, is a testimony to the Obscenity of the Orthodoxy of Corporatism which would continue to propagate cruel illusion denying the horror of such actuality?

Welcome to the 'Land of the Free and the Home of the Brave' - such the 'Doublethink'?

It is not without meaning that the last two published articles by these small quarters this exemplary Journal of Democracy have ended with one particular extract from the Political Constitution of the United States of America as an understanding of what Corporatism represents way of what it can deny - and what is held to be self evident.

For what is held as self evident these small quarters is the destruction of America by an enemy within as would be unseen; the takeover of power to issue money as a 'permit' being as a fatal blow to Democracy, as cannot be hidden despite the truly expensive efforts of Corporatist illusion to deny what is become so clear as it is so tragic, - and given awareness of the concept of 'opportunity cost'?

It is become inevitable, such the Dialectic as reflecting the mechanics of deliberation as can be epitomised in a Memorandum; and as continuity demands consideration of Memoranda, that in America today there is a tragedy of homelessness, a tragedy of businesses closing, a tragedy of immiseration through impoverishment as unemployment and dependency upon food stamp represents; a tragedy which is of the 'cages within cage' of Corporatism - given the prevalence of fear, almost Universal such context as the beat of a 'Heart of Darkness' inevitably pumps out sufferance form of the destruction of Constitution by way of a Panopticon condemned to destroy Truth?

The horror!

It is a tragedy as would be unseen, unmentionable to the pathological state of 'mind' become dominant which is as Corporatism representing the 'ascendancy' of an Orthodoxy through which an Oligarchic Collective 'survives', as within such 'Gutenbergian Galaxy' become digitised, as per McLuhan, such medium contains a message indeed, and it is fearful as it arises from 'Darkness' - as of 'enough never being enough', such the greed as driven maniacal as abrogative of Humanity - or as Satanic as would destroy the Joy which the 'Gift of Life' represents?

'Less than Zero' such the 'Luciferian Burn' as the avoidable death of People in a Ford Pinto become magnified in the avoidable death of Life in the Gulf of Mexico as vehicle of the 'buy in' to illusion - form of trust extended or as permit granted? It is a tragedy of continuity as in a denouement expressive of the degeneration of 'Citizenry' and 'Democracy' by a 'Coterie' as constitutes Oligarchic Collective; it is a tragedy of the slow but sure strangulation of the breath of Life to the point beyond whimper whence last gasp of despair concerning materialism exists; at the end of the 'day' sense of the termination of the period of sunlight direct, such tragedy is of 'cide' can be summative; as in the ascending scale of obscenity represented by, 'sui, ethno, geno, eco' to such suffix.

Rather than 'side' as within humane context of debate as prefix of 'for' or 'against', the ubiquity of 'cide' as a suffix context of inhumane Warfare is a tragedy of expropriation, arrogation and abrogation, such the sadness that mere Corporatism can eliminate Democracy in the marginalisation of Humanity to point of 'hollow man' become dominant - such the 'patter of rat's feet over broken glass'. -T.S. Eliot was in his own way above and beyond the mechanics of deliberation?

Corporatism is a tragedy because it is unnecessary; because it is an avoidable abrogation of potentiality, because as simply put in colloquial vernacular: 'it don't have to be this way'?

The challenge for Corporatism is to sustain and perpetuate a life denying illusion which calls into ever greater question the ability of Man to refuse to believe the evidence of his or her own eyes. The dynamic or dialectic is of the suspension of disbelief given a growing disparity between the illusion as would be imposed, and the day to day reality for the ever growing Majority as truly suffer 'impoverishment Utilitarian'. Orwell saw within such challenge a form of illusion he described as 'Doublethink', encapsulated within the slogans:

'War is Peace, Freedom is Slavery, andIgnorance is Strength.'

The motivation for adoption of life denying illusion is as simple as the biological 'rationale' for the diversity of parasitical life; it is material gain and the occupation of a comfortable niche with minimal expenditure of effort and provision of return. It is 'survival' as an imperative experienced as 'superseding' the need to speak up, sense of as Neimöller wrote - for all those who give up the right to 'speak up' experience an inevitable execution through joining the 'chorus' of a Moritaten, or 'Ballad of Death' concerning 'consciousness'?

If humble parasites such as leeches could speak and dream, such would tell of Corporatism as a 'rise' above mere hematophagy and the feed upon lifeblood of an individual host; such would tell of money and power and corruption, and control and manipulation towards the end of ever greater expropriation from a greater diversity - as of all other life become as 'host'?

Such a horror of the Necrotrophy as has destroyed the American Dream?

The Ford Pinto Memorandum is a testimony to the mechanics of deliberation which epitomises Corporatism as Orthodoxy. ' It is 'Life', Jim, and just as we have come to know it'' more the horror, such as a 'Trek amongst the Stars' it is not; but closer to the scatological ravings of perverse degenerates such as coprophagiacs become as Hegemony; such the 'existence' for Man when lunatics take over an asylum. Because the reduction of any life to mere dollars and cents in concept of 'worth' is obscene, and reflects a level of perversity to which the sadness of Coprophagia as a state of perverse degeneracy could represent 'improvement'?

The irony being that Corporatists exist on the premise of People 'eating' the shit of Propaganda; sense of illusion being swallowed as Orthodoxy accepted - and evidence of Man as has own eyes denied?

The Ford Pinto Memorandum concerned Corporate product as designed, built, marketed and branded which had a design flaw which meant an increased risk of the product bursting in to flames in a collision. Given recognition of this flaw, some sad bastard of Corporatist Orthodoxy sat down and ran calculations of contingency within margins of levels of confidence, ultimately expressed in levels of 'bottom line' of dollars and cents reaching a conclusion in terms of 'EMV' or 'Expected Monetary Value' concerning 'recall and replace' or 'recompense for fatality/injury' as part of a 'decision tree'. The answer being as History demonstrates, such the discovery of what 'life' can mean in a paradigm of Obscene Orthodoxy.

Every person burned to death - or lucky enough to escape with 'degree of burn' - in such a product of Corporatism contributed to a profit as would be maximised under costs minimised - so the Orthodoxy goes.

The hypothetical 'Gulf of Mexico Memorandum' posits a development of the above horrific obscenity, written by an even sadder bastard than the author of the Ford Pinto Memorandum.

Why sadder?

Because the calculations concerning the ongoing tragedy of 'Deepwater Horizon' would have to reflect an even greater 'incorporation' of diversity of life denied, evidenced in bigger figures concerning dollars and cents, such the scale of obscenity as 'Homicide' can be represented as 'mere' when it comes to 'Ecocide'; such the failure, such the Denial. We are not just talking of children as passengers or drivers as parents burned alive as the Ford Pinto Memorandum 'incorporated'; we are talking of the diversity of species encompassed by an ecosystem 'incorporated' as a cost, sense of dollars and cents, and as can determine the choice between a number of courses of action -where 'denial' is the inevitable outcome of obscene Orthodoxy.

The hypothetical Gulf of Mexico Memorandum represents the 'Big League' of Corporatist Orthodoxy; commensurate with resonance of the illusion as to 'Where has all the money gone?' realising Genocide in an Economic Depression as disastrous illusion become 'Where has all the Oil gone? in an Environmental Catastrophe of Ecocide as illusion would seek to deny – such the 'Too big to fail' premise as the illusion of Corporatism demands the inevitable imposition of sufferance and denial, variant only the prefix of the 'cide', such the obscenity.

But yet the failure of Corporatist Orthodoxy is all too evident, sense of the loss of life, sense of the magnification of expenditure of resources gone in to the support of illusion, sense of the Depression being as denial of Life - and of the Joy which it is as a wondrous gift.

The horror!

To reiterate a point made in a recent article by these small quarters, the drill of Corporatism as an Orthodoxy died in the Gulf of Mexico, and that is not tragic, but long overdue. What is truly tragic is the horror of the sacrifice it has taken to bring about the death of such Orthodoxy as an assassin of consciousness; for it is a sacrifice which many lives, and not just of Man, have yet to 'enumerate' - sense of acknowledgement of Truth as the absence of denial?

Citizens as People of America, particularly in the Gulf of Mexico, are beginning to open their eyes to what this current 'evolutionary trajectory' represents - as they are beginning to see the illusion of Corporatism for what it represents as the denial of Life?

At a pragmatic level given sense of horror reflected in ability to hypothesize, concerning the continuity as of 'Memoranda', what this means for Orthodoxy is that People have to be eliminated – and for People read Citizenry; read Majority; read 'Prole'?

To parallel of a journey to the Heart of Darkness, way of the river of the Mississippi rather than the Congo as in Conrad's Novella, and as in a Memorandum as somewhere exists as parallels 'Ford Pinto Memorandum':

'The Gulf of Mexico. It Dead'

-How such horror expressive of an Obscene Orthodoxy such as Corporatism has come to prevail in a Nation which has a Constitution enshrining:

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights that among these are Life, Liberty and the pursuit of Happiness.

is a right question, as 'they', sense of Inner Party, would have not asked – as they indeed would not have the consequences of such truths as above find meaning in 'Right to Life, Liberty and the pursuit of Happiness'?

As a fact becoming increasingly self evident, such the horror of the pump of the Heart of Corporate Darkness.

The horror! The horror!

-Joseph Conrad's Heart of Darkness is available here, superb example of consciousness concerning horror still unfolding as 'slow violence' of Orthodoxy revealed concerning the Gulf of Mexico is to be found here.

Stephen Martin can be reached at: stephenmarti@yahoo.com

--
Pete
Belief is the death of intelligence--Robert Anton Wilson

Thursday, December 18, 2008

"Bamboozled"

Fed Refuses to disclose recipients of 2 trillion in loans!
Who could have predicted that the Federal Reserve would abuse its authority by giving away over $2 trillion in "emergency loans" and then refuse to disclose the recipients of those loans when faced with a FOIA request by Bloomberg? Bloomberg:
The Federal Reserve refused a request by Bloomberg News to disclose the recipients of more than $2 trillion of emergency loans from U.S. taxpayers and the assets the central bank is accepting as collateral. Bloomberg filed suit Nov. 7 under the U.S. Freedom of Information Act requesting details about the terms of 11 Fed lending programs, most created during the deepest financial crisis since the Great Depression. The Fed responded Dec. 8, saying it’s allowed to withhold internal memos as well as information about trade secrets and commercial information. The institution confirmed that a records search found 231 pages of documents pertaining to some of the requests. “If they told us what they held, we would know the potential losses that the government may take and that’s what they don’t want us to know,” said Carlos Mendez, a senior managing director at New York-based ICP Capital LLC, which oversees $22 billion in assets.
Hmmm... I wonder why they would want to hide from the public who is getting all that money? It's sometimes hard to wrap your head around that huge sum of money, but when all is said and done, that is our money. We deserve to know who's getting it.

Monday, July 14, 2008

Treasury Acts to Shore Up Fannie Mae and Freddie Mac

In this piece from today's NYT, we can see further proof of the truism, "banks are bailed out, people are thrown out". Also on display is corporate socialism, since losses are always socialized - only profits are privatized. How far must it go before it is stopped? We are not powerless.--Pete


July 14, 2008

WASHINGTON — Alarmed by the sharply eroding confidence in the nation’s two largest mortgage finance companies, the Bush administration on Sunday asked Congress to approve a sweeping rescue package that would give officials the power to inject billions of federal dollars into the beleaguered companies through investments and loans.

In a separate announcement, the Federal Reserve said it would make one of its short-term lending programs available to the two companies, Fannie Mae and Freddie Mac. The Fed said that it had made its decision “to promote the availability of home mortgage credit during a period of stress in financial markets.”

An official said that the Fed’s decision to permit the companies to borrow from its so-called discount window was approved at the request of the Treasury but that it was temporary and would probably end once Congress approved Treasury’s plan. Some officials briefed on the plan said Congress could be asked to extend the total line of credit to the institutions to $300 billion.

The actions, which taken together could provide an overwhelming surge of capital to the companies, were the second time in four months that the housing crisis had prompted the government to scramble over a weekend to rescue a major financial institution. Last March, the Treasury Department engineered the sale of Bear Stearns to prevent it from going into bankruptcy and cause a shock to the financial system.

The plan was disclosed on Sunday evening to calm jittery markets overseas and on Wall Street in advance of a debt sale by Freddie Mac on Monday morning. Officials said that after talking to senior lawmakers through the weekend, they expected that Congress would attach the proposals to a housing bill that could be completed and sent to the White House for approval as early as this week.

“The president has asked me to work with Congress to act on this plan immediately,” the Treasury secretary, Henry M. Paulson Jr., said Sunday on the steps of the Treasury building. “Fannie Mae and Freddie Mac play a central role in our housing finance system and must continue to do so in their current form as shareholder-owned companies. Their support for the housing market is particularly important as we work through the current housing correction.”

While senior Democratic and Republican officials in successive administrations have for many years repeatedly denied that the trillions of dollars of debt Fannie and Freddie issued is guaranteed, the package, if adopted, would bring the Treasury closer than ever to exposing taxpayers to potentially huge new liabilities. The two companies could face significant new losses this year as the wave of housing foreclosures continues. Officials seemed to suggest, however, that they had little choice but to intervene.

Over the weekend, Treasury officials sought assurances from Wall Street firms that the $3 billion auction by Freddie Mac of short-term debt would go off without a hitch. While $3 billion is a relatively small sum for an institution of Freddie’s size officials said they did not want to risk even a small misstep that could set off a new round of problems.

The government officials said that the more drastic alternative that has been considered — placing one or both companies under the control of a government-appointed conservator — would be done only as a last-ditch measure if the intermediate steps failed to restore confidence. The failure of just one of the companies could be catastrophic for economies around the world.

The officials said they were prompted to act because, despite repeated assurances by top officials that the companies had adequate cash to weather the current financial storm, Fannie and Freddie suffered a withering blow of confidence last week when their stocks plummeted on the New York Stock Exchange. As a result, Freddie faced an uncertain debt offering on Monday.

The companies, known as government-sponsored enterprises, or G.S.E.’s, touch nearly half of the nation’s mortgages by either owning or guaranteeing them, and the debt securities they issue to finance their operations are widely owned by foreign governments, pension funds, mutual funds, big companies and other large institutional investors.

“G.S.E. debt is held by financial institutions around the world,” Mr. Paulson said in his statement. “Its continued strength is important to maintaining confidence and stability in our financial system and our financial markets. Therefore we must take steps to address the current situation as we move to a stronger regulatory structure.”

The proposal would give the Treasury secretary authority to determine when to invest in the companies or extend loans to them. Those purchases would be made with the agreement of the companies.

Officials said the proposed investment and lending elements of the plan were to last two years.

While the Treasury did not specify the size of the packages, officials briefed on the plan said they were told by administration officials that, to be meaningful, Congress should consider extending the line of credit to the two institutions to $300 billion.

Each company now has a $2.25 billion credit line, set nearly 40 years ago by Congress. At the time, Fannie had only about $15 billion in outstanding debt. It now has total debt of about $800 billion, while Freddie has about $740 billion. Today the two companies also hold or guarantee loans valued at more than $5 trillion, about half the nation’s mortgages.

Lawmakers said that as part of the plan, the administration called on Congress to raise the national debt limit. And it asked Congress to give the Federal Reserve a role in setting the rules for how big a capital cushion each company must hold. Giving the Fed a consulting role in the companies’ oversight is seen as another way to reassure markets.

Initial reaction to the plan by some Congressional Democrats was positive.

An early endorsement came from Senator Charles E. Schumer, the New York Democrat who is also a senior member of the banking committee.

“The Treasury’s plan is surgical and carefully thought out and will maximize confidence in Fannie and Freddie while minimizing potential costs to U.S. taxpayers,” Mr. Schumer said. “While Fannie and Freddie still have solid fundamentals, it will be reassuring to investors, bondholders and mortgage-holders that the federal government will be behind these agencies should it be needed.”

Representative Barney Frank, Democrat of Massachusetts, and one of the authors of the housing legislation, said he supported the Treasury proposal. He said he expected the plan would be included in the housing bill, which he said would be approved, sent back to the Senate and likely land on the president’s desk by the end of the week.

“The general thrust of what they’re doing is right,” said Mr. Frank, the chairman of the House Financial Services Committee.

Senator Barack Obama of Illinois, the presumptive Democratic presidential nominee, told reporters in San Diego on Sunday that any government action to rescue the two mortgage companies should be done from the perspective of homeowners, “not just shareholders and investors and C.E.O.’s of companies.”

His presumed Republican opponent, Senator John McCain of Arizona, said last week that he expected the government would do all it could to prevent the failure of either company.

The administration’s announcement was made after senior officials from the Treasury and the Federal Reserve spent Saturday and Sunday closely monitoring preparations by Freddie Mac to raise money to help meet its short-term financing needs. Officials said they were watching to see if the steep declines last week of Freddie and Fannie stock would spill into the debt market and undermine the confidence of lenders.

A senior official said that the administration had been receiving mixed signals from Wall Street about the Monday auction. But other officials denied that the prospect of a weak debt offering had motivated the Treasury to rush out its rescue plan.

“There is nothing that motivated us to act tonight that changed from Friday night,” said a Treasury official. “There has been no further deterioration in the markets.”

Daniel H. Mudd, the president and chief executive of Fannie Mae, said the company “appreciates today’s announcements and the expressions of support.”

“We continue to hold more than adequate capital reserves and maintain access to liquidity from the capital markets,” Mr. Mudd said. “Given the market turmoil, having options to access provisional sources of liquidity if needed will help to strengthen overall confidence in the market.”

Richard F. Syron, chief executive of Freddie Mac, said, “This affirmation of the important role of the G.S.E.’s, and that we should continue to operate as shareholder-owned companies, should go a long way toward reassuring world markets that Freddie Mac and Fannie Mae will continue to support America’s homebuyers and renters.”

On the prospect that the government could buy shares, Sharon J. McHale, a spokeswoman for Freddie Mac, said, “It’s important to note that our understanding with Treasury is that any agreement to purchase equity can only occur with the mutual agreement of both parties.”

Reporting was contributed by Jenny Anderson and Gretchen Morgenson from New York; Charles Duhigg from Macatawa, Mich.; and David Herszhenhorn and Carl Hulse from Washington.

Monday, June 30, 2008

AT&T Billing Site Jokes About Company's Participation in Warrantless Wiretapping

By , bOING bOING
http://www.alternet.org/bloggers//89872/

By Cory Doctorow

Reid sez, "I, unfortunately, have an AT&T cell phone. I check my bill every few weeks. Today, I went to log in, and was greeted by a terrific new advertisement for their online billing system. It's as if their marketing department thinks that warrantless wiretapping is funny or something. " Link, Link to screenshot

(Thanks, Reid!)

Cory Doctorow blogs at Boing Boing.

© 2008 bOING bOING All rights reserved.
View this story online at: http://www.alternet.org/bloggers//89872/

Thursday, August 16, 2007

Prices for Key Foods are Rising Sharply; Half of Eligible Poor Don't Get Food Stamps

By Kevin Hall and Rob Hotakainen, McClatchy Newspapers
Posted on August 14, 2007
http://www.alternet.org/story/59713/

Prices for Key Foods are Rising Sharply
By Kevin G. Hall

The Labor Department's most recent inflation data showed that U.S. food prices rose by 4.1 percent for the 12 months ending in June, but a deeper look at the numbers reveals that the price of milk, eggs and other essentials in the American diet are actually rising by double digits.

Already stung by a two-year rise in gasoline prices, American consumers now face sharply higher prices for foods they can't do without. This little-known fact may go a long way to explaining why, despite healthy job statistics, Americans remain glum about the economy.

Click for larger version
(click for larger version)

Meeting with economic writers last week, President Bush dismissed several polls that show Americans are down on the economy. He expressed surprise that inflation is one of the stated concerns.

"They cite inflation?" Bush asked, adding that, "I happen to believe the war has clouded a lot of people's sense of optimism."

But the inflation numbers reveal the extent to which lower- and middle-income Americans are being pinched.

The Bureau of Labor Statistics said in its June inflation report that egg prices are 19.5 percent higher than they were in June 2006. Over the same period, according to the department's consumer price index, whole milk was up 13.3 percent; fresh chicken 10 percent; navel oranges 19.8 percent; apples 11.7 percent. Dried beans were up 11.5 percent, and white bread just missed double-digit growth, rising by 9.6 percent.

These numbers get lost in the broader inflation rate for all goods and services, which measured 2.7 for the same 12-month period. Across the economy, rising food prices were offset by falling prices for things bought at the mall: computers, cameras, clothing and shoes.

"All of that stuff is going down in price, but prices for gasoline have gotten higher, and food prices have gone up," said Mark Vitner, a senior economist for Wachovia, a large national bank based in Charlotte, N.C.

People also go to the mall a lot less than they go to the grocery store, so they're constantly reminded that dietary staples are up sharply.

Why are food prices rising?

It's partly because of corn prices, driven up by congressional mandates for ethanol production, which have reduced the amount of corn available for animal feed. It's also because of tougher immigration enforcement and a late spring freeze, which have made farm laborers scarcer and damaged fruit and vegetable crops, respectively. And it's because of higher diesel fuel costs to run tractors and attractive foreign markets that take U.S. production.

The Labor Department's last detailed survey of consumer spending, in 2005, showed that Americans spent about 12.8 percent of their income on food. A bit more than 7 percent of their income was spent on food at home, and 5.7 percent was spent on food away from home.

These percentages suggest that higher food prices, while unwelcome, won't break the bank for most consumers. But for retirees such as Jacqueline Wilson, 60, of Upper Marlboro, Md., rising food and fuel prices take a big bite out of fixed income. "I make every dollar count," said Wilson, outside a Giant supermarket. "I cut back. … I get only as much as I need. I don't buy it because it is 10 for $10, but so that I'm using it and not wasting my money."

Asked about her view of the economy, she answered, "Terrible."

In broad terms, the economy isn't terrible. Unemployment is near record lows, and the second quarter posted a strong 3.4 percent growth rate. But it is for those Americans who are pinched by rising food and gasoline costs, and that's a lot of folks. Half the nation's families earn below the median family income of about $56,000. Three-fifths of American families report income under $70,000.

At the Al-Mara farm in Midland, Va., Jeff and Patty Leonard run a large dairy operation where about 600 cows produce 19,000 pounds of milk each day. They plant about 1,000 acres of corn, so they don't face all of the rising feed costs like some farmers. But they sympathize with consumers because the costs of nitrogen fertilizers and diesel fuel have all gone up sharply, raising production costs by nearly 30 percent.

"That's how your farmer feels here at home when we're trying to buy soybean meal, food for our cows and trying to maintain our equipment," said Patty Leonard. "I can understand exactly what the shopper is going through."

Milk prices aren't set on the farm. That's done by marketing cooperatives, which this year have been successful in passing on higher production costs after several dismal years of prices that took dairy farmers back to the 1970s.

"It's pretty much a realignment of the actual value of milk in today's dollar," Patty Leonard said. "Milk has been cheap for a long, long time."

Globalization also explains higher milk prices. Australia, a leading milk exporter, is struggling through a drought, and European governments are pulling back dairy subsidies. So U.S. farmers, aided by a weak dollar, are stepping in to meet growing demand for milk products in China and India. That's pinched supply at home and abroad, driving up prices.

"U.S. per capita dairy consumption is the highest it's been since 1987," said Chris Galen, vice president of the National Milk Producers Federation, pointing to rising U.S. demand for cheese, made from milk. "Americans are eating more cheese than ever -- not just volume but per capita."

To make more milk, or raise more chickens that lay more eggs, farmers need feed corn and other feed products. But corn prices have soared over the past year as Congress pushes ethanol, a renewable fuel made from corn. Fields that previously grew soybeans are now yielding corn, and that's driven up the price of soybeans as they become scarce.

Iowa State University's Center for Agricultural and Rural Development shocked the farm sector earlier this summer with a report that corn farmers are expected to lock in prices of $4 a bushel through 2010, about double what corn fetched two years ago.

"You will probably be seeing these prices rise for quite a long time and stabilizing, maybe, but not going back to the $2-a-bushel corn," said Jacinto Feitosa, co-director of the center in Ames, Iowa.

Study: Half of Nation's Poor Don't Get Food Stamps
By Rob Hotakainen

Half of the nation's eligible poor aren't getting the food stamps to which they're entitled, a study released Tuesday found.

The District of Columbia had the highest participation rate in 2004, at 71.8 percent, while Missouri ranked first among the 50 states in getting food stamps to its low-income residents. Nevada ranked last among states, with 32 percent of its eligible residents getting food stamps.

Overall, 50.2 percent of the nation's qualified poor received food stamps in 2004, according to the study by the National Priorities Project, a nonprofit and nonpartisan research group that examines the local impact of federal budget policies.

"We've got over 35 million people in this country struggling to get enough food to eat, and 50 percent of all low-income people are not receiving the benefit that is intended to alleviate this food insecurity," said Greg Speeter, the project's executive director. "While the food-stamp program provides a vital service, clearly too many people are still going without."

After Missouri, the states with the highest participation rates were Tennessee, Maine, West Virginia and Oklahoma. After Nevada, the states with the lowest participation rates were Wyoming, Utah, Colorado and Idaho.

The food-stamp program, founded in 1964 and run by the Department of Agriculture, is the largest of the federal government's food and nutrition programs. In 2004, the program cost $28.6 billion, or 1.2 percent of total federal spending, and served 23.2 million people, according to the study.

In examining state participation rates, the authors of the study focused on county data for 2004, finding wide differences.

The study found that a significant number of counties, 13.2 percent, had below-average percentages of low-income people participating in the program, even though they had above-average poverty rates.

The authors cited many reasons for the disparities, including the stigma of government benefits, eligibility rules and lack of information about the benefits.

Under the food-stamp program, a family is eligible for aid if its income is 130 percent of the poverty level.

Nearly all of the states followed a national trend of increasing the number and percentage of low-income people participating in the food-stamp program in recent years. The study said that much of the increase was the result of changes in eligibility rules that took effect in 2002. And since 2004, all states are now using electronic benefits transfer systems, which allow food-stamp beneficiaries to appear to be using debit cards.

Only three states — Hawaii, Rhode Island and Connecticut — had decreases in the proportion of low-income people participating in the program between 2000 and 2004.

Percentage of low-income people receiving food-stamp benefits in 2004 by state, from low to high:

United States - 50.2

1. Nevada - 32.3
2. Wyoming - 35.0
3. Utah - 35.2
4. Colorado - 36.6
5. Idaho - 38.7
6. New Jersey - 38.9
7. Wisconsin - 40.0
8. Kansas - 40.4
9. Maryland - 40.4
10. New Hampshire - 40.8
11. Massachusetts - 41.2
12. Florida - 43.2
13. Minnesota - 43.7
14. California - 44.2
15. Iowa - 44.4
16. Nebraska - 46.0
17. Rhode Island - 46.1
18. Arizona - 46.1
19. Connecticut - 46.2
20. Montana - 46.8
21. North Carolina - 47.1
22. Texas - 47.2
23. North Dakota - 47.3
24. Virginia - 47.5
25. New York - 47.5
26. South Dakota - 48.2
27. Washington - 50.0
28. Mississippi - 51.3
29. Alaska - 52.0
30. Alabama - 53.1
31. Georgia - 53.3
32. Pennsylvania - 53.3
33. Delaware - 53.7
34. Ohio - 53.7
35. Illinois - 55.1
36. Indiana - 55.2
37. New Mexico - 55.7
38. Vermont - 55.8
39. Michigan - 58.9
40. South Carolina - 59.3
41. Hawaii - 60.1
42. Arkansas - 60.6
43. Kentucky - 61.0
44. Louisiana - 64.6
45. Oregon - 64.7
46. Oklahoma - 65.1
47. West Virginia - 65.3
48. Maine - 67.1
49. Tennessee - 67.9
50. Missouri - 71.5
District of Columbia - 71.8

(Source: National Priorities Project)

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