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How the Elite Rule
Posted in Economics, elections, finance, government, inequality, media, military, political poster, politics
Tagged deceive, distract, divide, divide distract deceive
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THE EXISTENTIAL CLIFF
The Myth of Human Progress
By Chris Hedges/ Truthdig/ January 13, 2013
Clive Hamilton in his “Requiem for a Species: Why We Resist the Truth About Climate Change”describes a dark relief that comes from accepting that “catastrophic climate change is virtually certain.” This obliteration of “false hopes,” he says, requires an intellectual knowledge and an emotional knowledge. The first is attainable. The second, because it means that those we love, including our children, are almost certainly doomed to insecurity, misery and suffering within a few decades, if not a few years, is much harder to acquire. To emotionally accept impending disaster, to attain the gut-level understanding that the power elite will not respond rationally to the devastation of the ecosystem, is as difficult to accept as our own mortality. The most daunting existential struggle of our time is to ingest this awful truth—intellectually and emotionally—and continue to resist the forces that are destroying us.
The human species, led by white Europeans and Euro-Americans, has been on a 500-year-long planetwide rampage of conquering, plundering, looting, exploiting and polluting the Earth—as well as killing the indigenous communities that stood in the way. But the game is up. The technical and scientific forces that created a life of unparalleled luxury—as well as unrivaled military and economic power—for the industrial elites are the forces that now doom us. The mania for ceaseless economic expansion and exploitation has become a curse, a death sentence. But even as our economic and environmental systems unravel, after the hottest year in the contiguous 48 states since record keeping began 107 years ago, we lack the emotional and intellectual creativity to shut down the engine of global capitalism. We have bound ourselves to a doomsday machine that grinds forward, as the draft report of the National Climate Assessment and Development Advisory Committeeillustrates.
Complex civilizations have a bad habit of destroying themselves. Anthropologists including Joseph Tainter in “The Collapse of Complex Societies,”Charles L. Redman in “Human Impact on Ancient Environments”and Ronald Wright in “A Short History of Progress”have laid out the familiar patterns that lead to systems breakdown. The difference this time is that when we go down the whole planet will go with us. There will, with this final collapse, be no new lands left to exploit, no new civilizations to conquer, no new peoples to subjugate. The long struggle between the human species and the Earth will conclude with the remnants of the human species learning a painful lesson about unrestrained greed and self-worship.
“There is a pattern in the past of civilization after civilization wearing out its welcome from nature, overexploiting its environment, overexpanding, overpopulating,” Wrightsaid when I reached him by phone at his home in British Columbia, Canada. “They tend to collapse quite soon after they reach their period of greatest magnificence and prosperity. That pattern holds good for a lot of societies, among them the Romans, the ancient Maya and the Sumerians of what is now southern Iraq. There are many other examples, including smaller-scale societies such as Easter Island. The very things that cause societies to prosper in the short run, especially new ways to exploit the environment such as the invention of irrigation, lead to disaster in the long run because of unforeseen complications. This is what I called in ‘A Short History of Progress’ the ‘progress trap.’ We have set in motion an industrial machine of such complexity and such dependence on expansion that we do not know how to make do with less or move to a steady state in terms of our demands on nature. We have failed to control human numbers. They have tripled in my lifetime. And the problem is made much worse by the widening gap between rich and poor, the upward concentration of wealth, which ensures there can never be enough to go around. The number of people in dire poverty today—about 2 billion—is greater than the world’s entire population in the early 1900s. That’s not progress.”
“If we continue to refuse to deal with things in an orderly and rational way, we will head into some sort of major catastrophe, sooner or later,” he said. “If we are lucky it will be big enough to wake us up worldwide but not big enough to wipe us out. That is the best we can hope for. We must transcend our evolutionary history. We’re Ice Age hunters with a shave and a suit. We are not good long-term thinkers. We would much rather gorge ourselves on dead mammoths by driving a herd over a cliff than figure out how to conserve the herd so it can feed us and our children forever. That is the transition our civilization has to make. And we’re not doing that.”
Wright, who in his dystopian novel “A Scientific Romance”paints a picture of a future world devastated by human stupidity, cites “entrenched political and economic interests” and a failure of the human imagination as the two biggest impediments to radical change. And all of us who use fossil fuels, who sustain ourselves through the formal economy, he says, are at fault.
(CONTINUED-READ ENTIRE ARTICLE HERE)
Boldface added by BPR Editor
We Don’t Have to Show You No Stinkin’ License
Posted in cartoon, gun control
Tagged Charles Schulz, Charlie Brown, gun license, Peanuts, Peanuts cartoon on guns, Snoopy
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WHAT CRISIS? JUST PRINT MORE MONEY
No, The United States Will Not Go Into A Debt Crisis, Not Now, Not Ever
By Pascal-Emmanuel Gobry/ Forbes/ October 19, 2012
(If you read the headline and thought “Well, yeah”–feel free to skip this post.)
If there’s one article of faith in Washington (and elsewhere), it’s the idea that the United States might get into a debt crisis if it doesn’t get its fiscal house in order.
This is not true.
The reason why it’s not true is because we live in a fiat currency system, where the United States government can create an infinite number of dollars at no cost to meet its obligations. A Treasury bill is a promise that the government will give you US dollars–something that the United States government can produce infinitely and at no cost.
That’s the reason why interest rates on United States debt have only gone down even as the debt has ballooned. That’s the reason why Great Britain has very low rates on its debt despite having very high debt-to-GDP. That’s the reason why Japan has an astounding debt-to-GDP ratio and still enjoys some of the lowest rates ever. Investors have bet for so long that there would be a run on Japanese debt and have ended up so ruined that in financial circles that trade is called “the Widowmaker”. (Here’s a more detailed analysis by my former colleague Joe Weisenthal at Business Insider.)
Well, what about Argentina? Argentina had to default on its debt because it had pegged its currency to the US dollar. It wasn’t sovereign with regard to its currency since it had to maintain its currency’s peg. It wasn’t Argentina’s debt that caused it to default, it was its currency peg.
What about Greece? Same thing. Greece hasn’t used its own currency for ten years. Of course it’s going bankrupt.
You don’t have to take my word for it. How about Alan Greenspan? He said (PDF): ”[A] government cannot become insolvent with respect to obligations in its own currency. A fiat money system, like the ones we have today, can produce such claims without limit.”
Well, in theory, yes. But probably not. Why is that? Because the US has an even bigger advantage than just being sovereign in its own currency (hi Greece), it also holds the reserve currency. The US dollar is the main currency that is used in most international transactions, it is held by all of the world’s central banks, and so forth.
Why is this important? Well, another way to define inflation is to say that the supply of a currency gets out of whack with its demand: too much currency chasing too few people who want to hold it, and so its value drops. Well, when you have the reserve currency, the demand for your currency is always going to be extremely strong. There’s always going to be tons of people, all around the world, who want to use US dollars, because their transactions are conducted in US dollars. (And it’s highly unlikely that this will change soon–being the reserve currency has a network effect, meaning everyone uses the dollar as the reserve currency because everyone else uses it, creating a self-reinforcing cycle that’s extremely hard to break.)
In other words, while in theory printing tons of money could create inflation, in practice demand for the dollar is so high–and for structural reasons that have very little to do with how the US economy is doing at a particular point in time–that it’s hard to imagine a circumstance under which the US government would have to print so much that it would cause significant inflation.And even if it did–well, for all the bad memories we have about it, the Stagflation of the 1970s was many things, but it was not Greece. Life in the 1970s was still relatively okay, despite the stagflation. That is to say, even in the extremely unlikely event that the government had to print so much money to get out of its debt that it caused moderate inflation, it still would not be a debt crisis of the kind that Greece and Spain are under right now. (Hyperinflation, meanwhile, is even less of a danger, since in recorded history it only happens in cases of not just reckless money printing, but also extremely serious exogenous shocks such as war, regime change, etc.)
Why am I writing this?
After all it’s already common knowledge among economists, Fed officials, and an increasing number of sophisticated investors.
Maybe so, but it’s still not common knowledge among politicians and among the general public. A lot of people still think that the US is under some risk of one day becoming like Greece, and it’s distorting our public debate.
It’s especially distorting it on the Right, where hysteria about deficits, and debt, and becoming like Greece has reached a fever pitch. Paul Ryan, especially, has framed his entire message on entitlement-cutting on the flawed premise that the US needs to cut its entitlement or it will suffer a debt crisis. This message, in turn, has infected broad swathes of the conservative movement (including very smart people in it), a movement that I consider myself a member of and want to see in strong intellectual health. But very few liberals–certainly no Democratic elected officials that I’m aware of, certainly not the President and the Vice President–are disputing the premise that the US is in any danger of a debt crisis.
In future posts, I will try to look at what the conservative movement can do to move past the idea of the debt crisis, and what it means.
Boldface by BPR Editor
Posted in Economics, economy, finance, government
Tagged Alan Greenspan, Argentina, debt crisis, fiat currency, Greece, hyperinflation, inflation, printing money, reserve currency
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Has Leon Gone Over to the Dark Side?
My Letter to the Editor in the Monterey County Herald today (Jan. 15):
Residents of this area take great pride in our “homeboy,” Leon Panetta, currently President Obama’s Secretary of Defense. But I can’t help but cringe when the good secretary defends our bloated military budget.
Just the other day Secretary Panetta worried about “drastic cuts” ($50 billion annually) in defense if Congress failed to implement a spending plan. “The simple fact is that this fiscal uncertainty has become a serious threat to our national security,” Panetta said during a Pentagon press conference. “We really have no choice but to prepare for the worst.” This uncertainty, he claims, “will seriously harm our military readiness.”
He can’t be serious, can he? The U.S. already spends more than $700 billion annually on defense and international security assistance. That’s more than the next 13 biggest-spending nations combined, including China, Russia and the United Kingdom. There is no other country that is even close to seriously challenging us militarily. Polling shows the vast majority of Americans support reduced defense spending, knowing we have so many pressing needs domestically.
It could it be that Mr. Panetta has been hanging around the Beltway for far too long and needs to come home as quickly as possible.
Arlen Grossman
Posted in Economics, economy, foreign policy, government, military, war
Tagged Beltway, Leon Panetta, Monterey County Herald, Monterey Herald, Pentagon budget
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