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Want to play with IBM’s quantum computer for free? Now you can

Quantum computing is expected to be the next big thing in computer technology, far surpassing what...
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Video: RAW: Russia test-fires Bulava IBMs from nuclear submarine

Russian nuclear submarine Vladimir Monomakh (Project 955 Borei class) fires 2 Bulava intercontinental ballistic missiles from underwater for the first time — the ... Via...

IBM Head: Stop Fighting And “Embrace” Total Biometric Surveillance Because It Cannot Be Stopped

Steve Watson A leading IBM official has urged the world to “embrace” ubiquitous surveillance of the public through biometrics, because, he argues, it is too...

Osama’s son on trial, RT revolt, IBM turns Watson into chef — #NewWorldNextWeek

Welcome to http://NewWorldNextWeek.com — the video series from Corbett Report and Media Monarchy that covers some of the most important developments in open source intelligence news. This week: Story #1: Osama bin Laden’s Son-in-Law Trial B...

After Watson, IBM looks to build ’Brain In A Box’

Imagine Watson with reason and better communication skills. The Watson supercomputer may be able to beat reigning Jeopardy champions, but scientists at IBM (IBM)...

After Watson, IBM looks to build ’Brain In A Box’

Imagine Watson with reason and better communication skills. The Watson supercomputer may be able to beat reigning Jeopardy champions, but scientists at IBM (IBM)...

Citing costs, IBM to move retirees off health plan

Fox NewsSeptember 7, 2013 International Business Machines Corp. plans to move about 110,000 retirees off its...

IBM developing computer that thinks like a human

Craig ManningNational MonitorAugust 10, 2013 Check this out: earlier this week, Gigaom.com reported that researchers had...

Overnight Sentiment: Cautiously Confident With IBM, GOOG Down; AAPL Next

With the market basking in glow of good earnings results yesterday, mostly out of IBM, and to a lesser extent GOOG, which missed on the top line but beat on EPS squeezing some recent inbound shorts, S&P500 futures have yet to post a solid move to the upside. Perhaps a big reason for this is the recent recoupling of risk based on not one but two carry signals: the first is the well-known EURUSD pair, while the second is the recent entrant, the USDJPY, and it is the latter that continues to see a cover of the massive short interest accumulated over the recent 1000 pip move higher on what upon ongoing reflection has been a disappointing announcement out of the BOJ. Needless to say, the Nikkei whose recent surge higher was all due to currency weakness has tumbled overnight despite corporate fundamentals, if not economic data, which continues to post substantially subpar prints.

Europe continues to plough along in limbo with Ken Rogoff telling Bloomberg ealier that the ECB has not solved any of the continent's "fundamental problems." Sure enough, the Bank of Spain announced that Spanish GDP shrunk 1.7% in 2012.

It is a quiet day macroeconomically, with the biggest event today being Apple's results after the closing bell in the US after what, as Deutsche Bank describes, has been a fascinating few months for the company with the stock down 28% from its peak of $702.

Deutsche's Jim Reid recounts the balance of the overnight action:

With all the recent excitement about central banks and the brewing discussions about currency wars, the BoE governor made some interesting remarks last night. He indicated that it would be appropriate to review the BoE’s current inflation targeting regime but warned against abandoning its 2% inflation target in favour of pursuing growth targets - a move suggested by King’s successor, Mark Carney. Speaking in Ireland, King said that high inflation “can be indulged if the costs fall on the dreamers; when the costs fall on others, it is unacceptable”. It looks like such debates are going to continue in 2013. In the near-term the ECB are likely to be the least interventionalist of the major central banks and as such the Euro looks set to edge higher. Indeed with some pre-payments of LTRO money, it could be said that the ECB is slowly exiting. Will this subtle tightening of policy cause problems for the Euro economy over the next few quarters? Our base case is that by the middle of the year it will.

Elsewhere, in Israel, voters delivered a third term to Benjamin Netanyahu overnight, but his Likud party returns with a weaker mandate than four years ago. Early exit polls indicate the combined Likud and Yisrael Beitenu parties captured just 33 seats in the 120-seat Knesset. This was down from pre-election polls projecting 37 seats, and is down from 42 in the outgoing parliament (Bloomberg). Likud remains the biggest party but the centrist Yesh Atuid party managed to secure around 18 seats, becoming the second largest political force. Mr Netanyahu is widely expected to be assigned the task of pulling together 61-seat coalition, potentially needing the support of centrist parties to form a majority. With geopolitical risk bubbling under the surface in the Middle East these are important events to watch.

Returning to markets the S&P500 closed with a gain of 0.44% yesterday, after rallying 0.8% from the morning lows seen after a weaker-than-expected existing home sales print.

Monday’s headline that Republican leaders will bring a House vote on extending the debt ceiling by 4 months helped risk assets retrace some of the early losses. The White House responded that it would not block the bill should it manage to pass Congress although Obama remains in favour of seeking a longer-term debt ceiling solution. Overnight, House Speak John Boehner was quoted as saying that it was time for the House to “come to a plan that will in fact balance the budget over the next 10 years”. The late rally drove S&P futures to new five year highs, helped by a number of positive earnings reports from the likes of AMD, IBM and Google.

Turning to overnight markets and Japanese assets continue to trade heavily following yesterday’s BoJ meeting. The Nikkei is down 1.3% as we type, underperforming other Asian equities which are down about two-tenths to half a percent. The concerns are focusing on the fact that the new BoJ measures don't come into effect until January 2014 and that there is no set date to attain the 2% inflation target. The yen is up 0.4% against the dollar overnight (88.35), adding to gains of 1% yesterday. In light of the recent moves, Japan’s economy minister said that investors “don’t fully appreciate the significance of Tuesday’s monetary policy decision”. Outside of Japan, the Thai finance minister asked the central bank to “take care” of the Baht’s recent strength. He joins a growing chorus of other Asian officials including the Korean finance minister, who have expressed concern over local currency appreciation. Elsewhere, the AUD is 0.3% weaker against the USD following a lower than expected inflation print for November (+0.2% vs +0.4% expected).

In more credit specific issues, I've been away for a couple of days but I wanted to highlight our latest weekly where we looked at the basis between the single-name CDS and cash market. Over the course of the last 12 months or so, and specifically since the middle of last year we have seen a notable swing in the average level of the CDS-cash basis. In fact the majority of EUR corporate bonds from European issuers are now trading with a positive basis.

Looking at the day’s calendar, David Cameron’s speech at 8am (London time) on the future of Britain’s relationship with the EU will be closely watched. Overnight headlines suggest that the PM will propose a referendum sometime after the next election that will give voters a “very simple in or out choice” (BBC). In the US, the House of Reps will meet at 9am (2pm London) to consider the Republican debt ceiling bill that has been rather subtlety named the “No Budget, No Pay Act of 2013”.

In terms of data, French business confidence, Eurozone consumer confidence and BoE minutes are the key data points during the European timezone. Weekly mortgage applications and the FHFA house price reading for November are scheduled in the US. The IMF releases its World Economic Outlook update today and the Bank of Canada’s rate announcement is also scheduled for today.

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IBM biometrics ID cards contract to last 7 years

IBM's contract to supply technology for ID cards will last seven years, despite the possibility that a change in government could scupper the scheme. The...

IBM to build UK fingerprints database

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IBM scientists look to DNA to build future chips

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A System Problem for Democracy

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Map shows areas most at risk of automation — RT UK

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Can Anti-Racist Businesses Put Their Money Where Their Mouth Is?

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The Russian Hacking Story Continues to Unravel

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‘Women Were in Fact Pioneers in Computing Work’

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We Must Love One Another Or Die

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Afghanistan and the Collapse of American Governance

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Happy Women’s Equality Day. Now Let’s Get to Work.

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Arpaio Pardon May Be Opening Act of a Constitutional Crisis

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The Lies on Afghanistan Trump Will Now Tell

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Make America Safe Again

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Comedian and Civil Rights Icon Dick Gregory Dies at 84

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The Activists Who Helped Shut Down Trump’s CEO Councils

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US vs hackers: America’s crusade against cybercrime

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The Biggest Data Leak in Swedish History was also the Most Avoidable

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Intel Vets Challenge ‘Russia Hack’ Evidence

MEMORANDUM FOR: The PresidentFROM: Veteran Intelligence Professionals for Sanity (VIPS)SUBJECT: Was the “Russian Hack” an Inside Job? Executive Summary Forensic studies of “Russian hacking” into Democratic...

Intel Vets Challenge ‘Russia Hack’ Evidence

In a memo to President Trump, a group of former U.S. intelligence officers, including NSA specialists, cite new forensic studies...
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Video: ‘Rock against Foreign Domination’: 1000s gather for neo-Nazi festival in Germany

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Police State/Corporate State: The Devil is in the Details

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Want to Speak Out About Politics at Work? Here Are Three Things You Need...

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Cookware, packing toxins polluting drinking water in 27 US states – report

From California to Flint, Michigan and New Jersey, harmful toxic chemicals linked to cancer can be...

Trump Dismissed as "Climate Buffoon" After Paris Pull-Out

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UK must harness power of machine learning before it’s too late – Royal Society

Machine learning has long been a topic of both fear and fascination for the public,...

RadioShack closing 187 more stores

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Trump Issues Media Blackout at Multiple Federal Agencies

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Brit who joined Kurdish Peshmerga to fight ISIS returns to police ‘harassment’

A Scottish volunteer who fought Islamic State (IS, formerly ISIS/ISIL) with Kurdish Peshmerga forces for...
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Video: Madman of the Cathedral: Former monk dedicates 50yrs to build house of God...

A cathedral founded on pure faith, and its creator who has dedicated more than 50 years of his life to building it. 91-year-old Don...
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Video: Crucifix restored atop Christian church in Iraq after area retaken from ISIS

Kurdish fighters and locals gather in Bashiqa, Iraq to restore a crucifix to a Christian church in an area retaken from Islamic State. RT...

The Noose that Obama Had Wanted to Hand to President Hillary to Hang...

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Failed weapons systems cost Pentagon $58 billion over two decades

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1/3 pro-Trump & 1/5 pro-Clinton tweets boosted by bots – study

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Robot Bank of Scotland: UK lender introduces ‘warm, approachable’ AI to talk to customers

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UK PM Theresa May met ‘kingmaker’ Rupert Murdoch on UN visit

UK Prime Minister Theresa May met privately with media mogul Rupert Murdoch in New York...

May launches post-Brexit charm offensive at UN, while wining & dining big business

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2 officers injured in protest after ‘disabled, unarmed’ black man shot dead by Charlotte...

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US spy agency apologizes for tweet about ‘classy’ Chinese welcome

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Video: Keiser Report: Mega Week in News (E962 ft. Kim Dotcom)

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Refugee family forced to flee home over racial abuse hours after settling in former...

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Despite praise for Chinese efforts, AG Lynch calls ‘economic espionage’ a ‘tremendous problem’

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Smartphone Users Are Paying for Their Own Surveillance

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Smartphone Users Are Paying for Their Own Surveillance

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Millions for the Boss, Cuts for You!

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Unknown Unknowns

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Why Risk Prison to Protest Drone Murders? An Activist Explains.

Judging from my email box in recent years -- which often differs on this question with such sources of knowledge as my television or the New York Times -- the conscience of our country lies somewhere near Syracuse, New York.  Here's an email from an activist named Judy Bello, for example:
"Breaking news: 
"MaryAnne Grady-Flores was convicted in DeWitt Town Court last night on 2nd Degree Contempt of an Order Of Protection.  Grady-Flores, who did not intend to violate the Order despite its immorality and invalidity, was taking pictures of others at the base - the Ash Wednesday Witnesses -  who engaged in nonviolent civil resistance blocking the front Gate to Hancock base for which they were subsequently acquitted.

"In a heinous abuse of an instrument meant to protect the innocent from violence, Orders of Protection are being used to protect violent transgressions of international and moral law from citizen oversight. While trying to publicize and support a movement to ground the drones and end the wars which take countless innocent lives, Grady-Flores was arrested for noncompliance with an order that does not specify particulars outside of how you might attack another human, something she would never do. She understood the Order to mean that she was forbidden to join the protest.

"The Guilty verdict was proffered by a jury 5 minutes after they had asked the judge for a legal definition of 'keep away', and he had replied that they 'are the sole triers of fact'.

"The two-day trial included testimony from Colonel Earl A. Evans who is the party protected by the OOP, Catholic Priests Father Bill Pickard and Tim Taugher, Catholic Workers Bill Frankel-Streit and Ellen Grady, sister. Grady-Flores also testified on her own behalf."
So, a woman dedicated to nonviolence was convicted of going near a military base, where a Colonel, not feeling safe enough with, you know, the military base, had a legal order of protection against her.  Of course this is a legalistic gimmick aimed at denying people their rights to speech and assembly, as at least one court has already ruled.  But it isn't working.  These people are continuing to speak and assemble.  And they're refusing to take plea bargains that would keep them out of prison.
 
 
I emailed another activist, Jack Gilroy, to ask what's going on. Here's what he sent back in response to my questions:
 
What is your background as an activist?
 
My activism began in 1964 with the Tonkin Bay lies. Later in that decade I took on the job as UpState NY Director of Committee of Responsibility, a group organized by Quaker MD’s who were treating Vietnamese war injured children. After Nixon blocked our confirmed hospital beds and plastic surgeons in upstate NY, my family and I emigrated to Australia. While there teaching high school I had my students help wake up Aussies to French Nuclear testing off the coast of Australia. Other groups (Greenpeace etc) were involved by the sight of fourth form (10th grade) Aussie kids on top of the ABC (Australian Broadcasting System) at the French Consulate in Sydney led to other actions around the country to press the French.

Back in the USA I had my senior high students watch as I climbed a fence into the largest store house of nuclear weapons in the USA. I was in a Santa Clause suit and a bag with candy and hand bills urging federal workers to find a real job….a life giving job.

Environment was major with my students and they commandeered the four corners of the original IBM setting in Endicott NY demanding that IBM pay per pound of hydroflorocarbons emitted each year…IBM the greatest polluter of the Ozone according to the EPA. Locals, with IBM the backbone of the job force, had no idea that their wonder company was doing wrong -- until students contacted media and the story was blasted. Kids can make a difference.  (Two years later, President Bush met with IBM officials in the Rose Garden to award them for their winning reduction of ozone pollutants. Students by then were in college or elsewhere and of course, not mentioned.)  My main claim to fame is my thousands of students who understood I didn’t buy the lies fed to them by the text books and media bullshit. I hope they are questioning and acting. But being a sheep has its advantages even for the committed.

So, my activism has been education. Our play, The Bench, a story about apartheid, made it to many schools around the Southern Tier of NY while Mandela was still incarcerated at Robins Island. Today, my play, The Predator, (you helped clean up a few items in it) has been done around the nation in small group settings such as the Pittsburgh Foreign Affairs Council etc. I believe education is the key -- slow, but it works if persistence is one’s forte.

I told you a bit about my activism to close the US Army School of the Americas and my southern jail, federal diesel therapy and various federal prisons for a six month ‘holiday’. It did close but opened up weeks later with a new name. C’est la vie. C’est la guerre.
 

Why do you believe protesting is a strategic tool?

It has worked historically. Need I repeat what most people of historical awareness know as fact….in the past 100 years….Gandhi, King, Chavez, Walesa, Mandela, Romero, Berrigans, etc.

Silence is the enemy of justice and we have great silence today. Silence is based in fear but is comfortable and safe. Sheepherders are our guides today rather than national leadership. Hiding in the middle of the flock is safe. Few speak out about our murderous ways. 

 

What has been accomplished?
 
It has been noted that drone action has been cut back in Afghanistan over the past year (as well as in Pakistan, but Hancock targets are in Afghanistan). Have we made a difference? Don’t know, but we’re trying.
 
So many eloquent statements have been made in so many trials at DeWitt, the Hancock Killer Drone court room. We hope that at least some local people and base personnel have to have had their consciences pricked. Since our actions, media has perked up info on drones --- we may be part of that nationwide drone talk, especially killer drones, not cutesy drone ideas like delivering packages to one’s door. Most people were ignorant several years ago and most people are still ignorant. But there is a swell of information and we think our actions have contributed to that.
 
My good friend, Ed Kinane, a long time justice activist from Syracuse, has much more experience in dealing with the media on the drone issue. Ed says that he takes from activist Dorothy Day who said: "Being faithful is more important than being effective." My own take is that Ed and the many that have put themselves on the line have been effective…even if only to their own conscience.
 

How have the approaches of the police and the courts changed?

Police are doing their job. I once witnessed Federal Marshalls at the Pentagon (back in pre 2001 days) hosing down old ladies who were doing a ‘die in’ to protest Pentagon support for a school of assassination at Ft Benning. Elizabeth McAllister (widow of Phil Berrigan) was standing next to me and she asked one of the Marshalls if he would do the same thing if it was gasoline. The Marshall turned to Liz and said: "I'd follow my orders, Lady".

So cops are doing what they are paid to do. They are not told to stop the killing going on inside of the base so they do what they are told and arrest those who say our government should not be breaking the law of country and God and natural law. But like the pilots who do the killing and the surrounding support people, it's the system that thrives on doing what they are told to do by the criminals at the top. We need to educate the police to have a conscience and see the real enemy . . .  the killers, not those who protest.

Courts are not much different. There is a sense of affinity between the Air Force personnel, smartly dressed, ramrod straight who stand or sit before judge and/or jury and make a fine presentation of patriotism . . . doing the job of heroes. It's a tough act to question. Judges and jurors have been taught to respect those who kill to keep us safe. The decisions made by the judges have been almost all in favor of the base and the killing Q9 drones and their crews. The one jury trial so far, just last week (May 17th.) rendered a decision in favor of the base. The case was a charge of a violation of an Order of Protection. An OPP is usually used to allow a spouse to keep away an abuser. Now, it is being creatively used at Hancock Air Base as an instrument to prevent First Amendment Rights to be practiced. Mary Anne Grady, a long time nonviolent peace activist, mother of four, every day hard working business woman was at a demo on Ash Wednesday at Hancock to do the media work of photos and video. She did not engage in the demonstration for she was ordered to not go on the base. She is shown in videos on the road in front of the base (cars and joggers going by right next to her) but Hancock Air Base now claims to have a lease on half of the public road that Mary Anne stood on and filmed. She faces a possible severe sentence on July 10th being found guilty beyond a reasonable doubt by a Syracuse jury of six. (Mary Anne was told months ago that juries may not be any better than judges -- tens of thousands stand and cheer at Syracuse Basketball games for the military and staff of the 174th Attach Wing at Hancock.)

 

What is your current legal situation?

My legal status is a jury trial at DeWitt Court starting at 8:30 a.m. on July 14th. First day mostly picking of jurors and opening statements and second day direct and cross examination, judge advise to jury and decision of guilt or innocence. I could be sentenced to one year in the Jamesville Penitentiary for my nonviolent die to remember those we have killed in Afghanistan (and God and the NSA only know where else). I think there is a chance of winning this one. If so, it could set a precedent. There are many jury trials to follow mine. Schedules go into late 2015….all for the same action. One judge said: "This has got to stop". Former President of Veterans For Peace, Elliott Adams, agreed with the judge. Elliott said, "Yes, your honor, it has to stop, we need to stop the killing and you need to be part of that stop effort."

I’ve been to most trials and have to say that there is little concern of judges to do anything to stop the assassinations. They are doing their job and following the "law". Now, we need to prove the so called law is illegal.

 

What would you recommend that people do who share your concern?
   
Here is what Ed Kinane had to say about recommending what to do. Ed walks the walk. Ed has lived in federal confinement for his peace and justice activism. Ed says:

That depends on whether they are far or near and where they are in life (in terms of dependents and responsibilities). Our campaign has a whole range of tactics they can join in or support: educate themselves; read some of the key drone books and reports; write letters to the editor...to elected officials...to base commanders; take part in our twice-monthly demos across the road from Hancock; attend the De Witt court when we defendants appear there; take part in annual conferences (usually in April); invite us to speak to their classes, community groups or congregations; contribute $$$ to our bail fund or to such anti-drone groups as codepink; work to pass local resolutions and ordinances restricting surveillance and weaponized drones over local or regional airspace; take part in fact-finding delegations to drone-plagued areas (Pakistan); risk arrest at Hancock, at other drone bases, or other relevant venues (federal buildings, drone research or production facilities, etc.); become a federal tax resister -- i.e.stop paying federal income taxes (much of which goes to the Pentagon war machine).

 

*****

I'll add a few more:

Visit Upstate Drone Action Reports at http://upstatedroneaction.org/wordpress

Spring Days of Drone Action.

Sign the petition to ban weaponized drones.

Get your city or state to oppose drones.

Get anti-drone shirts, stickers, hats, etc.

Every Tuesday: Stop the Killing.

Read about drones.

Plan for a Global Day of Action Against Drones on October 4, 2014.

Join the movement to end all war, with all weapons, at http://WorldBeyondWar.org

read more

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Global Research 17/2/2014

Current bilateral free trade agreement negotiations are shrouded in secrecy and are closed to proper public scrutiny (1,2). This is because they effectively constitute part of the ongoing corporate hijack of democracy and the further restructuring of economies in favour of elite interests (3,4,5).
We need look no futher than Transatlantic Free Trade Agreement (TAFTA) between the US and EU. European Commissioner De Gucht claims that “there is nothing secret” about the ongoing talks. In December 2013 in a letter published in The Guardian, he argued that “there is nothing secret about this EU trade deal” and that “our negotiations over the Transatlantic Trade and Investment Partnership are fully open to scrutiny” (6).

If that is the case, why then are notes of Commission meetings with business lobbyists released to Corporate Europe Observatory (CEO) under the EU’s freedom of information law heavily censored?

It appears that the public is not allowed to know the positions held by the EU (unlike business interests) in these talks, who is being given access to whom and who is lobbying for what on whose behalf. High-minded platitudes referring to protecting the integrity of industry and the sensitive nature of negotiations are being used in an attempt to subvert democracy, prevent public scrutiny and secure the continued privileged positions and influence that big business holds in these talks. The arguments being used to justify the secrecy are thinly veiled disguises to try to hoodwink us into accepting the legitimacy of these negotiations.  

Documents recently received by CEO show that De Gucht's officials invited industry to submit wishlists for 'regulatory barriers' they would like removed during the negotiations. However, there is no way for the public to know how the EU has incorporated this into its negotiating position as all references have been removed.

Last month CEO received 44 documents (7) about the European Commission's meetings with industry lobbyists as part of preparations for the EU-US trade talks. Most of the documents, released as a result of a freedom of information (FOI) request, are meeting reports prepared by Commission officials.


The documents arrived almost a full ten months (!) after the FOI request was tabled and 39 of the 44 documents are heavily censored. The documents cover only a fraction of the more than 100 meetings (8) which De Gucht's officials had with industry lobbyists in the run-up to the launch of the TTIP negotiations. 


CEO asks were no notes taken during closed-door meetings with corporate lobbyists from, for example, the US Chamber of Commerce, the German industry federation BDI, chemical lobby groups CEFIC and VCI, pharmaceutical industry coalition EFPIA, DigitalEurope, the Transatlantic Business Council, arms industry lobby ASD, the British Bankers Association and corporations like Lilly, Citi and BMW? It all seems like a rather cosy affair. It doesn’t take a cynic to conclude that something is seriously amiss here.

In the 39 documents which were “partially released”, large parts of text (“non releasable” or “not relevant”) have been hidden. In some cases, every single word has been removed from the document.


Not only is the text of the EU's negotiating position secret, the public is even denied access to sentences in meeting reports that refer to the EU negotiating position. This is especially problematic as these are minutes from meetings with industry lobbyists who were clearly given information about the EU's negotiating position in the TTIP talks, unlike the public.


CEO rightly states that sharing information about the EU's negotiating position with industry while refusing civil society access to that same information is unacceptable discrimination.


In many cases parts of text are removed because they contain the views of industry lobby groups “on particular aspects of the EU/US trade negotiations.” “Release of that information could have a negative impact on the position of the industry", the Commission argues. CEO argues that it is entirely unclear this means and why the views of the lobby groups should be hidden from public scrutiny. 

The Commission has also removed all names of lobbyists from the 44 documents arguing that “disclosure would undermine the protection of […] privacy and the integrity of the individual”. Again CEO argues that this is an absurd line of argument as these are professional lobbyists who are not acting in an individual capacity. There is clear public interest in transparency around who is lobbying on whose behalf and who is getting access to EU decision-makers.

Despite being heavily censored, the documents show clearly that removing differences in EU and US regulations is the key issue in the TTIP talks, with 'regulatory barriers' coming up in a large majority of the meetings. For example, in a meeting with the European Services Forum in February 2013, a lobby group for global service players such as Deutsche Bank, IBM and Vodafone, the Commission suggested various options for regulatory cooperation such as 'compatibility', 'mutual recognition' and 'equivalence'.


In another meeting in February 2013, BusinessEurope (the most powerful business lobby in Brussels), stressed “its willingness to play an active role in the upcoming negotiations, in particular on the regulatory front”. The Commission noted the importance of EU industry “submitting detailed 'Transatlantic' proposals to tackle regulatory barriers”. In other words, a race to the bottom in setting the lowest barriers possible.


leaked EU document (10) from the winter of 2013 shows the Commission proposing an EU-US Regulatory Cooperation Council, a permanent structure to be created as part of the TTIP deal. Existing and future EU regulation will then have to go through a series of investigations, dialogues and negotiations in this Council. This would move decisions on regulations into a technocratic sphere, away from democratic scrutiny. Is it not enough that EU member states could find domestic laws to protect the public interest quite useless under proposed investor-state dispute settlement provisions (9)?.Also, there would be compulsory impact assessments for proposed regulation, which will be checked for their potential impact on trade. What about whether they protect people’s health or are good for the environment? 


This would be ideal for big business lobbies: creating a firm brake on any new progressive regulation in the very first stage of decision-making.

CEO concludes on its website:


“Ending the secrecy around the negotiations is crucial for allowing citizens to assess what is being negotiated in their name. This transparency should include the EU's negotiating position, and also shed a clear light on the involvement of corporate lobbyists in preparing the negotiations.”
 



Take action, be informed: http://corporateeurope.org/get-involved


Much of the information for this article was sourced from the website of Corporate Europe Observatory, a research and campaign group working to expose and challenge the privileged access and influence enjoyed by corporations and their lobby groups in EU policy making.


Notes




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US Hegemony and Puerto Rico’s Economic Crisis

Timothy Alexander Guzman, Silent Crow News – A major economic crisis is looming in the Caribbean.  Puerto Rico, a US Commonwealth will be the center of attention in the world of finance in the coming months ahead.  Puerto Rico’s economy has been in a recession since 2006 and its bonds are close to junk status.  Puerto Rico is facing an alarming economic downturn that is clearly unsustainable.  The economy is headed for a major collapse, one not seen since the great depression, this time it could be far worse.  Puerto Rico has $70 billion in debt and an underfunded government pension system that will be eventually face cuts which only adds to more economic uncertainties for the population.  Unemployment levels are at 14.7 percent and a mass migration of the Puerto Rican people to the United States in search of better opportunities has taking hold.  Puerto Rico’s economy is dependent upon the United States government and its corporations, which many are pharmaceutical conglomerates.  It is politically and socially a “Colonial Possession” of the United States since the Spanish-American war of 1898.  However, Puerto Rico is not alone.  The United States has other colonial possessions namely Guam, American Samoa in the Pacific and the U.S. Virgin Islands.  France and Great Britain also has “Colonial Possessions” or “Overseas Territories” in a number of regions throughout the world.  Puerto Rico is no exception to the rule; it is a colony that has been exploited politically and economically for more than a century under US rule.

Puerto Rico’s economy is in a dire situation. As of October 2013, the official number of people who are unemployed is at 14.7 percent, perhaps a lot higher if you count those that have dropped out of the labor force because they are no longer looking for employment opportunities.  The Public debt is currently at $70 Billion and increasing daily. Early this month an article written by Justin Velez-Hagan who is executive director of The National Puerto Rican Chamber of Commerce for Forbes magazine titled ‘Default: Puerto Rico’s Inevitable Option’ describes what lead to Puerto Rico’s debt crises:

With triple tax exemption (federal, state, and local), combined with higher-than-average yields, Puerto Rican bonds became so popular in recent years that it was able to rack up $70 billion of debt now held by institutional investors and mutual funds alike. The debt-to-GDP ratio is now nearly 70% and growing, not including pension obligations, which raises the ratio to over 90%. With a per capita debt load of $19,000 and growing, Puerto Ricans shoulder almost 4 times the burden of U.S. leader Massachusetts which carries a deficit of $5,077 per citizen

Puerto Rico’s debt is 4 times larger than Massachusetts who Velez-Hagan acknowledges as the most indebted state per citizen with $19,000. The Washington Post also sounded alarm bells concerning Puerto Rico’s economic crises. In ‘Puerto Rico, with at least $70 billion in debt, confronts a rising economic misery’ Michael A. Fletcher describes what the commonwealth faces with cuts to pensions and government jobs and a rise in taxes all across the board including small and big businesses causing a migration of Puerto Ricans to major US cities:

The economy here has been in recession for nearly eight years, crimping tax revenue and pushing the jobless rate to nearly 15 percent. Meanwhile, the government is burdened by staggering debt, spawning comparisons to bankrupt Detroit and forcing lawmakers to severely slash pensions, cut government jobs and raise taxes in a furious effort to avert default.

The implications are serious for Americans outside Puerto Rico both because a taxpayer bailout would be expensive and a default would be far more disruptive than Detroit’s record bankruptcy filing in July. Officials in San Juan and Washington are adamant that a federal bailout is not on the table, but the situation is being closely monitored by the White House, which recently named an advisory team to help Puerto Rican officials navigate the crisis.

The island’s problems have ignited an exodus not seen here since the 1950s, when 500,000 people left for jobs on the mainland. Now Puerto Ricans, who are U.S. citizens, are again leaving in droves.  They are choosing the uncertainty of the job market in Orlando or New York City or Philadelphia over what they view as the certainty that their dreams would be crushed by the U.S. territory’s grinding economic problems.

Bloomberg Businessweek also published an article with concerns affecting the “Muni-Bond Market” that can rattle Wall Street’s Mutual Fund companies. ‘Puerto Rico’s Borrowing Binge Could Rock the Muni-Bond Market’ stated the facts:

The island’s plight affects almost anyone with a mutual fund invested in the municipal-bond market. Exempt from local, state, and federal taxes in the U.S., Puerto Rican bonds are held by 77 percent of muni funds, according to research firm Morningstar (MORN). About 180 funds, including ones run by OppenheimerFunds, Franklin Templeton Investments (BEN), and Dreyfus (BK), have 5 percent of their assets or more in Puerto Rican bonds.

General-obligation bonds, or GOs, which account for about 15 percent of the commonwealth’s public debt, carry the lowest investment-grade rating from Moody’s Investors Service (MCO) and S&P. A downgrade could force many mutual funds to sell part of their Puerto Rican holdings, flooding the market. “Puerto Rico could represent a systemic issue for the municipal-bond market,” says Carlos Colón de Armas, an economist and former official of the Government Development Bank, which conducts the island’s capital-markets transactions. “We are now in a situation where the bonds are trading like junk. I think the ratings agencies have been careful not to lower the GOs further, to avoid creating havoc in the muni-bond market.”

The Obama administration is sending a team of economic advisors according to Bloomberg News last month “With a $70 billion debt load and a substantially underfunded government pension system, the island has fueled market speculation it may need a bailout from Washington.” The report also stated what was on the agenda:

Most of the group’s work will focus on improving Puerto Rico’s management of federal funds to ensure officials are getting the amounts they are entitled to and putting them to effective use, according to the officials.  “There is less here than some people think,” said Jeffrey Farrow, who served as the Clinton White House’s liaison on Puerto Rican affairs. “This is pretty straightforward and an extension of what they have been doing in the past, but more intense, formalized and public.”

The first team of officials was scheduled to be from the Environmental Protection Agency and the Health, Education and Housing and Urban Development departments, officials said.  Puerto Rico’s education, health and housing departments are among of the biggest recipients of federal funding and have also been responsible for past Puerto Rico budget shortfalls.

The EPA’s intervention may stem from concerns regarding the ability of the Puerto Rico Electric Power Authority to comply with new federal air quality regulations that take effect in 2015.

The Environmental Protection Agency (EPA) is one of the agencies participating under Washington’s request. Washington has required that the Puerto Rico government and the Puerto Rico Electric Power Authority (PREPA) comply with new federal air quality regulations by 2015. The online news source Caribbean Business reported back on July 11th, 2013 ‘PREPA falling behind on 2015 EPA Deadline’ that Puerto Rico is in a race to meet Washington’s air-quality standards by 2015:

A high-ranking regulatory official is concerned that the Puerto Rico Electric Power Authority (Prepa) isn’t moving fast enough to comply with strict federal air-quality standards taking effect in two years, as industry sources told CARIBBEAN BUSINESS that key decisions on the compliance process won’t be taken until next spring.  Prepa plans to either close or convert most of its oil-firing units to natural gas to comply with the new air-quality standards, but it won’t select a liquefied natural gas (LNG) supplier and decide on a method to deliver the gas to north-coast plants until March 2014, according to industry sources. That means the final contracts would probably not be enacted and finalized until the fourth quarter of 2014, they added.

Meanwhile, Prepa has an agreement with Texas-based Excelerate Energy to construct an offshore LNG terminal to feed the massive Aguirre powerplant in Guayama. A formal application with the Federal Energy Regulatory Commission was filed in April and the project remains in the permitting phase. Excelerate officials have said they expect the facility to be in service in early 2015, but that outlook depends on getting timely federal approval on its environmental impact statement and several permits.

Puerto Rico’s plan to convert most of its oil-firing units to natural gas will have an impact on its economy. Puerto Rico Electric Power Authority (PREPA) does not have the economic capacity to invest in the construction of new plants that would supply natural gas. “While the cash-strapped public utility can’t afford to build its own plants, there is interest from large energy companies to construct new generation units through public-private partnerships (P3s)” the report stated. “That is especially the case because the move to natural gas isn’t just about compliance, but about bringing down power costs.” Caribbean Business said that Edgardo Fábregas, a former member of PREPA’s board confirmed that the public utility is considering a plan to construct a gas-fired plant “The former Prepa board member said the public utility was considering a longer-term plan to construct, through a P3 initiative, a massive natural gas-fired plant, probably on the site of Arecibo’s Cambalache plant, which is rarely used.” The report also said that Fábregas admitted to the costs associated with the project:

To do a project right, building a plant that could “flex up or down” rapidly and would have the capacity to power the entire north coast, would cost $7 billion, and take six years to build. The project would allow for the elimination of the Palo Seco and San Juan plants, Fábregas said. “We have to move to natural gas as soon as we can, but at the end of the day, you have to renew your system. I understand the cost and time implications involved, but if we don’t start, we will never finish,” he added.

According to Robert Bryce, a senior fellow with the Center for Energy Policy and the Environment at the Manhattan Institute for Policy Research, a conservative think tank based in New York City produced a report called ‘The High Cost of Renewable-Electricity Mandates’. He wrote about the effects of Washington’s new air-quality proposal:

Motivated by a desire to reduce carbon emissions, and in the absence of federal action to do so, 29 states (and the District of Columbia and Puerto Rico) have required utility companies to deliver specified minimum amounts of electricity from “renewable” sources, including wind and solar power. California recently adopted the most stringent of these so-called renewable portfolio standards (RPS), requiring 33 percent of its electricity to be renewable by 2020.  Proponents of the RPS plans say that the mandated restrictions will reduce harmful emissions and spur job growth, by stimulating investment in green technologies.

But this patchwork of state rules—which now affects the electricity bills of about two-thirds of the U.S. population as well as countless businesses and industrial users—has sprung up in recent years without the benefit of the states fully calculating their costs.  There is growing evidence that the costs may be too high—that the price tag for purchasing renewable energy, and for building new transmission lines to deliver it, may not only outweigh any environmental benefits but may also be detrimental to the economy, costing jobs rather than adding them.  The mandates amount to a “back-end way to put a price on carbon,” says one former federal regulator. Put another way, the higher cost of electricity is essentially a de facto carbon-reduction tax, one that is putting a strain on a struggling economy and is falling most heavily, in the way that regressive taxes do, on the least well-off among residential users.

To be sure, the mandates aren’t the only reason that electricity costs are rising—increased regulation of coal-fired power plants is also a major factor—and it is difficult to isolate the cost of the renewable mandates without rigorous cost-benefit analysis by the states.

The new mandate is called Renewable Portfolio Standards (RPS) that automatically “require electricity providers to supply a specified minimum amount of power to their customers from sources that qualify as “renewable,” a category that includes wind, solar, biomass, and geothermal.” The report clarified what the results of the new energy plan would bring:

The federal Environmental Protection Agency (EPA) is similarly bullish on the state programs. The RPS rules are designed “to stimulate market and technology development,” the agency says, “so that, ultimately renewable energy will be economically competitive with conventional forms of electric power. States create RPS programs because of the energy, environmental, and economic benefits of renewable energy.”[4]

Although supporters of renewable energy claim that the RPS mandates will bring benefits, their contribution to the economy is problematic because they also impose costs that must be incorporated into the utility bills paid by homeowners, commercial businesses, and industrial users. And those costs are or will be substantial. Electricity generated from renewable sources generally costs more—often much more—than that produced by conventional fuels such as coal and natural gas. In addition, large-scale renewable energy projects often require the construction of many miles of high-voltage transmission lines. The cost of those lines must also be incorporated into the bills paid by consumers.

What Edgardo Fábregas forgets to mention is that Bryce’s analysis on the price of producing electricity through renewable energy sources can be astronomical. It is an amazing prediction given by the EPA under the Obama administration’s directives. It is important to note that the major players in the RPS programs are connected to Wall Street and major banks that includes Goldman Sachs who is one of President Obama’s major campaign contributors. Author and journalist Matt Taibbi wrote an article on the history of Goldman Sachs and the US government’s relationship for Rolling Stone magazine called ‘The Great American Bubble Machine’. Taibbi explains how Goldman Sachs would benefit from Washington’s air-quality mandates:

The new carbon credit market is a virtual repeat of the commodities-market casino that’s been kind to Goldman, except it has one delicious new wrinkle: If the plan goes forward as expected, the rise in prices will be government-mandated. Goldman won’t even have to rig the game. It will be rigged in advance.

Here’s how it works: If the bill passes, there will be limits for coal plants, utilities, natural-gas distributors and numerous other industries on the amount of carbon emissions (a.k.a. greenhouse gases) they can produce per year. If the companies go over their allotment, they will be able to buy “allocations” or credits from other companies that have managed to produce fewer emissions. President Obama conservatively estimates that about $646 billion worth of carbon credits will be auctioned in the first seven years; one of his top economic aides speculates that the real number might be twice or even three times that amount.

The feature of this plan that has special appeal to speculators is that the “cap” on carbon will be continually lowered by the government, which means that carbon credits will become more and more scarce with each passing year. Which means that this is a brand new commodities market where the main commodity to be traded is guaranteed to rise in price over time. The volume of this new market will be upwards of a trillion dollars annually; for comparison’s sake, the annual combined revenues of all electricity suppliers in the U.S. total $320 billion.

One other important factor to consider regarding Puerto Rico’s energy demands in the future is the supply of natural gas. Puerto Rico is hoping to secure a steady supply of natural gas from the United States for the next 100 years. “A key part of the plan is to secure a long-term LNG contract with the U.S., which has the most economical prices in the world, the result of a boon in U.S. natural gas exploration, which has unearthed a supply that experts say will last a century” according to the Caribbean Business report.  In the 2012 State of the Union Address, US President Barack Obama said “We have a supply of natural gas that can last America nearly 100 years, and my administration will take every possible action to safely develop this energy.” F. William Endahl, a research associate at Global Research wrote a ground breaking report, ‘The Fracked-up USA Shale Gas Bubble’ wrote that the 100 year supply of natural gas is in fact an inaccurate prediction:

In a sobering report, Arthur Berman, a veteran petroleum geologist specialized in well assessment, using existing well extraction data for major shale gas regions in the US since the boom started, reached sobering conclusions. His findings point to a new Ponzi scheme which well might play out in a colossal gas bust over the next months or at best, the next two or three years. Shale gas is anything but the “energy revolution” that will give US consumers or the world gas for 100 years as President Obama was told.

Berman wrote already in 2011, “Facts indicate that most wells are not commercial at current gas prices and require prices at least in the range of $8.00 to $9.00/mcf to break even on full-cycle prices, and $5.00 to $6.00/mcf on point-forward prices. Our price forecasts ($4.00-4.55/mcf average through 2012) are below $8.00/mcf for the next 18 months. It is, therefore, possible that some producers will be unable to maintain present drilling levels from cash flow, joint ventures, asset sales and stock offerings.” [16]

Berman continued, “Decline rates indicate that a decrease in drilling by any of the major producers in the shale gas plays would reveal the insecurity of supply. This is especially true in the case of the Haynesville Shale play where initial rates are about three times higher than in the Barnett or Fayetteville. Already, rig rates are dropping in the Haynesville as operators shift emphasis to more liquid-prone objectives that have even lower gas rates. This might create doubt about the paradigm of cheap and abundant shale gas supply and have a cascading effect on confidence and capital availability.” [17]

What Berman and others have also concluded is that the gas industry key players and their Wall Street bankers backing the shale boom have grossly inflated the volumes of recoverable shale gas reserves and hence its expected supply duration. He notes, “Reserves and economics depend on estimated ultimate recoveries (EUR) based on hyperbolic, or increasingly flattening, decline profiles that predict decades of commercial production. With only a few years of production history in most of these plays, this model has not been shown to be correct, and may be overly optimistic….Our analysis of shale gas well decline trends indicates that the Estimated Ultimate Recovery per well is approximately one-half the values commonly presented by operators.” [18] In brief, the gas producers have built the illusion that their unconventional and increasingly costly shale gas will last for decades.

However, Caribbean Business says that “Prepa has invited several suppliers to bid on a project to supply the north-coast plants with natural gas. It is spelling out its gas needs at its Palo Seco and San Juan plants, letting the energy companies decide the best way to supply the natural gas” and that “Prepa has made some progress on its natural gas conversion plan, which energy experts say is the only way to bring down the high cost of electricity.” Allowing energy companies decide how to supply gas would add to the price in the long run. Russia Today recently reported that “fracking technology” is causing major environmental problems within the United States. Since 2008, the state of Texas has been experiencing more earthquakes than ever before:

Between 1970 and 2007, the area around the Texas town of Azle (pop. 10,000) experienced just two earthquakes. The peace and quiet began to change, however, at the start of 2008, when 74 minor quakes were reported in the region. Now an increasing number of people, including scientists, are speculating that natural gas production by fracking – a process that forces high pressure water and chemicals into rock in order to extract natural gas reserves – is the culprit. The problem, however, is proving the claims.

Cliff Frolich, earthquake researcher at the University of Texas, said waste water injection wells from fracking could be responsible for the recent spate of earthquake activity. “I’d say it certainly looks very possible that the earthquakes are related to injection wells,” he said in an interview with KHOU television.

Frolich left room for doubt when he said thousands of such wells have operated in Texas for decades with no quakes anywhere near them. Frolich co-authored a 2009 study on earthquake activity near Cleburne, just south of Azle, which concluded: “The possibility exists that earthquakes may be related to fluid injection.” A recent government study lent credence to Frolich’s findings.

There have been Anti-fracking protests around the world. Fracking or “hydraulic fracturing” is a water-intensive process where millions of gallons of water, sand, and chemicals combined are injected underground with intensive pressure to fracture rocks that surround an oil or gas well. This process then releases extra oil and gas from the rock which flows into the well. “Fracking Technology” is proving to be environmentally dangerous for the health and safety of communities located in close proximity to these well sites. It causes many problems for the air we breathe and long-term environmental damage. For example, water can become contaminated from the toxins fracking has caused. It is an environmental hazard.

EPA rules and regulations also have the potential to impose a “carbon tax option” for states according to The Hill, A Washington D.C. based daily newspaper reported last month that Brookings Institution economist Adele Morris said that a carbon excise tax can be imposed on states:

Morris, a carbon tax supporter, argues that a carbon excise tax could be part of the “menu of specific approaches” that the agency gives states that will craft plans to meet the federal guidelines. Morris suggests that the EPA could “allow states to adopt a specific state-level excise tax or fee on the carbon content of fuels combusted by the power plants regulated under this rule.”

In other words, an excise tax associated with renewable energy supplies can be added only leading to higher energy costs for households, businesses and major industries. It would also allow Puerto Rico to contribute to the environmental degradation because of its future demands of natural gas which has no guarantee of supplies for the next 100 years. It is a recipe for disaster for both the economy and the environment.

 Will new EPA rules bankrupt farmers?

It is estimated that Puerto Rico imports at least 85% of the food supply from the United States according to the Latin American Herald Tribune. ‘Puerto Rico Imports 85 Percent of Its Food’ stated that “Puerto Rico imports 85 percent of the food its residents consume due to the lack of competitiveness among companies in this U.S. commonwealth, Agriculture Secretary Javier Rivera told Efe.” Agriculture Secretary Rivera admits that the majority of food is imported from the United States even though Puerto Rico has the capability to produce its own food, but cannot compete with US food suppliers. Rivera continued “Although we have the technical capacity, we’re not able to produce competitively” Why? “The secretary attributed the drop in production to the high operating costs of growing food on the island, which are, in turn, a result of high labor costs, as well as rising energy and fertilizer prices. Rivera acknowledged that therefore many farmers – of which there are fewer than 2,000 on the island, according to recent statistics – have come to depend on government subsidies to stay in business.” With new EPA regulations, remaining farmers will bear higher-energy costs because of the EPA’s new federal air quality regulations that will start in 2015. Agriculture on the island would be affected and farmers would be economically bankrupt when energy prices begin to rise.

From the 1929 Great Depression to the Recession of 2014

Looking back to the 1930’s, Puerto Rico was in economic despair due to the effects of the Great Depression. In 1940, the Popular Democratic Party (PPD) under the leadership of Washington’s puppet governor Luis Munoz Marin came to power with 37.9% of the vote compared to 39.2% of the Republican-Socialist coalition. The PPD also won the 1944 elections with 64.8% of the vote. The PPD was determined to transform Puerto Rico’s economy from an Agricultural farm-based to an export-driven modern industrial economy.

The US and Puerto Rico governments wanted to fast track the urbanization in many areas from a rural society to a modern, industrial urban center that would resemble New York City’s economy. For a short period of time, the project did increase living wages, improved housing conditions, health care and education. It also led to equitable land reforms,. At the same time the plan increased unemployment rates because many Puerto Ricans were unqualified for the types of jobs the new Industrial economy provided. It increased the migration levels to the United States, namely New York, New Jersey and Pennsylvania.

Puerto Rico became more dependent on U.S. markets and created more public and private debts. The most important aspect of US economic and political control of Puerto Rico was the cultural transformation of the population. It became what sociologist call “Americanization”. They were subjected to American culture, media, laws, and even its foods under Washington’s economic and social plan. In ‘Economic History of Puerto Rico: Institutional Change and Capitalist Development’ by James L. Dietz, professor of economics and Latin American studies at California State University wrote:

Industrialization and the accompanying decline of agriculture after the late 1940s did nothing to expand and make permanent the relative autonomy of the early 1940s. Instead, the PPD program had just the opposite result: it laid the foundation for increased dominance by U.S. capital from the 1950s to the present. The PPD’s goal of eventual political independence, after the attainment of social justice and a solution to the island’s economic problems, faded further into the future and eventually disappeared altogether. It may be that Munoz and the PPD never really were committed to independence, as many have suggested, but it is more likely that, as the PPD’s redirection of the economy under Munoz’s leadership tied its destiny ever closer to that of the United States, what they had became what they wanted as what they had wanted slipped further and further from their grasp

In ‘How an Economy Grows and why it Crashes’ author and economist Peter Schiff stated that “The evidence supporting these claims is largely emotional. What is far more certain is that the government’s monopoly control of public projects and services almost always leads to inefficiency, corruption, graft, and decay.” Puerto Rico’s economy was under US control then as it is now. Dietz says that “From 1941 to 1949, the government followed a program of land reform, control over and development of infrastructure and institutions, administrative organization, and limited industrialization through factories owned and operated by the government.” Comparing to what Peter Schiff said the Puerto Rican government’s control of certain economic sectors led to numerous “inefficiencies” and “Decay.” The bleak economic growth of Puerto Rico did not improve through a program called ‘Operacion Manos a la Obra’ or ‘Operation Bootstrap’ in English. It was known as “Industrialization by Invitation” to attract foreign investment. It failed in the long-run. Dietz further wrote:

“Yet Operation Bootstrap made it difficult for Puerto Ricans to improve their standard of living through their own efforts, since it put control over that process in the hands of U.S. firms, whose interests did not necessarily coincide with those of the majority on the island. It is likely that no one consciously intended such results from a development program that seemed so promising, but Puerto Rico’s colonial relation with the United States prevented, or at a minimum made more difficult, a more independent existence for the economy and society”

Puerto Rico’s dependence on the US mainland became evident as the years went by, but right from the beginning of World War II, Puerto Rico’s economy suffered.  “The war shut Puerto Rico off from its primary export market and source of imported goods, and meanwhile, there were no war industries to absorb surplus labor; consequently, unemployment increased” according to Dietz.  Today, Puerto Rico is suffering from a recession that started in 2006. In another report by Caribbean Business ‘PR reverses growth forecast, now predicts another year of recession’ and stated the dire predictions by the government of Puerto Rico, “The Puerto Rico government has dropped expectations for economic growth this fiscal year as the island struggles to pull out of a marathon downturn dating back to 2006. The Planning Board said Friday it is now projecting that the economy will shrink by 0.8 percent in fiscal 2014, dropping its previous forecast for razor-thin growth of 0.2 percent.” Puerto Rico’s economy will continue to decline as the US economy continues with its own economic problems. It will become more difficult as time progresses for Puerto Rico.

The Collapsing US Dollar and the Fall of Rome   

The US Dollar as a the world’s reserve currency is in its last stages because the US owes trillions of dollars in household, corporate and financial debt and future underfunded welfare liabilities.  The demand for U.S. dollars kept prices and interest rates low. It allowed the U.S. government to acquire the economic power it needed to dominate the world economically. It allowed the Federal Reserve Bank to print dollars unconditionally. Although the US dollar is still dominate with more the 50% of foreign currency reserves in the world, a gradual transition for other currencies is coming in the near future. The dollar will eventually lose its value. Interest rates on every loan and credit card will rise.

This is a recipe for disaster, because if a country such as Puerto Rico cannot produce its own food and is dependent on a foreign source that is the most indebted nation in world history with more than $17 trillion dollars in debt which continues to increase each passing day is a serious problem for Puerto Rico’s future. Tyler Durden of zerohedge.com provided a chart in 2012 to show the fiscal danger the United States faces in the near future. Durden explains:

We present the following chart showing total US Federal debt/GDP as well as Deficit/(Surplus)/GDP since inception, or in this case as close as feasible, or 1792, which appears to be the first recorded year of historical fiscal data. We can see why readers have been so eager to see the “real big picture” – the chart is nothing short of stunning.

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On October 2, 2009 Senator Bernie Sanders made one of his classic fiery speeches on the floor of the US Senate. This time Vermont's independent socialist was taking on Lockheed Martin and other top military contractors for what he called “systemic, illegal, and fraudulent behavior, while receiving hundreds and hundreds of billions of dollars of taxpayer money.”
     Among other crimes, Sanders mentioned how Lockheed had defrauded the government by fraudulently inflating the cost of several Air Force contracts, lied about the costs when negotiating contracts for the repairs on US warships, and submitted false invoices for payment on a multi-billion dollar contract connected to the Titan IV space launch vehicle program.
     A month later, however, he was in a different mood when he hosted a delegation from Sandia National Laboratories. Sandia is managed for the Department of Energy by Sandia Inc., a wholly-owned Lockheed subsidiary. At Sanders’ invitation, the Sandia delegation was in Vermont to talk partnership and scout locations for a satellite lab. He had been working on the idea since 2008 when he visited Sandia headquarters in New Mexico.
     In January 2010 he took the next major step – organizing a delegation of Vermonters. The group included Green Mountain Power CEO Mary Powell; Domenico Grasso, vice president for research at the University of Vermont; David Blittersdorf, co-founder of NRG Systems and CEO of Earth Turbines; and Scott Johnston, CEO of the Vermont Energy Investment Corporation, which runs Efficiency Vermont.
     Despite concerns about Lockheed’s bad corporate behavior Sanders didn’t think that inviting Sandia to Burlington meant helping the parent corporation to get away with anything. Rather, he envisioned Vermont transformed “into a real-world lab for the entire nation” through a partnership. “We're at the beginning of something that could be of extraordinary significance to Vermont and the rest of the country,” he promised.
     When the project was publicly announced in December 2011, Sanders challenged the description of Lockheed as Sandia’s “parent company,’ and turned to Sandia Vice President Rick Stulen, who explained that “all national laboratories” are required to have “an oversight board provided by the private sector. So, Lockheed Martin does provide oversight, but all of the work is done by Sandia National Laboratories and we’re careful to put firewalls in place between the laboratory and Lockheed Martin.”
     Gov. Peter Shumlin credited Sanders for bringing the new multi-million dollar Center for Energy Transformation and Innovation to the state. Vermont’s junior Senator was “like a dog with a bone” on the issue, recalled the governor at their joint press conference. The project, a partnership between Sandia National Laboratories, the University of Vermont, Green Mountain Power and Vermont businesses, would create “a revolution in the way we are using power,” Shumlin predicted.
     To achieve that, the center has up to $15 million to accelerate energy efficiency, move toward renewable and localized sources of energy, and make Vermont “the first state to have near-universal smart meter installations,” Sanders explained. Sandia will invest $3 million a year, along with $1 million each from the Department of Energy and state coffers.
     On Nov. 4, Sanders and Shumlin held another press event, this one in Williston with representatives of IBM, Sandia, and the US Department of Energy to launch a Vermont Photovoltaic Regional Test Center. The new center, one of only five in the country, will research ways to cut the cost of solar power and integrate solar energy into Vermont’s statewide smart grid. 
    For Sandia, having a Vermont presence provides “a way to understand all of the challenges that face all states,” Stulen explained in 2011. Vermont’s size makes it more possible “to get something done,” he said, revealing that considerable integration had already occurred with the university, private utilities and other stakeholders.
     Vermont’s reputation for energy innovation also attracted $69.8 million in US Department of Energy funding to promote rapid statewide conversion to smart grid technology. This is being matched, according to Sanders, by another $69 million from Vermont utilities.
Flying High: How Lockheed Happened
Lockheed Martin is one of the top US government contractors, bringing in $36 billion in 2008. That’s roughly $260 per household, known in some parts of the country as the Lockheed Martin Tax. It is also a top US weapons contractor (about 80% of its revenue comes from the Pentagon), as well as high among Departments of Energy and Transportation contractors, and in the top five with the Department of State, NASA,and the Departments of Justice and Housing and Urban Development.
     Beyond producing planes, subs and weapons systems it has supplied interrogators for the prison at Guantanamo Bay, trained police in Haiti, run a postal service in the Congo, and helped write the Afghan constitution. In the US, it has helped to scan mail, design and run the Census, process taxes for the IRS, provide biometric ID devices for the FBI, and played a role in building ships and communication equipment for the Coast Guard. Its more than 100,000 employees have a presence in 46 states.
     Despite – or, maybe because of – its scope and size, however, Lockheed executives sometimes feel the need to violate rules. As a result, as Bernie Sanders often mentioned in speeches until a Sandia lab for Vermont took shape, it is also number one in contractor misconduct. Between 1995 and 2010 it engaged in at least 50 instances of misconduct and paid $577 million in fines and settlements. 
     In the mid-1990s then-Rep. Sanders objected to $91 million in bonuses for Lockheed-Martin executives after the defense contractor laid off 17,000 workers.  Calling it “payoffs for layoffs” he succeeded in getting some of that money back.
     The corporation has come a long way from its beginnings before the First World War. Two brothers, Allen Haines and Malcolm Loughead, formed their first aircraft company in 1916, after building a plane a few years earlier. When their charter service foundered, they turned to government work with plans for a “flying boat” known as the F-1. The Navy passed and the plane was used only for flight demonstrations, but the brothers managed to survive in business by marketing tourist flights.
     A decade after the war they incorporated Lockheed Aircraft Corp. in Nevada. Its first plane, the Vega, made possible explorer George Wilkins’ first flight over the Arctic Circle. Due largely to the publicity surrounding that event Lockheed’s stock value rose fast enough at the end of the 1920s to make it an attractive takeover target. It soon became part of Detroit Aircraft, then touted as “the General Motors of the Air.” Detroit Aircraft went belly up within a few years, however, and Lockheed was purchased by a group of investors for only $40,000. By 1935 it was back in the black, bringing in more than $2 million in sales.
     Even before World War II most of its planes were being built for the military, at home and abroad. Britain had purchased 1,700 by 1941. The scale of the UK deal, along with the 10,000 twin-engine fighter planes it subsequently sold to the US during the war, turned it into the largest company in the industry.
     Although Lockheed also produced commercial airplanes – notably the Constellation, used by TWA and Pan Am – after WWII its bread and butter became fighter planes and patrol aircraft for the Air Force and Navy. It was simple math. Post-war military sales to the government averaged about ten times the sales to airlines.
     Lockheed succeeded in part by equating its own interests with the national interest. During the Cold War the rationale wasn’t just competition with the Soviet Union but also building up the exciting aeronautics industry, keeping skilled personnel, and promoting jobs directly and through various vendors. All this required long-term planning and sustained government funding. The US had a global responsibility, argued Lockheed’s executives, and that meant rapid transport of people, food, energy and weapons.
     The development of its C-5A Galaxy – a Vietnam-era, over-sized transport craft with a 223-foot wingspan – illustrates the company’s actual approach to partnership with the government. At first, they submitted low bids and talked about the national interest. By the time the project was close to delivery, however, the price was up by billions, plus a steady income for years to come supplying replacement parts --at open-ended prices. With the only real downside the risk of a small fine if they broke the rules, it was well worth the price.
     The SEC later found that Lockheed and the Air Force concealed the overruns, and Lockheed executives sold off their own stocks while withholding information from shareholders. As Rep. Otis Pike recalled, the C-5A scandal illustrated Lockheed’s sales tactics. Once government buys in and the overruns begin, “they make up their hole by laying it on the spare parts. There’s not a damned thing the Air Force can do about it…Once they start buying equipment, they have to get their spare parts.”
     As the industry evolved, adding missiles, exotic aircraft and space vehicles, Lockheed was at the forefront with its Polaris missile and high-tech spy planes for the CIA. The most famous was the U-2, a fast, high altitude aircraft that was top secret until one was shot down. The real important of the U-2 was that it revealed the exaggeration of Soviet military might. But few people were allowed to see what the U-2 photos actually proved. Instead military spending hit a new high to combat the alleged threat.
     Beginning the 1990s Lockheed was a winner in the long-term effort to privatize government services. In 2000, it won a $43.8 million contract to run the Defense Civilian Personnel Data System, one of the largest human resources systems in the world. As a result, a major defense contractor consolidated all Department of Defense personnel systems, covering hiring and firing for about 750,000 civilian employees. This put the contractor at the cutting edge of Defense Department planning, and made it a key gatekeeper at the revolving door between the US military and private interests.
     For the past decade Lockheed’s largest project has been the F-35 Joint Strike Fighter, the largest project in the history of military aviation. One Lockheed executive has called it “the Super Bowl” and the “program of the century.” Early plans called for the US and Britain to buy more than 3,000 planes.
     The initial idea was to create a capable plane without the performance problems that had plagued earlier efforts. But as the R & D proceeded, various capabilities and requests collided. The Navy version turned out to be seriously overweight. National partners meanwhile quibbled over who should get what lucrative production work. One faction in the military publicly criticized the plane, especially the idea of its so-called “multi-role.”
     Maintenance and support would carry a high price tag – $700 million over the lifetime of a plane. The engines reportedly ran so hot that they could melt the decks of aircraft carriers on vertical takeoff and fatigue the metal beneath.
     On October 28, the Burlington City Council defeated two resolutions that would have opposed a proposal to base F-35s at the Burlington International Airport. The first was designed to block the F-35s from the Vermont Air National Guard facility at the airport. The second would have created "health and safety standards" applying to all planes.
     The votes were the latest in a series by communities near the airport on whether to support bedding the planes in Vermont. In South Burlington, councilors earlier this year voted in favor of the F-35, reversing an earlier decision. In July, the Winooski City Council voted to oppose the basing plan.
Strange Bedfellows: Sandia and the Senator
Most of the revenue for Lockheed’s Sandia National Laboratory comes from maintaining nuclear weapons and assessing defense systems. Its primary headquarters is on Kirtland Air Force Base in Albuquerque, NM, and employed about 7,500 people. The other is in Livermore, CA, employing another 1,000. If the Pentagon ever decides to make the F-35 capable of dropping nuclear bombs, not an impossible development, Sandia is very likely where it will be made.
     But not at the Vermont lab. Bernie Sanders has repeatedly pledged that Vermont’s facility will strictly avoid defense work. Instead, it will focus on energy technology and cyber-security issues, and examine "how to bring these technologies to bear and to use Vermont as a test bed," explained Les Shephard, Sandia's vice president for energy, resources and nonproliferation. To do that, Shephard added, the Vermont satellite lab will have access to Sandia resources to develop innovations that could, ideally, be spun off into new companies.
     Some resulting enterprises might even be based in Vermont.
     The state was appealing, according to Shephard, because it was already "a national leader" in energy efficiency. But it was also small enough to serve as a manageable site for a variety of experiments. At around $20 billion Vermont’s total GDP is less than half of what Lockheed makes in a year.
     In addition to Vermont’s reputation for energy efficiency and “cooperative utilities,” Sandia also appreciates the region’s challenging climate. "We could develop, deploy and assess various types of technology in cold weather," Shephard explained. "Our test facilities are in the bright skies of New Mexico, where we have over 300 days of sunshine."
     Another stated focus of the center is to ensure reliable service. That means “anticipating any cyber challenges that may be opened up, or vulnerabilities that may be opened up as we move to this new future,” Stulen said. “Sandia is very much in the forefront of cyber research.”
     Joint efforts between Green Mountain Power and Sandia began at least two years ago. The long-term goal is to make Vermont “a national example of how to deploy smart grid technology across a state, along with renewable generation and really demonstrate that we can handle the security issues that come with that.” notes Mary Powell, Green Mountain Power’s CEO.
     One of those issues is that having numerous interactive devices on two-way networks creates new risks. According to Kenneth van Meter, manager of energy and cyber services for Lockheed Martin, “By the end of 2015 we will have 440 million new hackable points on the grid. Nobody’s equipped to deal with that today.” Asked about cyber threats, Stulen has acknowledged that use of “more portals” creates more potential threats, but adds that “we think this is a manageable situation. In fact, the benefits far outweigh the risks.”
     In the category of benefits, Stulen points to the potential for lower utilities bills by being able to monitor home energy use in detail. But security is also a focus. “We don’t see it as an overriding issue right now, but as a national laboratory our job is to anticipate the future,” he said.
     “The federal government has invested $4 billion in smart grid technology,” Sanders notes, “and they want to know that we’re going to work out some of the problems as other states follow us. So Vermont, in a sense, becomes a resource for other states to learn how to do it, how to overcome problems that may arise.
     “In many ways, we are a laboratory for the rest of this country in this area,” Sanders adds. To that end, an exchange program was launched between Sandia and the University of Vermont in 2011, with nine students and several faculty members working on smart grid-related project. The center also began offering short courses on smart grid modernization for Vermont utility staff and energy-tech company management.
     Earlier the same year, however, a dispute erupted over a related development agreement between the City of Burlington and Lockheed Martin. After months of study and debate, the City Council adopted a community standards resolution, largely in response to public criticism of the deal with Lockheed signed by Progressive Mayor Bob Kiss.
     Kiss vetoed the Council's resolution. But three weeks later, Rob Fuller, a spokesman for Lockheed, said the deal was off. "While several projects showed promise initially and we have learned a tremendous amount from each other," he wrote, "we were unable to develop a mutually beneficial implementation plan. Therefore Lockheed Martin has decided to conclude the current collaboration." 
     It read like a Dear John, and a silent bow to public pressure.
     Sensitive to local criticisms of Lockheed and the F-35, Sanders bristles at the description of the corporation as “a parent company” of Sandia, which was founded in 1949 and has roots in the development of the atomic bomb during World War II. The company’s website describes its work during that period as “ordnance engineering,” which involved turning the nuclear innovations of the Los Alamos and Lawrence Livermore labs into functioning weapons.
     Revenue figures indicate that most of Sandia’s revenue continues to come from maintaining nuclear weapons and assessing defense systems. Its primary headquarters is on Kirtland Air Force Base in Albuquerque, NM, where about 7,500 people are employed. The other big lab is in Livermore, CA, employing another 1,000. Known in the past as a “national security lab,” Sandia’s 21st century mission has expanded to include “security of the smart grid.”
     A statement by Sanders released at the 2011 press conference stressed that although the US has 17 national labs doing “cutting edge research,” none of them were located in New England. That was what he hoped to change after visiting Sandia’s New Mexico headquarters back in 2008.
     “At the end of the day,” recalled Les Shephard, “he turned to the laboratory director and said, ‘I’d really like to have a set of capabilities like Sandia in New England — and very much so in Vermont.’ And that’s how it all evolved.”
     “It occurred to me,” Sanders recalled later, “that we have the potential to establish a very strong and positive relationship with Sandia here in the State of Vermont.” His hope is to make the current thee-year arrangement “a long-term presence” between the lab, UVM, utilities and other businesses.
     “This is a really exciting development for Vermont,” said Shumlin, calling the partnership “a huge opportunity and a huge accomplishment.”
     Sanders added that “working with Sandia and their wide areas of knowledge – some of the best scientists in the country – we hope to take a state that is already a leader in some of these areas even further.” Lockheed’s past offenses didn't come up.

Why Washington Is Cutting Safety Nets When Most Americans Are Still in the Great...

So how to explain this paradox?

As of November 1 more than 47 million Americans have lost some or all of their food stamp benefits. House Republicans are pushing for further cuts. If the sequester isn’t stopped everything else poor and working-class Americans depend on will be further squeezed.

We’re not talking about a small sliver of America here. Half of all children get food stamps at some point during their childhood. Half of all adults get them sometime between ages 18 and 65. Many employers – including the nation’s largest, Walmart – now pay so little that food stamps are necessary in order to keep food on the family table, and other forms of assistance are required to keep a roof overhead.  

The larger reality is that most Americans are still living in the Great Recession. Median household income continues to drop. In last week’s Washington Post-ABC poll, 75 percent rated the state of the economy as “negative” or “poor.” 

So why is Washington whacking safety nets and services that a large portion of Americans need, when we still very much need them?

It’s easy to blame Republicans and the rightwing billionaires that bankroll them, and their unceasing demonization of “big government” as well as deficits. But Democrats in Washington bear some of the responsibility. In last year’s fiscal cliff debate neither party pushed to extend the payroll tax holiday or find other ways to help the working middle class and poor.

Here’s a clue: A new survey of families in the top 10 percent of net worth (done by the American Affluence Research Center) shows they’re feeling better than they’ve felt since 2007, before the Great Recession. 

It’s not just that the top 10 percent have jobs and their wages are rising. The top 10 percent also owns 80 percent of the stock market. And the stock market is up a whopping 24 percent this year.  

The stock market is up even though most Americans are down for two big reasons.

First, businesses are busily handing their cash back to their shareholders – buying back their stock and thereby boosting share prices – rather than using the cash to expand and hire. It makes no sense to expand and hire when most Americans don’t have the money to buy.

The S&P 500 “Buyback Index,” which measures the 100 stocks with the highest buyback ratios, has surged 40 percent this year, compared with a 24% rally for the S&P 500. 

IBM has just approved another $15 billion for share buybacks on top of about $5.6 billion it set aside previously, thereby boosting its share prices even though business is sluggish. In April, Apple announced a $50 billion increase in buybacks plus a 15% rise in dividends, but even this wasn’t enough for multi-billionaire Carl Icahn, who’s now demanding that Apple use more of its $170 billion cash stash to buy back its stock and make Ichan even richer.

Big corporations can also borrow at rock-bottom rates these days in order to buy back even more of their stock — courtesy of the Fed’s $85 billion a month bond-buying program. (Ichan also wants Apple to borrow $150 billion at 3 percent interest, in order to buy back more stock and further enrich himself.)

The second big reason why shares are up while most Americans are down is corporations continue to find new ways to boost profits and share prices by cutting their labor costs – substituting software for people, cutting wages and benefits, and piling more responsibilities on each of the employees that remain.

Neither of these two strategies – buying back stock and paring payrolls – can be sustained over the long run (so you have every right to worry about another Wall Street bubble). They don’t improve a company’s products or customer service.

But in an era of sluggish sales – when the vast American middle class lacks the purchasing power to keep the economy going – these two strategies at least keep shareholders happy. And that means they keep the top 10 percent happy.

Congress, meanwhile, doesn’t know much about the bottom 90 percent. The top 10 percent provide almost all campaign contributions and funding of “independent” ads.

Moreover, just about all members of Congress are drawn from the same top 10 percent – as are almost all their friends and associates, and even the media who report on them.

Get it? The bottom 90 percent of Americans  — most of whom are still suffering from the Great Recession, most of whom have been on a downward escalator for decades — have disappeared from official Washington.

RINFORMATION

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Frontrunning: October 18

  • Republican Civil War Erupts: Business Groups v. Tea Party (BBG)
  • Budget fight leaves Boehner 'damaged' but still standing (Reuters)
  • Madoff Was Like a God, Wizard of Oz, Lawyers Tell Jury (BBG) - just like Bernanke
  • Republicans press U.S. officials over Obamacare snags (Reuters)
  • Brilliant: Fed Unlikely to Trim Bond Buying in October (Hilsenrath)
  • More brilliant: Fed could taper as early as December (FT)
  • Russia Roofing Billionaires Seen Among Country’s Youngest (BBG)
  • Ford's Mulally won't dismiss Boeing, Microsoft speculation (Reuters)
  • China reverses first-half slowdown (FT)
  • NY Fed’s Fired Goldman Examiner Makes Weird Case (BBG)
  • Italian protests against Letta government disrupt transport (Reuters)
  • Transit workers strike again, will hamper Bay Area commute (Reuters)

Overnight Media Digest

WSJ

* SAC Capital and federal prosecutors have agreed in principle on a penalty exceeding $1 billion in a potential criminal settlement that would be the largest ever for an insider-trading case.

* Insurers say the federal healthcare marketplace is generating flawed data that is straining their ability to handle even the trickle of enrollees who have gotten through so far.

* Chinese PC maker Lenovo is actively considering a bid for all of BlackBerry and has signed a non-disclosure agreement with the smartphone maker. ()

* A late surge of cases against low-level offenders will push the SEC's case total close to last year's levels, masking a steep drop in enforcement actions related to the financial crisis. While the total hasn't been announced, it likely will be down at least 5 percent from a near-record high of 734 enforcement cases in fiscal 2012.

* Google posted a 12 percent increase in third-quarter revenue, as it tries to keep pace with its users' shift to mobile devices.

* Video-streaming service Hulu on Thursday named Mike Hopkins as its new chief executive, effective immediately. Hopkins has been president of Fox Networks Group, a division of 21st Century Fox Inc, since 2008 and a member of Hulu's board since 2011.

* A U.S. district judge ordered subprime lender Household International Inc - now part of HSBC Holdings PLC - to pay investors $2.46 billion in a class-action lawsuit, a move that comes several years after a jury found the company liable for securities fraud.

* IBM is shaking up leadership of its growth-markets unit, following disappointing third-quarter results that prompted a critical internal email from CEO Virginia Rometty. She wrote that IBM's strategy is correct, but criticized the company for failing to execute in sales of computer hardware as well as in the growth markets unit, whose sales territory includes markets in Southeast Asia, Eastern Europe, the Middle East and Latin America.

FT

Paul Tucker, the Bank of England's outgoing deputy governor, said regulators need to keep a stronger eye on hedge funds and shadow banks and added it would be disastrous if the economic fragility of banks was recreated outside the mainstream banking sector.

The U.S. Federal Reserve could begin reducing its asset purchases as early as December after the government shutdown sabotaged a crucial month of data and dealt a blow to the world's largest economy.

The next U.S. monthly employment report became a casualty of the U.S. government shutdown with the Department of Labor saying the data would be released after a delay of more than two weeks on Tuesday.

Scottish National Party leader and Scotland's first minister, Alex Salmond was involved in the talks between the management and workers Grangemouth refinery and petrochemicals complex. The management has closed off the refinery demanding that workers accept changes to pay, pensions and union representation in what has turned out to be Scotland's biggest industrial dispute in years.

Google shares rose 8 percent to a record high after the company managed a smooth transition of its advertising business to smartphones and tablets from PCs.

Goldman Sachs managed to protect its profits by slashing the amount of money set aside for year-end bonuses after its fixed-income trading was worse than any other large Wall Street bank's.

Barclays has approached the Court of Appeal to overturn an earlier ruling that allowed Guardian Care Homes, which is suing Barclays over interest-rate swaps, to amend its claim to include Libor-related allegations.

UK Ministers will look at the green measures that have contributed to rising fuel bills after British Gas became the second energy company to increase energy prices.

NYT

* Britain said on Thursday that it would allow Chinese firms to buy stakes in British nuclear power plants and eventually acquire majority holdings. The agreement, which comes with caveats, opens the way for China's fast-growing nuclear industry to play a significant role in Britain's plans to proceed with construction of its first new reactor in nearly two decades.

* The hedge fund SAC Capital Advisors is moving closer to a plea deal with prosecutors that would force it to wind down its business of managing money for outside investors, punctuating its decline from the envy of Wall Street to a firm caught in the government's cross hairs. An agreement to stop operating as an investment adviser is one feature of a larger agreement SAC is negotiating as it seeks to resolve insider trading charges, according to people briefed on the case.

* On Thursday Goldman Sachs Group Inc announced that revenue in its fixed-income, currency and commodities division, a powerful unit inside the bank that in better years has produced more than 35 percent of its entire revenue, dropped 44 percent from year-ago levels. The weakness renewed worries about the headwinds that Goldman and other banks are facing in big money-producing areas like fixed-income trading.

* Google Inc impressed investors, but people's changing behavior on mobile phones and even on desktops threatens the company's main business. The results revealed the company's deep challenges: as its desktop search and advertising businesses mature, along with overall business in the United States, its growth rate is slowing and the amount of money it makes from each ad it sells is falling.

* The United States government sputtered back to life Thursday after President Obama and Congress ended a 16-day shutdown, reopening tourist spots and clearing the way for federal agencies to deliver services and welcome back hundreds of thousands of furloughed workers.

* There is a confusion over the text of the deal that Congress just approved and President Obama signed, but it does not kill the debt ceiling. At first glance, the "default prevention" section of the bill seemed to imply that the president would have the authority in the future to increase the country's debt unilaterally, and that Congress could stop him only by passing a bill forbidding it.

* Roughly 1,500 fires burn above western North Dakota because of the deliberate burning of natural gas by companies rushing to drill for oil without having sufficient pipelines to transport their production. With cheap gas bubbling to the top with expensive oil, the companies do not have an economic incentive to build the necessary gas pipelines, so they flare the excess gas instead.

* As European interest in American craft beers begins to mirror the mania for them stateside, the Duvel Moortgat Brewery of Belgium on Thursday announced a deal to buy the Boulevard Brewing Co, a craft brewery in Kansas City, Missouri.

Canada

THE GLOBE AND MAIL

* Canadian provinces have approved the free-trade agreement with the European Union, but key players Ontario and Quebec are insisting the federal government open its wallet to mitigate some of the impact, notably by compensating dairy producers. Prime Minister Stephen Harper arrived in Brussels on Thursday night and plans to meet with Jose Manuel Barroso, president of the European Commission, on Friday afternoon to sign the agreement.

* The shortage of skilled employees in Canada is deepening, and government policies that tightened the rules governing foreign workers have made the situation worse. That is the message of a new study from global recruiting firm Hays Plc, which surveyed the skills gap in 30 developed countries around the world.

Reports in the business section:

* Lenovo Group Ltd is joining the list of suitors considering a bid for BlackBerry Ltd , raising concerns that the Canadian company's ultra-secure communications network for the global elite might end up owned by a firm based in China.

* Imperial Oil Ltd is looking at a major revamp of its Mackenzie gas project that would see the stalled northern venture reborn as part of an expansive liquefied natural gas development, the company's chief executive says. A shift to LNG is under "serious" consideration as the Mackenzie pipeline's economics remain weak due to the flood of cheap shale gas across the continent, CEO Rich Kruger said in an interview at the company's Calgary headquarters.

NATIONAL POST

* The Quebec government has announced that it will contest the latest nomination to the Supreme Court of Canada, adding a new layer of controversy to the process. The provincial government says it is weighing different options to block the Harper government's appointment of Marc Nadon, which is already under attack.

FINANCIAL POST

* Canada's campaign to win approval in the United States for the Keystone XL pipeline may seem pricey, aggressive, and perhaps out of character - but it is a drop in the bucket compared with the resources and tactics of those rallying against it.

* Air Canada's chief executive, Calin Rovinescu, says he is pleased investors are starting to get on board with the dramatic transformation underway at his airline, including the near-elimination of its multi-billion-dollar pension funding deficit that has twice threatened to upend the company in recent years. But he said there are still plenty of challenges ahead for the country's largest carrier.

China

CHINA SECURITIES JOURNAL

- The China Securities Regulatory Commission approved China Everbright Bank Co Ltd's request to list H shares on Wednesday, according to sources. The bank plans to list in Hong Kong as early as November, but listing is subject to Hong Kong Stock Exchange approval.

- China has started laying the foundations for its fifth-generation mobile telephony network, said Dai Xiaohui, the deputy director of the Ministry of Science and Technology on Thursday at a communications forum.

CHINA DAILY

- China has investigated 129 officials at prefectural level or higher for suspected corruption and bribery from January through August this year, the Supreme People's Procuratorate said on Thursday.

PEOPLE'S DAILY

- Chinese officials should not blindly follow customary practices if such practices lead to waste or are not legal, said a commentary in the paper that acts as the government's mouthpiece. The article highlighted extravagance during opening and closing ceremonies as an example of a traditional practice best curbed.

SHANGHAI DAILY

- Beijing will take half the cars off the city's roads and suspend school classes when there are three straight days of heavy pollution, an official said on Thursday. The plan includes measures to increase buses and extend subway operating hours.

Fly On The Wall 7:00 AM Market Snapshot

ANALYST RESEARCH

Upgrades

AMAG Pharmaceuticals (AMAG) upgraded to Outperform from Neutral at RW Baird
Align Technology (ALGN) upgraded to Buy from Hold at Cantor
Amazon.com (AMZN) upgraded to Buy from Neutral at UBS
CBOE Holdings (CBOE) upgraded to Buy from Neutral at UBS
Essex Property Trust (ESS) upgraded to Buy from Neutral at UBS
Intuit (INTU) upgraded to Buy from Neutral at BofA/Merrill
Peabody Energy (BTU) upgraded to Outperform from Market Perform at BMO Capital
Union Pacific (UNP) upgraded to Buy from Neutral at Goldman
VMware (VMW) upgraded to Overweight from Neutral at JPMorgan
Verizon (VZ) upgraded to Buy from Hold at Deutsche Bank

Downgrades

AMD (AMD) downgraded to Neutral from Buy at BofA/Merrill
Alpha Natural (ANR) downgraded to Underperform from Market Perform at BMO Capital
Amarin (AMRN) downgraded to Neutral from Buy at Citigroup
Aspen Technology (AZPN) downgraded to Neutral from Overweight at JPMorgan
Baxter (BAX) downgraded to Market Perform from Outperform at Raymond James
Fairchild Semiconductor (FCS) downgraded to Hold from Buy at Canaccord
Home Bancshares (HOMB) downgraded to Market Perform from Outperform at Raymond James
International Rectifier (IRF) downgraded to Market Perform at Wells Fargo
LG Display (LPL) downgraded to Neutral from Outperform at Credit Suisse
Monolithic Power (MPWR) downgraded to Market Perform from Outperform at Wells Fargo
Navistar (NAV) downgraded to Underweight from Equal Weight at Barclays
Qualys (QLYS) downgraded to Neutral from Overweight at JPMorgan
SL Green Realty (SLG) downgraded to Hold from Buy at Cantor
Total (TOT) downgraded to Neutral from Buy at UBS
Ultratech (UTEK) downgraded to Hold from Buy at Canaccord
UnitedHealth (UNH) downgraded to Hold from Buy at Cantor

Initiations

Clean Harbors (CLH) initiated with an In-Line at Imperial Capital
Covanta (CVA) initiated with a Hold at Stifel
Fidelity National (FNF) initiated with a Neutral at Janney Capital
Finish Line (FINL) initiated with a Neutral at UBS
First American (FAF) initiated with a Buy at Janney Capital
Gaming & Leisure (GLPIV) initiated with an In-Line at Imperial Capital
Masonite International (DOOR) initiated with an Outperform at RBC Capital
New Residential (NRZ) initiated with a Buy at Sterne Agee
Spectrum Brands (SPB) initiated with an Outperform at BMO Capital
Stewart (STC) initiated with a Neutral at Janney Capital
U.S. Cellular (USM) initiated with an Underperform at FBR Capital

HOT STOCKS

Google CEO said 40% of YouTube traffic comes from mobile
Schlumberger (SLB) said global economic outlook remains unchanged
Fitch cut Darden (DRI) IDR to 'BBB-' from 'BBB', outlook stable
LabCorp (LH) board authorized additional $1B share repurchase program
AMD (AMD) sees PC shipments down 10% in 2013 and 2014
Waste Management (WM) to build renewable natural gas facility

EARNINGS

Companies that beat consensus earnings expectations last night and today include:
Sensient (SXT), F.N.B. Corp. (FNB), AMD (AMD), Las Vegas Sands (LVS), Capital One (COF), Covenant Transportation (CVTI), WD-40 (WDFC), Google (GOOG), Align Technology (ALGN)

Companies that missed consensus earnings expectations include:
Valmont (VMI), Kaiser Aluminum (KALU), B&G Foods (BGS), athenahealth (ATHN), Greenhill & Co. (GHL), Acacia Research (ACTG), Stryker (SYK), Chipotle (CMG)

Companies that matched consensus earnings expectations include:
OceanFirst Financial (OCFC), Western Alliance (WAL), Werner (WERN)

NEWSPAPERS/WEBSITES

  • The long-running drama about when the Fed will start scaling back its $85B a-month bond-buying program might now last longer. It isn't clear when the first move will occur. The Fed is unlikely to start curtailing its bond buying at its next policy meeting Oct. 29-30, the Wall Street Journal reports
  • Bank of America (BAC) is considering a checking account that wouldn't permit customers to overdraw their balances at an ATM or when making an automatic bill payment, sources say, the Wall Street Journal reports
  • Ford (F) CEO Alan Mulally would not confirm or deny media reports that he is being sought to join Boeing (BA) and Microsoft (MSFT), Reuters reports
  • Air France -KLM (AFLYY) is open to giving Alitalia its rightful role in a merged entity but only if certain conditions are met, CEO Alexandre de Juniac told French television. He said Alitalia needs deeper restructuring if Air France is to eventually hike its 25% stake and take control, Reuters reports
  • DBS Group (DBSDY) is among banks that have advanced in bidding for Societe Generale’s (SCGLY) SA’s private banking assets in Asia, sources say. The division oversees about $13B, Bloomberg reports
  • JPMorgan Chase (JPM) agreed to sell 1 Chase Manhattan Plaza to Fosun International, the investment arm of China’s biggest closely held industrial group, for $725M, Bloomberg reports

SYNDICATE

Cinedigm Digital (CIDM) files to sell 7.91M shares of Class A common stock
Crestwood Midstream (CMLP) files to sell 14M common units for limited partners
EV Energy (EVEP) files to sell 5M common units for limited partners
Evercore Partners (EVR) files to sell 3M shares of common stock
Stemline (STML) files to sell $90M of common stock
Voxeljet (VJET) 6.5M share IPO priced at $13.00

Your rating: None

Sharing Rides, Hoarding Profits

 “Disruption” is the zeitgeist of Silicon Valley’s tech industry, especially in the realm of startups. The mythos goes like this: small scrappy hackers with very little capital and a few computers can create new business models that will topple older fossilized companies, even whole industries. In the process the economy will become more efficient and everyone will have more choices. We all win thanks to the new Internet-enabled economy. That’s not at all what is happening in reality, however.

The ideology of disruption goes back a long way in the annals theorizing capitalism, but the current ideology really owes more to Clayton Christensen, a Harvard Business School professor and devout Mormon who has built his academic career on case studies of disruptors. Christensen’s seminal 1998 article in the Harvard Business Review on disruption tells a story about dominant companies atop their industries —Firestone, Xerox, IBM— that were caught flat footed, and in several cases destroyed, by their smaller creative competitors. They failed to innovate and grow beyond their core markets. They failed to recognize the potential of a new technology that would make their existing products and services obsolete. This has fidelity with the actual history of American business.

Christensen, along with his son Matthew, manages a hedge fund that purports to bet on disruptors and short the stock of bumbling giants. Christensen also sponsors a think tank he named after himself, the Christensen Institute, which, according to its web site is, “dedicated to improving the world through disruptive innovation.”

California’s tech entrepreneurs have embraced Christensenian disruption. The big case studies in tech that seem to confirm Christensen’s theory are well known. Digital cameras destroyed film. Personal computers displaced mainframes as the core hardware business, and laptops have since eaten into a huge share of the personal computer market. Now mobile devices are eroding PC sales. None was ever seen as a threat to the existing dominant product and producer, but displacement happened nonetheless. Tapes replaced vinyl, CDs replaced tapes, but MP3s and iTunes-like services have replaced CDs. Cloud is displacing both the idea of storing your data on physical drives you own. Software as a service is chipping away at the idea of buying and owning software. And so on…

In a lot of cases disruption ends up being a battle of big corporations for market share. Consumers and employees within the industry aren’t necessarily better or worse off when the smoke clears and a winner emerges with a new technology and business model.

But the tech boom today is characterized by a another kind of disruption. It’s social disruption. New technologies and business models don’t just attack the existing dominant corporations; they attack social relations and transform non-business spheres of life into methodical instances of economic exchange from which the new tech innovators extract revenue. The tech boom is also characterized by disruption of smaller competitive markets by emergent tech monopolists backed ultimately by huge pools of private equity and giant, monopoly-seeking corporations.

The winners and losers in many cases of disruption are split along existing racial and class lines of inequality. Those with little economic or political power to defend themselves from the disruptors are seeing their livelihoods and communities turned upside down. Their small businesses are being destroyed. Their communities are becoming unaffordable. Those with cultural capital, and access to economic capital have a shot at being disruptive, at skimming some wealth off of deregulated industry and precarious labor. And the wealthy individuals and companies that should be disrupted by a clever tech startup —the tax dodging banks, the Fortune 500, the health care companies and insurance giants— have the resources to defend themselves, fend off the geeks, deploy an equally clever response to retain market share, or to just buyout the scrappy competitor and fold it into their existing empire.

The ridesharing phenomenon reflects all of this and more.

Ridesharing companies like Lyft, Uber, and Sidecar use the ubiquitous ownership of smartphones to connect casual drivers and passenger clients through their proprietary applications. Like any broker they take their cut of the revenue in these transactions, (Lyft, for example, skims 20 percent off each payment made by a passenger through their smartphone.) Ridesharing companies encourage unregulated, hyper-privatized transactions among precarious laborers. Their business model relies on marketizing formerly non-economic spheres of life, like giving a friend a ride in your car, and they have aggressively externalized costs like gas, insurance, payroll, etc. so that profits are maximized and expenses are as close as possible to nonexistent. In doing so they undermine the very existence of the taxi industry, but they also undermine public infrastructure in toto.

Taxis are not just some private sector dinosaur that should be hit from an innovation meteor. Taxis are an integral part of every major city’s transportation infrastructure. Taxis have been strictly regulated to ensure that the industry’s companies and contractor-drivers pay revenue into the city for the infrastructure they use: roads, signals, bridges, signs, sidewalks, etc. In San Francisco taxis generate over ten million dollars each year in revenue for the city to spend on maintaining transport infrastructure. The funds also pay for the costs of regulating the industry through the Taxi Commission. Regulators attempt to shape the industry in important ways to make it more accessible and equitable and therefore democratic. For example, San Francisco’s taxi fleet is 85 percent hybrid or CNG fueled, reducing the fleet’s carbon emissions and improving the health of city residents. This environmental standard is only possible because the industry is regulated, and ridesharing companies like Uber and Lyft undermine this effort. Taxis are also required not to discriminate among passengers, and to serve all parts of the city, among other things that might not be maximally profitable. It’s this public transportation infrastructure, a big part of which is comprised of taxis, that is being disrupted by the ridesharing companies who have inserted themselves as for-profit brokers in the transportation commons.

The people who will lose the most from the unbridled rise of ridesharing are those employed by the taxi industry which is seeing profits disappear. San Francisco’s taxi industry is very decentralized and highly competitive. There are about 31 cab companies today served by 10 dispatch companies, some quite big and some very small. No single firm is dominant. There are about 1,500 cabs authorized to drive within the city. The taxi industry employes several thousand workers. Taxi drivers are predominantly immigrants and people of color, and the average cabbie earns a very low yearly income. In 2000 upwards of 57 percent of San Francisco cab drivers were immigrants, with the largest groups having arrived from South Asia, East Asia, Russia and Africa. Of the 1,540 taxi drivers in the San Francisco, San Mateo, Redwood City metro region the hourly mean wage last year was $14.17, and the annual mean income was a mere $22,440.

When people say the taxi industry is “ripe for disruption,” what they’re saying, besides the real inefficiencies and problems affecting most big city taxi operations, is that it is a decentralized, highly competitive industry, most of whose owners and operators are low-income people of color, many of who are immigrants. They are susceptible because they are marginalized, and because they lack political and economic clout. In San Francisco the cabbies are definitely a noisy political lobby, but up against the tech and venture capital bosses and entrepreneurs, who are most influential in the Mayor’s office, the cab drivers are impotent.

That’s who is being disrupted, a competitive industry that is owned by, and which employes, working class people of color.

So who’s doing the disrupting? Who benefits from this attack on the taxi industry, and more generally on the principle of a regulated transportation sector?

The two biggest ridesharing companies in San Francisco are Uber and Lyft. Although they virtually didn’t exist until two years ago, between them they have raised about $390 million over the past 2 years according to securities filings with the state and SEC. Uber and Lyft are quickly expanding their ridesharing enterprises to New York, LA, Chicago, and other cities far beyond the laboratory of San Francisco.

Where is this money coming from?

Uber’s financial backers include Goldman Sachs, Google Ventures, and four other private equity groups. Perhaps Uber’s biggest financial backer is TPG Capital. Co-founder of TPG, David Bonderman, one of the wealthiest men on earth, is now on Uber’s board of directors. Bonderman’s personal net worth is somewhere in the ballpark of $2.6 billion. TPG reportedly has $55 billion in funds under management making it one of the largest private equity firms in the world.

Uber’s other investors like Menlo Ventures, Benchmark Capital, and First Round Capital are pretty typical of Silicon Valley’s private equity network. The firms are owned and run by mostly white men with Ivy League college pedigrees, places like Stanford, Cornell, Harvard, Yale and other bastions of privilege. The partners at these firms are millionaires, and billionaires are not uncommon. They leverage pension fund, university endowment, and sovereign wealth dollars to invest in speculative ventures as well as established companies (and from their limited partners they extract hefty management fees). To call them members of the 1% would be inaccurate. Many of Silicon Valley’s private equity investors quality as bona fide members of the 0.1% due to the enormous sums of wealth and income at their command. While most are socially liberal, many of them make political investments with influential Democratic and Republican members of Congress to ensure the country’s tax code and business laws allow them maximally build their fortunes.

Lyft’s financial beneficiaries are similarly elite members of the economic hierarchy. Earlier this year Zimride, the ridesharing company that developed Lyft, sold its Zimride ride-sharing application to Enterprise Holdings for an undisclosed sum. (Zimride was the equivalent of a combined craigslist ride-sharing bulletin board and Facebook.) Enterprise Holdings is a giant global corporation that booked $15.4 billion in revenue last year. As a private corporation, Enterprise is owned and controlled by the Taylor family of St. Louis. Jack Taylor, the family’s patriarch, is reportedly worth $11 billion. The Enterprise acquisition of Zimride is an example of how powerful corporate interest often respond to potential disruptors who might undermine their existing product; they purchase them and integrate them into their larger operations. In this case Enterprise, which peddles rental cars it owns, saw Zimride as something that could disrupt their profit stream, so Enterprise gobbled up the disruptor. The way Enterprise does business is changing as a result, but the distribution of economic power isn’t shifting.

Zimride’s Lyft ridesharing product which directly competes with taxi companies and bigger competitors like Uber received $80 million this year, mostly from the Andreessen Horowitz private equity firm. Again, Andreessen Horowitz is about as wealthy and establishment as you can imagine in American business. Marc Adreesseen, who half the firm is named for, got rich from developing one of the first web browsers. From the fortune he obtained doing that he invested in other big tech companies and became wealthy. Today Andreessen is a director of HP and Ebay, two Fortune 500 companies, as well as a director of Facebook.

Ben Horowitz (son of the arch-conservative David Horowitz) was a founder of Opsware, a company Hewlett Packard bought for over a billion dollars back in 2007. Andreessen was a funder of that company. Opsware was possibly a disruptor to established tech companies like HP, so HP devoured it.

Andreessen Horowitz manages probably upwards of $3 billion, and they have dozens of investments. They’re major backers of other disruptive tech startups like Airbnb and Udacity, two companies that are similar to ridesharing in that they are threatening the welfare and livelihoods of low-income communities.

Look across the other smaller ridesharing startups that are competing for market share in this gold rush sector and you’ll see similar stories, fast growing companies with very disruptive business plans backed by very powerful investors. The people who’s lives will be most disrupted are going to be the less powerful working class who toil in the competitive and disorganized taxi and other transit industries. The public sector will be disrupted as it is partially privatized and as regulations are undermined in favor of new rules that allow tech companies to externalize costs as much as possible onto precarious workers. More and more parts of our lives will be transformed into relationships of market exchange. As San Francisco’s recent battles over ridesharing show, this is by no means a “natural” process. It’s politically determined as to what kind of economy we want, and how the rules of the economy will distribute wealth and income and provision for public goods.

Darwin Bond-Graham, a contributing editor to CounterPunch, is a sociologist and author who lives and works in Oakland, CA. His essay on the economic looting of Detroit appears in the September issue of CounterPunch magazine. He is a contributor to Hopeless: Barack Obama and the Politics of Illusion

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When video of the October 14th edition of Thom Hartmann's TV show appears online (here) it will include him asking me to justify not attacking Hitler.  Thom has asked me this repeatedly during multiple appearances on his show, each time a little differently, and each time provocatively.  He's right to ask it, and he's been right in some of the answers he's helped provide in the asking. 

Without Hitler, the U.S. military would collapse.

For 68 years, wars on poor countries have been justified by the pretended discovery of Hitler's reincarnation.  Each time it has turned out to be a false alarm.  Every post-WWII war looks disastrous or at least dubious in retrospect to most people.  And yet, the justification of the next war is always ready to hand, because the real, original Hitler remains alive in our memories, and he just might come back -- who's to say?

Actually, I think anyone vaguely aware of basic facts about the current world ought to be able to say that Hitler is gone for good.

How do I justify not going to war with Hitler, beyond explaining that Assad isn't Hitler, Gadaffi isn't Hitler, Hussein isn't Hitler, and so on? 

Increasingly, I believe we must start with the fact that we live in a different world.  Colonization is gone.  Empires of the old model are gone.  No powerful nation is plotting that sort of global conquest.  In fact, no powerful nation is seriously considering war with other powerful nations. 

During these past 68 years of misidentifying new Hitler after new Hitler, there has in fact been no World War III.  We haven't just made it 25 years.  We'll hit the 75-year mark during the next U.S. presidency.  Nuclear weapons, awareness of the costs, understanding of the lack of benefits, established norms against the seizure of territory, the utter unacceptability of colonialism, and the vast increase in understanding of the power of nonviolent action all work against the waging of wars among the wealthy, armed nations.  Instead, we have proxy wars, wars of exploitation, and poor-on-poor warfare.  And even those wars fail miserably on their own terms.  Occupations collapse.  Puppets grow legs and wander off. 

When World War II happened, war had never been prosecuted as a crime. The prosecutions that followed the war were the first.  The seizure of territory was only beginning to be delegitimized.  Colonialism was still understood as the route to riches, power, and prestige.  War was imagined as a contest between armies on a battlefield, rather than what World War II transformed it into: the slaughter of civilians in their homes. 

When World War II happened, there were no nukes, no satellites, no drones.  There was no (or little) television, no internet, no WikiLeaks.  There was no understanding of the tools of nonviolence.  History contained no nonviolent overthrows of dictatorships, few examples of creative nonviolent resistance to tyranny, no teams of human shields, no Arab Spring, no Civil Rights movement, no overcoming of Apartheid, no bloodless revolutions in Eastern Europe, no peace studies programs, no expertise in conflict resolution, and no viable alternatives to war -- much less the thousands of tools since devised, tested, and refined. 

When we look back at Thomas Jefferson's slavery, we like to excuse it because he lived in an age in which lots of other people engaged in slavery. He didn't know better, we like to say.  He didn't have an easy way out that would be equally profitable with so many side benefits. I think we're a bit generous in this act of forgiving, but I think there's also a grain of truth there. Times do change, and actions are taken in contexts.

When we look back at Franklin Roosevelt's war-making, perhaps we should remember that it took place in an era when nothing else was imagined by many people. Punishing the entire nation of Germany following World War I was not recognized as the time bomb it was, not by most people. Funding fascism as preferable to the horror of communism was not recognized as the Frankenstein experiment it was, not by most people.  Hyping the danger of a Nazi takeover of the world and jumping into a war, and then escalating that war into the very worst thing the world has ever seen, was not viewed as a barbaric choice, was not viewed as a choice at all -- not by many people.

We live in a different era. When our President claims he simply must send missiles into Syria, we tell him to think harder. We can forgive FDR for war-making as we forgive those who engaged in slavery or dueling or blood feuds or witch hunts.  They were products of their times.  But we need not go on acting as if it is forever 1945 -- no matter how much that pretense profits certain people. 

If we were to recognize that Hitler isn't coming back, and that we could resist him without war if he did, we might suddenly begin demanding the things that other nations have and the U.S. could easily afford: healthcare, education, a secure and adequate income, parental leave, vacation leave, retirement, public transit, sustainable energy, etc.  Lockheed and Raytheon and Northrop Grumman would start making solar panels or start departing this world for the pages of history.  In other words, we might shut down the other half of the government from the half that's shut down right now.

The following is an excerpt from my book, War No More: The Case for Abolition:

"There Never Was a Good War or a Bad Peace" or How to Be Against Both Hitler and War

Benjamin Franklin, who said that bit inside the quotation marks, lived before Hitler and so may not be qualified—in the minds of many—to speak on the matter. But World War II happened in a very different world from today's, didn't need to happen, and could have been dealt with differently when it did happen. It also happened differently from how we are usually taught. For one thing, the U.S. government was eager to enter the war, and to a great extent did enter the war, in both the Atlantic and the Pacific, prior to Pearl Harbor.

Pre-WWII Germany might have looked very different without the harsh settlement that followed World War I which punished an entire people rather than the war makers, and without the significant monetary support provided for decades past and ongoing through World War II by U.S. corporations like GM, Ford, IBM, and ITT (see Wall Street and the Rise of Hitler by Anthony Sutton).

(Let me insert a parenthetical remark here that I hope many will find quite silly, but that I know others will need to hear. We are talking about World War II, and I've just criticized someone other than Hitler—namely U.S. corporations—so let me hasten to point out that Hitler still gets to be responsible for every hideous crime he committed. Blame is more like sunshine than like fossil fuels; we can give some to Henry Ford for his support of Hitler without taking the slightest bit away from Adolph Hitler himself and without comparing or equating the two.)

Nonviolent resistance to the Nazis in Denmark, Holland, and Norway, as well as the successful protests in Berlin by the non-Jewish wives of imprisoned Jewish husbands suggested a potential that was never fully realized—not even close. The notion that Germany could have maintained a lasting occupation of the rest of Europe and the Soviet Union, and proceeded to attack in the Americas, is extremely unlikely, even given the 1940s' relatively limited knowledge of nonviolent activism. Militarily, Germany was primarily defeated by the Soviet Union, its other enemies playing relatively minor parts.

The important point is not that massive, organized nonviolence should have been used against the Nazis in the 1940s. It wasn't, and many people would have had to see the world very differently in order for that to have happened. Rather the point is that tools of nonviolence are much more widely understood today and can be, and typically will be, used against rising tyrants. We should not imagine returning to an age in which that wasn't so, even if doing so helps to justify outrageous levels of military spending! We should, rather, strengthen our efforts to nonviolently resist the growth of tyrannical powers before they reach a crisis point, and to simultaneously resist efforts to lay the ground work for future wars against them.

Prior to the attack on Pearl Harbor, which was not then part of the United States, President Franklin Roosevelt had tried lying to the American people about U.S. ships including the Greer and the Kearny, which had been helping British planes track German submarines, but which Roosevelt pretended had been wrongly attacked. Roosevelt also tried to create support for entering the war by lying that he had in his possession a secret Nazi map planning the conquest of South America, as well as a secret Nazi plan for replacing all religions with Nazism. However, the people of the United States rejected the idea of going into another war until the Japanese attack on Pearl Harbor, by which point Roosevelt had already instituted the draft, activated the National Guard, created and begun using a huge Navy in two oceans, traded old destroyers to England in exchange for the lease of its bases in the Caribbean and Bermuda, and secretly ordered the creation of a list of every Japanese and Japanese-American person in the United States.

When President Roosevelt visited Pearl Harbor seven years before the Japanese attack, the Japanese military (which, just like Hitler or anyone else in the world, gets full blame for all of its inexcusable crimes) expressed apprehension. In March 1935, Roosevelt bestowed Wake Island on the U.S. Navy and gave Pan Am Airways a permit to build runways on Wake Island, Midway Island, and Guam. Japanese military commanders announced that they were disturbed and viewed these runways as a threat. So did peace activists in the United States.

In November 1940, Roosevelt loaned China $100m for war with Japan, and after consulting with the British, U.S. Secretary of the Treasury Henry Morgenthau made plans to send the Chinese bombers with U.S. crews to use in bombing Tokyo and other Japanese cities.

For years prior to the attack on Pearl Harbor, the U.S. Navy worked on plans for war with Japan, the March 8, 1939, version of which described "an offensive war of long duration" that would destroy the military and disrupt the economic life of Japan. In January 1941, the Japan Advertiser expressed its outrage over Pearl Harbor in an editorial, and the U.S. ambassador to Japan wrote in his diary: "There is a lot of talk around town to the effect that the Japanese, in case of a break with the United States, are planning to go all out in a surprise mass attack on Pearl Harbor. Of course I informed my government."

On May 24, 1941, the New York Times reported on U.S. training of the Chinese air force, and the provision of "numerous fighting and bombing planes" to China by the United States. "Bombing of Japanese Cities is Expected" read the subheadline.

On July 24, 1941, President Roosevelt remarked, "If we cut the oil off, [the Japanese] probably would have gone down to the Dutch East Indies a year ago, and you would have had a war. It was very essential from our own selfish point of view of defense to prevent a war from starting in the South Pacific. So our foreign policy was trying to stop a war from breaking out there." Reporters noticed that Roosevelt said "was" rather than "is." The next day, Roosevelt issued an executive order freezing Japanese assets. The United States and Britain cut off oil and scrap metal to Japan. Radhabinod Pal, an Indian jurist who served on the war crimes tribunal in Tokyo after the war, called the embargoes a "clear and potent threat to Japan's very existence," and concluded the United States had provoked Japan.

The U.S. government is imposing what it proudly calls "crippling sanctions" on Iran as I write.

On November 15, 1941, Army Chief of Staff George Marshall briefed the media on something we do not remember as "the Marshall Plan." In fact we don't remember it at all. "We are preparing an offensive war against Japan," Marshall said, asking the journalists to keep it a secret.

Ten days later Secretary of War Henry Stimson wrote in his diary that he'd met in the Oval Office with Marshall, President Roosevelt, Secretary of the Navy Frank Knox, Admiral Harold Stark, and Secretary of State Cordell Hull. Roosevelt had told them the Japanese were likely to attack soon, possibly next Monday. It has been well documented that the United States had broken the Japanese' codes and that Roosevelt had access to them.

What did not bring the United States into the war or keep it going was a desire to save Jews from persecution. For years Roosevelt blocked legislation that would have allowed Jewish refugees from Germany into the United States. The notion of a war to save the Jews is found on none of the war propaganda posters and essentially arose after the war was over, just as the idea of the "good war" took hold decades later as a comparison to the Vietnam War.

"Disturbed in 1942," wrote Lawrence S. Wittner, "by rumors of Nazi extermination plans, Jessie Wallace Hughan, an educator, a politician, and a founder of the War Resisters League, worried that such a policy, which appeared 'natural, from their pathological point of view,' might be carried out if World War II continued. 'It seems that the only way to save thousands and perhaps millions of European Jews from destruction,' she wrote, 'would be for our government to broadcast the promise' of an 'armistice on condition that the European minorities are not molested any further. ... It would be very terrible if six months from now we should find that this threat has literally come to pass without our making even a gesture to prevent it.' When her predictions were fulfilled only too well by 1943, she wrote to the State Department and the New York Times, decrying the fact that 'two million [Jews] have already died' and that 'two million more will be killed by the end of the war.' Once again she pleaded for the cessation of hostilities, arguing that German military defeats would in turn exact reprisals upon the Jewish scapegoat. 'Victory will not save them,' she insisted, 'for dead men cannot be liberated.'"

In the end some prisoners were rescued, but many more had been killed. Not only did the war not prevent the genocide, but the war itself was worse. The war established that civilians were fair game for mass slaughter and slaughtered them by the tens of millions. Attempts to shock and awe through mass slaughter failed. Fire-bombing cities served no higher purpose. Dropping one, and then a second, nuclear bomb was in no way justified as a way to end a war that was already ending. German and Japanese imperialism were halted, but the U.S. global empire of bases and wars was born—bad news for the Middle East, Latin America, Korea, Vietnam, Cambodia, Laos, and elsewhere. The Nazi ideology was not defeated by violence. Many Nazi scientists were brought over to work for the Pentagon, the results of their influence apparent.

But much of what we think of as particularly Nazi evils (eugenics, human experimentation, etc.) could be found in the United States as well, before, during, and after the war. A recent book called Against Their Will: The Secret History of Medical Experimentation on Children in Cold War America collects much of what is known. Eugenics was taught in hundreds of medical schools in the United States by the 1920s and by one estimate in three-quarters of U.S. colleges by the mid 1930s. Non-consensual experimentation on institutionalized children and adults was common in the United States before, during, and especially after the U.S. and its allies prosecuted Nazis for the practice in 1947, sentencing many to prison and seven to be hanged. The tribunal created the Nuremberg Code, standards for medical practice that were immediately ignored back home. American doctors considered it "a good code for barbarians." Thus, we had the Tuskegee syphilis study, and the experimentation at the Jewish Chronic Disease Hospital in Brooklyn, the Willowbrook State School on Staten Island, Holmesburg Prison in Philadelphia, and so many others, including U.S. experiments on Guatemalans during the Nuremberg proceedings. Also during the Nuremberg trial, children at the Pennhurst school in southeastern Pennsylvania were given hepatitis-laced feces to eat. Human experimentation increased in the decades that followed. As each story has leaked out we've seen it as an aberration. Against Their Will suggests otherwise. As I write, there are protests of recent forced sterilizations of women in California prisons.

The point is not to compare the relative levels of evilness of individuals or people. The Nazis' concentration camps are very hard to match in that regard. The point is that no side in a war is good, and evil behavior is no justification for war. American Curtis LeMay, who oversaw the fire bombing of Japanese cities, killing hundreds of thousands of civilians, said that if the other side had won he'd have been prosecuted as a war criminal. That scenario wouldn't have rendered the disgusting war crimes of the Japanese or the Germans acceptable or praiseworthy. But it would have led to the world giving them less thought, or at least less exclusive thought. Instead, the crimes of the allies would be the focus, or at least one focus, of outrage.

You need not think that U.S. entry into World War II was a bad idea in order to oppose all future wars. You can recognize the misguided policies of decades that led to World War II. And you can recognize the imperialism of both sides as a product of their time. There are those who, by this means, excuse Thomas Jefferson's slavery. If we can do that, perhaps we can also excuse Franklin Roosevelt's war. But that doesn't mean we should be making plans to repeat either one of those things.

The above is excerpted from War No More: The Case for Abolition.

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The Transatlantic Free Trade Agreement (TAFTA) between the US and EU intends to create the world's largest free trade area, 'protect' investment and remove ‘unnecessary regulatory barriers’. Corporate interests are driving the agenda, with the public having been sidelined. Unaccountable, pro-free-trade bureaucrats from both sides of the Atlantic are facilitating the strategy (1) 

In addition to the biotech sector and Big Pharma, groups lobbying for the deal have included Toyota, General Motors, IBM and the powerful lobby group the Chamber of Commerce of the US. Business Europe, the main organisation representing employers in Europe, launched its own strategy on an EU-US economic and trade partnership in early 2012. Its suggestions were widely included in the draft EU mandate.


An increasing number of politicians and citizens groups have criticised the secretive negotiations and are demanding that they be conducted in an open way. This is growing concern that the negotiations could result in the opening of the floodgates for GMOs and shale gas (fracking) in Europe, the threatening of digital and labour rights or the empowering of corporations to legally challenge a wide range of regulations which they dislike.


One of the key aspects of the negotiations is that both the EU and US should recognise their respective rules and regulations, which in practice could reduce regulation to the lowest common denominator. The official language talks of ‘mutual recognition’ of standards or so-called reduction of non-tariff barriers. For the EU, that could mean accepting US standards in many areas, including food and agriculture, which are lower than the EU's.


The US wants all so-called barriers to trade, including controversial regulations such as those protecting agriculture, food or data privacy, to be removed. Even the leaders of the Senate Finance Committee, in a letter to U.S. Trade Representative Ron Kirk, made it clear that any agreement must reduce EU restrictions on genetically modified crops, chlorinated chickens and hormone-treated beef.


The public in Europe does not want such things. People want powerful corporations to be held to account and their pratices regulated by elected representatives who they trust to protect their interests, the public good. However, the TAFTA seems an ideal opportunity for corporations to force wholly unpopular and dangerous policies through via secretive, undemocratic means. They have been unable to do this in a democratic and transparent manner, so secret back room deals represent a different option.


Corporate demands include an “ambitious liberalisation of agricultural trade barriers with as few exceptions as possible.” Food lobby group Food and Drink Europe, representing the largest food companies (Unilever, Kraft, Nestlé, etc.), has welcomed the negotiations, with one of their key demands being the facilitation of the low level presence of unapproved genetically modified crops. This is a long-standing industry agenda also supported by feed and grain trading giants, including Cargill, Bunge, ADM and the big farmers' lobby COPA-COGECA. Meanwhile, the biotech industry on both sides of the Atlantic is offering its “support and assistance as the EU and the US government look to enhance their trade relationship.”


New Report


If the pro-free-market bureaucrats and corporations get their way and successfully bar the public from any kind of meaningful information input into the world’s biggest trade deal ever to be negotiated, Europeans could end up becoming the victims of one of the biggest corporate stitch ups ever. Left unchallenged, it will allow huge private interests to dig their profiteering snouts into the trough of corporate greed at the expense of ordinary people.


And that’s not hyperbole. Such a view is confirmed by the release of a new report on the eve of the second round of negotiations that are due to begin in Brussels next week.


The report, published by the Seattle to Brussels Network (S2B) (2), reveals the true human and environmental costs of the proposed TAFTA. ‘A Brave New Transatlantic Partnership highlights how the European Commission’s promises of up to 1% GDP growth and massive job creation through the EU-US trade deal are not supported even by its own studies, which predict a growth rate of just 0.01% GDP over the next ten years and the potential loss of jobs in several economic sectors, including agriculture.


The report also explains how corporations are lobbying EU-US trade negotiators to use the deal to weaken food safety, labour, health and environmental standards as well as undermine digital rights. Attempts to strengthen banking regulation in the face of the financial crisis could also be jeopardised as the financial lobby uses the secretive trade negotiations to undo financial reforms, such as restrictions on the total value of financial transactions or the legal form of its operations.


Kim Bizzarri, the author of the report:

“Big business lobbies on both sides of the Atlantic view the secretive trade negotiations as a weapon for getting rid of policies aimed at protecting European and US consumers, workers and our planet. If their corporate wish-list is implemented, it will concentrate even more economic and political power within the hands of a small elite, leaving all of us without protection from corporate wrongdoings.”

The report also warns that the agreement could open the floodgate to multi-million Euro lawsuits from corporations who can challenge democratic policies at international tribunals if they interfere with their profits.

Pia Eberhardt, trade campaigner with Corporate Europe Observatory and author of ‘A transatlantic corporate bill of rights’:

“The proposed investor rights in the transatlantic trade deal show what it is really about: It’s a power grab from corporations to rein in democracy and handcuff governments that seek to regulate in the public interest. It’s only a matter of time before European citizens start paying the price in higher taxes and diminished social protection.”

Consumer watchdogs, digital rights and trade activists, environmentalists and trade unions are preparing to fight the corporate dystopia put forward in the EU-US trade deal.


Luis Rico of Ecologistas en Acción, a member of the Seattle to Brussels network:

“We hope that the disturbing evidence we provide will show why all concerned citizens and parliamentarians on both sides of the Atlantic need to urgently mobilise against the proposed EU-US trade deal. We have to derail this corporate power grab that threatens to worsen the livelihood of the millions of people already seriously affected by the financial crisis and by the crippling consequences of Europe's austerity reforms.”


Do we want increasingly bad and unhealthy food, our rights at work being further eroded, the environment being damaged in the chase for profit, ever greater reckless gambling in the financial sector or our elected representatives being by-passed via international tribunals? Of course we don’t. 


Where is the democracy surrounding this proposed TAFTA? Where is ordinary people’s  protection from the ‘free’ market corporate-financial cabals that ultimately drive global economic policy and geo-political strategies? By translating corporate power into political influence at the G8, G20, WTO, NATO or elsewhere, whether it is by war, threats, debts or coercion, secretive and undemocratic free trade agreements are but one tool that very powerful corporations use in an attempt to cast the world in their own image (3,4).


The TAFTA is little more than an attempt at a corporate power grab masquerading as something that promotes growth, freedom, harmony and job creation. Those claims are bogus. It must be stopped



Notes



2)  The Seattle to Brussels Network (S2B) includes development, environmental, human rights, women and farmers organisations, trade unions and social movements working together for a truly sustainable, just and democratic trade policy in Europe. Corporate Europe Observatory is one of its members.




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The Transatlantic Free Trade Agreement (TAFTA) between the US and EU is currently being negotiated. The deal plans to create the world's largest free trade area, 'protect' investment and remove ‘unnecessary regulatory barriers’. All well and good for big business, but the treaty poses a serious threat for ordinary people as it could weaken labour, social, environmental and consumer protection standards. Given the issues at stake, just how much transparency and democratic accountability is there regarding these negotiations and who is driving the agenda?

The deal has been masterminded by the 'High Level Working Group on Jobs and Growth' (HLWG), which was set up in 2011 and chaired by European Trade Commissioner Karel De Gucht and the then US Trade Representative Ron Kirk. In its final report, the Group not only recommended entering into the negotiations, but went into some detail as to what should be put on the table, with the far-reaching aim of moving towards a “transatlantic marketplace.”


With so much at stake, the public should know just who sat on the HLWG which set the whole process in motion. According to the European Commission (EC), the group has no identifiable members. The EC has also stated that “several departments” contributed to the discussion and the reports of the (memberless) group, but added that “there is no document containing the list of authors of the reports.”  


A request by Corporate Europe Observatory (CEO) to disclose membership/report authors was met with the response: “Unfortunately we (the EC) are not in a position to provide you with the information requested.”


CEO argues that the group should be subject to the transparency requirements set up in EC’s rules on ‘expert groups, including transparency about who participated. But it is patently not.


When asked about the ‘outside expertise’ (as the EC calls it) that had influenced the reports produced by the HLWG, CEO was told that the impact assessment of the proposed EU-US trade deal contained a summary of the expert evidence gathered since its inception. CEO was also directed to the Commission’s overview page for public consultations, where it is stated that more than 65 percent of the input to the first two consultations on the proposed EU-US deal came from companies and industry associations.


CEO has also requested information about the EC’s contacts with industry lobby groups wanting to influence the trade pact. It asked for a list of meetings with such lobby groups, minutes and related correspondence. The Commission responded that this "concerns a very large number of documents" and asked CEO to "narrow down the scope of your request, so as to reduce it to a more manageable amount of documents." Six weeks after CEO’s request and after several email exchanges, CEO was told that the Commission was “currently in the early stages of assessing your request and [...] not yet in a position to give a detailed estimate of the number of documents potentially covered.” The Commission official added: “Our best guess for the moment is that we will only have a first overview of the situation during the middle of June and will update you at that point.”


While still waiting for more information on what seems to be hundreds of documents related to big business lobbying around the EU-US trade deal, CEO fared better with an access to information request to the United States Trade Representative.


Based on the information provided, CEO discovered that the authoritative-sounding ‘high level working groups on growth and jobs’ was nothing but a bunch of unelected and unaccountable, notorious pro-free-trade bureaucrats from both sides of the Atlantic.


Of course, even without access to various sources of information, we already know who supports the negotiations. CEO notes that in addition to the biotech sector, groups lobbying for the deal have included Toyota, General Motors,the pharmaceutical industryIBM and the Chamber of Commerce of the US, one of the most powerful corporate lobby groups in the US. Business Europe, the main organization representing employers in Europe, launched its own strategy on an EU-US economic and trade partnershipin early 2012. Its suggestions were widely included in the draft EU mandate.


An increasing number of politicians and citizens groups are demanding that the looming EU-US negotiations be conducted in an open way, not least because there are concerns that the deal will open the floodgate for GMOs and shale gas (fracking) in Europe, threatens digital and labour rights and will empower corporations to legally challenge a wide range of regulations which they dislike.One of the key aspects of the negotiations is that both the EU and US should recognize their respective rules and regulations, which in practice could reduce regulation to the lowest common denominator. The official language talks of "mutual recognition" of standards or so-called reduction of non-tariff barriers. For the EU, that could mean accepting US standards in many areas, including food and agriculture, which are lower than the EU's.


The US wants all so-called barriers to trade, including highly controversial regulations such as those protecting agriculture, food or data privacy, to be removed. Even the leaders of the Senate Finance Committee, in a letter to U.S. Trade Representative Ron Kirk, made it clear that any agreement must also reduce EU restrictions on genetically modified crops, chlorinated chickens and hormone-treated beef.


Demands include an “ambitious liberalisation of agricultural trade barriers with as few exceptions as possible”. Similarly, food lobby group Food and Drink Europe, representing the largest food companies (Unilever, Kraft, Nestlé, etc.), has welcomed the negotiations, with one of their key demands being the facilitation of the low level presence of unapproved genetically modified crops. This is a long-standing industry agenda also supported by feed and grain trading giants, including Cargill, Bunge, ADM, and the big farmers' lobby COPA-COGECA.. Meanwhile, the biotech industry on both sides of the Atlantic is offering its “support and assistance as the EU and the US government look to enhance their trade relationship.”


As with the EU-India Free Trade Agreement*, it is easy to conclude that there is a deliberate ploy to bar the public from any kind of meaningful information about or input into the world’s biggest trade deal ever to be negotiated. Europeans could well end up becoming the victims of one of the biggest corporate stitch ups ever. The trade deal appears to be a unique opportunity to achieve through closed and non-transparent negotiations what hasn't been possible so far in a transparent and democratic way.


Little wonder that many millions throughout Europe now regard the EU as an unaccountable proxy allowing huge private interests free reign to dig their profiteering snouts into the trough of corporate greed at the expense of ordinary people.    


Notes



Main information source for this article: http://corporateeurope.org/blog/who-scripting-eu-us-trade-deal (Trade and Agribusiness website sections)


To prevent GM crops in Europe, visit ‘stop the crop’ campaign at:http://www.stopthecrop.org/about-stop-crop-campaign



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16 Giant Corporations That Have Basically Stopped Paying Taxes — While Also Cutting Jobs!

It's a golden age for corporate profits. So why don't our biggest corporations pay more taxes?

March 18, 2013  |  

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The brackets are set for the big dance — the dance around tax responsibility. Most of the teams are in the bottom bracket. In this league, the lowest score wins.

Outside the stadium our nation's kids and seniors and low-income mothers may be dealing with  food and housing cuts, but on the corporate playing floor new low-tax records are being set again this year. Just as this is a golden age for sports, this is also, as noted by the  New York Times, "a golden age for corporate profits."

Corporations have simply stopped paying their taxes, perhaps using the 2008 recession as an excuse to plead hardship, but then never restoring their tax obligations when business got better. The facts are indisputable. For over 20 years, from 1987 to 2008, corporations paid an average of 22.5% in federal taxes. Since the recession, this has  dropped to 10% -- even though their profits have doubled in less than ten years.

Pay Up Now just completed a compilation of corporate tax payments over the past five years, using  SEC data as reported by the companies themselves. The firms chosen are top-earners who have filed 10-K reports through 2012. Their US Tax figures represent the five-year total of "current" payments.

The 64 corporate teams paid just over  8% in taxes over the five-year period.

The Slink Sixteen

General Electric: The  worst tax record over five years, with $81 billion in profits and a $3 billion refund.

Boeing: In addition to receiving a refund despite $21.5 billion in profits, the company ranked high in  job cutting, underfunded pensions, and contractor misconduct.

Exxon Mobil: Made by far the largest profits in the group, but paid less than 1% in U.S. taxes, and yet received  oil subsidies along with their tax breaks. Unabashedly reports a 2012  "theoretical tax" of over $27 billion, almost 90% of its total income tax expense. The company was also near the top in  contractor misconduct.

Verizon: Second worst tax record, with a refund despite $48 billion in profits.

Kraft Foods: Received a refund from the public despite $13.5 billion in profits. Also a leading  job-cutter.

Citigroup: One of the five big banks who are estimated to get a  bailout/refund from the American public amounting to three cents from every tax dollar.

Dow Chemical: Received a refund despite almost $10 billion in profits.

IBM: Paid less than 3% in taxes while ranking as one of the leading  job cutters, and near the top in  contractor misconduct.

Chevron: In addition to a meager 4.3% tax rate and a share of oil subsidies, the company has been the main beneficiary of  tax-exempt government bonds.

FedEx: The company paid less than 5% in federal taxes while relying on the  publicly-funded Post Office to deliver thirty percent of its ground packages.

Honeywell: Less than 6% in taxes, a leading  job cutter, near the top in instances of  contractor misconduct, and run by the "Fix the Debt" CEO with the  largest pension fund.

An 8% tax rate, a leader in  job cuts and underfunded pensions, and in the top 20 of  contractor misconduct instances.

Notable for an 8.4% tax rate,  job cuts, offshore holdings, and the top U.S. spot on the  contractor misconduct dollar list.

Apple: Where to begin? Avoiding  federal taxes, avoiding  state taxes, hiding overseas earnings, engaging in  intellectual property schemes, using the  "Double Irish" to transfer profits from Europe to Bermuda, and  underpaying its store workers despite conducting most of its product and research development in the United States.

Pfizer: One of the leaders in stockpiling  untaxed profits overseas, and right behind Merck in  contractor misconduct dollars.

Google: A master at the  "Double Irish" revenue shift to Bermuda tax havens, while using tax loopholes to bring a lot of the money  back to the U.S. without paying taxes on it.  Recognized as one of the  world's biggest tax avoiders.

Microsoft: Named as one of the biggest  offshore hoarders while using tax strategies to bring much of their untaxed money back to the U.S., where it also  avoids state taxes.

US Sponsored Coup d’Etat: The Destabilization of Haiti

aristide

Author’s Note

This article was written nine years ago, in the last days of February 2004 in response to the barrage of disinformation in the mainstream media. It was completed on February 29th, the day of President Jean Bertrand Aristide’s kidnapping and deportation by US Forces.

The armed insurrection which contributed to unseating President Aristide on February 29th 2004 was the result of a carefully staged military-intelligence operation, involving the US, France and Canada. The 2004 coup had set the stage for the installation of US puppet government in Port au Prince, which takes orders directly from Washington.

Michel Chossudovsky, Global Research, February 26, 2013


(Minor editorial corrections were made to the original draft since its publication on February 29th 2004, the title of article predates the actual Coup D’Etat which was in the making at the time of writing)

original article published at http://globalresearch.ca/articles/CHO402D.html

by Michel Chossudovsky

The Rebel paramilitary army crossed the border from the Dominican Republic in early February. It constitutes a well armed, trained and equipped paramilitary unit integrated by former members of Le Front pour l’avancement et le progrès d’Haiti (FRAPH), the  “plain clothes” death squadrons, involved in mass killings of civilians and political assassinations during the CIA sponsored 1991 military coup, which led to the overthrow of the democratically elected government of President Jean Bertrand Aristide

The self-proclaimed Front pour la Libération et la reconstruction nationale (FLRN) (National Liberation and Reconstruction Front) is led by Guy Philippe, a former member of the Haitian Armed Forces and Police Chief. Philippe had been trained during the 1991 coup years by US Special Forces in Ecuador, together with a dozen other Haitian Army officers. (See Juan Gonzalez, New York Daily News, 24 February 2004).

The two other rebel commanders and associates of Guy Philippe, who led the attacks on Gonaives and Cap Haitien are Emmanuel Constant, nicknamed “Toto” and Jodel Chamblain, both of whom are former Tonton Macoute and leaders of FRAPH.

In 1994, Emmanuel Constant led the FRAPH assassination squadron into the village of Raboteau, in what was later identified as “The Raboteau massacre”:

“One of the last of the infamous massacres happened in April 1994 in Raboteau, a seaside slum about 100 miles north of the capital. Raboteau has about 6,000 residents, most fishermen and salt rakers, but it has a reputation as an opposition stronghold where political dissidents often went to hide… On April 18 [1994], 100 soldiers and about 30 paramilitaries arrived in Raboteau for what investigators would later call a “dress rehearsal.” They rousted people from their homes, demanding to know where Amiot “Cubain” Metayer, a well-known Aristide supporter, was hiding. They beat people, inducing a pregnant woman to miscarry, and forced others to drink from open sewers. Soldiers tortured a 65-year-old blind man until he vomited blood. He died the next day.

The soldiers returned before dawn on April 22. They ransacked homes and shot people in the streets, and when the residents fled for the water, other soldiers fired at them from boats they had commandeered. Bodies washed ashore for days; some were never found. The number of victims ranges from two dozen to 30. Hundreds more fled the town, fearing further reprisals.” (St Petersburg Times, Florida, 1 September 2002)

During the military government (1991-1994), FRAPH was (unofficially) under the jurisdiction of the Armed Forces, taking orders from Commander in Chief General Raoul Cedras. According to a 1996 UN Human Rights Commission report, FRAPH had been supported by the CIA.

Under the military dictatorship, the narcotics trade, was protected by the military Junta, which in turn was supported by the CIA. The 1991 coup leaders including the FRAPH paramilitary commanders were on the CIA payroll. (See Paul DeRienzo,   http://globalresearch.ca/articles/RIE402A.html , See also see Jim Lobe, IPS, 11 Oct 1996). Emmanuel Constant alias “Toto” confirmed, in this regard, in a CBS “60 Minutes” in 1995, that the CIA paid him about $700 a month and that he created FRAPH, while on the CIA payroll. (See Miami Herald, 1 August 2001). According to Constant, the FRAPH had been formed “with encouragement and financial backing from the U.S. Defense Intelligence Agency and the CIA.” (Miami New Times, 26 February 2004)

The Civilian “Opposition” 

The so-called “Democratic Convergence” (DC) is a group of some 200 political organizations, led by former Port-au-Prince mayor Evans Paul.  The “Democratic Convergence” (DC) together with “The Group of 184 Civil Society Organizations” (G-184) has formed a so-called “Democratic Platform of Civil Society Organizations and Opposition Political Parties”.

The Group of 184 (G-184), is headed by Andre (Andy) Apaid, a US citizen of Haitian parents, born in the US. (Haiti Progres, http://www.haiti-progres.com/eng11-12.html ) Andy Apaid owns Alpha Industries, one of Haiti’s largest cheap labor export assembly lines established during the Duvalier era. His sweatshop factories produce textile products and assemble electronic products for a number of US firms including Sperry/Unisys, IBM, Remington and Honeywell. Apaid is the largest industrial employer in Haiti with a workforce of some 4000 workers. Wages paid in Andy Apaid’s factories are as low as 68 cents a day. (Miami Times, 26 Feb 2004). The current minimum wage is of the order of $1.50 a day:

“The U.S.-based National Labor Committee, which first revealed the Kathie Lee Gifford sweat shop scandal, reported several years ago that Apaid’s factories in Haiti’s free trade zone often pay below the minimum wage and that his employees are forced to work 78-hour weeks.” (Daily News, New York, 24 Feb 2004)

Apaid was a firm supporter of the 1991 military coup. Both the Convergence démocratique and the G-184 have links to the FLRN (former  FRAPH death squadrons) headed by Guy Philippe. The FLRN is also known to receive funding from the Haitian business community.

In other words, there is no watertight division between the civilian opposition, which claims to be non-violent and the FLRN paramilitary. The FLRN is collaborating with the so-called “Democratic Platform.”

The Role of the National Endowment for Democracy (NED)

In Haiti, this “civil society opposition” is bankrolled by the National Endowment for Democracy which works hand in glove with the CIA. The Democratic Platform is supported by the International Republican Institute (IRI) , which is an arm of the National Endowment for Democracy (NED). Senator John McCain is Chairman of IRI’s Board of Directors. (See Laura Flynn, Pierre Labossière and Robert Roth, Hidden from the Headlines: The U.S. War Against Haiti, California-based Haiti Action Committee (HAC), http://www.haitiprogres.com/eng11-12.html ).

G-184 leader Andy Apaid was in liaison with Secretary of State Colin Powell in the days prior to the kidnapping and deportation of President Aristide by US forces on February 29. His umbrella organization of elite business organizations and religious NGOs, which is also supported by the International Republican Institute (IRI), receives sizeable amounts of money from the European Union.(http://haitisupport.gn.apc.org/184%20EC.htm ).

It is worth recalling that the NED, (which overseas the IRI) although not formally part of the CIA, performs an important intelligence function within the arena of civilian political parties and NGOs. It was created in 1983, when the CIA was being accused of covertly bribing politicians and setting up phony civil society front organizations. According to Allen Weinstein, who was responsible for setting up the NED during the Reagan Administration: “A lot of what we do today was done covertly 25 years ago by the CIA.” (‘Washington Post’, Sept. 21, 1991). 

The NED channels congressional funds to the four institutes: The International Republican Institute (IRI), the National Democratic Institute for International Affairs (NDI), the Center for International Private Enterprise (CIPE), and the American Center for International Labor Solidarity (ACILS). These organizations are said to be “uniquely qualified to provide technical assistance to aspiring democrats worldwide.” See IRI, http://www.iri.org/history.asp )

In other words, there is a division of tasks between the CIA and the NED. While the CIA provides covert support to armed paramilitary rebel groups and death squadrons, the NED and its four constituent organizations finance “civilian”  political parties and non governmental organizations with a view to instating American “democracy” around the World.

The NED constitutes, so to speak, the CIA’s “civilian arm”. CIA-NED interventions in different part of the World are characterized by a consistent pattern, which is applied in numerous countries.

The NED provided funds to  the “civil society” organizations in Venezuela, which initiated an attempted coup against President Hugo Chavez. In Venezuela it was the “Democratic Coordination”, which was the recipient of NED support; in Haiti it is the “Democratic Convergence” and G-184.

Similarly, in former Yugoslavia, the CIA channeled support to the Kosovo Liberation Army (KLA) (since 1995), a paramilitary group involved in terrorist attacks on the Yugoslav police and military. Meanwhile, the NED through the  “Center for International Private Enterprise” (CIPE) was backing the DOS opposition coalition in Serbia and Montenegro. More specifically, NED was financing the G-17, an opposition group of  economists responsible for formulating (in liaison with the IMF) the DOS coalition’s  “free market” reform platform in the 2000 presidential election, which led to the downfall of Slobodan Milosevic.  

The IMF’s Bitter “Economic Medicine”

The IMF and the World Bank are key players in the process of economic and political destabilization. While carried out under the auspices of an intergovernmental body, the IMF reforms tend to support US strategic and foreign policy objectives.

Based on the so-called “Washington consensus”, IMF austerity and restructuring measures through their devastating impacts, often contribute to triggering social and ethnic strife. IMF reforms have often precipitated the downfall of elected governments. In extreme cases of economic and social dislocation, the IMF’s bitter economic medicine has contributed to the destabilization of entire countries, as occurred in Somalia, Rwanda and Yugoslavia. (See Michel Chossudovsky, The globalization of Poverty and the New World Order, Second Edition, 2003, http://globalresearch.ca/globaloutlook/GofP.html )

The IMF program is a consistent instrument of economic dislocation. The IMF’s reforms contribute to reshaping and downsizing State institutions through drastic austerity measures. The latter are implemented alongside other forms of intervention and political interference, including CIA covert activities in support of rebel paramilitary groups and opposition political parties.

Moreover, so-called “Emergency Recovery” and “Post-conflict” reforms are often introduced under IMF guidance, in the wake of a civil war, a regime change or “a national emergency”.

In Haiti, the IMF sponsored  “free market” reforms have been carried out consistently since the Duvalier era. They have been applied in several stages since the first election of president Aristide in 1990. 

The 1991 military coup, which took place 8 months following Jean Bertrand Aristide’s accession to the presidency, was in part intended to reverse the Aristide government’s progressive reforms and reinstate the neoliberal policy agenda of the Duvalier era.

A former World Bank official Mr. Marc Bazin was appointed Prime minister by the Military Junta in June 1992. In fact, it was the US State Department which sought his appointment.

Bazin had a track record of working for the “Washington consensus.”  In 1983, he had been appointed Finance Minister under the Duvalier regime, In fact he had been recommended to the Finance portfolio by the IMF: “President-for-Life Jean-Claude Duvalier had agreed to the appointment of an IMF nominee, former World Bank official Marc Bazin, as Minister of Finance”. (Mining Annual Review, June, 1983). Bazin, who was considered Washington’s “favorite”, later ran against Aristide in the 1990 presidential elections.

Bazin, was called in by the Military Junta in 1992 to form a so-called  “consensus government”. It is worth noting that it was precisely during Bazin’s term in office as Prime Minister that the political massacres and extra judicial killings by the CIA supported FRAPH death squadrons were unleashed, leading to the killing of more than 4000 civilians. Some 300,000 people became internal refugees,  “thousands more fled across the border to the Dominican Republic, and more than 60,000 took to the high seas” (Statement of Dina Paul Parks, Executive Director, National Coalition for Haitian Rights, Committee on Senate Judiciary, US Senate, Washington DC, 1 October 2002). Meanwhile, the CIA had launched a smear campaign representing Aristide as “mentally unstable” (Boston Globe, 21 Sept 1994).

The 1994 US Military Intervention

Following three years of military rule, the US intervened in 1994, sending in 20,000 occupation troops and “peace-keepers” to Haiti. The US military intervention was not intended to restore democracy. Quite the contrary: it was carried out to prevent a popular insurrection against the military Junta and its neoliberal cohorts.

In other words, the US military occupation was implemented to ensure political continuity.

While the members of the military Junta were sent into exile, the return to constitutional government required compliance to IMF diktats, thereby foreclosing the possibility of a progressive “alternative” to the neoliberal agenda. Moreover, US troops remained in the country until 1999. The Haitian armed forces were disbanded and the US State Department hired a mercenary company DynCorp to provide “technical advice” in restructuring the Haitian National Police (HNP).

“DynCorp has always functioned as a cut-out for Pentagon and CIA covert operations.” (See Jeffrey St. Clair and Alexander Cockburn,  Counterpunch, February 27, 2002, http://www.corpwatch.org/issues/PID.jsp?articleid=1988 ) Under DynCorp advice in Haiti, former Tonton Macoute and Haitian military officers involved in the 1991 Coup d’Etat were brought into the HNP. (See Ken Silverstein, Privatizing War, The Nation, July 28, 1997, http://www.mtholyoke.edu/acad/intrel/silver.htm )

In October 1994, Aristide returned from exile and reintegrated the presidency until the end of his mandate in 1996. “Free market” reformers  were brought into his Cabinet. A new wave of deadly macro-economic policies was adopted under a so-called Emergency Economic Recovery Plan (EERP) “that sought to achieve rapid macroeconomic stabilization, restore public administration, and attend to the most pressing needs.” (See IMF Approves Three-Year ESAF Loan for Haiti, Washington, 1996, http://www.imf.org/external/np/sec/pr/1996/pr9653.htm ).

The restoration of Constitutional government had been negotiated behind closed doors with Haiti’s external creditors. Prior to Aristide’s reinstatement as the country’s president, the new government was obliged to clear the country’s debt arrears with its external creditors. In fact the new loans provided by the  World Bank, the  Inter-American Development Bank (IDB), and the IMF were used to meet Haiti’s obligations with international creditors. Fresh money was used to pay back old debt leading to a spiraling external debt.

Broadly coinciding with the military government, Gross Domestic Product (GDP) declined by 30 percent (1992-1994). With a per capita income of $250 per annum, Haiti is the poorest country in the Western hemisphere and among the poorest in the world. (see World Bank, Haiti: The Challenges of Poverty Reduction, Washington, August 1998, http://lnweb18.worldbank.org/External/lac/lac.nsf/0/8479e9126e3537f0852567ea000fa239/$FILE/Haiti1.doc ).

The World Bank estimates unemployment to be of the order of 60 percent. (A 2000 US Congressional Report estimates it to be as high as 80 percent. See US House of Representatives, Criminal Justice, Drug Policy and Human Resources Subcommittee, FDHC Transcripts, 12 April 2000).

In the wake of three years of military rule and economic decline, there was no “Economic Emergency Recovery” as envisaged under the IMF loan agreement. In fact quite the opposite: The IMF imposed  “stabilization” under the “Recovery” program required further budget cuts in  almost non-existent social sector programs.  A civil service reform program was launched, which consisted in reducing the size of the civil service and the firing of “surplus” State employees. The IMF-World Bank package was in part instrumental in the paralysis of public services, leading to the eventual demise of the entire State system. In a country where health and educational services were virtually nonexistent, the IMF had demanded the lay off of “surplus” teachers and health workers with a view to meeting its target for the budget deficit.   

Washington’s foreign policy initiatives were coordinated with the application of the IMF’s deadly economic medicine. The country had been literally pushed to the brink of economic and social disaster.

The Fate of Haitian Agriculture

More than 75 percent of the Haitian population is engaged in agriculture, producing both food crops for the domestic market as well a number of cash crops for export. Already during the Duvalier era, the peasant economy had been undermined. With the adoption of the IMF-World Bank sponsored trade reforms, the agricultural system, which previously produced food for the local market, had been destabilized. With the lifting of trade barriers, the local market was opened up to the dumping of US agricultural surpluses including rice, sugar and corn, leading to the destruction of the entire peasant economy. Gonaives, which used to be Haiti’s rice basket region, with extensive paddy fields had been precipitated into bankruptcy:

. “By the end of the 1990s Haiti’s local rice production had been reduced by half and rice imports from the US accounted for over half of local rice sales. The local farming population was devastated, and the price of rice rose drastically “ ( See Rob Lyon, Haiti-There is no solution under Capitalism! Socialist Appeal, 24 Feb. 2004, http://cleveland.indymedia.org/news/2004/02/9095.php ).

In matter of a few years, Haiti, a small impoverished country in the Caribbean, had become the World’s fourth largest importer of American rice after Japan, Mexico and Canada.

The Second Wave of IMF Reforms

The presidential elections were scheduled for November 23, 2000. The Clinton Administration had put an embargo on development aid to Haiti in 2000. Barely two weeks prior to the elections, the outgoing administration signed a Letter of Intent with the IMF. Perfect timing: the agreement with the IMF virtually foreclosed from the outset any departure from the neoliberal agenda.

The Minister of Finance had sent the amended budget to the Parliament on December 14th. Donor support was conditional upon its rubber stamp approval by the Legislature. While Aristide had promised to increase the minimum wage, embark on school construction and  literacy programs, the hands of the new government were tied. All major decisions regarding the State budget, the management of the public sector, public investment, privatization, trade and monetary policy had already been taken. They were part of the agreement reached with the IMF on November 6, 2000.

In 2003, the IMF imposed the application of a so-called “flexible price system in fuel”, which immediately triggered an inflationary spiral. The currency was devalued. Petroleum prices increased by about 130 percent in January-February 2003, which served to increase popular resentment against the Aristide government, which had supported the implementation of the IMF economic reforms.

The hike in fuel prices contributed to a 40 percent increase in consumer prices (CPI) in 2002-2003 (See Haiti—Letter of Intent, Memorandum of Economic and Financial Policies, and Technical Memorandum of Understanding, Port-au-Prince, Haiti June 10, 2003, http://www.imf.org/external/np/loi/2003/hti/01/index.htm ). In turn, the IMF had demanded, despite the dramatic increase in the cost of living, a freeze on wages as a means to “controlling inflationary pressures.” The IMF had in fact pressured the government to lower public sector salaries (including those paid to teachers and health workers).  The IMF had also demanded the phasing out of the statutory minimum wage of approximately 25 cents an hour. “Labour market flexibility”, meaning wages paid below the statutory minimum wage would, according to the IMF, contribute to attracting foreign investors. The daily minimum wage was $3.00 in 1994, declining to about $1.50- 1.75 (depending on the gourde-dollar exchange rate) in 2004. 

In an utterly twisted logic, Haiti’s abysmally low wages, which have been part of the IMF-World Bank “cheap labor” policy framework since the 1980s, are viewed as a means to improving the standard of living. In other words, sweatshop conditions in the assembly industries (in a totally unregulated labor market) and forced labor conditions in Haiti’s agricultural plantations are considered by the IMF as a key to achieving economic prosperity, because they “attract foreign investment.” 

The country was in the straightjacket of a spiraling external debt. In a bitter irony, the IMF-World Bank sponsored austerity measures in the social sectors were imposed in a country which has 1,2 medical doctors for 10,000 inhabitants and where the large majority of the population is illiterate. State social services, which were virtually nonexistent during the Duvalier period, have collapsed.

The result of IMF ministrations was a further collapse in purchasing power, which had also affected middle income groups. Meanwhile, interest rates had skyrocketed. In the Northern and Eastern parts of the country, the hikes in fuel prices had led to a virtual paralysis of transportation and public services including water and electricity.

While a humanitarian catastrophe is looming, the collapse of the economy spearheaded by the IMF, had served to boost the popularity of the Democratic Platform, which had accused  Aristide of “economic mismanagement.” Needless to say, the leaders of the Democratic Platform including Andy Apaid –who actually owns the sweatshops– are the main protagonists of the low wage economy.

Applying the Kosovo Model

In February 2003, Washington announced the appointment of James Foley as Ambassador to Haiti . Foley had been a State Department spokesman under the Clinton administration during the war on Kosovo. He previously held a position at NATO headquarters in Brussels. Foley had been sent to Port au Prince in advance of the CIA sponsored operation. He was transferred to Port au Prince in September 2003, from a prestige diplomatic position in Geneva, where he was Deputy Head of Mission to the UN European office.

It is worth recalling Ambassador Foley’s involvement in support of the Kosovo Liberation Army (KLA) in 1999.

Amply documented, the Kosovo Liberation Army (KLA) was financed by drug money and supported by the CIA. ( See Michel Chossudovsky, Kosovo Freedom Fighters Financed by Organized Crime, Covert Action Quarterly, 1999, http://www.heise.de/tp/english/inhalt/co/2743/1.html )  

The KLA had been involved in similar targeted political assassinations and killings of civilians, in the months leading up to the 1999 NATO invasion as well as in its aftermath.  Following the NATO led invasion and occupation of Kosovo, the KLA was transformed into the Kosovo Protection Force (KPF) under UN auspices. Rather than being disarmed to prevent the massacres of civilians, a terrorist organization with links to organized crime and the Balkans drug trade, was granted a legitimate political status.

At the time of the Kosovo war, the current ambassador to Haiti James Foley was in charge of State Department briefings, working closely with his NATO counterpart in Brussels, Jamie Shea. Barely two months before the onslaught of the NATO led war on 24 March 1999, James Foley had called for the “transformation” of the KLA into a respectable political organization:

We want to develop a good relationship with them [the KLA] as they transform themselves into a politically-oriented organization,’ ..`[W]e believe that we have a lot of advice and a lot of help that we can provide to them if they become precisely the kind of political actor we would like to see them become… “If we can help them and they want us to help them in that effort of transformation, I think it’s nothing that anybody can argue with..’ (quoted in the New York Times, 2 February 1999)

In the wake of the invasion “a self-proclaimed Kosovar administration was set up composed of the KLA and the Democratic Union Movement (LBD), a coalition of five opposition parties opposed to Rugova’s Democratic League (LDK). In addition to the position of prime minister, the KLA controlled the ministries of finance, public order and defense.” (Michel Chossudovsky, NATO’s War of Aggression against Yugoslavia, 1999, http://www.globalresearch.ca/articles/CHO309C.html )

The US State Department’s position as conveyed in Foley’s statement was that the KLA would “not be allowed to continue as a military force but would have the chance to move forward in their quest for self government under a ‘different context’” meaning the inauguration of a de facto “narco-democracy” under NATO protection. (Ibid).

With regard to the drug trade, Kosovo and Albania occupy a similar position to that of Haiti: they constitute “a hub” in the transit (transshipment) of narcotics from the Golden Crescent, through Iran and Turkey into Western Europe. While supported by the CIA, Germany’s Bundes Nachrichten Dienst (BND) and NATO, the KLA has links to the Albanian Mafia and criminal syndicates involved in the narcotics trade.( See Michel Chossudovsky, Kosovo Freedom Fighters Financed by Organized Crime, Covert Action Quarterly, 1999, http://www.heise.de/tp/english/inhalt/co/2743/1.html )  

Is this the model for Haiti, as formulated in 1999 by the current US Ambassador to Haiti James Foley?

For the CIA and the State Department the FLRN and Guy Philippe are to Haiti what the KLA and Hashim Thaci are to Kosovo.

In other words, Washington’s design is “regime change”: topple the Lavalas administration and install a compliant US puppet regime, integrated by the Democratic Platform and the self-proclaimed Front pour la libération et la reconstruction nationale (FLRN), whose leaders are former FRAPH and Tonton Macoute terrorists. The latter are slated to integrate a “national unity government” alongside the leaders of the Democratic Convergence and The Group of 184 Civil Society Organizations led by Andy Apaid. More specifically, the FLRN led by Guy Philippe is slated to rebuild the Haitian Armed forces, which were disbanded in 1995.

What is at stake is an eventual power sharing arrangement between the various Opposition groups and the CIA supported Rebels, which have links to the cocaine transit trade from Colombia via Haiti to Florida. The protection of this trade has a bearing on the formation of a new “narco-government”, which will serve US interests.

A bogus (symbolic) disarmament of the Rebels may be contemplated under international supervision, as occurred with the KLA in Kosovo in 2000. The “former terrorists” could then be integrated into the civilian police as well as into the task of “rebuilding” the Haitian Armed forces under US supervision.

What this scenario suggests, is that the Duvalier-era terrorist structures have been restored. A program of civilian killings and political assassinations directed against Lavalas supporter is in fact already underway.

In other words, if Washington were really motivated by humanitarian considerations, why then is it supporting and financing the FRAPH death squadrons? Its objective is not to prevent the massacre of civilians. Modeled on previous CIA led operations (e.g. Guatemala, Indonesia, El Salvador), the FLRN death squadrons have been set loose and are involved in targeted political assassinations of Aristide supporters.

The Narcotics Transshipment Trade

While the real economy had been driven into bankruptcy under the brunt of the IMF reforms, the narcotics transshipment trade continues to flourish.  According to the US Drug Enforcement Administration (DEA), Haiti remains “the major drug trans-shipment country for the entire Caribbean region, funneling huge shipments of cocaine from Colombia to the United States.” (See US House of Representatives, Criminal Justice, Drug Policy and Human Resources Subcommittee, FDHC Transcripts, 12 April 2000). 

It is estimated that  Haiti is now responsible for 14 percent of all the cocaine entering the United States, representing billions of dollars of revenue for organized crime and US financial institutions, which launder vast amounts of dirty money. The global trade in narcotics is estimated to be of the order of 500 billion dollars.

Much of this transshipment trade goes directly to Miami, which also constitutes a haven for the recycling of dirty money into bona fide investments, e.g. in real estate and other related activities.

The evidence confirms that the CIA was protecting this trade during the Duvalier era as well as during the military dictatorship (1991-1994). In 1987, Senator John Kerry as Chairman of the Subcommittee on Narcotics, Terrorism and International Operations of the Senate Foreign Affairs Committee was entrusted with a major investigation, which  focused  on the links between the CIA and the drug trade, including the laundering of drug money to finance armed insurgencies. “The  Kerry Report” published in 1989, while centering its attention on the financing of the Nicaraguan Contra, also included a section on Haiti: 

“Kerry had developed detailed information on drug trafficking by Haiti’s military rulers that led to the indictment in Miami in 1988, of Lt. Col. Jean Paul. The indictment was a major embarrassment to the Haitian military, especially since Paul defiantly refused to surrender to U.S. authorities.. In November 1989, Col. Paul was found dead after he consumed a traditional Haitian good will gift—a bowel of pumpkin soup…

The U.S. senate also heard testimony in 1988 that then interior minister, Gen. Williams Regala, and his DEA liaison officer, protected and supervised cocaine shipments. The testimony also charged the then Haitian military commander Gen. Henry Namphy with accepting bribes from Colombian traffickers in return for landing rights in the mid 1980’s.

It was in 1989 that yet another military coup brought Lt. Gen. Prosper Avril to power… According to a witness before Senator John Kerry’s subcommittee, Avril is in fact a major player in Haiti’s role as a transit point in the cocaine trade.” ( Paul DeRienzo, Haiti’s Nightmare: The Cocaine Coup & The CIA Connection, Spring 1994, http://globalresearch.ca/articles/RIE402A.html )

Jack Blum, who was Kerry’s Special Counsel, points to the complicity of US officials in a 1996 statement to the US Senate Select Committee on Intelligence on Drug Trafficking and the Contra War:

“...In Haiti …  intelligence “sources” of ours in the Haitian military had turned their facilities over to the drug cartels. Instead of putting pressure on the rotten leadership of the military, we defended them. We held our noses and looked the other way as they and their criminal friends in the United States distributed cocaine in Miami, Philadelphia and New, York. (http://www.totse.com/en/politics/central_intelligence_agency/ciacont2.html )

Haiti not only remains at the hub of the transshipment cocaine trade, the latter has grown markedly since the 1980s. The current crisis bears a relationship to Haiti’s role in the drug trade. Washington wants a compliant Haitian government which will protect the drug transshipment routes, out of Colombia through Haiti and into Florida.

The inflow of narco-dollars –which remains the major source of the country’s foreign exchange earnings– are used to service Haiti’s spiraling external debt, thereby also serving the interests of the external creditors.

In this regard, the liberalization of the foreign-exchange market imposed by the IMF has provided (despite the authorities pro forma commitment to combating the drug trade) a convenient avenue for the laundering of narco-dollars in the domestic banking system. The inflow of narco-dollars alongside bona fide “remittances” from Haitians living abroad, are deposited in the commercial banking system and exchanged into local currency. The foreign exchange proceeds of these inflows can then be recycled towards the Treasury where they are used to meet debt servicing obligations.

Haiti, however, reaps a very small percentage of the total foreign exchange proceeds of this lucrative contraband. Most of the revenue resulting from the cocaine transshipment trade accrues to criminal intermediaries in the wholesale and retail narcotics trade, to the intelligence agencies which protect the drug trade as well as to the financial and banking institutions where the proceeds of this criminal activity are laundered. 

The narco-dollars are also channeled into “private banking” accounts in numerous offshore banking havens. (These havens are controlled by the large Western banks and financial institutions). Drug money is also invested in a number of financial instruments including hedge funds and stock market transactions. The major Wall Street and European banks and stock brokerage firms launder billions of dollars resulting from the trade in narcotics.

Moreover, the expansion of the dollar denominated money supply by the Federal Reserve System , including the printing of billions of dollars of US dollar notes for the purposes of narco-transactions constitutes profit for the Federal Reserve and its constituent private banking institutions of which the most important is the New York Federal Reserve Bank. See (Jeffrey Steinberg, Dope, Inc. Is $600 Billion and Growing, Executive Intelligence Review, 14 Dec 2001, http://www.larouchepub.com/other/2001/2848dope_money.html

In other words, the Wall Street financial establishment, which plays a behind the scenes role in the formulation of US foreign policy, has a vested interest in retaining the Haiti transshipment trade, while installing a reliable “narco-democracy” in Port-au-Prince, which will effectively protect the transshipment routes.

It should be noted that since the advent of the Euro as a global currency, a significant share of the narcotics trade is now conducted in Euro rather than US dollars. In other words, the Euro and the dollar are competing narco-currencies.

The Latin American cocaine trade –including the transshipment trade through Haiti– is largely conducted in US dollars.  This shift out of dollar denominated narco-transactions, which undermines the hegemony of the US dollar as a global currency, largely pertains to the Middle East, Central Asian and the Southern European drug routes.

Media Manipulation

In the weeks leading up to the Coup d’Etat, the media has largely focused its attention on the pro-Aristide “armed gangs” and “thugs”,  without providing an understanding of the role of the FLRN Rebels.

Deafening silence: not a word was mentioned in official statements and UN resolutions regarding the nature of the FLRN.  This should come as no surprise: the US Ambassador to the UN  (the man who sits on the UN Security Council) John Negroponte.  played a key role in the CIA supported Honduran death squadrons in the 1980s when he was US ambassador to Honduras. (See San Francisco Examiner, 20 Oct 2001  http://www.flora.org/mai/forum/31397 )

The FLRN rebels are extremely well equipped and trained forces. The Haitian people know who they are. They are Tonton Macoute of the Duvalier era and former FRAPH assassins.

The Western media is mute on the issue, blaming the violence on President Aristide. When it acknowledges that the Liberation Army is composed of death squadrons, it fails to examine the broader implications of its statements and that these death squadrons are a creation of the CIA and the Defense Intelligence Agency.

The New York Times has acknowledged that the “non violent” civil society opposition is in fact collaborating with the death squadrons, “accused of killing thousands”, but all this is described as “accidental”. No historical understanding is provided. Who are these death squadron leaders?  All we are told is that they have established an “alliance” with the “non-violent” good guys who belong to the “political opposition”. And it is all for a good and worthy cause, which is to remove the elected president and “restore democracy”: 

“As Haiti’s crisis lurches toward civil war, a tangled web of alliances, some of them accidental, has emerged. It has linked the interests of a political opposition movement that has embraced nonviolence to a group of insurgents that includes a former leader of death squads accused of killing thousands, a former police chief accused of plotting a coup and a ruthless gang once aligned with Mr. Aristide that has now turned against him. Given their varied origins, those arrayed against Mr. Aristide are hardly unified, though they all share an ardent wish to see him removed from power.” (New York Times,  26 Feb 2004)

There is nothing spontaneous or “accidental” in the rebel attacks or in the “alliance” between the leader of the death squadrons Guy Philippe and Andy Apaid, owner of the largest industrial sweatshop in Haiti and leader of the G-184. 

The armed rebellion was part of a carefully planned military-intelligence operation. The Armed Forces of the Dominican Republic had detected guerilla training camps inside the Dominican Republic on the Northeast Haitian-Dominican border. ( El ejército dominicano informó a Aristide sobre los entrenamientos rebeldes en la frontera, El Caribe, 27 Feb. 2004, http://www.elcaribe.com.do/articulo_multimedios.aspx?id=2645&guid=AB38144D39B24C6FBA4213AC40DD3A01&Seccion=64 )

Both the armed rebels and their civilian “non-violent” counterparts were involved in the plot to unseat the president. G-184 leader Andre Apaid was in touch with Colin Powell in the weeks leading up to the overthrow of Aristide;  Guy Philippe and “Toto” Emmanuel Constant have links to the CIA; there are indications that Rebel Commander Guy Philippe and the political leader of the Revolutionary Artibonite Resistance Front Winter Etienne were in liaison with US officials. (See BBC, 27 Feb 2004, http://news.bbc.co.uk/2/hi/americas/3496690.stm ).

While the US had repeatedly stated that it will uphold Constitutional government, the replacement of Aristide by a more compliant individual had always been part of the Bush Administration’s agenda.

On Feb 20, US Ambassador James Foley called in a team of four military experts from the U.S. Southern Command, based in Miami. Officially their mandate was “to assess threats to the embassy and its personnel.” (Seattle Times, 20 Feb 2004). US Special Forces are already in the country. Washington had announced that three US naval vessels “have been put on standby to go to Haiti as a precautionary measure”. The Saipan is equipped with Vertical takeoff Harrier fighters and attack helicopters. The other two vessels are the Oak Hill and Trenton.  Some 2,200 U.S. Marines from the 24th Marine Expeditionary Unit, at Camp Lejeune, N.C. could be deployed to Haiti at short notice, according to Washington.

With the departure of President Aristide, Washington, however, has no intention of disarming its proxy rebel paramilitary army, which is now slated to play a role in the “transition”. In other words, the Bush administration will not act to prevent the occurrence of killings and political assassinations of Lavalas and Aristide supporters in the wake of the president’s kidnapping and deportation.

Needless to say, the Western media has not in the least analyzed the historical background of the Haitian crisis. The role played by the CIA has not been mentioned. The so-called “international community”, which claims to be committed to governance and democracy, has turned a blind eye to the killings of civilians by a US sponsored paramilitary army. The “rebel leaders”, who were commanders in the FRAPH death squadrons in the 1990s, are now being upheld by the US media as bona fide opposition spokesmen. Meanwhile, the legitimacy of the former elected president is questioned because he is said to be responsible for “a worsening economic and social situation.” 

The worsening economic and social situation is largely attributable to the devastating economic reforms imposed by the IMF since the  1980s. The restoration of Constitutional government in 1994 was conditional upon the acceptance of the IMF’s deadly economic therapy, which in turn foreclosed the possibility of a meaningful democracy. High ranking government officials respectively within the Andre Preval and Jean Bertrand Aristide governments were indeed compliant with IMF diktats. Despite this compliance, Aristide had been “blacklisted” and demonized by Washington.  

The Militarization of the Caribbean Basin

Washington seeks to reinstate Haiti as a full-fledged US colony, with all the appearances of a functioning democracy. The objective is to impose a puppet regime in Port-au-Prince and establish a permanent US military presence in Haiti. 

The US Administration ultimately seeks to militarize the Caribbean basin.

The island of Hispaniola is a gateway to the Caribbean basin, strategically located between Cuba to the North West and Venezuela to the South.  The militarization of the island, with the establishment of US military bases, is not only intended to put political pressure on Cuba and Venezuela, it is also geared towards the protection of the multibillion dollar narcotics transshipment trade through Haiti, from production sites in Colombia, Peru and Bolivia.

The militarisation of the Caribbean basin is, in some regards, similar to that imposed by Washington on the Andean Region of South America under “Plan Colombia’, renamed “The Andean Initiative”. The latter constitutes the basis for the militarisation of oil and gas wells, as well as pipeline routes and transportation corridors. It also protects the narcotics trade.

The Moral Decoding of 9-11: Beyond the U.S. Criminal State, The Grand Plan for...

911

We are bring to the consideration of our readers this incisive and carefully formulated analysis by Canada’s renowned philosopher Professor John McMurtry. 

The complete text published by the Journal of 9/11 Studies can be downloaded in pdf

*          *          *

I was sceptical of the 9-11 event from the first time I saw it on television. It was on every major network within minutes. All the guilty partieswere declared before any evidencewas shown.The first questions of any criminal investigation were erased.  Who had the most compelling motives for the event? Who had the means to turn two central iconic buildings in New York into a pile of steel and a cloud of dust in seconds?[i]

Other questions soon arose in the aftermath. Why was all the evidence at the crime scenes removed or confiscated?

Who was behind the continuous false information and non-stop repetition of “foreign/Arab terrorists”when no proof of guilt existed? Who was blocking all independent inquiry?

Even 11 years on these questions are still not answered.

But those immediately named guilty without any forensic proof certainly fitted the need for a plausible Enemy now that the “threat of the Soviet Union” and “communist world rule” were dead.  How else could the billion-dollar-a-day military be justified with no peace dividend amidst a corporately hollowed-out U.S. economy entering its long-term slide?While all the media and most of the people asserted the official 9-11 conspiracy theory as given fact, not all did.

A Bay Street broker with whom I was improbably discussing the event in Cuba had no problem recognising the value meaning. When I asked what he thought about the official conspiracy theory, he was frank:

“You can call it what you want, but America needs a war to pull the people together and expand into new resource rich areas. That what it has always done from Mexico on. And that is what it needs now”.  When I wondered why none in the know said so, he smirked: “It would be impolite”, adding, “It affects the entire future prosperity of America and the West”. And all the deaths? “It had to be done –far less than it could have been”. The 19 Arabs with box-cutters reducing the World Trade Center buildings to powder in a few seconds?He shrugged.

Thus everyone since 9-11 is prohibited nail-clippers on planes to confirm the absurd – including 15 of the 19alleged hijackers being from Saudi Arabia and several apparently still alive after crashing the planes into the buildings.[ii]As for the diabolical mastermind Osama bin Laden, he is never linked by credible evidence to the crime and never claims responsibility for the strike since the videos of him are fakes. “Ground Zero” is a double entendre. All doubts are erased apriori.

Decoding the U.S. Theater of Wars and the Moral Driver Behind

One already knew that suspension of belief is the first act of fiction, and that instant culture rules the U.S. One already knew that monster technical events are America’s stock in trade. And one already knew the long history of false U.S. pretexts for war – so well established that a young strategic thinker a decade after 9-11 advises the right-wing Washington Policy Institute on how to create a crisis by deadly planned incident to make war on Iran – “it is the traditional way of getting into war for what is best in America’s interests”.[iii]

One further knew from past research that the U.S.’s strategic leadership since 1945 had been Nazi-based in information and connections and the dominant Central-European figures articulating it ever after across Democrat and Republican lineshave a common cause. For over 40 years, Henry Kissinger as Republican and Zbigniew Brzezinski as Democrat have been protégés of David Rockefeller, selected as Trilateral Commission and Bilderberg Group leaders, and capable of any mass-homicidal plan to advance “U.S. interests”. The banker-and-oil imperial line through David Rockefeller as paradigm case goes back to the Nazi period to John Foster Dulles (an in-law) and his brother Allen Dulles (OSS and then CIA Director), who Supreme Court Justice Arthur Goldberg called “traitors” for their support of the Nazi regime.  The Rockefeller Foundation funded and developed German eugenics programs in the pre-war years, Standard Oil supplied oil in collaboration with I.G. Farben, and so on.[iv]

The supreme moral goal and strategic methods governing U.S. covert-state performance have not only have been very similar in moral principle, but have deeply connected Rockefeller protégés Kissinger and Brzezinski, and more deeply still the theoretical godfather of U.S. covert state policy, Leo Strauss, who was funded out of Germany by David Rockefeller from the start.

The inner logic of covert and not-so-covert U.S. corporate world rule since 1945unified under Wall Street financial management and transnational corporate treaties for unhindered control of commodities and money capital flows across all borders is undeniable if seldom tracked. This architecture of the grand plan for a New World Order is evident in both strategic policy and global political and armed action over decades that have seen the objectives increasingly fulfilled with constructed deadly crises as pretexts for war the standard technique.[v]Behind them as first post-Nazi historical turn lies the 1947 National Security Act (NSA) which created the Central Intelligence Agency (CIA)and explicitly licensesdestruction of life, truth and other societies as institutional methods.

The CIA is charged with designing, planning and executing “propaganda, economic war, direct preventive action, sabotage, anti-sabotage, destruction, subversion against hostile States, assistance to clandestine liberation movements, guerrilla murders, assistance to indigenous groups opposed to the enemy countries of the free world”. The linkage back to Nazi methods and world-rule goal as the highest moral objective is not just one of corresponding ultimate principles and strategic policy formation. It relied on Nazi SS intelligence sources and means from the beginning of the covert terror state.[vi]

There is no heinous means that is not assumed as the highest morality by this long-standing covert institutional formation linking to the presidential office.It is an explicitly secret system involving at least the Defense Department and the CIA, the former with many more operatives and offices.

The Special Activities Division (SAD) to carry out NSA criminal operations, for example, also confers the highest honors awarded in recognition of distinguished valor and excellence – as did the earlier SS prototype in Germany. What people find difficult to recognise is that these actions, whether by the SAD or other system operations,are conceived as the highest duty, however life-system destructive and mass murderous they are. All participants are super patriots in their own view, as were the Nazis. Contradiction between declared and actual values, however, is a central mode of the covert system. For example, what can be considered a high duty in the perpetual U.S.“war on drugs”, the most morally obligatory commitment of the U.S. state,is at the same time a war against and with other drug operations to transport illegal hard drugs into the U.S. itself.[vii]

We might see here a parallel between foreign mass murder and domestic mass murder in 9-11, with both regarded as high patriotism in this supreme morality. In the background of America’s Reichstag Fire and likewise disclosing the unlimited geo-strategic action that can be operationalized as necessary and good, the post-1945 U.S. control of international sea-lanes made the covert U.S. state the world’s dominant narcotics controller so as to fund secret criminal war actions from South-East Asia to Latin America, entailing the addiction of its own peoples.[viii]This woeful method has been long known by experts, but came to be public knowledge in the Reagan-state funding of the death-squad Contras of Nicaragua as “the moral equal of our Founding Fathers” (a tribute he is said to have given later to the drug-running warlords and jihadists of Afghanistan).

These moral contradictions seem insane, but this is so only if one does not comprehend the underlying supreme morality of which they are all expressions.

Even U.S.-sponsored death squads torturing and killing tens of thousands of poor people across Latin America before 2000 and their return as direct covert U.S.-state method from Iraq to Syria after 9-11 – called “the Salvador option”[ix] – is regarded as necessary and obligatory to “defend the Free World and our way of life”. They entail ever more total U.S. world rule and self-maximizing position by strategic deduction from the supreme morality’s first premises.

The covert nature of the mass-murderous operationalization is never from moral embarrassment. It is solely to ensure effectiveness of execution against “soft” and “uninformed” public opinion, to terrorize people in situ from continued resistance, and to annihilate its leadership and community agency all the way down. Throughout the deciding moments of execution of the underlying supreme value program, global corporate money demand multiplication is always the ultimate value driver -as may be tested by seeking any covert U.S. action or overt war which is not so regulated beneath saturating propaganda of lawful intentions of peace and freedom.

These lines of underlying moral institution, policy, strategic plan, and massive life destruction at every level are indisputable facts of the covert and official faces of the U.S. state, but are typically not connected to the September 11, 2001 attack. Since most people cannot believe their own government or the “leader of the free world” could execute such a sabotage action as “9-11” in which thousands of American themselves died, these behavioral reminders forge the unifying meaning.

Worse still occurred in the last “war”before 9-11. In the background providing graphic example of how the covert U.S. state apparatus is structured to attack and murder U.S. citizens themselves to strategically maximize implementation of its supreme value program of transnational corporate money sequences over all barriers, there is the now known Operation Northwoods. Very familiar to the 9-11 truth movement, but unpublicized since its release under freedom of information laws, this Department of Defense and Joint Chiefs of Staff plan proposed that the CIA and other operatives covert operatives “undertake a range of atrocities” to be blamed on Cuba to provide pretext for invasion.

“Innocent civilians were to be shot on American streets; boats carrying refugees fleeing Cuba were to be sunk on the high seas; a wave of violent terrorism was to be launched in Washington DC, Miami and elsewhere. People would be framed for bombings they did commit; planes would be hijacked”.[x]

All would be blamed on Castro the Communist in place of bin Laden the Islamicist, and invasion of desired resistant territory would be achieved as a triumph of American freedom and interests over its enemies.

 Operation Northwoods was not, however, okayed by President Kennedy – perhaps another reason for his assassination and replacement by more pliant presidents to represent “America’s interests” in accord with the supreme morality. Underneath the stolen election of George Bush Jr.in contrast – whose family made its money, in part, by serving the covert financial requirements of the Nazi regime before and during the 1939-45 War – was a domestic and foreign administration which would push further than any in the past to advance “U.S. interests”to full-spectrum world rule. Its project included reversing the Roosevelt New Deal and the social state within the U.S. itself – “an anomaly” as Bush Jr. expressed the historical perspective and ethic at work.

This plan was more explicit in the published Project for the New American Century formed from 1997 on. It even supplied the need for a 9-11 event in its 2000 version, the year that Bush Jr. was elected and the year before 9-11. To indicate the “non-partisan” nature of the planning, Democrat National security Adviser Zbigniew Brzezinski had already hinted at the usefulness of a 9-11-style domestic attack to move policy forward in his 1998 book, The Grand Chessboard: American Primacy and Its Geostrategic Imperatives.[xi]

The Moral Compass of 9-11

As a moral philosopher with social value systems as my primary object of analysis, my first thoughts in understanding “9-11” were of the system motives,known methods, and objective interests driving the event which could coherently explain it.Whatever the immediate hold of the official conspiracy theory on the public mind,a rational explanation is required which is consistent with the suppressed facts and the organising geo-strategic plan on both sides of the event.

For over a decade before 9-11, there were three U.S.-propelled global trends that almost never come into the understanding of 9-11 itself. 9-11 truth seekers themselves have focused on the foreground technics and the transparent motive for oil. But these are undergirded by deeper sea-shifts of geopolitical and economic wars of seizure and destruction by other name against which the world’s people were rising. To compel books of analysis into one unifying frame, transnational corporate-rights treaties from NAFTA to the Maastracht Treaty to the WTO overrode all other rights across borders;the private “financialization”stripping of social sectors and welfare states had advanced across the world; and the totalizing movement of the system across all former “cold war” and cultural borders was “the new world order” in formation. Together these vast shifts towards transnational money-sequence rule of all reversed centuries of democratic evolution. And every step of the supreme value program was life blind at every step of its global operationalization.[xii]

Yet states and cultures were so sweepingly re-set into unaccountable transnational corporate and bank rule that few recognised the absolutist value program being imposed on the world.  Fewer still recognised all was unfolding according to plan.

What has been least appreciated about the long-term strategic plan unfolding on both sides of what was immediately called “9-11” – CallEmergency!–is that supreme banker and global money director David Rockefeller had summarized “the plan” to fellow money-party elites across borders at the Bildersberg meeting in Baden Baden Germany in June 1991 -exactly at the same time that the Soviet Union and its resistant barriers fell.[xiii] Bear in mind that Rockefeller among other initiatives appointed both Kissinger and Brzezinski for the lead in both the supranational Bilderberg and Trilateral strategic bodies of which he was the lead patron, not to mention financed the unemployed academic Leo Strauss out of Germany to be the godfather  “philosopher” of the “new world order”. Rockefeller speaks very precisely to his fellow “elite of the elite” of the Western world where only Americans and Europe are invited and reportage excluded:

“A supranational sovereignty of an intellectual elite and bankers is surely preferable to the national auto-determination practiced in past centuries”, Rockefeller said.[xiv]

Observe the foundational new concepts in place of responsible government and democratic accountability. They are now consigned to “past centuries”. A “supranational sovereignty”has replaced them and is morally“preferable”. Rockefeller is not exaggerating. By 1991 a “supranational sovereignty” had already developed in the form of transnational treaties conferring override rights of “profit opportunity” on transnational corporations and private bank rule of government finances across borders – procedurally trumping any elected legislatures and their laws which are inconsistent with their thousands of treaty articles, even when the system eventually leads to world depression as now.[xv] The source of the legitimacy of governments, ultimate sovereignty, has now passed as preferable to “an intellectual elite and bankers”: more exactly, academic strategy servants and transnational money sequences overriding all human and planetary life requirements a-priori by the supreme moral goal.

Ask which function of the world’s people and means of life is not now in debt to Wall Street and the private global banking system it leads. Ask which means of life from food and water to autos and pension cheques is not thus ultimately controlled, or which commodity is not under oligopolist corporate sway. The “surely preferable” objective was already achieved by 1991 or in advanced global institutional motion. Now supreme over all else so that all else is now accountable to it, and it is not accountable to anything above it, “the plan”seemed all but accomplished by Rockefeller’s own considered words.

But what if people resist the new world rule with no life coordinate or constraint at any level of its execution? We may recall that during the death-squad rule of the Argentina generals at this time in which civilians were murdered and tortured in the thousands, National Security Adviser Kissinger congratulated the junta on their “very good results – - The quicker you succeed the better.”Kissinger also heartily approved of the earlier massacres and torture in Chile.

The resistance was in this way pre-empted long before the Soviet Union fell, and after 1990 had no block in the Middle East and Central Asia either. “The plan” has been very long term. Kissinger the geo-executer was originally appointed to high office by Rockefeller (to lead the Council on Foreign Relations back in 1954), and – to give a sense of the long-range trajectory of the plan design –was,incredibly,the U.S. administration’s first choice for an “independent 9-11 Commission”. The obviously not-independent Kissinger was still not a problem for “the free press” and official discourse. But when he was required to disclose his business connections, he withdrew to stay covert in his ongoing backroom capacities and enrichment.

The 9-11 sacrifice is better understood within the deep-structural context of the unfolding plan. Thus David Rockefeller gave special thanks to media like “the New York Times, Washington Post, Time Magazine and other great publications whose directors have attended our meetings and respected their promises of discretion” in co-operating with the plan. Rockefeller was again precise:

This plan for the world would have been impossible for us to develop if we had been subjected to the light of publicity during those years. [xvi]

The plan’s next decisive steps were in fact already in motion as Rockefeller expressed gratitude for the media black-out. A new strategic manifesto from the Pentagon was in preparation entitled “Defense Planning Guidance on Post-Cold- War Strategy,” completed on February 18, 1992.[xvii]Prepared under the supervision of Paul Wolfowitz, then the Pentagon’s Undersecretary for Policy, it was disclosed in March of 1992 by the New York Times.After the first invasion of Iraq, it became known as the Project for the New American Century, publicly released from 1997 to 2000 prior to 9-11.

Again we may note the long arc of planning control, crisis and war as required. Item 6 of the strategic plan defined the agenda in general terms: “In the Middle East and Southwest Asia, our overall objective is to remain the predominant power in the region and preserve U.S. and western access to the region’s oil.”

Oil-rich Iraq had in fact been invaded – not only to privatize its peerlessly high-quality surface oilfields but to destroy its region-leading socialist infrastructure.Iraq became accessible for invasion as the arms-bankrupted Soviet Union was in collapse. We may observe that the covertly genocidal destruction of Iraq bridged Republican and Democrat administrations over three changes of government – disclosing how the covert state operates as a moral constant across party fronts.

The actions confirm and express the one supreme moral goal identified above. They bridge from Saddam himself as CIA-payroll killer and war proxy against Iran to recapture lost Iran oilfields dating from 1980 to 1988 to the fall of the USSR in 1991 as the axis of the long-term strategic plan of global turnaround to “America’s century” still to come before and after 9-11.But between 1990 and 2003 Saddam was transmuted from former ally to aggressor against Kuwait in an invasion given an official green light from the U.S. government, to “mushroom cloud”threat with invented “weapons of mass destruction”.

In fact, National Security Adviser Wolfowitz explained after the invasion found nothing of the kind: “[We had] virtually no economic options with Iraq because the country floats on a sea of oil.”

Observe how the invasion is conceived as obligatory for a reason that expresses the supreme value goal. Observe that it occurs less than two years after 9-11, which gave the open-cheque justification for the bombing and occupation which allowed the expropriation of Iraq’s society’s oil resources.

The problem was not the evil Saddam or the “weapons of mass destruction”, the standard reverse projection.[xviii]The problem was the Iraqi people themselves and their developed oil-funded social life infrastructure between the supreme oil-fields and their U.S. corporate control and privatization. 9-11 was,thus, first the justification for invading Afghanistan – to clear the way for pipelines into the former Soviet republics from the Caspian Sea region– pipelines that prompted the U.S. representative to predictively warn the Taliban:“Either you accept our offer of a carpet of gold, or we bury you under a carpet of bombs.”[xix]9-11 was then the necessary basis of justification for the bombing of Baghdad for the unifying supreme objective.

In fact,seldom published in the corporate media keeping the glare of publicity away from the supreme moral objective, the publicly owned and managed oil revenues of Iraq had been invested since the 1950’s in Iraq’s advanced social infrastructure, leading the Middle East with free higher education, high health standards, and near universal livelihood security. The world’s oldest civilisation was robust in organisational capacities long before the CIA-asset Saddam was installed.

Despite his murdering his way to the top in this function, even Saddam could not destroy the system because socialist government had been achieved decades earlier by a powerful oil-workers’ union base and a population glad to have all education free, an efficient low-cost foods delivery system, and the most advanced public healthcare system in the Middle East. So there was not only the “sea of oil” as a motive to assert U.S. control in the new “supranational sovereignty” of the world. Just as important in this ultimate moral cause, what the U.S. covert state always seeks to destroy by any means, isa successful social infrastructure without private big oil, bankers and transnational corporations free to control it towards higher profit opportunities.

Unravelling the Supreme Moral Doctrine behind the U.S. Covert State

The genocide of Iraq, as the long-opposing “evil empire” was in free-fall, is the most important strategic anchoring prior to “9-11”. Covert strategic policy to forward the supreme goal is by now self-evident, but the inner moral logic is assumed not penetrated.  The most influential of Rockefeller’s protégés in this regard is the “philosopher king” of the U.S. covert state, Leo Strauss. While he never worked in a philosophy department or has any training in logic, his concept of “natural right” fits exactly to the “supranational sovereignty” of private money-sequence rule of the world – what “the intellectual elite” Rockefeller refers to invoke as “moral anchor”, “right” and “justice”.

The moral thought system is not unlike that of Mein Kampf without the racist rant, camouflaged everywhere in practice by the method of big lies – “noble lies” as Strauss exalts them.[xx] The innermost value driver is a perpetual war of dispossession of the weaker for the private transnational money-capital multiplication of the rich.

Nothing in this doctrine is too mendacious, greed-crazed and murderous if it fulfills the plan of this limitless private-capital rule as ultimate moral ground and compass. In Strauss’s canonical teaching of U.S. national security advisers and intellectual following, the ruling moral absolute is expressed by the core master idea behind the “supranational sovereignty” of an “intellectual elite and bankers”:

“limitless capital accumulation – — the highest right and moral duty”.[xxi]

This is the ethical absolute of the covert U.S. state and its strategic decision structure. And there is no internal limit within this moral universe to life means seizure from poorer societies and resource looting for the supreme goal.  It is the natural and absolute Good.

To justify its meaning, the Straussian canon adopts a potted reading of Western moral and political philosophy from Plato through Hobbes, Hegel, Nietzsche, Marx and Weber. This impresses American political operatives of the faith, but Strauss is a failed philosopher turned down by Paul Tillich for his post-doctoral Habilitation and only saved from academic ruin in Germany by Rockefeller grant money. While not taken seriously as philosophy anywhere else, it is worth decoding its talmudic involution for the borrowed ideas that drive its covert state disciples and neo-fascist public “intellectuals” in America.

The ultimately organising idea is to commend all forms of conquering and limitlessly expanding private capital as “natural right and law” with genocidal subjugations justified in glowing moral terms. For example, “noble lies” is the moral category for limitless mendacity. One may wonder how educated people can be so bent out of moral shape. So I now concisely provide what cannot be found elsewhere: the inner logic of the supreme doctrine as perversions of great thinkers.

Its framework of meaning and value helps us to understand why the 9-11 event could easily follow for the managers of the covert U.S. state and its Straussian planners as not at all anomalous or evil within their moral logic. 9-11 follows as a maximally rational and unique tool to achieve the objectives in fact achieved by 9-11, and the geo-strategic cabal behind it is servilely linked from the beginning to the dominant private transnational corporate and banking interests exemplified by David Rockefeller.

To understand this brutal moral universe and its connection to 9-11, the 9-11 wars and a globalizing police state, we need to understand the deformations of its basic organising ideas. Plato’s idea of “the noble lie” means, in fact, a myth or parable to communicate an underlying truth about the triadic human soul of reason, spirit and appetite which, Plato argues, should be reflected in the construction of the ideal state (in which the rulers are communist in their common property to keep them uncorrupted and true).

But through the prism of U.S. global money-party rule a la Strauss this idea becomes the principle of lying to the public to keep the vulgar herd – the people themselves – ignorant and obedient. The philosophies of Hobbes and Hegel are also grist for this mill. Hobbes argues that “man is moved by a restless desire for power after power that ceaseth only in death”, but this brute desire in the “State of Nature” is tamed by “the covenant of peace” ordered by the internal sovereign as absolute.

Via Strauss and the U.S. covert state this becomes right is might and the ultimate “natural right” is limitless private capital power and empire with no end of totalization across the peoples and lands of the world. Hegel too suits a fascist-capitalist reading since he argues “the State is the march of God  through the world”, and war itself is history’s test of which State is a higher realisation of “the absolute Idea”. But Hegel still envisaged a “universal state”to supersede the competitive private-property division of capitalism in the “universalization of right and law on earth”.

Once again U.S. private money-capital power with no bound, the supreme moral goal in the Rockefeller-Strauss doctrine, is opposite to the classical philosophy it invokes. Once more dialectical development of reason to more coherently inclusive conception and life is reversed into one-way private money capital sequences maximized to rule the world with the U.S. military as its instrument of force and terror.

However it conceals its meaning, all positions come down to this underlying value code – as may be tested on whatever transnational money-sequence demand, right or war is launched next. 9-11 construction in such a moral world does not violate this value code. It expresses it in self-maximizing strategic turn to achieve the ultimate goal.

Friedrich Nietzsche may provide the best fodder for the doctrine when he advises that “life is essentially appropriation, injury, overpowering of what is alien and weaker, imposing of one’s own forms, and at its mildest exploitation” in his superman vision of “beyond good and evil”. For philosophical Nietzscheans, this is code for the inner meaning of the angst of artistic creation. But this meaning is predictably lost on the U.S. covert-state school seeking the “supranational sovereignty” of “limitless capital accumulation” as the supreme good with the “intellectual elite” as servants to it. Karl Marx’s link of capitalism’s success to productive force development is the ultimate equivocation upon which this ruling doctrine depends – making no distinction between productive capital providing life goods and unproductive money sequencing hollowing out the world by money-capital multiplication. Marx, it must be acknowledged, did not made the distinction himself since this mutation of capital came a century after his death.[xxii]

Finally Max Weber’s Protestant Ethic and the Spirit of Capitalism does not ground this doctrine of “limitless capital accumulation as the highest right and duty” with the state to serve it, as Strauss again torturously suggests. In fact, Weber deplores any such perversion of public authority. His capitalist model is a young Benjamin Franklin speaking of money saved and invested as like having “a breeding sow”, not a transnational money-sequence juggernaut of eco-genocidal expansion.  Revealingly, Benjamin Franklin and “the protestant ethic” in general were most concerned about non-waste, which Strauss explicitly excludes from the meaning of “limitless capital accumulation”. For Leo Strauss and his U.S. “national security” disciples, the capitalist may waste as much as he wants by “natural right”.

Further, in complete inversion of source, the greed worship of the U.S. state, its patrons and its academy disciples reverses the model of the “spirit of capitalism” exemplified by Benjamin Franklin in proprietary claim on knowledge and inventions. He,in fact,refused to patent his famous Franklin Stove because he believed that no innovation or new knowledge from which other people could benefit should be denied them – just as he himself had benefitted from the community of knowledge and science as the distinguishing feature of being a civilised human being.

In short, it is important to recognise how twisted the covertly ruling doctrine is. No element of it is life coherent or true to the classical thinkers in which it costumes itself. In the end, only the transnational U.S. money party has any place in its rights and obligations, and any sacrifice of other life to its supreme goal is legitimate – linking back to the Nazi-U.S. corporate axis that nearly destroyed the civilised world once before.[xxiii]

Money-Capital Power UeberAlles: How Economic Rationality Leads the Plan

The U.S. culture of money-sequence “rationality” is the underlying intellectual and moral disorder which leads to “limitless money capital accumulation” as the supreme moral goal. In formal terms, the equation of rationality to atomic self-maximization is assumed a-prioriacross domains. With globalizing Wall-Street-led “financialization”, this “rationality” becomes equated to private money-sequence multiplication across all borders as theultimate Good. This is the innermost mutation of value logic and goal, the moral DNA, from which the cancerous world system develops on both sides of 9-11.[xxiv]

This first principle itself is,in fact,built into formal economics, decision and game theory, and strategic science, as I explain step by step in “Behind Global System Collapse: The Life-Blind Structure of Economic Rationality.”[xxv] It is axiomatic but unexamined, life-blindly absolutist but not recognised as morally problematic. To make a long story short, competitive self-maximization in the market is assumed to produce “the best of possible worlds” by mathematical proof. “Pareto efficiency” is believed to demonstrate this by private money exchanges between self-maximizing atoms apriori stripped of all life properties, relations, society, conditions of choice, and all natural and civil life support systems. Pareto himself recognised outside this formula what has since been covered up.

Not only is the formula consistent with most having remaining impoverished by the “optimum” of “no-one worse off”, what none who cite “Pareto efficiency” as a standard academic mantra ever acknowledge or even recognise. Pareto himself is in no doubt of the implication. As the fascist party he belongs to rules Italy and Rockefeller creates the Council of Foreign Relations, he asserts with approval: “Very moral civilized peoplehave destroyed and continue to destroy, without the least scruple, savage or barbarian peoples”.[xxvi]We glimpse here at the roots the supreme morality built into “economic science” itself.

Yet, as demonstrated in “Behind Global System Collapse”, even the most liberal canons of America, including John Rawls’ classic A Theory of Justice, are grounded in the same meta principle.[xxvii] Rationality and value are equated to self-maximizing gain with no limit within game-theoretic interactions as the sole limiting framework of “limitless money capital acquisition”. The generic equation defines, indeed, the dominant intellectual and economic mind-set of America and the global system in action since 1980. The cabal internal to U.S. national security strategic planning follows the moral logic to its most radical conclusions with no constraints by life or law.

The one absolute moral meaning is the spread of U.S. economic, military and political power as good for all, or, more exactly in Straussian language, limitless private transnational money-capital expansion as the highest right and moral duty. Only what is consistent with or serves this supreme morality, it follows, deserves to exist. This is the alpha and omega of the covert doctrine and state, and careful reading can find no disconfirmation beneath the rhetoric of “noble lies”.

The Iraq Paradigm:  Genocide Strategy From 1990 On

The Iraq line of the geostrategic plan from 1990 to 2001 and after is a paradigmatic articulation of the covertly ruling moral logic. It launches into the theatre of war as direct war attack when U.S. Ambassador to Iraq, April Glaspie, is instructed to green-light Saddam’s already known plan to invade Kuwait in 1990: “The US. has no opinion on your Arab-Arab conflicts, such as your dispute with Kuwait”, she advises. To formalize the lie as official and traditional, she reports: “Secretary Baker has directed me to emphasize the instruction, first given to Iraq in the 1960s, that the Kuwait issue is not associated with America”.[xxviii]

The dispute was, in fact, over Kuwait’s drawing out oil from reserves underlying Iraq as enabled by the colonial split of the oil-rich Kuwait province from Iraq – the classic divide-and-rule policy holding also in the division of oil-rich Kurdistan among four manufactured states. Saddam had good reason to trust the U.S., not only by the long-term official promise of neutrality but as blood-mix ally when he waged a U.S.-supported war of aggression against Iran – which still remains the target. Note the big lie to provoke the supreme crime of war has remained without any glare of publicity that might derail the plan.

When Saddam did exactly as planned by invading Kuwait, Bush Sr. raved about the Nazi-like aggression against a weaker country in the reverse projection that always defines the covert U.S. state before, through and after 9-11. So in the same name of “preventing aggression” U.S. “defense” forces invaded Iraq to destroy any life capacity it had to defend itself – always the strategy since the defeat in Vietnam. The genocide began by the massacre of many tens of thousands of fleeing soldiers. Recall the weeping young woman, the Kuwait ambassador’s daughter, planted next to baby incubators falsely claiming the monster Saddam had murdered the babies. This reverse projection was soon to be made real thousands of times over inside the victim society of Iraq.

Reverse projection of evil is the meta law of U.S. psy-ops propaganda in the deadly conflicts and wars it covertly starts. This is the supreme moral program in action as “noble lies”. In this case, the air-bombing after surrender continued from U.S. and “special ally” Britain as “sanctions of Iraq” to “prevent aggression” – again the reverse projection. In fact the bombs continually fell on the water and electricity infrastructures of the defenceless people and against all lines of repair to restore either – “the line in the sand against Iraq aggression”. We might bear in mind that Wolfowitz was Undersecretary of Defense under Secretary Cheney at this time, their positions not unlike those at the time of 9-11.

Air-bombing, as Bertrand Russell long ago pointed out, is inherently fascist in erasing the killed and maimed from sight while ensuring impunity for the bombers of defenceless people.  But all such mass murder is only collateral damage to the supreme moral goal as “natural right and law”.  The air bombing of Iraq’s water and electricity supplies dressed in one big lie after another continued in slow mass-murderous destruction of the people and their social life infrastructures years on end.

Denis Halliday, United Nations Humanitarian Co-ordinator for the mission finally called it “genocide” (Wikipedia calls it “the Persian Gulf War”) when he resigned in 1998 to protest against “the crimes against humanity”. But no-one knew until the U.S. Department of Defense Intelligence got out that the first sweep of Iraq was planned down to the mass killing of the infants and children. September 11 in 2001 is better understood in this wider context of strategic planning by the covert U.S. terror state. For years the non-stop bombing of the people’s central life-water support system deliberately engineered mass dying from diseases of children in the hundreds of thousands.

What was predicted by Harvard Medical School researchers from the continuous civilian infrastructure bombing by the U.S. military – the deaths of over 500,000 children- was verified by the counts scientifically taken at the risk of researchers as the bombing continued month after month with NATO support.[xxix]

Full-spectrum corporate money-sequencing through Iraq under the Comprehensive Privatization Program would only be enabled by “9-11”down the road. But first the bases of advanced social life organization needed to be destroyed. The later-leaked U.S. Defense Intelligence document entitled “Iraq Water Treatment Vulnerabilities” expresses the moral DNA at work. I cite the key lines of U.S. Defense Intelligence Agency reports because they reveal the character of the supreme moral goal and its strategic planning.“With no domestic sources of water treatment replacement or chemicals like chlorine”and “laden with biological pollutants and bacteria”, the leaked Defense Intelligence Agency report says (italics added), “epidemics of such diseases as cholera, hepatitis, and typhoid” will “probably take six months before the [drinking and sewage water] system is fully degraded”.

The document continues, Conditions are favorable for communicable disease outbreaks [by the one-way air bombing] with the “most likely diseases during next sixty-ninety days of diarrheal diseases (particularly children) acute respiratory diseases (colds and influenza); typhoid; hepatitis (particularly children); measles, diphtheria, and pertussis (particularly children); meningitis including meningococcal (particularly children), cholera”. “Medical Problems in Iraq”, dated March 15, 1991, reports that the “water is less than 5 percent of the original supply – - diarrhea is four times above normal levels – - Conditions in Baghdad remain favorable for disease outbreaks”. The fifth document in June reports “almost all medicines in critically short supply” and “Gastroenteritis killing children – - in the south, 80 percent of the deaths are children”.[xxx]

In short, no limit to covert U.S. planning of indiscriminate mass murder for the supreme goal exists. The number who died in 9-11 suddenly pales in comparison. In all cases, it lets “those inimical to U.S. interests” know that there is no limit to how far the covert terror state will go for the supreme moral code not yet decoded. Combined with wars of aggression before and after 9-11, raining fire and explosions on civilians from the air so that no defense or escape can be made, saturating the fields of public meaning with big lies civilly dangerous to unmask, and bringing vast enrichment and new powers to transnational corporate conglomerates and their past and present CEO’s of the acting U.S. state – all become clear in their ultimate meaning once decoded. As the Democrat U.S. Secretary of State responded to the question of the 500,000 killed children, “we think the price was worth it”. No price is too much to pay for fulfilment of the transcendent project of the global U.S. state and its private capital rule as “the Free World”. “Those inimical to our interests” are those who oppose or are in the way of it, and thus “hate our freedom”.

The  Strategic Logic of Value through 9-11

By 2000 it was very clear to the U.S. strategic planners that the opening up of the Middle East and Central Asia after the fall of the Soviet Union had to be further pursued before it was too late.The great regret for the planning personnel of the coming Bush Jr. administration such as Paul Wolfowitz was that Iraq had not been taken over on the first invasion. The need for “full spectrum dominance” across the Middle East and Central Asia was thus the essential argument of the Project for the New American Century (PNAC), with the prescription that no other “regional power”was able to contest this dominance.

The PNAC more explicitly recognised the strategic necessity for what Zbigniew Brzezinski had already called for in 1998 in The Grand Chessboard: American Primacy and Its Geostrategic Imperatives – namely,“the circumstance of a truly massive and widely perceived direct external threat” to ensure public support for “the United States, as the sole and, indeed, the first truly global power”. The now once untouchable Central Asia, formerly of the USSR, was thus targeted as essential not only for its vast oil reserves, but to complete rule of the “first truly global power”.

The Project for the New American Century was more explicit than Brzezinski in 2000, the year before 9-11. As former Defence Minister of Canada, Paul Hellyer, lucidly puts it in a recent address (italics added): “The authors of this American ‘Mein Kampf’ [the PNAC] for conquest recognized the difficulty of persuading sophisticated Americans to accept such a gigantic change in policy. So they wrote the following (subsequently removed from the record):  ‘Further, the process of transformation, even if it brings revolutionary changes, is likely to be a long one, absent some catastrophic and catalyzing event – like a new Pearl Harbor.’”[xxxi]

Excepting the Vietnam War ending in military defeat – but vastly enriched armaments and connected private bank and corporate interests – the hitherto favoured strategic-plan mode had been local death squads along with pervasive American media propaganda against the victims as “communists” and “sponsored by the USSR”. But once there was no remotely equal opponent in mass-kill capacities and transnational trade treaties now bound governments within corporate-rights law as overriding domestic laws and policies, anything became permissible. The plan for the “supranational sovereignty” of “limitless capital accumulation” in “full-spectrum power”required only 9-11 to derail world-wide peace, environmental and anti-corporate globalization movements growing into uncontrollable civilian capacity across borders and continents.

People were waking up to the one-way destruction of life systems at all levels. Iraq was not alone in the genocidal clearance of formersocialist infrastructures uniting peoples across ethnic lines. A far more democratic Yugoslavia was set up and destroyed by financial means in the same year by the 1991 U.S. Foreign Operations Appropriations Law after the 1980’s multiplication of public interest rates to over 20percent primedevoured social life support structures across the world.

This was the unseen financialization base of a global war against public and worker economic and political powers that was reaping a cumulative global civilian reaction of opposition to “the plan”. 9-11 ensured against the fightback of financially dispossessed peoples with the signature reverse operation – diversion to an external “terrorist threat” that stood in the way of more sweeping transnational corporate wars on more peoples being dispossessed. Civil war in Yugoslavia long targeted by Reagan’s secret National Security Directive 133 as early as 1984 was predicted and occurred after the underlying employment and welfare structure of multi-ethnic Yugoslavia collapsed under deliberate financial destabilization. (The villain of the piece, Slobodan Milosevic, was himself a major banker).

In oil-rich Somalia, two-thirds of its territory had been leased out to four transnational oil companies by 1993 – a condition of lost grounds of life for Somalians behind the primeval civil war ever since. These are merely expressions of the underlying logic of value and the plan for its supranational rule beneath the lights of publicity as “discretion”. The examples are myriad from Latin America to South-East Asia to sub-Sahara Africa and the Middle East to Israel and Canada today. But a descriptive law of the supreme moral goal holds across all diverse instances of its expression.

Strategic planning for the destruction of social life infrastructures of peoples for private money capital gain without limit is the ultimate value program throughout from the U.S. to China.

The people of the U.S. are not exempt from their own system of covert state rule, although democratic heroism here joins with the larger world against it. This is the ultimate moral struggle on earth today. The moral politics of the disorder are the enforcement of the descriptive law.  This is the ruling meta program, and it is carcinogenic by its nature. The supreme motive force it multiplies by is privately self-maximizing money possession (individual and corporate)seeking to be limitlessly more.More = Better. Less = Militant Demand for More.

The “9-11” event is the epicentre of the supreme moral objective seated in Wall Street. Itis best understood as an ultimate strategic maximizer of theitalicizedformula. Exactly expressed, its ultimatelyregulating axiology is private money inputs through all life to maximally more private money outputs in ad infinitum progression: Money àLife as Meansà More Money or, formally, $àLasMà$1,2,3,4— N.

At the highest level of anchoring moral meaning, this private money-demand rule seeks to beabsolute and total across borders with no quarter. “Full spectrum dominance” is its military method. Yet what distinguishes it from theNazirule it connects with as prior transnational corporate partner in war making is that in the U.S. private money demand multiplication at the top is the only organising value meaning. 97% of its money command is produced by private bank notes of others’ debt to the private bank system centred in Wall Street. Yet despite this very narrow centre of control,almost no global territory or field of life is outside its rule and strategic plan.

The “Trans-Pacific Partnership” is but its latest expression – focusing on private knowledge-patent money sequencing to rule out generic pharmaceuticals and other life-and-death knowledge commons from which higher profits cannot be made. The one underlying common principle throughout all phases is transnational corporate and bank money sequencing to more. Its converse is to overrideall life requirements at all levels, and strategically planned crises and wars are the advancing lines of control and enforcement.

What is not recognized through all the genocidal wars,ecocidal results, collapsing social life support systems and falling wages, however,is that this ruling value sequence rationally leads to9-11” as maximal strategic payoff progression.“Absent some catastrophic and catalyzing event”, the Project for the New American Century declared before 9-11,

“ – - the U.S risks the loss of a global security order that is uniquely friendly to American principles and prosperity”.

Decoded, this meant in theory and practice more transnational private money sequence progression to ever more control over all still-uncontrolled assets for more and richer returns without limit of take or life destruction. But these are unspeakable lines of value meaning, and that is likely why, for example, Wikipedia keeps altering the entry of my name with conspiracy theory attributions and smears to ensure that such deep-structural diagnosis does not gain currency. That is how this system works, and analysis will provide more variations of this gagging method on 9-11 ahead.

The strategic necessity of the 9-11 event for “global security order”can even be asserted by the principal architects of the administration under which it happened, and those who observe this can be dismissed as “conspiracy theorists”. Reverse projection is, as always, the essential psychological operation. The documented but shouted-down logistics included V-P Cheney having control of the air-de

The Climate Change Corporate Lobby Threatens the Environment

At a recent Washington climate change rally, who is demanding action? Demanding action from whom? What action?

In reality, the diminutive, corporate-media inflated rally in DC was organized by the very corporate-financier special interests that have been wreaking terrible havoc on both the human population and the environment of this planet for decades. They are demanding action from a government that already represents their interests. Their demands are policies, particularly financial tax schemes that they themselves created and are are best positioned to benefit from while making no discernible impact on the very real environmental threats we collectively face.

Image: Rampant CO2, high global temperatures, rising sea levels. A look into the future? No, this is Mesozoic North America 250-65 million years ago. Climate change has happened long before humanity’s emergence, it will happen again, with or without us. The key to preserving what we as humans value, including not only our cities, towns, and countrysides, but also ecosystems and species – is to devise technical, pragmatic solutions to ensure no matter what the climate does, we can not only survive, but thrive.

….


It was an exercise in manufacturing consent for policies already long-ago devised and simply waiting for piecemeal implementation.

Yahoo! News’ report, “40,000 People Reported at Climate Change Rally,” mentions 350.org as one of the rally’s organizers and key representatives. Upon 350.org‘s “Friends & Allies” page, an extensive list of human rights and environmental racketeers can be found, all either linked, or directly connected to big-oil, big-finance, big-agri, and big-defense.

The World Wildlife Fund (WWF) and its “Earth Hour” for instance, includes Fortune 500 corporations (page 24, .pdf) (and here) Walmart, Unilever, Coca-Cola, draconian intellectual property racketeer Christopher Dodd representing the Motion Picture Association of America (MPAA) as a director, Bank of America, Google, and others.

While the WWF claims having big corporations as partners is “good news” for the environment, implying that they are shifting toward environmental responsibility – in reality it is exactly the other way around. Corporations are co-opting genuine concern for the environment to further enrich themselves and to create global frameworks that eliminate indigenous competition over resources they themselves are already exploiting and plan to continue exploiting.

The lack of real, pragmatic solutions, or even an honest scientific discussion on issues like climate change are particularly telling. This collection of organizations falling under the 350.org website have also been key in pushing other establishment agendas, most notably regime change and political subversion worldwide, couching a corporate-fascist warmongering agenda behind liberal concerns for “freedom,” “democracy,” and “human rights.”

Real Environmental Threats

The climate of Earth has always changed throughout its natural history, and many times before the existence of man, has changed so dramatically that it has caused mass extinction events. 65 million years ago, for example, Antarctica was a thriving ecosystem covered in temperate forests inhabited by dinosaurs. The global temperatures were higher, sea levels were higher, and carbon dioxide (CO2) levels were many times higher than they are today. Higher temperatures, sea levels, and CO2 levels made the planet more habitable, not less. This changed however, and to the detriment of many species that are now extinct.

Before the Cretaceous period, there have been many points throughout Earth’s natural history, that were we as humans to travel back, would find uninhabitable. The atmosphere has been in a state of perpetual change, the biology driven by this change has likewise continuously evolved. There is no “norm” in terms of geology, biology, or climate. The only constant is the inevitability of its constant change.

The climate will change with or without us. To ensure the survival of what we value in terms of human society, history, and infrastructure, as well as ecosystems and individual species we desire to preserve, we must come up with something better than “carbon neutrality” implemented by giving bankers yet another derivative to trade, and energy companies a legal framework to maintain monopolies over powering human civilization.

Part of the solution is not only leveraging technology to protect our towns, cities, and countrysides from adverse weather, flooding, and changes in temperature through innovative infrastructure projects, but undermining, decentralizing, and eventually eliminating permanently these corporate monopolies that are demonstrably destroying the environment.

Strange that 350.org wasn’t marching against genetically modified organisms (GMO) and Monsanto’s pursuit of overwriting the planet genetically. Could a planet face a more dire threat than being overwritten genetically, its very essence mutilated by profiteering corporations? Strange that 350.org‘s “Friends & Allies” don’t demand an end to profiteering wars around the planet that see tons of depleted uranium, with a half-life of billions of years, being dumped in both human and natural habitats the world over. Strange that 350.org, and “Friends & Allies” like WWF have in fact partnered with Fortune 500 corporations that perpetuate global monopolies, centralized manufacturing and distribution (and profits) that encourage wasteful supply chains, unhealthy socioeconomic trends, incur large amounts of garbage, and require the very petroleum and CO2 producing processes they allegedly were in Washington to oppose.

Indeed, 350.org and partners like the WWF do not represent corporations joining environmentalists, but rather represent environmentalists being co-opted and manipulated by the very special interests committing real harm to this planet.

Don’t Demand Action – Be the Action 

Waving around placards as part of a big-business rally couched behind environmentalism, demanding action from a government big-business already fully owns, simply legitimizes and manufacturers public consent for more of the same. More schemes, more waste, more fraud, more abuse, while the environment continues to unravel and a host of problems both directly and indirectly related continue to grow.

Real solutions generally don’t involve corporations or governments, in fact, as a necessity must exclude them. The marriage between corporate interests and government regulations should be something all of us can agree on, regardless of where we sit on the political or environmental spectrum.

Real solutions involve a real education in science, technology, design, and manufacturing. This empowers people in all levels of society to accurately assess problems and apply local solutions. This, coupled with modern manufacturing technology enables more to be done on a local level, short-circuiting the petroleum intensive logistical chains WWF sponsors like Walmart couldn’t live without.

Organic farming on a local level coupled with local farmers’ markets eliminates entirely the need for Monsanto poison, fertilizers, and genetically modified franken-crops, along with the replacement of the petroleum intensive logistical networks that distribute big-agri’s products. 3D printing, computer-controlled manufacturing, and local hackerspaces that encourage local entrepreneurship accelerate technological development and solutions that allow us to live the lives we wish to lead while doing so more efficiently in terms of energy, waste, and environmental impact.

In fact, when you think about it, almost all of these real solutions involve real community and local action, not placard-waving trips to Washington. These are not solutions that involve policies, taxes, and regulations, but rather technology, education, constructive, pragmatic, technical solutions that not only would make our environment more livable, but make our local economies and communities more viable and self-sufficient. The catch is, and the reason why this isn’t being done, you will notice that none of these activities require WWF sponsors like Walmart, Nike, IBM, Toyota, Bank of America, Coca-Cola, HSBC, Citi, IKEA, Nokia, etc.

We all desire cleaner air, healthier food, safer water, and greener parks. Waiting for a corporate-financier establishment to give it to us, when they themselves are the ones that have denied us of these essentials is the height of both naivety and futility.

Does it make sense then, to see why real problems and their solutions have become the target of hijackers like the corporate conglomeration that is 350.org and the WWF? Does it make sense to see them offering “alternative” centralized, corporate dependent solutions that replace local activism and tangible, technological solutions?

Why travel to Washington D.C. and demand non-solutions to real problems when you can organize locally and begin making this planet livable in very real, tangible, pragmatic, and measurable ways?

#SOTU – The Summary: Minimum Wage, Maximum Genomes, Macs, And Moar Cyber-Security

5% fewer words, slightly shorter than last year but just as hope-full. From a hike (and inflation-indexed) in the minimum wage to a 140x multiplier of genome sciences investment (now that is Keynesian awesomeness); from extending homeownership (and refinancing plans) even more to energy independence; from Apple, Ford, and CAT's US Manufacturing to Bridge-Building and infrastructure spending; and from Trans-Pacific and -Atlantic Trade to cyber-security; it's all gonna be great - because as President Obama reminded us at the start... "Our housing market is healing, our stock market is rebounding," and this won't add a dime to the deficit... oh and that Student loan bubble - no worries, there's a college scorecard so now you know where you can get the biggest bang for your credit-based buck. Summing it all up:

  • Guns 9 : 3 Freedom
  • Jobs 31 : 17 Tax
  • Congress 17 : 40 Work
  • Recovery 2 : 0 Unicorns
  • Spending 3 : 2 Cutting

Fed heads chimed in early:

  • *PLOSSER: `BRIGHTER LINE' NEEDED BETWEEN FISCAL, MONETARY POLICY
  • *PLOSSER EXPECTS FED TO REDUCE BOND BUYING BY END OF THIS YEAR

That won't help fund all of this wonderfulness...

But we started on an awkward note with Reince Priebus:

and David Axelrod...

Oh well...

The word cloud: Jobs - Years - America (and... people education like)

Full Speech:

Mr. Speaker, Mr. Vice President, Members of Congress, fellow citizens:

     Fifty-one years ago, John F. Kennedy declared to this Chamber that “the Constitution makes us not rivals for power but partners for progress…It is my task,” he said, “to report the State of the Union – to improve it is the task of us all.”

     Tonight, thanks to the grit and determination of the American people, there is much progress to report. After a decade of grinding war, our brave men and women in uniform are coming home. After years of grueling recession, our businesses have created over six million new jobs. We buy more American cars than we have in five years, and less foreign oil than we have in twenty. Our housing market is healing, our stock market is rebounding, and consumers, patients, and homeowners enjoy stronger protections than ever before.

     Together, we have cleared away the rubble of crisis, and can say with renewed confidence that the state of our union is stronger.

     But we gather here knowing that there are millions of Americans whose hard work and dedication have not yet been rewarded. Our economy is adding jobs – but too many people still can’t find full-time employment. Corporate profits have rocketed to all-time highs – but for more than a decade, wages and incomes have barely budged.

     It is our generation’s task, then, to reignite the true engine of America’s economic growth – a rising, thriving middle class.

     It is our unfinished task to restore the basic bargain that built this country – the idea that if you work hard and meet your responsibilities, you can get ahead, no matter where you come from, what you look like, or who you love.

     It is our unfinished task to make sure that this government works on behalf of the many, and not just the few; that it encourages free enterprise, rewards individual initiative, and opens the doors of opportunity to every child across this great nation.

     The American people don’t expect government to solve every problem. They don’t expect those of us in this chamber to agree on every issue. But they do expect us to put the nation’s interests before party. They do expect us to forge reasonable compromise where we can. For they know that America moves forward only when we do so together; and that the responsibility of improving this union remains the task of us all.

     Our work must begin by making some basic decisions about our budget – decisions that will have a huge impact on the strength of our recovery.

     Over the last few years, both parties have worked together to reduce the deficit by more than $2.5 trillion – mostly through spending cuts, but also by raising tax rates on the wealthiest 1 percent of Americans. As a result, we are more than halfway towards the goal of $4 trillion in deficit reduction that economists say we need to stabilize our finances.

     Now we need to finish the job. And the question is, how?

     In 2011, Congress passed a law saying that if both parties couldn’t agree on a plan to reach our deficit goal, about a trillion dollars’ worth of budget cuts would automatically go into effect this year. These sudden, harsh, arbitrary cuts would jeopardize our military readiness. They’d devastate priorities like education, energy, and medical research. They would certainly slow our recovery, and cost us hundreds of thousands of jobs. That’s why Democrats, Republicans, business leaders, and economists have already said that these cuts, known here in Washington as “the sequester,” are a really bad idea.

     Now, some in this Congress have proposed preventing only the defense cuts by making even bigger cuts to things like education and job training; Medicare and Social Security benefits.

     That idea is even worse. Yes, the biggest driver of our long-term debt is the rising cost of health care for an aging population. And those of us who care deeply about programs like Medicare must embrace the need for modest reforms – otherwise, our retirement programs will crowd out the investments we need for our children, and jeopardize the promise of a secure retirement for future generations.

     But we can’t ask senior citizens and working families to shoulder the entire burden of deficit reduction while asking nothing more from the wealthiest and most powerful. We won’t grow the middle class simply by shifting the cost of health care or college onto families that are already struggling, or by forcing communities to lay off more teachers, cops, and firefighters. Most Americans – Democrats, Republicans, and Independents – understand that we can’t just cut our way to prosperity. They know that broad-based economic growth requires a balanced approach to deficit reduction, with spending cuts and revenue, and with everybody doing their fair share. And that’s the approach I offer tonight.

     On Medicare, I’m prepared to enact reforms that will achieve the same amount of health care savings by the beginning of the next decade as the reforms proposed by the bipartisan Simpson-Bowles commission. Already, the Affordable Care Act is helping to slow the growth of health care costs. The reforms I’m proposing go even further. We’ll reduce taxpayer subsidies to prescription drug companies and ask more from the wealthiest seniors. We’ll bring down costs by changing the way our government pays for Medicare, because our medical bills shouldn’t be based on the number of tests ordered or days spent in the hospital – they should be based on the quality of care that our seniors receive. And I am open to additional reforms from both parties, so long as they don’t violate the guarantee of a secure retirement. Our government shouldn’t make promises we cannot keep – but we must keep the promises we’ve already made.

     To hit the rest of our deficit reduction target, we should do what leaders in both parties have already suggested, and save hundreds of billions of dollars by getting rid of tax loopholes and deductions for the well-off and well-connected. After all, why would we choose to make deeper cuts to education and Medicare just to protect special interest tax breaks? How is that fair? How does that promote growth?

     Now is our best chance for bipartisan, comprehensive tax reform that encourages job creation and helps bring down the deficit. The American people deserve a tax code that helps small businesses spend less time filling out complicated forms, and more time expanding and hiring; a tax code that ensures billionaires with high-powered accountants can’t pay a lower rate than their hard-working secretaries; a tax code that lowers incentives to move jobs overseas, and lowers tax rates for businesses and manufacturers that create jobs right here in America. That’s what tax reform can deliver. That’s what we can do together.

     I realize that tax reform and entitlement reform won’t be easy. The politics will be hard for both sides. None of us will get 100 percent of what we want. But the alternative will cost us jobs, hurt our economy, and visit hardship on millions of hardworking Americans. So let’s set party interests aside, and work to pass a budget that replaces reckless cuts with smart savings and wise investments in our future. And let’s do it without the brinksmanship that stresses consumers and scares off investors. The greatest nation on Earth cannot keep conducting its business by drifting from one manufactured crisis to the next. Let’s agree, right here, right now, to keep the people’s government open, pay our bills on time, and always uphold the full faith and credit of the United States of America. The American people have worked too hard, for too long, rebuilding from one crisis to see their elected officials cause another.

     Now, most of us agree that a plan to reduce the deficit must be part of our agenda. But let’s be clear: deficit reduction alone is not an economic plan. A growing economy that creates good, middle-class jobs – that must be the North Star that guides our efforts. Every day, we should ask ourselves three questions as a nation: How do we attract more jobs to our shores? How do we equip our people with the skills needed to do those jobs? And how do we make sure that hard work leads to a decent living?

     A year and a half ago, I put forward an American Jobs Act that independent economists said would create more than one million new jobs. I thank the last Congress for passing some of that agenda, and I urge this Congress to pass the rest. Tonight, I’ll lay out additional proposals that are fully paid for and fully consistent with the budget framework both parties agreed to just 18 months ago. Let me repeat – nothing I’m proposing tonight should increase our deficit by a single dime. It’s not a bigger government we need, but a smarter government that sets priorities and invests in broad-based growth.

     Our first priority is making America a magnet for new jobs and manufacturing.

     After shedding jobs for more than 10 years, our manufacturers have added about 500,000 jobs over the past three. Caterpillar is bringing jobs back from Japan. Ford is bringing jobs back from Mexico. After locating plants in other countries like China, Intel is opening its most advanced plant right here at home. And this year, Apple will start making Macs in America again.

     There are things we can do, right now, to accelerate this trend. Last year, we created our first manufacturing innovation institute in Youngstown, Ohio. A once-shuttered warehouse is now a state-of-the art lab where new workers are mastering the 3D printing that has the potential to revolutionize the way we make almost everything. There’s no reason this can’t happen in other towns. So tonight, I’m announcing the launch of three more of these manufacturing hubs, where businesses will partner with the Departments of Defense and Energy to turn regions left behind by globalization into global centers of high-tech jobs. And I ask this Congress to help create a network of fifteen of these hubs and guarantee that the next revolution in manufacturing is Made in America.

     If we want to make the best products, we also have to invest in the best ideas. Every dollar we invested to map the human genome returned $140 to our economy. Today, our scientists are mapping the human brain to unlock the answers to Alzheimer’s; developing drugs to regenerate damaged organs; devising new material to make batteries ten times more powerful. Now is not the time to gut these job-creating investments in science and innovation. Now is the time to reach a level of research and development not seen since the height of the Space Race. And today, no area holds more promise than our investments in American energy.

     After years of talking about it, we are finally poised to control our own energy future. We produce more oil at home than we have in 15 years. We have doubled the distance our cars will go on a gallon of gas, and the amount of renewable energy we generate from sources like wind and solar – with tens of thousands of good, American jobs to show for it. We produce more natural gas than ever before – and nearly everyone’s energy bill is lower because of it. And over the last four years, our emissions of the dangerous carbon pollution that threatens our planet have actually fallen.

     But for the sake of our children and our future, we must do more to combat climate change. Yes, it’s true that no single event makes a trend. But the fact is, the 12 hottest years on record have all come in the last 15. Heat waves, droughts, wildfires, and floods – all are now more frequent and intense. We can choose to believe that Superstorm Sandy, and the most severe drought in decades, and the worst wildfires some states have ever seen were all just a freak coincidence. Or we can choose to believe in the overwhelming judgment of science – and act before it’s too late.

     The good news is, we can make meaningful progress on this issue while driving strong economic growth. I urge this Congress to pursue a bipartisan, market-based solution to climate change, like the one John McCain and Joe Lieberman worked on together a few years ago. But if Congress won’t act soon to protect future generations, I will. I will direct my Cabinet to come up with executive actions we can take, now and in the future, to reduce pollution, prepare our communities for the consequences of climate change, and speed the transition to more sustainable sources of energy.

     Four years ago, other countries dominated the clean energy market and the jobs that came with it. We’ve begun to change that. Last year, wind energy added nearly half of all new power capacity in America. So let’s generate even more. Solar energy gets cheaper by the year – so let’s drive costs down even further. As long as countries like China keep going all-in on clean energy, so must we.

     In the meantime, the natural gas boom has led to cleaner power and greater energy independence. That’s why my Administration will keep cutting red tape and speeding up new oil and gas permits. But I also want to work with this Congress to encourage the research and technology that helps natural gas burn even cleaner and protects our air and water.

     Indeed, much of our new-found energy is drawn from lands and waters that we, the public, own together. So tonight, I propose we use some of our oil and gas revenues to fund an Energy Security Trust that will drive new research and technology to shift our cars and trucks off oil for good. If a non-partisan coalition of CEOs and retired generals and admirals can get behind this idea, then so can we. Let’s take their advice and free our families and businesses from the painful spikes in gas prices we’ve put up with for far too long. I’m also issuing a new goal for America: let’s cut in half the energy wasted by our homes and businesses over the next twenty years. The states with the best ideas to create jobs and lower energy bills by constructing more efficient buildings will receive federal support to help make it happen.

     America’s energy sector is just one part of an aging infrastructure badly in need of repair. Ask any CEO where they’d rather locate and hire: a country with deteriorating roads and bridges, or one with high-speed rail and internet; high-tech schools and self-healing power grids. The CEO of Siemens America – a company that brought hundreds of new jobs to North Carolina – has said that if we upgrade our infrastructure, they’ll bring even more jobs. And I know that you want these job-creating projects in your districts. I’ve seen you all at the ribbon-cuttings.

     Tonight, I propose a “Fix-It-First” program to put people to work as soon as possible on our most urgent repairs, like the nearly 70,000 structurally deficient bridges across the country. And to make sure taxpayers don’t shoulder the whole burden, I’m also proposing a Partnership to Rebuild America that attracts private capital to upgrade what our businesses need most: modern ports to move our goods; modern pipelines to withstand a storm; modern schools worthy of our children. Let’s prove that there is no better place to do business than the United States of America. And let’s start right away.

     Part of our rebuilding effort must also involve our housing sector. Today, our housing market is finally healing from the collapse of 2007. Home prices are rising at the fastest pace in six years, home purchases are up nearly 50 percent, and construction is expanding again.

     But even with mortgage rates near a 50-year low, too many families with solid credit who want to buy a home are being rejected. Too many families who have never missed a payment and want to refinance are being told no. That’s holding our entire economy back, and we need to fix it. Right now, there’s a bill in this Congress that would give every responsible homeowner in America the chance to save $3,000 a year by refinancing at today’s rates. Democrats and Republicans have supported it before. What are we waiting for? Take a vote, and send me that bill. Right now, overlapping regulations keep responsible young families from buying their first home. What’s holding us back? Let’s streamline the process, and help our economy grow.

     These initiatives in manufacturing, energy, infrastructure, and housing will help entrepreneurs and small business owners expand and create new jobs. But none of it will matter unless we also equip our citizens with the skills and training to fill those jobs. And that has to start at the earliest possible age.

     Study after study shows that the sooner a child begins learning, the better he or she does down the road. But today, fewer than 3 in 10 four year-olds are enrolled in a high-quality preschool program. Most middle-class parents can’t afford a few hundred bucks a week for private preschool. And for poor kids who need help the most, this lack of access to preschool education can shadow them for the rest of their lives.

     Tonight, I propose working with states to make high-quality preschool available to every child in America. Every dollar we invest in high-quality early education can save more than seven dollars later on – by boosting graduation rates, reducing teen pregnancy, even reducing violent crime. In states that make it a priority to educate our youngest children, like Georgia or Oklahoma, studies show students grow up more likely to read and do math at grade level, graduate high school, hold a job, and form more stable families of their own. So let’s do what works, and make sure none of our children start the race of life already behind. Let’s give our kids that chance.

     Let’s also make sure that a high school diploma puts our kids on a path to a good job. Right now, countries like Germany focus on graduating their high school students with the equivalent of a technical degree from one of our community colleges, so that they’re ready for a job. At schools like P-Tech in Brooklyn, a collaboration between New York Public Schools, the City University of New York, and IBM, students will graduate with a high school diploma and an associate degree in computers or engineering.

     We need to give every American student opportunities like this. Four years ago, we started Race to the Top – a competition that convinced almost every state to develop smarter curricula and higher standards, for about 1 percent of what we spend on education each year. Tonight, I’m announcing a new challenge to redesign America’s high schools so they better equip graduates for the demands of a high-tech economy. We’ll reward schools that develop new partnerships with colleges and employers, and create classes that focus on science, technology, engineering, and math – the skills today’s employers are looking for to fill jobs right now and in the future.

     Now, even with better high schools, most young people will need some higher education. It’s a simple fact: the more education you have, the more likely you are to have a job and work your way into the middle class. But today, skyrocketing costs price way too many young people out of a higher education, or saddle them with unsustainable debt.

     Through tax credits, grants, and better loans, we have made college more affordable for millions of students and families over the last few years. But taxpayers cannot continue to subsidize the soaring cost of higher education. Colleges must do their part to keep costs down, and it’s our job to make sure they do. Tonight, I ask Congress to change the Higher Education Act, so that affordability and value are included in determining which colleges receive certain types of federal aid. And tomorrow, my Administration will release a new “College Scorecard” that parents and students can use to compare schools based on a simple criteria: where you can get the most bang for your educational buck.

     To grow our middle class, our citizens must have access to the education and training that today’s jobs require. But we also have to make sure that America remains a place where everyone who’s willing to work hard has the chance to get ahead.

     Our economy is stronger when we harness the talents and ingenuity of striving, hopeful immigrants. And right now, leaders from the business, labor, law enforcement, and faith communities all agree that the time has come to pass comprehensive immigration reform.

     Real reform means strong border security, and we can build on the progress my Administration has already made – putting more boots on the southern border than at any time in our history, and reducing illegal crossings to their lowest levels in 40 years.

     Real reform means establishing a responsible pathway to earned citizenship – a path that includes passing a background check, paying taxes and a meaningful penalty, learning English, and going to the back of the line behind the folks trying to come here legally.

     And real reform means fixing the legal immigration system to cut waiting periods, reduce bureaucracy, and attract the highly-skilled entrepreneurs and engineers that will help create jobs and grow our economy.

     In other words, we know what needs to be done. As we speak, bipartisan groups in both chambers are working diligently to draft a bill, and I applaud their efforts. Now let’s get this done. Send me a comprehensive immigration reform bill in the next few months, and I will sign it right away.

     But we can’t stop there. We know our economy is stronger when our wives, mothers, and daughters can live their lives free from discrimination in the workplace, and free from the fear of domestic violence. Today, the Senate passed the Violence Against Women Act that Joe Biden originally wrote almost 20 years ago. I urge the House to do the same. And I ask this Congress to declare that women should earn a living equal to their efforts, and finally pass the Paycheck Fairness Act this year.

     We know our economy is stronger when we reward an honest day’s work with honest wages. But today, a full-time worker making the minimum wage earns $14,500 a year. Even with the tax relief we’ve put in place, a family with two kids that earns the minimum wage still lives below the poverty line. That’s wrong. That’s why, since the last time this Congress raised the minimum wage, nineteen states have chosen to bump theirs even higher.

      Tonight, let’s declare that in the wealthiest nation on Earth, no one who works full-time should have to live in poverty, and raise the federal minimum wage to $9.00 an hour. This single step would raise the incomes of millions of working families. It could mean the difference between groceries or the food bank; rent or eviction; scraping by or finally getting ahead. For businesses across the country, it would mean customers with more money in their pockets. In fact, working folks shouldn’t have to wait year after year for the minimum wage to go up while CEO pay has never been higher. So here’s an idea that Governor Romney and I actually agreed on last year: let’s tie the minimum wage to the cost of living, so that it finally becomes a wage you can live on.

     Tonight, let’s also recognize that there are communities in this country where no matter how hard you work, it’s virtually impossible to get ahead. Factory towns decimated from years of plants packing up. Inescapable pockets of poverty, urban and rural, where young adults are still fighting for their first job. America is not a place where chance of birth or circumstance should decide our destiny. And that is why we need to build new ladders of opportunity into the middle class for all who are willing to climb them.

     Let’s offer incentives to companies that hire Americans who’ve got what it takes to fill that job opening, but have been out of work so long that no one will give them a chance. Let’s put people back to work rebuilding vacant homes in run-down neighborhoods. And this year, my Administration will begin to partner with 20 of the hardest-hit towns in America to get these communities back on their feet. We’ll work with local leaders to target resources at public safety, education, and housing. We’ll give new tax credits to businesses that hire and invest. And we’ll work to strengthen families by removing the financial deterrents to marriage for low-income couples, and doing more to encourage fatherhood – because what makes you a man isn’t the ability to conceive a child; it’s having the courage to raise one.

     Stronger families. Stronger communities. A stronger America. It is this kind of prosperity – broad, shared, and built on a thriving middle class – that has always been the source of our progress at home. It is also the foundation of our power and influence throughout the world.

     Tonight, we stand united in saluting the troops and civilians who sacrifice every day to protect us. Because of them, we can say with confidence that America will complete its mission in Afghanistan, and achieve our objective of defeating the core of al Qaeda. Already, we have brought home 33,000 of our brave servicemen and women. This spring, our forces will move into a support role, while Afghan security forces take the lead. Tonight, I can announce that over the next year, another 34,000 American troops will come home from Afghanistan. This drawdown will continue. And by the end of next year, our war in Afghanistan will be over.

     Beyond 2014, America’s commitment to a unified and sovereign Afghanistan will endure, but the nature of our commitment will change. We are negotiating an agreement with the Afghan government that focuses on two missions: training and equipping Afghan forces so that the country does not again slip into chaos, and counter-terrorism efforts that allow us to pursue the remnants of al Qaeda and their affiliates.

     Today, the organization that attacked us on 9/11 is a shadow of its former self. Different al Qaeda affiliates and extremist groups have emerged – from the Arabian Peninsula to Africa. The threat these groups pose is evolving. But to meet this threat, we don’t need to send tens of thousands of our sons and daughters abroad, or occupy other nations. Instead, we will need to help countries like Yemen, Libya, and Somalia provide for their own security, and help allies who take the fight to terrorists, as we have in Mali. And, where necessary, through a range of capabilities, we will continue to take direct action against those terrorists who pose the gravest threat to Americans.

     As we do, we must enlist our values in the fight. That is why my Administration has worked tirelessly to forge a durable legal and policy framework to guide our counterterrorism operations. Throughout, we have kept Congress fully informed of our efforts. I recognize that in our democracy, no one should just take my word that we’re doing things the right way. So, in the months ahead, I will continue to engage with Congress to ensure not only that our targeting, detention, and prosecution of terrorists remains consistent with our laws and system of checks and balances, but that our efforts are even more transparent to the American people and to the world.

     Of course, our challenges don’t end with al Qaeda. America will continue to lead the effort to prevent the spread of the world’s most dangerous weapons. The regime in North Korea must know that they will only achieve security and prosperity by meeting their international obligations. Provocations of the sort we saw last night will only isolate them further, as we stand by our allies, strengthen our own missile defense, and lead the world in taking firm action in response to these threats.

     Likewise, the leaders of Iran must recognize that now is the time for a diplomatic solution, because a coalition stands united in demanding that they meet their obligations, and we will do what is necessary to prevent them from getting a nuclear weapon. At the same time, we will engage Russia to seek further reductions in our nuclear arsenals, and continue leading the global effort to secure nuclear materials that could fall into the wrong hands – because our ability to influence others depends on our willingness to lead.

     America must also face the rapidly growing threat from cyber-attacks. We know hackers steal people’s identities and infiltrate private e-mail. We know foreign countries and companies swipe our corporate secrets. Now our enemies are also seeking the ability to sabotage our power grid, our financial institutions, and our air traffic control systems. We cannot look back years from now and wonder why we did nothing in the face of real threats to our security and our economy.

     That’s why, earlier today, I signed a new executive order that will strengthen our cyber defenses by increasing information sharing, and developing standards to protect our national security, our jobs, and our privacy. Now, Congress must act as well, by passing legislation to give our government a greater capacity to secure our networks and deter attacks.

     Even as we protect our people, we should remember that today’s world presents not only dangers, but opportunities. To boost American exports, support American jobs, and level the playing field in the growing markets of Asia, we intend to complete negotiations on a Trans-Pacific Partnership. And tonight, I am announcing that we will launch talks on a comprehensive Transatlantic Trade and Investment Partnership with the European Union – because trade that is free and fair across the Atlantic supports millions of good-paying American jobs.

     We also know that progress in the most impoverished parts of our world enriches us all. In many places, people live on little more than a dollar a day. So the United States will join with our allies to eradicate such extreme poverty in the next two decades: by connecting more people to the global economy and empowering women; by giving our young and brightest minds new opportunities to serve and helping communities to feed, power, and educate themselves; by saving the world’s children from preventable deaths; and by realizing the promise of an AIDS-free generation.

     Above all, America must remain a beacon to all who seek freedom during this period of historic change. I saw the power of hope last year in Rangoon – when Aung San Suu Kyi welcomed an American President into the home where she had been imprisoned for years; when thousands of Burmese lined the streets, waving American flags, including a man who said, “There is justice and law in the United States. I want our country to be like that.”

     In defense of freedom, we will remain the anchor of strong alliances from the Americas to Africa; from Europe to Asia. In the Middle East, we will stand with citizens as they demand their universal rights, and support stable transitions to democracy. The process will be messy, and we cannot presume to dictate the course of change in countries like Egypt; but we can – and will – insist on respect for the fundamental rights of all people. We will keep the pressure on a Syrian regime that has murdered its own people, and support opposition leaders that respect the rights of every Syrian. And we will stand steadfast with Israel in pursuit of security and a lasting peace. These are the messages I will deliver when I travel to the Middle East next month.

     All this work depends on the courage and sacrifice of those who serve in dangerous places at great personal risk – our diplomats, our intelligence officers, and the men and women of the United States Armed Forces. As long as I’m Commander-in-Chief, we will do whatever we must to protect those who serve their country abroad, and we will maintain the best military in the world. We will invest in new capabilities, even as we reduce waste and wartime spending. We will ensure equal treatment for all service members, and equal benefits for their families – gay and straight. We will draw upon the courage and skills of our sisters and daughters, because women have proven under fire that they are ready for combat. We will keep faith with our veterans – investing in world-class care, including mental health care, for our wounded warriors; supporting our military families; and giving our veterans the benefits, education, and job opportunities they have earned. And I want to thank my wife Michelle and Dr. Jill Biden for their continued dedication to serving our military families as well as they serve us.

     But defending our freedom is not the job of our military alone. We must all do our part to make sure our God-given rights are protected here at home. That includes our most fundamental right as citizens: the right to vote. When any Americans – no matter where they live or what their party – are denied that right simply because they can’t wait for five, six, seven hours just to cast their ballot, we are betraying our ideals. That’s why, tonight, I’m announcing a non-partisan commission to improve the voting experience in America. And I’m asking two long-time experts in the field, who’ve recently served as the top attorneys for my campaign and for Governor Romney’s campaign, to lead it. We can fix this, and we will. The American people demand it. And so does our democracy.

     Of course, what I’ve said tonight matters little if we don’t come together to protect our most precious resource – our children.

     It has been two months since Newtown. I know this is not the first time this country has debated how to reduce gun violence. But this time is different. Overwhelming majorities of Americans – Americans who believe in the 2nd Amendment – have come together around commonsense reform – like background checks that will make it harder for criminals to get their hands on a gun. Senators of both parties are working together on tough new laws to prevent anyone from buying guns for resale to criminals. Police chiefs are asking our help to get weapons of war and massive ammunition magazines off our streets, because they are tired of being outgunned.

     Each of these proposals deserves a vote in Congress. If you want to vote no, that’s your choice. But these proposals deserve a vote. Because in the two months since Newtown, more than a thousand birthdays, graduations, and anniversaries have been stolen from our lives by a bullet from a gun.

     One of those we lost was a young girl named Hadiya Pendleton. She was 15 years old. She loved Fig Newtons and lip gloss. She was a majorette. She was so good to her friends, they all thought they were her best friend. Just three weeks ago, she was here, in Washington, with her classmates, performing for her country at my inauguration. And a week later, she was shot and killed in a Chicago park after school, just a mile away from my house.

     Hadiya’s parents, Nate and Cleo, are in this chamber tonight, along with more than two dozen Americans whose lives have been torn apart by gun violence. They deserve a vote.

     Gabby Giffords deserves a vote.

     The families of Newtown deserve a vote.

     The families of Aurora deserve a vote.

     The families of Oak Creek, and Tucson, and Blacksburg, and the countless other communities ripped open by gun violence – they deserve a simple vote.

     Our actions will not prevent every senseless act of violence in this country. Indeed, no laws, no initiatives, no administrative acts will perfectly solve all the challenges I’ve outlined tonight. But we were never sent here to be perfect. We were sent here to make what difference we can, to secure this nation, expand opportunity, and uphold our ideals through the hard, often frustrating, but absolutely necessary work of self-government.      We were sent here to look out for our fellow Americans the same way they look out for one another, every single day, usually without fanfare, all across this country. We should follow their example.

     We should follow the example of a New York City nurse named Menchu Sanchez. When Hurricane Sandy plunged her hospital into darkness, her thoughts were not with how her own home was faring – they were with the twenty precious newborns in her care and the rescue plan she devised that kept them all safe.

     We should follow the example of a North Miami woman named Desiline Victor. When she arrived at her polling place, she was told the wait to vote might be six hours. And as time ticked by, her concern was not with her tired body or aching feet, but whether folks like her would get to have their say. Hour after hour, a throng of people stayed in line in support of her. Because Desiline is 102 years old. And they erupted in cheers when she finally put on a sticker that read “I Voted.”

     We should follow the example of a police officer named Brian Murphy. When a gunman opened fire on a Sikh temple in Wisconsin, and Brian was the first to arrive, he did not consider his own safety. He fought back until help arrived, and ordered his fellow officers to protect the safety of the Americans worshiping inside – even as he lay bleeding from twelve bullet wounds.

     When asked how he did that, Brian said, “That’s just the way we’re made.”

     That’s just the way we’re made.

      We may do different jobs, and wear different uniforms, and hold different views than the person beside us. But as Americans, we all share the same proud title:

     We are citizens. It’s a word that doesn’t just describe our nationality or legal status. It describes the way we’re made. It describes what we believe. It captures the enduring idea that this country only works when we accept certain obligations to one another and to future generations; that our rights are wrapped up in the rights of others; and that well into our third century as a nation, it remains the task of us all, as citizens of these United States, to be the authors of the next great chapter in our American story.

     Thank you, God bless you, and God bless the United States of America.

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#SOTU – The Summary: Minimum Wage, Maximum Genomes, Macs, And Moar Cyber-Security

5% fewer words, slightly shorter than last year but just as hope-full. From a hike (and inflation-indexed) in the minimum wage to a 140x multiplier of genome sciences investment (now that is Keynesian awesomeness); from extending homeownership (and refinancing plans) even more to energy independence; from Apple, Ford, and CAT's US Manufacturing to Bridge-Building and infrastructure spending; and from Trans-Pacific and -Atlantic Trade to cyber-security; it's all gonna be great - because as President Obama reminded us at the start... "Our housing market is healing, our stock market is rebounding," and this won't add a dime to the deficit... oh and that Student loan bubble - no worries, there's a college scorecard so now you know where you can get the biggest bang for your credit-based buck. Summing it all up:

  • Guns 9 : 3 Freedom
  • Jobs 31 : 17 Tax
  • Congress 17 : 40 Work
  • Recovery 2 : 0 Unicorns
  • Spending 3 : 2 Cutting

Fed heads chimed in early:

  • *PLOSSER: `BRIGHTER LINE' NEEDED BETWEEN FISCAL, MONETARY POLICY
  • *PLOSSER EXPECTS FED TO REDUCE BOND BUYING BY END OF THIS YEAR

That won't help fund all of this wonderfulness...

But we started on an awkward note with Reince Priebus:

and David Axelrod...

Oh well...

The word cloud: Jobs - Years - America (and... people education like)

Full Speech:

Mr. Speaker, Mr. Vice President, Members of Congress, fellow citizens:

     Fifty-one years ago, John F. Kennedy declared to this Chamber that “the Constitution makes us not rivals for power but partners for progress…It is my task,” he said, “to report the State of the Union – to improve it is the task of us all.”

     Tonight, thanks to the grit and determination of the American people, there is much progress to report. After a decade of grinding war, our brave men and women in uniform are coming home. After years of grueling recession, our businesses have created over six million new jobs. We buy more American cars than we have in five years, and less foreign oil than we have in twenty. Our housing market is healing, our stock market is rebounding, and consumers, patients, and homeowners enjoy stronger protections than ever before.

     Together, we have cleared away the rubble of crisis, and can say with renewed confidence that the state of our union is stronger.

     But we gather here knowing that there are millions of Americans whose hard work and dedication have not yet been rewarded. Our economy is adding jobs – but too many people still can’t find full-time employment. Corporate profits have rocketed to all-time highs – but for more than a decade, wages and incomes have barely budged.

     It is our generation’s task, then, to reignite the true engine of America’s economic growth – a rising, thriving middle class.

     It is our unfinished task to restore the basic bargain that built this country – the idea that if you work hard and meet your responsibilities, you can get ahead, no matter where you come from, what you look like, or who you love.

     It is our unfinished task to make sure that this government works on behalf of the many, and not just the few; that it encourages free enterprise, rewards individual initiative, and opens the doors of opportunity to every child across this great nation.

     The American people don’t expect government to solve every problem. They don’t expect those of us in this chamber to agree on every issue. But they do expect us to put the nation’s interests before party. They do expect us to forge reasonable compromise where we can. For they know that America moves forward only when we do so together; and that the responsibility of improving this union remains the task of us all.

     Our work must begin by making some basic decisions about our budget – decisions that will have a huge impact on the strength of our recovery.

     Over the last few years, both parties have worked together to reduce the deficit by more than $2.5 trillion – mostly through spending cuts, but also by raising tax rates on the wealthiest 1 percent of Americans. As a result, we are more than halfway towards the goal of $4 trillion in deficit reduction that economists say we need to stabilize our finances.

     Now we need to finish the job. And the question is, how?

     In 2011, Congress passed a law saying that if both parties couldn’t agree on a plan to reach our deficit goal, about a trillion dollars’ worth of budget cuts would automatically go into effect this year. These sudden, harsh, arbitrary cuts would jeopardize our military readiness. They’d devastate priorities like education, energy, and medical research. They would certainly slow our recovery, and cost us hundreds of thousands of jobs. That’s why Democrats, Republicans, business leaders, and economists have already said that these cuts, known here in Washington as “the sequester,” are a really bad idea.

     Now, some in this Congress have proposed preventing only the defense cuts by making even bigger cuts to things like education and job training; Medicare and Social Security benefits.

     That idea is even worse. Yes, the biggest driver of our long-term debt is the rising cost of health care for an aging population. And those of us who care deeply about programs like Medicare must embrace the need for modest reforms – otherwise, our retirement programs will crowd out the investments we need for our children, and jeopardize the promise of a secure retirement for future generations.

     But we can’t ask senior citizens and working families to shoulder the entire burden of deficit reduction while asking nothing more from the wealthiest and most powerful. We won’t grow the middle class simply by shifting the cost of health care or college onto families that are already struggling, or by forcing communities to lay off more teachers, cops, and firefighters. Most Americans – Democrats, Republicans, and Independents – understand that we can’t just cut our way to prosperity. They know that broad-based economic growth requires a balanced approach to deficit reduction, with spending cuts and revenue, and with everybody doing their fair share. And that’s the approach I offer tonight.

     On Medicare, I’m prepared to enact reforms that will achieve the same amount of health care savings by the beginning of the next decade as the reforms proposed by the bipartisan Simpson-Bowles commission. Already, the Affordable Care Act is helping to slow the growth of health care costs. The reforms I’m proposing go even further. We’ll reduce taxpayer subsidies to prescription drug companies and ask more from the wealthiest seniors. We’ll bring down costs by changing the way our government pays for Medicare, because our medical bills shouldn’t be based on the number of tests ordered or days spent in the hospital – they should be based on the quality of care that our seniors receive. And I am open to additional reforms from both parties, so long as they don’t violate the guarantee of a secure retirement. Our government shouldn’t make promises we cannot keep – but we must keep the promises we’ve already made.

     To hit the rest of our deficit reduction target, we should do what leaders in both parties have already suggested, and save hundreds of billions of dollars by getting rid of tax loopholes and deductions for the well-off and well-connected. After all, why would we choose to make deeper cuts to education and Medicare just to protect special interest tax breaks? How is that fair? How does that promote growth?

     Now is our best chance for bipartisan, comprehensive tax reform that encourages job creation and helps bring down the deficit. The American people deserve a tax code that helps small businesses spend less time filling out complicated forms, and more time expanding and hiring; a tax code that ensures billionaires with high-powered accountants can’t pay a lower rate than their hard-working secretaries; a tax code that lowers incentives to move jobs overseas, and lowers tax rates for businesses and manufacturers that create jobs right here in America. That’s what tax reform can deliver. That’s what we can do together.

     I realize that tax reform and entitlement reform won’t be easy. The politics will be hard for both sides. None of us will get 100 percent of what we want. But the alternative will cost us jobs, hurt our economy, and visit hardship on millions of hardworking Americans. So let’s set party interests aside, and work to pass a budget that replaces reckless cuts with smart savings and wise investments in our future. And let’s do it without the brinksmanship that stresses consumers and scares off investors. The greatest nation on Earth cannot keep conducting its business by drifting from one manufactured crisis to the next. Let’s agree, right here, right now, to keep the people’s government open, pay our bills on time, and always uphold the full faith and credit of the United States of America. The American people have worked too hard, for too long, rebuilding from one crisis to see their elected officials cause another.

     Now, most of us agree that a plan to reduce the deficit must be part of our agenda. But let’s be clear: deficit reduction alone is not an economic plan. A growing economy that creates good, middle-class jobs – that must be the North Star that guides our efforts. Every day, we should ask ourselves three questions as a nation: How do we attract more jobs to our shores? How do we equip our people with the skills needed to do those jobs? And how do we make sure that hard work leads to a decent living?

     A year and a half ago, I put forward an American Jobs Act that independent economists said would create more than one million new jobs. I thank the last Congress for passing some of that agenda, and I urge this Congress to pass the rest. Tonight, I’ll lay out additional proposals that are fully paid for and fully consistent with the budget framework both parties agreed to just 18 months ago. Let me repeat – nothing I’m proposing tonight should increase our deficit by a single dime. It’s not a bigger government we need, but a smarter government that sets priorities and invests in broad-based growth.

     Our first priority is making America a magnet for new jobs and manufacturing.

     After shedding jobs for more than 10 years, our manufacturers have added about 500,000 jobs over the past three. Caterpillar is bringing jobs back from Japan. Ford is bringing jobs back from Mexico. After locating plants in other countries like China, Intel is opening its most advanced plant right here at home. And this year, Apple will start making Macs in America again.

     There are things we can do, right now, to accelerate this trend. Last year, we created our first manufacturing innovation institute in Youngstown, Ohio. A once-shuttered warehouse is now a state-of-the art lab where new workers are mastering the 3D printing that has the potential to revolutionize the way we make almost everything. There’s no reason this can’t happen in other towns. So tonight, I’m announcing the launch of three more of these manufacturing hubs, where businesses will partner with the Departments of Defense and Energy to turn regions left behind by globalization into global centers of high-tech jobs. And I ask this Congress to help create a network of fifteen of these hubs and guarantee that the next revolution in manufacturing is Made in America.

     If we want to make the best products, we also have to invest in the best ideas. Every dollar we invested to map the human genome returned $140 to our economy. Today, our scientists are mapping the human brain to unlock the answers to Alzheimer’s; developing drugs to regenerate damaged organs; devising new material to make batteries ten times more powerful. Now is not the time to gut these job-creating investments in science and innovation. Now is the time to reach a level of research and development not seen since the height of the Space Race. And today, no area holds more promise than our investments in American energy.

     After years of talking about it, we are finally poised to control our own energy future. We produce more oil at home than we have in 15 years. We have doubled the distance our cars will go on a gallon of gas, and the amount of renewable energy we generate from sources like wind and solar – with tens of thousands of good, American jobs to show for it. We produce more natural gas than ever before – and nearly everyone’s energy bill is lower because of it. And over the last four years, our emissions of the dangerous carbon pollution that threatens our planet have actually fallen.

     But for the sake of our children and our future, we must do more to combat climate change. Yes, it’s true that no single event makes a trend. But the fact is, the 12 hottest years on record have all come in the last 15. Heat waves, droughts, wildfires, and floods – all are now more frequent and intense. We can choose to believe that Superstorm Sandy, and the most severe drought in decades, and the worst wildfires some states have ever seen were all just a freak coincidence. Or we can choose to believe in the overwhelming judgment of science – and act before it’s too late.

     The good news is, we can make meaningful progress on this issue while driving strong economic growth. I urge this Congress to pursue a bipartisan, market-based solution to climate change, like the one John McCain and Joe Lieberman worked on together a few years ago. But if Congress won’t act soon to protect future generations, I will. I will direct my Cabinet to come up with executive actions we can take, now and in the future, to reduce pollution, prepare our communities for the consequences of climate change, and speed the transition to more sustainable sources of energy.

     Four years ago, other countries dominated the clean energy market and the jobs that came with it. We’ve begun to change that. Last year, wind energy added nearly half of all new power capacity in America. So let’s generate even more. Solar energy gets cheaper by the year – so let’s drive costs down even further. As long as countries like China keep going all-in on clean energy, so must we.

     In the meantime, the natural gas boom has led to cleaner power and greater energy independence. That’s why my Administration will keep cutting red tape and speeding up new oil and gas permits. But I also want to work with this Congress to encourage the research and technology that helps natural gas burn even cleaner and protects our air and water.

     Indeed, much of our new-found energy is drawn from lands and waters that we, the public, own together. So tonight, I propose we use some of our oil and gas revenues to fund an Energy Security Trust that will drive new research and technology to shift our cars and trucks off oil for good. If a non-partisan coalition of CEOs and retired generals and admirals can get behind this idea, then so can we. Let’s take their advice and free our families and businesses from the painful spikes in gas prices we’ve put up with for far too long. I’m also issuing a new goal for America: let’s cut in half the energy wasted by our homes and businesses over the next twenty years. The states with the best ideas to create jobs and lower energy bills by constructing more efficient buildings will receive federal support to help make it happen.

     America’s energy sector is just one part of an aging infrastructure badly in need of repair. Ask any CEO where they’d rather locate and hire: a country with deteriorating roads and bridges, or one with high-speed rail and internet; high-tech schools and self-healing power grids. The CEO of Siemens America – a company that brought hundreds of new jobs to North Carolina – has said that if we upgrade our infrastructure, they’ll bring even more jobs. And I know that you want these job-creating projects in your districts. I’ve seen you all at the ribbon-cuttings.

     Tonight, I propose a “Fix-It-First” program to put people to work as soon as possible on our most urgent repairs, like the nearly 70,000 structurally deficient bridges across the country. And to make sure taxpayers don’t shoulder the whole burden, I’m also proposing a Partnership to Rebuild America that attracts private capital to upgrade what our businesses need most: modern ports to move our goods; modern pipelines to withstand a storm; modern schools worthy of our children. Let’s prove that there is no better place to do business than the United States of America. And let’s start right away.

     Part of our rebuilding effort must also involve our housing sector. Today, our housing market is finally healing from the collapse of 2007. Home prices are rising at the fastest pace in six years, home purchases are up nearly 50 percent, and construction is expanding again.

     But even with mortgage rates near a 50-year low, too many families with solid credit who want to buy a home are being rejected. Too many families who have never missed a payment and want to refinance are being told no. That’s holding our entire economy back, and we need to fix it. Right now, there’s a bill in this Congress that would give every responsible homeowner in America the chance to save $3,000 a year by refinancing at today’s rates. Democrats and Republicans have supported it before. What are we waiting for? Take a vote, and send me that bill. Right now, overlapping regulations keep responsible young families from buying their first home. What’s holding us back? Let’s streamline the process, and help our economy grow.

     These initiatives in manufacturing, energy, infrastructure, and housing will help entrepreneurs and small business owners expand and create new jobs. But none of it will matter unless we also equip our citizens with the skills and training to fill those jobs. And that has to start at the earliest possible age.

     Study after study shows that the sooner a child begins learning, the better he or she does down the road. But today, fewer than 3 in 10 four year-olds are enrolled in a high-quality preschool program. Most middle-class parents can’t afford a few hundred bucks a week for private preschool. And for poor kids who need help the most, this lack of access to preschool education can shadow them for the rest of their lives.

     Tonight, I propose working with states to make high-quality preschool available to every child in America. Every dollar we invest in high-quality early education can save more than seven dollars later on – by boosting graduation rates, reducing teen pregnancy, even reducing violent crime. In states that make it a priority to educate our youngest children, like Georgia or Oklahoma, studies show students grow up more likely to read and do math at grade level, graduate high school, hold a job, and form more stable families of their own. So let’s do what works, and make sure none of our children start the race of life already behind. Let’s give our kids that chance.

     Let’s also make sure that a high school diploma puts our kids on a path to a good job. Right now, countries like Germany focus on graduating their high school students with the equivalent of a technical degree from one of our community colleges, so that they’re ready for a job. At schools like P-Tech in Brooklyn, a collaboration between New York Public Schools, the City University of New York, and IBM, students will graduate with a high school diploma and an associate degree in computers or engineering.

     We need to give every American student opportunities like this. Four years ago, we started Race to the Top – a competition that convinced almost every state to develop smarter curricula and higher standards, for about 1 percent of what we spend on education each year. Tonight, I’m announcing a new challenge to redesign America’s high schools so they better equip graduates for the demands of a high-tech economy. We’ll reward schools that develop new partnerships with colleges and employers, and create classes that focus on science, technology, engineering, and math – the skills today’s employers are looking for to fill jobs right now and in the future.

     Now, even with better high schools, most young people will need some higher education. It’s a simple fact: the more education you have, the more likely you are to have a job and work your way into the middle class. But today, skyrocketing costs price way too many young people out of a higher education, or saddle them with unsustainable debt.

     Through tax credits, grants, and better loans, we have made college more affordable for millions of students and families over the last few years. But taxpayers cannot continue to subsidize the soaring cost of higher education. Colleges must do their part to keep costs down, and it’s our job to make sure they do. Tonight, I ask Congress to change the Higher Education Act, so that affordability and value are included in determining which colleges receive certain types of federal aid. And tomorrow, my Administration will release a new “College Scorecard” that parents and students can use to compare schools based on a simple criteria: where you can get the most bang for your educational buck.

     To grow our middle class, our citizens must have access to the education and training that today’s jobs require. But we also have to make sure that America remains a place where everyone who’s willing to work hard has the chance to get ahead.

     Our economy is stronger when we harness the talents and ingenuity of striving, hopeful immigrants. And right now, leaders from the business, labor, law enforcement, and faith communities all agree that the time has come to pass comprehensive immigration reform.

     Real reform means strong border security, and we can build on the progress my Administration has already made – putting more boots on the southern border than at any time in our history, and reducing illegal crossings to their lowest levels in 40 years.

     Real reform means establishing a responsible pathway to earned citizenship – a path that includes passing a background check, paying taxes and a meaningful penalty, learning English, and going to the back of the line behind the folks trying to come here legally.

     And real reform means fixing the legal immigration system to cut waiting periods, reduce bureaucracy, and attract the highly-skilled entrepreneurs and engineers that will help create jobs and grow our economy.

     In other words, we know what needs to be done. As we speak, bipartisan groups in both chambers are working diligently to draft a bill, and I applaud their efforts. Now let’s get this done. Send me a comprehensive immigration reform bill in the next few months, and I will sign it right away.

     But we can’t stop there. We know our economy is stronger when our wives, mothers, and daughters can live their lives free from discrimination in the workplace, and free from the fear of domestic violence. Today, the Senate passed the Violence Against Women Act that Joe Biden originally wrote almost 20 years ago. I urge the House to do the same. And I ask this Congress to declare that women should earn a living equal to their efforts, and finally pass the Paycheck Fairness Act this year.

     We know our economy is stronger when we reward an honest day’s work with honest wages. But today, a full-time worker making the minimum wage earns $14,500 a year. Even with the tax relief we’ve put in place, a family with two kids that earns the minimum wage still lives below the poverty line. That’s wrong. That’s why, since the last time this Congress raised the minimum wage, nineteen states have chosen to bump theirs even higher.

      Tonight, let’s declare that in the wealthiest nation on Earth, no one who works full-time should have to live in poverty, and raise the federal minimum wage to $9.00 an hour. This single step would raise the incomes of millions of working families. It could mean the difference between groceries or the food bank; rent or eviction; scraping by or finally getting ahead. For businesses across the country, it would mean customers with more money in their pockets. In fact, working folks shouldn’t have to wait year after year for the minimum wage to go up while CEO pay has never been higher. So here’s an idea that Governor Romney and I actually agreed on last year: let’s tie the minimum wage to the cost of living, so that it finally becomes a wage you can live on.

     Tonight, let’s also recognize that there are communities in this country where no matter how hard you work, it’s virtually impossible to get ahead. Factory towns decimated from years of plants packing up. Inescapable pockets of poverty, urban and rural, where young adults are still fighting for their first job. America is not a place where chance of birth or circumstance should decide our destiny. And that is why we need to build new ladders of opportunity into the middle class for all who are willing to climb them.

     Let’s offer incentives to companies that hire Americans who’ve got what it takes to fill that job opening, but have been out of work so long that no one will give them a chance. Let’s put people back to work rebuilding vacant homes in run-down neighborhoods. And this year, my Administration will begin to partner with 20 of the hardest-hit towns in America to get these communities back on their feet. We’ll work with local leaders to target resources at public safety, education, and housing. We’ll give new tax credits to businesses that hire and invest. And we’ll work to strengthen families by removing the financial deterrents to marriage for low-income couples, and doing more to encourage fatherhood – because what makes you a man isn’t the ability to conceive a child; it’s having the courage to raise one.

     Stronger families. Stronger communities. A stronger America. It is this kind of prosperity – broad, shared, and built on a thriving middle class – that has always been the source of our progress at home. It is also the foundation of our power and influence throughout the world.

     Tonight, we stand united in saluting the troops and civilians who sacrifice every day to protect us. Because of them, we can say with confidence that America will complete its mission in Afghanistan, and achieve our objective of defeating the core of al Qaeda. Already, we have brought home 33,000 of our brave servicemen and women. This spring, our forces will move into a support role, while Afghan security forces take the lead. Tonight, I can announce that over the next year, another 34,000 American troops will come home from Afghanistan. This drawdown will continue. And by the end of next year, our war in Afghanistan will be over.

     Beyond 2014, America’s commitment to a unified and sovereign Afghanistan will endure, but the nature of our commitment will change. We are negotiating an agreement with the Afghan government that focuses on two missions: training and equipping Afghan forces so that the country does not again slip into chaos, and counter-terrorism efforts that allow us to pursue the remnants of al Qaeda and their affiliates.

     Today, the organization that attacked us on 9/11 is a shadow of its former self. Different al Qaeda affiliates and extremist groups have emerged – from the Arabian Peninsula to Africa. The threat these groups pose is evolving. But to meet this threat, we don’t need to send tens of thousands of our sons and daughters abroad, or occupy other nations. Instead, we will need to help countries like Yemen, Libya, and Somalia provide for their own security, and help allies who take the fight to terrorists, as we have in Mali. And, where necessary, through a range of capabilities, we will continue to take direct action against those terrorists who pose the gravest threat to Americans.

     As we do, we must enlist our values in the fight. That is why my Administration has worked tirelessly to forge a durable legal and policy framework to guide our counterterrorism operations. Throughout, we have kept Congress fully informed of our efforts. I recognize that in our democracy, no one should just take my word that we’re doing things the right way. So, in the months ahead, I will continue to engage with Congress to ensure not only that our targeting, detention, and prosecution of terrorists remains consistent with our laws and system of checks and balances, but that our efforts are even more transparent to the American people and to the world.

     Of course, our challenges don’t end with al Qaeda. America will continue to lead the effort to prevent the spread of the world’s most dangerous weapons. The regime in North Korea must know that they will only achieve security and prosperity by meeting their international obligations. Provocations of the sort we saw last night will only isolate them further, as we stand by our allies, strengthen our own missile defense, and lead the world in taking firm action in response to these threats.

     Likewise, the leaders of Iran must recognize that now is the time for a diplomatic solution, because a coalition stands united in demanding that they meet their obligations, and we will do what is necessary to prevent them from getting a nuclear weapon. At the same time, we will engage Russia to seek further reductions in our nuclear arsenals, and continue leading the global effort to secure nuclear materials that could fall into the wrong hands – because our ability to influence others depends on our willingness to lead.

     America must also face the rapidly growing threat from cyber-attacks. We know hackers steal people’s identities and infiltrate private e-mail. We know foreign countries and companies swipe our corporate secrets. Now our enemies are also seeking the ability to sabotage our power grid, our financial institutions, and our air traffic control systems. We cannot look back years from now and wonder why we did nothing in the face of real threats to our security and our economy.

     That’s why, earlier today, I signed a new executive order that will strengthen our cyber defenses by increasing information sharing, and developing standards to protect our national security, our jobs, and our privacy. Now, Congress must act as well, by passing legislation to give our government a greater capacity to secure our networks and deter attacks.

     Even as we protect our people, we should remember that today’s world presents not only dangers, but opportunities. To boost American exports, support American jobs, and level the playing field in the growing markets of Asia, we intend to complete negotiations on a Trans-Pacific Partnership. And tonight, I am announcing that we will launch talks on a comprehensive Transatlantic Trade and Investment Partnership with the European Union – because trade that is free and fair across the Atlantic supports millions of good-paying American jobs.

     We also know that progress in the most impoverished parts of our world enriches us all. In many places, people live on little more than a dollar a day. So the United States will join with our allies to eradicate such extreme poverty in the next two decades: by connecting more people to the global economy and empowering women; by giving our young and brightest minds new opportunities to serve and helping communities to feed, power, and educate themselves; by saving the world’s children from preventable deaths; and by realizing the promise of an AIDS-free generation.

     Above all, America must remain a beacon to all who seek freedom during this period of historic change. I saw the power of hope last year in Rangoon – when Aung San Suu Kyi welcomed an American President into the home where she had been imprisoned for years; when thousands of Burmese lined the streets, waving American flags, including a man who said, “There is justice and law in the United States. I want our country to be like that.”

     In defense of freedom, we will remain the anchor of strong alliances from the Americas to Africa; from Europe to Asia. In the Middle East, we will stand with citizens as they demand their universal rights, and support stable transitions to democracy. The process will be messy, and we cannot presume to dictate the course of change in countries like Egypt; but we can – and will – insist on respect for the fundamental rights of all people. We will keep the pressure on a Syrian regime that has murdered its own people, and support opposition leaders that respect the rights of every Syrian. And we will stand steadfast with Israel in pursuit of security and a lasting peace. These are the messages I will deliver when I travel to the Middle East next month.

     All this work depends on the courage and sacrifice of those who serve in dangerous places at great personal risk – our diplomats, our intelligence officers, and the men and women of the United States Armed Forces. As long as I’m Commander-in-Chief, we will do whatever we must to protect those who serve their country abroad, and we will maintain the best military in the world. We will invest in new capabilities, even as we reduce waste and wartime spending. We will ensure equal treatment for all service members, and equal benefits for their families – gay and straight. We will draw upon the courage and skills of our sisters and daughters, because women have proven under fire that they are ready for combat. We will keep faith with our veterans – investing in world-class care, including mental health care, for our wounded warriors; supporting our military families; and giving our veterans the benefits, education, and job opportunities they have earned. And I want to thank my wife Michelle and Dr. Jill Biden for their continued dedication to serving our military families as well as they serve us.

     But defending our freedom is not the job of our military alone. We must all do our part to make sure our God-given rights are protected here at home. That includes our most fundamental right as citizens: the right to vote. When any Americans – no matter where they live or what their party – are denied that right simply because they can’t wait for five, six, seven hours just to cast their ballot, we are betraying our ideals. That’s why, tonight, I’m announcing a non-partisan commission to improve the voting experience in America. And I’m asking two long-time experts in the field, who’ve recently served as the top attorneys for my campaign and for Governor Romney’s campaign, to lead it. We can fix this, and we will. The American people demand it. And so does our democracy.

     Of course, what I’ve said tonight matters little if we don’t come together to protect our most precious resource – our children.

     It has been two months since Newtown. I know this is not the first time this country has debated how to reduce gun violence. But this time is different. Overwhelming majorities of Americans – Americans who believe in the 2nd Amendment – have come together around commonsense reform – like background checks that will make it harder for criminals to get their hands on a gun. Senators of both parties are working together on tough new laws to prevent anyone from buying guns for resale to criminals. Police chiefs are asking our help to get weapons of war and massive ammunition magazines off our streets, because they are tired of being outgunned.

     Each of these proposals deserves a vote in Congress. If you want to vote no, that’s your choice. But these proposals deserve a vote. Because in the two months since Newtown, more than a thousand birthdays, graduations, and anniversaries have been stolen from our lives by a bullet from a gun.

     One of those we lost was a young girl named Hadiya Pendleton. She was 15 years old. She loved Fig Newtons and lip gloss. She was a majorette. She was so good to her friends, they all thought they were her best friend. Just three weeks ago, she was here, in Washington, with her classmates, performing for her country at my inauguration. And a week later, she was shot and killed in a Chicago park after school, just a mile away from my house.

     Hadiya’s parents, Nate and Cleo, are in this chamber tonight, along with more than two dozen Americans whose lives have been torn apart by gun violence. They deserve a vote.

     Gabby Giffords deserves a vote.

     The families of Newtown deserve a vote.

     The families of Aurora deserve a vote.

     The families of Oak Creek, and Tucson, and Blacksburg, and the countless other communities ripped open by gun violence – they deserve a simple vote.

     Our actions will not prevent every senseless act of violence in this country. Indeed, no laws, no initiatives, no administrative acts will perfectly solve all the challenges I’ve outlined tonight. But we were never sent here to be perfect. We were sent here to make what difference we can, to secure this nation, expand opportunity, and uphold our ideals through the hard, often frustrating, but absolutely necessary work of self-government.      We were sent here to look out for our fellow Americans the same way they look out for one another, every single day, usually without fanfare, all across this country. We should follow their example.

     We should follow the example of a New York City nurse named Menchu Sanchez. When Hurricane Sandy plunged her hospital into darkness, her thoughts were not with how her own home was faring – they were with the twenty precious newborns in her care and the rescue plan she devised that kept them all safe.

     We should follow the example of a North Miami woman named Desiline Victor. When she arrived at her polling place, she was told the wait to vote might be six hours. And as time ticked by, her concern was not with her tired body or aching feet, but whether folks like her would get to have their say. Hour after hour, a throng of people stayed in line in support of her. Because Desiline is 102 years old. And they erupted in cheers when she finally put on a sticker that read “I Voted.”

     We should follow the example of a police officer named Brian Murphy. When a gunman opened fire on a Sikh temple in Wisconsin, and Brian was the first to arrive, he did not consider his own safety. He fought back until help arrived, and ordered his fellow officers to protect the safety of the Americans worshiping inside – even as he lay bleeding from twelve bullet wounds.

     When asked how he did that, Brian said, “That’s just the way we’re made.”

     That’s just the way we’re made.

      We may do different jobs, and wear different uniforms, and hold different views than the person beside us. But as Americans, we all share the same proud title:

     We are citizens. It’s a word that doesn’t just describe our nationality or legal status. It describes the way we’re made. It describes what we believe. It captures the enduring idea that this country only works when we accept certain obligations to one another and to future generations; that our rights are wrapped up in the rights of others; and that well into our third century as a nation, it remains the task of us all, as citizens of these United States, to be the authors of the next great chapter in our American story.

     Thank you, God bless you, and God bless the United States of America.

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Live streaming The State of the Union: Full Transcript Open Thread

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It is our generation’s task, then, to reignite the true engine of America’s economic growth – a rising, thriving middle class.

It is our unfinished task to restore the basic bargain that built this country – the idea that if you work hard and meet your responsibilities, you can get ahead, no matter where you come from, what you look like, or who you love.

It is our unfinished task to make sure that this government works on behalf of the many, and not just the few; that it encourages free enterprise, rewards individual initiative, and opens the doors of opportunity to every child across this great nation.

The American people don’t expect government to solve every problem. They don’t expect those of us in this chamber to agree on every issue. But they do expect us to put the nation’s interests before party. They do expect us to forge reasonable compromise where we can. For they know that America moves forward only when we do so together; and that the responsibility of improving this union remains the task of us all.

Our work must begin by making some basic decisions about our budget – decisions that will have a huge impact on the strength of our recovery.

Over the last few years, both parties have worked together to reduce the deficit by more than $2.5 trillion – mostly through spending cuts, but also by raising tax rates on the wealthiest 1 percent of Americans. As a result, we are more than halfway towards the goal of $4 trillion in deficit reduction that economists say we need to stabilize our finances. Now we need to finish the job. And the question is, how?

In 2011, Congress passed a law saying that if both parties couldn’t agree on a plan to reach our deficit goal, about a trillion dollars’ worth of budget cuts would automatically go into effect this year. These sudden, harsh, arbitrary cuts would jeopardize our military readiness. They’d devastate priorities like education, energy, and medical research. They would certainly slow our recovery, and cost us hundreds of thousands of jobs. That’s why Democrats, Republicans, business leaders, and economists have already said that these cuts, known here in Washington as “the sequester,” are a really bad idea.

Now, some in this Congress have proposed preventing only the defense cuts by making even bigger cuts to things like education and job training; Medicare and Social Security benefits.

That idea is even worse. Yes, the biggest driver of our long-term debt is the rising cost of health care for an aging population. And those of us who care deeply about programs like Medicare must embrace the need for modest reforms – otherwise, our retirement programs will crowd out the investments we need for our children, and jeopardize the promise of a secure retirement for future generations.

But we can’t ask senior citizens and working families to shoulder the entire burden of deficit reduction while asking nothing more from the wealthiest and most powerful. We won’t grow the middle class simply by shifting the cost of health care or college onto families that are already struggling, or by forcing communities to lay off more teachers, cops, and firefighters. Most Americans – Democrats, Republicans, and Independents – understand that we can’t just cut our way to prosperity. They know that broad-based economic growth requires a balanced approach to deficit reduction, with spending cuts and revenue, and with everybody doing their fair share. And that’s the approach I offer tonight.

On Medicare, I’m prepared to enact reforms that will achieve the same amount of health care savings by the beginning of the next decade as the reforms proposed by the bipartisan Simpson-Bowles commission. Already, the Affordable Care Act is helping to slow the growth of health care costs. The reforms I’m proposing go even further. We’ll reduce taxpayer subsidies to prescription drug companies and ask more from the wealthiest seniors. We’ll bring down costs by changing the way our government pays for Medicare, because our medical bills shouldn’t be based on the number of tests ordered or days spent in the hospital – they should be based on the quality of care that our seniors receive. And I am open to additional reforms from both parties, so long as they don’t violate the guarantee of a secure retirement. Our government shouldn’t make promises we cannot keep – but we must keep the promises we’ve already made.

To hit the rest of our deficit reduction target, we should do what leaders in both parties have already suggested, and save hundreds of billions of dollars by getting rid of tax loopholes and deductions for the well-off and well-connected. After all, why would we choose to make deeper cuts to education and Medicare just to protect special interest tax breaks? How is that fair? How does that promote growth?

Now is our best chance for bipartisan, comprehensive tax reform that encourages job creation and helps bring down the deficit. The American people deserve a tax code that helps small businesses spend less time filling out complicated forms, and more time expanding and hiring; a tax code that ensures billionaires with high-powered accountants can’t pay a lower rate than their hard-working secretaries; a tax code that lowers incentives to move jobs overseas, and lowers tax rates for businesses and manufacturers that create jobs right here in America. That’s what tax reform can deliver. That’s what we can do together.

I realize that tax reform and entitlement reform won’t be easy. The politics will be hard for both sides. None of us will get 100 percent of what we want. But the alternative will cost us jobs, hurt our economy, and visit hardship on millions of hardworking Americans. So let’s set party interests aside, and work to pass a budget that replaces reckless cuts with smart savings and wise investments in our future. And let’s do it without the brinksmanship that stresses consumers and scares off investors. The greatest nation on Earth cannot keep conducting its business by drifting from one manufactured crisis to the next. Let’s agree, right here, right now, to keep the people’s government open, pay our bills on time, and always uphold the full faith and credit of the United States of America. The American people have worked too hard, for too long, rebuilding from one crisis to see their elected officials cause another.

Now, most of us agree that a plan to reduce the deficit must be part of our agenda. But let’s be clear: deficit reduction alone is not an economic plan. A growing economy that creates good, middle-class jobs – that must be the North Star that guides our efforts. Every day, we should ask ourselves three questions as a nation: How do we attract more jobs to our shores? How do we equip our people with the skills needed to do those jobs? And how do we make sure that hard work leads to a decent living?

A year and a half ago, I put forward an American Jobs Act that independent economists said would create more than one million new jobs. I thank the last Congress for passing some of that agenda, and I urge this Congress to pass the rest. Tonight, I’ll lay out additional proposals that are fully paid for and fully consistent with the budget framework both parties agreed to just 18 months ago. Let me repeat – nothing I’m proposing tonight should increase our deficit by a single dime. It’s not a bigger government we need, but a smarter government that sets priorities and invests in broad-based growth.
Our first priority is making America a magnet for new jobs and manufacturing.
After shedding jobs for more than 10 years, our manufacturers have added about 500,000 jobs over the past three. Caterpillar is bringing jobs back from Japan. Ford is bringing jobs back from Mexico. After locating plants in other countries like China, Intel is opening its most advanced plant right here at home. And this year, Apple will start making Macs in America again.

There are things we can do, right now, to accelerate this trend. Last year, we created our first manufacturing innovation institute in Youngstown, Ohio. A once-shuttered warehouse is now a state-of-the art lab where new workers are mastering the 3D printing that has the potential to revolutionize the way we make almost everything. There’s no reason this can’t happen in other towns. So tonight, I’m announcing the launch of three more of these manufacturing hubs, where businesses will partner with the Departments of Defense and Energy to turn regions left behind by globalization into global centers of high-tech jobs. And I ask this Congress to help create a network of fifteen of these hubs and guarantee that the next revolution in manufacturing is Made in America.

If we want to make the best products, we also have to invest in the best ideas. Every dollar we invested to map the human genome returned $140 to our economy. Today, our scientists are mapping the human brain to unlock the answers to Alzheimer’s; developing drugs to regenerate damaged organs; devising new material to make batteries ten times more powerful. Now is not the time to gut these job-creating investments in science and innovation. Now is the time to reach a level of research and development not seen since the height of the Space Race. And today, no area holds more promise than our investments in American energy.

After years of talking about it, we are finally poised to control our own energy future. We produce more oil at home than we have in 15 years. We have doubled the distance our cars will go on a gallon of gas, and the amount of renewable energy we generate from sources like wind and solar – with tens of thousands of good, American jobs to show for it. We produce more natural gas than ever before – and nearly everyone’s energy bill is lower because of it. And over the last four years, our emissions of the dangerous carbon pollution that threatens our planet have actually fallen.

But for the sake of our children and our future, we must do more to combat climate change. Yes, it’s true that no single event makes a trend. But the fact is, the 12 hottest years on record have all come in the last 15. Heat waves, droughts, wildfires, and floods – all are now more frequent and intense. We can choose to believe that Superstorm Sandy, and the most severe drought in decades, and the worst wildfires some states have ever seen were all just a freak coincidence. Or we can choose to believe in the overwhelming judgment of science – and act before it’s too late.

The good news is, we can make meaningful progress on this issue while driving strong economic growth. I urge this Congress to pursue a bipartisan, market-based solution to climate change, like the one John McCain and Joe Lieberman worked on together a few years ago. But if Congress won’t act soon to protect future generations, I will. I will direct my Cabinet to come up with executive actions we can take, now and in the future, to reduce pollution, prepare our communities for the consequences of climate change, and speed the transition to more sustainable sources of energy.

Four years ago, other countries dominated the clean energy market and the jobs that came with it. We’ve begun to change that. Last year, wind energy added nearly half of all new power capacity in America. So let’s generate even more. Solar energy gets cheaper by the year – so let’s drive costs down even further. As long as countries like China keep going all-in on clean energy, so must we.

In the meantime, the natural gas boom has led to cleaner power and greater energy independence. That’s why my Administration will keep cutting red tape and speeding up new oil and gas permits. But I also want to work with this Congress to encourage the research and technology that helps natural gas burn even cleaner and protects our air and water.

Indeed, much of our new-found energy is drawn from lands and waters that we, the public, own together. So tonight, I propose we use some of our oil and gas revenues to fund an Energy Security Trust that will drive new research and technology to shift our cars and trucks off oil for good. If a non-partisan coalition of CEOs and retired generals and admirals can get behind this idea, then so can we. Let’s take their advice and free our families and businesses from the painful spikes in gas prices we’ve put up with for far too long. I’m also issuing a new goal for America: let’s cut in half the energy wasted by our homes and businesses over the next twenty years. The states with the best ideas to create jobs and lower energy bills by constructing more efficient buildings will receive federal support to help make it happen.

America’s energy sector is just one part of an aging infrastructure badly in need of repair. Ask any CEO where they’d rather locate and hire: a country with deteriorating roads and bridges, or one with high-speed rail and internet; high-tech schools and self-healing power grids. The CEO of Siemens America – a company that brought hundreds of new jobs to North Carolina – has said that if we upgrade our infrastructure, they’ll bring even more jobs. And I know that you want these job-creating projects in your districts. I’ve seen you all at the ribbon-cuttings.

Tonight, I propose a “Fix-It-First” program to put people to work as soon as possible on our most urgent repairs, like the nearly 70,000 structurally deficient bridges across the country. And to make sure taxpayers don’t shoulder the whole burden, I’m also proposing a Partnership to Rebuild America that attracts private capital to upgrade what our businesses need most: modern ports to move our goods; modern pipelines to withstand a storm; modern schools worthy of our children. Let’s prove that there is no better place to do business than the United States of America. And let’s start right away.

Part of our rebuilding effort must also involve our housing sector. Today, our housing market is finally healing from the collapse of 2007. Home prices are rising at the fastest pace in six years, home purchases are up nearly 50 percent, and construction is expanding again.

But even with mortgage rates near a 50-year low, too many families with solid credit who want to buy a home are being rejected. Too many families who have never missed a payment and want to refinance are being told no. That’s holding our entire economy back, and we need to fix it. Right now, there’s a bill in this Congress that would give every responsible homeowner in America the chance to save $3,000 a year by refinancing at today’s rates. Democrats and Republicans have supported it before. What are we waiting for? Take a vote, and send me that bill. Right now, overlapping regulations keep responsible young families from buying their first home. What’s holding us back? Let’s streamline the process, and help our economy grow.

These initiatives in manufacturing, energy, infrastructure, and housing will help entrepreneurs and small business owners expand and create new jobs. But none of it will matter unless we also equip our citizens with the skills and training to fill those jobs. And that has to start at the earliest possible age.

Study after study shows that the sooner a child begins learning, the better he or she does down the road. But today, fewer than 3 in 10 four year-olds are enrolled in a high-quality preschool program. Most middle-class parents can’t afford a few hundred bucks a week for private preschool. And for poor kids who need help the most, this lack of access to preschool education can shadow them for the rest of their lives.

Tonight, I propose working with states to make high-quality preschool available to every child in America. Every dollar we invest in high-quality early education can save more than seven dollars later on – by boosting graduation rates, reducing teen pregnancy, even reducing violent crime. In states that make it a priority to educate our youngest children, like Georgia or Oklahoma, studies show students grow up more likely to read and do math at grade level, graduate high school, hold a job, and form more stable families of their own. So let’s do what works, and make sure none of our children start the race of life already behind. Let’s give our kids that chance.

Let’s also make sure that a high school diploma puts our kids on a path to a good job. Right now, countries like Germany focus on graduating their high school students with the equivalent of a technical degree from one of our community colleges, so that they’re ready for a job. At schools like P-Tech in Brooklyn, a collaboration between New York Public Schools, the City University of New York, and IBM, students will graduate with a high school diploma and an associate degree in computers or engineering.

We need to give every American student opportunities like this. Four years ago, we started Race to the Top – a competition that convinced almost every state to develop smarter curricula and higher standards, for about 1 percent of what we spend on education each year. Tonight, I’m announcing a new challenge to redesign America’s high schools so they better equip graduates for the demands of a high-tech economy. We’ll reward schools that develop new partnerships with colleges and employers, and create classes that focus on science, technology, engineering, and math – the skills today’s employers are looking for to fill jobs right now and in the future. Now, even with better high schools, most young people will need some higher education. It’s a simple fact: the more education you have, the more likely you are to have a job and work your way into the middle class. But today, skyrocketing costs price way too many young people out of a higher education, or saddle them with unsustainable debt.

Through tax credits, grants, and better loans, we have made college more affordable for millions of students and families over the last few years. But taxpayers cannot continue to subsidize the soaring cost of higher education. Colleges must do their part to keep costs down, and it’s our job to make sure they do. Tonight, I ask Congress to change the Higher Education Act, so that affordability and value are included in determining which colleges receive certain types of federal aid. And tomorrow, my Administration will release a new “College Scorecard” that parents and students can use to compare schools based on a simple criteria: where you can get the most bang for your educational buck. To grow our middle class, our citizens must have access to the education and training that today’s jobs require. But we also have to make sure that America remains a place where everyone who’s willing to work hard has the chance to get ahead.

Our economy is stronger when we harness the talents and ingenuity of striving, hopeful immigrants. And right now, leaders from the business, labor, law enforcement, and faith communities all agree that the time has come to pass comprehensive immigration reform.

Real reform means strong border security, and we can build on the progress my Administration has already made – putting more boots on the southern border than at any time in our history, and reducing illegal crossings to their lowest levels in 40 years.

Real reform means establishing a responsible pathway to earned citizenship – a path that includes passing a background check, paying taxes and a meaningful penalty, learning English, and going to the back of the line behind the folks trying to come here legally. And real reform means fixing the legal immigration system to cut waiting periods, reduce bureaucracy, and attract the highly-skilled entrepreneurs and engineers that will help create jobs and grow our economy.

In other words, we know what needs to be done. As we speak, bipartisan groups in both chambers are working diligently to draft a bill, and I applaud their efforts. Now let’s get this done. Send me a comprehensive immigration reform bill in the next few months, and I will sign it right away.

But we can’t stop there. We know our economy is stronger when our wives, mothers, and daughters can live their lives free from discrimination in the workplace, and free from the fear of domestic violence. Today, the Senate passed the Violence Against Women Act that Joe Biden originally wrote almost 20 years ago. I urge the House to do the same. And I ask this Congress to declare that women should earn a living equal to their efforts, and finally pass the Paycheck Fairness Act this year.

We know our economy is stronger when we reward an honest day’s work with honest wages. But today, a full-time worker making the minimum wage earns $14,500 a year. Even with the tax relief we’ve put in place, a family with two kids that earns the minimum wage still lives below the poverty line. That’s wrong. That’s why, since the last time this Congress raised the minimum wage, nineteen states have chosen to bump theirs even higher.

Tonight, let’s declare that in the wealthiest nation on Earth, no one who works full-time should have to live in poverty, and raise the federal minimum wage to $9.00 an hour. This single step would raise the incomes of millions of working families. It could mean the difference between groceries or the food bank; rent or eviction; scraping by or finally getting ahead. For businesses across the country, it would mean customers with more money in their pockets. In fact, working folks shouldn’t have to wait year after year for the minimum wage to go up while CEO pay has never been higher. So here’s an idea that Governor Romney and I actually agreed on last year: let’s tie the minimum wage to the cost of living, so that it finally becomes a wage you can live on.

Tonight, let’s also recognize that there are communities in this country where no matter how hard you work, it’s virtually impossible to get ahead. Factory towns decimated from years of plants packing up. Inescapable pockets of poverty, urban and rural, where young adults are still fighting for their first job. America is not a place where chance of birth or circumstance should decide our destiny. And that is why we need to build new ladders of opportunity into the middle class for all who are willing to climb them.

Let’s offer incentives to companies that hire Americans who’ve got what it takes to fill that job opening, but have been out of work so long that no one will give them a chance. Let’s put people back to work rebuilding vacant homes in run-down neighborhoods. And this year, my Administration will begin to partner with 20 of the hardest-hit towns in America to get these communities back on their feet. We’ll work with local leaders to target resources at public safety, education, and housing. We’ll give new tax credits to businesses that hire and invest. And we’ll work to strengthen families by removing the financial deterrents to marriage for low-income couples, and doing more to encourage fatherhood – because what makes you a man isn’t the ability to conceive a child; it’s having the courage to raise one. Stronger families. Stronger communities. A stronger America. It is this kind of prosperity – broad, shared, and built on a thriving middle class – that has always been the source of our progress at home. It is also the foundation of our power and influence throughout the world.

Tonight, we stand united in saluting the troops and civilians who sacrifice every day to protect us. Because of them, we can say with confidence that America will complete its mission in Afghanistan, and achieve our objective of defeating the core of al Qaeda. Already, we have brought home 33,000 of our brave servicemen and women. This spring, our forces will move into a support role, while Afghan security forces take the lead. Tonight, I can announce that over the next year, another 34,000 American troops will come home from Afghanistan. This drawdown will continue. And by the end of next year, our war in Afghanistan will be over.

Beyond 2014, America’s commitment to a unified and sovereign Afghanistan will endure, but the nature of our commitment will change. We are negotiating an agreement with the Afghan government that focuses on two missions: training and equipping Afghan forces so that the country does not again slip into chaos, and counter-terrorism efforts that allow us to pursue the remnants of al Qaeda and their affiliates.

Today, the organization that attacked us on 9/11 is a shadow of its former self. Different al Qaeda affiliates and extremist groups have emerged – from the Arabian Peninsula to Africa. The threat these groups pose is evolving. But to meet this threat, we don’t need to send tens of thousands of our sons and daughters abroad, or occupy other nations. Instead, we will need to help countries like Yemen, Libya, and Somalia provide for their own security, and help allies who take the fight to terrorists, as we have in Mali. And, where necessary, through a range of capabilities, we will continue to take direct action against those terrorists who pose the gravest threat to Americans.

As we do, we must enlist our values in the fight. That is why my Administration has worked tirelessly to forge a durable legal and policy framework to guide our counterterrorism operations. Throughout, we have kept Congress fully informed of our efforts. I recognize that in our democracy, no one should just take my word that we’re doing things the right way. So, in the months ahead, I will continue to engage with Congress to ensure not only that our targeting, detention, and prosecution of terrorists remains consistent with our laws and system of checks and balances, but that our efforts are even more transparent to the American people and to the world.

Of course, our challenges don’t end with al Qaeda. America will continue to lead the effort to prevent the spread of the world’s most dangerous weapons. The regime in North Korea must know that they will only achieve security and prosperity by meeting their international obligations. Provocations of the sort we saw last night will only isolate them further, as we stand by our allies, strengthen our own missile defense, and lead the world in taking firm action in response to these threats.

Likewise, the leaders of Iran must recognize that now is the time for a diplomatic solution, because a coalition stands united in demanding that they meet their obligations, and we will do what is necessary to prevent them from getting a nuclear weapon. At the same time, we will engage Russia to seek further reductions in our nuclear arsenals, and continue leading the global effort to secure nuclear materials that could fall into the wrong hands – because our ability to influence others depends on our willingness to lead.

America must also face the rapidly growing threat from cyber-attacks. We know hackers steal people’s identities and infiltrate private e-mail. We know foreign countries and companies swipe our corporate secrets. Now our enemies are also seeking the ability to sabotage our power grid, our financial institutions, and our air traffic control systems. We cannot look back years from now and wonder why we did nothing in the face of real threats to our security and our economy.

That’s why, earlier today, I signed a new executive order that will strengthen our cyber defenses by increasing information sharing, and developing standards to protect our national security, our jobs, and our privacy. Now, Congress must act as well, by passing legislation to give our government a greater capacity to secure our networks and deter attacks.

Even as we protect our people, we should remember that today’s world presents not only dangers, but opportunities. To boost American exports, support American jobs, and level the playing field in the growing markets of Asia, we intend to complete negotiations on a Trans-Pacific Partnership. And tonight, I am announcing that we will launch talks on a comprehensive Transatlantic Trade and Investment Partnership with the European Union – because trade that is free and fair across the Atlantic supports millions of good-paying American jobs.

We also know that progress in the most impoverished parts of our world enriches us all. In many places, people live on little more than a dollar a day. So the United States will join with our allies to eradicate such extreme poverty in the next two decades: by connecting more people to the global economy and empowering women; by giving our young and brightest minds new opportunities to serve and helping communities to feed, power, and educate themselves; by saving the world’s children from preventable deaths; and by realizing the promise of an AIDS-free generation.
Above all, America must remain a beacon to all who seek freedom during this period of historic change. I saw the power of hope last year in Rangoon – when Aung San Suu Kyi welcomed an American President into the home where she had been imprisoned for years; when thousands of Burmese lined the streets, waving American flags, including a man who said, “There is justice and law in the United States. I want our country to be like that.”

In defense of freedom, we will remain the anchor of strong alliances from the Americas to Africa; from Europe to Asia. In the Middle East, we will stand with citizens as they demand their universal rights, and support stable transitions to democracy. The process will be messy, and we cannot presume to dictate the course of change in countries like Egypt; but we can – and will – insist on respect for the fundamental rights of all people. We will keep the pressure on a Syrian regime that has murdered its own people, and support opposition leaders that respect the rights of every Syrian. And we will stand steadfast with Israel in pursuit of security and a lasting peace. These are the messages I will deliver when I travel to the Middle East next month.

All this work depends on the courage and sacrifice of those who serve in dangerous places at great personal risk – our diplomats, our intelligence officers, and the men and women of the United States Armed Forces. As long as I’m Commander-in-Chief, we will do whatever we must to protect those who serve their country abroad, and we will maintain the best military in the world. We will invest in new capabilities, even as we reduce waste and wartime spending. We will ensure equal treatment for all service members, and equal benefits for their families – gay and straight. We will draw upon the courage and skills of our sisters and daughters, because women have proven under fire that they are ready for combat. We will keep faith with our veterans – investing in world-class care, including mental health care, for our wounded warriors; supporting our military families; and giving our veterans the benefits, education, and job opportunities they have earned. And I want to thank my wife Michelle and Dr. Jill Biden for their continued dedication to serving our military families as well as they serve us.

But defending our freedom is not the job of our military alone. We must all do our part to make sure our God-given rights are protected here at home. That includes our most fundamental right as citizens: the right to vote. When any Americans – no matter where they live or what their party – are denied that right simply because they can’t wait for five, six, seven hours just to cast their ballot, we are betraying our ideals. That’s why, tonight, I’m announcing a non-partisan commission to improve the voting experience in America. And I’m asking two long-time experts in the field, who’ve recently served as the top attorneys for my campaign and for Governor Romney’s campaign, to lead it. We can fix this, and we will. The American people demand it. And so does our democracy. Of course, what I’ve said tonight matters little if we don’t come together to protect our most precious resource – our children.

It has been two months since Newtown. I know this is not the first time this country has debated how to reduce gun violence. But this time is different. Overwhelming majorities of Americans – Americans who believe in the 2nd Amendment – have come together around commonsense reform – like background checks that will make it harder for criminals to get their hands on a gun. Senators of both parties are working together on tough new laws to prevent anyone from buying guns for resale to criminals. Police chiefs are asking our help to get weapons of war and massive ammunition magazines off our streets, because they are tired of being outgunned.
Each of these proposals deserves a vote in Congress. If you want to vote no, that’s your choice. But these proposals deserve a vote. Because in the two months since Newtown, more than a thousand birthdays, graduations, and anniversaries have been stolen from our lives by a bullet from a gun.

One of those we lost was a young girl named Hadiya Pendleton. She was 15 years old. She loved Fig Newtons and lip gloss. She was a majorette. She was so good to her friends, they all thought they were her best friend. Just three weeks ago, she was here, in Washington, with her classmates, performing for her country at my inauguration. And a week later, she was shot and killed in a Chicago park after school, just a mile away from my house.

Hadiya’s parents, Nate and Cleo, are in this chamber tonight, along with more than two dozen Americans whose lives have been torn apart by gun violence. They deserve a vote. Gabby Giffords deserves a vote. The families of Newtown deserve a vote. The families of Aurora deserve a vote. The families of Oak Creek, and Tucson, and Blacksburg, and the countless other communities ripped open by gun violence – they deserve a simple vote.

Our actions will not prevent every senseless act of violence in this country. Indeed, no laws, no initiatives, no administrative acts will perfectly solve all the challenges I’ve outlined tonight. But we were never sent here to be perfect. We were sent here to make what difference we can, to secure this nation, expand opportunity, and uphold our ideals through the hard, often frustrating, but absolutely necessary work of self-government.

We were sent here to look out for our fellow Americans the same way they look out for one another, every single day, usually without fanfare, all across this country. We should follow their example.

We should follow the example of a New York City nurse named Menchu Sanchez. When Hurricane Sandy plunged her hospital into darkness, her thoughts were not with how her own home was faring – they were with the twenty precious newborns in her care and the rescue plan she devised that kept them all safe.

We should follow the example of a North Miami woman named Desiline Victor. When she arrived at her polling place, she was told the wait to vote might be six hours. And as time ticked by, her concern was not with her tired body or aching feet, but whether folks like her would get to have their say. Hour after hour, a throng of people stayed in line in support of her. Because Desiline is 102 years old. And they erupted in cheers when she finally put on a sticker that read “I Voted.”

We should follow the example of a police officer named Brian Murphy. When a gunman opened fire on a Sikh temple in Wisconsin, and Brian was the first to arrive, he did not consider his own safety. He fought back until help arrived, and ordered his fellow officers to protect the safety of the Americans worshiping inside – even as he lay bleeding from twelve bullet wounds.

When asked how he did that, Brian said, “That’s just the way we’re made.”
That’s just the way we’re made.

We may do different jobs, and wear different uniforms, and hold different views than the person beside us. But as Americans, we all share the same proud title:

We are citizens. It’s a word that doesn’t just describe our nationality or legal status. It describes the way we’re made. It describes what we believe. It captures the enduring idea that this country only works when we accept certain obligations to one another and to future generations; that our rights are wrapped up in the rights of others; and that well into our third century as a nation, it remains the task of us all, as citizens of these United States, to be the authors of the next great chapter in our American story.
Thank you, God bless you, and God bless the United States of America.

EU to increase cyber security checks

This file photo shows the European Cybercrime Centre (EC3) logo.

The European Union (EU) has proposed a new cyber security law that subjects tens of thousands of firms to increased internet security checks.

The draft of the legislation, published on Thursday, demands that around 42,000 European firms, including hospitals, airports and banks, report any incident of internet security exposure to agents of the European Cybercrime Centre (EC3).

Information Security Forum (ISF), representing IBM, Nokia, and Proctor & Gamble, said the new law subjects businesses to greater costs.


"The publication of a security incident can have significant influence on the reputation or value of a company - in the extreme case, publication has more severe consequences than the actual incident," ISF Vice President Steve Durbin said.

The law states each of the 27 countries in the bloc needs an anti-cybercrime unit, dubbed Computer Emergency Response Team.

The firms are required to report all internet security attacks to the Computer Emergency Response Team that can under the authority of the EC3 publish reports on the firms’ security flaws and impose fines.

The legislation comes as online consumers have expressed distrust with making online payments.

A 2012 EU poll showed that 38 percent of EU internet users considered online transactions as insecure and preferred traditional payment methods.

On October 19, 2012, the HSBC banking company had a major internet intrusion through a Distributed Denial of Service attack (DDoS-attack) that left millions of customers without access to online services.

GVN/HMV

The Real Debate Over American Citizenship

The Real Debate Over American Citizenship

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Posted on Feb 6, 2013
Flickr/From Sovereign to Serf - Roger Sayles

By Robert Reich

This post originally ran on Robert Reich’s Web page.

Sometimes we have a national conversation without realizing it. We talk about different aspects of the same larger issue without connecting the dots.

That’s what’s happening now with regard to the meaning of American citizenship and the basic rights that come with it.

On one side are those who think of citizenship as a matter of exclusion and privilege — of protecting the nation by keeping out those who are undesirable, and putting strict limits on who is allowed to exercise the full rights of citizenship.

On the other are those who think of citizenship inclusively — as an ongoing process of helping people become full participants in America.

One part of this conversation involves immigration. I’m not just referring the question of whether or how people living in the United States illegally can become citizens. (Courtesy of our fast-growing Latino population, 70 percent of whom voted for President Obama last November, we’re far closer to resolving that one than we were a year ago.)

It’s also a question of who we want to join us. Engraved on a bronze plaque mounted inside the lower level of the pedestal of the Statue of Liberty are Emma Lazarus’ immortal words, written in 1883: “Give me your tired, your poor/ Your huddled masses yearning to breathe free/ The wretched refuse of your teeming shore./ Send these, the homeless, tempest-tost, to me.”

By contrast, a bipartisan group of lawmakers last week introduced a bill giving priority to the highly skilled. “Our immigration system needs to be … more welcoming of highly skilled immigrants and the enormous contributions they can make to our economy,” said one of its sponsors, Florida Senator Marco Rubio

So is the priority to be those who need us, or those whom we need?

Another part of the same larger conversation concerns voting rights — the means by which citizens participate in our democracy.

Long waiting lines depressed voter turnout last November, especially in cities where Democrats outnumber Republicans. One study showed blacks and Hispanics on average had to wait nearly twice as long to vote as whites. Some gave up trying.

Voter registration is part of that issue, along with what sorts of proof of citizenship states may require. Dozens of legal challenges and lower-court decisions were made in the months leading up to the November election. Some are heading to appellate courts.

This post originally ran on Robert Reich’s Web page, www.robertreich.org

Congressional Democrats are pushing legislation to require states to ease voting requirements — allowing more early voting, online voting, and quicker means of registering. Meanwhile, the Supreme Court is preparing to hear a major challenge to the Voting Rights Act of 1965 potentially giving states more leeway to tighten voting standards.

A different aspect of the citizenship conversation concerns the rights of corporations to influence elections. The Court’s bizarre 2010 decision in “Citizens United versus Federal Election Commission” — deeming corporations people under the First Amendment, with unlimited rights to spend money on elections — didn’t consider the question of corporate citizenship as such.

But it’s likely to become a big issue in the future as large American companies that pour lots of money into our elections morph into global corporations without any particular national identity.

Most of Chrysler is owned by Fiat, and most of Fiat is owned by non-Americans. Both IBM and GE have more non-American employees and customers than American, and foreign ownership of both continues to increase. At what point do these global entities forfeit their right to influence U.S. elections?

And then there’s the growing debate about whether American citizens have the right to a trial by an impartial judge and jury before the government executes them.

You might think so. The Constitution guarantees American citizens “due process” of law. But a “white paper” from the Justice Department, recently obtained by NBC News, argues that an “informed, high-level” government official can unilaterally decide to put an American citizen to death without any judicial oversight if that official decides the citizen in question is an operational leader of Al Qaeda or one of its allies.

Even if you trust high-level officials in the current administration, their argument should give you pause. The relative ease by which targeted drones can now kill particular individuals far from recognized battlefields (as did the drone attack on American-born Anwar al-Awlaki in Yemen in September, 2011) raises uncomfortable questions about the protections accorded American citizens, as well as the potential for arbitrary decision making about who lives or dies.

They may seem unrelated, but all these issues — who gets to be an American citizen, how easily American citizens can vote, whether global corporations are American citizens entitled to influence our elections, and whether American citizens are entitled to a judge and jury before being executed — are pieces of the same larger debate: Are we more fearful of “them” out there, or more confident about “us”? Is our goal to constrain and limit citizenship, or to enlarge and fulfill its promise?

It’s an old debate in America. The greatness of our nation lies in our overriding tendency to choose the latter.


Robert B. Reich, chancellor’s professor of public policy at UC Berkeley, was secretary of labor in the Clinton administration. Time magazine named him one of the 10 most effective Cabinet secretaries of the last century. He has written 13 books, including the best-sellers “Aftershock” and “The Work of Nations.” His latest, “Beyond Outrage,” is now out in paperback. He is also a founding editor of The American Prospect magazine and chairman of Common Cause.


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The Real Debate Over American Citizenship

Sometimes we have a national conversation without realizing it. We talk about different aspects of the same larger issue without connecting the dots.

That’s what’s happening now with regard to the meaning of American citizenship and the basic rights that come with it. 

On one side are those who think of citizenship as a matter of exclusion and privilege — of protecting the nation by keeping out those who are undesirable, and putting strict limits on who is allowed to exercise the full rights of citizenship. 

On the other are those who think of citizenship inclusively — as an ongoing process of helping people become full participants in America. 

One part of this conversation involves immigration. I’m not just referring the question of whether or how people living in the United States illegally can become citizens. (Courtesy of our fast-growing Latino population, 70 percent of whom voted for President Obama last November, we’re far closer to resolving that one than we were a year ago.) 

It’s also a question of who we want to join us. Engraved on a bronze plaque mounted inside the lower level of the pedestal of the Statue of Liberty are Emma Lazarus’ immortal words, written in 1883: “Give me your tired, your poor/ Your huddled masses yearning to breathe free/ The wretched refuse of your teeming shore./ Send these, the homeless, tempest-tost, to me.”

By contrast, a bipartisan group of lawmakers last week introduced a bill giving priority to the highly skilled. “Our immigration system needs to be … more welcoming of highly skilled immigrants and the enormous contributions they can make to our economy,” said one of its sponsors, Florida Senator Marco Rubio.  

So is the priority to be those who need us, or those whom we need? 

Another part of the same larger conversation concerns voting rights — the means by which citizens participate in our democracy. 

Long waiting lines depressed voter turnout last November, especially in cities where Democrats outnumber Republicans. One study showed blacks and Hispanics on average had to wait nearly twice as long to vote as whites. Some gave up trying. 

Voter registration is part of that issue, along with what sorts of proof of citizenship states may require. Dozens of legal challenges and lower-court decisions were made in the months leading up to the November election. Some are heading to appellate courts. 

Congressional Democrats are pushing legislation to require states to ease voting requirements — allowing more early voting, online voting, and quicker means of registering. Meanwhile, the Supreme Court is preparing to hear a major challenge to the Voting Rights Act of 1965 potentially giving states more leeway to tighten voting standards.

A different aspect of the citizenship conversation concerns the rights of corporations to influence elections. The Court’s bizarre 2010 decision in “Citizens United versus Federal Election Commission” — deeming corporations people under the First Amendment, with unlimited rights to spend money on elections — didn’t consider the question of corporate citizenship as such. 

But it’s likely to become a big issue in the future as large American companies that pour lots of money into our elections morph into global corporations without any particular national identity. 

Most of Chrysler is owned by Fiat, and most of Fiat is owned by non-Americans. Both IBM and GE have more non-American employees and customers than American, and foreign ownership of both continues to increase. At what point do these global entities forfeit their right to influence U.S. elections?

And then there’s the growing debate about whether American citizens have the right to a trial by an impartial judge and jury before the government executes them. 

You might think so. The Constitution guarantees American citizens “due process” of law. But a “white paper” from the Justice Department, recently obtained by NBC News, argues that an “informed, high-level” government official can unilaterally decide to put an American citizen to death without any judicial oversight if that official decides the citizen in question is an operational leader of Al Qaeda or one of its allies. 

Even if you trust high-level officials in the current administration, their argument should give you pause. The relative ease by which targeted drones can now kill particular individuals far from recognized battlefields (as did the drone attack on American-born Anwar al-Awlaki in Yemen in September, 2011) raises uncomfortable questions about the protections accorded American citizens, as well as the potential for arbitrary decision making about who lives or dies. 

They may seem unrelated, but all these issues — who gets to be an American citizen, how easily American citizens can vote, whether global corporations are American citizens entitled to influence our elections, and whether American citizens are entitled to a judge and jury before being executed — are pieces of the same larger debate: Are we more fearful of “them” out there, or more confident about “us”? Is our goal to constrain and limit citizenship, or to enlarge and fulfill its promise? 

It’s an old debate in America. The greatness of our nation lies in our overriding tendency to choose the latter.

© 2012 Robert Reich

Robert Reich

Robert Reich, one of the nation’s leading experts on work and the economy, is Chancellor’s Professor of Public Policy at the Goldman School of Public Policy at the University of California at Berkeley. He has served in three national administrations, most recently as secretary of labor under President Bill Clinton. Time Magazine has named him one of the ten most effective cabinet secretaries of the last century. He has written thirteen books, including his latest best-seller, Aftershock: The Next Economy and America’s Future; The Work of Nations; Locked in the Cabinet; Supercapitalism; and his newest, Beyond Outrage. His syndicated columns, television appearances, and public radio commentaries reach millions of people each week. He is also a founding editor of the American Prospect magazine, and Chairman of the citizen’s group Common Cause. His widely-read blog can be found at www.robertreich.org.

The Real Debate Over American Citizenship

Sometimes we have a national conversation without realizing it. We talk about different aspects of the same larger issue without connecting the dots.

That’s what’s happening now with regard to the meaning of American citizenship and the basic rights that come with it. 

On one side are those who think of citizenship as a matter of exclusion and privilege — of protecting the nation by keeping out those who are undesirable, and putting strict limits on who is allowed to exercise the full rights of citizenship. 

On the other are those who think of citizenship inclusively — as an ongoing process of helping people become full participants in America. 

One part of this conversation involves immigration. I’m not just referring the question of whether or how people living in the United States illegally can become citizens. (Courtesy of our fast-growing Latino population, 70 percent of whom voted for President Obama last November, we’re far closer to resolving that one than we were a year ago.) 

It’s also a question of who we want to join us. Engraved on a bronze plaque mounted inside the lower level of the pedestal of the Statue of Liberty are Emma Lazarus’ immortal words, written in 1883: “Give me your tired, your poor/ Your huddled masses yearning to breathe free/ The wretched refuse of your teeming shore./ Send these, the homeless, tempest-tost, to me.”

By contrast, a bipartisan group of lawmakers last week introduced a bill giving priority to the highly skilled. “Our immigration system needs to be … more welcoming of highly skilled immigrants and the enormous contributions they can make to our economy,” said one of its sponsors, Florida Senator Marco Rubio.  

So is the priority to be those who need us, or those whom we need? 

Another part of the same larger conversation concerns voting rights — the means by which citizens participate in our democracy. 

Long waiting lines depressed voter turnout last November, especially in cities where Democrats outnumber Republicans. One study showed blacks and Hispanics on average had to wait nearly twice as long to vote as whites. Some gave up trying. 

Voter registration is part of that issue, along with what sorts of proof of citizenship states may require. Dozens of legal challenges and lower-court decisions were made in the months leading up to the November election. Some are heading to appellate courts. 

Congressional Democrats are pushing legislation to require states to ease voting requirements — allowing more early voting, online voting, and quicker means of registering. Meanwhile, the Supreme Court is preparing to hear a major challenge to the Voting Rights Act of 1965 potentially giving states more leeway to tighten voting standards.

A different aspect of the citizenship conversation concerns the rights of corporations to influence elections. The Court’s bizarre 2010 decision in “Citizens United versus Federal Election Commission” — deeming corporations people under the First Amendment, with unlimited rights to spend money on elections — didn’t consider the question of corporate citizenship as such. 

But it’s likely to become a big issue in the future as large American companies that pour lots of money into our elections morph into global corporations without any particular national identity. 

Most of Chrysler is owned by Fiat, and most of Fiat is owned by non-Americans. Both IBM and GE have more non-American employees and customers than American, and foreign ownership of both continues to increase. At what point do these global entities forfeit their right to influence U.S. elections?

And then there’s the growing debate about whether American citizens have the right to a trial by an impartial judge and jury before the government executes them. 

You might think so. The Constitution guarantees American citizens “due process” of law. But a “white paper” from the Justice Department, recently obtained by NBC News, argues that an “informed, high-level” government official can unilaterally decide to put an American citizen to death without any judicial oversight if that official decides the citizen in question is an operational leader of Al Qaeda or one of its allies. 

Even if you trust high-level officials in the current administration, their argument should give you pause. The relative ease by which targeted drones can now kill particular individuals far from recognized battlefields (as did the drone attack on American-born Anwar al-Awlaki in Yemen in September, 2011) raises uncomfortable questions about the protections accorded American citizens, as well as the potential for arbitrary decision making about who lives or dies. 

They may seem unrelated, but all these issues — who gets to be an American citizen, how easily American citizens can vote, whether global corporations are American citizens entitled to influence our elections, and whether American citizens are entitled to a judge and jury before being executed — are pieces of the same larger debate: Are we more fearful of “them” out there, or more confident about “us”? Is our goal to constrain and limit citizenship, or to enlarge and fulfill its promise? 

It’s an old debate in America. The greatness of our nation lies in our overriding tendency to choose the latter.

© 2012 Robert Reich

Robert Reich

Robert Reich, one of the nation’s leading experts on work and the economy, is Chancellor’s Professor of Public Policy at the Goldman School of Public Policy at the University of California at Berkeley. He has served in three national administrations, most recently as secretary of labor under President Bill Clinton. Time Magazine has named him one of the ten most effective cabinet secretaries of the last century. He has written thirteen books, including his latest best-seller, Aftershock: The Next Economy and America’s Future; The Work of Nations; Locked in the Cabinet; Supercapitalism; and his newest, Beyond Outrage. His syndicated columns, television appearances, and public radio commentaries reach millions of people each week. He is also a founding editor of the American Prospect magazine, and Chairman of the citizen’s group Common Cause. His widely-read blog can be found at www.robertreich.org.

The Pentagon and Slave Labor in U.S. Prisons

The Pentagon and Slave Labor in U.S. Prisons

Prisoners earning 23 cents an hour in U.S. federal prisons are manufacturing high-tech electronic components for Patriot Advanced Capability 3 missiles, launchers for TOW (Tube-launched, Optically tracked, Wire-guided) anti-tank missiles, and other guided missile systems. A March article by journalist and financial researcher Justin Rohrlich of World in Review is worth a closer look at the full implications of this ominous development. (minyanville.com)

The expanding use of prison industries, which pay slave wages, as a way to increase profits for giant military corporations, is a frontal attack on the rights of all workers.

Prison labor — with no union protection, overtime pay, vacation days, pensions, benefits, health and safety protection, or Social Security withholding — also makes complex components for McDonnell Douglas/Boeing’s F-15 fighter aircraft, the General Dynamics/Lockheed Martin F-16, and Bell/Textron’s Cobra helicopter. Prison labor produces night-vision goggles, body armor, camouflage uniforms, radio and communication devices, and lighting systems and components for 30-mm to 300-mm battleship anti-aircraft guns, along with land mine sweepers and electro-optical equipment for the BAE Systems Bradley Fighting Vehicle’s laser rangefinder. Prisoners recycle toxic electronic equipment and overhaul military vehicles.

Labor in federal prisons is contracted out by UNICOR, previously known as Federal Prison Industries, a quasi-public, for-profit corporation run by the Bureau of Prisons. In 14 prison factories, more than 3,000 prisoners manufacture electronic equipment for land, sea and airborne communication. UNICOR is now the U.S. government’s 39th largest contractor, with 110 factories at 79 federal penitentiaries.

The majority of UNICOR’s products and services are on contract to orders from the Department of Defense. Giant multinational corporations purchase parts assembled at some of the lowest labor rates in the world, then resell the finished weapons components at the highest rates of profit. For example, Lockheed Martin and Raytheon Corporation subcontract components, then assemble and sell advanced weapons systems to the Pentagon.

Increased profits, unhealthy workplaces

However, the Pentagon is not the only buyer. U.S. corporations are the world’s largest arms dealers, while weapons and aircraft are the largest U.S. export. The U.S. State Department, Department of Defense and diplomats pressure NATO members and dependent countries around the world into multibillion-dollar weapons purchases that generate further corporate profits, often leaving many countries mired in enormous debt.

But the fact that the capitalist state has found yet another way to drastically undercut union workers’ wages and ensure still higher profits to military corporations — whose weapons wreak such havoc around the world — is an ominous development.

According to CNN Money, the U.S. highly skilled and well-paid “aerospace workforce has shrunk by 40 percent in the past 20 years. Like many other industries, the defense sector has been quietly outsourcing production (and jobs) to cheaper labor markets overseas.” (Feb. 24) It seems that with prison labor, these jobs are also being outsourced domestically.

Meanwhile, dividends and options to a handful of top stockholders and CEO compensation packages at top military corporations exceed the total payment of wages to the more than 23,000 imprisoned workers who produce UNICOR parts.

The prison work is often dangerous, toxic and unprotected. At FCC Victorville, a federal prison located at an old U.S. airbase, prisoners clean, overhaul and reassemble tanks and military vehicles returned from combat and coated in toxic spent ammunition, depleted uranium dust and chemicals.

A federal lawsuit by prisoners, food service workers and family members at FCI Marianna, a minimum security women’s prison in Florida, cited that toxic dust containing lead, cadmium, mercury and arsenic poisoned those who worked at UNICOR’s computer and electronic recycling factory.

Prisoners there worked covered in dust, without safety equipment, protective gear, air filtration or masks. The suit explained that the toxic dust caused severe damage to nervous and reproductive systems, lung damage, bone disease, kidney failure, blood clots, cancers, anxiety, headaches, fatigue, memory lapses, skin lesions, and circulatory and respiratory problems. This is one of eight federal prison recycling facilities — employing 1,200 prisoners — run by UNICOR.

After years of complaints the Justice Department’s Office of the Inspector General and the Federal Occupational Health Service concurred in October 2008 that UNICOR has jeopardized the lives and safety of untold numbers of prisoners and staff. (Prison Legal News, Feb. 17, 2009)

Racism & U.S. prisons

The U.S. imprisons more people per capita than any country in the world. With less than 5 percent of the world population, the U.S. imprisons more than 25 percent of all people imprisoned in the world.

There are more than 2.3 million prisoners in federal, state and local prisons in the U.S. Twice as many people are under probation and parole. Many tens of thousands of other prisoners include undocumented immigrants facing deportation, prisoners awaiting sentencing and youthful offenders in categories considered reform or detention.

The racism that pervades every aspect of life in capitalist society — from jobs, income and housing to education and opportunity — is most brutally reflected by who is caught up in the U.S. prison system.

More than 60 percent of U.S. prisoners are people of color. Seventy percent of those being sentenced under the three strikes law in California — which requires mandatory sentences of 25 years to life after three felony convictions — are people of color. Nationally, 39 percent of African-American men in their 20s are in prison, on probation or on parole. The U.S. imprisons more people than South Africa did under apartheid. (Linn Washington, “Incarceration Nation”)

The U.S. prison population is not only the largest in the world — it is relentlessly growing. The U.S. prison population is more than five times what it was 30 years ago.

In 1980, when Ronald Reagan became president, there were 400,000 prisoners in the U.S. Today the number exceeds 2.3 million. In California the prison population soared from 23,264 in 1980 to 170,000 in 2010. The Pennsylvania prison population climbed from 8,243 to 51,487 in those same years. There are now more African-American men in prison, on probation or on parole than were enslaved in 1850, before the Civil War began, according to Law Professor Michelle Alexander in the book “The New Jim Crow: Mass Incarceration in the Age of Colorblindness.”

Today a staggering 1-in-100 adults in the U.S. are living behind bars. But this crime, which breaks families and destroys lives, is not evenly distributed. In major urban areas one-half of Black men have criminal records. This means life-long, legalized discrimination in student loans, financial assistance, access to public housing, mortgages, the right to vote and, of course, the possibility of being hired for a job.

State Prisons contracting slave labor

It is not only federal prisons that contract out prison labor to top corporations. State prisons that used forced prison labor in plantations, laundries and highway chain gangs increasingly seek to sell prison labor to corporations trolling the globe in search of the cheapest possible labor.

One agency asks: “Are you experiencing high employee turnover? Worried about the costs of employee benefits? Unhappy with out-of-state or offshore suppliers? Getting hit by overseas competition? Having trouble motivating your workforce? Thinking about expansion space? Then Washington State Department of Corrections Private Sector Partnerships is for you.” (educate-yourself.org, July 25, 2005)

Major corporations profiting from the slave labor of prisoners include Motorola, Compaq, Honeywell, Microsoft, Boeing, Revlon, Chevron, TWA, Victoria’s Secret and Eddie Bauer.

IBM, Texas Instruments and Dell get circuit boards made by Texas prisoners. Tennessee inmates sew jeans for Kmart and JCPenney. Tens of thousands of youth flipping hamburgers for minimum wages at McDonald’s wear uniforms sewn by prison workers, who are forced to work for much less.

In California, as in many states, prisoners who refuse to work are moved to disciplinary housing and lose canteen privileges as well as “good time” credit, which slices hard time off their sentences.

Systematic abuse, beatings, prolonged isolation and sensory deprivation, and lack of medical care make U.S. prison conditions among the worst in the world. Ironically, working under grueling conditions for pennies an hour is treated as a “perk” for good behavior.

In December, Georgia inmates went on strike and refused to leave their cells at six prisons for more than a week. In one of the largest prison protests in U.S. history, prisoners spoke of being forced to work seven days a week for no pay. Prisoners were beaten if they refused to work.

Private prisons for profit

In the ruthless search to maximize profits and grab hold of every possible source of income, almost every public agency and social service is being outsourced to private for-profit contractors.

In the U.S. military this means there are now more private contractors and mercenaries in Iraq and Afghanistan than there are U.S. or NATO soldiers.

In cities and states across the U.S., hospitals, medical care facilities, schools, cafeterias, road maintenance, water supply services, sewage departments, sanitation, airports and tens of thousands of social programs that receive public funding are being contracted out to for-profit corporations. Anything publicly owned and paid for by generations of past workers’ taxes — from libraries to concert halls and parks — is being sold or leased at fire sale prices.

All this is motivated and lobbied for by right-wing think tanks like that set up by Koch Industries and their owners, Charles and David Koch, as a way to cut costs, lower wages and pensions, and undercut public service unions.

The most gruesome privatizations are the hundreds of for-profit prisons being established.

The inmate population in private for-profit prisons tripled between 1987 and 2007. By 2007 there were 264 such prison facilities, housing almost 99,000 adult prisoners. (house.leg.state.mn.us, Feb. 24, 2009) Companies operating such facilities include the Corrections Corporation of America, the GEO Group Inc. and Community Education Centers.

Prison bonds provide a lucrative return for capitalist investors such as Merrill-Lynch, Shearson Lehman, American Express and Allstate. Prisoners are traded from one state to another based on the most profitable arrangements.

Militarism and prisons

Hand in hand with the military-industrial complex, U.S. imperialism has created a massive prison-industrial complex that generates billions of dollars annually for businesses and industries profiting from mass incarceration.

For decades workers in the U.S. have been assured that they also benefit from imperialist looting by the giant multinational corporations. But today more than half the federal budget is absorbed by the costs of maintaining the military machine and the corporations who are guaranteed profits for equipping the Pentagon. That is the only budget category in federal spending that is guaranteed to increase by at least 5 percent a year — at a time when every social program is being cut to the bone.

The sheer economic weight of militarism seeps into the fabric of society at every level. It fuels racism and reaction. The political influence of the Pentagon and the giant military and oil corporations — with their thousands of high-paid lobbyists, media pundits and network of links into every police force in the country — fuels growing repression and an expanding prison population.

The military, oil and banking conglomerates, interlinked with the police and prisons, have a stranglehold on the U.S. capitalist economy and reins of political power, regardless of who is president or what political party is in office. The very survival of these global corporations is based on immediate maximization of profits. They are driven to seize every resource and source of potential profits.

Thoroughly rational solutions are proposed whenever the human and economic cost of militarism and repression is discussed. The billions spent for war and fantastically destructive weapons systems could provide five to seven times more jobs if spent on desperately needed social services, education and rebuilding essential infrastructure. Or it could provide free university education, considering the fact that it costs far more to imprison people than to educate them.

Why aren’t such reasonable solutions ever chosen? Because military contracts generate far larger guaranteed profits to the military and the oil industries, which have a decisive influence on the U.S. economy.

The prison-industrial complex — including the prison system, prison labor, private prisons, police and repressive apparatus, and their continuing expansion — are a greater source of profit and are reinforced by the climate of racism and reaction. Most rational and socially useful solutions are not considered viable options.

Corpocrisy: The Systematic Betrayal of American Workers

Free market idealists argue that capitalism works for anyone with a little initiative and a willingness to work hard. That might be true if job opportunities were available to everyone. But the facts reveal a lack of opportunity, largely because the v...

No Austerity Has Helped Any Economy

Men and women line up for a free meal at Saviour's Anglican Church in Riga's old town in Latvia, Dec. 15, 2012. Some experts are hailing the country's progress as proof of the healing properties of austerity measures - while the country still has 14% unemployment. (Photo: Andrea Bruce/The New York Times)Men and women line up for a free meal at Saviour's Anglican Church in Riga's old town in Latvia, Dec. 15, 2012. Some experts are hailing the country's progress as proof of the healing properties of austerity measures - while the country still has 14% unemployment. (Photo: Andrea Bruce/The New York Times)Paul Krugman’s recent column looks at the romance between the “austerians” — the promoters of austerity for economically troubled nations — and the need to inflict pain to get economic gain. His bottom line — no country that has tried austerity has seen a major economic benefit.

My bottom line — add “to its people” to the end of Krugman’s bottom line and you’ve got it exactly. There is an obvious economic benefit, but only for a few.

Let’s start with Krugman. He begins (my emphasis):

Looking for Mister Goodpain

Three years ago, a terrible thing happened to economic policy, both here and in Europe. Although the worst of the financial crisis was over, economies on both sides of the Atlantic remained deeply depressed, with very high unemployment. Yet the Western world’s policy elite somehow decided en masse that unemployment was no longer a crucial concern, and that reducing budget deficits should be the overriding priority.

That’s a familiar story, one we’ve detailed before. The answer to economic crisis is always budget cuts and austerity. Then he pivots to austerian attempts to find an example.

In recent columns, I’ve argued that worries about the deficit are, in fact, greatly exaggerated — and have documented the increasingly desperate efforts of the deficit scolds to keep fear alive. Today, however, I’d like to talk about a different but related kind of desperation: the frantic effort to find some example, somewhere, of austerity policies that succeeded. For the advocates of fiscal austerity — the austerians — made promises as well as threats: austerity, they claimed, would both avert crisis and lead to prosperity.

The column is interesting because it lays out that history. First the example was Ireland, which the head of the European Central Bank said in 2010 was “the role model for all of Europe’s debtor nations.” But events proved them wrong; Ireland is worse off today than it was back then. So then the U.K. became the touted model, until it wasn’t. Then little Latvia, which has recovered some, was pushed forward; but Latvia still has 14% unemployment. Hmm.

Krugman’s conclusion — nowhere in the world is there an example of austerity that works as the austerians said it would. The policy is “wrong on all fronts.” Yet they (Our Betters) still promote it.

Krugman stops there, but I’ll continue with the obvious question. Why do they still promote it? Krugman’s answer, from elsewhere, is the Beltway Bubble and its international equivalent:

my side of the debate is actually paying attention both to the numbers and to the arguments of the other side, while the Very Serious People only listen to each other.

In other words, the poor darlings are just deluded, bubbled, sealed from understanding.

Those whom he calls Very Serious People, I call Our Betters. This difference in language (between his and mine) is indicative of the difference in analysis between Krugman and people like me. The language “Very Serious People” speaks to their role as pundits, opinion-generators and insider-echoists. “Our Betters” speaks about their power role — the role these people play in running our lives (at the Obama and Robert Rubin level) or in serving those who run our lives (at the David Gregory and Joe Scarborough level).

In other words, it’s certainly true that the baronial class and its servants and administrators listen only to each other, and thus reinforce in each other the comforting cover story that they’re only doing what’s in our ultimate good.

But the baronial class is also the predator class and they know precisely where the benefit (for them) always lies. This is the predator class in operation:

Income disparity 1979-2007_CBPP

The Predator Class in action. If you added the Top .001% to this chart, it would have to be taller than you are.

If you added the Top .1%, the Top .01% and the Top .001% to that chart, you’d need a chart as tall as your room. What the chart calls the “Highest Fifth” includes what I call the “retainers” — administrators, enablers (that’s you, CNN producers) and professionals needed to keep the system working. Everyone else is workers, and look what their hard work got them.

All of the gains of worker productivity (the harder smarter computer-enabled work of the lowest four-fifths) have gone into the pockets of the highest fifth and especially the very top earners. Note that these are individual incomes, not corporate incomes; as I’ve argued elsewhere, the corporation is just the collection device, the force extender, for the CEO class that wholly controls it; shareholder-ownership is the comforting cover story.

This is what James Galbraith calls “the predatory state” — and he means that economically. The predatory state is a state that enables and is controlled by economic predators, extremely wealthy vampires who feed on their fellow citizens. Galbraith (my emphasis):

That the looming debt and deficit crisis is fake is something that, by now, even the most dim member of Congress must know. The combination of hysterical rhetoric, small armies of lobbyists and pundits, and the proliferation of billionaire-backed front groups with names like the “Committee for a Responsible Federal Budget” is not a novelty in Washington. It happens whenever Big Money wants something badly enough.

Big Money has been gunning for Social Security, Medicare and Medicaid for decades – since the beginning of Social Security in 1935. The motives are partly financial: As one scholar once put it to me, the payroll tax is the “Mississippi of cash flows.” Anything that diverts part of it into private funds and insurance premiums is a meal ticket for the elite of the predator state.

By “elite” of the predator state, Galbraith means “owners” of the predator state, the top predators themselves. It’s that predatory feeding that produces policies, promises and pronouncements like these that Krugman describes:

Not only have we been ruled by fear of nonexistent threats, we’ve been promised rewards that haven’t arrived and never will.

They’ll say and do anything to get at more dollars; they’ll destroy the planet’s ability to support life itself, all for more dollars. Look again at the chart above. They’ve been looting the country, the government, the schools, the pension plans, your wages, the equity in your home, everything they can get their hands on since Reagan Days. Their only goal — All your money are belong to us. These are true monomaniacs, in the clinical sense.

So yes, they’re self-deluded. But like every feral beast, they also know where the food is. That food is us unless we stop them. And stopping them starts (in my most humble opinion) with naming them and  shaming them.

An example of naming — does Obama serve the predators who finance his elections and his looming Legacy & Library Project or does he serve the people who elected him? Ask it loud and proud. The “debt ceiling–sequester” deal is his next chance to show us. As is Keystone, for those who are watching at home. But he can’t show us if we don’t ask him to, and in no uncertain terms.

My advice — dare to be bold, progressives. This game has a fourth quarter, and we’re in it. At some point, the predator will destroy all the prey and then die. Justice for the beast perhaps, but no fun for the already dead.

“Smart Cards” in a Surveillance Society: The Implanted Radio-Frequency Identification Chip

The Implanted Radio-Frequency Identification Chip: "Smart Cards" in a Surveillance Society

If incorporating personal details into an RFID (radio-frequency identification) chip implanted into a passport or driver’s license may sound like a “smart” alternative to endless lines at the airport and intrusive questioning by securocrats, think again.

Since the late 1990s, corporate grifters have touted the “benefits” of the devilish transmitters as a “convenient” and “cheap” way to tag individual commodities, one that would “revolutionize” inventory management and theft prevention. Indeed, everything from paper towels to shoes, pets to underwear have been “tagged” with the chips. “Savings” would be “passed on” to the consumer. Call it the Wal-Martization of everyday life.

RFID tags are small computer chips connected to miniature antennae that can be fixed to or implanted within physical objects, including human beings. The RFID chip itself contains an Electronic Product Code that can be “read” when a RFID reader emits a radio signal. The chips are divided into two categories, passive or active. A “passive” tag doesn’t contain a battery and its “read” range is variable, from less than an inch to twenty or thirty feet. An “active” tag on the other hand, is self-powered and has a much longer range. The data from an “active” tag can be sent directly to a computer system involved in inventory control–or surveillance.

But as Consumers Against Supermarket Privacy Invasion and Numbering (CASPIAN), the American Civil Liberties Union (ACLU), the Electronic Frontier Foundation (EFF) and the Electronic Privacy Information Center (EPIC) state in a joint position paper, “RFID has the potential to jeopardize consumer privacy, reduce or eliminate purchasing anonymity, and threaten civil liberties.” As these organizations noted:

While there are beneficial uses of RFID, some attributes of the technology could be deployed in ways that threaten privacy and civil liberties:

* Hidden placement of tags. RFID tags can be embedded into/onto objects and documents without the knowledge of the individual who obtains those items. As radio waves travel easily and silently through fabric, plastic, and other materials, it is possible to read RFID tags sewn into clothing or affixed to objects contained in purses, shopping bags, suitcases, and more.

* Unique identifiers for all objects worldwide. The Electronic Product Code potentially enables every object on earth to have its own unique ID. The use of unique ID numbers could lead to the creation of a global item registration system in which every physical object is identified and linked to its purchaser or owner at the point of sale or transfer.

* Massive data aggregation. RFID deployment requires the creation of massive databases containing unique tag data. These records could be linked with personal identifying data, especially as computer memory and processing capacities expand.

* Hidden readers. Tags can be read from a distance, not restricted to line of sight, by readers that can be incorporated invisibly into nearly any environment where human beings or items congregate. RFID readers have already been experimentally embedded into floor tiles, woven into carpeting and floor mats, hidden in doorways, and seamlessly incorporated into retail shelving and counters, making it virtually impossible for a consumer to know when or if he or she was being “scanned.”

* Individual tracking and profiling. If personal identity were linked with unique RFID tag numbers, individuals could be profiled and tracked without their knowledge or consent. For example, a tag embedded in a shoe could serve as a de facto identifier for the person wearing it. Even if item-level information remains generic, identifying items people wear or carry could associate them with, for example, particular events like political rallies. (“Position Statement on the Use of RFID on Consumer Products,” Privacy Rights Clearinghouse, November 14, 2003)

RFID under the skin

As the corporatist police state unfurls its murderous tentacles here in the United States, it should come as no surprise that securocrats breathlessly tout the “benefits” of RFID in the area of “homeland security.” When linked to massive commercial databases as well as those compiled by the 16 separate agencies of the “intelligence community,” such as the Terrorist Identities Datamart Environment (TIDE) that feeds the federal government’s surveillance Leviathan with the names of suspected “terrorists,” it doesn’t take a genius to conclude that the architecture for a vast totalitarian enterprise is off the drawing board and onto the streets.

As last week’s mass repression of peaceful protest at the Republican National Convention in St. Paul amply demonstrated, the Bush regime’s “preemptive war” strategy has been rolled out in the heimat. As the World Socialist Web Site reports,

On Wednesday eight members of the anarchist protest group the Republican National Convention Welcoming Committee (RNCWC) were charged under provisions of the Minnesota state version of the Patriot Act with “Conspiracy to Riot in Furtherance of Terrorism.”

The eight charged are all young, and could face up to seven-and-a-half years in prison under a provision that allows the enhancement of charges related to terrorism by 50 percent. …

Among other things, the youth, who were arrested last weekend even prior to the start of the convention, are charged with plotting to kidnap delegates to the RNC, assault police officers and attack airports. Almost all of the charges listed are based upon the testimony of police infiltrators, one an officer, the other a paid informant. (Tom Eley, “RNC in Twin Cities: Eight protesters charged with terrorism under Patriot Act,” World Socialist Web Site, 6 September 2008)

As the ACLU pointed out, “These charges are an effort to equate publicly stated plans to blockade traffic and disrupt the RNC as being the same as acts of terrorism. This both trivializes real violence and attempts to place the stated political views of the defendants on trial,” said Bruce Nestor, president of the Minnesota Chapter of the National Lawyers Guild. “The charges represent an abuse of the criminal justice system and seek to intimidate any person organizing large scale public demonstrations potentially involving civil disobedience,” he said.

An affidavit filed by the cops in order to allow the preemptive police raid and subsequent arrests declared that the RNCWC is a “criminal enterprise” strongly implying that the group of anarchist youth were members of a “terrorist organization.”

Which, as we have learned over these last seven and a half years of darkness, is precisely the point: keep ‘em scared and passive. And when they’re neither scared nor passive, resort to police state tactics of mass repression. While the cops beat and arrested demonstrators and journalists outside the Xcel Energy Center, neanderthal-like Republican mobs chanted “USA! USA!” while the execrable theocratic fascist, Sarah Palin, basked in the limelight. But I digress…

Likened to barcodes that scan items at the grocery store check-out line, what industry flacks such as the Association for Automatic Identification and Mobility (AIM) fail to mention in their propaganda about RFID is that the information stored on a passport or driver’s license is readily stolen by anyone with a reader device–marketers, security agents, criminals or stalkers–without the card holder even being remotely aware that they are being tracked and their allegedly “secure” information plundered. According to a blurb on the AIM website,

Automatic Identification and Mobility (AIM) technologies are a diverse family of technologies that share the common purpose of identifying, tracking, recording, storing and communicating essential business, personal, or product data. In most cases, AIM technologies serve as the front end of enterprise software systems, providing fast and accurate collection and entry of data. (“Technologies,” Association for Automatic Identification and Mobility, no date)

Among the “diverse family of technologies” touted by AIM, many are rife with “dual-use” potential, that is, the same technology that can keep track of a pallet of soft drinks can also keep track of human beings.

Indeed, the Association touts biometric identification as “an automated method of recognizing a person based on a physiological or behavioral characteristic.” This is especially important since “the need” for biometrics “can be found in federal, state and local governments, in the military, and in commercial applications.” When used as a stand-alone or in conjunction with RFID-chipped “smart cards” biometrics, according to the industry “are set to pervade nearly all aspects of the economy and our daily lives.”

Some “revolution.”

The industry received a powerful incentive from the state when the Government Services Administration (GSA), a Bushist satrapy, issued a 2004 memo that urged the heads of all federal agencies “to consider action that can be taken to advance the [RFID] industry.”

An example of capitalist “ingenuity” or another insidious invasion of our right to privacy? In 2006, IBM obtained a patent that will be used for tracking and profiling consumers as they move around a store, even if access to commercial databases are strictly limited.

And when it comes tracking and profiling human beings, say for mass extermination at the behest of crazed Nazi ideologues, IBM stands alone. In his groundbreaking 2001 exploration of the enabling technologies for the mass murder of Jews, communists, Roma and gays and lesbians, investigative journalist Edwin Black described in IBM and the Holocaust how, beginning in 1933, IBM and their subsidiaries created technological “solutions” that streamlined the identification of “undesirables” for quick and efficient asset confiscation, deportation, slave labor and eventual annihilation.

In an eerie echo of polices being enacted today against Muslims and left-wing “extremists” by the corrupt Bush regime in their quixotic quest to “keep America safe” in furtherance of capitalist and imperialist goals of global domination, Black writes:

In the upside-down world of the Holocaust, dignified professionals were Hitler’s advance troops. Police officials disregarded their duty in favor of protecting villains and persecuting victims. Lawyers perverted concepts of justice to create anti-Jewish laws. Doctors defiled the art of medicine to perpetrate ghastly experiments and even choose who was healthy enough to be worked to death–and who could be cost-effectively sent to the gas chamber. Scientists and engineers debased their higher calling to devise the instruments and rationales of destruction. And statisticians used their little known but powerful discipline to identify the victims, project and rationalize the benefits of their destruction, organize their persecution, and even audit the efficiency of genocide. Enter IBM and its overseas subsidiaries. (IBM and the Holocaust: The Strategic Alliance Between Nazi Germany and America’s Most Powerful Corporation, New York: Crown Publishers, 2001, pp. 7-8)

As security and privacy analyst Katherine Albrecht writes describing IBM’s patented “Identification and Tracking of Persons Using RFID-Tagged Items in Store Environments,”

…chillingly details RFID’s potential for surveillance in a world where networked RFID readers called “person tracking units” would be incorporated virtually everywhere people go–in “shopping malls, airports, train stations, bus stations, elevators, trains, airplanes, restrooms, sports arenas, libraries, theaters, [and] museums”–to closely monitor people’s movements. (“How RFID Tags Could Be Used to Track Unsuspecting People,” Scientific American, August 21, 2008)

According to the patent cited by Albrecht, as an individual moves around a store, or a city center, an “RFID tag scanner located [in the desired tracking location]… scans the RFID tags on [a] person…. As that person moves around the store, different RFID tag scanners located throughout the store can pick up radio signals from the RFID tags carried on that person and the movement of that person is tracked based on these detections…. The person tracking unit may keep records of different locations where the person has visited, as well as the visitation times.”

Even if no personal data are stored in the RFID tag, this doesn’t present a problem IBM explains, because “the personal information will be obtained when the person uses his or her credit card, bank card, shopper card or the like.” As Albrecht avers, the link between the unique RFID number and a person’s identity “needs to be made only once for the card to serve as a proxy for the person thereafter.” With the wholesale introduction of RFID chipped passports and driver’s licenses, the capitalist panoptic state is quickly–and quietly–falling into place.

If America’s main trading partner and sometime geopolitical rival in the looting of world resources, China, is any indication of the direction near future surveillance technologies are being driven by the “miracle of the market,” the curtain on privacy and individual rights is rapidly drawing to a close. Albrecht writes,

China’s national ID cards, for instance, are encoded with what most people would consider a shocking amount of personal information, including health and reproductive history, employment status, religion, ethnicity and even the name and phone number of each cardholder’s landlord. More ominous still, the cards are part of a larger project to blanket Chinese cities with state-of-the-art surveillance technologies. Michael Lin, a vice president for China Public Security Technology, a private company providing the RFID cards for the program, unflinchingly described them to the New York Times as “a way for the government to control the population in the future.” And even if other governments do not take advantage of the surveillance potential inherent in the new ID cards, ample evidence suggests that data-hungry corporations will.

I would disagree with Albrecht on one salient point: governments, particularly the crazed, corporate-controlled grifters holding down the fort in Washington, most certainly will take advantage of RFID’s surveillance potential.

In 2005 for example, the Senate Republican High Tech Task force praised RFID applications as “exciting new technologies” with “tremendous promise for our economy.” In this spirit, they vowed to “protect” RFID from regulation and legislation. Needless to say, the track record of timid Democrats is hardly any better when it comes to defending privacy rights or something as “quaint” as the Constitution.

Under conditions of a looming economic meltdown, rising unemployment, staggering debt, the collapse of financial markets and continuing wars and occupations in Iraq and Afghanistan, U.S. imperialism, in order to shore up its crumbling empire, will continue to import totalitarian methods of rule employed in its “global war on terror” onto the home front.

The introduction of RFID-chipped passports and driver’s licenses for the mass surveillance and political repression of the American people arises within this context.

Tom Burghardt is a researcher and activist based in the San Francisco Bay Area. In addition to publishing in Covert Action Quarterly, Love & Rage and Antifa Forum, he is the editor of Police State America: U.S. Military “Civil Disturbance” Planning, distributed by AK Press.