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Chemistry of a Dysfunctional Democracy

The Chemistry of a Dysfunctional Democracy

By Allen J Duffis
Published: November 6, 2008

 
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'The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt. People must again learn to work, instead of living on public assistance.' 

 Cicero, 55 BC

'I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.'

 Thomas Jefferson 1802

The Perpetual American Dilemma

As a race, we humans are incredibly adept in our developed ability to make true and witty observations of everyday fact - about our society and ourselves as a people, yet have managed to be equally clever in the avoidance of the lessons they teach. And we are particularly scrupulous as a society to make absolutely certain that, for the most part; we never apply those lessons to our political system or play any part in our choice of leaders.

The most telling example is the following English language idiom whose origin is traced back to the French revolution - "Let them eat cake.":

"You can't eat your cake and have it too."

Which was expressed well for the purpose of present day political connotation in the 19th century quotation :

I saw a man chasing the horizon; Round and round they sped.

I was disturbed at this; I accosted the man.

"It is futile," I said, "You can never---"

"You lie," he cried, And ran on.

Stephen Crane (1871-1900)

These two literary quotes well describe the American mentality of wanting government services beyond those provided at this nation's inception, but not wanting to contribute for their provision any more than they did at that very time. And this unreasonable desire has continually driven them to seek out a Messiah who will provide this unattainable goal: big government and low or no taxation. Well good people, there is no such thing - so get used to the fact.

Materialism vs. Morality

"The higher the buildings, the lower the morality."

Noel Coward (1899-1973)

Regardless of how the American presidential race ends or who is sworn in as the new commander in chief on January 20, 2009, one glaring fact is patently clear: our Constitutional system of Democracy fueled by Capitalism is badly broken. And the only real question that remains of any valid issue - is the damage irreparable, or can it be repaired? In other words, can Capitalism rein supreme in the United States - ever again?

As a nation we have broken down on so many levels it becomes a daunting task to categorize the specific levels, but the most important are that of family unity, personal morality, education, infant mortality and general medical care.

Added to these obvious ills are the ones highlighted in everyday life by our newspapers and the media in general such as: an unhealthy percentage of Americas are loath to keep a gun in the house, for fear their offspring in a moment of anger will use it against them. And moral matters continue to decline on other social fronts as well.

A rapidly increasing percentage of Americans (both young and of a 'should know better age') leave the scene of an automobile accident, and instead of calling for help for their victims, either head home to parents seeking protection and false witness or call a lawyer. We also find ourselves living in an America where young mothers microwave their babies because they won't stop crying. And more and more cases of sexual affairs between high school and junior high school students and their teachers surface everyday, in intensity approaching a level of routine behavior.

Nor can we, or should we, ignore or forget the ever growing illicit drug use at all age levels of our population, that has become so prolific it now affects our athletes, from high schools to the professional leagues of all sports. Cheating is now not a mater of betrayal of honor, but simply - not getting caught.

Rush to Wealth - Dash to Madness

No one can build his security upon the nobleness of another person.

Willa Cather (1873-1947)

No truer outcome could have sanctified the words of famed American author Willa Cather, than the worldwide economic meltdown that has taken place, and which continues to bedazzle the egos and spirits of those modern day wizards who previously proclaimed their ability to forecast the trends of the stock market. Yet I am not a financial wizard, but I too saw it coming, most likely because I had my mind open to possibilities and the wise words of intelligent non-wizards.

I was attending a Brooklyn New York college in 1962, when I found myself in a position of having to wait for a girlfriend to exit her economics class lecture. The speaker on that rainy evening was a visiting industrial economics expert, whose name has long escaped my memory. However, by this circumstance of chance and timing, as a means of killing time I would be afforded the good fortune to, unexpectedly, audit his lecture.

Looking back, I now realize just how fortunate I was for this 'serendipitous moment in time.' I do not remember the name of this tall, unassuming crew-cut gentleman, but his words and thoughts are forever seared into my mind. I instinctively knew it was important, even though at the time, honestly, I did not know the underlying reasons why: it was just an unexplainable feeling.

The gist of what this unknown sage of almost half a century ago stated (to the best of my recollection) was the following:

He said that after World War ll, Americans rapidly gained to a great degree the fabled American Dream: the suburban home, the FDR promised two car garage - with two cars - and a chicken in every pot. But he stated, that would all soon end in the next 20 years or so. And I do remember these most disturbing words from this memorizing stranger:

"As soon as industry finds a way to reliably calculate to the penny the actual cost of the human workforce they employ, as they do the raw materials of their production (via the coming computer age), they will stealthily begin to institute a major downloading (aka downsizing) of the their numbers. And as more and more automatic systems come into play (like the ATM), that download will increase at alarming speed.

In time, the Middle Class will find itself destitute and scrambling for low-pay jobs (Minimum Wage) to keep afloat."

He then went on to describe how the level of the American Lifestyle that was achieved after WW ll, would be rapidly whittled away by a cost conscious and profit driven national corporate structure.

When queried by one of the students present as to what the government would or could do to stop such a devastating cost-cutting onslaught on the American Middle Class, the prophesying visiting lecturer fell lame:

"There will be virtually nothing they can do to stop private industry in their pursuit of greater profit and operating efficacy," he said. "When the moment comes they will be powerless to act. For should they attempt to do as FDR did during the Great Depression, their efforts would be regarded as attempts at privatization and socialism. And no matter what difficulty they were undergoing, the American public would never allow such a process to take place."

I might add here that most of the class appeared to regard his lecture as some sort of economic doomsday science fiction scenario. As far as I could tell, very few of them, as evidenced their random remarks, took his moving verbal essay seriously. And even though it disturbed me a bit from that very aspect, because, I was an avid fan of well thought out science fiction, Still I too found certain aspects of his predictions - not quite acceptable.

One point in particular that seemed almost unbelievable to me, was that the Federal Government would stand by and do absolutely nothing as such a massive disaster was delivered upon an unsuspecting Middle Class.

Of course, neither that lecturer nor I appeared to visit the possibility that the government would be in cahoots with industry in such a scheme. But then again, it was the early 1960's, the "Adventures of Ozzi and Harriet" and "Leave It to Beaver" (the icons of the American Dream) were still popular shows on television. And at the time when we should have been worried, the future ahead appeared, to all intents and purposes, quite rosy. But in the boardrooms of corporate America, they were planning for our future.

At the Abyss of Class Warfare

"We can have a democracy or we can have great wealth concentrated in the hands of the few. We cannot have both."

Supreme Court Justice Louis Brandeis (1856-1941)

So clear and wise was that potent observation by Justice Brandies', we have to wonder why so many within the wealthy ruling class refuse believe it. Yes, there are many in our upwardly mobile society, including an unhealthy percentage of the Middle and Upper Middle Income (often regarding themselves as 'pretenders to the throne in waiting'), who view the justice's words as a sort of - socialist proclamation.

In fact, this limited yet powerful group in loose alliance, regard any outlook that threatens their financial wealth or right to gain such, as provocative revolutionary banter. And in other centuries and lands they manage to ban such rhetoric by alliance with the ruling monarchies and often the wealthy church. But in this land called America, the peasants once had the to form a democracy, firmly tied to a designed to be unbreakable document called a - Constitution.

And here we are, once again about to tread the almost certain road to social upheaval and destruction, by following in the bloody tracks of the French Revolution, the Russian Revolution and the Cuban Revolution. That little speck we can barely see in the not so far distance is a event in the dusk of history called - Class Warfare.

This time, however, it is not a disaster to be suffered by America alone, for virtually all of the developing countries have managed to work their economic woes into a social crag mire of their own. They have all tasted of the fruit of the Capitalism Tree - which allowed them to first gorge and, in the end, be poisoned by it.

Irrational Comparisons as Social Ethic

"The Americans make the Negro shine their shoes, then deride him because he's a bootblack."

Mark Twain (1835-1910)

How often do we hear those who are either well off or doing well economically use the term in reference to those who are not as - 'needing to pull their bootstraps up?'

Well for those who are not aware of it, the term is often taken out of historical context. In the days of Charles Dickens, those within their own economic rank, in reference to their peers, employed such a term. . And it was a good comparative reference, since the poor at the time believed in taking care of their own problems and not relying on the largess of others. After all, as hard and disgusting as some available jobs were, there was always work for those willing to take it on.

Unfortunately, that is not the case today, for we have developed into a society where those who are doing well pass cruel judgment down upon those who have fallen. And when those former economic peers ask for a hand up, they are accused to asking for some form of socialized welfare. Of course, those of us with our intellects and moral minds open know that this is not true. We as a supposed united nation have evolved to a radically different plane of daily existence in today's America.

Quite simply put, there are virtually no jobs to support the Middle Class American family in the modest 1950's to late 1960's styles they had rightfully become accustomed to. And that fact holds be they Lower or Upper Income Middle Class.

In short, both adults in an average two adult and one child household of the lower and 'middle'- Middle Class, have to work the equivalent of two low income jobs (one full-time and one part-time), just to make ends meet to maintain the lifestyle they managed to afford in the late 1950's to the late 1980's. These Americans now constitute the rapidly growing population of the - American Working Poor.

This rapidly accelerating sub-economic population and voting block is very angry, and they have every right to be so. Dutifully, they have sent their sons and daughters off to fight two useless wars (Vietnam and Iraq), worked hard at their jobs, paid their taxes and sacrificed to buy their homes and to educate their children.

Now they are being told that they shouldn't be living in the homes they worked and saved to own because - they can't afford them. They are being told that if they can't afford to pay for their grandchildren's' education, they are obligated to go into debt for life. They are told that even though their own government borrowed endlessly from the Social Security Trust Fund to the tune of a 3.3 Trillion dollar debt, the federal government is not obligated to repay that legitimate debt. And to add insult to injury, even though they have been paying into the Social Security System their entire working lives, they now stand accused of being part of an entitlement system that is really a Ponzi scheme.

While at the same time - in plain sight - they see a government not willing to pay back Social Security, or come to the rescue of strapped homeowners. But instead one that is willing to bail out the crooks and charlatans of Wall Street to the tune of $750 billion and growing.

ow can these people be asked to pull up their bootstraps? They have all they can do to remain afloat financially in this great Capitalist Empire we call - present day America.

Another of Twain's quotes that is appropriate for the times we live in is as follows:

"The Radical of one century is the Conservative of the next. The Radical invents the views. When he has worn them out the conservative adopts them."

In reflection of that Mark Twain quote, so goes the history of America. The Founding Fathers were by all standards Liberals: in those days referred to as - Free Thinkers. They defied conventions that had been held for centuries under the false yoke of tradition, and in doing so they created what is probably the greatest humanitarian document in the history of the human race the - Constitution of the United States of America.

Knowing however that such a fragile document of workable ideals would require the greatest of protection from the temptations of both a citizenry and their government, the Forefathers almost immediately became Conservatives.

Clearly they set a standard: it takes both sides of the political isle to make a workable democracy. And that is a lesson we as Americans appear to reject time and time again.

In the Final Analysis

"Neither a Borrower, Lender nor Mortgage Seeker Be."

The American Banking System (2007-???)

The most deadly lasting affect of the George Bush Jr. era, will be the as yet un sated appetite for 'Middle Class economic blood' among those who presently occupy the boardrooms of Corporate America. Despite all that has taken place during the Economic Meltdown, these sharks would still like to get their hands on the funds available in the Social Security Trust.

They harbor the exact same feeding frenzy mentality the medieval kings and princes of old held for the peasantry in landlocked bondage under them, who they sometimes referred to as - their people - more as a point of ownership than as an equality of citizenry.

In a span of approximately 45 years (1945-1995) we in the United States have manage to achieve the American Dream and then - lose it. And the blame for this loss is split between the Federally Elected Ruling Class - Congress, and the voting populous in a relative ratio of 66-33: 66 percent on Congress and 33 percent on the voting public.

What we have allowed to develop in this crucible of democracy is a race of 'educated fools.' For far too many see in this miraculous gift of self government, nothing more than a shallow opportunity to vent their personal prejudices, be they cultural, racial or religious, upon their fellow man and woman.- via a Vote.

One final point of historical importance concerns the highly heralded - youth vote. Historically, youth as a political movement and force has an incredibly tragic and quite often bloody history. It is wise to remember that Russia's Joseph Stalin, Germany's Adolph Hitler, Communist China's Mao Tse-Tung, Cuba's Fidel Castro and Venezuela's Hugo Chavez, among others, were ushered into office and the power by a wave of predominately youth driven movements. All of these men (initially including Hitler) possessing charismatic and ingratiating character appeal and mesmerizing speech making capabilities, rode into power behind a Socialist banner and almost immediately began making sweeping changes to their country's political and social landscape.

Think about those statistics for a moment and digest their implications carefully. In retrospect, when afforded the opportunity by history, very much enamored with ideals, youth has chosen very badly just about every time they have been handed the chance to make a difference in a society.

Now we have a new totally untested and inexperienced president, Barack Obama, who leans very much to the Liberal Left - almost to the point of positioning himself horizontal to a Socialist discipline. He has a charismatic personality that is ingratiating, and possesses a memorizing speech making capability. And he has advocated the making of sweeping changes to the American political and social landscape.

A scary comparison of historic parallels - isn't it?

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Conservatives Blame Working People for Economy


ACCORDING TO CONSERVATIVES - WORKING PEOPLE CAUSED PROBLEM ECONOMY
 
By: Allen J. Duffis
 
Published: December 7, 2008



"Conservatives define themselves in terms of what they oppose."

Columnist - George Will

Keeping in mind that there is no such entity, human or otherwise, that can actually be called a - Real Conservative, ask yourself the following question: Who are these people who call themselves - Conservatives? And most important, why do they hate the - American Working Class?

"Unemployment is still below 7 percent; it was around 25 percent when Franklin Roosevelt became president. Less than 20 banks have failed, not the 4,000 that went under in the first part of 1933."

Hoover Institution historian - Victor Davis Hanson

"One of the weirdest, most perceptually jarring things about the economic crisis is that everything looks the same. We are told every day and in every news venue that we are in Great Depression II, that we are in a crisis, a cataclysm, a meltdown, the credit crunch from hell, that we will lose millions of jobs, and that the great abundance is over and may never return... And yet when you free yourself from media and go outside for a walk, everything looks . . . the same." --Wall Street Journal columnist Peggy Noonan.

Wall Street Journal columnist - Peggy Noonan

One has to inquire in absolute astonishment, where the hell is this woman walking - New York City's Park Avenue?

As best that can determine, for the most part, this disassociated group appears to be a casual alliance of the well off high income or retirement secured upper Middle Class inhabitants. And they have long demonstrated a tendency to favor, over and above the average American citizen, the 'power elite' of industry, commerce and finance - in all matters economic. As of late however, a cold sobriety is seeping into the psyche of many of these, hither to - Real 'Conservatives'.

Quite suddenly, however, in rapidly increasing numbers, many have come to realize that they too are sailing on the U.S. Economy Titanic. They are coming to the realization that they may share a common bond with the Working Man and Woman in steerage: And they are even more surprised that the ship's captain and officers, whose actions and decisions they have loyally defended for decades, can clearly be seen sailing off into the horizon on more economically sturdy vessels - that their pensions and retirement savings may have paid for.

How Do We Fault Thee? Let Us Count the Ways

If we organize this litany of cause and effect and the American Worker, it goes something like this:

(1) - Banks and Mortgage Finance companies and their agents who knowingly wrote balloon mortgages for Lower Middle and Middle Income Working People (for homes they would eventually not be able to afford - because of the balloons) - were not the cause of the - Housing Meltdown. It was the Working Class Home buyers who should have known they couldn't afford those homes.

(2) - Americans were given a stimulus package by the Bush administration to aid the economy, but most used it to pay exorbitant credit card interest and finance charges, medical bills and mortgage payments that were overdue. Therefore, it was the - fault of the Working Classes that the stimulus package did not work as intended!

(3) - Working Class Americans purchasing ‘gas guzzlers’ from Detroit brought on the fuel crisis. Clearly it was - not the fault - of the auto industry for manufacturing 'gas guzzlers' to the exclusion of all else.

(4) - The crisis in the auto industry was brought on by Working Class Americans who - not being able to afford to buy or run these high priced, heavy fuel consumption cars, suddenly, without warning, began refusing to buy them from Detroit. Obviously, the auto slump had nothing to do with the fact that Big Three, in the face of many warning signs - for decades, continued to manufacture inefficient cars that were not suited for the times.

Need we go on?

None Dare Call It Theft

The following are editorial examples (from both Liberal and Conservative news sources), of the people Conservatives stubbornly backed right to the end of illusion to the edge hard edge of reality:

As mortgages went bad, executives cashed out''

By William Heisel - Los Angeles Times
November 26, 2008

The subprime lending industry was starting to buckle under the weight of bad loans in November 2006, when executives at Irvine-based New Century Financial Corp. held a conference call to release their latest earnings.

Loan volume was down and defaults were up, the earnings report showed, and in recent weeks at least five stock analysts had downgraded the company's shares. Moreover, four executives had sold nearly $20 million in stock in the last four months, six times as much as they had sold over the previous 12 months. That led one analyst to ask whether there was anything investors should know.

"It's just part of their personal financial diversification plan," Chief Executive Brad A. Morrice said in response to the question during the Nov. 2 earnings call.

Those executive stock sales, however, have emerged as a central element in the Justice Department's criminal investigation of New Century, according to a person familiar with the inquiry who was not authorized to speak publicly.

Bloombergnews.com

November 26, 2008

AIG Gives ‘Retention’ Pay After Scrapping Bonuses

By Hugh Son

 

Nov. 26 (Bloomberg) -- American International Group, Inc.,the insurer that said yesterday it scrapped bonuses for top executives after a U.S. bailout, will still pay 130 managers “cash awards” to stay with the firm, including $3 million to retirement services chief J. Wintrob.

“The expectation from the public and Congress was that they weren't getting bonuses, not that they’d be pushed off by several months,” said David Schmidt, a consultant at executive pay firm James F. Reda & Associates...

Having It All and Begging for More

Auto industry CEO's took the outrage up a notch, by staying in amazing hotels and having chauffeurs in DC.  Back home they have executive dining areas, perks and bonuses that are ridiculous.  Bonuses are generally given to employees who’ve done a good job.  They’re being given $100 Million in bonuses for doing a bad job. And in a plea to congress for billions of taxpayers money, they had the unmitigated gall to arrive - on three private jets. 

This prompted one congressperson to ask them, “Could you not have downgraded to First Class?  Or even jet-pooled?” 

Among the three of them, they best reply they could come up with was - personal security concerns. And from whom do they require this extraordinary level of security - taxpayers'?


How Wrong Can Conservative's Trust of Wall Street Be?

If one harbors any doubt that Conservatives want it both ways and in the middle too, consider carefully the following three editorials:

Fannie Mae Eases Credit To Aid Mortgage Lending

By STEVEN A. HOLMES

Published September 30, 1999

In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.

 

The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.

Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.

''Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements,'' said Franklin D. Raines, Fannie Mae's chairman and chief executive officer. ''Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.''

''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.''

---------------------------------------------------------

All of the 'so called experts' (mainly of a Conservative mind set), had experienced the S&L mess of the 1980's. Therefore, we are moved to ask, if they could forecast the possible danger coming - why let it happen?

President Bill Clinton presided over the repeal of the Glass-Steagall Act of 1933, which had prevented the coupling of investment banking and lending. To be exact, on November 12, 1999 Clinton signed into law the Republican initiated Gramm-Leach-Bliley Act. Economists have long criticized this action.

Phil Graham (R) inserted the mortgage lending deregulation into legislation at the last minute. It passed a Republican-controlled Congress with veto-proof majorities in both houses. However, It was not just the lending rules that led to this meltdown status. It was the ability of the deregulated financing and banking system to bundle high-risk loans into securities, mixed with good loans, and to trade them, unregulated, as securities that led to this mess.

For untold decades, the Conservative search for the Economic Holy Grail started and ended at Wall Street. The ideal of 'unrestrained capitalism' was the magic kingdom, and those 'entrusted' to run the financial institutions and major corporations were the kings.

In light of what we now know, consider the following excerpts from a glowing economic appraisal printed in the countries leading - Conservative Oriented - financial newspaper as late as January of 2008:

January 28,2008

The Wall Street Journal

The Economy Is Fine (Really)

By Brian Wesbury

"It is hard to imagine any time in history when such rampant pessimism about the economy has existed with so little evidence of serious trouble."

Then after two pages of impressive statistics to back up his point, Mr. Wesbury goes on to state:

"The good news is that the U.S. financial system is not as fragile as many pundits suggest. Nor is the economy showing anything other than normal signs of stress." And he goes on to add; "Initial unemployment claims, a very consist ant canary in the coal mine for recessions, are nowhere near a level of concern."

Wesbury ends the piece with the following fully quoted paragraph:

"Because all debt rests on a foundation of real economic activity, and the economy is still resilient, the current red alert about a crashing house of cards looks like another false alarm. Warren Buffet, Wilbur Ross and the Bank of America are buying, and there is still $1.1 trillion in corporate cash on the books. The bench of potential buyers on the sidelines is deep and strong. Dow 15,000 looks much more likely than Dow 10,000. Keep the faith and stay invested. It's a wonderful buying opportunity."

Now contrast Mr. Westbury's viewpoints (he is chief economist for First Trust Portfolios, L.P.), with today's reality as reflected in the following news article of late:

Economic Signs Point to Longer, Deeper Recession

Decline Began a Year Ago, Experts Declare; Wall Street Reacts With Huge Sell-Off

By Neil Irwin

Washington Post Staff Writer
Tuesday, December 2, 2008

The U.S. economy entered a recession one year ago, a group of the nation's leading economists said yesterday, and new evidence that the downturn will be deep and prolonged sent the stock market plummeting.

So the economy is just fine. Really Mr. Westbury!!!

Kings Go Forth

Corporate Croesus

Published: April 8, 2008

As accustomed as we are to the other-worldly rewards lavished on captains of finance and industry, it is still galling that the chiefs managed to finagle a raise last year as many of the companies they led were in trouble.

A study published on Sunday by The Times of many of the biggest companies found that chief executives who had held their jobs for at least two years got an average pay increase of 5 percent last year, despite poor results at many of their companies.

Net income at Office Depot fell 23 percent last year compared with 2006; its share price fell 64 percent. Steve Odland, its chief, made nearly $18 million all told — some 85 percent more than in 2006. With the share price of Toll Brothers, the luxury homebuilder, plummeting, it seems reasonable that Robert Toll, its chief, got no bonus. Still, the company took steps to ensure that he gets one this year, even if home-building doesn't recover.

It’s hard to square the conceit that chief executives are rewarded for improving companies’ performance with the fact that chiefs at 10 financial-services firms in the study made $320 million last year, even as their banks reported mortgage-related losses of $55 billion.

Meanwhile, the average earnings of typical workers have failed to keep up with inflation in four of the past five years. According to the economists Emmanuel Saez of the University of California, Berkeley, and Thomas Piketty of the Paris School of Economics, average incomes in the highest-earning 1 percent of the United States grew 11 percent year-over-year between 2002 and 2006. Incomes in the bottom 99 percent grew by 0.9 percent annually over the period. This year looks bad, too.

This polarization is producing a pattern of income distribution rarely seen outside Africa or Latin America, and unheard of in the United States, at least since the gilded age. In 2006, the 15,000 families in the top 0.01 percent of the income distribution — earning at least $10.7 million apiece — pocketed 3.48 percent of the nation’s total income, double their share in 1993.

This polarization is producing a pattern of income distribution rarely seen outside Africa or Latin America, and unheard of in the United States, at least since the gilded age. In 2006, the 15,000 families in the top 0.01 percent of the income distribution — earning at least $10.7 million apiece — pocketed 3.48 percent of the nation’s total income, double their share in 1993.

----------------------------------------------------

America’s CEO's are raking in the big bucks and leaving shareholders and workers to pay the tab. The median year-on-year total CEO pay rose 30 percent in 2004. The average increase was a whopping 91 percent, according to researchers at the Corporate Library. They predicted total CEO pay to increase another 30 percent in 2005, too. The ratio of average CEO pay to production worker pay jumped from 301-to-1 in 2003 to 431-to-1 in 2004.

It’s also bonus time for the big players. How about a $11.5 million bonus for Morgan Stanley CEO John Mack for just five months on the job, or $38 million for Goldman Sachs CEO Henry Paulson? He only got a $30 million bonus in 2004.

Have you started thinking about paying your taxes for 2008? It would be a no-brainer if you were a big CEO. The new rage in hidden CEO perks is “gross-ups.” More than half of the nation’s largest companies now give their top executives extra money, or gross-ups, to cover personal taxes on corporate perks and other income

If the United States is to continue to embrace globalization, technological innovation and other forces that contribute to economic growth, it has to share the spoils better.

Where Have Conservatives Gone Wrong?

Long before Ronald Reagan made the term a household expression, Conservatives fervently believed in some form of - trickle down theory, and in some ways, appeared to have linked it with Christianity: God is good and so is Capitalism. We now we know that outlook to be flawed!

Trickle down did not work as expected and very few of the working class (Low Income Working Poor and upwardly striving Middle Class) got wet or decently - damp. But at this late date, in spite of the economic turmoil we are going through as a country, there are still some Conservatives out there trying to catch the old comfortable - Capitalism Horizon.

In the interim, they have taken to blaming all of our current problems on the nation's working citizens. Shame on all of you!

You have refused to recognize that Capitalism is only a tool - not a religion. Its sole purpose being to assist a nation's citizens: all of its citizens. As we have to employ manure to make flowers and vegetables grow, we are required to mix capitalism with carefully controlled portions of other disciplines, some like the manure we may not like.

Yes, Social Security is a form of Socialism - but it has successfully kept millions of Americans out of economic depravation when they become too old to work, but have never earned enough to save up for a decent retirement.

Yes, our massive state police forces are a form of Fascism - but they have managed to keep our society in a state of order because of constitutionally dictated laws.

Yes, we do need Capitalism - for this country could not have built itself up to be the giant among nations that it has become without it.

Unfortunately, single-minded Conservatives, have allowed the corporate agents of profit to be free of morality, thereby corrupting this magic mixture. They gave free reign to the power brokers who are no more than - 'Dollar Patriots': They have arrogantly demonstrated that they don't give a damn about this country - or its people.

They view their mission as one of delivering ever-increasing dividends to stockholders, while excessively filling their own pockets. When the end does come, they bail out of an eroding economy with lucrative Golden Parachutes.

My Conservative brethren, the Working People of this country, who send their sons and daughters off to fight our wars, should be your heroes - not the Wall Street hucksters! Change your ways and your pilot philosophies - now!

 

© Copyright 2005-2008 Allen J. Duffis.All rights reserved.

 

 

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US-ISRAEL ATTACK ON IRAN:WHAT POSSIBILITIE?

U.S. - Israel Attack On Iran: What Outcome Possibilities?

By Allen J Duffis
Published: May18, 2008

 

May 12,2008
Spread of Nuclear Capability Is Feared
By Joby Warrick
Washington Post Staff Writer

VIENNA -- At least 40 developing countries from the Persian Gulf region to Latin America have recently approached U.N. officials here to signal interest in starting nuclear power programs, a trend that concerned proliferation experts say could provide the building blocks of nuclear arsenals in some of those nations.

At least half a dozen countries have also said in the past four years that they are specifically planning to conduct enrichment or reprocessing of nuclear fuel, a prospect that could dramatically expand the global supply of plutonium and enriched uranium, according to U.S. and international nuclear officials and arms-control experts.

Much of the new interest is driven by economic considerations, particu-larly the soaring cost of fossil fuels. But for some Middle Eastern states with ready access to huge stocks of oil or natural gas, such as Kuwait, Saudi Arabia and the United Arab Emirates, the investment in nuclear power appears to be linked partly to concerns about a future regional arms race stoked in part by Iran's alleged interest in such an arsenal, the officials said.

Click HERE to read full story

 

April 26,2008
U.S. Weighing Readiness for Military Action Against Iran
By Ann Scott Tyson
Washington Post Staff Writer

The nation's top military officer said yesterday that the Pentagon is planning for "potential military courses of action" as one of several options against Iran, criticizing what he called the Tehran government's "increasingly lethal and malign influence" in Iraq.

Adm. Michael Mullen, chairman of the Joint Chiefs of Staff, said a conflict with Iran would be "extremely stressing" but not impossible for U.S. forces, pointing to reserve capabilities in the Navy and Air Force.

"It would be a mistake to think that we are out of combat capability," he said at a Pentagon news conference. Speaking of Iran's intentions, Mullen said: "They prefer to see a weak Iraq neighbor. . . . They have expressed long-term goals to be the regional power."

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April 7,2008
Israel warns Iran ahead of 'routine' emergency drill
By CNN.com

JERUSALEM (CNN) -- A day before Israel implements a "routine" emergency drill, an Israeli official Monday said the entire country is at risk of Hezbollah rocket attacks and blamed Iran for "provoking us" by backing the terrorist group.

Israeli Infrastructure Minister Benyamin Ben Eliezer warned against an attack by Iran, which he said is unlikely to happen.

"An Iranian attack will lead to a harsh retaliation by Israel, which will lead to the destruction of the Iranian nation," Ben Eliezer said, pointing out that Iran "will not attack Israel so quickly because they understand the ramifications."

Click HERE to read full story

 

U.S. Casualties of All Wars

Last update: 5/13/2008


Iraq War
(Mar. 18, 2003- )
4077

Afghanistan War
(Oct. 7, 2001- )
501

Persian Gulf War
(1990-1991)
382

Vietnam War
(1964-1975)
58,200

Korean War
(1950-1953)
36,574

World War II
(1941-1945)
405,399

World War I
(1917-1918)
116,516

Spanish-American
War

(1898)
2,446

Civil War
(1861-1865)
Union – 364,511
Confederate Est. – 133,821

Mexican War
(1846-1848)
13,283

War of 1812
(1812-1815)
2,260

Revolutionary War
(1775-1783)
4,435

Russia renews Libyan ties

In one of his last overseas engagements before handing power to his anointed successor Dmitry Medvedev, Russian President Vladimir Putin visited Tripoli at the invitation of Libyan leader Colonel Muammar Ghadaffi in a move that secured bilateral energy and infrastructure deals, while highlighting Russia's wider interest in strengthening its influence in the Mediterranean. The visit on 16-17 April was arranged at short notice and in part appears to have been at the urging of Medvedev (who is still chairman of state-owned gas giant Gazprom's board) and Alexei Miller (its chief executive officer), who are keen to secure access to Libya's significant energy reserves

 

Testing times in Basra

Intense fighting and hundreds of deserting soldiers gave the impression that Iraqi Prime Minister Nouri al-Maliki had badly misjudged the strength of the Mahdi Army when he launched Operation Saulat al-Fursan (Charge of the Knights) on 25 March. The steep decline in violence that followed Moqtada al-Sadr's 30 March call for the Mahdi Army to disperse suggested the young Shia firebrand can effectively control the disorderly militias affiliated to his Sadrist movement

 

Weak dollar is causing 'desperation' in Europe

The weakness of the US dollar will "inevitably lead to a massive relocation of aerospace production capabilities [and] technology centres to US dollar-priced locations", the chief executive officers of Europe's leading defence and aerospace groups have warned. The executives - represented by the Aerospace and Defence (ASD) Council - said on 21 April that the "necessary step" of relocation to dollar zones (where labour costs are "30 to 40 per cent lower than in the euro zone") threatens the future of the "more than 640,000 highly skilled workers and engineers currently employed by European aerospace and defence companies"

 

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"So? What's your point?"

Response by Vice President Dick Cheney in a recent televised interview, when asked about the 4000 plus American service men and women who were killed in combat in Iraq.

It Should Not Happen...But It May

I have long held the opinion that the Bush administration will make a military strike upon Iran before they leave the White House. That feeling has grown not only within my own consciousness, but in the trusted viewpoints of many knowledgeable and experienced individuals of the world scene - including the Iranians.

For a nervous Israel, watching the Iranians increase their nuclear capability, the window of opportunity is closing rapidly. At present they have in the palm of their hands a lame duck president who desperately wants to leave a positive legacy of some kind. Also, they are astute enough to realize that it is highly unlikely an incoming U.S.president, Democratic or Republican, will have the desire or backing to assist in another risky Mideast venture between two ongoing wars. And where else could the Neocons and the Israelis find such an Oval Office ally with a ruthless and callous disregard for human life, as they have in Vice President Dick Cheney?

Just how this will be done is open to speculation, but the corridor of possibilities is very narrow, as is the possibilities for world-wide consequences great. Options for an effective attack to knock out all or a significant portion of Iran's advanced nuclear facilities are limited and, from different perspectives, - the Israelis and the Iranians know this.

On the other hand, the Iranian capability to inflict significant 'next door' damage to our 'sitting duck' forces in Iraq is nothing to take lightly. What concerns most observers of the perilous brew taking place, however, is what comes along in the wake of such an attack on Iran? And, most of all, what comes at the end of the lull of a quick victory? In the end, it may come down to winning the battle and losing the war - again.

Why Suspicions of an Attack on Iran?

Strong indications of something significant is about to take place in the region have been exposed in recent news stories, and when strung together the revelations paint a disturbing picture.

March 12, 2008 - The USS Carl Vinson is headed towards the Middle-East. This will be the first time since February 2004 that US will have three major carrier groups stationed on and around Middle East. The move was announced by the Pentagon as a formidable strike force, in readiness, for operations against Iran and Syria who are in defiance on issues of Lebanon and Nuclear weapons development.

March 22, 2008 - Army Gen. David Petraeus, the top U.S. commander in Iraq, has been chosen to become chief of U.S. Central Command.

March 22 2008 - Vice President Dick Cheney visits Israel. Supposedly, the US vice president was to focus in Israel on "ways forward in the Israeli-Palestinian peace process and Israel's right to defend itself against terrorism and protect its citizenry," said spokeswoman Lea Anne McBride.

April 8, 2008 - A day before Israel implements a "routine" emergency drill, Israeli Infrastructure Minister Benjamin Ben Eliezer warned against an attack by Iran, which he said is unlikely to happen. Ben Eliezer stressed, however, that the nationwide emergency drill "is not aimed at threatening any of the countries surrounding us." But he offered a bleak scenario for Israel in the face of a future war.

"I predict that in the opening strike, hundreds of rockets will land in Israel," Ben Eliezer said. "There will not be a place in the country out of the range of the missiles and rockets of Syria and Hezbollah."

The real possibilities of a war with Iran, initiated by the U.S. in conjunction with Israel, are best expressed by the following recent publication from a reliable source:

A pre-election attack on Iran remains a possibility

February 05, 2008

By Leon Hadar

Leon T. Hadar is a research fellow at the Cato Institute, specializing in foreign policy, international trade, the Middle East, and South and East Asia.

"President Bush still believes the Iranians are developing nuclear weapons – and so do the Israelis. So for journalists to assume that neither the U.S. nor Israel will attack Iran before the November election could constitute another failure of imagination."

Cato’s Leon Hadar suggests questions the press should ask the presidential candidates about what they think the American response should be to various scenarios in the region – including a Gulf-of-Tonkin-like alleged provocation."

Influential Op Ed columnist David Ignatius also had written on this looming possibility of a war with Iran, before the Bush administration vacates the Oval Office. In a May 8, 2005 editorial in the Washington Post he made the following remark:

"Behind closed doors, we are praying that the Iranians will make a mistake so that you will have a reason to attack." (Click here to read the entire editorial)

Therefore, in the light of what we know about the man, what do you think Vice President Cheney's response would be. if questioned about the possible loss of several thousand more American lives in such a pursuit? I think most of you with clear, nonpartisan minds already know.

"So? What's your point?"

What Might America Gain From Such an Attack?

If the coming scenario holds, it becomes quite clear the Bush administration, after managing to shoot its way into the biggest military fiasco of this country's history, now feels it can shoot its way out - by shooting us into another boondoggle of equal or possibly greater proportions.

One point should be made crystal clear at this juncture of discussion. If we attack Iran, or we in any way assist Israel in an attack, we will be officially at war with Iran. So any planning of such a venture should take into serious consideration, from the very onset, that the Iranians have strong diplomatic and trade allies in the world. And although they may not come to their immediate aid in a shooting war - there are other steps they can take afterward that will, for some considerable time afterward, make it very difficult and costly for America.

In the gain column, an attack on Iran would interrupt the flow of weapons to the insurgents in Iraq; note, I said interrupt, not completely stop.

Although I must admit, I have never fully understood this ploy as a morally justifiable option. We have in numerous instances in the past supplied weapons to insurgents in other countries. Let's face it, we are engaged in a war with a country on the border with Iran and - we are the invaders. So why shouldn't they supply that country's citizens (the insurgents) with weapons, employing the same reasoning we did for doing the same with the Cuban rebels and the Bay of Pigs invasion?

Secondly, it would slow down the Iranian nuclear program considerably; note again, I said slow down, not completely stop. That's it!

What Are the Risks?

In the loss column, however, the repercussive political and economic debris of such a mindless Middle East adventure is considerably higher.

Iran is the world's fourth largest producer of oil, and is OPEC's second largest producer after Saudi Arabia. Therefore, at this point in the industrialized world's 'oil starved' history, the inevitable a shutoff of that nation's oil in the wake of an attack will have worldwide economic repercussions.

Our actions can possibly achieve what the Arab states have not been able to achieve among themselves, unity. Their leaders may not want it, but their large populations may demand it as retribution for such an attack.

Already the Venezuelans under the leadership of Hugo Chavez has hinted of the pursuit of nuclear weaponry. Such a massive attack - once again - on a sovereign nation that did not attack us, could fuel such ambitions in other countries with the resources to pursue them.

Finally, it should be remembered by all war hawks that the Russian government is an Iran backer, and is heavily involved in the Iranian nuclear program. Not only did they construct two of the main reactors that would be a prime target in any bombing raid, but at present there are hundreds of Russian technicians on the ground in Iran, heavily involved in reactor construction and maintenance training. And being it highly unlikely the Israelis or Americans will risk losing the critical key to success of an air assault (the element of surprise), more than likely many Russian personnel will be casualties of the attack.

Therefore, one must keep in mind that the Cold War between the U.S. and Russia is making a slow comeback, and the Russian state is still recovering from their humiliating ouster by former client, Egypt, and their military's embarrassing defeat in Afghanistan. Since these setbacks in the region, the Russians have been determined to establish a new footprint Middle East. Toward this end they have been assisting the Iranians in the construction of Russian designed nuclear power plants, and have made it patently clear they don't intend to be embarrassed in the region again. Obviously, in planning an air attack on Iran, serious consideration must be given to just how severely prestige sensitive Russians might react to so many deaths of their countrymen in a client state.

The Other Side of Armageddon Planning

"If Iran should attack Israel with nuclear weapons, we will obliterate them!"

Remark by Presidential candidate Hillary Clinton

When making such sweeping statements of intent, one is forced into the situation of dealing with the double edged sword immediately given birth to by the words. And in the Middle East this critical point becomes crucial due to the volatile nature of the area, and we are immediately faced with the shadow question such a statement creates:

If Israel, for whatever reasons, should attack Iran with nuclear weapons, will we obliterate them?

In a reverse scenario, however, should the Israelis go after Iran's deeply entrenched underground nuclear facilities, they would have to employ 'bunker busting' bombs. But many experts in such matters regard these bombs, by themselves, as not adequate to the mission. The only sure-fire alternative they suggest is for the Israelis to employ 'low yield nuclear - bunker buster bombs' as the only realistic option.

No matter how one should phrase it, this would mean that nuclear weapons had been used in the Middle East, and the option would then be open for any of the region powers to do the same. In essence, the game will have changed - forever.

If we as a nation seriously intend to leave that first statement on the diplomatic clothesline, then we better damn well have an answer for the second possibility.

For far too long we have dealt with the Middle East factions with two faces; one toward Israel as an undeclared ally, and the other toward the rest of the region as 'oil necessary' potential enemies. We pressure the Arab states and others to sign the Nuclear Nonproliferation Treaty in 1968, intended to prevent the spread of nuclear weapons. Only four countries refused to sign: India, Pakistan, North Korea and Israel. Since that time, we have continually berated all of those countries for not signing the treaty, and actually going ahead and producing nuclear weapons - except Israel. When it comes to Israel's intransigent defiance on this as well as other matters we appear to, as the expression goes, turn a blind eye to their transgressions.

Clearly, any sane inspection of this diplomatically untenable regional approach, masquerading as foreign policy, will immediately ascertain that the status can not be allowed continue. The stakes are now too high.

On the Loose: Israel - The Paranoid Lone Warrior

In the drive to declare the Middle East as a 'Nuclear Free Zone', American foreign policy would appear to desire this state be achieved without any pressure on Israel to comply. But is Israel not, geographically, an integral part of this area of the world, located right smack in the middle of that region? And being fact, it makes no sense diplomatically or otherwise to allow them to have a nuclear deterrent, while demanding the Arab states not do the same.

The Bush administration has already compromised our neutrality (preserved and protected by every president since Truman), by openly committing to defending Israel. To then give them free reign to do whatever they want in the region militarily, knowing their penchant for brash and daring exercises of power, is suicidal for America's long term interests in the region. Why should any Arab leader or state be willing to negotiate with us for any reason, no matter how logical, under such a one-sided foreign policy?

Like it or not, the Israelis have to come to the understanding that, sooner rather than later, one of their Arab nation neighbors - will acquire nuclear weaponry. It's a given.

How many Syrian type nuclear facilities (built with North Korean assistance) can they detect and destroy before one manages to come on line? What happens if the Arabs buy working rights in a foreign reactor, or simply build one in a small neutral country to achieve their aims - like North Korea? It can be done!

Besides which, the 'Islamic Bomb' has already arrived in Pakistan. And with the price of oil spiking ever higher, relatively soon, an oil rich state can simply buy a nuclear weapon on the black market. It can be done!

If they truly want peace, they must come to the realization that it cannot be totally on their terms, there will be a rebirth of Palestine on their borders, and there will be a few other bitter pills to swallow.

First of all, they will never be allowed to keep all of Jerusalem - that important city must become the capital of both Israel and Palestine - at peace.

Secondly, they must be willing to share, equally, the Golan Heights with Syria. And third, like it or not, they must be willing to admit to their Arab neighbors, face to face, the fact that in 1948 they 'stole' the land they are on.

That the world colluded to let them take it as a guilt concession for the 6 million Jews who were put to death during World War ll, or that they had it 2000 years ago will be of no consideration in the final compromise. Other than the proposed option, their only alternative is to accept destruction at the hands of their Arab neighbors - sometime before the end of this century.

In any case, the economic umbrella afforded by the United States is being rapidly depleted by its own needs. Israel simply cannot live with so much of its GDP going to an ever increasing defense structure, or for that matter with an accelerating Arab population evolving within their borders. Time is running out for the Israelis.

What Can We as Citizens Do? - Absolutely Nothing!

Unfortunately, at this present politically precarious moment in time, as our economically and war battered country is caught up in a contentious run up to a presidential election, there is very little the average American can do to stop this coming war with Iran. On the other hand, as the inheritors of a 'lame duck' presidency, the Bush administration is relatively free to do just about anything - with particular reference to starting a third Middle East conflict.

My greatest fear is centered upon the planning phase of such a war. The Bush administration has continually demonstrated a remarkable determination (employing a - stay the course mentality) to plan such ventures totally in their own minds, rather than to a tactically required degree in the minds of their adversaries. Such deficit strategy of planning leaves us wide open to the maximum potentiality of the surprise factor.

What are the Iranians planning? What will can or will they do in response to the attack? We speak hopefully of the resident youth element of Iran, who do not hold the hatred of their seniors toward America. But speak not of their reaction to the deaths of their mothers, fathers, brothers, sisters and other assorted relatives in an American-Israeli air war. May I offer a clue: how did the political and generational adversarial factions within the United States react to 9-11?

We are now engaged in fighting and bleeding, both economically and militarily, on two distant war fronts: America does not need, nor can she tolerate or afford, a third.

 

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