From Rolling Stone
By Matt Taibbi

From Matt Taibbi’s “The Great American Bubble Machine” in Rolling Stone Issue 1082-83.

The first thing you need to know about Goldman Sachs is that it’s everywhere. The world’s most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.

Any attempt to construct a narrative around all the former Goldmanites in influential positions quickly becomes an absurd and pointless exercise, like trying to make a list of everything. What you need to know is the big picture: If America is circling the drain, Goldman Sachs has found a way to be that drain — an extremely unfortunate loophole in the system of Western democratic capitalism, which never foresaw that in a society governed passively by free markets and free elections, organized greed always defeats disorganized democracy.

They achieve this using the same playbook over and over again. The formula is relatively simple: Goldman positions itself in the middle of a speculative bubble, selling investments they know are crap. Then they hoover up vast sums from the middle and lower floors of society with the aid of a crippled and corrupt state that allows it to rewrite the rules in exchange for the relative pennies the bank throws at political patronage. Finally, when it all goes bust, leaving millions of ordinary citizens broke and starving, they begin the entire process over again, riding in to rescue us all by lending us back our own money at interest, selling themselves as men above greed, just a bunch of really smart guys keeping the wheels greased. They’ve been pulling this same stunt over and over since the 1920s — and now they’re preparing to do it again, creating what may be the biggest and most audacious bubble yet.

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From True Blue Liberal
By Joel S. Hirschhorn

In the national debate about health care reform absolutely nothing makes less sense than the positive views of much of the public about private health insurers. There is no good reason to have positive views of private health insurers, the companies that have relentlessly increased the costs for very limited health insurance. Copays, deductibles and premiums have raped those lucky enough to have health insurance while also making it very difficult much of the time to get coverage for all kinds of health problems. The US health care system is unbelievably inefficient, providing far less effective health care for what is incredibly high costs, compared to all other industrialized countries. The main reason is the private health insurance industry.

If you need solid information to believe this view, then consider these facts.

On the cost side, what is the problem? The current private health insurance system is the most costly, wasteful, complicated, and bureaucratic in the world. Its main function is not to provide quality health care for all people but to make huge profits for companies. Private health insurance companies spend an incredible 30 percent of each health care dollar on administration and billing. Thirty cents of every dollar is not going to doctors, nurses, medicine, medical personnel; it is going to bureaucracy and administration plus exorbitant CEO compensation packages, advertising, lobbying, and campaign contributions. More efficient public programs such as Medicare, Medicaid, and the VA are administered for far less money, less than 10 percent.

From 2003 to 2007, the combined profits of the nation’s major health insurance companies increased by 170 percent. William McGuire, the former head of United Health, several years ago, accumulated stock options worth an estimated $1.6 billion; CIGNA CEO Edward Hanway made more than $120 million in the last 5 years. CEO compensation for the top seven health insurance companies now averages $14.2 million. Over the last three decades, the number of insurance administrative personnel has grown by 25 times the number of physicians. Read the rest of this entry »

From Tom Dispatch
By Greg Grandin

The empire ends with a pull out. Not, as many supposed a few years ago, from Iraq. There, as well as in Afghanistan, we are mulishly staying the course, come what may, trapped in the biggest of all the “too-big-to-fail” boondoggles. But from Detroit.

Of course, the real evacuation of the Motor City began decades ago, when Ford, General Motors, and Chrysler started to move more and more of their operations out of the downtown area to harder to unionize rural areas and suburbs, and, finally, overseas. Even as the economy boomed in the 1950s and 1960s, 50 Detroit residents were already packing up and leaving their city every day. By the time the Berlin Wall fell in 1989, Detroit could count tens of thousands of empty lots and over 15,000 abandoned homes. Stunning Beaux Arts and modernist buildings were left deserted to return to nature, their floors and roofs covered by switchgrass. They now serve as little more than ornate bird houses.

In mythological terms, however, Detroit remains the ancestral birthplace of storied American capitalism. And looking back in the years to come, the sudden disintegration of the Big Three this year will surely be seen as a blow to American power comparable to the end of the Raj, Britain’s loss of India, that jewel in the imperial crown, in 1948. Forget the possession of a colony or the bomb, in the second half of the twentieth century, the real marker of a world power was the ability to make a precision V-8.

There have been dissections aplenty of what went wrong with the U.S. auto industry, as well as fond reminiscences about Detroit’s salad days, about outsized tailfins and double-barrel carburetors. Last year, the iconic Clint Eastwood even put the iconic white auto worker to rest in his movie Gran Torino. Few of these postmortems have conveyed, however, just how crucial Detroit was to U.S. foreign policy — not just as the anchor of America’s high-tech, high-profit export economy, but as a confirmation of our sense of ourselves as the world’s premier power (although in linking Detroit’s demise to the blowback from President Nixon’s illegal war in Laos, Eastwood at least came closer than most).

Read more Car Industry

From TruthDig
By Robert Scheer

It’s not working. The Bush-Obama strategy of throwing trillions at the banks to solve the mortgage crisis is a huge bust. The financial moguls, while tickled pink to have $1.25 trillion in toxic assets covered by the feds, along with hundreds of billions in direct handouts, are not using that money to turn around the free fall in housing foreclosures.

As The Wall Street Journal reported Tuesday, “The Mortgage Bankers Association cut its forecast of home-mortgage lending this year by 27% amid deflating hopes for a boom in refinancing.” The same association said that the total refinancing under the administration’s much ballyhooed Home Affordable Refinance Program is “very low.”

Aside from a tight mortgage market, the problem in preventing foreclosures has to do with homeowners losing their jobs. Here again the administration, continuing the Bush strategy, is working the wrong end of the problem. Although President Obama was wise enough to at least launch a job stimulus program, a far greater amount of federal funding benefits Wall Street as opposed to Main Street.

State and local governments have been forced into draconian budget cuts, firing workers who are among the most reliable in making their mortgage payments—when they have jobs. Yet the Obama administration won’t spend even a small fraction of what it has wasted on the banks to cover state shortfalls.

California couldn’t get the White House to guarantee $5.5 billion in short-term notes to avert severe cuts in state and local payrolls, from prison guards to schoolteachers. Compare that with the $50 billion already given to Citigroup, plus an astounding $300 billion to guarantee that institution’s toxic assets. Citigroup benefits from being a bank “too big to fail,” although through its irresponsible actions to get that large it did as much as any company to cause this mess.

Read more Fiasco

From AlterNet
By Joel Salatin

Perhaps the most empowering concept in any paradigm-challenging movement is simply opting out. The opt-out strategy can humble the mightiest forces because it declares to one and all, “You do not control me.”

The time has come for people who are ready to challenge the paradigm of factory-produced food and to return to a more natural, wholesome and sustainable way of eating (and living) to make that declaration to the powers that be, in business and government, that established the existing system and continue to prop it up. It’s time to opt out and simply start eating better — right here, right now.

Impractical? Idealistic? Utopian? Not really. As I’ll explain, it’s actually the most realistic and effective approach to transforming a system that is slowly but surely killing us.

What happened to food?

First, why am I taking a position that many well-intentioned people might consider alarmist or extreme? Let me explain.

At the risk of stating the obvious, the unprecedented variety of bar-coded packages in today’s supermarket really does not mean that our generation enjoys better food options than our predecessors. These packages, by and large, having passed through the food-inspection fraternity, the industrial food fraternity and the lethargic cheap-food-purchasing consumer fraternity, represent an incredibly narrow choice.

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From The Raw Story

President Barack Obama will announce Wednesday the White House’s proposal for reforming the U.S. financial system. The plan will call for the closure of the U.S. Office of Thrift Supervision (OTS), the creation of a new consumer credit protection agency and greater powers for the Federal Reserve to supervise major financial firms.

Reuters characterized the plan as cutting the number of U.S. bank regulators.

The administration would merge the OTS with the Office of the Comptroller of the Currency, an administration official said Tuesday. The proposal also calls for creating the Consumer Federal Protection Agency (CFPA) to police credit, savings and other payment markets, the official added.

It will be guided by five principles, the official said on condition of anonymity, including “transparency, simplicity, fairness, accountability, and access.”

The agency is one of a number of reforms which Obama is expected to lay out in his latest attempt to shield consumers from the ravages of an out-of-control finance industry blamed for pitching the US and global economy into crisis.

“We are going to put forward a very strong set of regulatory measures that we think can prevent this type of crisis from happening again,” Obama said, after meeting South Korean President Lee Myung-Bak at the White House.

Read more Empowering Fed

From TruthDig
By Chris Hedges

This week marks the end of the dollar’s reign as the world’s reserve currency. It marks the start of a terrible period of economic and political decline in the United States. And it signals the last gasp of the American imperium. That’s over. It is not coming back. And what is to come will be very, very painful.

Barack Obama, and the criminal class on Wall Street, aided by a corporate media that continues to peddle fatuous gossip and trash talk as news while we endure the greatest economic crisis in our history, may have fooled us, but the rest of the world knows we are bankrupt. And these nations are damned if they are going to continue to prop up an inflated dollar and sustain the massive federal budget deficits, swollen to over $2 trillion, which fund America’s imperial expansion in Eurasia and our system of casino capitalism. They have us by the throat. They are about to squeeze.

There are meetings being held Monday and Tuesday in Yekaterinburg, Russia, (formerly Sverdlovsk) among Chinese President Hu Jintao, Russian President Dmitry Medvedev and other top officials of the six-nation Shanghai Cooperation Organization. The United States, which asked to attend, was denied admittance. Watch what happens there carefully. The gathering is, in the words of economist Michael Hudson, “the most important meeting of the 21st century so far.”

It is the first formal step by our major trading partners to replace the dollar as the world’s reserve currency. If they succeed, the dollar will dramatically plummet in value, the cost of imports, including oil, will skyrocket, interest rates will climb and jobs will hemorrhage at a rate that will make the last few months look like boom times. State and federal services will be reduced or shut down for lack of funds. The United States will begin to resemble the Weimar Republic or Zimbabwe. Obama, endowed by many with the qualities of a savior, will suddenly look pitiful, inept and weak. And the rage that has kindled a handful of shootings and hate crimes in the past few weeks will engulf vast segments of a disenfranchised and bewildered working and middle class. The people of this class will demand vengeance, radical change, order and moral renewal, which an array of proto-fascists, from the Christian right to the goons who disseminate hate talk on Fox News, will assure the country they will impose.

Read more American Empire

From The NY Libertarian Examiner
By Jim Lesczynski

This week, the number of co-sponsors for H.R. 1207 – otherwise known as the Federal Reserve Transparency Act – reached 224. With 435 members in the House of Representatives, a majority of the House nominally supports Ron Paul’s bill to audit the Federal Reserve.

Moreover, 36 of the 71 members of the House Financial Services Committee are now co-sponsors, meaning there is a very good chance that the bill could get voted out of committee and go before the full House for passage.

Conspicuously absent from this majority are any members of the New York City congressional delegation. As I noted in a previous column, there are 6 members of the Financial Services Committee from New York City and Long Island, and not one of them has yet to sign on as a co-sponsor of this increasingly popular reform.

As my previous column also noted, it’s easy to understand why our local representatives are reluctant to support greater government transparency, once you follow the money. Many of them owe their political careers to the financial largess of the major Wall Street banks, who in turn control the Federal Reserve and directly benefit from its policies. Nevertheless, the pressure on our congressional delegation to get on board the transparency bandwagon must be growing, as their position becomes both politically and morally indefensible.

Read more Federal Reserve

From Huffington Post
By Ryan Grim

Just how bad has the coal ash situation gotten in the United States? So bad that the Department of Homeland Security has told Sen. Barbara Boxer (D-Calif.) that her committee can’t publicly disclose the location of coal ash dumps across the country.

The pollution is so toxic, so dangerous, that an enemy of the United States — or a storm or some other disrupting event — could easily cause them to spill out and lay waste to any area nearby.

There are 44 sites deemed by the Environmental Protection Agency to be high hazard, but Boxer said she isn’t allowed to talk about them other than to senators in the states affected. “There is a huge muzzle on me and my staff,” she said.

“Homeland Security and the Army Corps [of Engineers] have decided in the interests of national security they can’t make these sites known,” she said.

There are several hundred coal ash piles across the nation, she said, all of them unregulated.

Read more Coal Ash

From Tom Dispatch
By Michael T. Klare

Every summer, the Energy Information Administration (EIA) of the U.S. Department of Energy issues its International Energy Outlook (IEO) — a jam-packed compendium of data and analysis on the evolving world energy equation. For those with the background to interpret its key statistical findings, the release of the IEO can provide a unique opportunity to gauge important shifts in global energy trends, much as reports of routine Communist Party functions in the party journal Pravda once provided America’s Kremlin watchers with insights into changes in the Soviet Union’s top leadership circle.

As it happens, the recent release of the 2009 IEO has provided energy watchers with a feast of significant revelations. By far the most significant disclosure: the IEO predicts a sharp drop in projected future world oil output (compared to previous expectations) and a corresponding increase in reliance on what are called “unconventional fuels” — oil sands, ultra-deep oil, shale oil, and biofuels.

So here’s the headline for you: For the first time, the well-respected Energy Information Administration appears to be joining with those experts who have long argued that the era of cheap and plentiful oil is drawing to a close. Almost as notable, when it comes to news, the 2009 report highlights Asia’s insatiable demand for energy and suggests that China is moving ever closer to the point at which it will overtake the United States as the world’s number one energy consumer. Clearly, a new era of cutthroat energy competition is upon us.

Read more Cheap Oil