John Helmer [Dances with Bears, via Naked Capitalism 1-29-2023]
The Russian Foreign Ministry has dismissed proposals issued this week in Washington by US Secretary of State Antony Blinken and his Under Secretary, Victoria Nuland. Ministry spokesman Maria Zakharova has confirmed that Russia’s military plan for the Ukraine will not be interrupted or delayed.
“It is not necessary to talk about what will happen if someone does something [in the Ukraine],” Zakharova said. “There is a situation on the ground that we are solving. Everything. This is not a question of guesswork, but of our assessment of what is happening. This is based on the situation on the ground and direct political statements by Western politicians. Given that all negotiations have been terminated by Ukraine, this issue will be resolved on the ground. Under pressure or on its own, Kiev has banned any negotiations with Russia at the government level. So that’s it. The rest is for the military experts.”
Russia has also dismissed German Chancellor Olaf Scholz as the successor of the Nazi Wehrmacht and the puppet of the US Government. Scholz, according to Zakharova, is one of the Germans who “lack[s] the spirit to make the right choice, not to repeat the mistakes of their ancestors, for which the people of Germany, among others, paid a huge price… We remember well what German tanks are. These are machines which have become a symbol, not just of death and deadly ideology, but of hatred of humanity — a global, existential threat to the entire planet…
There is nothing like facing the gun muzzles of the Germans, British and Americans to teach Russians what to do to correct their past mistakes. The International Monetary Fund (IMF) would be the last US bank in the world to admit as much.
Nor would the IMF concede that everything it bribed the Kremlin to accept, when Boris Yeltsin was president and Anatoly Chubais and Alexei Kudrin were his economic ministers, is now being reversed – at a speed unmatched since Joseph Stalin directed the relocation of heavy industry out of reach of German guns between August and December of 1941.
This time round, the IMF is reporting that after Russia recorded a 2.2% drop in real Gross Domestic Product (GDP) measurement in 2022 – 35% less than the IMF had been forecasting – by 2024, the second and third years of the war, the Russian growth rate will be more than double the US, British and Japanese rates; 33% better than Germany’s; 24% better than France; 29% better than Canada.
This is the first official acknowledgement by the US and international banks that the long war against Russia is being lost.
[Responsible Statecraft, via Naked Capitalism 1-29-2023]
Zealous advocates of Western support for the total defeat of Russia in Ukraine — including, if necessary, direct Western intervention and NATO-Russia war — base their case on a disparate set of arguments, almost every one of which turns out on examination to be either exaggerated or wholly mistaken.
Chris Miller, Tufts professor and author of Chip War: The Fight For The World’s Most Critical Technologywalked me through a lot of this, along with some deep dives into geopolitics and the absolutely fascinating chip manufacturing process. This one has everything: foreign policy, high-powered lasers, hotshot executives, monopolies, the fundamental limits of physics, and, of course, Texas….
EUV lithography uses light at a wavelength of 13.5 nanometers, an ultra-small light far smaller than the wavelength of visible light. You need really small wavelength light because the circuits you’re carving are very, very tiny; they themselves often measure just a couple of nanometers in dimension. Producing this type of light is really hard, because it’s right next to the X-ray spectrum. Production of it is complicated and the development of mirrors to reflect it is also very difficult.
[Boing Boing, via Naked Capitalism Water Cooler 1-23-2023]
“Folks who have long been advocating for similar safety measures for public spaces, schools, workplaces, and more are taking to Twitter to praise the measures in effect at the WEF, and to spread the news that we should all have access to safe places to work, gather, learn, and more…. We should all be asking the same question — shouldn’t we all be as protected from COVID-19 as the attendees at the World Economic Forum are?”
Based on the 2019 Survey of Consumer Finances, what are the top 10%, top 5%, and top 1% of household incomes in the U.S.? We take a high level overview of how much income the highest earning households make so that you can determine for yourself what it means to be rich…
10:49 If you go back and look at the sociological literature in … the mid-1960s, it was triumphant … about … the middle class achievement; that the gap between rich and poor had shrunk; that we had solved the problem [of inequality]; that we were the “affluent society…” there’s a a book that came out in 1966 … by an economic [with] a whole chapter establishing that white collar and blue collar people basically had the almost exactly the same standard of living….
..the richest man in the world in 1965 … was J Paul Getty, an … American Oil Baron he was living in London by that time and his net worth in 1965 was one billion dollars and this is the richest man in the world … he wrote an article for one of the popular magazines … complaining … that it wasn’t really awesome he was the richest man in the world a… because even the middleclass man could afford all the things that he had….
…look at what has happened to us since… billionaires shooting themselves sinto space … billionaires making billion dollars in a single year…
Why are America’s plutocrats funding efforts to weaken our democracy and replace it with plutocracy and oligarchy? …. An extraordinary investigative report from documented.net tells how morbidly rich families, their companies, and their personal foundations are funding efforts to limit or restrict democracy across the United States…. Most Americans — and lots of editorial writers — are convinced it’s simply because rich folks want to influence legislation to benefit themselves and keep their regulations and taxes down….
But history does suggest that many are trying to “stabilize” America rather than just pillage her.
They are worried that America is suffering from too much democracy.
The modern-day backstory to this starts in the early 1950s when conservative thinker Russell Kirk proposed a startling hypothesis that would fundamentally change our nation and the world….
Kirk and colleagues like William F. Buckley postulated that if the middle-class and minorities became too wealthy, they’d feel the safety and freedom to throw themselves actively into our political processes, as rich people had historically done.
That expansion of democracy, they believed, would produce an absolute collapse of our nation’s social order — producing chaos, riots, and possibly even the end of the republic.
The first chapter of Kirk’s 1951 book, The Conservative Mind, is devoted to Edmund Burke, the British conservative who Thomas Paine visited for two weeks in 1793 on his way to get arrested in the French revolution. Paine was so outraged by Burke’s arguments that he wrote an entire book rebutting them titled The Rights of Man. It’s still in print (as is Burke).
Burke was defending, among other things, Britain’s restrictions on democracy, including limits on who could vote or run for office, and the British maximum wage.
Burke and his contemporaries in the late 1700s believed that if working-class people made too much money, they’d have enough spare time to use democratic processes to challenge the social order and collapse the British kingdom.
Too much democracy, Burke believed, was a dangerous thing: deadly to nations and a violation of evolution and nature itself.
Summarizing his debate with Paine about the French Revolution, Burke wrote:
“The occupation of a hair-dresser, or of a working tallow-chandler [candle maker], cannot be a matter of honour to any person—to say nothing of a number of other more servile employments. Such descriptions of men ought not to suffer oppression from the state; but the state suffers oppression, if such as they, either individually or collectively are permitted to rule [by voting]. In this you think you are combating prejudice, but you are at war with nature.”
That was why Parliament passed a law making it illegal for employers to pay people over a certain amount, so as to keep wage-earners right at the edge of poverty throughout their lives….
The Republican/Conservative “solution” to the “national crisis” these movements represented was put into place with the election of 1980: the project of the Reagan Revolution was to dial back democracy while taking the middle class down a peg, and thus end the protests and social instability.
Their goal was, at its core, to save America from itself.
While it looks from the outside like the singular mission of the Reagan Revolution was simply to help rich people and giant corporations get richer and more powerful (and that’s certainly been the effect), the ideologues driving the movement also thought they were restoring stability to the United States, both socially, economically, and — most important — politically….
Throughout the 1970s and 1980s, wealthy people associated with Kirk’s and Reagan’s Republicans built a massive infrastructure of think tanks and media outlets to promote and amplify this message about the dangers of too much democracy. (Emphasis in original)
[TW: For nine decades now, we have allowed the reactionary rich to develop and fund the conservative and libertarian movements, and allowed those movements to “feed red meat to the base” to motivate their voters.
Fundraising wound up about $200 short, but I’ll probably write the final article on reasons to hope anyway, as it was so close and the past few years have been hard for so many. My very sincere thanks to everyone who gave.
Feel free to use this thread to discuss topics unrelated to recent posts.
Thanks to everyone who has given, I appreciate it greatly. We’re about $1,300 short of the final goal. If we hit it I’ll write an article on reasons for hope. Either way, again, I’m very grateful.
Week-end Wrap – Political Economy – January 15, 2023
by Tony Wikrent
[TW: Dear readers: I was on the road much of this past week, so had limited time and access. If this wrap seems a bit short and abbreviated, it’s because it is. Should be back to normal this coming week.]
[Curiosity Chronicle, via The Big Picture 1-13-2023]
I asked a number of 90-year-olds a simple question: “If you could speak to your 32-year-old self, what advice would you give?” In total, there was over 1,000 years of lived experience captured. The responses were…incredible. They range from fun, playful, and witty to deeply moving. I’d encourage you to read through them with your loved ones and reflect on those that hit you the hardest.
A former US intelligence official has confirmed that the shambolic Maidan remix staged in Brasilia on 8 January was a CIA operation, and linked it to the recent attempts at color revolution in Iran.
On Sunday, alleged supporters of former right-wing President Jair Bolsonaro stormed Brazil’s Congress, Supreme Court, and presidential palace, bypassing flimsy security barricades, climbing on roofs, smashing windows, destroying public property including precious paintings, while calling for a military coup as part of a regime change scheme targeting elected President Luis Inacio “Lula” da Silva.
According to the US source, the reason for staging the operation – which bears visible signs of hasty planning – now, is that Brazil is set to reassert itself in global geopolitics alongside fellow BRICS states Russia, India, and China.
That suggests CIA planners are avid readers of Credit Suisse strategist Zoltan Pozsar, formerly of the New York Fed. In his ground-breaking 27 December report titled War and Commodity Encumbrance….
…There is no clearer sign of emerging elite skepticism of a borderless capitalist economy than Rana Foroohar’s new book, Homecoming: The Path to Prosperity in a Post-Global World. The author, a Financial Times columnist, celebrates the dawn of a new age of economic localization….
The other big winner of globalization, alongside Western corporations, was China. As Foroohar rightly recalls, although we tend to associate neoliberalism with Ronald Reagan and Margaret Thatcher in the 1980s, the push towards hyper-globalization truly started with Bill Clinton in the ’90s. That’s when a series of trade deals, culminating in the entry of China into the World Trade Organization in 2001, took the guardrails off the global economy. “It’s amazing but true,” Foroohar writes, “that when it came to trade, Democrats in the ’90s were far less protectionist than the Republicans who came before them. Indeed, they supported the WTO rules that, by 2000, made it nearly impossible for countries to craft their own trade policies.”
We’re mostly living off the legacy of a past civilization now (because yes, the civilization of the late 19th and early to mid 20th centuries are dead). We haven’t made a lot of fundamental discoveries since, or if we have they haven’t been followed up. Even really fantastic stuff like quantum computing is mining that same vein discovered a century ago.
Further, we have refused to really change our physical plant, beyond the widespread telecom/computer revolution….
Physical plant changes demand new solutions, but we’re still running on hydrocarbons and even our “alternative energy” is old. Solar panels were invented in 1883. Windmills are ancient and windmills producing electricity are essentially as old as electricity itself. Our advances in batteries are impressive, but they are extensions.
We don’t really want to change anything fundamental. Computers and telecom were adopted wholesale not because they improve productivity (it doesn’t show up in the macro data), but because they allowed people in charge more control. But in the face of known catastrophes we have done essentially nothing.
The graph [Intel] showed at the latest VLSI Symposium, however, was a real shocker.
While computer science course take-up had gone up by over 90 percent in the past 50 years, electrical engineering (EE) had declined by the same amount. The electronics graduate has become rarer than an Intel-based smartphone.
Larry Summers reclining on a tropical island and instructing the proles that "there's going to need to be increases in unemployment to contain inflation" ☠️pic.twitter.com/t1ONYePsUZ
[The Chris Hedges Report, via Naked Capitalism 1-9-2023]
Governance exists. But it is not seen. It is certainly not democratic. It is done by the armies of lobbyists and corporate executives, from the fossil fuel industry, the arms industry, the pharmaceutical industry and Wall Street. Governance happens in secret. Corporations have seized the levers of power, including the media. Growing obscenely rich, the ruling oligarchs have deformed national institutions, including state and federal legislatures and the courts, to serve their insatiable greed. They know what they are doing. They understand the depths of their own corruption. They know they are hated. They are prepared for that too. They have militarized police forces and have built a vast archipelago of prisons to keep the unemployed and underemployed in bondage. All the while, they pay little to no income tax and exploit sweatshop labor overseas. They lavishly bankroll the political clowns who speak in the vulgar and crude idiom of an enraged public or in the dulcet tones used to mollify the liberal class.
Between 2012 and 2021, the 14 largest publicly-traded pharmaceutical companies spent $747 billion on stock buybacks and dividends — substantially more than the $660 billion they spent on research and development, according to a new study by economists William Lazonick, professor emeritus of economics at University of Massachusetts, and Öner Tulum, a researcher at Brown University.
But that hasn’t stopped drug companies and their lobbying groups from using the cost of innovation as a key argument in their campaign to keep Medicare from being able to negotiate lower drug prices. The pharmaceutical industry has spent at least $645 million on federal lobbying over the pasttwo years.
“Our results show that in private and academic circles since the late 1970s and early 1980s, ExxonMobil predicted global warming correctly and skillfully.”
Ming Yang Smart Energy Group Ltd. unveiled the world’s largest wind turbine, an offshore behemoth whose more than 140-meter-long blades will sweep across an area larger than nine soccer pitches.
Arlington County, Virginia reached a milestone in its efforts to cut greenhouse gas emissions: 100% of county government operations are now powered by renewable electricity….
Most of that electricity – some 80% – is coming from a sprawling solar farm in rural Pittsylvania County, Va. The facility covers 1,500 acres of what used to be crop land, producing 120 megawatts of power. That’s enough to power roughly 30,000 homes.
Arlington County is purchasing about one-third of the power generated at the solar farm, while Amazon is buying the rest.
[Politico, via Naked Capitalism Water Cooler 1-10-2023]
“Republicans have killed Democrats’ “pay-as-you-go” rule, often shorthanded as PAYGO. It had required legislation that would add to the deficit to be offset with tax increases or spending cuts. The GOP has replaced PAYGO with what it’s calling CUTGO, which requires mandatory spending increases to be offset only with equal or greater decreases in mandatory spending — no new taxes allowed. The GOP last put this into place in the 112th Congress. That doesn’t mean that deficit-increasing tax cuts are off the table. The CUTGO rule only requires offsets if bills would increase mandatory spending within a five-year or 10-year budget window. For example, Republicans could pass extensions of the 2017 Trump tax cuts, some of which have set to expire in 2025 (while others already have).”
[TW: If this had been USA policy from the get go in 1789, we’d still have mud trails instead of interstate highways. Conservatives obviously never stop to wonder why there hasn’t been one unending series of financial meltdowns over the past two and a half centuries, since the national debt has gone from $75 million in 1791 to $31.42 trillion now.]
We call these “zombie claims” because they keep rising from the dead no matter how often they have been fact-checked. But we haven’t before witnessed such a roundly criticized claim set the agenda for a new Congress.
“A report filed by Republican Party of Kentucky Building Fund last week with the Kentucky Registry of Election Finance listed the $1 million from Pfizer along with five other big corporation contributions in the final quarter of 2022 totalling $1.65 million. That is an extraordinarily large haul for the fund which had raised only $6,000 during the first three quarters of 2022.”
Miles MOGULESCU, January 13, 2023 [The American Prospect]
This week, SCOTUS heard oral arguments in Glacier Northwest, Inc. v. International Brotherhood of Teamsters Local Union 174. Should SCOTUS rule in favor of the employer in this case, the right to strike could be significantly suppressed. The case has come at a time when, in response to growing economic inequality, union organizing and strikes are growing at the fastest pace in recent history. Corporations fear this trend, and a politicized right-wing Supreme Court majority could help them slow it.
The panel’s evidence provides the clearest glimpse yet at the well-coordinated effort by some Trump allies to help Trump seize a second term he didn’t win.
Jeet Heer [The Nation, via Naked Capitalism Water Cooler 1-13-2023]
“But the report issued by the committee also has a broader purpose: to establish a convincing account of the coup attempt that can shape public memory. Harvard historian Jill Lepore, writing in The New Yorker, offered a scathing critique of the report, convincingly portraying it as a narrowly focused indictment of Donald Trump that ignores broader political forces that created the coup. In 2016, Donald Trump ran on the boast ‘I alone can fix it.’ The January 6 report merely flips the script by saying Trump alone can break it…. A truer account of the origins of January 6 that tried to move beyond Trump could find genuine bipartisan responsibility if it focused on shared policy failures. The Clintonian embrace of neoliberalism in the 1990s wreaked economic havoc on the working class that made Trump’s demagoguery more persuasive. Bipartisan support for the Global War on Terror after 9/11 helped legitimize the xenophobia that Trump would come to exploit and created a nation fearful of the world. The failure of the Obama administration to push for a strong stimulus in 2009 and 2010 ensured a lost economic decade, again driving desperation. Lepore doesn’t address any of these salient issues of policy. Her focus is on blaming partisan rhetoric and social media.”
