"Markets"

Yesterday as I was riding with a fellow worker, who is retiring this year, the recent decline in the markets came up within the context of a discussion of our pension, social security and standards of living. The teacher I was driving with is retiring relatively early, 58, with the average retirement age for people in the US being 62 (2002). Said teacher mentioned, quite nonchalantly, that he had "lost" hundreds of thousands of dollars from 2000 to 2003 in the markets and that in the late nineties he had been able to pay off both his property taxes and a club membership with dividends gained as a result of the booming stock market. This teacher had followed the common wisdom of the day and invested in his 403(b) every check and felt, at least for around 5 years that this was the prudent option. These days however, as the market has stagnated, and as of yesterday and today declined, he has lost almost all of the gains that he had acrued during his over 30 years as an investor to say nothing of his opportunity cost.

The obvious point, which most people in the US seem to understand, was if this is the case for someone who played by the rules and was very active (I am sure a libertarian would claim not active enough) in the "ownership society" then what will happen to billions in savings for millions of retirees if we privatize Social Security?

Beyond the ease with which the plebes can so easily lose their entire savings under such a scheme the undemocratic nature and irrationality of financial markets also rises to the surface at such times? Who is making the major decisions about what happens to billions in savings in the current regime? Answer: a very small group of institutional investors, unaccountable government officials, large individual investors and traders. The line on the "new economy" in the new Gilded Age is that we are now all democratic decision makers because we "all" own a piece now that more are involved in the markets with 401(k)'s, 403(b)'s, IRA's and individual investing as a result of new technologies like online trading. In moments like this the falseness of such a line becomes clear and we all to spread the word for times when the markets are on the upswing and the Motley Fool and other propagandists start to blather on about the the liberation of the market and "empowerment" through capitalism.

Check out NPR's reporting on the dip. Just another day when the iron laws of capitalism rule our lives in a rational way. Really quite an astonishing report.

"Tuesday, the idyll came to a crashing end. All day prices fell, and fell more. Then, at about 3 p.m., there was a sudden dizzying drop in the Dow that called to mind the 1987 crash. And market strategist Kevin Caron of Ryan Beck wasn't sure what to make of it.

"It was a very fluky thing to watch, we were looking at the market down roughly 290, 295, 300 points," Caron said. "And suddenly within a very short period of time, literally half a second, we saw the markets were down over 400 points. At first glance, it looked like it might have been a misprint."

At Standard and Poor's, chief investment strategist Sam Stovall was equally bewildered.

"I was quite taken aback by the magnitude of the numbers reeling off — it was almost as if somebody was spinning an odometer illegally," Stovall said."

Nothing illegal about it! It's actually the way the laws are written!

The Shape of Things to Come

As the boom continues in China a new architecture is being born. Here's a story on the new influences. A revolution more powerful than the Cultural Revolution!

BBC Story Stresses "Cost" of Dementia to Taxpayers

Check out this article. I think this journalist must be on loan from the Economist! I count 11 references to how this will be a burden on the taxpayer.

Study Says College Students Are More Narcssistic These Days

Self centeredness on the rise. My favorite bit from the article:

"We need to stop endlessly repeating 'You're special' and having children repeat that back," said the study's lead author, Professor Jean Twenge of San Diego State University. "Kids are self-centered enough already."

I wondering if marketing has anything to do with that?

Three Exhibits

Had the pleasure of visiting the Chazen Art Museum in Madison, WI this weekend to see an exhibit of
John Sloan and the Ashcan School, in particular images of New York life in the early 20th century.

Lots of the prints were from the the Federal Works Art Project of New Deal fame. Great realist stuff of street scenes and urban life/landscapes with a conscience.

Also at the museum were two other temporary exhibits of colored wood cut prints from Japan, the US and Great Britain and the work of Peter Gourfain. The latters' work dealt with all kinds of peoples struggles and environmental themes.

This is to say nothing of the permanent collection at the Chazen. I can't believe this was my first time there given I lived in the city for 5 years.



Check out the Joseph E Davies Russian and Soviet paintings.

The Myth of Anti-Competitivness

Again and again we are told that "we" need to become more competitive and with an ever-changing global economy we can no longer afford the generous days of old when we were all on the dole and there was a free lunch for all. We all know their vision of the past is bunk but even more importantly their line on what is the solution; tightening the belt, lowering wages, more fees for services like parks, privatization, etc... is also bunk. How do we know this? because the countries (mostly northern European) that actually have something actually approaching social equality with high wages, universal health care and education, strong labor laws and a generous welfare state ARE ACTUALLY MORE COMPETITIVE THAN THE US!

Because of this we need to change the debate from where we should be cutting to where we should be spending more. Here's Harold Myerson on the competitiveness debate.

"These domestic policy proposals all have merit; the question is whether they're remotely sufficient to the challenge of a globalized economy. In fact, there are nations with advanced economies that trade even more than we do and have still managed, chiefly through domestic policies, to retain high levels of economic equality and vitality: the nations of northern Europe. Trade constitutes a higher percentage of Scandinavian nations' gross domestic product than it does ours, with little of the downward-leveling and, accordingly, anti-trade backlash that we experience. Their secret is a series of job-training and placement policies, a bigger and better-paying public sector than ours, and the fact that their leading trade partners are other high-wage European nations.

The cost of creating this economic security while remaining globally competitive isn't cheap. In the March issue of The American Prospect, my colleague Robert Kuttner calculates that these nations devote roughly 15 percent more of their GDP to governmental outlays than the United States does. That pencils out to roughly $2 trillion a year that we'd have to shift to the public sector to build an economy in which globalization wouldn't be viewed as so dire a threat. Neither Rubin, a true believer in balanced budgets, nor anybody functioning in the real world of American politics is calling for anything this far-reaching to reshape the U.S. economy."

Here's the entire article.

More Fallout from D'Aubuisson Assasination

Policemen arressted in relation to the killing of 3 Central American politicians and their driver are killed in prison in Guatemala.

The State of Welfare

Millions in the US have lost welfare, cash payments, but the welfare state, the most meager of the industrialized world, has actually gained ground since the attack on it since the 70's.

Senegalese Chimps Notch Up Arms Race with New "Spear" Technology

In their never ending quest to keep the war industry humming the chimpanzees of Senegal have once again found another way to keep the war makers happy and their feeble minded clansmen frightened. "A new age of Senagalese chimp supremecy is now upon us" claimed Dick Chimpy the leader of the war party as they went off to kill a Bonobo and a baby Sloth yesterday. A new age indeed.

Cheney and Howard Sabre Rattle Over Chinese Military Build-up

In Dick Cheney's never ending quest to keep the war industry humming, they had a banner year last year, and the masses frightened of a yet another unknown foe, the Dick spoke to support his junior in Oceania yesterday to thank him for sending troops to Iraq. China was the enemy du jour for the Aussies given their penchant for xenophobia as a result of their geography. I'm not sure how much Cheney helps Howard however given the unpopularity of the war in Rooland.

Free Abdel Kareem Soliman!

Egyptian thrown in the clink for insulting Islam and the President of Egypt Hosni Mubarak whom he had the temerity to call a dictator.

Give to the campaign.

Who's for Single Payer?

Not Hillary, Barack or Johnnie Edwards.

Fighting Russ Says:

Congress must defund the Iraq war!

An Army of One....

plus 1300 Australians and 43 Estonians! (There actually are a few more token troops*) Brits to set timetable for withdrawal of most troops from Iraq.

BBC7

Hilarious drama about a 400 unknown Flemish (actually Dutch) painter and his friendship with Oneira, a museum docent.

Oneira
This atmospheric sci fi series, commissioned specially for BBC 7, gets its first broadcast this week. Written in five parts by Robert Easby it follows the escapades of Oneira, a museum attendant, and a 400 year old Dutch alchemist depicted in one of the museum's paintings, as they set out on a daring quest. Directed by Liz Webb, the cast includes: Lyndsey Marshal and Peter Marinker,

A Day in the Life of the

the "surge."

A series of insurgency attacks in and around the capital have already shown the difficulties of trying to stem the tide of violence.


A chemicals tanker was blown up in Taji, killing six and causing 148 people to inhale noxious fumes

Two car bombs killed at least eight people and wounded 30 in south-west and south Baghdad

A suicide bomber attacked a funeral in Baghdad, killing seven mourners

Five US soldiers died in attacks on Monday, the military said.

A Giant Sucking Sound?

The trade deficit continues to explode so the Dems are going to hold hearings. Labor standards to be enforced in the future? In a country without decent labor standards.

How to Write Anti-Union

A boiler plate:

Wage deal could end Harley strike

*Make sure you don't mention that the workers were locked out, stress the word STRIKE

The strike is the first at the firm in 16 years
Iconic motorcycle manufacturer Harley-Davidson has reached an outline agreement to end a two-week strike at its largest US factory.
Harley gave no details of its offer to workers but said it expected staff to vote on proposals in the next few days.

About 2,800 workers at Harley's plant in York, Pennsylvania downed tools on 2 February in protest at proposed changes to salary and benefits conditions.

*They "downed tools" to " resist cuts. Make sure you use words like change because as we know, change is inevitable and good and resistance to such backward and conservative.

Although its profits are rising, Harley is worried about long-term prospects.

Cost burden

It is concerned that the burden of rising pension and healthcare costs could erode its competitiveness in the same way as it has affected the leading US car companies.

*Pensions are a burden you know? Actually Harley has very few competitors in US made icons that sound like old airplanes and use archaic technology. It's a brand in of itself sold as a symbol of individualism and nationalism.

Analysts believe the strike has cost Harley up to $11m (£5.6m) a day in lost sales, while also hurting the company's many suppliers.

*Use words like "hurt and loss."

Unions representing the striking workers confirmed that a tentative agreement had been reached and that picketing at the plant was expected to stop this weekend.

The strike was triggered by workers' decision to reject a three-year pay and benefits deal, which union officials said created a 'two-tier' system of remuneration.

*Raise the question of unreasonableness or doubt when refering to any position uttered by union members, leardership or staff by alluding to their position on proposals such as "two tier systems." Is this at all in doubt?

The walkout has dented shipments of models such as the Touring and Softail which are made at the factory.

*Constantly remind the reader of the terrible hardship endured by well off/overweight/balding/middle-aged men everywhere.

The Tortured Logic of Liberal Imperialists

Take a look at this article by Harold Meyerson on how Hillary Clinton is the Edmund Muskie of the 2008 presidential election. Here's what he says of Hillary on Iraq:

"She opposes the U.S. military presence in Iraq but not with the specificity, fervor or bona fides of her leading Democratic rivals."

Here's how HC "opposes the the US military presence in Iraq...":

*She voted for the war
*She has never voted against one dollar for the war
*She has never oppossed the appointment of Generals, State Department, intelligence or any other executive branch nominees
*She opposes immediate withdrawal
*She has tried to position herself as the "moderate" on the issue to keep the internationalist component of the party as well as the Zionist Hawks happy

With this record how can Meyerson seriously claim that HC opposes the war? I propose he really knows this but like many in the pundit class or politicos in general we want our horse or our ideas to triumph so we massage the ideas to suit our desires. Nothing new here but as we watch the weekly news programs or Fox or CNN we accept the nimble ideologue (journalists included) as the norm. If we reach outside the parameters we are not called back to give our thoughts on this or that.

Hillary was for the war. She voted for it and its continuation in every fashion. She has a problem because everyone knows this but they like power and like Bill they know that she will do anything possible to gain the prize except maintain some principled position on anything.

Republicanism Lives!

King of Nepal stoned by angry crowd. Onward with the ideas of the US, French, Russian, Chinese and Nicaraguan revolutions.