Everything Is Rigged: The Biggest Price-Fixing Scandal Ever

The Illuminati were amateurs. The second huge financial scandal of the year reveals the real international conspiracy: There's no price the big banks can't fix

by Matt Taibbi at Rolling Stone

Conspiracy theorists of the world, believers in the hidden hands of the Rothschilds and the Masons and the Illuminati, we skeptics owe you an apology. You were right. The players may be a little different, but your basic premise is correct: The world is a rigged game. We found this out in recent months, when a series of related corruption stories spilled out of the financial sector, suggesting the world's largest banks may be fixing the prices of, well, just about everything.

You may have heard of the Libor scandal, in which at least three – and perhaps as many as 16 – of the name-brand too-big-to-fail banks have been manipulating global interest rates, in the process messing around with the prices of upward of $500 trillion (that's trillion, with a "t") worth of financial instruments. When that sprawling con burst into public view last year, it was easily the biggest financial scandal in history – MIT professor Andrew Lo even said it "dwarfs by orders of magnitude any financial scam in the history of markets."

That was bad enough, but now Libor may have a twin brother. Word has leaked out that the London-based firm ICAP, the world's largest broker of interest-rate swaps, is being investigated by American authorities for behavior that sounds eerily reminiscent of the Libor mess. Regulators are looking into whether or not a small group of brokers at ICAP may have worked with up to 15 of the world's largest banks to manipulate ISDAfix, a benchmark number used around the world to calculate the prices of interest-rate swaps.

Interest-rate swaps are a tool used by big cities, major corporations and sovereign governments to manage their debt, and the scale of their use is almost unimaginably massive. It's about a $379 trillion market, meaning that any manipulation would affect a pile of assets about 100 times the size of the United States federal budget.

It should surprise no one that among the players implicated in this scheme to fix the prices of interest-rate swaps are the same megabanks – including Barclays, UBS, Bank of America, JPMorgan Chase and the Royal Bank of Scotland – that serve on the Libor panel that sets global interest rates. In fact, in recent years many of these banks have already paid multimillion-dollar settlements for anti-competitive manipulation of one form or another (in addition to Libor, some were caught up in an anti-competitive scheme, detailed in Rolling Stone last year, to rig municipal-debt service auctions). Though the jumble of financial acronyms sounds like gibberish to the layperson, the fact that there may now be price-fixing scandals involving both Libor and ISDAfix suggests a single, giant mushrooming conspiracy of collusion and price-fixing hovering under the ostensibly competitive veneer of Wall Street culture.

The Scam Wall Street Learned From the Mafia

Why? Because Libor already affects the prices of interest-rate swaps, making this a manipulation-on-manipulation situation. If the allegations prove to be right, that will mean that swap customers have been paying for two different layers of price-fixing corruption. If you can imagine paying 20 bucks for a crappy PB&J because some evil cabal of agribusiness companies colluded to fix the prices of both peanuts and peanut butter, you come close to grasping the lunacy of financial markets where both interest rates and interest-rate swaps are being manipulated at the same time, often by the same banks.

"It's a double conspiracy," says an amazed Michael Greenberger, a former director of the trading and markets division at the Commodity Futures Trading Commission and now a professor at the University of Maryland. "It's the height of criminality."

The bad news didn't stop with swaps and interest rates. In March, it also came out that two regulators – the CFTC here in the U.S. and the Madrid-based International Organization of Securities Commissions – were spurred by the Libor revelations to investigate the possibility of collusive manipulation of gold and silver prices. "Given the clubby manipulation efforts we saw in Libor benchmarks, I assume other benchmarks – many other benchmarks – are legit areas of inquiry," CFTC Commissioner Bart Chilton said.

But the biggest shock came out of a federal courtroom at the end of March – though if you follow these matters closely, it may not have been so shocking at all – when a landmark class-action civil lawsuit against the banks for Libor-related offenses was dismissed. In that case, a federal judge accepted the banker-defendants' incredible argument: If cities and towns and other investors lost money because of Libor manipulation, that was their own fault for ever thinking the banks were competing in the first place.

"A farce," was one antitrust lawyer's response to the eyebrow-raising dismissal.

"Incredible," says Sylvia Sokol, an attorney for Constantine Cannon, a firm that specializes in antitrust cases.

All of these stories collectively pointed to the same thing: These banks, which already possess enormous power just by virtue of their financial holdings – in the United States, the top six banks, many of them the same names you see on the Libor and ISDAfix panels, own assets equivalent to 60 percent of the nation's GDP – are beginning to realize the awesome possibilities for increased profit and political might that would come with colluding instead of competing. Moreover, it's increasingly clear that both the criminal justice system and the civil courts may be impotent to stop them, even when they do get caught working together to game the system.

If true, that would leave us living in an era of undisguised, real-world conspiracy, in which the prices of currencies, commodities like gold and silver, even interest rates and the value of money itself, can be and may already have been dictated from above. And those who are doing it can get away with it. Forget the Illuminati – this is the real thing, and it's no secret. You can stare right at it, anytime you want.

The banks found a loophole, a basic flaw in the machine. Across the financial system, there are places where prices or official indices are set based upon unverified data sent in by private banks and financial companies. In other words, we gave the players with incentives to game the system institutional roles in the economic infrastructure.

Libor, which measures the prices banks charge one another to borrow money, is a perfect example, not only of this basic flaw in the price-setting system but of the weakness in the regulatory framework supposedly policing it. Couple a voluntary reporting scheme with too-big-to-fail status and a revolving-door legal system, and what you get is unstoppable corruption.

Every morning, 18 of the world's biggest banks submit data to an office in London about how much they believe they would have to pay to borrow from other banks. The 18 banks together are called the "Libor panel," and when all of these data from all 18 panelist banks are collected, the numbers are averaged out. What emerges, every morning at 11:30 London time, are the daily Libor figures.

Banks submit numbers about borrowing in 10 different currencies across 15 different time periods, e.g., loans as short as one day and as long as one year. This mountain of bank-submitted data is used every day to create benchmark rates that affect the prices of everything from credit cards to mortgages to currencies to commercial loans (both short- and long-term) to swaps.

Gangster Bankers Broke Every Law in the Book

Dating back perhaps as far as the early Nineties, traders and others inside these banks were sometimes calling up the company geeks responsible for submitting the daily Libor numbers (the "Libor submitters") and asking them to fudge the numbers. Usually, the gimmick was the trader had made a bet on something – a swap, currencies, something – and he wanted the Libor submitter to make the numbers look lower (or, occasionally, higher) to help his bet pay off.

Famously, one Barclays trader monkeyed with Libor submissions in exchange for a bottle of Bollinger champagne, but in some cases, it was even lamer than that. This is from an exchange between a trader and a Libor submitter at the Royal Bank of Scotland:

SWISS FRANC TRADER: can u put 6m swiss libor in low pls?...
PRIMARY SUBMITTER: Whats it worth
SWSISS FRANC TRADER: ive got some sushi rolls from yesterday?...
PRIMARY SUBMITTER: ok low 6m, just for u
SWISS FRANC TRADER: wooooooohooooooo. . . thatd be awesome

Screwing around with world interest rates that affect billions of people in exchange for day-old sushi – it's hard to imagine an image that better captures the moral insanity of the modern financial-services sector.

Hundreds of similar exchanges were uncovered when regulators like Britain's Financial Services Authority and the U.S. Justice Department started burrowing into the befouled entrails of Libor. The documentary evidence of anti-competitive manipulation they found was so overwhelming that, to read it, one almost becomes embarrassed for the banks. "It's just amazing how Libor fixing can make you that much money," chirped one yen trader. "Pure manipulation going on," wrote another.

Yet despite so many instances of at least attempted manipulation, the banks mostly skated. Barclays got off with a relatively minor fine in the $450 million range, UBS was stuck with $1.5 billion in penalties, and RBS was forced to give up $615 million. Apart from a few low-level flunkies overseas, no individual involved in this scam that impacted nearly everyone in the industrialized world was even threatened with criminal prosecution.

Two of America's top law-enforcement officials, Attorney General Eric Holder and former Justice Department Criminal Division chief Lanny Breuer, confessed that it's dangerous to prosecute offending banks because they are simply too big. Making arrests, they say, might lead to "collateral consequences" in the economy.

The relatively small sums of money extracted in these settlements did not go toward reparations for the cities, towns and other victims who lost money due to Libor manipulation. Instead, it flowed mindlessly into government coffers. So it was left to towns and cities like Baltimore (which lost money due to fluctuations in their municipal investments caused by Libor movements), pensions like the New Britain, Connecticut, Firefighters' and Police Benefit Fund, and other foundations – and even individuals (billionaire real-estate developer Sheldon Solow, who filed his own suit in February, claims that his company lost $450 million because of Libor manipulation) – to sue the banks for damages.

One of the biggest Libor suits was proceeding on schedule when, early in March, an army of superstar lawyers working on behalf of the banks descended upon federal judge Naomi Buchwald in the Southern District of New York to argue an extraordinary motion to dismiss. The banks' legal dream team drew from heavyweight Beltway-connected firms like Boies Schiller (you remember David Boies represented Al Gore), Davis Polk (home of top ex-regulators like former SEC enforcement chief Linda Thomsen) and Covington & Burling, the onetime private-practice home of both Holder and Breuer.

The presence of Covington & Burling in the suit – representing, of all companies, Citigroup, the former employer of current Treasury Secretary Jack Lew – was particularly galling. Right as the Libor case was being dismissed, the firm had hired none other than Lanny Breuer, the same Lanny Breuer who, just a few months before, was the assistant attorney general who had balked at criminally prosecuting UBS over Libor because, he said, "Our goal here is not to destroy a major financial institution."

In any case, this all-star squad of white-shoe lawyers came before Buchwald and made the mother of all audacious arguments. Robert Wise of Davis Polk, representing Bank of America, told Buchwald that the banks could not possibly be guilty of anti- competitive collusion because nobody ever said that the creation of Libor was competitive. "It is essential to our argument that this is not a competitive process," he said. "The banks do not compete with one another in the submission of Libor."

If you squint incredibly hard and look at the issue through a mirror, maybe while standing on your head, you can sort of see what Wise is saying. In a very theoretical, technical sense, the actual process by which banks submit Libor data – 18 geeks sending numbers to the British Bankers' Association offices in London once every morning – is not competitive per se.

But these numbers are supposed to reflect interbank-loan prices derived in a real, competitive market. Saying the Libor submission process is not competitive is sort of like pointing out that bank robbers obeyed the speed limit on the way to the heist. It's the silliest kind of legal sophistry.

But Wise eventually outdid even that argument, essentially saying that while the banks may have lied to or cheated their customers, they weren't guilty of the particular crime of antitrust collusion. This is like the old joke about the lawyer who gets up in court and claims his client had to be innocent, because his client was committing a crime in a different state at the time of the offense.

"The plaintiffs, I believe, are confusing a claim of being perhaps deceived," he said, "with a claim for harm to competition."

Judge Buchwald swallowed this lunatic argument whole and dismissed most of the case. Libor, she said, was a "cooperative endeavor" that was "never intended to be competitive." Her decision "does not reflect the reality of this business, where all of these banks were acting as competitors throughout the process," said the antitrust lawyer Sokol. Buchwald made this ruling despite the fact that both the U.S. and British governments had already settled with three banks for billions of dollars for improper manipulation, manipulation that these companies admitted to in their settlements.

Michael Hausfeld of Hausfeld LLP, one of the lead lawyers for the plaintiffs in this Libor suit, declined to comment specifically on the dismissal. But he did talk about the significance of the Libor case and other manipulation cases now in the pipeline.

"It's now evident that there is a ubiquitous culture among the banks to collude and cheat their customers as many times as they can in as many forms as they can conceive," he said. "And that's not just surmising. This is just based upon what they've been caught at."

Greenberger says the lack of serious consequences for the Libor scandal has only made other kinds of manipulation more inevitable. "There's no therapy like sending those who are used to wearing Gucci shoes to jail," he says. "But when the attorney general says, 'I don't want to indict people,' it's the Wild West. There's no law."

The problem is, a number of markets feature the same infrastructural weakness that failed in the Libor mess. In the case of interest-rate swaps and the ISDAfix benchmark, the system is very similar to Libor, although the investigation into these markets reportedly focuses on some different types of improprieties.

Though interest-rate swaps are not widely understood outside the finance world, the root concept actually isn't that hard. If you can imagine taking out a variable-rate mortgage and then paying a bank to make your loan payments fixed, you've got the basic idea of an interest-rate swap.

In practice, it might be a country like Greece or a regional government like Jefferson County, Alabama, that borrows money at a variable rate of interest, then later goes to a bank to "swap" that loan to a more predictable fixed rate. In its simplest form, the customer in a swap deal is usually paying a premium for the safety and security of fixed interest rates, while the firm selling the swap is usually betting that it knows more about future movements in interest rates than its customers.

Prices for interest-rate swaps are often based on ISDAfix, which, like Libor, is yet another of these privately calculated benchmarks. ISDAfix's U.S. dollar rates are published every day, at 11:30 a.m. and 3:30 p.m., after a gang of the same usual-suspect megabanks (Bank of America, RBS, Deutsche, JPMorgan Chase, Barclays, etc.) submits information about bids and offers for swaps.

And here's what we know so far: The CFTC has sent subpoenas to ICAP and to as many as 15 of those member banks, and plans to interview about a dozen ICAP employees from the company's office in Jersey City, New Jersey. Moreover, the International Swaps and Derivatives Association, or ISDA, which works together with ICAP (for U.S. dollar transactions) and Thomson Reuters to compute the ISDAfix benchmark, has hired the consulting firm Oliver Wyman to review the process by which ISDAfix is calculated. Oliver Wyman is the same company that the British Bankers' Association hired to review the Libor submission process after that scandal broke last year. The upshot of all of this is that it looks very much like ISDAfix could be Libor all over again.

"It's obviously reminiscent of the Libor manipulation issue," Darrell Duffie, a finance professor at Stanford University, told reporters. "People may have been naive that simply reporting these rates was enough to avoid manipulation."

And just like in Libor, the potential losers in an interest-rate-swap manipulation scandal would be the same sad-sack collection of cities, towns, companies and other nonbank entities that have no way of knowing if they're paying the real price for swaps or a price being manipulated by bank insiders for profit. Moreover, ISDAfix is not only used to calculate prices for interest-rate swaps, it's also used to set values for about $550 billion worth of bonds tied to commercial real estate, and also affects the payouts on some state-pension annuities.

So although it's not quite as widespread as Libor, ISDAfix is sufficiently power-jammed into the world financial infrastructure that any manipulation of the rate would be catastrophic – and a huge class of victims that could include everyone from state pensioners to big cities to wealthy investors in structured notes would have no idea they were being robbed.

"How is some municipality in Cleveland or wherever going to know if it's getting ripped off?" asks Michael Masters of Masters Capital Management, a fund manager who has long been an advocate of greater transparency in the derivatives world. "The answer is, they won't know."

Worse still, the CFTC investigation apparently isn't limited to possible manipulation of swap prices by monkeying around with ISDAfix. According to reports, the commission is also looking at whether or not employees at ICAP may have intentionally delayed publication of swap prices, which in theory could give someone (bankers, cough, cough) a chance to trade ahead of the information.

Swap prices are published when ICAP employees manually enter the data on a computer screen called "19901." Some 6,000 customers subscribe to a service that allows them to access the data appearing on the 19901 screen.

The key here is that unlike a more transparent, regulated market like the New York Stock Exchange, where the results of stock trades are computed more or less instantly and everyone in theory can immediately see the impact of trading on the prices of stocks, in the swap market the whole world is dependent upon a handful of brokers quickly and honestly entering data about trades by hand into a computer terminal.

Any delay in entering price data would provide the banks involved in the transactions with a rare opportunity to trade ahead of the information. One way to imagine it would be to picture a racetrack where a giant curtain is pulled over the track as the horses come down the stretch – and the gallery is only told two minutes later which horse actually won. Anyone on the right side of the curtain could make a lot of smart bets before the audience saw the results of the race.

At ICAP, the interest-rate swap desk, and the 19901 screen, were reportedly controlled by a small group of 20 or so brokers, some of whom were making millions of dollars. These brokers made so much money for themselves the unit was nicknamed "Treasure Island."

Already, there are some reports that brokers of Treasure Island did create such intentional delays. Bloomberg interviewed a former broker who claims that he watched ICAP brokers delay the reporting of swap prices. "That allows dealers to tell the brokers to delay putting trades into the system instead of in real time," Bloomberg wrote, noting the former broker had "witnessed such activity firsthand." An ICAP spokesman has no comment on the story, though the company has released a statement saying that it is "cooperating" with the CFTC's inquiry and that it "maintains policies that prohibit" the improper behavior alleged in news reports.

The idea that prices in a $379 trillion market could be dependent on a desk of about 20 guys in New Jersey should tell you a lot about the absurdity of our financial infrastructure. The whole thing, in fact, has a darkly comic element to it. "It's almost hilarious in the irony," says David Frenk, director of research for Better Markets, a financial-reform advocacy group, "that they called it ISDAfix."

After scandals involving libor and, perhaps, ISDAfix, the question that should have everyone freaked out is this: What other markets out there carry the same potential for manipulation? The answer to that question is far from reassuring, because the potential is almost everywhere. From gold to gas to swaps to interest rates, prices all over the world are dependent upon little private cabals of cigar-chomping insiders we're forced to trust.

"In all the over-the-counter markets, you don't really have pricing except by a bunch of guys getting together," Masters notes glumly.

That includes the markets for gold (where prices are set by five banks in a Libor-ish teleconferencing process that, ironically, was created in part by N M Rothschild & Sons) and silver (whose price is set by just three banks), as well as benchmark rates in numerous other commodities – jet fuel, diesel, electric power, coal, you name it. The problem in each of these markets is the same: We all have to rely upon the honesty of companies like Barclays (already caught and fined $453 million for rigging Libor) or JPMorgan Chase (paid a $228 million settlement for rigging municipal-bond auctions) or UBS (fined a collective $1.66 billion for both muni-bond rigging and Libor manipulation) to faithfully report the real prices of things like interest rates, swaps, currencies and commodities.

All of these benchmarks based on voluntary reporting are now being looked at by regulators around the world, and God knows what they'll find. The European Federation of Financial Services Users wrote in an official EU survey last summer that all of these systems are ripe targets for manipulation. "In general," it wrote, "those markets which are based on non-attested, voluntary submission of data from agents whose benefits depend on such benchmarks are especially vulnerable of market abuse and distortion."

Translation: When prices are set by companies that can profit by manipulating them, we're fucked.

"You name it," says Frenk. "Any of these benchmarks is a possibility for corruption."

The only reason this problem has not received the attention it deserves is because the scale of it is so enormous that ordinary people simply cannot see it. It's not just stealing by reaching a hand into your pocket and taking out money, but stealing in which banks can hit a few keystrokes and magically make whatever's in your pocket worth less. This is corruption at the molecular level of the economy, Space Age stealing – and it's only just coming into view.

This story is from the May 9th, 2013 issue of Rolling Stone.

http://www.rollingstone.com/politics/news/everything-is-rigged-the-biggest-financial-scandal-yet-20130425

Which is more painful? Childbirth or being kicked in the balls?

Below, a video by asapSCIENCE who tries to answer the question with science:

 

 


Thanks, Dangerous Minds

Building a Human: new retrofuturist short by Robert Popper and Peter Serafinowicz

from BoingBoing:

Robert Popper (electrocuted) and Peter Serafinowicz (electrocuted) are back with a new "instructional film made by The Visitors for Human Collaborators on Edité-Frignim (Earth)."

Rachel Maddow eviscerates conspiracy theorist Alex Jones

from our friend Richard Metzger over at Dangerous Minds

About ten years ago, whoever was managing Alex Jones at the time would have DVDs of Jones’ shouty “documentaries” messengered over to me at the Disinformation office.

I was already well aware of Alex Jones and sight-unseen, I already knew that this was not going to be something that I was going to be interested in, and especially not interested in investing any money into (the idea was that we would have manufactured it and distributed it on DVD).

Aside from the fact that they were obviously the products of a ranting and raving unhinged paranoiac lunatic with access to someone who knew Final Cut Pro, Jones used footage that there was no way he could have gotten the rights to use.

They were these long, like, messy video collages of fact, conjecture, crappy pixelated news footage and the jumbled-up logic, red-faced, bulging vein exhortations Jones is famous for. I will admit to watching them on the treadmill but they were always binned immediately afterwards.

In the intervening years, Jones has become a household name in some of America’s more gullible households, mostly due to Glenn Beck disgracefully elevating his profile on Fox News. Beck ultimately decided to cut out the middleman and unashamedly ripped off Alex Jones’ shtick. Oh yeah, Beck stole his act lock, stock and fucking barrel, went to the bank with it and then kicked Jones to the curb to distance himself from his hot-headed, foaming at the mouth mentor (and lesser showman). Jones does have a legitimate gripe with Glenn Beck, if you ask me, but it is Beck who deserves the blame for mainstreaming a kook like Alex fucking Jones in the first place.

Of late, Mr. Jones has been his own worst enemy, making himself into a laughingstock, first with his infamously berserk Piers Morgan interview on CNN and then again with his “false flag” accusations about the Boston bombing.

Jones makes outrageous predictions constantly. Is he ever right?

Nathaniel Downes at Addicting Info thinks Alex Jones is a fraud. That might be more than a little unfair to Jones—I think he believes what he says, he’s just fucking nuts—but he’s amassed an impressive list of some of Alex Jones’ greatest misses from 2012:

Worldwide shortage of rare earth metals – Didn’t happen

Food supply disruptions hit western nations – Didn’t happen

Deadly superbug mutation goes wild – Didn’t happen

New evidence links vaccines and neurological disorders – The opposite happened

U.S. power grid suffers catastrophic failure – Didn’t happen

Satellite breakdown – Didn’t happen

GM crop contamination leads to crisis – Didn’t happen

Honeybee population collapse spreads to other species – Didn’t happen

Weather patterns become increasingly radicalized – Debatable

Nuclear power sees global resurgence – The Fukushima incident discredited this

Nuclear weapons unleashed in the Middle East – Didn’t happen

New exotic superfood from South America emerges in western markets – Didn’t happen

A high-tech, portable vitamin D sensor device is invented – Didn’t happen

U.S. debt gets downgraded while world investors slash purchases of U.S. debt instruments – The debt was downgraded, but investors still flock to it

U.S. nearly comes to military conflict with China over natural resources – Didn’t happen

Huge new scandal implicates major pharmaceutical company in scientific fraud – Nothing out of the ordinary here

China unleashes armies of corporate espionage hackers onto western nations – Some debate on this is ongoing

Medical imaging scandal unfolds as older patients begin to show serious health damage from radiation via mammograms, CT scans and more – Didn’t happen

Another 9/11 false flag incident – Didn’t happen

The world won’t end on December 21, 2012 – Hey, a stopped clock is right twice a day!

EPA pressured to regulate pharmaceuticals in the water supply – Can’t even contemplate this one without the brain hurting

Nursing home drugging scandal exposed – Didn’t happen

The psychiatric industry will declare more normal behaviors to be “disorders” – Didn’t happen

Vaccine industry goes crazy with new vaccines for all sorts of “diseases” – Didn’t happen

War on health freedom ramps up, targeting raw milk, homeopathy, herbs and supplements – Didn’t happen

The world becomes a far more dangerous place for honest citizens – So open-ended you cannot even evaluate

New attempts are made to destroy internet freedom – SOPA and PIPA have been discussed for awhile, so not a real argument

China’s boom will bust, sending ripples through global economy – Didn’t happen

Central and South America will drop the U.S. dollar as a currency – Didn’t happen

Local currencies emerge following the collapse of the dollar – As the dollar didn’t collapse, this didn’t happen

TSA suspends full body scanners after celeb photo scandal – No, was suspended due to dangerous exposure to radiation

Cell phone brain tumors start to appear in younger users – Didn’t happen

Medical industry claims to find cause of autism – Didn’t happen, although some hope has been raised

Terrorist strike on the U.S. water supply – Didn’t happen

Sperm count drops, infertility rates rise – Fertility is increasing, not decreasing, across the United States

“Stealth personal recorders” go mainstream – We call them Cell Phones, although Alex Jones is quick to claim that they cause cancer

Good times!

 

 

Rachel Maddow’s epic Alex Jones takedown from last night is quite amusing. She starts off all serious, but wait until the clips of feverishly ranting Alex Jone start. After that she riffs on him like the fool he is and annihilates him, but with her typical good-natured wryness. Jones is perfect fodder for her wit. Good stuff.

 

 

Get The Fuck Outa Here Friday Return of the fucking crazy wing suit jumpers

if you want another closer look at these crazies check out the last blog i did on them

Wingsuit Flying - Total Fucking Insanity

(BLACK) FLAG playing in public for the first time

Flag, the band of ex-Black Flag members re-banded to give the people their take on the classics, debuted April 18th at an invite-only show at Redondo Beach Moose Lodge No. 1873.

[I was invited and would have gone if i was within 500 miles, but unfortunately I was in New York and they were in LA - I know I won't miss them if they get anywhere near here, and I'll be in the front row yelling every lyric!]

Over 34 years ago, the same rented hall hosted the debut of Black Flag. Much as then, FLAG (comprising original vocalist [and Circle Jerks/OFF! leader] Keith Morris, bassist/songwriter/conceptual mastermind Chuck Dukowski, drummer [and Descendents/ALL mastermind] Bill Stevenson, guitarist [and 3rd Black Flag vocalist] Dez Cadena, and Descendents/ALL guitarist Stephen Egerton deputized in Ginn’s stead) eschewed a stage and played on the floor through a rented PA, right in the faces of the less-than-200 guests.

As you can see in the video below of the entire gig, the band played with the same ferocious precision, commitment, and articulate rage as Black Flag in their prime. Hard to call this a revival or a cover band, when you receive music this fierce and real, played with clear love. Amazingly, Morris even ably handles later Henry Rollins-era material that he never sang, like “My War” and “Rise Above,” with the grace and ease of one who owns the song (if you can call screaming and completely exploding “grace and ease,” that is).

Thanks Dangerous Minds

here's a few clips and the entire show at the bottom from yet another angle.

Breathe In, Breathe Out

Take a moment; take a breath and view this video. Half of the oxygen we breathe comes from our oceans. Keep our oceans alive.

One of my prints is on Charity Buzz to benefit PS41 Elementary school of my son and alma mater of Ad Rock.

AUCTION ENDS TODAY 3:40pm EST




I've donated an 11x14 museum quality print of mine to raise money for Public School 41 (PS41), The Greenwich Village school. My son just started here this year, and it's the alma mater of Beastie Boy "Ad Rock" and Robert DeNiro among many others. The print is signed by Adam and myself.

Every year the school does an auction to raise money for all the great things PTA boards do for the kids of the school (Arts, Dance, Science, Gym, etc. that the public school system no longer has enough money to support). So we parents and friends of the school do our part to pick up the slack.

Being that it's Adam's alma mater, I decided it would be cool to donate one of my original pre-'glory' portraits of the Beastie Boys, from 1986, taken just a few blocks away in Washington Square Park, to this years auction.

The bidding starting way below the actual value of the print, as i type this it's still a bit below it's actual value without Adam's signature.. so I thought some Beastie fan, person of good will, or some one you know might be interested. I also believe that whoever wants can own this print and get a tax deduction for contributing to the school at the same time!

You decide if it's for you or not, but as ODB once proudly proclaimed "Wu-Tang is for the children!"- Hope one of you can be too.

thanks!

-GEF



Bid here at Charity Buzz for this actual print!

FUCK GUNS cont. The Daily Show commentary...

The Daily Show with Jon Stewart	Mon - Thurs 11p / 10c
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and John Oliver's assessment :

The Daily Show with Jon Stewart	Mon - Thurs 11p / 10c
Gun Control Whoop-de-doo
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really?

The Daily Show with Jon Stewart	Mon - Thurs 11p / 10c
Broken Bad
www.thedailyshow.com
Daily Show Full Episodes Indecision Political Humor The Daily Show on Facebook

News is bad for you – and giving up reading it will make you happier

I used to be addicted to listening/watching the news pre-9/11. I gave up on it easily when it became so obvious how slanted, pathetic, and disgusting the national media could become. Indeed I now see Jon Stewart's DAILY SHOW as the best perspective on national news.

Here's a cool story from BoingBoing:

Rolf Dobelli, author of the forthcoming book, The Art of Thinking Clearly, has an essay in the Guardian that explains the many reasons why you shouldn't read, listen to, or watch news. I don't agree with everything he says, but I found it thought-provoking.

News is toxic to your body. It constantly triggers the limbic system. Panicky stories spur the release of cascades of glucocorticoid (cortisol). This deregulates your immune system and inhibits the release of growth hormones. In other words, your body finds itself in a state of chronic stress. High glucocorticoid levels cause impaired digestion, lack of growth (cell, hair, bone), nervousness and susceptibility to infections. The other potential side-effects include fear, aggression, tunnel-vision and desensitization.

News makes us passive. News stories are overwhelmingly about things you cannot influence. The daily repetition of news about things we can't act upon makes us passive. It grinds us down until we adopt a worldview that is pessimistic, desensitised, sarcastic and fatalistic. The scientific term is "learned helplessness". It's a bit of a stretch, but I would not be surprised if news consumption, at least partially contributes to the widespread disease of depression.

from the Guardian News is bad for you – and giving up reading it will make you happier

In the past few decades, the fortunate among us have recognised the hazards of living with an overabundance of food (obesity, diabetes) and have started to change our diets. But most of us do not yet understand that news is to the mind what sugar is to the body. News is easy to digest. The media feeds us small bites of trivial matter, tidbits that don't really concern our lives and don't require thinking. That's why we experience almost no saturation. Unlike reading books and long magazine articles (which require thinking), we can swallow limitless quantities of news flashes, which are bright-coloured candies for the mind. Today, we have reached the same point in relation to information that we faced 20 years ago in regard to food. We are beginning to recognise how toxic news can be.

News misleads. Take the following event (borrowed from Nassim Taleb). A car drives over a bridge, and the bridge collapses. What does the news media focus on? The car. The person in the car. Where he came from. Where he planned to go. How he experienced the crash (if he survived). But that is all irrelevant. What's relevant? The structural stability of the bridge. That's the underlying risk that has been lurking, and could lurk in other bridges. But the car is flashy, it's dramatic, it's a person (non-abstract), and it's news that's cheap to produce. News leads us to walk around with the completely wrong risk map in our heads. So terrorism is over-rated. Chronic stress is under-rated. The collapse of Lehman Brothers is overrated. Fiscal irresponsibility is under-rated. Astronauts are over-rated. Nurses are under-rated.

We are not rational enough to be exposed to the press. Watching an airplane crash on television is going to change your attitude toward that risk, regardless of its real probability. If you think you can compensate with the strength of your own inner contemplation, you are wrong. Bankers and economists – who have powerful incentives to compensate for news-borne hazards – have shown that they cannot. The only solution: cut yourself off from news consumption entirely.

News is irrelevant. Out of the approximately 10,000 news stories you have read in the last 12 months, name one that – because you consumed it – allowed you to make a better decision about a serious matter affecting your life, your career or your business. The point is: the consumption of news is irrelevant to you. But people find it very difficult to recognise what's relevant. It's much easier to recognise what's new. The relevant versus the new is the fundamental battle of the current age. Media organisations want you to believe that news offers you some sort of a competitive advantage. Many fall for that. We get anxious when we're cut off from the flow of news. In reality, news consumption is a competitive disadvantage. The less news you consume, the bigger the advantage you have.

News has no explanatory power. News items are bubbles popping on the surface of a deeper world. Will accumulating facts help you understand the world? Sadly, no. The relationship is inverted. The important stories are non-stories: slow, powerful movements that develop below journalists' radar but have a transforming effect. The more "news factoids" you digest, the less of the big picture you will understand. If more information leads to higher economic success, we'd expect journalists to be at the top of the pyramid. That's not the case.

News is toxic to your body. It constantly triggers the limbic system. Panicky stories spur the release of cascades of glucocorticoid (cortisol). This deregulates your immune system and inhibits the release of growth hormones. In other words, your body finds itself in a state of chronic stress. High glucocorticoid levels cause impaired digestion, lack of growth (cell, hair, bone), nervousness and susceptibility to infections. The other potential side-effects include fear, aggression, tunnel-vision and desensitisation.

News increases cognitive errors. News feeds the mother of all cognitive errors: confirmation bias. In the words of Warren Buffett: "What the human being is best at doing is interpreting all new information so that their prior conclusions remain intact." News exacerbates this flaw. We become prone to overconfidence, take stupid risks and misjudge opportunities. It also exacerbates another cognitive error: the story bias. Our brains crave stories that "make sense" – even if they don't correspond to reality. Any journalist who writes, "The market moved because of X" or "the company went bankrupt because of Y" is an idiot. I am fed up with this cheap way of "explaining" the world.

News inhibits thinking. Thinking requires concentration. Concentration requires uninterrupted time. News pieces are specifically engineered to interrupt you. They are like viruses that steal attention for their own purposes. News makes us shallow thinkers. But it's worse than that. News severely affects memory. There are two types of memory. Long-range memory's capacity is nearly infinite, but working memory is limited to a certain amount of slippery data. The path from short-term to long-term memory is a choke-point in the brain, but anything you want to understand must pass through it. If this passageway is disrupted, nothing gets through. Because news disrupts concentration, it weakens comprehension. Online news has an even worse impact. In a 2001 study two scholars in Canada showed that comprehension declines as the number of hyperlinks in a document increases. Why? Because whenever a link appears, your brain has to at least make the choice not to click, which in itself is distracting. News is an intentional interruption system.

News works like a drug. As stories develop, we want to know how they continue. With hundreds of arbitrary storylines in our heads, this craving is increasingly compelling and hard to ignore. Scientists used to think that the dense connections formed among the 100 billion neurons inside our skulls were largely fixed by the time we reached adulthood. Today we know that this is not the case. Nerve cells routinely break old connections and form new ones. The more news we consume, the more we exercise the neural circuits devoted to skimming and multitasking while ignoring those used for reading deeply and thinking with profound focus. Most news consumers – even if they used to be avid book readers – have lost the ability to absorb lengthy articles or books. After four, five pages they get tired, their concentration vanishes, they become restless. It's not because they got older or their schedules became more onerous. It's because the physical structure of their brains has changed.

News wastes time. If you read the newspaper for 15 minutes each morning, then check the news for 15 minutes during lunch and 15 minutes before you go to bed, then add five minutes here and there when you're at work, then count distraction and refocusing time, you will lose at least half a day every week. Information is no longer a scarce commodity. But attention is. You are not that irresponsible with your money, reputation or health. Why give away your mind?

News makes us passive. News stories are overwhelmingly about things you cannot influence. The daily repetition of news about things we can't act upon makes us passive. It grinds us down until we adopt a worldview that is pessimistic, desensitised, sarcastic and fatalistic. The scientific term is "learned helplessness". It's a bit of a stretch, but I would not be surprised if news consumption, at least partially contributes to the widespread disease of depression.

News kills creativity. Finally, things we already know limit our creativity. This is one reason that mathematicians, novelists, composers and entrepreneurs often produce their most creative works at a young age. Their brains enjoy a wide, uninhabited space that emboldens them to come up with and pursue novel ideas. I don't know a single truly creative mind who is a news junkie – not a writer, not a composer, mathematician, physician, scientist, musician, designer, architect or painter. On the other hand, I know a bunch of viciously uncreative minds who consume news like drugs. If you want to come up with old solutions, read news. If you are looking for new solutions, don't.

Society needs journalism – but in a different way. Investigative journalism is always relevant. We need reporting that polices our institutions and uncovers truth. But important findings don't have to arrive in the form of news. Long journal articles and in-depth books are good, too.

I have now gone without news for four years, so I can see, feel and report the effects of this freedom first-hand: less disruption, less anxiety, deeper thinking, more time, more insights. It's not easy, but it's worth it.

This is an edited extract from an essay first published at dobelli.com. The Art of Thinking Clearly: Better Thinking, Better Decisions by Rolf Dobelli

What happens when you wring out a washcloth in space?

from BoingBoing:

For hand towels, astronauts get those little vacuum-packed pucks that you kind of have to unravel into a towel. But what happens when you actually put the towels to use?

Two Nova Scotia high school students, Kendra Lemke and Meredith Faulkner, submitted this experiment to Canadian Space Agency and got to see astronaut Chris Hadfield actually test it out on the ISS. The results are seriously extraordinary and you need to see them.

Classic Early Ian MacKaye interview

In honor of my brother Ian's 51st birthday the other day...

The Question of Socialism (and Beyond!) Is About to Open Up in These United States

via Dangerous Minds

 

Gar Alperovitz is the Lionel R. Bauman Professor of Political Economy at the University of Maryland and co-founder of the Democracy Collaborative. He is the author of the forthcoming book What Then Must We Do?: Straight Talk About the Next American Revolution (Chelsea Green, May Day 2013). Reposting this from Truthout.

With Americans’ interest in socialism rising, we need to seriously consider alternative designs to the current system, argues Alperovitz, in this practical critique of some known models.

Little noticed by most Americans, Merriam Webster, one of the world’s most important dictionaries, announced a few months ago that the two most looked-up words in 2012 were “socialism” and “capitalism.”

Traffic for the pair on the company’s website roughly doubled from the year before. The choice was a “kind of no-brainer,” observed editor at large, Peter Sokolowski. “They’re words that sort of encapsulate the zeitgeist.”

Leading polling organizations have found converging results among younger Americans. Two recent Rasmussen surveys, for instance, discovered that Americans younger than 30 are almost equally divided as to whether capitalism or socialism is preferable. Another Pew survey found those aged 18 to 29 have a more favorable reaction to the term “socialism” by a margin of 49 to 43 percent.

Note carefully: These are the people who will inevitably be creating the next American politics and the next American system.

As economic failure continues to create massive social and economic pain and a stalemated Washington dickers, search for some alternative to the current “system” is likely to continue to grow. It is clearly time to get serious about a different vision for the future. Critically, we need to be far more sophisticated about what a meaningful “systemic design” that might undergird a new direction (whether called “socialism” or whatever) would entail.

Classically, the central idea undergirding various forms of “socialism” (and there have been many, many forms, some of which use the terminology, some not) is democratic ownership of “the means of production,” or “capital,” or more simply, “productive wealth.” Quite apart from questions of exploitation, systemic dynamics (and “contradictions”), the core idea is simple and straightforward: Those who own wealth - and the corporations that operate it - have far more power to control any system than those who don’t.

In a nation in which a mere 400 people own more wealth than the bottom 180 million together, the point should be obvious. What is new in our time in history is that the traditional compromise position - namely progressive, or social democratic or liberal politics - has lost is capacity to offset such power even in the modest (compared, for instance, to many European states) ways the American welfare state once represented. Indeed, the emerging direction is to cut back previous gains in many areas - not to sustain or enlarge them. Even Social Security is now on the table for cuts.

Perhaps the most important reason for the decline of the traditional reform option is the decline of labor: Union membership has steadily decreased from roughly 35 percent of the labor force in 1954, to 11.3 percent now - a mere 6.6 percent in the private sector.

Along with this decay, and give or take an exception here and there, major trends in income and wealth, in civil liberties, in ecological devastation (and the release of climate-changing gases), in poverty and many other important indicators have been “going South” for several decades.

It is, accordingly, not surprising that dictionary look-ups and polls show interest in “something else.” If, as is likely, the trends continue, that interest is also likely to increase. But what, specifically, might that “something else” entail? And is there any reason to hope - even as interest in the word “socialism” grows in the abstract - that we might move from where we are to “some other system” that might nurture equality, liberty, ecological sustainability, even global peace, more than the current decaying one we now have?

New Models of Socialist Structures

The classic model of socialism involved state (national) ownership of most large-scale capital and industry. But it is now clear to most observers that the concentration of such ownership in the state also commonly brings with it a concentration of political power as well; hence, the model can be detrimental to democracy as well as liberty (to say nothing, in real world experience, of the environment).

Alternative places to locate ownership have been suggested by different traditions: in cooperatives, in worker-owned firms, in municipalities, in regions, even in neighborhoods. Some of the advantages and challenges involved in the various forms are also well-known:

Starting at the ground level, there appear in virtually all studies to be very good reasons - for small and medium-size firms - to arrange ownership through cooperatives and worker-owned and self-managed enterprises. This is where direct democratic participation is (or can be) strongest, where a new culture can be developed and where a very different vision of work can evolve. Very solid proposals have been offered in such books as John Restakis’ Humanizing the Economy: Co-operatives in the Age of Capital and Richard Wolff’s Democracy at Work: A Cure for Capitalism (on what he calls “worker self-directed enterprises”).

On the other hand, for larger, significant-scale enterprises, worker-ownership may not solve some critical problems. When worker-owned large firms operate in a market-based system (as proposed by some progressive analysts), groups of workers in such firms may develop narrow interests that are not necessarily the same as those of the society as a whole. (It may be in their interests, for instance, to pollute the community’s air and water rather than pay cleanup costs - especially when the firm faces stiff competition from other private or worker-owned companies.) Studies of worker-owned plywood companies in the Northwest found that all too easily workers developed narrow “worker-capitalist” attitudes (and conservative political views) as they competed in the marketplace. Nor does such ownership solve problems of inequality: Workers who “own” the garbage companies are clearly on a different footing, for instance, than specific groups of workers lucky enough to “own” the oil industry.

Often here - and in several other variants of socialist ideas - it is hoped that a new culture (or ideology) or progressive forms of taxation, regulation and other policies can offset the underlying tendencies of the models. However, there is reason to be skeptical of “after-the-fact” remedies that hope to counter the inherent dynamics of any model, since political power and interest group influence often follow from ownership irrespective of good intentions and the hope that progressive political ideals, or ideology, will save the day. If the attitudes nurtured by the plywood co-ops turn out to be the norm, then new worker-owned companies would likely not generate strong support for regulations and taxation that help society at large but restrict or tax their own firm.

Let me stress that we simply do not know whether this might or might not be the case. It is, however, a mistake to assume either that socially responsible regulations can be “pasted on” to any institutional substructure (especially if they create costs to that substructure), or that institutions will automatically generate a sufficiently powerful cooperative culture and institutional power dynamic in favor of regulations and taxation even if it adds costs to their own institution and is detrimental to the material interests of those involved.

To get around some of these problems, some theorists have proposed democratically managed enterprises that are nonetheless owned by the broader society through one or another structural form. Although workers in the “self-managed” firm could gain from greater efficiency and initiative, major profits would go to the society as a whole. Still, note that in such cases, too, the incentive structure of the competitive market tends to create incentives to reduce costs - for instance, by externalizing environmentally destructive wastes. Also, when there are economies of scale, market-based systems generate very powerful pressures to adopt new technologies and prioritize growth (or lose out to other firms that also are under pressure to grow and adopt new technologies) - and this dynamic, too, runs counter to the needs of an ecologically sustainable future.) John Bellamy Foster’s The Ecological Revolution, among other efforts, gives depth to the ecological foundational arguments further systemic designs must consider.

Designing for Community

We are clearly at the exploratory stage in connection with these matters, but the really important question is clearly whether a new model might inherently generate outcomes that do not require “after-the-fact” policy fixes or attempted fixes it is hoped the political system will supply. Especially since such “fixes” come out of a larger culture, the terms of reference of which are significantly set by the underlying economic institutions, and if these develop competitive and growth-oriented attitudes, the outcomes are likely to be different from those hoped for by progressive proponents. Lest we jump to any quick conclusions, it is again important to be clear that no one has as yet come up with a serious “model” that might both achieve efficiencies and self-directed management - and also work to create an equitable, ecologically sustainable larger culture and system. All have flaws.

Some of the problems and also some of the design features of alternatives, however, begin to suggest some possible directions for longer-term development:

For instance, a third model that has traditionally had some resonance is to locate primary ownership of significant scale capital in “communities” rather than either the state or specific groups of workers - i.e. in geographic communities and in political structures that are inclusive of all the people in the community. (By definition geographic communities inherently include not only the workers who at any moment in time may only include half the population, but also stay-at-home, child-rearing males or females, the elderly, the infirm, children and young people in school - in short the entire community.)

Community models also inherently “internalize externalities” - meaning that unlike private enterprise or even worker-owned companies that may have a financial interest in lowering costs by not cleaning up environmentally destructive practices, community-owned firms are in a different position: If the community chooses to continue such practices, it is polluting itself, a choice it can then examine from a comprehensive perspective - and in a framework that does not inherently pose the interests of the firm against community-wide interests.

Variations on this model include the “municipal socialism” that played so important a role in early 20th century American socialist politics - and is still evident in more than 2,000 municipally owned utilities, a good deal of new municipal land development and many other projects. “Social ecologist” Murray Bookchin gave primary emphasis to a municipal version of the community model in works like Remaking Society: Pathways to a Green Future, and Marxist geographer David Harvey has begun to explore this option as well. (As Harvey emphasizes, any “model” would likely also have to build up higher level supporting structures and could not function successfully were it left to simply float in the free market without some larger supporting system.)

Current suggestive practical developments in this direction include a complex or “mixed” model in Cleveland that involves worker co-ops that are linked together and subordinated to a community-wide, nonprofit structure - and supported by something of a quasi-planning system (directed procurement from hospitals and universities that depend in significant part on public financial support). An earlier model involving joint community and worker ownership was developed by steelworkers in Youngstown, Ohio, in the late 1970s.

The Jewish theologian Martin Buber also offered a community-oriented variation based on cooperative ownership of capital in one geographic community. He saw this “full cooperative” (and confederations of such communities) as an answer the problems both of corporate capitalism and of state socialism. Buber’s primary practical experimental demonstration was the Israeli cooperative commune (kibbutz), but the principle might well be applied in other forms. Karl Marx’s discussion of the Paris Commune (and of the Russian village commune or mir) is also suggestive of possibilities in this direction.

In the various community models there is also every reason to expect that specific communities will develop “interests” that may or may not be the same as those of the society as a whole. (Again think of communities located on top of important natural resources versus others not so favored.) The formula based on community ownership, however, may have a potential advantage that might under certain circumstances - and with clear intent - help at least partly offset the tendency for any structural form to produce narrow interest-group ideas and power. This is the simple fact that a fully inclusive structure that nurtures ideals of “community” - as opposed to ideas of individual ownership, on the one hand, or worker-group ownership of specific firms, on the other - may offer greater possibilities for building a common culture of community, one in which norms of equal treatment and common interest are inherently generated by the structural design itself (at least within communities and possibly beyond.)

To the extent this is so, or could be nurtured, a systemic design based on communities (or joint worker-community ownership) might both allow for decentralization and also for the generation of common values. A subset of issues also involves smaller scale geographic community ownership, in the form of neighborhoods. And such a model might also include a mix of smaller scale worker-owned and cooperative forms, and even (larger scale) state and nationally owned public enterprise as well - a structural form that is now far more common and efficient in many countries around the world than is widely understood.

Questions of Scale

Social ownership by neighborhoods, municipalities, states, and, of course, nations (all with or without some formula of “joint” worker ownership) are not the only models based on the fact that geography is commonly inherently inclusive of all parties - and therefore potentially capable of helping nurture inclusive norms and inclusive cultures. A final formula (for the moment) for significant scale and ultimately large industry is also based on geography, but at a different level still. This attempts to resolve some of these problems (and that of genuine democratic participation) by defining the key unit as a region, a formula urged by the radical historian, the late William Appleman Williams, as especially appropriate to a very large nation like the United States. It is not often realized how very different in scale the United States is from most European nations: Germany, for instance, can be tucked into a geographic area the size of Montana. Nor have many faced the fact that our current 315 million-person population is likely to reach 500 million over coming decades (and possibly a billion by the end of the century, if the US Census Bureau’s high estimate were to be realized.) During the Depression, various regional ownership models like the Tennessee Valley Authority were proposed, some of which were far more participatory and democratic in their design than the model that is currently in place. Legislation to create seven large-scale, publicly-owned regional efforts was, in fact, supported by the Roosevelt Administration at certain points in time.

Many other variations, of course, also have been proposed. The Parecon model, for instance, would attempt to replace a system of market exchanges with a system in which citizens would iteratively rank their preferences for consumer goods along with proposed amounts of proffered labor time. Proposals, like that of David Schweickart in After Capitalism, pick up on forms of worker self management, but also emphasize national ownership of the underlying capital. Seth Ackerman, in a recent essay for Jacobin, urges a worker-controlled model, but stresses the need for independent sources of publicly controlled investment capital. Other thinkers, like Michael Leobowitz in his book, The Socialist Alternative, have taken inspiration from Latin America’s leftward movement, and especially from Venezuela, to articulate a participatory vision of socialism rooted in democratic and cooperative practices. Joel Kovel in The Enemy of Nature argues that the impending ecological crisis necessitates a fundamental change away from the private ownership of earth’s resources.

And, of course, the question of planning versus markets needs to be put on the list of design challenges. Planning has its own long list of challenges - including, critically, who controls the planners and whether participatory forms of planning may be developed drawing on smaller scale emerging experience and also on a much more focused understanding of what needs to be planned and what ought to be independent of public direction. (Also how the market can be used to keep a planning system in check.)

As noted, there is also the question of enterprise scale - a consideration that suggests possible mixes of different forms of social ownership: where to locate the ownership and control of very large scale firms is one thing; very small another; and intermediate still another. Most “socialist” models these days also allow for an independent sector that includes small independent capitalist firms, especially in the innovative high-tech sector.

Related to all this is the question of function: The development and management of land, for instance, is commonly best done through a geographic institution - i.e. a neighborhood or municipal land trust. Public forms of banking and finance tend also to be best anchored in (though operated independently of) cities, states and nations. Though medical practices must be local, social or socialized health systems tend to work best in areas that include large populations - i.e. states or nations. In some cases, quite apart from efficiency considerations, ecological considerations make regions especially appropriate. (One of the rationales, originally, for the Tennessee Valley Administration had to do with managing a very challenging river system.)

On the Ground Now

Finally, there is much to learn from models abroad - particularly Mondragon, on the one hand, and the worker-cooperative and other networks in the Emilia Romagna region of Italy, on the other. The first, Mondragon, has demonstrated how an integrated system of more than 100 cooperatives can function effectively (and in areas of high technical requirement) - and at the same time maintain an extremely egalitarian and participatory culture of institution control. The Italian cooperatives have demonstrated important ways to achieve “networked” production among large numbers of small units - and further, to use the regional government in support of the overall effort. Though the experience of both is extraordinary, simple extrapolations may or may not be possible: Both models, it is also important to note, developed out of historical contexts that helped create intense cultural and political solidarity - contexts also of extraordinary repression by fascist regimes, Franco in Spain, Mussolini in Italy. Finally, although the Emilia Romagna cooperatives are effective in their use of state policy, both models are best understood as institutional “elements” that may contribute to a potential national solution. Neither claims to, or attempts to, develop a coherent overall “systemic” design for a nation.

These various abstract considerations come down to earth when one realizes that there is far more going on, practically, on the ground related to the ownership forms than most people realize - a great deal that is not covered by the increasingly hobbled and financially constrained press. For a start, around 130 million Americans - 40 percent of the population - are members of one or another form of cooperative, a traditional collective ownership form that now includes large numbers of credit unions, agricultural co-ops dating back to the 1930s, electrical co-ops prevalent in many rural areas, insurance co-ops, food co-ops, retail co-ops (such as the outdoor recreational company REI and the hardware purchasing cooperative ACE), health-care co-ops, artist co-ops and many, many more.

There are also many, many worker-owned companies structured in ways different from traditional co-ops - indeed, around 11,000 of them, involving 10.3 million people, in virtually every sector, some very large and sophisticated. Technically, these companies are structured as ESOPs (Employee Stock Ownership Plans) - and in fact 3 million more individuals are involved in worker-owned companies of this kind than are members of unions in the private sector. (Though there have been a variety of problems with this form, there has also been evolution with greater worker control and also experiments with unionization that in the future might suggest important additional possibilities.) Finally and critically, the United Steelworkers have put forward a new direction in union-worker co-ops.

There are also thousands of “social enterprises” that use democratized ownership to make money and use both the money and the enterprise itself to achieve a broader social purpose. By far the most common social enterprise is the traditional Community Development Corporation, or CDC. Nearly 5,000 have long been in operation in almost every US city of significant size. For the most part, CDCs have served as low-income housing developers and incubators for small businesses. Early on in the 50-year history of the movement, however, a different, larger vision was in play - one that is still present in some of the more advanced CDC efforts and one that suggests additional possibilities for the future.

Still another form of democratized ownership involves growing numbers of “land trusts” - essentially neighborhood or municipal corporations that own housing and other property in ways that prevent gentrification and turn development profits into support of low- and moderate-income housing. One of the best known is the Champlain Housing Trust in Burlington, Vermont, which traces its modest beginnings to the early 1980s and now provides accommodation for more than 2,000 households. Hundreds of such collective ownership efforts now exist, and new land trusts are now being established on an expanding, ongoing basis in diverse contexts and cities all over the country.

Since 2010, twenty states have also considered legislation to establish public banks like that of North Dakota, which has operated with strong public support for more than nine decades. Approximately 20 states have considered legislation to establish single-payer health-care plans. Nor should we forget that the United States government de facto nationalized General Motors and AIG, one of the largest insurance companies in the world, during the recent crisis. It started selling them back once the profits began to roll, but in future crises, different outcomes might be ultimately achieved if practical experiments at the local and state level begin to create experiences that might be generalized to national models when the time is right - especially if the current system continues to decay and deteriorate. (Many of the national models that became the core programs of the New Deal were incubated in the state and local “laboratories of democracy” in the decades prior to the time national political possibilities opened up).

At this stage of development, there is every reason to experiment with many forms - a “community-sustaining” direction that I have suggested might be called a “Pluralist Commonwealth” to emphasize the plurality of common or democratized wealth-holding efforts.

Getting Serious

I obviously do not hope in this brief sketch to try to offer a fully developed alternative. My goal is much simpler: First, to suggest that the questions classically posed by the word “socialism” that is now coming back into public use need to be discussed and debated by a much broader group than has traditionally been concerned with these issues; and second, to suggest further that if one looks closely there is evidence that some of the potential real world elements of a solution may be developing in ways that might one day open the way to a very American and very populist variant (whether called “socialist” or not). It is time, accordingly, to discuss the deeper design issues carefully and thoughtfully and in ways that involve a much larger share of the very large numbers of people, beyond the traditional left, who the polls and dictionary inquiries suggest may be interested in these questions.

Even as we learn more and more about the various forms and their positive and negative features and tendencies, hopefully we can engage in a far-reaching and thoughtful debate about how a new model might be created that is both systemically sophisticated and also appropriate to American culture and traditions - a model that nurtures democracy and a culture of inclusiveness and ecological sanity. Many serious and committed people on the left have been struggling with these issues and keeping the critical questions alive for decades. Even though the way forward, politically, is obviously daunting, difficult and uncertain, it is time to widen the dialogue in ways that include the millions of Americans who now seem increasingly open to the challenge.

Nor should the pessimism of the moment undercut what needs to be done: Anyone looking at Latin America 30 years ago might easily have been judged foolish to think change could occur - and that debate concerning these kinds of questions was important. Yet even during and through the pain - and the torture and dictatorship - new beginnings somehow were made in many areas and by many people. Our own course may be difficult, but easy pessimism is an all-too-common escape mechanism to avoid responsibility. It is also comforting: If one buys the judgment that nothing can ever be done, that it is impossible, one has an excuse not to try and also not to try to reach out to others. The fact is the failings of the present system are themselves forcing more and more people to explore new ideas and develop new experiments and new political efforts.

The important points to emphasize are three: [1] There is openness in the public, and especially among a much, much broader group than many think, to discussing these issues - including even the word “socialism;” [2] It is accordingly time to get very serious about some of the challenging substantive and theoretical issues involved; and [3] There are also many on-the-ground experiments, and projects and developments that suggest practical directions that are under way, but also that a new politics (whatever it is called) might begin to build upon them if it got serious.

Posted here with the permission of Truthout and Professor Gar Alperovitz.

Gar Alperovitz is the Lionel R. Bauman Professor of Political Economy at the University of Maryland and co-founder of the Democracy Collaborative. He is the author of the forthcoming What Then Must We Do?: Straight Talk About the Next American Revolution (Chelsea Green, May Day 2013).

 



 

Below, Professor Alperovitz addresses the person sitting in your chair about the future of America:

 

Thank You Richard Metzger

The Boston Marathon Bombing: Keep Calm and Carry On

from The Atlantic by Bruce Schneier

It is easy to feel scared and powerless in the wake of attacks like those at the Boston Marathon. But it also plays into the perpetrators' hands.

As the details about the bombings in Boston unfold, it'd be easy to be scared. It'd be easy to feel powerless and demand that our elected leaders do something -- anything -- to keep us safe.

It'd be easy, but it'd be wrong. We need to be angry and empathize with the victims without being scared. Our fears would play right into the perpetrators' hands -- and magnify the power of their victory for whichever goals whatever group behind this, still to be uncovered, has. We don't have to be scared, and we're not powerless. We actually have all the power here, and there's one thing we can do to render terrorism ineffective: Refuse to be terrorized.

It's hard to do, because terrorism is designed precisely to scare people -- far out of proportion to its actual danger. A huge amount of research on fear and the brain teaches us that we exaggerate threats that are rare, spectacular, immediate, random -- in this case involving an innocent child -- senseless, horrific and graphic. Terrorism pushes all of our fear buttons, really hard, and we overreact.

But our brains are fooling us. Even though this will be in the news for weeks, we should recognize this for what it is: a rare event. That's the very definition of news: something that is unusual -- in this case, something that almost never happens.

Remember after 9/11 when people predicted we'd see these sorts of attacks every few months? That never happened, and it wasn't because the TSA confiscated knives and snow globes at airports. Give the FBI credit for rolling up terrorist networks and interdicting terrorist funding, but we also exaggerated the threat. We get our ideas about how easy it is to blow things up from television and the movies. It turns out that terrorism is much harder than most people think. It's hard to find willing terrorists, it's hard to put a plot together, it's hard to get materials, and it's hard to execute a workable plan. As a collective group, terrorists are dumb, and they make dumb mistakes; criminal masterminds are another myth from movies and comic books.

Even the 9/11 terrorists got lucky.

If it's hard for us to keep this in perspective, it will be even harder for our leaders. They'll be afraid that by speaking honestly about the impossibility of attaining absolute security or the inevitability of terrorism -- or that some American ideals are worth maintaining even in the face of adversity -- they will be branded as "soft on terror." And they'll be afraid that Americans might vote them out of office. Perhaps they're right, but where are the leaders who aren't afraid? What has happened to "the only thing we have to fear is fear itself"?

Terrorism, even the terrorism of radical Islamists and right-wing extremists and lone actors all put together, is not an "existential threat" against our nation. Even the events of 9/11, as horrific as they were, didn't do existential damage to our nation. Our society is more robust than it might seem from watching the news. We need to start acting that way.

There are things we can do to make us safer, mostly around investigation, intelligence, and emergency response, but we will never be 100-percent safe from terrorism; we need to accept that.

How well this attack succeeds depends much less on what happened in Boston than by our reactions in the coming weeks and months. Terrorism isn't primarily a crime against people or property. It's a crime against our minds, using the deaths of innocents and destruction of property as accomplices. When we react from fear, when we change our laws and policies to make our country less open, the terrorists succeed, even if their attacks fail. But when we refuse to be terrorized, when we're indomitable in the face of terror, the terrorists fail, even if their attacks succeed.

Don't glorify the terrorists and their actions by calling this part of a "war on terror." Wars involve two legitimate sides. There's only one legitimate side here; those on the other are criminals. They should be found, arrested, and punished. But we need to be vigilant not to weaken the very freedoms and liberties that make this country great, meanwhile, just because we're scared.

Empathize, but refuse to be terrorized. Instead, be indomitable -- and support leaders who are as well. That's how to defeat terrorists.

original article is here at The Atlantic.

12 million Americans believe lizard people run the USA

from Public Policy Polling via BoingBoing

From Public Policy Polling: "Do you believe that shape-shifting reptilian people control our world by taking on human form and gaining political power to manipulate our societies, or not?"
Do 4%
Do not 88%
Not sure 7%



Democrats and Republicans differ on conspiracy theory beliefs

Raleigh, N.C. – PPP’s latest national poll finds the American public differing along party lines on many conspiracy theories involving issues like global warming and the Iraq War, although some of the more bizarre ideas merit bipartisan skepticism.

The poll finds 28% of voters believe that a secretive power elite with a globalist agenda is conspiring to eventually rule the world through an authoritarian world government, or New World Order. 34% of Republicans and 35% of independents believe in the New World Order threat compared to just 15% of Democrats.

44% of voters believe the Bush administration intentionally misled the public about weapons of mass destruction to promote the Iraq War, while 45% disagree. 72% of Democrats believed the statement while 73% of Republicans did not. 22% of Democrats, 33% of Republicans and 28% of independents believe Saddam Hussein was involved in the 9/11 terrorist attacks. Just 6% of voters think Osama bin Laden is still alive.

There is an intense partisan divide on whether or not global warming is a hoax: 58% of Republicans agree that it is a conspiracy, while 77% of Democrats disagree. 20% of Republicans believe that President Obama is the Anti-Christ, compared to 13% of independents and 6% of Democrats who agree. 51% of Americans believe there was a larger conspiracy at work in the JFK assassination, while 25% think Lee Harvey Oswald acted alone. 29% believe aliens exist and 21% believe a UFO crashed at Roswell in 1947.

“Even crazy conspiracy theories are subject to partisan polarization, especially when there are political overtones involved,” said Dean Debnam, President of Public Policy Polling. “But most Americans reject the wackier ideas out there about fake moon landings and shape-shifting lizards.”
5% of respondents believe that Paul McCartney died and was secretly replaced in the Beatles in 1966, and just 4% believe shape-shifting reptilian people control our world by taking on human form and gaining power. 7% of voters think the moon landing was fake.

PPP surveyed 1,247 registered American voters from March 27th to 30th. The margin of error for the overall sample is +/-2.8%. This poll was not paid for or authorized by any campaign or political organization. PPP surveys are conducted through automated telephone interviews.