Debate on austerity and the eurozone
Author Archives: News Sources
Egyptian police clash with protesters in Tahrir Square
The New York Times reports: Thousands of protesters chanting for an end to military rule battled riot police officers firing tear gas, rubber bullets and bird shot in Tahrir Square on Saturday, as the military-led interim government appeared to soften its demands for special powers and protections in the future Egyptian constitution.
Coming just nine days before the scheduled beginning of parliamentary elections, the clashes were the biggest outbreak of violence here since the ouster of President Hosni Mubarak in February, and the most violent manifestation yet of the growing anger at the ruling military council.
The clashes began midday Saturday after the police cleared out the last remnants of a large demonstration in Tahrir Square the day before. That demonstration, organized by Islamists but appearing to represent a far broader cross-section of Egyptians, drew tens of thousands of people calling for a swift end to military rule.
The fighting on Saturday began after news circulated that the security forces had moved into the square, the iconic heart of the Egyptian revolution, to force out a few hundred protesters who had spent the night. Hundreds and eventually thousands of other civilians stormed into the square to defend it, setting off battles that spread across downtown Cairo into the night.
Protesters threw rocks at police vehicles, capturing a police truck and passing out handcuffs, hats and other gear found inside. Others smashed the sidewalk into rocks to hurl at the police, and threw Molotov cocktails. Plumes of black smoke from a burning police truck wafted through the white clouds of tear gas.
Retreating riot police officers fired nonlethal weapons from their trucks to try to push back the crowd.
“Police and thugs and thieves,” the protesters chanted. Taking aim at Field Marshal Mohamed Hussein Tantawi, who leads the ruling military council, they adapted the signature chant of the Arab Spring revolts sweeping the region: “The people want to bring down the field marshal.”
Saif al-Islam Gaddafi arrested in Libya
Chas Freeman considers the global outlook for 2012
From a speech by Chas Freeman given in Macau, China, yesterday: Europe used to be boringly predictable, which was good for business. Now bits of it have reverted to being excitingly unreliable, which is bad. Repeated crises have addicted European leaders to summits, where they agree on partial solutions to problems and create new ones, then go home to think up still more ways to unnerve each other and investors. The year ahead seems certain to feature more summits and more Eurotorture of the world’s financial nervous system. The fiscal sobriety and punctiliousness of northern Europeans will not soon prevail over the bouzoukinomics and bunga bunga politics of Europe’s exuberantly irrational and overly indebted south.
More fundamentally, however, as a club of clubs, Europe has just shown itself to be much less than the sum of its far too many movable parts. In some of the clubs that make up Europe, members are seriously tired of each other as well as of the way responsibility is apportioned. The mismatch between the eurozone’s membership and that of the European Union, in particular, makes German creditworthiness, not the EU, central to the credibility of the euro. And there is an obvious contradiction between a bureaucratically administered supranational currency and the democratically exercised sovereign authority of Europe’s many nation-states.
As Greece has just demonstrated, the European project is seriously incomplete and vulnerable to disruption by reckless acts of political brinkmanship. In the absence of Europe-wide democracy, national democracy and multinational community-building no longer seem compatible. Decisions based on local interests, no matter how legitimately they are arrived at, can threaten both pan-European and global interests in market stability and economic revival. Sadly, in many ways, Europe remains more colloquium than commonwealth — more a confederation of small minds and big egos than a federal union of peoples. The incongruities and incompetencies of a still far-from-united Europe have become a problem not just for Europeans but for the world.
The destabilizing effects of financial uncertainty may now be Europe’s most notable export. But the United States seems determined to one-up the perversity of European indecisiveness. Europe has the will to act, but not the political machinery to act coherently. America has the mechanisms and the resources needed to make decisions and implement them. It lacks the wit, the will, and the spirit of political accommodation to do so. In effect, the United States now suffers from fiscal anorexia — economic self-starvation born of an obsession with curing the imagined obesity of government. But America’s civilian public sector is already too lean to sustain the nation’s socio-economic health and competitiveness. The United States is disinvesting in its human and physical infrastructure — consuming its sinews — at the very moment when it most needs to rebuild its strength. India may be the world’s largest functioning democracy but America is now seen everywhere as its largest dysfunctional one.
Ideological delusion, self-indulgence, arrogance, and unbridled greed got America — and the world economy — into their current mess. Devotion to fanciful concepts, despite their catastrophic results when actually applied, has undermined the credibility of the “full faith and credit” of the United States. Many Americans remain wedded to the bizarre notions that the redistributive functions of government are a net drag on the economy, that reducing government investment and outlays will somehow generate jobs, that financial engineering adds real value to the economy, and that unequal income distribution stimulates economic growth. In a less narcissistic political environment, people would laugh at the idea that cutting public spending — and thereby contracting the economy — could possibly create jobs and stimulate growth or that a “SuperCommittee” of the finest politicians that vested interests can keep in office could magically balance a budget that is 40 percent in the red solely by cutting non-defense expenditures, without raising revenues.
Vilifying rival, Wall St. rallies for Senate ally
The New York Times reports: The warning has ricocheted around the financial world in recent weeks, in conversations at Midtown restaurants and Washington fund-raisers, carrying urgent appeals for money from financial executives around the Northeast: The battle to re-elect Senator Scott P. Brown, the Republican from Massachusetts, just got a little more interesting.
“Senator Brown is a free-market advocate who believes that our strength as a nation comes from the ingenuity and hard work of its people,” read an invitation to a fund-raiser at a New Canaan, Conn., country club last week, that circulated among hedge fund and private equity executives. His Democratic opponent, the invitation noted, was all but certain to be the financial industry’s most prominent foe: “big government liberal Elizabeth Warren.”
Mr. Brown, a freshman who harnessed populist Tea Party anger to win the seat once held by Edward M. Kennedy, has taken more money from the financial industry than almost any other senator: all told, more than $1 million during the last two years, according to data from the Center for Responsive Politics.
Of the 20 companies that accounted for the most campaign donations to Mr. Brown, about half were prominent investment or securities firms like Morgan Stanley, Fidelity Investments and Bain Capital. His donors include such blue-chip names as Gary Cohn, the president of Goldman Sachs, and the hedge fund kings John Paulson and Kenneth Griffin.
Mr. Brown, in turn, has been an important ally at critical moments, using his swing vote in the Senate to wring significant concessions out of Democrats on last year’s financial regulation bill, including helping strip out a proposed $19 billion bank tax and weakening a proposal to stop commercial banks from holding large interests in hedge funds and private equity funds.
But the intensity of his relationship with Wall Street was altered in September, when Mr. Brown got a new opponent: Ms. Warren, a law professor and consumer advocate who has described herself as an intellectual godmother of the Occupy Wall Street movement.
Ms. Warren’s relentless manner and withering attacks on predatory lenders have won her enemies from Wall Street to Washington, where as a member of an oversight panel she helped usher in the largest expansion in decades of federal oversight of the financial industry. Now Mr. Brown’s support for the industry — and Ms. Warren’s battles with it — are becoming a defining issue in one of the most hotly contested Senate races and a magnet for special interest money.
Police pepper spray peaceful UC Davis students
Rep. Deutch introduces OCCUPIED constitutional amendment to ban corporate money in politics
Zaid Jilani reports: In one of the greatest signs yet that the 99 Percenters are having an impact, Rep. Ted Deutch (D-FL), a member of the House Judiciary Committee, today introduced an amendment that would ban corporate money in politics and end corporate personhood once and for all.
Deutch’s amendment, called the Outlawing Corporate Cash Undermining the Public Interest in our Elections and Democracy (OCCUPIED) [PDF] Amendment, would overturn the Citizens United decision, re-establishing the right of Congress and the states to regulate campaign finance laws, and to effectively outlaw the ability of for-profit corporations to contribute to campaign spending.
“No matter how long protesters camp out across America, big banks will continue to pour money into shadow groups promoting candidates more likely to slash Medicaid for poor children than help families facing foreclosure,” said Deutch in a statement provided to ThinkProgress. “No matter how strongly Ohio families fight for basic fairness for workers, the Koch Brothers will continue to pour millions into campaigns aimed at protecting the wealthiest 1%. No matter how fed up seniors in South Florida are with an agenda that puts oil subsidies ahead of Social Security and Medicare, corporations will continue to fund massive publicity campaigns and malicious attack ads against the public interest. Americans of all stripes agree that for far too long, corporations have occupied Washington and drowned out the voices of the people. I introduced the OCCUPIED Amendment because the days of corporate control of our democracy. It is time to return the nation’s capital and our democracy to the people.”
Kissinger in ’72: Jews ‘self-serving bastards’
Ynet reports: Confidential files released for publication in the United States on Friday reveal a new side to the Jewish-American politician Henry Kissinger, which might anger the Jewish community.
Kissinger, who served as the United States National Security Advisor and later as Secretary of State in the administrations of Presidents Richard Nixon and Gerald Ford, had demanded to divide the Sinai Peninsula into “security zones” prior to the Yom Kippur War in 1973.
According to the secret documents released by the State Department, back in 1972 Kissinger wished to put economic and ethical pressure on Israel, calling American Jewish groups lobbying the Nixon White House self-serving “bastards.”
The files also show that Russia had claimed the “Arabs” were willing to recognize the State of Israel at that time.
Kissinger had a huge impact on American foreign policy, helping reach certain degree of conciliation between Washington and Moscow during the cold war. As the relations between both countries grew warmer, the Jewish American lobbyists amped up the pressure on Washington in an attempt to aid their Soviet brothers.
One of Nixon’s advisors, Leonard Garment, reported he was flooded with letters and phone calls from Jews and asked for Kissinger’s advice on the matter.
According to the transcripts, Kissinger, who is Jewish, replied to Garment: “Is there a more self-serving group of people than the Jewish community?”
In response, Garment, also Jewish, said: “None in the world.”
Kissinger responded: “What the hell do they think they are accomplishing? You can’t even tell bastards anything in confidence because they’ll leak it.”
More than 20% U.S. children live in poverty, Census says
Reuters reports: The number of children in the United States considered poor rose by 1 million in 2010, the U.S. Census said Thursday, with more than one in five of the youngest Americans now living in poverty.
“Children who live in poverty, especially young children, are more likely than their peers to have cognitive and behavioral difficulties, to complete fewer years of education, and, as they grow up, to experience more years of unemployment,” the Census said.
In 2010, when the Census survey was conducted, 21.6 percent of children across the country were poor, compared to 20 percent in 2009.
That was mainly due to a rise in the number of children living below the federal poverty threshold, defined as an annual income of $22,314 for a family of four, to 15.7 million from 14.7 million in 2009.
The figures reflect the overall state of the economy. The national poverty rate stands at 15.3 percent and the unemployment rate is at 9 percent some two years after the recession that began in 2007 officially ended.
Egypt Islamists demand the end of military rule
The New York Times reports: Tens of thousands of Islamists jammed Tahrir Square on Friday, demanding the swift exit of Egypt’s interim military rulers in the most significant challenge to their authority since the ouster of President Hosni Mubarak nine months ago.
The huge turnout was the first time that Egypt’s Islamists had so openly and aggressively challenged military rule, ending an uneasy truce that had prevailed as long as the military appeared willing to allow the Islamists as much of a say in Egypt’s future as they could win at the ballot box.
That truce fell apart, on the eve of parliamentary elections, after the military council spelled out for the first time its intention to preserve a decisive role for itself in Egyptian politics far into the future, elevating itself above civilian control and imposing rules to protect individual and minority rights. And after sitting out many of the protests organized by liberals since Mr. Mubarak’s ouster, Islamists took to the streets on Friday in a fierce backlash.
“The people didn’t sacrifice hundreds of lives in the revolution so that the military would jump over their will,” said Mohamed Ibrahim, a teacher at a religious school who traveled from Mansoura, about 75 miles away, to attend. “If they can do that, what is the point of parliamentary elections?”
The rally represented the beginning of a new battle between Egypt’s two most powerful political forces, the military and the once-outlawed Muslim Brotherhood, that leaves Egyptian liberals and leftists anxious and divided on the sidelines.
Al-Masry Al-Youm reports: A number of political forces and intellectuals have prepared a lengthy memorandum that includes a drastically reformed plan for the remainder of Egypt’s transitional period.
Al-Masry Al-Youm has obtained a copy of the document, which the drafters said they will submit to the ruling Supreme Council of the Armed Forces (SCAF) within days.
The memorandum suggests postponing parliamentary elections, and in their place forming a “national rescue cabinet,” having Egyptians elect a constituent assembly to draft the new constitution, holding presidential elections and fully transferring power to a civilian government. After all this, the memorandum reads, parliamentary elections should be held in accordance with the laws set out in the new constitution.
Among those involved in drafting the memorandum were former President of the Democratic Front Party Osama al-Ghazaly Harb, presidential hopeful Mohamed ElBaradei, Coordinator of the National Association for Change Abdel Galil Mostafa, writer Alaa al-Aswany and journalist Sakina Fouad.
Syria forces attacking a protester forcing him to kiss a photo of Assad
To Mideast peacemakers: You are all George Costanza!
Larry Derfner writes: Jason Alexander (“George Costanza” in Seinfeld) is a good liberal, he cares about Israel and wants to see peace, he wants to see Palestinians have their freedom and Israelis their security. He and an American group called “One Voice” were just in Israel and the West Bank again, talking to Shimon Peres and Salam Fayyad, to Israeli and Palestinian notables of all sorts. On Thursday Alexander wrote an op-ed in Yediot Aharonot titled, “Yes, you can,” which was almost mathematically even-handed. He mentioned the 8,000 rockets that battered Sderot, he mentioned the wall and the settlements that strangle Kalkilya. “Abu Mazen [Mahmoud Abbas] can guarantee the support of the Palestinians in the West Bank for an agreement with Israel and force Hamas to respect it. And I believe Netanyahu can guarantee the support of the Israelis.” The problem is “violence on the part of the extremists,” and the solution is negotiations and compromise.
Alexander writes that he’s been talking peace with Israelis and Palestinians for 20 years, which means he probably has a good deal of knowledge about the conflict, and also some perspective. So I’m convinced that privately, he’s not even-handed; privately he knows that Netanyahu and the Israeli government are the rejectionists in this deal, while Abbas and the Palestinian Authority are the conciliatory ones. He can compare Netanyahu and Lieberman to Rabin and Peres, just like he can compare Abbas to Arafat, which must lead him to the conclusion that Israel has been moving away from peace while the Palestinians have been moving toward it. He knows what Palestinian violence was like in the past and what it’s like now. He knows the settler movement at least used to have a fight on its hands, and that it doesn’t anymore. There’s no way an intelligent, knowledgeable, liberal person, which I assume Alexander to be, can really believe that Israel’s leadership and the West Bank’s leadership are equally to blame for this long coma in the peace process.
So why does Alexander write this “yes, you can” crap? Either he’s lying to himself, or he’s afraid – afraid to blame Israel and not the Palestinians, afraid to be called a self-hating Jew, an Arab-lover, afraid of being written off as biased against Israel. So he plays patty-cake – he doesn’t play the “blame game,” he’s “constructive,” he doesn’t take sides, he deals out the same advice to Israelis and Palestinians, and thinks he goes home a peacemaker.
But I imagine Abbas reading his op-ed and saying, “Thanks for nothing, shmuck,” and I imagine Netanyahu reading it and saying, “That’s my boy, George.”
The real cost of Israel’s occupation of the Palestinians
Amira Hass reports: The Israeli occupation is exacting a high price on the Palestinian economy, according to a report by the Palestinian Ministry of National Economy and the Applied Research Institute – Jerusalem – which puts the damage at $6.9 billion a year – what it calls a conservative estimate. The figure is about 85% of the Palestinian GDP for 2010, $8.124 billion.
The calculation includes the suspension of economic activity in the Gaza Strip because of Israel’s blockade, the prevention of income from the natural resources Israel is exploiting because of its direct control over most of the territory and the additional costs for the Palestinian expenses due to restrictions on movement, use of land and production imposed by Israel.
The introduction to the report states that the blocking of Palestinian economic development derives from the colonialist tendency of the Israeli occupation ever since 1967: exploitation of natural resources coupled with a desire to keep the Palestinian economy from competing with the Israeli one.
The report was published at the end of September, a few days after Palestinian President Mahmoud Abbas applied for full membership at the United Nations.
Its publication during the period of the High Holidays meant that it was hardly mentioned in the Israeli media.
By quantifying the losses caused by the Israeli occupation, the authors of the report wished to dispel the mistaken impression that has developed over the past two or three years that the Palestinian economy is flourishing naturally, whereas it is in fact supported by donations that make up the cost of the occupation.
The largest chunk of losses to the Palestinian economy is due to the policy of the blockade on Gaza, which is preventing all production and exports. The calculation was made on the basis of a comparison of the rate of growth in the GDP in the West Bank, which in the years prior to the blockade was similar to the growth rate in Gaza. Thus, the authors of the report estimate that in 2010 the gap between the potential GDP in Gaza (nearly $3 billion ) and the actual GDP was more than $1.9 billion. The Palestinian economy, and especially the agriculture sector, is losing a similar sum because of Israel’s discriminatory distribution of water between Palestinians and Israelis. Relying on a 2009 World Bank report, the authors of the current study find that not only did the Oslo accords freeze in place a situation of unequal distribution of water pumped in the West Bank (a ratio of 80:20 ), but also that Israel is pumping more from the western aquifer than was alloted it in the agreement.
Gaddafi’s son Seif al-Islam seized in southern Libya
The Associated Press reports: Moammar Gadhafi’s son Seif al-Islam was captured in a southern Libyan city along with two of his aides who were trying to smuggle him out of the country, a militia commander said on Saturday.
Bashir al-Tlayeb of the Zintan brigades said that Seif al-Islam was caught in the desert town of Obari, near the southern city of Sabha about 400 miles (650 kilometers) south of Tripoli.
He didn’t elaborate on how Seif al-Islam was captured, but said that he was brought to the city of Zintan, the home of one of the largest revolutionary brigades in Libya.
Al-Tlayeb said that it would be up to the Libya’s ruling National Transitional Council to decide on where the former Libyan leader would be tried.
He also said that there was still no information about wanted former intelligence director Abdullah Senoussi or where he is located.
Seif al-Islam is the last of Moammar Gadhafi’s sons to remain unaccounted for.
The democratization of drones
Spencer Ackerman writes: In the video above, protesters in Warsaw got a drone’s eye view of a phalanx of police in riot gear during a heated Saturday demonstration. The drone — spotted by Wired editor-in-chief and drone-builder Chris Anderson — was a tiny Polish RoboKopter equipped with a videocamera.
As Chris observes, no more do citizens need to wait for news choppers to get aerial footage of a major event. With drones, they can shoot their own overhead video. But the implications run deeper than that.
The Occupy events around the country gained initial notoriety by filming and uploading incidents of apparent police brutality. Anyone with a cellphone camera and a YouTube account could become a videographer, focusing attention on behavior that cops or banks might not want broadcasted or that the media might not transmit. When the New York Police Department cleared out Zuccotti Park on Tuesday, out came the cellphones to document it.
Getting an aerial view is the next step in compelling DIY citizen video.
The developer and operator of the RoboKopter is Artur Książek and whether his aim was to gather intelligence for the protesters or to market his invention is unclear. The video below shows how the aircraft operates.
Tested on Palestinians, perfected on #OWS protesters: Introducing the LRAD Sound Cannon
Max Blumenthal writes: Yesterday, the New York Police Department deployed a strange new weapon against the tens of thousands of demonstrators who converged downtown for the largest protest in Occupy Wall Street’s two month history: the LRAD sound cannon. NYPD officers reportedly blasted Occupy protesters with rays from the LRAD cannon while they sang the American national anthem near Lower Manhattan’s Zuccotti Park (photos here), establishing an atmosphere of fear and intimidation that lasted throughout the evening.
Designed and manufactured by the San Diego-based LRAD Corporation, which was formerly known as the American Technology Corporation, the Long Range Acoustic Device sound weapon is the latest innovation in crowd suppression technology. It is portable and powerful, capable of transmitting a focused ray of 140 decibels of sound at a crowd of people, generating painful cranial vibrations so profound ear plugs become useless. According to LRAD promotional material, the sonic weapon “provides military personnel with a powerful, penetrating warning tone that can be followed by clear voice broadcasts in host nation languages to warn and shape the behavior of potential threats.”
In June, LRAD sold $293,000 worth of its 100X and 500X sound canon systems to the Israeli Ministry of Defense. The contract was part of Israeli Army Commander Maj. Gen. Avi Mizrahi’s investment in $35 million in suppression systems in anticipation of widespread unrest in the occupied West Bank that would supposedly be prompted by the Palestinian Authority’s statehood bid at the United Nations.
The Israeli Army has refined the use of LRAD systems on the civilian population of Palestinian villages engaged in the unarmed popular struggle against Israel’s illegal military occupation. Demonstrators in the village of Beit Ummar have been repeatedly assaulted by Israeli forces armed with LRAD systems, including on October 7, when the Israeli army used the LRAD to attack unarmed demonstrators protesting against the abuse and isolation of Palestinian prisoners held in Israeli jails.
Jewish racism on the rise in Israel
Lessons of the Luddites
Eliane Glaser writes: Two hundred years ago this month, groups of artisan cloth workers began to assemble at night on the moors around towns in Nottinghamshire. Proclaiming allegiance to the mythical King Ludd of Sherwood Forest, and sometimes subversively cross-dressed in frocks and bonnets, the Luddites organised machine-wrecking raids on textile factories that quickly spread across the north of England. The government mobilised the army and made frame breaking a capital offence: the uprisings were subdued by the summer of 1812.
Contrary to modern assumptions, the Luddites were not opposed to technology itself. They were opposed to the particular way it was being applied. After all, stocking frames had been around for 200 years by the time the Luddites came along, and they weren’t the first to smash them up. Their protest was specifically aimed at a new class of manufacturers who were aggressively undermining wages, dismantling workers’ rights and imposing a corrosive early form of free trade. To prove it, they selectively destroyed the machines owned by factory managers who were undercutting prices, leaving the other machines intact.
The original Luddites enjoyed strong local backing as well as high-profile support from Lord Byron and Mary Shelley, whose novel Frankenstein alludes to the industrial revolution’s dark side. But in the digital age, Luddism as a position is barely tenable. Just as we assume that the original Luddites were simply technophobes, it’s become unthinkable to countenance any broader political objections to contemporary technology’s direction of travel.
The promoters of internet technology combine visionary enthusiasm and like-it-or-not realism. So dissent is dismissed as either an irrational rejection of progress or a refusal to face the inevitable. It’s the realism that’s particularly hard to counter; the notion that technology is an unstoppable and non-negotiable force entirely separate from human agency. There’s not much time for political critique if you’re constantly being told that “the world is changing fast and you have to keep up”. Which is a bit rich given that politics infuses the arguments of even technology’s purest advocates.
As Slavoj Žižek has noted, the language of internet advocacy – phrases like “the unlimited flow of information” and “the marketplace of ideas” – mirrors the language of free-market economics. But techno-prophets also use the lingo of leftwing revolution. It’s there in books such as James Surowiecki’s The Wisdom of Crowds and Clay Shirky’s Here Comes Everybody, and in Vodafone’s slogan, “Power to You”; in the notion that blogs, Twitter and newspaper comment threads create a level playing field in the public debate; and it’s there in the countless magazine features about how the internet fosters grassroots protest, places the tools of cultural production in amateurs’ hands, and allows the little guy immediate access to information that keeps political leaders on their toes. This is not Adam Smith, it’s Marx and Mao.
In fact, both rhetorics – of the free market and of bottom-up emancipation – serve to conceal the rise of crony capitalism and the concentration of power and money at the top. Google is busily acquiring “all the world’s information”. Facebook is gathering our personal data for the coming world of personalised advertising. Amazon is monopolising the book trade. The abandonment of net neutrality means corporate control of the web. Once all our books, music, pictures and information are stored in the cloud, it will be owned by a handful of conglomerates.