Re: Poor investments


I came across an interesting article in my local university paper:

Poor investments by Shay O’Reilly

This whole Solyndra mess is kind of a big deal — until you consider some of our more tenuous, poorly planned investments. There will not be a Congressional inquiry into the Bush administration’s pre-emptive war against Iraq founded on lies or into the Obama administration’s murder of more than 2,000 civilians, 160 of them children, in Pakistan as a result of continuing drone strikes.

Even on a purely monetary scale, the money lost to Solyndra is overwhelmed by the amount spent on other failed causes. The money squandered on Solyndra is measured in hundreds of millions, but a Brown University study released earlier this year puts the total cost of our “War on Terror” at $4 trillion — nearly one-third of the national debt.

There’s no return on investment, either: As I’ve written about before, the burgeoning security state and bloated surveillance industry have left us with a dearth of evidence that we are any safer now than we were 11 years ago. Meanwhile, both Afghanistan and Libya have fallen into civil war after their supposed “liberation.” And in purely humanist terms, our post-9/11 foreign policy has led to unquantifiable suffering in the form of the war crimes that inevitably stem from hostilities.

Of course I stand opposed to corporatism, whether it comes in the form of preferential treatment for loans or fat payouts to military contractors. If Solyndra circumvented the usual procedures because of politics or cronyism, there should rightfully be disciplinary actions extending to the highest level of government.

But I’m flummoxed by the incessant media attention given to these more mild cases of waste. War, and particularly the kind of nebulous open-ended war that we began after Sept. 11, 2001, is a far worse investment than Solyndra. But this is the truth that no one dares speak, and it is practically a civil heresy: Our wars have primarily been tremendous and catastrophic failures. Where they have “succeeded,” (and what counts as success?) they have led to suffering and moral compromise.

It’s a good article which I thought expressed well the problems we face. However, in the comments section, I was given example of how people can miss the point of such criticisms.

G_Dispersion wrote: “Good point Shay, It is just varying degrees of 1 F up after another.”

Here is my response to that comment:

Actually, that misses the point. It’s not about “1 F up after another”. Rather, it’s about how the money could be better spenton programs that help the American public and which the American public supports. Most Americans aren’t anti-government, although most Americans are against corporatism and the military-industrial complex.

http://benjamindavidsteele.wordpress.com/2010/01/23/us-demographics-increasing-progressivism/

However, it is easy to get people mad over the mistakes and corruption of government. That is the problem. The vast majority of things the government does well rarely gets much reporting. It’s the same reason deaths get reported all the time while people going on living isn’t news-worthy.

This is explained well by Francis Fukuyama in his book ‘The Origins of Political Order’:

It is quite legitimate to argue that modern governments have grown excessively large, and that they thereby limit economic growth and individual freedom. People are right to complain about unresponsive bureaucracy, corrupt politicians, and the unprincipled nature of politics. But in the developed world, we take the existence of government so much for granted that we sometimes forget how important it is, and how difficult it was to create, and what the world would look like without certain basic political institutions.

It is not only that we take democracy for granted; we also take for granted the fact that we have a state at all that can carry out certain basic functions. Fairfax County, Virginia, a suburb of Washington, D.C., where I lived for many years, is one of the richest countries in the United States. Every winter, potholes appear in the county’s roads as a result of the seasonal freezing and thawing after winter storms. And yet by the end of the spring, all of those potholes get magically filled so no one has to worry about breaking an axle in one. If they don’t get filled, the residents of Fairfax County get angry and complain about the incompetence of local government; no one (apart from a few specialists in public administration) ever stops to think about the complex, invisible social system that makes this possible, or why it takes longer to fill potholes in the neighboring District of Columbia, or why potholes never get filled in many developing countries.

Indeed, the kinds of minimal or no-government societies envisioned by dreamers of the Left and Right are not fantasies; they actually exist in the contemporary developing world. Many parts of sub-Saharan Africa are a libertarian’s paradise. The region as a whole is a low-tax utopia, with governments often unable to collect more than about 10 percent of GDP in taxes, compared to more than 30 percent in the United States and 50 percent in parts of Europe. Rather than unleashing entrepreneurship, this low rate of taxation means that basic public services like health, education, and pothole filling are starved of funding. The physical infrastructure on which modern economy rests, like roads, court systems and police, are missing. In Somalia, where a strong central government has not existed since the late 1980s, ordinary individuals may own not just assault rifles but also rocket-propelled grenades, antiaircraft missiles, and tanks. People are free to protect their own families, and indeed are forced to do so. Nigeria has a film industry that produces as many titles as India’s famed Bollywood, but films have to earn a quick return because the government is incapable of guaranteeing intellectual property rights and preventing products from being copied illegally.

The degree to which people in developed countries take political institutions for granted was very much evident in the way that the United States planned, or failed to plan, for the aftermath of its 2003 invasion of Iraq. The U.S. administration seemed to think that democracy and a market economy were default conditions to which the country would automatically revert once Saddam Hussein’s dictatorship was removed, and seemed genuinely surprised when the Iraqi state itself collapsed in an orgy of looting and civil conflict. U.S. purposes have been similarly stymied in Afghanistan, where ten years of effort and the investment of hundreds of billions of dollars have not produced a stable, legitimate Afghan state.

Political institutions are necessary and cannot be taken for granted. A market economy and high levels of wealth don’t magically appear when you “get government out of the way”; they rest on a hidden institutional foundation of property rights, rule of law, and basic political order. A free market, a vigorous civil society, the spontaneous “wisdom of crowds” are all important components of a working democracy, but none can ultimately replace the functions of a strong, hierarchical government. There has been a broad recognition among economists in recent years that “institutions matter”: poor countries are poor not because they lack resources, but because they lack effective political institutions. We need therefore to better understand where those institutions come from.

Osama Wins! Americans Lose!


We played by Osama bin Laden’s rules. Even in killing Osama, we lose. Osama knew that, but Americans were stupid enough to play right into Osama’s agenda. We Americans (as a country and as citizens) have lost money, lives and our moral highground. Like Osama planned, we are going the way of the USSR.

The more I think about this, I don’t think it was an accident. I know the average American isn’t as well informed and thoughtful as they should be. But I was wondering how the political elite were also so clueless as to not understand Osama’s agenda when he spelled it out very clearly and in great detail.

I just now realized that the political ruling elite (i.e., corporatists, plutocrats, and the military-industrial complex) share the same basic agenda with Osama bin Laden. They both don’t like nor trust the populist ethos of American democracy. The reason is because only a functioning democracy (that actually represents the public and where the population isn’t disenfranchised) can challenge the authoritarian power structures represented by corporatism and by fundamentalism.

Because of corporate media, most Americans don’t comprehend that the corporatists are at least as dangerous if not more than the terrorists. Now that Osama is gone, will Americans see the enemy in their midst?

Corporatist Media on the Corporatist Govt


Most of the US media is owned by just a few corporate conglomerates, the same corporate interests who have lobbyists in Washington at a point in history when there are more lobbyists than ever before and more lobbyist money than ever before, the same corporate interests that are involved in the military-industrial complex at a point in history when the US military has been privatized more than ever before. Is anyone surprised that the mainstream media is unwilling to criticize the US government they collude with? Is anyone surprised that the corporatist US media attacks, dismisses, or downplays any criticism or critic of the corporatist US government?

MSNBC w/ Cenk: Reich – Middle Class & Wages


This video reminded me of why it doesn’t help the economy to give tax cuts to the rich and generally increase the wealth of rich while leaving behind everyone who isn’t part of the ruling elite. From just an economic perspective, there are three problems:

1) Increasing the wealth of the wealthy doesn’t necessarily increase investment. At some point, a person becomes so wealthy that further wealth becomes meaningless. This leads the super rich to gamble with their excess wealth which was one of the contributing factors to our recent economic crash. Financial gambling doesn’t make for a stable economy nor does it have any social value. So, if the government genuinely wants an economy that grows with stability rather than constantly crashing, they should create regulation and taxation that helps decrease wealth disparity so that excess wealth isn’t concentrated at the very top.

2) Most new jobs are created by small businesses, but the tax cuts for the rich mostly only help big businesses. Also, the bailouts help Wall Street while leaving Main Street to suffer. Why help the rich who helped break the economy while sacrificing the working and middle classes which are simply trying to get by? A lot of the working and middle class was in debt for the reason that wages were stagnating even as the rich were getting richer. So, if the government genuinely wants to stimulate job growth, they should ensure that wages grow as the economy grows and they should give bailouts to small businesses while breaking up corporations that are too big to fail.

3) Even ignoring all that, giving more wealth to the wealthy doesn’t stimulate the economy for some simple reasons. Assuming they don’t gamble it, the other choice the rich could do with excess wealth is simply to put it into savings. The middle and working classes, however, will spend any extra money they have which invests back into the economy. For good or ill, the US economy is based on consumerism and consumerism is based on working and middle classes that have money to spend. Let me explain why. A rich person spends several hundred or even several thousand on a pair of shoes. For the same amount of money, hundreds of working and middle class people could buy shoes. The purchase of hundreds of shoes stimulates the economy more than buying one pair of shoes even if it’s the same amount of money. So, if government genuinely wants to stimulate the economy, they should give tax cuts to the working and middle classes.

All of this assumes that those in power actually care about the economy as a whole and actually care about the average American. I suspect that this is a false assumption. It’s hard for me to believe that after all these decades intelligent people (including Democrats like Obama apparently) think that trickle down economics actually works. I think these people know that it just makes the rich richer. That is why they do what they do. Politicians are of the rich and have campaigns funded by the rich. Why would they help the lower classes? So, what if the economy collapses? The rich will always maintain their wealth. If the country gets bad enough, they’ll just move to a pleasant tropical island and take their wealth with them.

Here is another video that relates, but it’s from more of a libertarian perspective:

The author interviewed, Thomas E. Woods Jr, is criticizing the US military-industrial complex. Besides the moral argument, he mentions that military is not a very good investment. When we invest in military that is less that can be invested in other things such as education or infrastructure. Also, funding goes to defense research which uses up public tax money and wastes the most brilliant minds on discovering more efficient ways to kill people. Those same dollars and those same brilliant minds could be used for research to cure cancer or research into alternative energy.

Once again, the only people who benefit from the military-industrial complex are the defense contractors and the wealthy investors in these companies. Certainly, the average American who pays for these wars and dies in these wars aren’t benefiting. The only reason we have any interest in the Middle East in the first place is because of the oil that is there and those most interested in that oil is of course the big oil companies seeking profit from a dwindling resurce.

There were some comments below that last video which gave me some hope. Here is one from a user going by the name capitalist4life:

“I am a recovering neocon. I was converted through Dr. Paul’s gentle suggestion that our foreign entanglements may cause some foreigners to want to kill us. I found that reasonable and I became more anti-war as I saw Hannity and Limbaugh vicously attack that reasonable idea. The one thing that didn’t convince me was strong anti-war rhetoric. I had to be eased into it. Just keep that in mind. Don’t be aggressive and extreme. Gently ease our “conservative” friends into the anti-war way of thinking.”

But let me end with a different quote. One of the last truly moral Republican leaders was Dwight D. Eisenhower who, of course, is famous for warning about the military-industrial complex. He was far from being a pacifist liberal and for that reason his words are all that more important. He seemed to genuinely believe that politicians should serve all Americans and not just the wealthy. Here is what he said in a 1953 speech:

“Every gun that is made, every warship launched, every rocket fired signifies, in the final sense, a theft from those who hunger and are not fed, those who are cold and not clothed. This world in arms is not spending money alone. It is spending the sweat of its laborers, the genius of its scientists, the hopes of its children. This is not a way of life at all in any true sense. Under the cloud of threatening war, it is humanity hanging from a cross of iron.”

World as War Zone


You Decide: Students’ Education or the Afghanistan War?


rethinkafghanistan — April 20, 2010 — Californias economy is in a tailspin. One in 5 Californians is out of work. Over three quarters of a million have lost their homes. Desperately needed social services have been cut to the bone. Yet residents of our state continue to pay for a senseless war in Afghanistan thats not making us safer a war that has cost California taxpayers nearly $38 billion already.

Last month, facing tuition and fee hikes of over 30 percent, public university students all over California said enough is enough, organized and went on strike. Now these students have a new message: California is wasting tens of billions of dollars on war even while making public education accessible only to the rich.

We cant afford to continue a war that does nothing to make us safer.
http://www.facebook.com/rethinkafghan…

Military-Industrial Complex: Cycle of Violence, Manipulated Public


During the Cold War era around the world, the US government committed immoral actions or participated in the immoral actions of others. These included the School of Americas, death squads, assassination attempts, coups, puppet governments, and on and on. The two most relevant incidents was our financial and political support of Osama Bin Laden and Saddam Hussein. This support, of course, included buying weapons for these people (such as the chemicals Hussein used to kill his own population).

So, why is anyone surprised that this led to negative repercussions? People like Bin Laden and Hussein were tired of being manipulated by the US government and didn’t want to be told what to do. They were evil when we aligned ourselves with them and they continued to be evil when they no longer served our purpose, but the US government is far more evil in that it helped put them in power where they could commit great acts of evil. Do you want to fight the greatest evil in the world? If so, you’d have to start with Washington, DC.

What is the US government’s response to the evil they created? They wage massive wars against Bin Laden and Hussein, and in the process go back to the Cold War era methods of nation-building. Before the US attacked Iraq, the country wasn’t a threat nor were there any international terrorist organizations located there. Now, the country is filled with terrorist organizations plotting against the US. We’ve lost numerous American lives and we’ve lost our moral standing in the world. In seeking revenge for those who died in the 9/11 attack, we killed more innocent civilians in Afghanistan and Iraq than innocent Americans have been killed by terrorists.

We are fighting wars that can’t be won and we’ve polarized a whole generation who will grow up to be a largescale organized force of terrorism that will be a threat to the US for decades. Just like during the Cold War, we’re just creating a new generation of enemies to fight.

Why do we or rather why do politicians do this? There are only two possibilities I can think of. You could just consider politicians to be stupid and ignorant, but that seems naive to me. Or you could take the cynical route and consider that it probably is an intentional plan. Even as American soldiers die, corporations with government contracts are making money hand over fist. Eisenhower warned about the Military-Industrial Complex and he apparently was correct. Corporations who make money off of war don’t want war to end because then their profits end. Military spending is the biggest chunk of the budget. In fact, it’s the biggest chunk of the economy in the entire world as the US spends massively more money on our military than all other governments combined.

Right now, some child in Afghanistan or Iraq is watching his mother or some other loved one die during an attack by US soldiers. That child will grow up with hatred towards the US and will join others whose lives were also destroyed by our military. One day, that child will commit some atrocious act against Americans. Right now, some politician or leader is being supported by our military and yet feels resentful at being manipulated. One day, that person will see an opportunity to use his power to do harm to the US. When that day comes, the American public will respond with its usual ignorant fear and the government will start the whole cycle over again… and the corporations will once again make huge profits.

The Truth of Capitalism


When was the Golden Age of the Free Market?  It never existed. 

The rich and powerful capitalists have always been trying to control the government and manipulate the markets… and they always will.  The only place a free market might exist is in the village of some isolated tribe in the Amazon, but don’t worry the capitalists will figure out a way to find and destroy that village.  No free man will be left alive. 

Don’t worry about the government.  The president, the congress, the senate… they’re all puppets.  And the few who haven’t entirely sold their souls are powerless to do anything to change the system.

You could attempt a revolution if you like.  But if you do, the Military-Industrial Complex and the police state will destroy you and everything you love.  Join the Tea Party if it makes you happy.  But know the FBI is keeping a record on every protester. 

When one party is in power, vote for the other party… repeat again and again… nothing ever changes.

“When the oppressors give me two choices, I always take the third.”
-Meir Berliner (died fighting the SS at Treblinka), as quoted in A Language Older Than Words by Derrick Jensen

Quotes About The Federal Reserve And Central Banking

“Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and manipulates the credit of the United States.”
-Sen. Barry Goldwater

“It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”
-Henry Ford

“The regional Federal Reserve banks are not government agencies. …but are independent, privately owned and locally controlled corporations.”
-Lewis vs. United States, 680 F. 2d 1239 9th Circuit 1982

“The Federal Reserve banks are one of the most corrupt institutions the world has ever seen. There is not a man within the sound of my voice who does not know that this nation is run by the International bankers.”
-Congressman Louis T. McFadden

“The real truth of the matter is, as you and I know, that a financial element in the large centers has owned the government of the U.S. since the days of Andrew Jackson.”
-Franklin Delano Roosevelt

“As soon as Mr. Roosevelt took office, the Federal Reserve began to buy government securities at the rate of ten million dollars a week for 10 weeks, and created one hundred million dollars in new [checkbook] currency, which alleviated the critical famine of money and credit, and the factories started hiring people again.”
-Eustace Mullins

“This [Federal Reserve Act] establishes the most gigantic trust on earth. When the President [Wilson} signs this bill, the invisible government of the monetary power will be legalized....the worst legislative crime of the ages is perpetrated by this banking and currency bill."
-Charles A. Lindbergh, Sr. , 1913

"When you or I write a check there must be sufficient funds in our account to cover the check, but when the Federal Reserve writes a check there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check, it is creating money."
-Putting it simply, Boston Federal Reserve Bank

"We have, in this country, one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States and has practically bankrupted our government. It has done this through the corrupt practices of the moneyed vultures who control it."
-Congressman Louis T. McFadden in 1932

“The few who understand the system, will either be so interested from it’s profits or so dependent on it’s favors, that there will be no opposition from that class.”
-Rothschild Brothers of London, 1863

"While boasting of our noble deeds were careful to conceal the ugly fact that by an iniquitous money system we have nationalized a system of oppression which, though more refined, is not less cruel than the old system of chattel slavery."
-Horace Greeley

"The Federal Reserve bank buys government bonds without one penny..."
-Congressman Wright Patman, Congressional Record, Sept 30, 1941

"...the increase in the assets of the Federal Reserve banks from 143 million dollars in 1913 to 45 billion dollars in 1949 went directly to the private stockholders of the [federal reserve] banks.”
-Eustace Mullins

“The financial system has been turned over to the Federal Reserve Board. That Board administers the finance system by authority of a purely profiteering group. The system is Private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people’s money”
-Charles A. Lindbergh Sr., 1923

“Bankers own the earth. Take it away from them, but leave them the power to create money and control credit, and with a flick of a pen they will create enough to buy it back.”
-Sir Josiah Stamp, former President, Bank of England

“All the perplexities, confusion and distress in America arise, not from defects in their Constitution or Confederation, not from want of honor or virtue, so much as from the downright ignorance of the nature of coin, credit and circulation.”
-John Adams

“Whoever controls the volume of money in any country is absolute master of all industry and commerce.”
-James A. Garfield, President of the United States

“A great industrial nation is controlled by it’s system of credit. Our system of credit is concentrated in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the world–no longer a government of free opinion, no longer a government by conviction and vote of the majority, but a government by the opinion and duress of small groups of dominant men.”
-President Woodrow Wilson

“History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and it’s issuance.”
-James Madison

“I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a monied aristocracy that has set the government at defiance. The issuing power (of money) should be taken away from the banks and restored to the people to whom it properly belongs.”
-Thomas Jefferson

“The money powers prey upon the nation in times of peace and conspire against it in times of adversity. It is more despotic than a monarchy, more insolent than autocracy, and more selfish than bureaucracy. It denounces as public enemies all who question its methods or throw light upon its crimes. I have two great enemies, the Southern Army in front of me and the bankers in the rear. Of the two, the one at my rear is my greatest foe.”
-Abraham Lincoln

“Give me control of a nation’s money and I care not who makes it’s laws”
-Mayer Amschel Bauer Rothschild

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