Sunday, May 12, 2024

Week-end Wrap – Political Economy – May 12 2024

Week-end Wrap – Political Economy – May 12 2024

by Tony Wikrent


Strategic Political Economy

'Sad What We Are Doing': Global CO2 Increase Sets New All-Time Record

Olivia Rosane, May 10, 2024 [CommonDreams]

The average monthly concentration of carbon dioxide in the atmosphere jumped by a record 4.7 parts per million between March 2023 and March 2024, according to new data from NOAA's Mauna Loa Observatory in Hawaii.

The spike, reported by the University of California, San Diego's Scripps Institution of Oceanography on Wednesday, reveals "the increasing pace of CO2 addition to the atmosphere by human activities," the university said.


How Good, Kind, Caring People Became The Bad Guys 

Jessica Wildfire [OK Doomer, via Naked Capitalism 05-05-2024]

...When you complain, people judge you. It doesn't matter what you're complaining about. It doesn't matter what you're protesting or whistle-blowing. It doesn't matter if your life is at stake. It doesn't matter if thousands of lives are at stake. It doesn't matter if the fate of humanity is at stake. Someone's first instinct is to suspect you. It's to accuse you of lying. It's to label you a troublemaker.

They hear negative words coming out of your mouth. They associate those negative things with you, because you're the person saying them. That's how our primate brains operate. It takes a lot of self-awareness to overcome that, and many people lack it….

The New Anti-Antisemitism 

Rick Perlstein, May 8, 2024 [The American Prospect]

The response to college protests against the war on Gaza exemplifies the darkness of the Trumpocene….

THE PROVOCATIONS FOR THESE ASSAULTS are so much milder now than they were in the 1960s that an administrator then who could peer 55 years into the future would probably smirk. Students peacefully chanting slogans on a single, specific issue, backed by easily realizable demands? Pshaw….

But to repeat: What is happening now, I believe, might be far more dangerous….

Concerns for the “safety” of Jewish students has become a rhetorical commonplace in elite discussions of campus politics these days: “Jewish students of all political beliefs,” Theo Baker, son of New York Times superstar Peter Baker, tells us in The Atlantic in “The War at Stanford,” “have been given good reason to fear for their safety. They’ve been followed, harassed, and called derogatory racial epithets.”

It makes me feel like I’m losing my mind. You know who has good reason to fear for their safety? People, many of them Jews, getting pummeled by cops and fascists. People getting high-powered rifles aimed at them from rooftops by agents of the state who surely have been told by the people giving them orders to be ready to shoot because of all the “dangerous” things that are going on amid those protesters’ tents.

Sure, offensive things have happened to protesters. And that’s awful. But when I told some Chicago neighbors about all the Judaism going on down in Hyde Park, they were frankly shocked to hear it: They watch Morning Joe, from which they got the impression that Jew-hate was the overwhelming leitmotif of this whole protest thing.

It suggests one of those Talmudic puzzlements, or perhaps the setup for a dad joke: How many Jews have to pray peacefully in a pro-peace encampment (or alternatively, to cite a scene witnessed outside the 116th Street gate of Columbia University, how many black-hatted ultra-Orthodox Jews have to chant, “Anti-Zionism is not antisemitism”) for them to stop being an antisemitic mob?



Global power shift

The liberal international order is slowly coming apart 

[The Economist, via Naked Capitalism 05-10-2024]

[TW: I include only because The Economist is a notorious mouthpiece for the Anglo-American elites and their neoliberal policies.]

The In-Flight Magazine for Corporate Jets 

Luke Goldstein, April 2, 2024 [The American Prospect]

The Economist has channeled the concerns of elites for decades. It sees the Biden administration as a threat.


The Demise of US Power, De-Dollarisation & the BRICS 

Ann Pettifor [via Naked Capitalism 05-11-2024]


Xi Jinping’s Plan To Save China Through Science 

[The Scholar’s Stage, via Naked Capitalism 05-10-2024]

[TW: Note the response by western experts who have been thoroughly indoctrinated in the nostrums of neoliberalism and are thus unable to even think of how a government oversight can be beneficial guidance to the development of a society .]


The View from China: Perspectives on the West in the Xi Jinping Era 

[Pekingology, via Naked Capitalism 05-10-2024]


RUSI Report Quietly Validates Russia’s Strategic Superiority: A Breakdown 

[Simplicius the Thinker, via Naked Capitalism 05-05-2024]


[X-Twitter, via Naked Capitalism 05-09-2024]

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Gaza / Palestine / Israel

Northern Gaza in ‘full-blown’ famine: Senior UN official 

[EuroNews, via Naked Capitalism 05-05-2024]


Israel bombs UNRWA building in Gaza Strip, claiming it was ‘Hamas base’ 

[Anadolu Agency, via Naked Capitalism 05-07-2024]


Ecocide: Israel’s systematic destruction of Palestinian agriculture revealed 

[Anadolu Agency, via Naked Capitalism 05-06-2024]


Prof. Amos Goldberg: “Yes, It Is Genocide” 

[ScheerPost, via Naked Capitalism 05-10-2024]


Israel finally goes too far 

Jonathan M. Katz, May 10, 2024 [The Racket]

My first reaction to hearing this news was to doubt its sincerity. Biden may be the most ideologically Zionist president in U.S. history. He just signed a bill appropriating an additional $26 billion in weaponry for Israel after months and months of uncountable horrors. That is probably in gross violation of U.S. law, as should have been affirmed by a mandated State Department report on Israeli violations of U.S. and international humanitarian law that was due Wednesday, but whose delivery has been conveniently delayed. And Israel is still slated to get billions of dollars worth of bombs, tank rounds, mortars, and armored tactical vehicles, even without the halted shipment, Reuters reported today….

But something really is going on here. You can tell in part by the conniption fit being thrown by Israel’s leaders, lobbyists, and the media….


Tragedy and Folly 

Josh Marshall, May 11th, 2024 [Talking Points Memo]

It gets lost in the myriad headlines at the moment about Rafah, weapons cut offs, Biden, horrific civilian loss of life, etc. But there’s a short piece in the Times of Israel this afternoon that captures a dimension of what’s happening right now in Israel that is mostly off the radar in the U.S. The piece is about a reported blow up between Netanyahu and IDF Chief of Staff Herzi Halevi. Specifically, it has the latter telling Netanyahu that because he refuses to make diplomatic arrangements for the post-war government of Gaza, the IDF is having to go back to fight again in areas it already took over. In some cases they’re having to go back and fight for the same ground a third time!

(Here’s another article in Haaretz on how the IDF is now going back into northern Gaza, which they conquered back in the fall. Privately the IDF says Hamas has reestablished control there because there’s no day-after plan, which is a diplomatic to-do item. If you blow it up and leave why wouldn’t they just go back?)

Netanyahu refuses to do that because there’s really no way to plan for the future without blowing up his governing coalition. But without some plan, the Israeli army is reduced to doing something like pushing water up a hill with its hands. The article is replete with examples of heads of the army or intelligence services trying to get someone to give them a strategy, or actually more than a strategy, just a goal. And it has Netanyahu getting mad because they’re going to the defense minister, himself a former high-level IDF general. It’s not even a question of disagreeing on strategy really — that’s for the political leadership to decide. It’s refusing to come up with any strategy at all….


Top Secret: In a 2018 letter, Netanyahu asks Qatar to fund Hamas 

[Ynet, via Naked Capitalism 05-06-2024]


AIPAC Is Secretly Funneling Money Into a Congressional Race, Sources Say. Here Are the Details.

Ryan Grim, May 4, 2024 [The Intercept]

AIPAC is not done trying to take down the Squad.… 

On Friday, a brand new PAC, ridiculously called “Voters for Responsive Government,” launched two new attack ads at Jayapal, putting close to a million dollars behind them. One of the ads literally accuses her of starving and abusing cats and dogs. Seriously.

You can read the full story here, and if you know anybody in Portland, forward them this email. And while you’re at it, tell them to buy my book on the Squad, called, creatively, “The Squad,” which goes deep on the war between the progressive members of Congress and AIPAC….

AIPAC and Republican Donors Raising Big Money for Maxine Dexter Against Susheela Jayapal In Oregon

Ryan Grim, May 10, 2024 [The Intercept]


Ghosts of ’68 

[New Left Review, via Naked Capitalism 05-09-2024] 

...When self-censorship at US universities fails – a rare occurrence, as Edward Said noted three decades ago – overt censorship takes over. Yet few were prepared for the swiftness or brutality of the police-administrative-political response…. Federal law enforcement agencies had clearly been coordinating with city, state, county, highway and campus police; the New Hampshire governor said as much…. 

What explains the scale of this response? The semester ends sometime between late April and mid-May. Why not wait the encampments out, negotiating and offering symbolic concessions to buy time? This is partly a reflection of the changes that universities, like many other institutions, have undergone during decades of neoliberalization. In the mid-1970s, Republicans identified public universities as a crucial source of anti-authoritarian sentiment and demanded a complete institutional overhaul. The subsequent process of privatization, which has made tuition prohibitive for most prospective in-state students, has been catastrophic for democratic principles and practices. With massive, untaxed endowments running into the tens of billions, universities have slowly morphed into public-private police-carceral states, catering to ‘customers’ and answering to benefactors and politicians, not students or faculty….

Another crucial factor is the influence of so-called ‘shot callers’: a donor class of billionaires, often working through politicians or board members, with the power to force institutional changes or get people fired by threatening to withhold funding. As universities have become more like corporations, whose primary duties are to their shareholders, administrators have become increasingly pliant before donors and their representatives. Presidents can be forced to resign even when they have strong support from students and faculty, as at Harvard; or, conversely, they can ignore significant internal opposition because they have outside backers, as at Columbia. (One of the main shot callers there is Democratic donor Robert Kraft, the owner of the New England Patriots, who responded to the protests by revoking a donation and taking out full-page advertisements in major newspapers which denounced ‘antisemitic hate’ and demanded greater ‘protection’ on campuses.)….

My dream died, and now here I am

Sabine Hossenfelder [viaThomas Neuburger, mAY 10, 2024]

It made me realize that this institute [where I was working] wasn’t about knowledge discovery. It was about money making. And the more I saw of academia, the more I realized it wasn’t just this particular institute and this particular professor. It was generally the case.

The moment you put people into big institutions, the goal shifts from knowledge discovery to money making. Here’s how this works.

If a researcher gets a scholarship or research grant, then the institution gets part of that money. It’s called the “overhead”. Technically, that’s meant to pay for offices and equipment and admin, etc.

But academic institutions then pay part of their staff from this overhead, so they need to keep that overhead coming. Small scholarships don’t make much money, but research grants can be tens of millions of dollars. And the overhead can be anything between 15 and 50 percent. This is why research institutions exert loads of pressure on researchers to bring in grant money.


Oligarchy

Richest Americans Now Pay Less Tax Than Working Class in Historical First 

[Newsweek, via Naked Capitalism Water Cooler 05-10-2024]

“In the 1960s, the 400 richest Americans paid more than half of their income in taxes, according to the Times. By 2018, America’s wealthiest individuals paid just 23 percent of their income in taxes. Meanwhile, the bottom half of income earners paid 24 percent of their income in taxes. Today, America’s richest people control a greater share of the country’s wealth than during the ‘Gilded Age of Carnegies and Rockefellers,’ the [New York Times] said, referring to a period of unprecedented wealth concentration in the late 19th and early 20th centuries. This is partly due to significant decreases in taxes on the rich. Wealthy individuals once paid high taxes on corporate profits, which were typically their primary source of income, and estate taxes on wealth passed down to their heirs. However, these taxes have been significantly reduced in recent years—the top corporate tax rate in the U.S. was reduced from 35 percent to 21 percent in 2018, and the estate tax now generates only a quarter of the tax revenues it raised in the 1970s, the Times noted. Another factor is that many modern billionaires live off their wealth rather than their incomes, unlike most ordinary Americans.” 


The Price We Pay for Bezos and Gates? Less Moral Societies

Sam Pizzigatti, May 08, 2024 [CommonDreams]

The longer we let inequality define our contemporary daily lives, new research helps us understand, the more the unethical behavior all around us will seem to reflect just the way our world naturally works…. 

 People who live in societies with wide gaps between the wealthy and everyone else turn out to live briefer lives than people who call more equal societies home. People who live in more equal societies, meanwhile, tend to live happier lives than their unequal-society counterparts. They face less crime. Their economies crash less often.

Epidemiologists and economists the world over are exploring all these sorts of phenomena. So are sociologists and political scientists. And, over recent years, psychologists have been jumping big-time into the fray, as an analysis from Northwestern University’s Kellogg School of Management has just highlighted.

How Do You Know If A Member Of Congress Is Too Corrupt To Vote For? Are They In Bed With Crypto?

Howie Klein, May 11, 2024  [downwithtyranny.com]


The carnage of mainstream neoliberal economics

The Rise of Monopolies & Oligopolies 

[Manufacturing.net, via Naked Capitalism 05-10-2024]

[Lambert Strether: “Note the source.” ]


THE BANK ROBBERY CONTINUES

David Sirota, May 9, 2024 [The Lever]

I’ve been obsessed with The Great Bank Robbery, in which banks are charging borrowers higher interest rates for loans, but then refuse to pass on the proceeds to savers in the form of larger interest payments on their deposits. A new Fed study shows that this net interest gap is worse than it was during the last period of interest rate increases. Now bigger and more monopolized, banks are simply refusing to pass on higher interest rates to depositors, even as they rake in ever-higher payments on loans.


'Argentina Stopped': Unions Hold Second General Strike Over Milei Austerity

Jessica Corbett, May 10, 2024 [CommonDreams]  

Argentina's primary trade union federation on Thursday held another nationwide general strike, the second called since President Javier Milei, a far-right economist, took office in December and began pursuing sweeping austerity and deregulation….

The labor groups called out the government for promoting "dangerous policies for the privatization of public enterprises" and pushing for "a phenomenal transfer of resources to the most concentrated and privileged sectors of the economy."

CGT celebrated the 24-hour strike's success on Friday, declaring that "Argentina stopped," and sharing photos of sparsely populated roads, transit hubs, and other public spaces.


They’re not capitalists — they’re predatory criminals

The Mega-Donor Who Colluded With OPEC 

Luke Goldstein, May  7, 2024 [The American Prospect]

For the past four years, the main area of inflation that has frustrated Americans the most is gas prices. The numbers have come down since their peak in 2022, but still remain stubbornly high….


The Federal Trade Commission recently uncovered another underlying cause: an orchestrated plot between OPEC and an American fracking tycoon to exploit the inflationary period to push prices even higher. That was arguably even more critical to the overall price-fixing scheme, because the U.S., since the fracking boom of the mid-2010s, is the largest oil producer on Earth, and the “swing” producer with the greatest ability to move prices.

This scheme cost the average American as much as $2,100 a year, according to one estimate. The orchestrator, CEO of Texas oil and gas powerhouse Pioneer Natural Resources Scott Sheffield, has used campaign contributions in Texas and Washington to amass serious influence on oil and gas policy, until now.

The FTC made its discovery while reviewing a merger between Pioneer and global oil giant ExxonMobil, a deal which the commission announced it would clear last week. But as a condition for letting the merger go through, the FTC is barring Sheffield from joining the board of the combined firm, because of evidence it obtained that Sheffield colluded with OPEC at the height of inflation to fix prices….


An Oil Price-Fixing Conspiracy Caused 27% of All Inflation Increases in 2021 

Matt Stoller [BIG, via Naked Capitalism 05-06-2024]


How the US financial system helps shelter profits from environmental organized crime 

[The Hill, via Naked Capitalism 05-08-2024]


The Texas Three-Step 

[Credit Slips, via Naked Capitalism 05-08-2024]

[TW: included here to show how brazenly the law can be misused to shield corporate criminality from consequences. The ethics of the law profession needs to be reworked to create a strong personal sense of civic virtue that mitigates against lawyers engaging in these types of maneuvers. ]


When Employers Violate the NLRA, the Harm is Always Irreparable 

[On Labor, via Naked Capitalism 05-09-2024]


Restoring balance to the economy    

BIDEN COULD CLOSE THIS LOOPHOLE RIGHT NOW

David Sirota, May 9, 2024 [The Lever]

It’s good that some Senate Democrats are once again pushing legislation to end the “carried interest” tax loophole that lets private equity billionaires avoid paying regular income taxes on their earnings. It’s highly annoying that we’re all asked to forget that the Biden administration (like previous administrations) could just end the loophole right now without an act of Congress. It would be better to close it via statute so that the next president couldn’t reopen it, but the point is: The president can try to close the loophole on his own. Biden says he wants to close the loophole but has refused to use his power.


Rather than Putting Shareholders First, Japanese Companies Should Prioritize Wages and Capital Spending over Dividends 

[Nippon.com, via Naked Capitalism 05-09-2024]


Zach Shrewsbury Is Wrapping Up His Senate Primary Campaign Strong— And Ready To Take On Jim Justice

Howie Klein, May 4, 2024  [downwithtyranny.com]

...If you’d like to help him keep his get out the vote operation humming, please consider contributing what you can here. Yesterday, the New Yorker ran an inspiring feature on Zach by Dan Kaufman asking if a progressive campaign can break the coal industry’s hold on West Virginia politics?

Shrewsbury is a 32 year old full-time community organizer and he never expected to run for office. “His burly frame,” wrote Kaufman, “is covered in tattoos, including a spear and trident on his forearm, marking his stint in the Marines, and a quote from Eugene Debs on his rib cage. (‘Thank God you look the way you do,’ a Democratic National Committee consultant told him at one campaign event. ‘I’m fucking sick of these haircuts and suits.’) Shrewsbury first got involved in West Virginia politics on the 2020 Senate campaign of Paula Jean Swearengin, a progressive activist from a coal-mining family, who ran against West Virginia’s Republican senator, Shelley Moore Capito. Swearengin lost badly, but Shrewsbury, who was Swearengin’s field director for southern West Virginia, took inspiration. ‘It’s about more than just winning a damn election,’ he told me. ‘West Virginia is in a state of desperation. We’re a good example of what happens when your representation won’t advocate for you.’”


Disrupting mainstream economics  

There are six reasons why we need taxes 

[Funding the Future, via Naked Capitalism 05-07-2024]


Health care crisis


Information age dystopia / surveillance state

The Antisemitism Awareness Act is a full frontal assault on free speech 

[Middle East Eye, via Naked Capitalism 05-08-2024]


IRS Now Targeting People Who Threaten Washington’s “Ability to Govern” 

Ken Klipperstein [via Naked Capitalism 05-11-2024] Notice the Biden Administration engaging in the sort of authoritarianism that the “save our democracy” sorts are projecting on to Trump.


Collapse of independent news media

New Claim Puts ‘WaPo’ Boss Will Lewis in Crosshairs of Murdoch Scandal 

[Daily Beast, via Naked Capitalism 05-07-2024]


Climate and environmental crises

Study reveals how much carbon damage would cost corporations if they paid for their emissions 

[AP, via Naked Capitalism 05-07-2024]

The world’s corporations produce so much climate change pollution, it could eat up about 44% of their profits if they had to pay damages for it, according to a study by economists of nearly 15,000 public companies…. Nearly 90% of that calculated damage comes from four industries: energy, utilities, transportation and manufacturing of materials such as steel. The study in Thursday’s journal Science by a team of economists and finance professors looks….

Mexico’s Floating Gardens Are an Ancient Wonder of Sustainable Farming 

[Reasons to be Cheerful, via Naked Capitalism 05-05-2024]


The Iron Farm Bill: Agricultural policy coalitions in the age of climate crisis

{Phenomenal World, via Naked Capitalism 05-06-2024]


‘Everything’s on fire’: Inside the nation’s failure to safeguard toxic pipelines 

[Politico, via Naked Capitalism 05-06-2024]


Decarbonisation of shipping could create up to four million green jobs 

[Hellenic Shipping News, via Naked Capitalism 05-10-2024]


Creating new economic potential - science and technology


Democrats' political malpractice

Democrats Indulge Cuellar’s Corruption

David Dayen, May 7, 2024 [The American Prospect]

Almost nobody has spoken out on the bribery scandal afflicting their party. That makes it harder to draw contrasts with Trump.

AIPAC Invades Oregon With Its Dirty Blood Money: Should Progressives Stop Contributing To Candidates Who Take AIPAC Money?

Howie Klein, May 5, 2024  [downwithtyranny.com]

Late last week, Sludge published a list of the politicians of both parties who have taken money from the pro-Likud, pro-genocide lobbyists. 26 of them had then over $300,000 in the current cycle— from Jan. 1, 2023 until March 31, 2024. Numero uno, George Latimer, is the candidate they recruited to run against Jamaal Bowman, their top target of 2024. The $1.3 million they have put directly into his campaign, seems gigantic, but it’s a pittance compared to the $20-25 million they are preparing in independent expenditures between now and the June primary. These are the 26 who have taken over $300,000 so far this cycle….

4 Years Of Trump Left The Swamp Intact— Congress Gains Too Much From Lobbyists To Reform The System

Howie Klein, May 6, 2024  [downwithtyranny.com]

...2022 was the first year that saw federal lobbyists spend over a billion dollars. The increased in 2022 and again this year, which isn’t even half over! There are over 10,000 registered federal lobbyists who are spreading that money around…

The Mullins brothers— Brody, an investigative reporter for the Wall Street Journal, covering business, lobbying and campaign finance, and Luke, a Politico writer covering the people and institutions that control Washington’s levers of power— have a new book, The Wolves Of K Street: The Secret History off How big Money Took Over Big Government, coming out tomorrow. Brody was part of the team that won the 2023 investigative reporting Pulitzer Prize for revealing financial conflicts of interest among officials at 50 federal agencies who bought and sold stocks of companies they were tasked with regulating. That was one part of the Swamp. K Street is another….

Lloyd Green reviewed the book over the weekend:  how lobbying swallowed Washington. Lobbying was a $4.3 billion industry last year….


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Conservative / Libertarian / (anti)Republican Drive to Civil War

Trump to Big Oil Execs: Give Me $1 Billion and I'll Help You Wreck the Planet

Jake Johnson, May 09, 2024 [CommonDreams]

Presumptive Republican presidential nominee Donald Trump made a straightforward offer to some of the top fossil fuel executives in the United States during a dinner at his Mar-a-Lago club last month, which marked the hottest April on record.

According to new reporting, Trump pledged to swiftly gut climate regulations put in place by the Biden administration if the oil and gas industry raises $1 billion for his 2024 presidential campaign.

The "remarkably blunt and transactional pitch," reported by The Washington Post, was Trump's latest explicit statement of his intention to give the fossil fuel industry free rein to wreck the planet if he wins a second term in power. Executives from Exxon, Chevron, Occidental Petroleum, and other prominent fossil fuel companies reportedly attended the Mar-a-Lago dinner….


Donald Trump: American Crime Figure— What About His Enablers? Trump Woos The Oil Barons Back

Howie Klein, May 10, 2024  [downwithtyranny.com]


How The Right Wing Media Killed Its Own Audience To Own The Libs

NebraskaDemocrat, May 06, 2024 [DailyKos]


Intuitively Shredding Democracy

Abby Zimet, May 10, 2024 [CommonDreams]    

[TW: A nice summary of the multitude of “microagressions” being committed against democracy and the right to vote by (anti)Republicans.]


The Right to Travel Under Siege

Gabrielle Gurley, May 10, 2024 [The American Prospect]

When the Dobbs majority sent abortion lawmaking back to the states two years ago, it wasn’t difficult to predict that entire sections of the country would eliminate access to the procedure. The abortion prohibitionists who’ve successfully walled off vast swaths of the Southeast and the Great Plains have gone one step further, however, by criminalizing travel to places where abortion is legal.

The constitutional right to travel is under assault in Republican strongholds like Alabama. Already in the spotlight for the state supreme court IVF decision that introduced the concept of embryos as “extra-uterine children,” Alabama aims to put its retrograde stamp on the right to travel for this medical procedure. One of the first salvos in what promises to be a long fight finds U.S. District Judge Myron Thompson pushing back on Alabama Attorney General Steve Marshall’s move to toss a lawsuit by reproductive health care providers that sought relief from the state’s threats of prosecution for assisting people who are trying to obtain abortions. Yellowhammer Fund v. Marshall rests on whether organizations and health care providers assisting women with travel would be subject to prosecution in Alabama, which prohibits it….

Dobbs Was a Gift to Domestic Abusers

Melissa Gira Grant, May 9, 2024 [The New Republic]

Homicide is a leading cause of death in the perinatal period. But just as troublingly, abusers can use abortion bans to prevent partners from leaving or retaliate against them if they do.


Republican U.S. States Sue EPA over Strict Power Plant Emission Rules 

[OilPrice, via Naked Capitalism 05-11-2024]


Bannon headed to jail

Heather Cox Richardson, May 10, 2024 [Letters from an American]

On October 31, 2020, former Trump White House advisor Steve Bannon—who had left Trump’s administration in 2017—explained to a group of people that, knowing that votes for Biden would accumulate throughout the evening as mail-in ballots were counted, Trump planned simply to declare victory on election night, seizing the presidency and claiming that any results to the contrary were an attempt to steal the election from him. “[A]t 10 or 11 o’clock Trump’s gonna walk in the Oval, tweet out, ‘I’m the winner. Game over. Suck on that,’” Bannon was recorded as saying.

That prediction was pretty much what happened, but Trump did not succeed in seizing the presidency. Next came plans to overturn the election results, and Bannon was also involved in those. Then, famously, on January 5, 2021, he predicted on his podcast that the next day, “all hell is going to break loose.”

Not surprisingly, the House select committee investigating the January 6, 2021, attack on the U.S. Capitol wanted to talk to Bannon. It subpoenaed him in September 2021 for testimony and documents. When he refused to comply, a jury found him guilty of contempt of Congress in October 2022. A judge sentenced him to four months in jail but allowed him to stay out of jail while he appealed.

Today a three-judge panel of the U.S. Circuit Court of Appeals for the District of Columbia Circuit upheld his conviction. He will not be jailed immediately; he can still appeal to a higher court.


[X-Twitter, via Naked Capitalism 05-07-2024]

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How FreedomWorks Paved the Way for Trumpism—and for Its Own Demise

Adele M. Stan, May 10, 2024 [The New Republic]

The once influential libertarian group was built on rage and small government. Guess which one prevailed?

If you’d known what to look for, you could have seen it coming miles and miles away: the demise of movement conservatism in the face of Trumpism. The only thing surprising about the collapse of FreedomWorks, the loud and splashy libertarian astroturf outfit, is that it hadn’t happened sooner. On Wednesday, the group abruptly announced that it had been dissolved by its board.

Born in 1984 as part of the Koch brothers’ group, Citizens for a Sound Economy, FreedomWorks split from the political network of billionaire brothers Charles and David Koch in 2004. By 2008, the organization was poised to lead the backlash against the election of Barack Obama, helping to create and grow the anti-government Tea Party movement. In the 2010 midterm elections, FreedomWorks aimed to change the DNA of the U.S. Senate, and proved to be a powerhouse in seating the candidates it backed. But with the takeover of the Republican Party by former president Donald J. Trump, its power is no more.


New Laws Are Turning Police Into ‘Supercitizens’ 

John Pfaff, May 8, 2024 [The American Prospect]

A series of legislative and judicial efforts have removed police oversight from oversight boards and communities.


The (anti)Federalist Society Infestation of the Courts

How ‘History and Tradition’ Rulings Are Changing American Law 

NYT


How Originalism Ate the Law 

Dalia Lithwick [Slate , via Naked Capitalism 05-11-2024]


Civic republicanism

The General Welfare Amendment: Restoring The Legal Teeth Of The Preamble 

[VoteNo2BigDough, via Naked Capitalism 05-11-2024]

[TW: I addressed this specific issue in Week-end Wrap – Political Economy – July 9, 2023, featuring the September, 2021 article by David S. Schwartz in 37 Constitutional Commentary 2022, Reconsidering the Constitution’s Preamble: The Words that Made Us U.S. — University of Wisconsin Legal Studies Research Paper Series Paper No. 1718.

[Lithwick’s “How Originalism Ate the Law” in Slate and “The General Welfare Amendment: Restoring The Legal Teeth Of The Preamble” in VoteNo2BigDough belong together because they are both the result of the reactionary project to “reinterpret” the Constitution to literally dismantle “the administrative state” — or. more accurately, the structure of the USA as a self-governing republic. This is particularly maddening, because liberals and “the left” have adopted a philosophy of political economy that makes it difficult for them to recognize what the reactionaries are doing, let alone respond to it effectively.

[Until they were shocked by the December 2021 decision Dobbs v. Jackson Women’s Health Organization which swept away Roe v. Wade, liberals and leaders of the Democratic Party have been crippled by a large part of “the left” rejecting out of hand USA Constitutional law and political history as mere instruments of an oppressive and exploitative capitalist system tainted irremediably by slavery. Liberals, Democrats and “the left” ignored the historical record of the fight within USA between republicanism and oligarchy. They mistakenly believed liberalism was a derivative of civic republicanism instead of seeing how much of liberalism — with its emphasis on “private property” and “individual liberty” rather than the General Welfare — was shaped as an oligarchical response to civic republicanism and the rising power of the American republic. Thus they were disastrously outflanked by the Rehnquist / Scalia / Thomas assault on the law and persistent undermining of the principles of civic republicanism. Meeting the oligarchs’ / reactionaries’ “argument” that Social Security, Medicare, the EPA, the Federal Labor Relations Board, and so on, are unconstitutional, liberals respond only with incredulity rather than historically-based explanations that the powers of the national government are, and were intended to be, general in nature and broad in scope.

[In Reconsidering the Constitution’s Preamble: The Words that Made Us U.S. — University of Wisconsin Legal Studies Research Paper Series Paper No. 1718, David S. Schwartz, explains that conservatives and originalists dismiss the Preamble to the U.S. Constitution as a “stylistic flourish with no operative legal significance.” But, “the drafting history of the Preamble, observable by comparing the preambles in the Articles of Confederation, the Committee of Detail draft of the Constitution, and the Committee of Style’s final version, demonstrate that the Framers considered the Preamble to be substantively meaningful…. concluding that the Preamble is “a legally inoperative flourish has no basis as a matter of text or history.”

[In his 1833 three-volume Commentaries on the Constitution of the United States — long considered the most through and faithful exposition of Constitutional interpretation — Justice Joseph Story wrote that while the Preamble does not confer any “substantive power” on the national government, it does “expound the nature, and extent, and application of the powers actually conferred by the
constitution,” and should be used as a guide to interpreting the Constitution when “the terms of a given power admit of two constructions, the one more restrictive, the other more liberal.” Further, interpretation should be “governed by the intent of the power;” that is, Constitutional interpretation of federal powers should “promote” and not restrict — Story uses the word “defeat”” — that power. Schwartz writes,

“For Story, then, the preamble is an argument against strict construction of federal powers: a statement that the Constitution’s grants of powers are to be liberally construed, to promote such things as “the general welfare.”

[This is, of course, the exact opposite of the doctrines of conservatives and originalists such as William Rehnquist, Antonin Scalia, Clarence Thomas, and Samuel Alito, not to mention the entire (anti)Federalist Society. Schwartz makes the important point that “The argument that the preamble meant nothing more than a stylistic flourish … was highly congenial to compact theorists, nullifiers, and secessionists.”

[We have seen this throughout American history: the “domestic enemies” of the Constitution have tried repeatedly to have the Constitution reinterpreted in ways that limit and even abrogate the powers of the national government. Today, the “domestic enemies” of the Constitution want to dismantle “the administrative state” and allow “free enterprise” and “private property” free reign to foul our environment, alter our climate, exploit our labor, limit our economic prospects, mute our political participation, and surveil our lives.

[Schwartz ends by noting that at the time of ratification, the Anti-Federalists fully understood that the grand objectives proclaimed in the Preamble meant that the federal government was not at all strictly limited in its powers, but pointed to an expansive realm of implied powers, as Treasury Secretary Alexander Hamilton would argue in his February 1791 report to President Washington on the constitutionality of establishing a national bank.

[Schwartz writes,

The Framers felt they had to clarify that the new government was a truly national government, and moreover, one based on republican principles—that is, authorized by the sovereign people, not by a grand interstate compact.

Significantly, nothing in the Preamble makes “limited enumerated powers” an object, or—pace Madison—an essential characteristic of the national government. The preamble does not list “federalism,” or “state sovereignty” or “balancing national powers with the rights of the states” among its great objects. [p. 10] ….

Federalists and Anti-Federalists during the ratification debates and early republic both understood the Preamble “as reinforcing a theory of sovereignty and national union that expanded the scope of national power, beyond either those powers that were enumerated or those powers that might be aggregated from that enumeration.”  This nationalist reading, channeling the constitutional vision most acutely expressed by James Wilson, was thus a prominent reading—although so read with horror by Anti-Federalists—as Federalists in the early post-ratification years argued that the Preamble was indeed a legitimate source of implied powers. [pp. 11-12]

[There is plenty of history that clearly demonstrates the wild inaccuracy of “originalist” interpretation: Hamilton’s reports, Justice James Wilson’s law lectures in the first years of the republic [and it was actually Wilson who wrote most of the Constitution; Madison is better known because he took notes on the proceedings], Justice Story’s Commentaries, and more. As Lithwick writes in her Slate article, “In Trump v. Anderson—the recent Supreme Court argument about the state of Colorado’s efforts to remove the former president from the ballot due to his participation in an insurrection—regiments, battalions, and armies of historians came together to debunk the president’s fatuous reading of the 14th Amendment’s disqualification clause.” But, they still lost the case. They have to cease ignoring the purpose and intent of originalism. And they can only do that by understanding what a republic is supposed to be. Not a “republic” as its meaning is now being mutilated and redefined by the reactionaries. The Southern slaveholders insisted the slave states were the true republics in their time. Failure to understand what a republic really is at that time, and repudiate the slaveholders accordingly, led to civil war. ]


The Original Meaning of Enumerated Powers (pdf)

Andrew Coan and David S. Schwartz [Legal Theory Blog]

From the abstract:

The powers of Congress are limited to those enumerated in the Constitution and must not be construed as the equivalent of a general police power. This doctrine of “enumerationism” is the linchpin of a multi-decade conservative assault on the broad conception of federal powers recognized by the Supreme Court since 1937. The loudest champions of enumerationism are originalists. But even critics of originalism generally accept that enumerationism is rooted in the original public meaning of the Constitution. Indeed, it is difficult to think of a stronger—or broader—consensus on an important question of original meaning.

This Article challenges that consensus. Despite its wide acceptance, the originalist case for enumerationism is remarkably weak and undertheorized. At the same time, enumerationists have largely ignored strong arguments that the original public meaning of enumeration was indeterminate. The constitutional text nowhere says that the federal government is limited to its enumerated powers. To the contrary, several provisions—the General Welfare Clause, the Necessary and Proper Clause, and the Preamble—could plausibly be read to support a congressional power to address all national problems.


Recovering the Lost General Welfare Clause

David S. Schwartz [63 William & Mary Law Review 857 (2022)]

Abstract:

The General Welfare Clause of Article I, Section 8, Clause 1 of the Constitution enumerates a power to “provide for the common defense and general welfare.” A literal interpretation of this clause (“the general welfare interpretation”) would authorize Congress to legislate for any national purpose, and therefore to address all national problems— for example, the COVID-19 pandemic—in ways that would be precluded under the prevailing understanding of limited enumerated powers. But conventional doctrine rejects the general welfare interpretation and construes the General Welfare Clause to confer the so-called “Spending Power,” a power only to spend, but not to regulate, for national purposes.

This Article argues that both the text and the drafting history of the General Welfare Clause support reading it as a power to regulate on all national problems, such as environmental degradation, violence against women, and pandemic disease. It is only our superficial ideological commitment to enumerationism—the doctrine of limited enumerated powers—that causes us to depart from the most evident textual interpretation of the General Welfare Clause. Recovering the lost General Welfare Clause is particularly important at this moment in constitutional history, when a conservative and supposedly originalist Supreme Court is poised to greatly constrict federal power to respond to pressing national problems in service of a tendentious and badly one-sided account of Founding Era views on federalism….

[p. 867] ...Only after the repeated electoral triumphs of Jeffersonian Republicanism beginning in 1800-1801 did enumerationism become entrenched as constitutional dogma.  Since the New Deal revolution in 1937, our constitutional order has continued to pay lip service to enumerationism, while making every effort to work around it. Most often, we try to shoehorn regulatory problems into the Commerce Clause….

[p. 870 ...Moreover, limited enumerated powers is not even a second-best mode of enforcing federalism limits. It is at best a third- or fourth-best mode.  The Framers themselves apparently believed that process limits on legislation—such as a two-house legislature and a presidential veto—were more effective than “parchment
barriers” in the form of specified limits.  But if paper barriers were desirable, then a better way to protect reserved state powers would be to enumerate limitations, rather than powers—a point that the Framers apparently understood, for example, in enumerating limits on Congress’s powers in Article I, Section 9.42

[p. 880] ...The drafters of the 1861 Confederate Constitution reworked Clause 1 to obviate a general welfare interpretation: “To lay and collect taxes, duties, imposts,
and excises, for revenue necessary to pay the debts, provide for the common defence, and carry on the government of the Confederate States.”….

[pp. 887-888] The enumeration in Article I, Section 8, originated with the Committee
of Detail draft, reported to the full Constitutional Convention on August 6, 1787.  The Committee’s charge was to write up the numerous resolutions approved by the Convention in the form of a draft constitution… The resolution conforms to one of the primary purposes of calling the Constitutional Convention in the first place: to add legislative powers to what the Confederation Congress possessed.130 The Articles of Confederation had conferred several nontrivial powers on the Union, including powers to declare war, conduct certain foreign affairs functions, “appoint  maritime and prize courts, coin money, fix the standards of weights and measures, regulate commerce and relations with Indian tribes, “establish[ ]” or “regulat[e ]” post offices, and incur debt. Passing these on to the new national government
was uncontroversial, and was approved unanimously.  The “legislate in all cases” language following the semicolon was somewhat more controversial, but was nevertheless approved on July 17 by a solid 8-2 vote of the state delegations present…. The conventional view that the enumeration is exhaustive requires explaining away the Resolution 6 instruction to authorize Congress to legislate “in all 

Sunday, May 5, 2024

Week-end Wrap – Political Economy – May 5 2024

Week-end Wrap – Political Economy – May 5 2024

by Tony Wikrent


Disrupting mainstream economics

Finding the Money OFFICIAL TRAILER

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[Finding the Money, YouTube, 

Release MAY 3, 2024: www.findingmoneyfilm.com

An intrepid group of economists is on a mission to instigate a paradigm shift by flipping our understanding of the national debt — and the nature of money — upside down. FINDING THE MONEY follows Stephanie Kelton, former chief economist on the Senate Budget Committee, on a journey through Modern Money Theory or "MMT," to inject new hope and empower democracies around the world to tackle the biggest challenges of the 21st century: from climate change to inequality.

Biden's Economic Adviser Tries and Fails To Explain How Money Works

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[Washington Free Beacon on YouTube, via Naked Capitalism 05-03-2024]

[TW: Jared Bernstein is one of the most progressive, pro-labor mainstream economists out there. He is is a senior fellow at the Center on Budget and Policy Priorities, and serves  as Chair of the Council of Economic Advisers. His stupefaction on this question sparked a very interesting and informative discussion in the comments on Naked Capitalism Links 05-03-2024.]


Global power shift

SITREP 4/27/24: U.S. Admits Top Weapons Failures to Superior Russian EW 

[Simplicius the Thinker, via Naked Capitalism 04-28-2024]


Another US pilot confirms F-16s in Ukraine are toast 

[InfoBrics, via Naked Capitalism 04-30-2024]


Are the BRICS and Their New Development Bank Offering Alternatives to the World Bank, the IMF? 

Eric Toussaint [Committee for the Abolition of Illegitimate Debt, via Naked Capitalism 04-04-2024]

The five founding member countries of the BRICS, created in 2011, are Brazil, Russia, India, China and South Africa. They account for 27% of global GDP, 20% of global exports, 20% of global oil production and 41% of the world’s population….

... what is the New Development Bank? What is the share of each BRICS country in the New Development Bank and how does it work?.… What is the status of the BRICS Monetary Fund, known by its acronym CRA?


State shipbuilder signs big tanker deal

[China Daily, 2024-04-29]

China State Shipbuilding Corp, one of the world's largest shipbuilders, has received what it calls the largest single global order of ships from energy industry giant QatarEnergy. The State-owned conglomerate signed a contract with the Qatari company on Monday in Beijing for 18 superheavy liquefied natural gas tankers….

According to a news release from CSSC, the deal has become the largest single procurement of ships in the history of the global shipbuilding sector, though the company refused to disclose the order's value to maintain confidentiality. The contract is a testimony to CSSC's rising status in the global market, and also symbolizes China's rapid advances in the research, development and building of ultralarge LNG tankers, it noted.

China Launches World’s Largest Electric Container Ship 

[Tech Times.com, via Naked Capitalism 05-01-2024]

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Gaza / Palestine / Israel

The Israel-US game plan for Gaza is staring us in the face 

Jonathan Cook [via Naked Capitalism 05-04-2024]


How a Leading Definition of Antisemitism Has Been Weaponized Against Israel’s Critics 

[The Nation, 2023, via Naked Capitalism 05-02-2024]


Israel’s Far-right Minister Smotrich Calls for ‘No Half Measures’ in the ‘Total Annihilation’ of Gaza 

[Haaretz, via Naked Capitalism 05-02-2024]


Israeli Finance Minister Denounced for Calling for 'Total Annihilation' of Gaza

Julia Conley, May 01, 2024 [CommonDreams]


Jewish Anti-Zionists Fight Slander Against Their Pro-Palestinian Advocacy 

[The Maple, via Naked Capitalism 05-02-2024]


“This Militaristic Approach Has Been a Failure”: Meet Hala Rharrit, First U.S. Diplomat to Quit over Gaza 

[Democracy Now, via Naked Capitalism 05-04-2024]


Top Ways MAGA and Right Wing Zionism Converge, and Why Smotrich is Embracing Trump 

Juan Cole, via Naked Capitalism 05-04-2024]


US finds Israeli military units violated human rights; withholds consequences 

[The Hill, via Naked Capitalism 04-30-2024]


The New “Pro-Israel” Assault on Free Speech

[Robert Wright's Nonzero Newsletter, May 4, 2024]

...The Antisemitism Awareness Act—passed by a vote of 320 to 91—grounds its authority in Title VI of the Civil Rights Act. Under Title VI, colleges that tolerate discrimination on their campuses can be punished by the Department of Education via termination of federal funding. Which gives colleges a strong incentive to crack down on any workers or students who practice discrimination.

So what exactly qualifies as discrimination under Title VI? And, in particular, what would qualify as discrimination against Jews? There’s no explanation of that in Title VI itself (which wasn’t originally construed to include Jews as a protected group, since it focuses on racial and national groups and explicitly excludes religious groups). That’s where the Antisemitism Awareness Act comes in. It says that in determining whether Jews face discrimination (which under Title VI includes harassment) the Department of Education should refer to a controversial and sweeping definition of antisemitism—the definition adopted by the International Holocaust Remembrance Alliance….

A number of civil liberties and free speech groups—including the ACLU—have noted how various other parts of the IHRA antisemitism definition are problematic from a first amendment perspective. The more of their assessments you read, the clearer it becomes that the Antisemitism Awareness Act is an atrocity.

So how did it come to be? Like Trump’s executive order, it is largely a product of lobbying by “pro-Israel” groups. (I’ll explain the sarcastic quotation marks below.) As the Jerusalem Post reported in February, more than a dozen pro-Israel groups—including AIPAC, the Anti-Defamation League, and the Conference of Presidents of Major American Jewish Organizations—have been urging Congress to act on this front.

This particular pro-Israel threat to free speech in America isn’t the first. More than two thirds of America’s states have passed laws that target the BDS movement, which aims to pressure Israel via boycotts, divestments, and sanctions. 


Oligarchy

[X-Twitter, via Naked Capitalism 04-29-2024]

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The Tech Baron Seeking to Purge San Francisco of “Blues”

Gil Duran, April 26, 2024 [The New Republic]

If Balaji Srinivasan is any guide, then the Silicon Valley plutocrats are definitely not OK….

Balaji, a 43-year-old Long Island native who goes by his first name, has a solid Valley pedigree: He earned multiple degrees from Stanford University, founded multiple startups, became a partner at Andreessen-Horowitz and then served as chief technology officer at Coinbase. He is also the leader of a cultish and increasingly strident neo-reactionary tech political movement that sees American democracy as an enemy. In 2013, a New York Times story headlined “Silicon Valley Roused by Secession Call” described a speech in which he “told a group of young entrepreneurs that the United States had become ‘the Microsoft of nations’: outdated and obsolescent.” 

“The speech won roars from the audience at Y Combinator, a leading start-up incubator,” reported the Times…. his appetite for autocracy is bottomless. Last October, Balaji hosted the first-ever Network State Conference. Garry Tan—the current Y Combinator CEO who’s attempting to spearhead a political takeover of San Francisco—participated in an interview with Balaji and cast the effort as part of the Network State movement. Tan, who made headlines in January after tweeting “die slow motherfuckers” at local progressive politicians, frames his campaign as an experiment in “moderate” politics. But in a podcast interview one month before the conference, Balaji laid out a more disturbing and extreme vision….

“What I’m really calling for is something like tech Zionism,” he said, after comparing his movement to those started by the biblical Abraham, Jesus Christ, Joseph Smith (founder of Mormonism), Theodor Herzl (“spiritual father” of the state of Israel), and Lee Kuan Yew (former authoritarian ruler of Singapore). Balaji then revealed his shocking ideas for a tech-governed city where citizens loyal to tech companies would form a new political tribe clad in gray t-shirts.  ….In addition, the Grays would make an alliance with the police department, funding weekly “policeman’s banquets” to win them over.

“Grays should embrace the police, okay? All-in on the police,” said Srinivasan. “What does that mean? That’s, as I said, banquets. That means every policeman’s son, daughter, wife, cousin, you know, sibling, whatever, should get a job at a tech company in security.”…

Balaji goes on—and on. The Grays will rename city streets after tech figures and erect public monuments to memorialize the alleged horrors of progressive Democratic governance. Corporate logos and signs will fill the skyline to signify Gray dominance of the city. “Take total control of your neighborhood. Push out all Blues. Tell them they’re ... unwelcome,” he said. “Just as Blues ethnically cleanse me out of San Francisco, like, push out all Blues.” The idea, he added, is to do to San Francisco what Musk did to Twitter.


It’s Time to Tax the Billionaires 

Gabriel Zucman [New York Times, via Naked Capitalism 05-04-2024]


Should Billionaires Exist? 

Robert Reich [via Naked Capitalism 05-02-2024]

...I’m not arguing against big rewards for entrepreneurs and inventors. But do today’s entrepreneurs really need billions of dollars? Couldn’t they survive on a measly hundred million?

Because they’re now using those billions to erode American institutions. They spent fortunes bringing Supreme Court justices with them into the wild.They treated news organizations and social media platforms like prey, and they turned their relationships with politicians into patronage troughs.

This has created an America where fewer than ever can become millionaires (or even thousandaires) through hard work and actual innovation.

The carnage of mainstream neoliberal economics

65 PROMINENT GLOBAL LEADERS AND PUBLIC FIGURES URGE NEW YORK TO PASS GROUNDBREAKING BILL ADDRESSING DEBT CRISIS 

[Club de Madrid, via Naked Capitalism 04-28-2024]

A coalition of 65 former heads of state and government, CEOs, artists, business leaders, climate advocates and policymakers have called upon Governor Kathy Hochul and the New York State Legislature to pass a groundbreaking bill, the Sovereign Debt Stability Act, which aims to significantly lower the economic strain on low- and middle-income countries burdened by unsustainable debt levels.

Organized by Oxfam, a global organization fighting inequality to end poverty and injustice, the open letter demonstrates the substantial international support for the bill and the attention on New York’s legislature from every corner of the globe. The diverse group of signers includes 21 former heads of state….

The proposed legislation would make it more efficient for indebted nations to restructure loans governed under New York laws, and ensure that predatory creditors – also known as ‘vulture funds’ – can no longer abuse the New York court system and take advantage of taxpayers. This change could help poor countries stabilize their economies and make crucial investments that reduce inequality. By passing this bill, New York’s leaders have the chance to ensure New York remains the most important market for sovereign bonds, create a model for other jurisdictions and deliver justice on a global scale….

A water crisis in Mississippi turns into a fight against privatization 

[Grist, via Naked Capitalism 04-29-2024]


Ten Years After the Flint Water Crisis, Distrust and Anger Linger

[ProPublica, via Naked Capitalism 05-04-2024]

A city is forever changed, and so is residents’ relationship with their water. The betrayal of trust by the institutions meant to protect Flint’s residents has made some of them extra cautious as they look to keep themselves and their community safe.

The New Usury: The Ability-to-Repay Revolution in Consumer Finance 

Adam Levitin [Credit Slips, via Naked Capitalism 05-04-2024]

I have a new article out in the George Washington Law Review, entitled The New Usury: The Ability-to-Repay Revolution in Consumer Finance. The abstract is below:

American consumer credit regulation is in the midst of a doctrinal revolution. Usury laws, for centuries the mainstay of consumer credit regulation, have been repealed, preempted, or otherwise undermined. At the same time, changes in the structure of the consumer credit marketplace have weakened the traditional alignment of lender and borrower interests. As a result, lenders cannot be relied upon to avoid making excessively risky loans out of their own self-interest.

Two new doctrinal approaches have emerged piecemeal to fill the regulatory gap created by the erosion of usury laws and lenders’ self-interested restraint: a revived unconscionability doctrine and ability-to-repay requirements. Some courts have held loan contracts unconscionable based on excessive price terms, even if the loan does not violate the applicable usury law. Separately, for many types of credit products, lenders are now required to evaluate the borrower’s repayment capacity and to lend only within such capacity. The nature of these ability-to-repay requirements varies considerably, however, by product and jurisdiction. This Article terms these doctrinal developments collectively as the “New Usury.”



Survival of the Wealthiest: Joseph E. Stiglitz on the Dangerous Failures of Neoliberalism 

Joseph Stiglitz [Literary Hub, via Naked Capitalism 05-03-2024]


Predatory finance

The tax sharks are back and they’re coming for your home 

Cory Doctorow [Pluralistic, via Naked Capitalism 04-28-2024]


Apollo Accused in Lawsuit of Illegal Human Life Wagering Scheme 

[Bloomberg, via Naked Capitalism 04-30-2024]


Apple Announces Largest-Ever $110 Billion Share Buyback As iPhone Sales Drop 

[CNBC, via Naked Capitalism 05-04-2024]


They’re not capitalists — they’re predatory criminals

Safe Havens: The UK’s “second empire” of tax-free jurisdictions

Quinn Slobodian [The New York Review, May 23, 2024 issue]

Two recent books, Oliver Bullough’s Butler to the World and Kojo Koram’s Uncommon Wealth, tell a different story: of Britons modernizing their country by boarding first-class overseas flights to distant points to figure out ways to undermine the new economic order. While the US was helping rebuild the devastated economies of Western Europe and construct the World Bank and the International Monetary Fund, Britain was busy erecting what the City University London economist Ronen Palan calls its “second empire” of low- and no-tax jurisdictions.

Architects of a project parallel to the welfare state that would eventually help to undermine it, they proposed an exchange: if the atlas painted pink to mark imperial possessions was gone forever and Britain’s furnaces and factories would never again lead the world, then at least the empire’s financial core in the City of London could live on. Territorial control of continents would be swapped for the hub and spokes of a financial network. Today roughly half of the world’s tax havens are directly linked to the UK and responsible for a good share of the estimated $8.7 trillion held offshore.

Seeing postwar history through the tax haven helps us understand how empire ended but so little changed. For Koram, a legal scholar, an early turning point between the first and second empires was the overthrow of the Iranian prime minister Mohammed Mossadegh in 1953 with the help of British and US intelligence after his partial nationalization of the Anglo-Iranian Oil Company. The message to Iran, which had never been officially colonized, and to “all people across the world excited by the promise of decolonization” was clear: “Sovereignty is not the saviour you think it is.”

The Pitiful Penalties for Violating Labor Law 

Timothy Noah, May 3, 2024 [The New Republic]

A new report details how companies face few consequences for stealing wages, employing children, and obstructing union organizing.


Restoring balance to the economy    

Message to Congress on Curbing Monopolies 

Franklin D. Roosevelt. April 29, 1938 [via Naked Capitalism 05-02-2024]


Information age dystopia / surveillance state

School principal was framed using AI-generated racist rant, police say. A co-worker is now charged. 

[WJZ, via Naked Capitalism 04-28-2024]


FCC Fines AT&T, T-Mobile and Verizon Almost $200 Million for Illegally Sharing Customer Location Data 

[MacRumors, via Naked Capitalism 04-30-2024]


Climate and environmental crises

Rivers are the West’s largest source of clean energy. What happens when drought strikes? 

[Grist, via Naked Capitalism 04-28-2024]


Measuring the Doughnut: A good life for all is possible within planetary boundaries 

[Journal of Cleaner Production, via Naked Capitalism 05-03-2024]


Microsoft and Brookfield Sign Biggest-Ever Clean Power Deal

[Clean Power Roundup, May 1, 2024]

(Bloomberg) -- Microsoft Corp. and Brookfield Asset Management’s green energy arm signed the biggest corporate clean-energy purchase agreement ever announced, as the technology giant ramps up its investment in artificial intelligence. 

Brookfield Renewable Partners will provide more than 10.5 gigawatts of renewable energy capacity in the US and Europe starting in 2026, according to a statement Wednesday. That’s comparable to about 10 nuclear power plants and reflects the turbocharged demand for electricity from data centers and artificial intelligence.


Creating new economic potential - science and technology

Lithium-Free Sodium Batteries Exit the Lab, Enter US Production

[New Atlas, via Naked Capitalism 05-04-2024]

...Not only is sodium somewhere between 500 to 1,000 times more abundant than lithium on the planet we call Earth, sourcing it doesn’t necessitate the same type of earth-scarring extraction. Even moving beyond the sodium vs lithium surname comparison, Natron says its sodium-ion batteries are made entirely from abundantly available commodity materials that also include aluminum, iron and manganese. Furthermore, the materials for Natron’s sodium-ion chemistry can be procured through a reliable US-based domestic supply chain free from geopolitical disruption. The same cannot be said for common lithium-ion materials like cobalt and nickel….


Democrats' political malpractice

Biden’s Very Trumpian Response to the Peaceful Student Protests 

Alex Shephard, May 3, 2024 [The New Republic]

He’s explicitly demonizing nonviolent demonstrators and implicitly supporting the disproportionate and violent police response.


This Bipartisan Bill Could Give Trump Huge Power Against His Enemies

Kate Aronoff, April 30, 2024 [The New Republic]

On April 15, the House overwhelmingly passed a bill with a title so boring it escaped most people’s attention: “To amend the Internal Revenue Code of 1986 to terminate the tax-exempt status of terrorist supporting organizations.” House Resolution 6408 was one of a trio of bills rushed through in response to Iran’s retaliatory attack on Israel days before, the premise of which seemed straightforward enough: Organizations that support terrorism should not be exempt from taxes.

In reality, the bill could be used to target a huge number of nonprofits. While clearly imagined by its sponsors as a means of targeting pro-Palestinian organizations, civil liberties organizations warn it could have sweeping consequences for groups working on climate and environmental causes (among several other issues) should the next occupant of the Oval Office choose to use it as a means of attacking his political enemies. And as Democrats and Republicans alike berate university administrators for not cracking down harder on pro-Palestine protests on their campus, even colleges’ tax-exempt status could be threatened….


Conservative / Libertarian / (anti)Republican Drive to Civil War

How a Few Secret Donors Are Fueling the New Right-Wing Infrastructure  

Isabela Dias, April 30, 2024 [Mother Jones].

The Bradley Impact Fund helps finance the work of groups led by Michael Flynn and Stephen Miller. Most of the money can be traced to four undisclosed sources, documents show….

Created in 2012, the Bradley Impact Fund is a donor-advised fund (DAF) “aligned” with the Milwaukee-based Lynde and Harry Bradley Foundation, which has a long history of conservative influence...  Over the last few years, the Bradley Impact Fund has experienced massive growth, emerging as one of the key bankrollers of the coterie of organizations and apparatchiks hoping to create institutions that carry out Trump’s ideological agenda. In the process, Bradley fuels the culture wars and undermines faith in democracy by stirring election denialism—all while keeping its donors secret.

More than 75 percent of contributions to the Bradley Impact Fund in 2022 came from just four sources….

This work is being enabled by an extraordinarily small universe of donors. Bradley boasts about cultivating a network of contributors across 44 states. But more than 75 percent of contributions to the Bradley Impact Fund in 2022 came from just four sources, according to an audited financial statement filed with the California Department of Justice that the nonprofit research organization Accountable US shared with Mother Jones.

The Bradley Impact Fund received roughly $108 million in contributions and grants that year, including three donations of $36 million, $20 million, and $18 million, respectively. At least another $12 million came from a different donor-advised fund, DonorsTrust, the “dark money ATM” of the conservative movement. By its own admission, DonorsTrust is a convenient conduit for benefactors wishing to provide “gifts funding sensitive or controversial issues.”

...In the Bradley Foundation’s 2023 annual report, the organization disclosed donations of $250,000 to the Manhattan Institute for Policy Research, where anti-CRT activist Christopher Rufo is a senior fellow, to “support efforts to combat identity politics,” $30,000 to Leo’s Teneo Network, and $100,000 to the sprawling MAGA “nerve center” known as the Conservative Partnership Institute….

CPI itself has turned into a fundraising powerhouse too, bringing in $36 million in 2022. Much of that money can be traced to a relatively little-known donor, Mike Rydin, the now-retired founder of a Texas-based construction software development company. Rydin has given more than $25 million to CPI since the January 6 invasion of the US capitol, according to the Daily Beast, and offered a “generous gift” to help the organization purchase property on Capitol Hill. In turn, CPI has named one of the townhouses in its expanding real estate “Patriots’ Row” campus for the far-right “The Rydin House,” which Newsmax has since used to film an apologist documentary about January 6 titled Day of Outrage. CPI’s 2,200-acre retreat on Maryland’s eastern shore also goes by “Camp Rydin.”….


Active Clubs: A new far-right threat to democratic elections 

[Al Jazeera, via Naked Capitalism 05-03-2024]

Across North America and Europe, the far-right Active Clubs movement is expanding at an unprecedented pace, presenting new threats to democratic elections and minorities.

With a network of decentralised cells in most states in the United States and European Union member countries, the Active Clubs movement has blended far-right extremism with mixed martial arts (MMA). By presenting a more palatable image to the public and combining its extremist ideology with exercise, fitness and MMA training, Active Clubs have widened their appeal to reach a much broader audience than traditional white supremacist groups whose members are often derided for being “keyboard warriors”….

Launched in 2021, the movement now includes more than 104 known cells across the US, Canada, and Europe, according to a recent Counter Extremism Project report. The unprecedented growth of the movement poses serious public safety risks as the US and many democratic countries approach elections in 2024. With a history of engaging in political violence and intimidation, there is a significant risk that the network’s cells could serve as a violent militia and “brownshirt” organisation interfering in elections and political events across the US over the coming year.

To understand the growth and dangers of Active Clubs, we need to examine how the movement started. First launched in January 2021, the network was the second project started by Robert Rundo, a white American nationalist who spent time in Europe learning from other far-right groups and founded the Rise Above Movement (RAM).

After the arrest of Rundo and three other group leaders during the 2019 Unite the Right rally in Charlottesville, Virginia, the hierarchically organised RAM began to disintegrate. Recognising the danger that well-placed arrests could pose to vertically structured organisations, Rundo adopted the model of leaderless resistance, first developed by the white nationalist writer Louis Beam in 1983….


Anti-Choice Fanatics Are Now Targeting Women Who Go To Other States For An Abortion

Howie Klein, May 4, 2024  [downwithtyranny.com]

...Early yesterday, Carolina Kitchener reported that Texas’ vigilante law has given us a look at a crackpot Trump lawyer, Jonathan Mitchell, is trying to ruin the life of a woman for having traveled to Colorado for an abortion. The woman’s boyfriend, Collin Davis, hired Mitchell to stop her from leaving the state in late February, threatening to “pursue wrongful-death claims against anyone involved in the killing of his unborn child.”

She had the abortion and Davis and Mitchell are out for blood. “The decision to target an abortion that occurred outside of Texas,” wrote Kitchener, “represents a potential new strategy by anti-abortion activists to achieve a goal many in the movement have been working toward since Roe v. Wade was overturned: stopping women from traveling out of state to end their pregnancies. Crossing state lines for abortion care remains legal nationwide. The case also illustrates the role that men who disapprove of their partners’ decisions could play in surfacing future cases that may violate abortion bans— either by filing their own civil lawsuits or by reporting the abortions to law enforcement. Under Texas law, performing an abortion is a crime punishable by up to a lifetime in prison and up to $100,000 in civil penalties. Women seeking abortions cannot be charged under the state’s abortion restrictions, but the laws target anyone who performs or helps to facilitate an illegal abortion, including those who help distribute abortion pills.”

“…Anti-abortion advocates have tried various tactics to dissuade women from traveling out of state for abortions. Idaho has passed a law making it illegal for someone to help a minor leave the state for an abortion without parental consent— which is currently blocked by the courts— and Tennessee is pursuing similar restrictions. Several Texas cities and counties have passed local ordinances attempting to stop women seeking abortions from using key portions of high-traffic highways.”


How Far Trump Would Go (interview of Trump) 

Eric Cortellessa, April 30, 2024 [Time]


Crime And Punishment— American Style: GOP Xenophobes & Racists Blame Migrants For A Pretend Crime Wave

Howie Klein, May 1, 2024  [downwithtyranny.com]

...USA Today reporter, Zac Anderson, wrote that amid the heated crime rhetoric roiling American politics, Señor Trumpanzee and his shameless enablers in Congress— plus a media desperate for clicks and views— “are using dire terms to describe crime trends in America.” Objective reality, however, “has been slow to emerge but stands in stark contrast to Trump's narrative.” Last year, data showed murders declining nationwide, with the U.S. was experiencing a major drop in killings, “one of the fastest rates of decline ever recorded.”

….Yesterday, Judd Legum and Tesnim Zekeria noted that Trump and has congressional and media allies are pounding away at a “migrant crime wave,” referring to it as a “real bloodbath occurring right now under crooked Joe— Biden’s Border Bloodbath. There’s never been anything like that.” He claims that when he was in the White House, “We had the safest border in history. Now we have the worst border probably in the history of the world. Every day innocent citizens are being killed, stabbed, shot, raped, and murdered because of Biden migrant crime.”…

The big problem… it just isn’t true. Legum and Zekaria wrote that “There are violent crimes committed by undocumented migrants, which are traumatic for the victims, their families, and their communities. That is why the accusation that Biden is responsible for a surge in violent crime by undocumented migrants is so politically potent. There are disturbing anecdotes of crimes that make powerful fodder for attacks during a political campaign. People, understandably, want to feel safe. But is there evidence that, since Biden took office, there has been a surge in violent crime by undocumented migrants?”

Jeff Asher looked at trends for “violent crime across the 14 counties along the Texas border with Mexico.” He found “no evidence of increasing violent crime along the US border with Mexico.”



Howie Klein, April 29, 2024  [downwithtyranny.com]

...Two things happened: the “money started pouring in [and In a repudiation of Greene’s inflammatory statements, members of Congress voted to strip her of her committee assignments— traditionally, a lawmaker’s main calling cards for seeking campaign donations— but Greene found that no trouble at all. Instead, she cashed in on the outrage of her fellow-lawmakers by making a torrent of online appeals to MAGA voters. ‘Never before has a Republican been under attack like me since the Democrats tried to impeach and remove President Trump from office,’ one of her fund-raising e-mails declared. ‘And without your support, I have no way of defending myself.’ In the first quarter of 2021, she raised a staggering $3.2 million, with an average donation of thirty-two dollars.”.

...

An NYU Law professor, Richard Pildes, told Kirkpatrick that “The more extreme the position taken, the more provocative the stance, the more outrageous the claim, then the more viral attention gets generated. And that in turn unleashes a torrent of small donations.”…. Kirkpatrick explained that “A political economy where controversy means cash is one where Greene— like Trump, her hero and patron— has thrived. Not long after taking office, she hired Ed Buckham, a master at turning aggressive fund-raising into political power, as her chief of staff. Two decades earlier, Buckham had helped Tom DeLay, a Texas  Republican, climb to the role of House Majority Leader. With Buckham as his top adviser, DeLay first made his mark by railing against his party’s leaders from the right, just as Greene does now. Then he and Buckham built the preëminent fund-raising machine of their day. DeLay used campaign money to wield power over his fellow-Republicans, and his hardball tactics earned him the nickname the Hammer. Both men were ultimately tarred by the enormous corruption scandal around the lobbyist Jack Abramoff, which helped force DeLay from office in 2006. But neither DeLay nor Buckham were charged with any crime linked to Abramoff. When Greene brought Buckham back to the Capitol, in 2021, she told the Washington Examiner that he ‘has had more experience in the swamp, so to speak, probably than most people working on the Hill right now, and I need that wisdom and experience on my team to achieve what I’m looking to do.’ She added, ‘I’m not afraid of the controversy.’”


Have You Ever Met Any Intelligent, Well-Informed People Who Vote For Trump Or Follow The QAnon Cult?

Howie Klein, April 30, 2024  [downwithtyranny.com]


...The classic 1985 study by Vallone, Ross and Lepper, The Hostile Media Phenomenon: Biased Perception and Perceptions of Media Bias in Coverage of the Beirut Massacre examined how Americans (both pro-and anti-Israeli) perceive media coverage of politically charged events through the lens of their own biases. Want to read more? Try Stroud’s 2008 study Selective exposure to partisan information, which  investigates how individuals selectively expose themselves to political information online, exploring the role of confirmation bias in shaping media consumption habits.N

NBC didn’t actually get into any of that. Yesterday, Ben Kamisar reported that Trump and Biden supporters get their news from different sources….


The (anti)Federalist Society assault on the Constitution

Choosing Pragmatism Over Textualism

Stephen Breyer [The New York Review, May 23, 2024 issue]

...Words in a statute or the Constitution, textualists say, must be given their “original public meaning.” And unlike those who follow a more traditional, practical method, textualists, such as Justice Scalia, tend to “reject judicial speculation about both the drafters’ extratextually derived purposes and the desirability of the fair reading’s anticipated consequences.” The stricter textualists thus avoid putting any interpretive weight on purposes, consequences, or values…. Textualists typically say that purposes are too difficult to find, and that even if they were not, a statutory phrase may serve multiple, and even opposing, purposes. Textualists further contend that a description of purpose found in committee reports or other legislative history may reflect the views or the language of lobbyists or unelected congressional staff members rather than of elected members of Congress. The traditional examination of purpose, consequences, and values, textualists say, allows unelected, life-tenured judges to substitute their own ideas of what is good for the law itself….

The Constitution presents difficult interpretive problems. It contains multitudes of provisions, requirements, and prohibitions. And it must endure for the ages, even in times unimaginably different from the circumstances of its creation. The document’s abstract phrases, its underlying values, its varying objectives, and its need to endure—all these suggest that there will not be any single tool that, when applied to each of its provisions, can produce satisfactory answers.

In his landmark opinion in McCulloch v. Maryland (1819), Chief Justice John Marshall suggested just that. The Court had to decide whether the Constitution gave Congress the power to create a national bank. The language of the Constitution said nothing about banks. The Court nonetheless answered the question, “Yes.” Chief Justice Marshall looked at six different considerations….

One might well ask [of textualists]: If the original understanding of the Constitution is of paramount significance, then why not accord the same weight to Chief Justice Marshall’s understanding of interpretive methodology? After all, he was among the leaders of the Virginia Ratifying Convention. Surely his approach to constitutional interpretation should inform an originalist’s views. If not, then how does an originalist approach constitutional interpretation differently from Marshall in McCulloch?

I’ll begin with an important case that produced serious effects: the Supreme Court’s recent application of an “originalist” approach in New York State Rifle and Pistol Association v. Bruen (2022). The case concerned the constitutionality of a New York State law that required citizens to have a license to carry firearms, openly or concealed, in public. Did that law violate the Second Amendment, which says, “A well-regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed”? ….In an amicus brief for Bruen, a group of historical experts told the Court that the Heller dissent was right; and a group of linguistic experts said they had searched more than 120,000 texts written between 1760 and 1799 (as well as thousands of other historical texts) and found that the phrase “bear arms” was overwhelmingly used to refer to “war, soldiering, or other forms of armed action by a group rather than an individual.” …..

To insist upon a static, unchanging reading of legal texts can only make more difficult the task of fitting law to human life. To rely on text to the exclusion of purpose, practice, consequences, and workability will fail to account for the variety and complexity of the human experience…. I believe that an understanding of how law works—including an understanding of how it can protect basic values and enable diverse communities to live together harmoniously, peacefully, and prosperously—is essential to the rule of law itself. What will happen if Americans come to believe that law does not work? That it cannot make their communities—indeed, their lives—better?  


Elite impunity

The Culture of the CIA

Thomas Neuburger, April 30, 2024  [downwithtyranny.com]

“It is inconceivable that a secret intelligence arm of the government has to comply with all the overt orders of government.”

—James Angleton, CIA Deputy Director for Operation (1954–1975) to the Church Committee

….To consider the source of CIA culture, one needs to look at two men. The first is OSS officer and later CIA chief Allen Dulles. The other is James Angleton, counterintellingence chief from 1954 to 1975. (See quote above.) More on Angleton later.

Allen Dulles served in the OSS, primarily as Swiss director, from October 1941 to October 1945. After the war, he was recruited into the CIA in 1951 as Deputy Director of Plans (the operations division) and was the fifth Director of the CIA, serving (I hate to use that word) from 1953 to 1961, when John Kennedy forced him out.

About Dulles’ time in Switzerland, the historian (and fabulous story-teller) David Talbot wrote this: 

“There was nothing undercover about Allen Dulles’s wartime exploits in Switzerland. Afterward, he made much of his espionage adventures, with a sympathetic press and then equally credulous biographers dutifully repeating his beguiling tales. But, in truth, there was little daring involved—for a very simple reason. Dulles was more in step with many Nazi leaders than he was with President Roosevelt. Dulles not only enjoyed a professional and social familiarity with many members of the Third Reich’s elite that predated the war; he shared many of these men’s postwar goals. While serving in his Swiss outpost, Dulles might have been encircled by Nazi forces, but he was also surrounded by old friends.”