Monday, February 7, 2011
Quo Vadis Huffington Post
This article raises questions about the future of the Huffington Post following its sale to AOL for over $300 million. AOL has been one of the worse destroyers of value after mergers and acquisitions than any firm in the media industry.
Right Wing Exploitation of the Internet
http://www.guardian.co.uk/commentisfree/libertycentral/2010/dec/13/astroturf-libertarians-internet-democracy
As a follower of bloggers like Krugman, who often take positions that challenge corporate or state interests, I often read some of the comments to their posts. It has become predictable that the number of slanderous comments and repetition of false claims increase whenever an issue is raised that threatens important interests or prevailing ideology. These commentators do not debate the evidence that led to the conclusions that they do not like. Instead bloggers like Krugman are personally attacked by labeling them as "lefties", "socialists" or even worse. The above link is to some research that has been done which explains how these attacks are funded and organized by right wing astroturf organizations which instruct Tea Party members, and others with similar views, on how to use the Internet to serve their purposes. This article barely touches the surface but it is instructive.
As a follower of bloggers like Krugman, who often take positions that challenge corporate or state interests, I often read some of the comments to their posts. It has become predictable that the number of slanderous comments and repetition of false claims increase whenever an issue is raised that threatens important interests or prevailing ideology. These commentators do not debate the evidence that led to the conclusions that they do not like. Instead bloggers like Krugman are personally attacked by labeling them as "lefties", "socialists" or even worse. The above link is to some research that has been done which explains how these attacks are funded and organized by right wing astroturf organizations which instruct Tea Party members, and others with similar views, on how to use the Internet to serve their purposes. This article barely touches the surface but it is instructive.
Worldwide Food Production Down Because of Climate Change
http://www.nytimes.com/2011/02/07/opinion/07krugman.html?_r=1
Krugman looks for an explanation of rising food prices which are leading to political unrest in poor countries and links declining food production to weather factors. 2010 was one of the warmest years in history. Rising sea temperatures has caused flooding in some parts of the world and Russian wheat production declined as result of high temperatures and draught. Temperatures in Moscow reached 100 degrees for the first time in history.
Krugman doesn't expect the usual suspects to buy into his argument but he believes that we are just seeing the beginning of the impact of global warming on weather patterns.
Krugman looks for an explanation of rising food prices which are leading to political unrest in poor countries and links declining food production to weather factors. 2010 was one of the warmest years in history. Rising sea temperatures has caused flooding in some parts of the world and Russian wheat production declined as result of high temperatures and draught. Temperatures in Moscow reached 100 degrees for the first time in history.
Krugman doesn't expect the usual suspects to buy into his argument but he believes that we are just seeing the beginning of the impact of global warming on weather patterns.
Sunday, February 6, 2011
JP Morgan and Madoff
http://blogs.reuters.com/felix-salmon/2011/02/04/three-takes-on-jp-morgan-and-madoff/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+felix-all+%28Felix+Salmon+-+All+%28Reuters+%2B+FS.com%29%29&utm_content=Google+Reader
This article raises questions about the relationship between JP Morgan and the Madoff Ponzi scheme. JPM is being sued by The Trustee who is trying to recover money for those who suffered losses. The article refers to the specific page in the suit that implicates JPM. There is also a link to an article by Peter Goodman who states this is consistent with the changes on Wall Street since the dot.com boom. He argues that they are no longer banks and have become casinos that get a cut on every bet.
This article raises questions about the relationship between JP Morgan and the Madoff Ponzi scheme. JPM is being sued by The Trustee who is trying to recover money for those who suffered losses. The article refers to the specific page in the suit that implicates JPM. There is also a link to an article by Peter Goodman who states this is consistent with the changes on Wall Street since the dot.com boom. He argues that they are no longer banks and have become casinos that get a cut on every bet.
Saturday, February 5, 2011
Inequality as the Next Wildcard
http://www.project-syndicate.org/commentary/rogoff77/English
Kenneth Rogoff, posted an article about one of the big topics at Davos. He argues that inequality within countries has been rising even as inequality between many countries has been falling. Ordinarily, countries are able to deal with inequality by redistributing income. However, many countries are unable to redistribute income because of the fiscal burdens they are dealing with in response to the financial crisis and the worldwide recession. For example, Spain has a 20% unemployment rate but its government is unable to increase its debt burden in response to the inequality problems that it faces. He views the recent problems in Egypt as an issue that many countries may have to face in the future if they are not able to resolve their problems through democratic processes.
He does not refer specifically to rising inequality in the US but he does not believe that governments can raise taxes on the rich because they can take their businesses elsewhere. In fact, the CEO of JP Morgan, and the CEO of Barclays in the UK made that point at Davos. In any case, this could become an issue in the US and it has not been addressed by government. Most of the economic proposals from the administration, such as improving access to quality education, do not reduce inequality in the short term.
Kenneth Rogoff, posted an article about one of the big topics at Davos. He argues that inequality within countries has been rising even as inequality between many countries has been falling. Ordinarily, countries are able to deal with inequality by redistributing income. However, many countries are unable to redistribute income because of the fiscal burdens they are dealing with in response to the financial crisis and the worldwide recession. For example, Spain has a 20% unemployment rate but its government is unable to increase its debt burden in response to the inequality problems that it faces. He views the recent problems in Egypt as an issue that many countries may have to face in the future if they are not able to resolve their problems through democratic processes.
He does not refer specifically to rising inequality in the US but he does not believe that governments can raise taxes on the rich because they can take their businesses elsewhere. In fact, the CEO of JP Morgan, and the CEO of Barclays in the UK made that point at Davos. In any case, this could become an issue in the US and it has not been addressed by government. Most of the economic proposals from the administration, such as improving access to quality education, do not reduce inequality in the short term.
Bill Proposed in Arizona to Enable State to Nullify Federal Law
http://tpmmuckraker.talkingpointsmemo.com/2011/02/arizona_bill_would_let_state_nullify_federal_laws_at_will.php?ref=fpc
The proposed bill would create a committee that would decide whether a federal law or executive order was constitutional. In a sense, this committee would replace the Supreme Court, at least in Arizona, as the government entity that interprets the constitution. I doubt that this bill will amount to anything but it reflects the influence of Tea Party activists at the state level. Several states are proposing laws that would give them the authority to reject aspects of federal laws. This kind of activity was the precursor to the Act of Secession that triggered the war between the states. Supreme Court Justice Scalia, who believes that the Constitution should be interpreted according the original intent of our founding fathers, gave a lecture on the Constitution to a congressional group organized by Rep. Michelle Bachman who is closely connected to the Tea Party. He believes that the Supreme Court has the authority to determine the constitutionality of federal law, but his actions encourage the Tea Party crowd because it believes that it understands the original intent of its authors.
The proposed bill would create a committee that would decide whether a federal law or executive order was constitutional. In a sense, this committee would replace the Supreme Court, at least in Arizona, as the government entity that interprets the constitution. I doubt that this bill will amount to anything but it reflects the influence of Tea Party activists at the state level. Several states are proposing laws that would give them the authority to reject aspects of federal laws. This kind of activity was the precursor to the Act of Secession that triggered the war between the states. Supreme Court Justice Scalia, who believes that the Constitution should be interpreted according the original intent of our founding fathers, gave a lecture on the Constitution to a congressional group organized by Rep. Michelle Bachman who is closely connected to the Tea Party. He believes that the Supreme Court has the authority to determine the constitutionality of federal law, but his actions encourage the Tea Party crowd because it believes that it understands the original intent of its authors.
Comments by CEO of Largest Bond Fund
www.nytimes.com/reuters/2011/02/05/business/business-us-fund-greek.html
PIMCO's CEO stated that Greece's debt was unsustainable and that Europe should absorb its debt to bring it to 90% of its GDP. He believes that the current rescue plan, which imposes severe fiscal austerity, would curtail growth and cause political unrest. Greece needs to grow its way out of its fiscal mess. He also said that PIMCO is not buying Irish, Portuguese or Greek debt.
He also stated that the US was exporting inflation to the rest of the world with its expansive fiscal and monetary policies. The US needs to adjust itself to a long period of slow growth and high unemployment in response to a changing word economic order. His comments echo those of many critics of US economic policy in Europe and Asia.
PIMCO's CEO stated that Greece's debt was unsustainable and that Europe should absorb its debt to bring it to 90% of its GDP. He believes that the current rescue plan, which imposes severe fiscal austerity, would curtail growth and cause political unrest. Greece needs to grow its way out of its fiscal mess. He also said that PIMCO is not buying Irish, Portuguese or Greek debt.
He also stated that the US was exporting inflation to the rest of the world with its expansive fiscal and monetary policies. The US needs to adjust itself to a long period of slow growth and high unemployment in response to a changing word economic order. His comments echo those of many critics of US economic policy in Europe and Asia.
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