Category Archives: Politics

Hillary Clinton and Trade Deals: That “Giant Sucking Sound”

By Lambert Strether of Corrente. In the 1992 Presidential campaign, Ross Perot famously said in debate: We have got to stop sending jobs overseas. It’s pretty simple: If you’re paying $12, $13, $14 an hour for factory workers and you can move your factory South of the border, pay a dollar an hour for labor,…have […]

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RI Treasurer Justifies Hedge Fund Secrecy With Need to “Minimize Attention” Re Pay, Protect Them From Poaching

Remember the infamous moment in The Untouchables, the PBS documentary on the failure to prosecute major financial firms for blowing the global economy, when assistant Attorney General Lanny Breuer made it clear that he was more worried about harm to banks than harm to the public? Rhode Island is updating Breuer’s playbook.

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New York Fed Worried About Gambling in Casablanca, Um, Ethics Problem at Big Banks

This story would be funny if it weren’t so pathetic. Yesterday, the Financial Times reported that the New York Fed woke up out of its usual slumber and realized that the crisis has changed nothing and that banks still are in the business of looting have unaddressed ethics issues.

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More Signs of Doubt in Europe About the Costs of Siding With Ukraine

This week, the US hopes to get the EU to agree to impose so-called tier three sanctions on Russia to punish them for their alleged role in the downing of MH17 and for supporting the rebels in Ukraine. That would include prohibiting investment in Russian equity and debt of Russian banks more than 90 days maturity by European citizens as well as barring EU banks from sourcing funding for them on a regulated market.

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Peter Van Buren: Drone-Killing the Fifth Amendment

Yves here. This post on the Administration’s efforts to justify its official policy of murder by drone shows how due process is dead in America. That may seem a bit far afield of Naked Capitalism’s beat. But the systematic assault on the Constitution is another, even more troubling, manifestation of what we see operating in the financial sphere: that hard-won protections for ordinary citizens are being stripped away, so that those who have access to resources (whether via personal wealth or institutional authority) can operate unfettered, to increase their power and ability to plunder even more.

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South Portland, Maine: The Mouse That Roared on Canadian Tar Sands

Yves here. The article below illustrates how local communities are throwing spanners in the works of various North American energy plays. For instance, New York State’s highest court (confusingly called the Court of Appeals) ruled that towns have the authority to ban fracking via local ordinance, a decision that sent shivers down the spine of natural gas developers.

Another development that is causing some consternation to energy industry incumbents is an ordinance passed by the city council of South Portland, Maine, which put in place new zoning rules that would prohibit the export of Canadian tar sands through the port.

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U.S. Officials: MH17 Missile May Have Been Launched By a “Defector from The Ukrainian Military Who Was Trained To Use Similar Missile Systems”

Yves here. I wanted to add this short post as an indicator of the lack of definitive knowledge (at least among those who are being candid with the media) as to critical details as to how the MH17 was destroyed, in particular ones that would give a definitive reading as to what group pulled the […]

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Tom Engelhardt: Requiem for the American Century – Paragraph by Paragraph

* Seventy-three years ago, on February 17, 1941, as a second devastating global war approached, Henry Luce, the publisher of Time and Life magazines, called on his countrymen to “create the first great American Century.”  Luce died in 1967 at age 69.  Life, the pictorial magazine no home would have been without in my 1950s childhood, ceased to exist as a weekly in 1972 and as a monthly in 2000; Time, which launched his career as a media mogul, is still wobbling on, a shadow of its former self.  No one today could claim that this is Time’s century, or the American Century, or perhaps anyone else’s.  Even the greatest empires now seem to have shortened lifespans.  The Soviet Century, after all, barely lasted seven decades.  Of course, only the rarest among us live to be 100, which means that at 70, like Time, I’m undoubtedly beginning to wobble, too.

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More Challenges to “More ‘Free Trade’ is Always Better” Orthodoxy

One way to induce a Pavlovian reflex in mainstream economists is to invoke the expression “free trade”. Conventional wisdom holds that more trade is always better; only Luddites and protectionists are against it. That’s one big reason why the toxic TransPacific Partnership and its evil twin, the Transatlantic Trade and Investment Partnership, have gotten virtually no critical scrutiny, save from more free-thinking economists like Dean Baker. They have been sold as “free trade” deals and no Serious Economist wants to besmirch his reputation by appearing to be opposed to more liberalized trade.

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Michael Hudson and Leo Panitch on BRICS Development Bank Salvo v. the Dollar

Yves here. I’ve refrained from saying much about the announcement of the plan to establish a $100 billion development bank by the BRICs nations (Brazil, Russia, India, and China) because the hype is ahead of the reality. Yes, it is true that the US has been abusing its role as steward of the reserve currency. QE has been a huge bone of contention in all emerging markets, since hot money has flooded in, while the Fed has, in an insult to the collective intelligence of the leaders of these countries, tried claiming that it has nothing to do with the influx. And they are bracing themselves for the tidal retreat when the Fed starts tightening. The US’ efforts to use sanctions to punish Russia have also focused the minds of these countries.

However, the formation of a development banks falls vastly short of the infrastructure needed for any country’s currency (or a basket of currencies) to displace the dollar.

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