March 15, 2013

Supreme Court To Decide Whether Lawsuits Require Harm

WASHINGTON (Reuters) – In a dispute pitting big business against consumer groups, the Supreme Court hears arguments Monday on whether a person has to suffer legal harm to sue a company over an alleged kickback it got.

Cleveland home buyer Denise Edwards sued her title insurance company under a 1974 federal real estate settlement law that bars kickbacks and certain referral fee arrangements.

At issue is whether Edwards has the legal right to sue, even though she does not claim the alleged kickback affected the price, quality or any other aspects of her real estate settlement service.

Edwards paid First American Financial Corp $455 for title insurance as part of a home purchase in 2006 while the seller paid an additional $273.

She alleges that First American had an arrangement with her Ohio settlement agency to refer title insurance business exclusively to First American — the alleged kickback.

Her attorneys argued that Congress in adopting the 1974 law created a sufficient basis for her to sue and that courts have long recognized an individual’s interest to receive services free of kickbacks or other conflicts of interest.

Edwards has the support of 11 states, the National Consumers League and the consumer advocacy organization Public Citizen.

Backing the title company are organizations representing home builders, title insurance companies, mortgage bankers, Realtor and the U.S. Chamber of Commerce.

BROAD OR NARROW?

Kevin Walsh, a University of Richmond assistant law professor, said the arguments could provide clues on whether the justices are likely to rule broadly or narrowly.

“A broad ruling could either vindicate or constrict statutory damages provisions in laws designed to protect information privacy, to regulate debt collection and to set standards for credit reporting,” he said, citing some other laws that could be affected.

A narrow ruling based on the history of legal regulation of conflicts of interest would not necessarily affect other laws, he said.

The Supreme Court agreed to hear the case after conflicting rulings by U.S. appeals courts on the issue.

Celeste Hammond, director of the Center for Real Estate Law at the John Marshall Law School in Chicago, said in a written preview of the case for the American Bar Association that both sides viewed the dispute as significant for two reasons.

The first is whether an individual home buyer has the legal right or standing to sue for three times the charges paid for settlement services without alleging specific injury, she said.

Second, if Edwards can sue, then the case goes back to lower courts in California to determine if it can proceed as a class action, she said. The Supreme Court is not considering the class-action issue.

The Supreme Court case is First American Financial Corp v. Edwards, No. 10-708.

(Reporting by James Vicini, Editing by Howard Goller)

Source: https://www.rawstory.com/rs/2011/11/26/supreme-court-to-decide-whether-lawsuits-require-harm

Lawyer Suggests Strauss-Kahn Was Victim Of Political Plot

Disgraced ex-IMF head Dominique Strauss-Kahn’s lawyer on Friday suggested that a political plot could have been behind sex assault charges that brought down his client.

Washington attorney William Taylor referred to an upcoming investigative article in the New York Review of Books as evidence that the then powerful French politician may have been derailed, just as he was preparing to run against French President Nicolas Sarkozy.

“We cannot now exclude the likelihood that Dominique Strauss-Kahn was the target of a deliberate effort to destroy him as a political force,” Taylor said in a statement.

The article, an advanced copy of which was provided to AFP, analyzes key card data and other records from the New York Sofitel where Strauss-Kahn was staying when he allegedly sexually assaulted a room maid on May 14.

The article, due to be published on Saturday, notably questions whether a missing BlackBerry phone had been hacked by Strauss-Kahn’s political rivals.

It quotes unnamed sources close to Strauss-Kahn saying that he had been warned in a text message the day of his arrest that an email he’d sent to his wife from the BlackBerry had been read at the offices of Sarkozy’s UMP party in Paris.

The article also reports that a security camera caught the hotel’s head engineer, Brian Yearwood, high-fiving another man and appearing to dance in celebration, near to the maid, as she awaited the arrival of police.

Assault charges were dropped against Strauss-Kahn after prosecutors said that the maid, Nafissatou Diallo, had lied about details of her allegations, although evidence showed that some sort of hurried sexual encounter did occur.

While Strauss-Kahn left the United States a free man, he had to resign as head of the International Monetary Fund, his high-flying political career was in tatters, and he has since faced new allegations of sexual misconduct in France.

Taylor said the article by investigative journalist Edward Jay Epstein poses “serious questions concerning behavior of officials” at Sofitel and at its parent Accor Group.

“We call upon both to come forward with a full explanation of the questions Mr Epstein raises,” Taylor said.

The hotel’s media office did not respond immediately to a request for comment. The New York Review of Books could not be reached for confirmation about the contents of the article.

A lawyer for the maid, who has launched a civil suit against Strauss-Kahn in New York, quickly responded.

“It is beyond preposterous and irresponsible to say that Ms Diallo is part of some governmental conspiracy to set up DSK,” Douglas Wigdor said.

Source: https://www.rawstory.com/rs/2011/11/26/lawyer-suggests-strauss-kahn-was-victim-of-political-plot

Not Hiring Until Obama Is Gone Is A Symptom Of Broader GOP Ignorance

There are occasions that the level of ignorance some people exhibit should cause Americans to be ashamed to live in this country. Republicans have perpetuated a lie that America’s economic malaise is solely the fault of the Obama Administration and their solution is to return to the Bush-Republican policies of deregulation, tax cuts for the wealthy, and allegiance to Wall Street’s financial corporate agenda that sent the economy perilously close to total collapse. One businessman’s ignorance epitomizes why economic pain and suffering caused by Republican policies continues and why it should engender ire in all Americans.

Last Monday, a photo of a sign posted on a Georgia man’s company trucks went viral on the Internet, and it exemplified ignorance, vindictiveness, and contempt typical of Republican economic policies that many Americans support. The sign read, New Company Policy: We are not hiring until Obama is gone.” The company owner, Bill Looman, said his message was not political, but representative of his belief that he cannot hire anyone because of the economy; he blames President Obama. In an interview Looman said, “The way the economy’s running, and the way my business has been hampered by the economy, and the policies of the people in power, I felt that it was necessary to voice my opinion, and predict that I wouldn’t be able to do any hiring.” Apparently, Looman subscribes to Republican rhetoric as a matter-of-course and is ignorant of why the economy is stagnate.

Without going into the stupidity inherent in Republican economic policies and to avoid portraying men like Looman as cognitively deficient conservative sycophants, there are a couple of points to make on why Looman is wrong and why the Obama Administration’s jobs plan would benefit moronic dolts like the Georgia business owner.

Looman’s business is U.S. Cranes, LLC., and he said, Can’t afford it. I’ve got people that I want to hire now, but I just can’t afford it. And I don’t foresee that I’ll be able to afford it unless some things change in D.C.” The President’s jobs plan called for a tiny tax increase on millionaires and billionaires to fund infrastructure improvements that Looman would certainly have benefited from, but Republicans blocked job creation because of their policy of not increasing taxes for the richest 1% of Americans. Looman must suffer from amnesia besides being stupid, because the economic scene was created during the Bush years mainly through deregulation of the financial industry as well as the wealthy’s tax cuts. The economic crash of 2007-2008 was well underway before Obama was elected, and the only recovery since then was the Obama stimulus that saved the auto industry and put millions of Americans back to work.

Republicans claim the economy is not booming because taxes are too high and regulations are burdensome to business, but surveys and polls show that business owners claim it is lack of consumer spending that prevents them from hiring. In fact, taxes are at their lowest rates in sixty years and environmental regulations passed during President Obama’s first two years have not yet come into effect. Looman said unless things change in Washington, he cannot foresee being able to afford to hire new employees. Does he seriously believe that giving the wealthy and corporations more tax cuts will encourage Americans who are losing their jobs, buying power, and their homes to begin spending money they do not have? Either Mr. Looman is a fool, or he has bought into the Republican lies that began during the Reagan administration and have finally borne the fruit conservatives planned thirty years ago.

The changes Republicans have in store if they win the White House and Congress will further enrich the wealthy and remove the last vestiges of the middle class that drive the economy, but the foolish Looman thinks GOP economic plans will drive consumer spending and fill his coffers with untold wealth and treasure. Looman should keep in mind that America has tried the Republican economic disaster for ten years and except for Obama’s stimulus, there has been a steady decline in income and spending for the sector that drives the economy; the middle class. Willard Romney’s grand economic scheme is giving $6.7 trillion in tax cuts to the wealthiest Americans who have not shown any interest in creating jobs…in America.

The other point is; who is Looman punishing by not hiring new employees? Obviously, he follows the lead of vile Republicans who are hell-bent on sending more Americans into poverty to protect the wealthy and corporations. A change in Washington will finally send the economy into depression that Republicans have worked tirelessly to achieve for the past two-and-a-half years and unless Looman is part of the 1%, he will lose his business to the policies he supports. It is possible that Looman is just an ignorant dolt who regurgitates Republican and Koch brothers’ rhetoric, because he did not articulate how or why President Obama has caused slow economic growth. Whatever Looman’s reasons for blaming the economy on President Obama, they are wrong. It is still unbelievable that a company that operates cranes used in infrastructure projects blames his business’s slowdown on the President who has tried to put Americans to work rebuilding the crumbling infrastructure.

It is impossible to feel anything other than abject contempt for men, like Looman, who blindly follow Republican talking points as if they are the word of god. Reality and economic experts have verified over and over again that the economy is in shambles because of Bush-Republican policies of financial deregulation and tax cuts for the rich. It is unlikely that Looman and his ilk will ever achieve a level of economic understanding of why the economy is making a slow recovery, and it is further proof that many conservative business owners are just as stupid and contemptible as the Republicans who caused the economic disaster in the first place.

Mr. Looman is entitled to his opinion, but he is not entitled to perpetuate lies and misinformation he gleaned from the Heritage Foundation and the RNC. The message Looman is really spreading is that he is a foolish moron without the slightest hint of economic understanding and almost certainly a Republican sycophant. Like nearly all Republicans, instead of thinking or observing for himself, Looman depends on other ignoramuses to do his thinking and it informs why conservatives repeat the same economic errors at their own peril and are the reason economic recovery cannot proceed. If the change he desires comes to pass, Looman’s business will come to a screeching halt and he will have no-one to blame but himself and his inability to think or remember that Republicans crashed the economy between 2001 and 2008; eight years before President Obama took the oath of office.

Source: https://www.politicususa.com/en/not-hiring-obama-gone

A Philosopher’s Mission to Save the EU

Jürgen Habermas is angry. He’s really angry. He is nothing short of furious — because he takes it all personally.

He leans forward. He leans backward. He arranges his fidgety hands to illustrate his tirades before allowing them to fall back to his lap. He bangs on the table and yells: “Enough already!” He simply has no desire to see Europe consigned to the dustbin of world history.

“I’m speaking here as a citizen,” he says. “I would rather be sitting back home at my desk, believe me. But this is too important. Everyone has to understand that we have critical decisions facing us. That’s why I’m so involved in this debate. The European project can no longer continue in elite modus.”

Enough already! Europe is his project. It is the project of his generation.

Jürgen Habermas, 82, wants to get the word out. He’s sitting on stage at the Goethe Institute in Paris. Next to him sits a good-natured professor who asks six or seven questions in just under two hours — answers that take fewer than 15 minutes are not Habermas’ style.

Usually he says clever things like: “In this crisis, functional and systematic imperatives collide” — referring to sovereign debts and the pressure of the markets.

Sometimes he shakes his head in consternation and says: “It’s simply unacceptable, simply unacceptable” — referring to the EU diktat and Greece’s loss of national sovereignty.

‘No Convictions’

And then he’s really angry again: “I condemn the political parties. Our politicians have long been incapable of aspiring to anything whatsoever other than being re-elected. They have no political substance whatsoever, no convictions.”

It’s in the nature of this crisis that philosophy and bar-room politics occasionally find themselves on an equal footing.

It’s also in the nature of this crisis that too many people say too much, and we could definitely use someone who approaches the problems systematically, as Habermas has done in his just published book.

But above all, it is in the nature of this crisis that the longer it continues, the more confusing it gets. It becomes more difficult to follow its twists and turns and to see who is responsible for what. And the whole time, alternatives are disappearing before our very eyes.

That’s why Habermas is so angry: with the politicians, the “functional elite” and the media. “Are you from the press?” he asks a man in the audience who has posed a question. “No? Too bad.”

Habermas wants to get his message out. That’s why he’s sitting here. That’s why he recently wrote an article in the Frankfurter Allgemeine newspaper, in which he accused EU politicians of cynicism and “turning their backs on the European ideals.” That’s why he has just written a book — a “booklet,” as he calls it — which the respected German weekly Die Zeit promptly compared with Immanuel Kant’s 1795 essay “Perpetual Peace: A Philosophical Sketch.”

But does he have an answer to the question of which road democracy and capitalism should take?

A Quiet Coup d’État

“Zur Verfassung Europas” (“On Europe’s Constitution”) is the name of his new book, which is basically a long essay in which he describes how the essence of our democracy has changed under the pressure of the crisis and the frenzy of the markets. Habermas says that power has slipped from the hands of the people and shifted to bodies of questionable democratic legitimacy, such as the European Council. Basically, he suggests, the technocrats have long since staged a quiet coup d’état.

On July 22, 2011, (German Chancellor) Angela Merkel and (French President) Nicolas Sarkozy agreed to a vague compromise — which is certainly open to interpretation — between German economic liberalism and French etatism,” he writes. “All signs indicate that they would both like to transform the executive federalism enshrined in the Lisbon Treaty into an intergovernmental supremacy of the European Council that runs contrary to the spirit of the agreement.

Habermas refers to the system that Merkel and Sarkozy have established during the crisis as a “post-democracy.” The European Parliament barely has any influence. The European Commission has “an odd, suspended position,” without really being responsible for what it does. Most importantly, however, he points to the European Council, which was given a central role in the Lisbon Treaty — one that Habermas views as an “anomaly.” He sees the Council as a “governmental body that engages in politics without being authorized to do so.”

He sees a Europe in which states are driven by the markets, in which the EU exerts massive influence on the formation of new governments in Italy and Greece, and in which what he so passionately defends and loves about Europe has been simply turned on its head.

A Rare Phenomenon

At this point, it should be mentioned that Habermas is no malcontent, no pessimist, no prophet of doom — he’s a virtually unshakable optimist, and this is what makes him such a rare phenomenon in Germany.

His problem as a philosopher has always been that he appears a bit humdrum because, despite all the big words, he is basically rather intelligible. He took his cultivated rage from Marx, his keen view of modernity from Freud and his clarity from the American pragmatists. He has always been a friendly elucidator, a rationalist and an anti-romanticist.

Nevertheless, his previous books “Structural Transformation of the Public Sphere” and “Between Facts and Norms” were of course somewhat different than the merry post-modern shadow-boxing of French philosophers like Jacques Derrida and Jean Baudrillard. What’s more, another of Habermas’ publications, “Theory of Communicative Action,” certainly has its pitfalls when it comes to his theory of “coercion-free discourse” which, even before the invention of Facebook and Twitter, were fairly bold, if not perhaps naïve.

Habermas was never a knife thrower like the Slovenian thinker Slavoj Žižek, and he was no juggler like the German philosopher Peter Sloterdijk. He never put on a circus act, and he was always a leftist (although there are those who would disagree). He was on the side of the student movement until things got too hot for him. He took delight in the constitution and procedural matters. This also basically remains his position today.

Habermas truly believes in the rationality of the people. He truly believes in the old, ordered democracy. He truly believes in a public sphere that serves to make things better.

Part 2: A Vision of Europe at the Crossroads

This also explains why he gazed happily at the audience on this mid-November evening in Paris. Habermas is a fairly tall, lanky man. As he stepped onto the stage, his relaxed gait gave him a slightly casual air. With his legs stretched out under the table, he seemed at home. Whether he’s at a desk or not, this is his profession: communicating and exchanging ideas in public.

He was always there when it was a question of putting Germany back on course, in other words, on his course — toward the West, on the path of reason: during the vitriolic debate among German historians in 1986 that focused on the country’s approach to its World War II past; following German reunification in 1990; and during the Iraq War. It’s the same story today as he sits here, at a table, in a closed room in the basement of the Goethe Institute, and speaks to an audience of 200 to 250 concerned, well-educated citizens. He says that he, the theorist of the public sphere, doesn’t have a clue about Facebook and Twitter — a statement which, of course, seems somewhat antiquated, almost even absurd. Habermas believes in the power of words and the rationality of discourse. This is philosophy unplugged.

While the activists of the Occupy movement refuse to formulate even a single clear demand, Habermas spells out precisely why he sees Europe as a project for civilization that must not be allowed to fail, and why the “global community” is not only feasible, but also necessary to reconcile democracy with capitalism. Otherwise, as he puts it, we run the risk of a kind of permanent state of emergency — otherwise the countries will simply be driven by the markets. “Italy Races to Install Monti” was a headline in last week’s Financial Times Europe.

On the other hand, they are not so far apart after all, the live-stream revolutionaries from Occupy and the book-writing philosopher. It’s basically a division of labor — between analog and digital, between debate and action. It’s a playing field where everyone has his or her place, and it’s not always clear who are the good guys and who are the bad guys. We are currently watching the rules being rewritten and the roles being redefined.

A Dismantling of Democracy

“Sometime after 2008,” says Habermas over a glass of white wine after the debate, “I understood that the process of expansion, integration and democratization doesn’t automatically move forward of its own accord, that it’s reversible, that for the first time in the history of the EU, we are actually experiencing a dismantling of democracy. I didn’t think this was possible. We’ve reached a crossroads.”

It also has to be said: For being Germany’s most important philosopher, he is a mind-bogglingly patient man. He is initially delighted that he has managed at last to find a journalist whom he can tell just how much he abhors the way certain media ingratiate themselves with Merkel — how he detests this opportunist pact with power. But then he graciously praises the media for finally waking up last year and treating Europe in a manner that clearly demonstrates the extent of the problem.

“The political elite have actually no interest in explaining to the people that important decisions are made in Strasbourg; they are only afraid of losing their own power,” he says, before being accosted by a woman who is not entirely in possession of her faculties. But that’s how it is at such events — that’s how things go with coercion-free discourse. “I don’t fully understand the normative consequences of the question,” says Habermas. The response keeps the woman halfway at a distance.

He is, after all, a gentleman from an age when having an eloquent command of the language still meant something and men carried cloth handkerchiefs. He is a child of the war and perseveres, even when it seems like he’s about to keel over. This is important to understanding why he takes the topic of Europe so personally. It has to do with the evil Germany of yesteryear and the good Europe of tomorrow, with the transformation of past to future, with a continent that was once torn apart by guilt — and is now torn apart by debt.

Without Complaint

In the past, there were enemies; today, there are markets — that’s how the historical situation could be described that Habermas sees before him. He is standing in an overcrowded, overheated auditorium of the Université Paris Descartes, two days before the evening at the Goethe Institute, and he is speaking to students who look like they would rather establish capitalism in Brussels or Beijing than spend the night in an Occupy movement tent.

After Habermas enters the hall, he immediately rearranges the seating on the stage and the nametags on the tables. Then the microphone won’t work, which seems to be an element of communicative action in practice. Next, a professor gives a windy introduction, apparently part of the academic ritual in France.

Habermas accepts all this without complaint. He steps up to the lectern and explains the mistakes that were made in constructing the EU. He speaks of a lack of political union and of “embedded capitalism,” a term he uses to describe a market economy controlled by politics. He makes the amorphous entity Brussels tangible in its contradictions, and points to the fact that the decisions of the European Council, which permeate our everyday life, basically have no legal, legitimate basis. He also speaks, though, of the opportunity that lies in the Lisbon Treaty of creating a union that is more democratic and politically effective. This can also emerge from the crisis, says Habermas. He is, after all, an optimist.

Then he’s overwhelmed by the first wave of fatigue. He has to sit down. The air is stuffy, and it briefly seems as if he won’t be able to continue with his presentation. After a glass of water, he stands up again.

He rails against “political defeatism” and begins the process of building a positive vision for Europe from the rubble of his analysis. He sketches the nation-state as a place in which the rights of the citizens are best protected, and how this notion could be implemented on a European level.

Reduced to Spectators

He says that states have no rights, “only people have rights,” and then he takes the final step and brings the peoples of Europe and the citizens of Europe into position — they are the actual historical actors in his eyes, not the states, not the governments. It is the citizens who, in the current manner that politics are done, have been reduced to spectators.

His vision is as follows: “The citizens of each individual country, who until now have had to accept how responsibilities have been reassigned across sovereign borders, could as European citizens bring their democratic influence to bear on the governments that are currently acting within a constitutional gray area.”

This is Habermas’s main point and what has been missing from the vision of Europe: a formula for what is wrong with the current construction. He doesn’t see the EU as a commonwealth of states or as a federation but, rather, as something new. It is a legal construct that the peoples of Europe have agreed upon in concert with the citizens of Europe — we with ourselves, in other words — in a dual form and omitting each respective government. This naturally removes Merkel and Sarkozy’s power base, but that’s what he’s aiming for anyway.

Then he’s overwhelmed by a second wave of fatigue. He has to sit down again, and a professor brings him some orange juice. Habermas pulls out his handkerchief. Then he stands up and continues to speak about saving the “biotope of old Europe.”

There is an alternative, he says, there is another way aside from the creeping shift in power that we are currently witnessing. The media “must” help citizens understand the enormous extent to which the EU influences their lives. The politicians “would” certainly understand the enormous pressure that would fall upon them if Europe failed. The EU “should” be democratized.

His presentation is like his book. It is not an indictment, although it certainly does at times have an aggressive tone; it is an analysis of the failure of European politics. Habermas offers no way out, no concrete answer to the question of which road democracy and capitalism should take.

A Vague Future and a Warning from the Past

All he offers is the kind of vision that a constitutional theorist is capable of formulating: The “global community” will have to sort it out. In the midst of the crisis, he still sees “the example of the European Union’s elaborated concept of a constitutional cooperation between citizens and states” as the best way to build the “global community of citizens.”

Habermas is, after all, a pragmatic optimist. He does not say what steps will take us from worse off to better off.

What he ultimately lacks is a convincing narrative. This also ties Habermas once again to the Occupy movement. But without a narrative there is no concept of change.

He receives a standing ovation at the end of his presentation.

“If the European project fails,” he says, “then there is the question of how long it will take to reach the status quo again. Remember the German Revolution of 1848: When it failed, it took us 100 years to regain the same level of democracy as before.”

A vague future and a warning from the past — that’s what Habermas offers us. The present is, at least for the time being, unattainable.

Source: https://www.spiegel.de/international/europe/0,1518,799237,00.html

Black Friday Sales Start With Pepper Spray Stampede

Woman pepper-sprayed her rival bargain-hunters as 152m expected to flock to stores

Shoppers in the US kicked off their annual “Black Friday” orgy of consumerism amid scenes of pushing, pulling, running and – in one case – pepper-spraying their way through the doors of the nation’s shops and malls.

The annual tradition, when many stores open early with cut-price sales on the day after Thanksgiving, has become a source of controversy amid frequent scenes of near-rioting and injuries as mobs of people crowd into big-name shops.

But few can have expected even the most determined of bargain-hunters to adopt the brutal tactics of one female shopper in a Los Angeles suburb who attacked her rivals with pepper-spray: a substance more recently associated with police brutality against Occupy Wall Street protesters.

At least 20 people, including several children, were injured as the woman deployed her weapon. “I heard screaming and I heard yelling. Moments later my throat stung. I was coughing really bad,” said Matthew Lopez, a shopper who recounted his story to the Los Angeles Times.

The woman, whom witnesses said appeared to be defending an X-Box games console, has not been found or yet identified. Perhaps unsurprisingly, the gigantic store remained open amid the mayhem and other shoppers continued to roam the aisles filling their trolleys with goods.

The incident occurred late on Thanksgiving evening as the Walmart – like some other stores – had pushed back its Black Friday opening to begin late on Thursday.

The day gets its name from the idea that the period after Thanksgiving marks the part of the year when many shops finally get in the “black” and start turning a profit for the year.

But America in 2011 is stranded in a moribund economy marked by sluggish growth and a headline jobless rate stuck around 9%. Many retailers have pinned their hopes on a strong shopping season in the run up to Christmas and will be looking pouring through data from Black Friday for signs of increased spending.

Experts expect 152m people to hit the shops over the Black Friday weekend, up 27% on last year, with many retailers hoping for a desperately needed shot-in-the-arm to consumer spending in a still battered economy.

Even Apple, which has until now eschewed a discounting policy, cut its prices for one day on Friday.

Elsewhere in America the queues and rush to get through the doors was a little more steady and less violen than in Los Angeles. There were several shooting incidents, in Florida and in North Carolina, but it was far from clear these were directly linked to Black Friday shopping.

Yet, despite the problems, millions of people queued up outside stores in order to be first inside and snap up some of the bargains on offer on anything from TVs and consumer electronics to fashion and furniture. At Macy’s in New York an estimated 9,000 people waited in the street for a midnight opening.

In recent years, as media coverage of the event has grown and scenes of rioting and stampedes have become more common, Black Friday has drawn its share of criticism.

However, this year, as the Occupy movement has sprung up across the country, shoppers in some parts of America have also been joined by protesters trying to persuade them to put down their bags and go home, or at least avoid large chains and shop smaller and more locally.

Some campaigners called for a boycott of stores by consumers, though judging by the mayhem and huge queues that had little impact. Elsewhere protests were held at stores. At Macy’s in Manhattan a small group of people chanted “Occupy it, don’t buy it” to waiting shoppers.

In places such as Seattle protesters planned to hold rallies outside Walmarts in the city. In the small city of Boise, Idaho, a local Occupy group aimed to dress up as the undead to symbolise “consumer zombies”.

In Iowa “flash mobs” of protesters were set to target malls to try and convince shoppers to stay or away or think more politically about their purchases.

Source: https://www.guardian.co.uk/business/2011/nov/25/black-friday-sales-pepper-spray-stampede

China’s Ghost Cities Fuel Boom-To-Bust Fears

China’s “ghost cities” show that the country’s economic boom could be more fragile than it appears.

Kangbashi is a showcase city, laid out spaciously on the grasslands of northern China.

It was dreamt up by the local secretary of the Communist Party as a monument to the country’s new-found prosperity.

The place is dominated by impressive public buildings - a marble-clad library, a state-of-the-art theatre and a giant convention centre.

In the centre of town a 70m-high statue of two fighting horses looms over Genghis Khan Square.

The only thing missing is the people.

Kangbashi was built to house one million residents, but so far only 20,000 have moved in.

Acres of apartment complexes - many of them luxurious by Chinese standards - are deserted. Store fronts are boarded up.

When they first began building Kangbashi, there was a frenzy of investment. The local government contributed a £200m road network. Nearly all of the homes that now lie empty were sold off-plan.

The buyers were China’s cashed-up new middle class. The country’s poorly-regulated stock markets, along with controls on investing overseas, have made second, third and even fourth homes a popular store of wealth.

But from the very outset, Kangbashi defied all economic logic. There’s no industry in the city, and no real reason to live there.

Now Kangbashi - along with other “ghost cities” dotted around China - has come to symbolise what many believe is a dangerous property bubble that could be primed to pop.

The scale of China’s housing boom is staggering. Over the past five years the country has built nearly 40 million new homes. In some cities the price of housing has tripled in the same period.

Chinese economist Zhang Bin said: “If you look at financial crises, they’re always accompanied by property bubbles.”

“Lower property prices would definitely be more sustainable and healthy, but a sharp drop would mean a big contraction in the economy and problems like unemployment.”

In Kangbashi, many think the bubble has already popped.

Businessman Wang Pen spent his life savings buying a two-bedroom apartment. He says its value has fallen by 20% since the start of the year.

But Mr Wang finds it difficult to believe that the good times will ever stop rolling.

“When I bought this one three years ago I was still poor, so it’s a bit small,” he said.

“Now I’m thinking of getting another place, something bigger.”

If the bubble bursts on a nationwide scale, it could be disastrous, not just for China, but for global economic recovery.

China is now the world’s second-biggest economy , and by some estimates nearly half of its GDP is in some way linked to property.

Alistair Thornton, Beijing-based economist with HIS Global Insight, said: “Property is the core of the Chinese economy.”

“With the eurozone weak and the US stagnant, a sharp contraction in the world’s largest growth engine would have a dramatic effect. It’s not a good story.”

Source: https://uk.news.yahoo.com/ghost-cities-chinas-boom-trouble-035234326.html

Why Iceland Should Be in the News, But Is Not

An Italian radio program’s story about Iceland’s on-going revolution is a stunning example of how little our media tells us about the rest of the world. Americans may remember that at the start of the 2008 financial crisis, Iceland literally went bankrupt. The reasons were mentioned only in passing, and since then, this little-known member of the European Union fell back into oblivion.

As one European country after another fails or risks failing, imperiling the Euro, with repercussions for the entire world, the last thing the powers that be want is for Iceland to become an example. Here’s why:

Five years of a pure neo-liberal regime had made Iceland, (population 320 thousand, no army), one of the richest countries in the world. In 2003 all the country’s banks were privatized, and in an effort to attract foreign investors, they offered on-line banking whose minimal costs allowed them to offer relatively high rates of return. The accounts, called IceSave, attracted many English and Dutch small investors. But as investments grew, so did the banks’ foreign debt. In 2003 Iceland’s debt was equal to 200 times its GNP, but in 2007, it was 900 percent. The 2008 world financial crisis was the coup de grace. The three main Icelandic banks, Landbanki, Kapthing and Glitnir, went belly up and were nationalized, while the Kroner lost 85% of its value with respect to the Euro. At the end of the year Iceland declared bankruptcy.

Contrary to what could be expected, the crisis resulted in Icelanders recovering their sovereign rights, through a process of direct participatory democracy that eventually led to a new Constitution. But only after much pain.

Geir Haarde, the Prime Minister of a Social Democratic coalition government, negotiated a two million one hundred thousand dollar loan, to which the Nordic countries added another two and a half million. But the foreign financial community pressured Iceland to impose drastic measures. The FMI and the European Union wanted to take over its debt, claiming this was the only way for the country to pay back Holland and Great Britain, who had promised to reimburse their citizens.

Protests and riots continued, eventually forcing the government to resign. Elections were brought forward to April 2009, resulting in a left-wing coalition which condemned the neoliberal economic system, but immediately gave in to its demands that Iceland pay off a total of three and a half million Euros. This required each Icelandic citizen to pay 100 Euros a month (or about $130) for fifteen years, at 5.5% interest, to pay off a debt incurred by private parties vis a vis other private parties. It was the straw that broke the reindeer’s back.

What happened next was extraordinary. The belief that citizens had to pay for the mistakes of a financial monopoly, that an entire nation must be taxed to pay off private debts was shattered, transforming the relationship between citizens and their political institutions and eventually driving Iceland’s leaders to the side of their constituents. The Head of State, Olafur Ragnar Grimsson, refused to ratify the law that would have made Iceland’s citizens responsible for its bankers’ debts, and accepted calls for a referendum.

Of course the international community only increased the pressure on Iceland. Great Britain and Holland threatened dire reprisals that would isolate the country. As Icelanders went to vote, foreign bankers threatened to block any aid from the IMF. The British government threatened to freeze Icelander savings and checking accounts. As Grimsson said: “We were told that if we refused the international community’s conditions, we would become the Cuba of the North. But if we had accepted, we would have become the Haiti of the North.” (How many times have I written that when Cubans see the dire state of their neighbor, Haiti, they count themselves lucky.)

In the March 2010 referendum, 93% voted against repayment of the debt. The IMF immediately froze its loan. But the revolution (though not televised in the United States), would not be intimidated. With the support of a furious citizenry, the government launched civil and penal investigations into those responsible for the financial crisis. Interpol put out an international arrest warrant for the ex-president of Kaupthing, Sigurdur Einarsson, as the other bankers implicated in the crash fled the country.

But Icelanders didn’t stop there: they decided to draft a new constitution that would free the country from the exaggerated power of international finance and virtual money. (The one in use had been written when Iceland gained its independence from Denmark, in 1918, the only difference with the Danish constitution being that the word ‘president’ replaced the word ‘king’.)

To write the new constitution, the people of Iceland elected twenty-five citizens from among 522 adults not belonging to any political party but recommended by at least thirty citizens. This document was not the work of a handful of politicians, but was written on the internet. The constituent’s meetings are streamed on-line, and citizens can send their comments and suggestions, witnessing the document as it takes shape. The constitution that eventually emerges from this participatory democratic process will be submitted to parliament for approval after the next elections.

Some readers will remember that Iceland’s ninth century agrarian collapse was featured in Jared Diamond’s book by the same name. Today, that country is recovering from its financial collapse in ways just the opposite of those generally considered unavoidable, as confirmed yesterday by the new head of the IMF, Christine Lagarde to Fareed Zakaria. The people of Greece have been told that the privatization of their public sector is the only solution. And those of Italy, Spain and Portugal are facing the same threat.

They should look to Iceland. Refusing to bow to foreign interests, that small country stated loud and clear that the people are sovereign.

That’s why it is not in the news anymore.

Deena Stryker is an American writer that has lived in six different countries, is fluent in four languages and a published writer in three. She looks at the big picture from a systems and spiritual point of view. SACSIS

Source:

https://www.fedupusa.org/2011/11/why-iceland-should-be-in-the-news-but-is-not/

650,000 Americans Joined Credit Unions Last Month - More Than in All of 2010 Combined

One of the tactics the 99 Percenters are using to take back the country from the 1 percent is to move their money from big banks to credit unions, community banks, and other smaller financial unions that aren’t gambling with our nation’s future.

Now, the Credit Union National Association (CUNA) reports that a whopping 650,000 Americans have joined credit unions since Sept. 29 — the date that Bank of America announced it would start charging a $5 monthly debit fee, a move it backed down on this week.

To put that in perspective, there were only 600,000 new members for credit unions in all of 2010. “These results indicate that consumers are clearly making a smarter choice by moving to credit unions where, on average, they will save about $70 a year in fewer or no fees, lower rates on loans and higher return on savings,” said CUNA President Bill Cheney.

This Saturday, 99 Percenters are calling on Americans to move their money from big banks to credit unions and community banks on what is being called “Bank Transfer Day.” If you want to stand with the 99 Percent and take part in this action, use the Move Your Money project’s community bank and credit union finder tool to find out how. (HT: @blogdiva)

Source:

https://thinkprogress.org/special/2011/11/03/360804/650000-americans-credit-unions/

Worldwide Downturn in Employment, Social Unrest

The International Labour Organization, an agency of the United Nations, released a report Monday pointing to a disastrous global jobs situation and a “vicious cycle” sending the world economy into a new downturn.

“The next few months will be crucial for avoiding a dramatic downturn in employment and a further significant aggravation of social unrest,” warns the opening editorial to the World of Work report, released ahead of a G20 meeting later this week.

In addition to documenting the employment situation, affecting both advanced and “developing” countries, the reports presents a damning portrait of contemporary world capitalism: growing financialization, declining taxes on the wealthy and corporations, and a collapse in the share of income going to the working class.

Three years after the crash of 2008, “economic growth in major advanced economies has come to a halt and some countries have re-entered recession, notably in Europe,” the ILO notes. “Growth has also slowed down in large emerging and developing countries.”

The vast majority of countries categorized as having advanced economies—mainly in the United States and Europe—have seen a slowdown in employment growth in the most recent quarter, and more than half have seen employment declines. At the same time, about half of those countries categorized as “emerging or developing” have seen declines in employment, including Russia and Mexico.

The advanced economies have 13 million fewer jobs today than in 2007, with the United States (6.7 million) and Spain (2.3 million) accounting for more than half of this figure. Due to the growth in the labor force, to restore pre-crisis employment rates, 27 million jobs would have to be added in advanced countries, and 80 million globally, over the next two years.

The jobs situation is particularly bleak for young people, and this holds true in almost all parts of the world. “Among countries with recently available data, more than one in five youth [aged 15-24], i.e. 20 per cent, were unemployed as of the first quarter of 2011—against total unemployment of 9.6 per cent.”

According to the ILO’s projections, which are predicated on the assumption that there will not be renewed decline in global growth, the global employment rate in advanced countries is not expected to return to pre-crisis levels until far past 2016.

The prospects of a recovery in employment and economic growth are undermined by a number of factors, including a renewed financial crisis in Europe and a turn by governments throughout the world to fiscal austerity. Sharply declining wages for workers, particularly in advanced countries, is leading to a fall-off in consumption.

“In short,” the ILO writes, “there is a vicious cycle of a weaker economy affecting jobs and society, in turn depressing real investment and consumption, thus the economy and so on.”

Any prospect of a return to growth is also undermined by increasingly bitter national conflicts between the different capitalist powers. “While in 2008-2009 there was an attempt to coordinate policies, especially among G20 countries, there is evidence that countries are now acting in isolation,” the report states.

The ILO expresses the hope that governments will institute job-creation programs to resolve the crisis. However, the impossibility of this happening is highlighted by the fact that the report cites the United States as the only major advanced country to advance a “national jobs plan.” In fact, the Obama administration’s proposal, even if enacted in full, would be no more than a drop in the bucket. Since it was announced in September, it has already been scaled down significantly. Whatever is passed will consist largely of tax cuts for corporations.

The economic crisis is, predictably, producing a sharp increase in social discontent. The year 2011 has already seen a significant growth of the class struggle, beginning with the revolutionary upheavals in the Middle East and North Africa. They have since expanded to Europe, Latin America, and the United States, including in the Occupy Wall Street movement that began in September.

According to a metric of “social unrest” based on various indicators, including unemployment, the ILO calculates that 40 percent of the countries surveyed have seen a significant increase in the prospect of unrest. The likelihood of social unrest has increased particularly sharply in advanced countries. Moreover, the majority of countries worldwide reported a collapse of public confidence in national governments.

Dissatisfaction over the availability of quality jobs is over 80 percent in sub-Saharan Africa and over 70 percent in Central and Eastern Europe. It is over 60 percent in the Middle East and North Africa, though significantly higher in some countries, including Egypt.

Anger over the jobs situation is higher than 70 percent in Greece, Italy, Portugal and Spain—countries that are currently at the center of the European-wide drive to slash social programs and eliminate all previous gains of the working class.

The financialization of the world economy

Global social conditions have deteriorated sharply since the Crash of 2008, precipitated by the collapse of a massive speculative bubble inflated over the previous decade. While the fall of global stock markets led to an immediate decline in the wealth of the financial aristocracy, the actions of governments, led by the United States, have served to quickly reverse this trend.

In addition to documenting global labor conditions, the ILO report includes some important data on the financialization of the world economy, and the parallel process of wealth transfer—both before and after the 2008 crash.

It notes, disapprovingly, that in the aftermath of the crash “countries have increasingly focused on appeasing financial markets” rather than restoring employment, and that this “has often centered on fiscal austerity and how to help the banks—without necessarily reforming the bank practices that led to the crisis, or providing a vision for how the real economy will recover.”

In 2008, the capital share among financial corporations worldwide fell by more than 25 percent, after a decade of steady growth. Only a year later, however, shares were back to pre-crisis levels, a direct product of the various bank bailout schemes.

“On the other hand,” the ILO noted, “the decline in the non-financial sector has been more gradual, but capital shares for this group—which account for 87 percent of employment in advanced countries—continue to decline.”

This has produced what the report refers to as a “paradox”: “The impact of the global economic crisis of 2007-08 on the financial sector was short-lived initially—despite it being at the very origin of the downturn.”

The growth of corporate profits since the crash have accrued largely to financial corporations. Non-financial corporations, moreover, instead of investing have funneled money into the stock market. “In 2009, more than 36 per cent of profits were distributed in terms of dividends, compared with less than 35 per cent in 2007 and less than 29 per cent in 2000…”

This process of financialization is part of a longer-term trend, in which wealth accumulation through speculation has increasingly replaced productive investment. Far from reversing this trend, the economic crisis has only exacerbated it.

At the same time, an ever smaller share of income has gone to the working class. According to the ILO, “the wage share—the share of domestic income that goes to labor—has declined in almost three quarters of the 69 countries for which data is available.” This is also a long-term trend.

In addition to direct infusions of money into the banks, the transfer of wealth to the corporate and financial aristocracy has been facilitated by a tax policy that places an ever greater share of the tax burden on the working class.

Between 2000 and 2008, 43 percent of countries decreased their top income tax rate, while 70 percent of countries decreased their corporate profit tax rate. During the same period, 30 percent of countries increased value added taxes or consumption taxes, which disproportionately target the working class.

Overall, the top personal income tax rate globally fell from 31.4 percent in 2003 to 29.1 percent in 2009. Corporate taxes have fallen from 29.5 percent to 25 percent in the same period.

Again, this trend has only continued since the 2008 crisis. The proportion of government revenue from regressive consumption taxes has increased, while the income and corporate taxes have declined.

The ILO’s policy recommendations, on the other hand, are both grossly insufficient and utterly incapable of realization within the framework of capitalism. In addition to a jobs program, it hopes that governments will cooperate to increase the share of income going to the workers, while placing greater constraints on the financial system.

What the report in fact demonstrates, however, is that any attempt to resolve the crisis in the interests of the working class runs into direct conflict with the capitalist system and the financial aristocracy that controls it.

Source:

Joseph Kishore is a staff writer for WSWS.org

https://www.globalresearch.ca/index.php?context=va&aid=27406

American Taxpayers’ Money Is Being Used By Our Government To Put Americans Out Of Work

America, you’re being destroyed from within. And you don’t even know it. If you want to know why you lost your job, you better pay attention to what OUR government is doing to you… but not just to the poor American who is now unemployed, you Americans working are FUNDING the literal destruction of your fellow Americans’ jobs. If you’re paying Medicare taxes (and all of us who are working are doing that), then you are directly kicking a fellow American out of his job. How the hell can this be? Well…

Medicare and Medicaid money have been used to outsource American jobs, and US workers say they were fired and discriminated against by a healthcare insurance company funded solely by federal funds, according to a suit filed in Los Angeles Superior Court.

“By way of Molina, several billion of US taxpayer’s dollars have gone directly to India without any benefit to the American company or the US taxpayer,” the suit states.

The suit, filed on behalf of more than 50 employees, alleges Molina Healthcare Inc. used federal money, defrauded the federal government, failed to pay overtime, discriminated, terminated and violated numerous federal and state labor codes. Molina collected over $9 billion in federal funds in the last three years, the suit states.

‘Since 2006, Molina has spent a large portion of the taxpayer’s money to fire American workers and to hire an abundance of workers brought in from India.

The suit further claims:

… in or around 2007 and 2008, Molina terminated approximately 100 American workers in various states to make room for 100 laborers from India to handle all Molina’s US business operations involving Medicare and Medicaid claims… Molina then billed the US government for the cost it incurred by importing workers from India.

The suit, filed in Los Angeles Superior, alleges Molina used a H1-B visas to bring the workers into the US. “This case is not about illegal or undocumented workers,” the suit states.

To bring in workers from India, the suit alleges Molina used a Cognizant Technology Solutions, a California-based recruiting company, and further claims Cognizant “had to provide false statements to the federal government because Cognizant had to certify there were ‘no qualified United States citizens.” On Jan. 13, 2010, the US Dept. of Labor approved Cognizant’s application for 40 H1-B visa holders from India to work for Molina, in the middle of a recession when many American workers were seeking jobs.

Cognizant imports H1-B employees almost exclusively for India and leases said employees to United States employers… Cognizant has received billions of dollars through it’s business practices… and has displaced millions of of competent US workers from their jobs.

“The recession in the United States made it a virtual certainty that there were US workers available,” the claim states. They were hired at $50,000 a year without benefits. To file the federal government claim, Cognizant certified that it searched and could find no qualified American applicants (or green card holders) to fill job openings for programmers and security analysts for the same pay.

On Jan. 14, the day after the application was approved by the Labor Department, Molina fired 40 workers – programmers, managers and security analysts, the suit states. Most fired employees earned between $75,000 and $100,000 a year with benefits. Employees listed in the lawsuit also claim the Indian managers allowed the celebration of India’s holidays, but not US holidays and “actively discouraged US workers from celebrating US holidays and traditions,” such as Fourth of July, Thanksgiving and Christmas, by assigning mandatory work that required working holidays.

The suit seeks unspecified damages against Cognizant, Molina and several Indian managers.

Your government is intentionally destroying American jobs to enrich certain preferential corporations and using taxpayer money to do so. Are you beginning to understand WHO the criminals are? And just to be clear, the politicians involved are both Republican and Democrat.

Source:
https://www.fedupusa.org/2011/10/american-taxpayers-money-is-being-used-by-our-government-to-put-americans-out-of-work/