can a monetary system failure be disguised by an intentional systems failure?

politicians lack the will and integrity to tell the truth about the writing on the sea wall...,

Coastal Cities Fail to Prepare for the Rising Tide

npr | According to new research, 3.7 million Americans who live at elevations close to high tide could face more frequent flooding because of the sea rise caused by global warming.

The New York Times reports:

"If the pace of the rise accelerates as much as expected, researchers found, coastal flooding at levels that were once exceedingly rare could become an every-few-years occurrence by the middle of this century.

"By far the most vulnerable state is Florida, the new analysis found, with roughly half of the nation's at-risk population living near the coast on the porous, low-lying limestone shelf that constitutes much of that state. But Louisiana, California, New York and New Jersey are also particularly vulnerable, researchers found, and virtually the entire American coastline is at some degree of risk."

The report issued by Climate Central and titled "Surging Seas" says that since 1880 the sea has risen about 8 inches, but that rate is accelerating.

"Scientists expect 20 to 80 more inches this century, a lot depending upon how much more heat-trapping pollution humanity puts into the sky," the reports executive summary explains.

Essentially what the report found was that for two-thirds of the places it analyzed, the odds of a "century" or worse flood during the next 18 years will double and for half the locations analyzed, the odds triple.

The AP spoke to scientists who were not part of the study:

"Sea level rise experts at the U.S. Geological Survey and the National Oceanic Atmospheric Administration who weren't part of the studies said the results make sense and were done by experts in the field.
"'All low elevation places in the many urban areas along the coast will become more vulnerable, like Boston, New York City, Norfolk (Va.), New Orleans, Charleston (S.C.), Miami, Washington, D.C./Alexandria (Va.),' said S. Jeffress Williams, scientist emeritus for the USGS, who wasn't part of the studies. 'More people and infrastructure will be at increasing risk of flooding.'"

Cimate Central has put together an interactive map that shows you the areas at risk.

failure to address the underlying monetary system reduces all good intentions to conversation...,

back to stuff that matters - 4-D printing...,

foreignaffairs | In May 2010, the richest, most powerful man in biotechnology made a new creature. J. Craig Venter and his private-company team started with DNA and constructed a novel genetic sequence of more than one million coded bits of information known as nucleotides. Seven years earlier, Venter had been the first person in history to make a functioning creature from information. Looking at the strings of letters representing the DNA sequence for a virus called phi X174, which infects bacteria, he thought to himself, “I can assemble real DNA based on that computer information.” And so he did, creating a virus based on the phi X174 genomic code. He followed the same recipe later on to generate the DNA for his larger and more sophisticated creature. Venter and his team figured out how to make an artificial bacterial cell, inserted their man-made DNA genome inside, and watched as the organic life form they had synthesized moved, ate, breathed, and replicated itself.

As he was doing this, Venter tried to warn a largely oblivious humanity about what was coming. He cautioned in a 2009 interview, for example, that “we think once we do activate a genome that yes, it probably will impact people’s thinking about life.” Venter defined his new technology as “synthetic genomics,” which would “start in the computer in the digital world from digitized biology and make new DNA constructs for very specific purposes. . . . It can mean that as we learn the rules of life we will be able to develop robotics and computational systems that are self-learning systems.” “It’s the beginning of the new era of very rapid learning,” he continued. “There’s not a single aspect of human life that doesn’t have the potential to be totally transformed by these technologies in the future.”

Today, some call work such as Venter’s novel bacterial creation an example of “4-D printing.” 2-D printing is what we do everyday by hitting “print” on our keyboards, causing a hard copy of an article or the like to spew from our old-fashioned ink-printing devices. Manufacturers, architects, artists, and others are now doing 3-D printing, using computer-generated designs to command devices loaded with plastics, carbon, graphite, and even food materials to construct three-dimensional products. With 4-D printing, manufacturers take the next crucial step: self-assembly or self-replication. What begins as a human idea, hammered out intellectually on a computer, is then sent to a 3-D printer, resulting in a creation capable of making copies of and transforming itself. In solid materials, Skylar Tibbits of the Massachusetts Institute of Technology creates complex physical substances that he calls “programmable materials that build themselves.” Venter and hundreds of synthetic biologists argue that 4-D printing is best accomplished by making life using life’s own building blocks, DNA.

When Venter’s team first created the phi X174 viral genome, Venter commissioned a large analysis of the implications of synthetic genomics for national security and public health. The resulting report warned that two issues were impeding appropriate governance of the new science. The first problem was that work on synthetic biology, or synbio, had become so cheap and easy that its practitioners were no longer classically trained biologists. This meant that there were no shared assumptions regarding the new field’s ethics, professional standards, or safety. The second problem was that existing standards, in some cases regulated by government agencies in the United States and other developed countries, were a generation old, therefore outdated, and also largely unknown to many younger practitioners.

Venter’s team predicted that as the cost of synthetic biology continued to drop, interest in the field would increase, and the ethical and practical concerns it raised would come increasingly to the fore. They were even more prescient than they guessed. Combined with breakthroughs in another area of biology, “gain-of-function” (GOF) research, the synthetic genomics field has spawned a dizzying array of new possibilities, challenges, and national security threats. As the scientific community has started debating “human-directed evolution” and the merits of experiments that give relatively benign germs dangerous capacities for disease, the global bioterrorism and biosecurity establishment remains well behind the curve, mired in antiquated notions about what threats are important and how best to counter them. 

In the United States, Congress and the executive branch have tried to prepare by creating finite lists of known pathogens and toxins and developing measures to surveil, police, and counter them; foreign governments and multilateral institutions, such as the UN and the Biological Weapons Convention, have been even less ambitious. Governance, in short, is focused on the old world of biology, in which scientists observed life from the outside, puzzling over its details and behavior by tinkering with its environment and then watching what happened. But in the new biology world, scientists can now create life themselves and learn about it from the inside. As Venter put it back in 2009, “What we have done so far is going to blow your freakin’ mind.”

why have young people in japan stopped having sex?

Guardian | Ai Aoyama is a sex and relationship counsellor who works out of her narrow three-storey home on a Tokyo back street. Her first name means "love" in Japanese, and is a keepsake from her earlier days as a professional dominatrix. Back then, about 15 years ago, she was Queen Ai, or Queen Love, and she did "all the usual things" like tying people up and dripping hot wax on their nipples. Her work today, she says, is far more challenging. Aoyama, 52, is trying to cure what Japan's media calls sekkusu shinai shokogun, or "celibacy syndrome".

Japan's under-40s appear to be losing interest in conventional relationships. Millions aren't even dating, and increasing numbers can't be bothered with sex. For their government, "celibacy syndrome" is part of a looming national catastrophe. Japan already has one of the world's lowest birth rates. Its population of 126 million, which has been shrinking for the past decade, is projected to plunge a further one-third by 2060. Aoyama believes the country is experiencing "a flight from human intimacy" – and it's partly the government's fault.

The sign outside her building says "Clinic". She greets me in yoga pants and fluffy animal slippers, cradling a Pekingese dog whom she introduces as Marilyn Monroe. In her business pamphlet, she offers up the gloriously random confidence that she visited North Korea in the 1990s and squeezed the testicles of a top army general. It doesn't say whether she was invited there specifically for that purpose, but the message to her clients is clear: she doesn't judge.

Inside, she takes me upstairs to her "relaxation room" – a bedroom with no furniture except a double futon. "It will be quiet in here," she says. Aoyama's first task with most of her clients is encouraging them "to stop apologising for their own physical existence".

The number of single people has reached a record high. A survey in 2011 found that 61% of unmarried men and 49% of women aged 18-34 were not in any kind of romantic relationship, a rise of almost 10% from five years earlier. Another study found that a third of people under 30 had never dated at all. (There are no figures for same-sex relationships.) Although there has long been a pragmatic separation of love and sex in Japan – a country mostly free of religious morals – sex fares no better. A survey earlier this year by the Japan Family Planning Association (JFPA) found that 45% of women aged 16-24 "were not interested in or despised sexual contact". More than a quarter of men felt the same way.

Many people who seek her out, says Aoyama, are deeply confused. "Some want a partner, some prefer being single, but few relate to normal love and marriage." However, the pressure to conform to Japan's anachronistic family model of salaryman husband and stay-at-home wife remains. "People don't know where to turn. They're coming to me because they think that, by wanting something different, there's something wrong with them."

Official alarmism doesn't help. Fewer babies were born here in 2012 than any year on record. (This was also the year, as the number of elderly people shoots up, that adult incontinence pants outsold baby nappies in Japan for the first time.) Kunio Kitamura, head of the JFPA, claims the demographic crisis is so serious that Japan "might eventually perish into extinction".

Japan's under-40s won't go forth and multiply out of duty, as postwar generations did. The country is undergoing major social transition after 20 years of economic stagnation. It is also battling against the effects on its already nuclear-destruction-scarred psyche of 2011's earthquake, tsunami and radioactive meltdown. There is no going back. "Both men and women say to me they don't see the point of love. They don't believe it can lead anywhere," says Aoyama. "Relationships have become too hard." Fist tap Dale.

lack of will in a time of discontent and woe...,

NYTimes | ON my first night back in Italy, at a dinner party in Milan, I watched and listened to a successful couple in their late 40s plot their escape from a country that they love but have lost faith in. They cleared the plates, opened a laptop, and began checking out real estate in London, where one of them had been offered a transfer. The prices horrified but didn’t deter them. They have a 10-year-old son, and they fear that Italy, with 40 percent unemployment among young adults and an economy whose listlessness has come to seem the new normal, doesn’t promise a particularly bright future for him. 

Two days later and about 200 miles southeast of Milan, it was an older Italian woman — early 70s, I’d wager — who sang her country’s blues. I was having lunch on a mountaintop in the Marche region, and with wild boar sausage in front of me and a castle overhead, I could have convinced myself that I was in heaven. “A museum,” she corrected me. “You’re in a museum and an organic garden.” That’s what Italy had come to, she said. Each year the country lost more of its oomph, more of its relevance. 

Because I was lucky enough to live here once and am always circling back, I’m well accustomed to Italians’ theatrical pessimism, to their talent for complaint. It’s something of a sport, something of an opera, performed with sweeping gesticulations and musical intonations and, in the past, with an understanding that there was really nowhere else they’d rather be. 

But the arias have been different this time around. The whole mood has. Ask Italian students what awaits them on the far side of their degrees and they shrug. Ask their parents when or how Italy will turn the corner and you get the same expression of bafflement. You hear more than you did 10 or even five years ago about migrations to Britain, to the United States. You hear less faith in tomorrow. 

I’ve been startled by it. Also spooked, because I arrived here straight from our government shutdown, and I’ve observed Italy’s discontent through a filter of America’s woes, processing it as a cautionary tale. Italy is what happens when a country knows full well what its problems are but can’t summon the discipline and will to fix them. It’s what happens when political dysfunction grinds on and on and good governance becomes a mirage, a myth, a joke. Italy coasts on its phenomenal blessings rather than building on them and loses traction in a global economy with more driven competitors. Sound familiar? There’s so much beauty and promise here, and so much waste. Italy breaks your heart.

word is bond...,

Paul Grignon - Money as Debt 1 Full Length Movie from Complementary Currency on Vimeo.

pbs | Paul Solman: If you've been reading from question one, here now we get to the agency of the government that actually creates our money, and thereby tries to control inflation: the Federal Reserve. It creates U.S. dollars not by printing them, but by generating them electronically as deposits in our banks, deposits known as "Federal reserves." 

The Fed doesn't just give the reserves to the banks, however. It uses them to buy some of what the banks have in abundance: bonds.

And what are bonds? Legal debt contracts, as in "my word is my bond, but just in case you don't take my word as Gospel, here's a written promise that I'll pay you back." 

Banks are in the business of taking money from depositors and lending it out. Often they lend to individuals and small businesses. Other times, they lend to large institutions or governments. Those loans are usually made in return for bonds -- IOUs. So banks have lots of them.

The world's biggest issuer of bonds is the U.S. government, which has run up a cumulative $16 trillion national debt. As a result, the U.S. has $16 trillion worth of bonds outstanding. U.S. banks hold a significant portion of them.

When the Fed wants to spur the economy, as I explained in my answer to the first question, above, it buys bonds from the Treasury, thus injecting its "Federal reserves" into the banking system, which can then lend out most of the new money as loans and spur economic activity. That's what the Fed has been doing ever since the Crash of '08.

Look at the Fed's situation six years ago, in October of 2007. It held about $800 billion worth of U.S. Treasury IOUs, meaning it was financing less than a trillion dollars worth of U.S. debt. As of this week, that number had swelled to $2.2 trillion, with the Fed having bought another $1.5 trillion worth of mortgage-backed securities (housing loans) as well. So yes, Yan, the Fed is now the proud owner of nearly $4 trillion dollars worth of loans.

All told, the Fed has newly taken on about $3 trillion worth of loans since the Crash of '08, which it paid for with newly created electronic "Federal reserves." That's the policy known as "quantitative easing," so-called because the Fed increased the quantity of money in the banking system in order to ease ( as opposed to "tighten") economic activity. And to be clear: this is what the Fed has always done when it tried to stimulate the economy. The Fed was blasted by conservative economists Milton Friedman and Anna Schwartz for not having done so in the early 1930s and thus having contributed mightily to the Great Depression by failing to ease.

The talk now is that the Fed will slow and eventually stop its bond buying and money creation -- gradually. It will, in short, taper off its easing, as it typically has done in the past. 

Yan asks a question beyond tapering, however: If the Fed were to start selling its bonds instead of continuing to buy them, wouldn't that flood the bond market with U.S. Treasuries, making it more difficult for the Treasury to borrow money by selling new bonds of its own and indeed forcing the Treasury to offer a higher interest rate to get anyone to lend to it?

Well, yes, which is why the Fed will only start selling bonds when it wants to tighten the economy -- should it show signs of overheating and bubble-like activity. Those signs would presumably show up first in lots of buying and price and wage rises and thus, a sudden spurt in the inflation rate. To "taper," in short, does not mean "to suddenly reverse course."

Yan also asks: "Could [the Fed] give [the Treasury bonds] to the main part of the government? What would the bonds be if that happened? Mad money?"

I'm no finance lawyer, but the answer is almost surely "no." I can't imagine that the Fed has authority to simply give away its assets. And why would the Treasury need the bonds? It has nothing to fear from the Fed. If the Fed holds Treasury bonds, it's not likely to dump them, is it? Not unless the economy needs dramatic tightening, that is, in which case the Treasury should be happy to see the Fed start unloading.

But let me ask a question you didn't pose, Yan: what happened to the nearly $3 trillion dollars the Fed has created between 2008 and today? 

Well, look again at the Fed balance sheet. In the second section, entitled "1. Factors Affecting Reserve Balances of Depository Institutions (continued)," the seventh row is labeled "Reserve balances with Federal Reserve Banks." Up until the Crash of '08, that number was in the low billions. Today, as you can see if you look, it's $2.3 trillion.

In other words, most of the money the Fed has created -- "out of thin air," as Fedophobes like to declaim -- is right back at the Fed in the form of deposits by banks. 

"But why would that be?" you might well ask.

And the answer is this: at the time of the Crash, the Fed instituted a policy of paying the banks to redeposit money at the Fed. That payment is known as "Interest on Excess Reserves" (IOER). It appears to have been a way of discouraging banks from making risky loans, a way of keeping the newly created Fed money from circulating throughout the economy and thus creating inflation. In fact, some observers would say its main purpose was simply to shore up the wobbly banking system with Fed money. I wouldn't disagree.

---

Janice Bienn -- Dallas, Texas: What are your thoughts on the video "Money as Debt" by Paul Grignon? I sent someone your article, and he fired back with this video, stating that you were either ill informed, or part of the "conspiracy." I don't believe either conclusion is true. But I would appreciate some clarification. Thanks in advance for your time.

Paul Solman: I don't mean to sound defensive, Janice, but if even I am ill informed, after all these decades of time and effort, we might as well go fishing and leave the economy to -- well, whom, exactly? Paul Grignon? His great insight, as near as I can tell, is that money is debt -- true -- and debt is bad. Really? Debt is bad? Money is bad?

Look, debt can be abused. Who would doubt it? The ability to create money can be abused. Again, who would argue otherwise? But for goodness sake, everything of value can be abused, from land to love to food to friendship! 

The easiest form of communication, I discovered early in my career, is to denounce, to deride, to find flaws. That's because pretty much nothing in this all-too-human world of ours works quite as intended. 

People and larger groups of people (institutions) and even larger groups (governments) take on financial commitments they can't meet. What else is new? This has been happening throughout the entire course of financial transactions. Here's the translation of a message on a clay tablet, in cuneiform, from A. Leo Oppenheim's book, "Letters from Mesopotamia":

From Silla-Labbum and Elani

Tell Puzur-Assur, Amua, and Assur-samsi:

Thirty years ago you left the city of Assur [one of the capitals of ancient Assyria, 250 or so miles north of Baghdad]. You have never made a deposit since, and we have not recovered one shekel of silver from you, but we have never made you feel bad about this. Our tablets have been going to you with caravan after caravan, but no report from you has ever come here. We have addressed claims to your father but we have not been claiming one shekel of your private silver. Please, do come back right away; should you be too busy with your business, deposit the silver for us. (Remember) we have never made you feel bad about this matter but we are now forced to appear, in your eyes, acting as gentlemen should not. Please, do come back right away or deposit the silver for us.
If not, we will send you a notice from the local ruler and the police, and thus put you to shame in the assembly of the merchants. You will also cease to be one of us.

I suppose it's possible to attribute the fall of Assyrian hegemony to widespread debt abuse. But personally, I'd be more inclined to believe that cross-desert commerce was good for the Mesopotamian economy -- the world's very first economy, some say -- and that such commerce was facilitated by debt and money, as all commerce has been ever since. If that makes me part of a conspiracy, so be it.

awesome corruption at the gates of hell...,

reuters | "Working conditions in the nuclear industry have always been bad," said Saburo Murata, deputy director of Osaka's Hannan Chuo Hospital. "Problems with money, outsourced recruitment, lack of proper health insurance - these have existed for decades."

The Fukushima project has magnified those problems. When Japan's parliament approved a bill to fund decontamination work in August 2011, the law did not apply existing rules regulating the construction industry. As a result, contractors working on decontamination have not been required to disclose information on management or undergo any screening.

That meant anyone could become a nuclear contractor overnight. Many small companies without experience rushed to bid for contracts and then often turned to brokers to round up the manpower, according to employers and workers.

The resulting influx of workers has turned the town of Iwaki, some 50 kilometers (30 miles) from the plant, into a bustling labor hub at the front line of the massive public works project.

In extreme cases, brokers have been known to "buy" workers by paying off their debts. The workers are then forced to work until they pay off their new bosses for sharply reduced wages and under conditions that make it hard for them to speak out against abuses, labor activists and workers in Fukushima said.

Lake Barrett, a former U.S. nuclear regulator and an advisor to Tepco, says the system is so ingrained it will take time to change.

"There's been a century of tradition of big Japanese companies using contractors, and that's just the way it is in Japan," he told Reuters. "You're not going to change that overnight just because you have a new job here, so I think you have to adapt."

A Tepco survey from 2012 showed nearly half of the workers at Fukushima were employed by one contractor but managed by another. Japanese law prohibits such arrangements, in order to prevent brokers from skimming workers' wages.

Tepco said the survey represents one of the steps it has taken to crack down on abuses. "We take issues related to inappropriate subcontractors very seriously," the utility said in a statement to Reuters.

Tepco said it warns its contractors to respect labor regulations. The company said it has established a hotline for workers, and has organized lectures for subcontractors to raise awareness on labor regulations. In June, it introduced compulsory training for new workers on what constitutes illegal employment practices.

Tepco does not publish average hourly wages in the plant. Workers interviewed by Reuters said wages could be as low as around $6 an hour, but usually average around $12 an hour - about a third lower than the average in Japan's construction industry.

Workers for subcontractors in the most-contaminated area outside the plant are supposed to be paid an additional government-funded hazard allowance of about $100 per day, although many report it has not been paid.

The work in the plant can also be dangerous. Six workers in October were exposed to radioactive water when one of them detached a pipe connected to a treatment system. In August, 12 workers were irradiated when removing rubble from around one of the reactors. The accidents prompted Japan's nuclear regulator to question whether Tepco has been delegating too much.

"Proper oversight is important in preventing careless mistakes. Right now Tepco may be leaving it all up to the subcontractors," said the head of Japan's Nuclear Regulation Authority, Shunichi Tanaka in response to the recent accidents.

Tepco said it will take measures to ensure that such accidents are not repeated. The utility said it monitors safety with spot inspections and checks on safeguards for workers when projects are divided between subcontractors.

The NRA, which is primarily charged with reactor safety, is only one of several agencies dealing with the Fukushima project: the ministries of labor, environment, trade and economy are also responsible for managing the clean-up and enforcing regulations, along with local authorities and police.

Yousuke Minaguchi, a lawyer who has represented Fukushima workers, says Japan's government has turned a blind eye to the problem of worker exploitation. "On the surface, they say it is illegal. But in reality they don't want to do anything. By not punishing anyone, they can keep using a lot of workers cheaply."

Economy Minister Motegi, who is responsible for Japan's energy policy and decommissioning of the plant, instructed Tepco to improve housing for workers. He has said more needs to be done to ensure workers are being treated well.

"To get work done, it's necessary to cooperate with a large number of companies," he told Reuters. "Making sure that those relations are proper, and that work is moving forward is something we need to keep working on daily." Fist tap Dale.

impact of the snowden snowball dwarfs the wikileaks that started it all...,

Slate | The diplomatic cables leaked by Chelsea Manning have had a major political impact in several countries around the world. They may have helped tip an election in Peru, exposed official corruption in India, and while WikiLeaks’ role in fomenting the Arab Spring uprisings has been somewhat exaggerated—including by the organization itself—cables detailing the corruption and lavish lifestyles of the Ben Ali family in Tunisia certainly played a role in the early days of that country’s protests.

But as you might expect from documents written by U.S. diplomats themselves, the cables didn’t actually portray U.S. foreign policy in the worst light. While often catty and more blunt than U.S. officials would ever been in public, the cables didn’t tell us all that much about U.S. foreign policy that we didn’t already know. With the benefit of hindsight, even some State Department officials have conceded that the release of the cables was “embarrassing but not damaging."

I doubt we’ll be saying the same thing about the NSA leaks in a few months. The latest reports that the U.S. may have tapped the mobile phone of German Chancellor Angela Merkel have prompted an unusually blunt response from the German government.

As Reuters reported yesterday, the Merkel accusation, along with another recent report of U.S. mass surveillance on French telephone communications, is likely to dominate an upcoming summit of EU leaders in Brussels.  (The Merkel surveillance itself may not have been contained in the Snowden files but it seems likely that the investigation by German intelligence and Der Spiegel that uncovered it was prompted by the recent reports of similar U.S. operations.)

the snowden snowball just keeps on rolling and growing...,

Guardian | The National Security Agency monitored the phone conversations of 35 world leaders after being given the numbers by an official in another US government department, according to a classified document provided by whistleblower Edward Snowden.

The confidential memo reveals that the NSA encourages senior officials in its "customer" departments, such the White House, State and the Pentagon, to share their "Rolodexes" so the agency can add the phone numbers of leading foreign politicians to their surveillance systems.

The document notes that one unnamed US official handed over 200 numbers, including those of the 35 world leaders, none of whom is named. These were immediately "tasked" for monitoring by the NSA.

The revelation is set to add to mounting diplomatic tensions between the US and its allies, after the German chancellor Angela Merkel on Wednesday accused the US of tapping her mobile phone.

After Merkel's allegations became public, White House press secretary Jay Carney issued a statement that said the US "is not monitoring and will not monitor" the German chancellor's communications. But that failed to quell the row, as officials in Berlin quickly pointed out that the US did not deny monitoring the phone in the past.

The NSA memo obtained by the Guardian suggests that such surveillance was not isolated, as the agency routinely monitors the phone numbers of world leaders – and even asks for the assistance of other US officials to do so.

The memo, dated October 2006 and which was issued to staff in the agency's Signals Intelligence Directorate (SID), was titled "Customers Can Help SID Obtain Targetable Phone Numbers".

It begins by setting out an example of how US officials who mixed with world leaders and politicians could help agency surveillance.

can capitalists afford recovery: economic policy when capital is power

bnarchives.yorku | Economic, financial and social commentators from all directions and persuasion are obsessed with the prospect of recovery. The world remains mired in a deep, prolonged crisis, and the key question seems to be how to get out of it. The purpose of our paper is to ask a very different question that few if any seem concerned with: can capitalists afford recovery in the first place?

This question does not come out of the blue. Over the past several years, we have published a series of papers on the crisis (Bichler and Nitzan 2008, 2009; Nitzan and Bichler 2009b; Bichler and Nitzan 2010; Kliman, Bichler, and Nitzan 2011). Our basic argument in these papers is that this is a systemic crisis and that capitalists have been struck by systemic fear: fear for the very survival of the system.

"From now on, depressions will be scientifically created."
Congressman Charles A. Lindbergh Sr. , 1913

This fear, we have further argued, is objectively grounded. Our reasons, though, are very different from those given by heterodox political economists, particularly Marxists. Whereas for the Marxists, the crisis is the symptom and culmination of weakening accumulation, for us it is the consequence of its unprecedented strength.

The two views are anchored in very different cosmologies (Bichler and Nitzan 2012b). Liberals and Marxists see capital as an economic entity and capitalism as a mode of production and consumption, so for them the accumulation crisis is anchored in the economics of production and consumption. By contrast, we see capital as a symbolic representation of power and capitalism as a mode of power, so for us, the crisis of accumulation is a crisis of capitalized power.

According to our research, the accumulation of capital-read-power might be approaching its asymptotes, or limits (Bichler and Nitzan 2012a). The closer capitalized power is to its asymptotes, the more difficult it is to augment it further. Capitalists, though, have no choice. They are conditioned and compelled to increase their capitalized power without end, and that relentless drive breeds conflict. It forces capitalists to increase their threats, escalate their sabotage and intensify their use of force – and this intensification is in turn bound to trigger stronger resistance, contestations, uprisings and more.

By the early 2000s, capitalists began to realize the unfolding of this asymptotic scenario. They started to sense that their power is nearing its limits and that accumulation is becoming ever more difficult to achieve and might be reversed. And given that capitalization is forward-looking, the result has been a major bear market.

The present paper contextualizes and examines this process from the viewpoint of economic policy. The analysis is divided into three parts. The first part deals with the mainstream macroeconomic perspective. This approach claims to have already solved all the theoretical riddles, so the main emphasis here is on the practical question of how to engineer a recovery. The second part deals with the Marxist view. Marxists stress the inherent contradictions of accumulation, so the question for them is the very possibility of sustained growth. The third and final part takes the view of capital as power. Capitalized power hinges not on growth, but on strategic sabotage. So from this viewpoint, the key question is not how capitalists can achieve and sustain a recovery, but whether they can afford it in the first place.

the presidency and the press...,

presidency.ucsb.edu | Mr. Chairman, ladies and gentlemen:

I appreciate very much your generous invitation to be here tonight.

You bear heavy responsibilities these days and an article I read some time ago reminded me of how particularly heavily the burdens of present day events bear upon your profession.

You may remember that in 1851 t. he New York Herald Tribune, under the sponsorship and publishing of Horace Greeley, employed as its London correspondent an obscure journalist by the name of Karl Marx.

We are told that foreign correspondent Marx, stone broke, and with a family ill and undernourished, constantly appealed to Greeley and Managing Editor Charles Dana for an increase in his munificent salary of $5 per installment, a salary which he and Engels ungratefully labeled as the "lousiest petty bourgeois cheating."

But when all his financial appeals were refused, Marx looked around for other means of livelihood and fame, eventually terminating his relationship with the Tribune and devoting his talents full time to the cause that would bequeath to the world the seeds of Leninism, Stalinism, revolution and the cold war.

If only this capitalistic New York newspaper had treated him more kindly; if only Marx had remained a foreign correspondent, history might have been different. And I hope all publishers will bear this lesson in mind the next time they receive a poverty-stricken appeal for a small increase in the expense account from an obscure newspaper

I have selected as the title of my remarks tonight "The President and the Press." Some may suggest that this would be more naturally worded "The President Versus the Press." But those are not my sentiments tonight.

It is true, however, that when a well-known diplomat from another country demanded recently that our State Department repudiate certain newspaper attacks on his colleague it was unnecessary for us to reply that this Administration was not responsible for the press, for the press had already made it clear that it was not responsible for this Administration.

Nevertheless, my purpose here tonight is not to deliver the usual assault on the so-called one-party press. On the contrary, in recent months I have rarely heard any complaints about political bias in the press except from a few Republicans. Nor is it my purpose tonight to discuss or defend the televising of Presidential press conferences. I think it is highly beneficial to have some 20,000,000 Americans regularly sit in on these conferences to observe, if I may say so, the incisive, the intelligent and the courteous qualities displayed by your Washington correspondents.

Nor, finally, are these remarks intended to examine the proper degree of privacy which the press should allow to any President and his family.

If in the last few months your White House reporters and photographers have been attending church services with regularity, that has surely done them no harm.

On the other hand, I realize that your staff and wire service photographers may be complaining that they do not enjoy the same green privileges at the local golf courses which they once did.

It is true that my predecessor did not object as I do to pictures of one's golfing skill in action. But neither on the other hand did he ever bean a Secret Service man. My topic tonight is a more sober one of concern to publishers as well as editors.

I want to talk about our common responsibilities in the face of a common danger. The events of recent weeks may have helped to illuminate that challenge for some; but the dimensions of its threat have loomed large on the horizon for many years. Whatever our hopes may be for the future--for reducing this threat or living with it--there is no escaping either the gravity or the totality of its challenge to our survival and to our security--a challenge that confronts us in unaccustomed ways in every sphere of human activity.

This deadly challenge imposes upon our society two requirements of direct concern both to the press and to the President--two requirements that may seem almost contradictory in tone, but which must be reconciled and fulfilled if we are to meet this national peril. I refer, first, to the need for far greater public information; and, second, to the need for far greater official secrecy.

I.
The very word "secrecy" is repugnant in a free and open society; and we are as a people inherently and historically opposed to secret societies, to secret oaths and to secret proceedings. We decided long ago that the dangers of excessive and unwarranted concealment of pertinent facts far outweighed the dangers which are cited to justify it. Even today, there is little value in opposing the threat of a closed society by imitating its arbitrary restrictions. Even today, there is little value in insuring the survival of our nation if our traditions do not survive with it. And there is very grave danger that an announced need for increased security will be seized upon by those anxious to expand its meaning to the very limits of official censorship and concealment. That I do not intend to permit to the extent that it is in my control. And no official of my Administration, whether his rank is high or low, civilian or military, should interpret my words here tonight as an excuse to censor the news, to stifle dissent, to cover up our mistakes or to withhold from the press and the public the facts they deserve to know.

But I do ask every publisher, every editor, and every newsman in the nation to reexamine his own standards, and to recognize the nature of our country's peril. In time of war, the government and the press have customarily joined in an effort, based largely on self-discipline, to prevent unauthorized disclosures to the enemy. In time of "clear and present danger," the courts have held that even the privileged rights of the First Amendment must yield to the public's need for national security.

Today no war has been declared--and however fierce the struggle may be, it may never be declared in the traditional fashion. Our way of life is under attack. Those who make themselves our enemy are advancing around the globe. The survival of our friends is in danger. And yet no war has been declared, no borders have been crossed by marching troops, no missiles have been fired.

If the press is awaiting a declaration of war before it imposes the self-discipline of combat conditions, then I can only say that no war ever posed a greater threat to our security. If you are awaiting a finding of "clear and present danger," then I can only say that the danger has never been more clear and its presence has never been more imminent.

It requires a change in outlook, a change in tactics, a change in missions--by the government, by the people, by every businessman or labor leader, and by every newspaper. For we are opposed around the world by a monolithic and ruthless conspiracy that relies primarily on covert means for expanding its sphere of influence--on infiltration instead of invasion, on subversion instead of elections, on intimidation instead of free choice, on guerrillas by night instead of armies by day. It is a system which has conscripted vast human and material resources into the building of a tightly knit, highly efficient machine that combines military, diplomatic, intelligence, economic, scientific and political operations.

its preparations are concealed, not published. Its mistakes are buried, not headlined. Its dissenters are silenced, not praised. No expenditure is questioned, no rumor is printed, no secret is revealed. It conducts the Cold War, in short, with a war-time discipline no democracy would ever hope or wish to match.

Nevertheless, every democracy recognizes the necessary restraints of national security-and the question remains whether those restraints need to be more strictly observed if we are to oppose this kind of attack as well as outright invasion.

For the facts of the matter are that this nation's foes have openly boasted of acquiring through our newspapers information they would otherwise hire agents to acquire through theft, bribery or espionage; that details of this nation's covert preparations to counter the enemy's covert operations have been available to every newspaper reader, friend and foe alike; that the size, the strength, the location and the nature of our forces and weapons, and our plans and strategy for their use, have all been pinpointed in the press and other news media to a degree sufficient to satisfy any foreign power; and that, in at least one case, the publication of details concerning a secret mechanism whereby satellites were followed required its alteration at the expense of considerable time and money.

The newspapers which printed these stories were loyal, patriotic, responsible and well-meaning. Had we been engaged in open warfare, they undoubtedly would not have published such items. But in the absence of open warfare, they recognized only the tests of journalism and not the tests of national security. And my question tonight is whether additional tests should not now be adopted.

That question is for you alone to answer. No public official should answer it for you. No governmental plan should impose its restraints against your will. But I would be failing in my duty to the Nation, in considering all of the responsibilities that we now bear and all of the means at hand to meet those responsibilities, if I did not commend this problem to your attention, and urge its thoughtful consideration.

On many earlier occasions, I have said-and your newspapers have constantly said-that these are times that appeal to every citizen's sense of sacrifice and self-discipline. They call out to every citizen to weigh his rights and comforts against his obligations to the common good. I cannot now believe that those citizens who serve in the newspaper business consider themselves exempt from that appeal.

I have no intention of establishing a new Office of War Information to govern the flow of news. I am not suggesting any new forms of censorship or new types of security classifications. I have no easy answer to the dilemma that I have posed, and would not seek to impose it if I had one. But I am asking the members of the newspaper profession and the industry in this country to reexamine their own responsibilities, to consider the degree and the nature of the present danger, and to heed the duty of self-restraint which that danger imposes upon us all.

Every newspaper now asks itself, with respect to every story: "Is it news?" All I suggest is that you add the question: "Is it in the interest of the national security?" And I hope that every group in America-unions and businessmen and public officials at every level--will ask the same question of their endeavors, and subject their actions to this same exacting test.

And should the press of America consider and recommend the voluntary assumption of specific new steps or machinery, I can assure you that we will cooperate whole-heartedly with those recommendations.

Perhaps there will be no recommendations. Perhaps there is no answer to the dilemma faced by a free and open society in a cold and secret war. In times of peace, any discussion of this subject, and any action that results, are both painful and without precedent. But this is a time of peace and peril which knows no precedent in history.

II.

It is the unprecedented nature of this challenge that also gives rise to your second obligation--an obligation which I share. And that is our obligation to inform and alert the American people--to make certain that they possess all the facts that they need, and understand them as well--the perils, the prospects, the purposes of our program and the choices that we face.

No President should fear public scrutiny of his program. For from that scrutiny comes understanding; and from that understanding comes support or opposition. And both are necessary. I am not asking your newspapers to support the Administration, but I .am asking your help in the tremendous task of informing and alerting the American people. For I have complete confidence in the response and dedication of our citizens whenever they are fully informed.

I not only could not stifle controversy among your readers--I welcome it. This Administration intends to be candid about its errors; for, as a wise man once said: "An error doesn't become a mistake until you refuse to correct it." We intend to accept full responsibility for our errors; and we expect you to point them out when we miss them.

Without debate, without criticism, no Administration and no country can succeed-and no republic can survive. That is why the Athenian law-maker Solon decreed it a crime for any citizen to shrink from controversy. And that is why our press was protected by the First Amendment--the only business in America specifically protected by the Constitution--not primarily to amuse and entertain, not to emphasize the trivial and the sentimental, not to simply "give the public what it wants"--but to inform, to arouse, to reflect, to state our dangers and our opportunities, to indicate our crises and our choices, to lead, mold, educate and sometimes even anger public opinion.

This means greater coverage and analysis of international news--for it is no longer far away and foreign but close at hand and local. It means greater attention to improved understanding of the news as well as improved transmission. And it means, finally, that government at all levels, must meet its obligation to provide you with the fullest possible information outside the narrowest limits of national security--and we intend to do it.

III.
It was early in the Seventeenth Century that Francis Bacon remarked on three recent inventions already transforming the world: the compass, gunpowder and the printing press. Now the links between the nations first forged by the compass have made us all citizens of the world, the hopes and threats of one becoming the hopes and threats of us all. In that one world's efforts to live together, the evolution of gunpowder to its ultimate limit has warned mankind of the terrible consequences of failure.

And so it is to the printing press--to the recorder of man's deeds, the keeper of his conscience, the courier of his news--that we look for strength and assistance, confident that with your help man will be what he was born to be: free and independent.

fixing your mouth to say "tech surge" is an admission of total ignorance and incompetence...,

hotair | Does the White House know that the “tech surge” is largely a waste of time, a contrivance they’re using to placate Americans and stall while they figure out what to do next? Or is the depth of technological ignorance here such that they really do think Jeff Bezos and Mark Zuckerberg could whip this thing into shape in a few weeks?

There’s an irony to the tech surge too, says Andreessen:

“The government has accreted over the last 30 years contracting rules and regulations that make it impossible” for Silicon Valley companies to compete in Washington, he said. “So you’ve wired the system basically to prohibit the people who really know what’s going on.”

That’s one degree of self-imposed difficulty. The second degree was the extraordinary secrecy about the building of the site maintained by the White House and HHS because they were terrified of political embarrassment if their opponents found out how badly things were going. Had they shared more info with private insurers sooner, they might have had useful feedback on how to correct the site’s problems before they reached this point. The third degree of self-imposed difficulty was the fateful decision to force people to create an account on the site in order to comparison shop among plans, a choice that was made possibly because the administration was afraid of “rate shock” scaring away consumers if they weren’t informed upfront about their subsidies. Who made that decision? According to Issa’s House Oversight Committee, sure sounds like it was the White House (“CMS” is the department of HHS that’s overseeing the website):

CGI officials told Committee staff that CMS officials and employees constantly mentioned “The White House” when discussing matters with CGI. For example, CMS officials would routinely state: “this is what the White House wants.” Moreover, CGI officials told Committee staff the ability to shop for health insurance without registering for an account – a central design feature of the health insurance exchange – was removed “in late August or early September.”

They spent years building a site that would let you comparison shop without creating an account, just like every other commercial website does, and then at the very last minute they were told to tear that up by the roots and stick all the plan information behind a reg wall. Why? And who’s the dummy who thought a fix like that would be simple? Fist tap Big Don.

the most corrupt political system in the world...,

NYTimes | WE have long assumed that the infestation of special interest money in Washington is at the root of so much that ails our politics. But what if we’ve had it wrong? What if instead of being bribed by wealthy interests, politicians are engaged in a form of legal extortion designed to extract campaign contributions? 

Consider this: of the thousands of bills introduced in Congress each year, only roughly 5 percent become law. Why do legislators bother proposing so many bills? What if many of those bills are written not to be passed but to pressure people into forking over cash? 

This is exactly what is happening. Politicians have developed a dizzying array of legislative tactics to bring in money. 

Take the maneuver known inside the Beltway as the “tollbooth.” Here the speaker of the House or a powerful committee chairperson will create a procedural obstruction or postponement on the eve of an important vote. Campaign contributions are then implicitly solicited. If the tribute offered by those in favor of the bill’s passage is too small (or if the money from opponents is sufficiently high), the bill is delayed and does not proceed down the legislative highway. 

House Speaker John A. Boehner appears to be a master of the tollbooth. In 2011, he collected a total of over $200,000 in donations from executives and companies in the days before holding votes on just three bills. He delayed scheduling a vote for months on the widely supported Wireless Tax Fairness Act, and after he finally announced a vote, 37 checks from wireless-industry executives totaling nearly $40,000 rolled in. He also delayed votes on the Access to Capital for Job Creators Act and the Small Company Capital Formation Act, scoring $91,000 from investment banks and private equity firms, $32,450 from bank holding companies and $46,500 from self-described investors — all in the 48 hours between scheduling the vote and the vote’s actually being held on the House floor. 

Another tactic that politicians use is something beltway insiders call “milker bills.” These are bills designed to “milk” donations from threatened individuals or businesses. The real trick is to pit two industries against each other and pump both for donations, thereby creating a “double milker” bill. 

President Obama and Vice President Joseph R. Biden Jr. seemed to score big in 2011 using the milker tactic in connection with two bills: the Stop Online Piracy Act and the Preventing Real Online Threats to Economic Creativity and Theft of Intellectual Property Act. By pitting their supporters in Silicon Valley who opposed the bills against their allies in Hollywood who supported the measures, Mr. Obama and Mr. Biden were able to create a sort of fund-raising arms race. 

In the first half of 2011, Silicon Valley had chipped in only $1.7 million to Mr. Obama’s political campaign. The president announced that he would “probably” sign antipiracy legislation — a stance that pleased Hollywood and incensed Silicon Valley. The tech industry then poured millions into Mr. Obama’s coffers in the second half of 2011. By January of 2012, Hollywood had donated $4.1 million to Mr. Obama. 

Then, suddenly, on Jan. 14, 2012, the White House announced that it had problems with the antipiracy bills and neither passed. “He didn’t just throw us under the bus,” one film executive and longtime supporter of Mr. Obama anonymously told The Financial Times, “he ran us down, reversed the bus and ran over us again.”

the fabulous life in hollywood for ugly people...,

NYTimes | A new book from a conservative advocate of tighter campaign finance regulations seeks to draw attention to a number of questionable but legal fund-raising activities — some potentially damaging, others certainly embarrassing — that could prove uncomfortable for some on Capitol Hill. 

The author is Peter Schweizer, a fellow at Stanford University’s Hoover Institution, whose last book focused on how members of both parties enriched themselves by trading stock based on information they obtained by virtue of their positions in Congress. The book — and the news coverage of it — helped lead to the Stock Act, which banned insider trading for representatives and senators but stopped far short of the systemic changes advocates like Mr. Schweizer said were necessary. 

Mr. Schweizer hopes his new book, titled “Extortion,” will help push Congress to address loopholes in the campaign finance system, including banning “Leadership PACs,” which allow politicians to spend and solicit money without many of the restrictions they face when using their dedicated campaign committees. 

These groups, Mr. Schweizer argues, have essentially become slush funds that enable lavish lifestyles while they exist ostensibly to help members of Congress finance their own campaigns and help political allies. 

The book details the extravagant expenses of Senator Saxby Chambliss, Republican of Georgia, for instance, whose leadership PAC spent $10,000 on golf at Pebble Beach, nearly $27,000 at Ruth’s Chris Steakhouse, and $107,752 at the exclusive Breakers resort in Palm Beach, Fla. The amount Mr. Chambliss spent at the Breakers in the 2012 election cycle, the book reports, is three times what the senator gave to the National Republican Senatorial Committee during the same period. 

Senator Roy Blunt, Republican of Missouri, racked up $65,000 in expenses during the 2012 cycle at a resort on South Carolina’s exclusive Kiawah Island, the book says. That was more than he transferred to his party’s senatorial committee, despite raising $1.1 million. 

A spokeswoman for Mr. Chambliss said that every fund-raiser and expenditure was documented and reported according to the law, and that he gave the maximum allowed to his colleagues. Mr. Blunt’s office did not respond to a request for comment.

congressional coprolithic bolus...,

jeb bush to the wattles: propose an alternative and show a little self-restraint...,

RCP | JONATHAN KARL, ABC NEWS: But I just spoke to Ted Cruz and he was the guy who said, hey, let's not agree to a funding resolution unless ObamaCare is defunded. That was the strategy that really kicked it off and he told me that he will now do anything he can to stop ObamaCare and he does not rule out pushing to the brink once again.

What would your message be to Ted Cruz?

JEB BUSH: Well, frankly, I think the best way to repeal ObamaCare is to have an alternative. We never hear the alternative. We could do this in a much lower cost with improved quality based on our principles, free market principles, and two, show how ObamaCare, flawed to its core, doesn't work.

So have a little bit of self-restraint. It might actually be a politically better approach to see the massive dysfunction. But we don't even hear about that because we've stepped on that message. And I think Republicans need to just take a step back and allow -- show a little self-restraint and let this happen a little more organically.

nutty baggers rigged parliamentary rules and suspended democracy in order to enact the shutdown...,

Late in the evening on September 30, 2013, the House Rules Committee Republicans changed the Rules of the House so that the ONLY Member allowed to call up the Senate's clean CR for a vote was Majority Leader Eric Cantor or his designee -- all but guaranteeing the government would shut down a few hours later and would stay shut down. Previously, any Member would have had the right to bring the CR up for a vote. Democracy has been suspended in the House of Representatives.

feces-flinging, circus clown college in congress...,

RT | Is the drama in Washington, a comedy or a tragedy? What's a better term for American democracy? When will the debt time bomb detonate? Who can stand up against American exceptionalism? We discuss this and more with National Security whistleblower, Mark Novitsky 

.Sophie Shevardnadze: Our guest today is another national security whistleblower, and no it’s not Edward Snowden – his name is Mark Novitsky and he joins us from the American city of Minneapolis.

 

So the drama in Washington – what was it? Is it a comedy or a tragedy?

 

Mark Novitsky: It’s really disturbing to refer to what’s happening in Washington as a joke, and on behalf of all critical, clear-thinking Americans I want to apologize to the rest of the world for our Circus Clown College in Congress, and only the American Congress could pat themselves on the back and break their elbows for kicking the can down the road instead of actually doing their job, and delaying this for another three months on an issue that they should have handled couple years ago.

 

SS: There is no default this time, but only for now, the root causes aren’t really going away, be they political or economic, don’t you think?

 

MN: The situation is that actually there was a default, we went into default in May, and the Treasury department actually started dipping into US government pension funds to make up for that deficit. All of these things are really scary and I think that we would have to take a look at these issues as if what would be the consequences for the average person if they were to pile up their credit card debt to the point where they can’t afford to pay their mortgage and going to get another credit card – there has to be some type of resolution to all of this nonsense from an economic perspective. I think the first thing you do when you’re in the bottom of the hole is stop digging.

 

SS: Why is it that every draft bill turns into existential crisis for Congress? I mean, beforehandCongress was somewhat able to make more pragmatic decisions, come to an accord – but now it’s all about life and death struggle..

 

MN: Because the concept of social control being best managed through fear predates Christ from a political perspective, and in order for there to be fear so that one may have social control have to have a crisis. People often tend to refer to me, saying “Mark, you’re so negative!” That’s because we have a new crisis every week that we need to deal with and the way that we end up dealing with this crises is piling them on top of each other and nothing ever gets resolved. We need to hold our government officials accountable to the rule of law, to the Constitution, and I want to thank Russia Today for having me on, because the media is such a big component of that – and, tragically, Americans find themselves the best-entertained people on the planet and the least informed. But I think that that tide is turning, people are starting to understand the use propaganda, and being a little bit more selective.

I’ll be honest with you – when I told people that I was going to do a program on Russia Today people were saying “why would you do that? You’re going to look like a Commie!” And I said, “Listen, you need to broaden your perspective. You need to find a news source or news service that doesn’t just tell you what you want to hear.” You have to be critical, you have to think about what they are trying to sell you, when you’re talking about the news. What becomes news here in America is when a teen actress named Miley Cyrus sticks her tongue out and gets more naked and there’s three hours’ programmed on CNN.

 

SS: Well, thank you very much for being so positive about Russia Today, but talking about narrowing things down or broadening them – American Democracy is narrowed down to two parties and even then the Congress fails to agree on things. Is there a better term than “democracy” to describe it?

 

MN: Feudalism, I guess. Pseudo-democracy. We are in the United States of America and we ended up coming down to having a choice between two pre-selected candidates who spend the most money. A look at what just transpired with our country and our government with regards to this “every six month debt limit increase” or it’s a fiscal cliff, or it’s austerity – there’s always something to be afraid of, but at this point in time if we look at the television and see these two idiot teams bickering and fighting back and forth.

I’ll be candid with you, when I have a mental image of American politics I see two warring factions of chimpanzees baring their teeth and screaming at each other and waving and flailing their hands above them and throwing feces at each other. That’s where we are at. We got to get back to being the beacon of freedom, the beacon of democracy, the beacon of common sense.

10 reasons the tea party is so unpopular

 

alternet | Now that the federal government has reopened and its debt limit raised, the Tea Party is more unpopular with Americans than ever—including among moderate Republicans—polls are finding, with analysts asking if the Tea Party is part of the GOP at all.  

“The Tea Party is less popular than ever, with even many Republicans now viewing the movement negatively. Overall, nearly half of the public (49 percent) has an unfavorable opinion of the Tea Party, while 30 percent have a favorable opinion,” the Pew Research Center For People And The Press said in its latest poll and report.

“For Republicans, the decline is steepest among those who describe themselves as moderate or liberal. Today, only about a quarter (27 percent) of moderate and liberal Republicans have a favorable opinion of the Tea Party movement, down 19 points from June,” Pew said, after surveying 1,500 adults over 18 across the country between Oct. 9 and 13. “Yet the Tea Party’s ratings have also declined among conservative Republicans, from 74 percent favorable in June to 65 percent now.”

Since the standoff ended, there’s been no shortage of media reports about the Republican Party tearing itself apart—with rightwingers accusing leaders in Congress of “surrender” and finger pointing at usual targets such as the media's supposedly liberal bias. Tea Party leaders such as former South Carolina Sen. Jim DeMint, now president of the Heritage Foundation, vowed in a Wall Street Journal column Friday that the fight to destroy the Affordable Care Act will continue. Meanwhile, another Tea Party darling, Kentucky’s Sen. Rand Paul, is AWOL in this fracas, perhaps nursing his 2016 presidential bid.

But no one should think that the Tea Party’s latest failures will make them go away. This faction, as epitomized by Texas Sen. Ted Cruz declaring that the shutdown was a victory, is unapologetic, arrogant and proud of it. As Pew notes, Tea Partiers share 10 beliefs and causes that make most Americans cringe—not just Democrats but millions of moderate and liberal Republicans. Let’s look at those views and values, according to Pew.

the abject failure of reaganomics

consortiumnews | In the decades that followed Reagan’s 1980 election, the Right has invested ever more heavily in media outlets, think tanks and attack groups that, collectively, changed the American political landscape. Because of Reagan’s sweeping tax cuts favoring the rich, right-wing billionaires, like the Koch Brothers and Richard Mellon Scaife, also had much more money to reinvest in the political/media process, including funding the faux-populist Tea Party.

That advantage was further exaggerated by the Left’s parallel failure to invest in its own media at anything close to the Right’s tens of billions of dollars. Thus, the Right’s outreach to average Americans has won over millions of middle-class voters to the Republican banner, even as the GOP enacted policies that devastated the middle class and concentrated the nation’s wealth at the top.

So, even as American workers struggled in the face of globalization and suffered under GOP hostility toward unions, the Right convinced many middle-class whites, in particular, that their real enemy was “big guv-mint.”

Though Obama won the presidency in 2008, the Republicans didn’t change their long-running strategy of using their media assets to portray the Democrats as un-American. The Right waged a relentless assault on Obama’s legitimacy (spreading rumors that he was born in Kenya, he was a secret socialist, he was a Muslim, etc.) while a solid wall of Republican opposition greeted his plans for addressing the national economic crisis that he inherited.

The Rise of the Tea Party

Like previous Democrats, Obama initially responded by offering olive branches across the aisle, but again and again, they were slapped down. In mid-2009, Obama wasted valuable time trying to woo supposed Republican “moderates” like Sen. Olympia Snowe of Maine to support health-care reform. Meanwhile, Republicans filibustered endlessly in the Senate and whipped their right-wing “base” into angrier and angrier mobs.

Initially, the GOP strategy proved successful, as Republicans pummeled Democrats for increasing the debt with a $787 billion stimulus package to stanch the economic bleeding. The continued loss of jobs enabled the Republicans to paint the stimulus as a “failure.” There was also Obama’s confusing health-care law that pleased neither the Right nor the Left.

The foul mood of the nation translated into an angry Tea Party movement and Republican victories in the House and in many statehouses around the country. Gradually, however, a stabilized financial structure and a slow-healing economy began to generate jobs, albeit often with lower pay.

Obama could boast about sufficient progress to justify his reelection in 2012, with most voters also favoring Democrats for the Senate and the House. However, aggressive Republican gerrymandering of congressional districts helped the GOP retain a slim majority in the House despite losing the popular vote by around 1½ million ballots.

But the just-finished budget/debt showdown has shown that the Tea Party’s fight over America’s political/economic future is far from over. Through its ideological media and think tanks, the Right continues to hammer home the Reagan-esque theory that “government is the problem.”

Meanwhile, the Left still lacks comparable media resources to remind U.S. voters that it was the federal government that essentially created the Great American Middle Class – from the New Deal policies of the 1930s through other reforms of the 1940s, 1950s and 1960s, from Social Security to Wall Street regulation to labor rights to the GI Bill to the Interstate Highway System to the space program’s technological advances to Medicare and Medicaid to the minimum wage to civil rights.

Many Americans don’t like to admit it — they prefer to think of their families as reaching the middle class without government help — but the reality is that the Great American Middle Class was a phenomenon made possible by the intervention of the federal government beginning with Franklin Roosevelt and continuing into the 1970s. [For one telling example of this reality -- the Cheney family, which was lifted out of poverty by FDR's policies -- see Consortiumnews.com's "Dick Cheney: Son of the New Deal."]

Further, in the face of corporate globalization and business technology, two other forces making the middle-class work force increasingly obsolete, the only hope for a revival of the Great American Middle Class is for the government to increase taxes on the rich, the ones who have gained the most from cheap foreign labor and advances in computer technology, in order to fund projects to build and strengthen the nation, from infrastructure to education to research and development to care for the sick and elderly to environmental protections.

In other words, the only strategy that makes sense for the average American is to reject the theories of Ronald Reagan and the Right. Rather than seeing the government as “the problem” and higher taxes on the rich as “bad,” the American people must come to understand that, to a great extent, government has to be a big part of the solution.