Central Banks Wage War on Markets: Bill Bonner Says They Will Lose; Fed Up Yet?
Central Banks Wage War on Markets: Bill Bonner Says They Will Lose; Fed Up Yet?
This article is published in collaboration with Scutify, where you can find real-time markets and stock commentary from Robert Marcin, Cody Willard and others. Download the Scutify iOS App, the...
This article is published in collaboration with Scutify, where you can find real-time markets and stock commentary from Robert Marcin, Cody Willard and others. Download the Scutify iOS App, the Scutify Android App or visit Scutify.com.
Daily Reckoning founder Bill Bonner thinks central banks are waging war on the markets. He also believes they will lose.
I wholeheartedly agree with Bonner's rationale. Let's tune in.
This is a guest post courtesy of Bill Bonner and the Daily Reckoning.
Why the Feds Will Lose Their War on the Markets
The markets continue to dawdle. Not much conviction in either direction.
We've already looked at the War on Poverty, the War on Drugs and the War on Terror.
So let's move on...using our new lens to look at another of the feds' fake wars.
Dirty War
No war was ever officially declared against the markets.
But for four decades the feds conducted covert operations...a dirty war in which they've tried to mislead, obstruct, and suppress market forces.
They used fake money, fake savings, and fake interest rates to confuse investors, businesses, and consumers.
They didn't say so directly, but their purpose was to give out false signals so that people would change their behaviour.
'Demand' was too weak, they said. What to do about it?
They flooded the system with phony savings (credit).
Price signals were distorted. Credit limits seemed to disappear. Debt limits were eased.
Then, in 2008, the war turned hot...with the feds actively and overtly holding down interest rates to push up stock and bond prices.
In response to the crisis they caused - by encouraging too much debt in the housing sector - they claimed that the 'free market' had failed.
They were just responding to the 'emergency', they said.
Soon, everybody got in on the act - expressing an opinion about how high (or low) interest rates should be.
Force and fraud
Believe it or not, an activist group called 'Fed Up' argues that raising rates is...you guessed it...racist!
Institutional Investor magazine reports that a group funded by 32-year-old Facebook cofounder Dustin Moskovitz is lobbying against rate increases on the grounds that higher rates are bad for US workers. From the website:
'The truth about the economy is obvious to most of us: not enough jobs, not enough hours, and not enough pay - particularly in communities of color and among young workers.
'Some members of the Federal Reserve think that the economy has recovered. They want to raise interest rates to slow down job growth and prevent wages from rising faster. That's a terrible idea.
'We stand with millions of workers and their families in calling on the Federal Reserve to adopt pro-worker policies for the rest of us. The Fed can keep interest rates low, give the economy a fair chance to recover, and prioritize full employment and rising wages.'
What? Who are these people? Do they have tails? Horns?
They're right about one thing: When the Fed tries to control the economy, it is politics, not markets, at work.
Markets work by persuasion and voluntary exchange. Politics works on force and fraud. Fed Up is a political organisation trying to influence how the force and fraud is applied.
But let's look at the feds' War on Markets through our now-familiar scope.
Victory is impossible
First, is this a war the feds can win?
No. Of course not.
Markets can be suppressed, delayed, and denied...but never eliminated.
Markets do not stop working just because you try to bend, distort, and even outlaw them. Victory is impossible.
The market for drugs does not stop just because the feds make them illegal. Instead, they reprice illegal drugs, taking into account the increased cost of doing business.
Nor does poverty disappear just because the feds make war on it.
'The poor will always be with you,' said Jesus, wisely.
Wealth and poverty are relative; there will always be some rich and some poor. Passing laws will not change that.
And 'terrorism'?
Those who do not have access to conventional armies always resort to unorthodox attacks.
That's what American colonists did when they launched their war against the British in 1775.
It's what the Jews did when they launched their 'insurgency' against the British in Palestine in 1939.
And it's what the Maquis did during the occupation of France by the Nazis during the Second World War.
Terror won't stop any time soon. Nor will markets cease to function.
Bubbles, bankruptcies, and misery
Second, does the enemy gain strength from the 'war' against it?
Well, yes and no.
Markets work perfectly well whether you make war on them or not. Governments can put any price on anything they want. But only markets can tell you what they are worth.
Just look at what happened in the Soviet Union. Or China, pre-1979. Or Venezuela.
Who bought anything from China when the communists were setting prices?
Who goes to Venezuela to do his shopping today?
We visited Russia soon after the Soviet Union was disbanded. Markets were just opening up. But after 70 years of price fixing, there was almost nothing to buy. Almost everything that was being sold had been pilfered from the army. We bought a pair of boots for $1.00. We still have them. The soles are so stiff they barely bend.
There are really only two types of economies - command economies and market economies. The latter work for everyone - but you never know who the real winners will be. The former work only for the commanders. Then, when they have stolen everything there was to steal, markets reassert themselves.
Economies are price-discovering, information-generating learning systems. On the world market, every economy has access to the same resources, more or less. It's what you do with them that counts.
Dictating prices is like teaching students that Japan won the Second World War...or saying that two plus two equals five...or rounding off Pi to three just to make it easier to remember.
But the more fake information you give out, the more valuable real information becomes.
A war the feds will ultimately lose
Third, did it create a new, corrupt Deep State industry? And fourth, do the combatants on both sides gain as the public loses?
Not exactly.
This is different from other 'wars' announced by the Deep State. This is how the insiders fund their other wars...and how they shift trillions of dollars from the public to themselves.
The War on Markets distorted almost all industries and corrupted the entire economy.
As reported here many times, suppressed interest rates alone probably cost savers as much as $10 trillion since 2008. Goosing up asset prices probably shifted another $10 trillion or so to the people who own them (typically, the elite).
As in all of these fake wars, the casus belli is phony.
Markets do not hurt people; they help them. Price signals, set by markets, are essential. Otherwise, you don't know whether you're adding wealth or subtracting it.
Trying to suppress free markets or abolish them always leads to confusion, bubbles, bankruptcies, and misery. Economies weaken; people grow poorer.
Since 2008, wages have been stagnant or falling for most people...GDP growth has declined and is now probably negative...productivity growth has declined more than any time in the last 40 years...world trade levels are back to 2009 levels...and the bounce-back from the Great Recession was the weakest on record.
For now, the war serves its real purpose: to increase the power and wealth of the Deep State insiders.
But it is a war that the feds will ultimately lose.
Trying to suppress markets is like putting a giant cork in the mouth of a volcano. It doesn't stop the eruption; it just makes it more violent.
Regards,
Bill Bonner,
For The Daily Reckoning, Australia
End Bonner - Mish Start - Fed Up
Let's start with three truths by Bonner.
By Scutify
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Trump and Dimon: Is what's good for JPMorgan good for America?
Trump and Dimon: Is what's good for JPMorgan good for America?
Back in 2002, halfway between his retirement as the globe-trotting boss of Chase Manhattan Bank and his death in March at age 102, David Rockefeller stopped in Philadelphia to hawk his memoirs and...
Back in 2002, halfway between his retirement as the globe-trotting boss of Chase Manhattan Bank and his death in March at age 102, David Rockefeller stopped in Philadelphia to hawk his memoirs and complain about how America’s CEOs were no longer taking stands on public issues.
A grandson of Standard Oil monopolist John D. Rockefeller, David said he wished more corporate bosses – some of the most able and successful Americans -- would speak up publicly on issues of the day, as he, DuPont CEO Irving Shapiro and GE’s Reginald Jones had in their turbulent times.
Read the full article here.
New initiative Opioid Network lobbies legislators
Standing in the marble-floored hallway of a U.S. Senate building, Don LoGiudice of Boardman recalled the morning he found his son, Donny, dead from a drug overdose.
...
Standing in the marble-floored hallway of a U.S. Senate building, Don LoGiudice of Boardman recalled the morning he found his son, Donny, dead from a drug overdose.
Read the full article here.
Sanders Delegates Push DNC To Create Commission to Reform Anti-Democratic Superdelegates and Caucus Process
Sanders Delegates Push DNC To Create Commission to Reform Anti-Democratic Superdelegates and Caucus Process
After a contentious afternoon in which the Democratic National Convention's Rules Committee voted down a series of proposals from the Sanders delegation to reform the most glaring anti-democratic...
After a contentious afternoon in which the Democratic National Convention's Rules Committee voted down a series of proposals from the Sanders delegation to reform the most glaring anti-democratic features of the party's primary and caucus process, negotiators met in secret for several hours and forged an agreement to create a reform commission to change those rules for future elections.
"Let me call us America's party," said Texas Congresswomen Sheila Jackson, who rose to support the proposal after opposing the Sanders camp's amendments only hours before. "And America's party, the Democratic Party, links arms with our brothers and sisters from Senator Sanders, and the journey that they made and their supporters, and the journey that was made by Hillary Rodham Clinton's supporters.
"But most of all what I want to say is that divide is no more," she continued. "That we will climb this journey of victory together. That our arms will be linked and we will go to the floor of this great convention. And I am here to say thank you for being who you are. For I see that mountain that we have been challenged to cover, and I am going to say, we shall overcome and elect the next president of the United States, Hillary Rodham Clinton, together... together... together."
The reform commission, which was then approved with 158 yeses, 6 nos and 1 abstention, will look at the main grievances raised by Sanders during the 2016 nominating season: that state party-run caucuses were non-democratic in their counting and allocation of delegates to the next stages in the process, and will, according to Sanders delegates who negotiated, shrink by two-thirds the number of so-called superdelegates, or the party insiders who comprise one-sixth of the 2016 national convention delegates.
"I rise in support of this measure because this is the result of reasoned discussions by many leaders within both campaigns, but it is truly driven by an activism, an activism within the Democratic Party that has been embraced, that has been engaged, and that we should continue to promote," said Paul Feeney, a Sanders delegate who headed his campaign in Massachusetts and Connecticut. "It's no coincidence that so many amendments have been filed today about superdelegates. The supporters of Bernie Sanders have risen up across this country. Acted up. Not to demand a new party, but to make the Democratic Party even better. That's what we're doing with this amendment. That's what we are doing with this revolution that is also an evolution."
The turnaround came after a frustrating afternoon for Sanders delegates, when it seemed the convention's rules committee was parting ways from the party's platform committee by thwarting their call for democratic reforms. The Sanders campaign won 13 million votes, 1,900 delegates and broke the party's fundraising records for the number of small donors, the delegates told the room, in part to push for concessions on the reforms they sought.
But before panel chair Barney Frank called a recess after 4pm, the convention Rules Committee repeatedly rejected a series of reforms to their “superdelegate” system, despite the pleas of Sanders delegates who urged the 165-member body to accommodate millions of voters who want a more open and less rigged presidential nominating process.
Superdelegates are top elected federal and state officials, state party leaders and key allies like labor union executives who can cast a vote for the presidential nominee and also sit on a range of convention committees, from drafting the platform to rules. For months, Sanders and his supporters have complained that the system gave Clinton an unfair lead as hundreds of party officials sided with her before states even started voting, which tilted the media coverage despite Sanders rallies drawing many thousands.
His delegates were hoping to convince the party to change that system, as well as reform the caucus process and adopt more open primaries, in which any voter, not just registered Democrats could participate. But several hours into hearings on Saturday seemed to signal that a majority of the rules panel were not willing to shake up the party’s status quo.
Before they broke to negotiate and propose the commission, the panel heard short debate and then voted down a handful of reforms, from eliminating the system of superdelegates in its entirety to reducing their numbers and limiting their voting.
“I am asking those of you from the Clinton camp to take heed,” said Julie Hurwitz, a Sanders delegate from Detroit, speaking in favor of a compromise that would have let superdelegates vote if there was no clear nominee on the first convention ballot. “I would ask you to not just blindly vote no, no, no… The stakes are so high that I plead for you to take this issue seriously.”
“We have had these rules in place for 30 or 40 years,” said George Albro, a Sanders delegate from New York, responding to those who said now was not the time to act. “We’ve had a lot of time to study it. We don’t have a lot of time to change it. If we walk out of this room with our heads hanging low… The only standard that we are holding the DNC to is the standard of democracy.”
But a series of amendments were repeatedly rejected by two-to-one margins, especially after longtime officeholders said the superdelegate system never swayed a presidential nomination by ignoring the popular vote.
“This is more non-democratic,” said Jackson Lee in response to a proposal cutting the number of superdelegates. “The [origin of] superdelegates was a healing process, when the party was fractured… It was not to divide us, it was not to be an elite process.”
She argued that superdelegates allowed the party to elevate many people of color and those from rural areas. However, that explanation, while swaying a majority of Rules Committee members, was not persuasive to Sanders delegates. They told the room the party must send a signal to the millions drawn to their campaign that their call for a more open process was heard.
“This is the correct forum to have this discussion,” said North Carolina’s Chris O’Hara. “With all due respect… if superdelegates were put in place to heal a divided party, we are a divided party… I beseech you to actually listen.”
“The Republicans have basically nominated a fascist. It’s close. Please take a critical look at this,” said Delaware’s Rebecca Powers.
“I think this is the time for this,” said Miami’s Bruce Jacobs. “You are sending a message to all the people coming into the party.” The Rules Committee compromise came after heavy pressure from Democratic-leaning organizations, which gathered more than 750,000 signatures calling for change, flew a plane over Philadelphia Friday calling for an end to superdelegates, and sent thousands of tweets to rules committee members. There was high interest in the votes, and shouts of “shame, shame, shame” from outside the committee room could be heard on a live Youtube stream of the meeting.
The groups that urged the DNC to end superdelegates include Courage Campaign, Credo, Daily Kos, Demand Progress/Rootstrikers, Democracy for America, Center for Popular, Democracy, MoveOn, National Nurses United, New Democrat Network, the Other 98%, Presente, Progressive Change Campaign Committee, Progressive Democrats of America, Progressive Kick, Reform the DNC, and Social Security Works.
Editor's note: Another reform proposal, to push the party to open its primaries to all registered voters, not just Democrats, was rejected on Saturday evening. Today Open Primaries, a non-profit electoral reform organization, brought 40,000 signed petitions to the meeting, a release noted. “It was an honor to stand up for the 26.3 million registered voters who couldn’t vote in this presidential election," Maggie Wunderly, a Rules Committee member from Illinois said in the release.
By STEVEN ROSENFELD
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How progressives can fight against Trump's agenda
How progressives can fight against Trump's agenda
As the new year begins, any honest progressive knows the political outlook is bleak. But if we're going to limit the damage that President-elect Donald Trump inflicts on the country, then despair...
As the new year begins, any honest progressive knows the political outlook is bleak. But if we're going to limit the damage that President-elect Donald Trump inflicts on the country, then despair is not an option. The real question, as Democracy Alliance President Gara LaMarche recently said, "is how you fight intelligently and strategically when every house is burning down."
Indeed, with Trump and Republicans in Congress aggressively pushing a right-wing agenda, progressives will need to invest their resources and attention where they can do the most good — both now and over the next four years. With that in mind, here are three steps to take to resist and rebuild as the Trump administration gets underway.
First, while strong national leadership is certainly important, progressives must recognize that the most significant resistance to Trump won't take place in Washington. It's going to happen in the streets led by grass-roots activists, and in communities, city halls and statehouses nationwide.
There is real potential for cities and states to act as a bulwark against Trump's agenda. On immigration, for example, a coalition of mayors from across the country — including New York and Los Angeles but also cities throughout the Rust Belt and the South — are already coordinating to fight Trump's deportation plans. Local Progress, a national network of city and county officials, is working to protect civil rights and advance economic and social justice. And while the Trump administration may ravage the environment, cities and states can also continue the fight against global warming; in particular, California has the potential to become a global leader on the issue, and Democratic Gov. Jerry Brown has defiantly pledged to move forward with plans to slash carbon emissions in the state regardless of Trump's policies.
Cities and states also give progressives an opportunity to play offense by advancing policies that truly improve people's lives, while providing a concrete and actionable blueprint for the rest of the country. Take the Fight for $15. Last year, 25 states, cities and counties approved minimum-wage increases that will result in raises for millions of workers nationwide. And despite Trump's hostility to workers, there are campaigns to increase the minimum wage planned in at least 13 states and other localities over the next two years, representing a real chance to build on that progress.
Second, as New York Attorney General Eric Schneiderman writes, "We need a broad commitment from activists and donors to take back state governments." Even if Democrats do well in the midterm elections, they are unlikely to regain control of Congress until after the next round of redistricting, in 2020. Yet there will be 87 state legislative chambers and 36 gubernatorial seats up for grabs in 2018. Progressives would be wise to adopt a laserlike focus on winning these races.
A strong performance at the state level in 2018 would do more than improve progressives' ability to combat Trump's policies. It would also help create a stronger pipeline of leaders who could eventually run for higher office, following in the steps of incoming House members Jamie B. Raskin, D-Md., and Pramila Jayapal, D-Wash. Crucially, it would also give progressive Democrats more influence over congressional redistricting in 2020, boosting the party's prospects at the national level. For that reason, it's noteworthy that President Obama is planning to get involved in state legislative elections and redistricting after he leaves office, though grass-roots efforts will remain paramount.
And third, it will be critical for progressive leaders in Washington to amplify local progress to drive a national message. In the absence of a single party leader — especially one whose success depends on compromising with congressional Republicans — there is more room for strong, populist progressive voices to emerge in opposition to Trump.
Already, Sens. Bernie Sanders, Vt., Elizabeth Warren, Mass., Sherrod Brown, Ohio, and Jeff Merkley, Ore., are stepping up, and they will be joined in the House by the Congressional Progressive Caucus, whose members will play a key role in recruiting and running progressive candidates, connecting with grass-roots movements and driving local issues into the national sphere. Working alongside activist groups, progressive Democrats can present a clear alternative vision for the nation.
To that end, the race for Democratic National Committee chair presents a significant opportunity to shift the party's direction. Regardless of who prevails, progressives would be wise to insist on a return to the 50-state strategy that former chairman Howard Dean championed and that all of the current candidates say they support. Ultimately, the party's fortunes will depend on recruiting a new generation of progressive leaders, especially women and people of color, who can harness the power of social movements and drive it into electoral politics — everywhere in the country, at every level of government.
By: Katrina Vanden Heuvel
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Chicago teachers go on first-ever charter school strike, demanding more pay, educational resources
Chicago teachers go on first-ever charter school strike, demanding more pay, educational resources
“But even with such support, many charter schools are struggling due to little public oversight. In Illinois, the Education Department found in 2010 that the state “has no system in place for [...
“But even with such support, many charter schools are struggling due to little public oversight. In Illinois, the Education Department found in 2010 that the state “has no system in place for [monitoring charter schools].” According to research by the Center for Popular Democracy and Action Now, by early 2015, Illinois had seen $13.1 million in fraud by charter school officials, with total fraud estimated at more than $27 million in 2014 alone.
Read the full article here.
Conyers presses Federal Reserve for more diversity
Washington — Rep. John Conyers, the longest serving member of Congress, is leading a group of 127 lawmakers who are urging the Federal Reserve System to add more diversity to its...
Washington — Rep. John Conyers, the longest serving member of Congress, is leading a group of 127 lawmakers who are urging the Federal Reserve System to add more diversity to its leadership ranks and become more attuned to economic problems in minority communities.
The lawmakers complained that all but one of the 12 Federal Reserve Bank presidents across the nation are white and 10 of them are men. In addition, they said none of the current Federal Reserve presidents are African-American or Latino, and the system has never had a regional president who is black.
“Far too often, the voices of minorities are silenced because they aren’t sitting at the table,” Conyers, the longtime Democrat and African-American Detroiter, said in a statement. “The Federal Reserve needs leadership that models the diversity that exists in this Nation.”
The Federal Reserve has banks in Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas and San Francisco. Detroit is part of the Chicago bank.
Conyers said the diversity of the bank’s regional presidents is important to Detroit and other urban cities, however.
“Detroit and cities across the country with high minority populations have the highest unemployment rates and will be harmed if the Federal Reserve does not consider our needs when they make key policy decisions,” he said. “Increasing diversity at the Federal Reserve will help ensure that the needs of people of color, women, labor, and consumers are part of the crucial conversation in our nation’s central bank.”
A spokesman for the Federal Reserve’s Board of Governors said the system has been committed to bolstering diversity and continues to aim for increasing ethnic and gender diversity.
“Minority representation on Reserve Bank and Branch boards has increased from 16 percent in 2010 to 24 percent in 2016,” spokesman Dave Skidmore said in a Thursday statement. “The proportion of women directors has risen from 23 percent to 30 percent over the same period. Currently, 46 percent of all directors are diverse in terms of race and/or gender (with a director who is both female and a minority counted only one time).
“We are striving to continue that progress.”
The letter, which is signed by 116 House members and 11 Senate members, is being spearheaded by Conyers and Sen. Elizabeth Warren, D-Massachusetts.
Other Michigan representatives who signed the letter were Brenda Lawerence, D-Southfield; Sander Levin, D-Royal Oak; Dan Kildee, D-Flint Township; and Debbie Dingell, D-Dearborn. Democratic presidential candidate and U.S. Sen. Bernie Sanders of Vermont was also a signatory.
By Keith Laing
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NSEA takes stand on vouchers, charter schools
The fact is that charter schools are not meeting the need they were created to fill—including to serve as lab schools to develop new teaching techniques—and many are failing their students and...
The fact is that charter schools are not meeting the need they were created to fill—including to serve as lab schools to develop new teaching techniques—and many are failing their students and families, while squandering taxpayer dollars.
Read the full article here.
Some Retailers Promote Decision to Remain Closed on Thanksgiving
New York Times - November 14, 2014, Steven Greenhouse - This...
New York Times - November 14, 2014, Steven Greenhouse - This Thanksgiving, the open-versus-shut debate has grown even louder.
Walmart, Kmart, Macy’s, Target, RadioShack and many other major retailers are proclaiming that they will be open on Thanksgiving Day to make shoppers happy. But Costco, Marshalls, GameStop and T. J. Maxx are riding the backlash against holiday commerce by boasting that they will not relent: They will remain closed that day to show that they are family-friendly and honoring the holiday.
But even as retailers vie for every dollar during a very competitive season, Tony Bartel, the president of GameStop, views this debate as open-and-shut. “For us, it’s a matter of principle,” said Mr. Bartel, whose company has 4,600 stores nationwide. “We have a phrase around here that we use a lot — it’s called ‘protecting the family.’ We want our associates to enjoy their complete holidays.”
“It’s an important holiday in the U.S., and our employees work hard during the holiday season, and we believe they deserve the opportunity to spend Thanksgiving Day with their family and friends,” said Richard A. Galanti, executive vice president and chief financial officer at Costco Wholesale, the nation’s second-largest retailer after Walmart. “We’ve never opened on Thanksgiving, and when the trend to do so occurred in the last couple or three years, we chose not to because we thought it was the right thing to do for our employees.”
More than two dozen major retail chains plan to stay dark on Thanksgiving, including Barnes & Noble, Bed Bath & Beyond, the Burlington Coat Factory, Crate and Barrel, Dillard’s, Nordstrom, Neiman Marcus and Patagonia.
Johan Araujo, a senior game adviser at GameStop’s flagship store in Herald Square in Manhattan, applauded his company’s decision. “It’s good to know they’re thinking about us and what we want,” he said. His plans involve cooking the turkey for his fiancée and friends this year.
Sidney Bartlett, the manager of Mr. Araujo’s store, said that when the store used to be open on Thanksgiving — it started closing for the holiday last year — it was painful to figure out which employees to inconvenience and schedule to work that day. “I thought it’s great the C.E.O. decided to close for the holiday,” he said.
He said it saddened him to see so many stores open that day. “We’ve shifted as a nation — it’s not so much about the family, it’s all about business,” said Mr. Bartlett, who is studying for an M.B.A. at Columbia.
“We don’t believe we will lose any ground to competitors,” said Mr. Bartel, the company’s president. “Even if we lose some ground to competitors, we are making it corporate principle — we have committed to associates that we will not open on Thanksgiving.”
Pushed by competitive forces, some malls are opening on Thanksgiving Day for the first time. In Paramus, N.J., Westfield Garden State Plaza and Paramus Park will open from 6 p.m. to 11 p.m., prodded by Macy’s decision to open its stores in those malls.
Walden Galleria, a mall with over 200 stores near Buffalo, threatened to fine retailers about $200 an hour if they don’t open at 6 p.m. on Thanksgiving Day.
Carrie Gleason, director of the Fair Workweek Initiative, a campaign pushing retailers to adopt schedules that are more friendly to workers, said, “What’s different from years past is there are more and more retailers coming out publicly and saying, ‘We’re staying closed on Thanksgiving.’ ” They want to demonstrate to their customer base that they’re family-friendly.”
More than 55,000 people have signed a petition on change.org urging Target to remain closed on Thanksgiving, while the Boycott Black Thursday Facebook page has more than 87,000 likes.
Walmart officials say they are doing consumers a favor by opening on Thanksgiving. To reduce the long lines that have upset many shoppers on Black Friday, Walmart announced on Tuesday that it would spread Black Friday over five days.
“It became Black Friday, then it became Thursday, and now it’s becoming weeklong,” said Duncan Mac Naughton, chief merchandising officer at Walmart. “Maybe it’s going to be November.”
Deisha Barnett, a Walmart spokeswoman, said many shoppers were happy that the company would be open on Thanksgiving. “We’re in the service industry, and we’re just like airports and grocery stores and gas stations that are open on Thanksgiving so they can provide what customers need,” she said. “We’ve been open on Thanksgiving for 20-something years.”
Walmart will again face a wave of protests this holiday season. Our Walmart, a union-backed group of Walmart workers pushing for higher pay, said on Friday that it would hold protests at 1,600 Walmarts on Black Friday.
After keeping almost all its stores closed last Thanksgiving, the financially troubled RadioShack said that it planned to open its stores from 8 a.m. to midnight this Thanksgiving. But after some employees voiced dismay, the company changed course to give them time for their feast. Its stores will open from 8 a.m. to noon, close for five hours and reopen from 5 p.m. until midnight, and again at 6 a.m. on Friday.
The University of Connecticut Poll conducted a survey last November that found that nine out of 10 Americans said they didn’t plan to spend Thanksgiving hunting for bargains, while 7 percent said they planned to visit stores on Thanksgiving Day.
The poll of 1,189 adults, with a margin of sampling error of plus or minus 3 percent, found that 49 percent disapproved of stores opening on Thanksgiving Day, with 16 percent approving and 34 percent neutral.
Last Thanksgiving, J. C. Penney, Kohl’s, Macy’s, Sears and Target all opened at 8 p.m. This year, Kmart plans to open at 6 a.m. and remain open for the next 42 hours.
“All these companies were closed for decades,” said Stuart Appelbaum, president of the Retail, Wholesale and Department Store Union. “What’s changed is that some have chosen to remain open, and those companies should be getting demerits. People should ask, ‘Is this the sort of society we want to live in that people aren’t even given the option of celebrating holidays?’ ”
He said that if stores decided to open on Thanksgiving, working that day should be voluntary, not mandatory. He said many part-time workers were eager to work on Thanksgiving.
Mr. Appelbaum praised the Macy’s store in Herald Square for using only workers who volunteer to work that day
Macy’s plans to open at 6 p.m. this Thanksgiving, two hours earlier than last Thanksgiving — and Sears is doing the same thing. “Customer response to the 8 p.m. opening last year was exceptionally strong,” said Jim Sluzewski, Macy’s senior vice president for communications. “At Macy’s Herald Square store, we had 15,000 customers waiting outside when the doors opened. The experience was similar across the country. Many customers asked why we couldn’t open a little earlier.”
In contrast, he said Bloomingdale’s, a Macy’s subsidiary, would remain closed on Thanksgiving Day, saying it was “less promotional” than Macy’s.
Roger Beahm, executive director of the Center for Retail Innovation at Wake Forest University, said it was smart competitively for retailers to open on Thanksgiving. “Did the folks who questioned the sanctity of Thanksgiving learn a lesson?” he said. “A good start to the holiday retail season can really make your year, and a late start can really cripple retailers.”
Dan Evans, a spokesman for Nordstrom, said his company kept its stores closed on Thanksgiving, with a few employees completing holiday decorations that day, before they are unveiled on Black Friday.
“If our customers really wanted us to open on Thanksgiving, that’s what we’ll do,” Mr. Evans said. “We used to be closed on the Fourth of July. We used to be closed on New Year’s Day, but customers wanted us to be open on those days, so now we’re open on those days. Our customers guide us. We don’t guide them.”
Source
Federal Reserve is too ‘white and male’, say Democrats
More than a hundred Democratic party lawmakers have written to Federal Reserve chair Janet Yellen complaining of a lack of diversity within the central bank system and a leadership that is “...
More than a hundred Democratic party lawmakers have written to Federal Reserve chair Janet Yellen complaining of a lack of diversity within the central bank system and a leadership that is “overwhelmingly and disproportionately white and male”.
The letter, signed by 11 senators and 116 representatives, calls on the Fed to do more to ensure its senior ranks reflect the country’s make-up in terms of gender, race and ethnicity, economic background and occupation. It also demands that the Fed place greater priority on securing full employment for minorities as it pursues its economic goals.
“When the voices of women, African-Americans, Latinos, and representatives of consumers and labour are excluded from key discussions, their interests are too often neglected,” the letter says. “By fostering genuine full employment, the Federal Reserve can help combat discrimination and dramatically reduce the disproportionate unemployment faced by minority populations.”
The signatories include senators Elizabeth Warren of Massachusetts, Bernie Sanders from Vermont and Kirsten Gillibrand from New York; and representatives including Maxine Waters, the ranking member of the Financial Services Committee and John Conyers from Michigan. All Democratic members of the Congressional Black Caucus put their names to the letter. It was not signed by Republican lawmakers.
The letter is the latest sign of political pressure on the Fed from both sides of the party divide. Republicans have been calling for greater Congressional scrutiny over the Fed amid persistent concerns about the ultra-loose monetary policy stance it has pursued since the financial crisis. Democrats, on the other hand, have urged Ms Yellen to maintain low interest rates in pursuit of higher employment, and in her most recent hearings before Congress Ms Yellen faced a barrage of complaints about the uneven economic progress seen between different races and ethnicities.
Eleven of the 12 regional Federal Reserve Bank presidents are white and 10 of the 12 are men. All of the 10 current voting members of the Federal Open Market Committee, which sets monetary policy, are white, while four of them are women. Members of the Fed’s Board of Governors, who rank among the top rate-setters, are selected by the president and confirmed by the Senate, but the Board of Governors has a key role in selecting the Fed’s regional bank presidents.
A spokesperson for the Federal Reserve Board said: “The Federal Reserve is committed to fostering diversity — by race, ethnicity, gender, and professional background — within its leadership ranks. To bring a variety of perspectives to Federal Reserve Bank and Branch boards, we have focused considerable attention in recent years on recruiting directors with diverse backgrounds and experiences.”
The Fed said that minority representation on its reserve bank and branch boards had increased from 16 per cent in 2010 to 24 per cent in 2016, while the proportion of women directors has risen from 23 per cent to 30 per cent over the same period. Some 46 per cent of all directors are “diverse in terms of race and/or gender”, the Fed added.
The Fed in December lifted interest rates for the first time in nearly a decade. It has since kept them on hold as it weighs up conflicting evidence about the strength of the recovery. Referring to monetary policy, the letter from the lawmakers urges Ms Yellen to “give due consideration to the interests and priorities of the millions of people around the country who still have not benefited from this recovery”.
Jesse Ferguson, a Clinton campaign spokesman, said: “The American people should have no doubt that the Fed is serving the public interest. That’s why Secretary Clinton believes that the Fed needs to be more representative of America as a whole as well as that commonsense reforms — like getting bankers off the boards of regional Federal Reserve banks — are long overdue.”
By Sam Fleming
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