Woman who confronted Jeff Flake on elevator: We connected because he's a father, I'm a mother
Woman who confronted Jeff Flake on elevator: We connected because he's a father, I'm a mother
The woman who confronted Republican Sen. Jeff Flake of Arizona in an elevator Friday about his upcoming vote for...
The woman who confronted Republican Sen. Jeff Flake of Arizona in an elevator Friday about his upcoming vote for Supreme Court nominee Brett Kavanaugh said the senator's decision to force a new investigation into the judge's past showed that "people who have the responsibility of making decisions for our country can actually listen to their conscience."
Ana Maria Archila told "CBS This Morning" Monday that in the interaction, which went viral on Friday, she and the senator were able to establish a human connection: "I connected to him because he's a father, I am a mother. This is not just about us today, not just about the politics of this moment; this is about the lives of the people we love so much."
Read the story and watch the video here.
Alaska NEA votes to oppose arming teachers
Alaska NEA votes to oppose arming teachers
Wuerth, who describes himself as an educator, activist, and writer, was among the teachers who marched with students...
Wuerth, who describes himself as an educator, activist, and writer, was among the teachers who marched with students during the “March for Our Lives” student walkout in March. The notice that was sent about the civil disobedience training that he will teach said that Jennifer Flynn Walker a trainer from Center for Popular Democracy -Director of Mobilization and Advocacy for CPD will also be a trainer and that actions they plan include congressional and senatorial offices.
Read the full article here.
Divest From Prisons, Invest in People—What Justice for Black Lives Really Looks Like
Divest From Prisons, Invest in People—What Justice for Black Lives Really Looks Like
Instead of addressing the roots of drug addiction, mental illness, and poverty, we’ve come to accept policing and...
Instead of addressing the roots of drug addiction, mental illness, and poverty, we’ve come to accept policing and incarceration as catch-all solutions. It’s time for a change.
Read the full article here.
Kamala Harris Fails to Explain Why She Didn’t Prosecute Steven Mnuchin’s Bank
Kamala Harris Fails to Explain Why She Didn’t Prosecute Steven Mnuchin’s Bank
FORMER CALIFORNIA ATTORNEY General Kamala Harris on Wednesday vaguely acknowledged The Intercept’s report about her...
FORMER CALIFORNIA ATTORNEY General Kamala Harris on Wednesday vaguely acknowledged The Intercept’s report about her declining to prosecute Steven Mnuchin’s OneWest Bank for foreclosure violations in 2013, but offered no explanation.
“It’s a decision my office made,” she said, in response to questions from The Hill shortly after being sworn in as California’s newest U.S. senator.
“We went and we followed the facts and the evidence, and it’s a decision my office made,” Harris said. “We pursued it just like any other case. We go and we take a case wherever the facts lead us.”
Mnuchin is Donald Trump’s nominee to run the Treasury Department, and served as CEO of OneWest from 2009 to 2015. In an internal memo published on Tuesday by The Intercept, prosecutors at the California attorney general’s office said they had found over a thousand violations of foreclosure laws by his bank during that time, and predicted that further investigation would uncover many thousands more.
But the investigation into what the memo called “widespread misconduct” was closed after Harris’s office declined to file a civil enforcement action against the bank.
Harris’s statement on Tuesday doesn’t explain how involved she was with the decision to not prosecute, or why the decision was made. She also would not say whether the revelations would disqualify Mnuchin for the position of treasury secretary. “The hearings will reveal if it’s disqualifying or not, but certainly he has a history that should be critically examined, as do all of the nominees,” Harris told The Hill. She added that she would review the background and history of all Trump cabinet nominees.
Senate Democrats have vowed to put up a fight over Mnuchin — even creating a website inviting homeowners to list their complaints against OneWest. And yet not one senator has commented publicly on the leaked memo, which received media coverage in Politico, Bloomberg, the New York Post, CBS News, Vanity Fair, CNN, CNBC, and other outlets.
The Intercept has reached out to half a dozen Senate Democratic offices, including those of Minority Leader Chuck Schumer and leading Mnuchin critics Bernie Sanders and Elizabeth Warren, receiving no response.
Sen. Tammy Baldwin, D-Wisc., retweeted the story, as did the Twitter account of the Democratic National Committee. But another DNC tweet just hours later hinted at the bind Democrats are in when it comes to using the information against Mnuchin. That tweet praised Harris’s swearing-in. Her decision not to prosecute may make her new colleagues wary of pursuing it.
Progressive groups have not been so reluctant. Three groups — the Rootstrikers project at Demand Progress, the Center for Popular Democracy’s Fed Up Campaign, and the California Reinvestment Coalition – have called for a delay of Mnuchin’s confirmation hearing until he publicly discloses all settlements and lawsuits OneWest has faced from its foreclosure-related activities, responds fully to all questions submitted by members of the Senate Finance Committee, and publicly discloses his role in obstructing the California attorney general investigation, or any others.
The California Reinvestment Coalition followed that up on Thursday by asking OneWest to release the obstructed evidence, which involved loan files held by a third party then known as Lender Processing Services (it’s now called Black Knight Financial Services). “That’s something the Senate Finance Committee should ask him for, prior to scheduling their hearing with him,” said Paulina Gonzalez, executive director of the California Reinvestment Coalition.
Mnuchin has already declined to answer a detailed list of questions from Finance Committee member Sherrod Brown, which Brown sent before the release of the leaked memo.
After The Intercept story was published, Mnuchin spokesperson Barney Keller called it “meritless,” and highlighted OneWest’s completion of a foreclosure review with the Office of the Comptroller of the Currency (which involved completely separate issues from the California inquiry) and what he claimed was OneWest’s issuance of over 100,000 loan modifications to borrowers.
“Memos like this belong in the garbage, not the news,” Keller said.
Meanwhile, the Alliance of Californians for Community Empowerment, an organizing group that made headlines in 2010 by protesting on Mnuchin’s front lawn over OneWest’s foreclosure practices, expressed disbelief that he could now become treasury secretary. “My family lived first hand the fraud and unethical behavior under his leadership when I was told to default before they could help me, and (was) instead pushed into foreclosure,” said Peggy Mears, a OneWest victim.
ACCE plans to ask incoming California Attorney General Xavier Becerra to take up the prosecution of OneWest based on the newly released evidence. And the group vowed to fight the Mnuchin nomination. “No one who oversaw the defrauding of thousands of homeowners should be allowed to serve watch over our country’s money,” Mears said.
By David Dayen
Source
What Arne Duncan Wrought
Last Friday, after U.S. Secretary of Education Arne Duncan announced his resignation as of the end of 2015, I heard ...
Last Friday, after U.S. Secretary of Education Arne Duncan announced his resignation as of the end of 2015, I heard President Barack Obama's assessment of him: “Arne’s done more to bring our educational system, sometimes kicking and screaming, into the 21st century than anybody else.” It is worth considering carefully what the president’s words mean in the context of the priorities, programs and operation of Duncan’s Department of Education.
In a recent and very moving New Yorker piece about the significance of the closure of New York’s storied Jamaica High School, his alma mater, Jelani Cobb considers education reform in the context of history:
Like "busing" and "integration," the language of today’s reformers often serves as a euphemism for poverty mitigation, the implicit goal that American education has fitfully attempted to achieve sinceBrown v. Board of Education. Both busing and school closure recognize the educational obstacles that concentrated poverty creates. But busing recognized a combination of unjust history and policy as complicit in educational failure. In the ideology of school closure, though, the lines of responsibility — of blame, really — run inward. It’s not society that has failed in this perspective. It’s the schools ... The onus shifted, and public policy followed. The current language of education reform emphasizes racial "achievement gaps" and "underperforming schools" but also tends to approach education as if history had never happened. Integration was a flawed strategy, but it recognized the ties between racial history and educational outcomes.
School policy ripped out of time and history: In many ways that is Arne Duncan’s gift to us. School policy focused on disparities in test scores instead of disparities in opportunity; a Department of Education obsessed with data-driven accountability for teachers but preferring “game-changing” innovation for itself and paying inadequate attention to oversight; the substitution of the consultant-driven, win-lose methodology of philanthropy for formula-driven government policy; school policy that favors social innovation, one charter at a time.
Such policies are definitely a break from the past. Whether they promise better opportunity for the majority of our nation’s children, and especially our poorest children, is a very different question.
School policy focused on disparities in test scores instead of disparities in opportunity.
Here is what a Congressional Equity and Excellence Commission charged in 2013, five years into Duncan’s tenure as Education Secretary:
The common situation in America is that schools in poor communities spend less per pupil — and often many thousands of dollars less per pupil — than schools in nearby affluent communities ... This is arguably the most important equity-related variable in American schooling today. Let’s be honest: We are also an outlier in how many of our children are growing up in poverty. Our poverty rate for school-age children — currently more than 22 percent — is twice the OECD average and nearly four times that of leading countries such as Finland.
Arne Duncan’s signature policies ignore these realities. While many of Duncan’s programs have conditioned receipt of federal dollars on states’ complying with his favored policies, none of Duncan’s conditions involved closing opportunity gaps. To qualify for a Race to the Top grant, a state had to remove any statutory cap on the authorization of new charter schools, and to win a No Child Left Behind waiver, a state had to agree to evaluate teachers based on students’ test scores. But Duncan’s policies never conditioned receipt of federal dollars on states’ remedying school funding inequity. Even programs like School Improvement Grants for the lowest scoring 5 percent of American schools have emphasized school closure and privatization but have not addressed the root problem of poverty in the communities where children’s scores are low.
A Department of Education obsessed with data-driven accountability for teachers but preferring “game-changing” innovation for itself and paying inadequate attention to oversight.
The nation faces an epidemic of teacher shortages and despair among professionals who feel devalued as states rush to implement the teacher-rating policies they adopted to win their No Child Left Behind waivers from the federal government. Even as evidence continues to demonstrate that students’ test scores correlate more closely with family income than any other factor, and as scholars declare that students’ test scores are unreliable for evaluating teachers, Duncan’s policies have unrelentingly driven state governments to create policy that has contributed to widespread blaming of the teachers who serve in our nation’s poorest communities.
However, Duncan’s Department of Education has been far less attentive to accountability for its own programs. In June, the Alliance to Reclaim Our Schools — a coalition of national organizations made up of the American Federation of Teachers, Alliance for Educational Justice, Annenberg Institute for School Reform at Brown University, Center for Popular Democracy, Gamaliel, Journey for Justice Alliance, National Education Association, National Opportunity to Learn Campaign and Service Employees International Union — asked Secretary Duncan to establish a moratorium on federal support for new charter schools until the Department improves its own oversight of the U.S. Department of Education’s Office of Innovation and Improvement, which is responsible for the federal Charter School Program. The Alliance to Reclaim our Schools cites formal audits from 2010 and 2012 in which the Department’s own Office of Inspector General (OIG) “raised concerns about transparency and competency in the administration of the federal Charter Schools Program.” The OIG’s 2012 audit, the members of the Alliance explain, discovered that the Department of Education’s Office of Innovation and Improvement and the State Education Agencies, which disburse the majority of the federal funds, are ill-equipped to keep adequate records or put in place even minimal oversight.
Most recently, just last week, the Department of Education awarded $249 million to seven states and the District of Columbia for expanding charter schools, with the largest of those grants, $71 million, awarded to Ohio, despite the fact that protracted Ohio legislative debate all year has failed to produce regulations for an out-of-control, for-profit group of online charter schools or to improve Ohio’s oversight of what are too often unethical or incompetent charter school sponsors. The U.S. Department of Education made its grant last week even though Ohio’s legislature is known to have been influenced by political contributions from the owners of for-profit charter schools.
The substitution of the consultant-driven, win-lose methodology of philanthropy for formula-driven government policy.
Title I is the federal civil rights program created in 1965 as the centerpiece of the Elementary and Secondary Education Act to equalize opportunity by sending federal money to schools serving a large number or high concentration of very poor children. The Title I formula has been a primary tool for equalizing educational opportunity as a civil right for every child. In 2009, however, Arne Duncan’s Department of Education began spending some Title I funds outside the formula program for competitions like Race to the Top. Because one-time grants cannot cover ongoing operations, school districts have used the money for technology or staff development but have hesitated to reduce class size or hire teachers. For example, an evaluation determined that consultants and grant writers collected 35 percent of School Improvement Grant Funds spent in Colorado between 2010 and 2012. Another serious problem with the federal competitive grant programs is that races with winners always have losers. Redirecting funds away from the Title I Formula and into competitive grants under Duncan’s leadership drove federal funds to a few winning states and created a host of losing states — and millions of children who lost out.
School policy that favors social innovation, one charter at a time.
Public education in the United States has historically been driven by a philosophy of expanding systemic inclusion. Over time public policy has been devised to require that schools address the needs of all children as a civil right. The policies that followed the Supreme Court decision in Brown v. Board of Education,for example, were designed to address past injustices that derived from racial segregation and poverty. The Individuals with Disabilities Education Act protected the rights of children with special needs. The policies of Arne Duncan’s Department of Education have instead favored a strategy of social innovation through the establishment of charter schools. The idea is that committed individuals, with grants from the government, design schools that will serve a few children, with the innovation injected back into the public schools. There is considerable evidence that many charters — especially the huge for-profit charter chains — have not innovated, that a philosophy of social innovation through charters (that serve about 6 percent of our nation’s 50 million children today) fails to consider the scale of our education challenges, that whatever innovation there has been has not spread widely, that charters have served primarily the children of parents who know how to play the school choice game, that considerable money from charter schools has flowed into private profits, and that the growth of charters in many city school districts has sucked out money and promising children and left students with serious disabilities, English language learners and the very poorest children including homeless children behind in what are becoming public school districts of last resort.
'One of The Most Basic, Promised Rights of Our Democracy'
At the very end of the 19th century, John Dewey wrote: “What the best and wisest parent wants for his own child, that must the community want for all of its children ... Only by being true to the full growth of all the individuals who make it up can society by any chance be true to itself.”
A hundred years later, Sen. Paul Wellstone (D-MN) told the students at Teachers College, Columbia University: “That all citizens will be given an equal start through a sound education is one of the most basic, promised rights of our democracy. Our chronic refusal as a nation to guarantee that right for all children ... is rooted in a kind of moral blindness, or at least a failure of moral imagination. ... It is a failure which threatens our future as a nation of citizens called to a common purpose … tied to one another by a common bond.”
In December 2010, just two years into Duncan’s tenure as Secretary of Education, I heard the Rev. Jesse Jackson indict Duncan’s education policies for abandoning the very idea of American public education that Dewey and Wellstone had described so eloquently: “There are those who would make the case for ‘a race to the top’ for those who can run. But ‘lift from the bottom’ is the moral imperative because it includes everybody.”
If, as President Obama says, Arne Duncan has “brought our educational system, sometimes kicking and screaming, into the 21st century,” I hope we will stop to reconsider. Has our society decided to strive for innovation and to abandon universal provision of services and equality of opportunity as overarching goals? And have we become satisfied to blame the teachers in our poorest communities instead of ourselves for the vast injustices that appear at school in the guise of the achievement gaps?
Source: Alternet
How Can We Combat Wage Theft And Protect Immigrant Workers?
How Can We Combat Wage Theft And Protect Immigrant Workers?
Every year, millions of workers suffer from wage theft when employers or companies do not pay them what they are owed...
Every year, millions of workers suffer from wage theft when employers or companies do not pay them what they are owed.
Read the full article here.
Banks on the Run (Continued)
The Nation - April 30, 2013 - You can’t talk about poverty without talking about the practices of the big banks,...
The Nation - April 30, 2013 - You can’t talk about poverty without talking about the practices of the big banks, including their continuing refusal to stem the foreclosure crisis through mortgage principal reductions.
Consider this: Latinos lost 66 percent of their household wealth after the housing bubble burst, and African-American households lost 53 percent. Nearly 12 million families—disproportionately people of color—have either lost their homes or are currently in foreclosure, and another 16 million are underwater, owing more on their mortgages than their homes are worth.
Communities are decimated by boarded up houses and vacant lots, declining property values and the consequent loss of state and local revenues, and fewer opportunities to weather and recover from financial hardship. A new study from the Urban Institute indicates that white families now average six times the wealth of African-American and Latino families.
So when US Bank executives fled Minneapolis two weeks ago to hold their annual shareholders meeting in what they believed would be friendlier confines in Boise, it was important that activists from Minnesota and Oregon traveled to join Idahoans in an effort to hold the bank accountable. Then last week, Wells Fargo bankers traveled from San Francisco to Salt Lake City for their shareholders meeting, and activists again weren’t deterred—they came from California, Colorado and New York to stand with local groups and protest the bank’s practices.
“Wells Fargo moved the shareholders meeting to Salt Lake because last year there were 3,000 people in the streets in San Francisco,” said Maurice Weeks, campaign coordinator for the Alliance of Californians for Community Empowerment (ACCE), which had fifteen members make the eleven-hour trip to Utah. “We wanted them to know that they can’t hide from us.”
ACCE members attended the shareholders meeting as legal proxies. They were joined by members of the Neighborhood Economic Development Advocacy Project (NEDAP) from New York, the Colorado Student Power Alliance and local groups from Salt Lake City that were focused on Wells Fargo’s investments in private prisons and the impact on communities of color.
Several ACCE members in attendance were facing immediate foreclosures and welcomed the opportunity to tell Wells Fargo CEO John Stumpf—who was paid $22.87 million last year, more than any other banker—that they hadn’t been given a fair shake.
“We’re talking about folks who could pay their mortgages and stay in their houses with a modification, and Wells refuses,” said Weeks. “We’ve had situations where a HUD counselor tells our members that they qualify and Wells still denies a modification.”
More broadly, ACCE was there to demand that Wells commit to pursuing principal reductions—reducing the amount owed on a mortgage so that it reflects the fair market value of the property—wherever they are legally able to do so. A recent report from ACCE, the Center for Popular Democracy and the Home Defenders League suggests that foreclosing on the more than 11,600 California homes currently in Wells’s foreclosure pipeline—which are concentrated in poor and non-white communities—would cost the state approximately $3.3 billion due to the decreased value of the foreclosed properties, decreased value of homes in the surrounding communities and lost tax revenues. In contrast, a comprehensive program of principal reduction would stabilize households, increase tax revenues and boost the economic vitality of distressed communities. (Modifications also happen to be better for the investors who hold the mortgage, but unfortunately banks that service the mortgages—like Wells Fargo—can often make more money by foreclosing.)
A second key demand by ACCE members was that Wells Fargo report its data on principal reductions, short sales and foreclosures by race, income and zip code. Last year, the bank reached a $175 million settlement with the Department of Justice for allegedly charging African-American and Latino borrowers higher rates and fees and steering them into subprime loans when they should have qualified for regular loans.
“Our members want to make sure Wells isn’t still preying on communities of color,” said Weeks.
NEDAC presented a resolution for an independent investigation of Wells Fargo’s business practices in order to ensure that they don’t violate any fair lending or fair mortgage laws. Although the resolution was voted down, Weeks said it received more discussion than any other resolution presented to the shareholders.
“ACCE members—but also people we didn’t know—were all voicing concerns about Wells Fargo’s mortgage practices,” said Weeks.
According to Weeks, when Stumpf tried to move onto “business as usual,” Makayla Major, an ACCE member from East Oakland, stood up and shouted, “John Stumpf, you’re a liar and a crook. You are stealing too many homes in my neighborhood!” Weeks said that the room was lined with “forty or fifty” security guards and that “six or seven” immediately moved in to “make her be quiet.”
Then ACCE member Manuela Alvarez—who has been trying unsuccessfully to modify her subprime loan since her husband was injured on the job—said, “You are trying to steal my home, like you’ve stolen the homes of tens of thousands of other hard-working families. It’s time for you to be held accountable!”
She, too, was quickly surrounded by security.
ACCE member Melvin Willis then began reading a “Citizens Arrest Warrant” for Stumpf for “the following crimes: illegally foreclosing on millions of homeowners nationwide; intentionally targeting communities of color with predatory, high-cost loans; and gouging students with predatory student loans—usury.”
“He was immediately swarmed and at that point we were all escorted out of the room and the hotel,” said Weeks. “But John Stumpf and the shareholders definitely heard our message, and we made it clear that they can’t ignore these issues.”
Wells Fargo made $19 billion in profits last year and record profits last quarter. None of this would have been possible without the bank bailout and continued borrowing of taxpayer money at zero percent interest from the Federal Reserve (which Wells Fargo and the other big banks then turn around and loan to state and local governments at much higher rates).
ACCE and its allies showed up in Salt Lake City to take a stand against a wealth-stripping machine. There will be more actions ahead against Bank of America (May 9), Sallie Mae (May 30) and Walmart (June 7). Sign up to stay informed here.
“The message from the banks is that the foreclosure crisis is over, and a lot of the general public is hearing that,” said Weeks. “But we see on the ground that that’s far from true, and that Wells Fargo continues to profit at the expense of our communities. That’s why we’re keeping up the pressure of this campaign. We’re going to fight for our communities as hard as we possibly can.”
Source
What does it mean to be an American?
What does it mean to be an American?
The climate in the U.S. hasn't changed much since that incident four years ago. Fulbright still fights for the same...
The climate in the U.S. hasn't changed much since that incident four years ago. Fulbright still fights for the same causes, helping people in marginalized communities, but she has taken a more policy-based approach. Fulbright is the Texas state coordinator for Local Progress, a project under the New York-based nonprofit Center for Popular Democracy.
Read the full article here.
LA is Taking On the Fair Workweek Fight - It Could Change Your Life
LA is Taking On the Fair Workweek Fight - It Could Change Your Life
The Center for Popular Democracy did an extensive national study of retail workers in 2017, surveying over 1,000 people...
The Center for Popular Democracy did an extensive national study of retail workers in 2017, surveying over 1,000 people working in retail and finding that despite statewide minimum wage gains and some voluntary reforms by employers, many people struggle to achieve economic stability due to significant income volatility and wage stagnation.
Read the full article here.
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...
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
Source
3 days ago
3 days ago