Liberals and conservatives blast the Fed
WISN 12 ABC - November 11, 2014, by Patrick Gillespie - The economy might be improving, but Federal Reserve chair Janet...
WISN 12 ABC - November 11, 2014, by Patrick Gillespie - The economy might be improving, but Federal Reserve chair Janet Yellen can't catch a break.
Conservatives in Congress demanded an audit of the Fed last month. Now liberals have their list of grievances.
A coalition led by the left-leaning Center for Popular Democracy has launched a "Fed Up" campaign. They say the Fed is out of touch with Main Street and isn't focusing enough on getting people back to work.
America's central bank has a dual mandate to keep prices of goods stable and get the economy to full employment.
The coalition sent a public letter to Yellen on Tuesday calling for "public engagement" in the selection of the replacements for two regional Fed Presidents who are resigning. Dallas Fed President Richard Fischer and Philadelphia Fed President Charles Plosser are leaving their posts soon.
Yellen will meet with three dozen coalition representatives on Friday.
The timing of the demands is a bit odd. Since taking over as Fed chair in early 2014, Yellen has repeatedly stressed that full employment and higher wages are among her top goals.
America's unemployment rate is now at a six-year low. The economy added another 214,000 jobs in October and is on track for its best year of jobs gains since 1999. Wages, however, have not improved since the recession.
"We continue to hear reports that the economy is recovering, but millions of workers and their families are still struggling, whether from involuntarily part-time hours, poverty wages, or a lack of earned sick time," said Ady Barkan, a staff attorney at the Center for Popular Democracy.
Both conservative and liberal groups say their aim is simply for more transparency at the Fed, although there is concern about politics impacting the central bank.
The Fed's decisions on interest rates which influence everything from mortgage rates to the bond market are intended to be free of outside influence.
In October, Sen. Ted Cruz, R-Texas, led the conservative critics and said the Fed should be audited by a Congressional oversight office. Two auditors already look at the Fed's finances every year, but Cruz wants closer scrutiny of whether the Fed made the right monetary policy choices.
Yellen and Cruz have not scheduled a meeting, although Yellen appears before Congress twice a year.
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Donald Trump: Evictor-in-chief
Landlord-in-chief Donald Trump wants to evict 800,000 people from the U.S. On September 5th, the Trump administration...
Landlord-in-chief Donald Trump wants to evict 800,000 people from the U.S. On September 5th, the Trump administration announced it intends to end the Deferred Action for Childhood Arrivals (DACA).
Many DACA recipients, employed in the construction industry, built the very buildings that made real-estate moguls like Trump rich.
Everyday, the people of New York City are fighting landlords and their racist policies. This past couple of weeks have been no exception. On Wednesday, Aug. 30, thousands turned out for a march to protect DACA. It was organized by 15 different community organizations, including 32BJ SEIU, Working Families Party, Make the Road New York, New York Immigration Coalition, United We Dream, Tenants and Neighbors, Churches United For Fair Housing (CUFFH), New York Communities for Change, Alliance for Quality Education (AQE), VOCAL NY, the Women’s March, and the Center for Popular Democracy. Thousands in cities and municipalities around the country also rallied and marched to defend DACA.
Read the full article here.
What working moms really need for Mother's Day this year
When Mother's Day became a national holiday in the U.S. more than a century ago, women were a relative rarity in the...
When Mother's Day became a national holiday in the U.S. more than a century ago, women were a relative rarity in the workforce. Today's mom, by contrast, is largely a working mom.
In half of American households, women are either the primary breadwinner or contribute more than 40 percent of the income. For most families, the added income from women going to work is the only thing that's kept family income steady, as individual worker wages have stagnated for the better part of four decades.
Read full article here.
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.
Starbucks Hasn’t Met Employee Promises, Report Says
Starbucks employees still endure irregular hours, insufficient rest and difficulties taking sick days, according to a...
Starbucks employees still endure irregular hours, insufficient rest and difficulties taking sick days, according to a new report, more than year after the company promised to improve labor conditions for its employees.
More than 200 baristas across the country responded to the survey that formed the basis of the report, which was released by the Center for Popular Democracy. About 25% of employees said they had been asked to close a store and open it the following morning, giving them little time to rest between shifts. Almost half said they received their schedule one week or less in advance, giving little time to plan for childcare or other needs. Two in five employees said they faced difficulties taking sick days.
Last year, the company promised to change conditions for its employees, which it calls “partners,” after a New York Times report documenting the struggles faced by many employees.
Source: Time
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
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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
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Coalición defiende ley que protege a trabajadores de la construcción
El Diario - April 16, 2014, by Mariela Lombard - Más de una veintena de organizaciones comunitarias y sindicatos se han...
El Diario - April 16, 2014, by Mariela Lombard - Más de una veintena de organizaciones comunitarias y sindicatos se han unido en una coalición para presionar para que no se reforme una legislación que protege la seguridad de los 1.5 millones trabajadores de construcción del estado de Nueva York.
Este mismo lunes un obrero cuya identidad aún no ha sido divulgada murió después de caerse de un andamio situado en una zona de construcción cercana a Penn Station, en Manhattan. Es la segunda muerte de este tipo que sucede este mes en la ciudad, después de que otro trabajador falleciera el pasado 2 de abril por la misma causa mientras laboraba en unas obras en el New York Dream Hotel de la calle 55.
“Estos trágicos accidentes demuestran por qué se deben mantener los más altos estándares de seguridad para los trabajadores de construcción”, dijo Valeria Treves, directora de la organización pro inmigrante NICE, que funciona también como centro de jornaleros. “La seguridad es especialmente importante para los trabajadores inmigrantes, porque muchos de ellos nos reportan que les encargan las tareas que más riesgo conllevan”.
De acuerdo a la Oficina de Estadísticas Laborales, el 60% de los obreros del estado que murieron por caídas en el trabajo entre 2003 y 2011 eran hispanos y/o inmigrantes. En la ciudad de Nueva York la cifra fue aún mayor, llegando al 74%.
Peter Ward, presidente de HTC, sindicato que agrupa a los trabajadores de hoteles, criticó a contratistas y compañías de seguros “sin escrúpulos” por estar cabildeando en Albany para reformar la conocida como “Ley de Seguridad del Andamio” (Scaffold Safety Law), alegando que eleva demasiado los costes de construcción y va en perjuicio de la creación de puestos de trabajo.“
Quieren que sea la responsabilidad de los trabajadores el mantener un lugar de trabajo seguro. La actual ley pone la responsabilidad donde corresponde: en los contratistas, que deben asegurarse que todo trabajador tenga el equipo correspondiente”, enfatizó Ward.
La ley obliga a empleadores y compañías de construcción a proveer equipamiento y entrenamiento de seguridad a todos sus empleados. Eso pretende evitar casos como el del obrero Cresencio Pantoja, quién hace siete años salvó la vida de milagro cuando se precipitó al vacío desde una altura de 23 pies mientras renovaba la fachada de una escuela de El Bronx, por no contar con un arnés de seguridad.
“Mi jefe estaba más preocupado de que se hiciera rápido el trabajo que de la seguridad de sus empleados. Muchos otros trabajadores tampoco tenían arneses de seguridad”, dijo Pantoja, que estuvo cuatro días en coma después del accidente y aún no ha podido volver a trabajar por las heridas. Se mantiene desde entonces con la indemnización que recibió de la constructora, uno de los derechos que garantiza la actual ley.
Otro participante en la coalición es el sindicato SEIU 32BJ, que representa a 120,000 trabajadores de servicios.
“Decenas de miles de hombres y mujeres, muchos de ellos inmigrantes, arriesgan su vida construyendo y reparando nuestra ciudad. Limpiar ventanas o trabajar en un andamio es muy peligroso”, señaló el presidente de la unión, Héctor Figueroa. “No entendería que nuestros funcionarios convirtieran este trabajo en algo aún más peligroso quitando las protecciones de la Ley de Seguridad del Andamio”.
Gary LaBarbera, presidente del Concejo de Construcción de Nueva York, apoya otra legislación introducida en la Asamblea y el Senado Estatal, denominada Ley de Transparencia de Seguros para Construcciones de 2014, que también dice ayudaría a mejorar la seguridad de los obreros.
“Esta ley deja abiertos los datos de los asegurados que nos permitirá analizar de forma transparente esta situación y encontrar soluciones para reducir los costos sin dejar de mejorar la seguridad”, señaló.La coalición ha lanzado una página web para llamar la atención sobre su causa: www.scaffoldsafetylaw.com.
Qué es la Ley de Seguridad del Andamio y qué protecciones ofrece a los trabajadores de construcción
La ley tiene su origen en 1885, cuando se empezaron a construir los grandes rascacielos en la Ciudad de Nueva York. Especifica que los contratistas y los dueños de las propiedades deben asegurarse de que los andamios, montacargas y otros dispositivos utilizados en laconstrucción y reparación de edificios, sean montados y operados de manera que se proteja la integridad de las personas empleadas para la tarea.
Cuando se producen heridas y muertes por la violación de estos términos, la ley dice que los contratistas y dueños son los únicos responsables y deben indemnizar a los perjudicados.Aquellos que quieren reformarla reclaman que se incluya una enmienda para que un jurado o árbitro judicial decida en cada caso si el pago por daños tiene que ser menor si se determina que también ha habido negligencia por parte del trabajador a la hora de seguir los procedimientos de seguridad. Estos opositores denuncian que la formulación actual de la legislación dispara los costos de los seguros.
Denuncie la falta de seguridad
Si un trabajador de la construcción observa fallos en las medidas de seguridad, el primer paso que recomiendan las organizaciones laborales es hablar con otros compañeros y reportarlo en grupo al supervisor. Si el supervisor no hace nada por solucionarlo, el siguiente paso es presentar una queja a la Administración de Seguridad y Salud Ocupacional (OSHA) para que lleve a cabo una investigación.
La queja se puede presentar en español rellenando un formulario online (www.osha.gov) o llamando al 1-800-321-OSHA para localizar la oficina más cercana.
Todos los empleados de construcción, independientemente de su estatus migratorio, tienen derecho a la seguridad en el lugar de trabajo.
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Trump Picks Monetary Expert for No. 2 Job at Federal Reserve
Trump Picks Monetary Expert for No. 2 Job at Federal Reserve
President Trump continued a sweeping remake of the Federal Reserve’s leadership on Monday by nominating Richard...
President Trump continued a sweeping remake of the Federal Reserve’s leadership on Monday by nominating Richard Clarida, a Treasury official in the administration of President George W. Bush, for the Fed’s second-ranking job.
Read the full article here.
Kashkari says Fed has ‘luxury’ of keeping rates low to spur job growth
Kashkari says Fed has ‘luxury’ of keeping rates low to spur job growth
Federal Reserve Bank of Minneapolis President Neel Kashkari said Wednesday that he doesn’t see much inflationary...
Federal Reserve Bank of Minneapolis President Neel Kashkari said Wednesday that he doesn’t see much inflationary pressure building, arguing that means the central banks has the “luxury” of keeping rates low to help boost continued job growth.
The comments came at a meeting between Kashkari and black community activists in Minneapolis, Minn. to discuss economic disparities between black and white communities. “When I look at the data, I don’t see much inflationary pressure, so we have the luxury of taking time to let the economy keep creating jobs,” Kashkari said to the group. “Everybody at the Fed wants the job market to keep healing and we would love to see more people getting back to work.”
Kashkari isn’t a member this year of Fed’s interest-rate setting committee, which has kept rates near zero since the financial crisis. Since raising its benchmark federal-funds rate to between 0.5% and 0.25% at the end of 2015, the central banks has held rates steady. Its next meeting is Sept. 20-21.
The event was organized by Minnesota Neighborhoods Organizing for Change, part of the Center for Popular Democracy’s Fed Up coalition, which advocates for keeping interest rates low to help boost employment in low-income communities.
An expanded version of this report appears on WSJ.com.
By SHAYNDI RAICE
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