Blow up the deficit!
As most working Americans could tell you, the economy is still not doing well. Right now, political pressure to fix...
As most working Americans could tell you, the economy is still not doing well.
Right now, political pressure to fix this tends to focus on the Federal Reserve. When the Fed hikes interest rates to curb inflation, it also risks squashing job growth. So activists like the Fed Up campaign are pushing Fed officials to lay off their recent interest rate increases. And a bevy of economists just released a letter urging the Fed to target inflation higher than 2 percent.
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California’s Emeryville is third city to pass Fair Workweek policy
California’s Emeryville is third city to pass Fair Workweek policy
EMERYVILLE, Calif. – On Oct. 18, this city became the third in the nation to pass a Fair Workweek policy. The City...
EMERYVILLE, Calif. – On Oct. 18, this city became the third in the nation to pass a Fair Workweek policy. The City Council passed the ordinance unanimously at its first reading, following testimony at a pre-meeting press conference and during the meeting itself, by those most affected.
Under the new policy, employers will have to give workers their schedules two weeks in advance, compensating them for last-minute changes. When more hours become available, current workers will have priority so they can get closer to fulltime work.
The council must confirm its action with a second vote, scheduled for Nov. 1. The new law, which will affect some 4,000 fast food and retail workers, is to become effective in July 2017.
Almost two years ago, San Francisco’s Board of Supervisors passed the first such measure, the Retail Workers Bill of Rights, and just last month, Seattle followed suit http://www.peoplesworld.org/article/tale-of-two-cities-yes-vs-no-on-fair....
New York City may be next: Mayor Bill de Blasio and City Council members are pressing legislation to require employers to give some 65,000 hourly fast food workers a two week notice of changes in their shift assignments. However, the bill doesn’t extend such requirements to retail stores or full-service restaurants.
Emeryville, a small city across the Bay from San Francisco with a large concentration of retail stores, already has the country’s highest minimum wage, with large employers required to pay their workers at least $14.82 per hour. Smaller businesses must pay at least $13 per hour.
At the state level, earlier this year California passed a new minimum wage law with a path to a $15 hourly minimum.
At the press conference, low wage workers, local residents, community and labor organizations, faith leaders and academic researchers told of the many challenges faced by retail workers who must deal with constantly shifting and unpredictable schedules and variable numbers of work hours.
Moriah Larkins, an Emeryville retail worker and activist with the Alliance of Californians for Community Empowerment (ACCE) who MC’d the press conference, told of her own experience working six days a week for a “bad apple” employer. “And on my days off they would call me in, and I have my son, who was two years old at the time.”
At first, Larkins said, she used to scramble and pay extra for last minute child care. But as she realized her extra hours, and less time for her son, were making him unhappy, she started refusing the extra shifts. After that, her hours, which had been 32 to 40 per week, were cut in half.
“Now,” she said, “I work for a ‘good apple.’ I work 28 hours per week, I can pay all my bills, I can spend time with my son and finish my nursing degree.”
In a conversation after the press conference, Larkins said she hoped the ordinance would pass “without exceptions.” She and others are warning that before the final vote Nov. 1, the California Retail Association is trying hard to weaken the measure.
Other retail and fast food workers described their experiences, including a past employer who paid subminimum wages and another who fired a worker after “forgetting” he had accepted her timely request for a day off.
The new ordinance has been in the making for a while. In May, Emeryville Mayor Dianne Martinez and Councilmember Ruth Atkin wrote an op-ed published by the San Francisco Chronicle, in which they said a regional fair workweek was needed to assure workers “stable schedules so they can pay the bills, live healthier lives, “and contribute more to our communities.
A recent study, Wages and Hours: Why workers in Emeryville’s service sector need a fair workweek, conducted by ACCE, the East Bay Alliance for a Sustainable Economy (EBASE), and the Center for Popular Democracy found that in a sample of more than 100 frontline Emeryville retail workers, some 68 percent had part-time schedules, 82 percent were people of color, eight out of 10 had variable schedules and nearly two-thirds only got their schedules a week or less in advance. Over two-thirds said they wanted to work more hours, while over half said they were scheduled for “clopening” shifts, or back-to-back closings and openings with less than 11 hours off.
The study concluded that employers need to commit to predictable, flexible and responsive schedules that allow for adequate rest.
At the Oct. 18 press conference, EBASE Deputy Director Jennifer Lin said, “Providing a fair work week is not only good for workers, it’s good for business, too.” With many retailers already scheduling in advance, she said, the new ordinance will help level the playing field, and stable schedules and more adequate hours also reduce turnover and absenteeism.
In an article earlier this month in The Nation magazine, author Michelle Chen noted that the Fight for $15 and Fair Workweek struggles are “converging on sectors that used to be known as bastions of dead-end jobs.” The next step, she said, is “to organize, and unionize, to give workers real collective bargaining leverage over their wages and working conditions. Work-life balance comes by shifting the power balance on the job, so that workers have the final say over when they’re on call.”
By Marilyn Bechtel
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Scaffold Law Debate Heats Up Over Dueling Reports on Safety and Costs
Legislative Gazetter - April 21, 2014, by Matthew Dondiego - A new report released last Thursday by a pro-labor, pro-...
Legislative Gazetter - April 21, 2014, by Matthew Dondiego - A new report released last Thursday by a pro-labor, pro-immigrant rights advocacy group criticizes the construction industry for using what they call misleading figures and cherry picking data to lobby against the state's controversial "scaffold law."
The scaffold law is a century-old law in place to protect worker's rights. Under the law, contractors and property owners serving as contractors are responsible for providing a safe work environment for their employees or become liable for any on-site injuries and accidents.
Opponents of the law point out that contractors are fully liable for workers' injuries even if it is determined the worker is at fault. Opponents say it is outdated and causes construction costs to rise due to the increased costs of insurance premiums. Supporters of the law say it provides common sense protection for workers performing a dangerous job and maintain that contractors are not held liable in court if proper safety precautions are in place.
The new report, titled Fatally Flawed and released by the Center for Popular Democracy, which is supported financially by the New York State Trial Lawyers Association and labor unions, is a scathing criticism of a Rockefeller Institute study — which is frequently referenced by the construction industry — that concluded the scaffold law resulted in an additional 667 work site injuries and adds about $3 billion in additional costs to construction projects in New York state each year.
According to last week's report, the oft-cited Rockefeller Institute study is "fundamentally biased" and calls the New York Civil Justice Institute, which paid $82,800 to commission the Rockefeller study, "a poorly-disguised front group" for the construction industry aligned Lawsuit Reform Alliance of New York. According to the report, the Lawsuit Reform Alliance of New York and the New York Civil Justice Institute share the same address, 19 Dove St, Suite 201, Albany, N.Y., and the same telephone and fax numbers.
"This [Rockefeller Institute] study was bought and paid for by the construction industry," Josie Duffy, a staff attorney for the Center for Popular Democracy. "This is a direct result of people who do not like the scaffold law for business reasons, paying for this report to be released."
On the claim that the scaffold law contributed an additional 667 injuries, the report says the Rockefeller Institute "confuses correlation with causation."
This claim, according the Center for Popular Democracy, is based on worker injury rates in "sub-sectors and non-construction industries," such as warehouse work, transportation, roofing, residential building construction, manufacturing, wholesale trade and utilities industries, and are compared to the rest of the nation.
"The authors assert that these differences are greater in New York and attribute these greater differences entirely to the scaffold law," the new report reads. "There is simply no basis to conclude that the scaffold law is the cause of these differences. Indeed, the authors provide no justification for comparing injury rates in construction with injury rates in less hazardous industries, or using those differences as a proxy for the impact of the scaffold law."
Duffy bluntly says that the scaffold law does not cause an increase in workplace accidents. She says the Rockefeller Institute's study, which was released in February, lacks factual evidence that the law makes work sites more dangerous and "that number is coming from nowhere."
"To me, that is the most egregious part of this whole report," Duffy said.
Despite the strong words used in the report and by Duffy, Tom Stebbins, executive director of the Lawsuit Reform Alliance of New York, says that the Rockefeller report "conclusively" found the law made construction sites more dangerous for workers.
He said that absolute liability for contractors creates "perverse incentives" for workers.
"Workers are not incentivized because they are never held responsible and contractors are not incentivized because they are guilty in nearly every circumstance," Stebbins said. "Only by apportioning liability to fault, as is done in every other state and every other part of our civil justice system, can we maintain balance and improve safety."
According to Stebbins, the report released by the Center for Popular Democracy last week is a "political hit piece, with no statistical merit or actual research of any kind. They cannot get researchers to back up their opinions, because the facts do not support the scaffold law."
Stebbins argues that absolute liability causes the insurance markets to treat sites with sterling safety records the same as companies with less stringent safety precautions. Opponents of the scaffold law say that absolute liability holds the company liable for the worker injuries regardless of who is actually found to be at fault.
Duffy however, said that companies are not automatically found to be liable for injuries sustained by workers on construction sites and are typically safe from injury-related costs so long as they had the proper safety precautions in place.
"What absolute liability means is that you have to pay for the costs of the injuries … and that's only going to happen if you're breaking the law," she explained. "What this law says is there has to be some level of protection for workers."
According to Duffy, under the law companies still hold the right to argue their case in court and they are not automatically found responsible for every injury.
"It's important that employers get to have their voices heard in law, I support that this law allows people to get their voices heard on both sides and that's a very, very real protection," she said "Nothing happens automatically in this law and you can't even be taken to court unless your breaking the law in the first place."
The report also criticizes the Rockefeller Institute for failing to take into consideration certain conditions in New York that may affect the injury rates in the state. Such measures include New York generally has more high-level construction works which may drive up injury rates and New York construction workers are more likely to be union workers and therefore are more likely to report injuries. According to the report, Texas has one of the lowest construction injury rates yet is among the highest in construction fatality rates.
According to the report, "Such low-injury-rate states have artificially suppressed the US injury rate, which the paper nonetheless compares to the New York rate."
"This is a law that protects construction workers. Construction workers are doing a really difficult job and they're doing it every day and they are growing our economy," Duffy said. "Construction workers are literally the bread and butter of what makes New York City, New York City … and this is a state of construction."
Assemblyman Francisco Moya, a Democrat from Queens, said the Center for Popular Democracy's report "injected some truth into the politically-charged debate surrounding the scaffold law."
"Many untruths have been lobbed at the scaffold law in an attempt to dismantle it. This report makes clear that those untruths have unfortunately been crafted by parties who have a financial interest in watering down workplace protections," Moya, a staunch supporter of the law, said in an e-mail. "When it comes to life and death decisions about workplace safety, there's no room for politics. It has to be about facts. And the fact is that the Scaffold Law protects workers. That's the real bottom line."
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April 15: National Protests on Tax Day Demand Trump Release His Tax Returns
April 15: National Protests on Tax Day Demand Trump Release His Tax Returns
Working Families Party, Thousands to Protest in NY, DC and Nationwide Rallies Demanding Trump Release His Tax Returns...
Working Families Party, Thousands to Protest in NY, DC and Nationwide Rallies Demanding Trump Release His Tax Returns
WASHINGTON - Today, the National Working Families Party announced their participation in the Tax Day March. President Trump’s financial ties to Russia are causing growing questions for both Democrats and Republicans. As a result, thousands of people plan to gather in Washington, D.C., on Saturday, April 15, 2017, at 11 a.m. The Tax March was an idea that started on Twitter, but has gained momentum on and offline, with over 135 marches planned in cities across the country.
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Despair over Supreme Court immigration ruling turns to optimism, promises of action
Despair over Supreme Court immigration ruling turns to optimism, promises of action
The outrage sparked by the defeat of President Obama’s effort to shield millions of immigrants from deportation...
The outrage sparked by the defeat of President Obama’s effort to shield millions of immigrants from deportation morphed Friday into a promise of political action.
“This will be my first presidential election and I will spend all my time, my sweat, my being also registering voters,” said Marian Magdalena Hernandez, an El Salvadorian immigrant who now lives in Long Island.
Hernandez was among nearly 100 immigrants and supporters who gathered at Foley Square to voice their anger over the Supreme Court’s failure to greenlight Obama’s immigration program.
The President’s 2014 executive action called for up to 4 million undocumented immigrants — primarily parents of U.S. citizens — to be spared from deportation and made eligible for work permits.
But the Supreme Court was deadlocked in its decision on the proposal, leaving in place a lower-court decision that blocked Obama’s plan on the grounds that he exceeded his authority.
“In November when elections come, we're going to remind people what we're made of,” said Eliana Fernandez, 28, an Ecuadorian immigrant who now lives in Long Island and workes as a case manager for the nonprofit Make the Road NY.
Protesters at the midtown rally carried signs that read “Today we suffer ... in November we are voters!”
Shayna Elrington, the child of Central American immigrants, called the Supreme Court’s deadlock a “travesty of justice.”
If you want immigration reform, you must fight for it
“Our government is broken. It is not working and we are going to make a stand,” said Elrington, 34, of the Center for Popular Democracy. “We're going to fight. We may have lost yesterday but we did not lose the battle."
By PATRICJA OKUNIEWSKA & RICH SCHAPIRO
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Fed, Eager to Show It’s Listening, Welcomes Protesters
Fed, Eager to Show It’s Listening, Welcomes Protesters
WASHINGTON — When a dozen protesters in green T-shirts showed up two years ago at the Federal Reserve’s annual...
WASHINGTON — When a dozen protesters in green T-shirts showed up two years ago at the Federal Reserve’s annual conference in Jackson Hole, Wyo., they were regarded by many participants as an amusing addition.
Two years later, they have won a place on the schedule.
The protesters, who want the Fed to extend its economic stimulus campaign, are scheduled to meet on Thursday with eight members of the central bank’s policy-making committee. At the start of a conference devoted to esoteric debates about monetary policy, officials will hear from people struggling to make ends meet.
The Fed’s effort to show that it is listening to its critics reflects the central bank’s broader struggle to find its footing in an era whose great challenge is not the strength of inflation, but the weakness of economic growth.
Officials are wrestling with the limits of monetary policy, the focus of the conference, even as they try to address simmering discontent among liberals who want stronger action and among conservatives who say the Fed has done too much.
The meeting also represents an unlikely victory for Ady Barkan, the 32-year-old lawyer who decided in 2012 that liberals should pay more attention to monetary policy. He now heads the “Fed Up” campaign, a national coalition of community and labor groups that plans to bring more than 100 protesters to Jackson Hole.
“We want to make sure that regular voices are being heard,” Mr. Barkan said in beginning the campaign two years ago. The American economy, he said, was not working for all Americans — particularly not for blacks and other minority groups.
Fed officials so far have chosen to accommodate the group by applauding its efforts at public education, not by seriously engaging its arguments that interest rates should be raised more slowly. Esther George, the president of the Federal Reserve Bank of Kansas City, which hosts the Jackson Hole conference, arranged Thursday’s meeting with the activists. She said in an interview earlier this year that the Fed must balance job growth with other issues, like financial stability.
“I am completely sympathetic,” she said of the group’s concerns.
But she cautioned that the Fed’s powers were limited. Pushing too hard to lower unemployment could lead to higher inflation, or speculative bubbles, that would force the Fed to raise interest rates more quickly. The resulting economic volatility could end up doing more harm than good.
“The Federal Reserve has become somehow the answer to many problems far beyond what we can actually address,” she said. “I wish I could fix all of it with a tool like monetary policy. But we can’t.”
Even Mr. Barkan’s supporters acknowledge the long odds. Fed Up’s budget has grown to $2 million this year, from $145,000 in 2014, mostly from Good Ventures, a nonprofit foundation created by the Facebook co-founder Dustin Moskovitz, which describes the campaign as “relatively unlikely to have an impact.”
Fed Up’s more visible success has come in pursuit of a longer-term goal: advocating for changes in the Fed’s governance that could eventually shift its decision-making.
In a report published earlier this year, Fed Up highlighted the Fed’s lack of diversity. There are no blacks or Hispanics among the 17 officials on the Fed’s policy-making committee of 12 regional bank presidents and five governors. No black or Hispanic has ever served as president of a regional reserve bank.
Moreover, the report said that whites composed 83 percent of the directors of the Fed’s 12 regional reserve banks, who select the regional presidents.
Narayana Kocherlakota, former president of the Federal Reserve Bank of Minneapolis, said that the absence of minorities was “quite troubling.”
“Those kinds of persistent absences of key demographic groups really suggest that the appointment process, there is something that can be fixed there,” he said.
Fed Up also argued that bank executives should not sit on regional Fed boards. Under current law, bankers hold three of the nine seats on each board. The regional reserve banks are owned by the commercial banks in each district, although they operate under the authority of the Fed’s board, a government agency whose members are nominated by the president and confirmed by the Senate.
In May, 127 congressional Democrats signed a letter to Janet L. Yellen, the Fed chairwoman, calling attention to the Fed’s lack of diversity and the influence of the banking industry.
On the same day, a spokesman for Hillary Clinton’s presidential campaign said in a statement that “Secretary Clinton believes that the Fed needs to be more representative of America as a whole and that common sense reforms — like getting bankers off the boards of regional Federal Reserve Banks — are long overdue.”
Two months later, the Democratic Party adopted a campaign platform that included similar language, the first time in recent decades it mentioned the Fed.
Andrew Levin, an economist at Dartmouth College, said Fed Up’s greatest chance for significant influence was not in framing the current debate about interest rates, but in changing the Fed itself. He co-wrote a report that the campaign published Monday detailing a proposal to make the Fed a fully public institution.
“Having a diverse set of policy makers — including African-Americans and Hispanics — will influence the Fed’s decision-making,” he said. “And it should. The public should have confidence that the public is well represented at the F.O.M.C. table.”
Mr. Barkan started the “Fed Up” campaign after joining the Center for Popular Democracy in 2012, a few years after graduating from Yale Law School. He had read a 2011 article by the journalist Matthew Yglesias, titled “Fed Up.” Unions and other advocacy groups were focused on minimum-wage laws. Mr. Barkan was compelled by the argument that they also should be focused on interest rates.
“Even if they move once less over the course of several years, that’s still massive,” he said earlier this year. “The number of people who have jobs because of that, or higher wages, that dwarves a $15-an-hour wage increase in a smaller city.”
The campaign has gained traction in part because the Fed is eager to show that it is listening. During the first protest two years ago, Mr. Barkan approached Ms. Yellen, who listened politely and invited him to bring a group of workers to Washington, where she met with them in November 2014.
Lael Brainard, a Fed governor who plans to attend the Thursday meeting, made a point last year of visiting the parallel conference Mr. Barkan staged on the sidelines of the Fed event. And Mr. Barkan’s group has now succeeded in persuading each of the regional reserve presidents to meet with groups of local workers.
Neel Kashkari, the new president of the Federal Reserve Bank of Minneapolis, met with Fed Up’s local affiliate, Neighborhoods Organizing for Change, this month, telling the group that he shared their concern about the persistence of higher rates of unemployment among blacks and other minority groups.
Mr. Kashkari also accepted an invitation to spend a day with one of the group’s members, Rosheeda Credit, a Minneapolis resident who described the struggles she and her boyfriend faced to cover the cost of rent and child care for their five children.
“Walking a day in somebody else’s shoes is actually — it makes the anecdotes that much more real,” Mr. Kashkari, who arrived at the bank in January, told reporters after the meeting. “It influences how I think about the problems we face.”
By BINYAMIN APPELBAUM
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Newark Police first in N.J. to refuse to detain undocumented immigrants accused of minor crimes
The Star-Ledger – August 15, 2013, by James Queally - The Newark Police Department has become the first law enforcement...
The Star-Ledger – August 15, 2013, by James Queally -
The Newark Police Department has become the first law enforcement agency in New Jersey to refuse the federal government’s requests to detain people accused of minor crimes who are suspected of being in the U.S. illegally, according to immigration advocates.
In enacting the policy, Newark becomes the latest city to opt out of the most controversial part of the “Secure Communities” program implemented by the U.S. Immigration and Customs Enforcement Agency in 2011, which allows the agency to ask local police to hold any suspect for up to 48 hours if their immigration status is called into question.
In the past two years, cities and states across the nation, including New York City, Chicago, Los Angeles, Massachusetts and Connecticut, have adopted similar policies. Earlier this week, Orleans Parish sheriffs also said they will stop honoring the detainer requests.
“Secure Communities” was designed to enhance ICE’s ability to track dangerous criminals who are undocumented immigrants. Under the policy the Department of Homeland Security reviews fingerprints collected by local police during an arrest, which then allows ICE to issue the detainer requests. Immigration advocates, however, argue the policy has been misused, leading to the deportation of people accused of low-level offenses and inhibits collaboration between police and people who are undocumented.
Udi Ofer, the executive director of the state chapter of the ACLU, said Newark’s policy was a collaborative effort between the city, the ACLU and several immigrants rights groups.
“With this policy in place, Newark residents will not have to fear that something like a wrongful arrest for a minor offense will lead to deportation,” said Ofer. “It ensures that if you’re a victim of a crime, or have witnessed a crime, you can contact the police without having to fear deportation.
Newark Police Director Samuel DeMaio signed the directive on July 24. Newark will no longer comply with ICE requests to hold suspects accused of crimes like shoplifting or vandalism.
City police will continue to share fingerprint information with federal investigators, according to DeMaio, who said the department received only eight detainer requests in 2012.
“If we arrest somebody for a disorderly persons offense and we get a detainer request we’re not going to hold them in our cell block,” he said. “I don’t know if we’ve ever gotten a detainer request on a guy with a misdemeanor.”
An ICE spokesman declined to comment directly on the policy. But immigrants rights advocates hailed the move as an olive branch to undocumented immigrants, who often hesitate to cooperate with police who are investigating serious crimes in their community for fear of deportation.
That fear has been evident in a series of community meetings in the Newark’s immigrant-heavy Ironbound neighborhood, which began after “Secure Communities” was implemented in New Jersey last year, said East Ward Councilman Augusto Amador.Amador has been present for a number of those sessions, and said the culture of fear created by the program stopped many undocumented immigrants from reporting crimes committed against them in the area.
“I agree totally with the policy,” he said. “The Newark Police Department already has enough problems to worry about, rather than being involved with matters that don’t belong to them.”
A representative for Mayor Cory Booker’s administration said the policy is a smart move that strengthens ties with city residents and maintains a relationship with ICE.
“The Newark Police Department’s policy improves community relations, while saving taxpayer money and ensuring that city, state, and federal officials continue to share critical information needed to prosecute criminals and keep our streets safe,” said city spokesman James Allen.
Nisha Agarwal, deputy director of the Center for Popular Democracy, said ICE has misused the “Secure Communities” policy in other areas, and Newark’s directive will slowdown the agency if it attempts to start deportation proceedings against someone for a small-scale offense.
“They often will (issue) detainers in cases where it’s really minor, when the person is not a threat to society in any way,” she said.
New Jersey has one of the country’s largest immigrant populations and the state is home to more than 500,000 undocumented immigrants, according to Amy Gottlieb, director of the American Friends Service Committee. Gottlieb said she hopes to see other New Jersey law enforcement agencies echo Newark’s policy.
“Any detainer policy where people are aware that the police department is acting in support of the immigrant community is going to be helpful for police and immigrant relations,” she said.
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Puerto Rico Activists Crash Federal Reserve Panel With Creative Protest
Puerto Rico Activists Crash Federal Reserve Panel With Creative Protest
NEW YORK — Over a dozen activists descended on a building where Federal Reserve chair Janet Yellen and her three living...
NEW YORK — Over a dozen activists descended on a building where Federal Reserve chair Janet Yellen and her three living predecessors were speaking on Thursday to demand that the Fed bail out Puerto Rico’s cash-strapped government.
The demonstrators, who are affiliated with the progressive Fed Up coalition, distributed Puerto Rican flags and empanadas as Puerto Rican music played outside Manhattan’s International House, a student residence. Yellen was there for an unprecedented panel discussion alongside past Fed chairs Ben Bernanke, Paul Volcker and Alan Greenspan, who participated via videostream.
The activists were joined by Puerto Rican lawmaker Manuel Natal, who was in town to participate in a panel discussion hosted by City Council Speaker Melissa Mark-Viverito on Friday.
“They have two mechanisms under their authority to help Puerto Rico: one is to provide a bailout to Puerto Rico similar to the one they did to banks, the same banks that are now in Puerto Rico making a fortune out of our fiscal situation,” Natal said. “And the second would be to buy our debt” and charge Puerto Rico interest rates that are lower than the market would offer.
The activists claim that since the Fed had the authority to buy trillions of dollars of bad debt from Wall Street banks after the 2008 financial crisis, it can do the same for the debt of Puerto Rico.
Economic observers with knowledge of the Fed’s functions consider that argument dubious. Joseph Gagnon, a senior fellow at the Peterson Institute for International Economics who was an economist at the Fed Board of Governors for many years, said that the Fed is not allowed to buy municipal debt — of the kind Puerto Rico owes — that comes due over a period longer than six months. He also said such a purchase would be inconsistent with the Fed’s dual mandate of maintaining price stability and full employment.
The Fed has “never bailed out any insolvent entity as far as I know. They always demand collateral sufficient to cover any loan,” Gagnon said, as the Fed did when it provided aid to major U.S. banks.
Natal, the lawmaker, also believes some of Puerto Rico’s debt has been issued unconstitutionally and can therefore be nullified.
Greg Williams, a spokesman for Jubilee USA, a coalition of faith-based groups that advocates for global debt relief policies, declined to endorse a Fed bailout, but suggested the Fed could broker a deal instead.
“We support a proposal where the Fed facilitates a restructuring process,” Williams said.
More important than the details of the demonstrators’ demands, however, is the protest’s political symbolism in the midst of a heated battle over Puerto Rico’s future. The demonstration was perhaps the most colorful in a series of political moves and counter-moves by the Puerto Rican government and its sympathizers on one hand and the commonwealth’s bondholders and their allies on the other. Both seek to influence a congressional rescue plan that could enable Puerto Rico to restructure its debts.
Members of Congress from both parties are negotiating changes to the draft of a relief bill released last week by the House Committee on Natural Resources, which has jurisdiction over U.S. territories.
But many in Puerto Rico, and some progressives in the mainland United States, object to the Washington-based federal oversight board the bill would introduce to audit Puerto Rico’s finances and recommend reforms. Under the terms of the bill, Puerto Rico would pursue voluntary compromises with its creditors; failing that, the board could greenlight court-supervised debt restructuring that would force bondholders to accept the losses.
Those critics of the draft bill — including lawmaker Natal — view the board as having the trappings of American colonial rule over Puerto Rico.
Critics of the draft House bill say it has the trappings of American colonial rule over Puerto Rico.
They also argue that Puerto Rico should not have to meet any conditions to gain access to court-supervised debt restructuring. Puerto Rico, unlike the fifty mainland states, lacks the power to grant its municipalities and public corporations federal bankruptcy protections.
Puerto Rico is taking a multi-pronged approach to secure debt relief that appears designed to increase its leverage with creditors and win terms that are as favorable as possible.
The island’s governor, Alejandro Garcia Padilla, signed a bill on Wednesday that would empower him to declare a state of emergency and enact a moratorium on the island’s $70 billion debt. Puerto Rico’s next major debt payment — a $422 million tranche — comes due on May 1.
Daniel Hanson, a Puerto Rico specialist for the financial analysis firm The Height, wrote in an email newsletter that Puerto Rico’s creditors will likely challenge the moratorium in court, where Puerto Rico’s “playbook is not likely to be persuasive to American courts adjudicating the contracted rights of creditors.”
Garcia Padilla has said the island is incapable of paying its debts in full. Puerto Rico has enacted spending cuts and tax hikes in recent years that have stifled its economy and depleted its social services, creating a situation that many people already characterize as a humanitarian crisis.
Puerto Rico also argued for the right to enforce a local bankruptcy law that went before the Supreme Court last month after lower courts had blocked the island from putting it into effect. The high court is expected to rule in the case by late June.
In Congress, Democrats sensitive to Puerto Rico’s plight — and solicitous of the votes of former island residents living on the mainland — hope to dilute some of the proposed oversight board’s sweeping powers.
The Height’s Hanson, however, expects subsequent iterations of the House bill to be “more creditor-friendly,” he wrote.
Meanwhile, organizations representing Puerto Rico’s powerful creditors have stepped up their efforts to amend the legislation to limit the restructuring authority that the island would get. The commonwealth’s bondholders include a significant number of so-called vulture funds, which are hedge funds that have bought its debt from other creditors at discounted rates on the promise of recovering the obligations’ original full-dollar value.
A group called Main Street Bondholders, which claims to represent ordinary retirees, has created a web site attacking the draft House bill for granting Puerto Rico “super Chapter 9” bankruptcy protections.
Main Street Bondholders is associated with the conservative seniors group 60 Plus, which played an active role in the fight against the Affordable Care Act. The New York Times reported in December that 60 Plus is funded by a handful of large, anonymous donors and was recruited into the effort by a Republican public relations firm that also represents BlueMountain Capital, a creditor that has been outspoken against federal government help for the island.
The fight over whether to help Puerto Rico has reached the bottom rung of American discourse — cable news ads paid for by undisclosed donors. The ad, which ran on CNN and was paid for by the Center for Individual Freedom, urges Congress to “stop the Washington bailout of Puerto Rico.” The Virginia-based conservative group does not disclose its donors. It was founded in 1998 to combat government restrictions on smoking.
The CFIF did not respond to a Huffington Post question about whether any of its funders have a financial stake in the outcome of the Puerto Rico bailout.
By Daniel Marans & Ben Walsh
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Protesters Demand a Voice in Selection of Next President of Philadelphia ‘Fed’
CBS Philly - December 15, 2014, by Steve Tawa - Just as the Federal Reserve is about to hold a key policy meeting in...
CBS Philly - December 15, 2014, by Steve Tawa - Just as the Federal Reserve is about to hold a key policy meeting in Washington, DC, a group of activists is calling for a more transparent process to replace Charles Plosser, president of the Federal Reserve Bank of Philadelphia.
The group, which staged a march this morning from Independence Hall to the Federal Reserve at Sixth and Arch Streets, says the Fed’s replacement process is dominated by major financial firms and corporations.
Members of Action United, the Philadelphia Unemployment Project, and Pennsylvania Working Families say there are no community, labor, or consumer representatives on the board of directors of the Philadelphia Fed, so working folks are shut out of the process.
They are part of a grass-roots coalition across the country that met last month with Federal Reserve chair Janet Yellen, demanding that the central bank hear the concerns of ordinary Americans as it prepares to raise interest rates.
Who are those ordinary Americans?
“The unemployed, the underemployed, the working and barely-working working class,” says Kendra Brooks of Action United.
“We just need some people at the Fed to step up and pay attention to us,” adds Chris Campbell (far right in photo), a graduate of Orleans Technical Institute who has been doing multiple odd jobs to scrape together income.
Dawn Walton, who had been one day away from becoming a permanent worker with benefits at a local auto dealership when she was laid off after 89 days, said, “And now (we’re) out here pounding the pavement with millions of other people. It looks like there’s no way out.”
While the unemployment rate has declined to a six-year low, the activists challenge the Fed to visit poorer neighborhoods in Philadelphia and elsewhere before raising rates, because many are not experiencing a recovery.
Plosser, the Philadelphia Fed president since 2006, was among those known as a “hawk” for casting dissenting votes against the Fed’s prolonged low-rates policies.
The Philadelphia Fed says it is following a process for the selection of the bank’s next president outlined by Congress, and its senior executives have met with representatives of groups who have expressed interest in the process.
Source
A top regulator's close ties to Wall Street damage one of its most crucial functions 10 years after the crisis
A top regulator's close ties to Wall Street damage one of its most crucial functions 10 years after the crisis
“A new report from the Fed Up coalition, an activist group calling for more inclusive economic policies, says the key...
“A new report from the Fed Up coalition, an activist group calling for more inclusive economic policies, says the key regional Fed bank's conflicts lead to subpar regulation of Wall Street. As William Dudley, a former Goldman Sachs partner, prepares to retire as New York Fed president, Fed Up calls on the bank to "select a new president who will put the interests of the public before Wall Street. A new report from the Fed Up coalition, led by the Center for Popular Democracy, a Washington-based nonprofit, shows just how stark the lack of diversity in race, gender, and professional backgrounds has been at the New York Fed.”
Read the full article here.
1 month ago
1 month ago