An alternative to capitalism working its way into every corner of society – the story of the commons

Media Education Foundation recently released a new documentary titled "This Land is Our Land." The video is critical of fair market fundamentalism, arguing that the idea of "the public commons" is fundamental to America's past successes. "We forget what the commons is and why it matters." Air, water, government research, community garden, public forests, public libraries, the G.I. Bill, material protected by only limited copyright and the public airwaves. Some states named themselves "commonwealths." The idea of the commons has been with us forever. Even Babylon had nature preserves. "This Land is Our Land," narrated by David Bollier, offers dozens of examples of the importance of the commons. The idea of public property is critically important: "We have a moral personal connection with it." Yet those who dare to honor this age-old idea of the commons now face blistering allegations that they are communists, or at least socialists.  Bollier runs a website titled "On the Commons."   At that site you can read a well written article titled, "Why the Commons Matters Right Now." What is hard to miss is that recognizing the importance of the commons is often not convenient to corporate interests. Especially amazing is the section of the documentary discussing the fact that, according to a law from the mid-1800s, companies have, with out any payment reaped great profits from public lands. What we have today is the "enclosure of the commons," the process by which the commons is clawed back from The People. A prime example is the fact that huge telecoms are currently working hard to gain control over the Internet, incrementally winning the battle over those who are fighting for net neutrality (And see this speech by Senator Al Franken). Perhaps the most salient part of the documentary is the opening story about Jonas Salk, who refused to apply for a patent on his polio vaccine. When Edward Murrow asked him, "Who owns this patent?", Salk replied, "No one. Could you patent the sun?." Those with possible interest in purchasing,"The Land is Our Land," can view a low-res version of the entire documentary here.

Continue ReadingAn alternative to capitalism working its way into every corner of society – the story of the commons

William Black: Stop the banks. Indict the banksters.

Wire fraud and mail fraud are extremely serious federal crimes. Thousands of people who have perpetrated fraud through the mail or through telecommunications of any sort have been sent to prison for up to 20 years.  The U.S. Department of Justice warns that prosecution of wire fraud is not always merited, however. Prosecutorial resources should not be expended where fraud is a small piddling crime. For example:

Prosecutions of fraud ordinarily should not be undertaken if the scheme employed consists of some isolated transactions between individuals, involving minor loss to the victims, in which case the parties should be left to settle their differences by civil or criminal litigation in the state courts. Serious consideration, however, should be given to the prosecution of any scheme which in its nature is directed to defrauding a class of persons, or the general public, with a substantial pattern of conduct.
What, then, should we make of the decision by the biggest banks in the United States to spew millions of lies through the mail in the zealous attempts to kick people out of their houses?  Everything about this bank fraud meets the test for serious fraud.  Not isolated.  Not between individuals.  Not involving minor losses to victims.  The victims, for the most part, cannot settle their differences by litigation because they have been put into desperate financial situations by the lenders, working hand-in-hand with the bank.  And yes, this scheme is directed to defrauding a large class of persons, and the general public is going to suffer the consequences of this "substantial pattern of conduct," namely, the large tracts of foreclosed homes in their neighborhoods. Note too, that the federal fraud statutes kick up the penalty to up to 30 years in prison "if the violation affects a financial institution."  Of course, the politicians and bank are going to argue that the increased penalty only applies if the institution is the victim. Then maybe it's time to pull out that wonderful quote by Anatole France:

The law, in its majestic equality, forbids the rich as well as the poor to sleep under bridges, to beg in the streets, and to steal bread.

In steps bank regulator/investigator William Black, into the fray.  Black is one of the few nationally prominent voices I completely trust with it comes to the conduct of banks over the past few years (and yes, decade).  Here is the solution Black offers, one that politicians are going to choke on because the banks own Congress.

S&L regulators, criminologists, and economists recognize that the same recipe that produced guaranteed, record (fictional) accounting income (and executive compensation) until 2007 produced another guarantee: massive (real) losses, particularly if the frauds hyper-inflated a bubble. CEOs who loot "their" banks do so by perverting the bank into a wealth destroying monster -- a control fraud. What could be worse than deliberately growing massively by making loans likely to default, converting large amounts of bank assets to the personal benefit of the senior officers looting the bank and to those the CEO suborns to assist his looting (appraisers, auditors, attorneys, economists, rating agencies, and politicians), while simultaneously providing minimal capital (extreme leverage) and only grossly inadequate loss reserves, and causing bubbles to hyper-inflate?

This nation's most elite bankers originated and packaged fraudulent nonprime loans that destroyed wealth -- and working class families' savings -- at a prodigious rate never seen before in the history of white-collar crime. They created the worst bubble in financial history, echo epidemics of fraud among elite professionals, loan brokers, and loan servicers, and would (if left to their own devices) have caused the Second Great Depression.

Nothing short of removing all senior officers who directed, committed, or acquiesced in fraud can be effective against control fraud. We repeat: Foreclosure fraud is the necessary outcome of the epidemic of mortgage fraud that began early this decade. The banks that are foreclosing on fraudulently originated mortgages frequently cannot produce legitimate documents and have committed "fraud in the inducement." Now, only fraud will let them take the homes. Many of the required documents do not exist, and those that do exist would provide proof of the fraud that was involved in loan origination, securitization, and marketing. This in turn would allow investors to force the banks to buy-back the fraudulent securities. In other words, to keep the investors at bay the foreclosing banks must manufacture fake documents. If the original documents do not exist the securities might be ruled no good. If the original docs do exist they will demonstrate that proper underwriting was not done -- so the securities might be no good. Foreclosure fraud is the only thing standing between the banks and Armageddon.

I should add that there are many cases where foreclosure is perfectly appropriate.  On the other hand, there are hundreds of thousands of cases where disreputable loan originators such as Ameriquest and Countrywide systematically lied to borrowers, sticking them into loans that the borrowers had no hope of paying off when the hyper-charged "adjustable rate mortgage" came into effect two or three years later.  Add in the deceitful "yield spread premiums," hidden fees and the many lies about prepayment penalties, and you've got enough fraud to fill the courts of this land for many years to come, where banks who foreclosed based on these shameful scenarios should be punished and forced to make amends to the homeowners.   That is what should happen.

Continue ReadingWilliam Black: Stop the banks. Indict the banksters.

Is the Supreme Court biased towards corporations?

I wrote last week about the plutocracy or corporatocracy which has emerged as the dominant force in American politics. Today, Bloomberg News has a teaser article up featuring an interview with Justice Stephen Breyer, who was appointed to the court by Bill Clinton in 1994. Before I get into the substance of the post, permit me to point out that Bloomberg News is a subsidiary of Bloomberg L.P., a company with revenues in the billions of dollars, and owned by Michael Bloomberg, the mayor of New York City and America's 10th richest person. See how money, the media and politics all work together? And I'm sure this was entirely coincidental, but Bloomberg TV was severely reprimanded a few years ago in the United Kingdom for breaching British rules on broadcasts before elections. It seems that Bloomberg covered the Labour Party's "Business Manifesto", but failed to provide equal coverage to the Conservative or Liberal Democratic parties.

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Expelled founder Paul Kurtz explains his departure from the Center for Inquiry

On May 18, 2010 the Center for Inquiry, the Council for Secular Humanism and the Committee for Skeptical Inquiry jointly announced that they had accepted the resignation of Paul Kurtz from each of these boards. Kurtz, who had founded each of these three organizations, had been serving on each of the boards, and as well as serving as Chair Emeritus of CSH and as Editor in Chief of CSH's flagship publication, Free Inquiry. In the joint announcement, the boards recognized Dr. Kurtz for his "decades of service to the Council for Secular Humanism, the Center for Inquiry (CFI), and its other affiliates." This same announcement also contained the following statement:

At Paul Kurtz's behest, CFI and its affiliates began years ago to organize a leadership transition. Moreover, in recent years the board had concerns about Dr. Kurtz's day-to-day management of the organization.

As a long-time subscriber to Free Inquiry and Skeptical Inquirer, I was familiar with many of the writings of Paul Kurtz, but I had never before spoken with him or corresponded with him. As a result of reading his articles at Free Inquiry, I was also aware that there was internal tension at those organizations (e.g., see here , here, and here). After reading about his resignation, I emailed a short note to Mr. Kurtz to wish him well in light of the announcement of his resignation. I also asked him whether he would allow me to interview him with regard to the announcement. He agreed: [Note: CFI's CEO Ron Lindsay responded to the following interview of Paul Kurtz here.] EV: To what extent was your resignation from the Center for Inquiry voluntary? PK: It was done voluntarily, but under great duress. [caption id="attachment_14572" align="alignright" width="150" caption="Paul Kurtz (Permission by Wikimedia Commons)"][/caption] -- EV: What were your titles and job duties prior to your resignation. PK: I founded the modern skeptics movement and sustained it for over three and a half decades. I had been the Chairman of the Center for Inquiry, the Council for Secular Humanism and the Committee for Skeptical Inquiry. In June, 2008, I was made "Emeritus" and stripped of any authority. Since 1980, I was Editor-in-Chief for Free Inquiry, but starting in June 2008, I no longer had any authority. I never received any compensation working for these organizations. I worked as a volunteer, living off savings I accrued while working as a philosophy professor. In fact, my wife and I donated more than $2 million dollars over the years to CFI, CSH and CSI. We were the second largest donors to these organizations. Over the years, I helped to raise over $40 million for the Center for Inquiry. -- EV: I saw the announcement of your resignation in the August/September, 2010 issue of Free Inquiry. Why didn't you publish any explanation regarding your resignation in Free Inquiry? PK: Tom Flynn and the CFI Board refused to run my letter of resignation in Free Inquiry or any of the Websites of CFI. It was censorship, clear and simple. I was censored four times, beginning in June 2008. [More . . . ]

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Read more about the article CEOs Earn More When They Fire People
John D Rockefeller - Archetype of today's CEO

CEOs Earn More When They Fire People

John D Rockefeller - Puck Magazine 1901 The Institute for Policy Studies has just released their 17th annual review of CEO salary. It makes for scary reading. While the rest of us suffer through the double-dip-recession-that-never-actually-lifted-off-the-bottom, CEOs, who are not only some of the wealthiest people in the country but are also the most handsomely paid to boot, have seen their income rise in real terms, while their employees have seen a reduction in real income and a significant contraction of job opportunities. According to the Institute

Corporate executives, in reality, are not suffering at all. Their pay, to be sure, dipped on average in 2009 from 2008 levels, just as their pay in 2008, the first Great Recession year, dipped somewhat from 2007. But executive pay overall remains far above inflationadjusted levels of years past. In fact, after adjusting for inflation, CEO pay in 2009 more than doubled the CEO pay average for the decade of the 1990s, more than quadrupled the CEO pay average for the 1980s, and ran approximately eight times the CEO average for all the decades of the mid-20th century.
Their employees, meanwhile
are taking home less in real weekly wages than they took home in the 1970s. Back in those years, precious few top executives made over 30 times what their workers made. In 2009, we calculate in the 17th annual Executive Excess, CEOs of major U.S. corporations averaged 263 times the average compensation of American workers. CEOs are clearly not hurting.
But reality is even worse:
In 2009, the CEOs who slashed their payrolls the deepest took home 42 percent more compensation than the year’s chief executive pay average for S&P 500 companies
The market, and the embedded compensation committees, are rewarding CEOs for destroying livliehoods, for shipping jobs overseas, and for eviscerating the american workplace. These are the same people who lobby our politicians to create business friendly legislation (aka legislation that will protect their bonuses and options) and to fight against social programs (that would level the playing field a little) What was so wrong with the vibrant, growing, energetic America of the 70s and 80s? Why do CEOs hate America, so?

Continue ReadingCEOs Earn More When They Fire People