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Demeter

(85,373 posts)
Fri Jan 27, 2012, 07:37 PM Jan 2012

Weekend Economists Get a Little Drunk January 27-29, 2012



Source
Harper's Weekly (Sept. 30, 1865), p. 613. (Copy in Special Collections Department, University of Virginia Library)

Comments
Caption, "View of Darlington courthouse and the sycamore tree where Amy Spain, the Negro slave, was hung by the citizens of Darlington, SC". Amy Spain's crime was that she had yelled, "Bless the Lord, the Yankees have come!" The author of the Harper's Weekly article hailed her as a martyr to the cause of freedom for her people.

http://hitchcock.itc.virginia.edu/Slavery/details.php?categorynum=16&categoryName=Physical%20Punishment,%20Rebellion,%20Running%20Away&theRecord=21&recordCount=87


America was built on the backs of slaves, people stolen from their homes and families, pressed into labor for the duration of their natural lives, and their children after them, with abuse and privation always in their faces. They were powerless.

This is nothing special. I will look, but probably all nations were founded on the forced labor and abuse of the laborers. But this is the 21st century. We are above that, aren't we? Have we not evolved beyond such brutality?

While I'd like to reassure people that we ARE better people, I don't think we are there yet. In fact, I think the human race is slipping back into the bad old times, by trick and fraud and and massive indifference for one's fellow man on the behalf of the most successful predators, pirates and hypocrites yet produced. And I'm not referring to the former Third World nations alone. I'm referring to the United States of America.

Today's title comes from that Broadway standard, "Ole Man River", the hit from "Showboat". It's a terrible lovely, melancholy ballad, but we will look at slavery in art in general, not just this one show.

Since February is Black History Month, we will get a head start on it, but broadening the subject to all people around the world. You don't have to be black to be enslaved. And you don't have to be white to be an oppressor.

Paul Robeson - Ol' Man River (Showboat - 1936) J.Kern O. Hammerstein II

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Weekend Economists Get a Little Drunk January 27-29, 2012 (Original Post) Demeter Jan 2012 OP
k & r DoBotherMe Jan 2012 #1
4 FAILED BANKS SO FAR Demeter Jan 2012 #2
I KNOW there has to be a back story on why some banks are left standing. dixiegrrrrl Jan 2012 #3
Funny thing about that Demeter Jan 2012 #6
LOL......The expression I learned is: "same old, same old" dixiegrrrrl Jan 2012 #7
Or, as I say..... Fuddnik Jan 2012 #15
SOME DEFINITIONS TO START Demeter Jan 2012 #4
etymological origin of the word Demeter Jan 2012 #5
How Slavery Led to Modern Capitalism: Echoes Demeter Jan 2012 #8
Sade - Slave Song Demeter Jan 2012 #13
What a wonderful legacy. Loge23 Jan 2012 #76
Pull back the coverings and we truly are an ugly country. n/t Hotler Jan 2012 #77
Parts of it are -- 1 to 5 % Demeter Jan 2012 #78
One can only hope. Wouldn't it be great, but sad at the same time... Hotler Jan 2012 #83
People Power vs Banker Power: Score One for the People By Richard (RJ) Eskow Demeter Jan 2012 #9
Slave Songs Demeter Jan 2012 #14
The State of Our Disunion: By Robert Reich Demeter Jan 2012 #10
WHAT HE DOESN'T SAY Demeter Jan 2012 #11
Let My People Go - Paul Robeson Demeter Jan 2012 #16
My solution. Something the Founding Fathers founded America on. Fuddnik Jan 2012 #18
+++ DemReadingDU Jan 2012 #20
You would withdraw your military and cloak and dagger operations from the rest of the world Ghost Dog Jan 2012 #27
Call for EU to control Greek budget Demeter Jan 2012 #12
Slavery in China Demeter Jan 2012 #17
'Chinese Slavery' - Russia Today report 2007 Demeter Jan 2012 #19
Apple's Insanely Profitable and Arguably Destructive Made-in-China Quarter Demeter Jan 2012 #21
Why now? Why all the bad publicity concerning Apple's working condictions in China? DemReadingDU Jan 2012 #28
I think it's because Steve Jobs is dead Demeter Jan 2012 #35
Apples (no pun in tended) and oranges hamerfan Jan 2012 #59
there was lots of praise for HP (until the originals retired and the bean-counters took over) Demeter Jan 2012 #60
Correct! hamerfan Jan 2012 #65
The Power to Break Up the Big Banks Demeter Jan 2012 #22
U.S. falls 27 places in worldwide freedom of the press rankings Demeter Jan 2012 #23
The Identified Types of Slavery--Debt Bondage Demeter Jan 2012 #24
Human trafficking Demeter Jan 2012 #25
Peonage Demeter Jan 2012 #26
Penal labour Demeter Jan 2012 #33
Sexual slavery Demeter Jan 2012 #37
Wage Slavery Demeter Jan 2012 #43
As the economy further devolves DemReadingDU Jan 2012 #53
IN SUMMARY: UNFREE LABOR Demeter Jan 2012 #42
waking up to the voice of paul robeson -- wonderful! xchrom Jan 2012 #29
Germany seeks EU control over Greek finances xchrom Jan 2012 #30
They've learned a lesson from US Economic Hit Men. Fuddnik Jan 2012 #32
But it takes generations AND a Shooting War to Undo the Damage Demeter Jan 2012 #34
+1 xchrom Jan 2012 #36
Fuckers! All of them. Intead of marching on Wall St. ... Hotler Jan 2012 #74
EU rejects call for control over Greek budget xchrom Jan 2012 #45
Even though it was a patently illegal and absurd idea Demeter Jan 2012 #54
I would bet on it. Hotler Jan 2012 #75
Good economic news, Bad economic news. Fuddnik Jan 2012 #31
Are those property taxes for 1 year? DemReadingDU Jan 2012 #44
Yes. Fuddnik Jan 2012 #47
The Pathology of Inequality in the US: Our National Dementia About Work and Wealth Demeter Jan 2012 #38
How Power and Influence Helped Big Banks Rewrite the Rules Demeter Jan 2012 #39
America’s Dead Zones: From Dodge City to Durango, Why Does Prosperity Pass So Many Places By? Demeter Jan 2012 #40
ONE CONCLUSION FROM THE ARTICLE Demeter Jan 2012 #41
46 Million Americans Live in Poverty -- So Why Isn't Anybody Saying the P Word? xchrom Jan 2012 #46
They saw what happened to John Edwards. Fuddnik Jan 2012 #50
... xchrom Jan 2012 #51
IMF warns austerity plans could 'strangle' growth xchrom Jan 2012 #48
I'm so sick of their euphimistic "budget discipline" - "austerity" bread_and_roses Jan 2012 #58
Firewall divides euro zone as Rehn's talk of unity falls on sceptical ears xchrom Jan 2012 #49
I Feel Much Safer When the Elites DON'T Agree Demeter Jan 2012 #55
Citi to Cut Bonuses in Investment Bank About 30% xchrom Jan 2012 #52
Reality Returns to Wall Street Demeter Jan 2012 #56
Lesson of Great Recession is too hard to accept xchrom Jan 2012 #57
I Beg to Differ: They WERE " stupid, lazy & uninformed" Demeter Jan 2012 #69
President's New Financial Crimes Task Force: Some Rich A-holes Need to Go to Jail Demeter Jan 2012 #61
Romney Profited From Mortgage Lenders Foreclosing On Thousands Of Floridians Demeter Jan 2012 #62
Moyers: How the Banks Have Rewritten Our Economy's Rules Demeter Jan 2012 #63
By Robert Reich:Jobs Won't Come Back to America Until the Govt Pushes Executives to Invest at Home Demeter Jan 2012 #64
Michael Hudson: Banking Wasn’t Meant to Be Like This Ghost Dog Jan 2012 #66
+++ DemReadingDU Jan 2012 #67
typical "liberal" tries to make silk purse out of sow's shit bread_and_roses Jan 2012 #68
Like trying to believe in tooth fairy Demeter Jan 2012 #70
I forgot one thing in that post bread_and_roses Jan 2012 #73
Heads up! Nader on C-span2 at 10:30 EST Fuddnik Jan 2012 #71
why all the robo signing? shedding light on the shadow banking system. xchrom Jan 2012 #72
Bad link, xchrom Demeter Jan 2012 #79
I'll go back & look at it. xchrom Jan 2012 #81
I apologize for cutting the posting short Demeter Jan 2012 #80
Sounds like a lovely day! DemReadingDU Jan 2012 #82
Late postscript to this weekend's theme: Loge23 Jan 2012 #84
Thanks for that! Demeter Jan 2012 #85
 

Demeter

(85,373 posts)
2. 4 FAILED BANKS SO FAR
Fri Jan 27, 2012, 07:47 PM
Jan 2012
Tennessee Commerce Bank, Franklin, Tennessee, was closed today by the Tennessee Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Republic Bank & Trust Company, Louisville, Kentucky, to assume all of the deposits of Tennessee Commerce Bank. The sole branch of Tennessee Commerce Bank will reopen on Monday as a branch of Republic Bank & Trust Company....As of September 30, 2011, Tennessee Commerce Bank had approximately $1.185 billion in total assets and $1.156 billion in total deposits. In addition to assuming all of the deposits of the failed bank, Republic Bank & Trust Company agreed to purchase approximately $203.9 million of the failed bank's assets. The FDIC will retain most of the assets for later disposition...The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $416.8 million. Compared to other alternatives, Republic Bank & Trust Company's acquisition was the least costly resolution for the FDIC's DIF. Tennessee Commerce Bank is the fifth FDIC-insured institution to fail in the nation this year, and the first in Tennessee. The last FDIC-insured institution closed in the state was Bank of Alamo, Alamo, on November 8, 2002.

First Guaranty Bank and Trust Company of Jacksonville, Jacksonville, Florida, was closed today by the Florida Office of Financial Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with CenterState Bank of Florida, National Association, Winter Haven, Florida, to assume all of the deposits of First Guaranty Bank and Trust Company of Jacksonville. The eight branches of First Guaranty Bank and Trust Company of Jacksonville will reopen on Monday as branches of CenterState Bank of Florida, National Association...As of September 30, 2011, First Guaranty Bank and Trust Company of Jacksonville had approximately $377.9 million in total assets and $349.5 million in total deposits. In addition to assuming all of the deposits of the failed bank, CenterState Bank of Florida, National Association agreed to purchase essentially all of the assets. The FDIC and CenterState Bank of Florida, National Association entered into a loss-share transaction on $292.9 million of First Guaranty Bank and Trust Company of Jacksonville's assets...The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $82.0 million. Compared to other alternatives, CenterState Bank of Florida, National Association's acquisition was the least costly resolution for the FDIC's DIF. First Guaranty Bank and Trust Company of Jacksonville is the fourth FDIC-insured institution to fail in the nation this year, and the second in Florida. The last FDIC-insured institution closed in the state was Central Florida State Bank, Belleview, on January 20, 2012.

Patriot Bank Minnesota, Forest Lake, Minnesota, was closed today by the Minnesota Department of Commerce, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First Resource Bank, Savage, Minnesota, to assume all of the deposits of Patriot Bank Minnesota. The three branches of Patriot Bank Minnesota will reopen on Saturday as branches of First Resource Bank...As of September 30, 2011, Patriot Bank Minnesota had approximately $111.3 million in total assets and $108.3 million in total deposits. In addition to assuming all of the deposits of the failed bank, First Resource Bank agreed to purchase essentially all of the assets...The FDIC and First Resource Bank entered into a loss-share transaction on $79.4 million of Patriot Bank Minnesota's assets...The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $32.6 million. Compared to other alternatives, First Resource Bank's acquisition was the least costly resolution for the FDIC's DIF. Patriot Bank Minnesota is the sixth FDIC-insured institution to fail in the nation this year, and the first in Minnesota. The last FDIC-insured institution closed in the state was The Riverbank, Wyoming, Minnesota, on October 7, 2011.

BankEast, Knoxville, Tennessee, was closed today by the Tennessee Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with U.S. Bank National Association, Cincinnati, Ohio, to assume all of the deposits of BankEast. The ten branches of BankEast will reopen on Monday as branches of U.S. Bank National Association...As of September 30, 2011, BankEast had approximately $272.6 million in total assets and $268.8 million in total deposits. In addition to assuming all of the deposits of the failed bank, U.S. Bank National Association agreed to purchase essentially all of the assets...The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $75.6 million. Compared to other alternatives, U.S. Bank National Association's acquisition was the least costly resolution for the FDIC's DIF. BankEast is the seventh FDIC-insured institution to fail in the nation this year, and the second in Tennessee. The last FDIC-insured institution closed in the state was Tennessee Commerce Bank, Franklin, earlier today.

dixiegrrrrl

(60,010 posts)
3. I KNOW there has to be a back story on why some banks are left standing.
Fri Jan 27, 2012, 07:56 PM
Jan 2012

Even tho most of them are technically insolvent.
Waiting for the day when the truth comes out.

 

Demeter

(85,373 posts)
6. Funny thing about that
Fri Jan 27, 2012, 08:09 PM
Jan 2012

I was checking out local banks for the condo association. We were indebted and obligated to a bank in such straits that they were operating under a letter from the FDIC or some regulator. So I went looking for a bank less likely to go under.

There are many banks in great condition. About half of those I looked at.

If this were the 80's, the other half would have been taken down by now, and a thousand crooked bankers would be serving time in Club Fed.

But this is a kinder, gentler nation. We coddle the financial institutions and the people abusing them.


Expression: Plus ça change, plus c'est la même chose

Pronunciation: [plu sa sha(n)zh plu say la mem shoz]

Meaning: the more things change, the more they stay the same

Literal translation: more it changes, more it's the same thing

 

Demeter

(85,373 posts)
4. SOME DEFINITIONS TO START
Fri Jan 27, 2012, 07:59 PM
Jan 2012
slavery (noun)


  1. the state of being a slave: thousands had been sold into slavery

  2. the practice or system of owning slaves: he was resolved to impose a number of reforms, including the abolition of slavery

  3. a condition of having to work very hard without proper remuneration or appreciation: female domestic slavery

  4. excessive dependence on or devotion to something: slavery to tradition


slave (noun)


  1. (especially in the past) a person who is the legal property of another and is forced to obey them: he killed the natives or turned them into slaves

  2. a person who works very hard without proper remuneration or appreciation: by the time I was ten, I had become her slave, doing all the housework

  3. a person who is excessively dependent upon or controlled by something: the poorest people of the world are slaves to the banks,she was no slave to fashion

  4. a device, or part of one, directly controlled by another: (as modifier): a slave cassette deck
 

Demeter

(85,373 posts)
5. etymological origin of the word
Fri Jan 27, 2012, 08:01 PM
Jan 2012

Middle English: shortening of Old French esclave, equivalent of medieval Latin sclava (feminine) 'Slavonic (captive)': the Slavonic peoples had been reduced to a servile state by conquest in the 9th century
 

Demeter

(85,373 posts)
8. How Slavery Led to Modern Capitalism: Echoes
Fri Jan 27, 2012, 08:30 PM
Jan 2012
http://www.bloomberg.com/news/2012-01-24/how-slavery-led-to-modern-capitalism-echoes.html

When the New York City banker James Brown tallied his wealth in 1842, he had to look far below Wall Street to trace its origins. His investments in the American South exceeded $1.5 million, a quarter of which was directly bound up in the ownership of slave plantations...Brown was among the world's most powerful dealers in raw cotton, and his family’s firm, Brown Brothers & Co., served as one of the most important sources of capital and foreign exchange to the U.S. economy. Still, no small amount of his time was devoted to managing slaves from the study of his Leonard Street brownstone in Lower Manhattan...Brown was hardly unusual among the capitalists of the North. Nicholas Biddle's United States Bank of Philadelphia funded banks in Mississippi to promote the expansion of plantation lands. Biddle recognized that slave-grown cotton was the only thing made in the U.S. that had the capacity to bring gold and silver into the vaults of the nation's banks. Likewise, the architects of New England's industrial revolution watched the price of cotton with rapt attention, for their textile mills would have been silent without the labor of slaves on distant plantations. The story we tell about slavery is almost always regional, rather than national. We remember it as a cruel institution of the southern states that would later secede from the Union. Slavery, in this telling, appears limited in scope, an unfortunate detour on the nation's march to modernity, and certainly not the engine of American economic prosperity.

Yet to understand slavery's centrality to the rise of American capitalism, just consider the history of an antebellum Alabama dry-goods outfit called Lehman Brothers or a Rhode Island textile manufacturer that would become the antecedent firm of Berkshire Hathaway Inc...Reparations lawsuits (since dismissed) generated evidence of slave insurance policies by Aetna and put Brown University and other elite educational institutions on notice that the slave-trade enterprises of their early benefactors were potential legal liabilities. Recent state and municipal disclosure ordinances have forced firms such as JPMorgan Chase & Co. and Wachovia Corp. to confront unsettling ancestors on their corporate family trees. Such revelations are hardly surprising in light of slavery’s role in spurring the nation’s economic development. America's "take-off" in the 19th century wasn't in spite of slavery; it was largely thanks to it. And recent research in economic history goes further: It highlights the role that commodified human beings played in the emergence of modern capitalism itself.

The U.S. won its independence from Britain just as it was becoming possible to imagine a liberal alternative to the mercantilist policies of the colonial era. Those best situated to take advantage of these new opportunities -- those who would soon be called "capitalists" -- rarely started from scratch, but instead drew on wealth generated earlier in the robust Atlantic economy of slaves, sugar and tobacco. Fathers who made their fortunes outfitting ships for distant voyages begat sons who built factories, chartered banks, incorporated canal and railroad enterprises, invested in government securities, and speculated in new financial instruments...This recognizably modern capitalist economy was no less reliant on slavery than the mercantilist economy of the preceding century. Rather, it offered a wider range of opportunities to profit from the remote labor of slaves, especially as cotton emerged as the indispensable commodity of the age of industry....In the North, where slavery had been abolished and cotton failed to grow, the enterprising might transform slave-grown cotton into clothing; market other manufactured goods, such as hoes and hats, to plantation owners; or invest in securities tied to next year's crop prices in places such as Liverpool and Le Havre. This network linked Mississippi planters and Massachusetts manufacturers to the era's great financial firms: the Barings, Browns and Rothschilds....A major financial crisis in 1837 revealed the interdependence of cotton planters, manufacturers and investors, and their collective dependence on the labor of slaves. Leveraged cotton -- pledged but not yet picked -- led overseers to whip their slaves to pick more, and prodded auctioneers to liquidate slave families to cover the debts of the overextended.

The plantation didn't just produce the commodities that fueled the broader economy, it also generated innovative business practices that would come to typify modern management. As some of the most heavily capitalized enterprises in antebellum America, plantations offered early examples of time-motion studies and regimentation through clocks and bells. Seeking ever-greater efficiencies in cotton picking, slaveholders reorganized their fields, regimented the workday, and implemented a system of vertical reporting that made overseers into managers answerable to those above for the labor of those below...The perverse reality of a capitalized labor force led to new accounting methods that incorporated (human) property depreciation in the bottom line as slaves aged, as well as new actuarial techniques to indemnify slaveholders from loss or damage to the men and women they owned. Property rights in human beings also created a lengthy set of judicial opinions that would influence the broader sanctity of private property in U.S. law. So important was slavery to the American economy that on the eve of the Civil War, many commentators predicted that the North would kill "its golden goose." That prediction didn't come to pass, and as a result, slavery's importance to American economic development has been obscured.

But as scholars delve deeper into corporate archives and think more critically about coerced labor and capitalism -- perhaps informed by the current scale of human trafficking -- the importance of slavery to American economic history will become inescapable.

********************************************************************************

(Sven Beckert and Seth Rockman, historians at Harvard University and Brown University respectively, are co-editing "Slavery's Capitalism: A New History of American Economic Development," to be published by University of Pennsylvania Press in 2013. The opinions expressed are their own.)

To contact the writers of this post: Sven Beckert at beckert@fas.harvard.edu and Seth Rockman at Seth_Rockman@brown.edu.

Loge23

(3,922 posts)
76. What a wonderful legacy.
Sun Jan 29, 2012, 04:08 PM
Jan 2012

This is our exceptional country, the shining city on the hill.
A country founded on the genocide of Native Americans, the brutal enslavement of Africans, and the wholesale kill-off of it's own people in war after war after war.
Now we have all-but-blatent white racists running for President, some of whom are supported by African-Americans and other minorities that are not, and never will be, benefactors of those that they foolishly support.
We have an entire working-class enslaved by anti-union policies, the misnomer of right-to-work states, and a patently unfair tax structure.
We have a new population: corporations, who now have a class unto themselves.
"There's no place better", they say - correct, since not many other countries would tolerate their greed.

If you click-on the link in the original post, the one with the illustration of the publicly celebrated murder of a woman, you will find other horrific reminders of our past. If you go to MSNBC or any other corporate news site today, you will see evidence of what perhaps will be our future: para-military municipal police units inciting, then beating down, anyone who dares to complain about the truth of this country, both past and the future.

 

Demeter

(85,373 posts)
78. Parts of it are -- 1 to 5 %
Sun Jan 29, 2012, 09:01 PM
Jan 2012

A little house-cleaning, some prosecutions, re-regulation, and reinstatement of the Constitution, and we can get back on track to improving the nation, instead of destroying the world.

Hotler

(11,394 posts)
83. One can only hope. Wouldn't it be great, but sad at the same time...
Mon Jan 30, 2012, 10:30 PM
Jan 2012

if some of the banksters had to move to Colorado and stay in Super-Max. Sad because it would bring to the front how far our society has fallen.

 

Demeter

(85,373 posts)
9. People Power vs Banker Power: Score One for the People By Richard (RJ) Eskow
Fri Jan 27, 2012, 08:42 PM
Jan 2012
http://www.nationofchange.org/people-power-vs-banker-power-score-one-people-1327503617

I hate to sound Pollyanna-ish, but sometimes the sunny point of view turns out to be right. Yes, corporate money has hijacked democracy. And it's true that our two-party system often fails to offer real choices or reflect the will of the majority. Our corporate political system doesn't have a problem. It is the problem. But we saw yesterday that concerned citizens can make a difference. Yesterday they won a battle against one of democracy's most implacable adversaries: Wall Street. They fought back against a lousy bank deal and stopped it in its tracks.

For the moment.

Bankers' Choice

It wasn't obvious that it could be done. Despite a setback or two – the Consumer Financial Protection Bureau being the primary one - bank executives have scored one victory after another:

  • They got to keep their jobs after destroying the economy and driving their own institutions into the ground.

  • They kept on collecting fat bonuses after the American people bailed them out.

  • They were able to weaken regulatory reform so they could keep their too-big-to-fail status and retain many of their screw-the-customer privileges.

  • They've settled one lawsuit after another, often for flagrant criminal behavior, by paying relatively puny settlements - and writing the checks with other people's money to do it. They've been able to avoid paying for their misdeeds with their money - or their time.

  • They've even been able to whine ad nauseum without public anger or ridicule, about the mild reprimands and even milder regulatory changes they've had to face since crashing the world's economy.

    One for the People

    This week bankers were on the brink of another undeserved victory, capping months of negotiation led by Obama Administration officials and involving most of the states. But hundreds of thousands of concerned citizens signed online petitions from a range of organizations that includes MoveOn, Color of Change, Progressives United, and the Campaign for America's Future...The President was reportedly eager to promote the deal in tonight's State of the Union message as some sort of victory for the American people. The press was told that his negotiating team, which includes Iowa Attorney General Tom Miller and officials from the Justice, Housing, and Treasury Departments, had finalized a deal which was about to be “presented to the states.'...But presenting 360,000 signatures to the White House had an impact. So do demonstrations like this one, which took place outside the building in Chicago where settlement talks were taking place...Public statements had an impact, too. Elected officials like Sen. Sherrod Brown, Reps. Keith Ellison and Raul Grijalva (speaking for the entire Progressive Caucus), and Rep. Brad Miller opposed the settlement. So did leaders like Richard Trumka of the AFL-CIO, Justin Ruben of MoveOn, and Bob Borosage of Campaign for America's Future. Their widely-reported words hit the media the same day the deal was announced. The reaction was immediate. Attorney General Miller immediately released a statement retracting earlier announcement. Miller's statement said that the AGs were “today discussing the details of the progress we have made so far in settlement negotiations, including the terms we must still resolve.” (Emphasis ours.) “We have not yet reached an agreement with the nation’s five largest servicers,” Miller added, “and we won’t reach a settlement any time this week.”

    How Bad Was the Deal?

    How bad was the deal that was stopped this week? Bankers would have been able to settle civil and criminal charges covering a wide range of mortgage misdeeds for a maximum of $25 billion, to be disbursed under their own supervision. That's $25 billion after a mortgage meltdown that has left more than 11 million homes underwater. That's $25 billion, while banks continue to demand (and usually receive) mortgage payments for more than $700 billion in housing value that no longer exists. Payments on this $700 billion continue to serve as an “invisible bank bailout.” Each mortgage check on these underwater homes includes money for an ongoing Wall Street rescue, as millions of struggling homeowners continue to pump billions into Wall Street. Their money continues to artificially inflate banks' balance sheets and providing bonuses for the very same bankers that screwed them over in the first place.

    Other People's Money

    And speaking of bonuses: The House Progressive Caucus rightly noted today that “the six biggest banks could pay the proposed $25 billion settlement five times over with last year’s bonuses and compensation alone.” What's more, the $25 billion would have been largely paid by pension funds and other institutional investors who were deceived by the very same bankers collecting those rich payouts. And in return, the deal could have shut down ongoing civil and criminal investigations of those bankers.(There's more on the deal here, including a radio interview.) SEE LINK

    The President's Role

    The Obama Administration's usually been on the wrong side of this struggle. It has declined to investigate or prosecute bad bankers, even when the evidence appeared to be overwhelming. (See here, here, and here, for starters.) The President has continued to insist, as recently as last month's 60 Minutes interview, that bankers did nothing illegal – even as it was working behind the scenes to make sure that investigators wouldn't be able to discover what they had or hadn't done. And yet I'll say this for the Administration: They bowed to public pressure. A Republican Administration would have been less likely to do that. And the citizens who made that happen didn't just send a message to the President. They also saved him. This bank deal would have been a political disaster for him...We've won one battle, and even that victory could be undone if the deal is revived in its present form. And the Administration hasn't committed to doing what's really necessary, which is to support courageous Attorneys General like New York's Eric Schneiderman by conducting a full-scale investigation of bank fraud. So there's more work to be done. What should people do? Be prepared to mobilize again. As the saying goes, “Watch this space” - and others like it at MoveOn and other progressive organizations. Patti Smith wasn't wrong when she sang that “People have the power.” We do have the power to win a battle or two, even against those guys on Wall Street. We have more power than we realize – but only if we're willing to use it, and to keep using it until the battles have ended and the war for fair play has been won.
  •  

    Demeter

    (85,373 posts)
    10. The State of Our Disunion: By Robert Reich
    Fri Jan 27, 2012, 09:21 PM
    Jan 2012
    http://www.nationofchange.org/state-our-disunion-globalizing-private-sector-government-overwhelmed-corporate-money-1327422780

    The State of Our Disunion: A Globalizing Private Sector, A Government Overwhelmed by Corporate Money

    Who should have the primary strategic responsibility for making American workers globally competitive – the private sector or government? This will be a defining issue in the 2012 campaign. In his State of the Union address, President Obama will make the case that government has a vital role. His Republican rivals disagree. Mitt Romney charges the President is putting “free enterprise on trial,” while Newt Gingrich merely fulminates about “liberal elites.” American business won’t and can’t lead the way to more and better jobs in the United States. First, the private sector is increasingly global, with less and less stake in America. Second, it’s driven by the necessity of creating profits, not better jobs.

    The National Science Foundation has just released its biennial report on global investment in science, engineering and technology. The NSF warns that the United States is quickly losing ground to Asia, especially to China. America’s share of global R&D spending is tumbling. In the decade to 2009, it dropped from 38 percent to 31 percent, while Asia’s share rose from 24 to 35 percent. One big reason: According to the NSF, American firms nearly doubled their R&D investment in Asia over these years, to over $7.5 billion...GE recently announced a $500 million expansion of its R&D facilities in China. The firm has already invested $2 billion. GE’s CEO Jeffrey Immelt chairs Obama’s council on work and competitiveness. I’d wager that as an American citizen, Immelt is concerned about working Americans. But as CEO of GE, Immelt’s job is to be concerned about GE’s shareholders. They aren’t the same. GE has also been creating more jobs outside the United States than in it. A decade ago, fewer than half of GE’s employees were non-American; today, 54 percent are. This is all good for GE and its shareholders, but it’s not necessarily good for America or American workers. The Commerce Department says U.S. based global corporations added 2.4 million workers abroad in first decade of 21st century, while cutting their US workforce by 2.9 million.

    According to the New York Times, Apple Computer employs 43,000 people in the United States but contracts with over 700,000 workers abroad. It makes iPhones in China not only because of low wages there but also the ease and speed with which its Chinese contractor can mobilize their workers – from company dormitories at almost any hour of the day or night. An Apple executive says “We don’t have an obligation to solve America’s problems. Our only obligation is making the best product possible.” He might have added “and showing a big enough profits to continually increase our share price.” Most executives of American companies agree. If they can make it best and cheapest in China, or anywhere else, that’s where it will be made. Don’t blame them. That’s what they’re getting paid to do. What they want in America is lower corporate taxes, less regulation, and fewer unionized workers. But none of these will bring good jobs to America. These steps may lower the costs of production here, but global companies can always find even lower costs abroad.

    Global corporations — wherever they’re based — will create good jobs for Americans only if Americans are productive enough to summon them. Problem is, a large and growing portion of our workforce isn’t equipped to be productive. Put simply, American workers are hobbled by deteriorating schools, unaffordable college tuitions, decaying infrastructure, and declining basic R&D. All of this is putting us on a glide path toward even lousier jobs and lower wages. Get it? The strategic responsibility for making Americans more globally competitive can’t be centered in the private sector because the private sector is rapidly going global, and it’s designed to make profits rather than good jobs. The core responsibility has to be in government because government is supposed to be looking out for the public, and investing in public schools, colleges, infrastructure, and basic R&D. But here’s the political problem. American firms have huge clout in Washington. They maintain legions of lobbyists and are pouring boatloads of money into political campaigns. After the Supreme Court’s Citizen’s United decision, there’s no limit. Who represents the American workforce? Organized labor represents fewer than 7 percent of private-sector workers and has all it can do to protect a dwindling number of unionized jobs. Republicans like it this way, and for three decades have been trying to convince average working Americans government is their enemy. Yet corporate America isn’t their friend. Without bold government action on behalf of our workforce, good American jobs will continue to disappear.

     

    Demeter

    (85,373 posts)
    11. WHAT HE DOESN'T SAY
    Fri Jan 27, 2012, 09:26 PM
    Jan 2012

    Robert Reich does not take his argument to its logical conclusion.

    The PEOPLE. It all comes down to the PEOPLE. Not the Government, not the Corporation, global or not, not the Union, either, nor the GOP. Not even the Democrats.

    The PEOPLE have to rule. They have to rule the banks, the corporations, the government, the economy and the borders. And they have to do it for the benefit of ALL the PEOPLE.

    This means life, liberty and the pursuit of happiness. NOT Greed, theft, fraud, elitism, classism. The PEOPLE.

    Fuddnik

    (8,846 posts)
    18. My solution. Something the Founding Fathers founded America on.
    Fri Jan 27, 2012, 10:23 PM
    Jan 2012

    First: Cancel ALL free trade agreements.

    Second: Institute a system of taxes and tariffs on all imported goods. No exceptions or exemptions. If you go back to colonial cities, such as Charleston, there's a reason that the Customs House was the biggest building in the city. To protect American business.

    If you do business in this country, you pay a livable wage. Period. No exceptions. If a business get's hit for retaliatory tariffs somewhere else, they should be eligible for a subsidy.

    As the system sits right now, business, aka multi-nationals, benefit from slavery, although it's abroad. Just like The North in pre- civil war times.

    The donor class will scream to high heaven, but hey, that's life.

     

    Ghost Dog

    (16,881 posts)
    27. You would withdraw your military and cloak and dagger operations from the rest of the world
    Sat Jan 28, 2012, 06:04 AM
    Jan 2012

    at the same time?

    This is right. And all the world should seek to produce and consume (intelligently) as a priority locally.

     

    Demeter

    (85,373 posts)
    12. Call for EU to control Greek budget
    Fri Jan 27, 2012, 09:30 PM
    Jan 2012

    The German government wants Greece to cede sovereignty over tax and spending decisions to a eurozone “budget commissioner” to secure a second €130bn bail-out, according to a copy of the proposal obtained by the Financial Times.

    In what would amount to an extraordinary extension of European Union control over a member state, the new commissioner would have the power to veto budget decisions taken by the Greek government if they were not in line with targets set by international lenders. The new administrator, appointed by other eurozone finance ministers, would take responsibility for overseeing “all major blocks of expenditure” by the Greek government.

    Read more >>
    http://link.ft.com/r/LVA6WW/08X9VC/K91WR/GDJICK/ORO1B1/KI/t?a1=2012&a2=1&a3=27


    PLEASE TELL ME HOW THIS DOESN'T MEAN ENSLAVING THE GREEKS?
     

    Demeter

    (85,373 posts)
    17. Slavery in China
    Fri Jan 27, 2012, 10:22 PM
    Jan 2012

    Slavery in China has taken various forms throughout history. Never as absolute as the European model, Chinese slavery still often viewed its objects as "half-man, half-thing" (半人, 半物 . Slavery was repeatedly abolished as a legally-recognized institution, including in a 1909 law fully enacted in 1910, although the practice continued until at least 1949.

    Shang Dynasty 1600 BC–1046 BC

    Slavery was established in China by at least the Shang dynasty, at which point it has been estimated that about 5 percent of the population was enslaved.

    Qin Dynasty 221 BC–206 BC

    Men sentenced to castration were turned into eunuch slaves of the Qin dynasty state to do forced labor, for projects like the Terracotta Army. The Qin government confiscated the property and enslaved the families of those who received castration as a punishment for rape. Slaves were deprived of their rights and connections to their families.

    Han Dynasty 206 BC–220 CE

    One of Emperor Gao's first acts was to manumit agricultural workers enslaved during the Warring States period, although domestic servants retained their status. Men punished with castration during the Han dynasty were also used as slave labor. Deriving from earlier Legalist laws, the Han dynasty set in place rules that the property of and families of criminals doing three years of hard labor or sentenced to castration were to have their families seized and kept as property by the government. BRIEFLY INTERRUPTED BY

    Xin Dynasty 9–23

    As part of his land reform laws, Wang Mang either abolished all slavery or trade in slaves. The swift collapse of his dynasty led to the restoration of both.

    Three Kingdoms 220–280

    During the Three Kingdoms period, a number of statuses intermediate between freedom and slavery developed, but none of them is thought to have exceeded 1 percent of the population.

    AND THE RECORD GOES ON....CASTRATION IS A CHINESE TWIST ON THE USUAL SLAVE EXPERIENCE....

     

    Demeter

    (85,373 posts)
    21. Apple's Insanely Profitable and Arguably Destructive Made-in-China Quarter
    Fri Jan 27, 2012, 10:53 PM
    Jan 2012
    http://www.alternet.org/story/153912/apple%27s_insanely_profitable_and_arguably_destructive_made-in-china_quarter?akid=8177.227380.p-G7x-&rd=1&t=22


    Apple’s blowout quarter defies description. What can one do but gape at the news that the company had one of the very best quarters any company has ever had, primarily based on the sales of products — iPhones and iPads — that did not even exist five years ago? Not long ago, supposedly knowledgeable business insiders were declaring the iPhone dead in the water. But in 2011, Apple sold more iPhones than in 2007, 2008, 2009 and 2010, combined. Apple is also now sitting on nearly $100 billion in cash; the company has never been in better financial shape. (Disclaimer: I contributed.)

    But what about the context? The earnings release came just two days after a terrific New York Times article, “How the U.S. Lost Out on iPhone Work,”made it abundantly clear that what’s good for Apple isn’t necessarily good for the American worker. And it came just hours before a State of the Union speech at which Steve Jobs’ wife, Laurene, was a guest in Michelle Obama’s box, and in which the president called for the “insourcing” of American manufacturing. In short, the most successful, profitable company in the world right now is pursuing a manufacturing strategy that is the direct opposite of what the president is advocating...So is just about everybody else, of course. You can pick your own villain to explain the shift of the global supply chain for consumer electronic manufacturing to China. Apple blames a lack of qualified workers in the U.S. Others point to China’s manipulation of exchange rates. Paul Krugman underlines the self-perpetuating power of “agglomeration” — once a modern supply chain becomes physically entrenched, it is extremely difficult to dislodge it or reinvent it elsewhere. The emergence of Foxconn — a manufacturer capable of mobilizing hundreds of thousands of workers on the highest-tech assembly lines in the world — is a product of a particular time and place. There is no Foxconn model for the U.S. and there never will be, again.

    It’s unfair to blame Apple as solely responsible for this state of events. American electronics companies started outsourcing the production of radio parts to Taiwan as far back as the 1950s. Since then, the shift of supply chains to East Asia has been an increasingly inexorable global phenomenon. Apple has simply taken advantage of the new realities of globalization with more efficiency, at bigger scale, and with far better products than anyone else. (Ironically, back when Apple was manufacturing its computers in the United States, the company was seen as irrelevant to the future of the computing business — a has-been that made overpriced, underpowered devices for hipster elitists.) And what about the product? There’s a question that is getting lost in all the focus on manufacturing strategy and earnings results: Does society benefit from the iPhone and the iPad? It’s not an exaggeration to say that the iPhone revolutionized the phone business; the iPad is similarly reshaping the computer business. We are moving into a the Golden Age of Wireless, a world where nearly everyone will have an Internet-connected computer in their pocket. Are we better off because of this? Are we doing things with these devices that compensate for the decline of manufacturing in the United States?

    If we aren’t, we should be. Because the U.S. cannot compete with China or India on terms of cheap labor or industrial scale. But there’s no reason why we shouldn’t be able to compete with our brains. The software that’s inside the iPhone is one prominent example of that thesis. Using our smartphones to build a better world should be another.

    DemReadingDU

    (16,000 posts)
    28. Why now? Why all the bad publicity concerning Apple's working condictions in China?
    Sat Jan 28, 2012, 08:21 AM
    Jan 2012

    In the past couple week,s, several articles have been written, Jon Stewart did a segment, and This American Life too. It seems odd that suddenly it's big news about the working conditions in China.


     

    Demeter

    (85,373 posts)
    35. I think it's because Steve Jobs is dead
    Sat Jan 28, 2012, 09:42 AM
    Jan 2012

    In a previous life, when I was using my BSEE, people would talk about Intel, how great it was to work there, the stock options that made secretaries into millionaires, the joie de vivre that permeated the place.

    Nobody EVER said anything about Apple. I think Jobs is why. A lot of really bad karma built up, and it's now becoming public.

    hamerfan

    (1,404 posts)
    59. Apples (no pun in tended) and oranges
    Sat Jan 28, 2012, 06:04 PM
    Jan 2012

    Apple makes computers. Intel makes chips.
    Is there any computer maker whose employees are treated as humans?
    Here's a link of Chinese workers responding to a NY Times article on how workers there are treated poorly in every sector, not just electronics:

    http://thelede.blogs.nytimes.com/2012/01/25/chinese-readers-on-the-ieconomy/

    No Apple fanboi here, just want to be sure that everyone knows Apple is not the only "massa" in China.

     

    Demeter

    (85,373 posts)
    60. there was lots of praise for HP (until the originals retired and the bean-counters took over)
    Sat Jan 28, 2012, 07:48 PM
    Jan 2012

    and they made everything.

    But not a peep about Apple...


    hamerfan

    (1,404 posts)
    65. Correct!
    Sat Jan 28, 2012, 08:58 PM
    Jan 2012

    HP was a great company, at one time. As was Apple.
    I respect the hell out of Steve Wozniak, Apple co-founder and engineer extraordinaire. Not so much for Steve Jobs, Apple co-founder and marketer extraordinaire.
    My big wish for that company had been that Woz would've stayed on in a higher capacity. He didn't want to and I can sure understand that, as I enjoy peon status myself. But Apple would've been much more worker-human friendly had he been so motivated.
    But enough about this.
    Another take on Old Man River.
    Maestro, please...



     

    Demeter

    (85,373 posts)
    22. The Power to Break Up the Big Banks
    Fri Jan 27, 2012, 11:05 PM
    Jan 2012
    http://www.truth-out.org/power-break-big-banks/1327684424

    The idea that behemoth banks should be broken up is widespread and bipartisan, embraced by regulators and politicians alike. Regulators—past and present—including Simon Johnson, Richard Fisher and Thomas Hoenig have offered public support for downsizing and reforming “too big to fail banks.” The latest to publicly embrace the idea is Sheila Bair, the Republican-appointed FDIC chair who was critical in dealing with the financial crisis. Politicians also have become supportive of breaking up the big banks. Chief among them is Jon Huntsman, who made this issue the central focus of his presidential campaign, but even Newt Gingrich has expressed sympathy for splitting up financial institutions. The conservative media also has gotten into the act. The idea has garnered support from Bill Kristol of the Weekly Standard, Charles Gasparino of the Fox Business News Network and Arnold Kling of National Review, to name a few.

    So, how do regulators actually do it?

    They can use section 121 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Section 121 gives the Federal Reserve and the Financial Stability Oversight Council the authority to mitigate the “grave threat” that a financial institution poses by limiting the bank’s activities or forcing it to divest assets—in other words, the authority to break up a bank into separate institutions. If regulators do their jobs properly, the resulting institutions should be simpler, smaller, and safer. Those firms would be less likely to fail—and less dangerous in the event that they do.

    Take Bank of America, for example. In its current form, it is a “grave threat” by any reasonable definition of that phrase. On Wednesday, Public Citizen filed a petition with financial regulators, calling on them to break up the bank and reform it. The petition details how Bank of America is a systemically dangerous behemoth, holding $2.1 trillion of assets. That equals roughly 1/7 of U.S. gross domestic product and makes it the second-largest bank holding company in the U.S. Its size and number of different lines of business make it too complex to manage or regulate properly. In addition, Bank of America’s financial condition is poor and could deteriorate rapidly. Near- and long- term financial indicators demonstrate the market’s unease with the firm. It likely is undercapitalized, as it faces potential liability and market risks that could severely destabilize it. In fact, an ongoing study by the Volatility Institute at New York University’s Stern School of Business confirms the danger posed by the bank. Of all U.S. financial institutions, Bank of America contributes the most to systemic risk. This means not only that Bank of America is highly susceptible to financial crises, but also that it could “create or extend” a crisis. If Bank of America in its current form were to fail, it would devastate the financial system. Regulators would have few options for dealing with an imminent failure, and all of them would be bad. These include bailing out the firm—something prohibited by the Dodd-Frank Act—or trying to put the bank through an orderly liquidation. There are many risks involved in putting such an unwieldy institution through liquidation. Many people think it wouldn’t work. In any event, it’s likely that a liquidation would be anything but “orderly.”

    Luckily, these problems can be avoided. The Dodd-Frank law gives financial regulators the authority to act preemptively, safeguarding financial stability by engineering a soft landing for Bank of America well before a crisis materializes. It’s imperative that they use that authority.

    We’re not saying that Bank of America is bound for a crisis. We’re saying that the possibility of a crisis is all too real—and it’s a risk we can’t afford to take. That’s why financial regulators must act now.
     

    Demeter

    (85,373 posts)
    23. U.S. falls 27 places in worldwide freedom of the press rankings
    Fri Jan 27, 2012, 11:08 PM
    Jan 2012
    http://www.washingtonpost.com/blogs/blogpost/post/us-falls-27-places-in-worldwide-freedom-of-the-press-rankings/2012/01/25/gIQAFWZvQQ_blog.html?tid=sm_twitter_washingtonpost

    The United States has been downgraded. Reporters Without Borders has released its annual World Press Freedom Index and the United States fell 27 points to No. 47 on the list.

    We now tie with Argentina, Romania and Latvia at “satisfactory” levels of freedom. The reason for the plummet? “The many arrests of journalists covering Occupy Wall Street protests.”

    The United States was not alone in the falling grades: Bahrain fell 29 points because of the crackdown in that country. Egypt and Syria also fell a few points to languish near the bottom of the pack (166) and (176) respectively. Others in the Arab world fared better. Tunisia jumped 30 points thanks to its revolution.

    Pakistan was the world’s deadliest country for journalists, and Eritrea came in last in the list of overall press freedom.
     

    Demeter

    (85,373 posts)
    24. The Identified Types of Slavery--Debt Bondage
    Fri Jan 27, 2012, 11:18 PM
    Jan 2012
    Debt bondage

    Debt bondage (or bonded labour) is when a person pledges him or herself against a loan. In debt bondage, the services required to repay the debt may be undefined, and the services' duration may be undefined. Debt bondage can be passed on from generation to generation. In modern times, debt bondage is most prevalent in South Asia.

    Legal definition

    Debt bondage is classically defined as a situation when a person provides a loan to another who uses his or her labor or services to repay the debt; when the value of the work, as reasonably assessed, is not applied towards the liquidation of the debt, the situation becomes one of debt bondage. See United Nations 1956 Supplementary Convention on the Abolition of Slavery. This was very common in Ancient Greece. In ancient Athens, Solon forbade taking out loans using oneself as a security and ended any current such debts, ending debt bondage.

    Historical examples

    American colonies - Persons bonded themselves to an owner who paid their passage to the New World. They worked until the debt of passage was paid off, often for years.

    In Peru a peonage system existed from the 16th century until land reform in the 1950s. One estate in Peru that existed from the late 16th century until it ended had up to 1,700 peons employed and had a jail. Peons were expected to work a minimum of three days a week for their landlord and more if necessary to complete assigned work. Workers were paid a symbolic 2 cents per year. Workers were unable to travel outside of their assigned lands without permission and were not allowed to organize any independent community activity. In the Peruvian Amazon, debt peonage is an important aspect of contemporary Urarina society.

    The rise of Dalit politicians in India, with overwhelming support by non-Dalits, as well as a government commitment to overall improvement of education, communication and living standards has resulted in the rapid decline of bonded labor there.

    Debt bondage has been defined by the United Nations as a form of "modern day slavery" and is prohibited by international law. It is specifically dealt with by article 1(a) of the United Nations 1956 Supplementary Convention on the Abolition of Slavery. It persists nonetheless especially in developing nations, which have few mechanisms for credit security or bankruptcy, and where fewer people hold formal title to land or possessions. According to some economists, for example Hernando de Soto, this is a major barrier to development in those countries - entrepreneurs do not dare take risks and cannot get credit because they hold no collateral and may burden families for generations to come.

    Researcher Siddharth Kara has calculated the number of slaves in the world by type, and determined the number of debt bondage slaves to be 18.1 million at the end of 2006.
     

    Demeter

    (85,373 posts)
    25. Human trafficking
    Fri Jan 27, 2012, 11:25 PM
    Jan 2012

    Human trafficking is the illegal trade of human beings for the purposes of reproductive slavery, commercial sexual exploitation, forced labor, or a modern-day form of slavery.

    The Protocol to Prevent, Suppress and Punish Trafficking in Persons, especially Women and Children (also referred to as the Trafficking Protocol) was adopted by the United Nations in Palermo, Italy in 2000, and is an international legal agreement attached to the United Nations Convention against Transnational Organized Crime. The Trafficking Protocol is one of three Protocols adopted to supplement the Convention.

    The Protocol is the first global, legally binding instrument on trafficking in over half a century and the only one that sets out an agreed definition of trafficking in persons.

    The purpose of the Protocol is to facilitate convergence in national cooperation in investigating and prosecuting trafficking in persons. An additional objective of the Protocol is to protect and assist the victims of trafficking in persons with full respect for their human rights. The Trafficking Protocol defines human trafficking as:

    (a) ... the recruitment, transportation, transfer, harbouring or receipt of persons, by means of the threat or use of force or other forms of coercion, of abduction, of fraud, of deception, of the abuse of power or of a position of vulnerability or of the giving or receiving of payments or benefits to achieve the consent of a person having control over another person, for the purpose of exploitation. Exploitation shall include, at a minimum, the exploitation of the prostitution of others or other forms of sexual exploitation, forced labour or services, slavery or practices similar to slavery, servitude or the removal of organs;

    (b) The consent of a victim of trafficking in persons to the intended exploitation set forth in subparagraph (a) of this article shall be irrelevant where any of the means set forth in subparagraph (a) have been used;

    (c) The recruitment, transportation, transfer, harbouring or receipt of a child for the purpose of exploitation shall be considered “trafficking in persons” even if this does not involve any of the means set forth in subparagraph (a) of this article;

    (d) “Child” shall mean any person under eighteen years of age.

    The Trafficking Protocol entered into force on 25 December 2003. By June 2010, the Trafficking Protocol had been ratified by 117 countries and 137 parties.


    Trafficking is a lucrative industry. It has been identified as the fastest growing criminal industry in the world. It is second only to drug trafficking as the most profitable illegal industry in the world. In 2004, the total annual revenue for trafficking in persons were estimated to be between USD$5 billion and $9 billion.

    In 2005, Patrick Belser of ILO estimated a global annual profit of $31.6 billion. In 2008, the United Nations estimated nearly 2.5 million people from 127 different countries are being trafficked into 137 countries around the world.

    Victims of human trafficking are not permitted to leave upon arrival at their destination. They are held against their will through acts of coercion and forced to work or provide services to the trafficker or others. The work or services may include anything from bonded or forced labor to commercialized sexual exploitation. The arrangement may be structured as a work contract, but with no or low payment or on terms which are highly exploitative. Sometimes the arrangement is structured as debt bondage, with the victim not being permitted or able to pay off the debt.

     

    Demeter

    (85,373 posts)
    26. Peonage
    Fri Jan 27, 2012, 11:30 PM
    Jan 2012

    The words peon and peonage are derived from the Spanish peón [peˈon]. It has a range of meanings but its primary usage is to describe laborers with little control over their employment conditions.

    Labor was in great need to support the expanding agriculture, mining, industrial, and public-work jobs that arose from conquerors settling in the Americas. To account for these jobs a system came about where creditors forced debtors to work for them. This system of involuntary servitude was called peonage.

    The origin of this form of involuntary servitude goes back to the Spanish conquest of Mexico when conquistadors forced poor Natives to work for Spanish planters and mine operators. Peonage was prevalent in Spanish America especially in the countries of Mexico, Guatemala, Ecuador, and Peru. It remains an important part of social life, as among the Urarina of the Peruvian Amazon.

    Peonage was also common in the South of the United States after the American Civil War. Poor white farmers and African-Americans who could not afford their own land would farm another person's land. This was called sharecropping and initially the benefits were mutual. The land owner would pay for the seeds and tools in exchange for a percentage of the money earned from the crop and a portion of the crop. However, as time passed many landowners began to abuse this system. Instead of the benefits remaining mutual, the landowner would force the tenant farmer to buy seeds and tools from the land owner’s store which had inflated prices. Other tactics included debiting expenses against the sharecropper's profits after the crop was harvested and miscalculating the net profit from the harvest, thereby keeping the sharecropper in perpetual debt to the landowner. Since the tenant farmers could not offset the costs they were forced into involuntary labor due to the debts they owed the land owner.

    After the Civil War, the Thirteenth Amendment was added to the United States Constitution, which prohibited involuntary servitude such as peonage for all but convicted criminals. Congress also passed various laws to protect the constitutional rights of Southern blacks, making those who violated such rights by conspiracy, by trespass, or in disguise, guilty of an offense punishable by ten years in prison and civil disability. Unlawful use of state law to subvert rights under the Federal Constitution was made punishable by fine or a year's imprisonment.

    Until the 1960s, sharecroppers in Southern states were forced to continue working to pay off old debts or to pay taxes. Southern states allowed this in order to preserve sharecropping.

    In 1921, Georgia Farmer John S. Williams and his black overseer Clyde Manning were convicted in the deaths of 11 blacks working as peons in William's farm. Allegedly Williams was the only white farmer convicted for killing black peons between 1877 and 1966.

    Because of the Spanish tradition, peonage was also widespread in New Mexico after the US Civil War. Because New Mexico laws supported peonage, the US Congress passed an anti-peonage law on March 2, 1867 as follows: "Sec 1990. The holding of any person to service or labor under the system known as peonage is abolished and forever prohibited in the territory of New Mexico, or in any other territory or state of the United States; and all acts, laws, … made to establish, maintain, or enforce, directly or indirectly, the voluntary or involuntary service or labour of any persons as peons, in liquidation of any debt or obligation, or otherwise, are declared null and void." The current version of this statute is codified at Chapter 21-I of 42 U.S.C. § 1994 and makes no specific mention of New Mexico.

     

    Demeter

    (85,373 posts)
    33. Penal labour
    Sat Jan 28, 2012, 09:36 AM
    Jan 2012

    Penal labour is a form of unfree labour in which prisoners perform work, typically manual labour. The work may be light or hard, depending on the context. Forms of sentence which involve penal labour include penal servitude and imprisonment with hard labour. The term may refer to several related situations: labour as a form of punishment, the prison system used as a means to secure labour, and labour as a form of occupation of convicts. These situations can be applied to those imprisoned for political, religious, war, or other reasons as well as to criminal convicts. Large-scale implementations of penal labour include labour camps, prison farms, and penal colonies.

    Punitive prison labour

    Punitive labour, also known as convict, prison, or hard labour, is a form of unfree labour used in both past and present as an additional form of punishment beyond imprisonment alone. Punitive labour occupies a spectrum between two types: productive labour, such as industrial work; and intrinsically pointless tasks used as primitive occupational therapy and/or physical torment.

    Sometimes authorities turn prison labour into an industry, as on a prison farm. In such cases, the pursuit of income from their productive labour may even overtake the preoccupation with punishment and/or reeducation as such of the prisoners, who are then at risk of being exploited as slave-like cheap labour (profit may be minor after expenses, e.g. on security).

    On the other hand, in Victorian prisons, inmates commonly were made to work the treadmill: in some cases, this was productive labour to grind grain; in others, it served no purpose. Similar punishments included the crank machine (a device where prisoner had to turn a crank that merely pushed paddles through sand in a drum), and shot drill, carrying cannonballs around for no purpose. Semi-punitive labour also included oakum-picking: teasing apart old tarry rope to make caulking material for sailing vessels.

    British Empire

    In the British Empire in the 19th century, hard labour became a standard feature of penal servitude as penal transportation was phased out. Although it was prescribed for severe crimes (e.g. rape, attempted murder, wounding with intent, per the Offences against the Person Act 1861) it was also widely applied in cases of minor crime such as petty theft and vagrancy, as well as victimless behaviour deemed harmful to the fabric of society. Notable recipients of forced labour under British law include Oscar Wilde (after his conviction for gross indecency) and John William Gott (a terminally ill trouser salesman convicted of blasphemy).

    The British penal colonies in Australia between 1788 and 1868 provide a major historical example of convict labour, as described above: during that period, Australia received thousands of transported convict labourers, many of whom had received harsh sentences for minor misdemeanours in Britain or Ireland.

    The Penal Servitude Act 1853 (16 & 17 Vict. c.99) substituted penal servitude for transportation, except in cases where a person could be sentenced to transportation for life or for a term not less than fourteen years. Section 2 of the Penal Servitude Act 1857 (20 & 21 Vict. c.3)[2] abolished the sentence of transportation in all cases and provided that in all cases a person who would otherwise have been liable to transportation would be liable to penal servitude instead. Sentences of penal servitude were served in convict prisons and were controlled by the Home Office and the Prison Commissioners. After sentencing, convicts would be classified according to the seriousness of the offence of which they were convicted and their criminal record. First time offenders would be classified in the Star class; persons not suitable for the Star class, but without serious convictions would be classified in the intermediate class; and habitual offenders would be classified in the Recidivist class. Care was taken to ensure that convicts in one class did not mix with convicts in another.

    As late as 1885, 75% of all prison inmates were involved in some sort of productive endeavour, mostly in private contract and leasing systems. By 1935 the portion of prisoners working had fallen to 44%, and almost 90% of those worked in state-run programmes rather than for private contractors.

    Section 1 of the Penal Servitude Act 1891[4] makes provision for enactments which authorise a sentence of penal servitude but do not specify a maximum duration. It must now be read subject to section 1(1) of the Criminal Justice Act 1948.

    England and Wales

    Penal servitude was abolished for England and Wales by section 1(1) of the Criminal Justice Act 1948.[5] Every enactment conferring power on a court to pass a sentence of penal servitude in any case must be construed as conferring power to pass a sentence of imprisonment for a term not exceeding the maximum term of penal servitude for which a sentence could have been passed in that case immediately before the commencement of that Act. Imprisonment with hard labour was abolished by section 1(2) of that Act.

    Northern Ireland

    Penal servitude was abolished for Northern Ireland by section 1(1) of the Criminal Justice Act (Northern Ireland) 1953. Every enactment which operated to empower a court to pass a sentence of penal servitude in any case now operates so as to empower that court to pass a sentence of imprisonment for a term not exceeding the maximum term of penal servitude for which a sentence could have been passed in that case immediately before the commencement of that Act.
    Imprisonment with hard labour was abolished by section 1(2) of that Act.

    Scotland

    Penal Servitude was abolished for Scotland by section 16(1) of the Criminal Justice (Scotland) Act 1949 on 12 June 1950.
    Imprisonment with hard labour was abolished by section 16(2) of that Act.

    Every enactment conferring power on a court to pass a sentence of penal servitude in any case must be construed as conferring power to pass a sentence of imprisonment for a term not exceeding the maximum term of penal servitude for which a sentence could have been passed in that case immediately before 12 June 1950. But this does not empower any court, other than the High Court, to pass a sentence of imprisonment for a term exceeding three years.

    China

    In the People's Republic of China, laojiao (Re-education through labour) and laogai (Reform through labour) have been used as a way to punish political prisoners. They were intended not only for criminals, but also for those deemed to be counter-revolutionary (political and/or religious prisoners).

    Japan

    Most Japanese prisoners are required to engage in prison labour, often in manufacturing parts which are then sold cheaply to private Japanese companies. This practice has raised charges of unfair competition since the prisoners' wages are far below market rate.

    United States

    The 13th Amendment of the American Constitution in 1865 explicitly allows penal labour as it states that "neither slavery nor involuntary servitude, except as a punishment for a crime whereof the party shall have been duly convicted, shall exist within the United States, or any place subject to their jurisdiction." However the "convict lease" system became popular in the South in the late 19th century. Since the impoverished state governments could not afford penitentiaries, they leased out prisoners to work at private firms. Douglas A. Blackmon argues that it was Southern policy to intimidate blacks; tens of thousands of African Americans were arbitrarily arrested and leased to coal mines, lumber camps, brickyards, railroads, quarries and farm plantations. The state governments maximized profits by putting the responsibility on the lessee to provide food, clothing, shelter, and medical care for the prisoners, which resulted in extremely poor conditions, numerous deaths, and perhaps the most inhumane system of labour in the United States. Reformers abolished convict lease in the Progressive Era, stopping the system in Florida in 1919. The last state to abolish the practice was Alabama in 1927.

    Penal labour is sometimes used as a punishment in the U.S. military.

    Republic of Ireland

    Penal servitude was abolished for the Republic of Ireland by section 11(1) of the Criminal Law Act, 1997.[11]
    Every enactment conferring a power on a court to pass a sentence of penal servitude in any case must be treated as an enactment empowering that court to pass a sentence of imprisonment for a term not exceeding the maximum term of penal servitude for which a sentence could have been passed in that case immediately before the commencement of the Criminal Law Act 1997.

    In the case of any enactment in force on the 5 August 1891 (the date on which section 1 of the Penal Servitude Act 1891 came into force) whereby a court had, immediately before the commencement of the Criminal Law Act 1997, power to pass a sentence of penal servitude, the maximum term of imprisonment may not exceed five years or any greater term authorised by the enactment.

    Imprisonment with hard labour was abolished by section 11(3) of that Act.

    Soviet Union

    Another historically significant example of forced labour was that of political prisoners and other persecuted people in labour camps, especially in totalitarian regimes since the 20th century where millions of convicts were exploited and often killed by hard labour and bad living conditions. For much of the history of the Soviet Union and other Communist states, political opponents of these governments were often sentenced to forced labour camps. The Soviet Gulag camps were a continuation of the punitive labour system of Imperial Russia known as katorga, but on a larger scale.

    Between 1930 and 1960, the Soviet regime created many Lager labour camps in Siberia and Central Asia. There were at least 476 separate camp complexes, each one comprising hundreds, even thousands of individual camps. It is estimated that there may have been 5-7 million people in these camps at any one time. In later years the camps also held victims of Stalin’s purges as well as World War II prisoners. It is possible that approximately 10% of prisoners died each year. Out of the 91,000 Germans captured alive after the Battle of Stalingrad, only 6,000 survived the Gulag and returned home. Many of these prisoners, however, had died of illness contracted during the siege of Stalingrad and in the forced march into captivity.

    Probably the worst of the camp complexes were the three built north of the Arctic Circle at Kolyma, Norilsk and Vorkuta. Prisoners in Soviet labour camps were worked to death with a mix of extreme production quotas, brutality, hunger and the harsh elements. In all, more than 18 million people passed through the Gulag, with further millions being deported and exiled to remote areas of the Soviet Union. The fatality rate was as high as 80% during the first months in many camps.

    Immediately after the start of the German invasion of the Soviet Union during World War II, the NKVD massacred about 100,000 prisoners who awaited deportation either to NKVD prisons in Moscow or to the Gulag. Michael McFaul, in his New York Times article of 11 June 2003, entitled 'Books of the Times; Camps of Terror, Often Overlooked', has this to say about the state of contemporary dialogue on Soviet slavery:

    It should now be known to all serious scholars that the camps began under Lenin and not Stalin. It should be recognized by all that people were sent to the camps not because of what they did, but because of who they were. Some may be surprised to learn about the economic function that the camps were designed to perform. Under Stalin, the camps were simply a crueler but equally inefficient way to exploit labor in the cause of building socialism than the one practiced outside the camps in the Soviet Union. Yet, even this economic role of the camps has been exposed before. What is remarkable is that the facts about this monstrous system so well documented in Applebaum's book are still so poorly known and even, by some, contested. For decades, academic historians have gravitated away from event-focused history and toward social history. Yet, the social history of the gulag somehow has escaped notice. Compared with the volumes and volumes written about the Holocaust, the literature on the gulag is thin.


    Non-punitive prison labour

    In a number of penal systems, the inmates have the possibility of a job. This may serve several purposes. One goal is to give an inmate a meaningful way to occupy their prison time and a possibility of earning some money. It may also play an important role in resocialisation: inmates may acquire skills that would help them to find a job after release. It may also have an important penological function: reducing the cruel monotony of prison life for the inmate, keeping inmates busy on productive activities, rather than, for example, potentially violent or antisocial activities, and helping to increase inmate fitness, and thus decrease health problems, rather than letting inmates succumb to a sedentary lifestyle.

    The classic occupation in 20th-century British prisons was sewing mailbags. This has diversified into areas such as engineering, furniture making, desktop publishing, repairing wheelchairs and producing traffic signs, but such opportunities are not widely available, and many prisoners who work perform routine prison maintenance tasks (such as in the prison kitchen) or obsolete unskilled assembly work (such as in the prison laundry) that is argued to be no preparation for work after release. Classic 20th-century American prisoner work involved making license plates; the task is still being performed by inmates in certain areas.

    A significant amount of controversy has arisen with regards to the use of prison labour if the prison in question is privatized, a phenomenon present in a few areas of the United States, where goods produced through penal labour are regulated through the Ashurst-Sumners Act which criminalizes the interstate transport of such goods.

    Present-day prison work programs and work release programs may or may not be classed as penal labour (depending on whose definition is used—whether the punitive component is present), but one of the reasons why a high imprisonment rate perennially concerns some citizens is that people with socioeconomic power (business owners, lobbying their politicians) who develop an affinity for the cheapness of prison labor have an inherent conflict of interest that could easily give them incentive to find pretenses for making sure that plenty of working class people end up arrested and convicted, even if on minor charges. This is because prison labor can be less expensive to their businesses than non-prison labor, and it can also depress wages for non-prison labor by competing economically against it. For example, in the US, metal fabrication work that normally commands wages in the USD 12–18 per hour range can sometimes be gotten from prison or work release programs at USD 5–8. The common sociological argument on this topic is a cui bono argument that perhaps socioeconomically dominant people have financial interests in maintaining a status quo in which there are many ways for the working poor to go astray of the law, and not so many for them to work their way out of poverty honestly. This argument has implications for the War on Drugs; the fact that a common part of American ghetto culture is taking a risk at lucrative drug trade work and hoping not to get caught, in an environment of poor employment otherwise, looks suspicious from this view. It shares aspects with debt bondage that was common in the 19th century, as, for example, brothel madams or coal mining companies would find ways to keep their workers [supposedly] in debt to them ("I owe my soul to the company store&quot , in order to apply coercive pressure to keep young women from leaving the prostitution business or to keep men from leaving their underpaid coal mine work. Although the people of U.S. business management and U.S. jurisprudence today would never agree that such motives drive their choices, the social-science argument is that society must be vigilant to keep subconscious conflict of interest from undermining attempts to improve socioeconomic conditions among the working poor.
     

    Demeter

    (85,373 posts)
    37. Sexual slavery
    Sat Jan 28, 2012, 09:54 AM
    Jan 2012

    Sexual slavery is when unwilling people are coerced into slavery for sexual exploitation. The incidence of sexual slavery by country has been studied and tabulated by UNESCO, with the cooperation of various international agencies.[1] Sexual slavery may include single-owner sexual slavery, ritual slavery sometimes associated with certain religious practices, slavery for primarily non-sexual purposes but where non-consensual sex is common, or forced prostitution. The Vienna Declaration and Programme of Action calls for an international response in order to attempt to eradicate sexual slavery on the basis that it is a human rights issue.

    IF YOU WANT THE HISTORICAL STORY, SEE WIKIPEDIA

    Contemporary sexual slavery

    Official estimates of individuals in sexual slavery worldwide vary. In 2001 the International Organization for Migration estimated 400,000, the Federal Bureau of Investigation estimated 700,000 and UNICEF estimated 1.75 million.

    Europe

    In Netherlands, the Bureau of the Dutch Rapporteur on Trafficking in Human Beings in 2005 estimated that there are from 1,000 to 7,000 trafficking victims a year. Most police investigations relate to legal sex businesses, with all sectors of prostitution being well represented, but with window brothels being particularly overrepresented. [49][50][51] Dutch news site Expatica reported that in 2008, there were 809 registered trafficking victims in the Netherlands; out of those 763 were women and at least 60 percent of them were reportedly forced to work in the sex industry. Of reported victims, those from Hungary were all female and all forced into prostitution.

    In Germany, the trafficking of women from Eastern Europe is often organized by people from that same region. German authorities identified 676 sex-trafficking victims in 2008, compared with 689 in 2007. The German Federal Police Office BKA reported in 2006 a total of 357 completed investigations of human trafficking, with 775 victims. Thirty-five percent of the suspects were Germans born in Germany and 8% were German citizens born outside of Germany.

    In Greece, according to NGO estimates in 2008, there may be a total 13,000–14,000 trafficking victims of all types in the country at any given time. Major countries of origin for trafficking victims brought into Greece include Nigeria, Ukraine, Russia, Bulgaria, Albania, Moldova, Romania, and Belarus.

    In Switzerland, the police estimated in 2006 that there may be between 1,500 and 3,000 victims of all types of human trafficking. The organizers and their victims generally come from Hungary, Slovakia, Romania, Ukraine, Moldova, Lithuania, Brazil, the Dominican Republic, Thailand and Cambodia, and, to a lesser extent, Africa.

    In Belgium, in 2007, prosecutors handled a total of 418 trafficking cases, including 219 economic exploitation and 168 sexual exploitation cases. In the same year, the federal judicial police handled 196 trafficking files, compared with 184 in 2006. In 2007 the police arrested 342 persons for smuggling and trafficking-related crimes. A recent report by RiskMonitor foundation estimated that 70% of the prostitutes who work in Belgium are from Bulgaria.

    In Austria, Vienna has the largest number of reported trafficking cases, although trafficking is also a problem in urban centers such as Graz, Linz, Salzburg, and Innsbruck. The NGO Lateinamerikanische Frauen in Oesterreich–Interventionsstelle fuer Betroffene des Frauenhandels (LEFOE-IBF) reported assisting 108 victims of all types of human trafficking in 2006, down from 151 in 2005.

    In Spain, in 2007, officials identified 1,035 sex trafficking victims and 445 labor trafficking victims.

    Africa

    In Africa the colonial powers abolished slavery in the nineteenth and twentieth centuries. However, in areas outside their jurisdiction, such as the Mahdist empire in Sudan, the practice continued to thrive (see also: Slavery in modern Africa). Now, institutional slavery has been banned worldwide, but there are numerous reports of women sex slaves in areas without effective government control, such as Sudan, Liberia, Sierra Leone, northern Uganda, Congo, Niger and Mauritania. In Ghana, Togo, and Benin, a form of religious prostitution known as trokosi ("ritual servitude&quot forcibly keeps thousands of girls and women in traditional shrines as "wives of the gods", where priests perform the sexual function in place of the gods.

    Asia

    In January 2010, the supreme court of India stated that India is "becoming a hub" for largescale child prostitution rackets, and suggested the setting up of a special investigating agency to tackle the growing problem.

    An article about the Rescue Foundation in New Internationalist magazine states that "according to Save the Children India, clients now prefer 10- to 12-year-old girls". The same article attributes the rising number of prostitutes believed to have contracted HIV in India’s brothels as a factor in India becoming the country with the second-largest number of people living with HIV/AIDS in the world, behind South Africa.

    In 2007, the Ministry of Women and Child Development estimated that there are around 2.8 million sex workers in India, with 35.47 percent of them entering the trade before the age of 18 years. The number of prostitutes has also doubled in the recent decade. One news article states that an estimated 200,000 Nepalese girls have been trafficked to red light areas of India. Nepalese women and girls, especially virgins, are reportedly favoured in India because of their fair skin and young looks. One report estimates that every year between 5,000 and 7,000 Nepalese girls are trafficked into the red light districts in Indian cities, and that many of the girls may only be 9 or 10 years old.

    In Pakistan, young girls have been sold by their families to big-city brothel owners. Often this happens due to poverty or debt, whereby the family has no other way to raise the money than to sell the young girl. Cases have also been reported where wives and sisters have been sold to brothels to raise money for gambling, drinking or drug addictions. Sex slaves are reportedly also bought by 'agents' in Afghanistan who trick young girls into coming to Pakistan for well-paying jobs. Once in Pakistan they are taken to brothels (called Kharabat) and forced into sexual slavery, some for many years.

    In Thailand, Thailand’s Health System Research Institute reported in 2005 that children in prostitution make up 40% of Thailands prostitutes, and that a proportion of prostitutes over the age of 18, including foreign nationals mostly from Myanmar, China's Yunnan province, Laos and Cambodia, are also in some state of forced sexual servitude. The Tourism Police Bureau in 1997 stated that there were 500 Chinese and 200 European women in prostitution in Bangkok, many of whom entered Thailand illegally, often through Burma and Laos. Earlier reports, however, suggest different figures. (Police Colonel Sanit Meephan, deputy chief of Tourism Police Bureau, "Thailand popular haunt for foreign prostitues," The Nation, 15 January 1997)

    The trafficking in Persons Report of 2007 from the US Department of State says that sexual slavery exists in the Arab states of the Persian Gulf, where women and children may be trafficked from the post-Soviet states, Eastern Europe, Far East, Africa, South Asia or other parts of the Middle East.

    United States

    The San Francisco Chronicle reported in 2006 that in the 21st century women, mostly from South America, Southeast Asia, and the former Soviet Union, are trafficked into the United States for the purposes of sexual slavery. A 2006 ABC News story stated that, contrary to existing misconceptions, American citizens may also be coerced into sex slavery.

    In 2001 the United States State Department estimated that 50,000 to 100,000 women and girls are trafficked each year into the United States. In 2003, the State Department report estimated that a total of 18,000 to 20,000 individuals were trafficked into the United States for either forced labor or sexual exploitation. The June 2004 report estimated the total trafficked annually at between 14,500 and 17,500. The Bush administration set up 42 Justice Department task forces and spent more than $150 million on attempts to reduce human trafficking.. However, in the seven years since the law was passed, the administration has identified only 1,362 victims of human trafficking brought into the United States since 2000, nowhere near the 50,000 or more per year the government had estimated.

    The Girl’s Education & Mentoring Services (GEMS), an organization based in New York, claims that the majority of girls in the sex trade were abused as children. Poverty and a lack of education play major roles in the lives of many women in the sex industry. According to a report conducted by the University of Pennsylvania, anywhere from 100,000 up to 300,000 American children at any given time may be at risk of exploitation due to factors such as drug use, homelessness, or other factors connected with increased risk for commercial sexual exploitation. However, the report emphasized, “The numbers presented in these exhibits do not, therefore, reflect the actual number of cases of CSEC in the United States but, rather, what we estimate to be the number of children ‘at risk’ of commercial sexual exploitation.”

    The 2010 Trafficking in Persons report described the United States as, "a source, transit, and destination country for men, women, and children subjected to trafficking in persons, specifically forced labor, debt bondage, and forced prostitution."
    Sexual slavery in the United States may occur in multiple forms and in multiple venues. Sex trafficking in the United States may be present in Asian massage parlors, Mexican cantina bars, residential brothels, or street-based pimp-controlled prostitution. There is currently a debate among the anti-trafficking community in the United States over the extent of sexual slavery. Some groups arguing that exploitation is inherent in the act of commercial sex, while other groups take a stricter approach to defining sexual slavery, considering an element of force, fraud or coercion to be necessary for sex slavery to exist.

    The prostitutes in illegal massage parlors may be forced to work out of apartment complexes for many hours a day. Many clients may not realize that some of the women who work in these massage sex parlors are actually forced in prostitution. The women may initially be lured into the US under false pretenses. In huge debt to their 'owners', they are then forced to earn enough to eventually buy their freedom. In some cases women who have been sex trafficked may have have to undergo plastic surgery or even forced abortions. An article in the Berkeley University Press reports that human trafficking and sexual enslavement are not limited to any specific location or social class, and concludes that there is a strong reliance on individuals to report suspicious behavior, because the psychological and physical abuse occurs which can often leave a victim unable to escape on their own.

    In 2000 Congress created the Victims of Trafficking and Violence Protection Act with tougher punishments for sex traffickers and also the creation of the possibility for former sex slaves to obtain a T-1 visa. To obtain the visa women must, "prove they were enslaved by 'force, fraud or coercion'." The visa allows former victims of sex trafficking to stay in the United States for 3 years and then apply for a green card.

    In the United States the Fundamentalist Church of Jesus Christ of Latter Day Saints has also been implicated in the trafficking of underage women across state and international boundaries (US/Canada). In most cases, this is for the continuation of polygamous practices, in the form of plural marriage.

    IN MY OWN CITY, A STRING OF MASSAGE PARLORS WERE RAIDED AND SHUT DOWN--WHETHER THE WOMEN WERE WILLING OR ENSLAVED WAS NOT PUBLICIZED, BUT ODDS ARE THEY WERE.

     

    Demeter

    (85,373 posts)
    43. Wage Slavery
    Sat Jan 28, 2012, 10:49 AM
    Jan 2012

    Wage slavery refers to a situation where a person's livelihood depends on wages, especially when the dependence is total and immediate. It is a negatively connoted term used to draw an analogy between slavery and wage labor, and to highlight similarities between owning and employing a person. The term 'wage slavery' has been used to criticize economic exploitation and social stratification, with the former seen primarily as unequal bargaining power between labor and capital (particularly when workers are paid comparatively low wages, e.g. in sweatshops), and the latter as a lack of workers' self-management (which criticizes the job choices that an economy allows). The criticism of social stratification covers a wider range of employment choices bound by the pressures of a hierarchical social environment (i.e. working for a wage not only under threat of starvation or poverty, but also of social stigma or status diminution).

    Similarities between wage labor and slavery were noted at least as early as Cicero. Before the American Civil War, Southern defenders of African American slavery invoked the concept to favorably compare the condition of their slaves to workers in the North. With the advent of the industrial revolution, thinkers such as Proudhon and Marx elaborated the comparison between wage labor and slavery in the context of a critique of property not intended for active personal use.

    The introduction of wage labor in 18th century Britain was met with resistance – giving rise to the principles of syndicalism. Historically, some labor organizations and individual social activists, have espoused workers' self-management or worker cooperatives as possible alternatives to wage labor.

    (19th century female workers in Lowell, Massachusetts were arguably the first people to use the term "wage slave"...the city where I went to school. After growing up in Detroit...I should be an expert on this!)

    THIS SUBJECT IS DISCUSSED IN GREAT DETAIL AT

    http://en.wikipedia.org/wiki/Wage_slavery

    INCLUDING HOW DIFFERENT POLITICAL SYSTEMS TREAT LABOR, AND HOW DIFFERENT ECONOMIC THEORISTS CONCEPTUALIZE LABOR ISSUES.

    I CANNOT DO JUSTICE TO IT IN A POST, SO DO CLICK ON THE LINK

    DemReadingDU

    (16,000 posts)
    53. As the economy further devolves
    Sat Jan 28, 2012, 03:01 PM
    Jan 2012

    And there are so many people losing jobs and deep in debt, I could see some form of 'slavery' such that people will be required (forced) to work for little if any wages to paydown the debts.

     

    Demeter

    (85,373 posts)
    42. IN SUMMARY: UNFREE LABOR
    Sat Jan 28, 2012, 10:40 AM
    Jan 2012

    Unfree labour includes all forms of slavery as well as all other related institutions (e.g. debt slavery, wage slavery, serfdom, conscription, and labour camps).

    According to the labour theory of value (as used by the classical economists), under capitalism, workers never keep all of the wealth they create, as some of it goes to the profit of capitalists. By contrast, according to the subjective theory of value (as used by neoclassical economists), the wages offered necessarily represent the marginal wealth generated by the labour, and any profit (or loss) is due to other inputs provided, such as arbitrage, time value of money, or risk. It is argued by supporters of certain theories of distributive justice that any occasion on which a worker is able to turn down employment and look elsewhere is "free labour".

    ONE FORM OF SLAVERY NOT MENTIONED ABOVE IS CONSCRIPTION--COMMONLY REFERRED TO AS "THE DRAFT".
    CONSCRIPTION FOR CIVIL PURPOSES HAS ALSO BEEN PRACTICED BY VARIOUS POWER STRUCTURES AT VARIOUS TIMES.

    The present situation

    The International Labour Organization (ILO) estimates that at least 12.3 million people are victims of forced labour worldwide; of these, 9.8 million are exploited by private agents and more than 2.4 million are trafficked). Other 2.5 million are forced to work by the state or by rebel military groups.

    According to the ILO Special Action Programme to Combat Forced Labour (SAP-FL), global profits from forced trafficked labour exploited by private agents are estimated at US$44,3 billion per year. About 70% of this value (US$ 31.6 billion) come from trafficked victims. At least the half of this sum - more than US$ 15 billion - comes from industrialized countries.

    I THINK THESE ARE GROSSLY UNDERESTIMATED NUMBERS. I THINK THIS UNDERLYING ISSUE IS THE ROOT OF ALL EVIL IN THE WORLD--ITS ECONOMY, ITS POLITICS, AND US HUMANS' SURVIVAL AS A SPECIES.




    xchrom

    (108,903 posts)
    30. Germany seeks EU control over Greek finances
    Sat Jan 28, 2012, 09:24 AM
    Jan 2012
    http://www.aljazeera.com/news/europe/2012/01/201212810543571585.html

    Germany wants Greece to relinquish control over its budget policy to European institutions as part of discussions over a second rescue package, Al Jazeera has learnt.

    The proposal would give European Union institutions operating in Greece power over the country's fiscal policy.

    Al Jazeera’s Andrew Simmons, reporting from Davos, said a source in the German government had confirmed the circulation of the proposal among EU countries, but that it was only one of several proposals.

    “It’s only a proposal. There is no suggestion that there is a deal being made of it to be a condition of the next bail out for Greece," he said.

    “This is incredibly controversial because Greece will be put under EU control for its decision on tax and budget. It is really contentious right now."

    Fuddnik

    (8,846 posts)
    32. They've learned a lesson from US Economic Hit Men.
    Sat Jan 28, 2012, 09:35 AM
    Jan 2012

    You don't need to send in an army to take over a country anymore. Send in Banksters and Economists instead. It's not as messy as an invasion.

     

    Demeter

    (85,373 posts)
    34. But it takes generations AND a Shooting War to Undo the Damage
    Sat Jan 28, 2012, 09:38 AM
    Jan 2012

    WWII took far less time to recover...even with the economic hitmen...who were just forming and educating themselves.

    Hotler

    (11,394 posts)
    74. Fuckers! All of them. Intead of marching on Wall St. ...
    Sun Jan 29, 2012, 02:35 PM
    Jan 2012

    We need to march outside their gated homes.

    xchrom

    (108,903 posts)
    45. EU rejects call for control over Greek budget
    Sat Jan 28, 2012, 11:37 AM
    Jan 2012
    http://hosted.ap.org/dynamic/stories/E/EU_EUROPE_FINANCIAL_CRISIS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-01-28-10-34-41

    BRUSSELS (AP) -- The European Union's executive body is rejecting calls from Germany to establish a eurozone budget commissioner who would directly control tax and spending decisions in debt-ridden Greece.

    The European Commission said Saturday that "executive tasks must remain the full responsibility of the Greek government, which is accountable before its citizens and its institutions."

    The Commission, the European Central Bank, and the International Monetary Fund already have unprecedented powers over Greek spending, after negotiating with Athens stringent austerity measures and economic reforms in return for a first, multi-billion euro bailout.

    They are reviewing implementation of these measures and discussing a second bailout.
     

    Demeter

    (85,373 posts)
    54. Even though it was a patently illegal and absurd idea
    Sat Jan 28, 2012, 03:33 PM
    Jan 2012

    I wonder if I detect the light-fingered touch of a vampire squid tentacle?

    Can't think GS would want to lose the whole game, just because Angela is thinking she's a dominatrix.

    Such Nazi-like provocation could really call the whole game off in civil war and revolution across Europe and then the rest of the world, long before the last drop of blood had been sucked dry by the fastidious banksters.

    Fuddnik

    (8,846 posts)
    31. Good economic news, Bad economic news.
    Sat Jan 28, 2012, 09:32 AM
    Jan 2012

    Good news.

    Did the taxes yesterday, getting a refund of just over $4,000.

    Bad news, bills due by Feb. 20th.

    Florida Citizens homeowners insurance. $2,100. That's with a 50% reduction for dropping sinkhole coverage.
    FEMA flood insurance, $1,100.
    Property taxes. $900.

    That should leave about $40, which is enough to buy two 1.75 bottles of Sobieski Vodka. And maybe some dog treats.

    DemReadingDU

    (16,000 posts)
    44. Are those property taxes for 1 year?
    Sat Jan 28, 2012, 11:01 AM
    Jan 2012

    For 1 year, our property taxes are over $4000! and we're not even living in a McMansion area


    Homeowners insurance per year, $713
    Flood insurance per year, $313


    Fuddnik

    (8,846 posts)
    47. Yes.
    Sat Jan 28, 2012, 12:03 PM
    Jan 2012

    They were as high as about $1,300 per year during the boom, but have been going down the last few years as values plummet.

    Everybody bitches about it, but I thought it was a deal. In Cleveland, I was paying about $2,400 per year, 10 years ago.

    But, on the other hand, we pay fees for rubbish removal, street lights, re-paving assessments, etc.

    Homeowners insurance is the killer down here. I was paying over $3,000 per year with State Farm on a $250k replacement value, before they cancelled me last year. But, that included sinkhole coverage too. If I lived 2 miles further west, closer to the Gulf, my insurance would be at least double, and maybe triple that figure. A lot of real estate deals fell through over there when people found out that insurance would cost more than their mortgage.

    As for flood insurance, we're in a designated AE zone (possible 100 year flood) across the street from the Anclote River.

     

    Demeter

    (85,373 posts)
    38. The Pathology of Inequality in the US: Our National Dementia About Work and Wealth
    Sat Jan 28, 2012, 10:01 AM
    Jan 2012
    http://blog.buzzflash.com/node/13285

    PAUL BUCHHEIT FOR BUZZFLASH AT TRUTHOUT

    Inequality is a disease of society, a cancer growing out of control at one end of the body while the rest of it withers away.

    It's not just about the money, although income and wealth inequality have never been worse in the United States. It's also the pathological adherence to free market principles that have not worked for most of the country. And a bizarre idolization of the 'innovators' who have rigged the financial system in their favor. High-priced schemers and swindlers and scoundrels roam free on Wall Street, while the downtrodden are condemned for trying to survive. "If you steal $10 from a man's wallet," observed former Secretary of the Interior Walter Hickel, "you're likely to get into a fight, but if you steal billions from the the commons, co-owned by him and his descendants, he may not even notice."

    If you steal $10 from a man's wallet...


    • Leandro Andrade is serving a life sentence in California for stealing five videotapes from a K-Mart. He was convicted under the state's three strikes law, after convictions for petty theft, burglary, and possession of marijuana. Justice David Souter noted that Andrade "committed theft of trifling value...with no violent crimes against the person."

    • Sisters Jamie and Gladys Scott received double life sentences in 1994 for an $11 armed robbery, the first criminal offense for either of them. They spent 17 years in jail.

    • As of 2003 in California there were 344 individuals serving sentences of 25 years or more for shoplifting as a third offense, in many cases after two non-violent offenses.


    If you steal billions from the commons...


    • The savings and loan fraud cost the nation between $300 billion and $500 billion, about 100 times more than the total cost of burglaries in 2010. The financial system bailout has already cost the country $3 trillion.

    • Goldman Sachs packaged bad debt, sold it under a different name, persuaded ratings services to label it AAA, and then bet against it by selling it short. Other firms accused of fraud and insider trading were Morgan Stanley, Bear Stearns, Bank of America, Countrywide Financial, and Wells Fargo.

    • The New York Times reported in 2008 that the Justice Department had postponed the bribery or fraud prosecutions of over 50 corporations, choosing instead to enter into agreements involving fines and 'monitoring' periods.


    America is suffering from a "pathology of inequality," a term coined by Chilean economist Fernando Fajnzylber with regard to third-world Latin American countries that seemed autocratic and poverty-stricken at the time, but many of whom are now less unequal than the United States. One percent of our body doesn't feel the pain. American Psychological Association research indicates that wealthier people "may just not be as adept at recognizing the cues and signals of suffering because they haven't had to deal with as many obstacles in their lives."

    As the body gets sicker, thinking becomes incoherent:

    "The financial system led us into the crisis and it will lead us out." -- Goldman Sachs chairman Lloyd Blankfein.
    "Western-style private enterprise...will lead the world out of the mess it led the world into." -- Chicago Tribune.
    "If capitalism is perceived to not be working in America...it's because the system isn't capitalist enough." -- Rachel Marsden

    And dementia sets in.
     

    Demeter

    (85,373 posts)
    39. How Power and Influence Helped Big Banks Rewrite the Rules
    Sat Jan 28, 2012, 10:07 AM
    Jan 2012
    http://www.truth-out.org/how-power-and-influence-helped-big-banks-rewrite-rules/1327597859

    Big banks are rewriting the rules of our economy to the exclusive benefit of their own bottom line. But how did our political and financial class shift the benefits of the economy to the very top, while saddling us with greater debt and tearing new holes in the safety net?

    This weekend on Moyers & Company (check your local listings ), Bill Moyers talks with former Citigroup Chairman John Reed and former Senator Byron Dorgan to explore a momentous instance: how the mid-90’s merger of Citicorp and Travelers Group – and a friendly Presidential pen — brought down the Glass-Steagall Act, a crucial firewall between banks and investment firms which had protected consumers from financial calamity since the aftermath of the Great Depression. In effect, says Moyers, they put the watchdog to sleep. EUTHANIZED IT, ACTUALLY--DEMETER

    Watch a special preview of the show before it airs on TV this weekend and online Friday evening. VIDEO AT LINK

    Preview: Corporate Greed and Power from BillMoyers.com on Vimeo.

    There’s no clearer example of the collusion between government and corporate finance than the Citicorp-Travelers merger, which -- thanks to the removal of Glass-Steagall -- enabled the formation of the financial behemoth known as Citigroup. But even behemoths are vulnerable; when the meltdown hit, the bank cut more than 50,000 jobs, and the taxpayers shelled out more than $45 billion to save it.

    Senator Dorgan tells Moyers, “If you were to rank big mistakes in the history of this country, that was one of the bigger ones because it has set back this country in a very significant way.”

    Now, John Reed regrets his role in the affair, and says lifting the Glass Steagall protections was a mistake. Given the 2008 meltdown, he’s surprised Wall Street still has so much power over Washington lawmakers. “I'm quite surprised the political establishment would listen to groups that have been so discredited,” Reed tells Moyers. “It wasn't that there was one or two or institutions that, you know, got carried away and did stupid things. It was, we all did… And then the whole system came down.”

    How Wall Street and Washington got together and stacked the deck against the rest of us, next on Moyers & Company
     

    Demeter

    (85,373 posts)
    41. ONE CONCLUSION FROM THE ARTICLE
    Sat Jan 28, 2012, 10:27 AM
    Jan 2012

    We need to think differently about where we live and work. Too often communities across the nation are given blanket treatment as if their problems are interchangeable. But that is not the case. Each metro/micro area has its own particular geography, resources, population characteristics, etc. that make it hard to generalize about solutions to unemployment. Local governments may be best positioned to understand the needs of their respective areas—and, of course, they may need federal and state money to improve education, make long-term infrastructure changes, and offer industries opportunities to expand. But if local governments continue to focus only on short-termism, dead zones will not fade away. What many proposed solutions ignore is how hard it is to imagine a business relocating or expanding operations—creating jobs—in dead zones that they view as deteriorating.

    xchrom

    (108,903 posts)
    46. 46 Million Americans Live in Poverty -- So Why Isn't Anybody Saying the P Word?
    Sat Jan 28, 2012, 11:56 AM
    Jan 2012
    http://www.alternet.org/newsandviews/article/767199/46_million_americans_live_in_poverty_--_so_why_isn%27t_anybody_saying_the_p_word/

    Did you catch the reference in President Obama's State of the Union address to "poverty"?

    You can be forgiven if you didn't. Greg Kaufmann of The Nation, who recently launched a weekly column, "This Week in Poverty," on thenation.com, warns in his column today that if you review the video or the transcript of Obama's speech, "don't blink, you'll miss it."

    Here’s what he had to say about poverty...:

    “A great teacher can offer an escape from poverty to the child who dreams beyond his circumstance.”

    Got that? Great teacher, poverty, child who dreams. We good?

    People living below the poverty line, 46 million Americans, represent 15 percent of the country, including more than one in five of the nation's youth. And yet, as Kaufmann writes today, "in a 65-minute address describing the state of the union, President Obama decided it merited barely a mention."

    Kaufmann, who you can hear above in an interview I conducted earlier this month, is on a crusade to get progressives to start saying "the p word" again. So each week Kaufmann writes a column that highlights the facts, statistics and perspectives that he believes should drive our discussion about poverty, its causes and solutions.

    Fuddnik

    (8,846 posts)
    50. They saw what happened to John Edwards.
    Sat Jan 28, 2012, 02:02 PM
    Jan 2012

    And they excised that word from the Official Oceanic 1984 Dictionary.

    xchrom

    (108,903 posts)
    48. IMF warns austerity plans could 'strangle' growth
    Sat Jan 28, 2012, 12:17 PM
    Jan 2012
    http://www.irishtimes.com/newspaper/breaking/2012/0128/breaking9.html

    International Monetary Fund managing director Christine Lagarde said today no economy is "immune" from the European sovereign debt crisis and warned that inappropriate spending cuts could "strangle" growth.

    "It's a crisis that could have spill over effects around the world," she said today at the World Economic Forum in Davos, Switzerland. Ms Lagarde said governments should also boost their bailout funds.

    "It is critical that the euro zone members actually develop a clear, simple firewall that can limit the contagion," she said.

    She said inappropriate spending cuts could "strangle" growth prospects and stressed that austerity programmes must be tailored to the needs and challenges facing each economy rather than "across the board".

    bread_and_roses

    (6,335 posts)
    58. I'm so sick of their euphimistic "budget discipline" - "austerity"
    Sat Jan 28, 2012, 05:24 PM
    Jan 2012

    They should say "just let the poor die" - no health care, no retirement - was reading a while back about Greek neighborhoods without power, elders going without medicine, escalating to an article not long ago - hospitals closing, children being abandoned to charity ....

    xchrom

    (108,903 posts)
    49. Firewall divides euro zone as Rehn's talk of unity falls on sceptical ears
    Sat Jan 28, 2012, 12:31 PM
    Jan 2012
    http://www.irishtimes.com/newspaper/finance/2012/0128/1224310867479.html

    THE EURO ZONE siege of Davos continued yesterday, with German and French leaders disagreeing with each other – and EU officials – over whether a bigger firewall is needed to stabilise the single currency.

    Amid a third day of divergent views over bailouts, budgetary rules and eurobonds at the World Economic Forum, EU commissioner Olli Rehn told disbelieving delegates there was “quite a strong unity” of views ahead of Monday’s summit in Brussels.

    Mr Rehn also delivered an upbeat assessment of debt restructuring talks in Athens, saying a deal with Greek creditor banks was likely in the coming days.

    French finance minister François Baroin said he agreed with his German colleague Wolfgang Schäuble on the need to agree rules for firm budgetary discipline, but disagreed with Berlin’s refusal to boost the capacity of the EU bailout “firewall”.
     

    Demeter

    (85,373 posts)
    55. I Feel Much Safer When the Elites DON'T Agree
    Sat Jan 28, 2012, 03:38 PM
    Jan 2012

    Silly me, it's just my conspiracy tendency...

    Plus, I'm waiting for the cannibalization to get rolling.

    xchrom

    (108,903 posts)
    52. Citi to Cut Bonuses in Investment Bank About 30%
    Sat Jan 28, 2012, 02:16 PM
    Jan 2012
    http://www.bloomberg.com/news/2012-01-27/citi-to-cut-bonuses-in-investment-bank-about-30-.html

    Citigroup Inc. (C), the third-biggest U.S. lender by assets, cut 2011 bonuses in its investment banking division by about 30 percent on average amid slumping revenue, according to a person briefed on the matter.

    Some businesses within the securities and banking unit had bonuses reduced by as much as 70 percent compared with the previous year, said the person, who asked to remain anonymous because the decisions aren’t public. The unit, led by James “Jamie” Forese, includes bond and stock trading as well as debt and equity underwriting.

    Chief Executive Officer Vikram Pandit, 55, is firing workers and shrinking costs in the unit as he grapples with declining revenue. The bank said this month that it will cut about 1,200 workers from the division to save $600 million this year and more reductions may follow. The unit’s revenue slipped 21 percent since 2009, while compensation and other operating costs climbed 15 percent.

    “Our 2011 revenues in certain businesses in securities and banking were disappointing and unacceptable,” Chief Financial Officer John Gerspach, 58, told analysts this week. “If we do not see meaningful revenue recovery over the course of 2012, we will further restructure securities and banking.”

    xchrom

    (108,903 posts)
    57. Lesson of Great Recession is too hard to accept
    Sat Jan 28, 2012, 04:07 PM
    Jan 2012
    http://www.japantimes.co.jp/text/eo20120127rs.html

    WASHINGTON — The recent release of the 2006 transcripts of the Federal Reserve's main policymaking body stimulated a small media frenzy: "Little Alarm Shown at Fed at Dawn of Housing Bust," headlined The Wall Street Journal. The Washington Post agreed: "As financial crisis brewed, Fed appeared unconcerned." The New York Times echoed: "Inside the Fed in '06: Coming Crisis, and Banter."

    Comments from members of the Federal Open Market Committee (FOMC) now seem misguided. The first 2006 meeting was the last for retiring Fed Chairman Alan Greenspan. Janet Yellen — then president of the Federal Reserve Bank of San Francisco and now Fed vice chair — said "the situation you're handing off to your successor is a lot like a tennis racket with a gigantic sweet spot."

    Treasury Secretary Timothy Geithner — then head of the Federal Reserve Bank of New York — called Greenspan "terrific" and suggested his already exalted reputation might grow even more. There was no sense of a gathering crisis.

    All true, but it begs the central question: why? The FOMC members weren't stupid, lazy or uninformed. They could draw on a massive staff of economists for analysis. And yet, they were clueless.



    *** this article either ignores or doesn't accept bad intentions built right into austrian/german economics so pervasive since wwII -- but still makes some good points
     

    Demeter

    (85,373 posts)
    69. I Beg to Differ: They WERE " stupid, lazy & uninformed"
    Sun Jan 29, 2012, 10:52 AM
    Jan 2012

    In fact, they were blinded by ideology and faith in their infallibility, and the power to create their own reality, that charming Cheney turn of phrase.

    Thing is, they still are: Ben and Timmy and Eric Holder and the Big Cheese himself. Just like their bankster buddies and sponsors, they cannot see what they are doing because they will not see.

     

    Demeter

    (85,373 posts)
    61. President's New Financial Crimes Task Force: Some Rich A-holes Need to Go to Jail
    Sat Jan 28, 2012, 08:23 PM
    Jan 2012
    http://www.alternet.org/newsandviews/article/766473/the_president%27s_new_financial_crimes_task_force%3A_some_rich_a-holes_need_to_go_to_jail/#paragraph3

    I could talk about a lot of things that were included in the State of the Union address. There were parts that I loved and parts that I hated. The following excerpt, however, addressed something I have been begging the administration to address. Last Wednesday, I reacted to another insider trading prosecution with the following observation:

    ...I think everyone would like to see some aggressive and creative legal thinking with the purpose of getting accountability for the financial collapse. Because the truth is that every time I see an announcement about another insider trading case, I think to myself, "That's nice, but all the really big criminals are still untouched."


    Tonight, the president said this:

    And I will not go back to the days when Wall Street was allowed to play by its own set of rules. The new rules we passed restore what should be any financial system’s core purpose: Getting funding to entrepreneurs with the best ideas, and getting loans to responsible families who want to buy a home, start a business, or send a kid to college.
    So if you’re a big bank or financial institution, you are no longer allowed to make risky bets with your customers’ deposits. You’re required to write out a “living will” that details exactly how you’ll pay the bills if you fail – because the rest of us aren’t bailing you out ever again. And if you’re a mortgage lender or a payday lender or a credit card company, the days of signing people up for products they can’t afford with confusing forms and deceptive practices are over. Today, American consumers finally have a watchdog in Richard Cordray with one job: To look out for them.

    We will also establish a Financial Crimes Unit of highly trained investigators to crack down on large-scale fraud and protect people’s investments. Some financial firms violate major anti-fraud laws because there’s no real penalty for being a repeat offender. That’s bad for consumers, and it’s bad for the vast majority of bankers and financial service professionals who do the right thing. So pass legislation that makes the penalties for fraud count.

    And tonight, I am asking my Attorney General to create a special unit of federal prosecutors and leading state attorneys general to expand our investigations into the abusive lending and packaging of risky mortgages that led to the housing crisis. This new unit will hold accountable those who broke the law, speed assistance to homeowners, and help turn the page on an era of recklessness that hurt so many Americans.




    Sam Stein of the Huffington Post reported that this special unit will be led by New York Attorney General Eric Schneiderman. If you've been following the negotiations between the big banks, the attorneys general, and the federal government, you know that Eric Schneiderman has been one of the strongest opponents of a slap-on-the-wrist approach to settling the case against the banks for their role in creating the financial crisis. He appears to have won the argument. Here's a statement from his office:



    I would like to thank President Obama for his leadership in the creation of a coordinated investigation that marshals state and federal resources to bring justice for the victims of the misconduct that caused the mortgage crisis. In coordination with our federal partners, our office will continue its steadfast commitment to holding those responsible for the economic crisis accountable, providing meaningful relief for homeowners commensurate with the scale of the misconduct, and getting our economy moving again.


    The American people deserve a robust and comprehensive investigation into the global financial meltdown to ensure nothing like it ever happens again, and today's announcement is a major step in the right direction....There has been tremendous skepticism and criticism of the administration for pushing for a deal that would provide immunity to the banks in return for a paltry settlement. It would seem that that criticism was unfair. But it is possible that the criticism was convincing. Maybe it stung enough to convince the administration to get rough with the criminals that ruined the global economy and almost caused a second Great Depression. Maybe they were planning to get rough all along. In any case, whether the administration followed its own instincts or was convinced by its harshest progressive critics or was persuaded by the pleas of friendlier voices like my own, they appear to be doing the right thing. Priority number one was standing the financial sector back on its feet. Justice had to be delayed. But it couldn't be deferred indefinitely. Some rich assholes need to go to jail.
     

    Demeter

    (85,373 posts)
    62. Romney Profited From Mortgage Lenders Foreclosing On Thousands Of Floridians
    Sat Jan 28, 2012, 08:28 PM
    Jan 2012
    http://www.alternet.org/newsandviews/article/766474/romney_profited_from_mortgage_lenders_foreclosing_on_thousands_of_floridians/#paragraph3

    A ThinkProgress examination of Mitt Romney’s presidential personal financial disclosures from May 2011 reveal that the former Massachusetts governor and his wife own or owned millions of dollars worth of a Goldman Sachs investment fund invested heavily in mortgage-backed obligations. And the current owners of those mortgage debts began foreclosure proceedings against thousands of Floridians.

    Along with his investments in Bain Capital funds linked to offshore tax havens, the Romneys have large investments in the Goldman Sachs Strategic Income Fund (institutional class). The firm’s March 2011 annual report for the fund notes that about 8 percent of the fund is invested in banks and 24.5 percent is invested in mortgage-backed obligations. Romney’s form says he has invested between $1,000,001 and $5,000,000 in the fund and his wife Ann has invested an additional $1 million-plus. Since the 2008 economic meltdown and the enactment of the Troubled Asset Relief Fund, this fund has done quite well, growing 7.88 percent between April 2010 and March 2011.

    The mortgage-backed securities in the fund include adjustable rate mortgages from Bear Stearns, Countrywide, IndyMac, and Washington Mutual. A 2009 Center for Public Integrity report identified all four of those companies as among the top-25 subprime lenders in the lead-up to the market’s collapse. Countrywide ranked first in that report and Washington Mutual ranked second. While the remnants of those companies have been purchased by major financial institutions, an array of mortgage loan service companies bought up the individual mortgages.

    An examination of civil cases filed in Miami-Dade county alone, by just the current owners of the mortgage obligations for now-defunct Washington Mutual and Countrywide, suggests more than 5,000 foreclosure cases were filed in 2010. And Miami-Dade makes up only about 13 percent of the Florida population, suggesting that these and the other owners mortgage-backed securities included in this fund likely have attempted to foreclose on tens of thousands of Floridians.

    A review of Romney’s August 2007 financial disclosure for his 2008 campaign reveals no mention of the Goldman Sachs Strategic Income Fund, suggesting the investment was made at some point between the two campaigns. The funds are identified on the disclosure form as technically being in a “blind trust,” but now that he has publicly disclosed these assets, the trust is no longer functionally “blind.” The trustee for the trust, R. Bradlford Malt, said this week that he dropped some other Romney investments that conflicted with the Republican Party’s values....In October, Romney suggested that the solution to the foreclosure crisis was “don’t try and stop the foreclosure process. Let it run its course and hit the bottom.” While that process is bad for Florida homeowners, these investments show it may have been good for the Romneys.

     

    Demeter

    (85,373 posts)
    63. Moyers: How the Banks Have Rewritten Our Economy's Rules
    Sat Jan 28, 2012, 08:29 PM
    Jan 2012
    http://www.alternet.org/newsandviews/article/767670/moyers%3A_how_the_banks_have_rewritten_our_economy%27s_rules/

    Bill Moyers is back on television! Here is last night's episode of "Moyers and Company," which asks: "how did our political and financial class shift the benefits of the economy to the very top, while saddling us with greater debt and tearing new holes in the safety net?"

    Moyers investigates how the Glass-Steagall act was "brought down" by politicians, and what can be done to end this era of financial industry domination?

    VIDEO EPISODE AT LINK
     

    Demeter

    (85,373 posts)
    64. By Robert Reich:Jobs Won't Come Back to America Until the Govt Pushes Executives to Invest at Home
    Sat Jan 28, 2012, 08:35 PM
    Jan 2012
    http://www.alternet.org/story/153860/jobs_won%27t_come_back_to_america_until_the_government_pushes_greedy_corporate_executives_to_invest_at_home?akid=8166.227380.S3OWAO&rd=1&t=31

    BOB, BOB, BOB (MAY I CALL YOU BOB?)

    GREEDY CORPORATE EXECUTIVES CANNOT BE PUSHED--THEY CAN BE CORRALLED AND STAMPEDED, BRANDED AND SLAUGHTERED, in other words, they can be regulated---but not pushed. Jailed, preferably. As an example.
     

    Ghost Dog

    (16,881 posts)
    66. Michael Hudson: Banking Wasn’t Meant to Be Like This
    Sun Jan 29, 2012, 05:35 AM
    Jan 2012

    This may be a repeat, but it's worth repeating and is a must read:


    January 27, 2012
    By Michael Hudson

    What will their future be – and what is the government’s proper financial role?
    As published in the Frankfurter Allgemeine Zeitung.

    ... Over time, banks have sought to disable this regulatory oversight, even to the point of decriminalizing fraud. Sponsoring an ideological attack on government, they accuse public bureaucracies of “distorting” free markets (by which they mean markets free for predatory behavior). The financial sector is now making its move to concentrate planning in its own hands.

    The problem is that the financial time frame is notoriously short-term and often self-destructive. And inasmuch as the banking system’s product is debt, its business plan tends to be extractive and predatory, leaving economies high-cost. This is why checks and balances are needed, along with regulatory oversight to ensure fair dealing. Dismantling public attempts to steer banking to promote economic growth (rather than merely to make bankers rich) has permitted banks to turn into something nobody anticipated. Their major customers are other financial institutions, insurance and real estate – the FIRE sector, not industrial firms. Debt leveraging by real estate and monopolies, arbitrage speculators, hedge funds and corporate raiders inflates asset prices on credit. The effect of creating “balance sheet wealth” in this way is to load down the “real” production-and-consumption economy with debt and related rentier charges, adding more to the cost of living and doing business than rising productivity reduces production costs.

    Since 2008, public bailouts have taken bad loans off the banks’ balance sheet at enormous taxpayer expense – some $13 trillion in the United States, and proportionally higher in Ireland and other economies now being subjected to austerity to pay for “free market” deregulation. Bankers are holding economies hostage, threatening a monetary crash if they do not get more bailouts and nearly free central bank credit, and more mortgage and other loan guarantees for their casino-like game. The resulting “too big to fail” policy means making governments too weak to fight back.

    The process that began with central bank support thus has turned into broad government guarantees against bank insolvency. The largest banks have made so many reckless loans that they have become wards of the state. Yet they have become powerful enough to capture lawmakers to act as their facilitators. The popular media and even academic economic theorists have been mobilized to pose as experts in an attempt to convince the public that financial policy is best left to technocrats – of the banks’ own choosing, as if there is no alternative policy but for governments to subsidize a financial free lunch and crown bankers as society’s rulers...

    ... The endgame in times past was to write down bad debts. That meant losses for banks and investors. But today’s debt overhead is being kept in place – shifting bad loans off bank balance sheets to become public debts owed by taxpayers to save banks and their creditors from loss. Governments have given banks newly minted bonds or central bank credit in exchange for junk mortgages and bad gambles – without re-structuring the financial system to create a more stable, less debt-ridden economy. The pretense is that these bailouts will enable banks to lend enough to revive the economy by enough to pay its debts...

    /Much more... http://michael-hudson.com/2012/01/banking-wasnt-meant-to-be-like-this/


    See also Hudson's latest interview with Max Keiser: http://www.democraticunderground.com/10179267

    bread_and_roses

    (6,335 posts)
    68. typical "liberal" tries to make silk purse out of sow's shit
    Sun Jan 29, 2012, 10:50 AM
    Jan 2012
    http://www.commondreams.org/view/2012/01/27-5

    Published on Friday, January 27, 2012 by Project Syndicate
    Taking Back Globalization for the Many
    by Olivier De Schutter

    DAVOS –

    ... The world’s economic and political leaders stand warned: do globalization better, or it will be derailed by the growing legions of the discontented.

    ... If we are to learn anything from the ongoing crisis, it must be to start asking the right questions.

    ... Every new bilateral agreement, every chapter of globalization, should be measured against new criteria. How sustainable and how evenly spread will the macroeconomic benefits be? Will they facilitate genuine development and provide dignified opportunities to those who become economically displaced?

    ... Globalization involves winners and losers – that has been established.

    (bold emphasis added)

    oh, sigh. yes, let's have a "kindler, gentler" globalization. But - from his comfortable job - he's still not asking the right questions. The right questions mean asking why anyone should be economically displaced. Why there should be any "losers."

    I'm sure this guy means well - but he's still not asking the right questions.

    bread_and_roses

    (6,335 posts)
    73. I forgot one thing in that post
    Sun Jan 29, 2012, 01:53 PM
    Jan 2012

    I forgot to put the sarcasm smiley after "yes, let's have a "kindler, gentler" globalization" - since I can't find that one, maybe this or this or this

    xchrom

    (108,903 posts)
    72. why all the robo signing? shedding light on the shadow banking system.
    Sun Jan 29, 2012, 01:31 PM
    Jan 2012
    http://www.democraticunderground.com/1002231357

    The Wall Street Jour­nal re­ported on Jan­u­ary 19th that the Obama Ad­min­is­tra­tion was push­ing heav­ily to get the 50 state at­tor­neys gen­eral to agree to a set­tle­ment with five major banks in the “robo-sign­ing” scan­dal. The scan­dal in­volves em­ploy­ees sign­ing names not their own, under ti­tles they did not re­ally have, at­test­ing to the ve­rac­ity of doc­u­ments they had not re­ally re­viewed. In­ves­ti­ga­tion re­veals that it did not just hap­pen oc­ca­sion­ally but was an in­dus­try-wide prac­tice, dat­ing back to the late 1990s; and that it may have clouded the ti­tles of mil­lions of homes. If the set­tle­ment is agreed to, it will let Wall Street bankers off the hook for crimes that would land the rest of us in jail – fraud, forgery, se­cu­ri­ties vi­o­la­tions and tax eva­sion.

    To the Pres­i­dent’s credit, how­ever, he seems to have shifted his po­si­tion on the set­tle­ment in re­sponse to protests be­fore his State of the Union ad­dress. In his speech on Jan­u­ary 24th, Pres­i­dent Obama did not men­tion the set­tle­ment but an­nounced in­stead that he would be cre­at­ing a mort­gage cri­sis unit to in­ves­ti­gate wrong­do­ing re­lated to real es­tate lend­ing. “This new unit will hold ac­count­able those who broke the law, speed as­sis­tance to home­own­ers, and help turn the page on an era of reck­less­ness that hurt so many Amer­i­cans,” he said.

    The Deeper Ques­tion Is Why

    Whether mas­sive robo-sign­ing oc­curred is no longer in issue. The ques­tion that needs to be in­ves­ti­gated is why it was being done. The al­leged jus­ti­fi­ca­tion—that the bankers were so busy that they cut cor­ners—hardly seems cred­i­ble given the ex­tent of the prac­tice.

    The robo-sign­ing largely in­volved as­sign­ments of mort­gage notes to mort­gage ser­vicers or trusts rep­re­sent­ing the in­vestors who put up the loan money. As­sign­ment was nec­es­sary to give the trusts legal title to the loans. But as­sign­ment was de­layed until it was nec­es­sary to fore­close on the homes, when it had to be done through the forgery and fraud of robo-sign­ing. Why had it been de­layed? Why did the banks not as­sign the mort­gages to the trusts when and as re­quired by law?

    xchrom

    (108,903 posts)
    81. I'll go back & look at it.
    Sun Jan 29, 2012, 09:38 PM
    Jan 2012

    I'm on my iPhone now & can't to the original.

    But thanks for telling
    Me!

     

    Demeter

    (85,373 posts)
    80. I apologize for cutting the posting short
    Sun Jan 29, 2012, 09:18 PM
    Jan 2012

    I decided to do some different things today....like the Christmas ham and potato salad, shopping for myself, and an hour at the Botanical Gardens or conservatory to warm up with the tropical plants, hanging out with a friend.

    Aside from burning the Kid's garlic toast, it was a refreshing change.

    I even did some laundry. Just for kicks.

    Have a good week, everyone, keep warm and dry.

    Loge23

    (3,922 posts)
    84. Late postscript to this weekend's theme:
    Tue Jan 31, 2012, 10:43 AM
    Jan 2012

    What a wonderful letter, allegedly written (or dictated) by a former captive of a slave-holder to his warden.

    "As to my freedom, which you say I can have, there is nothing to be gained on that score, as I got my free papers in 1864 from the Provost-Marshal-General of the Department of Nashville. Mandy says she would be afraid to go back without some proof that you were disposed to treat us justly and kindly; and we have concluded to test your sincerity by asking you to send us our wages for the time we served you. This will make us forget and forgive old scores, and rely on your justice and friendship in the future. I served you faithfully for thirty-two years, and Mandy twenty years. At twenty-five dollars a month for me, and two dollars a week for Mandy, our earnings would amount to eleven thousand six hundred and eighty dollars. Add to this the interest for the time our wages have been kept back, and deduct what you paid for our clothing, and three doctor's visits to me, and pulling a tooth for Mandy, and the balance will show what we are in justice entitled to. Please send the money by Adams's Express, in care of V. Winters, Esq., Dayton, Ohio. If you fail to pay us for faithful labors in the past, we can have little faith in your promises in the future. We trust the good Maker has opened your eyes to the wrongs which you and your fathers have done to me and my fathers, in making us toil for you for generations without recompense. Here I draw my wages every Saturday night; but in Tennessee there was never any pay-day for the negroes any more than for the horses and cows. Surely there will be a day of reckoning for those who defraud the laborer of his hire."

    Read more: http://www.businessinsider.com/read-this-amazing-letter-from-an-ex-slave-to-his-former-master-2012-1#ixzz1l2ynAzbc

    Can you just imagine how many of these letters were never written?

    http://www.businessinsider.com/read-this-amazing-letter-from-an-ex-slave-to-his-former-master-2012-1

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