Today's Stories

August 19, 2009

David Michael Green
Guess What? He's a Terrible President

Paul Craig Roberts
Americans: Serfs Ruled by Oligarchs

Marshall Auerback
Debt Revolt? Tax Strike? There are a Lot of Angry People Out There

Franklin Lamb
AIPAC Sends in the Clowns

John Ross
Three Amigos Summit

Marjorie Cohn
Legendary Lawyer Doris Brin Walker Dies; Represented Angela Davis, Smith Act Defendants

John Ross
Three Amigos Summit

August 18, 2009

Michael Hudson
The Specter of Debt Revolt Is Haunting Europe?

Mary Lynn Cramer
Obama-Fraud: Don't Confuse Medicare with Single-Payer

Jonathan Cook
U.S. Turns Blind Eye to Israel's New Separation Policy

Uri Avnery
Whose Acre?

Ralph Nader
Block Obama's Abject Surrender to Insurance and Drug Companies

Bill Quigley & Davida Finger
Katrina Pain Index - 2009

August 17, 2009

Ray McGovern
Can the Washington Post Save Dick Cheney?

Andy Worthington
Bagram Isn't the New Guantánamo, It's the Old Guantánamo

Patrick Cockburn
Life and Death in Baghdad as Americans Leave

Don Fitz
The True Story of Fox's Hero, Kenneth Gladney

P. Sainath
Drought of Justice, Flood of Funds

Helena Cobban
Zionist Pioneer Renounces Zionism

August 14-16, 2009

Alexander Cockburn
Health Plans and Death Plans

Jeffrey St. Clair
The Fall of the House of Stanford

Peter Linebaugh
The Commons, the Castle, the Witch and the Lynx

Esam Al-Amin
What Actually Happened in Fatah's Elections?

Marshall Auerback
Why a Debtor's Revolt Would Work

Mike Whitney
Bulletins From Clunkerville

Paul Krassner
Woodstock at Forty

Saul Landau
Health Care and the Seeds of Disunity

Nikolas Kozloff
Colombian Elites Fear Bolivaran Revolution

Henry A. Giroux
Politics After Hope

John Ross
Sleepwalking Through the Minefield

Jonathan Cook
Israeli Land Sale

Isabella Kenfield
Monsanto's Man in the Obama Administration

David Rosen
Sexual Torture, Yet Again

Ron Jacobs
Unconditional Negotiations, Now!

Wajahat Ali
Obama's Immigration Reforms: Neither Humane Nor Thoughtful

David Macaray
Prison Games

Greg Moses
Down in South Texas: the Geometries of Bob Dylan

Charles R. Larson
Egyptian Economics 101

David Yearsley
Stalked by Bill Evans' Ghost: Kind of Blue at Fifty

Lorenzo Wolff
There Ain't Much to Country Livin': the Drive-By Truckers and the Fine Print

Kim Nicolini
Class, Race and Clint

Poets' Basement
Reiss, Ford and Moser

Website of the Weekend
Timidity and Transparency

August 13, 2009

Eduardo Galeano
I Hate to Bother You

Joanne Mariner
Letting Cheney Off the Hook

Michael Donnelly
Burning Forests for Electricity

Norman Solomon
When the Dead Have No Say

Russell Mokhiber
Boycott Whole Foods

Tim Wise
Sick Heil! The Hitlerizing of Obama

Brian M. Downing
Succession and the Pakistani Taliban

Dave Lindorff
Single-Payer and Medicare

David Manning / Miriam Cotton:
Iran Versus Honduras: a Subtle Difference

Martha Rosenberg
John Hughes, Gone With Only 59 Candles

Website of the Day
Congress Can't Find Their As-teroids

August 12, 2009

Michael J. Watts
Nigeria on the Brink

Bouthaina Shaaban
Where are the Arabs to Stand Up for the Hanoun and Ghawi Families?

Ricardo Alarcón
The Cuban Five: Justice in Wonderland

Binoy Kampmark
Terror Australis

Paul Craig Roberts
Concocting the Appearance of Recovery

Alan Farago
Going Down Absurd: the Future of Florida Bay

James Ridgeway
Ghostwriting Your Meds

Dave Lindorff
10 Questions to Ask If You Find Yourself at an ObamaCare Town Hall Meeting

David Macaray
Labor and the Conventional Wisdom

Niranjan Ramakrishnan
The Assimilation of Niranjan Ramakrishnan

Website of the Day
A Petition in Support of Janice Harper

August 11, 2009

Ricardo Alarcón
Forbidden Heroes

Marshall Auerback
America's Biggest Economic Problem?

Reza Yavari
Inside Iran's Most Infamous Prison

Winslow T. Wheeler
How Congress Pays For Its Pork

Tim Wise
Red-Baiting and Racism

Uri Avnery
A Moral Person

Deepak Tripathi
Getting Away With Torture

Greg Moses
Time to Plan for the Worst

Benjamin Dangl
Boycotting Big Beer

Dave Lindorff
Hecklers Unite! Why Aren't Progressives Disrupting ObamaCare Town Halls?

Website of the Day
What Bush Told Chirac About the Iraq War

August 10, 2009

David Price
Trial by FBI Investigation

Mike Whitney
There is No Recession; It's a Planned Demolition

Alan Farago
Seeds of Destruction: How the National Economy was Wrecked by the Politics of Deregulation in Florida

Conn Hallinan
The Honduran Coup: a U.S. Connection

Russell Mokhiber
Health Care: In Defense of Disruption

Paul Krassner
The Mystery Behind the Manson Murders

Sousan Hammad
Orgy of the Dead: the 2009 Fatah Conference

Jonathan Cook
Israeli School Apartheid

Ira Glunts
Netanyahu's Sister-in-Law Detained by Israeli Police; Calls Evictions an Unjustified Folly

George Wuerthner
Dead Tree Hysteria

Website of the Day
Conyers: ObamaCare is Crap

August 7 - 9, 2009

Alexander Cockburn
It Pays to Have a Nuke

Mike Whitney
Economy on a Scaffold

Elaine C. Hagopian
Obama's Israel Albatross

Carl Ginsburg
RX For Healthcare

Miguel Tinker Salas
Honduras is Only Part of the Story: the Conservative Counter-Attack in Latin America

Saul Landau
The Kidney Broker and the Money Laundering Rabbis

John Ross
The Mexican Genome: Big Science in the Service of Indian Genocide?

Anthony DiMaggio Obama and the Israel Lobby: Origins of Power

John Stanton
Expanding Human Terrain Systems?

Christopher Brauchli Legal Absurdities: Outing Three Strikes

Wajahat Ali
A Muslim American Hero: an Interview with Dave Eggers on "Zeitoun"

Ron Jacobs
As Long as the Wars Continue, We Must Resist Them

Franklin Lamb
Sunday Morning on the Dunes: Cleaning "Free Gaza Beach"

Bruce E. Levine
Protect Us From Our Friends

Michael Winship
Neighborhood Watch for Planet Earth

David Macaray
Glimmers of Hope for Labor?

Stephen Fleischman
Suicide Squad

Robert Bryce
Unplugging the Next Big Thing: the Hype Over Electric Cars

Robert Dodge, MD: Hiroshima and Nagasaki Remembered

Mark Seth Lender
The Message of the Glossy Ibis

David Yearsley
Vaucanson's Faun and the Duck in the Attic

Ben Sonnenberg
Chris Fuller's Brilliant Debut

Lorenzo Wolff
When Music's the Character

Poets' Basement
Dominguez and Corseri

Website of the Weekend
Warren Buffett's Betrayal

August 6, 2009

Ishmael Reed
Let's All Have a Beer

Paul Craig Roberts
The Expiring Economy

William Blum Assassinations and Coups: Keeping Track of the Empire's Crimes

Michael Donnelly
Rod Coronado: the Hardest Working Man in Animal Rights "Terrorism"

Jonathan Cook
Rabbis Ban Marriage for Israeli "Untouchables"

Dave Lindorff
The Health Care Reform Sell-Out

Ellen Brown
The Public Option in Banking

Website of the Day
Ellsberg on Hiroshima

August 5, 2009

Dedrick Muhammad /
Barbara Ehrenreich
The Destruction of the Black Middle Class

Norman Solomon
The Incredible, Shrinking Health Care Plan

William Blum
The Myths of Afghanistan: Past and Present

Gareth Porter
The ISI and the Taliban: US Officials Are Protecting Pakistani Aid to Taliban

Mary Lynn Cramer
The Myth of Medicare for All

Jim Goodman
Obama Needs to Take a Stand on Trade

Nadia Hijab
Playing From Strength in the Middle East

Gretchen Kroth
Guatemala's Garbage Dump Education System

Steve Macek /
Scott Sanders
Privatizing the Airwaves

Sarah Lazare
Inside G.I. Resistance

Website of the Day
The Locavore Myth

August 4, 2009

Mike Whitney
Bernanke's Shell Game

Dave Lindorff
The Recession Isn't Over, By a Long Shot

Patrick Cockburn
Did British Bomb Attacks in Iran Provoke Hostage Crisis?

Jonathan Cook
Israel's Campaign to Silence Human Rights Groups

Jeff Sher
Making a Mess of Health Care Reform

Dean Baker
Why Don't We Globalize Health Care?

Andy Worthington
Gitmo as Hotel California

Uri Avnery
A Jeremiad

Mark Weisbrot
U.S.-Brokered Mediation in Honduras Has Failed

Alvaro Huerta
Hold That Dustbin! So Much for the "End of Racism"

Website of the Day
Pentagon to Ban Facebook and Twitter?

August 3, 2009

Pam Martens
Millions of Americans Pushed Into No-Law System by Colluding Banks

Anthony DiMaggio
Media Backlash: Obama and the Settlements

Udi Aloni
And Who Shall I Say is Calling? A Plea to Leonard Cohen

Mike Roselle
See the Mountains of WestVirginia ... Before They're Blown Up!

Dr. Susan Block
Beat It! Sex, Death and Michael Jackson

Roy Bourgeois / Margaret Knapke
School of Coups

Joe Bageant
A Yard Sale in Chernobyl

Dina Jadallah
Hiding the State

Dave Lindorff
Of Blue Dogs and Jellyfish

Martha Rosenberg
Grand Closings in Evanston: How the Recession is Hitting Illinois

Website of the Day
Why We Can't "Afford" Health Care

July 31 - August 2, 2009

Alexander Cockburn
The Biden and Clinton Mutinies

Gabriel Kolko
Searching For Enemies

John Prados
The Intelligence Oversight Mess

Joe Bageant
The Bastards Never Die

Tim Wise
Rationalizing Racial Oppression

Carl Ginsburg
Frist First: Follow the Money (and Find the Plump Heart of "Health Care")

Michael Fox
The Honduran Coup as Overture

John Lindsay-Poland
Revamping Plan Colombia

Michael Winship
Pay-to-Play: Washington's Sport of Kings

Rev. William Alberts
White Men Can Jump ... to Conclusions

Andy Worthington
Judge Orders Release of Tortured Gitmo Prisoner

Steve Breyman
Counting the Unemployed

Cyrus Bina
Racism, Class and Profiling

Missy Beattie
Promises Ignored

Ron Jacobs
Into the Vapid: Consuming the Cultural Product

Willie L. Pelote, Sr.
Party of Concessions: Democrats Never Learn

Lucia Alvarez
Fall of the House of Kirchner? Return of the Right in Argentina

Dave Lindorff
David Brooks' White Guy Nightmare

Lawrence R. Velvel
Madoff: What Should be Done Now?

Omar Barghouti /
Sid Shniad
United for Freedom and Universal Justice

James L. Secor
The Name of the Game is Wipe-Out

Belén Fernández
Zelaya in Nicaragua: Has Another Constitution Been Violated?

Jeffrey St. Clair
Frank Lloyd Wright in Hollywood: the Ennis House as Imperial Ruin

David Yearsley
Beauty in Dark Places: Berlin's Olympic Stadium

Brian J. Foley
Pre-Eating: a Threat to Restaurants Everywhere

Alan Cabal
Onward, Into the Fog: Thomas Pynchon's
"Inherent Vice"

Kim Nicolini
The Way War Feels

Lorenzo Wolff
The Way It Felt the First Time: the Jump Rope Magic of the Shangri-Las

Poets' Basement
Four Poems From the Chinese

Website of the Weekend
Obama's Ex-Doc Knocks ObamaCare

July 30, 2009

Patrick Cockburn
Victims of a Covert Tit-for-Tat War

Gareth Porter
Afghanistan's US-Backed Child-Raping Police

Saul Landau
Summer of Denial

Greg Grandin
Honduran Coup Over?

Diane Farsetta
Pentagon Pundits Get a Pass

Stephen Soldz
The King Case, the APA and the Missing Ethics Investigation

Alan Farago
Learning How to Survive in a Depression From "Weeds"

David Macaray
Cops and Labor Unions

Mike Howells /
Jay Arena
Volunteerism Will Not Rebuild the Gulf Coast

Christopher Brauchli
Oatmeal Envy

Website of the Day
Changing the SOFA

July 29, 2009

Carl Ginsburg
Our Crisis, Their Gain

Clifton Ross
From Tegucigalpa to El Paraiso: a Voyage From Curfew to State of Siege

Paul Craig Roberts
How Fake is the "Recovery"?

Franklin C. Spinney
Winning Hearts and Minds, Pentagon Style

James Bovard Lackawanna Six: Bogus Charges and Martial Law

Anthony DiMaggio
Health Care, the Media and Public Opinion

Bouthaina Shaaban
How Will Arabs Wake Up?

Greg Moses
A Catch and Trade Policy for Labor Costs

Wajahat Ali
No Racism in Obama's Post-Race America?

Gary Leupp
Beer Will Not Solve This

Ayesha Ijaz Khan
Musharraf, Imran Khan and Overseas Pakistanis

Website of the Day
Why Single-Payer Gets No Respect

July 28, 2009

Jean Bricmont
Bombing for a Juster World?

Uri Avnery
Obama, Netanyahu and the Settlements

Dean Baker
Right to Rent: a Remedy for the Foreclosure Crisis

Heather Gray
Stupid Cop Tricks: Driving Too Close to a White Female and Other Episodes in Racist Policing

Jonathan Cook
Can an "Arab Soul" Yearn for Israel's Anthem?

Winslow T. Wheeler
Beyond the F-22: the Future of Pentagon Reform

Belén Fernández
Thomas Friedman Does Afghanistan

Carl Finamore
The Hotel Workers' Kickass Local 2

Eli Jelly-Schapiro
Striking the World Cup

Harvey Wasserman
We All Stand Before Peltier's Parole Board

Website of the Day
Behind the Wheel

July 27, 2009

Ishmael Reed
Gates: Post-Race Scholar Yells Racism

Patrick Cockburn
Elections Shake Kurdistan

Roger Burbach
Hillary and Obama Nix Change in Honduras

Steve Breyman
Bomber Joe and Russia: Why is Biden Channeling Cheney?

Ramzy Kysia
Gaza: On the Right of Resistance

Stephen Soldz
Will the American Psychological Association Renounce the Nuremberg Defense?

Raymond J. Lawrence
Sexual Hocus Pocus in the Episcopal Church

Greg Moses
The Color Line is Black

Binoy Kampmark
Swine Flu Panic

Kim Ives
Lavalas and Haiti's Student Union Unite

Website of the Day
Meet the Paid Assassins of Health Care

July 24-26, 2009

Alexander Cockburn
"A Damned Murder, Inc."

Clifton Ross
Surreal Honduras

Patrick Cockburn
Party of "Change" Challenges Old Guard in Kurdistan

William Polk
Report Card on Obama From a New Frontiersman

David Sterritt
Screening the Politics Out of the Iraq War

Ray McGovern
Hooded in Bush's Hood

David Lindorff
Cops Gone Wild

Hannah Mermelstein
"The War is With the Arabs"

Carl Ginsburg
The Actually Existing Health Care System

Helen Redmond
The Selling of Single-Payer Features

John Ross
The Song of the Guerrilla

Bill Simpich
Fair Play for Cuba and the Cuban Revolution

Mark Weisbrot
Learning From China on How to Beat the Recession

Lee Sustar
U.S. Labor in Crisis

David Macaray
Union Workers Forced to Accept Massive Cuts

Felipe Matsunaga
Obama's Slow (and Familiar) Dance With Cuba

Sara Mann
Why Health Care Will Kill My TV

Martha Rosenberg
Which is Worse? Germs in Our Food or the Antibiotics That Kill Them?

Missy Beattie
Cha-ching Culture

David Ker Thomson
Empty Nest: a Natural History of Now

Ron Jacobs
United4Iran, a Footnote

Stephen Martin
The Crying of Lots 1 Thru 50

David Yearsley
Psst, I Show You a Feelthy Gluck

Gilad Atzmon
Bruno: a Glimpse Into Zionism?

Kim Nicolini
Guilty Laughter in the Dark: Seeing Brüno Twice

Poets' Basement
Kakak and McLellan

Website of the Weekend
Dead Prez: Summertime

July 23, 2009

Jeffrey St. Clair
The Masters of Perfidy: AIG and the System

Saul Landau /
Nelson Valdés
Hypocrisy and the Honduran Coup: Term Limits Only Apply When Governments Help People

Jonathan Cook
The Reality of Israel's "Open" Jerusalem

Nadia Hijab
Israeli Warships in the Red Sea

Dave Lindorff
Living in a Police State: the Gates Incident

Laura Carlsen
21st Century Coups d'Etat

Steve Breyman
Bankers Beware?

Ellen Brown
How California Could Turn Its IOUs Into Dollars

Norman Solomon
Spinning Health Care

Jorge Mariscal
Youth Activists Demand Military-Free Schools

Website of the Day
Copy-Editing Sarah Palin

July 22, 2009

Bernard Chazelle
How to Argue Against Torture

Nikolas Kozloff
The Coup and the U.S. Airbase in Honduras

Carl Ginsburg
The Recovery, Phase Two

Clifton Ross
Back to the Future? Return to El Salvador

Anthony DiMaggio
Health Care, Media and the Case for Socialized Medicine

Michael Donnelly
The Whoppers Behind WOPR

Nadia Hijab
Memoirs of a Lost Arab World

Dedrick Muhammad
Structural Inequality: News Not Fit to Print?

Charles Thomson
Cronyism at the Tate

Alan Farago
Ted Williams and the Florida Keys

Website of the Day
Himmelstein: Howard Dean is a Liar

July 21, 2009

Sasan Fayazmanesh
The Iranian Election and Its Aftermath

Uri Avnery
Breaking the Silence on Israeli War Crimes

Dean Baker
Séance on Wall Street

Jonathan Cook
Team Twitter: Israel's Internet War

Dave Lindorff
Saving Private Bergdahl

Andy Worthington
Interrogating the Uighurs

David Macaray
Heat, Dust and OSHA

Carl Finamore
The Deferential Party

Harvey Wasserman
Cronkite and Three Mile Island

Walter Brasch
The Marie Antoinettes of Health Care

Website of the Day
Linebaugh: Magna Carta and the Commons

July 20, 2009

Pam Martens
Judicial Apartheid

Nikolas Kozloff
Honduras and the Big Stick: Obama's Bullish Behavoir in Latin America

Paul Craig Roberts
Threatening Iran

Deepak Tripathi
Obama's Policy on China and Iran

Ira Glunts
Netanyahu's Time Bomb: Building in the Vineyard of the Mufti

P. Sainath
Put Your Money Down, Boys

Binoy Kampmark
The Moon Landing and the Cold War

Stephen Fleischman
The First Anchorman

Norman Solomon
Cronkite and Vietnam: Beyond the Hype

Andy Worthington
Predictable Chaos as Gitmo Trials Resume

Ron Jacobs
Out of the Haze, Into the Darkness: Recalling 1979

Website of the Day
Why Publishing Can't be Saved (as it is)

July 17-19, 2009

Alexander Cockburn
"Watch What We Do, Not What We Say"

Nikolas Kozloff
Chiquita in Latin America: From Arbenz to Zelaya

Joanne Mariner
CIA Apples: Bad at the Top of the Tree

Joe Bageant
America's White Underclass

Jonathan Cook
Israeli Road Signs: Wiping Arabic Names Off the Map

Saul Landau
Why So Much Sympathy for Madoff's Dupes and So Little for the Poor?

John Ross
Jurassic Fallout in Mexico

Sue Sturgis
Senator Sessions, Race and Impartiality

Anita Sinha /
Daniel Farbman
The Ricci Case and the Myth of Special Treatment

Peter Morici
Obama's Donut Economics

Pervez Hoodbhoy
Whither Pakistan? A Five-Year Forecast

Ramzy Baroud
Gaza and the Language of Power

Greg Moses
The Real Demand Crisis

Kia Mistilis
The Niger Delta Crisis

Missy Beattie
The Placebo President

David Ker Thomson
How Not to See: Things to Tell Your Eyeballs

James G. Abourezk
Evil Spirits: the Booze Strip in Indian Country

Paul Richards
Why Does Jon Tester Want to Log Wild Montana?

Dave Lindorff
Dark Days for Working People (With Three Small Rays of Light)

Marc Levy
Just Like Hanoi Jane

Matt Siegfried
The Good War Goes Hot

Stephen Martin
Panopticon Blues

Ben Sonnenberg
Sembène's Faat Kiné

David Macaray
Casablanca: When Melodrama Trumped History

Charles R. Larson
A Pakistani, Victorian Novel Celebrating Women

David Yearsley
That's Women for You: Abbas Kiarostami's Così

Lorenzo Wolff
Death Rattle and Roll: the Sound From England's Gutters

Poets' Basement
Payne, Anderson and Williams

Website of the Weekend
Hitler Learns of Sarah Palin's Resignation

July 16, 2009

Paul Craig Roberts
What Economy?

Afshin Rattansi Iranian Planes and the Hidden Toll of Economic Sanctions

Gregory V. Button
The Search for Environmental Justice in Perry County, Alabama

Evan Knappenberger
Profile of a Deserter

Michelle Bollinger
Why is Leonard Peltier Still in Prison?

Russell Mokhiber
White House to ABC News: No Obama Single-Payer Doc

Belén Fernández
Iranian Penetration, Oh My!

Alice Walker
What is Torture Like? A Letter to Obama

Nicholas Dearden
Paying the Climate Debt: the G-8's Troubling Model

Albert Osueke
Sotomayor and the Identity Mountain

Website of the Day
Sotomayor for the Prosecution

July 15, 2009

Manuel Garcia, Jr.
The Assassination Bureau

Vijay Prashad
A Political Recession

Dean Baker
Stimulus Arithmetic

Ray McGovern
Cheney Sweating Bullets

Jonathan Cook
Jenin's Model of "Economic Peace"

David Rosen
Shouts From the Gallery: the Sotomayor Hearings and the Culture Wars

Eric Walberg
Uighurs vs. Afghans: a Study in Contrast

Greg Moses
Three Dimensions of a Complete Stimulus Plan

Sousan Hammad
Decolonizing Israel

Binoy Kampmark
The Trial of Charles Taylor

Tracy McLellan
The Story of My Arrest

Website of the Day
11 Days in Saudi Gitmo

July 14, 2009

Eamonn McCann
The Emperors of Bombast: Bono, U2 and the Crisis of World Capitalism

Joanne Mariner
Obama's New Euphemism

Franklin Spinney
The Taliban Rope-a-Dope

Steve Heilig
Walking Mount Tam: an Interview with Gary Snyder

Ali Abunimah
Hamas' Choice

Dave Lindorff
The End of "Nice" Health Care Reform

Nikolas Kozloff
The Politics of Destabilization: McCain and Honduras

Ellen Brown
From Golden State to Subprime State

Alice Slater
How US Missile Defense Plans Sabotaged Nuclear Disarmament Talks With Russia

Ron Jacobs
Protest U.S. Aggression

Joe Allen
The Fight to Save James Hickman in Jim Crow-Style Chicago

Website of the Day
Mel Brooks Does the French Revolution

July 13, 2009

Uri Avnery
The Essence of the Regime

Mike Whitney
The Deflating Economy

P. Sainath
How the World Depression Hits Orissa

Gareth Porter
A US / Iraq Conflict on Iran

Paul Moore
Rap in the Streets, Rap in the Suites

Tim Wise
Off the Deep End: Private Clubs, Public Prejudice

Andy Worthington Former Insider Shatters Credibility of Military Commissions

David Macaray
Cartoon Voices: Serf's Up in Hollywood

Cal Winslow
The Healthcare Worker War

Niranjan Ramakrishnan
Spring in the Time of Obama

Website of the Day
Washington's Deep Game with China

July 10-12, 2009

Alexander Cockburn
Obama's Biden Problem

José Pertierra
The Cuban Five: a Cold War Case in a Post-Cold War World

John Ross
After the Honduran Coup

Conn Hallinan
The Settlements and the Quartet

Nikolas Kozloff
C Street Band: Sex Scandals, Moral Hypocrisy and the Far Right Agenda in Latin America

Clifton Ross /
Marcy Rein
U.S. and Honduras: Dr. Jekyll and Mr. Good Neighbor

Carl Ginsburg
Summers' Clouded Crystal Ball

Michael Neumann
Say It Loud, Say It Proud: There is No God!

Gilad Atzmon
The Left and Islam: Thinking Outside of the Secular Box

Jeffrey St. Clair
The Parable of the Golden Parachute

Ellen Hodgson Brown
California Dreamin': How the State Can Beat Its Budget Woes

Jim Goodman
Rural America Needs More Than Listening Sessions

Christopher Bickerton
Europe's New Politics of Hard Times

Wendell Potter
Health Care Industry Adopts Tobacco Lobby's Tactics

Dave Lindorff
CIA Lies: Why Isn't Congress in Open Revolt?

David Ker Thomson
Switchbacking Toward Bastille Day

Anthony DiMaggio
The Michael Jackson Feeding Frenzy

Raymond Lawrence
Michael Jackson as Sexual Pervert: the Calumnies of Peter King

Walid El Houri
Neda and Marwa: a Tale of Two Murdered Women

Stephanie Westbrook
Yes, We Camp

Roger Gaess
The Shades of Highgate Cemetery

David Yearsley
Tara, America's Dream House

Kim Nicolini
Caution: Men at Work, Robbing Banks

Poets' Basement
Five Poems From the Japanese

Website of the Weekend
Free Tiga and Hugh!

August 19, 2009

Debt Revolt? Tax Strike?
There are a Lot of Angry People Out There

By MARSHALL AUERBACK

No more free passes.  A number of the President's supporters who expressed concerns about the pro-Wall Street tilt of his early administration decisions were prepared to give him the benefit of the doubt so long as he came through on health care. President Barack Obama's statement over the weekend that the public option for insurance coverage was "just a sliver" of the overall proposal, and the suggestion by Health and Human Services Secretary, Kathleen Sebelius, that a direct government role in a system intended to provide virtually universal coverage was "not the essential element", appear to provide conclusive evidence of this administration's capitulation to corporate interests.  The "change you can believe in" President increasingly looks more like a Manchurian candidate of the right.

The disturbing thing about Obama taking the Rubinite path is that he now leaves government exposed as the lightening rod for everyone's problems, rather than the solution. If he had taken a more populist tack, more public anger could have been directed at the right people from the start as occurred under the FDR administration.

Extending the Bush/Paulson bailout policies (and, indeed, expanding them) and ignoring the needs of the productive economy, have largely discredited government fiscal activism.  Obama no longer appears willing to let the fiscal position of the federal budget grow as needed to meet current challenges.
When one adds extreme income imbalances and a comparatively weak social safety net (in contrast to those supposedly horrible "socialists" in Europe), then one has the makings of major social unrest, manifesting itself most recently in health care town hall meetings across the country this August.

Growing social unrest is something we have warned about for months.  It's not being taken seriously by Obama's people.  The eruption over the AIG bonuses was the tip of the iceberg.  The "experts" said it was "beside the point", but it wasn't.  It was a basic issue of fairness that could be readily understood by the vast majority of Americans in a way that complex credit default swaps could not. 

And the “experts”, who derided the eruption over AIG as a sign of irresponsible populism, are now being similarly dismissive of the town hall protests, which are themselves ostensibly being directed against a “government takeover of health care”, but in reality reflect so much more.

True, Obama has responded ineffectively to the absurd distortions of his plan (well, what we’ve seen of his ‘plan’ as he has delegated much of the writing of it to Congress).  But when government is no longer perceived as an instrument serving the general good, one can understand the susceptibility to the gross distortion of today’s health care proposals, however irrational the complaints might appear to the “experts”.  The protests more broadly represent a large, inchoate sense that the government is heading in a horribly wrong direction: At its most basic level, it looks increasingly as if the government is simply rewarding bad behavior, particularly given how the housing situation and banking bailout has been handled

In a recent piece I discussed debt repudiation as one manifestation of American citizens' growing sense of helplessness.  Could tax non-compliance be far behind? Certainly, it is a possibility (although one I would certainly NOT advocate), given the underlying perception of unfairness in terms of how the taxpayers’ dollars are being deployed. Both debt repudiation and tax non-compliance come when citizens collectively come to the decision that the entire power structure has no legitimacy because it no longer serves the broader population's needs and interests.  That’s the longer term possibility.

I am quite sympathetic to the "functional finance" view that there is no inherent "value" in money (not even gold), except insofar as one imparts a value to it via a commercial or private-public transaction. Indeed, the ultimate transaction in today's world is payment of taxes (you don't pay them, you go to jail).  The sanction is so high because the entire legitimacy, indeed functioning of a state and its fiat currency depends on its citizens offering its labour in exchange for goods and services. Abba Lerner also suggested:

“The modern state can make anything it chooses generally acceptable as money…It is true that a simple declaration that such and such is money will not do, even if backed by the most convincing constitutional evidence of the state’s absolute sovereignty. But if the state is willing to accept the proposed money in payment of taxes and other obligations to itself the trick is done.”

But the quid pro quo is that there must be tax compliance. 

If debtors' revolt extends to tax non-compliance, then you've got the makings of a severe inflationary problem.  Hyperinflations often occur when the government can print ever increasing quantities of money, but find little for sale, even as resources sit idle.  The brief history of the Confederacy during the US civil war is an excellent illustration of this phenomenon.  This does not require full employment; indeed, most hyperinflations take place with lots of unemployment because once hyperinflation sets in, it is virtually impossible to undertake 'money now for money later' operations..

The printing press, then, becomes a symptom of the problem, not the cause because it is the breakdown of the tax system which causes the government's fiat money to become worthless, not the running of the printing presses per se.  Tax gives value to a fiat currency.  When one has widespread tax avoidance, it marks the beginnings of true political dysfunction.

To be sure, we haven't come close to this point yet.  But it becomes an increasing risk for an administration that seems determined to recreate the financial conditions that led to the disaster we are now experiencing.  The Obama Administration risks destroying its legitimacy, as the rest of its political agenda is hijacked by a small group of wealthy plutocrats at the top.  In the words of Yves Smith, “All Team Obama has done on the banking front is write a lot of blank checks, hold some bogus "stress tests" in lieu of doing the real thing, and raise a stink on a few symbolic issues to try to paper over the failure to embark on real and badly needed reforms.”

Similarly, having the drug industry enlisted in the negotiations to construct a health care plan (as reported in the NY Times last week) is akin to Dick Cheney using Enron executives to construct Bush's national energy policy.

It is almost as if Obama's pledge to not deal with lobbyists was never made.

His "teflon" is wearing off faster than a hot frying pan.

As Howard Dean notes, without a direct government role in health care, you cannot achieve real reform. Similarly, Professor James K. Galbraith notes that the intrinsic costs of providing public health insurance are considerably lower than those for private health insurance.  As Galbraith writes in "The Predator State":

"There are no expensive inputs to purchase, not uncertainties of design or technology with which we have to concern ourselves.  The major inputs are personnel and computing capacity.  There are few major issues of innovation; unlike the rapid changes characteristic of medical practice, the service of providing insurance to pay for them does not evolve rapidly.  A successful private insurance company follows an ancient formula: it stratifies its clientele by risk class and charges minimums adapted to each class.  The most successful companies are generally those that manage to exclude the riskiest clients.

Public health insurance entities such as Medicare do not evaluate risk because they are universal.  Therefore, they save the major cost associated with private health insurance.  They pay their personnel at civil servant salary scales and are under no obligation to provide a return to shareholders via dividends or meet a target rate of return. "

Selective provision of private health insurance is invariably inferior to universal public provision. There are ample examples of successful, publicly supported (but privately administered) health care programs overseas in Europe and Asia. Yet, we appear to be heading in the opposite direction. 

Given the inappropriate premises under which the Obama Administration has continued to operate (e.g. credit flows from the top down, rather than the bottom up, banks are suffering from illiquidity, not insolvency, we "can't afford" a public health insurance option), we should expect many of today's many problems to continue to languish.  All of which will heavily constrain the capacity of the US economy to recover and may well lead to a Japanese style lost decade of economic stagnation.

Marshall Auerback is a market analyst and commentator. He is a brainstruster for the Franklin and Eleanor Roosevelt Intitute. He can be reached at MAuer1959@aol.com

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