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Today's Stories October 9, 2007 Paul Craig Roberts Blinded by Ideology: Cato, Trade and Outsourcing October 8, 2007 David Macaray Lesbians for Hillary? or Teamsters for Hillary? Jeff Ballinger Nike, Steroids and Marion Jones Brian Eno This Ban Won't Stop Us Christopher Brauchli Translating Bush Louay Safi End the Disgrace of Guantánamo Matt Reichel Homocide by Cops at the Phoenix Airport Dave Lindorff Finally, A Good Day for the Constitution Thomas P. Healy The Politics of Mercury Pollution Martha Rosenberg E. Coli Spreading Slaughter Allowed to Stay Open Richard Rhames A Democrat's Lament Website of the Day Not All Italians Love Columbus   October 6 / 7, 2007 Alexander Cockburn A Rainbow Over a Graveyard Norman Finkelstein Jeffrey Goldberg's Prison James Bovard Are Presidents Entitled to Kill Foreigners? Patrick Cockburn The Invasion of Afghanistan, Six Years Later Jeffrey St. Clair At Disaster Falls Ralph Nader Where Are the Lawyers of America? Ray McGovern So Who's Afraid of the Israel Lobby? Saul Landau A River Runs Through It Ben Tripp Bring on the Next War! Terry Lodge The Grateful Dead Body Parts Delivered to Your Door Reform Act Seth Sandronsky Market Mystification and the Liberal Virus Kevin Funk / Steve Fake Divestment and Darfur Missy Beattie In the Custody of Bush and Cheney Website of the Weekend Snoop Dogg vs. Bill O'Reilly   October 5, 2007 Andy Worthington The Anonymous Victims of Guantánamo David Macaray De-Skilling America's Labor Force Lee Sustar The Democrats and Iran: Can They Sink Any Lower? Dan La Botz Cincinnati Six Years After the Killings and the Riots Aaron Hess Hate Week Comes to Campus William A. Cook Unmasking AIPAC Website of the Day Range of Memory   October 4, 2007 Uri Avnery The Power of the Israel Lobby Dave Marsh Dick Cheney, a Eulogy Valerio Volpi How Italy Became a Launching Pad for the US Military Cecilie Surasky Dissenting at Your Own Risk Dave Lindorff Remaking Iraq, as Vietnam Norman Solomon Sputnik, 50 Years Later Laura Carlsen Costa Rica and CAFTA: Memo Reveals Manipulation Scheme Walter Brasch When Compassion Fails: Bush and the Children's Health Act Ben Terrall Haitian Human Rights Advocate Kidnapped William S. Lind Beyond the OODA Loop Website of the Day Musicians in Handcuffs   October 3, 2007 Vijay Prashad Gang of Four Anita Sinha Black Ties and Bulldozers in New Orleans Winslow T. Wheeler Posturing at the Petraeus Hearings: Where was the Oversight? Sharon Smith The Kucinich Quandary Jeff Leys Our Bonhoeffer Moment Sen. Russ Feingold We Must End This Tragedy Mohamad Bazzi Playing Into the Hands of Ahmadinejad Brenda Norrell A Cry from the Top of the World Robert Weissman No Sex, Still a Scandal at the IMF Website of the Day Jena by Mellencamp   October 2, 2007 Ibrahim Warde Logical Lies About Bin Laden's Wealth Gary Leupp "I Hate All Iranians": Frank Talk from a Defense Dept. Official David Macaray The Hunt for a Blue November: In Pursuit of the Labor Vote Conn Hallinan Religion and Foreign Policy John Ross The Great American Chess Match Alan Farago Ripping Off Miami's Poor Sonja Karkar The Right to Exist: States or People? Niranjan Ramakrishnan The Meteor and the Mahatma Website of the Day Grandin on Che's Legacy   October 1, 2007 Al Giordano The Clinton Campaign's Reckless Race for Big Money Donors Paul Craig Roberts From Burma to Iraq: Hypocrisy Rules the West Moshe Adler The Crimes of Microsoft Ingmar Lee My Kayak Journey Down the Wild Pacific Coast John V. Walsh Ahmadinejad is Not My Enemy Norman Solomon Political Science and Truth of Consequences Roger Burbach Historic Victory in Ecuador for the Left Ramzy Baroud The Politics of Assassination Stephen Lendman The Maestro of Misery: Greenspan's Dark Legacy Susie Day Honey, I Shrank the Military! Website of the Day Letters from Fort Lewis Brig   September 29 / 30, 2007 Alexander Cockburn Clinton Time: Do We Set Our Clocks Forward or Back? Uri Avnery So What About Iran? Andrew Cockburn Iraq's WMD Myth: Why Clinton is Culpable Jeffrey St. Clair Through the Gates of Lodore Wajahat Ali The Good, the Bad and the Iraqi Andy Worthington The Curse of the Military Commissions Don Santina Ethnic Cleansing in San Francisco Ralph Nader Free Lunches, for Corporations! Fred Gardner The Man Behind the MoveOn Ad Seth Sandronsky The US Economy Since 1980 Gideon Levy The Children of 5767 William S. Lind A Ticking Bomb Reza Fiyouzat An Anti-Imperialist Case Against a Nuclear Iran Richard Rhames Wag the Tail, Frag the Dog David Michael Green Buyer's Remorse: Their Purchase, Our Regret Zach Mason Hate and Hope in Herndon Poets' Basement Gibbons, Ali, Davies and Suss Website of the Weekend Domestic Crusaders     September 28, 2007 Kathleen and Bill Christison The Teflon Alliance with Israel Roberto J. González / David H. Price When Anthropologists Become Counter-Insurgents Saul Landau September, the Cruelest Month in Chile Tom Clifford Burma by the Numbers Christopher Brauchli Of Toxic Almonds and Bad Beef Martha Rosenberg Spinning Suicide Statistics Dave Zirin Soldier in Winter: John Carlos Speaks Out on the Jena 6 Laray Polk Bush Library or Lockbox? Binoy Kampmark When Reagan Turned Brown James McEnteer Hell, Columbia: an Academic Hotshot Introduces a Petty Tyrant Website of the Day Concerned Anthropologists   September 27, 2007 Alan Farago Housing Market Crashes and Burns Andy Worthington A Bad Week at Guantánamo Jonathan Cook Why Did Israel Attack Syria? William Hughes Billy Graham, a Prince of War Exposed Ray McGovern Bush, Oil and Moral Bankruptcy Ron Jacobs Joe Biden's Plan to Chop Up Iraq Dave Lindorff Quit the Party! Join the Mass Resignation Movement! Joshua Frank Pruning the Green Party Anne Dachel The CDC, Vaccines and Autism Website of the Day The God-O-Meter   September 26, 2007 Bill Quigley HUD's Home Wreckers Paul Craig Roberts A Pandemic of Police Brutality Jeff Kisseloff Still Smearing Alger Hiss China Hand Is China the True Target of Financial Sanctions Against Iran? Behzad Yaghmaian At the Gates of Paradise Sonja Karkar The Quality of Mercy in Gaza Mike Ferner Interrupting the Empire, 30 Seconds at a Time Col. Dan Smith Freedom to Speak, Freedom to Learn Clifton Ross Bollinger's Barbarous and Ignorant Speech Brenda Norrell A Meeting of Indigenous Peoples in Caracas Website of the Day The Smearing of Jean Maria Arrigo, a Psychologist Opposed to Torture   September 25, 2007 Nicole Colson On the March Against Racism Uri Avnery Foam on the Water Brendan Cooney Ahmadinejad on Broadway: Free Speech? Arrest Him! Harry Browne Bruce Springsteen Comes Home ... to Hell Marjorie Cohn The Drift Toward War with Iran David Macaray The UAW-GM Strike: the Long Knives are Already Out Ralph Nader Hypocrisy and Inverted Priorities in Congress Dan Bacher Schwarzenegger, the Climate Change Hypocrite Anthony Papa Perverted Justice & America's Drug Laws Christopher Ketcham All Politicos Now Classed as Sexual Deviants Website of the Day John Waters on Free Speech   September 24, 2007 George Ciccariello-Maher Racist Violence from Jena to Oakland Saree Makdisi The War on Gaza's Children David Keen Action-as-Propaganda: Learning About the Iraq War from Hannah Arendt Sherwood Ross Just How Powerful is the Israel Lobby? Only Cheney Knows for Sure Ron Jacobs Greenspan's Open Secret Donna Saggia The Cult of the Military and the Decline of Democratic Values Mike Ferner Free Speech Takes a Capitol Beating Malini Johar Schueller Norman Hsu is a Model Minority Monique Dols and Dylan Stillwood Ahmadinejad and Columbia Website of the Day The Promotion September 22 / 23, 2007 Alexander Cockburn On Naomi Klein's "The Shock Doctrine" Jennifer Loewenstein Beneath the Hideous Veneer of Security Linn Washington, Jr. The Injustice in Jena: Prosecutorial Misconduct More Dangerous Than Racism Jeffrey St. Clair Going Down in Dinosaur: Oil, Dams and Whitewater (Part One) Alan Farago Genuflecting to China Brian Cloughley Of Hate, Hubris and Atrocities Robert Fantina The Deadly Pattern of US Imperialism Roxanne Dunbar-Ortiz Land Tenure and Resistance in New Mexico Jason Hribal Fear of an Animal Planet David Rosen Slugger Sex: Athletes, Violence and Male Sexuality Mike Whitney The Era of Global Financial Instability John V. Walsh Who Will Lead a Filibuster of the Iraq War Spending Bill? Dave Lindorff Why Aren't We Banning Blackwater Here? David Michael Green Hiding Behind a Camouflage Skirt Fred Gardner Claudia Jensen (Look Back in Anger) Cassandra Jones Support Our Mercenaries Roger van Zwanenberg Pluto Press Under Attack by Israel Lobby Poets' Basement Buknatski, Davies and Ford Website of the Weekend "For the Bible Tells Me So"   September 21, 2007 Karim Makdisi Letter from Lebanon M. Shahid Alam A History of Violence Alan Farago Who Will Buy My House? Joshua Frank The Demise of the Congressional Black Caucus Dave Zirin Notre Dame and the Economy of Sports Kenneth Couesbouc A Short History of Lending and Borrowing Dr. Steffie Woolhandler and Dr. David Himmelstein Mass Health Care Failure Ben Terrall The Streets of San Francisco: Where Impeachment is Taken Seriously--By Everyone But Pelosi Steve Fournier Ex-Dems, Sign Up Here Frederico Fuentes, et al Voices in Defense of Bolivia Website of the Day Sabra and Shatila, Remembered   September 20, 2007 Kathleen Christison Whatever Happened to Palestine? Zoltan Grossman An Endless Occupation? Paul Craig Roberts As the Empire Slips: Greenspan and the Economy of Greed Stan Cox and Wes Jackson Carbon-Free and Still Wrecking the Planet Russell Mokhiber AARP to Kucinich: Drop Dead Charles Modiano Jim Crow's Children: the Jena 6, Shaquanda Cotton and Blog Power Raymond J. Lawrence Bush's Worrisome Use of Religion Brendan Cooney Body-Snatched Nation Website of the Day Mind Control for Breakfast   September 19, 2007 Paul Craig Roberts Why Did Senator John Kerry Stand Idly By? Paul Krassner The Power of Laughter Sgt. Martin Smith The New Private Warriors: Blackwater in Iraq Seth Sandronsky Living in a Dilapidated Market: To Rent or Own? Claud Cockburn Looking back at the Great Crash Victoria Buch Israel's Agenda for Ethnic Cleansing and Transfer Robert Weissman Oil Warriors: From Greenspan to Kissinger Mike Ferner Can We Talk? Dan Bacher Schwarzenegger's $9 Billion Boondoggle for Big Water Website of the Day Housing Cost Calculator   September 18, 2007 Mike Whitney U.S. Banks Brace for Storm Surge as Dollar and Credit System Reel Alan Farago Interviewing Alan Greenspan: How 60 Minutes Blew It John Ross America's Great Wall: Where Will the Workers Go When They Finish It? Ron Jacobs Nooses Hung From Jena, La. to College Park, Md. Alex Doherty Britain's 9/11 "Truth Movement": Who's Responsible? September 17, 2007 Marjorie Cohn Erwin Chemerinsky and the Post-9/11 Attack on Academic Freedom Paul Craig Roberts Conservatism Isn't What It Used to Be Ricardo Alarcón The Return of C. Wright Mills Amid the Dawn of a New Era Marc Levy Fake Vets Chasing Fame Eva Liddell In 1969 We Already Knew What 2007 Would Look Like Website of the Day Propaganda: Your Job in Germany. Directed by Frank Capra, and written by Theodor Geisel Sept. 15-16, 2007 Alexander Cockburn The General Came to Washington Vicente Navarro How the U.S. Schemed Against Spain's Transition from Dictatorship to Democracy Mike Whitney Plummeting Dollar, Credit Crunch Herman Mindshaftgap Has There Ever Been a Surge? If so, Has it a Future? Ellen Cantarow Girls! Music! Palestine! Jordan Flaherty K-Ville: Fox's New Paean to the N.O.P.D. Zachary Hurwitz Julio Cusurichi on Amazonian Development September 14, 2007 Debbie Nathan New York Times reporter was a member of an illegal underage porn site, claims he was only "posing as online predator" Franklin Lamb Sabra-Shatilla, 25 Years Later Patrick Cockburn Greet Bush and Die: The Killing of Abu Risha Farzana Versey The World's Richest Muslim Tycoon Alan Farago This is Florida, Epicenter of the Housing Bust and of Public Corruption Hank Edson Bill's New Book is Giving Me a Headache September 13, 2007 Patrick Cockburn Petraeus Confided Presidential Ambitions to Iraqi Official Scott Vest, former Air Force Captain at Minot The Barksdale Nukes Andy Worthington Guantánamo: "Ghost" Prisoners Speak At Last Michael Baney Mr. Fixit of Quake-Stricken Peru Has Death Squad Past Dr. Susan Block Is U.S. Run by Secret Homintern? September 12, 2007 Paul Craig Roberts American Economy: RIP Stan Goff The Petraeus Report William Blum When Soldiers Mutiny...Only Those Fighting the War Can End It. Manuel Garcia Forgetting 9/11 Debbie Nathan Why One Sex Survey Didn't Make the Big Time September 11, 2007 Patrick Cockburn The Fakery of General Petraeus Iain Boal Specters of Malthus: Scarcity, Poverty, Apocalypse Michael Dickinson Osama on 9/11 Guerry Hoddersen Free Speech is Not Given, but Taken Bill Hatch Irish Politics in Old Time California Gary Leupp The Legacy of Luciano Pavarotti Website of the Day Elisa Salasin's "My September 11th" September 10, 2007 Uri Avnery A Big Victory Against the Wall Patrick Cockburn Petraeus's Closet Saul Landau and Farrah Hassen Screwing Up In Iraq David Michael Green Why Fred Thompson is Uniquely Qualified to be the GOP's Nominee Pius Adesanmi A Solidarity Letter to a Victim of Michael Vick Betty Schneider How to Deal With Sex Offenders   September 8 / 9, 2007 Alexander Cockburn Will the US Really Bomb Iran? Saul Landau The Irrational Drama of a Declining Empire Ismael Hossein-Zadeh Hurricane Katrina and Bush's Wars Ray McGovern Petraeus, the Westmoreland of Iraq Matthew Abraham Finkelstein's Legacy at DePaul Alan Farago The Governor and the Growth Machine Christopher Brauchli Grand Old Party Animals Rannie Amiri Battle of the Camps Fred Gardner Will Snoops Get Stopped? James L. Secor B-52 Flexing Nuclear Muscles: H-Bombs Over Barksdale Missy Comley Beattie Choices: Shall We Stay or Shall We Go Now? Ben Tripp Still in the Clover Francis Boyle The University of Illinois' Little Red Sambo Show Joe Allen and Paul D'Amato Jason Bourne vs. James Bond Website of the Weekend Drilling Wyoming: the View from Above September 7, 2007 Robert Fantina Those Iraq Reports: Bush vs. Reality John Ross Coca-Cola's Raid on a Sacred Mountain James Brooks The Occupation Within Russell Mokhiber Robert Reich and the Elimination of Corporate Criminal Liability Joshua Frank The Green Implosion Continues: Cyberlynching John Murphy John Walsh On the Green Party Mark Brenner New York Taxi Workers Strike Over Tracking Devices Mike Ferner "I Will Salute No More Forever" Website of the Day Help Save Osny Zachary's Life             Subscribe Online

October 9, 2007 Cato, Trade and Outsourcing Blinded by Ideology By PAUL CRAIG ROBERTS On August 28 the Cato Institute in Washington DC published a report, "Thriving in a Global Economy: The Truth about US Manufacturing and Trade." The report confuses a company's offshored products with its import competition and wrongly concludes that US companies with the most import competition are the companies that are thriving. The Cato report never mentions the practice of US corporations of offshoring their production for US markets. Consequently, the report conflates offshored inputs and final goods of US corporations with imports from competitive foreign firms. The report thus confuses corporations or industries that offshore their manufacturing with those most exposed to import competition. This extraordinary mistake results in an incorrect conclusion. The Cato report finds that revenues, profits, and value added rose most for industries most exposed to import competition and mistakenly attributes this result to the beneficial workings of free trade. In US trade statistics, offshored US production is counted as imports. Offshored production comprises a substantial percentage of manufacturing imports. Let's rewrite Cato's conclusion to take account of these facts: "Revenues, profits, output, and value added rose the most for industries that offshored manufacturing, and they rose the least for those industries that produced their output domestically." Obviously, corporations that arbitrage labor and replace their US employees with less expensive foreign labor are going to enjoy greater growth in profits and value added. The Cato report did not set out to prove the benefits to corporations of offshoring. The goal of the report is to combat protectionist sentiments in Congress that might result in trade restrictions. Thus, a report that attributes the health of US manufacturing to import competition. In January 2004 in the New York Times and at a televised Brookings Institution conference, Senator Charles Schumer and I attempted to create a new discussion around a new and unrecognized problem. The problem is that the collapse of world socialism and the rise of the high speed Internet made it possible for domestic corporations to arbitrage labor across national boundaries in pursuit of absolute advantage. In the years since, I have written extensively on this issue. Labor arbitrage is not trade and does not meet the Ricardian conditions for comparative advantage upon which the case for free trade is based. Few economists have bothered to think about the issue of offshoring, preferring to dismiss concerns about it as manifestations of the old protectionist fallacy. They learned in graduate school that free trade is always mutually beneficial and ceased to think when they passed their exams. This is especially true of "free market economists" who believe that economic freedom, which they identify with the freedom of capital, is always good. Thus, most economists mistakenly believe that offshoring is protected under the authority of free trade doctrine. However, free trade doctrine is based on the assumption that domestic capital seeks its comparative advantage in its home economy, specializing where its comparative advantage is best and, thereby, increasing the general welfare in the home economy. David Ricardo, who explicated the case for free trade, rules out an economy's capital seeking absolute advantage abroad instead of comparative advantage at home. Jobs offshoring is not only a problem for displaced US manufacturing employees--displacement that Princeton economist and former Federal Reserve vice chairman Alan Blinder says will also impact 30 to 40 million high-end US service sector jobs as well-- but also a problem for economic theory. Economic theory assumes that capitalists pursuing their individual interests are led to benefit the general welfare of their society by an indivisible hand. But offshoring, or the pursuit of absolute advantage, breaks the connection between the profit motive and the general welfare. The beneficiaries of offshoring are the corporations' shareholders and top executives and the foreign country, the GDP of which rises when its labor is substituted for the corporations' home labor. Every time a corporation offshores its production, it converts domestic GDP into imports. The home economy loses GDP to the foreign country which gains it. Recently, Ralph Gomory, co-author with William Baumol, of Global Trade and Conflicting National Interests, the most important work in trade theory in 200 years, pointed out that traditional trade theory has broken down because companies are no longer bound to the interests of their home countries. Offshoring has de-coupled the link between a company's motivation for profit and a nation's desire to improve the wealth of its citizens. "Most economists," Gomory observed, "have not acknowledged this fundamental change and its implications for economic theory." The Cato report shows no awareness of the problem for economic theory when the profit motive becomes disconnected from the general welfare, and the report does not appreciate the restraint placed on traditional protectionist legislation (tariffs and quotas) by manufacturers that offshore. The traditional purpose of trade protection is to shield domestic producers from foreign competition. Neither manufacturers that offshore production nor their trade associations favor any tariffs or quotas that would reduce their profits from offshoring by treating their offshored production as the products of foreign competitors. The Cato report is worried about a protectionist policy for which there is no organized constituency. Congress and most economists are as confused about the issues as the Cato report. Today the profit motive causes capitalists to create job opportunities and GDP in low-wage foreign countries instead of their own. Every job that does not require a "hands-on" presence can be offshored. Charles McMillion and I have pointed out for years that the nonfarm payroll jobs data from the Bureau of Labor Statistics show that the US economy can only create net new jobs in domestic non-tradable services. The Cato report does not acknowledge that the financial prosperity of US capital is at the expense of US labor. The report does not explain how an $800 billion trade deficit can be closed when domestic corporations face powerful incentives to offshore, and it shows no awareness of Susan Houseman's findings that productivity gains and output growth that result from offshoring, and which occur abroad, are mistakenly being counted as US GDP and productivity growth. This phantom US output and productivity growth would explain the disconnect between rapid productivity growth and US real median family income, which is lagging far behind. The financial prosperity that US corporations are enjoying from offshoring increases the US trade deficit and makes American consumers increasingly dependent on imports. In 2006 (the most recent annual data) the US trade deficit in manufactured consumer durable and nondurable goods was 3.4 times greater than the US trade deficit with OPEC. The US "superpower" has a massive trade deficit in consumer manufactured goods and even has a deficit in capital goods, including machinery, electric generating machinery, machine tools, computers, and telecommunications equipment. In 2006 The US trade deficit with Europe was $142,538,000,000. With Canada the deficit was $75,085,000,000. With Latin America it was $112,579,000,000 (of which $67,303,000,000 was with Mexico). The deficit with Asia and Pacific was $409,765,000,000 (of which $233,087,000,000 was with China and $90,966,000,000 was with Japan). With the Middle East the deficit was $36,112,000,000, and with Africa the US trade deficit was $62,192,000,000. The trade deficit with OPEC was $106,260,000,000. The more US corporations prosper by offshoring, the greater the US trade deficit will grow and the more unbearable the pressure will be on the dollar's role as reserve currency. At some point crisis will force Congress, economists and think tanks to deal with the real issues. Paul Craig Roberts was Assistant Secretary of the Treasury in the Reagan administration. He was Associate Editor of the Wall Street Journal editorial page and Contributing Editor of National Review. He is coauthor of The Tyranny of Good Intentions.He can be reached at: PaulCraigRoberts@yahoo.com

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