Tuesday, June 30, 2009
I'm Senator Al Franken
Chart of the Week: The Pivot of History
Monday, June 29, 2009
When ACES Are Not Winners
Chart of the Week: The Second Great Depression
Saturday, June 27, 2009
Nobody Expects the American Inquisition!
Friday, June 26, 2009
Waxman-Merkley Climate Bill
{6/24/09}Al Gore told 11,000 green activists last night in a teleconference that the Waxman-Merkley climate bill, which was voted favorably out of the House Energy & Commerce Committee (33-25), will be scheduled for a floor vote on Friday. Energy business interests lobbied heavily against the legislation, and the effort featured a chart full of cost misinformation created by none other than the CEO of Peabody Coal Company the former Vice President said. The non-partisan CBO estimates that the per household cost of controlling greenhouse gases will be about the same as one postage stamp a day. ($175 a year by 2020) V.P. Gore asked specifically that Americans who understand the necessity of controlling CO2 if the planet is to have a survivable future, call their elected Representatives and ask them to vote for the legislation when it reaches the floor. If you read this blog and are a citizen of the United States, that means you! House switchboard: (202) 224-3121
'Toontime: The 800 Pound Insurance Exec
“[T]hey confuse their customers and dump the sick, all so they can satisfy their Wall Street investors,” former Cigna senior executive Wendell Potter told senators at a hearing on health insurance Wednesday before the Senate Committee on Commerce, Science, and Transportation.
Potter, who has more than 20 years of experience working in public relations for insurance companies Cigna and Humana, said companies routinely drop seriously ill policyholders so they can meet “Wall Street’s relentless profit expectations,’” Potter told the hearing, according to ABC News.
“They look carefully to see if a sick policyholder may have omitted a minor illness, a pre-existing condition, when applying for coverage, and then they use that as justification to cancel the policy, even if the enrollee has never missed a premium payment,” Potter added. “(D)umping a small number of enrollees can have a big effect on the bottom line.”
Thursday, June 25, 2009
Feeding the Bulls IV
- Regulatory capture. Expanding the role of the Federal Reserve as the uber-agency of financial regulation is like putting the fox in charge of the hen house. The Fed is essentially a private bank. Its shares are owned by the commercial bank members, and its chairmen have been banking advocates. The regulatory framework established after the Great Depression was systematically gutted at the request of banking interests. Alan 'Fedspan', creator of the bubble currently deflating us all, is the archetypal example of a Fed chairman under the influence of Wall Street. Andrew Jackson did not spend his second administration fighting the Second Bank of the U.S. and Nicholas Biddle for nothing. He knew that the power to print money should be a monopoly controlled by a democratically elected government. In modern terms, the ability to create credit has devolved to any business willing to sell debt--the shadow banking system. 44 is doing nothing to correct this problem. The Federal Reserve is already the lender of last resort charged with the safety of the banking system, now referred to as "systemic risk". It failed to stop the abusive practices leading to the near melt down of the system. A first step to real reform and public accountability would be to allow GAO--an agency of Congress-- to regularly audit the Federal Reserve since the power to print money is reserved to Congress in the Constitution[1].
- Failure to prosecute fraud and abuse. A second step would be to prosecute credit companies, including banks, for fraudulent extensions of credit. Bush used an obscure civil war era law in 1864 National Bank Act to block eleven state Attorney Generals from prosecuting financial fraud. He assigned the cases to the federal regulator who refused to prosecute citing 'free market' principles. 44 does not propose repealing this archaic law, and pays lip service to more vigorous federal fraud enforcement without proposing additional funding for it.
- Consumers left to the mercy of predatory lending. 44 proposes a Consumer Financial Products Agency to protect consumers from predatory lending, but does not support re-instituting usury laws, capping mortgage rates, or rescission of predatory mortgages in bankruptcy court. Nor does he support an actual consumer bank such as postal banks {Another Free Radical Idea, 2/3/09}that could issue their own credit/debit cards and provide automated payment services to insure competitive credit card rates from private banks.
- Opaque financial derivatives are not eliminated. Wall Street advocates call it financial engineering, but in reality complex derivatives like credit default swaps are casino capitalism. Only a casino wins in the long run, and the same is true for derivatives. Wall Street firms make their money on the fees associated with designing and marketing custom derivatives. 44 does not propose restricting this cash flow based in essence on gambling. He also does not touch the off-balance sheet vehicles used to hide debts an assets beyond the purview of regulators and the public. Requiring banks to hold only 5% of their mortgage loans is simply child's play for the wizards of private credit creation.
- Favoring financial capitalism over industrial capitalism. The existence of well paid manufactory jobs made a large, financially secure middle class possible. But now the United States is making fewer and fewer capital goods. This de-industrialization is encouraged by a skewed tax system that encourages the selling of debt as the major product of our economy. FICA wage withholding is regressive and only wages below $102,000 are subject to the tax. Yet capital gains, the 'wage' of Wall Street speculators are only taxed at low rates--15% for long term capital gains. As a result of this and other fiscal subsidies for debt leveraging, industrial cash flow is diverted to pay interest and dividends rather than being reinvested in the means of production. This condition leads to further social stratification in which a shrinking middle class is mired in a low-wage debt peonage to the financial elite.
Tuesday, June 23, 2009
Nominee is No Friend of Wildlife
Indigenous People Block Oil Development
Monday, June 22, 2009
Turtles Need Tunnels Too
Saturday, June 20, 2009
Friday, June 19, 2009
The Washington Health Care Nexus
Thursday, June 18, 2009
Hawaiian Monk Seals Win More Habitat
Wednesday, June 17, 2009
Nuclear Power: Too Expensive to Use
Zionists Accept Palestinian State....Provided
Demos Cave Again?
Update: {6/16/09}Attack dog Carl Rove has gone on the offensive against the public option in an editorial replaying the memes of conservative propaganda guru Frank Luntz. US Person actually wants single payer health insurance because it makes the most economic and social sense. Call it "socialized medicine", if you will. The term is not a pejorative in my blog since the rest of the civilized western world already enjoys the benefits thereof. Most Americans, including me, are willing to compromise with the social Darwinists and just provide a government plan option among a constellation of private health insurance plans. But that's unacceptable to the laissez faire die hardists, so they are fiercely attacking the progressive reform with myth making. Here are the leading lies and true facts about the public option[1]:
- Lie: it's unnecessary since there are plenty of private plans available. Truth: Private insurers avoid competing with each other. 1 in 6 metropolitan areas are dominated by a single insurer according to a 2008 study of 300 US markets. The industry has experience a wave of consolidations with over 400 mergers in the last ten years;
- Lie: Proponents of private competition to provide the prescription drug benefit (Medicare Part D) claimed it would reduce costs. Truth: Kaiser Family Foundation has found that costs of Medicare Part D with private competition have significantly increased;
- Lie: A public plan would shift costs to Americans with private insurance since Medicare pays less. Truth: Public plans like Medicare increase efficiency of the health system because they pay for value, not volume;
- Lie: A public plan will lead to a "welfare state". Truth: There will be private insurance for those who want it for ideological or health reasons. Private insurers who offer a superior product over the generic government plan will be rewarded by consumers. Those private insurers who do not offer value will be at a competitive disadvantage. That is the way the market works, Carl.
- Lie: Americans will be forced to purchase a public plan eventually because the government will crater the private insurance market. Truth: Conservatives want a mandate for all Americans not eligible for Medicare to purchase health insurance, but are unwilling to allow a low cost plan for those who want a basic comprehensive policy because they cannot or choose not to afford higher prices in the private market. There are both KIAs and Cadillacs offered in the US car market. Not everyone drives a KIA.
- Lie: A public plan puts a bureaucrat between the patient and doctor. Truth: Private insurers already insert themselves into the doctor-patient relationship by deciding which treatments they will pay for in advance. Public plan proposals provide for incentives to private doctors patients choose for providing quality care of illnesses--not just symptoms, spending more time with their patients, and rewarding good health maintenance and preventive care.