Of
Martyrs, Sinners and Saints...
"These books can be read, independent of their time and place, as strong preventive medicine against the mentality of servility, and especially against the lethal temptation to exchange freedom for security: a bargain that invariably ends up with the surrender of both."
- Christopher Hitchens, Washington D.C. (January 20, 2003) - Preface to Animal Farm and 1984, by George Orwell
By J.M. Hamilton 9-28-13
What possesses a person to write a blog, illustrating their beliefs on economic and political issues, knowing full well that they risk upsetting at least half their readers? Even if such chicken scratch is written under a pseudonym to protect family - we now know that nothing is private, and the NSA can track down anybody, using IP addresses and the world wide web.
I've said it before and it's worth repeating, if this blog troubles you... It’s probably because the points made challenge your own beliefs? One simple solution is don't read J.M.H. Better yet, start your own blog, as a direct counterpoint to my own. If you are inclined to believe that I am merely unqualified to write on the issues of the day, one should check out what passes for news and journalism in many of today's mainstream/corporate news organizations, or turn on the six o'clock local news, replete with sanitized, often mindless news stories, and the weather. Yes, and there is that thing called the first amendment. On the other hand, if individuals are judging me based upon my life, well.... I guess by that standard, nobody would be qualified to write or offer an opinion. I've never claimed to be saint, and I have met very few saints, if any, in my lifetime.
I've often analyzed my own intentions in writing this blog, and they have evolved over time. At there most altruistic - I write to educate, to share what I have learned, and - as is true of any polemicist - in the hopes that my words may influence others and bring about positive change. Who knows? If these editorials cause you to foam at the mouth, raise your blood pressure just a little bit, or laugh out loud, than I've achieved my objective. My novice opinions are expressed on the macro economic and political issues of the day, and are intended for a macro audience.
All of this makes me wonder about Mr. Snowden. Here is a man, at great personal risk to himself and his future, who wanted to bring about change by sharing what he knew. That he had to flee the U.S. to protect himself from persecution and prosecution, demonstrates how far this nation has come in sacrificing freedom for alleged claims of personal safety - not unlike certain claims made by totalitarian and authoritarian regimes. The ends always justify the means in an authoritarian or totalitarian state; and individual freedom - and the individual - are often sacrificed for specious claims about the greater good, the protection of the state (i.e. dictator), the safety of said regimes inhabitants, or just on a whim.
President Obama has accomplished a great deal while in office, much of it positive; and of course, there's the GOP's foregone opportunity cost, when the Bush (W) administration - and subsequent Republican presidential nominees - placed President Obama into power, not once but twice. And yet, despite high hopes, there's already a wistfulness (and in some instances rebellion) among his supporters, about this Presidency and what it might have been. Particularly, when it comes to issues like governmental transparency, and reining in some of the worst excesses of the previous administration, such as an assault on personal freedoms, all under the guise of protecting said freedoms, under the Orwellian named Patriot Act. The very notion that the U.S. is now under 24-7 surveillance, and many of our global allies and friends are upset about their own surveillance at the hands of the U.S.government (sometimes with the complicity of same/said allied government)... well, possibly, one starts to understand why Mr. Snowden may have done what he did.
The idea that Mr. Snowden could have gone to his superiors within the NSA, or a member of Congress to discuss his findings, is absurd. The country, as often as not, suffers from what Mr. Orwell called "groupthink," and clearly lockstep obedience and consent is often not only preferred but demanded, particularly in today's economy. The squeaky wheels, with the best of intentions (and even if they are correct, can save their government or organizations money, profits, or embarrassment) are turned away, told to shut up, and get back into line. Or are simply terminated.
This then, maybe the nation's Achilles heal. Have we grown so massive, bureaucratic, brittle, hierarchical/patriarchal, and passive/apathetic... that it is not foreign military power that the nation has to fear, but a single person with an idea? Ideas, after all, are dangerous things. And this concept helps explain, why our government maybe spying upon it's citizens. Ideas - as well as democracy itself - seemingly, must be contained. The only other explanation for the NSA's behavior is moral hazard. Is the NSA what happens when the profit motive and the private contractors - who run the NSA, are both introduced to unlimited/black/offline budgets, and a sub-rosa regulatory court for oversight? Anything goes? (By the way, I would like to think it's greed that drives the NSA because with proper oversight that can be reined in. Then again, if our government truly is afraid of it's citizens - that it feels compelled to spy on us 24-7 - than this is as it should be. For governments - even one's founded on such unprecedented idealism as our own - should be afraid of it's citizens, particular when said government is, allegedly, derived by the will of it's people. Mr. Jefferson told us that, and more.)
Mr. Snowden is a patriot. He will enter the pantheon of great men, not unlike MLK, Gandhi, Jefferson, and Paul Volcker. He's a rebel with a cause, and his cause is freedom from the tyranny of a government agency(ies) that has over-extended it's reach. Mr. Snowden is a radical and revolutionary (but only to the extent that telling the truth, and government transparency have become a radical idea and a revolutionary concept, respectively).
Quite simply, Mr. Snowden has pulled back the veil in the land of Oz, and has defied the power behind that veil.
And for that, liberals and libertarians, democrats and republicans, should all be grateful. General Alexander, who runs the NSA, appears to come from a line of military leaders throughout the ages, who appeared to have gone meglo, or at his very best, has a questionable regard for the constitution of the United States. In response, what Americans should insist upon is greater transparency in government and the DOD/NSA. We should also be weary of the "contrived event" that places this nation on a wartime footing, is used to justify an absurd amount of spending on the NSA and DOD, and causes Americans and the Congress from taking their eye off reforming these same bureaucracies. (By way of example, the Gulf of Tonkin and Iraq's weapons of mass destruction - and some conspiracy theorist have even suggested 9-11 itself - fall into the "contrived event" category.)
Whether Mr. Snowden ends up a martyr or a saint, or perhaps both, remains to be seen. In either case, a debt is clearly owed to this man, and he should have not have had to fled to the former Soviet Union, out of fear for his personal safety or reprisals from our government. Could there be a Nobel in this young man's future? I certainly hope so.
And speaking of saints... The patron saint of Capitalism, Mr. Warren Buffett, let loose an interesting point at Georgetown University recently, when he called the Federal Reserve the greatest hedge fund ever.
Mr. Buffett deserves tremendous credit and respect for being honest; he continues to be effusive in his praise for Chairman Bernanke, and Messrs. Geithner and Summers, for bailing the nation out of the financial crisis.
But as events have shown, it wasn't the nation that was bailed out of the ongoing Great Recession; but rather, the high flyers in banking, finance, shadow banking and private equity who were bailed out of a disaster of their own making, by the Federal Reserve and the Congress of the U.S. There's been news story after news story as of late, that the true beneficiaries of the Fed's largess (read QE and interest rate suppression) have been the plutocracy and folks like Mr. Buffett. Hence, praise from Mr. Buffett for the Fed programs that have done little for the 99% and have actually, arguably, harmed same.
Unemployment appears to be creeping down but for the wrong reason: people have given up looking for jobs. Speculation is rife in the Wall Street cartel, and some of the banks that make up the cartel are under investigation for rigging commodities markets, and financial benchmarks. J.P. Morgan has reportedly set aside another six billion plus in legal expense, so much for the epitome of risk management. Meanwhile, the 99% are having trouble finding employment, are squeezed by higher food and fuel priced - caused by speculation courtesy of the Feds largess to the connected and the powerful, and the housing market is still a mess.
Mr. Buffet once called derivatives and swaps "financial weapons of mass destruction," but his companies continue to profit tremendously from same.
"These books can be read, independent of their time and place, as strong preventive medicine against the mentality of servility, and especially against the lethal temptation to exchange freedom for security: a bargain that invariably ends up with the surrender of both."
- Christopher Hitchens, Washington D.C. (January 20, 2003) - Preface to Animal Farm and 1984, by George Orwell
By J.M. Hamilton 9-28-13
What possesses a person to write a blog, illustrating their beliefs on economic and political issues, knowing full well that they risk upsetting at least half their readers? Even if such chicken scratch is written under a pseudonym to protect family - we now know that nothing is private, and the NSA can track down anybody, using IP addresses and the world wide web.
I've said it before and it's worth repeating, if this blog troubles you... It’s probably because the points made challenge your own beliefs? One simple solution is don't read J.M.H. Better yet, start your own blog, as a direct counterpoint to my own. If you are inclined to believe that I am merely unqualified to write on the issues of the day, one should check out what passes for news and journalism in many of today's mainstream/corporate news organizations, or turn on the six o'clock local news, replete with sanitized, often mindless news stories, and the weather. Yes, and there is that thing called the first amendment. On the other hand, if individuals are judging me based upon my life, well.... I guess by that standard, nobody would be qualified to write or offer an opinion. I've never claimed to be saint, and I have met very few saints, if any, in my lifetime.
I've often analyzed my own intentions in writing this blog, and they have evolved over time. At there most altruistic - I write to educate, to share what I have learned, and - as is true of any polemicist - in the hopes that my words may influence others and bring about positive change. Who knows? If these editorials cause you to foam at the mouth, raise your blood pressure just a little bit, or laugh out loud, than I've achieved my objective. My novice opinions are expressed on the macro economic and political issues of the day, and are intended for a macro audience.
All of this makes me wonder about Mr. Snowden. Here is a man, at great personal risk to himself and his future, who wanted to bring about change by sharing what he knew. That he had to flee the U.S. to protect himself from persecution and prosecution, demonstrates how far this nation has come in sacrificing freedom for alleged claims of personal safety - not unlike certain claims made by totalitarian and authoritarian regimes. The ends always justify the means in an authoritarian or totalitarian state; and individual freedom - and the individual - are often sacrificed for specious claims about the greater good, the protection of the state (i.e. dictator), the safety of said regimes inhabitants, or just on a whim.
President Obama has accomplished a great deal while in office, much of it positive; and of course, there's the GOP's foregone opportunity cost, when the Bush (W) administration - and subsequent Republican presidential nominees - placed President Obama into power, not once but twice. And yet, despite high hopes, there's already a wistfulness (and in some instances rebellion) among his supporters, about this Presidency and what it might have been. Particularly, when it comes to issues like governmental transparency, and reining in some of the worst excesses of the previous administration, such as an assault on personal freedoms, all under the guise of protecting said freedoms, under the Orwellian named Patriot Act. The very notion that the U.S. is now under 24-7 surveillance, and many of our global allies and friends are upset about their own surveillance at the hands of the U.S.government (sometimes with the complicity of same/said allied government)... well, possibly, one starts to understand why Mr. Snowden may have done what he did.
The idea that Mr. Snowden could have gone to his superiors within the NSA, or a member of Congress to discuss his findings, is absurd. The country, as often as not, suffers from what Mr. Orwell called "groupthink," and clearly lockstep obedience and consent is often not only preferred but demanded, particularly in today's economy. The squeaky wheels, with the best of intentions (and even if they are correct, can save their government or organizations money, profits, or embarrassment) are turned away, told to shut up, and get back into line. Or are simply terminated.
This then, maybe the nation's Achilles heal. Have we grown so massive, bureaucratic, brittle, hierarchical/patriarchal, and passive/apathetic... that it is not foreign military power that the nation has to fear, but a single person with an idea? Ideas, after all, are dangerous things. And this concept helps explain, why our government maybe spying upon it's citizens. Ideas - as well as democracy itself - seemingly, must be contained. The only other explanation for the NSA's behavior is moral hazard. Is the NSA what happens when the profit motive and the private contractors - who run the NSA, are both introduced to unlimited/black/offline budgets, and a sub-rosa regulatory court for oversight? Anything goes? (By the way, I would like to think it's greed that drives the NSA because with proper oversight that can be reined in. Then again, if our government truly is afraid of it's citizens - that it feels compelled to spy on us 24-7 - than this is as it should be. For governments - even one's founded on such unprecedented idealism as our own - should be afraid of it's citizens, particular when said government is, allegedly, derived by the will of it's people. Mr. Jefferson told us that, and more.)
Mr. Snowden is a patriot. He will enter the pantheon of great men, not unlike MLK, Gandhi, Jefferson, and Paul Volcker. He's a rebel with a cause, and his cause is freedom from the tyranny of a government agency(ies) that has over-extended it's reach. Mr. Snowden is a radical and revolutionary (but only to the extent that telling the truth, and government transparency have become a radical idea and a revolutionary concept, respectively).
Quite simply, Mr. Snowden has pulled back the veil in the land of Oz, and has defied the power behind that veil.
And for that, liberals and libertarians, democrats and republicans, should all be grateful. General Alexander, who runs the NSA, appears to come from a line of military leaders throughout the ages, who appeared to have gone meglo, or at his very best, has a questionable regard for the constitution of the United States. In response, what Americans should insist upon is greater transparency in government and the DOD/NSA. We should also be weary of the "contrived event" that places this nation on a wartime footing, is used to justify an absurd amount of spending on the NSA and DOD, and causes Americans and the Congress from taking their eye off reforming these same bureaucracies. (By way of example, the Gulf of Tonkin and Iraq's weapons of mass destruction - and some conspiracy theorist have even suggested 9-11 itself - fall into the "contrived event" category.)
Whether Mr. Snowden ends up a martyr or a saint, or perhaps both, remains to be seen. In either case, a debt is clearly owed to this man, and he should have not have had to fled to the former Soviet Union, out of fear for his personal safety or reprisals from our government. Could there be a Nobel in this young man's future? I certainly hope so.
And speaking of saints... The patron saint of Capitalism, Mr. Warren Buffett, let loose an interesting point at Georgetown University recently, when he called the Federal Reserve the greatest hedge fund ever.
Mr. Buffett deserves tremendous credit and respect for being honest; he continues to be effusive in his praise for Chairman Bernanke, and Messrs. Geithner and Summers, for bailing the nation out of the financial crisis.
But as events have shown, it wasn't the nation that was bailed out of the ongoing Great Recession; but rather, the high flyers in banking, finance, shadow banking and private equity who were bailed out of a disaster of their own making, by the Federal Reserve and the Congress of the U.S. There's been news story after news story as of late, that the true beneficiaries of the Fed's largess (read QE and interest rate suppression) have been the plutocracy and folks like Mr. Buffett. Hence, praise from Mr. Buffett for the Fed programs that have done little for the 99% and have actually, arguably, harmed same.
Unemployment appears to be creeping down but for the wrong reason: people have given up looking for jobs. Speculation is rife in the Wall Street cartel, and some of the banks that make up the cartel are under investigation for rigging commodities markets, and financial benchmarks. J.P. Morgan has reportedly set aside another six billion plus in legal expense, so much for the epitome of risk management. Meanwhile, the 99% are having trouble finding employment, are squeezed by higher food and fuel priced - caused by speculation courtesy of the Feds largess to the connected and the powerful, and the housing market is still a mess.
Mr. Buffet once called derivatives and swaps "financial weapons of mass destruction," but his companies continue to profit tremendously from same.
Mr.
Buffet also told us that there is class warfare in our society, and the rich
have been taking it to the 99%, and winning in a very big way. Just
one more way in which the 99% are getting "scrod" - paying higher
rates of taxes to subsidize the über wealthy's shear rapacity.
We can give Mr. Buffett credit for his candor, but he's also very bright... and he knows that excessive concentrations of power and wealth in any nation, often leads to some combination of revolt, wealth confiscation, and sometimes even revolution. At Georgetown, Mr. Buffet said our system has got to find a way to narrow the gap between the rich and the poor.
An excellent thought, but how does Mr. Buffet propose to bring about such change? He's offered very little in the way of solutions. Redistribution of wealth by our tax code, via the Federal government, is a start, but isn't the private sector a better way to go? Your humble blogger believes so. Presently our government gives tremendous welfare to many businesses and companies, via the tax code and government contracts, w/out insisting upon anything in return. In order for these tax credits and contracts to be renewed, would it be too much to ask that our elected representatives and senators insist that these same businesses hire Americans and outsource less?
As for the financial weapons of mass destruction, the architect of our present and future crisis, would it not be best if these instruments were traded in open and transparent exchanges, with actual - good ol' - private sector capital backing these instruments as collateral, in lieu of the full faith and credit of the American people? How about breaking up cartels and monopolies, which would create more jobs and opportunities in management, not to mention lead to greater competition and reduced prices for the consumer?
And as for our Central Bank, cum hedge fund, Mr. Bernanke has likely painted himself and the American people into a very dark corner. The stock market, the only thing that is humming, is addicted like a junkie to Fed liquidity. And the cartel also jacks up the interest rates on the mortgage market, anytime there is mention of cutting back on the QE fix. The cartel is now so powerful, and interconnected throughout the economy, my guess is it has tremendous sway over employment, globalization, and labor - tax - regulatory arbitrage. In short, the Fed is as the mercy of the Street, instead of the other way around. The Fed and the American people may ultimately pay a dear price for the Fed's actions, because like any hedge fund holding bonds, these bonds will eventually depreciate in value - at a significant discount - when the Fed finally does stop pushing QE and interest rates inevitably rise (observe the recent outflows from PIMCO - the world's largest bond mutual fund). But the Fed doesn't mark its holdings to market, which means it will have to hold onto these assets to the bitter end in order to avoid reporting the loss. Either way, both the Feds holdings or assets, and the earnings on same, will likely suffer a serious and significant discount when interest rates rise... all at a time when the fiscal health of the nation is at low ebb, and the economy still has not recovered. There's a very good chance that the billions the Fed is paying the U.S. Treasury today on it's portfolio, will vanish tomorrow in a higher interest rate environment.... unless the nation heads back into recession and interest rates fall.
We can give Mr. Buffett credit for his candor, but he's also very bright... and he knows that excessive concentrations of power and wealth in any nation, often leads to some combination of revolt, wealth confiscation, and sometimes even revolution. At Georgetown, Mr. Buffet said our system has got to find a way to narrow the gap between the rich and the poor.
An excellent thought, but how does Mr. Buffet propose to bring about such change? He's offered very little in the way of solutions. Redistribution of wealth by our tax code, via the Federal government, is a start, but isn't the private sector a better way to go? Your humble blogger believes so. Presently our government gives tremendous welfare to many businesses and companies, via the tax code and government contracts, w/out insisting upon anything in return. In order for these tax credits and contracts to be renewed, would it be too much to ask that our elected representatives and senators insist that these same businesses hire Americans and outsource less?
As for the financial weapons of mass destruction, the architect of our present and future crisis, would it not be best if these instruments were traded in open and transparent exchanges, with actual - good ol' - private sector capital backing these instruments as collateral, in lieu of the full faith and credit of the American people? How about breaking up cartels and monopolies, which would create more jobs and opportunities in management, not to mention lead to greater competition and reduced prices for the consumer?
And as for our Central Bank, cum hedge fund, Mr. Bernanke has likely painted himself and the American people into a very dark corner. The stock market, the only thing that is humming, is addicted like a junkie to Fed liquidity. And the cartel also jacks up the interest rates on the mortgage market, anytime there is mention of cutting back on the QE fix. The cartel is now so powerful, and interconnected throughout the economy, my guess is it has tremendous sway over employment, globalization, and labor - tax - regulatory arbitrage. In short, the Fed is as the mercy of the Street, instead of the other way around. The Fed and the American people may ultimately pay a dear price for the Fed's actions, because like any hedge fund holding bonds, these bonds will eventually depreciate in value - at a significant discount - when the Fed finally does stop pushing QE and interest rates inevitably rise (observe the recent outflows from PIMCO - the world's largest bond mutual fund). But the Fed doesn't mark its holdings to market, which means it will have to hold onto these assets to the bitter end in order to avoid reporting the loss. Either way, both the Feds holdings or assets, and the earnings on same, will likely suffer a serious and significant discount when interest rates rise... all at a time when the fiscal health of the nation is at low ebb, and the economy still has not recovered. There's a very good chance that the billions the Fed is paying the U.S. Treasury today on it's portfolio, will vanish tomorrow in a higher interest rate environment.... unless the nation heads back into recession and interest rates fall.
It would appear
then, if the Fed truly is a hedge fund, to be redemption time
for the American public.
Probably the greatest crime of the Great Recession was it was papered over by Chairman Bernanke with a flood of liquidity, at the expense of the 99% and the nation's future. A flood of liquidity was unleashed that allowed banks and the titans to purchase assets at fire side sale prices. Wealth has become more concentrated, and more powerful. If the rich had felt the pain however, like the 99%, you can bet there would have been true reform in this country. The banks would have been broken up, Glass-Steagall re-implemented, and the financial weapons of mass destruction would have been heavily regulated. And I believe the banking cartel presents such a drag on the economy, and a tax on the American people, that nothing short of it's break up, and the re-institution of Glass- Steagall, will save this country and it's economy.
As it stands, very few of the wealthy or elite felt little or no pain as a result of the ongoing crisis, and their opportunity and ability to empathize with everyone else vanished.... bailed out by the Congress of the U.S. and the Federal Reserve. As a result, we are exactly in the situation that led to the last crisis: too big to fail, or prosecute, banking institutions; too much concentrated wealth and power; a crony Congress owned by the elite; and unregulated financial weapons of mass destruction.
Many Americans nearly deify executives and captains of industry, like Mr. Buffet, and they are deserving of the same respect afforded any human; but as Mr. Gross recently pointed out with the Fed juicing the game for the wealthy, banking and shadow banking, maybe we should not get carried away with idol worship. Add in crony capitalism, a Congress that is for sale, a SCOTUS that caters to the plutocracy, tax breaks for the wealthy at the expense of everyone else, and ask yourself a question: Just how hard is it to win a rigged game?
Mr. Buffet is no saint, but he's smart enough to know where this is all leading.
Probably the greatest crime of the Great Recession was it was papered over by Chairman Bernanke with a flood of liquidity, at the expense of the 99% and the nation's future. A flood of liquidity was unleashed that allowed banks and the titans to purchase assets at fire side sale prices. Wealth has become more concentrated, and more powerful. If the rich had felt the pain however, like the 99%, you can bet there would have been true reform in this country. The banks would have been broken up, Glass-Steagall re-implemented, and the financial weapons of mass destruction would have been heavily regulated. And I believe the banking cartel presents such a drag on the economy, and a tax on the American people, that nothing short of it's break up, and the re-institution of Glass- Steagall, will save this country and it's economy.
As it stands, very few of the wealthy or elite felt little or no pain as a result of the ongoing crisis, and their opportunity and ability to empathize with everyone else vanished.... bailed out by the Congress of the U.S. and the Federal Reserve. As a result, we are exactly in the situation that led to the last crisis: too big to fail, or prosecute, banking institutions; too much concentrated wealth and power; a crony Congress owned by the elite; and unregulated financial weapons of mass destruction.
Many Americans nearly deify executives and captains of industry, like Mr. Buffet, and they are deserving of the same respect afforded any human; but as Mr. Gross recently pointed out with the Fed juicing the game for the wealthy, banking and shadow banking, maybe we should not get carried away with idol worship. Add in crony capitalism, a Congress that is for sale, a SCOTUS that caters to the plutocracy, tax breaks for the wealthy at the expense of everyone else, and ask yourself a question: Just how hard is it to win a rigged game?
Mr. Buffet is no saint, but he's smart enough to know where this is all leading.
Given the
dysfunction in Congress, any solutions to the nation's very real problems
will likely come after the next crisis hits. Let's hope next time around,
the government doesn't bailout the rich at the expense of everyone else. Last I
looked, one does
not see hedge fund listed among the Fed's responsibilities within the Federal
Reserve Act.
P.S.
Really! And what's up with the new Pope? This is the first Pope in my lifetime, possibly ever, who has abandoned the patriarchal, fear, fire and brimstone message of the Old Testament (the law), in favor of the enlightenment, hope, and tolerance of the New Testament (salvation). Watch your back, Papa! They crucified Christ for a lot less. God bless, Pope Francis!
P.S.
Really! And what's up with the new Pope? This is the first Pope in my lifetime, possibly ever, who has abandoned the patriarchal, fear, fire and brimstone message of the Old Testament (the law), in favor of the enlightenment, hope, and tolerance of the New Testament (salvation). Watch your back, Papa! They crucified Christ for a lot less. God bless, Pope Francis!
Copyright
JM Hamilton Publishing 2013
No comments:
Post a Comment