Climate Debt Report from the Word Development Movement

Climate loan sharks: how the UK is making developing countries pay twice for climate change

In Climate loan sharks, the World Development Movement and the Jubilee Debt Campaign reveal that the UK is pushing $1.1 billion of climate loans, via the World Bank, on some of the poorest countries in the world.

For example Grenada’s debt is already 90 per cent of GDP, yet it is to be lent a further $22 million, over 3 per cent of the country’s GDP. Lending to such debt burdened country is at best irresponsible and at worst willfully dangerous.

The UK, and other rich industrialised countries in the global north, owe a debt to countries in the global south as compensation for the devastating effects of climate change they have the primary responsibility for creating. A key part of this compensation is providing finance to poorer countries to help reduce the negative impacts of climate change on their lives and livelihoods.

The report finds:

  • The UK is providing most of its climate finance for adaptation in the form of capital that can only be dispersed as loans through the World Bank’s Pilot Program for Climate Resilience (PPCR). Of the capital that will be given out as loans via the PPCR, 97 per cent comes from the UK.
  • Of the 11 country proposals developed so far under the PPCR, at least $1.1 billion (£704 million) of finance will be in the form of loans, making up over half of the total finance provided to ‘help’ poor countries adapt to climate change.
  • $419 million (£263 million) of the money for loans proposed through the PPCR proposals come from the UK government.
  • The idea of climate loans was created by the UK Labour government as an accountancy trick to make its balance sheet look better, a policy continued by the current coalition government.

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Tell President Obama: Now is the time to stand with the tens of millions of Americans who are struggling to survive economically, not with the millionaires and billionaires who have never had it so good

Bernie Sanders spoke about the inequity and the criticality of the current moment on the floor of the Senate. The following letter to President Obama is posted on his website. Add your signature to Senator Sanders letter

Dear Mr. President,

This is a pivotal moment in the history of our country. Decisions are being made about the national budget that will impact the lives of virtually every American for decades to come. As we address the issue of deficit reduction we must not ignore the painful economic reality of today – which is that the wealthiest people in our country and the largest corporations are doing phenomenally well while the middle class is collapsing and poverty is increasing.  In fact, the United States today has, by far, the most unequal distribution of wealth and income of any major country on earth.

Everyone understands that over the long-term we have got to reduce the deficit – a deficit that was caused mainly by Wall Street greed, tax breaks for the rich, two wars, and a prescription drug program written by the drug and insurance companies. It is absolutely imperative, however, that as we go forward with deficit reduction we completely reject the Republican approach that demands savage cuts in desperately-needed programs for working families, the elderly, the sick, our children and the poor, while not asking the wealthiest among us to contribute one penny.

Mr. President, please listen to the overwhelming majority of the American people who believe that deficit reduction must be about shared sacrifice. The wealthiest Americans and the most profitable corporations in this country must pay their fair share.  At least 50 percent of any deficit reduction package must come from revenue raised by ending tax breaks for the wealthy and eliminating tax loopholes that benefit large, profitable corporations and Wall Street financial institutions.  A sensible deficit reduction package must also include significant cuts to unnecessary and wasteful Pentagon spending.

Please do not yield to outrageous Republican demands that would greatly increase suffering for the weakest and most vulnerable members of our society.  Now is the time to stand with the tens of millions of Americans who are struggling to survive economically, not with the millionaires and billionaires who have never had it so good.

Respectfully,


Sen. Bernie Sanders;
and Co-signers

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Banking Blockade BABY!

WikiLeaks releases advertisement coinciding with the six month unlawful banking blockage against it

Censorship, like everything else in the West, has been privatized.

For six months now, five major US financial institutions, VISA, MasterCard, PayPal, Western Union and the Bank of America have tried to economically strangle WikiLeaks as a result of political pressure from Washington. The attack has blocked over 90% of the non-profit organization’s donations, costing some $15M in lost revenue. The attack is entirely outside of any due process or rule of law. In fact, in the only formal review to occur, the US Secretary of the Treasury, Timothy C. Geithner found, on January 12, that there were no lawful grounds to add WikiLeaks to a financial blockade. more

 

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Stocks Of Socialized Countries Have Outperformed U.S. Since Reagan Era

Countries with typically high levels of government involvement in the economy, such as Sweden, Denmark and Canada, do not appear to have experienced stifled economic growth relative to countries where government involvement is more limited, like the US … many socialized governments provide critical support for business growth, including first class infrastructure built by the public sector, retraining of workers and public education systems that result in better-prepared workforces, comparative to the US.

By Alex Wagner
HUFFINGTON POST

American traders aren’t likely to take kindly to the suggestion that big government might be good for the stock market. But data from a paper on the job- and income-growth of top earners shows that stock prices in some socialized countries, relative to themselves and adjusted for inflation, have done considerably better than those in the U.S over the last two and a half decades.

Specifically, during the twenty five years after Ronald Reagan took office — a pro-market honeymoon that Ryan Chittum of the Columbia Journalism Review this week termed “the ascent of laissez-faire economic policies” — French stock prices have performed significantly better than Americans ones, according to the report by Jon Bakija, Adam Cole, and Bradley Heim.

A further examination of the 39-year period extending from the end of the Nixon administration until 2008 shows the Swedish economy, known for its high taxes and heavy regulation, growing at a significantly higher rate than the US.

The authors conclude that big government might not actually stand in contradiction to a productive economy: “Countries with typically high levels of government involvement in the economy, such as Sweden, Denmark and Canada, do not appear to have experienced stifled economic growth relative to countries where government involvement is more limited, like the US,” the report says.

With bastions of socialism — Sweden Canada and France — outpacing American market prices, does this mean it’s time for Wall Streeters to start calling croissants “Freedom bagels?” Probably not.

According to Jacob Funk Kirkegaard, a research fellow specializing in European economies at the Peterson Institute for International Economics, the disparity between the American and European markets might have more to do with the period in question than governmental forces.

“In 1981, [Francois] Mitterand was elected president of France, and the first thing he did was to nationalize a bunch of French businesses and most of the banking system,” Kirkegaard explained. “But going forward, France has moved quite dramatically towards a market-oriented economy, though not anywhere near the scope of market and economic freedom as perceived in the U.S.”

If Swedish and French markets have shown considerable strength compared to American ones, Kirkegaard posited that “these countries benefited from a more rapid shift to a market economy than in the U.S. over this period. The starting point was much more hostile. That’s what you see in the growth.”

That said, Kirkegaard also dismissed the traditional American capitalist contention that socialism is bad for market growth: “A lot of the finger-pointing we do at these countries is totally misleading. It’s a myth.”

Kirkegaard says that many socialized governments provide critical support for business growth, including first class infrastructure built by the public sector, retraining of workers and public education systems that result in better-prepared workforces, comparative to the US. “There are a lot of areas where the role of government is a benefit for the businesses in these countries.”

“The idea that they are socialists and condemned to living in these bread bin-style housing complexes is illusional,” he said. “It’s ideological slander.”

 


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SOLUTIONS: Labor Regulators To Propose New Rules Quickening Union Elections

By Dave Jamieson
HUFFINGTON POST

WASHINGTON — In a move that will surely provoke Republicans and business interests, the National Labor Relations Board announced Tuesday morning that it will propose significant new rules for the union election process, streamlining procedures and possibly making it easier for American workers to unionize.

The rules proposed by the NLRB will undergo a public-comment period, but if adopted, the amendments will define the amount of time parties can litigate before and after an election, allow for the electronic filing of election documents, defer litigation on voter eligibility until after an election and consolidate all post-election appeals into a single appeal.

Overall, the new rules could make it harder for employers to stall elections and easier for unions to organize new members. Right now, elections typically take place within two months of organizers having gathered a sufficient number of signatures from workers — a generous amount of time, organizers argue, that employers can use to pressure workers not to unionize. The NLRB’s new rules would certainly shorten that period, though it’s hard to say by how much.

“One of the most important duties of the NLRB is conducting secret-ballot elections to determine whether employees want to be represented by a labor union,” said NLRB Chairman Wilma B. Liebman in a statement. “Resolving representation questions quickly, fairly, and accurately has been an overriding goal of American labor law for more than 75 years.”

Union officials were quick to praise the NLRB and its proposed rules. Richard Trumka, the president of the AFL-CIO, the largest union federation in the country, said in a statement that the changes would help fix a “broken, bureaucratic maze” that allows employers to stall the election process.

“Although we are still reviewing the proposed new changes,” Trumka said, “they appear to represent a common sense approach to clean up an outdated system and help ensure that working women and men can make their own choice about whether to form a union.”

The rule changes will likely infuriate business groups and Republicans who view the labor board under Obama as being overly friendly to unions and workers. The labor board currently has a Democratic majority, and its general counsel, Lafe Solomon, has been far more aggressive in enforcing labor law than Republicans were accustomed to in the Bush years.

Republicans and business interests have reacted strongly to a complaint Solomon brought against the Boeing Company, which alleged that it broke labor law by establishing a production line for its 787 Dreamliner in South Carolina. The complaint said Boeing’s move amounted to retaliation against its workers in Washington state for having gone on strike in the past. Just last week House oversight chairman Rep. Darrell Issa (R-Cal.) called a special field hearing in South Carolina and asked Solomon to appear and justify his complaint.

Republican lawmakers can be expected to heighten their attacks on the NLRB in the wake of the proposed rule changes. Sen. Lindsey Graham (R-S.C.) has already claimed that the board has “an agenda that is not healthy for this country.”

The U.S. Chamber of Commerce could not immediately provide comment on the NLRB’s proposed rule changes.

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SOLUTIONS: Paul Allen, Ex-Mortgage CEO, Sentenced To Prison For $3B Fraud

By Matthew Barakat
HUFFINGTON POST

ALEXANDRIA, Va. — The CEO of what had been one of the nation’s largest privately held mortgage lenders was sentenced Tuesday to more than three years in prison for his role in a $3 billion scheme that officials called one of the biggest corporate frauds in U.S. history.

The 40-month sentence for Paul R. Allen, 55, of Oakton, Va., is slightly less than the six-year term sought by federal prosecutors.

“I messed up. I messed up big,” Allen told U.S. District Judge Leonie Brinkema before he was sentenced, apologizing to his family and “the entire financial community. “There was no excuse for my behavior.”

Allen was chief executive at Ocala, Fla.-based Taylor Bean & Whitaker, which collapsed in 2009 after the criminal investigation became public, resulting in its 2,000 employees losing their jobs. The fraud also contributed to the collapse of Alabama-based Colonial Bank – the sixth largest bank failure in U.S. history – after Colonial bought hundreds of millions of dollars in Taylor Bean mortgages that had already been sold to other investors.

Two other banks – Deutsche Bank and BNP Paribas – lost nearly $2 billion after buying corporate paper from Taylor Bean that was not properly backed with collateral, authorities said.

Taylor Bean and Colonial also tried to obtain more than $500 million from the government’s Troubled Asset Relief Program but ultimately never received any funding from the program also known as TARP.
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GORE BLASTS OBAMA ON CLIMATE CHANGE

Bowing to political resistance from Republicans and some in his own party, Obama abandoned an effort and a campaign pledge to enact legislation that would put the first-ever limit on greenhouse gases.

By Dina Capiello
HUFFINGTON POST

WASHINGTON — Former Vice President Al Gore is going where few environmentalists – and fellow Democrats – have gone before: criticizing President Barack Obama’s record on global warming.

In a 7,000-word essay for Rolling Stone magazine that will be published Friday, Gore says Obama has failed to stand up for “bold action” on global warming and has made little progress on the problem since the days of Republican President George W. Bush. Bush infuriated environmentalists for resisting mandatory controls on the pollution blamed for climate change, despite overwhelming scientific evidence that the burning of fossil fuels is responsible.

While Gore credits Obama’s political appointees with making hundreds of changes that have helped move the country “forward slightly” on the climate issue, and acknowledges Obama has been dealing with many other problems, he says the president “has simply not made the case for action.”

“President Obama has never presented to the American people the magnitude of the climate crisis,” Gore says. “He has not defended the science against the ongoing withering and dishonest attacks. Nor has he provided a presidential venue for the scientific community … to bring the reality of the science before the public.”
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The End of Capitalism and the Wellsprings of Radical Hope

By Eugene McCarraher
The Nation

Why should we want to reinvent capitalism? Rather than reinvent it, we should remind ourselves why capitalism is so pernicious. We could start by stating the obvious (which, apparently, needs restating): the nature and logic of capitalism are incorrigibly avaricious. As a property system driven by the need to maximize profit and production, capitalism is a giant, ever-whirling vortex of accumulation. Anything but conservative, it’s the most dynamic and protean economy in history. As Marx observed in the opening pages of The Communist Manifesto, capitalism thrives on constant reinvention: “The bourgeoisie cannot exist without constantly revolutionizing the instruments of production, and thereby the relations of production, and with them the whole relations of society.” Always seeking new ways to make money, capitalists have reinvented the system several times already. Enclosures, factories, Fordism, automation and “flexible production”—metamorphosis for the sake of profit is the only constant in capitalism. Each incarnation has featured new brands of exploitation and corruption, designed and packaged by masters of economic and managerial sophistry.

To be sure, reformers have been partially successful at shaping these reinventions: collective bargaining, regulations of business, the welfare state. Whatever victories for justice working people have won have been hard-fought and tenuous, the fruit of protracted struggle. But however ingenious or effective the reforms, they’ve been limited, if not eventually subverted, by the intractably mercenary nature of capitalism. As we can see from the history of the past forty years—an era that has been marked by a transatlantic assault on social democracy and New Deal/Great Society liberalism—the rage to accumulate remains the predatory heart and soul of capitalism. We have good reason to assume that capitalists will always seek and find fresh ways to cast off the fetters and vanquish their opponents.

But the iniquity of capitalism goes deeper than its injustice as a political economy, its amoral ingenuity in technical prowess or its rapacious relationship to the natural world. However lissome its face or benign its manner, capitalism compels us to be greedy, callous and petty. It takes what the Greeks called pleonexia—an endless hunger for more and more—and transforms it from a tawdry and dangerous vice into the central virtue of the system. The sanctity of “growth” in capitalist culture stems from this moral alchemy, as does the elevation of market competition into a model of human affairs.

Conscripting us into an economic war, capitalism turns us into soldiers of fortune, steeled against casualties and collateral damage, ransacking the earth to fill the shelves and banks with plunder. Capitalism stands condemned most profoundly not by its maldistribution of wealth or its ecological despoliation but by its systematic cultivation of people inclined toward injustice and predation. And I think we on the left need to start dismissing as utterly irrelevant the standard apologetic riposte: the material prosperity and technological achievement generated by capitalist enterprise. No amount of goods can compensate for the damage wrought on human nature by the deliberate nurturance of our vilest qualities. The desecration of the values we claim to hold most dear is the primary reason we should want to abolish, not reinvent, capitalism.

This suggests that what needs reinvention is not capitalism—leave that to the well-mannered barbarians in the business schools—but our moral and spiritual imagination. I don’t mean only the wisdom that lies in the venerable traditions of the left. Even those who have opposed capitalism have often fallen for its illusions: the ideal of “growth,” the mythology of “progress,” the cipher of “innovation.”

Any effort to end the tyranny of Mammon must be leavened by other concerns. What does it mean to be human? What do we really want? These are moral, even religious questions—the kind of questions we often dismiss as politically unserious, or relegate to the hallowed oblivion of “private life.” But they’re also political questions, for the answers determine the ends as well as the means of production. The ancient moral and metaphysical concerns may turn out to be not redoubts for reaction but wellsprings of radical hope.

Read the first proposal in the “Reimagining Capitalism” series, “The Rise of Benefit Corporations,” by Jamie Raskin.

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Man Robs Bank For Jail Health Care

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State Of The Ocean: ‘Shocking’ Report Warns Of Mass Extinction From Current Rate Of Marine Distress

By Travis Donovan
HUFFINGTON POST

If the current actions contributing to a multifaceted degradation of the world’s oceans aren’t curbed, a mass extinction unlike anything human history has ever seen is coming, an expert panel of scientists warns in an alarming new report.

The preliminary report from the International Programme on the State of the Ocean (IPSO) is the result of the first-ever interdisciplinary international workshop examining the combined impact of all of the stressors currently affecting the oceans, including pollution, warming, acidification, overfishing and hypoxia.

“The findings are shocking,” Dr. Alex Rogers, IPSO’s scientific director, said in a statement released by the group. “This is a very serious situation demanding unequivocal action at every level. We are looking at consequences for humankind that will impact in our lifetime, and worse, our children’s and generations beyond that.”

The scientific panel concluded that degeneration in the oceans is happening much faster than has been predicted, and that the combination of factors currently distressing the marine environment is contributing to the precise conditions that have been associated with all major extinctions in the Earth’s history.

According to the report, three major factors have been present in the handful of mass extinctions that have occurred in the past: an increase of both hypoxia (low oxygen) and anoxia (lack of oxygen that creates “dead zones”) in the oceans, warming and acidification. The panel warns that the combination of these factors will inevitably cause a mass marine extinction if swift action isn’t taken to improve conditions.

The report is the latest of several published in recent months examining the dire conditions of the oceans. A recent World Resources Institute report suggests that all coral reefs could be gone by 2050 if no action is taken to protect them, while a study published earlier this year in BioScience declares oysters as “functionally extinct”, their populations decimated by over-harvesting and disease. Just last week scientists forecasted that this year’s Gulf “dead zone” will be the largest in history due to increased runoff from the Mississippi River dragging in high levels of nitrates and phosphates from fertilizers.

A recent study in the journal Nature, meanwhile, suggests that not only will the next mass extinction be man-made, but that it could already be underway. Unless humans make significant changes to their behavior, that is.

The IPSO report calls for such changes, recommending actions in key areas: immediate reduction of CO2 emissions, coordinated efforts to restore marine ecosystems, and universal implementation of the precautionary principle so “activities proceed only if they are shown not to harm the ocean singly or in combination with other activities.” The panel also calls for the UN to swiftly introduce an “effective governance of the High Seas.”

“The challenges for the future of the ocean are vast, but unlike previous generations we know what now needs to happen,” Dan Laffoley of the International Union for Conservation of Nature and Natural Resources (IUCN) and co-author of the report said in a press release for the new report. “The time to protect the blue heart of our planet is now, today and urgent.”

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