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Clarion Action!

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Cable worried about poverty, not Netflix

Cable worried about poverty, not Netflix, by Yinka Adegoke, Reuters, Jun 14 2011

CHICAGO (Reuters) – For all the talk about competitive threats from the likes of Netflix Inc or Apple Inc, it is rising poverty among households that TV executives say is their biggest source of concern.

Executives from News Corp, Comcast Corp and Time Warner Inc, speaking at the annual Cable Show industry event, made clear the industry needed a stronger housing market and better jobs picture to win new customers and keep existing ones.

“We have to be sensitive in making sure we have a product that consumers can afford,” said Pat Esser, president of privately held Cox Communications, speaking at the industry’s biggest yearly event.

Investors and analysts, with a few exceptions, can often be heard worrying more about how the cable industry will cope with cheaper entertainment packages from rivals such as Netflix, Amazon.com Inc or Google Inc.

Time Warner Cable Chief Executive Glenn Britt, however, was one of the executives focusing on the hazards of a bad economy.

“There clearly is a growing underclass of people who clearly can’t afford it,” he said. “It would serve us well to worry about that group.”

Even with the economy on shaky footing, Viacom CEO Phillipe Dauman and Time Warner CEO Jeff Bewkes remained particularly bullish about cable’s prospects.

Dauman said it was “remarkable” that cable was one of the last things that customers cut off during the recession and was a testament to the value that cable offered.

Bernstein Research analyst Craig Moffett, one of the analysts who has written extensively about the poverty issue, said the cable business was a “rigged game” that allowed programing fee hikes to be passed on by operators to consumers with impunity.

“That has been a wonderfully attractive model for a generation, but the danger, of course, is that eventually the video product will be priced into irrelevance for lower income consumers,” said Moffett. “I don’t know when it will happen, but I suspect we’re already perilously close.”
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SOLUTIONS To Local, State, Federal, and Global Deficits and Unrest

1. CORPORATE TAXATION AND REGULATION!

2. WEALTHY TAXATION (Tax The Rich)!

3. WORKERS RIGHTS & PROTECTION!

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Want To Pay Higher Prices with Lower Quality? Privatize!

Toll Road Privatization: As Ohio Considers It, Indiana Serves As A Cautionary Tale

By Dave Jamieson
HUFFINGTON POST

what can’t be denied is that the road is getting more expensive to travel on. And no one knows how expensive it might get … Over the course of the coming decades, Hoosiers can expect to learn a hard lesson in compound interest, long after Gov. Daniels is gone.

WASHINGTON — In two weeks, the cost of traveling the 157-mile length of the Indiana Toll Road will rise more than 2 percent, from $8.80 to an even $9, for those who pay the toll in cash. The fare will jump a full buck for truckers hauling semi-trailers, from $35.20 to $36.20.

The July 1 toll hike may not seem so painful, until you consider that those tolls were about half of their soon-to-be rates only five years ago — and that they hadn’t risen for two decades prior to that. Even harder to swallow for some drivers, truckers in particular, is the fact that their growing contributions go not to the State of Indiana but to overseas investors who’ve leased the toll road from the state.

“Saying we’re less than thrilled would put it really mildly,” says Todd Spencer, executive vice president at the Owner-Operator Independent Drivers Association, a trade group that represents truckers. “In Indiana, over the span of a few years, we’ve watched truck tolls more than double.”
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SOLUTIONS: Moody’s, S&P Could Be Charged With Fraud For Role In Crisis

REUTERS

U.S. regulators could file civil fraud charges against some credit-rating agencies for their role in developing mortgage-bond deals that helped bring about the financial crisis, the Wall Street Journal reported, citing people familiar with the matter.

The Journal said the Securities and Exchange Commission was reviewing the conduct of companies including McGraw Hill’s Standard and Poor’s and Moody’s Investors Service owned by Moody’s Corp on at least two mortgage-bond deals.

The paper said a Standard & Poor’s spokeswoman declined to comment, and it quoted Michael Adler, a spokesman for Moody’s, as saying: “Although Moody’s is uncertain as to what The Wall Street Journal is referring, we would certainly cooperate with any requests we receive from the SEC.”

Reuters could not reach Standard and Poor’s, the SEC or Moody’s for comment.

The SEC is considering whether the credit-ratings firms failed to do enough research to be able to rate adequately the pools of subprime mortgages and other loans that underpinned the mortgage-bond deals, the paper said.

In May, the SEC sought public comment on proposals that the credit-rating agencies needed to reveal more about how they judge financial products and how those ratings perform over time.

(Reporting by Vaishnavi Bala in Bangalore; Editing by Hans-Juergen Peters)

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Global Commodity Prices Only Getting Higher This Decade: Report

REUTERS

PARIS (Gus Trompiz) – World commodity prices will keep up their relentless push higher this decade compared to previous years, supported by burgeoning demand for food and fuel as well as knock-on effects from energy costs, the FAO and OECD said.

Prices of major farm commodities, however, should ease from highs seen in the past year as the recent spike spurs increased output, a report said ahead of a key summit next week where G20 agriculture ministers will grapple with volatile food prices.

“Commodity prices should fall from the highs of early 2011, but in real terms are projected to average up to 20 percent higher for cereals (maize) and up to 30 percent for meats (poultry) over the 2011-20 period compared to the last decade,” the report said.

World food prices hit a record high earlier this year, triggered mainly by bad weather, reviving memories of soaring prices in 2007-2008 that sparked riots in countries such as Egypt, Haiti and Cameroon.
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Greece: A Look At America’s Future

Posted in AUSTERITY, CAPITALISM, DEMOCRACY, ECONOMY, EMPIRE, EMPLOYMENT, EVIL CORPORATIONS, FASCISM, GREED, NATIONWIDE GENERAL STRIKE, POLICY, PROTESTS, RESOURCES | Leave a comment

SOLUTIONS: Progressives Demand Action From Senate Democrats

Will Democrats propose a major jobs investment bill, fight for it, rally the public around it, bring it to a vote, and dare Republicans to vote against it? Or will they pre-emptively capitulate before the fight even begins?

Chuck Shumer Targeted by Progressives Over Jobs, Taxes
By Michael McAuliff
HUFFINGTON POST

WASHINGTON — Progressives are targeting the Senate Democrats’ top message and policy maestro, New York Sen. Chuck Schumer, telling him not to “cave” on key investment priorities in spending negotiations with Republicans.

The group Progressive Change Campaign Committee is delivering that message through its New York members after a Washington Post op-ed said Schumer and his colleagues have concluded the only jobs bill Republicans will let pass would be based on tax cuts — not infrastructure spending, investments in education and other areas aimed at spurring longterm job-growth.

So the group is asking members to call Schumer and tell him to fight, rather than settle for whatever Republicans say they will accept at the outset.

“Democrats shouldn’t be seeking the lowest common denominator with extremist Republicans — that’s not leadership,” says an email sent to New Yorkers from PCCC’s Jason Rosenbaum. “They should fight for the real investments in jobs that America needs.”

Schumer spokesman Brian Fallon countered that his boss is indeed determined to win the items PCCC is talking about.

“The group is mistaken if they think Sen. Schumer isn’t fighting for measures like infrastructure, as well as tax cuts, when it comes to job creation,” Fallon said. “He agrees both approaches are necessary, and has advocated them both privately and publicly.”

Still, having watched Senate Democrats give in on liberal priorities over the last two years, PCCC thinks Schumer needs to be pushed to try harder.

“This isn’t about Chuck Schumer’s preferences — it’s about his strategy and willingness to fight,” said group co-founder Adam Green. “Will Democrats propose a major jobs investment bill, fight for it, rally the public around it, bring it to a vote, and dare Republicans to vote against it? Or will they pre-emptively capitulate before the fight even begins?”

Some Senate Democrats recently felt similarly about their budget committee chairman, North Dakota Sen. Kent Conrad, and recently forced him to shelve a plan that they felt was too far to the right.

Schumer was not publicly critical of Conrad, but he was believed to be more in line with the more liberal-wing of the party. He has also argued for many of the items PCCC supports in the past.

But the group is hoping for a stronger stance now.

“Chuck Schumer is known as a smart guy. But in this case, being smart means recognizing that when the public is on your side, you don’t pre-emptively cave,” Rosenbaum wrote, referring to polling that his group has done showing Americans favor investing in infrastructure and jobs. “You certainly don’t give Republicans a veto.”

“You lay out a big vision, mobilize the public around it, and dare Republicans to oppose it,” he argued. “After all, the big lesson of Paul Ryan’s budget is that if Democrats fight and mobilize the public, Republicans will backtrack and cave.”

Democrats, including Schumer, have been hammering the GOP — and getting some Republicans to retreat — on Ryan’s plan to turn Medicare into a private, subsidized system that will cost seniors more.

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The Truth About The Economy

Robert Reich:

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