In a speech this week summarizing his administration’s economic policies, President Obama grossly overstated the support these policies enjoy by claiming, “economists on the left and right agree that the last thing the government should do during a recession is cut back on spending.” There are a great many economists who were surprised to learn that, apparently, they now agree with the President.
Reading straight from the Keynesian playbook, Obama justified the creation of multi-trillion dollar deficits by asserting that the government must fill the spending void left by the contraction of consumer and business spending. As one of those mythical economists who do not agree with the President, I argue that it is precisely this type of boneheaded thinking that got us into this mess, and it’s the reason we are now headed for an inflationary depression.
We do not need, nor should we attempt, to replace lost demand. As Obama himself pointed out in the same speech, Americans have been borrowing and spending too much money. These actions created artificial demand, underpinned by the illusion of real wealth in overvalued stock and real estate markets. Given his intelligence and rhetorical training, it is hard to fathom how President Obama cannot notice the inherent contradiction in his argument.
While Obama commended millions of American families for making the hard choices to reduce spending, pay down debt and replenish savings, he later outlined the government’s intention to spend every American household deeper into debt, thereby undermining all the good that personal austerity would have otherwise produced.
Obama also made the clear-eyed observation that the foundation of our economy was unsound and that a sturdier one needed to be laid. To do this, he even asserted that we need to import less and export more. This has been one of my fundamental points. Our economy is unsound precisely because it is built on a foundation of consumer debt. Instead of spending for today, we need to invest for tomorrow. However, we cannot save more unless we spend less. Production requires capital, which only comes into existence when resources are not consumed.
However, by interfering with this process, Obama prevents the very transformation he acknowledges must take place. When the government spends what individuals save, private investment is crowded out. Society is deprived of the benefits such savings would otherwise have brought about. How can we lay a solid foundation if the government takes away all our cement?
Michael Porfirio Mason
AKA The Peoples Champ
AKA GFK, Jr.
AKA The Sly, Slick and the Wicked
AKA The Voodoo Child
The Guide to Getting More out of Life
http://www.thegmanifesto.com
The Pamplemousse will not run in the Kentucky Derby next month, although his racing career is not over.
The Pamplemousse was scratched because of a tendon problem hours before Saturday’s $750,000 Santa Anita Derby in Arcadia, Calif. He was the 9-5 morning-line favorite. Pioneerof the Nile went on to win by a length.
A pre-race examination showed a problem in The Pamplemousse’s front left tendon.
Alex Solis II, whose father, Alex, rides The Pamplemousse, said the colt would run again.
Michael Porfirio Mason
AKA The Peoples Champ
AKA GFK, Jr.
AKA The Sly, Slick and the Wicked
AKA The Voodoo Child
The Guide to Getting More out of Life
http://www.thegmanifesto.com
As the first pirate attack of a U.S. ship in 200 years comes to a climax, I’m re-posting an essay I solicited and received several weeks ago from K’naan, a Somali-Canadian singer and activist. A video of a performance by K’naan that I filmed at the All Points West music festival last summer appears below. — Michael Vazquez
Why We Don’t Condemn Our Pirates
by K’naan
Can anyone ever really be for piracy? Outside of sea bandits, and young girls fantasizing of Johnny Depp, would anyone with an honest regard for good human conduct really say that they are in support of Sea Robbery?
Well, in Somalia, the answer is: it’s complicated.
The news media these days has been covering piracy in the Somali coast with such
lop-sided journalism, that it’s lucky they’re not on a ship themselves. It’s true that the constant hijacking of vessels in the Gulf of Aden is a major threat to the vibrant trade route between Asia and Europe. It is also true that for most of the pirates operating in this vast shoreline, money is the primary objective.
But according to so many Somalis, the disruption of Europe’s darling of a trade route, is just Karma biting a perpetrator in the butt. And if you don’t believe in Karma, maybe you believe in recent history. Here is why we Somalis find ourselves slightly shy of condemning our pirates.
Somalia has been without any form of a functioning government since 1991. And although its failures, like many other toddler governments in Africa, sprung from the wells of post-colonial independence, bad governance and development loan sharks, the specific problem of piracy was put in motion in 1992.
After the overthrow of Siyad Barre, our charmless dictator of twenty-some-odd years, two major forces of the Hawiye Clan came to power. At the time, Ali Mahdi, and General Mohamed Farah Aidid, the two leaders of the Hawiye rebels, were largely considered liberators. But the unity of the two men and their respective sub-clans was very short-lived. It’s as if they were dumbstruck at the advent of ousting the dictator, or that they just forgot to discuss who will be the leader of the country once they defeated their common foe.
A disagreement of who will upgrade from militia leader to Mr. President broke up their honeymoon. It’s because of this disagreement that we’ve seen one of the most decomposing wars in Somalia’s history, leading to millions displaced and hundreds of thousands dead.
But war is expensive and militias need food for their families, and Jaad (an amphetamine-based stimulant) to stay awake for the fighting. Therefore, a good clan -based Warlord must look out for his own fighters. Aidid’s men turned to robbing aid trucks carrying food to the starving masses, and re-selling it to continue their war. But Ali Mahdi had his sights set on a larger and more unexploited resource, namely: the Indian Ocean.
K’NAAN – Somalia
Already by this time, local fishermen in the coastline of Somalia have been complaining of illegal vessels coming to Somali waters and stealing all the fish. And since there was no government to report it to, and since the severity of the violence clumsily overshadowed every other problem, the fishermen went completely unheard.
But it was around this same time that a more sinister, a more patronizing practice was being put in motion. A Swiss firm called Achair Parterns, and an Italian waste company called Achair Parterns, made a deal with Ali Mahdi, that they were to dump containers of waste material in Somali waters. These European companies were said to be paying Warlords about $3 a ton, whereas to properly dispose of waste in Europe costs about $1000 a ton.
In 2004, after a tsunami washed ashore several leaking containers, thousand of locals in the Puntland region of Somalia started to complain of severe and previously unreported ailments, such as abdominal bleeding, skin melting off and a lot of immediate cancer-like symptoms. Nick Nuttall, a spokesman for the United Nations Environmental Program, says that the containers had many different kinds of waste, including “Uranium, radioactive waste, lead, Cadmium, Mercury and chemical waste.” But this wasn’t just a passing evil from one or two groups taking advantage of our unprotected waters. The UN envoy for Somalia, Ahmedou Ould-Abdallah, says that the practice still continues to this day. It was months after those initial reports that local fishermen mobilized themselves, along with street militias, to go into the waters and deter the Westerners from having a free pass at completely destroying Somalia’s aquatic life. Now years later, the deterring has become less noble, and the ex-fishermen with their militias have begun to develop a taste for ransom at sea. This form of piracy is now a major contributor to the Somali economy, especially in the very region that private toxic waste companies first began to burry our nation’s death trap.
The toxic truth
Now Somalia has upped the world’s pirate attacks by over 21 percent in one year, and while NATO and the EU are both sending forces to the Somali coast to try and slow down the attacks, Blackwater and all kinds of private security firms are intent on cashing in. But while Europeans are well in their right to protect their trade interest in the region, our pirates were the only deterrent we had from an externally imposed environmental disaster. No one can say for sure that some of the ships they are now holding for ransom were not involved in illegal activity in our waters. The truth is, if you ask any Somali, if getting rid of the pirates only means the continuous rape of our coast by unmonitored Western Vessels, and the producing of a new cancerous generation, we would all fly our pirate flags high.
It is time that the world gave the Somali people some assurance that these Western illegal activities will end, if our pirates are to seize their operations. We do not want the EU and NATO serving as a shield for these nuclear waste-dumping hoodlums. It seems to me that this new modern crisis is truly a question of justice, but also a question of whose justice.
As is apparent these days, one man’s pirate is another man’s coast guard.
Michael Porfirio Mason
AKA The Peoples Champ
AKA GFK, Jr.
AKA The Sly, Slick and the Wicked
AKA The Voodoo Child
The Guide to Getting More out of Life
http://www.thegmanifesto.com
A rampant desire to accumulate wealth pulses through Ilakaka’s streets. There is no bank, yet it is home to businesses worth millions of dollars.
It was back in 1998 that the discovery of major sapphire deposits in the hot and rocky plains of Madagascar’s southern interior sparked an extraordinary scramble for wealth.
So abundant were sapphires that they could simply be sifted from the river bed or picked up from the hot dusty earth. Fifty per cent of the world’s sapphires are said to come from this lawless region.
Over time people have been forced to dig deeper in their searches. Mineshafts wide enough for one man to descend are dotted around like lunar craters.
Beneath the surface men dig in tiny cramped caves, labouring in subterranean heat, the hope of finding sapphires tempered by the constant threat of a collapsed shaft. Desperation and greed mean many are killed or die in the pursuit of the precious gems.
People & Power takes a look at the extraordinary story of Ilakaka and the ‘sapphire rush’ through the eyes of those effected; gem dealers, mine owners, police chiefs and miners, those who risk their lives on a daily basis in search of that one stone that they hope will transform their impoverished lives.
What is life like in Ilakaka amidst the whirlwind pursuit of profit?
But think twice about buying them for your wack girlfriend.
The Rest is Up to You…
Michael Porfirio Mason
AKA The Peoples Champ
AKA GFK, Jr.
AKA The Sly, Slick and the Wicked
AKA The Voodoo Child
The Guide to Getting More out of Life
http://www.thegmanifesto.com
This is a column about Republicans — and I’m not sure I should even be writing it.
Today’s G.O.P. is, after all, very much a minority party. It retains some limited ability to obstruct the Democrats, but has no ability to make or even significantly shape policy.
Beyond that, Republicans have become embarrassing to watch. And it doesn’t feel right to make fun of crazy people. Better, perhaps, to focus on the real policy debates, which are all among Democrats.
But here’s the thing: the G.O.P. looked as crazy 10 or 15 years ago as it does now. That didn’t stop Republicans from taking control of both Congress and the White House. And they could return to power if the Democrats stumble. So it behooves us to look closely at the state of what is, after all, one of our nation’s two great political parties.
One way to get a good sense of the current state of the G.O.P., and also to see how little has really changed, is to look at the “tea parties” that have been held in a number of places already, and will be held across the country on Wednesday. These parties — antitaxation demonstrations that are supposed to evoke the memory of the Boston Tea Party and the American Revolution — have been the subject of considerable mockery, and rightly so.
But everything that critics mock about these parties has long been standard practice within the Republican Party.
Thus, President Obama is being called a “socialist” who seeks to destroy capitalism. Why? Because he wants to raise the tax rate on the highest-income Americans back to, um, about 10 percentage points less than it was for most of the Reagan administration. Bizarre.
Michael Porfirio Mason
AKA The Peoples Champ
AKA GFK, Jr.
AKA The Sly, Slick and the Wicked
AKA The Voodoo Child
The Guide to Getting More out of Life
http://www.thegmanifesto.com
