Rand Paul has the ability to force the Senate to raise sixty votes for every bill introduced that increases Washington’s spending for the next six years. He has, in other words, the power to create a massive ongoing political crisis for the bloated, wasteful perversity that passes for government in Washington D.C.
We think he will fold — we think he will pull an Obama and sell out the Tea Partiers who brought him to this quite spectacular position.
We would love it if he proved us wrong.
He has already signaled his willingness to cripple the earmark process in the Senate. And, now John “Maverick in Name Only” McCain is drawing a bead on Paul’s stated willingness to force massive cuts in the defense budget.
From the Huffington Post:
Sen. John McCain (R-Ariz.), the ranking member of the Senate Armed Services Committee, expressed concern Monday that some new Republican legislators would be defined by their “protectionism and isolationism,” two views that the Vietnam War veteran feared would result in a butting of heads within the party on Afghanistan and defense spending.
“I think there are going to be some tensions within our party,” McCain said during a conference put on by Foreign Policy Initiative, a DC-based think tank. “I worry a lot about the rise of protectionism and isolationism in the Republican Party.”
A prime example, McCain continued, was Rand Paul, Kentucky’s next U.S. Senator.
“I admire his victory, but … already he has talked about withdrawals [and] cuts in defense,” McCain said.
Indeed, Paul appears to have taken after the more libertarian side of foreign policy issues, much like his father, Texas Rep. Ron Paul (R).
Never, in our memory, has someone so apparently clueless, seemed so likely to deliver on the precisely those things that have to be done to kill this economy for good, and bring the empire to its knees.
If he is even vaguely successful in challenging the status quo, we expect McCain will take the entire millionaires’ club hostage, automatic rifle in hand, in a frightening outburst of PTSD-driven, alcohol-charged, delusional rage.
We wish Rand Paul all the luck (and backbone) in the world.
Saying that it was vital to stop “WikiLeaks from hiding like a coward behind a computer mainframe,” Senator John Ensign (R – NV) announced today that he intends to push forward with legislation that aims to formally criminalize WikiLeaks as well as severely curtailing the ability to release classified documents.
When Tom Walker first raised the topic of Overton’s Window, it did not seem to us to hold much value beyond the obvious conclusion that a democratic society, when it is at equilibrium, allowed for only the most modest changes at the margins.
We thought: Hey Tom, tell us something we don’t know.
After years of living with two wars, after the catastrophe that was the 2008 financial crisis, and after witnessing the fiery critique of American foreign policy that resulted in nearly 3000 deaths on September 11, 2001, and the watery critique of its domestic policy with Katrina, if society could pass through this and emerge with political relations pretty much undisturbed, we thought even marginal change itself seems like an overly optimistic goal.
Our opinion was simple: Society would change when it was impossible for its members to muddle along from one catastrophe to another. In the case of shorter working time, that means when you will reduce hours of work when, no matter whether you have a job or not, you still face starvation.
When hunger and want stalk you, no matter how many hours you sell yourself into slavery, the idea of selling yourself into slavery will die on its own
Okay – a little over the top, we admit. Not wrong, we believe, insofar as it goes, but it certainly doesn’t offer much hope that things will change short of really desperate times. (And, frankly, you can’t be trusted to do the right thing in relatively good times, how likely is it you will instinctively do the right thing in really desperate times?)
So we got to thinking, and trying to imagine something other than the worst case scenario. (Really difficult, mind you, this imagining something other than the worst case scenario. The last time we got our hopes up for real change was when the Soviet Bloc disintegrated, and a tiny handful of people began talking of a peace dividend. But, then HW’s sweetheart got bitch-slapped by Saddam Hussein, and suddenly it was the Munich in the Summer of 1938 all over again. Our children will never know how close this proud nation came to speaking Arabic with Iraqi accents! Just thinking about it gives us chills!)
Short of really desperate times how might the reduction of working time be realized?
After years of subpar performance, the leadership of the SU finally admitted they had among themselves no new ideas how to reverse the decline in the living standards of the country. Much like the US today, massive amounts of work time were being squandered on a useless buildup of military might, environmental degradation, social alienation, and war. A new leader, Gorbachev, ascended to power and found the support among the sclerotic elite to make one last push to break the spiral of decay – in a campaign they called Glasnost (openness and freedom) and Perestroika (economic restructuring). The idea was to take a hidebound, autocratic, ideologically rigid statist political system and open it up to new ideas that would, in some undefined fashion, make it possible for the Soviet Union to overcome the catastrophic course on which it clearly traveled.
It was, in other words, an announcement of the impending systemic collapse of the society by the Soviet bureaucracy in the only way a bureaucracy can admit its complete and utter failure: They put up a suggestion box.
Much like Overton’s Window the question of the moment in the Soviet Union was how to expand the range of possible change to which the system would be subject.
That it failed is not the point of this brief recollection; rather, the point is this item taken from the Wiki:
Arriving in Berlin on June 12, 1987, President and Mrs. Reagan were taken to the Reichstag, where they viewed the wall from a balcony. Reagan then made his speech at the Brandenburg Gate at 2 PM, in front of two panes of bulletproof glass protecting him from potential snipers in East Berlin. About 45,000 people were in attendance; among the spectators were West German president Richard von Weizsäcker, Chancellor Helmut Kohl, and West Berlin mayor Eberhard Diepgen. That afternoon, Reagan said,
We welcome change and openness; for we believe that freedom and security go together, that the advance of human liberty can only strengthen the cause of world peace. There is one sign the Soviets can make that would be unmistakable, that would advance dramatically the cause of freedom and peace. General Secretary Gorbachev, if you seek peace, if you seek prosperity for the Soviet Union and eastern Europe, if you seek liberalization, come here to this gate. Mr. Gorbachev, open this gate. Mr. Gorbachev, tear down this wall!
Later on in his speech, President Reagan said, “As I looked out a moment ago from the Reichstag, that embodiment of German unity, I noticed words crudely spray-painted upon the wall, perhaps by a young Berliner, ‘This wall will fall. Beliefs become reality.’ Yes, across Europe, this wall will fall. For it cannot withstand faith; it cannot withstand truth. The wall cannot withstand freedom.”
The words President Reagan saw on the Berlin Wall, were not written by a young Berliner. The words were actually spray painted on the Berlin Wall by an American. On October 10, 1986, William Ozkaptan spray painted the words “The wall will fall. Beliefs become reality. W.Oz 10/10/86”.
Another highlight of the speech was Reagan’s call to end the arms race with his reference to the Soviets’ SS-20 nuclear weapons, and possibility of “not merely of limiting the growth of arms, but of eliminating, for the first time, an entire class of nuclear weapons from the face of the Earth.”
A little background to understand this excerpt
When National Security Council Report 68 was written in 1949-1950, the authors anticipated that the Soviet Union would, on occasion, make peace proposals to limit the possibility of conflict between the two empires. In their view, such proposals were little more than ploys designed to undercut Western resolve to contain the SU and its bloc of allies.
However, whether these were ploys or legitimate attempts by the Soviet Union to deescalate the conflict is besides the point, since the reality the authors of NSC-68 faced was the possibility that such “ploys” might appeal to public opinion in Western Europe and the United States – and they wanted nothing to compromise Western willingness to contain the SU for what promised to be a very long time.
Gorbachev’s Glastnost and Perestroika was viewed in the same light by the authors of NSC-68 – who had, since, abandoned the Democratic Party in disgust, and rallied to Reagan during the Carter Presidency. A Soviet leadership committed to change on its own terms threatened an already grumbling coalition of Western governments and malcontents, and presented the threat that Washington Empire might disintegrate as well. To answer this threat, Reagan took to the podium on that day in Berlin to issue the ultimate challenge to the Soviets: Tear down this wall!
The Soviets called his bluff, and the American Dollar Empire went looking for a new evil to justify its bloated existence.
The rest of the story is a collection broken bodies, burnt beyond recognition, in buildings, wedding parties, and beds.
What lesson is there in this?
Gorbachev set out to widen the window of possible change in the Soviet Union. Reacting to this event, and intent on maintaining its coalition, the United States responded to this charm offensive by demanding that the Soviet Union do more than widen a window in the wall: The wall itself must be brought down.
The Soviet Union had to abolish itself.
Having abolished itself, it imediately called into question its opposite – the American Empire – the leaders of which have been working mightily to justify its continued existence based on the proposition that 48 percent of global war spending must be devoted to the extermination of one guy in a cave on the Afghan-Pakistan border.
Don’t widen the Overton Window, tear down the Wall.
As Barkely Rosser at Econospeak has pointed out, all of the most pressing problems today, which have produced fairly broad, if mostly unconnected, movements for change are rooted in the need to reduce hours of work. (Rosser made this point only to disparage the work of Tom Walker, but it is true.)
To give a few examples:
- The wars in Afghanistan and Iraq could not be waged were it not for the excess hours of work put in by us that take the form of armaments production.
- The waste that results in environmental degradation occurs first as the waste of the human labor which produced it.
- The problem of containing health-care costs and delivering medical care to those who need it is generated not by too little working time in that sector, but too much.
- The inequality endemic in all major industrial nations, which has led to bubble after bubble, and financial collapse, is created by hours of work set at unsustainable levels, which makes for massive profits seeking any outlet for reinvestment – even as unconscionable levels of human want is left intact.
- Free trade, protectionism, immigration reform are all clearly connected to the problem of global excess capacity and an large global pool of unemployed labor that owes its existence to the overwork of those who are employed.
- The overhang of debt, both public and private, rests on a large pool of superfluous profits that exist to be loaned out to governments and individuals – it is these superfluous profits which compel the growth of debt, not the other way around.
We could go on and list any of a number of social ills that have produced movements of individuals devoted to their eradication that are, at their core, only symptoms of a society which simply suffers from overly long hours of work.
(In fact, it was our intuition at the time, that the Soviet Union faced precisely this problem – albeit in a more pronounced form. Economists called it investment hunger, or some such stupid label. However, the paradox presented by this investment hunger was that adding ever more labor resources to enterprises only raised cost without significantly raising output)
We think it is time to take Ronald Reagan’s advice and tear down the walls that separate work time reduction from each of these movements, and, which separate and compartmentalize these movement each from the other – often on opposite sides of the political spectrum. Advocates of work time reduction must do the painful, difficult work of amassing evidence to support the proposition that each of these ills are no more than symptoms of overwork.
Much has been done so far to make the connection between global warming issues and long hours of work. Still more work like this is needed on a host of issues, even – dare we say it – wading into emotionally charged issues like immigration, and speaking to the leaders and members of a movement not known for political correctness.
We would like to know your thoughts on this.
Once upon a time, the union boss was hated and feared on Wall Street, now he or she is just ridiculed or ignored – or propped up in front of the TV cameras to serve as a convenient scapegoat for why you’re paying for Wall Street failures.
Little does the Party of Wall Street suspect that, indeed, they are right – union hacks like Trumka are precisely the reason why you are footing the bill for GM mismanagement, and Goldman Sachs’ venality. The unions sold you out to cash in on the virtuous cycle of ever bigger defense budgets, rising employment fueled by wars and economic predation, and an ever growing slush fund of union dues.
Now the bills have come due, and Goldman Sachs wants to blame the UAW because Ford, GM and Chrysler can’t build a decent automobile at a competitive price – a price that requires that an American standard of living be readjusted to conform to Chinese wage levels.
Watch below as Richard Trumka whines like a bitch for a return to the good old days when American union bosses marched hand in hand with corporate predators in support of the Johnson-Nixon carpet bombing of Vietnamese villages.
Richard L. Trumka’s remarks at the Spotlight on Jobs Crisis forum.
Vodpod videos no longer available.
Robert Fisk is reporting a grand scheme to establish an alternative to the US dollar by 2018.
This comes on the heels of an earlier reported opinion that the US will be trying to reduce American standards of living by 50 percent over the next 14 years.
It begs the question whether these are initial negotiating positions between the various world economic powers on the transition to a post-American order. For the US to accept this state of affairs would require it to reduce its triple deficit – trade, public, and private.
Is the US prepared to peacefully give up its hegemony? To release its coveted access to global resources, which allow it to spend nearly the equal sum as the entire planet on defense? its aggressive military posture?
To ask these questions is to answer them.
For those who still don’t get it: The brick and mortar of economic recovery and job creation is being fashioned out of the material of your life.
Isaiah 2:4: And he shall judge among the nations, and shall rebuke many people: and they shall beat their swords into plowshares, and their spears into pruninghooks: nation shall not lift up sword against nation, neither shall they learn war any more.
From Contrarian Musings:
Raising GDP is not a hard thing to accomplish because GDP is really just a measure of spending. What really matters is the quality of the spending. If we are spending on productive investments that produce a long term return that is one thing, but if we are spending on consumer goods that produce nothing and depreciate over time, we are not creating wealth. If we are “investing” in housing, we are not creating wealth. If we increase government spending on defense (which rose 13% in the quarter), we are not creating wealth. If we increase government spending on welfare payments that are used for current consumption, we are not creating wealth. Wealth is created by saving and investment. Much has been made of the rise in the personal savings rate, but at this point government dissaving is offsetting all the good being done at the individual level.
Karl Denninger has this to say:
Real federal government consumption expenditures and gross investment increased 10.9 percent in the second quarter, in contrast to a decrease of 4.3 percent in the first. National defense increased 13.3 percent, in contrast to a decrease of 5.1 percent. Nondefense increased 6.0 percent, in contrast to a decrease of 2.5 percent. Real state and local government consumption expenditures and gross investment increased 2.4 percent, in contrast to a decrease of 1.5 percent.
So much for Obama destroying military spending eh? Uh, not so fast eh? 13% increase? Not bad. The Federal Government is attempting to pick up the pieces from the private sector, but without success. State and local governments are trying to pick up the pieces but all they’re doing is going bankrupt; do not expect to see this contribution repeated in the 3rd and 4th quarters, as they’re out of money!
The Daily Capitalist writes:
It is true that government spending grew at a 5.6% annual rate for the quarter, moderating the contraction in gross domestic product. But most of that increase came from the defense sector, not the nondefense sectors targeted by the American Recovery and Reinvestment Act. Defense spending grew at a 13.3% annual rate, in part a rebound from a 4.3 first quarter contraction. Nondefense spending grew at a 6% annual rate, contributing 0.15 percentage points to overall growth. The economy can use all of the help it can get, but it’s too soon to declare that federal spending is effectively making its way into the system.
Yes, we wanted to tell our brother he is not a chicken, but we needed the eggs…
What you might not know, and most blogs and reports we found did not mention: This second quarter 2009 GDP spending party came on the heels of the Moron’s third quarter 2008 defense spending surge of 18 percent:
Economic Growth in the Defense Sector: While the U.S. economy slowed in the third calendar quarter, defense spending leaped, far outstripping other government agencies. It is tempting to draw the conclusion that defense spending is somehow not aligned with the rest of the economy. Here is why that conclusion is incorrect. According to the Commerce Department’s Bureau of Economic Analysis (BEA), which tracks U.S. economic activity, defense spending rose 18.0 percent from the second calendar quarter to the third, on a seasonally adjusted, annualized basis in constant dollars.1 The third quarter of 2007 saw a similar increase, when the annualized rise in defense spending exceeded that of federal spending, which in turn also outpaced overall U.S. economic growth.
We assume there will be another such green shoot uptick in defense spending for this quarter, which will technically send the economy into positive territory. As you can see from the chart, projections are that defense spending will continue to rise until the recession is over.
One of the nagging difficulties we have with trying to communicate our view of things is in conveying to others that actions and decisions have consequences.
Our society has avoided reducing hours of work, and is now suffering the latest in string of such consequences, which we will try to detail below. This is only a first attempt, so criticisms are welcome.
1. The first consequence of a too many hours of work was the Great Depression;
2. The second, which was made unavoidable by the first, was the debasing of money from gold;
3. The third was the growth of government, in the form of the New Deal, to cope with the massive unemployment produced by the Great Depression, and which was made possible by the debasement of money;
4. There followed the massive preparations for World War II, and the outbreak of the conflict, which was made possible by massive pool of labor made available by the unemployment created by the Great Depression;
5. The above was followed by the implementation of National Security Memorandum 68, and the creation of the Cordon Militaire to contain the Soviet Union and establish the American Empire, made possible by the great pool of untapped superfluous labor which caused the Great Depression;
6. Which was followed by monetary instability, as the United States began pulling in global resources in the context of fixed exchanged rates;
7. Which finally forced the United States to abandon the dollar’s peg to gold, and a decade of monetary instabilty;
8. Which triggered the de-industrialization of the Rust Belt, and produced an unbroken string of trade deficits to this day;
10. Which, to control high interests rates, led to the manipulation of markets for various commodities – most importantly gold – by the American government;
11. Which led Washington to deregulate the derivatives market, even as those markets had nearly killed the global economy, and produced the Asian Meltdown, the Russian Financial Crisis, and the Argentina Crisis;
12. Which led to the monstrous overhang of CDS and other financial instruments of mass destruction;
13. Which led to last year’s Wall Street Meltdown, and the emergence of the greatest economic crisis since;
14. The Great Depression, which is not really a depression, but merely Mister Market’s way of saying you are working too hard…