Showing posts with label Pete Seeger. Show all posts
Showing posts with label Pete Seeger. Show all posts

Sunday, February 02, 2014

Pete Seeger and An Antidote to Apathy

February 2, 2014, 1:10 p.m.
"We Shall Overcome"

Why bother? What's the point? What difference can I possibly make?

Ever felt that way? Many do.

Yet others keep at it, whatever the odds, staring down defeat. What sustains them? What keeps them going?

One of those people was Pete Seeger. His example, commitment, and endurance was an inspiration to me as a young man -- and to millions of others during the past sixty-plus years. He was an icon, larger than life, and lots more fun. I never dreamed in those days that I would someday be sharing a stage with him at rallies, enjoying a private, quiet dinner and evening's conversation with Pete, and his wife, Toshi, in their Beacon, New York, home overlooking the Hudson River he was fighting for, or that he would be providing support for the National Citizens Committee for Broadcasting, for which I was the chair. [Photo credit: Bennett Raglin/Getty Images; multiple sources.]

What a life he led! Past tense because, as all but cave dwellers are by now aware, he died last Monday, January 27, at the age of 94. Jon Parelesjan, "Pete Seeger, Champion of Folk Music and Social Change, Dies at 94," New York Times, Jan. 29, 2014, p. A20. His wife, Toshi, predeceased him last year, Elisabeth Blair, "Toshi Seeger, Wife Of Folk Singer Pete Seeger, Dies At 91," New York Times, July 11, 2013 -- just shy of their 70th anniversary.

His death marks the end of an era, an era of folk songs and banjo, his leading audiences of thousands in song, energizing, organizing and raising our hopes that change was possible.

Memories of Pete Seeger flooded back again a couple of days ago as I read an email from a young man I know. It was going to require a response, and it got me to thinking about why it is that some are able to keep going for 94 years, while others give up after years and years of frustration.

First, here are some excerpts from what that young man wrote me:
Over the years I've written numerous letters to the editor, attended several public meetings, joined local non-profit groups and gone to their meetings, written directly to government officials (both email and postal letters), spoken with sheriffs and police chiefs, tried to change things at work by talking with management and working with the union, written gobs of blog entries, forum posts and comments on online newspaper articles -- on and on -- and essentially none of it has mattered. All my effort has amounted to practically nothing.

After one disaster in which people were killed and injured, I got the impression that no one wanted to know the truth. Perhaps there were enough people who might potentially get burned that they all just got together and buried it. When I try to bring things like this to the attention of local reporters they either never respond to my calls and emails, or don't seem to care. There is just a collective shrug. Crickets chirping.

I'm pretty much done fighting. I really don't see the point.

That's not to say there haven't been some advances in society over the last 50-100 years. Of course there have been, most of them involving civil rights. But it doesn't do anyone much good to be able to vote, for example, if powerful special interests are determining the candidates and the ship is headed for the iceberg.

Regardless of whether one thinks we are headed for nirvana or total annihilation, it really seems to me that the speed and the course are beyond the control of most individuals and groups. Any of us can rant and rave about the politics, WalMart, overpopulation, over-development, abortion, stem cells, guns, church/state issues, the Middle East, nuclear weapons, environmental destruction, Rush Limbaugh, Bill Maher, public education, and taxes, and it just does not matter. We're almost always either preaching to the choir and/or pissing off a large number of people (some of whom may be mentally unstable). It's exceedingly unlikely that one of the Waltons, or a bishop protecting pedophile priests, or a KKK member, or a cement head conservative would read something -- written by anyone really, but especially little ol' me -- and say to themselves, "You know, this guy makes a lot of sense! I realize now that I've been wrong my entire life. Gosh darn it, I'm gonna turn over a new leaf and do the right thing!"

The deck is stacked. Just one example from emails I received today -- efforts to stop the XL pipeline. I think we all know how that's gonna go. I doesn't matter how many people are against it -- there's too much money at stake. Obama will approve it.

Even in years past, for every JFK, Martin Luther King, or Gandhi -- every person who ever made a difference -- there were scores of others who worked, sacrificed, and suffered in vain. Not to mention that all of the above were eventually assassinated.
_______________

There are good reasons for millions of Americans to share that sense of hopelessness. And frankly, I don't know what the best response would be to those who feel that way. I'm sure there are many who could do a better job than I in coming up with a response. In any event, here was my feeble effort:
There are many potential responses to what you wrote.

Sadly, yours may be the majority view. Look at the voting turnout in Iowa City – the world’s third-selected “City of Literature,” a city one with one of the nation’s highest percentages of college graduates, one seen as so progressive as to be characterized as “The People's Republic of Johnson County” by those in Western Iowa. We often get turnouts of 5% to 10% of the eligible voters for city council, school board, and bond elections. Apathy rules.

There is certainly a lot of evidence to support your position. How many “public interest” organizations have shut down because their initial mission was accomplished?

(1) Strategy and Tactics. Those engaged in promoting change would do well to give more thought to strategies and tactics. When Dick Remington and I were co-directors of the Institute for Health, Behavior and Environmental Policy, we did a benefit-cost/triage analysis of where we might best put our time and money. We decided, in turn, to focus on (a) control of tobacco use, as it was the number one cause of death, (b) emphasize preventing pre-teens from taking up smoking (as more cost-effective than trying to get nicotine addicts off their drug), and (c) raising the price of cigarettes as the most effective way of discouraging children from taking up smoking. What are the causes that both hold the greatest potential for human betterment, and chance of accomplishment through the efforts of individual citizens? Success, a sense of accomplishment, what community organizers call "the fixed fight," are among the best antidotes for discouragement.

Some causes really are hopeless -– at least at a given time. “Pick your battles,” as my wife advises me. LBJ asked his presidential appointees to provide him with proposals for policies that would best serve the national interest. He said we should not make judgments about what is, and is not, possible -– he would make those judgments. As a congressman’s daughter in law, returning with the family from the south after Christmas, once put it, “Nick, some of those people are just going to have to die” -– not meaning that they should be killed, but that it is seemingly impossible to reason with them. As Thomas Paine explained a couple centuries earlier, “To argue with a man who has renounced the use and authority of reason . . . is like administering medicine to the dead, or endeavoring to convert an atheist by scripture.” (From Thomas Paine, The American Crisis.)

(2) Words Matter. But Thomas Paine said something else that I often think of, that reflects his understanding of both what a long and hard road it is to bring about change, but also how important incremental efforts can be: “The words pile up and then men do things. But first the words.” (I can’t find the source of that right now.) His pamphlet, Common Sense,” played a major role in the American Revolution. As John Adams is credited with having said, “Without the pen of Paine, the sword of Washington would have been wielded in vain.”

(3) Of Butterflies and Politics. Do you know about what’s called “the butterfly effect” (a butterfly flapping its wings in China might potentially contribute to the formation of a hurricane in North America weeks later)? Everything you say, every email you write, every letter to the editor you get published, every comment you make to the host of a call-in radio program, is at least the political equivalent of those butterfly wings flapping. Your words do have some effect -- even if so slight as to be immeasurable. It will certainly rarely be enough, by itself, to produce action or change.

Each leaf that fluttered to the bottom of the pool millions of years ago seemed insignificant, but it ultimately became part of a billion barrels of oil. Your support of ZPG (Zero Population Growth), and writing about global population, is an example; you have been a part of a growing global awareness that has, in fact, slowed population growth in many parts of the world.

Think tanks and various task forces and commissions come out with reports full of proposals to make things better. When they do, some people complain, “Oh, just another report to go on the shelf and gather dust.” My thought is, yes, more reports do come along every decade or so on this subject. But ultimately the time is right, a public official's staff person reads through all those old reports, gets the ear of his or her employer, and action follows.

Change is slow in coming. Very slow. As Paine began Common Sense, “Perhaps the sentiments contained in the following pages, are not yet sufficiently fashionable to procure them general favor; a long habit of not thinking a thing wrong, gives it a superficial appearance of being right, and raises at first a formidable outcry in defence of custom. But the tumult soon subsides. Time makes more converts than reason.”

Think of how long it took to convince Americans that slavery was not cool, or that perhaps it was worth taking the risk of letting women vote, or that it was not folly to create a national park system, or Social Security payments.

(4) A Swinging Pendulum Moves the Clock Forward. The pendulum swings. It’s not always “two steps forward and one step back.” Sometimes it’s “one step forward and two steps back.” Sometimes it’s no steps forward. But even a sailboat can sail into the wind by tacking; the reformer’s job is to figure out the equivalent of tacking when sailing into overwhelming opposition. Even the very best professional baseball players don't get a hit, let alone a home run, every time at bat. When I was doing door-to-door selling I read that it's normal to be turned down at least ten times for every sale. Politics, and reform of public policy is like that. A realistic sense of what's possible reduces frustration.

(5) The Personal Return from Making an Effort. Finally, there is the impact on the person engaged in trying to bring about change. There is actually some psychological data on this, I think.

Being engaged in the passions of one’s time is good for your physical, mental and emotional health. It often involves working with others you would not otherwise have come to know. It energizes you, gives you a reason to get out of bed in the morning. Discouragement? Sure. But as President Kennedy said at Rice University, Sept. 12, 1962, “We choose to go to the moon in this decade and do the other things, not because they are easy, but because they are hard, because that goal will serve to organize and measure the best of our energies and skills, because that challenge is one that we are willing to accept, one we are unwilling to postpone, and one which we intend to win, and the others, too.”

Want a little advice? Take a measured, realistic view of what anyone can accomplish, the causes that are hopeless, those that are going to take decades and yet have a chance. Don’t take on too much. Don’t stress yourself out with lack of sleep and perpetual frustration. Maintain a sense of humor about it all. Find additional activities that are predominantly pleasant. But you’ll continue to benefit, even personally, not to mention for others, by not giving up entirely on trying to improve the status quo -– Latin for “the mess we’re in now.” Help clean it up. It's worth it.

# # #

Sunday, October 16, 2011

Banks of Marble: Long History of Wall St. Protests

October 16, 2011, 10:00 p.m.

[And see the related,
"Occupy: When Will It Stop? It will not stop until . . .," Oct. 14, 2011
“Why ‘Occupy”? What Do ‘Those People’ Want?,” Oct. 10, 2011
“Those Kinds of Riots Here,” Sept. 18, 2011
and
"Economic Recovery? It's Simple and Obvious; Recovery Requires Consumers, and Consumers Require Jobs," Oct. 13, 2011
"Golden Rules and Revolutions: A Series - VIII," April 19, 2008 (with links to each in series)]


'Occupy' Only Latest in 230-Year-Long Protest

Pete Seeger started singing Les Rice's "The Banks Are Made of Marble" in 1950. It's a song that might have been written 50 years earlier, or 100 -- or today.


[From YouTube.com.]

In fact, it could have been written 230 years ago. Steve Fraser, "Wall Street protests: A long American tradition; The Occupy Wall Street movement is rooted in uprisings against policies that favor the financial elite over ordinary people," Los Angeles Times, October 13, 2011 -- with excerpts below.

If you didn't listen to Pete Seeger singing the song he made famous, above, and would prefer to just read the lyrics, here they are:

I've traveled round this country
From shore to shining shore
It really made me wonder
The things I heard and saw.

I saw the weary farmer
Plowing sod and loam
l heard the auction hammer
A knocking down his home

But the banks are made of marble
With a guard at every door
And the vaults are stuffed with silver
That the farmer sweated for

l saw the seaman standing
Idly by the shore
l heard the bosses saying
Got no work for you no more

But the banks are made of marble
With a guard at every door
And the vaults are stuffed with silver
That the seaman sweated for

I saw the weary miner
Scrubbing coal dust from his back
I heard his children cryin
Got no coal to heat the shack

But the banks are made of marble
With a guard at every door
And the vaults are stuffed with silver
That the miner sweated for

I've seen my brothers working
Throughout this mighty land
l prayed we'd get together
And together make a stand

Final Chorus
Then we'd own those banks of marble
With a guard at every door
And we'd share those vaults of silver
That we have sweated for
Les Rice, "The Banks are Made of Marble," Stormking Music (1950).

Now back to the centuries-old history of these bank protests, and excerpts from Steve Fraser's article:

The only thing really surprising about the Occupy Wall Street movement is that it didn't happen sooner. The United States has a long history of friction over policies that enable an elite to thrive at the expense of ordinary people.

The earliest tensions emerged soon after the Revolutionary War, when Jeffersonian democrats raised alarms about the "moneycrats" and their counter-revolutionary intrigues. . . .

In the first half of the 19th century, followers of Andrew Jackson inveighed against the Second Bank of the United States [and] feared the bank was part of a systematic monopolizing of financial resources by a politically privileged elite.

That tradition was embraced again just after the Civil War, when the Farmer-Labor and Greenback political parties were formed out of a determination to break the stranglehold on credit exercised by the big banks back East.

Later in the 19th century, Populists decried the overweening power of the Wall Street "devil fish." The tentacles of finance, they insisted, not only reached into every part of the economy but also corrupted churches, the press and institutions of higher learning, destroying the family and suborning public officials from the president on down. . . .

William Jennings Bryan . . . during his campaign for the presidency in 1896 . . . was taking aim at Wall Street, and everyone knew it.

Around the turn of the 20th century, the antitrust movement . . . worried most about . . . "the money trust" . . . skewered in court and in print by future Supreme Court Justice Louis Brandeis, subjected to withering congressional investigations, excoriated in the exposes of "muckraking" journalists and depicted by cartoonists as a cabal of prehensile Visigoths in death-heads.

[T]he new century . . . included reformers in statehouses and city halls, socialists in industrial cities, strikebound workers from coast to coast, working-class feminists and antiwar activists. Financial interests were blamed for . . . pillage and labor exploitation while practicing imperial adventuring abroad. As the movements made clear, everyone but Wall Street was suffering the consequences of a system of proliferating abuses perpetrated by "the Street."

[D]uring the [1930s] Depression . . . as now, there was no question in the minds of the "99%" that Wall Street was principally to blame for the country's crisis.

In addition to rallies and marches of the unemployed, there were hundreds of sit-down strikes . . ., foreclosures forestalled by infuriated neighbors and occupations — even seizures — of private property. There was a pervasive sense that the old order needed to be buried. . . . President Franklin D. Roosevelt announced his determination to unseat "economic royalists" who were growing rich off "other people's money" while the country suffered its worst trauma since the Civil War.
Steve Fraser, "Wall Street protests: A long American tradition; The Occupy Wall Street movement is rooted in uprisings against policies that favor the financial elite over ordinary people," Los Angeles Times, October 13, 2011.Want to know the data that explains why the protesters are protesting? Would you trust what comes from a business publication? OK, take a look at what CEO and Editor-in-Chief of Business Insider, Henry Blodget, has put together for you. Henry Blodget, "Here Are the Four Charts That Explain What the Protesters Are Angry About . . .," Business Insider, October 15, 2011. I won't fill this blog entry with the charts you can see at that link (with the exception of one, below); but here are the explanatory titles on each:

1. Unemployment is at the highest level since the Great Depression.

2. At the same time, corporate profits are at an all-time high, both in absolute dollars and as a share of the economy.

3. Wages as a percent of the economy are at an all-time low. In other words, corporate profits are at an all-time high, in part, because corporations are paying less of their revenue to employees than they ever have.

4. Income and wealth inequality in the US economy is near an all-time high: The owners of the country's assets (capital) are winning, everyone else (labor) is losing. Three charts illustrate this:

(1) The top earners are capturing a higher share of the national income than they have anytime since the 1920s. Top decile income share in France and the United States [20th Century; roughly equal until 1980; in 2003 about 43% in U.S., 32% France]

(2) CEO pay and dcorporate profits have skyrocketed in the past 20 years, "production worker" pay has risen 4%
(3) After adjusting for inflation, average earnings haven't increased in 50 years; Average Hourly Earnings, 1964-2008 (in 2008 dollars) [e.g., 1979: $18.76/hour; 2008: $18.52/hour]
By now, "Occupy Wall Street" has not only spread across America, it has gone global. As the New York Times reports, "Buoyed by the longevity of the Occupy Wall Street encampment in Manhattan, a wave of protests swept across Asia, the Americas and Europe over the weekend, with hundreds and in some cases thousands of people expressing discontent with the economic tides in marches, rallies and occasional clashes with the police." Clara Buckley and Rachel Donadio, "Buoyed by Wall St. Protests, Rallies Sweep the Globe," New York Times, October 16, 2011, p. A4.

And yet the bankers -- along with most elected officials and candidates -- still refuse to take it seriously, or understand what it's all about.

Publicly, bankers say they understand the anger at Wall Street — but believe they are misunderstood by the protesters camped on their doorstep.

But when they speak privately, it is often a different story.

"Most people view it as a ragtag group looking for sex, drugs and rock ’n’ roll," said one top hedge fund manager.
Nelson D. Schwartz and Eric Dash, "In Private, Wall St. Bankers Dismiss Protesters As Unsophisticated," New York Times, October 15, 2011, p. B1.

Iowa's own Senator Charles Grassley's reaction is illustrative and consistent with the Times' report: "I assume that it’s a lot of unemployed young people looking for some dates.” Quoted from KCCI-TV in Graham Gillette, "One Helping of Irony s Now Being Served," Des Moines Register, October 16, 2011, p. OP 3.

As he so often does, "Tom Tomorrow" captures the Establishment's response to the Business Insider's statistics, above:


[Credit: www.ThisModernWorld.com.]
# # #

Tuesday, August 09, 2011

The Last One to Die . . .

August 9, 2011, 1:50 p.m.

. . . for a mistake



Every Sunday toward the end of ABC News' "This Week with Christiane Amanpour," she says (as she does 45 seconds into the excerpt above, from the August 7, 2011, show's "Lives of Note" segment), "And we remember all of those who died in war this week."

It is, for me, a very somber moment; a Sunday church service of sorts. No more multi-tasking. I stop whatever else I am doing to focus on the name, rank and young age of each. I think of their families, loved ones, parents.

Last Sunday Amanpour continued, "The Pentagon has yet to release the identities of the Americans who were killed yesterday in the single deadliest attack of the war in Afghanistan, but we have learned the names of seventeen soldiers and Marines who were killed the days before."

With the soldiers' names, their home towns scrolled by: Edmond, Oklahoma; Broken Arrow, Oklahoma; Daly City, California; Columbus, Georgia; Wilson, North Carolina; Moscow, Pennsylvania; Brecksville, Ohio; Dallastown, Pennsylvania; Sapulpa, Oklahoma; Sliver Spring, Maryland; Holton, Kansas; Jacksonville, Florida; Red Bay, Alabama; Chelsea, Oklahoma; Chatsworth, California; Vernal, Utah; Warner Robins, Georgia.

They are not all well known American towns. Some are little more than a stop for gas when you take a trip along one of America's scenic "blue highways." But this week, each of those 17 towns is filled with grieving Americans.

The men and women in today's military were not drafted. They volunteered. We need a military, and all of us owe thanks and more to those willing to serve.

But we, and our elected officials, also owe them common sense, and more restraint in our willingness to risk their lives.

If there were hostile armed forces entering the United States from Canada, Mexico, or either coast by sea, I would be willing to take up arms myself, even in my advanced age, to help protect my country.

But the war into which we sent these 17 soldiers, and the 38 who died last Saturday, is not that kind of war.

The likelihood of the Afghan Taliban doing harm to Americans residing in the United States is somewhere between slim and none at all. Even in 2001, the individuals who attacked us on 9/11, and their funding, primarily came from Saudi Arabia not Afghanistan; and our decade-long goal since then -- to capture or kill bin Laden -- now truly is, "mission accomplished." The only Americans who are at risk of harm from the Taliban are those who have been sent into Afghanistan -- over the objections of many Afghans -- and whose presence is now fueling Afghan hostility and Taliban recruiting efforts.

The bumper sticker says, "Whatever is the question, war is not the answer." That's not, strictly speaking, always true in every instance. I'm not confident there was any meaningful answer besides war to Hitler's advance through Europe. War is sometimes not only an answer, it is the only answer.

But as I have written about the Viet Nam war, and in comparable ways about Iraq and Afghanistan, war is not a very sensible option when and if,
1. given the history of the country, you will be perceived as only the latest in a centuries-long string of invaders (which prior to us in Viet Nam were the French),

2. you can’t speak or understand the native language,

3. you know little or nothing of the history, religion, culture and customs of the people, and have little grasp of the territory in which you’re fighting,

4. you are easily identified by your “enemy,” and to make sure you will be, you wear uniforms

5. your enemy, on the other hand, looks almost identical to your allies and the locals you employ, and refuses to wear a uniform,

6. since there is no “front line,” as such, territory is repeatedly lost, and gained, only to be lost again,

7. during which battles, your troops are given the impossible choice between (a) killing disproportionately large numbers of innocent civilians, or (b) being killed by enemy fighters who look like innocent civilians,

8. with the consequence that an internal inconsistency exists between the strategy of “winning hearts and minds,” and the tactic of “burning down the village to save it,” such that the longer the fighting continues the more counterproductive it becomes

9. up to and including the possibility of exacerbating, rather than reducing, chaos and civil war
Nicholas Johnson, "General Semantics, Terrorism and War" (2006).

That piece also contains my own version of what's credited to former General Colin Powell as the "Powell Doctrine" -- questions the military leaders (and we citizens and taxpayers) need to ask our politicians before sending our sons, daughters and dollars to war:
* What, specifically, is the goal you’re trying to accomplish?
* Why do you think a military operation will contribute to (rather than impede) its accomplishment?
* What will it require in troops, materiel, lives and treasure to achieve that goal?
* Are you prepared to provide those resources and pay those costs?
* Will the American people support this effort for as long as it takes -- and how long will that be?
* How will we know if we’ve ever been “successful”?
* What, then, will be our exit strategy?
* What will happen when we leave?
* Will that be consistent with our original mission?
Given the conditions under which war is, and is not, a viable option, and given the questions that need to be at least asked, and hopefully answered, before engaging in war, my own view is that we ought to get our military personnel out of Afghanistan before even more will die.

In reflecting on the 30 more American dead in one helicopter (38 counting Afghans, whom I think should and do count), I hear an echo of the words of Senator John Kerry -- then a 27 year old Navy veteran of Vietnam -- in testimony before the Senate Foreign Relations Committee on April 23, 1971:
How do you ask a man to be the last man to die in Vietnam? How do you ask a man to be the last man to die for a mistake?
Kerry's entire moving presentation is very much worth reading, the video excerpt worth watching, in the context of Afghanistan today. Deborah White, "John Kerry's Famed 1971 Testimony to Congress on Vietnam," About.com.



A cynic might respond, "Don't be worrying about the last military man or woman to die in Afghanistan, Nick. The last person to die in Afghanistan hasn't yet been born."

We can only hope and pray that's not true.

Yet from what I read and hear in the media, we have troops in 150 countries, SOCOM (United States Special Operations Command) forces in 75, headed toward 100 by the end of this year, plus the CIA personnel and the private sector warriors. SOCOM has increased its numbers by four-fold or more since 9/11, and shows no signs of slowing down. (See/hear, e.g., Tom Ashbrook, "Special Operations Forces In Afghanistan," On Point, August 9, 2011.)

So, sadly, the cynic is probably right.

Nor are our military adventures unrelated to the global financial troubles, and the riots in London. The best estimates are that when everything is totaled up, the cost of Iraq and Afghanistan, including the lifelong care of the wounded, will run something like the $2-3 trillion we currently need to balance a budget.

Given that, in Afghanistan, even defining "success" seems almost as difficult as achieving it, one is not reassured by President Obama's insistence that "We will press on and we will succeed. Our troops will continue the hard work . . .." "President Obama Pledges to Press on in Afghan War," Reuters, August 8, 2011.

One is reminded of more of the commentary regarding the Viet Nam war, so effectively embedded into the anti-war protest songs that played a role in ultimately bringing that failed effort to an end.

Press on?

How about "push on"?

Here's Pete Seeger's Viet Nam era "Waist Deep in the Big Muddy ("and the big fool said to push on"):



While we're at it, here are a couple more from that war:

Edwin Starr singing his song "War (What is it good for? Absolutely nothing)" (1969)



An excerpt from the lyrics:
"War, what's it good for?/Absolutely nothing."
War..huh...look out...
What is it good for?
Absolutely nothing...listen to me ohhhhh
WAR! I despise,
'cause it means destruction of innocent lives,
War means tears to thousands of mother's eyes,
When their sons gone to fight and lose their lives.
I said WAR!...huh...good God y'all,
What is it good for?
Absolutely nothing
And . . .

Country Joe & The Fish, "Feel Like I'm Fixing to Die Rag"



with an excerpt from those lyrics:
Well, come on all of you, big strong men,
Uncle Sam needs your help again.
He's got himself in a terrible jam
Way down yonder in Vietnam
So put down your books and pick up a gun,
We're gonna have a whole lotta fun.

And it's one, two, three,
What are we fighting for ?
Don't ask me, I don't give a damn,
Next stop is Vietnam;
And it's five, six, seven,
Open up the pearly gates,
Well there ain't no time to wonder why,
Whoopee! we're all gonna die.

Come on Wall Street, don't be slow,
Why man, this is war au-go-go
There's plenty good money to be made
By supplying the Army with the tools of its trade,
But just hope and pray that if they drop the bomb,
They drop it on the Viet Cong.
Why aren't we out in the streets? Why aren't there songs protesting the Afghan war?

Because those who favor war, even when it is counterproductive, learned a lesson from Viet Nam. To keep the American people from demanding an end to foreign and military policies of perpetual war, you need only provide the illusion that it is war without sacrifice.

(1) War costs nothing -- except for those few Americans (as a percentage of 325 million) who die or are wounded. We don't have to pay the costs of war. There are no war taxes. We simply put it on our Chinese credit card; we borrow the money -- plus a little more for tax breaks for the wealthy.

(2) We've abolished the draft. No one has to go to war; just the ones who want to. What could be more American than that?

As a strategy for perpetual war, it seems to have worked.

The last one to die for this mistake? She's yet to be born.

# # #

Friday, August 21, 2009

Banks As Robbers: The $38 Billion Heist

August 21, 2009, 6:40 a.m.

How Banks Profit From Robbing Customers
(brought to you by FromDC2Iowa.blogspot.com*)

After years of watching bank robbers take their money, banks are turning the tables and now making billions by robbing their customers.

And, so far, the local papers are not following up on this story for their readers.

"If You Can't Trust Your Banker . . ."


[Credit: "Shady Deal at Sunny Acres," Maverick, 2nd Season, 1958. The popular early television series, Maverick, "starring James Garner and Jack Kelly, remains the most famous and widely discussed episode of the Western comedy television series Maverick. Written by Roy Huggins and Douglas Heyes and directed by Leslie H. Martinson, this 1958 second season episode depicts gambler Bret Maverick (James Garner) being swindled by a crooked banker (John Dehner) after depositing the proceeds from a late-night poker game, then recruiting his brother Bart Maverick (Jack Kelly) to mount an elaborate sting operation to recover the money." It's also the source of two oft-quoted lines: "If you can't trust your banker, whom can you trust?" and "I'm working on it." See, "Shady Deal at Sunny Acres," wikipedia.org.]

As Woodie Guthrie put it in the lyrics to "Pretty Boy Floyd":
As through this life you travel, you meet some funny men
Some rob you with a six-gun, some with a fountain pen
And although this blog entry doesn't address the outrage of foreclosures against the banks' victims in this time of economic hardship, Guthrie's next two lines are also telling:
As through this life you ramble, as through this life you roam
You'll never see an outlaw take a family from their home
I'm indebted this morning to Stephen Phillips for bringing yet another Karl Denninger essay to my attention 10 days ago. Karl Denninger, "Bribed Regulators: Another Example," Market-Ticker, August 10, 2009.

The Financial Times made the basic story available on August 9. Saskia Scholtes and Francesco Guerrera, "Banks make $38bn from overdraft fees," Financial Times, August 9, 2009 ("US banks stand to collect a record $38.5bn in fees for customer overdrafts this year, with the bulk of the revenue coming from the most financially stretched consumers amid the deepest recession since the 1930s, according to research. The fees are nearly double those reported in 2000.").

By yesterday, 11 days later, the outrage had even attracted the attention of the New York Times' editorial writers. Editorial, "Debit Card Trap," New York Times, August 20, 2009, p. A26.

And what I'd like to know is why have so few newspapers carried this story? "Some have," you say? That's not what I mean. What I want to know is why our local papers have not responded to these shocking revelations by simply gathering and reporting the relevant data about the banks in the local community. A few phone calls should do it. It's not exactly an expensive six-month assignment requiring a team of investigative reporters. And it would be a community service that every subscriber would really appreciate -- at a time when the papers are looking for subscribers.

How about it in my home town, Press-Citizen, Gazette, Daily Iowan?

"So what's the big deal?" I hear you ask. "Overdrafts cost the banks. We've had overdraft fees forever."

"Not like these, you haven't," I respond. Read on.

The story is not in the existence of overdraft fees, it's in (a) the new way banks manipulate them to make them a major profit center, (b) the excesses this produces for some customers, and (c) who those customers are.

Here's how Denninger reports it (bracketed bold headings are mine):
[Banks' New Math] 70% of the overdrafts happen at a POS terminal or ATM, not by writing a check. . . .

There is no reason whatsoever for anyone to take such a hit. The bank knows before they approve the transaction that the money isn't there in the account.

This is not the same thing as a check, which the bank has no way to warn you about before you write it, as there is no "connection" between your checkbook and their computer. . . .

IF we had honest regulators it would be strictly unlawful for a bank to intentionally approve a debit transaction which it knew you did not have the funds to settle . . ..

In fact, it was not all that long ago, in the 1980s and early 1990s, when this was the case: If you went to the ATM and tried to withdraw $100, but didn't HAVE $100, the transaction would be declined. Every time.

But then the banks came to realize that if they let the transaction go through they could make an unregulated loan for that $100 to you, charging you $30 or more for the privilege -- an annualized interest rate of thousands of percent!

[Don't Ask, Don't Tell; The Fountain Pen Robbery] This is clearly predatory behavior. Nobody with half a brain would knowingly sign up for a "service" that would cover a POS or ATM withdrawal at 5,000% interest, yet that is exactly what nearly every bank in the land will currently do by default when you open a new account. They bury the "disclosure" in their terms and conditions, but nowhere do they state these "fees" in equivalent annual percentage rate terms.

[Watch Your Money Disappear in the Banks' Shell-and-Pea Game] It gets better: Banks will intentionally "sort" transactions from a given day to produce the maximum overdraft fee. They sort withdrawals to debit the largest-amount-first, because the fee is assessed per item.

An example: $1,000 in your account. You write checks for $20, $50, $100, $1,000 and all are presented on the same business day.

How many checks will hit you with an overdraft fee? THREE -- every time. The bank will re-order the transactions so that the $1,000 check is processed first, guaranteeing that the $20, $50 and $100 checks overdraw, thereby generating three overdraft charges.

If they processed the transactions "largest item LAST" you'd generate one overdraft fee -- on the $1,000 check.

It gets better.

You have $1,000 in your account. It is after 2:00 PM, the cut-off for a business day. You go to the mall and use your debit card four times to buy a $5 Latte, $15 lunch, a $40 pair of pants and $25 for a couple of movie tickets.

The next morning a $1,000 check hits your account.

The bank processes the $1,000 check first, even though in terms of actual presentation time the debit card withdrawals were approved first, and whacks you for four overdraft fees instead of the one legitimate fee on the $1,000 check. That Latte just cost you as much as $45!
So who bears the primary burden of these fraudulent practices? Surprise . . .
[The Poor Pay More] 3/4 of all accounts have not had an overdraft in the last 12 months. This means that one quarter of all accounts are responsible for basically all of this.

Of the remaining quarter, half of those account for nearly all (90th percentile plus) of the overdrafts. This means that roughly 12.5% of consumers are bearing the entire brunt of these fees.
Why do the regulators permit this? You tell me. These are the same regulators who thought it would be really nifty, ideologically pure, and very profitable to let the banks package what are called "toxic assets" (mortgages unlikely to be paid) and sell them as securities. It was a win-win. So long as this industry-wide ponzi scheme worked, bank managers would collect bonuses and shareholders would get dividends and higher stock prices. And if and when it all collapsed -- as it was obvious it someday would, and now has -- they could do their little Chicken Little dance and scare the Congress (funded with the campaign contributions from Wall Street and the banking industry) into handing over trillions of taxpayers' dollars to cover the losses. And if a few billion of that is paid in bonuses to reward those who brought on the economic collapse, well, hey, they have to live, too.

Karl Denninger continues:
This sort of predation is responsible for nearly $40 billion dollars a year in pure "profit" for the banks, it is directed specifically at those who have the least in resources to cover it, and it relies on lack of clear disclosure and intentionally-predatory "sorting rules" to get past what would otherwise result in a howl of protest by consumers and lawmakers alike.

This sort of practice should be absolutely outlawed, and if we had anything approaching an honest Congress and Federal Reserve it would have been years ago.
As Paul Krugman notes in an aside this morning, "I don’t know if administration officials realize just how much damage they’ve done themselves with their kid-gloves treatment of the financial industry, just how badly the spectacle of government supported institutions paying giant bonuses is playing." Paul Krugman, "Obama's Trust Problem," New York Times, August 21, 2009, p. A27.

Here are some consistent quotes from the New York Times' editorial (linked above):
Moebs Services, a research company that has conducted studies for the government as well as some banks, reported recently that banks will earn more than $38 billion this year from overdraft and bounced-check fees. Moebs also estimates that 90 percent of that amount will be paid by the poorest 10 percent of the customer base.

Federal regulators . . . stood idly by while this system evolved . . ..

[A]s more people began to use debit cards, the banks started to view overdraft fees as a major profit center and started to automatically enroll debit card holders into an overdraft program. Some banks instituted a tiered penalty system, charging customers steadily higher fees as the overdrafts mount. . . .

One college student . . . made seven small purchases including coffee and school supplies that totaled $16.55 and was hit with overdraft fees that totaled $245. . . .

Credit card companies . . . were rightly criticized when some drove up interest rates to 30 percent or more. According to a 2008 study by the F.D.I.C., overdraft fees for debit cards can carry an annualized interest rate that exceeds 3,500 percent. . . .
And so "the beat (ing up of the American consumer by the banking-governmental axis of evil) goes on."

I ask again: Where is the local media's reporting of the bank overdraft practices in our community? Are the papers on the side of the beleaguered local consumers (as newspapers openly were 100 years ago), or on the side of the rapacious, unregulated banks? They can't be both.

And to close with another song, as Pete Seeger asked the question in an only slightly different context,
Which side are you on, boys?
Which side are you on?
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* Why do I put this blog ID at the top of the entry, when you know full well what blog you're reading? Because there are a number of Internet sites that, for whatever reason, simply take the blog entries of others and reproduce them as their own without crediting the source. I don't mind the flattering attention, but would appreciate acknowledgment as the source, even if I have to embed it myself. -- Nicholas Johnson
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Wednesday, January 21, 2009

New Days, Pete Seeger, Constitutional Questions

January 21, 2009, 8:00 a.m.

The Dawn
(Brought to you by FromDC2Iowa.blogspot.com*)

As the sun slowly rose this morning it truly was "a new day."

My time in a segregated South during the 1950s -- Austin, Houston, and then traveling through Louisiana, Mississippi, Alabama, Georgia and Florida with the U.S. Court of Appeals, 5th Circuit, Judge John R. Brown for whom I was clerking -- with "Whites Only" signs in restaurants, "white" and "colored" water fountains, a racially administered poll-tax system to keep African-American citizens from voting, and the KKK's crosses burned in Fifth Circuit judges' lawns, meant that I, too, had a dream that yesterday would someday come to America. And now it has. Surely it was a much more special day for those whose ancestors were slaves, but it was a day that all Americans could celebrate with pride -- and did.

Beyond that, there is little unique that I could add to the millions of words and pictures from millions of Americans about January 20 -- in emails, blogs, conversations between themselves, and the mainstream media -- so I won't spoil it by trying.

Below, however, is another of what was a moving inaugural moment for me. Pete Seeger who has been giving of himself to movements and progress since I suppose the 1930s; Pete Seeger, with whom I appeared in rallies in the 1960s and '70s, and in whose home we've visited; Pete Seeger, at 92 or 93, beaming at the thousands before him at the Lincoln Memorial who had helped make this inauguration possible; Pete Seeger, who had done it probably thousands of times before, leading a crowd in a very triumphant group singing of "This Land is Your Land."



What would you do?

There was a constitutional law professor's moment yesterday during the swearing in. I'm sure you caught it, but you may not have thought about its possible significance.

The Chief Justice, John Roberts, "administers the oath of office" that turns a "president-elect" into a president.

Article II, Section 1, Paragraph 8 of the Constitution provides:

"Before he enter on the execution of his office, he shall take the following oath or affirmation: - "I do solemnly swear (or affirm) that I will faithfully execute the office of President of the United States, and will to the best of my ability, preserve, protect and defend the Constitution of the United States."

The need for this oath would seem to have been modified by the 22nd Amendment, which provides simply, "The term of the President and Vice President shall end at noon on the 20th day of January . . . and the terms of their successors shall then begin."

Without that interpretation, the United States would have been without a president from noon until about 12:05 p.m. yesterday -- since the terms of Bush and Cheney "shall end at noon" and President Obama could not "enter on the execution of his office" until "he shall take the following oath." Thus, Obama became president at "noon on the 20th day of January" with or without an oath.

If that is not the proper constitutional interpretation there is then a remaining reasonable question as to whether President Obama did, in fact, take the oath required by Article II, Section 1.

The Chief Justice recited "I do solemnly swear that I will execute the office of President to the United States faithfully . . .." Obama, a former constitutional law professor and newly elected president, presumably knew the Chief Justice had misspoken. He paused. What to do? With all the planning, every detail attended to, two or three days of celebration without a hitch, what President-elect could be expected to have prepared for the possibility the Chief Justice would screw up the oath of office in this unanticipated moment? The Chief Justice attempted to recover. Obama, confronted with the choice of reciting the oath as written, thereby embarrassing the Chief Justice of the United States, or reciting the oath as presented to him by the Chief Justice, chose the latter -- thereby failing to take the oath contained in the Constitution.

One would have thought the Chief Justice would either have previously known the oath; or if not, read and memorized it ahead of time; or if not, had an accurate copy from which to read, and -- if he feared nervousness on such an occasion -- practiced reading it correctly ahead of time.

But judges, even Chief Justices, aren't consistently perfect. I recall an occasion when clerking for Justice Black that I walked into his office and found Chief Justice Warren and Justices Black and Harlan staring at the bound Supreme Court opinions on Black's shelves, unable between them to think of the case they were trying to remember. Justice Black was known for the little dog-eared copy of the Constitution he always carried in his coat pocket. When Eric Sevareid and Martin Agronsky interviewed him for a CBS documentary, Martin asked him, "Mr. Justice, why do you carry that Constitution with you? I would think by now you'd know it by heart." Justice Black replied, with his famous smile, "Because I don't know it by heart." Apparently neither does Chief Justice Roberts.

(The error is easily remedied, if thought necessary, as it has been in the past -- if one doesn't wish to rely on the 22nd Amendment interpretation -- by President Obama's simply taking the oath, correctly, a second time, which could be in a small private ceremony if adequately documented. [That is what they ended up doing later on Wednesday: Jeff Zeleny, "I Really Do Swear, Faithfully: Obama and Roberts Try Again," New York Times, January 22, 2008.])

What would you have done in that situation?
__________

* Why do I put this blog ID at the top of the entry, when you know full well what blog you're reading? Because there are a number of Internet sites that, for whatever reason, simply take the blog entries of others and reproduce them as their own without crediting the source. I don't mind the flattering attention, but would appreciate acknowledgment as the source -- even if I have to embed it myself. -- Nicholas Johnson

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Thursday, November 20, 2008

A Trillion Here, a Trillion There

November 20, 2008, 7:50 a.m.

Where Have All the Dollars Gone?

(With credit and apologies to Pete Seeger's "Where Have All the Flowers Gone?"; and for the title to the line "A billion here, a billion there, and pretty soon you're talking real money" -- attributed, though without substantiation, to former Senator Everett Dirksen of Illinois.)


[Photo credit: Jay Mallin/Bloomberg News]

Somehow, while we were focusing on the $25 billion bailout request from the private-jet-flying Big Three Auto CEOs, roughly 100 times that amount disappeared from this building (the Federal Reserve), notwithstanding the security guard pictured here near the entrance.

That's right. While we were assuming that the debt Secretary Paulson and our frightened elected representatives were handing off to our great grandchildren was limited to Paulson's $700 billion gift to his friends, it turns out that the Fed's Bernanke had friends of his own to whom he was providing another Two trillion dollars!

Now Bernanke is refusing to reveal who his newly-wealthy friends are or what kind of collateral he was willing to accept for these "loans."

It's all reminiscent of another song Pete Seeger made famous that will soon be coming round again, "Banks of Marble":

I've traveled 'round this country
from shore to shining shore
It really made me wonder
the things I heard and saw

I saw the weary farmer
plowing sod and loam
l heard the auction hammer
just a-knocking down his home

[chorus] But the banks are made of marble
with a guard at every door
and the vaults are stuffed with silver
that the farmer sweated for
And so on through "the weary miner, scrubbing coal dust from his back."

It is our money. We have worked for it. We paid it in taxes to support social and other legitimate programs of our federal government. And now it is being given away by the trillions, by two individuals to friends of theirs, friends who bear much to most of the responsibility for the greed that has created our current economic collapse.

In case you missed the details, read on:

The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral.

Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson said in September they would comply with congressional demands for transparency in a $700 billion bailout of the banking system. Two months later, as the Fed lends far more than that in separate rescue programs that didn't require approval by Congress, Americans have no idea where their money is going or what securities the banks are pledging in return. . . .

Bloomberg News has requested details of the Fed lending under the U.S. Freedom of Information Act and filed a federal lawsuit Nov. 7 seeking to force disclosure.

The Fed made the loans under terms of 11 programs, eight of them created in the past 15 months, in the midst of the biggest financial crisis since the Great Depression.

``It's your money; it's not the Fed's money,'' said billionaire Ted Forstmann, senior partner of Forstmann Little & Co. in New York. ``Of course there should be transparency.''

Federal Reserve spokeswoman Michelle Smith declined to comment on the loans or the Bloomberg lawsuit. Treasury spokeswoman Michele Davis didn't respond to a phone call and an e-mail seeking comment. . . .

The Fed's lending is significant because the central bank has stepped into a rescue role that was also the purpose of the $700 billion Troubled Asset Relief Program, or TARP, bailout plan -- without safeguards put into the TARP legislation by Congress.

Total Fed lending topped $2 trillion for the first time last week and has risen by 140 percent, or $1.172 trillion, in the seven weeks since Fed governors relaxed the collateral standards on Sept. 14. . . .

Before Sept. 14, the Fed accepted mostly top-rated government and asset-backed securities as collateral. After that date, the central bank widened standards to accept other kinds of securities . . ..

Banks oppose any release of information because it might signal weakness and spur short-selling or a run by depositors, said Scott Talbott, senior vice president of government affairs for the Financial Services Roundtable, a Washington trade group. . . .

The nation's biggest banks, Citigroup, Bank of America Corp., JPMorgan Chase, Wells Fargo & Co., Goldman Sachs Group Inc. and Morgan Stanley, declined to comment on whether they have borrowed money from the Fed. They received $120 billion in capital from the TARP, which was signed into law Oct. 3.

In an interview Nov. 6, House Financial Services Committee Chairman Barney Frank said the Fed's disclosure is sufficient and that the risk the central bank is taking on is appropriate in the current economic climate. Frank said he has discussed the program with Timothy F. Geithner, president and chief executive officer of the Federal Reserve Bank of New York and a possible candidate to succeed Paulson as Treasury secretary.

``I talk to Geithner and he was pretty sure that they're OK,'' said Frank, a Massachusetts Democrat. . . .

The Bloomberg lawsuit argues that the collateral lists ``are central to understanding and assessing the government's response to the most cataclysmic financial crisis in America since the Great Depression.'' . . .

``As a taxpayer, it is absolutely important that we know how they're lending money and who they're lending it to,'' said Lucy Dalglish, executive director of the Arlington, Virginia- based Reporters Committee for Freedom of the Press.

Ultimately, the Fed will have to remove some securities held as collateral from some programs because the central bank's rules call for instruments rated below investment grade to be taken back by the borrower and marked down in value. Losses on those assets could then be written off, partly through the capital recently injected into those banks by the Treasury.

Moody's Investors Service alone has cut its ratings on 926 mortgage-backed securities worth $42 billion to junk from investment grade since Sept. 14, making them ineligible for collateral on some Fed loans.

The Fed's collateral ``absolutely should be made public,'' said Mark Cuban, an activist investor, the owner of the Dallas Mavericks professional basketball team and the creator of the Web site BailoutSleuth.com, which focuses on the secrecy shrouding the Fed's moves.

The Bloomberg lawsuit is Bloomberg LP v. Board of Governors of the Federal Reserve System, 08-CV-9595, U.S. District Court, Southern District of New York (Manhattan).
Mark Pittman, Bob Ivry and Alison Fitzgerald, "Fed Defies Transparency Aim in Refusal to Disclose (Update2)," Bloomberg, November 10, 2008.

A trillion here and a trillion there and pretty soon you're talking real money.

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