Daily Digest

Daily Digest 11/22 - Supercommittee Fails To Compromise, Hard Times Ahead, Taking It To The Streets

Tuesday, November 22, 2011, 10:47 AM
  • A Failure Is Absorbed With Disgust and Fear, but Little Surprise
  • "Hard Times Ahead" Says Rajoy
  • Stocks, So Far Resilient, Face a Week of Challenges
  • Greece: High Flying Drachma
  • U.C. Davis Officers Put On Leave After Pepper Spraying Protestors
  • We Are The One Per Cent
  • Paying Students To Quit Law School
  • Taking It To The Streets

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Economy

A Failure Is Absorbed With Disgust and Fear, but Little Surprise (jdargis)

The failure of the committee — which had been dubbed, with typical inside-the-Beltway grandiosity, the “supercommittee” — led to predictable, if bitter, kryptonite jokes. But it also prompted wrenching questions about whether Congress can be trusted to do its job: the committee, after all, was supposed to do the hard work that lawmakers had put off in August when they eventually agreed to avert default by raising the nation’s debt limit, waiting so long to do so that Standard & Poor’s lowered the United States’s credit rating.

"Hard Times Ahead" Says Rajoy (Ilene)

Spanish borrowing costs continued rising toward euro-era records (6.6% this morning) even as the PP won a mandate to slash the budget deficit, overhaul the stagnant economy and reduce the 23 percent jobless rate. Rajoy, who hasn’t given details of his proposals, won’t take over for a month, prompting him to say on Nov 18th he hoped Spain wouldn’t need a bailout before he’s sworn in. Miguel Arias Canete, head of the PP’s electoral committee and a former minister, said today markets need to give the party time, as ministers won’t be appointed until Dec. 21 and Spanish law doesn’t allow Parliament to resume any sooner than Dec. 13.

Stocks, So Far Resilient, Face a Week of Challenges (jdargis)

“It should make people nervous,” Mr. Parker said. “There is a feedback loop between Europe and the rest of the world and that can slow growth. And the political polarization in Washington is also worrisome to investors.”

Greece: High Flying Drachma (Joe P.)

First, please note that any country may default on its debt. The trouble is that the day after a default it might be difficult or impossible to obtain a loan at palatable terms. As such, any country considering a default must conduct a risk / benefit analysis. A country that has a primary deficit, i.e. a budget deficit before paying interest expenses, faces the challenge that such deficit would be eliminated overnight (because the deficit could no longer be funded), causing a massive shock to the economy as government spending would come to an abrupt halt.

U.C. Davis Officers Put On Leave After Pepper Spraying Protestors (jdargis)

Meanwhile, students and others affiliated with the Occupy U.C. Davis movement planned for a Monday-afternoon protest on campus. AFacebook page for the protest asked attendees to call for Ms. Katehi’s resignation and to “show solidarity and support to the students who were beaten and sprayed by U.C. Davis police in riot gear.”

We Are The One Per Cent (humor, jdargis)

Perhaps you are wondering what our cause is. Perhaps you’re wondering why we, the richest people on the planet, have come together. Perhaps you’re curious whether what we’re undertaking couldn’t technically be called a vacation. These are all good questions.

We’re angry. We’re angry at something we’re calling “imagined frustration.” By this we mean that, except for Congress, the White House, banks, major lobbyists, and the editorial boards of Fox News and the Wall Street Journal, no one is listening to us. And we’re tired of it.

Paying Students To Quit Law School (jdargis)

In addition to reporting average results, schools should disaggregate data to avoid misleading applicants at greatest risk of failure. For example, how did previous applicants with low entering test scores and college grades fare after graduation? Anyone who starts law school with less than a 50 percent chance of passing the bar within three years of graduation should be required to sign a special waiver that he has been informed about the riskiness of his education investment. Warning high-risk applicants before they matriculate helps them protect themselves and reduces the government’s risk of unpaid loans in the future.

Environment

Taking It To The Streets (jdargis)

It seemed a moment when, literally, a line had to be drawn in the sand. Crossing it, environmentalists believed, meant entering a more perilous phase of “extreme energy.” The tar sands’ oil deposits may be a treasure trove second in value only to Saudi Arabia’s, and the pipeline, as McKibben saw it, posed a powerful test of America’s resolve to develop cleaner sources of energy, as Barack Obama had promised to do in the 2008 campaign.

Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."

4 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4066
thc0655's picture
thc0655
Status: Diamond Member (Offline)
Joined: Apr 27 2010
Posts: 1517
NJ police cuts

Recent police layoffs in NJ cities have begun to have the expected effects: crime is creeping up and promises to get worse.  In the face of this, it's still amazing to me 1) how many people deny it's happening, and 2) how many people refuse to take personal responsibility for their own safety (and instead trust in luck).

http://www.philly.com/philly/news/local/20111122_Police_cuts_in_N_J__cit...

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4066
IMF Unveils Expansion of Short-Term Emergency Lending Facility

 

"Key elements

The Precautionary and Liquidity Line: " Qualification criteria remain the same as under the PCL, except that a member can seek support when it has either a potential or actual balance of payments need at the time of approval of the arrangement (rather than only a potential need, as was required under the PCL).

* Can be used as a liquidity window allowing six-month arrangements to meet short-term balance of payments needs. Access under a six-month arrangement could be as much as 250 percent of a member's quota, which could be augmented to a maximum of 500 percent in circumstances of heightened regional or global economic and financial stress.

* Can also be used under a 12 to 24-month arrangement with maximum access upon approval equal to 500 percent of a member's quota for the first year and up to 1000 percent of quota for the second year (the latter of which could also be brought forward to the first year where needed, following a Board review). As under the PCL, arrangements of these duration include Executive Board reviews every six months.

The Rapid Financing Instrument: " Broadens coverage of urgent balance of payments needs beyond those arising from natural disasters and post-conflict situations, and can also provide a framework for policy support and technical assistance.

* Funds are available immediately to the member in need upon approval with access limited to 50 percent of the member's quota annually, and to 100 percent on a cumulative basis. "

 

Zerohedge also has info/comments

KennethPollinger's picture
KennethPollinger
Status: Platinum Member (Offline)
Joined: Sep 22 2010
Posts: 653
Vision/goals for OWSers

 I thought Michael Moore's email was worthwhile.  Here it is.

 

 

Where Does Occupy Wall Street Go From Here? ...a proposal from Michael Moore

Tuesday, November 22nd, 2011

Friends,

This past weekend I participated in a four-hour meeting of Occupy Wall Street activists whose job it is to come up with the vision and goals of the movement. It was attended by 40+ people and the discussion was both inspiring and invigorating. Here is what we ended up proposing as the movement's "vision statement" to the General Assembly of Occupy Wall Street:

We Envision: [1] a truly free, democratic, and just society; [2] where we, the people, come together and solve our problems by consensus; [3] where people are encouraged to take personal and collective responsibility and participate in decision making; [4] where we learn to live in harmony and embrace principles of toleration and respect for diversity and the differing views of others; [5] where we secure the civil and human rights of all from violation by tyrannical forces and unjust governments; [6] where political and economic institutions work to benefit all, not just the privileged few; [7] where we provide full and free education to everyone, not merely to get jobs but to grow and flourish as human beings; [8] where we value human needs over monetary gain, to ensure decent standards of living without which effective democracy is impossible; [9] where we work together to protect the global environment to ensure that future generations will have safe and clean air, water and food supplies, and will be able to enjoy the beauty and bounty of nature that past generations have enjoyed.

The next step will be to develop a specific list of goals and demands. As one of the millions of people who are participating in the Occupy Wall Street movement, I would like to respectfully offer my suggestions of what we can all get behind now to wrestle the control of our country out of the hands of the 1% and place it squarely with the 99% majority.

Here is what I will propose to the General Assembly of Occupy Wall Street:

 

10 Things We Want
A Proposal for Occupy Wall Street
Submitted by Michael Moore

 

1. Eradicate the Bush tax cuts for the rich and institute new taxes on the wealthiest Americans and on corporations, including a tax on all trading on Wall Street (where they currently pay 0%).

2. Assess a penalty tax on any corporation that moves American jobs to other countries when that company is already making profits in America. Our jobs are the most important national treasure and they cannot be removed from the country simply because someone wants to make more money.

3. Require that all Americans pay the same Social Security tax on all of their earnings (normally, the middle class pays about 6% of their income to Social Security; someone making $1 million a year pays about 0.6% (or 90% less than the average person). This law would simply make the rich pay what everyone else pays.

4. Reinstate the Glass-Steagall Act, placing serious regulations on how business is conducted by Wall Street and the banks.

5. Investigate the Crash of 2008, and bring to justice those who committed any crimes.

6. Reorder our nation's spending priorities (including the ending of all foreign wars and their cost of over $2 billion a week). This will re-open libraries, reinstate band and art and civics classes in our schools, fix our roads and bridges and infrastructure, wire the entire country for 21st century internet, and support scientific research that improves our lives.

7. Join the rest of the free world and create a single-payer, free and universal health care system that covers all Americans all of the time.

8. Immediately reduce carbon emissions that are destroying the planet and discover ways to live without the oil that will be depleted and gone by the end of this century.

9. Require corporations with more than 10,000 employees to restructure their board of directors so that 50% of its members are elected by the company’s workers. We can never have a real democracy as long as most people have no say in what happens at the place they spend most of their time: their job. (For any U.S. businesspeople freaking out at this idea because you think workers can't run a successful company: Germany has a law like this and it has helped to make Germany the world’s leading manufacturing exporter.)

10. We, the people, must pass three constitutional amendments that will go a long way toward fixing the core problems we now have. These include:

a) A constitutional amendment that fixes our broken electoral system by 1) completely removing campaign contributions from the political process; 2) requiring all elections to be publicly financed; 3) moving election day to the weekend to increase voter turnout; 4) making all Americans registered voters at the moment of their birth; 5) banning computerized voting and requiring that all elections take place on paper ballots.

b) A constitutional amendment declaring that corporations are not people and do not have the constitutional rights of citizens. This amendment should also state that the interests of the general public and society must always come before the interests of corporations.

c) A constitutional amendment that will act as a "second bill of rights" as proposed by President Frankin D. Roosevelt: that every American has a human right to employment, to health care, to a free and full education, to breathe clean air, drink clean water and eat safe food, and to be cared for with dignity and respect in their old age.

Let me know what you think. Occupy Wall Street enjoys the support of millions. It is a movement that cannot be stopped. Become part of it by sharing your thoughts with me or online (at OccupyWallSt.org). Get involved in (or start!) your own local Occupy movement. Make some noise. You don't have to pitch a tent in lower Manhattan to be an Occupier. You are one just by saying you are. This movement has no singular leader or spokesperson; every participant is a leader in their neighborhood, their school, their place of work. Each of you is a spokesperson to those whom you encounter. There are no dues to pay, no permission to seek in order to create an action.

We are but ten weeks old, yet we have already changed the national conversation. This is our moment, the one we've been hoping for, waiting for. If it's going to happen it has to happen now. Don't sit this one out. This is the real deal. This is it.

Have a happy Thanksgiving!

Yours,
Michael Moore
[email protected]
@MMFlint
MichaelMoore.com 

 

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