Are there no prisons? Are there no workhouses?

You’ll be happy to hear, Mr. Scrooge, that in America today, they are thriving and profitable. We are incarcerating more people than any nation on earth.  PROFIT has helped to make imprisoning people a Wall Street-worthy venture. Our huge profits gained by detaining and “hiring out” the poor, people of color, and the disadvantaged, would make you proud.

There are many problems with our criminal justice system, including exaggerated minimum sentence requirements for nonviolent crimes—especially those that are drug-related, and taking judges out of the sentencing loop. The U.S. Senate has announced that it is working on some of these things.  But as Shane Bauer from MotherJones  points out:  “To begin with, the bill only affects the federal justice system. For truly national criminal-justice or prison reform, each state would have to pass its own bill. Federal inmates represent just 13 percent of our national prison population. (If you count jail populations, federal prisoners are just 9 percent of all Americans behind bars.) Even if we let all inmates out of federal lockups tomorrow, we would still have more people behind bars than any other country in the world.”

Base Photo credit:http://thedonovan.com/archives/2009/02/arbeit_macht_fr.html
Base Photo credit: http://thedonovan.com/archives/2009/02/arbeit_macht_fr.html

Prisons for profit.

The so-called Prison Industrial Complex,  According to Vicky Pelaez at Global Research, “Prison labor has its roots in slavery. After the 1861-1865 Civil War, a system of “hiring out prisoners” was introduced in order to continue the slavery tradition. Freed slaves were charged with not carrying out their sharecropping commitments (cultivating someone else’s land in exchange for part of the harvest) or petty thievery – which were almost never proven – and were then “hired out” for cotton picking, working in mines and building railroads.” And MS Pelaez goes on to say that the practice is alive and well now.  “At least 37 states have legalized the contracting of prison labor by private corporations that mount their operations inside state prisons. The list of such companies contains the cream of U.S. corporate society: IBM, Boeing, Motorola, Microsoft, AT&T, Wireless, Texas Instrument, Dell, Compaq, Honeywell, Hewlett-Packard, Nortel, Lucent Technologies, 3Com, Intel, Northern Telecom, TWA, Nordstrom’s, Revlon, Macy’s, Pierre Cardin, Target Stores, and many more. All of these businesses are excited about the economic boom generation by prison labor. Just between 1980 and 1994, profits went up from $392 million to $1.31 billion.”

Graphic credit: http://capitalandmain.com/latest-news/issues/labor-and-economy/states-are-regretting-prisons-for-profit/
Graphic credit: http://capitalandmain.com/latest-news/issues/labor-and-economy/states-are-regretting-prisons-for-profit/

Private prisons made their debut in the 1980s and have since become a Wall Street favorite. Industry leaders, GEO Group, and CCA make their money in a couple of different ways; one is charging the government a daily bed rate for each prisoner housed—many have minimum occupancy rates—the city, county, state or federal agencies pay the company even if the allotted beds are not occupied. Another money maker is “hiring out” inmates to corporations, with inmates being paid as little as 17 cents per hour. and according to JusticePolicy.org  these private prisons have been “gaming the system.”

Sen. Bernie Sanders, a Presidential candidate, recently quoted in Common Dreams

“The prison industry is highly profitable. The two biggest prison corporations in the country made $3.3 billion in 2012 — profiting from government payments and prison laborers, who were forced to work for pennies on behalf of companies like Boeing and McDonald’s.

With so much money at stake, it’s not surprising that the for-profit prison industry is corrupting our political process. According to National Institute on Money in Politics just one such company, the GEO Group, has given more than $6 million to Republican, Democratic, and independent candidates over the past 13 years.”

Nicole Gaudiano  reporting on  Senator Sanders and cosponsor of, The Justice Is Not For Sale Act,  Keith Ellison of Minnesota, for  USAToday, provided the following quotes:

Senator Sanders: “The profit motivation of private companies running prisons works at cross purposes with the goals of criminal justice,” Sanders said. “Criminal justice and public safety are without a doubt the responsibility of the citizens of our country, not private corporations. They should be carried out by those who answer to voters, not those who answer to investors.”

And Rep. Keith Ellison of Minnesota: “The private-prison industry spends millions each year lobbying for harsher sentencing laws and immigration policies that serve its bottom line. “Incarceration should be about rehabilitation and public safety, not profit,” 

Profit motivation in our prisons and holding facilities can do nothing but promote corruption and abuse of our already broken criminal justice system. Tell your congressman/senator to support the Justice Is Not For Sale Act.

© Stephen Lance and corruptingcoin.org, 2015

A Political/Economic revolution is more than simply electing Bernie.

Bernie1
Sen. Bernie Sanders, I-Vermont. PHOTO BY JANA BIRCHUM

The need for a political and economic revolution has never been clearer. To make America work for everyone and not just the rich few, many things need to change. As Bernie Sanders has said many times, no president can do it by him or herself. The change has to come from we the people: up from the streets, factories, farms, and classrooms.  When Bernie becomes president, the forces of the richest will be enlisting their vast resources to stop him. He will need everyone’s help. The polls and common knowledge show that the vast majority of voters—and non-voters for that matter– agree with most of Bernie’s plans and policies, but feel powerless against the big money machine.

How do you eat an elephant?

One bite at a time. You may not have the skills and/or passion to fight for Bernie’s entire platform, but there is probably at least one issue for which you can be an activist. For example: Glass-Stegall. You may feel you do not know enough and/or have the energy to fight the whole financial system; but you do understand the importance of, and care enough about, separating the gambling side of a bank from the commercial side. That issue can be your part of the political/economic revolution. Join with other Glass-Stigallites—Elizabeth Warren—and solve this very specific problem. You make it happen, President Sanders signs it in to law.


Bricktivisim

wall7A writing class was shown a photograph of a huge mansion on a beautiful country estate and asked to make up a story. A student having trouble getting started asked for advice; the instructor pointed to a single brick on the face of the building and said, ”Write about this brick.”

Become an activist for the brick. Find that something you can sink your teeth into, then research it. Become a subject matter expert. Advocate for your chosen brick. Show the importance/relevance of your brick to the larger picture. And share your Bricktivisim with the campaign.

Every issue can be broken down into smaller more actionable items. We need to start building issue- activism now so that when President Sanders says, “We need all public colleges to be tuition free,” we have organized, subject matter experts to support him and to demonstrate how to accomplish the task.

We get Bernie into the White House, and then the real work begins.

© Stephen Lance and corruptingcoin.org, 2015

Olijerks, Mercenaries, and Changing Our Calculus

Back in April, President Obama announced sanctions on a handful of rich Russian men and corporations so as to “change the calculus” of the Russian president with respect to his engagement with the unrest in Ukraine. Some of us remember the days when the US president would just call in the Russian ambassador and ask “What the hell is your boss thinking?” And the Russian president, in turn, would call in the US ambassador and say “We have the right to protect our Russian speakers, and you should remind your president that we still have nukes.” And in the traditional fashion, the two head boys with their number two’s could continue pissing on fence posts until the boundaries were established.

It seems that those days have gone the way of representative democracy in this age of oligarchs. It is now considered the best foreign-policy strategy to go after the rich cronies of the targeted foreign head of state hoping that these powerbrokers will pressure their “leader” to do our bidding. (Extortion?)

 Unrest in your Country? The Olijerks are lining up to help you. photo credit: http://littleacornpoker.blogspot.com/2011/09/monthly-stats-and-little-flo.html

Unrest in your Country? The Olijerks are lining up to help. 
photocredit: http://littleacornpoker.blogspot.com/2011/09/monthly-stats-and-little-flo.html

 

 

 

Oligarchy means rule by the few and plutocracy means rule by the rich. It is safe to say that the few can’t possibly rule if they’re not rich. On the other hand, a person could be a member of a small group of extremely wealthy people with no desire to rule, so we should be specific, maybe even have a name for small groups of rich people/corporations that want to rule. (Okay, okay, let’s make that a name you can say on radio and TV.) Corruptingcoin has a suggestion: Olijerks.

 

Ol.i.jerk    O lee jerk

n.

A member of a small group of rich jerks that wield undue influence over a government, its departments, divisions, and/or agencies.

Olijerks and Mercenaries

Not all Olijerks hire mercenaries to facilitate their desire to rule, but it is clear that all mercenaries are employed by Olijerks. An American example of an Olijerks’ army is Blackwater — it has changed its name several times recently, but it’s still the same animal — a paramilitary, well-trained, well-armed, well-funded and thanks to its Olijerk patrons, well connected to the US government.

Back to Russia, Putin, and Ukraine

President Putin has repeatedly insisted that there are no Russian troops in Ukraine. That could be true. — We haven’t announced sanctions on the Russian army or the Russian government — it could be that Eastern Ukraine is being invaded by a Russian Blackwater. The idea that Olijerks from major world powers would field teams of mercenaries is just the tip of the iceberg. Get out a map, and put your hand down covering everything from Ukraine to Iraq —resist the temptation to press really hard — and in the area you’ve covered, there are a multitude of private contractors that, when combined, have greater resources than the national armies of their respective countries. We are not talking about a handful of mercenary teams engaging in a local fight, we are talking March Madness, everybody fighting to get into the final four. These teams do not exist in a vacuum.  No Olijerks = No Blackwaters.

Why would there be so many private armies? Simple answer: Olijerks – rich people who want to rule. Money and power. Who profits from war? The list is long and distinguished, but it’s safe to say not one of them is poor.

calculus chart1War is profitable. If an Olijerk can provide products or services that are needed to conduct a war, meet the needs of a war zone, and/or promote the next “must-have” conflict, He is going to make a lot of money. (He probably won’t buy blankets for the poor with the profits.) The Olijerk thing to do, to stay ahead of his competitors, is to canvas the world looking for potential wars (read markets). Places where a profitable war can be encouraged. “Hey Mr. Hatfield, I hear that the McCoy boy is buying some pitchforks with your name on them.” As long as war is profitable, the Olijerks that profit from war will promote war. It’s not personal it’s just business.

 

Religious extremism is frequently blamed for modern armed conflicts. Tell me if you’ve heard this one. Okay so two opposing religious extremists walk into a bar, or better yet how many cruise missiles do you need to make a bar fight into a jihad? (For the business majors, the right answer is as many as you have that are near or past their “best used by date.”) Yes people fight. We fight about everything including religion, but to make war it takes organization, planning, command-and-control, and funding. It takes money that wants to rule.  Nation states and/or Olijerks.

photo credit: http://www.washingtontimes.com/news/2014/aug/24/islamic-state-employs-brutality-threats-in-effort-/?page=all Text from Princes Bride
photo credit: http://www.washingtontimes.com/news/2014/aug/24/islamic-state-employs-brutality-threats-in-effort-/?page=all
Text from Princes Bride

ISIS is an Arabic expression that means “jihad my ass, show me the money!” They kill everybody that disagrees with them, not from a religious conviction, but simply to make it easier to control the population. And like their Colombian drug cartel counterparts they cut off heads to intimidate. We know they can’t exist without Olijerks, so who do you suspect? Who profits? Time for some pencil and paper detective work.

 

Make a list of all the people/corporations that profit from current armed conflicts — for simplicity start with the Ukraine – Iraq section of the map that you covered with your hand (you did do that didn’t you?) Once you have a pretty good list going, separate those entities that profit from what’s happening in Ukraine, from those whose profits come from the action in Iraq, and again those that profit from the conflict in Syria etc. Score each Olijerk by the number of times they appear on different lists, crosscheck the list of names of people with the list of corporations — there will likely be overlap – then take the top scorers and dig deeper (Corporations that own or partner with other corporations and their top people etc.) . Beware of any references that suggest a nation state is a supplier or provider, there is almost always an Olijerk hiding under the state’s skirts.

Now just like the TV detectives, put all of your suspects on a whiteboard write “Promoters of War” at the top and draw in the connections — and/or buy a glue stick and a deck of cards.

Sanctions of the Russians? Bombs on the Islamists?  Weapons and training for the moderate anti-al-Assad’s forces? We might consider changing our Calculus.

© Stephen Lance and corruptingcoin.org, 2014

BlackSanto: A Special Operations Agricultural Company

If those Roundup-created super weeds are overwhelming your crops fear not: Monsanto now has the services of special mercenaries formally known as Blackwater who can come to you 24/7 to convince you and your family that more pesticide is in your best interest.

The only way you could make the reputations of bad actors like Monsanto and Blackwater worse is to blend them — or is it actually genetic modification? If you combine their resumes, the resultant BlackSanto would truly qualify as an evil empire.

http://tvtropes.org/pmwiki/pmwiki.php/Main/PrivateMilitaryContractors
http://tvtropes.org/pmwiki/pmwiki.php/Main/PrivateMilitaryContractors

From Jeremy Scahill — The NationThrough Total Intelligence and the Terrorism Research Center, Blackwater also did business with a range of multinational corporations. According to internal Total Intelligence communications, biotech giant Monsanto—the world’s largest supplier of genetically modified seeds—hired the firm in 2008–09. The relationship between the two companies appears to have been solidified in January 2008 when Total Intelligence chair Cofer Black traveled to Zurich to meet with Kevin Wilson, Monsanto’s security manager for global issues. 

After the meeting in Zurich, Black sent an e-mail to other Blackwater executives, including to Prince and Prado at their Blackwater e-mail addresses. Black wrote that Wilson “understands that we can span collection from internet, to reach out, to boots on the ground on legit basis protecting the Monsanto [brand] name…. Ahead of the curve info and insight/heads up is what he is looking for.” Black added that Total Intelligence “would develop into acting as intel arm of Monsanto.” Black also noted that Monsanto was concerned about animal rights activists and that they discussed how Blackwater “could have our person(s) actually join [activist] group(s) legally.” Black wrote that initial payments to Total Intelligence would be paid out of Monsanto’s “generous protection budget” but would eventually become a line item in the company’s annual budget. He estimated the potential payments to Total Intelligence at between $100,000 and $500,000. According to documents, Monsanto paid Total Intelligence $127,000 in 2008 and $105,000 in 2009.

 http://static.comicvine.com/uploads/original/3/34310/1113758-ds2.jpg +text
http://static.comicvine.com/uploads/original/3/34310/1113758-ds2.jpg +text

Blackwater and its shell companies are the single largest security/intelligence private contractor in the United States and have become a “Virtual extension of the CIA” In the words of Blackwater’s founder Erik Prince:

“Blackwater’s work with the CIA began when we provided specialized instructors and facilities that the Agency lacked,” Prince told the Daily Beast. “In the years that followed, the company became a virtual extension of the CIA because we were asked time and again to carry out dangerous missions, which the agency either could not or would not do in-house.

The United States Supreme Court says that both Monsanto and Blackwater are natural persons. Don’t be surprised if these two people — with the help of the Gates foundation — try to change their designation from natural persons to sovereign nation. Maybe even known as BlackSanto.

© Stephen Lance and corruptingcoin.org, 2013.

TPP: Replacing constitutions with corporate profits.

The Transpacific Partnership will do for America — and its cosigning partner countries — what the WTO and NAFTA couldn’t quite complete: replace national sovereignty with corporate governance. And it’s being done in secret.

From Margaret Flowers and Kevin ZeeseTruthout:

Former US Trade Representative Ron Kirk, who now has a lucrative job in the private sector advising transnational corporations for the law firm Gibson Dunn, said that if people knew what was in the TPP, there would be no way to get it signed into law. As he told one interviewer, if the text were made public negotiators would be walking away from the negotiations because they would be very unpopular.

Photo credit: public citizen
Photo credit:
public citizen

The new US Trade Representative, Obama’s classmate Michael Froman who worked at CitiGroup, and the more than 600 corporate advisers involved in writing the TPP, have direct access to the text of the treaty, but members of Congress have only limited access and the public and media are excluded. Recent calls for transparency by members of Congress have been denied, so the extent of what we know comes from leaks.

The documents are classified! Forget the NSAs prying into our texts (sexts?) The TTP is going to subject US law to foreign corporations. Under TPP, US or local laws related to labor, healthcare, and/or the environment will be subject to modification or elimination by a foreign corporation if that corporation states that the local law or policy interferes with their future profits.

From Sam KnightTruthout: 

 TPP critic and Public Citizen trade lawyer Lori Wallach wrote in The Nation last year, “Trade Representative Kirk noted that after the release of the Free Trade Area of the Americas (FTAA) text in 2001, that deal could not be completed. In other words, the official in charge of the TPP says the only way to complete the deal is to keep it secret from the people who would have to live with the results.”

Photo Credit: baltimorepostexaminer.com/
Photo Credit: baltimorepostexaminer.com/

Does the level of secrecy surrounding these negotiations portend the scale of oppression our corporate overlords have in mind for us? How bad does it have to be for the 1% to feel the need to hide their plans from the most sold out, corporate-compliant legislative body in the world?

In our race-to-the-bottom, we don’t need the Transpacific Partnership. There are movements working to Flush the TPP.

We better start flushing now.

© Stephen Lance and corruptingcoin.org, 2013.

The B TEAM …pity da fool!

 

Finally we have a group of business people who want business to be business rather than criminal organizations calling themselves businesses. They call themselves the B team — not another TVs A team but a group of global business leaders offering a plan B for business the world over. The B team offers a new business model prioritizing people and planet alongside profit — maybe they should have called themselves 3-P, or the triple P team.

According to co-founder Jochen Zeitz, The B team will help to catalyze a shift away from the existing short-term, unsustainable mindset, towards the long term interest of people, the planet and the wider economy. Tackling these three challenges is a starting point for a “Plan B” to form.

http://www.heyuguys.co.uk/images/2010/03/A-Team-Poster-Quad.jpg
http://www.heyuguys.co.uk/images/2010/03/A-Team-Poster-Quad.jpg

The B team is bound to meet resistance from our crony capitalist A team, whose slogan seems to be It’s not personal, it’s just business.

It may be common to think that people who speak out against the great dangers and abuses of crony capitalism are anti-business. The reality is that business, and criminal behavior like racketeering, are distinctly different animals.

 

 

A business provides goods and/or services and after paying all expenses like rent, utilities, supplies, labor, marketing/advertising, insurance and taxes, makes a profit for its owners.

A criminal enterprise on the other hand, begins with the decision to get money. Then, the business plan for this enterprise is to get as much money as fast as possible with little concern for the consequences or the method.

For an enterprise to be a valid business, it has to meet the standard of People, Planet and Profit. Providing goods and/or services while paying its way. An enterprise that uses slaves for labor is not a business. An enterprise that cheats its suppliers is not a business. An enterprise that doesn’t pay its taxes is not a business. An enterprise that degrades the environment is not a business.

Corporations frequently complain that regulations and labor unions and taxes make it impossible for them to do business. If an enterprise cannot make a profit after paying employees a living wage, suppliers a fair price for their goods and/or services, and a fair share of taxes, that enterprise is not a business. If the entity’s chief officers and shareholders are sharing money that is rightfully owed to employees, suppliers, and/or public taxing entities, the enterprise is criminal in nature.

How many banks must one man rob, before he is given the keys? — Sung to the tune of Blowing in the wind.

Recently heads of some large corporations asserted that it is not their fault that their multibillion-dollar profits were not taxed properly. They rightly claim that their first duty is to the Corporation and its shareholders and that many of them are in complete compliance with current tax laws. But they fail to mention that they pay decision-makers to have the laws written specifically to benefit them.

The United States Supreme Court says it is unconstitutional to prevent huge multinational corporations from buying US law — after all money is speech.

The CEO is bound by his fiduciary responsibility to provide an ever increasing — can you say unsustainable — dividend for the Corporation’s shareholders. The rules of engagement are simple: Whatever it takes. Working men and women are just a commodity called labor, the cost of which must be dramatically reduced. Suppliers are pressured to continually reduce their prices which in turn encourages them to compromise their business practices. The extractive and transportation industries add destruction of the environment and the planet itself to this list of corrupt behaviors.

The big banks and big insurance companies are easy-to-spot criminal enterprises. They get huge quantities of taxpayer money from the Fed by threatening to trash the economy — too big to fail. They are easy racketeering cases, but since they own the people who make the laws they are not in any danger.

http://www.businessandleadership.com/leadership/item/41463-sir-richard-branson-and-joc
http://www.businessandleadership.com/leadership/item/41463-sir-richard-branson-and-joc

 

Mr. T, please step away from the economy. Mr. Z, Sir O, and the rest of the B team have you surrounded. The Future Bottom Line will expand corporate accountability beyond financial gains to include negative and positive contributions to the economy, environment and society.

 

The enterprise that cannot prioritize people and the planet alongside profit is not a valid business; it is displaying criminal behavior. If corporations are people, a lot more of them should be in jail.

It’s not personal it’s just business.

 

© Stephen Lance and corruptingcoin.org, 2013.

Nationalize Our Military, part 2: Mercenaries

In Nationalize Our Military —Introduction, we talked about how privatizing aspects of our military has engendered a war-for-profit culture and has turned the once-proud defense establishment into terrifying thugs whose job it is to enforce the will of the corporate mafias on all of the peoples of the world.

In this segment we’ll talk about what are called private military companies, or private security companies, or as they call themselves, The Circuit. These descriptions/titles are simple camouflage for the fact that the US government hires mercenaries: soldiers for profit otherwise known as soldiers of fortune, hired guns, or according to United Nations Mercenary Convention, unlawful combatants.

brcartoonHiring mercenaries is deemed illegal by the United Nations, so we just call them something different and vehemently deny that we’re doing anything illegal. This behavior, akin to a man on trial for bank robbery claiming to be a “weapons-assisted withdrawal technician” and therefore technically not a bank robber, is a disingenuous — slimy is actually a better word — stance for a world power, especially one that professes to promote democracy.

Mercenaries operate on every continent but Antarctica, in the 1990s there used to be 50 US military personnel for every 1 contractor; now the ratio is 10 to 1.

Though it is common for these “security contractors” to have formal military training and experience, they swear no allegiance to any country or entity and are prepared to kill for money. These gunmen are frequently organized as small units like military squads, and they go about their operations unfettered by the military’s Uniform Code of Military Justice (UCMJ).

We in America are used to seeing private armed guards, including teams of armed guards, such as in and around banks and armored cars, and in the lobbies of large office buildings that contain valuables such as precious metals and jewels. Even a few very rich private individuals choose to secure their estates with armed private security. But these contracts are not paid for by our country’s taxpayers. These private security companies are paid with private dollars, from the private enterprise that uses their services.

In that context, if Exxon, General Electric, Halliburton, or Monsanto wish to hire armed private security for their operations in developing countries, that is their business. The cost of such a force should be entirely the responsibility of the private enterprise involved. If the enterprise and/or its armed force get in trouble with the local authorities, the conflict should be theirs to solve alone and should not become an item of “American interest” requiring the assistance and/or resources of the US military.

https://www.sofmag.com/store/january-2010
https://www.sofmag.com/store/january-2010

Official US government entities that require security should be protected by US military and intelligence units. United States embassies should be guarded by United States Marines, not the likes of Blackwater. Intermingling mercenaries and valid government military or police operations both promotes war-for-profit and undermines the integrity of the United States Military.

Our national intelligence establishment is similarly compromised by intelligence-for-hire entities who are trusted with the most sensitive national security information. According to a 2008 study by the office of the Director of National Intelligence, private contractors make up 29% of the workforce in the United States Intelligence Community and the cost equivalent of 49% of their personnel budgets.

Private corporations have no loyalty except to themselves. To have them intermingled with official US government entities especially with military and intelligence operations promotes war-for-profit, demeans the integrity of US government military and intelligence entities, costs the taxpayers hundreds of billions of dollars a year, and undermines the security of the United States of America.

We ask again: Would it be considered too socialist to Nationalize our Military?

 

© Stephen Lance and corruptingcoin.org, 2013.

Megacats Buffet Derivatives

Earthquakes, hurricanes, fires, and floods — plus the occasional terrorist act — are what Warren Buffett has called mega-catastrophes or for short, megacats. The context is Mr. Buffett’s report to Berkshire Hathaway Inc. in 2002.  He points out over several pages how dangerous he and Charles T Monger (Vice Chairman of Brookshire’s Board of Directors) believe our current derivatives market is to business and the community at large. Here is a small sample of pertinent quotes from that document:

http://incolo.com/warren-buffet-outlook-on-the-real-estate-market/
http://incolo.com/warren-buffet-outlook-on-the-real-estate-market/

Charlie and I are of one mind in how we feel about derivatives and the trading activities that go with them: we view them as time bombs, both for the parties that deal in them and the economic system.

 

… The derivatives business continues to expand unchecked. Central banks and governments have so far found no effective way to control, or even monitor, the risk posed by these contracts.

In our view however, derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal.

What is it that this billionaire sees as such a big risk? Derivatives trading.

Another corruptingcoin definition: derivatives trading: a legal way to gamble with other people’s money (for other definitions look up “derivatives” on the Internet).

To paint a picture, let’s go to the race track. There are lots of possibilities. We could bet on a certain horse to win, a certain horse to place, the order in which the horses cross the finish line, and/or any number of things that are supposedly unknown before the starting gun.

So we go to the ticket window and say “we want to bet a hundred on Oil Slick at 5 to 1 to win in the third.” And hand the cashier a dime. When the cashier tells us that we can’t make a $100 bet with a dime, we just tell him that when we win we’ll have more than enough to pay the hundred dollars. — And offer him a nice tip if he plays along — then we remind him that we not only own Oil Slick, but the track itself and six of the other horses racing.

If we win we make $500. If we lose we lose $.10. The cashier is an unsecured creditor and has no legal means to recoup his money.

Okay now let’s kick it up a notch: We are like a J.P. Morgan Chase. We go to the derivatives window and say, “We want to bet $1 billion that the price of oil will drop at least 5% by November.” When the trader asks how we want to back that bet, we will just smile and say, “We are like, J.P. Morgan Chase. Questions?” (All references to JPM, Chase and/or JP Morgan Chase are for purposes of simile only and should not taken as an accurate reflection of the bank’s actual behaviors, which are certainly much more egregious.)

Now our Chase-like bank is exposed to the tune of $1 billion. We would be right to expect that the bank would be motivated to ensure that the price of oil drops. A couple well-placed calls to the petroleum industry, and suddenly we’re awash — temporarily — in cheap gasoline, and it’s champagne and bonuses all around at the trader’s office and the top management of our bank.

http://www.brooklyneagle.com/articles/bloody-monday-jp-morgan-chase-kills-500-jobs-metrotech
http://www.brooklyneagle.com/articles/bloody-monday-jp-morgan-chase-kills-500-jobs-metrotech

Whoa there Oil Slick! Israel gets a wild hair and blows up the oil fields of Saudi Arabia and a freak blizzard stops 90% of Canadian oil from moving. The megacat has raised its ugly head. Now the price of oil is higher in November. Now our Chase-like bank owes $1 billion — to other rich gamblers — and it falls to the shareholders to pay.

 

 

A note here: At no time do any of the winnings from these derivatives bets trickle down below the top 10%. Derivative gains are rich people’s gains.

It gets worse.

In the scenario above when the bank lost a billion dollars, it was well within the bank’s assets to pay for the bad bet. The shareholders, grumpy though they may be, are able to meet that loss. The current reality is different.

This one bank, J.P. Morgan Chase, has a derivative exposure of over $70 trillion — roughly the size of the entire world’s economy. Now, they are likely to win most of these bets for the reasons cited above, but what happens if a couple of those megacats come slinking in?

Derivatives always get paid. Our bank deposits are not safe.

Cyprus was not a fluke, or a one-off. Under both the Dodd-Frank Act and the 2005 Bankruptcy Act, derivative claims have super-priority over all other claims secured and unsecured, insured and uninsured. The FDIC was set up to ensure the safety of deposits. The FDIC insurance fund has $25 billion in it. That is not going to go very far against a $70 trillion debt.

JPM is just one bank. The derivatives exposure of the top nine banks is over 228 trillion, or over $32,000 for every man woman and child on the planet. If the big banks win those bets, they will make huge amounts of money. If they lose those bets, we will lose a lot of money.

In classic fashion, it’s not a question of if, it’s a question of when the derivatives bubble bursts.

It’s time to put our money in credit unions and elect a real government of the people.

 

© Stephen Lance and corruptingcoin.org, 2013.

Invasion of the Unpeople!

What we need is a good old-fashioned alien invasion from space. Something the people of the earth can unify around. Where all peoples, regardless of race, politics, religion or geographical location could come together and rally against a common enemy. Wage a very American us-versus-them fight.

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The reality is that we already have such an enemy. The technology that the United States Supreme Court calls a “natural person.” The Corporation. If corporations were people it would be inappropriate to launch a campaign against them as a class or race. To defend ourselves from this dangerous technology posing as a human being we have to be able to unmask it, reveal its true design, its potential dangers, and find its weaknesses.

A dictionary definition of Corporation:

An association of individuals, created by law or under authority of law, having a continuous existence independent of the existences of its members, and powers and liabilities distinct from those of its members.

Some other definitions:

Corporation: An ingenious device for obtaining profit without individual responsibility.
Ambrose Bierce

A criminal is a person with predatory instincts without sufficient capital to form a corporation.
Howard Scott

Corporations are “worms in the body politic.”  Thomas Hobbes

Then of course, there is Corruptingcoin’s paraphrase of a collected historical understanding of the question:

The Corporation is a technology designed to maximize and privatize all profits while simultaneously socializing and minimizing all losses; having no soul to save, no ass to kick, and no body to imprison is dangerous and predatory by design and so must be constantly monitored and controlled.

Corporations are different: “Having a continuous existence independent of the existences of its members,” natural persons do not live forever. To facilitate the us-versus-them orientation let’s call this technology the Unpeople. These Unpeople have no feelings, no conscience, no sense of fairness and are genetically wired to gain at all costs, to replicate at ever-increasing rates, and defend themselves with all violence against anyone or anything that would slow this process. A process the Unpeople call growth.

Conservationist Wendell Berry is one of many voices on the subject:

The great, greedy, indifferent national and international economy is killing rural America, just as it is killing American cities… Experience has shown that there is no use in appealing to this economy for mercy toward the earth or toward any human community. All true patriots must find ways of opposing it.

All true patriots must!… Sounds like a call to revolution. But revolution against whom: The government? The Unpeople? The need here is to take the fight to the combination: A government that is of, by, and for the Unpeople.

The first thing we need to do is separate the government and the Unpeople — akin to separating a cancer from the tissues it’s invading — we need to be able to see each entity separately in order to treat them appropriately. This process will be extremely difficult but is absolutely necessary.

Our government is supposed to be representative. Representatives of the governed convene to meet the needs of the nation. Any representative contaminated by the spores of the Unpeople will not only be an unreliable representative of the people but will likely contaminate others. Representatives of the governed need to be isolated from the Unpeople.

The old adage, sunshine is the best disinfectant, is quite applicable here. We don’t have to crawl into their bedrooms to see who our representatives are sleeping with.

Anyone who has been a public servant in the United States has sworn an oath to defend the Constitution of United States against all enemies foreign and domestic… As a citizen sometimes that means protecting from violence, even the person you believe to be the epitome of evil, because they are an elected official — a representative of the people — even though their actions may speak otherwise. There are appropriate and effective ways to ensure that representatives of the people, represent the people.

The people of the United States have sworn no such oath to the Unpeople. These are soulless technologies that are enslaving us, poisoning our children, destroying our planet, spreading disease and destruction wherever they go in the name of gain and power. We the people have no obligation but to stop them.

Corporations are not people. It’s us or them.

© Stephen Lance and corruptingcoin.org, 2013.

We’re here to tell you what you can do do with your austerity

When Portland Mayor Charlie, “Scissorhands” Hales, declared there was a $21 million hole in the city’s general fund and turned to his department heads chanting “cut cut-cut-cut-cut-cut-cut”, he was interrupted by over 400 citizens channeling Margaret Mead: “indeed, it’s the only thing that ever has.” “The only thing that ever has.” “The only thing that ever has.” Indeed, a small group of thoughtful, committed citizens were attempting to change the world — okay, so only the city of Portland.

A truth-out article written by Mark Vorpahl, records that small group of thoughtful committed citizens calling bullshit on austerity.

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Base Photo credit: http://readywisconsin.wi.gov/lightning/images/Lightning_1.jpg

Those attending the public hearing on April 11 included representatives from the Metropolitan Youth Commission, Laborers International Local 483, Portland Community College, Portland Safety Net, SUN Schools, Eastside Action Plan, Elders in Action, AFSCME Local 189, and numerous others. They came with prepared testimonial statements, t-shirts and signs defending the programs they need.

Also attending were members of Jobs with Justice, the People’s Budget Project, and the Solidarity Against Austerity Committee (SAAC). These groups saw the hearing as an opportunity to begin building unity among Portland’s working class communities to oppose all cuts.

To make it worse for old Scissorhands, the group brought along a Portland State University economist, Prof. Robin Hahnel who calmly took them back to school.

When there is still much too much unemployment and no imminent danger of inflation, fiscal austerity is insane! Economic theory predicts it. History proves it. And any competent economist who is not in the service of the 1% will tell you as much.

When the talk turned to the city budget, it became clear that parts of the budget were akin to a physics problem. The city’s Internal Service Funds (ISF) account is apparently like that long studied entity called dark matter. We know it’s there because we can see where and how it is affecting the things around it, but nobody gets to see it. We know for instance that there is $80 million around somewhere to entice Nike to expand in Portland — maybe it comes from that $21 million hole in the budget — we should ask somebody.

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Basic Graphic credit: http://static.seton.com/media/catalog/product/Water-Safety-Signs-59398-ba.gif

 

“We do not have a comment on the $80 million and probably shouldn’t,” said Dana Haynes, Hales’ spokesman, citing Hales’ nondisclosure agreement with Nike.

Swoosh…

If we are going to drown crony capitalism in the shallow end of the gene pool. We would do well to follow the example of community demonstrated by the people of Portland.

 

 

© Stephen Lance and corruptingcoin.org, 2013.

Shining a humorous light on money's corrupting influence over life, liberty and the pursuit of happiness.