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Demeter

(85,373 posts)
Fri Nov 2, 2012, 06:38 PM Nov 2012

Weekend Economists: It's a Jungle Out There! November 2-4,2012

&feature=related

Yes, the theme song is from the TV series "Monk" about a man with OCD, to put it mildly. But I want to emphasize the "Jungle" aspect, and the great journalist who broke into the Jungle of American Labor in 1906 and lived to tell the tale...

Upton Beall Sinclair Jr. (September 20, 1878 – December 25, 1968), was an American author and one-time candidate for governor of California who wrote close to one hundred books in many genres. He achieved popularity in the first half of the twentieth century, acquiring particular fame for his classic muckraking novel, The Jungle (1906). It exposed conditions in the U.S. meat packing industry, causing a public uproar that contributed in part to the passage a few months later of the 1906 Pure Food and Drug Act and the Meat Inspection Act. Time magazine called him "a man with every gift except humor and silence."==wikipedia

I would say that hardly anything remains of Upton's reform movement: the government FORBIDS testing for mad cow disease, and scandals about bacterial contamination proliferate while the lobbyists keep raking in the shekels and watering down the regulations. California has gone out on a limb to see if they can at least identify what they are eating: is it real or is it GMO? We shall see if the public interest prevails. And then, there's Monsanto, the home of Agent Orange, developing sneakier and more effective ways to deal with overpopulation...

Since we have entered the 21st century, some people have been going around acting like we can forget everything we learned in the 20th (never mind anything earlier!). And so the lessons of Marx, Gandhi, FDR, Rachel Carson and Upton Sinclair, among others, must be relearned again. Only this time, there is less time, fewer resources, and many more people to suffer if the wrong choices are made.

So let us review what Upton Sinclair had to say...post away!

I will be trying to commit karoshi this weekend, so any help with this thread would be greatly appreciated!
49 replies = new reply since forum marked as read
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Weekend Economists: It's a Jungle Out There! November 2-4,2012 (Original Post) Demeter Nov 2012 OP
And we are down two banks already! Demeter Nov 2012 #1
1906: Rumble over 'The Jungle' By JON BLACKWELL / The Trentonian Demeter Nov 2012 #2
Why Today’s Unemployment Report Should be Taken with a Grain of Salt By Robert Reich Demeter Nov 2012 #3
Is the Budget ‘Crisis’ History? By Dean Baker Demeter Nov 2012 #4
The Great Betrayal -- and the Cynicism of Calling It a Grand Bargain William K. Black Demeter Nov 2012 #5
Jungle, indeed Warpy Nov 2012 #6
It has to stop first, before it can be repeated. Fuddnik Nov 2012 #21
I'm here in spirit if not in the flesh Tansy_Gold Nov 2012 #7
have fun and do well! xchrom Nov 2012 #8
i made a good linguini with clams last night xchrom Nov 2012 #9
I wish I had someone to cook for me, once in a while Demeter Nov 2012 #39
Greece is governed by a corrupt clique, says Kostas Vaxevanis xchrom Nov 2012 #10
Isn't that the reason Jacqui Kennedy sought refuge there? n/t kickysnana Nov 2012 #14
She probably wanted to get away from the in-laws Demeter Nov 2012 #15
Greece flirts with tyranny and Europe looks away Ghost Dog Nov 2012 #30
Britain could thrive outside EU, suggests UK Minister Ghost Dog Nov 2012 #31
+1 xchrom Nov 2012 #32
US has added 1.1m new millionaires under Obama, says study xchrom Nov 2012 #11
And millions slipped into poverty. SHAME! Demeter Nov 2012 #18
"The 40 Richest People in the World". jtuck004 Nov 2012 #12
"... Sinclair had his novel, The Jungle, rejected by six publishers. jtuck004 Nov 2012 #13
If you care about the poor.... Demeter Nov 2012 #16
I survived my moonlighting job, just barely. Demeter Nov 2012 #17
Occupy Wall Street’s Next Move: Bailing Out the People, One at a Time Demeter Nov 2012 #19
Social Security History Upton Sinclair Demeter Nov 2012 #20
SAUCE FOR THE 1% Demeter Nov 2012 #22
I'm going for some sleep, people Demeter Nov 2012 #23
Oliver Stone: The Untold History DemReadingDU Nov 2012 #29
Chapter summaries, quotes, more bread_and_roses Nov 2012 #24
How Elizabeth Warren saved taxpayers $1 billion By Matt Stoller Demeter Nov 2012 #25
UAW Files Charges Against Romney on His Auto Bail-out Profiteering By Greg Palast Demeter Nov 2012 #26
Did the Romneys’ Auto Bailout Bonanza Violate Federal Ethics Law? By Greg Palast Demeter Nov 2012 #28
Unraveling the "Future Generations" Debt Debate By Paul Krugman Demeter Nov 2012 #27
DEAR TRADERS: The 'Biggest Political Risk' In The World Is Looking More And More Possible xchrom Nov 2012 #33
Chances of US social unrest non-negligible Ghost Dog Nov 2012 #36
+1 xchrom Nov 2012 #37
If only it were true, GD! Demeter Nov 2012 #46
Yeah, but it's just talk Demeter Nov 2012 #40
Bank Of Japan Took A Surprise Step That Could Change The Future Of Central Banks xchrom Nov 2012 #34
{spain} Too old to have a future? xchrom Nov 2012 #35
Meet the Most Indebted Man in the World xchrom Nov 2012 #38
This one made me laugh! Demeter Nov 2012 #41
Warning! Mercury going retrograde on Tuesday Demeter Nov 2012 #42
you know, I think everyone is exhausted bread_and_roses Nov 2012 #43
You won't get an argument from me about that Demeter Nov 2012 #44
you're words of wisdom - worth repeating bread_and_roses Nov 2012 #48
+++ DemReadingDU Nov 2012 #49
Upton Sinclair, Author, Dead; Crusader for Social Justice, 90: November 26, 1968 Demeter Nov 2012 #45
Here endeth my part of the thread Demeter Nov 2012 #47
 

Demeter

(85,373 posts)
1. And we are down two banks already!
Fri Nov 2, 2012, 06:43 PM
Nov 2012
Heritage Bank of Florida, Lutz, Florida, was closed today by the Florida Office of Financial Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Centennial Bank, Conway, Arkansas, to assume all of the deposits of Heritage Bank of Florida.

The three branches of Heritage Bank of Florida will reopen on Monday as branches of Centennial Bank...As of September 30, 2012, Heritage Bank of Florida had approximately $225.5 million in total assets and $223.3 million in total deposits. In addition to assuming all of the deposits of the failed bank, Centennial Bank agreed to purchase approximately $193.7 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition...The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $65.5 million. Compared to other alternatives, Centennial Bank's acquisition was the least costly resolution for the FDIC's DIF. Heritage Bank of Florida is the 48th FDIC-insured institution to fail in the nation this year, and the eighth in Florida. The last FDIC-insured institution closed in the state was First East Side Savings Bank, Tamarac, on October 19, 2012.

Citizens First National Bank, Princeton, Illinois, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Heartland Bank and Trust Company, Bloomington, Illinois, to assume all of the deposits of Citizens First National Bank.

The 21 branches of Citizens First National Bank will reopen on Saturday as branches of Heartland Bank and Trust Company...As of September 30, 2012, Citizens First National Bank had approximately $924.0 million in total assets and $869.4 million in total deposits. In addition to assuming all of the deposits of the failed bank, Heartland Bank and Trust Company agreed to purchase essentially all of the assets...The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $45.2 million. Compared to other alternatives, Heartland Bank and Trust Company's acquisition was the least costly resolution for the FDIC's DIF. Citizens First National Bank is the 49th FDIC-insured institution to fail in the nation this year, and the eighth in Illinois. The last FDIC-insured institution closed in the state was First United Bank, Crete, on September 28, 2012.
 

Demeter

(85,373 posts)
2. 1906: Rumble over 'The Jungle' By JON BLACKWELL / The Trentonian
Fri Nov 2, 2012, 06:49 PM
Nov 2012
http://www.capitalcentury.com/1906.html




Upton Sinclair was a desperately poor, young socialist hoping to remake the world when he settled down in a tarpaper shack in Princeton Township and penned his Great American Novel. He called it "The Jungle," filled it with page after page of nauseating detail he had researched about the meat-packing industry, and dropped it on an astonished nation in 1906. An instant best-seller, Sinclair's book reeked with the stink of the Chicago stockyards. He told how dead rats were shoveled into sausage-grinding machines; how bribed inspectors looked the other way when diseased cows were slaughtered for beef, and how filth and guts were swept off the floor and packaged as "potted ham."

In short, "The Jungle" did as much as any animal-rights activist of today to turn Americans into vegetarians. But it did more than that. Within months, the aroused -- and gagging -- public demanded sweeping reforms in the meat industry. President Theodore Roosevelt was sickened after reading an advance copy. He called upon Congress to pass a law establishing the Food and Drug Administration and, for the first time, setting up federal inspection standards for meat.

Sinclair, all of 28 years old, had gone overnight from literary failure to the man who took on the mighty "beef trust" -- and won. Visions of ridding America of all its capitalist evils came floating into his head. "It seemed to me that the walls of the mighty fortress of greed were on the point of cracking,” he later wrote. "It needed only one rush, and then another, and another.”
===================================================

Upton Beall Sinclair was, for all his socialist thought, the very model of the all-American kid. He grew up in New York City, the son of poor but proud parents. Barely into his teens, he became a freelancer, writing boy's adventure tales. He eventually pounded out 30,000 words of dime-novel drama every week, even while he attended City College of New York. Sinclair aspired to be a great writer of serious books, but he admitted that all his hack work led him to use too many cliches and exaggerations. Even Sinclair's biographer, William Bloodworth, said the overwrought Sinclair style can be too much to take. "It's not what I would consider great literature," said Bloodworth, the president of Augusta State University in Georgia. "There isn't much character development in his works or subtlety. What he was good at was descriptions ... of turning real-life situations into fiction."

MORE AT LINK
 

Demeter

(85,373 posts)
3. Why Today’s Unemployment Report Should be Taken with a Grain of Salt By Robert Reich
Fri Nov 2, 2012, 07:23 PM
Nov 2012
http://www.nationofchange.org/why-today-s-unemployment-report-should-be-taken-grain-salt-1351864793

Three times today I’ve been asked on media outlets about the likely effect on the presidential election of Friday’s jobs report, depending on what the Bureau of Labor Statistics announces. Unfortunately, the BLS report is likely to sway some voters — and therefore have an impact on this tight race. But it shouldn’t. The report surely will be used by one of the candidates to make a sweeping case for himself and against his opponent. An unemployment rate above last month’s 7.8 percent, or a number of new jobs below September’s 114,000, will be wielded by Mitt Romney as evidence the economy is slowing – while a rate below last month’s, and a number above it, will be used by Team Obama as evidence the economy is moving in the right direction.

In truth, no one should base their vote on tomorrow’s labor report is because a single month’s report isn’t a reliable gauge of which way the economy is heading. A report that the unemployment rate is 7.8 percent, for example, means only that the Bureau of Labor Statistics is 90 percent sure the real rate lies between 7.6 percent and 8.0 percent. By the same token, an announcement that the economy created 100,000 jobs in October means the BLS is 90 percent sure the number of new jobs is between 90,000 and 110,000. A small shift one way or the other from September’s readings may have huge political significance but has no statistical significance, and therefore should have no political significance.

So much uncertainty attaches to a single report that the BLS is continuously revising its job numbers as more information comes in. At the start of September the BLS announced that August’s job growth had slowed to 96,000 new jobs — a finding that had a noticeably negative effect on the President’s campaign and at a critical juncture. But a month later, in its October release, the BLS revised the August number upward to 141,000. Or look back on that awful year of 2008, when between July and August the Bureau was reporting relatively small declines of 20,000 to 60,000 jobs per month. We now know the true job numbers were falling off a cliff. BLS’s revised job numbers showed the economy was losing roughly 200,000 jobs a month, starting in April.

My advice: Regard tomorrow’s BLS numbers with a good grain of salt. Month-to-month reports shouldn’t be taken nearly as seriously as they are. It’s the long-term trend that counts. And here the picture is encouraging regardless of what’s reported tomorrow. Since the start of 2012, employers have averaged 146,000 new hires a month. It’s a slow rate of recovery, but a recovery nonetheless.
 

Demeter

(85,373 posts)
4. Is the Budget ‘Crisis’ History? By Dean Baker
Fri Nov 2, 2012, 07:26 PM
Nov 2012
http://www.nationofchange.org/budget-crisis-history-1351777320

One of the major growth industries in Washington is the promotion of budget hysteria. Well-funded groups have weekly, if not daily, events designed to hype the country’s budget situation. Much of the national media, most importantly the Washington Post, have enlisted in this effort, devoting both their opinion and news sections toward this goal. Unfortunately for the deficit-crisis industry, the facts may stubbornly refuse to cooperate. Any discussion of the deficit requires separating out the short-term and the long-term story. The short-term story is very simple. The economy collapsed in 2008 when the housing bubble burst. That is the story of the large budget deficits that we have seen in the last five years: full stop.

Fans of the Congressional Budget Office (CBO) can go back to see their projections from January of 2008, before CBO recognized the consequences of the bursting bubble. The deficit had been a modest 1.2 percent of GDP in 2007. The deficit was projected to stay near 1.0 percent of GDP over the next three years until the end of the Bush tax cuts was projected to push the budget into surplus in 2012. Even if the Bush tax cuts had not been allowed to expire the country can literally run deficits of 1.0-2.0 percent of GDP forever.

There were no huge new permanent spending programs or tax cuts put in place in 2008 or 2009. The deficit soared because the recession sent tax revenue plummeting and caused spending on programs such as unemployment benefits to jump. There were also temporary measures designed to counteract the downturn, like stimulus spending and the payroll tax cut. However had it not been for the downturn, these policies never would have been implemented. This means that in the absence of the downturn, there is no short-term deficit problem. There would be nothing for the deficit crisis industry to do.

In the longer term the deficit-crisis industry can point to scary projections of large deficits in the next decade and even bigger ones further out. These deficits were overwhelmingly driven by projections of exploding health care costs. The United States already pays more than twice as much per person for its health care as do people in other wealthy countries with nothing much to show for it in the way of outcomes. The scary deficit projections assume that this gap in health care costs will continue to grow. However it now looks like health care costs may not be following the path assumed by CBO and other official forecasters. The GDP data for the third quarter released last week showed that real spending on health care fell for the second consecutive quarter and that nominal spending grew at just a 0.5 percent annual rate. In fact, the rate of growth of health care spending has been remarkably muted for several years. Nominal spending on health care services has risen by just 4.5 percent over the last year and a half. This compares with an 11.0 percent increase in overall consumption spending during the same period. Spending had been projected to grow at nearly twice this rate. While it is still too early to draw definitive conclusions, it seems that health care costs in the United States may actually be stabilizing. If this pattern continues then we won’t have a long-term deficit problem. If our health care costs were in line with those in other countries, we would be looking at projections of long-term budget surpluses.

MORE
 

Demeter

(85,373 posts)
5. The Great Betrayal -- and the Cynicism of Calling It a Grand Bargain William K. Black
Fri Nov 2, 2012, 07:33 PM
Nov 2012
http://www.huffingtonpost.com/william-k-black/obama-austerity-social-security_b_2042876.html

Robert Kuttner has written much of the column I intended to write on this subject, so I will point you to his excellent column and add a few thoughts...
http://www.huffingtonpost.com/robert-kuttner/obama-economy_b_2036285.html?utm_hp_ref=politics
Kuttner wrote to warn that Obama intends to seek a "grand bargain" causing the U.S. to adopt the type of austerity program that threw the Eurozone back into a gratuitous recession. Worse, Obama intends to begin to unravel the safety net (Social Security, Medicare, and Medicaid) to convince the Republicans to enter into this Faustian bargain. Just as only a conservative Republican could visit "Red" China, only a Democrat can begin the destruction of the safety net. The difference, of course, is that normalizing relations with China was a good thing while unraveling the safety net is a terrible thing. Wall Street's greatest desire is privatizing Social Security. Wall Street stands to make scores of billions of dollars annually in additional fees should it ever buy enough politicians to privatize Social Security. The Republican Party's greatest goal is unraveling the safety net. They always wish to attack the most successful and popular programs introduced by the Democratic Party. Their problem is that they know it is toxic for Republican candidates to try to destroy the safety net. Only Democrats, through a "Great Betrayal" can give Republicans the political cover they need to unravel the safety net.

The safety net is so popular with the American people because it consists of superb programs that constantly put the lie to Republican memes that the government is incapable of success. There is no need to allow Social Security to "go bankrupt." The necessary expenditures can easily be made by the Treasury. There is a need to contain the rise in medical costs, but we know how to do that without harming health outcomes. Most advanced nations attain the same health outcomes at half the expense (relative to GDP) of the U.S. Obama's opposition to the "public mandate" was a grave mistake that needs to be reversed.

Because unraveling the safety net is unnecessary, harmful, and politically insane for a Democrat and politically suicidal for Republicans, the proponents of these terrible policies have long failed in their efforts. Republicans, however, have now found a fifth column within the Democratic Party who they hope will open the door to attacking the safety net. This would provide the political cover that Republicans could use to unravel fully the safety net. The Republican Party's approach to convincing Obama to commit the Great Betrayal cleverly exploits three human weaknesses. First, Obama wants to be considered a "centrist." Second, Obama yearns to be considered "bipartisan." These first two weaknesses are forms of vanity. The siren song is "do this and you will become known as the President who acted as a statesman to cut across Party and ideological divides and make the hard choices essential to allowing America to continue to be a great nation -- while 'saving' the safety net."

The third weakness that the Republicans seek to exploit is fear -- and the death of alternatives. The mantra of European austerity proponents is "there is no alternative." The only choice is between austerity and collapse, and that means there is no real choice. The Republican strategy is to create a series of "moral panics." As the name implies, this involves the creation of a special form of panic falsely premised on immorality. (Think: "Reefer Madness" or Professor Hill causing River City, Iowans to believe that the arrival of pool hall demonstrated the imminent moral collapse of their children.) The Great Betrayal can only occur if Obama succumbs to mindless (and innumerate) panic.

The Democratic wing of the Democratic Party has to lead the effort to save America from the Great Betrayal...MORE

Warpy

(111,277 posts)
6. Jungle, indeed
Fri Nov 2, 2012, 08:56 PM
Nov 2012

only it's more along this line:




"The Jungle" exposed a lot more than the appalling conditions in the meatpacking industry, although that's what got cleaned up quick. It also exposed some really shady banking practices around mortgages and home ownership, poor immigrants scraping together a down payment, moving in and thinking they'd arrived, not quite realizing that they'd have to scrape together another down payment in three to five yeas when the balloon payments started. Yes, the only mortgages back then were the balloon mortgages we saw repackaged as "interest only" during the final days of the real estate bubble.

Eventually Fanny Mae was started to buy up 30 year fixed rate mortgages and it worked well, too well. Bankers were appalled to see that much interest (and it was only 3% until the late 50s or so) going to the government and clamored to have it privatized. It was, and Freddie Mac was created a year later to give the illusion of competition. Indy Mac was created in the 00s to take on all the junk like balloon mortgages and liar loans.

It was astonishing to me (and everybody else who remembered the rest of "The Jungle&quot to see all this stuff taking place again, that no one had learned the lessons of the 1920s and cavalierly discarded the laws passed in the 1930s that had done so well to protect them against predators.

It seems that what you need to sell people the horrors they thought the country had left behind is an ad man who will give them new and catchy titles. Mercantilism? Trickle down! Robber Barons? Job Creators! Embezzlement? Executive Compensation Packages!

We need to find out how to outlaw things so that they stay outlawed. Otherwise, it's all going to be repeated in another 75 years or so.

Tansy_Gold

(17,862 posts)
7. I'm here in spirit if not in the flesh
Fri Nov 2, 2012, 11:57 PM
Nov 2012

Big art event this week-end so I'll be scarce during the day.

But it's amazing, isn't it? how people can be influenced, even politically persuaded, by fiction, when the facts have little to no effect. Everything from the Bible to Uncle Tom's Cabin to The Jungle to Atlas Shrugged to. . . . no, you're not gonna make me go there. . .. .

xchrom

(108,903 posts)
9. i made a good linguini with clams last night
Sat Nov 3, 2012, 07:09 AM
Nov 2012
?__SQUARESPACE_CACHEVERSION=1279646640715


now i crisp up some pancetta and saute shallots and garlic -- then add white wine and lemon juice.
throw the pancetta in when the clams have opened and serve.
it's my favorite meal.
 

Demeter

(85,373 posts)
39. I wish I had someone to cook for me, once in a while
Sun Nov 4, 2012, 12:53 PM
Nov 2012

The Kid can make sandwiches all right, or microwave, but it isn't the same. Still, it's better than going hungry!

xchrom

(108,903 posts)
10. Greece is governed by a corrupt clique, says Kostas Vaxevanis
Sat Nov 3, 2012, 07:11 AM
Nov 2012
http://www.guardian.co.uk/world/2012/nov/02/greece-corrupt-clique-kostas-vaxevanis


Kostas Vaxevanis, editor of Hot Doc magazine, was cleared of privacy breach for publishing the names of 2,000 suspected tax evaders. Photograph: Orestis Panagiotou/EPA

Greece is undergoing a crisis of democracy with press censorship at its centre, says the magazine editor in the middle of the media storm that has engulfed Athens. Speaking to the Guardian a day after being cleared of breaching privacy laws, Kostas Vaxevanis said Greece was ruled by a clique of corrupt politicians in thrall to businessmen who owned – and gagged – the media.

"There's a huge problem in Greece, a problem of democracy and essence," he said in his fifth-floor office, surrounded by copies of Hot Doc, the investigative magazine that last week published the names of more than 2,000 high-earning Greeks with bank accounts in Switzerland. "The country is governed by a poisonous combination of politicians, businessmen and journalists who cover one another's backs. Every day laws are changed, or new laws are voted in, to legitimise illegal deeds."

With a substantial chunk of the Greek media owned by magnates or financed by banks, journalists were in effect silenced. "It's tragic. Greeks only ever learn half the truth and that is worse than lies because it has the effect of creating impressions," he said.
 

Demeter

(85,373 posts)
15. She probably wanted to get away from the in-laws
Sat Nov 3, 2012, 11:27 AM
Nov 2012

Nobody ever claimed it was a love match, for sure.

 

Ghost Dog

(16,881 posts)
30. Greece flirts with tyranny and Europe looks away
Sun Nov 4, 2012, 09:29 AM
Nov 2012

... You spot the pressure points of a failing state by looking at what it censors. In the case of Greece, the authorities' prosecution last week of Kostas Vaxevanis showed that he had hit a pressure point with the accuracy of a doctor sticking a needle into a nerve. While Greeks live with austerity without end, while Greek GDP has shrunk by 4.5% in 2010 and 6.9% in 2011, and will shrink by a predicted 6.5% this year and 4.5% in 2013, the list of the names of 2,000 Greeks with bank accounts in Switzerland Vaxevanis published, suggested that the well-connected were escaping the burdens that fall on the masses.

"Instead of arresting the tax evaders and the ministers who had the list in their hands," thundered Vaxevanis in a call to arms that stirred the blood, "they're trying to arrest the truth and freedom of the press."...

... All the Greek journalists I spoke to emphasised that Athens was not Beijing or Tehran, but they described how the liberal certainties they once held now appeared flimsy. Helena Smith, our superb Athens correspondent, says that she feels as if she is standing on shifting sands. If the centrist coalition fails, and the troika's punitive demands have condemned it to failure, then the left opposition in Syrzia will probably take over. After that, Golden Dawn, maybe? No one knows. Nothing is unthinkable in a climate of fear and hopelessness...

... British Eurosceptics do not understand that the European Union once offered an escape to a liberal future for the peoples of Europe. When I visited Athens in the early 1980s, the old could remember fighting the Nazi occupation and the young had grown up in and on occasion fought the military dictatorship the colonels imposed. Joining the European Union meant saying goodbye to all of that. Now poverty, fear, suppression and state intimidation are back...

/... http://www.guardian.co.uk/commentisfree/2012/nov/04/nick-cohen-greece-democracy-in-peril

 

Ghost Dog

(16,881 posts)
31. Britain could thrive outside EU, suggests UK Minister
Sun Nov 4, 2012, 09:31 AM
Nov 2012

... Asked whether Britain is big enough to survive outside the EU, the work and pensions secretary said: "I am an optimist about the UK. We have been involved in trade with our European partners, which we will always be doing whatever this relationship is.

"We are a member of the EU. That gives us benefits. But we have to figure out where that is going. In the world, we are a global trader already. We are more of a global trader than any country in Europe.

"I hate this argument that says little Britain or something outside, or Britain is part of a wider Europe. We can both be within our trading relationships within Europe but we can also be a fantastic global trader.

"We invest more in the US than any other country in the world … We have been a global trader all our lives. Your (Andrew Marr's History of the World) programmes show what a fantastic history Britain has, as a remarkable country for good and trade around the world. That is what we are today as much as we were 100 years ago.

"My view isn't that we could do necessarily outside the EU better then we are inside. It is that we can do it all. I don't see why we shouldn't have it all."

/... http://www.guardian.co.uk/world/2012/nov/04/britain-could-thrive-outside-eu

... Cough cough No comment!

xchrom

(108,903 posts)
11. US has added 1.1m new millionaires under Obama, says study
Sat Nov 3, 2012, 07:26 AM
Nov 2012
http://www.guardian.co.uk/business/2012/nov/01/us-new-millionaires-obama

The US has added 1.1 million new millionaires since Barack Obama was elected president in 2008, according to a new survey of high-net-worth individuals.

Amid an election campaign that has been defined by fierce fights over the taxation of millionaires and accusations that Obama is anti-wealth, the so-called "1%" of the population grew by 29%, the equivalent of a thousand new millionaires per day, over the president's first three years in office. According to analyst WealthInsight, those high-net-worth individuals now hold assets worth $18.8tn – 34% of total US individual wealth, well above the global average of 29%.

"It doesn't really fit the campaign rhetoric that one side is against the rich and the other is for," said WealthInsight analyst Christopher Rocks. "The total number of millionaires is growing and will continue to grow whether Obama or [Mitt] Romney is elected."

The number of new US millionaires fell following the financial crisis. At the end of 2011 there were just over 5.1m millionaires in the United States – 165,360 fewer than in 2007, before Obama's election and the worst of the financial crisis. The recent rise in stock markets and signs of a recovery in real estate mean the number of millionaires will be back to pre-recession levels by the end of 2012.
 

jtuck004

(15,882 posts)
12. "The 40 Richest People in the World".
Sat Nov 3, 2012, 10:04 AM
Nov 2012

Last edited Sat Nov 3, 2012, 11:40 AM - Edit history (1)

There's a lot of wealth out there, and if they aint gettin' it in The Jungle, it must be goin' somewhere.


Today's ranking of the world's richest people
NAME EST. NET WORTH CTRY $ CHG DAILY % CHG YTD
1. Carlos Slim Helú $ 74.7 billion MEX - $ 174.7 M 20.8
2. Bill Gates $ 63.3 billion USA - $ 269.7 M 13.6
3. Amancio Ortega $ 54.1 billion SPN - $ 966.0 M 53.4
4. Warren Buffett $ 46.6 billion USA - $ 300.3 M 9.1
5. Ingvar Kamprad $ 41.5 billion SWE - $ 525.5 M 12.7
6. Charles Koch $ 38.7 billion USA - $ 418.1 M 14.3
7. David Koch $ 38.7 billion USA - $ 418.1 M 14.3
8. Larry Ellison $ 36.9 billion USA - $ 309.3 M 12.1
9. Christy Walton $ 29.7 billion USA - $ 285.4 M 18.1
10. Jim Walton $ 28.4 billion USA - $ 237.4 M 20.9
...


http://topics.bloomberg.com/bloomberg-billionaires-index/
 

jtuck004

(15,882 posts)
13. "... Sinclair had his novel, The Jungle, rejected by six publishers.
Sat Nov 3, 2012, 10:11 AM
Nov 2012

A consultant at Macmillan wrote: "I advise without hesitation and unreservedly against the publication of this book which is gloom and horror unrelieved. One feels that what is at the bottom of his fierceness is not nearly so much desire to help the poor as hatred of the rich...."

Here.

----

Dang, that ol' "hatred of the rich" thing persists, don't it?

 

Demeter

(85,373 posts)
16. If you care about the poor....
Sat Nov 3, 2012, 11:29 AM
Nov 2012

here's no room in your heart for the 1%. And they have very sensitive egos, consider it being slighted.

 

Demeter

(85,373 posts)
17. I survived my moonlighting job, just barely.
Sat Nov 3, 2012, 11:34 AM
Nov 2012

It took me from midnight to 9:30 am.

But it's the regular paper route that will kill me. For some reason, the free paper, which is what really fills the paycheck, is 2.5 times its usual size.

Either the Christmas advertising has begun, or there's something irresistible about Veteran's Day sales....

It didn't rain, it didn't snow, the car didn't die, I didn't hit a deer or any of the enormous potholes out in deer country. I have one missed customer, but it's beyond my ability to do this foolishness again.

Stop me before I say yes! (Besides, it's snow season).

 

Demeter

(85,373 posts)
19. Occupy Wall Street’s Next Move: Bailing Out the People, One at a Time
Sat Nov 3, 2012, 11:39 AM
Nov 2012

I'D BE HAPPY WITH A MASS MOVEMENT....

http://www.nationofchange.org/occupy-wall-street-s-next-move-bailing-out-people-one-time-1351778594

...“Banks got bailed out, we got sold out!” is among the most enduring chants of Occupy Wall Street, and it speaks to the basic impetus for the movement that sprang up last fall in Zuccotti Park. In the aftermath of the global economic crisis of 2008, government policy was overwhelmingly oriented toward shoring up the financial institutions that had precipitated the meltdown rather than helping the majority of the population suffering from its effects—foreclosures, layoffs, service-cuts, fee-increases, and a deepening hole of personal debt for basic human needs like food, healthcare, education, shelter and transportation. The figure of “the 99 percent” emerged out of this chasm between received ideals of democratic governance and the sobering reality of a political system rigged to support the profits of banks over the lives of people—despite the promise of “change” made by Barack Obama.



Some appeals to the 99 percent over the past year have focused on repairing the actually existing system through campaigns targeting the corporate lobbying complex exemplified by the Citizens United decision, for instance.

However, many organizers in OWS have always seen the crisis as a window of opportunity to rethink political and economic life more deeply through a process of education, creativity, and experimentation with new forms of living. It is thus no coincidence that arts and education have played a crucial role in the evolution of Strike Debt. Exemplary in this regard is the work of Strike Debt organizer Thomas Gokey, whose isolated artistic experiments with debt purchasing laid the groundwork for what would be collectively transformed by Strike Debt assemblies into the Rolling Jubilee project.

The occupations last fall were a crack in the system, unleashing the political imagination. Strike Debt aims to deepen that crack, calling for us to imagine actively refusing compliance with the power of creditors over our lives. Significantly, the launch of the Rolling Jubilee falls on the one-year anniversary of the eviction of Zuccotti Park; while the work of Strike Debt has taken a very different form than physical occupation, since its start last summer it has channeled and refined the principles of direct action, mutual aid, and dual power that were at the heart of the original camp...

 

Demeter

(85,373 posts)
20. Social Security History Upton Sinclair
Sat Nov 3, 2012, 11:45 AM
Nov 2012

...Sinclair's interests ranged over a wide variety of topics, in his many books and articles. He would receive a Pulitzer Prize for a later novel about Hitler's rise to power. His contemporary, the writer Edmund Wilson, would say of him: "Practically alone among the American writers of his generation, Sinclair put to the American public the fundamental questions raised by capitalism in such a way that they could not escape them."

The nomination of an avowed socialist to head the Democratic party ticket was more than the California establishment could tolerate. Sinclair's radical candidacy was opposed by just about every establishment force in California. The media virtually demonized Sinclair through a concerted propaganda campaign based largely on smears and falsehoods. Sinclair's candidacy also set off a bitter political battle both within the Democratic party and with many groups who were opposed to various aspects of the EPIC plan. Sinclair was denounced as a "Red" and "crackpot" and the Democratic establishment sought to derail his candidacy.

Despite all of this, Upton Sinclair was very nearly elected Governor of California in 1934. He probably would have won, except for two last-minute political errors in judgment. When President Roosevelt announced in June 1934 that he would propose a national social insurance system in the next session of Congress, Sinclair quite reasonably declared that he would be willing to defer his plan in favor of the President's national solution. This was perhaps reasonable, but it was impolitic, as it undermined his strongest issue. Then too, Sinclair felt duty-bound to announce his opposition to the rival Townsend Plan because the Townsend Plan was based on a regressive sales tax. Since the Townsend Plan and the EPIC supporters were often one and the same people, this was in effect an attack on his own core constituency. When the votes were counted, Upton Sinclair got 37% of the vote, the Republican candidate got 48% and a third-party progressive candidate took another 13%. Had it been a two-man race, or had Sinclair been less intellectually honest and more of a politician, he would likely have become Governor of California and the EPIC pension plan might well have become the California model. (In a classic exercise in political hubris, Sinclair detailed his EPIC plan in a book published in 1933, with the confident title "I, Governor of California And How I Ended Poverty: A True Story of the Future." Following the election he would publish another book with the humbled title "I, Candidate for Governor and How I Got Licked.&quot

Undeterred by his loss in the 1934 California election--and not really humbled either--in the 1936 election cycle Sinclair authored another version of his "I, Governor" booklet. This one had an even more expansive aim, and an inflated title to go along with it, "We, People of America and How We Ended Poverty: A True Story of the Future."

SEE SINCLAIR'S PLAN FOR SOCIAL SECURITY HERE:

http://www.ssa.gov/history/epic.html

FOR CHAPTER AND VERSE ON THE HISTORY OF SOCIAL SECURITY:

http://www.ssa.gov/history/index.html

 

Demeter

(85,373 posts)
23. I'm going for some sleep, people
Sat Nov 3, 2012, 12:12 PM
Nov 2012

I have a lot of hard-hitting stuff to post, plus Upton Sinclair (who ever knew this? It's not like they talked about him in history books, other than to mention The Jungle, which wasn't even in English courses....)

DemReadingDU

(16,000 posts)
29. Oliver Stone: The Untold History
Sun Nov 4, 2012, 08:59 AM
Nov 2012

11/2/12 Oliver Stone’s ‘Untold History of the United States’ Challenges Americans’ Ignorance of History

Film director Oliver Stone and American University history professor Peter Kuznick have produced a project called “The Untold History of the United States.” The project consists of a book released on October 30 and a documentary series that is scheduled to begin airing on Showtime on November 12.

more...

http://dissenter.firedoglake.com/2012/11/02/oliver-stones-untold-history-of-the-united-states-challenges-americans-ignorance-of-their-countrys-history/



Wish we had Showtime to watch this series.

bread_and_roses

(6,335 posts)
24. Chapter summaries, quotes, more
Sat Nov 3, 2012, 03:00 PM
Nov 2012

here http://www.sparknotes.com/lit/jungle/

A sample from "quotes:"

5. To Jurgis the packers had been equivalent to fate; Ostrinski showed him that they were the Beef Trust. They were a gigantic combination of capital, which had crushed all opposition, and overthrown the laws of the land, and was preying upon the people.
Explanation for Quotation 5 >>

This quote from Chapter 29 illustrates the effect of Jurgis’s adoption of socialism upon his mind. He previously considers the capitalists “equivalent to fate,” believing them to be all-powerful, impersonal, inhuman forces that have total control over his life. But Ostrinski convinces him that the capitalists are merely corrupt human beings who immorally oppress other human beings. Jurgis realizes here that the only difference between the capitalists and the workers lies in money, for while the capitalists have “a gigantic combination of capital,” the workers have nothing. But, as the speech at the end of the novel emphasizes, there are many more workers than capitalists, which could enable the socialist party to overthrow the hegemony of capitalism in a democratic system. This quote demonstrates the opening of Jurgis’s mind to politics and economics, as he takes up the socialist cause with a fervor at least as strong as that with which he initially embraces capitalism and the American Dream.


The power of the zeitgeist .... where I live - an area that has been more or less in Depression/Recession since early '70s, the Rs and Conservatives predominate ... right down the road one of our villages has a municipal electric system ... people know it is MUCH less expensive than the Corporate provider serving the rest of the valley and used to try to buy houses in that village all the while descrying "socialism" etc like good Tea-Baggers.

Way back there were active Socialist and Communist Clubs right here - attended by ordinary working men (it would have been mostly men, in those days going to any sort of "club" I think - maybe there were women too - I haven't read enough about the era to know - am relying on info on our area from someone I know to have studied it).

And yet somehow we end up with our local paper and other sites where comments are allowed full of Rand-bot types and rock-solid Rs gnashing their teeth over public sector workers and the "Federal Debt" and full of racism and poor-bashing in general ....

It's enough to make you weep.
 

Demeter

(85,373 posts)
25. How Elizabeth Warren saved taxpayers $1 billion By Matt Stoller
Sat Nov 3, 2012, 08:18 PM
Nov 2012
http://www.salon.com/2012/10/30/how_elizabeth_warren_saved_taxpayers_1_billion/

Elizabeth Warren's work keeping tabs on the bank bailout is a great argument for good government...While Mitt Romney and Barack Obama battle nationally for the right to occupy the White House for the next four years, perhaps the second most contentious significant race in the entire country is occurring in Massachusetts. That is where the Democratic Party’s candidate for Senate, self-described advocate for the middle class Elizabeth Warren, faces off against Republican Scott Brown. Polls show the race is close, and the bitterness of the rhetoric matches the polling. One of Scott Brown’s most consistent arguments is that Elizabeth Warren represents Obama’s liberal “tax and spend” policies leading to big government. But a new paper by Stanford political scientist Lucas Puente published in PS. Political Science and Politics shows that Elizabeth Warren’s work on the Congressional Oversight Panel was highly advantageous to the taxpayer, saving over a billion dollars money by taking a skeptical approach towards the Treasury Department’s bailout plans.

The issue has to do with an obscure part of the Troubled Asset Relief Program, or TARP, known as warrants. This was a piece of the bailout that was designed to allow the government to profit from its investment in banks. In 2008, at the height of the financial crisis, Treasury Secretary Hank Paulson decided to put money into the banking system by investing in preferred shares of the banks. These investments entitled Treasury to dividend payments of 5 percent a year for the first five years, and 9 percent thereafter. In addition, as part of the deal, the government received warrants, or the right to purchase common stock at a preset price at any time over the next ten years, at a value of roughly 15 percent of the government investment. The strike price of these warrants was equivalent to, as Puente wrote, “the 20 day trailing average of first’s common stock trading price at the time of the deal.” Two hundred and seventy-three firms eventually exchanged warrants. Treasury has sold many of them, including those from the largest banks.

Bailout politics are fraught with bitter political accusations. Just this week, Financial Services Committee Chairman Spencer Bachus released a report showing that Section 204 of the Dodd-Frank bill allows AIG-style bailouts to happen again, despite the claims of the administration. And scholarship is showing that the political influence of financial institutions, as measured by campaign contributions, was correlated with receipt of TARP funds. This makes sense – high level White House official Michael Froman, who apparently advised Obama to hire Geithner during the transition, made millions from Citigroup, the largest recipient of bailout funds and as Sheila Bair notes in her book Bull by the Horns, the least stable bank. Jack Lew, current White House Chief of Staff did as well. And Bob Rubin, a frequent below the radar advisor to Obama and mentor to Tim Geithner and Larry Summers, was the Chairman of Citigroup at the time of the bailouts. TARP and Federal Reserve lending were correlated with political connections. But with the disposal of warrants, what Puente found is that political connections did not play a role in the valuations Treasury got when the government decided to auction them off. In fact, according to Puente, there was only one factor that mattered: Congressional Oversight Panel Chair Elizabeth Warren. It was Warren who, along with the Special Inspector General of TARP Neil Barofsky, put out a series of reports that forced Treasury to modify its process for selling the warrants. Puente noted that “warrant deals that occurred prior to the July 2009 COP report were systematically discounted.” The deals that came after were not. “With $8.97 billion in warrant deals having been completed between May 2009 and March 2011, that the COP helped Treasury get 10 percent more after publishing its report is non-trivial.”

Oversight works, but it’s rarely pleasant. Barofsky, who recounted his experience as a government watchdog in the new book Bailout, noted that the relationship between the Treasury Department and the oversight bodies could be quite poor. He said, “The sad reality is that often in government arrogance and the political imperative to never acknowledge fallibility leads to egregious errors that can and have cost the taxpayer billions of dollars. With TARP, Elizabeth and I were able to leverage one another as well as Congress to shine a bright light on Treasury’s actions.” This leverage saved the taxpayer roughly a billion dollars. The final budget for Warren’s Congressional Oversight Panel was $10,684,422. That’s roughly a one hundred to one return on investment for every dollar invested in oversight. And that’s not including anything else that Warren’s oversight body did. Oversight is the most overlooked part of the Congressional process, but it is arguably the most important. The indelible picture of tobacco executives raising their hands before a Congressional panel headed by Congressman Henry Waxman was the precipitating event for reform of the tobacco industry. Chuck Grassley, Carl Levin, Henry Waxman, and Claire McCaskill are all known for their investigative work. As Senator, if she wins, Elizabeth Warren will in all likelihood continue the work she did at the Congressional Oversight Panel. The Treasury Department may not like it, but the taxpayers will be grateful.

 

Demeter

(85,373 posts)
26. UAW Files Charges Against Romney on His Auto Bail-out Profiteering By Greg Palast
Sat Nov 3, 2012, 08:22 PM
Nov 2012
http://www.nationofchange.org/uaw-files-charges-against-romney-his-auto-bail-out-profiteering-1351783724

For Mitt Romney, it's one scary Halloween. The Presidential candidate has just learned that tomorrow afternoon he will be charged with violating the federal Ethics in Government law by improperly concealing his multi-million dollar windfall from the auto industry bail-out. At a press conference in Toledo, Bob King, President of the United Automobile Workers, will announce that his union and Citizens for Responsibility and Ethics in Washington (CREW) have filed a formal complaint with the US Office of Government Ethics in Washington stating that Gov. Romney improperly hid a profit of $15.3 million to $115.0 million in Ann Romney's so-called "blind" trust. The union chief says, "The American people have a right to know about Gov. Romney’s potential conflicts of interest, such as the profits his family made from the auto rescue,” “It’s time for Gov. Romney to disclose or divest...While Romney was opposing the rescue of one of the nation’s most important manufacturing sectors, he was building his fortunes with his Delphi investor group, making his fortunes off the misfortunes of others,” King added.

The Romneys' gigantic windfall was hidden inside an offshore corporation inside a Limited Partnership inside a trust which both concealed the gain and reduces taxes on it. The Romneys' windfall was originally exposed in Nation Magazine, Mitt Romney's Bail-out Bonanza after a worldwide investigation by our crew at The Guardian, the Nation Institute and the Palast Investigative Fund. (Ed. - The full story of Romney and his "vulture fund" partners is in Palast's New York Times bestseller, Billionaires & Ballot Bandits.)

According to ethics law expert Dan Curry who drafted the ethics complaint, Ann Romney does not have a federally-approved blind trust. An approved "blind" trust may not be used to hide a major investment which could be affected by Romney if he were to be elected President. Other groups joining the UAW and CREW include Public Citizen, the Service Employees International Union, Public Campaign, People for the American Way and The Social Equity Group.

President Obama's approved trust, for example, contains only highly-diversified mutual funds on which Presidential action can have little effect. By contrast, the auto bail-out provided a windfall of over 4,000% on one single Romney investment. In 2009, Ann Romney partnered with her husband's key donor, billionaire Paul Singer, who secretly bought a controlling interest in Delphi Auto, the former GM auto parts division. Singer's hedge fund, Elliott Management, threatened to cut off GM's supply of steering columns unless GM and the government's TARP auto bail-out fund provided Delphi with huge payments. While the US treasury complained this was "extortion," the hedge funds received, ultimately, $12.9 billion in taxpayer subsidies. As a result, the shares Singer and Romney bought for just 67 cents are today worth over $30, a 4,000% gain. Singer's hedge fund made a profit of $1.27 billion and the Romneys' tens of millions.

The UAW complaint calls for Romney to reveal exactly how much he made off Delphi -- and continues to make. The Singer syndicate, once in control of Delphi, eliminated every single UAW job --25,000-- and moved almost all auto parts production to Mexico and China where Delphi now employs 25,000 auto parts workers.

AND BASED ON MY RECENT EXPERIENCES, THOSE PARTS ARE OF INFERIOR QUALITY...JUNK, IN OTHER WORDS....
 

Demeter

(85,373 posts)
28. Did the Romneys’ Auto Bailout Bonanza Violate Federal Ethics Law? By Greg Palast
Sat Nov 3, 2012, 10:15 PM
Nov 2012
http://www.nationofchange.org/did-romneys-auto-bailout-bonanza-violate-federal-ethics-law-1351923644

...This week, Republican vice-presidential nominee Rep. Paul Ryan arrived in Ohio to accuse the Obama administration of cutting the pensions of the Delphi non-union pensioners. In fact, says the UAW’s King, it was the Singer-Romney group that simply refused to pay any pensions whatsoever to union and non-union workers alike. The company’s $6.2 billion pension obligation, says King, “was dumped on the US government Pension Benefit Guarantee Corporation (PBGC) which is limited by law — not by President Obama — in the sums it can pay retirees.”

None of this surprises observers of Paul Singer’s hedge fund, Elliott Management, which partnered with Ann Romney. Elliott is notorious for what the finance industry calls “vulture” attacks, in which speculators seize old debts of bankrupt corporations — and even nations — then demand payments of ten or a hundred times their investment, while making threats of economic ruin.

These vulture tactics are at the core of charges in the ethics complaint, which cites not just Elliott’s seizure of Delphi but the hedge fund’s infamous attacks on the treasuries of the Congo and Peru, which have caused an international diplomatic uproar. Last April, President Obama and Secretary of State Hillary Clinton took the extraordinary step of filing an action in a US federal court to stop the Singer fund’s vulture attacks on Argentina. The government argued that the actions of Singer (and thus also his partners, the Romneys) have a “significant, detrimental impact on our foreign relations.” The Singer group responded to the U.S. State Department legal action by seizing the Argentine Navy’s training ship, Libertad, which is a square-rigged sailing frigate. Which seems to suggest that the Romneys now own a piece of a real-life pirate ship.

(I WONDERED WHAT THAT WAS ABOUT, AND WHO WAS INVOLVED! --DEMETER)

Public Citizen’s ethics expert, Dr. Craig Holman, notes that as president, Romney would have to choose between U.S. allies and his business partners. He is barred by law from using a “blind trust” to conceal such conflicts of interest.
 

Demeter

(85,373 posts)
27. Unraveling the "Future Generations" Debt Debate By Paul Krugman
Sat Nov 3, 2012, 08:28 PM
Nov 2012
http://truth-out.org/opinion/item/12470-unraveling-the-future-generations-debt-debate

The economist Brad DeLong recently took on Professor Nick Rowe, of Carlton University, over the bizarrely confused issue of intergenerational debt; in a moment I'll try to offer a new way of explaining why the conventional presentation is all wrong.

"In Nick Rowe's world the next generation's taxpayers are taxed to pay off the debt — and so they are losers," Mr. DeLong wrote in a blog post on Oct. 12. "And in Nick Rowe's world the next generation's debt-holders are not gainers."

First, let me suggest that phrasing in terms of "future generations" can easily become a trap. It's quite possible that debt can raise the consumption of one generation and reduce the consumption of the next generation during the period when members of both generations are still alive. Suppose that after the 2016 election President Santorum tries to buy senior support by giving every American over 65 a gift of newly printed government bonds; then the over-65 generation will be made richer, and everyone under 65 will be made poorer (duh). But that's not what people mean when they speak about the burden of the debt on future generations; what they mean is that the United States as a whole will be poorer, just as a family that runs up debt is poorer thereafter. Does this make any sense? Well, let's do a thought experiment that doesn't, at least initially, seem to have anything to do with debt. Suppose that instead of gifting seniors with bonds, President Santorum passes a constitutional amendment requiring that from now on, each American whose name begins with the letters A through K will receive $5,000 a year from the federal government, with the money to be raised through extra taxes. Does this make America as a whole poorer?

The obvious answer is no, at least not in any direct sense. We're just making a transfer from one group (the L through Z's) to another; total income isn't changed. Now, you could argue that there are indirect costs because raising taxes distorts incentives. But that's a very different story. O.K., you can see what's coming: a debt inherited from the past is, in effect, simply a rule requiring that one group of people — the people who didn't inherit bonds from their parents — make a transfer to another group, the people who did. It has distributional effects, but it does not in any direct sense make the country poorer. Really, this isn't complicated — and the fact that everyone in public life gets it wrong doesn't change the logic.

Foreigners and the Burden of Debt

Another thought experiment: suppose that for some reason the Chinese and a bunch of domestic investors do an asset swap. The Chinese sell off $500 billion of United States Treasuries and buy an equal amount of, say, corporate bonds, while the domestic investors do the reverse. Has the United States become any richer (or any poorer)? Obviously not — as a nation we still owe the same amount to the rest of the world. What this tells us is that when we're trying to assess the burden or lack thereof of debt, foreign ownership of government debt doesn't really matter. What does matter is our net international investment position: the value of the overseas assets owned by all domestic residents minus the value of all domestic assets owned by foreign investors. Now, this ties right in with what Mr. DeLong wrote about the burden of the debt: we'd all agree that deficits make us poorer if they crowd out investment spending — which they would if the economy were near full employment, but won't if it's deeply depressed. All we have to do is realize that net foreign investment — purchases minus sales of assets from and to foreigners — is also a form of investment. Or to put it a bit more simply: sure, budget deficits can make us poorer as a nation if they lead to bigger trade deficits.



Debt Chart(Chart: The New York Times Syndicate)

So far, nothing like this has happened. Look at the chart on this page showing the United States' budget deficit (all levels of government) and the current account deficit, both as a percentage of gross domestic product. Borrowing from abroad is way down, not up, in recent years. Still, you could argue that a bigger budget deficit would, other things being equal, lead to a bigger trade deficit because it would expand the economy and lead to higher imports. In this very limited sense you could tell a burden of deficits story. But surely it's not what debt alarmists have in mind. The bottom line is that while foreign ownership of American assets — not just government debt — is a complication, the common claim that deficits mean that we're selling our birthright to the Chinese makes no sense at all.

BUT SHIPPING A FACTORY'S ENTIRE CAPITAL EQUIPMENT TO CHINA IS A DIFFERENT STORY....WHY DON'T YOU TALK ABOUT THAT ONE, DR. KRUGMAN?

xchrom

(108,903 posts)
33. DEAR TRADERS: The 'Biggest Political Risk' In The World Is Looking More And More Possible
Sun Nov 4, 2012, 09:54 AM
Nov 2012
http://www.businessinsider.com/ohio-provisional-ballots-recounts-2012-11



In a note out this past week, Citi's FX team called a disputed election the 'biggest political risk' in the world.

They wrote:

We view most of the recent price action in G10 FX (with the possible exception of the USDJPY rally) as being the result of squaring up ahead of the US election and 18th National Congress of the Communist Party of China. The biggest political risk is the potential that the US result won‘t be known due to the combination of a tight election and re-count/mail-in issues in swing states.

They cited the possibility of a nail-biter in Ohio that doesn't get resolved for days, as mail-in ballots take a long time to get counted.
Now more and more people are talking about this possibility.


Read more: http://www.businessinsider.com/ohio-provisional-ballots-recounts-2012-11#ixzz2BGIkPUOd
 

Ghost Dog

(16,881 posts)
36. Chances of US social unrest non-negligible
Sun Nov 4, 2012, 10:18 AM
Nov 2012

... The chances of social unrest at a close decision are non-negligible in the current environment and should not be dismissed...

/... http://www.zerohedge.com/news/2012-11-03/three-days-ahead-election-candidates-tied-reuters-finds-bill-maher-jokes

Liberal/Conservative Divide Only Grows Uglier

... Until a crisis equal to the Great Depression arrives, liberals and conservatives are unlikely to bury the hatchet. For voters on either side of the divide, the stakes in this election will not seem to have been exaggerated; for they involve nothing less than a fight for the nation’s economic well-being – nay, for its very soul. Over the next four years, and probably long thereafter, moral and financial jeopardy will confront each of us in ways that seem likely to widen political divisions. Putting aside the wild card of Iran, one of the most difficult issues we face will entail putting public employees’ pension and health care benefits on a sound financial basis. The unions will claim, correctly, that there is no legal precedent for denying workers benefits that were promised them when they were hired. Their employers will claim, also correctly, that the money simply isn’t there. But anyone who thinks the Federal Government will be able to “solve” this problem simply by printing money is in for a rude awakening.

The financial liability is in fact so large that attempting to monetize it would be tantamount to hyperinflating. If, say, the Government were to offer lump-sum settlements averaging $150,000, the money could conceivably be worthless on delivery, since the actual disbursement of digital cash would be taken as a sign by the rest of us that Uncle Sam was on the hook for everyone’s financial needs. If the Government were instead to assume responsibility for years of scheduled payments in “real” dollars, taxpayers would eventually riot in the streets. No matter how you work the numbers, there is no easy way out, at least not using monetary shenanigans. The very clear implication is that the “solution” will come in the form of a dramatically lowered standard of living for most Americans...

/... http://www.zerohedge.com/contributed/2012-11-02/liberalconservative-divide-only-grows-uglier

 

Demeter

(85,373 posts)
46. If only it were true, GD!
Sun Nov 4, 2012, 04:54 PM
Nov 2012

We are a long way from that, still. Check back in a couple of years....

xchrom

(108,903 posts)
34. Bank Of Japan Took A Surprise Step That Could Change The Future Of Central Banks
Sun Nov 4, 2012, 09:57 AM
Nov 2012
http://www.businessinsider.com/zervos-on-boj-decision-losing-independence-2012-11

?maxX=348&maxY=261

Over the past few weeks, there's been a growing buzz about central banks playing a greater role in explicitly serving as funders of government.

The idea that people (journalists and Wall Streeters, mostly) have been talking about is the notion that central banks could buy government debt (as they do in quantitative easing) but then just rip up those bonds, and cancel the debt, with few consequences, except perhaps some inflation (which central banks wants, anyway).

This kind of blatant monetization seems unlikely (especially in countries like the UK and the US, which are borrowing at super-low rates) but the idea of central banks working more closely with their government to stimulate the economy may be on the road to happening.

While the US was distracted by all of the Sandy and election news this week, the Bank of Japan took a shocking step in this direction, according to David Zervos of Jefferies, who notes that the latest easing announcement was a joint production between the Bank of Japan and the Ministry of Finance, amove that never happens:

BoJ policies, by virtually any measure, have been an abject failure. The institution has consistently remained too tight in the face of worsening economic conditions for over 2 decades. And while the economy has had to pay a horrible price for these errors, the tables look like they are about to turn in a nasty way on the institution itself.


Read more: http://www.businessinsider.com/zervos-on-boj-decision-losing-independence-2012-11#ixzz2BGJYwLvH

xchrom

(108,903 posts)
35. {spain} Too old to have a future?
Sun Nov 4, 2012, 10:16 AM
Nov 2012
http://elpais.com/elpais/2012/10/31/inenglish/1351688509_712701.html

Manuel Marín gives his name, and speaking clearly and slowly, begins to talk about his profession as a baker in Seville, which he began at the age of 11 when his father would take him out on delivery runs. But five years ago, when he hit 50, he lost his job.

"The only money that comes into this household every month is 426 euros," he explains. That is the minimum unemployment subsidy paid by the government to the long-term unemployed, and on which Marín and his wife and four children, one of whom has a wife and small child and another on the way, have to live. His fourth child, also unemployed, is living with his partner's family. How do they make ends meet? "The best we can, and with some help from friends and neighbors..." he says, trailing off, unable to continue.

Work is more than simply a way to earn money. "It gives us a sense of self-worth, a sense of dignity, depending on our gender, our age, the amount of time spent training," explains José Antonio Espino, head of mental health at a hospital in the Madrid dormitory town of Majadahonda. He says that losing one's job is a particularly tough blow once one passes 50, particularly in a country where the chances of finding another are, to say the least, slim.

Of a national total of 5.7 million unemployed, there are more than one million people aged between 50 and 64. "In Western countries, despite legislation that forbids employers to ask a candidate's age, we still tend to discriminate in favor of the young in the world of work," says José María Peiró, professor of the psychology of work at the University of Valencia, and a researcher at the Valencia Institute of Economic Research (IVIE).

xchrom

(108,903 posts)
38. Meet the Most Indebted Man in the World
Sun Nov 4, 2012, 10:46 AM
Nov 2012
http://www.theatlantic.com/business/archive/2012/11/meet-the-most-indebted-man-in-the-world/264413/



He can earn million-dollar gains without anybody knowing. He can execute make-believe trades by sending fake emails from hacked computers. He doesn't always lose money. But when he does, he loses more than $6 billion. He is ... the most indebted man in the world.

Jérôme Kerviel is learning one of life's harsher lessons: It stinks to be $6.3 billion in debt. That's how much his fraudulent trades in 2007 and 2008 cost French bank Société Générale, and how much he has been ordered to pay in restitution -- after he gets out of jail in three years. A judge recently upheld these terms on appeal.

Stay risky, my friends?

But how exactly do you carry out €50 billion ($73 billion at the time) of unauthorized trades? With lots of computer hacking and not a lot of vacation. Kerviel was an arbitrage trader at Société Générale who wanted to take out the "arbitrage" part. In plain English, arbitrage just means taking advantage of discrepancies when things should have the same price, but don't. The idea is to buy the cheaper one, sell the more expensive one, and then wait for them to converge. The beauty is it doesn't matter whether markets go up or down -- you're both long and short -- just that the prices actually converge.
 

Demeter

(85,373 posts)
41. This one made me laugh!
Sun Nov 4, 2012, 01:21 PM
Nov 2012



It's such a typical enginer-type reply....unsuitable for multiple choice quizzes.

And yes, I resemble that remark!
 

Demeter

(85,373 posts)
42. Warning! Mercury going retrograde on Tuesday
Sun Nov 4, 2012, 02:05 PM
Nov 2012

and already my cell phone appears to have died just for the occasion.

bread_and_roses

(6,335 posts)
43. you know, I think everyone is exhausted
Sun Nov 4, 2012, 03:50 PM
Nov 2012

I'd looked forward to this topic, but have found myself vegetating all weekend .... just totally worn out. Then, there are the irritations here at DU - the constant exhortations, the justifications of the unjustifiable, and even the posting of what are blogs and opinion sites in LBN - which drives me crazy. NOT because I think the MSM is gospell - far from it! - but because I think it's important to keep track of what they are promulgating.

Just unutterably weary here.

 

Demeter

(85,373 posts)
44. You won't get an argument from me about that
Sun Nov 4, 2012, 04:33 PM
Nov 2012

I know I've been pushing too hard this week, and the winter is setting in early and forcefully across the Northeast and Midwest.

The Frankenstorm brought proof that the world would not stop turning if the markets stopped churning, and the press stopped turning, and the polls stopped spinning...too much of modern human endeavor is just a waste of time and resources so that some can rob others.

bread_and_roses

(6,335 posts)
48. you're words of wisdom - worth repeating
Sun Nov 4, 2012, 09:50 PM
Nov 2012
The Frankenstorm brought proof that the world would not stop turning if the markets stopped churning, and the press stopped turning, and the polls stopped spinning...too much of modern human endeavor is just a waste of time and resources so that some can rob others.


my emphasis added
 

Demeter

(85,373 posts)
45. Upton Sinclair, Author, Dead; Crusader for Social Justice, 90: November 26, 1968
Sun Nov 4, 2012, 04:53 PM
Nov 2012
http://www.nytimes.com/learning/general/onthisday/bday/0920.html

BOUND BROOK, N.J., Nov. 25--Upton Sinclair, who crusaded against the nation's social and economic ills in 90 books, died in his sleep tonight at the Somerset Valley Nursing Home. He was 90 years old.

He is survived by a son, Dr. David Sinclair, a physicist with the Atomic Energy Commission, and a granddaughter, Diana Sinclair.

A funeral service will be held Saturday at 11 A.M. at St. Paul's Episcopal Church here.

Rebel With a Cause
By ALDEN WHITMAN

Upton Beall Sinclair was a rebel with a cause; indeed, a multitude of causes: clean meat, strong trade unions, abolition of child labor, birth control, Prohibition, utopian Socialism, an honest press, morality in business and industry, vegetarianism, mental telepathy and spiritualism, educational reform and civil liberties.

A gracious and benign although spirited and assiduous crusader, he promoted these causes through his books, scores of pamphlets and thousands of speeches and lectures and through campaigns for public office, one of which, his exhilarating and vigorous race for the governorship of California, all but succeeded.

In a moment of proud self-assessment toward the close of his life, he summed up his multiform strivings by saying:

"The English Queen Mary, who failed to hold the French port of Calais, said that when she died the word 'Calais' would be found written on her heart. I don't know whether anyone will care to examine my heart, but if they do they will find two words there--'Social Justice.' For that is what I have believed in and fought for."

Mr. Sinclair's weapon was his pen, and few writers wielded it so tellingly in battles against the social and economic ills of the United States. Although he was not a memorable stylist, his books were graphic, pungent and direct, arousing strong emotions in their readers, many of whom felt impelled to join his struggle against the wrongs he portrayed.

A roll-call of his principal agitational books reflects the major concerns of American social protesters in the first 40 years of this century, when the bulk of his writing was done.

Books Led to Food Act

There was "The Jungle," printed in 1906. The most famous of his works, it exposed not only the grossly unsanitary practices in the Chicago meatpacking industry, but also the sweatshop conditions in which its workers toiled. Arousing the public, the book led to the passage of the first Food and Drug Act.

There was "King Coal" in 1917, recounting the tragedies of a strike at the Rockefeller-controlled Colorado Coal and Iron Company. "The Profits of Religion," issued in 1918, depicted clergymen more concerned with money than religion. The following year there was "The Brass Check," Mr. Sinclair's expose of the venality of a subsidized press. "The Goose-Step," in 1923, dealt with defects in the educational system.

"Oil!," which came out in 1927, attacked exploitation of the California oilfields. It was followed by "Boston," one of the best of his social novels, which told the story of the Sacco-Vanzetti case. Finally, there was "The Flivver King," a caustic account of Henry Ford, which was widely used in the union organizing campaign at the Ford Motor Company in 1937.

At the age of 60 Mr. Sinclair turned from straightforward protest and propaganda to historical fiction. And for 10 years, starting in 1939, he wrote the 11 volumes of the Lanny Budd series--a total of 7,364 pages and four million words. It was a prodigious feat, for it retold world history, with an accent on the United States, from 1913 to 1949. The improbable hero was Lanny Budd, journalist, through whose activities Mr. Sinclair recounted the great events of those years.

Won 1943 Pulitzer

One book in the series, "Dragon's Teeth," which dealt with the rise of Hitlerism in Germany, won for the writer his only major literary award, the Pulitzer Prize for 1943. Other prizes eluded him, although he never ceased to hope for the Nobel Prize, for which he said he had once been proposed by George Bernard Shaw.

As a writer, Mr. Sinclair was dismissed by many American critics. He was "mired in melodrama and sentiment," they said, a man who belabored the obvious with "increasingly irrelevant prejudices." But in Europe he was more generously acclaimed, usually as an "American Ibsen of fiction," a reference to the Norwegian realist of the theater.

Mr. Sinclair's works were translated into every major language, and they were sold in the millions. Indeed, he was among the most widely read of American writers abroad. Paradoxically, his books were well regarded in the Soviet Union, toward whose Communist ideology Mr. Sinclair was hostile.

One clue to his enormous popularity was his unabashed devotion to the underdog. Another was his extensive documentation. And a third was a primness that led him to consider sexual scenes and four-letter words as "vileness."

Although Mr. Sinclair's yearly earnings sometimes amounted to only a few hundred dollars, his lifetime total was impressive. "I've earned about a million dollars in my life," he estimated recently, "and I've spent nearly all of it--on causes, on books I thought should be published and on books I thought would sell and didn't."

Mr. Sinclair often declared that he was a Socialist. In fact, he was a member of that party from 1902 to 1934, with an interruption for World War I, which he supported and later condemned. He left the party in 1934 to become a Democrat, but continued to regard himself as a Socialist in spirit.

His Socialism, however, was mild and genteel. He envisioned a cooperative commonwealth for the United States, to be achieved gradually and through the electoral process. He was primarily a moralist; his concern was social injustice, not social analysis. There was no evidence that he was a Marxist, much less an advocate of Communism.

Nonetheless, Mr. Sinclair was frequently pictured as a violent revolutionary, a believer in free love and a social incendiary of the most insidious sort. Yet in speech and thought he was a temperate man, who regretted, as he said, that "I've been lied about."

His voice was soft and slightly Southern, and his face was placid. His blue-gray eyes, behind spectacles, were good-humored. He was an agile 5-foot-7-inches, who played a fair game of tennis into his 70's and who subsisted largely on a diet of brown rice, fresh fruit and celery. Tea, coffee, spirituous liquors and tobacco he shunned as injurious.

In his productive years Mr. Sinclair knew many of the famous people of his times--Albert Einstein, Charles Chapman, Bertrand Russell, Theodore Dreiser, Douglas Fairbanks and Luther Burbank, among scores of others. One of the others was H. L. Mencken, the earthy editor of The American Mercury, with whose political conservatism and defense of drinking Mr. Sinclair often argued.

Born in Baltimore

What attracted these opposites was a sentimental affection for Baltimore, where Mr. Sinclair was born Sept. 20, 1878. He was the only child of Upton Beall Sinclair, the scion of a distinguished Southern family, and Priscilla Harden Sinclair. The father was, in succession, a salesman of whisky, straw hats and men's clothing, who, his son recalled, "could never get away from drink." His mother's married life "was poisoned by alcohol" as his father drank himself to death.

"It made an indelible impression upon my childish soul," Mr. Sinclair wrote in his autobiography, "and is the reason why I am a Prohibitionist."

The family alternated between poverty and moderate wealth. Explaining the effect of this on his career, Mr. Sinclair once remarked:

"Readers of my novels know that I have one favorite theme, the contrast between the social classes; there are characters from both worlds, the rich and the poor, and the plots are contrived to carry you from one to the other. The explanation is that as far back as I can remember, my life was a series of Cinderella transformations; one night I would be sleeping on a vermin-ridden sofa in a lodging house, and the next night under silken coverlets in a fashionable home. It all depended on whether my father had the money for that week's board."

Shy, precocious and introspective, Upton taught himself to read at the age of 5, and his mother supervised his education until he was 10 and entered school. "I knew everything but arithmetic," he said.

Lived in New York

By that time the Sinclairs were living in New York, and the boy went to grammar school, completing eight grades in less than two years. He had to repeat the last grade to mark time for admission to City College, then chiefly a high school, which he entered a few days before his 14th birthday.

While there he made his debut as a professional writer. "I wrote a story about a pet bird," he recalled, "making it serve to prove the innocence of a colored boy accused of arson." Argosy magazine paid him $25 for the yarn. He went on from that to selling jokes to Life, Judge and Puck, and when he graduated from City College after five years he was a full-fledged pulp writer. At one point he was producing stories simultaneously about life at West Point and at Annapolis for $40 a story.

Each story was about 30,000 words long. Then, as later, he had an awesome fecundity. When he was attending lectures at Columbia after his City College days, he wrote 8,000 words a day, Sundays included. "I kept two secretaries working all the time, taking dictation one day and transcribing the next," he said.

Mr. Sinclair was equally frenzied as a reader. Over one Christmas holiday of two weeks he read all of Shakespeare and all the poetry of Milton. In addition, at Columbia, he taught himself to read French in six weeks, and galloped through Musset, Daudet, Hugo, Flaubert, Balzac and Zola. He also taught himself Italian and, later, Esperanto and German.

Mr. Sinclair's introduction to practical politics occurred in his student days when he helped campaign for William Travers Jerome, the anti-Tammany Hall reformer. "I learned very quickly," he wrote in disillusion, "for my knight-hero, Jerome, was elected triumphantly and did absolutely nothing, and all forms of graft went on in New York City just as they always had."

Wherever Mr. Sinclair looked he saw corruption triumphant and virtue a dauntless but battered cause. "The vision of life that had come to me must be made known to the world, in order that men and women might be won from their stupid and wasteful ways of life," he thought. "Long ago my friend Mike Gold wrote me a letter, scolding me severely for what he called my 'Jesus complex'; I answered that the world needs a Jesus more than it needs anything else."

Gave Up Potboilers

But before Mr. Sinclair embarked upon his mission he decided to give up potboilers for more substantial literature.

His first effort, "Springtime and Harvest," was a callow novel about a woman redeemed by high and noble love. It was privately published in 1901 and then reissued as "King Midas" by Funk & Wagnalls. On the strength of its middling success he married Miss Meta H. Fuller.

The union, beset by poverty and naivete, ended in 1911 in a blaze of scandal. Mrs. Sinclair fell in love with Harry Kemp, the poet, and Mr. Sinclair, then in the Netherlands, obtained a divorce. In referring to this marriage in later writings, the author called himself Thyrsis and his wife Corydon, the appellations of two rustics in Virgil's "Eclogues."

Mr. Sinclair's formal introduction to Socialism was effected in 1902 by Leonard D. Abbott, also a writer, who gave him party pamphlets to read. He then met George D. Herron, an influential Socialist, and Gaylord Wilshire, who ran a Socialist periodical for which Mr. Sinclair wrote. His broadsides also appeared in Appeal to Reason, a Socialist weekly with more than a half-million circulation.

Meantime, Upton and Meta Sinclair and their infant son David moved to a shack near Princeton, N. J., where Mr. Sinclair wrote a Civil War novel that impressed the editor of Appeal to Reason, who urged him to write a novel about wage slavery. Thus encouraged, he went to Chicago in 1904 for seven weeks of research in the packinghouse district.

'Tears and Anguish'

The result was "The Jungle," a novel centering on the life of a Lithuanian immigrant family, which he wrote "with tears and anguish" in three months. Five publishers rejected it before Doubleday, Page & Co. took it. Published in February, 1906, the book's descriptions of the filthy conditions in the meat plants stirred the country. "I aimed at the public's heart," the author said, "and by accident I hit it in the stomach."

Within a month or so, President Theodore Roosevelt was receiving 100 letters a day demanding a Federal cleanup of the meat industry. Roosevelt called Mr. Sinclair to the White House for a firsthand account of his findings, and ordered an investigation that culminated in the first Federal pure-food statute.

"The Jungle" brought its author instant fame. Photographed and interviewed, he kept up a drumfire of charges about what was then called the Beef Trust. The prodding was intense enough to annoy Roosevelt, who sent a message to Mr. Sinclair's publisher. "Tell Sinclair to go home and let me run the country for a while," it said.

(Fame from "The Jungle" endured into 1967, when the aged writer was again invited to the White House, this time to witness the singing of a new pure-food law.)

With some of his earnings from "The Jungle," Mr. Sinclair helped organize the Helicon Home Colony, an experiment in high-minded communal living that borrowed its name from the legendary home of the Greek Muses. The professors, writers, poets and critics established their Parnassian colony on the Palisades, near Fort Lee, N. J., and it lasted from November, 1906, to the following March, when it was destroyed by fire. Often depicted as a Bohemian colony, Helicon Hall, as it was known, was actually an exercise in the austere life.

After a trip to California and further writing, Mr. Sinclair repaired to Bernarr Macfadden's health institute at Battle Creek, Mich., for attention to his digestive processes. He had been bothered by stomach ailments for some time until he found his guru in Mr. Macfadden, a self-styled body culturist and a diet faddist. Mr. Macfadden convinced his patient of the merits of periodic fasting and of such gastronomic combinations as sour milk and dates. The grateful writer never ceased his public enthusiasm for nutritional oddities.

With the breakup of his marriage, Mr. Sinclair traveled in Europe, to whose Socialist-oriented literary lights he was a hero to be feted. Returning home after his divorce, he married Miss Mary Craig Kimbrough, a gentle Mississippian, with whom he lived in contentment until her death in 1961. His third wife was the former Mrs. Mary Elizabeth Willis, who died in 1967.

The writer forsook his desk briefly in 1912 to engage in the celebrated strike of silk workers in Paterson, N. J. In this he was joined by the leading radicals of the day, who included Big Bill Haywood of the Industrial Workers of the World; Elizabeth Gurley Flynn, later a leading Communist; Carlo Tresca, the anarchist; and John Reed, the future Communist. About that time he also met Walter Lippmann, the columnist, who as a Harvard student had belonged to the Intercollegiate Socialist Society, which Mr. Sinclair had founded with Jack London in 1905.

Supported Role in War

Mr. Sinclair's devotion to the Socialist party was suspended when the United States entered World War I in 1917. Not only did he resign, but he also put out a magazine, Upton Sinclair's, to support American entry into the conflict. Lasting 10 issues, it attained a circulation of 10,000 copies a month until it was discontinued in 1919.

The author later regretted his support of the war, and he was bitterly disappointed by the peace settlement. Nonetheless, the incident embittered many Socialists, to whom Mr. Sinclair became a renegade. He subsequently was readmitted to the party, which edged to the right in the postwar years, but his activity in it was minimal.

Mr. Sinclair's fame, which had dwindled during the war, was rehabilitated by "The Brass Check," his book about the suppression and distortion of news by what he called "the big-business press" and by the news agencies. The title was an allusion to prostitution, since a brothel customer at that time bought a brass marker from the madam and gave it to the prostitute as evidence that he had paid in advance for her favors.

Turned down by commercial publishers, Mr. Sinclair serialized his documented indictment in Appeal to Reason and published it in book form at his own expense, including one printing on brown wrapping paper. "The Brass Check," its author recalled, "created a tremendous sensation," and it shamed many newspapers into raising their ethical standards.

In the nineteen-twenties Mr. Sinclair was one of the first board members of the American Civil Liberties Union and a founder of its branch in Southern California, where he had gone to live and to write. He produced two books advocating educational reform, another analyzing world literature, and another on the oil industry.

"Oil!," which contained some chapters about Hollywood, had the distinction of being banned in Boston because a character in it mentioned the phrase "birth control."

The author visited that city to cash in on the publicity and came to meet Bartolomeo Vanzetti ("one of the wisest and kindest persons I ever knew&quot who, with Nicola Sacco, was executed in 1927 for a payroll robbery that many historians believe they did not commit. The Sacco-Vanzetti case, the cause celebre of the twenties, was retold in "Boston," one of Mr. Sinclair's finest novels.

In the early thirties, Mr. Sinclair was converted to a belief in psychic phenomena and wrote a book about them, "Mental Radio," that he felt important enough to reprint in 1962. At the same time he wrote "The Wet Parade," an impassioned plea for Prohibition. And from materials furnished by William Fox, the motion picture tycoon, he wrote "Upton Sinclair Presents William Fox," a partisan exposition of Mr. Fox's many business troubles in Hollywood. As a spin-off of his interest in the movies, Mr. Sinclair, in 1933, was a sponsor of Sergei Eisenstein's classic documentary, "Thunder Over Mexico."

Although Mr. Sinclair had often sought office as a Socialist--the House in 1906 and 1920, the Senate in 1922 and Governor of California in 1926, 1930 and 1934--his race in 1934 was his most dazzling. Of a population of seven million in that year, California had a million out of work, its public relief funds were exhausted and its industries were all but stilled.

"To me the remedy was obvious," Mr. Sinclair said. "The factories were idle and the workers had no money. Let them be put to work on the state's credit and produce goods for their own use, and set up a system of exchange by which the goods could be distributed."

Politicians Astonished

This was the essence of EPIC--End Poverty in California--the platform on which Mr. Sinclair ran in the Democratic primary. To the astonishment and shock of professional politicians, he won by 436,000 votes.

When Mr. Sinclair faced Frank E. Merriam, the incumbent Republican, in the general election, it seemed obvious to many observers that "Uppie," as the Democrat was affectionately called, was going to win. The conservative Los Angeles Times, however, was instrumental in bringing about his defeat by conducting an inflammatory campaign that pictured him as a man who would not only "sovietize" the state but also introduce free love and the nationalization of children.

That newspaper and others succeeded in frightening substantial numbers of conventional voters. The movie industry, moreover, threatened its employes with dismissal if they voted for Mr. Sinclair. In addition, the national Democratic party quietly worked to scuttle the EPIC movement. In the face of these factors, Mr. Sinclair's zealous campaigning with an amateur organization rolled up a remarkable total of 879,000 votes, about 200,000 short of victory.

Writing Pace Slackened

Retiring from electoral politics for good, he devoted his time to further writing--a one-act play about his cousin, Wallis Warfield, now the Dutchess of Windsor; a novel about Henry Ford; and the Lanny Budd series. His pace slackened in the nineteen-fifties to only eight books--one a temperance plea--in 10 years. In 1960 he published some of his letters, and his autobiography appeared in 1962.

Looking back on his life a couple of years ago, Mr. Sinclair concluded it had been one of accomplishment. Indeed, he specified 10 achievements: clean meat; better newspapers; the ending of "wage slavery" in the Rocky Mountain mining camps; spurring an interest in psychic phenomena; helping to organize the American Civil Liberties Union; his EPIC campaign; his democratic influence in Japan, where his books were widely circulated; his campaign against drinking; his founding of the college Socialist society, and the Lanny Budd books.

"In politics and economics," he summed up, "I believe what I have believed ever since I discovered the Socialist movement at the beginning of this century. I have incorporated those beliefs in a hundred books and pamphlets and numberless articles. My books have been translated into 40 languages, and millions of people have read them.

"What those millions have found is not only a defense of social justice but an unwavering conviction that true social justice can be achieved and maintained only through the democratic process."
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