Hedge Fund Billionaires Are Desperately Spending Money to Attack Bernie Sanders

A new advertisement released by Future 45 criticizes Sanders’ proposed minimum wage increase and health care for all.

Source: AlterNet

Author: Susan Lazare

Emphasis Mine

It is no surprise that hedge fund billionaires oppose Bernie Sanders, the U.S. senator and 2016 presidential hopeful who has proposed a .5 percent speculation tax and pledged to tackle wealth inequality.

A new article in the Intercept finds that hedge fund managers have banded together to form their own super PAC, called Future 45, and it has started launching attacks on the Sanders campaign. In a new advertisement circulating this week, Future 45 goes beyond the individual, taking aim at the very tenets of Sanders’ candidacy: a $15 minimum wage, free college and health care for all.

(N.B.: go to link to see video)

Reporter Zaid Jilani notes that the super PAC has some well-heeled backers:

Future 45 is run by Brian O. Walsh, a longtime Republican operative who has in the past served as political director for the National Republican Congressional Committee. Most recently, he was president of the American Action Network, a dark money group that was the second-largest outside spender in 2010.

Over the last year, Future 45 has been funded primarily by hedge fund managers. It has received $250,000 each from two billionaire Rubio-backers: Paul Singer, who runs Elliott Management, and Ken Griffin, who runs Citadel.

The Future 45 advertisement, released in the lead-up to the South Carolina primary, is the super PAC’s first to go after Sanders. The organization has produced at least five advertisements since October 2015 criticizing Hillary Clinton.

Meanwhile, Future 45 is not the only super PAC spending large sums this month. According to the Washington Post, the biggest super PAC backing Hillary Clinton, Priorities USA Action, “is making its first significant foray into the 2016 primary, launching a radio campaign in South Carolina and spearheading a $4.5 million effort to drive early turnout of African American, Latino and female voters in states that hold contests in March.”

Sarah Lazare is a staff writer for AlterNet. A former staff writer for Common Dreams, Sarah co-edited the book About Face: Military Resisters Turn Against War. Follow her on Twitter at @sarahlazare.

See:http://www.alternet.org/election-2016/watch-hedge-fund-billionaires-are-desperately-spending-money-attack-bernie-sanders?akid=13986.123424.a3P-OK&rd=1&src=newsletter1050870&t=6

Give Karl Marx a Chance to Save the World Economy: George Magnus

s he wrote in “Das Kapital,” companies’ pursuit of profits and productivity would naturally lead them to need fewer and fewer workers, creating an “industrial reserve army” of the poor and unemployed: “Accumulation of wealth at one pole is, therefore, at the same time accumulation of misery.”

Karl Marx and the World Economy

By George Magnus

Policy makers struggling to understand the barrage of financial panics, protests and other ills afflicting the world would do well to study the works of a long-dead economist: Karl Marx. The sooner they recognize we’re facing a once-in-a-lifetime crisis of capitalism, the better equipped they will be to manage a way out of it.

The spirit of Marx, who is buried in a cemetery close to where I live in north London, has risen from the grave amid the financial crisis and subsequent economic slump. The wily philosopher’s analysis of capitalism had a lot of flaws, but today’s global economy bears some uncanny resemblances to the conditions he foresaw.

Consider, for example, Marx’s prediction of how the inherent conflict between capital and labor would manifest itself. As he wrote in “Das Kapital,” companies’ pursuit of profits and productivity would naturally lead them to need fewer and fewer workers, creating an “industrial reserve army” of the poor and unemployed: “Accumulation of wealth at one pole is, therefore, at the same time accumulation of misery.”

The process he describes is visible throughout the developed world, particularly in the U.S. Companies’ efforts to cut costs and avoid hiring have boosted U.S. corporate profits as a share of total economic output to the highest level in more than six decades, while the unemployment rate stands at 9.1 percent and real wages are stagnant.

U.S. income inequality, meanwhile, is by some measures close to its highest level since the 1920s. Before 2008, the income disparity was obscured by factors such as easy credit, which allowed poor households to enjoy a more affluent lifestyle. Now the problem is coming home to roost.

Over-Production Paradox

Marx also pointed out the paradox of over-production and under-consumption: The more people are relegated to poverty, the less they will be able to consume all the goods and services companies produce. When one company cuts costs to boost earnings, it’s smart, but when they all do, they undermine the income formation and effective demand on which they rely for revenues and profits.

This problem, too, is evident in today’s developed world. We have a substantial capacity to produce, but in the middle- and lower-income cohorts, we find widespread financial insecurity and low consumption rates. The result is visible in the U.S., where new housing construction and automobile sales remain about 75% and 30% below their 2006 peaks, respectively.

As Marx put it in Kapital: “The ultimate reason for all real crises always remains the poverty and restricted consumption of the masses.”

Addressing the Crisis

So how do we address this crisis? To put Marx’s spirit back in the box, policy makers have to place jobs at the top of the economic agenda, and consider other unorthodox measures. The crisis isn’t temporary, and it certainly won’t be cured by the ideological passion for government austerity.

Here are five major planks of a strategy whose time, sadly, has not yet come.

First, we have to sustain aggregate demand and income growth, or else we could fall into a debt trap along with serious social consequences. Governments that don’t face an imminent debt crisis — including the U.S., Germany and the U.K. — must make employment creation the litmus test of policy. In the U.S., the employment-to-population ratio is now as low as in the 1980s. Measures of underemployment almost everywhere are at record highs. Cutting employer payroll taxes and creating fiscal incentives to encourage companies to hire people and invest would do for a start.

Lighten the Burden

Second, to lighten the household debt burden, new steps should allow eligible households to restructure mortgage debt, or swap some debt forgiveness for future payments to lenders out of any home price appreciation.

Third, to improve the functionality of the credit system, well-capitalized and well-structured banks should be allowed some temporary capital adequacy relief to try to get new credit flowing to small companies, especially. Governments and central banks could engage in direct spending on or indirect financing of national investment or infrastructure programs.

Fourth, to ease the sovereign debt burden in the euro zone, European creditors have to extend the lower interest rates and longer payment terms recently proposed for Greece. If jointly guaranteed euro bonds are a bridge too far, Germany has to champion an urgent recapitalization of banks to help absorb inevitable losses through a vastly enlarged European Financial Stability Facility — a sine qua non to solve the bond market crisis at least.

Build Defenses

Fifth, to build defenses against the risk of falling into deflation and stagnation, central banks should look beyond bond- buying programs, and instead target a growth rate of nominal economic output. This would allow a temporary period of moderately higher inflation that could push inflation-adjusted interest rates well below zero and facilitate a lowering of debt burdens.

We can’t know how these proposals might work out, or what their unintended consequences might be. But the policy status quo isn’t acceptable, either. It could turn the U.S. into a more unstable version of Japan, and fracture the euro zone with unknowable political consequences. By 2013, the crisis of Western capitalism could easily spill over to China, but that’s another subject.”

(George Magnus is senior economic adviser at UBS and author of “Uprising: Will Emerging Markets Shape or Shake the World Economy?” The opinions expressed are his own.)

To contact the Bloomberg View editorial board: view@bloomberg.net.

emphasis mine

see:http://www.bloomberg.com/news/2011-08-29/give-marx-a-chance-to-save-the-world-economy-commentary-by-george-magnus.html

We’re Not in Lake Wobegon Anymore

“I don’t want to abolish government. I simply want to reduce it to the size where I can drag it into the bathroom and drown it in the bathtub.” Republicans: The No.1 reason the rest of the world thinks we’re deaf, dumb and dangerous.

Written in 2004.

How did the Party of Lincoln and Liberty transmogrify into the party of Newt Gingrich’s evil spawn and their Etch-A-Sketch president, a dull and rigid man, whose philosophy is a jumble of badly sutured body parts trying to walk?

By GARRISON KEILLOR

Something has gone seriously haywire with the Republican Party. Once, it was the party of pragmatic Main Street businessmen in steel-rimmed spectacles who decried profligacy and waste, were devoted to their communities and supported the sort of prosperity that raises all ships. They were good-hearted people who vanquished the gnarlier elements of their party, the paranoid Roosevelt-haters, the flat Earthers and Prohibitionists, the antipapist antiforeigner element. The genial Eisenhower was their man, a genuine American hero of D-Day, who made it OK for reasonable people to vote Republican. He brought the Korean War to a stalemate, produced the Interstate Highway System, declined to rescue the French colonial army in Vietnam, and gave us a period of peace and prosperity, in which (oddly) American arts and letters flourished and higher education burgeoned—and there was a degree of plain decency in the country. Fifties Republicans were giants compared to today’s. Richard Nixon was the last Republican leader to feel a Christian obligation toward the poor.

In the years between Nixon and Newt Gingrich, the party migrated southward down the Twisting Trail of Rhetoric and sneered at the idea of public service and became the Scourge of Liberalism, the Great Crusade Against the Sixties, the Death Star of Government, a gang of pirates that diverted and fascinated the media by their sheer chutzpah, such as the misty-eyed flag-waving of Ronald Reagan who, while George McGovern flew bombers in World War II, took a pass and made training films in Long Beach. The Nixon moderate vanished like the passenger pigeon, purged by a legion of angry white men who rose to power on pure punk politics. “Bipartisanship is another term of date rape,” says Grover Norquist, the Sid Vicious of the GOP. “I don’t want to abolish government. I simply want to reduce it to the size where I can drag it into the bathroom and drown it in the bathtub.” The boy has Oedipal problems and government is his daddy.

The party of Lincoln and Liberty was transmogrified into the party of hairy-backed swamp developers and corporate shills, faith-based economists, fundamentalist bullies with Bibles, shriekChristians of convenience, freelance racists, misanthropic frat boys, shreiking midgets of AM radio, tax cheats, nihilists in golf pants, brownshirts in pinstripes, sweatshop tycoons, hacks, fakirs, aggressive dorks, Lamborghini libertarians, people who believe Neil Armstrong’s moonwalk was filmed in Roswell, New Mexico, little honkers out to diminish the rest of us, Newt’s evil spawn and their Etch-A-Sketch president, a dull and rigid man suspicious of the free flow of information and of secular institutions, whose philosophy is a jumble of badly sutured body parts trying to walk. Republicans: The No.1 reason the rest of the world thinks we’re deaf, dumb and dangerous.

Rich ironies abound! Lies pop up like toadstools in the forest! Wild swine crowd round the public trough! Outrageous gerrymandering! Pocket lining on a massive scale! Paid lobbyists sit in committee rooms and write legislation to alleviate the suffering of billionaires! Hypocrisies shine like cat turds in the moonlight! O Mark Twain, where art thou at this hour? Arise and behold the Gilded Age reincarnated gaudier than ever, upholding great wealth as the sure sign of Divine Grace.

Here in 2004, George W. Bush is running for reelection on a platform of tragedy—the single greatest failure of national defense in our history, the attacks of 9/11 in which 19 men with box cutters put this nation into a tailspin, a failure the details of which the White House fought to keep secret even as it ran the country into hock up to the hubcaps, thanks to generous tax cuts for the well-fixed, hoping to lead us into a box canyon of debt that will render government impotent, even as we engage in a war against a small country that was undertaken for the president’s personal satisfaction but sold to the American public on the basis of brazen misinformation, a war whose purpose is to distract us from an enormous transfer of wealth taking place in this country, flowing upward, and the deception is working beautifully.

The concentration of wealth and power in the hands of the few is the death knell of democracy. No republic in the history of humanity has survived this. The election of 2004 will say something about what happens to ours. The omens are not good.

Our beloved land has been fogged with fear—fear, the greatest political strategy ever. An ominous silence, distant sirens, a drumbeat of whispered warnings and alarms to keep the public uneasy and silence the opposition. And in a time of vague fear, you can appoint bullet-brained judges, strip the bark off the Constitution, eviscerate federal regulatory agencies, bring public education to a standstill, stupefy the press, lavish gorgeous tax breaks on the rich.

There is a stink drifting through this election year. It isn’t the Florida recount or the Supreme Court decision. No, it’s 9/11 that we keep coming back to. It wasn’t the “end of innocence,” or a turning point in our history, or a cosmic occurrence, it was an event, a lapse of security. And patriotism shouldn’t prevent people from asking hard questions of the man who was purportedly in charge of national security at the time.

Whenever I think of those New Yorkers hurrying along Park Place or getting off the No.1 Broadway local, hustling toward their office on the 90th floor, the morning paper under their arms, I think of that non-reader George W. Bush and how he hopes to exploit those people with a little economic uptick, maybe the capture of Osama, cruise to victory in November and proceed to get some serious nation-changing done in his second term.

This year, as in the past, Republicans will portray us Democrats as embittered academics, desiccated Unitarians, whacked-out hippies and communards, people who talk to telephone poles, the party of the Deadheads. They will wave enormous flags and wow over and over the footage of firemen in the wreckage of the World Trade Center and bodies being carried out and they will lie about their economic policies with astonishing enthusiasm.

The Union is what needs defending this year. Government of Enron and by Halliburton and for the Southern Baptists is not the same as what Lincoln spoke of. This gang of Pithecanthropus Republicanii has humbugged us to death on terrorism and tax cuts for the comfy and school prayer and flag burning and claimed the right to know what books we read and to dump their sewage upstream from the town and clear-cut the forests and gut the IRS and mark up the constitution on behalf of intolerance and promote the corporate takeover of the public airwaves and to hell with anybody who opposes them.

This is a great country, and it wasn’t made so by angry people. We have a sacred duty to bequeath it to our grandchildren in better shape than however we found it. We have a long way to go and we’re not getting any younger.

Dante said that the hottest place in Hell is reserved for those who in time of crisis remain neutral, so I have spoken my piece, and thank you, dear reader. It’s a beautiful world, rain or shine, and there is more to life than winning.

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Garrison Keillor is the host and writer of A Prairie Home Companion, now in its 34th year on the air and a syndicated newspaper columnist.

Emphasis Mine.

see:http://readersupportednews.org/off-site-opinion-section/72-72/7193-were-not-in-lake-wobegon-anymore

3 Reality-Based Charts Your Right-Wing Relatives Will Have a Hard Time Ignoring

Here are some reality-based charts to help knock down absurd right-wing propaganda about the economy

From AlterNet, by RJ Eskow

Problem: Your right-wing brother-in-law is plugged into the FOX-Limbaugh lie machine, and keeps sending you emails about “Obama spending” and “Obama deficits” and how the “Stimulus” just made things worse.

Solution: Here are three “reality-based” charts to send to him. These charts show what actually happened.

Spending

Bush-Obama Spending Chart

Government spending increased dramatically under Bush. It has not increased much under Obama. Note that this chart does not reflect any spending cuts resulting from deficit-cutting deals.

Deficits

Bush-Obama Deficit Chart

Notes, this chart includes Clinton’s last budget year for comparison.

The numbers in these two charts come from Budget of the United States Government: Historical Tables Fiscal Year 2012. They are just the amounts that the government spent and borrowed, period, Anyone can go look then up. People who claim that Obama “tripled the deficit” are either misled or are trying to mislead.

The Stimulus and Jobs

Bush-Obama-Jobs-Chart

In this chart, the RED lines on the left side — the ones that keep doing DOWN — show what happened to jobs under the policies of Bush and the Republicans. We were losing lots and lots of jobs every month, and it was getting worse and worse.The BLUE lines — the ones that just go UP — show what happened to jobs when the stimulus was in effect. We stopped losing jobs and started gaining jobs, and it was getting better and better. The leveling off on the right side of the chart shows what happened as the stimulus started to wind down: job creation leveled off at too low a level.

It looks a lot like the stimulus reversed what was going on before the stimulus.

Conclusion: THE STIMULUS WORKED BUT WAS NOT ENOUGH!

More False Things

These are just three of the false things that everyone “knows.” Some others are (click through): Obama bailed out the banks, businesses will hire if they get tax cuts, health care reform cost $1 trillion, Social Security is a Ponzi Scheme or is “going broke”, government spending “takes money out of the economy.”

Why This Matters

These things really matter. We all want to fix the terrible problems the country has. But it is so important to know just what the problems are before you decide how to fix them. Otherwise the things you do to try to solve those problems might just make them worse. If you get tricked into thinking that Obama has made things worse and that we should go back to what we were doing before Obama — tax cuts for the rich, giving giant corporations and Wall Street everything they want — when those are the things that caused the problems in the first place, then we will be in real trouble.

Emphasis Mine

see:http://www.alternet.org/story/152201/3_reality-based_charts_your_right-wing_relatives_will_have_a_hard_time_ignoring?akid=7484.123424.OxQ7x8&rd=1&t=12

GOP’s Debt Solution: Soak the Poor

A single mother struggling to keep a roof over her child’s head would probably love to trade places with a six-figure earner and bear the burden of paying federal income tax on a comfortable salary.

By Carl Gibson, Reader Supported News

magine a bulky schoolyard bully routinely holding you and your classmates upside-down by your shoes and pocketing the money that falls out, using the amount gained from his extortion to buy a new bike at the end of each semester. Now imagine enduring this process every day, all year, throughout each grade of school.

What if one day, the bully actually complained that you weren’t bringing enough lunch money to school because he wanted a nicer bike? Would you comply and let him rob you of a larger amount, or would you and your fellow classmates surround the teacher and demand the bully return the money he stole?

Despite billionaire Warren Buffett‘s pleas to reduce the deficit by shifting the tax burden to the super-rich, Republican members of Congress have officially come out in favor of raising taxes on the poor, while fiercely protecting trillions in tax handouts for billionairesbig oil and corporate jet owners. Right-wing politicians and corporate-media pundits have now set their sights on “lucky duckies,” or the bottom half of Americans who don’t pay federal income taxes. As law professor Edward Kleinbard noted, this statement is misleading and ignores the need for meaningful reform of our tax code.

Jon Stewart creatively dismantled the poor-people-don’t-pay-taxes argument on The Daily Show, highlighting conservatives who dismissed the $700 billion in revenue gained from ending the Bush tax cuts for the wealthy in 2010. According to Stewart’s calculations, taking exactly half of everything owned by the bottom 50% of Americans would also generate $700 billion, exactly as much revenue as increasing the tax rate for the richest Americans by a modest 3%. Stewart sarcastically suggested Republicans trim the deficit by seizing all assets owned by the bottom half of Americans.

It’s incredibly audacious for the rich to ask the poor to pay more in taxes in order to protect theirbudget-busting tax breaks, especially considering America’s wealth disparity. The gap between the richest and everyone else has grown to levels even greater than on the eve of the crash that triggered the great depression, with the top .001% of Americans now owning 976 times more than the bottom 90%. In 1928, the richest only owned 892 times more than the bottom 90%.

And of course, those accusing the working poor of freeloading ignore the fact that 1 in 4 American jobs don’t even pay poverty wages, or that the federal income tax is inherently designed to avoid hitting the poor, the elderly and working families with children. Such bold accusations also ignore the reality that all of the aforementioned groups still pay roughly one-third of their income in sales, property, payroll and excise taxes.

A single mother struggling to keep a roof over her child’s head would probably love to trade places with a six-figure earner and bear the burden of paying federal income tax on a comfortable salary. But would a six-figure earner be willing to work three part-time minimum wage jobs and still worry about how the rent is going to be paid at the end of the month? Would he really be eager to forgo paying federal income tax if it meant he had to scrape quarters together to buy beans, lentils and ramen noodles for dinner?

Big oil doesn’t need $4 billion per year in taxpayer subsidies – they’re making record profits. Excessive tax cuts for millionaires and billionaires won’t create jobs – the unemployment rate doubledafter ten years of the Bush tax cuts. And corporate jet owners don’t need a tax break while public employees nationwide are losing their jobs to budget cuts.

America needs to surround our teacher before recess and make a strong statement together – the bullies don’t need to rob us of our lunch money to continue their excessive lifestyles. Let’s stop subsidizing wealth for the sake of wealth, and leave struggling middle-class families alone.


Carl Gibson, 24, of Lexington, Kentucky, is a spokesman and organizer for US Uncut, a nonviolent, creative direct-action movement to stop budget cuts by getting corporations to pay their fair share of taxes. He graduated from Morehead State University in 2009 with a B.A. in Journalism before starting the first US Uncut group in Jackson, Mississippi, in February of 2011. Since then, over 20,000 US Uncut activists have carried out more than 300 actions in over 100 cities nationwide. You may contact Carl at carl@rsnorg.org.

Reader Supported News is the Publication of Origin for this work. Permission to republish is freely granted with credit and a link back to Reader Supported News.”

Emphasis Mine

see:http://readersupportednews.org/opinion2/279-82/7202-gops-debt-solution-soak-the-poor

Excess pay for a few is Good for America,

Provided most of it goes into our treasury as income tax.

In 1960, the high marginal rate was 91%, at incomes > $100,000, and, contrary to Laffer, things were fine.

In 1970, it was 70%.

Today, its about 35%

Consider these progressive rates:

> 250,000       40%

>500,000        45%

> 1,000,000   50%

> 2,000,000   60%

> 5,000,000   65%

> 6,000,000   70%

> 7,000,000   75%

> 8,000,000   80%

> 9,000,000   85%

> 10,000,000 90%

The NY American League team alone might finance SCHIP!

For a Change, Tax the Very Rich at a Fair Rate

In the speech of this (very new) century, Our President proposed increasing the tax rate on the highest 2% of incomes.

From alternet:

“America’s super-rich are paying far less of their incomes in taxes than average Americans who punch time clocks. This is grossly unfair. The good news: Under Mr. Obama’s new plan to cut the deficit in half, the very richest Americans will start paying something closer to their fair tax share.”

“The current top tax rate on “ordinary” work income sits at 35 percent. But dividends and capital gains from the buying and selling of most assets face only a 15 percent top rate. That’s why in 2006, America’s top 400 paid just 17.2 percent of their $263 million average incomes in federal tax.

Millions of middle-class American families, once you tally income and payroll taxes, pay far more of their incomes in tax. One particularly striking example from billionaire investor Warren Buffett: In 2006, he paid 17.7 percent of his income in total taxes. His secretary, who made $60,000, paid 30 percent of hers.”

At the start of the Clinton Administration, the marginal tax rates were raised a few points, and a balancing of the budget was achieved as well as high employment.

see:http://www.alternet.org/workplace/128745