Category: Financial


Obama’s Super Secret Treaty Which Will Push The Deindustrialization Of America Into Overdrive

Barack-Obama-With-His-Hand-On-The-Resolute-Desk-300x300

Did you know that Barack Obama has been secretly negotiating the most important trade agreement since the formation of the World Trade Organization?  Did you know that this agreement will impose very strict Internet copyright rules, ban all “Buy American” laws, give Wall Street banks much more freedom to trade risky derivatives and force even more domestic manufacturing offshore?  If you have not heard about this treaty, don’t feel bad.  Obama has refused to even give Congress a copy of the draft agreement and he has banned members of Congress from attending the negotiations.  The plan is to keep this treaty secret until the very last minute and then to railroad it through Congress and have it signed into law by October.  The treaty is known as “the Trans-Pacific Partnership”, and the nations that are reported to be involved in the development of this treaty include the United States, Canada, Japan, South Korea, Australia, New Zealand, Chile, Peru, Brunei, Singapore, Vietnam and Malaysia.  Opponents of this treaty refer to it as “the NAFTA of the Pacific”, and if it is enacted it will push the deindustrialization of America into overdrive.

The “one world” economic agenda that Barack Obama has been pushing is absolutely killing the U.S. economy.  As you will see later in this article, we are losing jobs and businesses at an astounding pace.  And each new “free trade” agreement makes things even worse.

For example, just check out the impact that the recent free trade agreement that Obama negotiated with South Korea is having on us

  • A 10 percent decline of U.S. exports to Korea
  • The U.S. trade deficit with Korea has climbed 37 percent
  • U.S. auto industry has been crippled
  • Loss of U.S. control where international trade, banking and finance is concerned
  • A projected 159,000 jobs will be lost

Wait a second – I though that “free trade” agreements were actually supposed to increase exports.

So why have they declined by 10 percent?

Did someone make a really bad deal?

And of course we have all seen the economic devastation that NAFTA has wrought.

When NAFTA was pushed through Congress in 1993, the United States actually had a trade surplus with Mexico of 1.6 billion dollars.  By 2010, we had a trade deficit with Mexico of 61.6 billion dollars.

And “free trade” with China has turned out to be a complete and total nightmare as well.

Back in 1985, our trade deficit with China was approximately 6 million dollars (million with a little “m”) for the entire year.

In 2012, our trade deficit with China was 315 billion dollars.  That was the largest trade deficit that one nation has had with another nation in the history of the world.

But instead of learning from the mistakes of the past, Barack Obama is pressing for more “free trade” agreements.

The New York Times is calling the Trans-Pacific Partnership “the most significant international commercial agreement since the creation of the World Trade Organization in 1995“.  It is reportedly going to include a whole host of provisions which would never be able to get through Congress on their own.  Even though this treaty will affect all of our daily lives, the Obama administration is keeping this treaty a total secret.  In fact, Obama won’t even show it to Congress even though members of Congress have asked repeatedly to see it…

The agreement, under negotiation since 2008, would set new rules for everything from food safety and financial markets to medicine prices and Internet freedom. It would include at least 12 of the countries bordering the Pacific and be open for more to join. President Obama has said he wants to sign it by October.

Although Congress has exclusive constitutional authority to set the terms of trade, so far the executive branch has managed to resist repeated requests by members of Congress to see the text of the draft agreement and has denied requests from members to attend negotiations as observers — reversing past practice.

While the agreement could rewrite broad sections of nontrade policies affecting Americans’ daily lives, the administration also has rejected demands by outside groups that the nearly complete text be publicly released.

So exactly who in the world does this guy think that he is?  Why won’t Obama let us know exactly what is in this treaty?

Fortunately, there have been a few leaks.  One thing that we have discovered is that this new treaty would reportedly ban all “Buy American laws“.

That certainly would not be popular if it got out.

And do you remember SOPA?

The American people wanted nothing to do with the very strict Internet copyright provisions of SOPA and loudly expressed their displeasure to members of Congress.

Unfortunately, now the provisions of SOPA are back.  It is being reported that most of the provisions of SOPA have been quietly inserted into this treaty.  If this treaty is enacted, those provisions will become law and the American people will not be able to do anything about it.

Read Full Article Here

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Breaking ’08 Pledge, Leaked Trade Doc Shows Obama Wants to Help Corporations Avoid Regulations


Democracy Now

A draft agreement leaked Wednesday shows the Obama administration is pushing a secretive trade agreement that could vastly expand corporate power and directly contradict a 2008 campaign promise by President Obama. A U.S. proposal for the Trans-Pacific Partnership (TPP) trade pact between the United States and eight Pacific nations would allow foreign corporations operating in the U.S. to appeal key regulations to an international tribunal. The body would have the power to override U.S. law and issue penalties for failure to comply with its ruling. We speak to Lori Wallach, director of Public Citizen’s Global Trade Watch, a fair trade group that posted the leaked documents on its website. “This isn’t just a bad trade agreement,” Wallach says. “This is a ‘one-percenter’ power tool that could rip up our basic needs and rights.” [includes rush transcript]

Guest:

Lori Wallach, director of Public Citizen’s Global Trade Watch.

Global Research

by Frank Morales

Supreme Court backs binding arbitration agreements

The Washington Post

By

Transcript

JUAN GONZÁLEZ: We turn now to a controversial trade pact between the United States and eight Pacific nations that until now has remained largely secret. It’s called the Trans-Pacific Partnership, or TPP. A chapter from the draft agreement leaked Wednesday outlines how it would allow foreign corporations operating in the United States to appeal key regulations to an international tribunal. The body would have the power to override U.S. law and issue penalties for failure to comply with its rulings.

The agreement is being negotiated by the U.S. trade representative, Ron Kirk, appointed by President Obama. But the newly revealed terms contradict promises Obama made while running for president in 2008. One campaign document read in part, quote, “We will not negotiate bilateral trade agreements that stop the government from protecting the environment, food safety, or the health of its citizens; [or] give greater rights to foreign investors than to U.S. investors.”

AMY GOODMAN: Earlier leaks from the draft Trans-Pacific Partnership agreement exposed how it included rules that could increase the cost of medication and make participating countries adopt restrictive copyright measures.

No one from the U.S. trade representative’s office was able to join us, but in a statement to Democracy Now!, they said, quote, “Nothing in our TPP investment proposal could impair our government’s ability to pursue legitimate, non-discriminatory public interest regulation.”

For more, we’re joined by Lori Wallach, director of the fair trade group Public Citizen’s Global Trade Watch. The leaked documents were posted on her organization’s website early Wednesday morning.

Lori, welcome to Democracy Now! Explain what the documents show and what this agreement is about.

LORI WALLACH: Well, it’s been branded as a trade agreement, but really it is enforceable corporate global governance. The agreement requires that every signatory country conform all of its laws, regulations and administrative procedures to what are 26 chapters of very comprehensive rules, only two of which have anything to do with trade. The other 24 chapters set a whole array of corporate new privileges and rights and handcuff governments, limit regulation. So the chapter that leaked—and it’s actually on the website of Citizens Trade Campaign, it’s a national coalition for fair trade—that chapter is the chapter that sets up new rights and privileges for foreign investors, including their right to privately enforce this public treaty by suing our government, raiding our Treasury, over costs of complying with the same policies that all U.S. companies have to comply with. It’s really outrageous.

JUAN GONZÁLEZ: Well, Lori, there’s been a quite a bit of complaint, even in Congress, about the secretive nature of these continuing negotiations. About 600 or so corporate advisers have access to information that even members of Congress don’t? Could you talk about how that has come about?

LORI WALLACH: Well, this is how you get a text and in a potential agreement that is this outrageous. I mean, this isn’t just a bad trade agreement, this is a one-percenter power tool that could rip up our basic needs and rights. How that happens is the negotiations have been done in total secrecy. So, for two-and-a-half years, until this leak emerged, people have suspected what’s going on, because, as you said, under U.S. law there are 600 official advisers, they have security clearance to see the text, they advise the U.S. position. Meanwhile, the senator, Ron Wyden, who is the chairman of the trade committee in the Senate, the committee with jurisdiction over the TPP, has been denied access to the text, as has his staff, who has security clearance, to a point where this man who has supported agreements like this in the past has filed legislation demanding he have the right to see the agreement that he’s supposed to be having oversight with. He’s on the Intelligence Committee, and he has security clearance, so he can see our nuclear secrets. He just can’t see this corporate bill of rights that is trying to be slipped into effect in the name of being a trade agreement. It’s a very elegant Trojan horse strategy. You brand it one thing, and then you put an agenda that could not survive sunshine into this agreement.

We have been able also to get some of the texts on patents, expanding patents for Big Pharma, jacking up medicine prices. And we have analysis on our website, tradewatch.org, as well as information about how to get involved, because these agreements are a little bit like Dracula. You drag them in the sunshine, and they do not fare well. But all of us, and also across all of the countries involved, there are citizen movements that are basically saying, “This is not in our name. We don’t need global enforceable corporate rights. We need more democracy. We need more accountability.”

AMY GOODMAN: Lori Wallach—

LORI WALLACH: And this agreement is the antithesis.

AMY GOODMAN: I want to read part of the comment we got from the U.S. trade representative’s office when we invited them on today’s show. They wrote, quote, “The Obama Administration has infused unprecedented transparency into the TPP negotiations. We have worked with Members of Congress … [and] invited stakeholders to every round of negotiations where they have given presentations and met with individual negotiating teams. … We are always looking for ways to enhance provisions on transparency and public participation.” Lori Wallach, your comment?

LORI WALLACH: Well, to start with, the idea of transparency of the current negotiators is a one-way mirror. We can basically talk to them and do presentations. But as this leak shows, nothing that the public interest organizations—and it’s a huge array of organizations, from faith groups to consumer groups, environmental, labor—nothing that we have said is now reflected in the U.S. position in this negotiation, which I’m sad to say is the most extreme. I mean, the U.S. is even opposing proposals in this agreement to try and make sure countries have the ability to use financial regulation to ensure financial stability. The U.S. positions don’t reflect what we’ve been saying, but we can talk at them.

But just to put this in perspective, in the last negotiation of a big regional agreement—that was the Free Trade Area of the Americas in the 1990s, 34 countries, very complicated agreement—two years into the negotiation, the entire draft text was published officially by the governments. Here we are, three years into this negotiation with eight countries, and they will not publish a sentence. In fact, it finally leaked that they had signed a special agreement not to release any draft text for four years after negotiations are done—a secrecy agreement on top of the normal secrecy. And when asked, Ron Kirk, the trade representative, why—in the past, the U.S. has sent out draft texts. The WTO, hardly a paradigm of transparency, publishes draft texts. “What the—what’s going on?” he was asked. He said, “Well, in the past, for instance, the Free Trade Area of the Americas, when the text was revealed, we couldn’t finish it.” Now, what sort of indictment is that of what they are doing behind closed doors, that merely allowing the public who will live with the results and Congress to know what’s up is going to somehow derail the plans to lock us in? Because what’s really important to understand about these agreements, it’s not about trade, and it’s like cement. Once the cement dries in these agreements, you can’t change the rules, unless all the agreement—all the other countries agree to amend the agreement.

So what we’re talking about with this leaked chapter is literally a parallel system of justice. People have domestic laws and courts, trying to defend our rights and get our needs met. Corporations would have a parallel system of private attorneys, three of them, no conflict-of-interest laws. The U.S. and the other countries would submit themselves to the jurisdiction of this corporate kangaroo court, and these three random attorneys would have the right to order the U.S. government to pay unlimited amounts of our tax dollars to corporations and investors who, A, claim regulatory costs need to be refunded, or, B, are saying they’re not being treated well enough, regardless if the policies they dislike are the exact same ones that apply to all of us. Even under NAFTA’s system, which has some of this, $350 million have already been paid out to corporations by governments, over toxics bans, zoning laws, timber rules. This is a sneaky outrage. And if people actually put a spotlight on it, we can stop it.

JUAN GONZÁLEZ: So, Lori, I wanted to ask you—you mentioned the eight nations that are involved in the negotiations. Which nations are they? And also, the issue of the way this is being negotiated, the number could expand dramatically in the future. Can you talk about that?

LORI WALLACH: Well, the reason why it is so incredibly important that this agreement be exposed is this could well be the last agreement that’s negotiated. So, many of your listeners and viewers have been involved in the sneaky way trade agreements have been used by corporations to limit regulation and to foster a race to the bottom since NAFTA. And each of these agreements has gotten bolder, more expansive in its limits on government regulation and in its granting of corporate powers. This one could be the end, because what they intend to do is leave it open, once it’s done, for any other country to join. So, this is an agreement that ultimately could have the whole world in it as a set of binding corporate guarantees of new rights and privileges, enforced with cash sanctions and trade sanctions. It is not an exaggeration to say that the TPP threatens to become a regime of binding global governance, right at the time that the Occupy movement and movements around the world are demanding more power and control. This is the fightback. This is locking in the bad old way plus. And in addition, the way that the agreement is being negotiated, these rules would require that you not only change all of your existing laws—so good progressive laws would have to be gotten rid of—but that, in the future, you don’t create new laws.

Now, the agreement now includes Australia, Brunei, New Zealand, Singapore, Chile, Peru and Vietnam, as well as the U.S., plus Malaysia has now joined. And the agreement includes all of the NAFTA-style privileges that promote offshoring. But more drastically, it has all sorts of new corporate privileges, so the right to extend medicine and seed monopolies to jack up medicine prices, even the right to challenge formularies, medicine prescription group buying plans. For instance, what the Obama administration has put in their health reform bill, they are at the negotiating table behind closed doors trying to kill the right to use for other countries. Or the financial rules would have just a limit. Countries aren’t allowed to ban risky financial products or services, at the same time that we’re trying to issue regulations under financial reform. And the agreement even meddles with how we spend our local tax dollars. For folks around the country who are doing sweat-free campaigns, who are doing living wage campaigns, green buying campaigns, this agreement says, A, you can’t have local preferences, so no “buy New York” state preference to recycle money back in your state, your tax dollars, no “buy American,” but also conditions like a product has to have recycled content or that that uniform has to be sweat-free. Those kind of conditions can be challenged. It is an incredible corporate power tool. It’s only gotten this far because it’s been secret. And people in the other countries don’t want it either. But our country is the one that’s largely pushing the most radical provisions, which is why it was so important for this text, which everyone can see an analysis of at tradewatch.org, to be made public, to make people aware of what’s really going on.

AMY GOODMAN: Lori, the last round of negotiations on the trade agreement took place in Dallas. While there, Obama’s appointed trade representative, Ron Kirk, spoke at an event for the local business community. The Yes Men took the opportunity to present Kirk, the former mayor of Dallas, with a mock award. This is a clip.

GIT HAVERSALL: Hello. Thank you so much for being here. My name is Git Haversall. And on behalf of the Texas Corporate Power Partnership, we are very, very pleased to announce that the U.S. trade negotiators are the winners of our 2012 Corporate Power Tool Award. I would like to personally thank the negotiators for their relentless efforts. The TPP agreement is shaping up to be a great way for us to maximize our profits, regardless of what the public of this nation or any other nation thinks is right.

AMY GOODMAN: The next round of negotiations on TPP are scheduled over the July 4th holiday weekend. Lori Wallach, can you comment on this? And also, what I assume would be President Obama’s response, if talking behind the scenes, like perhaps tonight when he’s going to be at Sarah Jessica Parker house with—with raising a lot of money—the financial sector is donating $37 million to Mitt Romney so far, the Obama administration’s haul, $4.8 million—that even his own Wall Street supporters are going over to Romney right now, so he would say he is doing better than Romney would in trying to take on these guys.

LORI WALLACH: I think that, for President Obama, there are two scenarios. One is, he has not been on top of what these negotiators are doing. This really has been under the radar. It’s so important that the text finally came out, because it sends a warning to Congress, to the public, etc., and that basically he’s got negotiators on the loose. They are many of the same people who during the Clinton administration got us into NAFTA, that recycled back into the trade negotiating team. The other alternative explanation is just the money one, which is, it is the case that this is an agreement the 1 percent loves. This is sort of one-percenter fantasy. It’s not just that on the margins and in national governments you have to keep fighting with all your money and lobbying to try and get what you want; this would lock it in for the future, indefinitely.

AMY GOODMAN: Lori Wallach, we want to thank you very much for being with us, director of Public Citizen’s Global Trade Watch. And we will continue to watch this.

This is Democracy Now! When we come back, whistleblower Jesselyn Radack on what a number in Congress are calling national security leaks. Stay with us.

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breakingtheset

Published on Feb 26, 2013

Abby Martin speaks to the legislative representative for the International Brotherhood of Teamsters, Mike Dolan, about the Trans-pacific Partnership (TPP), the Obama administration’s efforts for a new trade agreement with the EU, and the negative implications of said agreements.

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EFForg EFForg

Published on May 22, 2013

The Trans-Pacific Partnership Agreement is being negotiated in secret between more than 12 countries around the Pacific region. Find out why it’s the biggest threat to the Internet you’ve probably never heard of.

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Senators Near Plan to Abolish Fannie Mae, Shrink Government Role

Bloomberg
Senators Near Plan to Abolish Fannie Mae, Shrink Government Role

According to the draft, Washington-based Fannie Mae and McLean, Virginia-based Freddie Mac would be liquidated within five years and the U.S. Treasury would assume responsibility for their existing mortgage guarantees. Photographer: Andrew Harrer/Bloomberg

A bipartisan group of U.S. senators are putting the final touches on a plan to liquidate Fannie Mae (FNMA) and Freddie Mac (FMCC) and replace them with a government reinsurer of mortgage securities behind private capital.

The proposed legislation, which could be introduced this month, would require private financiers to take a first-loss position adequate to cover price declines as steep as those seen during recessions over the past century, according to a draft obtained by Bloomberg News.

According to the draft, Washington-based Fannie Mae and McLean, Virginia-based Freddie Mac would be liquidated within five years and the U.S. Treasury would assume responsibility for their existing mortgage guarantees. Photographer: Andrew Harrer/Bloomberg

The bill, which is being written by Tennessee Republican Bob Corker and Virginia Democrat Mark Warner with input from other senators, is still being drafted. As the first serious bipartisan effort to shape a new housing finance system, it could frame a discussion that is heating up as the housing market rebounds.

“A bipartisan bill that’s thorough becomes, at a minimum, a good baseline to begin the process of the full debate that could go through Congress,” David Stevens, president of the Mortgage Bankers Association, said in an interview.

According to the draft, Washington-based Fannie Mae and McLean, Virginia-based Freddie Mac would be liquidated within five years and the U.S. Treasury would assume responsibility for their existing mortgage guarantees. The two companies, which have been under U.S. conservatorship since 2008, package mortgages into securities on which they guarantee payment of principal and interest.

18 Signs That Massive Economic Problems Are Erupting All Over The Planet

Volcano Eruption - Mount Redoubt

In fact, a whole bunch of recent polls and surveys show that the American people are starting to feel much better about how the U.S. economy is performing.  Unfortunately, the false prosperity that we are currently enjoying is not going to last much longer.  Just look at what is happening in Europe.  The eurozone is now in the midst of the longest recession that it has ever experienced.  Just look at what is happening over in Asia.  Economic growth in India is the lowest that it has been in a decade and the Japanese financial system is beginning to spin wildly out of control.  One of the only places on the entire planet where serious economic problems have not already erupted is in the United States, and that is only because we have “kicked the can down the road” by recklessly printing money and by borrowing money at an unprecedented rate.  Unfortunately, the “sugar high” produced by those foolish measures is starting to wear off.  We are going to experience a massive amount of economic pain along with the rest of the world – it is just a matter of time.

But for the moment, there are a lot of skeptics out there.

For the moment, there are a lot of people that are declaring that the problems of the past have been fixed and that we are heading for incredibly bright economic times ahead.

Unfortunately, those people appear to be purposely ignoring the economic horror that is breaking out all over the globe.

The following are 18 signs that massive economic problems are erupting all over the planet…

#1 The eurozone is now in the midst of its longest recession ever.  Economic activity in the eurozone has declined for six quarters in a row.

#2 Italy’s economy has now been contracting for seven quarters in a row.

#3 Industrial production in Italy has fallen for 15 months in a row.  It has now fallen to its lowest level in about 25 years.

#4 The number of people that are considered to be “seriously deprived” in Italy has doubled over the past two years.

#5 Consumer confidence in France has just hit a new all-time low.

#6 The number of unemployed workers seeking a job in France has hit a brand new all-time record high.  Many unemployed workers in France are utterly frustrated at this point…

“I’ve sent CVs everywhere, I come to the unemployment agency every day, for 3 or 4 hours to look for work as a truck driver and there’s never anything,” said 42-year old Djamel Sami, who has been unemployed for a year, leaving a job agency in Paris.

#7 Unemployment in the eurozone as a whole has just hit a brand new all-time record high of 12.2 percent.

#8 Youth unemployment continues to soar to unprecedented heights in Europe.  The following is from an article that was recently posted on the website of the Guardian that detailed how bad things are getting in some of the worst countries…

In Greece, 62.5% of young people are out of work, in Spain it’s 56.4%, then Portugal with 42.5%, and then Italy with 40.5%.

#9 Youth unemployment is being partially blamed for the worst rioting that Sweden has seen in many years.  The following is how the Daily Mail described the riots…

Sweden is reeling after a third night of rioting in largely run-down immigrant areas of the capital Stockholm.

In the last 48 hours violence has spread to at least ten suburbs with mobs of youths torching hundreds of cars and clashing with police.

It is Sweden’s worst disorder in years and has shocked the country and provoked a debate on how Sweden is coping with youth unemployment and an influx of immigrants.

#10 An astounding 10 percent of all banking deposits were pulled out of banks in Cyprus during the month of April alone.

#11 Economic growth in India is the slowest that it has been in an entire decade.

#12 Suddenly Australia is experiencing some tremendous economic challenges.  The following quotes are from a recent Zero Hedge article

Read Full Article Here

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Eurozone unemployment reaches new record high in April

The BBC’s Jamie Robertson says the employment figures show “disparity across Europe”

Unemployment in the eurozone has reached another record high, according to official figures.

The seasonally-adjusted rate for April was 12.2%, up from 12.1% the month before.

An extra 95,000 people were out of work in the 17 countries that use the euro, taking the total to 19.38 million.

Both Greece and Spain have jobless rates above 25%. The lowest unemployment rate is in Austria at 4.9%.

The European Commission’s statistics office, Eurostat, said Germany had an unemployment rate of 5.4% while Luxembourg’s was 5.6%.

The highest jobless rates are in Greece (27.0% in February 2013), Spain (26.8%) and Portugal (17.8%).

In France, Europe’s second largest economy, the number of jobless people rose to a new record high in April.

“We do not see a stabilisation in unemployment before the middle of next year,” said Frederik Ducrozet, an economist at Credit Agricole in Paris. “The picture in France is still deteriorating.”

‘Social crisis’

Youth unemployment remains a particular concern. In April, 3.6 million people under the age of 25 were out of work in the eurozone, which translated to an unemployment rate of 24.4%.

Figures from the Italian government showed 40.5% of young people in Italy are unemployed.

Europe’s already dismal jobs situation has deteriorated further. If we needed a reminder of the lingering effects of the eurozone financial crisis, it is to be seen in the jobs data.

The general pattern is that the largest increases in unemployment over the last year were in countries at the centre of the crisis – Greece, Cyprus, Spain and Portugal. There was also a sharp increase in Slovenia, a country seen as a possible future candidate for a financial rescue.

The main exception to the pattern was Ireland, another country receiving a bailout, where unemployment nonetheless fell by almost one and half percentage points in twelve months.

The figures also highlight the “lost generation” concern that is, or should be, causing some lost sleep for political leaders. Unemployment among young people is approaching one in four across the eurozone and it is 40% or higher in a few countries – Greece, Spain, Portugal and Italy.

“We have to deal with the social crisis, which is expressed particularly in spreading youth unemployment, and place it at the centre of political action,” said Italy’s President Giorgio Napolitano.

In the 12 months to April, 1.6 million people lost their jobs in the eurozone.

While the jobless figure in the eurozone climbed for the 24th consecutive month, the unemployment rate for the full 27-member European Union remained at 11%.

The eurozone is in its longest recession since it was created in 1999. At 1.4%, inflation is far below the 2% target set by the European Central Bank (ECB).

Consumer spending remains subdued. Figures released on Friday showed that retail sales in Germany fell 0.4% in April compared with the previous month.

Read Full Article Here

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Greece’s young: Dreams on hold as fight for jobs looms

Mark Lowen looks at the toughest equation Greece has to solve

Greece’s school exam season has arrived. But for many now facing the final-year tests known as the Panhellenics, the stress is twofold: last-minute cramming and the knowledge that they’ll soon enter the worst jobs climate in Europe.

At 64.2%, youth unemployment in Greece is the highest in the continent. Those between the ages of 16 and 25 are now the crisis generation.

At the Spoudi school in Athens, dreams have been put on hold. The school leavers longed for a stable job, for a future full of opportunity. But instead, unemployment and uncertainty beckon.

 

The economy won’t recover because the educated ones will go abroad and only the older people will stay here”

Christina Zahagou Law graduate, 23

In a final maths class, students pore over complex algebra problems. But how to stay positive in today’s Greece might just be the most difficult equation to solve.

“I’m not sure about my future,” says Nathalie Scholden, an 18-year-old who hopes to study economics. “I think I won’t stay in Greece because there’s high unemployment and bad salaries. A lot of kids my age feel the same. If we’re here and nobody gets the life they want, why should we stay?”

Among the other students, few are optimistic. One thinks of leaving Athens for the countryside, another of going into farming because of a lack of opportunities.

“In Greece today you can’t do what you want,” says Alexandros Delakouras, 17. “It will be very difficult to get a job in my country but I will try hard.” He adds with a smile: “Maybe, with God’s help, I’ll succeed.”

Before Greece’s first bailout three years ago – and the spending cuts that ensued – unemployment in the country was under 12%. Now it’s at 27%.

And among the youth, it’s more than doubled from around 31% in May 2010. Recession has hit hard but it’s the austerity demanded by the country’s international lenders that has had such a devastating impact.

Brain drain

Doing the sums

Student studies maths

In Greece, 64.2% of 16 to 25-year olds are out of work

This has risen from 31.2% three years ago when Greece received its first international bailout

The economy is expected to stay in recession for the sixth consecutive year in 2013

Unemployment continues to rise and is not expected to start falling until 2015, the Greek central bank says

And so the brightest, like 23-year-old law graduate Christina Zahagou, are leaving. Greek emigration to Germany jumped by more than 40% last year. She is now following suit after failing to find work.

Read Full Article Here

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Sweden Riots Put Faces to Statistics as Stockholm Burns

A week of riots in Stockholm has torn a hole in Sweden’s image as a beacon of social harmony.

In Husby, a suburb north of the capital where 60 percent of residents were born outside Sweden and unemployment is twice the national average, youths torched cars, schools and other buildings in a show of anger that has unsettled one of Europe’s richest nations. The riots spread to more than 10 other suburbs in Stockholm.

A burning car set on fire in the Stockholm suburb of Kista after youths rioted in several different suburbs around Stockholm for a third executive night, late May 21, 2013. Photograph: Fredrik Sandberg via AP Photo/Scanipx Sweden

People exit Husby subway station to attend a demonstration against police violence and vandalism in the Stockholm suburb of Husby on May 22, 2013. Sweden’s youth unemployment rate was 23.6 percent last year– about three times the national average — according to the statistics office. Photographer: Jonathan Nackstrand/AFP/Getty Images

“Exclusion, poverty and unemployment” are the main causes of the riots, Yves Zenou, a professor at Stockholm University who has done research on urban economics and migration issues, said in a May 24 interview. “They feel excluded from Swedish society. Many are not in employment, many because of discrimination, and many have low education levels.”

The unrest has shocked Sweden, where the economic policies of Prime Minister Fredrik Reinfeldt helped the AAA rated nation emerge as a haven from the debt crisis raging across southern Europe. Yet Sweden’s aggregate wealth has hidden rifts in the economy as polices have failed to catch a demographic now taking to the streets to show its desperation.

Young people need “jobs as well as something to do in their spare time,” Iqra Siddiqui, a 16-year-old living in Hallunda, a suburb in south Stockholm, said yesterday in an interview outside the Skaerholmen subway station. “Another problem is that parents don’t know what their kids are up to.”

Police Detentions

Sweden’s youth unemployment rate was 23.6 percent last year — about three times the national average — according to the statistics office. A report this month by the Public Employment Services showed that about 77,000 people between 16 and 29 years haven’t studied or worked over the past three years, suggesting even larger hidden unemployment. By comparison, youth unemployment was about 153,000 last year, according to the agency.

Police, who as of May 24 had detained 29 people since the riots started on May 19, say most of those involved are about 20 years old. Their plight underscores how Europe’s economic pain is hitting young people hardest. According to Luxembourg-based Eurostat, youth unemployment in the 27-nation European Union reached 23.5 percent in March, versus 16.2 percent in the U.S.

Scenes outside Stockholm this week replayed images of youth unrest across Europe since the global economic crisis started. In 2011, riots that started in north London also spread to Manchester and the Midlands, in the worst youth unrest in the U.K. since the 1980s. Paris has seen similar violence.

‘Ordinary Night’

While unrest also spread to other towns over the weekend, including Oerebro and Linkoeping, violence in the Swedish capital have started to subside.

Last night was like “an ordinary night,” according to police spokesman Kjell Lindgren. Fewer than 10 cars were set on fire and there were no reports of stones being thrown at emergency services and no major vandalism. Between Saturday and Sunday, about 20 cars were set on fire and a school in a southern suburb was vandalized. Rocks were also thrown at police in the Vaarberg neighbourhood.

Reinfeldt, who gained power in 2006 on promises of bringing more people into the labor market, has struggled to carry that pledge over to immigrants and young adults. In Husby, an area dotted by concrete high rises, the number of people relying on state assistance is more than triple the average for Stockholm.

Sweden has suffered similar episodes of violence before, including in the southern city of Malmoe in 2008 as well as Gothenburg.

The Cause

Megafonen, a Husby advocacy group, traces the outbreak of Stockholm’s riots to the police shooting of a local 69-year-old man originally from Portugal. Police brutality and racist slurs have exacerbated tensions, the group says.

Dagens Nyheter, Sweden’s largest daily newspaper, has questioned those claims, as a columnist asked for specific examples of brutality and proof of racial insensitivity. The newspaper reported on May 24 that about half the people arrested on suspicion of rioting in Husby came from outside the neighborhood, and half of them had criminal records.

In response, the advocacy group posted witness accounts of police brutality and racism on its website.

“Megafonen doesn’t start fires, we don’t believe this is the right method for long-term change,” said the group. “But we know that it’s a reaction to deficiencies in society. Unemployment, inadequate schools and structural racism are reasons behind what we are seeing today.”

Small Group

The largest immigrant group in Sweden is from Finland, followed by Iraq and Poland. In Husby, of residents with a foreign background, those who were born abroad or have two non-Swedish parents, 80 percent have heritage from either Asia or Africa, according to city statistics.

Residents are quick to point out that the violence is being carried out by a small group that doesn’t speak for most people living there. Community groups have taken to the streets to help ease tensions and restore calm, which was successful over the weekend.

Read Full Article Here

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TOMA’dan Göstericiye Sert Müdahale İstanbul, Taksim Gezi Parkı Eylemi | #direngeziparki

Claudia HD

Published on May 31, 2013

Turkish police break up ‘Occupy Taksim Park’ protest in Istanbul
Police descended on an Istanbul’s Taksim Gezi park in the early hours to clear out protesters occupying it. The demonstrators, who had been camping out in the park for three days, say it is the last green space in Istanbul, one of the largest cities in the world.

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Istanbul protesters fight for their park

31/05 13:07 CET

Police in Istanbul have clashed with protesters occupying the city’s Taksim Gezi park. The activists have been camping there for three days in an attempt to stop it being demolished.

Local media said that authorities used tear gas and pepper spray to disperse the crowd. At least one person was reportedly hospitalised.

The determined environmentalists are continuing to occupy the park, even after being chased out early on May 30 by police.

Read Full Article Here

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Turkish Spring? Violent clashes rumble through the night in Istanbul

RussiaToday RussiaToday

Thousands of protesters in Istanbul clashed with police in the most violent rally Turkey has seen in years. Hundreds have been injured and dozens arrested in fierce rioting which the media has dubbed the Turkish Spring as it spreads across the country. FOLLOW LIVE UPDATES: http://on.rt.com/2dow77 PHOTO GALLERY: http://on.rt.com/3fto6s

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democracynow democracynow·

Published on May 30, 2013

http://www.democracynow.org – As Republicans move to cut billions of dollars in funding for food stamps, a new report finds one in six Americans live in a household that cannot afford adequate food. In “Nourishing Change: Fulfilling the Right to Food in the United States,” the International Human Rights Clinic at New York University’s School of Law reports that of these 50 million people going hungry, nearly 17 million are children. Food insecurity has skyrocketed since the economic downturn, with an additional 14 million people classified as food insecure in 2011 than in 2007. The report comes as Congress is renegotiating the Farm Bill and proposing serious cuts to the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program. Millions of Americans currently rely on the program to feed themselves and their families. The report’s co-author, Smita Narula of the International Human Rights Clinic at NYU’s School of Law, joins us to discuss her findings and why she is calling on the U.S. government to ensure that all Americans have access to sufficient, nutritious food.

http://www.democracynow.org/2013/5/30/as_lawmakers_target_food_stamp_funding

 

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Food stamp cuts hurt the economy and taxpayers along with the poor

Posted Tuesday, May. 28, 2013

Read more here: http://www.star-telegram.com/2013/05/28/4889196/food-stamp-cuts-hurt-the-economy.html#storylink=cpy

To hear Republicans — and some Democrats — in Congress talk, you’d think food-stamp dollars just disappear into a black hole. The prevailing debate in the Senate and House versions of the farm bill, which contains funding for food stamps (the Supplemental Nutrition Assistance Program, or SNAP), is over how much to cut.

But when more than 15 percent of Americans remain impoverished, slashing food assistance for the poor makes no sense in humanitarian, economic or public-health terms.

The House bill which is gaining steam after passage by the Agriculture Committee last week, is the more draconian of the two. It would chop $20 billion over 10 years from SNAP, and its changes to food-stamp eligibility rules would cut off vital sustenance for about 2 million low-income people, including seniors and families with children.

According to the Congressional Budget Office, 210,000 children in low-income families would lose their free school meals under the House plan.

The Senate version would cut far less, though a final figure will be hashed out by a conference committee in June. But the attacks on food assistance for the poor are deeply misguided and are only going to get worse.

The proposed House budget from Rep. Paul D. Ryan, R-Wis., seeks to gut food stamps by an additional $135 billion through block grants to states.

Yet government and other studies clearly show that food stamps are among the most wisely spent public dollars, providing essential nourishment and public health benefits to low-income people as well as economic stimulus to rural and urban communities.

These are returns on spending that you won’t find in the corporate tax giveaways and military spending boondoggles routinely supported by both political parties. even as they scream for austerity when it comes to slashing “entitlements” and food assistance for the poor.

The Trust for America’s Health, a health advocacy organization that focuses on disease prevention, warned recently of the consequences of cutting food stamps: “If the nation continues to underfund vital public health programs, we will never achieve long-term fiscal stability, as it will be impossible to help people get/stay healthy, happy and productive.”

Indeed, According to a 2011 study by the U.S. Department of Agriculture, “research shows that low-income households participating in SNAP have access to more food energy, protein and a broad array of essential vitamins and minerals in their home food supply compared to eligible nonparticipants.”

 

Read Full Article Here

 

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Published on May 30, 2013

http://www.democracynow.org – Filmmakers Tia Lessin and Carl Deal say plans for their new documentary to air on public television have been quashed after billionaire Republican David Koch complained about the PBS broadcast of another film critical of him, “Park Avenue: Money, Power and the American Dream,” by acclaimed filmmaker Alex Gibney. Lessin and Deal were in talks to broadcast their film, “Citizen Koch,” on PBS until their agreement with the Independent Television Service fell through. The New Yorker reports the dropping of “Citizen Koch” may have been influenced by Koch’s response to Gibney’s film, which aired on PBS stations, including WNET in New York late last year.

Watch Part 2 of this interview: http://youtu.be/8UPT_yj9S-U

“Citizen Koch” tells the story of the landmark Citizens United ruling by the Supreme Court that opened the door to unlimited campaign contributions from corporations. It focuses on the role of the Koch-funded Americans for Prosperity in backing Wisconsin Gov. Scott Walker, who has pushed to slash union rights while at the same time supporting tax breaks for large corporations. The controversy over Koch’s influence on PBS comes as rallies were held in 12 cities Wednesday to protest the possible sale of The Tribune newspaper chain, including the Los Angeles Times and Chicago Tribune, to Koch Industries, run by David Koch and his brother Charles.

….

Did Public Television Commit Self-Censorship to Appease Billionaire Funder David Koch? (2 of 2)

democracynow democracynow


….

Published on May 30, 2013

http://www.democracynow.org – Filmmakers Tia Lessin and Carl Deal say plans for their new documentary to air on public television have been quashed after billionaire Republican David Koch complained about the PBS broadcast of another film critical of him, “Park Avenue: Money, Power and the American Dream,” by acclaimed filmmaker Alex Gibney. Lessin and Deal were in talks to broadcast their film, “Citizen Koch,” on PBS until their agreement with the Independent Television Service fell through. The New Yorker reports the dropping of “Citizen Koch” may have been influenced by Koch’s response to Gibney’s film, which aired on PBS stations, including WNET in New York late last year.

Watch Part 1 of this interview: http://youtu.be/6ljSr7cqNKg

“Citizen Koch” tells the story of the landmark Citizens United ruling by the Supreme Court that opened the door to unlimited campaign contributions from corporations. It focuses on the role of the Koch-funded Americans for Prosperity in backing Wisconsin Gov. Scott Walker, who has pushed to slash union rights while at the same time supporting tax breaks for large corporations. The controversy over Koch’s influence on PBS comes as rallies were held in 12 cities Wednesday to protest the possible sale of The Tribune newspaper chain, including the Los Angeles Times and Chicago Tribune, to Koch Industries, run by David Koch and his brother Charles.

America’s Bubble Economy Is Going To Become An Economic Black Hole

The Economic CollapseThe Economic Collapse

Black Hole The mainstream media never talks about that.  They are much too busy covering the latest dogfights in Washington and what Justin Bieber has been up to.  And most Americans seem to think that if the Dow keeps setting new all-time highs that everything must be okay.  Sadly, that is not the case at all.  Right now, the U.S. economy is exhibiting all of the classic symptoms of a bubble economy.  You can see this when you step back and take a longer-term view of things.  Over the past decade, we have added more than 10 trillion dollars to the national debt.  But most Americans have shown very little concern as the balance on our national credit card has soared from 6 trillion dollars to nearly 17 trillion dollars.  Meanwhile, Wall Street has been transformed into the biggest casino on the planet, and much of the new money that the Federal Reserve has been recklessly printing up has gone into stocks.  But the Dow does not keep setting new records because the underlying economic fundamentals are good.  Rather, the reckless euphoria that we are seeing in the financial markets right now reminds me very much of 1929.  Margin debt is absolutely soaring, and every time that happens a crash rapidly follows.  But this time when a crash happens it could very well be unlike anything that we have ever seen before.  The top 25 U.S. banks have more than 212 trillion dollars of exposure to derivatives combined, and when that house of cards comes crashing down there is no way that anyone will be able to prop it back up.  After all, U.S. GDP for an entire year is only a bit more than 15 trillion dollars.

But most Americans are only focused on the short-term because the mainstream media is only focused on the short-term.  Things are good this week and things were good last week, so there is nothing to worry about, right?

Unfortunately, economic reality is not going to change even if all of us try to ignore it.  Those that are willing to take an honest look at what is coming down the road are very troubled.  For example, Bill Gross of PIMCO says that his firm sees “bubbles everywhere”…

We see bubbles everywhere, and that is not to be dramatic and not to suggest they will pop immediately. I just suggested in the bond market with a bubble in treasuries and bubble in narrow credit spreads and high-yield prices, that perhaps there is a significant distortion there. Having said that, it suggests that as long as the FED and Bank of Japan and other Central Banks keep writing checks and do not withdraw, then the bubble can be supported as in blowing bubbles. They are blowing bubbles. When that stops there will be repercussions.

And unfortunately, it is not just the United States that has a bubble economy.  In fact, the gigantic financial bubble over in Japan may burst before our own financial bubble does.  The following is from a recent article by Graham Summers

First and foremost, Japan is the second largest bond market in the world. If Japan’s sovereign bonds continue to fall, pushing rates higher, then there has been a tectonic shift in the global financial system. Remember the impact that Greece had on asset prices? Greece’s bond market is less than 3% of Japan’s in size.

For multiple decades, Japanese bonds have been considered “risk free.” As a result of this, investors have been willing to lend money to Japan at extremely low rates. This has allowed Japan’s economy, the second largest in the world, to putter along marginally.

So if Japanese bonds begin to implode, this means that:

1)   The second largest bond market in the world is entering a bear market (along with commensurate liquidations and redemptions by institutional investors around the globe).

2)   The second largest economy in the world will collapse (along with the impact on global exports).

Both of these are truly epic problems for the financial system.

 

Read Full Article Here

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40 Statistics About The Fall Of The U.S. Economy That Are Almost Too Crazy To Believe

The Economic CollapseThe Economic Collapse

40 Statistics About The Fall Of The U.S. Economy That Are Almost Too Crazy To BelieveIf you know someone that actually believes that the U.S. economy is in good shape, just show them the statistics in this article.  When you step back and look at the long-term trends, it is undeniable what is happening to us.  We are in the midst of a horrifying economic decline that is the result of decades of very bad decisions.  30 years ago, the U.S. national debt was about one trillion dollars.  Today, it is almost 17 trillion dollars.  40 years ago, the total amount of debt in the United States was about 2 trillion dollars.  Today, it is more than 56 trillion dollars.  At the same time that we have been running up all of this debt, our economic infrastructure and our ability to produce wealth has been absolutely gutted.  Since 2001, the United States has lost more than 56,000 manufacturing facilities and millions of good jobs have been shipped overseas.  Our share of global GDP declined from 31.8 percent in 2001 to 21.6 percent in 2011.  The percentage of Americans that are self-employed is at a record low, and the percentage of Americans that are dependent on the government is at a record high.  The U.S. economy is a complete and total mess, and it is time that we faced the truth.

The following are 40 statistics about the fall of the U.S. economy that are almost too crazy to believe…

#1 Back in 1980, the U.S. national debt was less than one trillion dollars.  Today, it is rapidly approaching 17 trillion dollars…

National Debt

#2 During Obama’s first term, the federal government accumulated more debt than it did under the first 42 U.S presidents combined.

#3 The U.S. national debt is now more than 23 times larger than it was when Jimmy Carter became president.

#4 If you started paying off just the new debt that the U.S. has accumulated during the Obama administration at the rate of one dollar per second, it would take more than 184,000 years to pay it off.

#5 The federal government is stealing more than 100 million dollars from our children and our grandchildren every single hour of every single day.

#6 Back in 1970, the total amount of debt in the United States (government debt + business debt + consumer debt, etc.) was less than 2 trillion dollars.  Today it is over 56 trillion dollars…

Total Debt

#7 According to the World Bank, U.S. GDP accounted for 31.8 percent of all global economic activity in 2001.  That number dropped to 21.6 percent in 2011.

#8 The United States has fallen in the global economic competitiveness rankings compiled by the World Economic Forum for four years in a row.

#9 According to The Economist, the United States was the best place in the world to be born into back in 1988.  Today, the United States is only tied for 16th place.

#10 Incredibly, more than 56,000 manufacturing facilities in the United States have been permanently shut down since 2001.

#11 There are less Americans working in manufacturing today than there was in 1950 even though the population of the country has more than doubled since then.

#12 According to the New York Times, there are now approximately 70,000 abandoned buildings in Detroit.

#13 When NAFTA was pushed through Congress in 1993, the United States had a trade surplus with Mexico of 1.6 billion dollars.  By 2010, we had a trade deficit with Mexico of 61.6 billion dollars.

#14 Back in 1985, our trade deficit with China was approximately 6 million dollars (million with a little “m”) for the entire year.  In 2012, our trade deficit with China was 315 billion dollars.  That was the largest trade deficit that one nation has had with another nation in the history of the world.

#15 Overall, the United States has run a trade deficit of more than 8 trillion dollars with the rest of the world since 1975.

#16 According to the Economic Policy Institute, the United States is losing half a million jobs to China every single year.

#17 Back in 1950, more than 80 percent of all men in the United States had jobs.  Today, less than 65 percent of all men in the United States have jobs.

#18 At this point, an astounding 53 percent of all American workers make less than $30,000 a year.

 

Read Full Article  Here

TheRealNews TheRealNews

Published on May 22, 2013

Gregory Wilpert: In spite of a new audit of election results that shows a win by Maduro that is recognized by all countries of Latin America, the US supports opposition

 

RepMikeKelly

Published on May 17, 2013

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House hearing on IRS scandal

WashingtonPost WashingtonPost

Published on May 17, 2013

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Hmmmm,  it  is strangely  reminiscent  of  the Hilary testimony ranting ….”What Difference Does  It Make ?”

It  seems  it  makes  quite a bit  of  difference  to the  “American  People”!!!

Legality is not  “Irrelevant”  by  any   stretch  of the  imagination!!!

How  many  citizens  have  been  able  to  claim  and successfully  use  the  standard  that   legality is  irrelevant and  have it  accepted  in a  court  of law ???

Exactly !!

I  believe  it  is  time  the   government  and it’s  entities  are  held  accountable  to   the  law  just as  the  Citizens  are.  Don’t   you  ???

~Desert Rose~

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Republicans Are Ripping The White House’s Dan Pfeiffer For Saying The Legality Of IRS Targeting Is ‘Irrelevant’

Brett LoGiurato | May 19, 2013, 11:58 AM

Dan Pfeiffer IRS scandal

Republicans are ripping White House senior adviser Dan Pfeiffer this morning for referring to the legality of the IRS’ inappropriate targeting of conservative groups as “irrelevant.”

But Pfeiffer said that to reinforce the White House’s assertion that the IRS’ behavior is inexcusable.

“I can’t speak to the law here. The law is irrelevant,” Pfeiffer said on ABC‘s “This Week,” in a comment that drew ire from Republicans. “The activity was outrageous and inexcusable, and it was stopped and it needs to be fixed so we ensure it never happens again.”

“This Week” host George Stephanopoulos was struck by the “irrelevant” statement, and asked Pfeiffer if he “really believed” that was the case. Pfeiffer attempted to clarify.

File:Bitcoin-coin2.jpg            File:2002 currency exchange AIGA euro money.pngCurrency Exchange
Bitcoin

http://upload.wikimedia.org/wikipedia/commons/c/c6/Bitcoin_exchange.png

Bitcoin exchange

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By Paul Rosenberg, FreemansPerspective.com

An increasing number of people have complained about governments and central banks in recent years, even using the word “tyranny” to describe them. They are, of course, called names in the establishment press: conspiracy theorists, mainly.

Calling someone a name, however, does not erase their argument (at least not among rational people) and both the governments and the big banks stand accused.

Up till now, however, these accusations were never accepted by the general public. The average guy really didn’t want to hear about the evils of government money. After all, that was the only thing he had ever used to buy food, clothes, gasoline, cars, and so on. He didn’t want to acknowledge the accusations because he feared what might happen to him without his usual money.

Now, however, we have a brand new currency (called Bitcoin) available to us: something radically different. This gives us a new way to directly address the subject of monetary tyranny, providing a clear test for the governments and money masters of the world:

If they are truly NOT tyrannical, they will leave this new currency alone.

If they ARE tyrannical, they will attack the new currency because it eats into their scam.

In other words, Bitcoin is a test for “the powers that be.” The way they deal with this new method of exchange will reveal their true nature.

If they ignore Bitcoin, they refute the charges of tyranny. If they attack it, they verify those charges.

After all, what honest reason could there be to attack an inherently peaceful tool for transferring value?

Prospective Reasons

Reasons to attack Bitcoin have recently appeared in the “public square.” Here are the three most popular ones, each followed with some analysis:

1. It can be used for money laundering.

Of course it can be used for money laundering — ANY currency can be used for money laundering. Currencies are neutral — that is their purpose! Currencies are valuable precisely because they can be exchanged for anything else — that’s why we use them!

Moreover, dollars and Euros and Pounds are used for money laundering every day. Consider the recent money laundering crimes of HSBC and Wachovia/Wells Fargo. These banks laundered hundreds of billions of dollars for violent drug cartels. And consider that this amount of laundered money is several hundred times the value of every Bitcoin in existence.

No one from either bank went to jail. Neither bank was shut down. Neither bank suffered more than a minor fine. So, how much of a concern can money laundering really be to governments and banks? Clearly not much.

But, since they accuse Bitcoin of being used for bad things, let’s be clear about the situation:

– Every mafioso uses government money.

– Every drug smuggler uses government money.

– Every terrorist uses government money.

– Every pornographer uses government money.

– Every criminal of every type uses government money.

They also use the telephone system and the mail and banks and a wide variety of government services. But government money is good and Bitcoin is bad?

The argument fails.

2. It could destabilize the current system.

A tiny, new currency is a threat to the long-established king of the hill? Comparing Bitcoin to dollars, Euros and Yen is like comparing an ant to a dinosaur. This is a threat?

Please understand also that no one is forcing anyone to use Bitcoin. If you don’t think it’s a great idea, you don’t have to use it. If its price movements (relative to dollars) bother you, you don’t have to use it. How is that destabilizing to the current system? It is entirely separate.

And what of the current system? It was falling apart on its own before the Bitcoin program was ever written. And I could go on at length on the insane levels of government debt, hundreds of trillions in derivatives, rehypothecation, and innocent people being forced to bail-out failed banks.

The current system has massive problems, but none of them can be blamed on Bitcoin.

This argument fails also.

3. Bitcoin provides no customer protection.

Well, no, it doesn’t. Bitcoin is a currency, not a legal system.

What is implied by this argument is that the government banking system does protect customers. That is an outright lie. People are ripped-off via the banking system every day. And more than that, consider what happened just a month ago in Cyprus: Thousands of innocent people were ripped-off BY the banking system — purposely — all at once and without recourse. This argument is, really, an insult to one’s intelligence.

And I should add something else: If Bitcoin is used properly, the crime of identity theft (a big problem with government money) vanishes — there is no identity available to be stolen.

So, again, the argument fails. Only those people who believe anything a government says will buy it.

In the End

In the end, it is said, we judge ourselves. Bitcoin has now put governments and banks in the position of judging themselves. They will write their own verdicts.

It should be interesting to watch.

[Editor's Note: Paul Rosenberg is the "outside the Matrix" author of FreemansPerspective.com, a collection of insights on topics ranging from Internet privacy and economic freedom, to alternative currencies. Join our free e-letter list to receive other articles like this one... and immediately get a report that explains in a unique way how the US Government got into the mess it's in, the dangers that creates for us, and how to protect ourselves from it.]

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