{"id":84,"date":"2011-07-10T16:01:02","date_gmt":"2011-07-10T23:01:02","guid":{"rendered":"http:\/\/thebigweasel.wordpress.com\/?p=84"},"modified":"2011-07-10T16:01:02","modified_gmt":"2011-07-10T23:01:02","slug":"us-murdoch-near-limits","status":"publish","type":"post","link":"https:\/\/zeppscommentaries.online\/?p=84","title":{"rendered":"US, Murdoch near limits"},"content":{"rendered":"

Tie me Kangarupe down, sport<\/strong><\/p>\n

July 10th 2011<\/p>\n

\u00a0 I can’t help but think that over the next month, things will be coming to a crux.\u00a0 It’s not a sentiment I express often, especially since a friend of mine, one given to apocalyptic conspiracy theories, used words such as \u201ccrux\u201d, \u201ccrisis\u201d and \u201ccrucial\u201d a lot, and I would tease him about the crucifixion imagery that suffused his writing.\u00a0 It didn’t alter his writing style, but it made me more conscious when I use it.
\nNevertheless, we seem to be heading for a convergence of paths that will prove to be a decisive time that will determine our lives for much of our future.\u00a0 Yes, this is a crucial moment.<\/p>\n


\nThe most obvious element is economic.\u00a0 This morning the media is reporting that Boehner has blinked on the credit limit negotiations and is no longer pressing for $4 trillion in spending cuts.\u00a0 Whether prompted by a sudden gust of sanity or just a sense of the political realities, Boehner has assured a revolt among the teabaggers in his ranks.\u00a0 It may be enough in the long term to topple him as Speaker of the House.\u00a0 In the meantime, Democrats, unnerved by a trial balloon sent up by the White House that Obama was considering massive cuts to Medicare and Social Security, wait to see what is put on the table.\u00a0 If those programs are messed with, a Democratic revolt is likely.\u00a0 And at that point, with the clock ticking out, the latest effort to raise the credit limit will fail.\u00a0\u00a0 (Have you ever noticed that the party out of power likes to refer to the credit limit as \u201cthe debt limit\u201d?)
\nHe is now willing to return to the proposal floated by Vice President Joe Biden, which prompted Eric Cantor, Speaker-to-Teabaggers-in-waiting, to bolt the talks last week.\u00a0 Two trillion in deficits reduction, including closing a bunch of tax loopholes.
\nTreasury Secretary Geithner said that failing to raise the credit limit by August 2nd would be \u201ccatastrophic\u201d and I’m guessing that he, or someone from Wall Street, sat Boehner down and told him what he could expect if the US began defaulting.
\nFor starters, the annual cost of servicing the national debt (the interest we shell out to the banks and bondholders) would take a big jump, perhaps as much as $300 billion a year.\u00a0 That by itself would be enough to wipe out the deficit reductions, most of which are described over a ten year period.
\nThe economy, hardly a picture of health, would go into a tailspin.\u00a0 We would probably end up in a plunge far steeper than the one in 2007, and that would put a big cut in revenues, since slower economies generate less taxable activity.
\nAt this point, it’s safe to say that by refusing to accept a compromise from four trillion in savings to just three trillion, the teabaggers will have pissed away another $5 trillion.\u00a0 They keep saving money like this, and we’ll all be starving by 2012.
\nBut there’s another shadow overlying all of this, one that has gotten very little attention in the media.\u00a0 When the world economy collapsed, it was mostly because derivatives, primarily in the form of credit default swaps (derivative notationals), according to the Bank for International Settlements, were US$684 trillion as of June 2008. That was the good old days.\u00a0 Nobody is quite certain, but they might total over one quadrillion ($1,000,000,000,000,000.00) dollars by now.\u00a0 In the event of a 2008-style meltdown, it represents a freeze on currency circulation more than powerful enough to utterly incinerate all of the world’s economies.
\nThe fear that an American default could trigger these swaps is one of the reasons why corporate debt has swelled to $15.7 trillion, nearly trebling since 2008.\u00a0 They are funding the CDS in hopes of being covered if the wheels come off.\u00a0 They obviously haven’t been using those trillions of dollars to create jobs or make stuff.
\nAnd if the US goes into default, the wheels will certainly come off.\u00a0 It nearly happened a couple of weeks ago, when Greece threatened to default, and the Greek economy is far smaller than is the American economy.
\nNot only would the meltdown be far worse than 2008, but the US is far worse equipped to deal with it.\u00a0 Back then, real unemployment ran about 11%, compared to at least 18.5% now (and in all likelihood about 25%).\u00a0 World economies hadn’t been badly weakened\u2014even in the US, 2007 was considered a quick-and-dirty recession, one that might have been gone by the end of 2008 had the world markets not melted down.
\nSo we stand at the edge of something that could be worse than the Great Depression, and all Congress can do is play chicken and cling to hideously stupid ideas like \u201clet’s stimulate the economy by reducing the people’s purchasing power\u201d.
\nA lot of people can’t understand why the lunatic notion that \u201can unregulated capitalist economy would make everyone rich and address society’s needs\u201d didn’t die in the wake of the 2008 meltdown, and at least some of the blame for that must be laid to the billions of dollars in propaganda and lobbying that Wall Street and major international financial groups engaged in after the fact, blaming the mortgage crisis on subprime loans made 20 years earlier, and claiming that the middle class, not the banks and corporations, racked up all the debts and must now pay for them.\u00a0 This is known as Austerity Programs, best described as \u201cMan the lifeboats!\u00a0 Bankers and investors first!\u201d.
\nMuch of the propaganda must be laid at the feet of one Rupert Murdoch, the Australian media magnate who has twisted and deformed societies worldwide by making neo-fascism fun and entertaining and a populist dream.\u00a0 Don’t forget the Teabaggers got started by some whiny day-trader who thought it was terrible that the undeserving poor blamed criminal traders in the financial sector for the 2008 collapse.\u00a0 People need to be responsible for their actions, and in this case, the pronoun \u201ctheir\u201d is deliberately ambivalent.
\nBut the Murdoch empire, the biggest driving force behind the neo-fascism that has enveloped America and much of the west, is sputtering badly.
\nIn the UK, phone tapping scandals involving Murdoch newspapers have been bubbling along for several years.\u00a0 When the scandal was just celebs, football players and royals, the public figured\u00a0 it was just the sort of sleazy crap you expect from Murdoch and his\u00a0 minions.
\nBut when it came to light that they had hacked the phone of then-missing\u00a0 Milly Dowler in 2002, and deleted her voice-mail in order to make room for\u00a0 more messages (in hopes that something juicy would roll in), public fury\u00a0 erupted.\u00a0 The fact the mails were being deleted remotely gave the parents\u00a0 false hope that she was alive, and of course eliminated an unknown number\u00a0 of possible leads.\u00a0 Public fury about that news in the UK is on the same level as\u00a0 the public’s reaction to the Casey Anthony trial here.\u00a0 This was followed by\u00a0 revelations that Murdoch employees hacked the phones of troops killed in Afghanistan\u00a0 and Iraq, and relatives of victims of the 7\/7 terror attacks.
\nThen there was the remark that nobody got to be PM without Murdoch’s\u00a0 approval since before Maggie Thatcher.
\nMurdoch is radioactive in the UK, and it’s spreading over here.\u00a0 After months of stonewalling the developing scandal, they finally admitted that staffers at the News of the World may have made some mistakes, and that’s why the noble Mister Murdoch stepped in and shut them down.\u00a0 Heaven forbid a News Corp outlet should ever make mistakes or be perceived as unfair.
\nIt’s safe to say that Murdoch has had undue influence on elections in the US for 30 years.\u00a0 Anyone taking a look at GOP policies realistically would wonder how they could survive as anything other than a splinter party.\u00a0 At best, 5% of the population would actually benefit from their platforms.\u00a0 But Faux is there to dress their class warfare up in populist terms, and paint the Democrats as Marxists, Communists, minions of evil, and so on.\u00a0 Fox News is one of the reasons why Americans don’t seem to do better than right of center moderates, and usually do far worse.
\nBut the British scandal is seeping into public consciousness here, and people are taking a sharper look at some of the practices of the myriad Murdoch outlets beyond the endless crawl gaffes and ambush interviews.
\nFaux is feeling the pressure, too.\u00a0 Two weeks ago they launched an unprecedented campaign against Jon Stewart, one of their main detractors, asking 15 or 20 times a day \u201cif Jon Stewart is a racist\u201d.\u00a0 They based this on a piece Stewart did mocking pizza magnate and day trader Herman Cain for saying he would not sign any bill more than three pages long.\u00a0 Stewart mimicked Cain’s speaking style to do so, which is what Faux used to label him racist.\u00a0 Stewart, of course, was delighted, and ran clips of him mimicking most other GOP candidates, or faking Italian accents.
\nThis week, Faux went after David Brock, head of Media Matters.\u00a0 In an unbelievable segment, they had a hack psychiatrist deconstruct Brock (who wasn’t there, of course) painting Brock as insecure and deprived, based on the fact that Brock, a former darling of the far right, had left the movement because it had become a body of ritualized lies.\u00a0 Oddly enough, this shrink didn’t have anything to say about other figures who had switched allegiances, such as Newt Gingrich or David Horowitz.
\nFaux is in full damage-control mode; aside from shutting down the 168-year-old News of the World, Murdoch traveled to England to confer with Rebekah Brooks, the Red Medusa, and presumably to give Prime Minister David Cameron some new marching orders.\u00a0 For one thing, the Liberal Democrats have split from the Conservatives on the issue of selling the satellite giant, B Sky B, to Murdoch, something that would have given Murdoch control of nearly half of all British media.
\nPeter Osbourne called the Murdoch empire \u201ca criminal enterprize\u201d on This Week with Christiane Amanpour today.
\nThe scandal and fallout are spreading to America.\u00a0 People are asking if Fox, the New York Post, or the Wall Street Journal have fallen to the level of Murdoch’s other outlets, and the answer, inevitably, is \u201cyes, they have.\u201d
\nThe corporatists can’t afford to lose their most effective propaganda voice right now, when they need to be able to convince Americans that deprivation in the name of tax cuts for billionaires is utterly necessary for getting to heaven.
\nBut thanks to his own viciousness and excess, Rupert Murdoch may have managed just that.<\/p>\n","protected":false},"excerpt":{"rendered":"

Tie me Kangarupe down, sport July 10th 2011 \u00a0 I can’t help but think that over the next month, things will be coming to a crux.\u00a0 It’s not a sentiment I express often, especially since a friend of mine, one given to apocalyptic conspiracy theories, used words such as \u201ccrux\u201d, \u201ccrisis\u201d and \u201ccrucial\u201d a lot, … <\/p>\n

Continue reading “US, Murdoch near 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