Showing posts with label bankers. Show all posts
Showing posts with label bankers. Show all posts

Wednesday, November 30, 2011




INTERNATIONAL POLITICS:


DEMOCRACY VERSUS THE BANKERS:




The following item on the international finamcial crisis is from the Anarkismo website.


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Europe & the Bankers
The limits of democracy in Project Europe

When the Arab peoples began to agitate at the start of the year, European countries quickly began to distance themselves from the dictators they had been nursing for some time, in order to seize the flags of change that the people were demanding in the streets. By doing theis, they sought to calm the clamour for social and economic demands and substitute them with cosmetic democratic reforms, as if the struggles of these peoples had not been about the right to bread but the right for access to the polls. There were some who accused the Europeans and their big brothers in Washington of hypocrisy: while the were "horrified" at the repression in Syria, they supported it openly in Bahrain and Yemen; while they waved the bugbear of radical Islamism in Yemen, they openly supported a regime of jihadists that was seeking to impose sharia law in Libya; while they were demanding the resignation of Assad, they closed one eye to the medieval monarchies of the Emirates, Jordan, Morocco and Saudi Arabia. It is absolutely no surprise, since the imperialists (and the USA and EU are imperialists in the classical sense of the term) never act unless it is for a goal that fits in with their own material and geopolitical interests. Hypocrites they may be, but their hypocrisy is fairly predictable.

Others also denounce hypocrisy on the part of the Europeans when they talk about "democracy", seizing this concept too and deforming it at will, when what they were doing was carefully channelling the process of change in the Arab countries in a typically Leopard-esque way ("change everything in order to change nothing"), so that there would be no more open dictatorships but monitored "democracies", with the army as the final custodian of the imperial interests. After all, the only freedom they know how to defend is the freedom of the market [1].

But there were also others again who corrected us saying that the European countries were not hypocrites, but merely contradictory: i.e., that it wasn't that they were not "democratic" in themselves, it was that they had one policy at home and another abroad. Foreign policy was naturally determined by their venal interests, whereas domestic policy was supposedly based on well-rooted democratic values.

It just needed the entrance onto the scene through the Puerta del Sol of the "indignados" in all their glory and majesty for this myth of a democratic Europe to explode. Western democracy, as some call it, works as long as no-one protests. As Chomsky has so dramatically demonstrated, in advanced capitalist societies the real mechanism of control is not so much the police baton as the creation of forced consensus by means of a stifling form of propaganda. Once the people decide to move outside the tight limits on democratic liberties by this small elite that governs, European democracy shows its teeth and imprisons, beats (no-one dares say torture, but it is also this) and even kills. It happened in Genoa ten years ago and it has happened several times in Greece, but the memories of European citizens are fragile things...
The Bankers Coup in Greece
Last week we witnessed a real coup d'état in Greece. When the "social democrat" George Papandreou took the crazy initiative of calling a referendum to decide whether Greece would continue to remain as part of the Euro zone, he was immediately pressurized into quitting. The pressure, naturally, did not come from the Greek people but from the mandarins of the European Union. Why is the EU against a referendum? What can be more democratic than a referendum, where the people get to have a direct say on policies that directly concern both them and the next three generations at least?

The EU's opinion on referendums is all too well known to anyone living in Ireland, where people twice voted against European Treaties (Nice in 2002 and Lisbon in 2008) and on each occasion were forced by Brussels to vote again after being threatened (and not in too roundabout terms) with all sorts of dire consequences ranging from expulsion from the EU to expulsion from the Eurovision Song Contest.

In Greece, they knew that they would have lost the referendum and so it was aborted in the most anti-democratic of ways, showing how they can force an entire people into remaining part of a commercial zone that is bleeding them to death with illegitimate, extortionate debt. They got rid of the social democratic Papandreou and substituted him, without any election, with a certain Lucas Papademos, ex-governor of the Bank of Greece until 2002, then vice-president of the European Central Bank and finally economic adviser to Papandreou. This is the man who was responsible for the transition from the drachma to the euro, who had a leading role in the irresponsible loans to Greek banks and, lastly, who personally promoted the failed economic policies of a government that brought an entire country to ruins. In other words, we are talking about the persons who alone is more responsible than any other for the mess that the Greeks find themselves in today. But the bankers have spoken: they will not accept any hint of "populism" (the word that is used when "democracy" gets results that Capital does not want) and the hard times that are in it demand a strong hand both to control finances and to control the streets, a stong hand for the poor, but a generous hand for the poor speculators... the bankers in power!
Technocrats and liars in power
In the meantime, the Italians have a good many reasons to celebrate the downfall of the pathetic, decadent Berlusconi, who transformed his premiership into nothing short of a reality show, with a little extra spice from sexy showgirls, sex with underage girls and "bunga bunga" parties, all serving to cloak his links with the mafia and the rampant corruption throughout the country. But they have less reason to celebrate their new premier, Mario Monti. His history is similar to Papademos': he was a European Commissioner, an adviser both to Goldman Sachs, speculators extraordinaire, and to the infamous multinational Coca Cola, and he is close to the current president of the ECB, Mario Draghi. We can only guess whose interests he will be serving, albeit perhaps more efficiently than the corrupt clown who has just left office.

In Ireland too the government fell at the end of last year, and in the improvised elections that were held in February, an apparently schizophrenic coalition was elected: Labour (who in Ireland are to the right of Tony Blair) and Fine Gael, a firmly right-wing nationalist party who once even flirted with Nazism, even to the extent of sending men to fight for Franco. They reached office by promising all the usual lovely things that are promised during election campaigns. They promised that they would review the outgoing government's accords with the ECB and renegotiate the rescue plan; they also swore they would not shift the load of the debt onto the shoulders of the poorer parts of society. And in fact, they also lied, as is usual during election campaigns. Not only have they worsened the terms of the rescue package agreed by the previous corrupt government, they have announced further cuts in the next Budget which will hit the poor, social spending and the workers, while the bankers who created the mess continue to receive their millionaire bonuses because - according to Labour - those bonuses were agreed before the crisis started!

These governments will guarantee that this illegitimate debt will continue to be paid, that they will get every last cent out of us before these countries declare themselves bankrupt. There is no other logic to these Structural Adjustment Programmes and cuts in social spending that are strangling internal markets and de-stimulating spending. It's a case of getting everything you can now before the house burns down.
Governments are falling... but where's the alternative?
The tragedy in Europe is that governments are falling but there is no way out of the crisis being indicated by the mobilized people, partly because the popular movement itself is in crisis after decades of social pacts, immobilism and pacification and due to a quite thorough ideological penetration of the bankers' fallacies in every layer of society. There are the struggles in Greece, but so far they haven't proved enough. There are the "indignados" in Spain, but the working class there has only just started to wake up. In Italy and Ireland, protests are practically nonexistent. In Ireland, any mass mobilization is limited to the weekends (so as not to "damage" the economy), and as far away as possible from government buildings, where bankers are reminded of their social responsibility. As soon as the mass mobilizations that challenge the regime begin, what will happen in this (social) democratic Europe, so proud of its civil liberties? We've already had some idea with the experience of the Basques and Northern Ireland, which demonstrate that when democracy doesn't work, they resort to a state of emergency, something which is as much a part of capitalist democracy as the illusion of elections. Don't forget that in March 2009, at the time of what proved to be a flop of a general strike in Ireland, Michael O'Leary, CEO of Ryanair, asked the government to militarize the country's airports in order to prevent any union action.

There has not been even the slightest hint of a revolution in Greece and already they've carried out a coup d'état - not a military one, true enough, but a coup nonetheless with a force that is greater than that of arms: the force of the euro. This should be proof enough for all those who still believe in the mantra of liberal values rooted in European society that these things can happen here, too. In the final analysis, capitalism is based on brute force and its exercises in democracy are merely formal, cosmetic. The "indignados" in their camps around Europe are right to demand real democracy, when everyone can see that the decisions that concern all of us are taken in Brussels and by the ECB.

We should of course never forget that there can be no democracy in politics unless there is democracy in economics. As long as the economy (i.e., the organization of the means to guarantee the people's subsistence) is in the hands of a minority, it will be at the service of a minority. And this minority will have power over the others, without having to worry whether it governs by means of referendums or technocrats. This is the basic limit of democracy, sacrosanct private property and this should be the first element that any truly alternative project must challenge if it is to overcome the crisis.

José Antonio Gutiérrez D.

15 November 2011

Article written for Anarkismo.net. Translated by FdCA-International relations office.


[1] On monitored democracies that are being set up under the patronage of the EU and the USA in countries which have deposed their dictators, see the articles I wrote some months ago: http://www.anarkismo.net/article/19017 and http://www.anarkismo.net/article/19142

Sunday, February 20, 2011


HUMOUR:
EVOLUTION IN ACTION:

Saturday, March 20, 2010


AMERICAN POLITICS:
BANKER GUILTY AS CHARGED:


The following item is from the AFL-CIO Blog. It describes a recent action in the city of Madison Wisconsin where a mock trial of JP Morgan Chase executive Jamie Dimon. The action was part of an extended campaign to put pressure on American financial institutions to create jobs.
ALALALALALALALAL
JPMorgan Chase Greed Brings ‘Guilty’ Verdict

JPMorgan Chase CEO Jamie Dimon was found guilty yesterday of conspiracy to wreck the economy, destroy jobs and the immoral use of taxpayer bank bailout money for millions in Wall Street bonuses.
The courtroom was on a Madison Wis., street in front a JPMorgan Chase bank branch and the jury included dozens of union and community activists. The street theater was part of the AFL-CIO union movement’s two weeks of action across the country to Make Wall Street pay to create jobs and fix they economy they ravaged.
Jim Cavanaugh, president of the South Central Federation of Labor, which organized the curbside drama, says:
We bailed out Wall Street now its time for Wall Street to bail out Main Street.

More than 200 “Good Jobs Now, Make Wall Street Pay” actions are planned through March 25. The rallies and marches will demand that the Big Six Wall Street banks–Bank of America, Citibank, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wachovia-Wells Fargo–take the following actions:
**Pay their fair share to restore the jobs their actions destroyed.
**Stop their multi-million dollar lobbying blitz to kill financial reform.
**Start lending to communities, small businesses and others starved for credit.
Also yesterday, union members distributed leaflets in front of JPMorgan Chase branch in Baton Rouge, La., and rallied at a Bank of America office in Charleston, S.C. Today union activists in Butte, Mont., will march in the town’s St. Patrick’s Day parade carrying “Make Wall Street Pay” signs and banners. This afternoon, the West Virginia AFL-CIO, along with community allies, staged a rally in front a Wells Fargo/Wachovia Bank in Charleston.
Find out about events in your area here. If you take part in an event, be sure to send us your photo or video here.

You also can tell Wall Street executives to pony up and create good jobs by sending a letter urging them to do the right thing. Just click here.
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The Letter
I have to admit that I have my doubts about this one. Petitioning bankers to go against their self interest is something like petitioning the Devil to cease being the High Lord of Hell. Still, for what it is worth you can go to this link to send the following letter to assorted lords of finance.
ALALALALALALALALALAL
Dear [ Wall Street Banker ],
I am part of the fight to create the 11 million good jobs America needs--and I call on you and all the big Wall Street banks to:
1. Pay your fair share to restore the jobs you destroyed.
2. Stop fighting financial reform.
3. Start lending to communities, to small business and to others starved for credit so they can create jobs.
Sincerely,
[Your name]
[Your address]

Sunday, February 15, 2009


ECONOMIC CRISIS:
VALUE FOR YOUR MONEY ?:
The following article by Linda McQuaig is taken from the online progressive news site Straight Goods. It originally appeared in the Toronto Star. Think about the following the next time you hear about the "incentives" that management claims it needs.
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About those bank CEO salaries...:
There is no evidence that phenomenal pay packages inspire higher performance levels.
by Linda McQuaig
It's probably a while still before we see bank CEOs on street corners selling the homeless news.

But reports last week of bank presidents cutting their own pay were somewhat eye-catching. (For a little perspective: Rick Waugh of Bank of Nova Scotia will take home $7.5 million this year — after his cut.)


Starting in the 1980s, a sea change swept away concerns about inequality and unleashed an era of greed and skyrocketing incomes at the top.

Still, the pay cuts suggest that even inside the most well-fortified Bay Street towers there are jitters that the people down below may start questioning how the economic pie is divided and why they are getting such a small — and shrinking — slice.

Certainly revelations of Wall Street hijinks have raised questions about the skewed nature of financial rewards and, more generally, about how far North American culture has drifted from what used to be known as the "work ethic".

We're waking up to the fact that, starting in the 1980s, a sea change swept away concerns about inequality and unleashed an era of greed and skyrocketing incomes at the top.

We're told that exorbitant pay is necessary to motivate great performance.

But that canard was surely put to rest last month by John Thain, former CEO of Merrill Lynch. Thain explained that it had been necessary to pay $4 billion in executive bonuses to keep the "best people", after those people had just steered the company to a net loss of $27 billion and helped trigger a global recession. (What might some less capable people have done? — started a nuclear war?)

Even when there is great performance, does the wild inflation in top incomes make sense?

Take baseball. In the early 1970s, Hank Aaron was the top-paid player at $200,000 a year. Last year, Alex Rodriguez, with similarly dazzling statistics, earned $27.7 million. Adjusting for inflation (but not for drugs), that makes Rodriguez's pay more than 25 times greater than Aaron's. Is Rodriguez's performance more than 25 times better?

There's no evidence that today's phenomenal pay packages — in sports, entertainment or business — are motivating today's players, performers or executives to any higher performance levels than more modest packages did a few decades ago.

Indeed, there's little logic to our approach to financial rewards. People want to be compensated for work — particularly when it involves drudgery or unpleasantness. But those at the top typically love their jobs, and are motivated by the desire to excel and win recognition. Money is one form of recognition, but there's no evidence that financial rewards have to be gigantic, or that much larger financial rewards produce any greater results.

Vincent van Gogh was motivated to produce hundreds of works of great art, even though he only managed to sell one of them, for a pittance, just before he died. Shakespeare produced the world's greatest dramas without even the prospect they'd become Hollywood blockbusters.

The pay for those at the top has gotten ridiculously out of whack in recent years. Among other things, this underlines the need for a more progressive tax system.

It's also been noted that if we cut the pay of those running our financial institutions, they might seek more useful employment as teachers or health-care workers. But a letter to The New York Times last week made a compelling case for maintaining Wall Street bonuses: "Without them, Wall Streeters will all look for other jobs. Do we really want these greedy, incompetent clowns building our houses, teaching our children or driving our cabs?"

Journalist and best-selling author Linda McQuaig has developed a reputation for challenging the establishment. As a reporter for The Globe and Mail, she won a National Newspaper Award in 1989 for writing a series of articles, which sparked a public inquiry into the activities of Ontario political lobbyist Patti Starr, and eventually led to Starr's imprisonment. In 1991, she was awarded an Atkinson Fellowship for Journalism in Public Policy to study the social welfare systems in Europe and North America.

She is author of seven books on politics and economics – all national bestsellers – including Shooting the Hippo (short-listed for the Governor General's Award for Non-Fiction), The Cult of Impotence, All You Can Eat and It's the Crude, Dude: War, Big Oil and the Fight for the Planet. Her most recent book is Holding the Bully's Coat: Canada and the US Empire.

Since 2002, McQuaig has written an op-ed column for the Toronto Star. This article, which appears here with permission, previously appeared in The Star.
Email: lmcquaig@sympatico.ca. Website: http://www.lindamcquaig.com.

Tuesday, June 10, 2008


CLASS SOCIETY:
AH- FOR THE LIFE OF A BANKER:
The following item is from the Canadian Union of Public Employees (CUPE). It was originally published in the Truro Daily News.
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Pity the poor bank CEOs
Let's all get out our handkerchiefs for the poor Canadian banks who May 28 reported their profits were, um, down.

Poor CIBC. It lost just over $1 billion because of its 'exposure to investments tied to the U.S. subprime mortgage' fiasco, one of the most discredited financial schemes in recent history. I guess greed has its own price.

And pity Scotiabank, whose CEO Rick Waugh reported second-quarter profits of $980-million, down six per cent from a year earlier. Despite the disappointing quarter however, Waugh probably isn't turning down the thermostat at home quite yet.

Waugh took home a cool $13.4 million in 2006. And as if that's not sweet enough, much of his compensation was in stock options for which he paid half the rate of tax that ordinary workers like you and me pay for their much more modest incomes.

CEO salary amounts for 2007 are not out yet, but none of us are expecting much to change.
To put this handsome pay packet in perspective, it is 682 times the amount of the average income for a bank teller (still a mostly female job) in Nova Scotia, according to Statscan's recent census data on income and earnings.

And yet these women - much like Early Childhood Educators and home support workers and other women in predominantly female sectors - have done everything they were supposed to do to narrow the wage gap.

Women are now more educated. Women are working in great numbers and for longer hours. Women are having fewer children and taking less time away from work. But the wage gap, 70 cents for every male dollar, still exists.

I don't know about you, but I won't be shedding any tears for the banks this week, or any time soon. It's time we stood up to these greedy corporations that suck the life blood out of Canadian working families. It's just time.

This piece by Danny Cavanagh appeared in the Truro Daily News.