MEDIA ROOTS — Although the corporate media touts an improving economy, U.S. citizens continue to suffer cruel economic punishment and austerity.  Millions of citizens still search for employment, and the typical income of a U.S. household is less now than it was in 1997.  Why is the economy not improving?  Wall Street makes an easy target for the ire of struggling workers, but is there a deeper, more complex reason why the economy creaks, tumbles and rolls like an outdated galleon laboring in rough seas?

Economist Joseph Stiglitz offers in-depth analysis of the weakening foundation of the U.S. economy.  In the years leading up to 2008, U.S.A. lived in an easy-credit, fast-money mania, fueled by wildly inflated home values, corrupt appraisers, and financial gimmicks.  However, the integrity of the economy was compromised even before the meltdown, explains Stiglitz.  Our collective economic livelihood had been dealt a slow acting, poisonous blow long ago, as other observers such as Catherine Austin Fitts and Dr. Michael Hudson have described. 

Stiglitz draws insight comparing today with the tumultuous Great Depression, which had been well underway for years before the banking sector crashed.  What brought about the economic paralysis?  The primary cause was a quiet, but massive, transition away from an agriculture-based economy.  As food production modernized and became more efficient, less farmers were required to grow the food necessary to feed the U.S.  Suddenly, a vast portion of the U.S. workforce became obsolete through automation. 

Stiglitz argues broad changes must be made in tandem with large, concentrated investment.  As once industrious manufacturing regions of U.S.A. wither and rust, elected officials neglect investment in education, research, and infrastructure, favoring austerity cuts.  Yet, these three areas provide opportunities for healthy economic growth and future employment, as the nation struggles to adapt to the 21st century.  Addressing these needs, perhaps, U.S.A. can fulfill its promise of greatness and prosperity.

MR

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VANITY FAIR — Even when we fully repair the banking system, we’ll still be in deep trouble—because we were already in deep trouble. That seeming golden age of 2007 was far from a paradise. Yes, America had many things about which it could be proud. Companies in the information-technology field were at the leading edge of a revolution. But incomes for most working Americans still hadn’t returned to their levels prior to the previous recession. The American standard of living was sustained only by rising debt—debt so large that the U.S. savings rate had dropped to near zero.

And “zero” doesn’t really tell the story. Because the rich have always been able to save a significant percentage of their income, putting them in the positive column, an average rate of close to zero means that everyone else must be in negative numbers. (Here’s the reality: in the years leading up to the recession, according to research done by my Columbia University colleague Bruce Greenwald, the bottom 80 percent of the American population had been spending around 110 percent of its income.) What made this level of indebtedness possible was the housing bubble, which Alan Greenspan and then Ben Bernanke, chairmen of the Federal Reserve Board, helped to engineer through low interest rates and nonregulation—not even using the regulatory tools they had. As we now know, this enabled banks to lend and households to borrow on the basis of assets whose value was determined in part by mass delusion.

The fact is the economy in the years before the current crisis was fundamentally weak, with the bubble, and the unsustainable consumption to which it gave rise, acting as life support. Without these, unemployment would have been high. It was absurd to think that fixing the banking system could by itself restore the economy to health. Bringing the economy back to “where it was” does nothing to address the underlying problems.

The trauma we’re experiencing right now resembles the trauma we experienced 80 years ago, during the Great Depression, and it has been brought on by an analogous set of circumstances. Then, as now, we faced a breakdown of the banking system. But then, as now, the breakdown of the banking system was in part a consequence of deeper problems. Even if we correctly respond to the trauma—the failures of the financial sector—it will take a decade or more to achieve full recovery. Under the best of conditions, we will endure a Long Slump. If we respond incorrectly, as we have been, the Long Slump will last even longer, and the parallel with the Depression will take on a tragic new dimension.

Until now, the Depression was the last time in American history that unemployment exceeded 8 percent four years after the onset of recession. And never in the last 60 years has economic output been barely greater, four years after a recession, than it was before the recession started. The percentage of the civilian population at work has fallen by twice as much as in any post-World War II downturn. Not surprisingly, economists have begun to reflect on the similarities and differences between our Long Slump and the Great Depression. Extracting the right lessons is not easy.

Read more about America’s 21st Century Job Engine.

© 2012 Vanity Fair

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Photo by Flickr user clementine gallot

MEDIA ROOTS – Early Monday morning, the controversial website WikiLeaks released a stunning collection of Global Intelligence Files from the private intelligence corporation Stratfor.

According to WikiLeaks:

“The Global Intelligence Files exposes how Stratfor has recruited a global network of informants who are paid via Swiss banks accounts and pre-paid credit cards. Stratfor has a mix of covert and overt informants, which includes government employees, embassy staff and journalists around the world.

The material shows how a private intelligence agency works, and how they target individuals for their corporate and government clients. For example, Stratfor monitored and analysed the online activities of Bhopal activists, including the “Yes Men”, for the US chemical giant Dow Chemical. The activists seek redress for the 1984 Dow Chemical/Union Carbide gas disaster in Bhopal, India. The disaster led to thousands of deaths, injuries in more than half a million people, and lasting environmental damage.”

Most mainstream media reports aren’t covering several important issues that these files bring up, like how Stratfor has been gathering intelligence and spying on journalists and activists all over the world for not only the government, but for private corporations like Coca-Cola.

Comedy/activist duo the Yes-Men found out they were being spied on by Stratfor because of their activism surrounding the Bopal Chemical Disaster.  Other media outlets that had intelligence gathering done on them include Rolling Stone, Wikileaks itself (over 4,000 emails alone), Sunday Star Times, The Hindu, Russia Reporter, Publico and an unknown amount more.  Wikileaks says that more information about journalist spying is yet to be revealed.

Activist Cosmos found an intriguing tidbit of information within the e-mails that uncovered how “out of Wikileaks’ release of 5 million Stratfor emails is the comment from Fred Burton, Stratfor’s Vice President of Intelligence, that the Imam of the controversial so-called Ground Zero mosque is an “FBI operational asset.” Burton, who was formerly a special agent with the US State Department’s Diplomatic Security Service and the Deputy Chief of their counterterrorism division, made the comment on an email chain regarding a New York Observer article, Untangling the Bizarre CIA Links to the Ground Zero Mosque.  The controversy surrounding the “Ground Zero mosque” overwhelmingly dominated the news and discussion surrounding the ninth anniversary of the 9/11 attacks.”

At Media Roots, we recommend that you don’t rely on our or any other media outlet’s coverage of the recent leak.  Instead, you can watch the entire press conference with Julian Assange about the Stratfor leaks here:

Julian Assange Press Conference on Stratfor Leaks

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Written by Robbie Martin for Media Roots

Photo by Flickr user Animantion Concept

MEDIA ROOTS — With governments, citizens, and activists worldwide increasingly relying on the internet, the environment the internet fosters is a hotly contested issue.  Last summer, the United Nations declared that disconnecting people from the internet was a human rights violation and against international law.  Considering internet access as a human right and witnessing the vital contribution it has played in the Arab Spring and Occupy Movements, the sanctity of preserving a free and open internet, or net neutrality, can’t be understated.  Even the U.S. military recently acknowledged the critical role of cyberspace by including the digital domain in its latest concept of “full spectrum dominance.” 

As humanity’s relationship with the burgeoning information age matures, threats to a free and open internet continue to proliferate.  Indeed, when the printed press, radio, TV, and every other technological innovation, which have promised to revolutionize public access to a diversity of information, were developed, they’ve faced consolidation, monopolization, and the resultant transferences of power and control into few hands.  Now, potential predators stalk the digital realm; and they have been revealed as SOPA, PIPA and ACTA.

SOPA, PIPA and ACTA all generally share the same goals which are to ostensibly protect trademarks and intellectual property, while fending off counterfeiting and pirating.  SOPA and PIPA are U.S. pieces of legislation, while ACTA is a transnational agreement.  After recent public outcries, internet users defeated an attempt to pass SOPA and PIPA on Capitol Hill.  However, SOPA will be resurrected soon.  Meanwhile, countries around the world vigorously protest the enactment of ACTA.  What’s the significance of these acronyms on our digital routines?  Let’s break each one down individually and have a closer look.

PIPA: Protect IP Act – Preventing Real Online Threats to Economic Creativity and Theft of Intellectual Property

PIPA’s stated goal would have given the U.S. government and copyright holders additional capabilities to restrict access to websites involved in copyright infringement and the distribution of counterfeit goods.  Senator Patrick Leahy (D-VT) originally introduced Senate Bill 968 on May 12, 2011, but the motion to proceed with the legislation was withdrawn January 23, 2011. 

The most controversial aspect of the bill would have enabled Domain Name System (DNS) blocking and redirection.  DNS serves as the virtual yellow pages of the internet.  By blocking and redirecting DNS, this essentially tears entire pages out of the phone book, creating an incomplete version, no longer compatible with the rest of the world.  In this scenario, a simple search for a site would yield a message stating the site no longer exists. 

SOPA: Stop Online Piracy Act

SOPA (H.R. 3261) is the sister bill to PIPA in the House of Representatives.  SOPA was introduced by U.S. Representative Lamar Smith (R-TX).  Its legal aim was to provide law enforcement agencies greater online jurisdiction to prevent violation of copyrighted intellectual property and the creation of counterfeit goods. 

According to OpenCongress.org,

“This bill would establish a system for taking down websites that the Justice Department [DoJ] determines to be dedicated to copyright infringement. The DoJ or the copyright owner would be able to commence a legal action against any site they deem to have ‘only limited purpose or use other than infringement,’ and the DoJ would be allowed to demand that search engines, social networking sites and domain name services block access to the targeted site. It would also make unauthorized web streaming of copyrighted content a felony with a possible penalty up to five years in prison.”

The bill’s inherent dangers would have allowed the U.S. government and private companies to arbitrarily incapacitate websites, thus threatening freedom of speech.  Furthermore, thousands of websites would have been jeopardized based on their user-generated content, which in turn, frequently relies on copyrighted material.  Following the SOPA Blackout Day on January 18^th, Senate Majority Leader Harry Reid (D-NV) rescinded H.R. 3261’s vote on January 24, 2012. 

This brief video offers a concise explanation of SOPA.

The battle for online freedom plows ahead, in light of a new bill originating in the Senate Homeland Security and Government Affairs Committee.  Senator Joe Lieberman (I-CT), who chairs the Committee, is engineering the latest attempt to widely expand authority by Executive Branch departments over the internet.  The debut of this new cybersecurity bill is expected today, February 16, 2012.  Details of the cybersecurity bill have not been revealed, a result of the legislation’s crafters meeting behind closed doors.  Theories abound that the bill, which has benefited from bipartisan support, would grant the Department of Homeland Security expansive new powers to regulate and stake out the internet under the pretext of cybersecurity.  However, the persistent attempts to pass such legislation adversely impacting free speech and the flow of information must be questioned.  Large amounts of financial contributions to politicians, as well as dubious connections, may indicate that a broader agenda is at work.

Supporters of SOPA and PIPA will likely vigorously lobby for the new cybersecurity bill to be passed.  Backers of this type of legislation read like a who’s who list of Hollywood industry bosses.  From the MPAA (Motion Picture Association of America) to the RIAA (Recording Industry Association of America), major Hollywood power brokers angle to protect their interests.  A total of 161 entities have stumped for the passage of SOPA and PIPA.  Besides the MPAA and RIAA, they include the AFL-CIO, the International Brotherhood of Teamsters, Comcast, Disney, and Sony.  Based on some of the groups in favor, the entire matter appears to be a pet project of the Democrat Party.  This comes as no surprise when considering who the vanguard of Hollywood intellectual property has historically been.

Chris Dodd has made it his mission to crusade in Washington D.C. on behalf of Hollywood under the pretext of copyright protection legislation.  Dodd is the perfect bridge between Hollywood and the Beltway.  On March 1, 2011, Dodd was chosen as chairman of the MPAA.  On the side, he also lobbies for an organization called Creative America. 

According to Creative America’s website:

“…everyone in the community recognizes what a grave threat content theft poses to our livelihood and creativity – that thieves are making millions of dollars trafficking in stolen film and television while our jobs, pensions and residuals continue to decline.”

Some of the groups involved with Creative America include the CBS Corporation, NBC Universal, the Screen Actors Guild, Twentieth Century Fox, Viacom, and Warner Bros. Entertainment.  A simple search into Dodd’s previous career uncovers much cozier ties to D.C.

Dodd has enjoyed over three decades as a senator and has the distinction of being Connecticut’s longest serving senate member.  He’s one of the most recognizable Democratic senators of years past, with posts on the Committee on Foreign Relations, the Committee on Banking, Housing and Urban Affairs, and the Committee on Health, Education, Labor and Pensions.  However, his post-political career has proven quite lucrative.  According to sources, Dodd rakes in a $1.5 million salary as chairman of the MPAA.  The appointment of Dodd to head the MPAA might be the biggest coup Hollywood has had in years. 

Further evidence from Dodd himself reinforces this as he threatened to cut off financial contributions from Hollywood to politicians who did not support SOPA and PIPA.  The pipeline of sizeable contributions from Hollywood going to politicians is a healthy one most on Capitol Hill would prefer to preserve.

Democrat Senator Harry Reid has also asserted himself a champion of SOPA and PIPA legislation.  He has brought various versions of the bill to the Senate floor and may be bound to three and half million vested interests to pass the legislation; Reid was the beneficiary of $3.5 million from SOPA and PIPA advocates during the last campaign cycle.  Although donations to Reid stand out by far, other elected officials supporting the legislation have received contributions, too:  Democrat Chuck Schumer ($2.6 million), Democrat Kirsten Gillibrand ($2 million), Democrat Barbara Boxer ($1.4 million), and Republican Michael Bennet ($1 million).  Clearly, millions of reasons jeopardize maintaining a free and open internet.  One of those reasons is another piece of little known legislation, called ACTA.

ACTA: Anti-Counterfeiting Trade Agreement

ACTA protests have flashed across Europe over recent weeks.  Anti-ACTAvists have sprung up from the Netherlands to Germany to Poland and many other countries throughout Europe.  The contentious nature of ACTA attempts to normalize an international legal framework that enforces intellectual property rights, but also endeavors to target counterfeit goods and even generic medications.  On October 1^st, 2011, Australia, Japan, Canada, Morocco, New Zealand, Singapore, South Korea, and the United States signed the agreement.  At the start of 2012, the European Union and 22 of its member states ratified ACTA, bringing the total signatories to 31. 

Battle lines have been drawn and two organizations are standing toe to toe—the MPAA and the Electronic Frontier Foundation (EFF).  According to the EFF, “[…] copyright industry rightsholder groups have sought stronger powers to enforce their intellectual property rights […] to preserve their business models.”  This sentiment essentially drives to the heart of the debate, one which also includes SOPA and PIPA.  Those opposed to restricting the internet view these efforts as a veiled and desperate attempt at trying to preserve an atrophying business model, being rendered obsolete by the age of digital file sharing.  This sentiment has galvanized many who sense that the true reason the public digital domain is under siege is in attempts to undermine free speech and democracy.  Due to what’s at stake, emotions have run high.  U.S. Rep. Darrell Issa (R-CA) has called it “more dangerous than SOPA.”  Popular opinion likely agrees with Issa, but is the truth harder to discern?

A lot of misinformation swirls around ACTA.  The hacktivist group Anonymous shares some of the blame.  A popular video produced by the amorphous, hacktivist collective shines light on ACTA’s pitfalls.  But is the hit piece video accurate?  According to ArsTechnica.com, there are four dubious claims that Anonymous makes:  ISPs will monitor all your data packets, ACTA obliges its member countries to assent to the worst features of SOPA and PIPA, generic drugs will be banned and seeds will be controlled via patents, and ISPs will be constantly required to scour their servers for even the smallest bits of copyrighted material.  The Anonymous video, which includes a qualifying disclaimer at the outset, has been widely embedded in articles online and reached nearly one million views.  Anonymous noted, “This video may not reflect the recent changes within the ACTA text.  However, it will give you an idea of what ACTA is about and why the internet should fight it.”  And, of course, after sorting any conflicting claims, ACTA still deserves a thumbs-down verdict.  We also bear in mind internet censorship, freedom of speech restrictions, loss of net neutrality, domestic surveillance, and civil rights erosions and police state repression have already been ongoing issues plaguing the U.S.  ACTA would simply codify existing repressive policies for people in the U.S. under the pretext of opposing counterfeiting.

ACTA is a poorly crafted agreement and simply bad.  ACTA’s basic criticisms are threefold:  the agreement’s designers are not democratically elected nor accountable, the ACTA negotiations were held in secret, and there was no discussion held in a public forum.  ReadWrite Enterprise does a fine job laying out ten reasons why ACTA fails.  Furthermore, even though ACTA probably won’t change U.S. law, it would lock us into a constrictive legal space in an area of law that changes rapidly.  Much like activists around the world can now respond more quickly to police brutality and government tactics of repression thanks to the internet, file sharing enthusiasts are finding new ways to circumvent internet censorship just as quickly.

The Internet Can’t Be Bound and Gagged

Already the hive mind of the internet has developed a solution to undercut potential censorship attempts.  Many people are unaware the internet exists similarly to an iceberg; only a small portion of it is visible to the average user.  A significant amount of the internet lies hidden in an area called the deep web.  The deep web lies obfuscated to the armchair web surfer due to an inability to access it by simply typing it into a search engine and accessing it.  For example, the deep web does not employ the use of meta tags or DNS and blocks search engines, among other characteristics, making navigation there challenging.  In this secretive environment, hackers have been diligently working on a new protocol called Tribler.

Tribler works in a similar fashion to other BitTorrent clients except that when search results are produced, they aren’t procured from a central index, rather they are directly produced from other peers.  According to TorrentFreak,

“Downloading a torrent is also totally decentralized. When a user clicks on one of the search results, the meta-data is pulled in from another peer and the download starts immediately. Tribler is based on the standard BitTorrent protocol and uses regular BitTorrent trackers to communicate with other peers. But, it can also continue downloading when a central tracker goes down.”

This type of decentralized structure would allow users to create ‘channels’ amongst themselves and make Tribler an indomitable force, making neutralization by censors extremely difficult.  Tribler will make it “impossible to shut down unless the whole Internet goes down with it.”  This will come as excellent news to millions of people witnessing attempts to stifle internet freedom with ACTA, SOPA, PIPA, and ongoing attacks on net neutrality. 

The race to control the internet rages on, but developments like this beg the question:  Does the internet adapt and evolve too quickly for elected officials to harness it?  This brings to mind Wile E. Coyote and the Roadrunner.  Some things can just never be caught.  However, U.S. voters continue to support the two-party system, which continually abandons them whilst representing corporate interests.  Time will tell.

Written by Adam Miezio for Media Roots

Photo by Flickr user DonkeyHotey

MEDIA ROOTS — Capitalism Is The Crisis: Radical Politics in the Age of Austerity is a film featuring a diverse array of thinkers offering common sense analysis of the trappings of modern life and critical perspectives on basic assumptions of capitalism and democracy.  The film presents original interviews, including Chris Hedges, David Graeber, Derrick Jensen, Michael Hardt, Leo Panitch, David McNally.

The movie is about waking up our neighbours to the glaring ills plaguing our society. It argues that capitalism is the crisis and dares us to imagine saner alternatives.

“The way to make money is to buy when blood is running in the streets.”  —John D. Rockefeller, American oil magnate, robber baron

“The engines of corporatists cannot be halted.  They are impervious to the will of those who they exploit, they are more powerful than the governments they control, and they have built within them an inevitable, kind of, mechanism for self-annihilation because corporations have this strange pathology where they turn everything into a commodity.  Human beings become commodities.  The natural world becomes a commodity.  And you exploit these commodities until exhaustion or collapse.  And that’s precisely what’s happening.” —Chris Hedges

Messina

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Capitalism is the Crisis

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CAPITALISM IS THE CRISIS — The 2008 “financial crisis” in the United States was a systemic fraud in which the wealthy finance capitalists stole trillions of public dollars. No one was jailed for this crime, the largest theft of public money in history.

Instead, the rich forced working people across the globe to pay for their “crisis” through punitive “austerity” programs that gutted public services and repealed workers’ rights.

Austerity was named “Word of the Year” for 2010.

This documentary explains the nature of capitalist crisis, visits the protests against austerity measures, and recommends revolutionary paths for the future.

Special attention is devoted to the crisis in Greece, the 2010 G20 Summit protest in Toronto, Canada, and the remarkable surge of solidarity in Madison, Wisconsin.

It may be their crisis, but it’s our problem.

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Photo by flickr user JHS