2008 REVIEWS


Truth and Consequences
The Wrecking Crew
The Limits of Power
The Good Society
American Theocracy
The Battle for the Soul of Capitalism
A Time to Fight
The Trillion Dollar Meltdown
The Trouble With Diversity
Consumed
December Surprise, Forclosure Phil
Bad Money
The Age of American Unreason
Better Off
Nemesis
Free Lunch
Deer Hunting With Jesus
god Is Not Great
The Big Con
Against All Hope
Welcome to the Homeland
All the Money In the World


Truth and Consequences
Keith Olbermann
2007

   Keith Olbermann's Countdown show, weekday evening hours on MSNBC, has developed into the counter for Fox's right wing propaganda lineup during the same general time period. Perhaps in conjunction with Republican diminished public esteem during the last years of the Bush presidency it seems to have become more popular and even eclipses The O'Reilly Factor sometimes. After hurricane Katrina Olbermann's blood finally boiled over and out gushed the 1st of his "special comments", nearly 5 minutes straight of taking apart the administration, generally for perpetually scaring the public about terrorist attacks and the deceptions and mismanagement of the Iraq war, which he believes was a colossal blunder in the 1st place.
    24 of those special comments, spanning the time frame from September 2005 to 2 years later, provide the substance of this book. Each is preceded by a short context piece and the collection is flanked by an introduction and a conclusion which time lines the Bush efforts to keep us distracted with questionable terror threats as he grabbed more power at the expense of our freedoms. All of it in less than 180 pages total.
    Olbermann writes forcefully and well. He is apparently moved by accumulated frustration and outrage to spew out these, perhaps cathartic, diatribes as they come to him, not on any regular schedule. He has a knack of exposing hypocrisy, malevolence and stupidity with the use of history (for uncovering contradictions) and wit which makes mainstream media look very tepid by contrast. He isn't afraid to call the president a liar, and worse. He isn't afraid to call for his resignation or impeachment. He isn't afraid to call out Democrats for being "me toos". The popularity of these special comments has been significant enough to get them published--presumably in this 1st volume.
    To pick on a point, one can still argue that however deceptive and mismanaged the conduct of the war has been, its aims and results might turn out to be a net benefit. One can argue that premature discussion about withdrawal of our troops could advantage our adversaries (see page 147). The full accounting of long term consequences has not even begun so certainty isn't justified yet.
    On TV, Olbermann frequently lights up "BillO the clown", crucifies Hannity, Murdock, Limbaugh and Bush administration officials and general bad guys. It is red meat for the left, tired of always being on the defensive. The sarcastic and ironic humor thrown in make for riveting, if slanted, viewing. None of this appears in the book, however. And without his on-air delivery, with all the expressions and verbal accentuations, the written comments seem pallid by comparison.
October 12, 2008
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The Wrecking Crew
Thomas Frank
2008

   Frank wrote the surprisingly popular book, What's the Matter With Kansas? in 2004 and this work kind of picks up where that one left off. The nutshell case he makes is that the political right wing of this country has taken over because small government, deregulation, privatization, tax cutting (for the well off) and "liberal", social spending cutting (for the less so) Conservatives have been rewarded for their efforts by big business and the wealthy class. The book is liberally sprinkled with supporting examples and persuasive arguments. It joins several other recent accounts which have finally tallied the horrendous consequences of our market based, laissez-faire politics.
    Hard line Conservatives, exemplified by Jack Abramoff, Grover Norquist, Tom Delay, Milton Freidman, Howard Phillips, Richard Viguerie, Terry Dolan, Ronald Reagan and GW Bush, just to name some of the worst, have fulfilled the self fulfilling prophesy--populate the government with supportive ideologs, hacks and incompetents to demonstrate that it doesn't work so privatizing can be justified and the favored contractors can get our tax dollars. Then let the kickbacks roll on in. Don't do away with regulatory agencies, just render them compliant and/or dysfunctional. Develop low expectations and cynicism about government and corruption becomes tolerable, even expected. Just as it is now.
    Remember Reagan's Grace Commission report in 1984? It set the stage for privatization. Remember David Stockman's revelations that cut taxes, trickle down economics wouldn't work? You know, the same policy John McCain tried to sell America on during the fall 2008 campaign? Remember NCPAC? In the name of unfettered markets, the right has supported apartheid in South Africa and total business control of labor on Saipan, to take just 2 examples. The right's nirvana is slavery for the masses and all wealth and power only for the favored few. Deception and falsehood are just tactics to that end. Suckering the religious right and the gullible on social "values" has been a staple strategy.
    Right wing radio, Fox, The Wall Street Journal and Washington Times, various magazines, think tanks and publishing houses pour out a never ending stream of propaganda to brain wash the unweary. Columnists, pundits and celebrities find an easier path to prominence, status and high income. Money buys success.
    Norquist's goal is to eliminate the left. This could be effectively done by stopping trial lawyers with new suffocating laws, using rules to endlessly reduce labor unions, privatize all schooling, cut off funds to cities and give Social Security to Wall Street. Campaign on fiscal responsibility then once in office use tax cuts and lavish spending to drive the government into starvation so it can't be effective. As we have seen, Bush has done a magnificent job of that. Even if the left restores a healthy government and nation, its foundational policy of inclusion only lets the unscrupulous rise up again to destroy.
    Don't just read the book. Buy and keep the book.
November 21, 2008
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The Limits of Power
Andrew Bacevich
2008

   This book is devoted to debunking the notion that America has sufficient, unlimited power, particularly military power, to control the world to our likes. In that world we will define and determine "freedom" and insure our right of continued consumer profligency. Bacevich quotes Reinhold Niebuhr frequently to make his point as the book title reflects. As a former colonel in the U.S. Army, it is not surprising that much of this work is devoted to our military overstepping, from Viet Nam up to the current wars in Iraq and Afghanistan. This all started with the Truman administration and Paul Nitze and NSC68 (1950) which began the doctrine of deferring to a coterie of wise men, surrounding the president, in the formulation of foreign policy. Real threats were exaggerated when we were at the height of our power. Russia was contained. But as it receded as a threat we began to expand our influence, indulging in unnecessary small wars and then we finally jumped to preventative warfare under the GW Bush administration. This expansionist policy is in keeping with former empires, which all collapsed. Former Secretary of Defense, Donald Rumsfeld as well as Douglas Feith come in for considerable criticism as does the "stupefying incompetence and dysfunction in" Washington.
    Bacevich describes President Carter's so-called "malaise" speech as the last honest warning from one of our presidents about the disturbing direction we were heading and it cost him the election as the Morning In America man, Ronald Reagan, told the public what it wanted to hear. This set the stage for exceeding our military, economic and social limits, something we have persisted in doing until just recently when the financial bill was presented.
    Bacevich analyzes the military draft idea and after giving the pros and cons, gives it a thumbs down. He cites 3 illusions concerning our armed forces: full spectrum dominance; adherence to set principles for force employment; unending public support. Think IEDs, exit strategy and voluntary enlistment. Additional lessons include the "new war" necessities of nation building + political adherence, the "speed trap" and realizing the limits of high-tech equipment. Our fighting forces have done well but the top military brass has been lacking in providing winning strategies ever since WWII.
    More advisories are listed: war is intractable and it involves unforeseeable risk. And at the end, Bacevich notes our prescribed dependency which necessitates a huge military to protect us. If we were energy independent we wouldn't need Central Command to ensure a continued flow of foreign oil. So our military-industrial-political complex could be behind any lagging effort to develop clean, regional power. That may be the best insight in the book.
    Finally, Bacevich concludes that we must lead in nuclear disarmament and combating global warming. We'll see how the next president deals with these issues.
    Although quite reasonable, this short book lacks a "hook" to hang memory on. One word might sum up the take away: caution.
November 1, 2008
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The Good Society

John Kenneth Galbraith
1996

   With close to 20 previous books published, this short, self described essay is perhaps a fitting last read of one of the most prominent economists of the 20th century. It can be aptly described as a small (in hard bound form), 147 page primer on what constitutes a society that is a credit to the world. This basic layout for the casually interested reader is only complicated by Galbraith's typical convoluted syntax. Parts of this essay are easy to glaze over but the essentials provide the framework for guidance, something that is sorely needed in the confusing agendas of today's America. It is at odds with economist Milton Freidman's philosophy of let the market determine almost everything, otherwise known as Reaganomics. Freidman won the contest between the 2 and the country, and much of the world, lost as a result.
    So what are some particulars? Peace and stability stemming from making sure that no one is left out. Government must provide opportunity for all and support for those who fall through the cracks. The favored must contribute commensurately. This means real progressive taxation. It means government regulation to curb corporate excesses and to maintain a level playing field in the private sector. It means utmost attention to unemployment over inflation. It means responsible budgeting without fear of borrowing for investment purposes, as the technological innovations from new research and development plus infrastructure efficiencies will pay off the debt and then some.
    Education must be a top priority and high quality instruction must reach out to all. America is in a self defeating cycle as poor schooling for the disadvantaged leads to fewer job skills and economic deprivation which culminates in poor civic mindedness. Resulting low voter turnout by the poor allows the chosen candidates to ignore them.
    Galbraith discusses the 2 types of work; interesting, intrinsically rewarding and well paid work and repetitive, dull and dangerous physical work which must be done to keep the society going. The latter gets too little appreciation. A modern society must keep accepting migrants to do many of these jobs and they should be treated well. Perpetual growth will keep most all employed.
    When written in '96 some of today's problems weren't as noticeable. Issue can be taken with the notion of unending growth as the planet cannot expand. Sooner or later we will have to come to grips with reducing production to maintenance levels, if not cutting back to save the environment and nature.
    Another issue on which Galbraith differs from current decisions is in the realm of international responsibilities. Not only must the good society, particularly America, derive efficacious outcomes for its own people but it must intervene, through a U.N. type organization to bring peace, stability and sufficient standards to those countries who are repressive and threatening. What a contrast to our do nothing stance in regards to the Sudan and Zimbabwe etc..
    Given the target audience, i.e. the relative novice to these matters who probably doesn't have a better than average command of the language, this is a tough book to recommend. That is a shame since it lays out the course we should be taking--and are not.
July 14, 2008
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American Theocracy
Kevin Phillips
2006

   Phillips divides this book into 3 essential sections in describing America's plight: our dependence on depleting oil reserves, our sizable minority of evangelicals and fundamentalists, the beliefs they hold and the political power they have, and our incomprehensible public and private debt load.
    He goes into some detail about the decline and fall, from preeminence, of Spain, the Dutch and Great Britain and uses their history to show how it can happen to us--indeed how it will happen to us, given how bad trends have gotten.
    America has evolved, as did the others, from a manufacturing powerhouse based on a supply of cheap and available energy and smart investments into a financialization economy, making money by pushing around money. The accompanying overconfidence and belief in being the "chosen ones" for indefinite prosperity makes the comparisons more secure. Indeed, our so-called prosperity over the last quarter century has, in reality, been a borrowed prosperity; and the interest and principle payments have become overwhelming.
    As finite oil and natural gas supplies have been drawn down since the Reagan presidency, the U.S. has not seen fit to develop renewable and independent alternate sources or even curtail demand (like requiring ever higher CAFE standards). Instead our federal government has been captured by the giant oil companies, to which the Bush presidents are particularly fond of. As Republican anti government regulation and tax cut philosophy has gripped the mentality of the electorate, we have crippled the middle class and formed a plutocracy with little economic allegiance to the home land. The Fed., under Greenspan, has formed stock market and real estate bubbles to temporarily temper the increasingly visible fault lines in the process.
    When the reckoning comes, say with a collapse of the inflated housing market and speculative mortgages, coupled with unprecedented household (credit card) debt and tougher bankruptcy laws, many in middle class will be little more than indentured servants. And all those unregulated debt instruments (CDOs, CDSs etc.) will be at risk, portending a multifaced collapse and dollar decline with much higher interest rates (which may independently come as a result of foreigners getting out of dollars). The U.S. economic landscape may well look like 8/06 Lebanon before it is over.
    Compounding America's economic and energy problems is the sizable minority of nut cases, i.e. supernatural believers, who are anti pragmatic, anti science, faith based ideologs who have captured the non-economic heart of the Republican party. They are the leading edge of our political polarity which thwarts constructive legislative remedies.
    Phillips posits China and SE Asia as the coming hegemon, as America fades into 2nd or 3rd rate status. The comedown will shock most of us but an upside, given the history of the others, is that religiosity will dissipate as it will become clear that prayer alone won't provide.
    What impresses is the depth and the quality of writing. Many sources are quoted and cited. Lesser known statistics and factors are enumerated. Put this book at the top of your "must read" list.
18/August/2006
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The Battle for the Soul of Capitalism
John C. Bogle
2005

   The long boom in U.S. financial markets came crashing down at the start of this millennium, from $17t (trillion) to $9t before $4t was recovered. Many should have been shook up enough to take a closer look at our overall stock investment structure. What they would have found, what the author has known for many years, is that the system is rotten. Summed up succinctly, we have devolved from an owners capitalism to a managers capitalism in which sound, long term investment for progressive, sustained corporate growth and general economic health has been replaced by short term speculation (gambling) in which escalated service costs have robbed investors of billions ($400b a year for the last 5 years). The ascendence of "form over substance, prestige over virtue, money over achievement, charisma over character" has contributed mightily to the concentration of wealth the top 1% owns from 18% in 1970 to about 40% today. This disparity is polarizing our politics (according to Paul Krugman) as well as our class divisions.
    And Bogle supplies plenty of evidence of malfeasance at top levels of corporate responsibility and fund management. It isn't just a few bad apples taking their perp walks, it is the now the way the system works. Specifics include: outrageous CEO pay and perks for mediocre or poor performance; creative accounting to accommodate inflated performance and stock prices in exchange for hefty "advisory" fees; fund trustees (who are supposed to act to maximize owner returns) which hire managers at excessive costs, managers who generate fees by creating turnover, churning that is encouraged by selling fads and "quick buck", high risk instruments. This management class is untouchable, as our diffuse and removed stockholders are ignorant and apathetic and congress and administrations are comfortably "in pocket". Bogle describes how inflated costs and compound interest robs the average investor of so much over time.
    With 2/3s of corporate America held by financial managers, fund managers could be a force in bringing about corporate reform--but they don't. They are as passive as the investing public. Rocking the top heavy boat could throw many overboard and cause real reform.
    And reforms are at hand if the will can be generated to emplace them. Stockholders must become stockowners again. Corporate boards and directors must be independent, not dependent on, their CEOs. No auditors who also provide consulting services. Reduce stock dilution. Insist on transparency. All-in, sufficiently quantified and publicized transaction costs could be raised and speculative, hedge fund (see pp 120-121), outfits could be discouraged. Fund management fees could be renegotiated, their cost per unit should go down, not up, as assets are enlarged. Raise the importance of dividends over speculation. Bogle calls for a congressional commission to investigate and propose encompassing reforms.
    With 15% (in 1975) to 29% (in 2003) of all corporate profits going to the financial industry (the more they take, the less investors make) our economy is being crippled by maldistribution of wealth and misplaced investment. The system is as broken as our political system which tolerates it. Stick with an index fund and hold long term-after you read this book.
17/July/2006
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A Time To Fight
Jim Webb
2008

   It doesn't take long to verify that Virginia Senator Webb has been, and is, a good writer. The reader can glide through the pages. "Fight" recounts the author's lifelong experiences in the Marines (both in Viet Nam and the Pentagon), as a writer/historian/traveler, congressional aid and finally campaigning and becoming a Senator in congress 2 years ago. One can easily be impressed by his varied, bouncing round background, the lessons it has taught and the positions derived. This is not just another lawyer occupying a senate seat.
    Most of the book is devoted to his take on the military and foreign affairs. He is uneasy with our evolving military drift towards a mercenary army increasingly abetted by private security soldiers. Little attention has been paid to the fact that we have more private contract forces in Iraq than military personnel. As our armed forces become more divorced from the "citizen soldiers" they used to be, we face an increasing threat of a military coup down the road. War profiteers and their shills advocate military answers to political problems. Having seen warfare up close (e.g. watching a little Vietnamese boy slowly die because it was too dangerous to bring in a rescue helicopter), Webb eschews this priority.
    How much the military can and should influence political strategy, how much officers can and should speak out, gets Webb's attention. He discusses General MacArthur. Webb is also concerned that America has no overall foreign policy strategy with which to guide specific responses. Three forces are cited which have changed the military/civilian relationship since WWII. 1- limited wars, 2- evolution of the military-industrial complex and 3- the politicization of the military career and separation from our society. The revolving door isn't just between congress and corporate America.
    Instead of digging in diplomatically early on in the Israeli-Palestinian conflict or engaging the Burmese generals, the Bush administration went to war in Iraq, spending down the good will we received after 9/11. China, a real strategic threat, moved into South East Asia instead. Engaging repulsive regimes is often preferable to ignoring them and imposing sanctions.
    One might have justifiably expected more about domestic policy from a sitting Senator but Webb only spends a chapter or so on internal priorities. He does express serious concern about how the fortunate have soared away from the rest in an increasingly class locked society. He quotes the figures we should all remember: the top 1% owns over 1/2 of our stocks; the top 1% received over 20% of the 2005 income; those making over $100,000 a year, the top 10%, took in almost half of our income. These are Gilded Age type figures. And even those outrages are surpassed by what some corporate CEOs and hedge fund managers take in--something like 10,000 times an average income. Let's hope that these concerns get translated into new, progressive legislation and enforcement. Webb could be one of the independent, good guys in Washington.
September 19, 2008
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The Trillion Dollar Meltdown

Charles R. Morris
2008

   Anyone paying attention knows that the situation is ominous. Anyone paying attention to the various bailouts (S&Ls, LTCM, Enron, Mexican investors etc.), not to mention the earlier boom and bust cycles of the 19th century and the great depression less than 100 years ago, knows that unregulated, lassie-fair, run wild capital markets do not continually act in the best interests of the public. Yet we have seen 30 years of diminution of federal oversight by a government that Ronald Reagan described as "the problem". Led by John McCain's "former" economic advisor, Phil Gramm, and with the complicity of President Clinton's scrapping of Glass-Steagall, which separated commercial (gov. insured) from investment (risk taking) banking, coupled with a proliferation of new investment products brought to market by technological advances, we have seen our financial sector escape the bounds of comprehension and judicion.
    This book is a small, 169 page description of how far our financialization industry has gotten out of hand. Although the size and limited scope of a primer, the complications, both as to abuses and potential abuses, as well as consequences and likely coming consequences, make for something attuned to the already capital market sophisticates. But one has to start somewhere.
    Much attention has been given to a major cause of the current market insecurity; i.e. securitized mortgages (CMOs). Banks used to make housing loans and hold on to them, working with customers to avoid any interruptions in payments. No more. Those loans have been bundled up and sold off to other investors. Then they have been "tranched", sliced into best rated, most secure, highest cost and lowest payouts to the bottom "toxic waste" sub prime loans that are most likely to default but pay the highest dividends--and several layers in between. Properly rating these bonds has become ever more complicated and confounded by some ratings agencies being compromised. The riskiest layer has been frequently bought up by highly leveraged hedge funds. It is all about the fees for each transaction, incomes that go to the top managers, making them filthy rich. Former Federal Reserve Chairman, Alan Greenspan, is cited for recklessly flooding the economy with virtually free money to prop up investment houses facing margin calls. Bubbles resulted. After the book was written in November 2007 we have seen that anyone "too big to fail" can borrow ever more funds from the Fed at taxpayer risk in order to forestall any impending collapse. So far it's reprehensible but understandable.
    However, then there are the default swaps, the SIVs and "synthetic" CDOs (which include CMOs and CLOs) complicated by Fed fund money supply movements and debasing currency. Even a personal tutor might be unable to make sense of all this.
    Although the big trillion dollar, write down led, recession predicted by Morris hasn't happened yet, it should not be any surprise that we will find out that things are worse than realized once Bush has left office. This will cripple the reinvestment in America plans of the next administration and make us increasingly ripe pickings for foreign sovereign wealth funds.
    It is hard to see what is holding up the economy now. But we can face up to the problem and get past it (somehow?) or cover it over as the Japanese have done for the last 20 years of lagging growth.
    Morris doesn't offer much in the way of solutions--perhaps because there are none. Duck and cover.
August 31, 2008
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The Trouble With Diversity

Walter Benn Michaels
2006

   This is a small, 203 page book and it could have been usefully less than that. The title might lead one to believe that this is a critique of those who support immigration (legal or not) and the chunking up of our great, assimilating, melting pot. Not so.
    Michaels makes his case for the slight of hand going on in America in which our purported approval of racial, gender and sexual orientation equality blinds us to real, economic class distinctions. Indeed, the move is afoot to garner the poor with equal respect with the middle class and even the rich while ignoring the real injustice and hardship those at the bottom face. It is easier to proclaim respect for all than to give back wealth to those in need. Our national blind spot concerning class is an example of what Daniel Goleman talked about (Vital Lies, Simple Truths ) in the '80's.
    This book probably belongs on the shelf next to What's the Matter With Kansas? in that it exposes a national swindle that is going on. In the last chapter, About the Author, someone describes our national delusion about class mobility and individual expectation. Very few are going to move up to the "rich" category and just feeling rich, middle class or poor doesn't make it so, although apologists for the well off would like us to think that's true. The point is not that Blacks are poorer as a percentage but that there are more poor whites (17 out of 37m or 45.6%) than any other category. Class diversity doesn't equate with race/cultural diversity.
    Michaels tackles affirmative action and the illusion of meritocracy. It does no good to promote racial quotas when inadequate public education for the under privileged means that they will fail. If we replaced race based AA with a class based counterpart, half of Harvard's students would have to go. The deck remains stacked. Reparations get analyzed too. You can't restore intangibles.
    And ideology, as with religion for instance, does not comport with race or culture diversity. It is not prejudice to disagree with those who would force us to live their way. Color has nothing to do with beliefs but religion has everything to do with them. This nation needs to focus on real differences, not inconsequential ones.
   "The trouble with diversity, then, is not just that it won't solve the problem of economic inequality; it's that it makes it hard for us to even see the problem." Conservatives ignore the economic problem (or feel the poor deserve their status and hardship) and liberals treat the poor as minorities who deserve equal respect rather than concentrate on redistribution.
    Coming from an English professor it is not surprising that there is a fair amount of confusing and repetitive argument in this book but the central thesis is noteworthy and ancillary points deserve our attention. It will be interesting to see how often this work is referred to in the coming years.
19/January/2007
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Consumed
Benjamin R. Barber
2007

   The premise, and its corollaries are sound and deserve to be explored. Loosely regulated, market capitalism and corporate America (and other large corporations) have turned us from productive citizens into infantalized, all consuming adults. We have become increasingly identified not by who we are but by what we own. Private life has replaced civic involvement. The so-called "free market" actually undermines democracy and real freedom.
    Capitalist markets go after those that have enough and neglect those in real need of material resources (advertisers spend over $200b a year in the U.S. to get us to buy what we don't usually need). Barber asserts that north America and western Europe, with 11.5% of the world's population, controls 60% of consumer spending while Africa, with 11% of the world's population, controls only 1.2% of consumer expenditures. /Not only is there this imbalance but the consuming citizens have been rendered feckless and undiscriminating in their buying habits as world wide mass marketers try and cut costs. Ubiquitous advertising persuades us to buy "brands". Fast food franchises, which eliminate distinctive, local restaurants, are a prime example of this. And our enculturated addiction to shopping is not leaving us happier as our lives seem increasingly hollow. Evermore distractions (and/or medications) are needed to relieve accumulating stress, alienation and depression.
    The 18 item list of infantilazion examples on page 83 is worth examining. Reduced, they involve going from HARD to EASY, COMPLEX to SIMPLE and SLOW to FAST. Media examples abound.
    "Privatization also places inviable costs on taxpayers and allows market institutions to appear more cost efficient and inexpensive then they are." When quality, not just quantity, is factored into measurements, truer reality is exposed. And "Inequality is not incidental to privatization, it is its very premise." The well off try and shed the public sector, reducing or eliminating redistribution, in favor of their own private "commons". Currently, "...the federal government 'spends about $100 billion more annually for outside contracts than it does on employee salaries,'...". Hiring on the basis of connections and favors rather than abilities (read FEMA) "justifies" outsourcing. It is harder to hold private contractors accountable.
    The American consuming cultural pathology is rendering the country incapable of repairing itself. Sacrifice for the common good and civic involvement are so alien to most that only a deep national shock is likely to alter current priorities. When congress cedes control and presidential candidates are marketed like products the public withdraws. Our debt now cripples any huge investment in change.
    In terms of remedy approaches for the poor, 2 of 3 make sense. Small loans and legal property ownership would get more people out of poverty. /For all its good points, Consumed wastes a lot of pages extensively fortifying peripheral ideas in an obscure lingual presentation. Lots of readers will put this convoluted work down before absorbing the embedded gems of illumination. Too bad.
    Two final notes to also ponder: We can't be competent citizens and obsessive consumers at once and "...the earth's biological capacity stands at 42 acres per person, on average we use 57 acres per person."
August 17, 2008
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ARTICLE REVIEWS

December Surprise
James K. Galbraith
Mother Jones 7&8/2008
Foreclosure Phil
Davis Corn
Mother Jones 7&8/2008

   Two insightful articles concerning America's economic predicament and housing crisis appeared in the July/August MJ magazine along with a running time line (by Nomi Prins) recounting the steps that got us to the housing bubble and collapse. If you care about either and are under informed, pages 38-43 will be worth your while.
    Galbraith posits that interest rate cuts by the Republicans to goose the economy before an election hasn't had the desired effect, this time even when the stimulus checks were added. Too many unsold houses remain in the market and there is still too much distrust in the lending world, given all the packaged sub-prime potential defaults still to be uncovered. Even prompt paying home owners are getting financially hurt by their declining housing values. With decreased property values, state and local governments will have to raise taxes or decrease services. Interest rates can't fall without fueling inflation. Consumers will consume less, driving up unemployment.
Galbraith is concerned about the stability of the dollar. Will foreigners rush to get out before they lose even more due to its decline? The economic turmoil of such a rush could well cause a world economic nightmare. And we're in enough trouble as it is.

   During the presidential campaign, attention has been paid to the candidate's associations. But there are associations, like reverend Wright and there are advisors. And until Phil Gramm was taped complaining about "whining Americans" he was an out front, leading economic advisor for John McCain. And even after he was supposedly let go, Gramm has appeared again nearby. Gramm was a Senator who was primarily responsible for the housing market deregulation that has led to the sub-prime mess. He made his money flacking for big business which wants to rape and run our economy into the ground. Corn specifically refers to the Commodity Futures Modernization Act which opened up all kinds of trading schemes for business. The Fed was either over its head in understanding these new deals or didn't care enough to investigate and rub Gramm the wrong way. Tax payers are now doing the bailing.
    The time line runs from 1913 to the present. 72 dates describe how we got from there to here. Senators Garn and St. Germain got us the savings and loan mess with their Depository Institutions Act in 1982. Gramm had his hand in gutting the Glass-Steagall Act so that banks and security companies could merge. And so it went.
    Keeping Gramm around should, by itself, be sufficient to reject McCain. August 15, 2008
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Bad Money
Kevin Phillips
2008

   This book follows up on Phillip's previous work, American Theocracy but confines itself to updating the financialization of our economy and the recent fallout. It is a bland, abstract subject involving numbers and Phillips' syntax isn't the easiest to get through so only a few won't dodge this analysis. But since economics is the back bone of any culture, understanding it and making course corrections is vital to long run prosperity if not survival.
    The thesis is that empires have fallen as a result of, or concomitant with, the conversion to financialization. Phillips chronically compares our situation with the down fall of the Spanish, Dutch and British empires. It is a subject that is getting no attention amidst all the cited causes for America's economic bubbles (dot.com, credit and housing), the gulf between the rich and the rest and the onset of stagflation.
    Insufficient attention has been paid to the role of the Republican administration's (including Clinton's) treasury secretary and Federal Reserve in propping up a sagging economy by deceptive means over the last 30 years. This has assuaged our concern over the export of manufacturing jobs in order to capture international corporate market share and maximize short term profits (and let's not forget the associated top executive compensation increases). What we have turned to is using our wealth to invest in buyouts, using too much leverage and debt in the process of churning ownership. Taxpayer bailouts have increased risk and undermined the credibility of the economist Milton Freidman's mantra that the unregulated marketplace will solve all of our problems. New debt instruments have made understanding risk almost unpenetrable. Securitized Debt Obligations, (the packaged sub prime mortgages etc.) have loaded the financial world with booby traps that are not only causing lenders to restrict loans, compounding recession, but have damaged America's financial credibility. Throw in the falling dollar which has robbed foreign investors of billions and it isn't any wonder that oil prices here have skyrocketed and that this country is unpopular.
    Phillips discloses that a Financial Working Group was set up by Reagan which was to act as a Plunge Protection Team in order to maintain investor confidence and limit any stock market run. It is unclear how intrusive the Team has been in manipulating the futures market but with all the concern about speculation in oil futures, there is need for investigation. However, it is likely that the subject is too politically sensitive even for a Democratic congress.
    Phillips contends that real (M3) statistics would reveal a runaway inflation over the last year so the CPI understates the problem. He concludes that "American financial capitalism...[has]...financialized a [formally] more diversified economy...using massive quantities of debt..follow[ed] up a stock market bubble with an even larger mortgage credit bubble...roughly quadrupling U.S. credit market debt [over the last 20 years], a scale of excess that historically unwinds...consummating these events with a mixed performance of dishonesty, incompetence and quantitative negligence."
    If you want to really understand the underpinnings of our economic problems then check into this book and wade through it.
June 30, 2008
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The Age of American Unreason
Susan Jacoby
2008

   Susan Jacoby fires a shot at a vital, almost entirely ignored target but for the most part, she just grazes the rim. Too much space is wasted on personal and anecdotal cases when broader evidence is required. Too much space is given to our 20th century history when the same point could be delivered more concisely. Too much emphasis is given to the importance of learning about old fiction as a measure of intelligence. Today's "intellectual" must spend more time and attention on the real, non-fiction world because it is so much more complex.
    Having said that, this is a book that takes on the scope of our ignorance and the stupidity it spawns. The problem is so wide and deep that she isn't sanguine about recovery, and there is plenty to support that contention. TV driven "infotainment" and "junk thought" lead a credulous public to uncritically accept whatever is shouted the loudest and longest. Fundamentalist religion, an uneven but at best a mediocre education system and the disappearance of fair minded intellectuals with access to the general public share in the causal decline of dissemination of important knowledge. Even a growing body of scientists are being compromised by corporate sponsors while they are being discredited by ideologs.
    There are bright spots here also. Jacoby isn't afraid to link diminished understanding to the accent of fundamentalist religion. She traces how, particularly in the South and Midwest, this plays out in acceptance of creationism, which denies scientific method and in some cases even causes belief in an impending Armageddon. Poor schooling results in low math and science grades even as state standards are dumbed down. TV and computer games and entertainment sites sap precious reading time. This isn't new material but many don't recognize it. And which political leader(s) will step up and tell us the truth about this crisis when a huge segment of the population resents anyone even seemingly intelligent?
    There are a number of enlightening passages: "When the dumbing down of culture is seen as a collection of largely unrelated problems, concerned leaders...can only offer solutions that nibble at the edges." "Americans must recognize that we are living through an over arching crisis of memory and knowledge involving everything about the way we learn and think. Such a recognition would have to come from ordinary citizens as well as their elected representatives, from nonintellectuals and intellectuals alike. ...we must give up the delusion that technology can supply a fix for a condition that,...is essentially nontechnological." Finally, "The nation's memory and attention span may have already sustained so much damage that they cannot be revived by the best efforts of America's best minds." "There is little evidence to indicate that Americans have either the desire or the will to lessen their dependency on the easy satisfactions held out by the video and digital world..." The dumbing down is ingrained. It leads to bad economic, political and social decisions. We'd rather have a beer with our president than spend time with one that has a much better command of the issues. Real learning, and communicating, is work, and we aren't up to it. Our fat bodies are being matched by our fat heads.
    You can pass by this book but not the message it delivers.
June 1, 2008
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Better Off

Eric Brende
2004

   Subtitled Flipping the Switch On Technology, this 233 page book, with no index, is a narrative of the author's journey (with his wife Mary) from the Boston region to an undisclosed Amish type community somewhere in the Northeast. It is also a journey back in time, to when farmers were more self sufficient. The experiment lasted something more than a year.
    The Brendes rented a small farm and proceeded to plant with the generous help of the landlord and many in the area. The narrative details the adjustment to less technology and how the community coped with doing without electricity and mechanization. What comes through is the correlation between downscaling and increased cooperation. Every one pitched in with the plowing, the planting, the harvesting, the manufacture of goods, the barn raisings and so forth. All seemed to be out of debt. Brende also found out that despite the apparent dawn to dusk manual labor there seemed to be more free time than working urbanites have. He also got in good physical shape even while there were temporary concerns about his laziness.
    Much of the book dwelt on relationships with neighbors and more distant "Minimite" community members. Some were more religious than others, some more strict than others. This was not an Amish community. Outsiders, like Brende himself, who wanted to get away from the rat race brought their priorities and beliefs with them.
    The Brendes became more converted as they meshed with the others and gave up their last amenities, finally trading in their car for a horse and wagon. This didn't work out too well as Mary was allergic to horse dander. She had a home birthed baby after lots of preparation but such deliveries are scary as something can occasionally go wrong. But they go wrong in hospitals too.
    The Brendes eventually bought a farm on the other side of the region but didn't keep it long. Suddenly they were gone--back to the Boston area where he drove a cab then bought a rickshaw. He converted his new house to a low cost B&B for added income. More children were added to the family. They home schooled the kids but the parents spend less time together. They barter their home made soap.
    Brende's findings: it is generally better to find a simpler, less technological solution for accomplishing objectives. 3 reasons: a machine costs more, machines atrophy human capacities, a mechanical entity readily overwhelms or subverts its purpose. Exceptions occur when mechanization saves labor, transports more efficiently, especially over longer distances and telephones are necessary (but TVs, computers etc. apparently are not).
    There is not much to take away from this book and with so many more important ones out there to read, this one can be consigned to frivolous escape. Brende found another way to make some income.
May 5, 2008
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Nemesis

Chalmers Johnson
2007

   Nemesis is the 3rd book in the Chalmers trilogy dealing with the rise of the U.S. to empire status. Blowback and The Sorrows of Empire preceded it. "Nemesis" is the goddess of retribution and we are in the process of being paid back for our ill considered expansion, military and otherwise.
    Chalmers describes our addiction to bases around the world (over 700 Main Operating Bases, Forward Operating Sites and Cooperative Security Locations) and the "Morale, Welfare & Recreation" (MWR) facilities which often accompany them. He documents some the abuses perpetrated by our overseas personnel on foreign populations and our high handed attitude which is part of the reason that they hate us. Okinawa is a prime example. Given that we have no foreign bases here, Americans have little appreciation for what others have to put up with. And since we can get other nations to pay at least part of our over seas bases costs, there is little incentive to bring our boys home to annoy our own populations at our expense.
    A chapter is devoted to describing and comparing our status with that of the Roman and British empires. A distinction is that Rome became a dictatorship and still couldn't hang on to its holdings while the British gave up their empire to save their democracy. We still don't know which way America will go but with more power being accumulated by the President in the face of a fully corrupted and compromised, moribund congress, the outlook isn't good.
    CIA black ops, renditions, torture, indefinite detention, invasions such as Iraq, space control (missile defense systems don't work and just waste $billions), executive secrecy, domestic spying and "privatization" are all heading us down the dictatorship path. Spending to create billionaires and indebtedness to foreign lenders will inexorably determine decline if not implosion. The multiplicity of problems and demands for redress will overwhelm our "representative" government. In a triage situation the only question is who will be hurt most, and how will they react.
    Not much of this should come as a surprise to those paying attention to what is going on. It is worse than most Americans realize, or want to understand. However, our head in the sand response will only insure the unwelcomed outcome.
October 15, 2007
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Free Lunch
David Cay Johnston
2007

<>   If you had any doubt about how thoroughly corrupt the federal government is and how the private sector scam artists and sharks have rotted out the economic health of America, then this is the book you have to read. Using example after example, Johnston shows how the vaunted super rich have used legal swindles, not hard, smart, nation building, honest work to reach the billionaire class or at least a lot closer to it than over 90% will ever get, even in their dreams.
    Many Americans have some vague notion that something is wrong about the disparity in income and wealth between the top 1% and the bottom 50% but the major media has muffled any real outrage by avoiding the subject except for a few short stories. The pervasiveness of the raids on the national treasury and the gall, as well as who is involved, are what make this book so noteworthy.
    In broad strokes: The American economic pie has about doubled since 1980. As the Reagan administration was beginning, 2/3rds of that income was going to the bottom 90%. Now it is down to about half. Due to complications and variables in calculation, close but not precise figures can break down that distribution still further. During the last 26 years since 1980 the top 10% (the top 30m Americans) went up from 1/3 to 1/2. But even the top 10% fared very unevenly. The top 1% went up from 10% (3m Americans) to over 20% of the income pie. The top 1/10 of 1% (300,000 Americans) tripled their incomes to at least more than $1.5m in 2005. The top 30,000 made at least $9m in 2005, 4x the % in 1980. So while the vast majority (say 90+%) had stagnant or declining wages, the rich had a slice commensurate with the Hoover days of 1929.
    Some of the twists and turns to enrich the fortunate are described in detail and some readers might want to skim over a few of the finer points. But the general manipulations and flagrant vote buying and the induced cooperation of governmental watch dogs and the disappearance of penalties (for all practical purposes) are a wake up call, one that the 3 presidential candidates seem to have missed. Corruption and official incompetence are the first priority that a new president must address if anything substantial is to be done to turn this country around.
    Johnston quotes Adam Smith several times about his concerns regarding market forces and playing favorites. The author touches on the consequences for a bankrupted nation, such as child poverty rates, a dysfunctional health care system which should be a service, not a business, and the sale of public assets.
    Scams like the costs of home alarm insurance which is born by taxpayers (paying for police response), the confiscation of a public park to build another Yankee stadium (and other sports subsidies like restriction of new teams), the taking of private property for private gain (which has been endorsed by the Supreme Court), unnecessary home title insurance fees, delaying tax payments, back dated stock options (illegal but no one goes to jail), under funded pensions which inflate profits, stock prices and executive compensation, skimping on maintenance which costs lives but not exec livelihoods (think John Snow and CSX), and on and on and on.
    Have an anti-depressant handy when you read this but fore warned is fore armed.
April 2, 2008
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Deer Hunting With Jesus
Joe Bageant
2007

   Unlike other authors who describe the American condition, Bageant comes from a working class background in a Western Virginia small town and he isn't afraid to characterize the locals, and at times himself, in a very unflattering way. And using published figures (e.g. almost 1/2 of the US population is functionally illiterate, our median credit rating is supposedly 678, 41m US voters but 70m gun owners, 80% of our hospitals are non-profit but they are a leading cause of bankruptcies etc.) he extends his descriptions to red county, rural America in general. This is a portrait of our under class done in a way that conventional media never mentions.
    Bageant defines working class as those without the power to control their own work; 60% of us. This contrasts with the illusion of a material based, middle class status perpetuated by the media. But Bageant's description of our majority is more like that of an under class composed of ignorant, passive, hate filled, escapist, self defeating, Christianity bewitched, work driven debtors who will keep voting against their own best interests--and ours. He defines the real middle class as the "catering" class of professionals and semi pros which serve the demands of the rich at the expense of the majority and comprise about 20% of us. This definitional perspective should be given our full attention, as it aligns with the realities which our promoted "hologram" does not.
    Chapters include outsourcing, mortgages, guns, theocracy, the Scots-Irish Borderers and Lynddie England of Abu Graib infamy, our health care system and the control of our lives by TV and oil. Through it all the downgrading of a meaningful educational system is between the lines if not in type. One result is that "economic conscription" fills our military ranks. The infiltration of home schooled Christians into our political system is another cause for alarm. It is also furthering the militancy of our foreign policy.
    Bageant is brutal in a way that should shake the reader up. The class he discusses won't read this book because they don't read any books, if they can read anything substantial at all. The real middle (catering) class won't want to be called out for their complicity in our "show me the money" obsessed culture. Those that have managed to climb up believe in the free market ideal of every man for himself. They wind up callous if not down right cruel. All live in a falsely unthreatening, conservative "zone of ignorance". Liberals are generally too passive and diverse to form a counter movement against the incessant conservative media pitch which has warped so many. So we are all trading real freedom and privacy for comforts and perceived security. We trade captivation by corporate America for a hollow, temporary, material boost. And we are handing off a country more bereft than the one we got.
    THIS IS A MUST READ BOOK for anyone trying to understand what went wrong with this country. And more and more are beginning to realize that our system isn't working any more, if it ever did. Deer Hunting With Jesus is the new De Tocqueville's Democracy In America.
March 8, 2008
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god Is Not Great
Christopher Hitchens
2007

   The subtitle, "How Religion Poisons Everything", and purposely using the lower case g, gives the reader a strong hint at what's coming. And Hitchens runs the gamut of castigations. No major religion is spared although special vituperation is reserved for the Christian and Moslem faiths. Presumably, Jews haven't had a large enough following to be as abusive.
    The familiar critiques are laid out in a rather jumbled fashion. The history of fundamentalist military atrocities and the depths of depravity carried out even to this day in the middle east, and elsewhere, are described. The social repression, the preying on innocents, the promotion of needless fear, the corruption, are all highlighted. It is clear that Hitchens has gotten around and seen a lot of the subject matter first hand and he has mined the Internet for further support.
    The Bible and Koran are shown to be heavily revised works which makes true, literal believers look ridiculous even without dismissing their common sense in the face of self contradictions and empirical impossibilities. Stories about Abraham and Moses are taken apart. Hitchens asserts that there is no provable record of Jesus (nor any direct quotations by him in the Bible). The hadith, which many Muslims take stock in, are merely anecdotes passed along without factual confirmation. The Mormon foundation is based on a self promoter who had convenient "revelations" to suit his immediate needs. [Mitt Romney might be questioned more closely on this. If he is that gullible, how can he be trusted to govern the U.S.?] Hinduism and Buddhism are touched on and cited for their ridiculous beliefs. It is all embarrassing to human kind.
    Hitchens takes on creationists and so-called intelligent design. All the evidence favors adaptation and survival of the fittest. There is no credible evidence for the alternative. Through the ages, religion has offered explanations for the unknown. As science has found the answers, belief has had to roll back further and further and this continuing process makes its importance increasingly untenable. Consequently, those who can't stand the thought of human mortality, with no after life, are even more desperate--and repressive.
    From Catholic promotion of Nazi fascism and other violent regimes to the more recent capitulation to Muslim hoards, religion has never come in for its just condemnation. Here it does. However, there are 2 faults to find. First, a linear case, building to a climax is not made. It is as if Hitchens just put his notes together without any connective tissue. But, more importantly, the prose is more obscure than need be. If the target audience are the less well educated, religious fence sitters, this writing will put them off and the book down, unfinished, its message unabsorbed. Hitchens does write like this and it is likely it has hurt his popularity. Some will dismiss this book as a tirade. It should be viewed as--about time.
August 27, 2007
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The Big Con
Jonathan Chait
2007

   Bill Moyers, on his PBS' Journal show, invited readers to suggest the book that the new president should take with him to the Oval Office. This is the book. It is the book that every voter should read before casting his ballot this year. It is the book that everyone who wants to know what has been going on and cares about this country's future should be familiar with. In this book Chait lays out how the radical right has taken over the Republican party and made America's former political center into the definition of leftist (and therefor a demon) politics. Although there may be policy oscillations, the economic Conservatives keep moving the overall economy their way. This is why the middle class finally feels so strained and why the right fights ever harder to keep the majority from deciding its future.
    William Buckley and Barry Goldwater implanted the seeds which Ronald Reagan eventually promoted with the advent of supply side economics which were preposterous for a healthy society. But with stagflation in the Nixon years, win-win gimmickry, rich support and general ignorance this idea crept into mainstream thinking because the traditional media didn't do its job of denouncing it. Instead it let critics from the left battle the advances of the right as if both had an equally good case to make. In the process, Reagan's tax hikes, after his cuts for the rich weren't matched by spending cuts, were walled of from public awareness and all manner of attributes were given to him in order to sell the right's debilitating hokum. An obvious example of deviousness was the GW Bush tax cuts for the rich to rebate government surpluses in 2000, then to stimulate the economy even though Clinton's denounced tax hikes resulted in debt reducing revenues as the economy prospered. As all this transpired, K street took over Tom Delay's Republican congress of '92 and controlled economic legislation. Until their overthrow in 2006, they ruled with an iron hand, freezing out Democratic input and bipartisan accommodation. New lows were reached in congressional conduct in order to achieve their minority enriching goals.
    Given that the right wing controlled Republican agenda is an issue loser, the right has campaigned on character and has been successful in defining Gore as an exaggerating and dull "intellectual" and Kerry as a flip-flopping patrician. Both men were unable to overcome the swift boat type smear tactics and neither was John McCain in the 2000 South Carolina primary. Gore and Kerry retreated from the field and McCain joined up with his back stabbers in a classic case of "if you can't beat them, join them".
    The media, particularly the 3 major networks, defending their image of objectivity, have passively let all this happen with nary a protest, which would be labeled partisan by the Fox types who admit up front that they back the right.
    This short (265 page) reprise of why we have gone off the rails of economic sanity is must reading for anyone who really cares about this country and their children's future. Unfortunately, that isn't many of us. 5 stars and a bravo.
February 15, 2008
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Against All Hope
Aramando Valladares
2001

   It is no wonder that Cuban exiles in Miami and elsewhere have never dissipated their hatred for Fidel Castro and his regime in Cuba. Not if even half of this book is true. It is a wonder that he hasn't been universally vilified for the mass political murders and torture that has reigned in Cuba during the latter half of the 20th century. It is a disgrace that he hasn't been tried in absentia. The fact that the UN and the Catholic church not only looked the other way but acted as enablers brings more shame and disgrace on those organizations and their leaders.
    Valladares was arrested in 1959 for denouncing Communism, even as Castro himself was doing the same on Meet the Press; before he admitted to being a Marxist after all. Many of those who supported the overthrow of the Batista dictatorship were arrested as counterrevolutionaries by Castro's political police if they criticized the direction the new regime was taking. Guilty until proven innocent, many were shot at La Cabana prison and others were given long prison sentences in Castro's gulag on the Isle of Pines. And many of the living under those conditions would envy the dead.
    The horrors are portrayed in meticulous detail. The constant beatings, the confiscation of clothing, the semi-starvation, the humiliations, the infested and blacked out punishment cells, the horrid heat and terrible cold, the lack of medical attention, the lack of basic sanitation, the forced hard labor and the constant lies used to coerce men into joining Political Rehabilitation Program are spread out before the reader as the decades went by.
    Still in all, a core of resisters endured. Valladares (and others) went on hunger strikes and were deprived of sustenance until they were almost dead. However, there grew to be just enough outside support in other countries to keep Castro from commanding the murder of the author and a few others because Valladares was able to keep smuggling out notes and poems to his mother, sister and eventual wife. After surviving scurvy, pellagra and edema due to starvation and severe confinement, Valladares was physically rehabilitated for public relations purposes before being deported. Eventually, he moved to Florida after some world renown.
    What some people are capable of will shock the naive. The brutality was monstrous and makes our GITMO facility seem like a vacation resort. Yet the double standard is still in place because we fail to make our case adequately. Also surprising is the resolve of the tortured. A few never broke and some died instead. Valladares used his faith for support, a trust in God which a godless regime couldn't penetrate.
    The only question is how the author could recall so much over so long a time. Smuggled notes, forming a diary, probably helped. And some people have "total" recall. In any case there is enough to indict Castro for the monster he has been and abstain from any cooperation with his tyranny and any successors. The US is right to stand firm and should promulgate, more forcefully, these reasons why.
August 3, 2007
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Welcome to the Homeland
Brian Mann
2006

   If you read What's the Matter With Kansas (reviewed in 2005) you'll be familiar with the contents and assertions contained within this book. For those who haven't, Mann describes the conversion of American rural voters from the Democrats (albeit conservative Democrats) to a solidly conservative, religiously dominated Republican party after the FDR revolution in mid 20th century. While Thomas Frank describes rural rubes as self defeating, no nothings, wallowing in victimhood, Mann make the case that these cultural reactionaries, comprising only 20% of the population, are actually the tail wagging the political dog. Since the Reagan presidency they have accumulated power by solidifying behind Republican candidates while the "metros", those within the urban boundaries and surrounding enclaves, have been more likely to split their allegiances. Coupled with our built in structural favoritism such as the 2 Senators per state regardless of population, the gerrymandering of the House districts and hand picking of Conservatives in our courts, let alone electing 4 Republican presidents (remember Clinton governed as a moderate Republican) in the last quarter century, rurals have not only held their own on cultural issues, they have garnered more than their share of federal largess (e.g. $440 per person in Montana, $350 per person in the Dakotas as compared to $40 per person in Texas and Florida). And it doesn't take a political scholar to understand that the rural dominated Senate can put a stop to any one-man-one-vote reform.
    Mann takes his Conservative brother on a tour to rural America and they debate philosophies and priorities through much of the book. There are a few interviews of other social repressives and lots of author speculation about how they came to their positions but no confrontations with important, right wing leaders. This makes for a less scholarly work than say Kevin Phillips' American Theocracy (reviewed in 2007) but it hones in on the real and growing divide between the rural and metro mentalities rather than the spilt between conservative and moderate religious factions. Each side thinks it is right and looks down on the other.
    There does seem to be a contradiction when Mann asserts that rural power is waning due to continued migration into metro areas (ever narrowing the margins in gerrymandered House) and the alienation of the increasing Hispanic population by supporting tighter border controls and sanctions against illegal immigrants, and this book came out before Dems swept back into office in November. But even with a narrow margin in the Senate, nothing will be accomplished when Republican Senators band together and filibuster.
    If you are a liberal, or just someone who wants to change America's direction, this book should make you mad. The priorities of ruling class corruption, our debt, the obscene distribution of income and wealth, global warming, universal health care and better education should come before banning gay marriage, controlling abortion, minimizing gun control, prayer in schools and banning flag burning.
    Carl Rove dictated playing to the base and divisiveness and it has worked while left side apathy reigned. Now the results are coming in and the big majorities don't like what they see. The divide is still there but will the rural mentality be put back in the closet? We'll have a good idea in the next 2 years.
May 1, 2007
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All the Money in the World
Peter W. Bernstein & Annalyn Swan
2007

   This a book that the Robin Leachs (Life Styles of the Rich and Famous TV series) of the world would be interested in but the characters are far removed from the masses. Bernstein and Swan concentrate on those who have made the Forbes 400 list over the years, since its inception in 1982. It sketches out how the most notable made, or inherited, their wealth, what they buy for themselves, who squandered what, what they give away to charities and causes, what they leave to their families and the squabbles over the inheritances and how they use their wealth for political power. The categories touch on business and innovation, money management, entertainment and sports figures.
    Much of the success in humongous wealth accumulation has resulted not primarily from a good education but from drive and risk when presented with an opportunity others overlook. Those that crash and burn become obscure. The fortunate ones keep there eyes on the ball; pick a company, buy it, rebuild it and resell it or just take in the ongoing profits. Hedge fund and investment managers make some of the greatest incomes, driving, in part, the amount one has to have from some hundreds of millions to billions of dollars in order to crack the 400 club.
    Aside from Warren Buffet, most notable billionaires live on the American coasts and although billionaires are popping up around the world this country holds about 40% of them today.
    And although some of those with mega-fortunes give a lot away, few give a big percentage of their total wealth to others even though they have much more than enough. Donations go largely to alma maters, museums and the arts and to medical facilities. Others invest in chancy start-ups and win or lose. But in a capitalist system which depends on such giving to cover deficits, filling most urgent and beneficial needs becomes a hit and miss proposition.
    At the end, the authors confide that money only buys happiness when one moves up from poverty to the middle class. Sure it is better to have more but the rate of appreciation diminishes as more is accumulated--in general. Finally, a comprehensive list of all the Forbes 400 is included.
    "How Slim Got Huge" by Brian Winter (Foreign Policy magazine 11/12/07) is an instructive corollary to the book. It tells how Carlos Slim Helu has become richer than Bill Gates, profiting largely from his monopoly of Mexico's telephone industry. Other multi-billionaires are profiting from privatization of national industries, such as in Russia after the Soviet collapse. As our form of capitalism develops in countries with weak governments, these oligarchs gain even greater control and unaccountability than they have here. The author indicates that monopolization correlates with diminished innovation, economic lubrication and efficacious growth, sapping GDP points off various economies. In Slim's case it is impeding job growth and forcing more emigration to...guess where.
    Will these "robber barons" receive more world scrutiny and pressure to spread their wealth? The quality of life for billions of citizens depends on it. Between the book and the article, the latter 9 page piece might be your best informative bet.
December 24, 2007
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