Showing posts with label Public. Show all posts
Showing posts with label Public. Show all posts

Monday, March 31, 2014

4 Arguments That Scream "Save Public Education!"



A vibrant society makes great individuals, not the other way around.








 


The education privatizers are trying to convince us that parental "choice" will solve all the problems in our schools. But the choice they have in mind is to dismantle a once-proud system of education that was nurtured and funded by a society of Americans willing to work together.


The wealthiest among us seem to have forgotten how important it is to cooperate, as most Americans did in the post-WW2 years, in order to forge new paths of productivity and inventiveness. A vibrant society makes great individuals, not the other way around. Education must be at the forefront of such cooperative thinking. Here are four good arguments for it.


1. Equal Opportunity is an American Mandate


In the 1954 Supreme Court decision Brown vs. the Board of Education, Chief Justice Earl Warren said that education “is a right which must be made available to all on equal terms.” Equally eminent future Justice Thurgood Marshall insisted on “the right of every American to an equal start in life.”


But now, as The Economist points out, “Whereas most OECD countries spend more on the education of poor children than rich ones, in America the opposite is true.” Poverty, of course, is of all colors, but it"s disproportionately black. The Civil Rights Project at UCLA shows that “segregated schools are systematically linked to unequal educational opportunities,” while theEconomic Policy Institute tells us that “African American students are more isolated than they were 40 years ago.” New York City is the best example of that.


Charters and vouchers are the "choice" of the free market. But the National Education Policy Center notes that “Charter schools…can shape their student enrollment in surprising ways,” through practices that often exclude “students with special needs, those with low test scores, English learners, or students in poverty.” Stanford"s updated CREDO study found that fewer special education students and fewer English language learners are served in charters than in traditional public schools.


2. Charter Advocate Michelle Rhee Is Wrong


She said, “I think that we are doing the wrong thing in our society when we are congratulating mediocrity and participation.” But among American children, whether "mediocre" or "exceptional," the ability to participate in a cooperative manner should be congratulated. Children have to learn to work with others before trying to outdo each other.


For parents, too, the public school system is a cooperative system of democracy in which everyone can participate. Business-minded people have tried to twist cooperation into anti-Americanism. A CNN report referred to our “Soviet-style” educational system. Heartland Institute President Joseph Bast and Ohio Republican State Representative Andrew Brenner both dismissed our system of public education as “socialist.” Netflix founder Reed Hastings made the remarkable assertion that schools “are prisoners” of democratic governance, and that there is “chaos” in freely elected school boards.


The National School Boards Association reminds us that “The school board represents the public’s voice in public education, providing citizen governance for what the public schools need and what the community wants.” Charter schools take away this valuable right. As Diane Ravitch explains, “Because they are loosely regulated, charter schools are often neither accountable nor transparent…Charter schools are "public" when it is time to claim public funding, but they have claimed…to be private corporations when their employees seek the protection of state labor laws.” Or when parents need to know what their school administrators are doing.


3. The Classroom is Not a Warehouse


Education is the next great opportunity for the big names in business, such as Rupert Murdoch, who called K-12 “a $ 500 billion sector in the U.S. alone that is waiting desperately to be transformed.” A McKinsey report estimates that education can be a $ 1.1 trillion business in the United States. Forbes notes: “The charter school movement [is] quickly becoming a backdoor for corporate profit.”


Charter administrators make a lot more money than their public school counterparts, as in New York City, where the top 16 charter school executives all earn more than public school Chancellor Dennis Walcott. The salaries of eight executives of the K12 chain, which gets over 86 percent of its profits from the taxpayers, went from $ 10 million to over $ 21 million in one year.


Their buzzwords are “education reform” and “standardized testing.” The Silicon Valley Business Journal reports that “Next year, K-12 schools across the United States will begin implementing Common Core State Standards, an education initiative that will drive schools to adopt technology in the classroom as never before…Apple, Google, Cisco and a swarm of startups are elbowing in to secure market share.” School districts are being hit with unexpected new costs, partly for curriculum changes, but also for technology upgrades, testing, and assessment. Los Angeles, for example, recently agreed to spend $ 1 billion for iPads for all the students, even as infrastructure deteriorates and art teachers are laid off.


To ensure that the public money keeps rolling in, companies are establishing PACs and lobbyist groups to influence school board elections. Teach for America worked behind the scenes with Chicago officials to plan the opening of charter schools to replace shuttered public schools. In the event of any funding improprieties, charters have their backs covered, insisting that they"re exempt from criminal laws because they are private. They"re public for funding purposes, private for nontransparency purposes.


4. Starve the Beast, Starve Society


The U.S. Department of Education reported that $ 197 billion is needed to repair the nation"s K-12 public school buildings. But the public system is going broke, starved by a lack of tax dollars. State budgets are providing less per-pupil funding for kindergarten through 12th grade than they did six years ago – in many cases far less.


It was estimated that total K-12 education cuts for fiscal 2012 were about $ 12.7 billion. In that same year, 155 of the largest U.S. corporations avoided about $ 14 billion in state taxes. Much of the remaining 50-state education fund is being transferred to charter schools.


Fear, Uncertainty, and Doubt (FUD). As Diane Ravitch points out, the education privatizers are using FUD to undermine public confidence in public education. The myth of the failing public school is the newest version of weapons of mass destruction andrunaway entitlement spending and domino theory. It"s a masterful form of propaganda, inciting self-destructive sentiments among the public, and benefiting the business people who have a growing financial interest in our children.


 

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4 Arguments That Scream "Save Public Education!"

Friday, March 28, 2014

Massachusetts declares public health emergency over heroin overdoses and opioids addiction

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Massachusetts declares public health emergency over heroin overdoses and opioids addiction

Thursday, March 27, 2014

BREAKING: CA State Senator Indicted on Arms Trafficking, Public Corruption Charges

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BREAKING: CA State Senator Indicted on Arms Trafficking, Public Corruption Charges

Friday, March 21, 2014

Whistleblower Prompts CSEC Investigation: Uncovers Misuse of Public Assets, Serious Ethics Breaches

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Whistleblower Prompts CSEC Investigation: Uncovers Misuse of Public Assets, Serious Ethics Breaches

Thursday, March 20, 2014

Measles Are Back! Vaccine Truthers Officially a Public Health Menace

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Measles Are Back! Vaccine Truthers Officially a Public Health Menace

Wednesday, March 19, 2014

Property owner arrested, charged with felony at public meeting for talking too long after city stole his property

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Property owner arrested, charged with felony at public meeting for talking too long after city stole his property

Wednesday, March 12, 2014

Progressive racism and how it shapes public policy

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Progressive racism and how it shapes public policy

Saturday, March 8, 2014

You"ve Been Pooping Wrong in the Public Restrooms

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You"ve Been Pooping Wrong in the Public Restrooms

Monday, February 24, 2014

Let’s see how Alec Baldwin sort of quitting public life will work out



Evan Agostini/Invision/AP

Evan Agostini/Invision/AP



In yet another essay ripping many individuals and institutions in existence, actor and MSNBC alum Alec Baldwin announced that he is sort of quitting ‘public life.’


After blasting Joe Scarborough (“neither eloquent nor funny”), Rachel Maddow (“a phony”), MSNBC and FOX News (equally “full of s–t”), segments of conservative media (“Hate Incorporated”), the media at-large (“superfluous at best and toxic at its worst”), New York City (“I just can’t live in New York anymore”), and America in general (“more f—ed up now than it’s ever been”), Baldwin bid adieu to his public persona in a piece for New York Magazine. Partially.


“It’s good-bye to public life in the way that you try to communicate with an audience playfully like we’re friends, beyond the work you are actually paid for. Letterman. ‘Saturday Night Live.’ That kind of thing,” Baldwin wrote. “I want to go make a movie and be very present for that and give it everything I have, and after we’re done, then the rest of the time is mine.”


Despite professing a continued desire to keep acting, Baldwin actually said in an interview for Vanity Fair last July that he’d love to quit if the circumstances were right.


“I’d love to if I could, yeah. That would be the greatest thing in the world,” he told the magazine.


In that same interview, Baldwin said he would “never” use social media again, saying it’s “all a waste of time.” He also announced he’d stop tweeting in July 2012, and his account was deactivated in December 2011 after he melted down on an American Airlines flight. Yet to this day, he tweets under @ABFalecbaldwin for the Alec Baldwin Foundation, where he mixes personal anecdotes, infrequent political quips, and plenty of pictures.


So maybe he’ll find his way to Letterman’s desk-side someday yet.




Red Alert Politics



Let’s see how Alec Baldwin sort of quitting public life will work out

Wednesday, February 19, 2014

Turkish Internet controls ignite public anger


reuters.com
February 19, 2014


From a campaign to “unfollow” President Abdullah Gul on Twitter to an opposition appeal to Turkey’s highest court, Turks vented their anger on Wednesday at a new law tightening government control of the Internet.


Gul approved the legislation, which will let the authorities block web pages within hours and collect data such as users’ browsing histories, late on Tuesday, bolstering Prime Minister Tayyip Erdogan but raising renewed concerns about free speech.


Erdogan’s critics say the law, along with a bill increasing government power over the judiciary, as an authoritarian response to a corruption inquiry shaking his government and as an effort to stop leaks about the case circulating online.

Read more


This article was posted: Wednesday, February 19, 2014 at 12:55 pm









Infowars



Turkish Internet controls ignite public anger

Monday, February 17, 2014

Why There"s an Even Larger Racial Disparity in Private Prisons Than in Public Ones

Why There"s an Even Larger Racial Disparity in Private Prisons Than in Public Ones
http://isbigbrotherwatchingyou.com/files/people-of-color-private-prisons.jpg


It’s well known that people of color are vastly overrepresented in US prisons. African Americans and Latinos constitute 30 percent of the US population and 60 percent of its prisoners. But a new study by University of California-Berkeley researcher Christopher Petrella addresses a fact of equal concern. Once sentenced, people of color are more likely than their white counterparts to serve time in private prisons, which have higher levels of violence and recidivism (PDF) and provide less sufficient health care and educational programming than equivalent public facilities.


The study compares the percentage of inmates identifying as black or Hispanic in public prisons and private prisons in nine states. It finds that there are higher rates of people of color in private facilities than public facilities in all nine states studied, ranging from 3 percent in Arizona and Georgia to 13 percent in California and Oklahoma. According to Petrella, this disparity casts doubt on cost-efficiency claims made by the private prison industry and demonstrates how ostensibly “colorblind” policies can have a very real effect on people of color.


Chart- people of color

The study points out an important link between inmate age and race. Not only do private prisons house high rates of people of color, they also house low rates of individuals over the age of 50—a subset that is more likely to be white than the general prison population. According to the study, “the states in which the private versus public racial disparities are the most pronounced also happen to be the states in which the private versus public age disparities are most salient.” (California, Mississippi, and Tennessee did not report data on inmate age.)


Chart- inmates over 50

Private prisons have consistently lower rates of older inmates because they often contractually exempt themselves from housing medically expensive—which often means older—individuals (see excerpts from such exemptions in California, Oklahoma, and Vermont), which helps them keep costs low and profits high. This is just another example of the growing private prison industry’s prioritization of profit over rehabilitation, which activists say leads to inferior prison conditions and quotas requiring high levels of incarceration even as crime levels drop. The number of state and federal prisoners housed in private prisons grew by 37 percent from 2002 to 2009, reaching 8 percent of all inmates in 2010.


The high rate of incarceration among young people of color is partly due to the war on drugs, which introduced strict sentencing policies and mandatory minimums that have disproportionately affected non-white communities for the past 40 years. As a result, Bureau of Justice Statistics data shows that in 2009, only 33.2 percent of prisoners under 50 reported as white, as opposed to 44.2 percent of prisoners aged 50 and older.


So when private prisons avoid housing older inmates, they indirectly avoid housing white inmates as well. This may explain how private facilities end up with “a prisoner profile that is far younger and far ‘darker’… than in select counterpart public facilities.”


Private prisons claim to have more efficient practices, and thus lower operating costs, than public facilities. But the data suggest that private prisons don’t save money through efficiency, but by cherry-picking healthy inmates. According to a 2012 ACLU report, it costs $ 34,135 to house an “average” inmate and $ 68,270 to house an individual 50 or older. In Oklahoma, for example, the percentage of individuals over 50 in minimum and medium security public prisons is 3.3 times that of equivalent private facilities.


“Given the data, it’s difficult for private prisons to make the claim that they can incarcerate individuals more efficiently than their public counterparts,” Petrella tells Mother Jones. “We need to be comparing apples to apples. If we’re looking at different prisoner profiles, there is no basis to make the claim that private prisons are more efficient than publics.”


He compared private prisons to charter schools that accept only well-performing students and boast of their success relative to public schools.


David Shapiro, former staff attorney at the ACLU National Prison Project, agrees. “The study is an example of the many ways in which for-profit prisons create an illusion of fiscal responsibility even though the actual evidence of cost savings, when apples are compared to apples, is doubtful at best,” he says. “Privatization gimmicks are a distraction from the serious business of addressing our addiction to mass incarceration.”


But in addition to casting doubt on the efficacy of private prison companies, Petrella says his results “shed light on the ways in which ostensibly colorblind policies and attitudes can actually have very racially explicit outcomes. Racial discrimination cannot exist legally, yet still manifests itself.”


Alex Friedmann, managing editor of Prison Legal News, calls the study a “compelling case” for a link between age disparities and race disparities in public and private prison facilities. “The modern private prison industry has its origins in the convict lease system that developed during the Reconstruction Era following the Civil War, as a means of incarcerating freed slaves and leasing them to private companies,” he says. “Sadly, Mr. Petrella’s research indicates that the exploitation of minority prisoners continues, with convict chain gangs being replaced by privately-operated prisons and jails.”
 


*The study draws on data from nine states—Arizona, California, Colorado, Georgia, Mississippi, Ohio, Oklahoma, Tennessee, and Texas—selected because they house at least 3,000 individuals in private minimum and medium security facilities.



Political Mojo | Mother Jones




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Thursday, February 6, 2014

Economic Update: Public vs. Private Enterprise

Economic Update: Public vs. Private Enterprise
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Updates on economic democracy from Jackson, Mississippi to Marseilles, France; credit card scandals; phony labels for chicken; and overcharging inmates for calls. Major discussions of re-municipalization of water and electric utilities; post office banking; and new book on capitalism’s inequalities. Response to audience questions on TPP, corporate tax breaks and minimum wage.


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Thursday, January 16, 2014

RSPCA warns public not to approach Tunbridge Wells Ostrich

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RSPCA warns public not to approach Tunbridge Wells Ostrich

Wednesday, January 15, 2014

Police Tell Reporters That They Cannot Film Wastewater Plant From Public Street


Infowars.com
January 15, 2014


In a gross attack on the First Amendment, a police officer told Infowars reporters and crew that they could not film a wastewater plant from across a public street.


The officer said that he had the “authority” to stop them from filming even though he admitted that it was not illegal to film the facility.


“There’s no law, but like I said, based on the fact that it is a critical site, your activity is being deemed suspicious so we have the authority,” he said.


This is a perfect example of how police officers routinely use the “color of law” to deprive journalists of their First Amendment right to publicly film and cover news stories.


They use their “authority” to intimate reporters even though that authority runs contrary to basic human rights and the law.


The right to film in public has been affirmed time and time again by the U.S. Supreme Court and several federal Appeals Courts, which have all ruled that everyone – not just journalists – has an individual right to film (video, audio, photography, etc.) in public because there is “no expectation of privacy” in a public place.


In 2011, the U.S. 1st Circuit Court of Appeals ruled unambiguously that the First Amendment recognizes this right.


“It is firmly established that the First Amendment’s aegis extends further than the text’s proscription on laws ‘abridging the freedom of speech, or of the press,’ and encompasses a range of conduct related to the gathering and dissemination of information,” Circuit Judge Kermit Lipez wrote in the court’s opinion.


Additionally, in 2012 the U.S. Supreme Court agreed with a lower court ruling that a Illinois law which prevented citizens from filming police was unconstitutional.


This article was posted: Wednesday, January 15, 2014 at 1:24 pm










Infowars



Police Tell Reporters That They Cannot Film Wastewater Plant From Public Street

Saturday, January 11, 2014

Gov’t Secret Chemical Warfare Against The Public Exposed

Gov’t Secret Chemical Warfare Against The Public Exposed
http://static.infowars.com/bindnfocom/2014/01/011114gaybomb.jpg


Pentagon “gay bomb” was only part of the plan to destroy the sexes


Infowars.com
January 11, 2014


Alex Jones and Dr. Edward Group expose the chemical warfare that’s been unleashed on the public: chemicals are added to the food supply that disrupt hormones, reduce fertility and wreck havoc on gender identity, effectively making men act like women and women act like men.


011114gaybomb


For example, a Kaiser Permanente study published online in the journal Birth Defects Research stated that in utero exposure to Bisphenol-A may adversely affect male genital development.


“This finding indicates that BPA may interfere with testosterone function during fetal development because the shortened AGD indicates under-developed male genitalia, likely due to an abnormal testosterone function,” the report said.


As you can see, the starling facts of this Brave New World program are hiding in plain view.


This article was posted: Saturday, January 11, 2014 at 1:00 pm










Infowars




Read more about Gov’t Secret Chemical Warfare Against The Public Exposed and other interesting subjects concerning NSA at TheDailyNewsReport.com

Thursday, January 9, 2014

Fidel Castro reappears in public





Havana, Jan 9 (EFE).- Former Cuban leader Fidel Castro reappeared in public for the inauguration of an art studio in Havana that coincided with the 55th anniversary of his triumphal entry into the capital, official media said Thursday.


The 87-year-old Fidel, whose last public appearance had been in April 2013, on Wednesday night attended the opening of the “Kcho estudio Romerillo, Laboratorio para el arte.”


“On the 55th anniversary of the entry into Havana of Fidel at the head of the Rebel Army, the historic leader of the Revolution came to the workshop … and greeted artists and the public who applauded emotionally,” Communist Party daily Granma said.


The only photograph released of the event appeared Thursday on the official Cubadebate Web site, and in it Castro is seen from the back seated in a chair and gesturing with his left arm toward one of the works of art in the gallery, but later a state-run television news program transmitted a report with video images of the former president.


In the video, Castro can be seen seated and dressed warmly, while chatting in a friendly manner with some of the gallery’s invited guests and with the artist Kcho, although no remarks of the Cuban leader were included.


Castro gave up power in July 2006 after falling gravely ill, delegating leadership of the country to his younger brother Raul, who in 2008 was formally confirmed in the post of president of Cuba.


Since then, the leader of the Cuban Revolution has maintained a low public profile although he has made sporadic appearances and published, albeit less and less requently, columns in the press.


Cuban authorities postponed the events to commemorate Wednesday’s anniversary due to bad weather.


On New Year’s Day, President Raul Castro was in the eastern city of Santaiago de Cuba to preside at the main political event commemorating the triumph of the Revolution.


http://www.globalpost.com/dispatch/news/regions/americas/cuba/140109/fidel-castro-reappears-public




GlobalPost – Regions



Fidel Castro reappears in public

Tuesday, January 7, 2014

Report: NSA and tech companies both frustrated by public misunderstanding

By End the Lie


(Image credit: Ryan Somma/Flickr)

(Image credit: Ryan Somma/Flickr)



A new in-depth report reveals that National Security Agency (NSA) officials are incredibly frustrated by the public’s perception of their activities, a sentiment shared by individuals in the tech industry as well.


Read our latest articles: “Defense Department drone roadmap: ‘nano’ drones and more autonomous systems” and “FBI changes ‘primary function’ from law enforcement to national security


When Americans think that NSA agents are trying to steal their privacy, it “makes them crazy,” according to the lengthy article published in Wired.


“It’s almost delusional,” said Rick Ledgett, a deputy director at the NSA who heads the agency’s Media Leaks Task Force. “I wish I could get to the high mountaintop to scream, ‘You’re not a target!’”


Wired notes that Ledgett’s position was “created last summer for Snowden damage control.”


Gen. Keith Alexander, the director of the NSA, expressed similar sentiments.


Alexander said that he is concerned that many would want to get rid of the Prism program without knowing the facts.


The elimination of the Prism program, which he called a “hornet’s nest,” would do more harm than good, according to Alexander.


“We would like to give it [the Prism program] to somebody else, anybody else,” he said. “But we recognize that if we do that, our nation now is at greater risk for a terrorist attack. So we’re going to do the right thing; we’re going to hold on to it, let people look at the options. If there is a better option, put it on the table.”


Ledgett said that no one even understands how the NSA works.


“It’s always been a black box, Enemy of the State movies, stuff like that,” Ledgett said. “People don’t understand the NSA’s checks and balances.”


Similarly, individuals from tech companies expressed a degree of exasperation with the situation.


“We had 90 minutes to respond,” said Joe Sullivan, Facebook’s head of security, speaking of the amount of time given by The Washington Post to respond to the Prism story.


“Similar panicked conversations were taking place at Google, Apple, and Microsoft,” according to Steven Levy, the author of the Wired piece.


“The tech companies quickly issued denials that they had granted the US govern­ment direct access to their customers’ data,” Levy wrote. “But that stance was complicated by the fact that they did participate—often unwillingly—in a government program that required them to share data when a secret court ordered them to do so.”


The fact that the companies were prevented from talking about everything they knew in public and their own ignorance of the details of the programs led to response that were not seen as intended, according to Levy.


“We can put out any statement or statistics, but in the wake of what feels like weekly disclosures of other government activity, the question is, will anyone believe us?” said Michael Buckley, Facebook’s global communications head.


“Every time we spoke it seemed to make matters worse,” an executive at one unnamed company said to Levy. “We just were not believed.”


On the other hand, some telecommunications companies didn’t seem to be all that concerned with maintaining the trust of consumers.


“Verizon has never denied passing along its key billing information, including the number and duration of every call made by each of its millions of customers,” Levy said, referring to the first of Edward Snowden’s leaks.


Ultimately, the NSA doesn’t apparently see any of the fallout as problematic or a reason to stop mass harvesting data.


“They chalk all of that negativity up to monumental misunderstandings triggered by a lone leaker and a hostile press,” Levy writes.


We would love to hear your opinion, take a look at your story tips and even your original writing if you would like to get it published. Please email us at contact@EndtheLie.com.


Please support alternative news and help us start paying contributors by donating, doing your shopping through our Amazon link or check out some must-have products at our store.




End the Lie – Independent News



Report: NSA and tech companies both frustrated by public misunderstanding

Saturday, January 4, 2014

Public Advocate Likely to Join Secret Spy Court


(Newser) – President Obama will lay out changes to the nation’s surveillance practices later this month, and the Los Angeles Times reports that it’s likely he will accept a key recommendation from a presidential panel on the topic: He will appoint what amounts to a public advocate to argue against the government’s requests before the secret Foreign Intelligence Surveillance Court. As it stands now, the court hears only from government lawyers seeking additional surveillance power, and those requests get approved nearly 100% of the time. The public advocate will theoretically act as a check on that. Unclear is whether Obama will change how the court’s judges are picked; all are currently appointed by the chief justice of the Supreme Court, and the panel recommended opening that up to other justices.


The LAT story also thinks that the president will “probably” shift control of the NSA’s massive database of telephone data from the government into private hands, perhaps the telephone companies themselves. The government could get access to it only with a judge’s permission. One change that looks unlikely: a proposal to make it more difficult for the FBI to issue so-called “national security letters,” which force telecom and financial companies to hand over customer data without a warrant. “There is concern that this proposal makes it more cumbersome to investigate a terrorist than it does a criminal,” says a White House official. Expect to hear Obama’s final decision on these and other recommendations in the days before the Jan. 28 State of the Union.




Politics from Newser



Public Advocate Likely to Join Secret Spy Court

Tuesday, December 31, 2013

Syrian Girl: Obama Directly Backing Al-Qaeda in Public Statement



Alex talks with Syrian Girl about the latest developments in Syria and who stands to gain from this illegal proxy war, pre-invasion by design. Syrian Girls O…



Syrian Girl: Obama Directly Backing Al-Qaeda in Public Statement

Sunday, December 22, 2013

One Hundred Years Is Enough: Time to Make the Federal Reserve a Public Utility


fedreserve


December 23rd, 2013, marks the 100thanniversary of the Federal Reserve, warranting a review of its performance.  Has it achieved the purposes for which it was designed?


The answer depends on whose purposes we are talking about.  For the banks, the Fed has served quite well.  For the laboring masses whose populist movement prompted it, not much has changed in a century.


Thwarting Populist Demands


The Federal Reserve Act was passed in 1913 in response to a wave of bank crises, which had hit on average every six years over a period of 80 years. The resulting economic depressions triggered a populist movement for monetary reform in the 1890s.  Mary Ellen Lease, an early populist leader, said in a fiery speech that could have been written today:


Wall Street owns the country. It is no longer a government of the people, by the people, and for the people, but a government of Wall Street, by Wall Street, and for Wall Street. The great common people of this country are slaves, and monopoly is the master. . . . Money rules . . . .Our laws are the output of a system which clothes rascals in robes and honesty in rags. The parties lie to us and the political speakers mislead us. . . .


We want money, land and transportation. We want the abolition of the National Banks, and we want the power to make loans direct from the government. We want the foreclosure system wiped out.



 That was what they wanted, but the Federal Reserve Act that they got was not what the populists had fought for, or what their leader William Jennings Bryan thought he was approving when he voted for it in 1913. In the stirring speech that won him the Democratic presidential nomination in 1896, Bryan insisted:


 [We] believe that the right to coin money and issue money is a function of government. . . . Those who are opposed to this proposition tell us that the issue of paper money is a function of the bank and that the government ought to go out of the banking business. I stand with Jefferson . . . and tell them, as he did, that the issue of money is a function of the government and that the banks should go out of the governing business.



He concluded with this famous outcry against the restrictive gold standard:


You shall not press down upon the brow of labor this crown of thorns, you shall not crucify mankind upon a cross of gold.



What Bryan and the populists sought was a national currency issued debt-free and interest-free by the government, on the model of Lincoln’s Greenbacks. What the American people got was a money supply created by private banks as credit (or debt) lent to the government and the people at interest. Although the national money supply would be printed by the U.S. Bureau of Engraving and Printing, it would be issued by the “bankers’ bank,” the Federal Reserve. The Fed is composed of twelve branches, all of which are 100 percent owned by the banks in their districts. Until 1935, these branches could each independently issue paper dollars for the cost of printing them, and could lend them at interest.


1929: The Fed Triggers the Worst Bank Run in History


The new system was supposed to prevent bank runs, but it clearly failed in that endeavor. In 1929, the United States experienced the worst bank run in its history.


 The New York Fed had been pouring newly-created money into New York banks, which then lent it to stock speculators. When the New York Fed heard that the Federal Reserve Board of Governors had held an all-night meeting discussing this risky situation, the flood of speculative funding was retracted, precipitating the 1929 stock market crash.


 At that time, paper dollars were freely redeemable in gold; but banks were required to keep sufficient gold to cover only 40 percent of their deposits. When panicked bank customers rushed to cash in their dollars, gold reserves shrank. Loans then had to be recalled to maintain the 40 percent requirement, collapsing the money supply.


 The result was widespread unemployment and loss of homes and savings, similar to that seen today. In a scathing indictment before Congress in 1934, Representative Louis McFadden blamed the Federal Reserve. He said:


Mr. Chairman, we have in this Country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks . . . .


The depredations and iniquities of the Fed has cost enough money to pay the National debt several times over. . . .


Some people think that the Federal Reserve Banks are United  States  Government  institutions.  They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders.


These twelve private credit monopolies were deceitfully and disloyally foisted upon this Country by the bankers who came here from Europe and repaid us our hospitality by undermining our American institutions.



Freed from the Bankers’ “Cross of Gold”


To stop the collapse of the money supply, in 1933 Roosevelt took the dollar off the gold standard within the United States. The gold standard had prevailed since the founding of the country, and the move was highly controversial. Critics viewed it as a crime. But proponents saw it as finally allowing the country to be economically sovereign.


 This more benign view was taken by Beardsley Ruml, Chairman of the Federal Reserve Bank of New York, in a presentation before the American Bar Association in 1945. He said the government was now at liberty to spend as needed to meet its budget, drawing on credit issued by its own central bank. It could do this until price inflation indicated a weakened purchasing power of the currency. Then, and only then, would the government need to levy taxes—not to fund the budget but to counteract inflation by contracting the money supply. The principal purpose of taxes, said Ruml, was “the maintenance of a dollar which has stable purchasing power over the years. Sometimes this purpose is stated as ‘the avoidance of inflation.’”


 It was a remarkable realization. The government could be funded without taxes, by drawing on credit from its own central bank. Since there was no longer a need for gold to cover the loan, the central bank would not have to borrow. It could just create the money on its books. Only when prices rose across the board, signaling an excess of money in the money supply, would the government need to tax—not to fund the government but simply to keep supply (goods and services) in balance with demand (money).


Ruml’s vision is echoed today in the school of economic thought called Modern Monetary Theory (MMT). But after Roosevelt’s demise, it was not pursued. The U.S. government continued to fund itself with taxes; and when it failed to recover enough to pay its bills, it continued to borrow, putting itself in debt.


The Fed Agrees to Return the Interest


For its first half century, the Federal Reserve continued to pocket the interest on the money it issued and lent to the government. But in the 1960s, Wright Patman, Chairman of the House Banking and Currency Committee, pushed to have the Fed nationalized. To avoid that result, the Fed quietly agreed to rebate its profits to the U.S. Treasury.


 In The Strange Case of Richard Milhous Nixon, published in 1973, Congressman Jerry Voorhis wrote of this concession:


It was done, quite obviously, as acknowledgment that the Federal Reserve Banks were acting on the one hand as a national bank of issue, creating the nation’s money, but on the other hand charging the nation interest on its own credit—which no true national bank of issue could conceivably, or with any show of justice, dare to do.



Rebating the interest to the Treasury was clearly a step in the right direction. But the central bank funded very little of the federal debt. Commercial banks held a large chunk of it; and as Voorhis observed, “[w]here the commercial banks are concerned, there is no such repayment of the people’s money.” Commercial banks did not rebate the interest they collected to the government, said Voorhis, although they also “‘buy’ the bonds with newly created demand deposit entries on their books—nothing more.”


Today the proportion of the federal debt held by the Federal Reserve has shot up, due to repeated rounds of “quantitative easing.” But the majority of the debt is still funded privately at interest, and most of the dollars funding it originated as “bank credit” created on the books of private banks.


Time for a New Populist Movement?


 The Treasury’s website reports the amount of interest paid on the national debt each year, going back 26 years. At the end of 2013, the total for the previous 26 years came to about $ 9 trillion on a federal debt of $ 17.25 trillion. If the government had been borrowing from its own central bank interest-free during that period, the debt would have been reduced by more than half. And that was just the interest for 26 years. The federal debt has been accumulating ever since 1835, when Andrew Jackson paid it off and vetoed the Second U.S. Bank’s renewal; and all that time it has been accruing interest. If the government had been borrowing from its central bank all along, it might have had no federal debt at all today.


 In 1977, Congress gave the Fed a dual mandate, not only to maintain the stability of the currency but to promote full employment.  The Fed got the mandate but not the tools, as discussed in my earlier article here.


 It may be time for a new populist movement, one that demands that the power to issue money be returned to the government and the people it represents; and that the Federal Reserve be made a public utility, owned by the people and serving them. The firehose of cheap credit lavished on Wall Street needs to be re-directed to Main Street.


 Ellen Brown is an attorney, president of the Public Banking Institute, and author of twelve books including the bestselling Web of Debt. In The Public Bank Solution, her latest book, she explores successful public banking models historically and globally. Her blog articles are at EllenBrown.com. She is currently running for California State Treasurer on the Green Party ticket.




Global Research



One Hundred Years Is Enough: Time to Make the Federal Reserve a Public Utility