Journal: Wall Street Financial Crime Spree Spins On….

03 Economy, 07 Other Atrocities, 10 Transnational Crime, 11 Society, Budgets & Funding, Commerce, Commercial Intelligence, Government, Money, Banks & Concentrated Wealth, Power Behind-the-Scenes/Special Interests, True Cost

A Secretive Banking Elite Rules Trading in Derivatives

By LOUISE STORY

Published: December 11, 2010

On the third Wednesday of every month, the nine members of an elite Wall Street society gather in Midtown Manhattan.

The men share a common goal: to protect the interests of big banks in the vast market for derivatives, one of the most profitable — and controversial — fields in finance. They also share a common secret: The details of their meetings, even their identities, have been strictly confidential.

Drawn from giants like JPMorgan Chase, Goldman Sachs and Morgan Stanley, the bankers form a powerful committee that helps oversee trading in derivatives, instruments which, like insurance, are used to hedge risk.

In theory, this group exists to safeguard the integrity of the multitrillion-dollar market. In practice, it also defends the dominance of the big banks.

The banks in this group, which is affiliated with a new derivatives clearinghouse, have fought to block other banks from entering the market, and they are also trying to thwart efforts to make full information on prices and fees freely available.

Read the rest of this long “baseline” look at the derivatives crime family.

Phi Beta Iota: Derivatives are legalized financial crime, and a major reason why these criminal assets inflated in value seventeen times while asset-based values only went up five times during the same period addressed by William Greider in his latest book, Come Home America: The Rise and Fall (and Redeeming Promise) of Our Country.  Any government that permits derivatives trading is itself complicit in this crime against humanity.

See Also:

Review: Griftopia–Bubble Machines, Vampire Squids, and the Long Con That Is Breaking America

Review: Empire of Illusion: The End of Literacy and the Triumph of Spectacle

Review: The Battle for the Soul of Capitalism

Who’s Who in Cultural Intelligence: Michael Lind

Alpha I-L, Cultural Intelligence
Michael Lind

Michael Lind is Policy Director of New America’s Economic Growth Program.  He is a co-founder of the New America Foundation, along with Ted Halstead and Sherle Schwenninger, and was the first New America fellow. With Ted Halstead he is co-author of The Radical Center: The Future of American Politics (Doubleday).  Author of many award winning books across politics, political, journalism, history, and poetry and literature for children, he has recently become focused on Populism, and may well be the single best voice for populism in America today.

Learn More

Selective articles on Populism:

Nobody represents the American people (Salon, 7 Dec 2010)

Where are the peasants with pitchforks? (Salon, 26 Oct 2010)

Obama's populist pose (Salon, 25 Jan 2010)

Harnessing Collective Intelligence to Save Democracy

07 Other Atrocities, 09 Justice, 11 Society, Civil Society, Collective Intelligence, Cultural Intelligence, Ethics, Government, Methods & Process, Non-Governmental, Officers Call, Power Behind-the-Scenes/Special Interests, Secrecy & Politics of Secrecy
Richard Wright

Harnessing Collective Intelligence to Save Democracy

“The most durable and dangerous ‘special interest’ – the only one that can directly traduce the Constitution – is the political class.” George F. Will

Robert David Steele (Vivas) has produced a significant, but short, political essay for the Huffington Post, titled, “Citizens Fiddle, Obama Dances.”   The central argument of the essay is that there is a ‘confrontational convergence’ of major proportions set to occur in the U.S. presidential election year of 2012 between a set of negative and positive forces that Steele has been able to identify and summarize. At stake is nothing less than the constitutional government of the U.S. and the continued prosperity of the U.S. and probably the world.

To put it another way, the current U.S. Political System has two major problems that threaten the Constitutional Foundations on which it is built:

First to a greater extent than anytime in U.S. History, the U.S. Government no longer effectively represents the interests of the majority of its citizens, but is actually controlled by a very wealthy minority (an oligarchy–many would say a kleptocracy).

Michael Lind

Michael Lind in a perceptive article “Nobody Represents the American People,” at Salon, makes this point most clearly. And he correctly, I believe, noted that this control was not the result of a vast conspiracy against popular democracy, but was due to a systemic problem. The way the U.S. Political System is structured and operated, wealthy individuals and institutions have gained inordinate influence over both political parties and the politicians that they sponsor. The people who pay the bills have the ability to direct legislation and guide policy formulation. As the result, politicians of both parties will pay lip service to the popular will during elections, but in the end it is the people who actually pay for their campaigns who own their allegiance.  Lind somewhat overstates his case for the decline of mass participation in public affairs, but basically he is correct.

Second political power is addictive and in the absence of real safeguards, the Republican and Democratic Parties have colluded to exclude any other parties from threatening their hold on government. And since they are controlled by the same set of wealthy patrons their policies are essentially identical, a fact concealed by political rhetoric and a highly suspect public media. They form a duopoly that has been able to hold on to power for forty years and to marginalize non-duopoly candidates by manipulating election laws, election districts, political debates and, of course, the print and broadcast media. As a toxic by-product of duopoly control of government, civil liberties as guaranteed by the Constitution have been steadily eroded usually under the guise of public safety. In the elegant prose of Michael Lind, “The disconnect between the actions of the government and public opinion is the central fact of American politics today. It doesn’t seem to matter whether liberal Democrats or conservative Republicans are in power. Only minor, marginal reforms ever take place.”

So what is the solution to these dangerous, I use the word advisedly, problems? Well Steele with the aid of some collaborators has devised what he correctly suggests is the “Magna Carta’ of the 21st Century, the Election Reform Act of 2011.  This is a one page document that is presented among other places in his Huffington Post essay Electoral Reform (1 Page, 9 Points). If enacted it would break the power of the duopoly and its wealthy patrons and truly return power to the people. But would it ever be enacted by a congress controlled by a power addicted duopoly which in turn is employed by a wealthy oligarchy? The original Magna Carta of 1214 (CE) was forced down King John’s throat by a consortium of land barons and wealthy merchants who gave him the choice of acceptance or abdication. Does the U.S. citizenry have similar leverage over congress? Certainly not now, but Steele believes that a

Tom Atlee

movement started by thought leader Tom Atlee, with the meme of “Change the  Game,” may be able to mobilize enough voters to force congress to pass the act and the executive branch to enforce it.

Atlee heads an Oregon based outfit called the “Co-intelligence Institute”, which to date has not been co-opted the U.S. oligarchy. The Institute in essence is trying to create a collaborative movement among the voters that will be a force for change through the power of the collective intelligence of its participants. Among other things Atlee hopes that as the movement grows, natural leaders will come to fore who will use integrity and decency to turn the movement into a politically powerful force.

If Atlee can reach enough citizens through other means, such as GroupOn (originally a citizen democracy idea by founder Andrew Mason), the National Council on Dialog and Deliberation (NCDD); and what Steele calls the “eight tribes” of intelligence, he–Tom Atlee–may be offering us all a last chance at regaining true political freedom and restoring the Republic.

Robert Steele, a truly important and original thought leader himself, has somehow managed to retain his sanity and integrity in spite of living within spitting distance of the nation’s capital. He now is pleading for monetary and participatory support for Tom Atlee and his institute; I think this plea should be heeded.

Richard Wright
From the Heartland
12 December 2011

Phi Beta Iota: $25 is the norm, send more if you can, this is the one person in the USA who is absolutely without question working on behalf of We the People.  Donation Link Here. Below is from the Co-Intelligence Institute donation page.

Why should I donate to the Co-Intelligence Institute rather than some other charity or cause?

We hope that you will donate to the Co-Intelligence Institute if you believe, as we do, that our work offers a very high potential for positive change.

We believe that our current social systems — especially our political and governance systems — are dangerously unresponsive to positive change, and even actively block the very changes we need to survive and thrive in the 21st century.

No matter what other issues concern you (and there are a huge number that concern us), we suggest that the existing system will not handle them well. The Co-Intelligence Institute is currently focusing on changing the political system so that it will handle every other issue wisely — and inspiring a movement of conscious evolutionary agents to catalyze cultural shifts, systemic evolution, and technological development into more co-intelligent forms.

To the extent we succeed at that, we'll get the world we all want, because we'll be able to freely and wisely co-create it, using these more responsive and wise democratic systems. We invite you to consider the logic of this and — if you agree — support our work.

If you believe, as we do, that our work offers a very high potential for positive change, we hope that you will donate to the Co-Intelligence Institute.

Who’s Who in Cultural Intelligence: Jon Lebkowsky

Alpha I-L, Cultural Intelligence
Jon Lebkowsky Bio

Jon's  bio is under the photo.  He is one of the originals, including a book co-edited with Mitch Ratcliffe (a co-founder of Earth Intelligence Network), Extreme Democracy (Lulu.com, 2004).  Below is his latest update.

Irons in the fire:

  • Plutopia Productions projects are on fire… including the Plutopia 2011 event during SXSW and the Plutopia News Network that Scoop Sweeney and I will be launching within the next month. Scoop and I are also producing events on the side, like last Friday’s “From Jerusalem to Cordoba” performance by Catherine Braslavsky and Joseph Rowe. Scoop and I, like our Plutopia Productions colleagues, see event production — creating compelling experiences — as an art form. We expect to produce at least one event per quarter, either as part of Plutopia Productions or onw our own, in addition to our work on the content site, which will include podcasts and god nose whatever other media.
  • I’m partnering with other web developers in creating Teahouse Media, a web consulting and development cooperative. Web development is my day job, and I pursue it with relish… an avid builder of information environments and systems. As in the past, I’m focused on open source platforms, primarily Drupal and WordPress.
  • With a loose group journalists and other thinkers and doers, I’ve been exploring the future of journalism and the emergence of digital news applications; set to moderate a panel on the subject at SXSW Interactive.
  • Trying to get my head aorund the future of the Internet. I gave a talk on the subject at a recent meeting of the Central Texas World Future Society, and will give another similar talk at Link Coworking at noon on January 8.
  • In that context, I’ve also been tracking the Wikileaks controversies, thinking to convene a public forum on the subject via EFF-Austin. Is Julian Assange shouting “fire” in a crowded theatre? Or is he a contemporary Daniel Ellsberg variation? Also thinking about transparency; working as an organizer (with the LBJ School) of the Texas Government 2.0 Camp, which will be January 28-29.
  • A practicing Buddhist, I’m looking into the Gurdjieff work, a different system of thinking, but similar in its cultivation of mindfulness. True mindfulness is easy to conceive but hard hard hard to achieve.
  • I’ve signed up to be a reviewer for the City of Austin’s Grant for Technology Opportunities, which awards money to community technology projects. I’ve always had an interest in community technology, and that’s revived somewhat as I note that there’s still a digital divide, and it’s even more significant as so much more of what we do in our daily lives requires access to technologies and networks. Also interseted in digital literacy; not long ago Howard Rheingold and I were discussing his next book, which will be on that subject.
  • The world is incredibly screwed up at the moment; I feel an obligation to get into an active an visible advocacy for the things I think are important… a humane progressive agenda, a positive and transformative cultural agenda, depolarizing politics and an end to the cultural cold war in the U.S. and beyond, commitment to the ideal of sustainability, acknowledgement of and response to the problem of global warming, etc. Can a web developer do all that much? I’m with the army here… we should all try to be all that we can be…

Journal: Appeal to Obama on Afghanistan

02 Diplomacy, 08 Wild Cards, 10 Security, Cultural Intelligence, Government, Military
DefDog Recommends...

Obama ‘must talk to Afghan Taliban'

By Staff Reporter
AFP Global Edition

Dec 11, 2010 11:36 EST

A group of influential international experts on Afghanistan Saturday appealed to US President Barack Obama to radically change his strategy in the war-ravaged nation and negotiate directly with the Taliban.

. . . . . . .

“It is better to negotiate now rather than later, since the Taliban will likely be stronger next year.”

“The situation on the ground is much worse than a year ago because the Taliban insurgency has made progress across the country,” the letter said.

“The Taliban today are now a national movement with a serious presence in the north and the west of the country.”

. . . . . . .

“Like it or not, the Taliban are a long-term part of the Afghan political landscape and we need to try and negotiate with them in order to reach a diplomatic settlement. The Taliban's leadership has indicated its willingness to negotiate and it is in our interests to talk to them.”

Full article….

Journal: Presidential Election 2012 Rolling Update

Civil Society, Cultural Intelligence, Government

9 Dec 10 Nader: Bloomberg Could Win–21 Reasons (Daily Beast)

9 Dec 10 Ralph Nader Predicts Obama Will Face Democratic Primary Challenger in 2012 (Politics Daily)

He called the president “opportunistic” and lacking in principles.  “He's a con man. I have no use for him,” Nader said.

6 Dec 10 Journal: Rabbi Michael Lerner, Barack Obama, and the Washington Cesspool Update

Starting Point:  Be Very Afraid – 29 Candidates

Constant Good Value:  On The Issues