Phi Beta Iota: This is an extraordinarily good contribution–a virtual compendium of every side of the secret world. Amusingly it acknowledges that 90% of what we need to know comes from open sources of intelligence without noting the irony that we spend $80 billion on everything other than open sources. It repeats the US Government mis-conception that open sources are “second-hand,” and it neglects multinational intelligence and counterintelligence precisely because the US Government refuses to be serious about that necessary evolution. Over-all, an absolute pleasure to read, a serious contribution.
Can the US Have an Expansionary Fiscal Contraction?
All … the attached essay was written by Simon Johnson, Ronald Kurtz Professor of Entrepreneurship, MIT Sloan School of Management; Senior Fellow, Peterson Institute for International Economics; and co-founder of Baseline Scenario. Johnson used to be Chief Economist of IMF and is, IMO, one of the sanest voices in economics. It summarizes his recent testimony to the Joint Economic Commitee of Congress. The question is — Should we reduce federal debt to slow the build up of private debt? He lays out 4 reasons why such a contractionary fiscal policy will create even worse problems.
Click on Image to Enlarge
His penultimate paragraph places the real issue — who is going to pay for the liquidation of the private bubble (see chart below, which I compiled from Fed. Reserve data) into context (the red typing is mine to clarify the ambiguity in his double use of debt). Also, I urge you to read his testimony (you can download it from the link indicated below) — it is more detailed and he has a brief discussion about how the cost of the financial meltdown (looming private debt liquidations — particularly the bubbles of debt in the financial and household sectors — which Fig 2 shows has not really begun to bite) are being shifted to the middle class. Note, the rise in the light gray area in Figure 1 is the spike in federal debt that has taken place since the meltdown.
What happened to the global economy and what we can do about it
Could The US Have An “Expansionary Fiscal Contraction”?
By Simon Johnson. My full written testimony to Tuesday’s hearing of the Joint Economic Committee of Congress is available here.
The US has a large budget deficit and a debt-to-GDP ratio that, in most projections, continues to rise over time. Some House and Senate Republicans are arguing strongly that this situation calls for large and immediate cuts to government spending, for example as part of any agreement to increase the federal government’s debt ceiling.
The Joint Economic Committee of Congress held a hearing on Tuesday to discuss whether such spending cuts would be “contractionary” or “expansionary” for the economy in the short-run. My assessment, after participating as a witness at the hearing, is that large immediate spending cuts would tend to slow the economy (a webcast of the hearing is here).
Hub Culture is a global collaboration network with over 25,000+ members distributed across 110 countries. Their stated mission to expand collective consciousness is driven by the blend of online workspaces for knowledge sharing with offline Pavilions for meeting and connecting – all powered by their digital currency, Ven. Below is an interview with Hub Culture’s Founding Director, Stan Stalnaker.
What compelled you to create Ven?
For us it was a matter of practicality – with a global, diverse community, we found that no single currency could offer a single pricing structure for global inventory in Hub Culture. Our members needed a global wallet – as simple to use in Rio as Shanghai. As a social network, we thought linking this system to the social profile of our users would help them share and create value. We needed a simple, transparent way for our members to exchange value and favors, and the answer was Ven. It has been a learning experience for us. The currency has evolved and grown since its debut in the summer of 2007, and we have discovered ways to make it more useful for our members and the planet at large.
You’ve said Ven can be thought of as ‘green money’? Why?
Today Ven is the only digital currency to be priced from a basket of currencies, commodities and carbon futures. These components give the Ven advantages of other currencies: the basket encourages price stability on a forward basis, and the link to commodities grounds value in hard assets. The introduction of carbon to the basket is helping us think about how money can serve better social purposes – in this case to support and stimulate demand for carbon credits and social impact development, driving offsets for every transaction used with Ven. This is how the idea of ‘green money’ developed with Ven – because its carbon linkages are able to play a role in this area. I really like the idea that Ven is green, social and efficient, with a mission to improve the lives of its users and the communities that use it.
Rebels, with the help of NATO bombs and missiles, drove out Misrata's Black population
The “rebels” in Misrata in Libya have driven out the entire Black population of the city, according to a chilling story in The Wall Street Journal today under the headline Libya City Torn by Tribal Feud.”
The “rebels” now eye the city of Tawergha, 25 miles away, and vow to cleanse it of all Black people once they seize the city. Isn't this the perfect definition of the term “genocide”?
According to The Journal's article, the “rebels” refer to themselves as “the brigade for purging slaves, black skin.” The Journal quotes a rebel commander Ibrahim al-Halbous saying, of Black Libyans, “They should pack up,” and that “Tawergha no longer exists, only Mistrata.”
You won't read this kind of article in The New York Times, which has become as journalistically corrupt and as compromised as the old PRAVDA, during the Soviet era. This editorial page has been insisting since the beginning of the Libya conflict that the “rebels” embraced racism and used the allegation that Muammar al-Quathafi had employed mercenaries from other African countries as a pretext to massacre Black Libyans.
Phi Beta Iota: Congress has no clue–pontificating politicals divorced from reality. Cynthia McKinney, Green Party candidate for President in 2008, has taken a personal interest in this, and personally visited Libya to confirm that NATO is committing war crimes in its indiscriminate attacks against Tripoli, far removed from the “no fly zone” as originally envisioned. What the US Government is doing “in our name” in Libya, and in many countries around the world, is neither Constitutional nor affordable. Congress is lacking in intelligence and integrity. The lunacy continues….
What is the relationship between transforming ourselves and transforming the world?
In my previous essay, I described seven forms of leverage for deep transformation. When I wrote it, I was thinking of social transformation. The seven forms of leverage, in increasing potency, were:
1. Ameliorate the pain
2. Slow the damage.
3. Create alternatives.
4. Catalyze connections.
5. Understand the big picture.
6. Change the story.
7. Transform the systems.
Hearing this list, a close colleague was surprised that I did not include personal transformation. His view comes close to two related views held by many transformational agents: (1) Social change cannot be adequate without serious efforts by change agents to transform themselves and (2) transformation of individual consciousness is a (if not the) primary driver of systemic transformation.
I agree that both these dynamics are important and helpful, but I consider neither essential for social transformation. Nor do I see them as distinct forms of transformational leverage.
Congress is slowly but surely trying to get the Pentagon to cut back on its overseas information operations, most of which end up being done by contractors.
The latest hint has come from the House Appropriations Committee, which has sliced about $125 million from the $300 million that was being sought in the fiscal 2012 Defense Appropriations Bill for what is now known as Military Information Support Operations (MISO).
Several years ago, when Congress first paid attention to this subject, it was called Strategic Communications and it was said to have been costing around $900 million. That figure then dropped to above $600 million. The programs were then designated as Information Operations and then, last year, MISO.
Phi Beta Iota: This is a cosmetic cut in relation to all the money being wasted on failed acquisition programs, elective and unconstitutional wars and covert actions, and of course “intelligence” and “Cyber-War.”
