Influential British parenting website Mumsnet was instrumental in bringing down scandal-ridden News of the World. Bill Coles reports from London on the remarkable grassroots campaign.
Tell Your Members of Congress to Cosponsor the Shareholder Protection Act
The Shareholder Protection Act proposed by Rep. Michael Capuano (D-Mass.) would empower shareholders to vote on whether to allow corporate executives to spend corporate money on political campaigns. Shareholders — not the CEO and not the board of directors — are the real owners of any publicly traded corporation, and the decision should be theirs.
A new survey from Insite Security and IBOPE Zogby International of those with liquid assets of $1 million or more found that 94% of respondents are concerned about the global unrest around the world today.
Fully 90% of respondents have a negative view of the current global economic climate and 41% say they have little or no faith that the U.S. will be able to right itself in this fiscal climate.
Phi Beta Iota: The super rich have created a global plague of failed states, poverty, infectious disease, and environmental degradation, thinking governments that they corrupted will take care of it. Not so. Corruption is a super-plague. Integrity is the antidote, M4IS2 is the method by which the super-rich can fund a win-win recovery. They did it once before, addressing public health in New York City. Time for big ideas again.
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.
Phi Beta Iota: Below is circulating among the Gold Warriors in Asia. We anticipate the nationalization not only of mines, but of land, followed by a rejection of most foreign debt, foreign seed, and foreign vaccines and medications. We continue to believe 2012 will be a year of awakening and bring a major correction to how power is exercised in the public interest. Public intelligence will play a huge rule, and will have a marketable value based on transparency, truth, and trust. We reassert our commitment to non-violent truth & reconciliation. There is money to be made in healing humanity and Earth, unleashing the power of the three billion brains now largely idle for lack of connectivity and back-office exploitation.
But as US action around the world aimed at eliminating the recently won right to self-determination for the peoples of Asia and Africa under the guise of “Western democracy” fighting “totalitarian communism”, which left a trail of millions murdered by the US and its allies (starting with Korea and moving to the Congo, to Indonesia, Vietnam, Cambodia, and Laos, and from Guatemala to Brazil to Argentina, Uruguay, El Salvador, and Chile, to Southern Africa and the Middle East), the cruel US invasions of Iraq and Afghanistan in the last decade have hardly changed this anti-democratic trend. Yet two important victories are always touted by supporters of US foreign policy on the democratic front: namely, the fall of the Soviet Union and the ensuing “democratisation” of Eastern Europe, and the end of Apartheid in South Africa. The US hopes that its policies in both places will guide it to achieve similar ends for those uprisings of the Arab world that it cannot crush.
Joseph Massad is Associate Professor for Modern Arab Politics and Intellectual History at Columbia University in New York.
The same people who brought you Wikileaks are back, and this time, they've created a virtual currency called Bitcoin that could destabilize the entire global financial system. Bitcoin is an open-source virtual currency generated by a computer algorithm that is completely beyond the reach of financial intermediaries, central banks and national tax collectors. Bitcoins could be used to purchase anything, at any time, from anyone in the world, in a transaction process that it is almost completely frictionless. Yes, that's right, the hacktivists now have a virtual currency that's untraceable, unhackable, and completely Anonymous.
And that's where things start to get interesting. Veteran tech guru Jason Calacanis recently called Bitcoin the most dangerous open source project he's ever seen. TIME suggested that Bitcoin might be able to bring national governments and global financial institutions to their knees. You see, Bitcoin is as much a political statement as it is a virtual currency. If you think there's a shadow banking system now, wait a few more months. The political part is that, unlike other virtual currencies like Facebook Credits (used to buy virtual sock puppets for your friends), Bitcoins are globally transferrable across borders, making them the perfect instrument to finance any cause or any activity — even if it's banned by a sovereign government.
You don't need a banking or trading account to buy and trade Bitcoins – all you need is a laptop. They're like bearer bonds combined with the uber-privacy of a Swiss bank account, mixed together with a hacker secret sauce that stores them as 1's and 0's on your computer. They're “regulated” (to use the term lightly) by distributed computers around the world. Most significantly, Bitcoins can not be frozen or blocked or taxed or seized.
