Daily Archives: November 19, 2013


Leaked Memo Reveals U.S. Plan to Oppose Helping Poor Nations Adapt to Climate Change

Democracy Now has the video interview Leaked Memo Reveals U.S. Plan to Oppose Helping Poor Nations Adapt to Climate Change.

Newly leaked documents have revealed how U.S. negotiators at the U.N. climate summit in Warsaw are opposing efforts to help developing countries adapt to climate change. According to an internal U.S. briefing memo seen by Democracy Now!, the U.S. delegation is worried the talks in Warsaw will “focus increasingly on blame and liability” and that poor nations will be “seeking redress for climate damages from sea level rise, droughts, powerful storms and other adverse impacts.” We speak with Nitin Sethi, a journalist with The Hindu newspaper who first reported on the leaked document.


This seems typical of the U.S. strategy, say one thing in public, but be a roadblock in private, and here we are talking about a Secretary of State from a Democratic administration. Also we don’t want to allow messy lawsuits from people seeking that pesky concept called justice.

Also of interest is some talk about India’s role in climate change. The interview tries to mask, a little bit, the problem that India has as both a sufferer from climate change and a cause of climate change. Developing countries, rightly or wrongly, do not want their economic development constrained by rules that did not constrain the already rich countries when they were in a similar stage of development. Of course, we would all like to reap only benefits without taking on responsibility (as shown by the U.S. position). This is one reason this is such a tough issue to resolve.

Maybe this is the only way these international negotiations can work, but going in with a preconceived notion of what you want to get and what you are willing to give may prevent the discussion of the best and most equitable way to achieve the most success. For instance, if you wanted to achieve the least amount of global warming pollution, maybe the solution is to concentrate your efforts where the worst sources are. If some of those polluting sources are in or will be in developing countries, maybe the developed countries need to spend their money in helping the developing countries generate and use power more efficiently.


Harry Reid Threatens ‘Nuclear Option’ — And Soon

Talking Points Memo has the article Harry Reid Threatens ‘Nuclear Option’ — And Soon.

Senate Majority Leader Harry Reid on Tuesday threatened to “go nuclear” on filibuster reform in his strongest terms yet, one day after Republicans completed a triple-filibuster of President Barack Obama’s most high-profile judicial nominees.

“I’m considering looking at the rules,” said the Nevada Democrat. “All this [talk of the] sacred nature of the filibuster — I think what we need, and the American people want, is to get things done around here. I’m not talking about changing anything dealing with the Supreme Court or dealing with basic legislation. I am talking about executive nominations.”

“I’m at the point where we need to do something to allow government to function,” he said. “The obstruction we’ve seen in the last five years is nothing like we’ve ever seen before. … This is not how democracy is supposed to work, or function, and the American people are sick of this.”

An aide to the majority leader told TPM that “Reid’s keeping the whip count in his head and talking with each of his colleagues directly. When he feels ready, he’ll do it. Could be soon.”


Just reading the headline, I would have said, “It’s about time.  What’s he waiting for, the end of Obama’s term?”

I think the last paragraph of the excerpt makes it clear that Reid is just waiting until he has enough votes.


Sturbridge selectman resigns citing town’s priorities at odds with his faith

When someone mentioned this to me in passing in an email, I thought it might be a joke.  I decided to just Google it.  Surprisingly, I came up with this Worcester Telegram and Gazette article, Sturbridge selectman resigns citing town’s priorities at odds with his faith.

Thomas R. Creamer, a selectman since 2009 and whose second three-year term ends April 2015, dropped the bombshell Monday night, but not before he chastised his fellow board members and the community as a whole.

Calling the past year, a “journey,” Mr. Creamer said he was unable to escape the reality his personal relationship with Christ was at a “spiritual void” and “needed to become the single most important thing” in his life. He said he couldn’t achieve this goal if he remained a selectman.
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Despite alleging that the needs and suffering are so prevalent in Sturbridge, Mr. Creamer said the 60 or so attendees at town meeting continue to approve every single expenditure and tax increase presented them, “based not upon validated need or true merit, but rather the social circles that they identify themselves with.”

As I read the first two paragraphs, I was having a hard time figuring out how this was going to connect to what I know about Tom Creamer’s political views.  The last paragraph excerpted above, makes the connection.  It must have been a half-gainer with a double twist that he made to get from the start of his remarks to the end.

I do hope Tom is alright. He has done a lot of good work in Sturbridge.


Elizabeth Warren: We should be talking about expanding Social Security benefits

Rachel Maddow’s web site has the article We should be talking about expanding Social Security benefits featuring the Elizabeth Warren floor speech below.

Over the past generation, working families have been hacked at, chipped, and hammered.  If we want a real middle class – a middle class that continues to serve as the backbone of our country – then we must take the retirement crisis seriously.  Seniors have worked their entire lives and have paid into the system, but right now, more people than ever are on the edge of financial disaster once they retire – and the numbers continue to get worse.

That is why we should be talking about expanding Social Security benefits – not cutting them…. Social Security is incredibly effective, it is incredibly popular, and the calls for strengthening it are growing louder every day.


Search this blog for all I have written about Social Security. After all that, Elizabeth Warren’s speech inspired a new idea for me.

What we need is a 401K option to invest into a Government run pension system that invests wisely.  Such a plan has almost been proposed at MIT by Modigliani, et, al,  Such a plan has almost been put into legislation by Rep. Peter DeFazio (in 2001).  What is new in my idea is that this plan is not (only) to be part of Social Security, but it expands Social Security to cover the 401K also.  Think of this as the “public option” for retirement that is the equivalent of the “public option” we so much wanted for health care in the Affordable Care Act

I just realized that this “public option” idea is very nearly contained in the article that is the subject of my previous post Saving Social Security: A Better Approach. Not excerpted in my previous post, is the following excerpt from the article Saving Social Security: A Better Approach by Thomas K. Philips and Arun Muralidhar.

In addition, centralized administration and record keeping make pension portability exceptionally easy to implement. Therefore, workers would be free to gravitate toward the most productive sectors of the economy without fear of losing their accrued pension benefits. When an employee left a company for a job elsewhere, his vested pension benefits could be sent to the Social Security system for credit to his account. Adding a table to each account to track all the additional contributions made to it over the course of time would be a relatively simple matter. Employees’ payments in retirement would be based on the sum of their Social Security contributions and any additional contributions made to those account.

My innovation takes this idea for portability of vested part of an employer provided pension, and applies it to the 401K plans naming it the “public option”.  If the private pension assets were put into this new “public option” right from the start of the accrual of benefits, this would do away with the possibility of vulture capitalists taking over a company to raid its pension system.  This would be a tremendous benefit to society all by itself.

The extent of the howl of complaints about this from the private sector would be a good measure of the wisdom of this plan.


Greg Palast: Rand Paul’s Zombie-nomics Versus Janet Yellen By Greg Palast

Truthout also has the article Greg Palast: Rand Paul’s Zombie-nomics Versus Janet Yellen.

Unbowed, Paul contends he is channeling Friedman from beyond the grave, invoking the Nobel Prize economist to support the senator’s quest against Yellen’s well-known commitment to easy money policies at the Fed.

I feel almost psychic for having posted my previous post, Paul Krugman | Alan Greenspan, Doing His Best to Make Things Worse.  Well, now the secret is out about which award in particular that I disparage.

As follows, I posted my feelings about Greg Palast’s article on the Truthout web site.

Greg, glad to see you correct the record that it was Friedman, not Keynes, that thought you could end a depression by pumping liquidity into the economy. Since you were his student, perhaps I can understand why you still think Friedman was correct, and that he deserved the Nobel Prize. Unfortunately, Keynes is still right about how to fix depressions, and Friedman is full of baloney. He even had to fake the data to prove his point. Even Yellen complained about the Congress working at cross-purposes to the Fed. In this complaint she meant that the Congress was not providing the Keynesian stimulus the economy needs. The monetarism the Fed is practicing, is at best a very weak tool beyond a certain point, and that fiscal stimulus is really what is needed. This is all according to Keynes Theory, which Friedman unsuccessfully tried to contradict.

If Friedman had been right, certainly the trillions of dollars that the Fed has pumped in would have solved the problem by now. What the Fed has done is far larger and far longer lasting than the puny fiscal stimulus Obama tried, and then counteracted after the first year of the stimulus. The deficit has been falling under Obama since his first year in office. Infrastructure spending is at historical lows. Perhaps Friedman would have applauded this, but Keynes would have been trying to warn us against such folly.

I don’t know if Keynes said this, but the current experience has validated the idea that pushing on a string does not get you very far.


Paul Krugman | Alan Greenspan, Doing His Best to Make Things Worse

Truthout has republished The New York Times article Paul Krugman | Alan Greenspan, Doing His Best to Make Things Worse.

But academic credentials are neither a necessary nor a sufficient condition for having your ideas taken seriously. If a famous professor repeatedly says stupid things, then tries to claim he never said them, there’s no rule against calling him a mendacious idiot – and there are no special qualifications required to make that pronouncement other than doing your own homework.

Conversely, if someone without formal credentials consistently makes trenchant, insightful observations, he or she has earned the right to be taken seriously, regardless of background. One of the great things about the Internet is that it has made it possible for a number of people meeting that second condition to gain an audience. I don’t care whether they’re Ph.D.’s, professors, or just guys running blogs – it’s the work that matters.

I have already coined Greenberg’s Law Of Reverence to cover this situation.  Also, when I publish statements from people like Paul Krugman, I usually try to avoid mentioning the awards that they have won, unless to disparage the award.  Readers like RichardH will know what award in particular that I am not mentioning.