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SYNDICATED COLUMN: You Want a Job, Right?

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Ted Rall

Herman Cain and the Criminalization of Poverty

Pizza baron Herman Cain leads in the polls. Yet nobody believes he can win the Republican nomination. The fact that the #1 candidate doesn’t stand a chance is an improbable truism emblematic of our broken-down political system.

Partly it’s that he’s black. Republicans are racists.

Partly it’s that the nomination was promised to Mitt Romney. He’s been waiting. It’s Willard’s turn.

It’s not the accusations of sexual harassment. Republicans are sexists. For the GOP touching the hired help (or wannabe hired help) is the droit du CEO.

The reason Cain isn’t allowed to be president is money. Romney is spectacularly wealthy. Cain is merely rich. As of October Romney had used his white-male Wall Street connections to raise $14 million. Cain had a paltry $700,000.

After reports surfaced that Cain had groped Susan Bialek, a woman who asked him for help landing a job, Cain received $250,000 in contributions in a single day. Attempted rape—she says he tried to force her head into his special place—pays.

Unsurprisingly, the Cain campaign went to work smearing the credibility of his accusers. One of his proxies, right-wing radio talker Rush Limbaugh, took to pronouncing Bialek’s surname “buy-a-lick.”

Cain’s main attack, however, is focusing on the women’s finances. “Who Is Sharon Bialek?” asked a Cain campaign email to reporters.

It was a perfect illustration of what’s wrong with the media.

“The fact is that Ms. Bialek has had a long and troubled history, from the courts to personal finances—which may help explain why she has come forward 14 years after an alleged incident with Mr. Cain, powered by celebrity attorney and long term Democrat donor Gloria Allred,” said the Cain camp.

Well, sure, Bialek’s past-due bills “might” explain why Cain waited so long to speak out. For that matter, she “might” be a delusional space alien who prefers Domino’s. Heck, she “might” even have vomited at the thought of her groper becoming president.

Who knows anything, really?

Not Cain—he’s never heard of neoconservatism. But I digress.

Back to Cain’s smear campaign. The narrative is simple: this bitch is poor. I’m rich. She’s lying about me to pay her bills.

The fact that the media plays along with such reasoning shows how elites wage class war against the 99 percent of us who work for a living.

“Ms. Bialek was also sued in 1999 over a paternity matter,” spat the Cain campaign. “In personal finances, PACER (Federal Court) records show that Ms. Bialek has filed for bankruptcy in the Northern District of Illinois bankruptcy court in 1991 and 2001…Ms. Bialek has worked for nine employers over the past 17 years.”

The New York Times added some context.

“Saddled with $17,200 in legal fees related to a paternity fight with the father of her infant son, Ms. Bialek filed for bankruptcy protection in 2001. Her income had dropped to $19,000 in 2000 from $38,000 the year before, court records show, and she had only a few thousand dollars in assets. Court records show that Ms. Bialek has continued to experience money troubles in recent years. The Internal Revenue Service in 2009 filed a lien against her for $5,176 in unpaid taxes, and an Illinois lending company won a judgment last year for $3,539.”

Bialek and her attorney anticipated attacks that she was planning to profit from her account, announcing that she would not sell her story. That should have done the trick, but no. Cain’s smear tactics appear to be working so far.

No one but Bialek and Cain know what happened that night back in 1997. Regardless of the truth, the implications of Cain’s approach should be troubling. To follow Cain’s argument to its logical conclusion, anyone who has ever had money problems can’t be trusted to tell the truth.

Poor people are liars.

Rich people are not.

Which no doubt comes as news to former clients of Bernard L. Madoff Investment Securities LLC.

Bear in mind, there is no evidence that Bialek or the other women committed perjury, or fraud, or embezzlement. Their characters are not at issue. Bialek’s sin, if you agree with Cain, is that she’s broke.

These days, who isn’t?

Over a million Americans a year file bankruptcy. One in nine Americans have seriously considered it since the economy died in 2008. According to Cain, they are all—to a man, or is it just women?—lying sacks.

The I.R.S. filed liens against over a million Americans in 2010, a 60 percent increase from the year before. Are they inherently untrustworthy?

I’ve gone to court. I’ve had judgments against me. I don’t think I was more honest before those things happened.

The Tories of Great Britain widened the gap between rich and poor, then cast the poor into debtors’ prisons. Like their ideological forebears, Cain and his fellow Republicans want to criminalize poverty. Thanks to their pro-corporate policies, which have dominated the U.S. for 40 years, the economy is dead. The ranks of the poor, the dispossessed, the bankrupt and the tax non-payers like Susan Bialek have grown and continue to expand.

To be poor, Cain and the GOP argue, is for your word to be worthless.

Bialek may or may not be lying. Either way, her veracity has nothing to do with her income. “It’s not about me,” she told an interviewer. “I’m not the one running for president.”

(Ted Rall is the author of “The Anti-American Manifesto.” His website is tedrall.com.)

COPYRIGHT 2011 TED RALL

Occupy History

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Ted Rall

I’m going over some old writings which I’m compiling into a new book which is coming out next year. I just came across this column for September 23, 2008, written just after the economic crisis began. You may find it of interest.
Ted

Save People, Not Bankers

Seat belt laws embolden drivers to drive faster, causing a net loss of life. It’s the law of unintended consequences, also known as the Peltzman effect: the safer you feel, the more risk you take.

Sam Peltzman, the economist after whom said effect is named, says that government bailouts like the Bush Administration’s $700 billion attempt to stave off economic collapse are no more effective than “pouring money down a rat hole.” Moral hazard–rewarding reckless people and companies while allowing responsible ones to fail (hello, Lehman Brothers) may avert one economic crisis while planting the seeds of a worse one down the road.

“In the long run,” says Peltzman, “you’re just laying the groundwork for more because you’re giving people an incentive to take too much risk, where a big part of the risk gets laid off on the taxpayer.”

I don’t think much of the laissez faire, magic-of-the-marketplace, let-’em-eat-flat-screens school of Darwinian economics flogged by the University of Chicago, where Milton Friedman once reigned supreme and Peltzman is a professor emeritus. But I think he has a point here–with a twist. Government intervention is appropriate and necessary during tough economic times. But not if you bail out corporations.

The 1979 Chrysler bailout is a perfect example. Jimmy Carter’s $1.2 billion loan sent an unwholesome message to Detroit: don’t change a thing. If you get into trouble, the government will rescue you. The Big Three kept selling gas guzzlers. Nimble foreign automakers that spent the 1980s and 1990s developing hybrid technology are crushing them now.

More recently, the government bailed out the airlines after 9/11, notably by limiting negligence lawsuits by relatives of victims. It’s hardly a coincidence that the major carriers haven’t done much to improve security. Similarly, it’s hard to see how U.S. taxpayers will benefit by lending my former employer Bear, Stearns $29 billion to facilitate its sale to JPMorganChase. Bear’s corporate culture, reeking of the testosterone-drenched arrogance of its seven-figure-salaried executives, led it to fib about the worth of the collateralized debt obligations that supposedly guaranteed the payment of its subprime mortgage hedge funds. When traders learned the truth, confidence in the firm collapsed, sealing its fate.

Or would have, if the feds hadn’t come along. Letting Bear go under might have prompted caution among future wannabe Masters of the Universe. If capitalism survives this debacle, we’ll see more like it as a result.

Democrats are asking for some laudable amendments to Bush’s plan. They want to give bankruptcy court judges the power to reduce monthly mortgage payments, cap executive salaries, and increase Congressional oversight of the financial services companies involved. Good ideas, but none go far enough. Besides, they’d expire at the end of 2009. Does anyone think the economy will be booming by then?

At least four million people–nine percent of all homeowners–have fallen behind on their payments or are in foreclosure. And 6.5 million more could go down the tubes next year. “People with poor credit have been defaulting on mortgage payment in large numbers for more than a year,” says Douglas McIntyre, an editor at 247wallst.com. “Now the problem has moved to homeowners with reasonably good credit.”

Each family that loses their house creates a ripple effect. Empty homes lower their neighbors’ property values. Some dispossessed workers, unable to find a new place near their jobs, become unemployed. Savings are wiped out. Forced to move, parents pull children out of school, disrupting their education in ways that will hurt them and society decades from now. Banks are burdened with the costs of maintaining property they don’t want until they can unload it at a reduced price–further depressing real estate prices. Society, even renters, has an interest in preventing foreclosures.

The unpredictable nature of the current real estate price plunge has created another set of problems. Tobin Harshaw of The New York Times sums up a complicated mess as nicely as anyone I’ve read: “There are a whole bunch of mortgage-backed securities, the value of which is not known, because nobody knows what the default rates on the underlying mortgages are likely to be.” Investors can’t set prices, much less invest, without reliable information. So credit markets have seized up.

Americans are peering into the abyss, a.k.a. the End of Everything As We Know It. So whom are we counting upon to save the day? The same Bushist dead enders and Congressional layabouts who let Osama bin Laden live and New Orleans die.

So yeah, we’re toast. But let’s talk about what should be done:

1. Declare a Bank Holiday. As FDR did in 1933, Bush should shut down the financial system–banks, stock and currency exchanges–for a week or so to avoid panic selling, cool down market volatility, and give Congress time to craft carefully considered legislation rather than the spend-a-thon slapped together over the last Black Weekend. It bodes ill that liberals and conservatives alike have so little faith in the plan. Take some time; get it right.

2. Reinstate the Glass-Steagall Act. The current mortgage meltdown couldn’t have happened without Senator Phil Gramm, now a key economic advisor to John McCain. In 1999 Gramm led the repeal of the Depression-era legislation that had separated commercial from investment banks, allowing Citigroup and other companies to sell mortgage-backed securities that blurred the line between Main Street and Wall Street. Let the financiers handle derivatives, structured investment vehicles, and other arcane financial instruments. Banking should return to its dull, staid roots as a business that pays interest on deposits and collects interest on loans without imperiling those deposits.

3. Bail out homeowners, not lenders. Stop doling out hundreds of billions, even trillions, of dollars, to a few banks and issue the cash to the disaggregated tens of millions of Americans who will spend the money and stimulate the economy instead. Which brings us to…

4. Abolish predatory interest rates. Millions of people in danger of losing their homes would not be in trouble if their banks weren’t charging usurious interest rates. Every primary homeowner should be automatically refinanced to a floating 30-year mortgage, with the interest rate set at 1/4 percent point above the fed funds borrowing rate. Similarly, all consumer credit card debt should be refinanced to prime plus 1/4. The same goes for student loans. Secondary and vacation homes don’t qualify. Unemployed homeowners can apply for hardship deferrals, allowing them to skip mortgage payments until they find a job. Payday loans ought to fall under similar guidelines. In Utah, the average interest rate on payday loans is 521 percent! Of course, reforms will cut deeply into lenders’ earnings. Many banks would be at risk of going under, which is why…

5. Banks that fail should be nationalized. As should investment banks and any other institution that needs federal taxpayer money to avoid failure. If we the people fund ‘em, we the people own ‘em. If and when the economy recovers, the Treasury collects the spoils and cuts our taxes.

6. Withdraw from Iraq and Afghanistan, and slash defense spending. Christopher Whalen, managing director of Institutional Risk Analytics, tells USA Today the government may have to cover $1.4 trillion in bad mortgage debt. That’s a lot of money, but I have good news: we can get it. In 2007, the Congressional Budget Office estimated that the occupations of Afghanistan and Iraq would cost at least $2.4 trillion through the next decade–even more if Obama or McCain keep their pledges to send more troops to Afghanistan next year. Cutting our losses and cutting the $515 billion a year Defense Department appropriations budget would help finance the clean-up of the mortgage meltdown.

(C) 2008 Ted Rall, All Rights Reserved.

New Cartoon Auction, Lower Buy It Now Price

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Ted Rall

Last week’s eBay cartoon auction finished successfully. Didn’t get it? No worries. A new auction has just gone up.

I have just posted a new cartoon auction on eBay.

Starting bid is 99 cents. I have reduced the Buy It Now price to $300. Auctions have gone over $300 in the past.

Winner gets to pick the topic of the cartoon. She or he also may reprint it or donate the reprint rights. They also get the original cartoon artwork. I also may syndicate the cartoons that result from this. So far all of them have been syndicated. Of course, this is also a great way to support my work. Thanks for bidding!

SYNDICATED COLUMN: The Occupier’s Choice: Violence or Failure

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Ted Rall

Don’t Know What They Want, But They Know How To Get It

Here’s how U.S. state-controlled media covered events at Occupy Oakland:

“A day of demonstrations in Oakland that began as a significant step toward expanding the political and economic influence of the Occupy Wall Street movement, ended with police in riot gear arresting dozens of protesters who had marched through downtown to break into a vacant building, shattering windows, spraying graffiti and setting fires along the way,” reported the AP.

Then they quoted an Occupy Oakland member: “‘We go from having a peaceful movement to now just chaos,’ said protester Monique Agnew, 40.”

The lede of this November 3rd AP story frames a larger narrative. “Political and economic influence” cannot be achieved through violence. Ms. Agnew’s quote is used to support that framing. The move from “peace” to “chaos” represents a setback for the Occupy movement.

Violence = tragedy.

Considering that recorded history does not include a single instance of a nonviolent movement effecting radical change, it is interesting that anyone would argue that violence is by definition a negative development. It is equally astonishing that anyone would believe it.

In a revolution, one set of elites gets supplanted by another. There has never been a nonviolent revolution.

Never.

Gandhi was nonviolent. But his allies did resort to violence on numerous occasions. And India wasn’t a revolution. It was an independence struggle. The rich remained rich; the poor stayed poor. Conversely, there has never been a revolution in which violence was the primary tactic. Even the bloodiest revolutions—France, Russia, China—relied more on national strikes, sabotage, marches and demonstrations than shooting people. Revolutions are mostly nonviolent. But violence must always part be of the revolutionist’s toolkit.

Movements move.

Sometimes against the will of many of its members, the nascent Occupy movement is being propelled forward into its second phase: increasingly direct confrontation with the security apparatus of the American police state. The consideration of violence as a tactic is the inevitable result of Occupy’s own internal logic, resulting from a combination of its timing—at a time when revolution is needed and desired by millions of Americans, it’s the only insurrection in town—and its leaderless structure.

Never in history have the wealthy or powerful voluntarily relinquished substantial amounts of money or power. The corporate elite and the political class that enables them—the “1%,” as Occupy calls them—will never give into the Occupier’s demands to reduce their power or wealth unless faced with violence or the credible threat thereof.

As Peter Gelderloos writes in his book How Nonviolence Protects the State: “Time and again, people struggling not for some token reform but for complete liberation—the reclamation of control over our own lives and the power to negotiate our own relationships with the people and the world around us—will find that nonviolence does not work, that we face a self-perpetuating power structure that is immune to appeals to conscience and strong enough to plow over the disobedient and uncooperative.”

If voting or writing letters to the editor worked, we wouldn’t need Occupations.

The Occupy movement can wind up in one of two ways:

Failure.

Or success, partly via the occasional use of violence and/or the credible threat of violence that results from those sporadic outbursts.

First let’s define terms. Vandalism, theft and destruction of property are not violence. Inanimate objects do not suffer. Violence can only be inflicted upon living beings. Breaking a window may or may not be morally justified, but it is never violence. Further, violent self-defense is not the same as violence. Until now the violence at the Occupations has all been initiated by the police. When policemen fire rubber bullets, bean bags, tear gas and pepper spray at unarmed, peaceful protesters, their victims have every right to defend themselves—to run away, to avoid arrest and yes, to strike back.

Every civilized society recognizes the right to self-defense.

Perhaps because they were retroactively spooked by the bombings, bank robberies and kidnappings that marked the disintegration of the Vietnam protest movement, throughout the last 40 years American leftists have adhered to a strict code of militant nonviolence. Abandoning the tactics of disruption and non-cooperation (both of which were central to Gandhi’s approach), demonstrators’ ridiculous cooperation with government authorities reduced progressivism to farce.

Marchers apply for permits on public streets. Organizers give the police pre-printed lists, last name first, of activists who volunteer to be arrested; they are quickly booked and released, rarely less than $100 poorer. It is theater, a mere pantomime of genuine protest.

And it never works. You need only look back at the political history of the United States between 1971 and 2011 to see what 100% nonviolence has accomplished. Even under Democratic presidents and Congressional majorities, the Left has lost one battle after another.

The Left’s only major victory during that period followed the 1999 Battle of Seattle. Riots and broken windows disrupted the World Trade Organization for years. Countless American jobs were saved as a result. Yet liberals were ashamed.

Violence! How terrible!

Not as terrible as the wars and the massive unemployment, apparently.

At the core of the cowardice of protests carried out by establishment liberals has been slavish adherence to nonviolence at all cost. At most protests over the past few decades self-appointed “peace police” patrol the edges of crowds penned into “free speech zones” (which are inevitably placed out of the way, far from cameras). The peace police don’t lift a finger to protect demonstrators against police brutality. Instead, they act to prevent protesters from doing anything to “provoke” the cops, even when they are trying to protect themselves from brutality.

What makes the Occupy movement different and so compelling is that it moves beyond going-through-the-motions toward real resistance against tyranny for the first time since the 1960s. Seizing territory without a permit and refusing to relinquish it, as has happened at Occupy Wall Street and hundreds of other cities, presents an inherent threat to the system. The authorities can’t win no matter what they do.

They can’t do nothing. Tolerance signals legitimacy, even tacit approval of OWS and their message that rich individuals and big corporations have too much wealth and control over us. Can’t have that. Rupert Murdoch’s house organ, the New York Post, ran a front-page editorial on November 3rd screaming: “Enough!”

But crackdowns make the movement grow even bigger. A video of a NYPD official pepper-spraying four women at OWS without provocation inflamed public opinion and drew more people to Manhattan’s Zuccotti Park. An announced plan to evict OWS was scrapped after hundreds of people traveled there to gird for battle.

Speaking for New York’s business community as well as Murdoch, the Post editorialized: “Time’s up. The Zuccotti Park vagabonds have had their say—and trashed lower Manhattan—for long enough. They need to go. Be it voluntarily—by packing their tents and heading off in an orderly fashion. Or by having the NYPD step in—and evict them.” They blame OWSers for urinating outside. Which merely reminds New Yorkers how unresponsive their government is: there are no public restrooms in Manhattan.

You can smell the fear along with the pee.

Meanwhile, as politicians feel more pressure to crack heads, Occupations will have to move indoors. Freezing temperatures have arrived in New York and much of the country. Tensions will rise. As clashes with the authorities intensify, the ridiculous fetish of nonviolence—a faith-based tactic with no more basis in historical fact or reality than creationism—will be forgotten and, one day soon, laughed at.

(Ted Rall is the author of “The Anti-American Manifesto.” His website is tedrall.com.)

COPYRIGHT 2011 TED RALL

Know a Great iPod/Radio Alarm Clock?

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Ted Rall

I have a Tivoli Songbook alarm clock which works in every way except that its plastic casing is literally melting. No, I don’t live near the sun. It’s a design flaw, and Tivoli refuses to answer my queries about this obvious manufacturers defect, which is well documented online. The thing attracts hair and simply feels grrrrross.

So. I am shopping for a new alarm clock. Got a good recommendation? If so, please post below.

Here are my criteria:

Elegant midsized design
Large snooze button
iPod dock
AM/FM radio (preferably with ability to preset stations)
Decent sound quality
Nighttime display should not be bright (I have to sleep next to it)

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