—A. A. KHANDRUEV
The Great Soviet Encyclopedia, 3rd Edition (1970-1979)

In capitalist society, providing it develops under the most favourable conditions, we have a more or less complete democracy in the democratic republic. But this democracy is always hemmed in by the narrow limits set by capitalist exploitation, and consequently always remains, in effect, a democracy for the minority, only for the propertied classes, only for the rich. Freedom in capitalist society always remains about the same as it was in the ancient Greek republics: freedom for the slave-owners. Owing to the conditions of capitalist exploitation, the modern wage slaves are so crushed by want and poverty that "they cannot be bothered with democracy", "cannot be bothered with politics"; in the ordinary, peaceful course of events, the majority of the population is debarred from participation in public and political life.

Democracy for an insignificant minority, democracy for the rich — that is the democracy of capitalist society. If we look more closely into the machinery of capitalist democracy, we see everywhere, in the "petty" — supposedly petty — details of the suffrage (residential qualifications, exclusion of women, etc.), in the technique of the representative institutions, in the actual obstacles to the right of assembly (public buildings are not for "paupers"!), in the purely capitalist organization of the daily press, etc., etc., — we see restriction after restriction upon democracy. These restrictions, exceptions, exclusions, obstacles for the poor seem slight, especially in the eyes of one who has never known want himself and has never been inclose contact with the oppressed classes in their mass life (and nine out of 10, if not 99 out of 100, bourgeois publicists and politicians come under this category); but in their sum total these restrictions exclude and squeeze out the poor from politics, from active participation in democracy.

V.I. Lenin
The State and Revolution
Chapter 5: The Economic Basis of the Withering Away of the State

George Soros on the Coming U.S. Class War
by John Arlidge
Newsweek
January 23, 2012
You know George Soros. He's the investor's investor-the man who still holds the record for making more money in a single day's trading than anyone. He pocketed $1 billion betting against the British pound on "Black Wednesday" in 1992, when sterling lost 20 percent of its value in less than 24 hours and crashed out of the European exchange-rate mechanism. No wonder Brits call him, with a mix of awe and annoyance, "the man who broke the Bank of England."

Soros doesn't make small bets on anything. Beyond the markets, he has plowed billions of dollars of his own money into promoting political freedom in Eastern Europe and other causes. He bet against the Bush White House, becoming a hate magnet for the right that persists to this day. So, as Soros and the world's movers once again converge on Davos, Switzerland, for the World Economic Forum this week, what is one of the world's highest-stakes economic gamblers betting on now?

He's not. For the first time in his 60-year career, Soros, now 81, admits he is not sure what to do. "It's very hard to know how you can be right, given the damage that was done during the boom years," Soros says. He won't discuss his portfolio, lest anyone think he's talking things down to make a buck. But people who know him well say he advocates making long-term stock picks with solid companies, avoiding gold—"the ultimate bubble"—and, mainly, holding cash.

He's not even doing the one thing that you would expect from a man who knows a crippled currency when he sees one: shorting the euro, and perhaps even the U.S. dollar, to hell. Quite the reverse. He backs the beleaguered euro, publicly urging European leaders to do whatever it takes to ensure its survival. "The euro must survive because the alternative—a breakup—would cause a meltdown that Europe, the world, can't afford." He has bought about $2 billion in European bonds, mainly Italian, from MF Global Holdings Ltd., the securities firm run by former Goldman Sachs head Jon Corzine that filed for bankruptcy protection last October...

"At times like these, survival is the most important thing," he says, peering through his owlish glasses and brushing wisps of gray hair off his forehead. He doesn't just mean it's time to protect your assets. He means it's time to stave off disaster. As he sees it, the world faces one of the most dangerous periods of modern history-a period of "evil." Europe is confronting a descent into chaos and conflict. In America he predicts riots on the streets that will lead to a brutal clampdown that will dramatically curtail civil liberties. The global economic system could even collapse altogether...

More than any other political figure, it was Ronald Reagan who put America on its present course toward stunning income inequality and into a brave new world of deregulated industries, which were then able to exploit lax government controls to devastate the economy.

It was Reagan who experimented with "supply side economics" which held that slashing the top marginal tax rates for the rich by half or more would eliminate the federal deficit and supposedly help everyone by letting the extra money at the top trickle down.

It was Reagan who declared that "government is the problem" and convinced many middle-class Americans - especially white men - that they should despise "big government" as a threat to their liberty and trust their financial security to the kindness, wisdom and generosity of corporate chieftains.

It was Reagan who demanded a massive reinvestment in the U.S. military, even as America's principal adversary, the Soviet Union, was in rapid decline. Reagan also allied the United States with some of the world's most brutal regimes and insurgent movements, as long as they identified themselves as "anti-communist."

It also was Reagan who transformed the Republican Party into a political organization disdainful of science and empiricism - and devoted to retaining its power at almost any price. For Reagan and his P.R. team, the goal was always "perception management," controlling how average Americans saw the world, not how it actually was.

Though it may be true that the current crop of Republicans is even more extreme than Reagan, that is mostly because today's GOPers have dropped the few nuances that Reagan retained because of the political constraints that he faced. Three decades into Reagan's transformation of America, the Right's accumulated power has allowed the embrace of even more radical positions...

The corporate barbarians are through the gate of American democracy. Not satisfied with their all-pervasive influence on our culture, economy and legislative processes, they want more. They want it all...

2012— Where do we go from here?
by Senator Bernie Sanders
Green Mountain Daily
December 29, 2011

The year 2011 has been a tough one for Vermont and our country. The recession caused by the greed, recklessness and illegal behavior of Wall Street continues. While Vermont is doing better economically than much of the country, too many of our friends and neighbors are unemployed or underemployed or are earning less than they need to adequately support their families...

It is no secret that the people of our country are angry and frustrated with Washington and their government. They correctly perceive that we face enormous problems: a collapsing middle class, increased poverty and a growing gap between the very rich and everyone else; sky-high unemployment; 50 million Americans without health insurance; a deteriorating infrastructure; the continued loss of our manufacturing capabilities; the ongoing mortgage and student loan crises, and the planetary challenge of global warming. And on top of all of that, we have a $15 trillion dollar national debt.

The American people want action. They want their government to start representing the 99 percent, not just the top 1 percent. With that goal in mind, let me say a few words about some of the issues that I will be working on when Congress reconvenes in January...

The economy? It's still Bush's fault
by Chris Cillizza and Aaron Blake
The Washington Post
January 18, 2012

A majority of Americans believe that former President George W. Bush is more responsible than President Obama for the current economic problems in the country, according to a new Washington Post-ABC News poll.

Fifty-four percent of respondents said that Bush was more to blame while 29 percent put the blame on Obama; 9 percent said both men deserved blame while 6 percent said neither did. Among registered voters, the numbers are almost identical; 54 percent blame Bush, while 30 percent blame Obama.

Independents, widely considered the most critical voting bloc this fall, continue to blame Bush far more than Obama for the economic troubles. Fifty-seven percent of unaffiliated voters put the blame on the former Republican president, while 25 percent believe the blame rests more with Obama...

WASHINGTON, DC — Santa Claus came early this year for four former executives of Washington Mutual (WaMu), a large US bank that failed in fall 2008. The Federal Deposit Insurance Corporation (FDIC) had brought a lawsuit against the four, actions that included taking huge financial risks while "knowing that the real estate market was in a ‘bubble.'"...

To be sure, the executives lost their jobs and now must drop claims for additional compensation. But, according to the FDIC, the four still earned more than $95 million from January 2005 through September 2008. So they are walking away with a great deal of cash...

At the same time, their actions — and similar actions by other bankers — are directly responsible for both the run-up in housing prices and the damaging collapse that followed. That collapse has impacted non-bankers in many negative ways, including through the loss of more than eight million jobs...

But what about government support for the big banks? Is this contracting in the light of our current fiscal pressures? Unfortunately, it is not; much government support remains, implicitly through allowing banks to be "too big to fail," and explicitly through various kinds of backing provided by the Federal Reserve...

The protesters of "Occupy Albany" issued a powerful consensus statement recently, which reads in part:

"The interests of those who purchase influence are rewarded at the expense of the People, from whom the government's just power is derived. We believe that this failure in our system is at the core of many interconnected issues we face as a society, and its resolution is key to a just future. We therefore demand true democracy, decoupled from the corrosive influence of concentrated economic power, and we call all who share in this common goal to stand with us and take action toward this end."

Big banks represent the ultimate in concentrated economic power in today's economies. They are able to resist all meaningful reform that could really change their compensation schemes. Their executives want to get all the upside while facing none of the true downside.

But capitalism without the prospect of failure is not any kind of market economy. We are running a large-scale, nontransparent, and dangerous government subsidy scheme for the benefit primarily of a very few, extremely wealthy people...

We should learn from both the WaMu and the Occupy movement. In both cases, the lesson is the same: concentrated financial power is a gift that keeps on giving — but not to you.

This year has witnessed a global wave of social and political turmoil and instability, with masses of people pouring into the real and virtual streets: the Arab Spring; riots in London; Israel's middle-class protests against high housing prices and an inflationary squeeze on living standards; protesting Chilean students; the destruction in Germany of the expensive cars of "fat cats"; India's movement against corruption; mounting unhappiness with corruption and inequality in China; and now the "Occupy Wall Street" movement in New York and across the United States.

While these protests have no unified theme, they express in different ways the serious concerns of the world's working and middle classes about their prospects in the face of the growing concentration of power among economic, financial, and political elites. The causes of their concern are clear enough: high unemployment and underemployment in advanced and emerging economies; inadequate skills and education for young people and workers to compete in a globalized world; resentment against corruption, including legalized forms like lobbying; and a sharp rise in income and wealth inequality in advanced and fast-growing emerging-market economies.

Of course, the malaise that so many people feel cannot be reduced to one factor. For example, the rise in inequality has many causes: the addition of 2.3 billion Chinese and Indians to the global labor force, which is reducing the jobs and wages of unskilled blue-collar and off-shorable white-collar workers in advanced economies; skill-biased technological change; winner-take-all effects; early emergence of income and wealth disparities in rapidly growing, previously low-income economies; and less progressive taxation...

The problem is not new. Karl Marx oversold socialism, but he was right in claiming that globalization, unfettered financial capitalism, and redistribution of income and wealth from labor to capital could lead capitalism to self-destruct. As he argued, unregulated capitalism can lead to regular bouts of over-capacity, under-consumption, and the recurrence of destructive financial crises, fueled by credit bubbles and asset-price booms and busts...

Thirty large and profitable U.S. corporations paid no income taxes in 2008 through 2010, said a study on Thursday that arrives as Congress faces rising demands for tax reform but seems unable or unwilling to act.

Pepco Holdings Inc , a Washington, D.C.-area power company, had the lowest effective tax rate, at negative 57.6 percent, among the 280 Fortune 500 companies studied.

The statutory U.S. corporate income tax rate is 35 percent, one of the highest in the world; but over the 2008-2010 period, very few of the companies studied paid it, said the report.

The average effective tax rate for the companies over the period was 18.5 percent, said Citizens for Tax Justice and the Institute on Taxation and Economic Policy, both think tanks.

Their report also listed General Electric Co , Paccar Inc , PG&E Corp , Computer Sciences Corp , Boeing Co and NiSource Inc as among the 30 that paid no taxes.

Corporations will say rightly that the loopholes that let them slash their taxes were perfectly legal, the report said.

"But that does not mean that low-tax corporations bear no responsibility ... The laws were not enacted in a vacuum; they were adopted in response to relentless corporate lobbying, threats and campaign support," the report said...

WASHINGTON — Despite a pledge not to take money from lobbyists, President Obama has relied on prominent supporters who are active in the lobbying industry to raise millions of dollars for his re-election bid.

At least 15 of Mr. Obama's "bundlers" — supporters who contribute their own money to his campaign and solicit it from others — are involved in lobbying for Washington consulting shops or private companies. They have raised more than $5 million so far for the campaign.

Because the bundlers are not registered as lobbyists with the Senate, the Obama campaign has managed to avoid running afoul of its self-imposed ban on taking money from lobbyists.

But registered or not, the bundlers are in many ways indistinguishable from people who fit the technical definition of a lobbyist. They glide easily through the corridors of power in Washington, with a number of them hosting Mr. Obama at fund-raisers while also visiting the White House on policy matters and official business.

As both a candidate and as president, Mr. Obama has vowed to curb what he calls the corrupting influence of lobbyists, barring them not only from contributing to his campaign but also from holding jobs in his administration. While lobbyists grouse about the rules, ethics watchdogs credit the changes with raising ethical standards in Washington.

But the prevalence of major Obama fund-raisers who also work in the lobbying arena threatens to undercut the president's ethics push, raising questions about whether the campaign's policies square with its on-the-ground practices, some of those same watchdogs say...

But I remember following Obama on the campaign trail and hearing all sorts of promises before union-heavy crowds. He said he would raise the minimum wage every year; he said he would fight free-trade agreements. He also talked about repealing the Bush tax cuts and ending tax breaks for companies that move jobs overseas.

It's not just that he hasn't done those things. The more important thing is that the people he's surrounded himself with are not labor people, but stooges from Wall Street. Barack Obama has as his chief of staff a former top-ranking executive from one of the most grossly corrupt mega-companies on earth, JP Morgan Chase. He sees Bill Daley in his own office every day, yet when it comes time to talk abut labor issues, he has to go out and make selected visits twice a year or whatever to the Richard Trumkas of the world.

Listening to Obama talk about jobs and shared prosperity yesterday reminded me that we are back in campaign mode and Barack Obama has started doing again what he does best - play the part of a progressive. He's good at it. It sounds like he has a natural affinity for union workers and ordinary people when he makes these speeches. But his policies are crafted by representatives of corporate/financial America, who happen to entirely make up his inner circle.

I just don't believe this guy anymore, and it's become almost painful to listen to him...

The top six financial institutions in this country own assets equal to more than 60 percent of our gross domestic product and possess enormous economic and political power. One of the great questions of our time is whether the American people, through Congress, will control the greed, recklessness and illegal behavior on Wall Street, or whether Wall Street will continue to wreak havoc on our economy and the lives of working families.

I represent Vermont, where many workers drive long distances to jobs that pay $12 an hour or less. Many seniors living on fixed incomes heat their homes with oil during our cold winters. These people have asked me to do all that I can to lower outrageously high gasoline and heating-oil prices. I intend to do just that.

Why have oil prices spiked wildly? Some argue that the volatility is a result of supply-and-demand fundamentals. More and more observers, however, believe that excessive speculation in the oil futures market by investors is driving oil prices sky high.

A June 2 article in the Wall Street Journal said it all: "Wall Street is tapping a real gusher in 2011, as heightened volatility and higher prices of oil and other raw materials boost banks' profits." ExxonMobil Chairman Rex Tillerson, testifying before a Senate panel this year, said that excessive speculation may have increased oil prices by as much as 40 percent. Delta Air Lines general counsel Richard Hirst wrote to federal regulators in December that "the speculative bubble in oil prices has concrete detrimental consequences for the real economy." An American Trucking Association vice president, Richard Moskowitz, said, "Excessive speculation has caused dramatic increases in the price of crude oil, which harms end-users like America's trucking industry."

I released records last month that documented the role of speculators and put the information on my Web site for three reasons...
Michael Moore posted this on his blog yesterday... this is a brilliant history lesson, and there is much more about it at the link...

30 Years Ago Today: The Day the Middle Class Died

From time to time, someone under 30 will ask me, "When did this all begin, America's downward slide?" They say they've heard of a time when working people could raise a family and send the kids to college on just one parent's income (and that college in states like California and New York was almost free). That anyone who wanted a decent paying job could get one. That people only worked five days a week, eight hours a day, got the whole weekend off and had a paid vacation every summer. That many jobs were union jobs, from baggers at the grocery store to the guy painting your house, and this meant that no matter how "lowly" your job was you had guarantees of a pension, occasional raises, health insurance and someone to stick up for you if you were unfairly treated.