Today's Stories

April 16, 2009

Mike Whitney
A Bulletin From the Captain of the Titantic

Russell Mokhiber
The Top 10 Enemies of Single-Payer

Ronald Teska
From Iraq to Appalachia

Gareth Porter
Predator Blowback

Paul Fitzgerald /
Elizabeth Gould
Thinking Like an Afghan

Benjamin Dangl
Latin America Changes

Robert Bryce
Another Ethanol Producer Goes Bust

April 15, 2009

Kathleen and Bill Christison
Solving Palestine While Israel Destroys It

Ray McGovern
W, the Torture Decider

Robert Sandels
Is There a Latin American Policy?

Heather Williams /
Paul Baker
Carbon Cap and Trade: How Wall Street will Game the Regs and Trash the Planet

Jack Willoughby
The Lessons of the S & L Crisis

David Swanson
Habeas at Bagram?

Paul Craig Roberts
94 Years of Serfdom

Sara Mann
Norman Rockwell and the Perils of Nostalgia

Kenneth Couesbouc
John Maynard's Martingale: How Keynes Got Rich

Binoy Kampmark
Tax Haven Hypocrisies

Kekuni Blaisdell, Lynette Hi'llani Cruz, George Kahumoku Flores, et al.: An Urgent Letter to Obama on the Rights of Native Hawaiians

Website of the Day
Taxa: the Paintings of Isabella Kirkland

April 14, 2009

Conn Hallinan
The Afghan Rubik's Cube

Mike Whitney
Why is Goldman Sachs So Scared of Mike Morgan?

Peter Morici
Taxing Grandma to Subsidize Goldman Sachs

Greg Moses
Economic Curveballs: the Laffer Posse

Fidel Castro
Obama's Cuba Policy: Not a Word About the Blockade

Robert Weissman
No Blank Check for the IMF

Rebecca Macaux /
Philip Primeau
Somali Piracy and American Foreign Policy

Carmelo Ruiz-Marrero
The Dubious Revoution: Biofuels, the Next Generation

Dave Lindorff
Snatch-and-Jail Justice: the Ugly War on Immigrants

Walter Brasch
The Resurrection of Intolerance

Benjamin Day
Why Has the Press Failed Us in Reporting on Health Care Reform?

Website of the Day
The Appraisal Bubble

April 13, 2009

Patrick Cockburn
Iraqi Militia Fear Reprisals After US Exit

Uri Avnery
Our Dissonance

Jeremy Scahill
A Test Case for Habeas Corpus: Will Obama Prosecute the Somali Pirate in a US Court?

Martha Rosenberg
Suicide Syndrome: Are VA Protocols Behind Iraq Vet Suicides?

Karl Grossman
A Radioactive Extension for Aging Nuclear Plants

Nadia Hijab
Still Waiting: Obama and American Muslims

Sam Smith
America's Cultural Bear Market

James McEnteer
Peru's Shining Example

Sean McMahon
Globalizing Politicide: Israel's Strikes on Sudan

Namihei Odaira
Makota's "Campaign Against Poverty"

John V. Walsh
Bossnapping

Website of the Day
Declining IRS Audits for Big Financial Houses

April 10 / 12, 2009

Alexander Cockburn
Resurrection and Revenge

Chris Floyd
Hope Abandoned: Obama Protects CIA Torture Memos

Mike Whitney
"Liquidate the Banks; Fire the Executives!" Warren's Devastating Report to Congress

Saul Landau
How the Media Bought the Surge

M. Reza Pirbhai
Obama's Afghanistan Plan and India-Pakistan Relations

Franklin Spinney
The Art of the Scam: Wall Street and the Pentagon

Rannie Amiri
Iran's Elections: Why Arab Leaders Want Ahmadinejad to Win

William Blum
The Ideology of Barack Obama

Matt Vidal
Why Card Check Would Help the Economy

Jeff Howison
Death of the Square Deal

Jeff Leys
Resisting the Af-Pak War: the Creech Air Base Arrests

Dave Lindorff
America's Imperial Wars: Why We Need to See the Horrors

Ramzy Baroud
Israel Investigated: But Will It Repent?

Missy Beattie
The Grateful Dead, Wounded and Displaced

Fred Gardner
Fakes Left, Goes Right: Obama's Crossover Dribble on Marijuana Policy

Harvey Wasserman Another $50 Billion for Rust Bucket Nukes?

Suzan Mazur
A Revolution in Biology: an Interview with Nobel Laureate Paul Nurse

Bernard Umbrecht
German Capitalists Take Fire

David Macaray
A Word Clooney, Hanks and Baldwin Should Learn: Solidarity

Janet Kauffman
How to Starve (or Feed) a River

Ron Jacobs
Daring to Struggle, Failing to Win

Norman Solomon
Getting a Death Grip on Memory

Michael Winship
Let the Railsplitter Awake!

Richard Rhames
Empire, Ennui and Extra Cheese

Wanda Fucha
Brother, Can You Spare a Million Bucks?

David Yearsley
My Journey to the Heart of Rahman

Lorenzo Wolff
Getting Beyond the Black-and-White: Jason Isbell's Challenging New Album

Ben Sonnenberg
Rossellini's Louis XIV: "Neither the Sun Nor Death Can be Gazed Upon Fixedly"

Jeffrey St. Clair
Savage Incongruities: the Photographic Life of Lee Miller

Poets' Basement
Corseri and Corzett

Website of the Weekend
The Palestine Chronicle Needs Your Help!

April 9, 2009

Mike Whitney
The Decade of Darkness

Patrick Cockburn
What It Would Take to Mend Fences with Islam

Stephen Soldz
Caught on Tape: Diagnostic Abuse of Veterans

P. Sainath
The Rise of the Shoe-cide Bomber

Ellen Cantarow
Israel's Master Plan for Transfer

Gareth Porter /
Jim Lobe
Obama and Israel's Threat to Strike Iran

Jeremy Scahill
How Many Democrats Will Stand Up Against Obama's Bloated Military Budget?

Jerry Kroth
Saving GM From Bankruptcy--With the Stroke of a Pen

Binoy Kampmark
Fujimori Convicted: A Measure of Justice in Latin America

Fidel Castro
My Meeting with the Black Caucus

Website of the Day
Bird Song Radio

April 8, 2009

John Prados
The Af-Pak Paradox

Bill Moyers /
Michael Winship
Changing the Rules of the Blame Game

Winslow T. Wheeler
The Tooth Fairy and the Defense Budget

Russell Mokhiber
PBS Lashes Back

Kathy Sanborn
Depression Fury

Rev. William E. Alberts
If the Shoe Fits: Bush and Al-Zaidi

James McEnteer Rashomon and the Binghamton Shooter: the Rush to Interpret Jiverly Wong's "Statement"

Nadia Hijab
Olmert's Nightmare

Adam Turl
Card Check on the Ropes

Kevin Zeese
Escaping the Drug War Quagmire

Website of the Day
Walk Score Your Neighborhood

April 7, 2009

David Price
Counterinsurgency's Free Ride

Uri Avnery
Who's the Boss?

Chris Floyd
Talking Peace in Prague, Dropping Bombs in Pakistan

Winslow T. Wheeler Defense Cuts: Gates and the System

Marjorie Cohn
Prosecuting the Bush Torture Team: Spain Leads the Way

Dean Baker
Hands Off Social Security

Diana Johnstone
NATO, Strasbourg and the Black Block

Dave Lindorff
Politicizing Accounting

Martha Rosenberg
Life on HBO's Factory Hog Farm

Evelyn Pringle
Motherhood and the Psycho-Pharmaceutical Complex

Website of the Day
Gaza: Closed Zone

April 6, 2009

Michael Hudson
The IMF Rules the World

Andy Worthington Bagram: Guantánamo's Dark Mirror

Ray McGovern
Profiles in Cowardice: Eric Holder and Colin Powell

Deepak Tripathi
The Pakistan Enigma

Mike Whitney
Bernanke's Financial Rescue Plan: a Glide-Path to Destitution

Norman Solomon
Meet the New Escalators: the Democrats and the Afghan War

Jonathan Cook
Israel Railways Accused of Racism in Firing of Arab Workers

Judith Bello
Justice for the Developmentally Disabled

Deena Metzger Blackwater in Liberia

Dr. M. Kamiar
"There's No 'Eye' in Iran:" Obama's Pronunciation Problem

Website of the Day
Prison Talk

April 3-5, 2009

Alexander Cockburn
From Twin Towers to Twin Camelots

Kathy Kelly /
Brian Terrall
Getting a Closer Look at the Killer Drones

Sue Sturgis
Fooling with Disaster? Startling Revelations About Three Mile Island Raise New Doubts Over Nuclear Plant Safety

Peter Morici
Girding for a Depression

Kathy Sanborn
Homeless in Tent City, USA

Andy Worthington
Britain's Guantánamo: Fact or Fiction?

Rob Larson
Subprime Supreme Court: The Roberts Court Has Become a Powerful New Tool for Business

Saul Landau
Biden and Nixon: a Tale of Two Latin American Experiences

Steve Early
An Evening with Andy Stern

John Goekler
Was Gaza Israel's Waterloo?

Rannie Amiri
Arab League Reconciliation Summit a Bust

Dave Lindorff
Hooray for Juries! A Courtroom Victory for Ward Churchill and Academic Free Speech

Lee Ballinger
Sound Garden: Tom Morello at the Grammy Museum

Ron Jacobs
Artifacts for Survival

David Macaray
AIG Plays the Sympathy Card

John Wight
G20: Capital's New World Symphony

Keeanga-Yamahtta Taylor
Race in the Obama Era

Mychal Bell
Surviving Jena Six

Missy Beattie
Hoop Hopes, War and Peace

Reza Fiyouzat
The Iran/US Rapproachment Dance

Michael Boldin
The War on Drugs is a War on You

Christopher Brauchli
The Pope's Batting 50-50

Charles R. Larson
Too Much Stuff

Susie Day
Bernie Breakout Shocker!!

Stephen Martin
Gordon Brown's Chicken Run at the G20

Kim Nicolini
"Last House on the Left:" Vigilantes of the Bourgeoisie

David Yearsley
Homage to Moog and Mallards

Phyllis Pollack
An Interview with Legendary Rock Producer Chris Kimsey on Working with the Stones, Ronnie Wood, Jimmy Cliff, Peter Tosh and Saint Jude

Poets' Basement
Foley, Valentine and Kozak

Website of the Day
The Corner Store

April 2, 2009

Robert Weissman
What If Obama Had Treated Detroit Like Wall Street?

Eric Toussaint /
Damien Millet
A G20 Meeting for Naught

George Bisharat
Israel's Impunity Must End

Russell Mokhiber
Something is Rotten at PBS

Franklin Lamb
Has Washington Lost Lebanon?

Gareth Porter
Settling Scores in Iraq: Maliki Draws US Troops into Crackdown on Sunni Rivals

David Macaray
Obama and the Ruling Class: "Only the Little People Pay Taxes"

Chris Genovali
B.C.'s Bloody Grizzly Hunt

Sam Smith
The Politics of Adulation

Suzan Mazur
Is Neo-Darwinism Dead?

Website of the Day
Fighting for Change in St. Louis

April 1, 2009

Chris Floyd
Surging Further Into the Afghan Abyss

Stanley Heller
Israeli War Crimes: Thank God, It Was Only Rumors

Mark Brenner, Mischa Gaus and Jane Slaughter Obama's Perilous Plan for Detroit: Restructure the Big 3, But Not With Bankruptcy

Jonathan Cook
The Slow Demise of Ehud Olmert

Eric Walberg
EU in Tatters: Only the Protesters Have Any Vision

Richard Morse
Why Haiti Can't Forget Its Past

Don Fitz
Guess Who Came to Dinner with a Match? Green Mayoral Candidate's Van Firebombed in St. Louis

Laray Polk
Texas and Evolution

Belén Fernández
12 Años de Soledad?

Harvey Wasserman
Cracking the Media Silence on Three Mile Island

Website of the Day
Pentagon Fraud Investigations Fell, While Contracts Soared

March 31, 2009

Uri Avnery
The Deception Tango

Peter Lee
Ghosts in the Machine: the World's Hottest Cyberwar Battlefield

Nicholas Dearden
A New Global Debt Crisis

Dave Lindorff
The Obama Betrayal

Joanne Mariner
"We'll Make You See Death"

Ron Jacobs
Obama's Pakistan Gambit

Wiliam S. Lind
Another Lost War

David Michael Green
Who Says the GOP Doesn't Have a Plan?

Benjamin Dangl
Beyond Elections in the Americas

Johnny Barber
Meditation in Orange

Dedrick Muhammad
Economic Inequality: the Foundation of the Racial Divide

Website of the Day
How the Obama Dems Took Over the Peace Movement

March 30, 2009

Michael Hudson
Financing the Empire: Do US Face G20 Mutiny?

Patrick Cockburn
What Next in Afghanistan?

Henry A. Giroux
Hard Lessons

Mike Whitney
Where's Eliot Spitzer Now That We Need Him?

Ralph Nader
Where's All the Money Coming From?

Paul Craig Roberts
Obama's War on the (Upper) Middle Class

Jeremy Scahill
The Logistical Nightmare in Iraq

Robert Bryce
The Cellulosic Ethanol Delusion

Jonathan Cook
Remembering Land Day in Palestine

Ray McGovern
Obama Bombs

Website of the Day
Hersh: Syria Calling

April 16, 2009

"The Foundations of Our Economy are Strong"

A Bulletin From the Captain of the Titanic

By MIKE WHITNEY

"We are starting to see glimmers of hope across the economy."

President Barack Obama, April press conference.

Retail sales fell in March as fearsome job losses and tighter credit conditions forced consumers to cut back sharply on discretionary spending. Nearly every sector is seeing declines including electronics, restaurants, furniture, sporting goods and building materials. Auto sales continue their nosedive despite aggressive promotions on new vehicles and $13 billion of aid from the federal government. The crash in housing, which began in July 2006, accelerated on the downside in March, falling 19 per cent year-over-year, signaling more pain ahead. Mortgage defaults are rising and foreclosures in 2009 are estimated to be in the 2.1 million range, an uptick of 400,000 from 2008. Consumer spending is down, housing is in a shambles, and industrial output dropped at an annual rate of 20 per cent, the largest quarterly decrease since VE Day. The system-wide contraction continues, with no sign of letting up.

Conditions in the broader economy are now vastly different than those on Wall Street, where the S&P 500 and the Dow Jones Industrials have rallied for 5 weeks straight, regaining more than 25 per cent of earlier losses. Fed chief Ben Bernanke's $13 trillion in monetary stimulus has triggered a rebound in the stock market while Main Street continues to languish on life-support, waiting for Obama's $787 billion fiscal stimulus to kick in and compensate for falling demand and rising unemployment. The rally on Wall Street indicates that Bernanke's flood of liquidity is creating a bubble in stocks since present values do not reflect underlying conditions in the economy.

The financial media are abuzz with talk of a recovery as equities inch their way higher every week. CNBC's Jim Cramer, the hyperventilating ringleader of "Fast Money", announced last week, "I am pronouncing the depression is over." Cramer and his clatter of media cheerleaders ignore the fact that every sector of the financial system is now propped up with Fed loans and T-Bills, without which the fictive free market would collapse in a heap. For 19 months, Bernanke has kept a steady stream of liquidity flowing from the vault at the US Treasury to the NYSE in downtown Manhattan. The Fed has recapitalized financial institutions via its low interest rates, its multi-trillion dollar lending facilities, and its direct purchase of US sovereign debt and Fannie Mae mortgage-backed securities. The Fed's balance sheet has become a dumping ground for all manner of toxic waste and putrid debt-instruments for which there is no active market. When foreign central banks and investors realize that US currency is backed by dodgy subprime collateral, there will be a run on the dollar followed by a stampede out of US equities. Even so, Bernanke assures his critics that "the foundations of our economy are strong".

As for the recovery, market analyst Edward Harrison sums it up like this:

“This is a fake recovery because the underlying systemic issues in the financial sector are being papered over through various mechanisms designed to surreptitiously recapitalize banks while monetary and fiscal stimulus induces a rebound before many banks' inherent insolvency becomes a problem. This means the banking system will remain weak even after recovery takes hold. The likely result of the weak system will be a relapse into a depression-like circumstances once the temporary salve of stimulus has worn off. Note that this does not preclude stocks from large rallies or a new bull market from forming because as unsustainable as the recovery may be, it will be a recovery nonetheless." (Edward Harrison, "The Fake Recovery", Credit Writedowns)

The rally in the stock market will not fix the banking system, slow the crash in housing, patch-together tattered household balance sheets, repair failing industries or reverse the precipitous decline in consumer confidence. The rising stock market merely indicates that speculators are back in business taking advantage of the Fed's lavish capital injections which are propelling equities into the stratosphere. Meanwhile, the unemployment lines continue to swell, the food banks to run dry and the homeless shelters to burst at the seams. So far, $12 trillion has been pumped into the financial system while less than $450 billion fiscal stimulus has gone to the "real" economy where  workers are struggling just to keep food on the table. The Fed's priorities are directed at the investor class not the average working Joe. Bernanke is trying to keep Wall Street happy by goosing asset values with cheap capital, but the increases to the money supply are putting more downward pressure on the dollar. The Fed chief has also begun purchasing US Treasuries, which is the equivalent of writing a check to oneself to cover an overdraft in one's own account. This is the kind of gibberish that passes as sound economic policy. The Fed is incapable if fixing the problem because the Fed is the problem.

Last week, the market shot up on news that Wells Fargo's first quarter net income rose 50 per cent to $3 billion, pushing the stock up 30 percent in one session. The financial media celebrated the triumph in typical manner by congratulating everyone and announcing that a market "bottom" had been reached. The news on Wells Fargo was repeated ad nauseam for two days even though everyone knows that the big banks are holding hundreds of billions in mortgage-backed assets which are marked way above their true value and that gigantic losses are forthcoming. Naturally, the skeptics were kept off-camera or lambasted by toothy anchors as doomsayers and Cassandras. Regrettably, creative accounting and media spin can only work for so long. Eventually the banks will have to write down their losses and raise more capital.  Wells Fargo slipped the noose this time, but next time might not be so lucky.  Bloomberg sums up Wells Fargo’s  situation:

"Wells Fargo & Co., the second biggest U.S. home lender, may need $50 billion to pay back the federal government and cover loan losses as the economic slump deepens, according to KBW Inc.’s Frederick Cannon.

KBW expects $120 billion of “stress” losses at Wells Fargo, assuming the recession continues through the first quarter of 2010 and unemployment reaches 12 percent, Cannon wrote today in a report. The San Francisco-based bank may need to raise $25 billion on top of the $25 billion it owes the U.S. Treasury for the industry bailout plan, he wrote.

“Details were scarce and we believe that much of the positive news in the preliminary results had to do with merger accounting, revised accounting standards and mortgage default moratoriums, rather than underlying trends,” wrote Cannon, who downgraded the shares to “underperform” from “market perform.” “We expect earnings and capital to be under pressure due to continued economic weakness.”

What happened to all those nonperforming loans and garbage MBS? Did they simply vanish into the New York ether? Could Wells sudden good fortune have something to do with the recent FASB changes to accounting guidelines on "mark to market" which allow banks greater flexibility in assigning a value to their assets? Also, Judging by the charts on the Internet, Wells appears to have the smallest "ratio of loan loss reserves" of the four biggest banks. That's hardly reassuring.

Paul Krugman takes an equally skeptical view of the Wells Fargo report:

"About those great numbers from Wells Fargo....remember, reported profits aren’t a hard number; they involve a lot of assumptions. And at least some analysts are saying that the Wells assumptions about loan losses look, um, odd. Maybe, maybe not; but you do have to say that it would be awfully convenient for banks to sound the all clear right now, just when the question of how tough the Obama administration will really get is hanging in the balance."

The banks are all playing the same game of hide-n-seek, trying to hoodwink the public into thinking they are in a stronger capital position than they really are. It's just more Wall Street chicanery papered over with vapid media propaganda. The giant brokerage houses and the financial media are two spokes on the same wheel whirling round in sync. Unfortunately, media fanfare and massaging the numbers won't pull the economy out of its downward spiral or bring about a long-term recovery. That will take fiscal policy, jobs programs, debt relief, mortgage writedowns and a progressive plan to rebuild the nation's economy on a solid foundation of productivity and regular wage increases. So far, the Obama administration has focused all its attention and resources on the financial system rather than working people. That won't fix the problem.

Deflation is sinking its teeth into  the economy. Food and fuel prices fell in March by 0.1 per cent while unemployment continued its slide towards 10 per cent. Wholesale prices fell by the most in the last 12 months since 1950. According to MarketWatch, "Industrial production is down 13.3 per cent since the recession began in December 2007, the largest percentage decline since the end of World War II"....The capacity utilization rate for total industry fell further to 69.3 percent, a historical low for this series, which begins in 1967." (Federal Reserve) The persistent fall in housing prices (30 percent) and losses in home equity only add to deflationary pressures. The wind is exiting the humongous credit bubble in one great gust.

Obama's $787 billion stimulus is too small to take up the slack in a $14 trillion per year economy where manufacturing and industrial capacity have slipped to record lows and unemployment is rising at 650,000 per month. High unemployment is lethal to an economy where consumer spending is 72 percent of GDP. Without debt relief and mortgage cram-downs, consumption will sputter and corporate profits will continue to shrink. S&P 500 companies have already seen a 37 percent drop in corporate profits. Unless the underlying issues of debt relief and wages are dealt with, the present trends will persist. Growth is impossible when workers are broke and can't afford to buy the things the make.

The stimulus must be increased to a size where it can do boost economic activity and create enough jobs to get over the hump. Yale economics professor Robert Schiller makes the case for more stimulus  in his Bloomberg commentary on Tuesday:

"In the Great Depression ... the U.S. government had a great deal of trouble maintaining its commitment to economic stimulus. 'Pump- priming' was talked about and tried, but not consistently. The Depression could have been mostly prevented, but wasn’t.... In the face of a similar Depression-era psychology today, we are in need of massive pump-priming again.

It would be a shame if we are so overwhelmed by anger at the unfairness of it all that we do not take the positive measures needed to restore us to full employment. That would not just be unfair to the U.S. taxpayer. That would be unfair to those who are living in Hoovervilles...; it would be unfair to those who are being evicted from their homes, and can’t find new ones because they can’t find jobs. That would be unfair to those who have to drop out of school because they, or their parents, can’t find jobs.

It is time to face up to what needs to be done. The sticker shock involved will be large, but the costs in terms of lost output of not meeting either the credit target or the aggregate demand target will be yet larger." (Robert Schiller, Depression Lurks unless there's more Stimulus, Bloomberg)

Even though industrial production, manufacturing, retail and housing are in freefall, the talk on Wall Street still focuses on the elusive recovery. The S&P 500 touched bottom at 666 on March 6 and has since retraced its steps to 852. Clearly, Bernanke's capital injections have played a major role in the turnabout. Former Secretary of Labor under Bill Clinton and economics professor at UC Berkeley, Robert Reich, explains it like this on his blog-site:

"All of these pieces of upbeat news are connected by one fact: the flood of money the Fed has been releasing into the economy. ... So much money is sloshing around the economy that its price is bound to drop. And cheap money is bound to induce some borrowing. The real question is whether this means an economic turnaround. The answer is it doesn't.

Cheap money, you may remember, got us into this mess. Six years ago, the Fed (Alan Greenspan et al) lowered interest rates to 1 percent.... The large lenders did exactly what they could be expected to do with free money -- get as much of it as possible and then lent it out to anyone who could stand up straight (and many who couldn't). With no regulators looking over their shoulders, they got away with the financial equivalent of murder.

The only economic fundamental that's changed since then is that so many people got so badly burned that the trust necessary for consumers, investors, and businesses to repeat what they did then has vanished.... yes, some consumers will refinance and use the extra money they extract from their homes to spend again. But most will use the extra money to pay off debt and start saving again, as they did years ago....

I admire cockeyed optimism, and I understand why Wall Street and its spokespeople want to see a return of the bull market. Hell, everyone with a stock portfolio wants to see it grow again. But wishing for something is different from getting it. And cockeyed optimism can wreak enormous damage on an economy. Haven't we already learned this? (Robert Reich's Blog, "Why We're Not at the Beginning of the End, and Probably Not Even At the End of the Beginning")

If the purpose of Bernanke's grand economics experiment was to create uneven inflation in the equities markets and, thus, widen the chasm between the financials and the real economy; he seems to have succeeded. But for how long? How long will it be before foreign banks and investors realize that the Fed's innocuous-sounding "lending facilities"  have released a wave of low interest speculative liquidity into the capital markets? How else does one explain soaring stocks when industrial capacity, manufacturing, exports, corporate profits, retail and every other sector have been pounded into rubble? Liquidity is never inert. It navigates the financial system like mercury in water darting elusively to the area which offers the greatest opportunity for profit. That's why the surge popped up first in the stock market. When it spills into commodities--and oil and food prices rise--Bernanke will realize his plan has backfired..

Bernanke's financial rescue plan is a disaster. He should have spent a little less time with Milton Friedman and a little more with Karl Marx. It was Marx who uncovered the root of all financial crises. He summed it up like this:

"The ultimate reason for all real crises always remains the poverty and restricted consumption of the masses as opposed to the drive of capitalist production to develop the productive forces as though only the absolute consuming power of society constituted their limit." (Karl Marx, Capital, vol. 3, New York International publishers, 1967.)

Bingo. Message to Bernanke: Workers need debt-relief and a raise in pay not bigger bailouts for chiseling fatcat banksters.

Mike Whitney lives in Washington state. He can be reached at fergiewhitney@msn.com

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