Today's Stories

November 27 - 29, 2009

Carl Ginsburg
Planning for Poverty?

Joshua Frank
Coal Kills

David Macaray
Adventures in Polarization

November 26, 2009

Vijay Prashad
Mumbai in the Shadow of Kashmir

Greg Moses
We Remember the Popol Vuh

Jayne Lyn Stahl
How About a War on Poverty Instead?

Jeff Cohen
Get Ready for the Obama / GOP Alliance

John Blair
The Gasification of Indiana

Ann Robertson /
Bill Leumer
A Surge in Demands on Goverment for Jobs

Farzana Versey
The American East India Company

Sam Husseini
Moral Relativism at Fort Hood: Guilt, Therapy and the System

Tom Mountain
The Truth Behind the Turkey

Website of the Day
A Thanksgiving Prayer by William S. Burroughs

November 25, 2009

Dave Lindorff
The Bush-Blair Conspiracy on Iraq

Marjorie Cohn
The Case of Lynn Stewart

Belén Fernández
An Interview with Honduran Coup General Romeo Vásquez Velásquez

Ralph Nader
Weak-Kneed in China

Rannie Amiri
The Impending Release of Gilad Shalit: What Palestinians Deserve in Return

Missy Beattie
Finish the Job?

Rob Stone, MD Health Care Delusions: Better Than Nothing?

Norm Kent
In Praise of Adam Lambert

Binoy Kampmark Handing It to France: the Sporting Trial of Thierry Henry

Ron Ridenour
International Support for Sri Lanka

Website of the Day
The Credit Card Game

November 24, 2009

Mary Lynn Cramer
Health Care Reform and the Skinning of Seniors

Dean Baker
Too Big to Kill? The Vampire Banks Rise Again

George Ciccariello-Maher
Occupy Everything! Behind the Privatization of the UC, a Riot Squad of Police

Eric Walberg
Canada's Guantanamo

Andy Thayer
Lessons From a Lynching: the Murder of Jorge Steven Lopez-Mercado

David Macaray
The Delphi Incident: How the White-Collar Tribe Got Shafted

Laura Carlsen
The Perils of Plan Mexico

Gary Leupp
Obama as Hamlet

Adam Federman
Poisoning Dimock

William S. Lind Mission Creep: Counter-Insurgency in Salinas?

Website of the Day
Geography of the Recession

November 23, 2009

Paul Craig Roberts
A Trial That Will Convict Us All

Jonathan Cook
Have Israeli Spies Infiltrated International Aiports?

Edward S. Herman / David Peterson
Vulliamy's Smears

Bouthaina Shaaban
What's New? It's Always Been Like This

Helen Redmond
Health Care's Historic Flop

Rannie Amiri
Saudi Arabia's Attack on Yemen

Dave Lindorff
Abortion and Health Care

Rev. William E. Alberts
The Self-Delusionary American Tragedy

Mike Whitney
Is American Casino the Best Picture of the Year?

Mark Weisbrot
Honduran Dictatorship is a Threat to Democracy in the Hemisphere

David Michael Green
The Placeholder Presidency of Obama

November 20-22, 2009

Alexander Cockburn
CounterPunch Diary
It's Show Trial Time!

Gareth Porter
New Light on the Qom Facility

Mike Whitney
The Great Stimulus Debate of '09: Crybabies need not apply

Fred Gardner
Mammography
Pushes Back

James J. Brittain
It's Really a War on the Poor
A War on Coca Nobody Believes

Jonathan Cook
Rabbi Followers 'Terror Cell in Parliament'

Alan Farago
Bulletin from the Dark Side: Florida's Republican Ultras

David Macaray
A Hindu Version of the UAW
Labor Strife in India

Binoy Kampmark
The Israeli Exception: Gilo and East Jerusalem

Ben Sonnenberg
Ashes and Diamonds
Retirement Norwegian Style

Ron Jacobs
Judge Roy Bean Takes Manhattan

David Yearsley
200,000 Testicles Offered Up to the Gods of Song

Brenda Norrell
A Border Runs Through Them:
The Struggles of the Tohono O'odham

Ron Ridenour
The Tamils and Equal Rights of Self Determination

November 19, 2009

Christopher Ketcham
The Dumbest Newspapers at the Center of the World

Shamus Cooke
A Fraudulent Jobs Summit

John V. Walsh
Impotent in China

Saul Landau
Dissidents Make Noise--Oops, News

Ralph Nader
Exiting Afghanistan

Nikolas Kozloff
Blackout in Brazil

Fred Gardner
Reputable MDs Buy NorCal Health Care

Charles R. Larson
Voices of the Silenced

John A. Murphy
Nader v. Dodd

Jayne Lyn Stahl
Obama's Gray World

November 18, 2009

Uri Avnery
A Religious Scoundrel

John Ross
Hot Oil!

Conn Hallinan
Strategic Towns: Why Gen. McChrystal's Plan Will Fail

Mike Whitney
Obama's China Junket

Ray McGovern
The Bogus Success of the Surge

Nelson P. Valdés
Cyber Cuba: Internet, Broadband and Foreign Policy

Ramzy Baroud
Globalization Unchecked

Ron Ridenour
Tamil Eelam: the Historic Right to Nationhood

November 17, 2009

Mike Whitney
Let's Get Fiscal

Jayne Lyn Stahl
Double Crossed: War Vets Deported

Brian M. Downing
Do They Subscribe to GQ at the Pentagon?

Jonathan Cook
Israel's Two-Tiered Justice System

Joanne Mariner
A First Look at the Military Commisions Act

Dean Baker
Obama's Nuclear Option on the Yuan

Martha Rosenberg
Pig Hell at Wal-Mart Supplier

Danny Weil
Fear in Nicaragua

David Macaray
Retail Sales as Combat

Laura Flanders
Buried Bonanza for Over-Builders

Walter Brasch
Rush to Judgment on Terror Trials

November 16, 2009

Alan Nasser
Obama's Flawed Case Against Single Payer

Jonathan Cook
Campus Watch Copy Cats

Mark Weisbrot
Obama, China and the Dollar

Carol Miller
We Need Health Care, Not Insurance

Gary Leupp
The Andolan in Kathmandu and the Revolution to Follow

Harry Clark
Justice Goldstone at Brandeis

Ray McGovern
Shining a Light on the Roots of Terrorism

Norman Solomon
California Democrats Urge Obama to Leave Afghanistan

Ron Ridenour
Genocide in Sri Lanka

Norm Kent
Doctors Light Up

Brenda Norrell
Torture Resisters Arrested at Fort Huachuca

November 13-15, 2009

Alexander Cockburn
A Man in a Hundred

Patrick Cockburn
Meet Our Afghan Ally: Stealing Money, Selling Heroin and Raping Boys

Tariq Ali
Short Cuts in Afghanistan

Douglas Lummis
Obama, Hatoyama and Okinawa

Vijay Prashad
Can the Major Speak?

Carl Ginsburg
Cornering the Market on Ambition

Manuel García, Jr.
The Purpose is Pork

Rannie Amiri
The Disastrous Presidency of Mahmoud Abbas

Mary Lynn Cramer
Death By Denial: the Militarization of Mental Health

Fred Gardner
Pot Doc Down

Dave Lindorff
Health Care Reform: DOA

Robert Jensen
How I Stopped Hating Thanksgiving and Learned to be Afraid

David Macaray
Wal-Mart Death Stampede Revisited

Corporate Crime Reporter
Exposing Timberland: Nike Foe Jeff Ballinger Zeros in on a New Target

Ron Jacobs
No More Star Spangled Eyes

David Model
NATO's Chimerical Enemy in Afghanistan

John V. Walsh
Godless China: What Obama Will Find

Jon Mitchell
Beggars' Belief

Stuart Easterling
Blaming the Narcos in Mexico

Dan Bacher
Big Oil Takes Over Marine "Protection" in California

Franklin Lamb
Lebanese Students Advise Obama on How to Get It Right

Farzana Versey
Moderns, Models and Martyrs

Charles R. Larson
War, Peace and Paramilitaries in Colombia

Saul Landau
The Coen Bros. Brutalize Job

David Yearsley
When the Cirque Meets the Beatles

Lorenzo Wolff
At the Side of the Frontman

Poets' Basement
Blaine, Rivas and Cox

November 12, 2009

Robert Weissman
Maniacal Deregulation

Franklin Spinney
The Afghan War Question

Nadia Hijab
After Fort Hood

Afshin Rattansi
Night Vision: Why US Sanctions on Syria Will Kill American Soldiers

Paul Craig Roberts
America's Dismal Future

Ralph Nader
Failing the People on Health Care

Belén Fernández
Tourists of the Honduran Counter-Revolution

Allan J. Lichtman
A National Peacemaker's Day

Dave Lindorff
President Peacenik's War

Jayne Lyn Stahl
Headline of the Year

November 11, 2009

Andrew Cockburn
The Crafting of a Loophole

Mike Whitney
A Small "d" Depression

Rev. Jesse Jackson
Where's the Jobs Stimulus?

Jeff Nygaard
Iranian Irrationality? Maybe Not

Stewart J. Lawrence
Honduran Regime Reneges on Political Deal

James Ridgeway
The End of the Little Red Cars: Memories of East Berlin

Eamonn McCann
Blood on Their Hands

Michael Ortiz Hill
Unbecoming War and Terrorism

Shepherd Bliss
From Oklahoma City to Fort Hood

Walter Brasch
"This is Jenna Bush Reporting ... "

November 10, 2009

Ellen Cantarow
Heroism in a Vanishing Landscape

Dean Baker
How to Raise $140 Billion a Year From Wall Street Banks

Rose Ann DeMoro
The Truth About the House Health Care Bill

Ramzy Baroud
Inch by Inch, House by House: How Israel Won the Settlement Battle...Again

Peter Lee
The Dalai Lama Sticks His Thumb in the Dragon's Eye

Dave Lindorff
Blaming the Workers

Roberto Rodriguez
Running Past PTSD (Or My Susto Profundo)

Winslow T. Wheeler
The Self-Dismembering F-35

Alan Farago
The Rising Tide

Joseph Grosso
The Legacy of Albert Parsons

November 9, 2009

Patrick Cockburn
Leave Afghanistan to the Afghans

Linn Washington
Fox Finds a New Black Boogeyman

Carl Ginsburg
To be Young and Unemployed Forever

Jeff Leys
War Funding, 2010

John A. Murphy
Can Lieberman Save Single Payer? Why Progressives Should Back a Filibuster

John Halle
Bard and the Lobby: Final Thoughts on the Kovel Affair

Bouthaina Shaaban
Clinton Dances With Netanyahu

James Ridgeway
Heath Care: Winning a Battle, Losing the War

Dave Lindorff
The Kafka Economy

David Macaray
The Philadelphia Transit Strike

Stephen Fleischman
The Tea Party System

Website of the Day
Cap-and-Trade: The Huge Mistake

November 6-8, 2009

Alexander Cockburn
Too Fat to Fight

Mark Grueter
Inside the American University of Iraq

Paul Craig Roberts
The Evil Empire

Patrick Cockburn
Friendly Fire

Gareth Porter
Karzai's Cabinet of Warlords

Mike Whitney
The Battle of Seattle, 10 Years Later

James Bovard
How the Media Enables Government Lies

Dean Baker
Don't Touch the Banks!

Robert Lawless
Empires and the Sullying of Anthropology

Saul Landau
Afghanistan: a War Without Logic

Jayne Lyn Stahl
Black Ops and Fort Hood

Stephanie Westbrook
My Memories of Fort Hood

M. Shahid Alam
How Eurocentric Are You?

Marc Levy
Walking With Mr. Muhammad

Franklin Lamb
Obama's Mid-East Mess

Ron Jacobs
A New Map of Hell

David Ker Thomson
Afternoon With Tulip

John V. Whitbeck
Moment of Truth

Julien Mercille
Drugs and Afghanistan: the UN's Misleading Report

Rannie Amiri
Egypt's Next Unelected President?

John Ross
Legalize It!

David Michael Green
Can You Hear Us Now?

Carl Finamore
Strike One for Hotels in San Francisco

Farzana Versey
The Farce of Fatwas and Political Expediency

Missy Comley Beattie
No to Single Payer, Yes to Prayer?

Charles R. Larson
Business as Usual in India

David Yearsley
Anna Magdalena, Music and the Art of Dying

Kim Nicolini
"Paranormal Activity:" a DIY Horror Film

Poets' Basement
Three Poems by Devreaux Baker

November 5, 2009

Pam Martens
The Fire Sale of America

Vijay Prashad
The Great Heretic

Brian Gallagher
The Soldiers From Standard Oil: Harvard, ROTC and American Foreign Policy

Norman Solomon
The Next Phase in Health Care Apartheid

Nadia Hijab
The Battle for Palestinian Representation

Joseph Shansky
And the Winner in Honduras is ... the United States?

Andy Thayer
Questions and Answers From Maine

Tracy Rosenberg
Pacifica and the Barbarians Who Pay the Bills

Website of the Day
All Folked Up

November 4, 2009

Stan Cox
The Inflated Promise of Natural Gas

Andy Worthington From Gitmo to Palau: Who are the Uighurs?

Robert Weissman
The Medicare-for-All Moment

Susan Galleymore
Of Veterans and Volunteers

Ralph Nader
Hoh's Afghanistan Warning

Michael Leonardi
Italy's Secret Ships of Poison

Bitta Mistofi
Death to No One: Isolating and Taunting Iran Will Only Empower the Regime

Robert Bryce
From Lahore to Copenhagen

Martha Rosenberg
Is Your Doctor's Continuing Ed Funded by Drug Makers?

Dave Lindorff
Democrats Crash and Burn

Website of the Day
Single-Payer Backtrackers

November 3, 2009

Patrick Cockburn
The Delegitimization of Karzai

Mike Whitney
Why the Crisis Isn't Going Away

Franklin C. Spinney
Katrina and the Paralysis of Fear

Laura Carlsen
The Little Coup That Couldn't

Serge Halimi
Don't Blame the Internet

John Stanton
Social Decay in America

Sophia Weeks
A Guatemalan Lament

Dave Lindorff
Country Joe, Kenny Rogers and Obama

November 2, 2009

Steven Higgs
Autism Spikes, Toxins Suspected

Ishmael Reed
White in America: Behind the Scenes at CNN

David Macaray
UAW Members Vote Down Ford; and the Media Attacked the Union

Bouthaina Shaaban
Settler Colonialism: Return to the Middle Ages

David Michael Green
Coming to Get You

David Swanson
The Two Percent Robustness

Ellen Brown
Cutting Wall Street Out

Adam Federman
Trading the Watershed to Trash the Catskills

James McEnteer
Doppleganger Politics: Star Wars, Clone Wars

Stephen Fleischman
Foot in the Door: Capitalism and Health Care

Website of the Day
Secret California Park Giveaway

October 30 - Nov. 1, 2009

Alexander Cockburn
The Long Gaze of the State

Jeffrey St. Clair /
Joshua Frank
Facing Down the Machine: Mike Roselle Draws a Line

Carl Ginsburg
Living in the Shadow of Yankee Stadium

Mike Whitney
Obama Goes Wobbly Over More Stimulus

Joe Bageant
The Iron Cheer of Empire

Gareth Porter
Security By Warlords: the CIA's Afghan Payroll

Saul Landau
The Cuban Embargo

Anthony DiMaggio
Conspiracy, Inc.: Wild Tales From the Reactionary Right

Dave Lindorff
Happy Talk Amid the Wreckage: Stocks Up, Jobs Down

Rannie Amiri
The Spooks of Beirut

Niranjan Ramakrishnan
An Afghan Travelogue

Jayne Lyn Stahl
Who Will Reform the Health Care Reform?

Rev. William E. Alberts
God's Favorite Team (and Nation and Religion)

Alvaro Huerta
The Abominable Mr. Dobbs

Martha Rosenberg
Marketing Drugs to Psychoneurotics

Binoy Kampmark
Don't Give Us Your Wretched: Refugee Policy in OZ

Norm Kent
Not Just Zig-Zag Any More: Medical Marijuana Goes Mainstream

Charles R. Larson Roth's "The Humbling:" Nothing Like a Novel From an Old Pro

Ron Jacobs
One Man's Truth, Another Man's Lies

David Yearsley
Not Loud Enough by Half

Lorenzo Wolff
The Vulnerability of Lauryn Hill

Kim Nicolini
"Big Fan:" Football, Class and Sexuality in America

Poets' Basement
Davies, Heyen and Orloski

Website of the Weekend
Coal Country Music

October 29, 2009

Michael Neumann
Criticism of Israel: a Wonderful Hiding Place

Mike Whitney
Housing Rebound? Not So Fast

Gary Leupp
Matthew Hoh Speaks Truth to Power

Conn Hallinan
Roman Roads and Modern Emperors

Marshall Auerback
Obama's Bogus Populism: Pay Curbs and Bank Loans

Laura Flanders
Palin's Pet Doug Hoffman Has Taliban Ties

Eamonn McCann
The War Criminal Vote: Blair or Karadzic for EU President?

David Macaray
Strange Invaders: Can Ignorance and Arrogance Win Hearts and Minds?

Mark Weisbrot
When Small Countries Lead the Way

Stephen Soldz
Psychologist Complicity in Torture Challenged

Christopher Brauchli
Will the Pope Bring the Taliban Into His Flock?

Website of the Day
The USS Liberty Affair and the Problem of Truth in History

October 28, 2009

Moshe Adler
How to Reduce Unemployment, Rebuild the Middle Class and Free Ourselves From Wall Street

Dave Lindorff
America's Drug Crisis: Brought to You by the CIA

Frank Joseph Smecker
Agaisnt Prometheus: an Interview with Derrick Jensen on Science and Technology

Alexandra Early
What a "Jobless" Recovery Means for Young Workers

M. Shahid Alam
Israeli Exceptionalism

Vijay Prashad
Sahelian Blowback: What's Happening in Mali?

John Ross
Three Years Later, Brad Will is Still Dead

Franklin Lamb
A Rare Victory for Lebanon's Palestinians

Gregory Travis
The Dismal Science: Elinor Ostrom's Nobel

Susan Galleymore
Peace Cycle to Palestine

Website of the Day
Newspaper Decline, a Graphic Display

October 27, 2009

Mike Whitney
Black Tuesday and How We Got Out of It

Patrick Cockburn
Bombs Will Go Off in Baghdad, Whether the US is There or Not

Stewart J. Lawrence
Honduran Coup Myths Dispelled

Alan Farago
Power Plays in Florida: Rate Increases, Nukes and Deception

Ralph Nader
Obama: Form Letters and Business as Usual

Dave Lindorff
Pentagon Dirty Bombers: DU in America

Bouthaina Shaaban
The Danger of Towing the Line Behind Israel

Brian M. Downing Elections in Afghanistan, the Second Time Around

Iain Boal
How You Can Save Pacifica

Carl Finamore
Hotel Workers and the Law of Momentum

Jayne Lyn Stahl
Here Comes That Third Party: Palin and the Constitutionalists

Website of the Day
How Bank of America Charges for Perfect Credit

October 26, 2009

Bill Quigley /
Deborah Popowski
When Gitmo and Abu Ghraib Come Home

Paul Craig Roberts
Are You Ready for the Next Crisis?

Uri Avnery
A Tsunami Called Goldstone

Mike Whitney
Will the Dollar Remain the World's Reserve Currency in Five Years?

Michael Snedeker
The Execution of Cameron Willingham

Shamus Cooke
Obama's Dirty War on Immigrants

David Michael Green
Paranoia for Breakfast

Martha Rosenberg
Gagging Michael Pollan

Patrick Bond
Gridlock on the Way to Copenhagen

Binoy Kampmark
Heading for the Tiber

Website of the Day
Goldman Sachs Abandons Kittens

Weekend Edition
November 27 - 29, 2009

Soaring Unemployment and a Double-Dip Recession?

Blame Larry Summers

By MIKE WHITNEY

Barack Obama's chief economic advisor, Lawrence Summers, is determined to sabotage a second round of stimulus. And, he's getting plenty of help, too. Congressional Democrats are dragging their feet because they're worried about the political backlash and midterm elections, the GOP deficit hawks are looking for a way they can derail the Obama agenda and reestablish their bone fides as fiscal conservatives, and the bailout-traumatized American people are simply opposed to anything that generates more red ink. Even Obama has joined the fray and started badmouthing stimulus stressing the importance of living within our means and trimming the deficits. So it looks like a done-deal; no more stimulus. There's only one problem, without another blast of stimulus the economy is headed for the skids.

Summers knows this because he is an extremely bright and competent economist. With Summers, the issue is loyalty, not intelligence. To prove this point, consider Summers comments in a Washington Post editorial (September of 2008) where he explains what needs to be done to put the economy back on track:

"Indeed, in the current circumstances the case for fiscal stimulus -- policy actions that increase short-term deficits -- is stronger than ever before in my professional lifetime. Unemployment is almost certain to increase -- probably to the highest levels in a generation. Monetary policy has little scope to stimulate the economy given how low interest rates already are and the problems in the financial system. Global experience with economic downturns caused by financial distress suggests that while they are of uncertain depth, they are almost always of long duration.

“The economic point here can be made straightforwardly: The more people who are unemployed, the more desirable it is that government takes steps to put them back to work by investing in infrastructure or energy or simply by providing tax cuts that allow families to avoid cutting back on their spending.” ("A Bailout Is Just a Start", Lawrence Summers, Washington Post)

To repeat: "Monetary policy has little scope to stimulate the economy given how low interest rates already are and the problems in the financial system."

Bingo. Zero-percent rates don't give any traction in a liquidity trap. That's why economists push for fiscal stimulus; jobs programs, state aid, and extended unemployment benefits. That's the only way to narrow the output gap and rev up economic activity. Summers doesn't even challenge the idea; in fact, he makes the case for fiscal stimulus. Of course, that was then, and now is now. Here's another clip of Summers stirring up the masses at the Brookings Institute with his  thundering Fidel Castro impersonation:

"Between 2000 and 2007 – a period of solid aggregate economic growth – the typical working-age household saw their income decline by nearly $2000. The decline in middle-class incomes even as the incomes of the top 1% skyrocketed has a number of causes, but one of them is surely rising asset prices and the fact that financial sector profits exploded to the point to where they represented 40% of all corporate profits in 2006.

Confidence today will be enhanced if we put measures in place that assure that the coming expansion will be more sustainable and fair in the distribution of benefits than its predecessor."

Larry Summers carrying-on about "distribution of benefits"? Huh?  So how does the Redistributionist-in-Chief feel about stimulus now? Here's a clip from Thursday's Wall Street Journal:

 "The White House is lukewarm about proposals by congressional Democrats to introduce broad legislation to create jobs, instead favoring targeted measures that would be less likely to inflate the deficit, administration officials said.

“Mr. Obama is keen to avoid any measures suggestive of a second, big-ticket stimulus. With about half of the February stimulus spending spoken for, the measure has created about 640,000 jobs, fewer than the number of jobs lost in January alone.

"There is no discussion of a package like a second stimulus, but we are working closely with Congress and consulting with outside experts to determine the right policies and the right steps," said White House deputy press secretary Jennifer Psaki. ("Weighing Jobs and Deficits", Elizabeth Williamson, Wall Street Journal)

Apparently, Summers has had time to rethink his populism and do a 180. Team Obama plans to create jobs by initiating tax credits and lending to small businesses. Sound familiar? In other words, the only way that millions of dejected workers will get any relief is if private industry can be enriched in the process. That's why "there is no discussion of a second stimulus." Because Summers is an industry rep who primary task is to ensure the smooth transfer of public wealth to corporate plutocrats. He even opposed the extension of unemployment benefits believing that greater hardship would push wages down even further.

Indeed, from Summer’s point of view, the America Rescue and Recovery Act has worked out just dandy. The unions are getting walloped, 8 million people are out of work, the labor market is in the worst shape it's been since the Great Depression, and the blood-flow of stimulus is about to get choked-off sometime in the next two quarters.  Hey, it's morning in America!

But, as we noted earlier, Summers is a good economist, so maybe there is an economic reason for his opposition to more stimulus. Could it have to do with the output gap?  Since Lehman Bros collapsed, the output gap (which is the difference between an economy’s actual output and its potential output) has been at record lows. That means that there is not sufficient demand to take up the slack in the economy. The only way to resolve that problem (when the Fed is in a liquidity trap and consumers are slashing spending) is to get money into the hands of people who will spend it. That means more government spending, thus, more stimulus. But how much more?

Here's economist Robert Skidelsky with an answer:

"But how large must such a stimulus be? The United States Congressional Budget Office (CBO) estimates that American output will be roughly 7% below its potential in the next two years, making this the worst recession since World War II. American unemployment is projected to peak at 9.4% towards the end of 2009 or the beginning of 2010, and is expected to remain above 7% at least until the end of 2011.

“The US government has pledged $787 billion in economic stimulus, or about 7% of GDP. Superficially this looks about right to close the output gap – if it is spent this year . But it is in fact a three year-program. Some $584 billion is allocated for 2009-2010, leaving perhaps $300 billion of extra money for this year. Even so, it is not clear how much of that will be spent.

 “ ....A double round of stimulus packages is needed to counteract the real prospect of a double-dip recession.

“The time to start worrying about inflation is when the recovery is entrenched. To pay back the debt without strain, we need a booming economy.  Talk of government spending cuts is premature. ‘A boom not a slump is the right time for austerity at the Treasury’ said Keynes. He was right." ("Is Stimulus Still Necessary?" Robert Skidelsky. Project Syndicate)

Surely, Summers made the same calculations as Skidelsky, but decided to go with a smaller stimulus package for political reasons. Fair enough. He was probably afraid that a larger bill wouldn't get through congress. That's reasonable, but it doesn't change the fact that more stimulus is needed now. The White House should be preparing itself for a major public relations campaign. But there's no PR campaign on the drawing board at all; just more blabber about cutting deficits and reducing long-term government spending. (nb...an attack on Social Security) So as soon as this stimulus-injection wears off, the economy will slip into a coma once again. Here's Paul Krugman breaking it all down:

"Second estimate of third-quarter GDP out; growth rate marked down to 2.8%.

This is really quite grim. At this growth rate it’s far from clear that we’re doing anything to reduce the output gap — the gap between what the economy could produce and what it’s actually producing. Correspondingly, there’s no reason now for even a bit of optimism on unemployment.

When the 3.5% advance number came out, I took to warning people that even if the economy continued to grow at that rate, we wouldn’t see anything like full employment until late in Sarah Palin’s second term. Given the latest number, the date at which we can expect to see a return to full employment is … never.

And that’s if growth continues at this rate. The odds are good that growth will slow down next year: the stimulus has already had its peak effect on growth and will turn into a net drag in the second half, the inventory bounce — which was a major factor in 3rd quarter growth, such as it was — will fade out. Basically, we may be in a technical recovery, but we’re not recovering. (Paul Krugman, "Gee, that’s De Pressing" The Conscience of a Liberal, New York Times)

There's no recovery. Figure it out. Bank profits went up last quarter, but lending went down significantly. Now, that's a neat trick. How did they manage that?

They did it with the money they're getting from the Fed. Bernanke has provided broken banks and other financial institutions with trillions of dollars that are being diverted into high-risk assets, carry trades (with the zero-rate dollar as the funding currency) and speculative derivatives bets. The same bubble that just blew up a year ago has been reflated thanks to Bernanke's largesse and gigantic re-leveraging. Main Street is in a Depression, but Wall Street is doing just fine.

Even so, there is no sign of inflation anywhere and the government is able to borrow capital at record low costs. Last week 3-month Treasuries went negative while the 2-year T-bill has fallen off a cliff. Why? Because Bernanke ended the guarantee on money markets so investors are fleeing to safety again. Ordinary retail investors who can't do bigtime cross-border currency transactions or High Frequency Trading, need a place to hide. Hence, USTs. They're forking over their money to Uncle Sam for under 1 percent interest. It's highway robbery.  At the same time, consumer credit is shrinking, bank lending is down, and 1 out of 4 homeowners is upside-down. Money is not moving and the economy is on a ventilator. We need more stimulus.

But there won't be another round of stimulus because Summers and his sniveling companion Geithner won't allow it. They have other plans. Oh yeah, Wall Street and the banking Goliaths will still get as much monetary stimulus as they need (under the phony moniker of "quantitative easing", liquidity swaps, or excess reserves) But as for the working slob --  zilch.

Summers’ assignment is to bring the broader economy to its knees; to crush big labor by keeping unemployment high,  to force state and local and governments to privatize more public assets and services, and to generate as much human misery as possible. In short, Summers is laying the groundwork for structural adjustment within the US, a policy which reflects his ongoing commitment to multinational corporations and neoliberalism. It's the shock doctrine redux. These people are monsters.

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

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