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The_Last_Mystery_of_the_Financial_Crisis_Matt_Taibbi_Rolling_Stone_June_19,_2013.pd
f; War_On_the_Unemployed_Paul_Krugman_NYT_June_30,2013.pdf;
U.S._Poverty,fly_the_Numbers_The_Nation_2011_data_07_03_2013.pdf;
The_Gap_Between_SNAP_and_Basic_Economic_Security_John_Light_Moyers_&_Co_Jun
e_28,_2013.pdf;
Hunger_and_the_Sequestration_by_the_Numbers_Gregyaufman_Moyers_&_Companyiu
ly_2,2013.pdf;
Why_Is_SNAP_Part_of_the_Farm_Billioel_Berg_Moyers_&_Co_July_2,2013.pdf;
Big_Companies_Paid_a_Fraction_ofCorporate_Tax_Rate_Nelson_Schwartz_NYT_July_l,
_2013.pdf;
Gregyaufinann_on_the_Truth_About_American_Poverty_Moyers_&_Companyiune_28,
2013.pdf; AltaVista._What's_That_Nick_Bilton_NYT_July_l ,_2013.pdf;
Army_Ousts_Egypes_President,_Morsiis_Taken_Into_Mi_litary_Custody_David_Kirkpatr
ick_NYT_July_3,_2013.pdf; 80%_of_Pre-
Packaged_Foods_in_America_Are_Banned_in_Other_Countries_CNCBC_June_24,_2013.d
ocx
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DEAR FRIEND
There is a serious question that we Americans should ask ourselves. Here in the richest country on
earth, 50 million of us — one in six Americans — go hungry — WHY? More than a third of them are
children. Yet Congress can't pass a Farm Bill because our representatives continue to fight over how
many billions to slash from the Supplemental Nutrition Assistance Program, better known as
food stamps. The debate is filled with tired clichés about freeloaders undeserving of government help,
living large at the expense of honest hardworking taxpayers. A new documentary, A Place at the
Table, paints a truer picture of America's poor. Last week Bill Moyers spoke with Kristi Jacobson,
one of the film's directors and producers, and Mariana Chilton, director of the Center for Hunger-
Free Communities, explain to Bill how hunger hits hard at people from every walk of life.
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Web site for Bill Moyer's interview: http://billmovers.com/segmentfkristi-jacobson-and-mariana-chilton-on-how-hunger-
hurts-evervone/
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In the film there is a rancher and a police officer in Colorado, each struggling to make ends meet. And
to make ends meet they have to rely on the charitable food programs sponsored by the church of a
local Colorado minister, Pastor Bob Wilson. In the film the police offer explains that until recently
there use to be three officers but due to budget constraints only he is left and he hasn't received a pay
raise in four years, while what he use to spend on a month in groceries now only lasts about two weeks.
Hence, he uses a local minister, Pastor Bob Wilson's food bank to get by. In a second story, after
working from dam to 3pm on his ranch, cowboy Joel goes immediately down to the local school to
dean it up from 3pm to iipm, so that he can buy groceries to put food on the table for his kids. What
is mind blowing is that a cop who doesn't make enough money to meet all of his food needs and a
cowboy who has to take two jobs to help feed his children, are not the exception, in fact they're very
representative. 8o% of people receiving government food assistance are working poor. That means
their wages are so low that they're eligible for food stamps.
There is a stereotype that food banks are for the unemployed or the disabled, people who can't go out
and get a job or don't want one. Today, this isn't always the case, hard working people even with two
jobs need a little extra help and for them the stigma is humiliating. They are hard working fathers of
families, single-mothers, excellent parents. They want the best for their kids. They're often working
two or three jobs. Sometimes they'll have to work under the table in order to make ends meet, trying
to find side jobs. They're hustling really hard. And there's an enormous amount of shame that they
experience when they run out of money before they can get more food. It really tests their sense of
manhood, motherhood, their sense of citizenship, of belonging. It's very isolating. And not only for
the parents, but for their children too, who when hungry they are always told, "Don't talk about it.
Don't let anybody know how hard it is. Always put on a good face. Always look good," so that you
are treated with a sense of dignity and respect. As a result, they often hide their own experiences of
hunger or hide the fact that they can't feed their own children.
Even worse is that hunger sometimes passes down as a legacy to the next generation. It gets
transferred from generation to generation. Now, during an economic downturn when there are not
enough good paying jobs, of course hunger will skyrocket. But people don't realize that hunger is very
damaging to children, especially to young children. Food insecurity affects the cognitive, social and
emotional growth of very young children. That means that by the time they arrive to kindergarten
they're not ready for school. That means that when they're in school if they're hungry they won't be
able to concentrate on what they're learning and they won't do as well on their math and their reading
tests. That means they won't be as successful, won't get a good paying job so that when they have
children they, too, will be poor. So poverty is an experience that is seared into the bodies and brains of
children and possibly their children.
What happens to someone who gets too little nutrition early in life? If you think about what's
happening in the first three years of life the brain is growing so fast. They're the most important years
of human development. So every moment those are the building blocks of good cognitive, social and
emotional development. Neurons are growing and pruning and very active. boo neurons are growing a
second for an infant. It's an important window of human development. So any type of
nutritional deprivation during this time has a severe impact on the brain even if it's just episodic, even
if it happens once or twice a month those are moments of lost opportunity to be able to interact with
their family and their environment, to pay attention and to learn something new which helps to grow
more neurons.
It affects the cognitive, social and emotional development. It creates a certain kind of a stress on the
child that's very toxic. And we know from experts that children who experience this kind of toxic stress
can't learn as well, can't learn as fast. We know that this can turned around with food assistance
programs, with a program called WIC, Women, Infants and Children or the food stamp program. The
best investment of our dollars in this country is investing in very young children and their families
because again those are the most important times when a child's brain is growing. So for every one
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dollar that you spend on a child you make seven dollars back when they become an adolescent. It's a
beautiful investment. But more importantly, it's the right thing to do.
The effects of hunger: You see it in school performance, their ability to get along with others, their
ability to pay attention for children of school age. Attendance. You see it in the increased
hospitalizations, showing up more to the emergency room when they don't-- with preventable
diseases, or preventable exacerbation of asthma. If we treated poverty during childhood as a type of a
disease, if we paid as much attention to poverty for children as we pay attention to infectious disease,
we could definitely eradicate hunger in this country.
The film — A Place at the Table — makes dramatically clear the relationship between
malnutrition and obesity. As they are neighbors and that they happen often at the same time and often
in the same family, in the same person is because they are both signs of having insufficient funds to be
able to command food that you need to stay healthy. If you look at what has happened to the relative
price of fresh fruits and vegetables -- they have gone up by 40 percent since 1980 when the obesity
epidemic first began. In contrast, the relative price of processed foods has gone down by about 40
percent. So if you only have a limited amount of money to spend you're going to spend it on the
cheapest calories you can get and that's going to be processed foods. Finally this has to do with our
farm policy and what we subsidize and what we don't.
Hunger and obesity are both forms of malnutrition. Obesity often means not getting the right kinds of
nutrients for an active and healthy life. If you go back to the definition of food insecurity it
means — not having enough food for an active and healthy life. So when people think about hunger
they think, "Oh, it's just not enough food." But actually its food insecurity which is a much broader
term, much more precise, captures a type of experience where families don't have enough money for
healthy and fresh food so they will, in order to stretch their dollar.... they'll spend it on soda or on
foods that have very high calories. Because they know that their kids are hungry, they have to be able
to stretch their dollar in order to fill their own tummies and the tummies of their children. They know
it's not healthy, but they're just trying to solve the immediate and the immediacy of hunger. The end
is eating lots of high calories, salt, sodium. And those are the kinds of foods that are not good for an
active and healthy life. It's another form of hunger. So you can look at people who are overweight and
obese and think maybe they don't have enough money for food, maybe they're anxious about where
their next meal is coming from. As a result there are 5o million people, one in six Americans who are
food insecure, who do not have enough good nutrition to thrive.
Conservatives who hate big government will tell you that charities should take the lead against hunger.
When the fact is that we need government to take a leadership role as there are millions of people
suffering from hunger and food insecurity in every county and in every state in our country. The 80's
created the myth that A. hungry people deserved it and B. well we could really fill in the gaps with the
charities. And we had a proliferation of emergency responses, soup kitchens, food pantries moving
from literally a shelf in the cupboard of the pastor's office to an operation with regular hours.
Something changed during that period of time. There developed this ethos that government was doing
too much and more importantly, the private sector is wonderful and let's feed people through charity.
Obviously this hasn't worked.
If you want to talk about dependency in this country, let's talk about corporations and businesses that
pay such low wages that they depend on the United States government to add money to those wages
through the Income Assistance Programs, like SNAP. Lets take a company like Wal-Mart, who pays
their workers so low that their workers are actually eligible for food stamps. And Wal-Mart has
the chutzpah to have paid employees on staff help their own employees qualify for food stamps. When
you look at the situation this way, who's dependent on the U.S. government? I'd have to say it's Wal-
Mart is the welfare queen here. There are 48 million people are receiving food stamps. But it's also
important to look at how many corporations and agribusinesses are collecting subsidies out of the
same government bill, the farm bill. There is an ethos in Congress right now that assisting those
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individuals who need help via the food stamp program or WIC or school meals is big government and
is going to put us into debt. But providing subsidies to large agribusinesses and big corporations is just
business as usual.
We have basically created a kind of secondary food system for the poor in this country. Millions and
millions of Americans, as many as 5o million Americans rely on charitable food programs for some
part of meeting their basic food needs. The churches and the community groups that hand out food
are doing an incredible service to this country and to the children that are experiencing hunger, but
that's just a quick fix, that's for today and tomorrow and maybe for next week. We call it emergency
food? It's no longer emergency food. This should be called a chronic use of a broken system for which
people cannot be held accountable. But as the actor Jeff Bridges says in A Place at the Table:
"Charity is a great thing, but it's not the way to end hunger. We don't fund our Department of
Defense through charity, you know. We shouldn't you know, see that our kids are healthy through
charity either." The average food stamp benefit is $3 a day. I challenge you to go to your local
supermarket and try to feed yourseif and your family on $3 a day.
Children by family income, 2011
Above
law-income
55%
Less than
100% FPL
22%
100-199% FPL
22%
Percentages may not odd to 100 due to rounding.
Low- income
45%
© National Center for Children in Powqty (www.nccp.org)
Basic Facts Aixot Low-income Children: Children Under 18 Years, 2011
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• Children in poverty: 1.6.1 million, 22 percent of all children, including 39 percent of African-
American children and 34 percent of Latino children. Poorest age group in country.
• Deep poverty (less than $11,510 for a family of four): 20.4 million people, 1 in 15 Americans,
including more than 15 million women and children
• People who would have been in poverty if not for Social Security, 2011: 67.6 million (program
kept 21.4 million people out of poverty)
• People in the U.S. experiencing poverty by age 65: Roughly half
• Gender gap, 2011: Women 34 percent more likely to be poor than men
• Gender gap, 2010: Women 29 percent more likely to be poor than men
• Twice the poverty level (less than $46,042 for a family of four): 106 million people, more than 1
in 3 Americansobs in the U.S. paying less than $34,000 a year: 5o percent
• Jobs in the U.S. paying below the poverty line for a family of four, less than $23,000 annually: 25
percent
• Poverty-level wages, 2011: 28 percent of workers
• Percentage of individuals and family members in poverty who either worked or lived with a
working family member, 2011: 57 percent
• Families receiving cash assistance, 1996: 68 for every 100 families living in poverty
• Families receiving cash assistance, 2010: 27 for every 100 families living in poverty
• Impact of public policy, 2010: Without government assistance, poverty would have been twice as
high — nearly 3o percent of population
• Percentage of entitlement benefits going to elderly, disabled or working households: Over 90
percent.
• Number of homeless children in U.S. public schools: 1,065,794nnual cost of child poverty
nationwide: $55o billion
• Federal expenditures on home ownership mortgage deductions, 2012: $131 billion
• Federal funding for low-income housing assistance programs, 2012: Less than $50 billion
The Gap Between SNAP and Basic Economic Security
There's a wide gap between the income cutoff for government food assistance and the income required
to provide children with a nutritious diet. As of early 2013, nearly 48 million Americans received food
assistance through the Supplemental Nutrition Assistance Program (SNAP). That's about 15
percent of the country. Despite those numbers, a May 2013 report by the U.S. Department of
Agriculture (USDA), which oversees SNAP, found that 21 percent of families with children
experienced food insecurity in 2011 - meaning that at least some family members couldn't get enough
to eat to lead `active, healthy lives."
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The SNAP gap for a family of three
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To qualify for SNAP - which, until 2OO8, was called the Federal Food Stamp Program — a
family can earn no more than 13O percent of the federal poverty guideline, which is established each
year by the Department of Health and Human Services. Until October 2O13, that figure is set at
$2,O69 per month ($24,828 @ year) for a family of three; after that, it will be bumped up by about
$5O. But many antipoverty advocacy groups point out that 13O percent of the poverty guideline is
hardly a comfortable income for a family with children.
The nonprofit group Wider Opportunities for Women (WOW) has developed its own indicator
for economic security called the Basic Economic Security Tables index, or BEST index. The
index differs from state to state, and even between cities within a state, because of differences in the
cost of living, including the price of food and childcare. WOW found that across the country, the
actual income required for a family of three (one adult and two children) to be economically secure is
2OO or 3OO percent of the federal poverty guideline, not the 13O percent the USDA uses as the cutoff
for SNAP.
That leaves many families — especially those headed by a single parent — in an uncomfortable place
where they may not make enough money to buy quality food, but make too much to qualify for
government assistance. The chart above shows that gap in a handful of states across America. Mouse
over each bar for details.
*0 *000
Hunger and the Sequester, By the Numbers
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Sequestration cuts will total $1.2 trillion through fiscal year 2021. This year there is a 5.3 percent cut,
totaling $85 billion. The cuts are indiscriminate and will impact nearly every federal program.* Here
are some of the ways this year's cut is affecting food and hunger programs, in America and abroad.
Domestic Programs
• Meals for needy seniors lost in programs like Meals on Wheels (MOW): 4 million
• Savings from cut of 4 million meals: $10 million
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• Rise in Medicaid costs due to cut of 4 million meals: $489 million
• Net cost to U.S. federal budget due to cut of 4 million meals: $499 million
• Loss of senior meals, California: 750,000
• Loss of senior breakfasts, Palm Beach County, Fla.: 24o daily
• Loss of senior meals in group dining facilities, Detroit suburbs and several counties: 86,000
• Loss of home-delivered and group dining senior meals, La Crosse County, Wis.: 6,000
International Programs
• Cuts to global poverty-focused development assistance (PFDA) programs: $1.1 billion
• People who will experience reduced or denied access to lifesaving food: 2.1 million
• Children who will experience reduced or denied access to school feeding programs: 234,000
• Children who will be unable to receive nutritional interventions that save lives and prevent
irreversible damage caused by malnutrition: 605,625
• Farmers and small businesses in poor countries that won't receive support from Feed the Future,
a program to help them lift themselves and their communities out of poverty: 1.17 million
Reflections
• Ellie Hollander, president and CEO of the Meals on Wheels Association of America: "The real
impact of sequester is that our programs don't have the ability to expand to meet the growing
need. We should be investing in these programs to ensure our seniors have the nutritious meals
they need to remain healthy and independent."
• Patricia Hoeft, director of senior center nutrition, the Mid-East Area Agency on Aging
(Missouri): "How do I decide which 300 seniors aren't going to eat that day?"
• Meals on Wheels recipient, home delivery program, La Crosse County, Wis.: "These meals are
sometimes the only meal that I have a day. I don't drive, so I have to rely on others to get around
to doctors' appointments. I only get $16 a month for food."
Some low-income programs are exempt from cuts, including Medicaid, Supplemental Nutrition
Assistance Program (SNAP, formerly food stamps), the refundable tax credits and some child
nutrition programs.
by Greg Kaufmann
July 2, 2013
As many of you know I am a big fan of TED which is a nonprofit devoted to Ideas Worth
Spreading. It started out (in 1984) as a conference bringing together people from three worlds:
Technology, Entertainment, Design. Since then its scope has become ever broader. Along with
two annual conferences -- the TED Conference on the West Coast each spring, and the
TEDGlobal conference in Edinburgh UK each summer -- TED includes the award-winning TED
Talks video site, the Open Translation Project and TED Conversations, the inspiring TED
Fellows and TEDx programs, and the annual TED Prize. Recently TED has join together with The
Huffington Post to reach a broader audience through its TED Talks Weekends, and while
perusing their offering this week, I ran across and interesting lecture (Talk) by former Greek Prime
Minister, George Papandreou - titled, Imagine A European Democracy Without
Borders.
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Web Link: http://www.huffingtonpost.com/tedglobal/george-papandreou-at-tedg_b_3428741.html
Greece has been the poster child for European economic crisis, but Papandreou wonders if it's just a
preview of what's to come. "Our democracies," he says, "are trapped by systems that are too big to
fail, or more accurately, too big to control" -- while "politicians like me have lost the trust of their
peoples." How to solve it? Have citizens re-engage more directly in a new democratic bargain.
Talking about the failure of leadership in our globalizing economy. Papandreou believes that the
failure of leadership is that people have been taking out of the process, based on the foundation of
democracy that people working together could be masters of their own fate and democracy was the
political innovation that protected this freedom, limiting the tendency of the powerful to maximize
power and wealth at the expense of the greater good for everyone else. And although Greece triggered
the economic crisis in the Eurozone but he says that today most people would agree that Greece was
just a symptom of the greater structural problems in the Eurozone due to vulnerabilities in the wider
global economic system, "vulnerabilities of our democracies, our democracies are trapped by systems
too big to fail, too big to control. Our democracies are weaken by people in the global economy with
players who can evade laws, evade taxes, evade environmental or labor standards. Our democracies
are undermined by the growing inequality of power and wealth, lobbyist, corruption, the speed of
the markets or sometimes when we fear an impending disaster which have constrained our
democracies and our ability to use our potential in finding solutions."
Papandreou says that Greece was only a preview and hopes that Greece, Europe and the world will
make radical transformations in our intuitions. He says that in this new paradigm of globalization
there is a collective ignorance and fears, which lead European leaders to fully invest in the "blind faith"
of orthodoxy of austerity. And when austerity didn't work, they then blame the people for being lazy
as a result of indulgent social policies. No one blamed the banks and bankers who made millions and
billions writing loans that those profligate, idle, ouzo swilling, Zorba dancing Greeks they are the
problem
Papandreou warns that this is not just about Greece, as this could be the pattern that
leaders follow again and again when we deal with these complicated cross-border problems, whether
its climate change, migration or financial regulations, abandoning our collective power to imagine our
potential, falling victim to our fears, our stereotypes or dogmas, taking our citizens out of the process
instead of building the process around them and doing so will only test the faith of our citizens in their
democracy.
And although it appears that Greece and Europe has weathered the economic storm, if politics is the
power to imagine then 6o% youth unemployment in Greece and in other countries is a lack of
imagination if not a lack of compassion. So far Europeans have only used economics to solve the
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problem and mostly austerity, whereas they could have designed other strategies, such as investing in
green jobs and new technologies. Without broad-based participation, we are losing trust in our
democracies, especially when today we have globalize the markets but we have not globalized our
democratic institutions. As a result, our politicians are limited to local politics while our citizens are
prey to forces beyond their control. Papandreou says that because the EU is the largest and most
successful cross-border peace experiment, we should use it as a model for more expansion with a
common identity, where education is through participation, where participation builds trust and
solidarity rather than exclusion and xenophobia. A Europe of and by the people, a Europe in deepen
and widening democracy.
As Papandreou confessed, it can sounds naive to put faith and power in the wisdom of the people. But
something has to change. And this disruptive change won't be given easily, as it is the interest of those
in power to keep the status quo. As such all of us will have to have to take a stand if we really want
things to change. The means, everyone who stands up against justice and inequality, everyone who
preaches racism instead of empathy, dogma rather than critical thinking, technocracy rather than
democracy and everyone who stands up to the unchecked power whether they be authoritarian
leaders, plutocrats hiding their assets in tax havens or powerful lobbyist protecting the powerful few.
Again, I know that this sounds naive, but so did the dream of democracy when the Greeks first
invented it in the 5th Century BCE
Remember: if we collectively or individually don't reach for a
higher place, we will never get there
On Wednesday July 3, 2013 the Egyptian military announced the removal of Mohammed Morsi as
President, presenting a roadmap for reconciliation in the country. In a televised statement Egyptian
military chief Abdel Fattah al-Sisi announced that the plan calls for the temporary suspension of the
constitution and the institution of a technocrat government. The chief justice of the constitutional
court will lead the country in the interim. Tahrir Square, where thousands of people had gathered
during the day, erupted in celebrations as soon as the news was announced. It was announced that
Morsi was under house arrest at a Presidential Guard facility where he had been residing, and 12
presidential aides also were under house arrest. The constitution, drafted by Morsi's Islamist allies,
was "temporarily suspended," and a panel of experts and representatives of all political movements
will consider amendments, el-Sissi said. He did not say whether a referendum would be held to ratify
the changes, as customary.
The armed forces announced they would install a temporary civilian government to replace Islamist
President Mohammed Morsi, who denounced the action as a "full coup" by the generals. They also
suspended the Islamist-drafted constitution and called for new elections. On July 4, 2013 Adly
Mansour, Egypt's top judicial authority, is appointed as interim president during the transitional
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period. Millions of anti-Morsi protesters around the country erupted in celebrations after the televised
announcement by the army chief. Fireworks burst over crowds in Cairo's Tahrir Square, where men
and women danced, shouting, "God is great" and "Long live Egypt." Fearing a violent reaction by
Morsi's Islamist supporters, troops and armored vehicles deployed in the streets of Cairo and
elsewhere, surrounding Islamist rallies. Clashes erupted in several provincial cities when Islamists
opened fire on police, with at least nine people killed, security officials said. Beyond the fears over
violence, some protesters are concerned whether an army-installed administration can lead to real
democracy.
The ouster of Morsi throws Egypt on an uncertain course, with a danger of further confrontation. It
came after four days of mass demonstrations even larger than those of the 2011 Arab Spring that
toppled longtime autocrat Hosni Mubarak. Egyptians were angered that Morsi was giving too much
power to his Muslim Brotherhood and other Islamists and had failed to tackle the country's mounting
economic woes. President Barack Obama urged the military to hand back control to a democratic,
civilian government as soon as possible but stopped short of calling it a coup d'etat. The U.S. wasn't
taking sides in the conflict, committing itself only to democracy and respect for the rule of law, Obama
said. He said he was "deeply concerned" by the military's move to topple Morsi's government and
suspend Egypt's constitution. He said he was ordering the U.S. government to assess what the
military's actions meant for U.S. foreign aid to Egypt — $1.5 billion a year in military and economic
assistance.
On July 5th Islamist supporters of Morsi clashed with Egyptian security forces and fought brutal street
battles with Morsi opponents deep into early hours of Saturday morning, as violence surged following
Wednesday's military coup. The violence left at least 36 people dead, and more than 1,000 injured
across the country, according to Egypt's health ministry. Frustrated, angry civilians divided
themselves into warring camps that went after each other with clubs, rocks and gasoline bombs over a
major bridge and thoroughfares in central Cairo, in scenes that recalled the revolution that ousted
autocrat Hosni Mubarak in 2011. So chaotic and fast-moving were events that Egyptian television
news broadcasters split their screens into not just two but often three competing scenes of violent
unrest. Near midnight, government troops in armored personnel carriers roared up to protect state
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media offices from advancing crowds of Morsi supporters. Many of them were drawn from the ranks
of the Muslim Brotherhood, which suddenly finds itself shoved out of power and into a more familiar
role as an oppressed opposition group. The day's turbulent developments reflect an ominously divided
country, and region. From beyond Egypt, radical Web sites called for jihad against the nation's
military, even as most Arab governments continued to look on approvingly of the coup. The United
States has expressed concern but has generally avoided taking sides.
The fact that Egypt's first democratically elected president was overthrown by the military, just one
year in office by the same kind of Arab Spring uprising that brought the Islamist leader to power,
present its own new set of problems for supporters of democracy here and America and around the
world . As Fareed Zakaria pointed out this week in an op-ed in The Washington Post - Egypt's
lost opportunity - Over the past three decades, when American officials would (gently) press
Egypt's Hosni Mubarak to stop jailing his opponents and initiate more democratic reforms, he would
invariably snap back: "Do you want the Muslim Brotherhood in power?" Wednesday's events suggest
that Egyptians continue to face this choice, between military dictatorship and an illiberal democracy. T
o succeed, the new leadership in Egypt has to find a way to reject both. That's a task for Egyptians, not
for the United States.
Much of the Western media has tended to describe the divide in Egypt as between secularists and
Islamists, portraying ousted Egyptian President Mohamed Morsi as having pursued a radical Islamic
agenda in his year in office. There is certainly a strand of truth to this narrative, though the story is
more about grabbing power than enacting sharia. Morsi and the Muslim Brotherhood have been
deceptive, avaricious and venal. The party promised that it would neither run for the presidency nor
seek a parliamentary majority. It reneged on both pledges. It rushed through a constitution that was
deficient in many key guarantees of individual rights. It has allowed discrimination and even violence
against the Coptic Christian minority in Egypt. It has tried to shut down its opposition, banning
members of Mubarak's old party from all political offices in Egypt for life.
But its biggest failing has been incompetence. Egypt is in free fall. In the year that Morsi was in
power, the economy sunk, unemployment skyrocketed, public order collapsed, crime rose, and basic
social services have stalled. This would by itself by enough to produce massive public discontent.
Public discontent was first channeled against the army, which ruled Egypt for 16 months after the fall
of Mubarak in 2011. Now it has been directed towards Morsi. If the objective situation does not
improve in the country, this discontent might not easily dissipate.
Egypt's military has presented this coup as a "sot" one, aimed at restoring democracy, not subverting
it. If it succeeds, it could work like the Turkish military's removal of an Islamist government in 1997.
If it fails, it could look like the Algerian coup of 1992, ushering in a decade of violence. For now, it has
certainly preserved the army's immense power and perks, which have continued despite the formal
end of military rule. The military budget, for example, remains a black box subject to no parliamentary
or presidential scrutiny. And while Morsi's misrule galvanized liberal forces, it is an irony that they
have sought a path to power on the backs of a fairly repressive military regime.
In Egypt, we see the results of an unfortunate dynamic produced by decades of dictatorship. Extreme
autocracy produced, as its counterpoint, extreme opposition. As the regime became more repressive,
the opposition grew more Islamist and obstinate, sometimes violent. Arab lands have been trapped
between repressive regimes and illiberal political movements, with little prospect than that from
within these two forces, liberal democracy might breakthrough.
Morsi and the Brotherhood had the opportunity to break this vicious cycle — to be the force for
democracy and for a liberal order with a separation of powers and a constitutional government. They
overplayed their hand resulting in a popular uprising that allowed the Egyptian military to ousted
them for leadership. As Zakaria pointed out in his op-ed, there is a road map to democracy. It was the
one that Nelson Mandela used when he and the African National Council (ANC) took control of South
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Africa — he did everything in his power to accommodate and reassure the Afrikaners that they had an
important place in the new South Africa. Being in South Africa at the time, the pressures on Mandela
from newly empowered blacks to treat these people, who had created apartheid was immense. Yet he
resisted and did what was right for his country and history. I remember asking a white South African
friend at the time what he liked best about Mandela, his response was, "his generosity."
The United States has tried to chart a middle course, supporting the democratic process, working with
the elected president, and yet urging him toward moderation. It's not enough to satisfy either side —
and where once Washington was blamed for supporting the military, it is now blamed for supporting
the Brotherhood. The reality is that leadership from Washington is largely irrelevant. What matters is
leadership in Cairo. Morsi is not Mandela and most likely neither is his successor. Because of that
difference, Egypt will follow a more difficult democratic course than did South Africa. And if
Egypt doesn't carefully navigate this balance of tolerance, inclusion, fairness along
with the rule of law, the fault will be theirs alone
THIS WEEK's READINGS
One of the most important investigative journalist in America covering Wall Street, financial markets,
big banks and big business is RollingStone's Matt Taibbi who most recently wrote another expose on
malfeasance in finance titled - The Last Mystery of the Financial Crisis — exposing systemic
wrong doings by the major rating agencies whose shady practices helped triggered the financial
meltdown in 2008, as almost none of the fraud that swallowed Wall Street in the past
decade couldn't have taken place without companies like Moody's and Standard & Poor's rubber-
stamping it
Thanks to a mountain of evidence gathered for a pair of major lawsuits by the San Diego-based law
firm Robbins Geller Rudman & Dowd, documents that for the most part have never been seen by the
general public, we now know that the nation's two top ratings companies, Moody's and S&P, have for
many years been shameless tools for the banks, willing to give just about anything a high rating in
exchange for cash. In incriminating e-mail after incriminating e-mail, executives and analysts from
these companies are caught admitting their entire business model is crooked. "Lord help our fucking
scam ... this has to be the stupidest place I have worked at," writes one Standard & Poor's executive.
"As you know, I had difficulties explaining 'HOW' we got to those numbers since there is no science
behind it," confesses a high-ranking S&P analyst. "If we are just going to make it up in order to rate
deals, then quants (quantitative analysts] are of precious little value," complains another senior S&P
man. "Let's hope we are all wealthy and retired by the time this house of card[s] falters," ruminates
one more.
Ratings agencies are the glue that ostensibly holds the entire financial industry together. These
gigantic companies — also known as Nationally Recognized Statistical Rating Organizations, or
NRSROs — have teams of examiners who analyze companies, cities, towns, countries, mortgage
borrowers, anybody or anything that takes on debt or creates an investment vehicle. Their primary
function is to help define what's safe to buy, and what isn't. A triple-A rating is to the financial world
what the USDA seal of approval is to a meat-eater, or virginity is to a Catholic. It's supposed to be
sacrosanct, inviolable: According to Moody's own reports, AAA investments "should survive the
equivalent of the U.S. Great Depression."
It's not a stretch to say the whole financial industry revolves around the compass point of the
absolutely safe AAA rating. But the financial crisis happened because AAA ratings stopped being
something that had to be earned and turned into something that could be paid for. That this happened
is even more amazing because these companies naturally have powerful leverage over their clients, as
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they are part of a quasi-protected industry that enjoys massive de facto state subsidies. Largely that's
because government agencies like the Securities and Exchange Commission often force private
companies to fulfill regulatory requirements by retaining or keeping in reserve certain fixed quantities
of assets — bonds, securities, whatever — that have been rated highly by a "Nationally Recognized"
ratings agency, like the "Big Three" of Moody's, S&P and Fitch. So while they're not quite part of
the official regulatory infrastructure, they might as well be.
It's not like the iniquity of the ratings agencies had gone completely unnoticed before. The Financial
Crisis Inquiry Commission published a case study in 2011 of Moody's in particular and discovered that
between 2000 and 2007, the agency gave nearly 45,000 mortgage-backed securities AAA ratings. One
year Moody's doled out AAA ratings to 30 mortgage-backed securities every day, 83 percent of which
were ultimately downgraded. "This crisis could not have happened without the rating agencies," the
commission concluded.
Thanks to these documents, we now know how that happened. And showing as they do the back-and-
forth between the country's top ratings agencies and one of America's biggest investment banks
(Morgan Stanley) in advance of two major subprime deals, they also lay out in detail the evolution of
the industry-wide fraud that led to implosion of the world economy — how banks, hedge funds,
mortgage lenders and ratings agencies, working at an extraordinary level of cooperation, teamed up to
disguise and then sell near-worthless loans as AAA securities. It's the black box in the American
financial airplane.
In April, Moody's and Standard & Poor's settled the lawsuits for a reported $225 million. Brought by a
diverse group of institutional plaintiffs with King County, Washington, and the Abu Dhabi Commercial
Bank taking the lead, the suits accused the ratings agencies of conspiring in the mid-to-late 2000s with
Morgan Stanley to fraudulently induce heavy investment into a pair of doomed-to-implode subprime-
laden deals, called Cheyne and Rhinebridge. Stock prices for both companies soared at the settlement,
with markets believing the firms would be spared the hell of reams of embarrassing evidence thrust
into public view at trial. But in a quirk, an earlier judge's ruling had already made most of the
documents in the case public. Although a few news outlets, including The New York Times, took
note at the time, the vast majority of the material was never reported, and some was never seen by
reporters at all. The cases revolved around a highly exotic and complex financial instrument called a
SW, or structured investment vehicle.
The SW is a not-so-distant cousin of the special purpose entity, or SPE, which was the main weapon of
destruction in the Enron scandal. The corporate scam du jour in those days was mass accounting
fraud, in which a company would create an ostensibly independent corporate structure that would
actually be controlled by its own executives, who would then move their company's liabilities off their
own books and onto the remote-controlled SPE, hiding the firm's losses. The SW is a similar concept.
They first started showing up in the late Eighties after banks discovered a loophole in international
banking standards that allowed them to create SPE-like repositories full of assets like mortgage-
backed securities and keep them off their own books.
These behemoths operated on the same basic concept as an ordinary bank, which borrows short-term
cash from depositors and then lends money long-term in the form of things like mortgages, business
loans, etc. The SW did the same thing, borrowing short-term from investors and then investing long-
term on things like student loans, car loans, subprime mortgages. Like banks, a SW made money on
the spread between its short-term debt and long-term investments. If a SW borrowed on the
commercial paper market at 3 percent but earned 6.5 percent on subprime mortgages, that was an
easy 3.5 percent profit. The big difference is a bank has regulatory capital requirements. A SW
doesn't, and being technically independent, its potential liabilities don't show up on the books of the
megabank that created it. So the SIV structure allowed investment banks to create and take advantage
of, without risk, billions of dollars of things like subprime loans, which became the centerpiece of the
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new trendy corporate scam — creating and then selling masses of risky mortgage-backed securities as
AAA investments to institutional suckers.
Ratings agencies helped this game along in two ways. First, banks needed them to sign off on the
bogus math of the subprime era — the math that allowed banks to turn pools of home loans belonging
to people so broke they couldn't even afford down payments into securities with higher credit ratings
than corporations with billions of dollars in assets. But banks also needed the ratings agencies to sign
off on the safety and reliability of these off-balance-sheet SW structures. The first of the two SIVs in
question was dreamed up by a London-based hedge fund called Cheyne Capital Management
(pronounced like Dick "Cheney"), run by an ex-Morgan Stanley banker duo who hired their old firm to
build and stock this vast floating Death Star of subprime loans.
Morgan Stanley had multiple motives for putting together the Cheyne deal. For one thing, it earned
what the bank's lead structurer affectionately called "big fat upfront fees," which bank executives
estimated would eventually add up to $25 million or $3o million. It was a lucrative business, and the
top dogs wanted the deal badly. "I am very focused on ... getting this deal done to get NY to stop
freaking out" and "to make our money," said Robert Rooney, the senior Morgan Stanley executive on
the deal. A spokesman for Morgan Stanley, however, told Rolling Stone, "Our sole economic interest
was in the ongoing success of the SIV." But that wasn't Morgan Stanley's only motive. Not only could
the bank make the "big fat upfront fees" for structuring the deal, they could also turn around and sell
scads of their own mortgage-backed securities to the SW, which in turn would be marketed to
investors like Abu Dhabi and King County. In Cheyne, 25 percent of the original assets in the deal
came from Morgan Stanley - over time, $2 billion of the SIV's $9 billion to $10 billion portfolio of
assets came from the bank as well.
Internal Morgan Stanley memorandums show that the bank knowingly stuffed mortgages in the SW
whose borrowers were, to say the least, highly suspect. 'The real issue is that the loan requests do not
make sense," complained a Morgan Stanley employee back in 2005. He noted loans had been made to
a "tarot reading house" operator who claimed to make $12,000 a month, and a "knock off gold club
distributor" who claimed to make $16,000 a month. "Compound these issues," he groaned, "with the
fact that we are seeing what I would call a lot of this type of profile."
No matter - into the soup it went! Morgan sold mountains of this crap into Cheyne's SW, where it was
destined to be sold off to other suckers down the line. The only thing that could possibly get in the way
of the scam was some pesky ratings agency. Fortunately for the bank and the hedge fund, these
subprime SIVs were a relatively new kind of investment product, so the ratings agencies had little to go
on in the area of historical data to measure these products. One might think this would make the
ratings agencies more conservative. In fact, caution in the face of the unknown was supposed to be a
core value for these companies. As Moody's put it, "Triple-A structures should not be highly
dependent on untestable assumptions."
Years after the crash, it's a little insulting to see industry analysts blithely copping under oath to having
traded science for market share, especially since the companies continue to protest to the contrary in
public. Contacted for this story, Moody's and S&P insisted many of the documents in this case were
simply taken out of context, and that their analysis throughout has been rigorous, objective and
independent. It's a thin defense, but it's holding — for now. McGraw-Hill stock plunged nearly 14
percent when news of the Justice Department suit leaked, and dropped nearly 19 percent for February,
but has since regained much of its value — its stock rose nearly 16 percent in March and April, as
markets reacted favorably to, among other things, its recent settlement of the Cheyne and Rhinebridge
suits. The markets clearly think the ratings agencies will survive.
What's amazing about this is that even without a mass of ugly documentary evidence proving their
incompetence and corruption, these firms ought to be out of business. Even if they just accidentally
sucked this badly, that should be enough to persuade the markets to look to a different model, different
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companies, different ratings methodologies. But we know now that it was no accident. What
happened to the ratings agencies during the financial crisis, and what is likely still happening within
their walls, is a phenomenon as old as business itself. Given a choice between money and integrity,
they took the money. Which wouldn't be quite so bad if they weren't in the integrity business. Thank
you Matt Taibbi and shame on you Big 3
*****
This week a friend sent me a disturbing CNBC article written last week by Tracey Gaughran-Perez —
8o% of Pre-Packaged Foods in America Are Banned in Other Countries — based on a
new book — Rich Food, Poor Food, authors Mira and Jason Calton provide a list of what they term
"Banned Bad Boys" - ingredients commonly used in up to 8o% of all American convenience food that
have been banned by other countries, with information about which countries banned each substance
and why. And though it might not surprise you to hear that Olestra - commonly used in low/no-fat
snack foods and known to cause serious gastrointestinal issues for those who consume it
(understatement) - is on that list, having been banned in both the United Kingdom and Canada, you
may be shocked to hear that Mountain Dew, Fresca and Squirt all contain brominated vegetable oil, a
substance that has been banned in more than 100 countries "because it has been linked to basically
every form of thyroid disease -from cancer to autoimmune diseases - known to man."
You might also be upset to hear that the food coloring used to make your kid's delicious Mac & Cheese
dinner visually appealing - yellow #5 and yellow #6, namely - is made from coal tar, which among
other things is an active ingredient in lice shampoo and has been linked to allergies, ADHD, and cancer
in animals. Then there's azodicarbonamide - commonly found in frozen dinners and frozen potato
and bread products - which is used make things like bleach and foamed plastics like those found in
yoga mats (tasty!). Azodicarbonamide has been banned in most European countries because it's
known to induce asthma, and is in fact deemed so dangerous that in Singapore its use carries a hefty
$500,00 fine and up to 15 years in prison. Yet, according to the FDA, it's SO TOTALLY FINE for us to
keep shoveling it into our kid's face holes: "[Azodicarbonamide] is approved to be a bleaching agent
in cereal flour and is permitted for direct addition to food for human consumption."
Finally, there's butylated hydroxyanisole (BHA) and butylated hydroxytoluene (BHT) - found in Post,
Kelloggs and Quaker brand cereals - which is made from petroleum and is a known cancer-causing
agent. It's been banned in England and Japan, but those of us in the U.S. can keep right on serving up
to our children for breakfast. If you or your kids enjoy pre-packaged convenience foods commonly
found in grocery stores across the U.S. such as Froot Loops, Swanson dinners, Mountain Dew, and
frozen potato and bread products, you may think twice before purchasing them when you truly
understand what they contain: dangerous chemicals that other countries around the globe have
deemed toxic to the point that they're illegal, and companies are fined hundreds of thousands of
dollars for including them in food products. And anyone who doesn't find this disturbing is crazy,
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especially products openly marketed as meals for kids that contains chemicals known and recognized
world-wide as completely toxic.
Having suffered two serious strokes, to avoid a third I had to take a serious assessment of the foods
that I eat and as follow up to last week where I identified a number of healthy foods that should be the
staples of every diet, here are the 25 healthiestfoods for under $t.
Tofu: A pack of Tofu costs about a buck and is packed with healthy soy protein.
Sardines: Sardines offer heart-healthy oils. Where many larger fish populations are suffering from
overfishing, the smaller fishes like mackerel, sardines, and anchovies, remain well regulated and highly
healthful.
Spinach: Spinach has a high nutritional value and is extremely rich in antioxidants, especially when
fresh, steamed, or quickly boiled. Better yet, it's cheap!
Whole-Grain Pasta: Whole Grain Pasta takes a classic dinner treat and pumps up the nutrition,
without swapping out any of the taste at all!
Almonds: Raw almonds can be purchased in bulk at most health food stores to offset the typically
high prices of prepacked nuts. Full of essential nutrients and low in saturated fats, you can eat these
sweet flavored nuts raw or mixed into a variety of meals.
Canned Tomatoes: Canned Tomatoes are always at the ready when you have them in the pantry,
and offer crazy amounts of lycopene which has been proven to fight some cancers.
Lentils: Lentils are one of the best sources of vegan protein. They cook quickly and cost just a few
cents per ounce.
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Yogurt: Yogurt offers a quick source of dairy and protein. It's cheap, healthful, and sweet enough to
replace dessert.
Green Tea: Green Tea is a mild drink, proven to offer significant cancer-fighting benefits. Look for
boxes of bulk green tea packets in your grocery sotre that have been created in the U.S.A to ensure top
notch food standards.
Cauliflower: Cauliflower is low in fat and carbs, but high in dietary fiber, folate, and vitamin C. A
head of cauliflower will set you back about 2 bucks, but it can easily serve up to 4 family members!
Potatoes: Potatoes are filling and starchy, and full of phytochemicals, carotenoids, and natural
phenols.
Hummus: Garbanzo Beans can be purchased dried or in can form, and mixed into Indian dishes,
salads, or pureed into homemade hummus for a filling, healthful meal.
Peanut Butter: So it's the rare sale when you can find a whole jar for one dollar, but per serving,
peanut butter is cheap and packs a protein punch. Look for the natural varieties that don't add sugar
and other unnecessary preservatives in the mix.
Popcorn: When air- popped, popcorn is high in fiber, low in calories and fat, contains no sodium,
and is sugar free.
Canned Tuna: Canned tuna is a fantastic protein source, and full of omega 3's — which is great for
heart health, lowering triglycerides and cholesterol, and for brain function. It's also a great source of
Vitamin B12, which is necessary for brain and cell functioning!
Watermelon: Watermelon is filling and low in calories due to the amount of water it holds. It's also
packed with a number of antioxidants and vitamins. !
Pinto Beans: Pinto Beans may just be the cheapest protein source you'll ever find. They are easy to
prepare and versatile!
Water: Water is available in great abundance, and it's easy to forget how vital it is to our health and
diet. Try drinking a glass every time you feel hungry and see if you aren't just thirsty after all.
Oatmeal: Oats are high in fiber and low in price. Cook up a pot of oatmeal in the morning or mix
oats into homemade cookies for a nutritous treat.
Eggs: A half-dozen eggs cost about a dollar and are one of the least expensive ways to add protein to
your diet.
Kale: With Michael Pollan's recent call to eat plants, mostly leaves, bunches of kale offer a cheap,
versatile source of high-quality veggies to add to your diet.
Bananas: Bananas offer a hefty dose of potassium, while also making snack time simple with it's fit-
in-your-palm size.
Broccoli: Broccoli has been shown a big-time cancer-fighting green. Better yet, it's filling and
fibrous and easy to mix into any dinner.
Wild Rice: Wild Rice costs just a few cents more than white rice, but is packed with more nutrients
and vitamins. Stir it into any recipe that calls for white rice, but remember to plan on the extra
cooking time. Wild rice takes longer to cook than white.
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Beets: Beets are cheap and offer unique antioxidants fight against coronary artery disease and stroke,
lower cholesterol levels in the body and have anti-aging effect.
******
I have many Conservative (mostly Republican) friends who believe that most people who are
unemployed are without a job because they are too lazy, want to or because it is easy to live off of
largess of the government. In North Carolina which has an 8.8% unemployment rate many of the
jobless have been out of work for six months or more, thanks to a national environment in which there
are three times as many people seeking work as there are job openings. Nonetheless, the state's
government has just sharply cut aid to the unemployed. In fact, the Republicans controlling that
government were so eager to cut off aid that they didn't just reduce the duration of benefits; they also
reduced the average weekly benefit, making the state ineligible for about $700 million in federal aid to
the long-term unemployed. North Carolina isn't alone: a number of other states have cut
unemployment benefits, although none at the price of losing federal aid. And at the national level,
Congress has been allowing extended benefits introduced during the economic crisis to expire, even
though long-term unemployment remains at historic highs.
In an op-ed last Sunday in The New York Times - War On the Unemployed — Nobel
winning economist Paul Krugman blasts members of the G.O.P., who believe that ¢y percent of
Americans are "takers" mooching off the job creators, who in many states are denying health care to
the poor simply to spite President Obama. And that the war on the unemployed isn't motivated solely
by cruelty; rather, it's a case of meanspiritedness converging with bad economic analysis. In general,
modern conservatives believe that our national character is being sapped by social programs that, in
the memorable words of Paul Ryan, the chairman of the House Budget Committee, "turn the safety net
into a hammock that lulls able-bodied people to lives of dependency and complacency." More
specifically, they believe that unemployment insurance encourages jobless workers to stay
unemployed, rather than taking available jobs.
Let's be real. Yes, there are millions of people who game the system — you only have to watch several
Judge Judy shows to see these guys. But the average unemployment benefit in North Carolina is
$299 a week, pretax. So anyone who imagines that unemployed workers are deliberately choosing to
live a life of leisure has no idea what the experience of unemployment, and especially long-term
unemployment, is really like. I am sure that there is evidence that unemployment benefits make
workers a bit more choosy in their job search. When the economy is booming, this extra choosiness
may raise the "non-accelerating-inflation" unemployment rate — the unemployment rate at which
inflation starts to rise, inducing the Federal Reserve to raise interest rates and choke off economic
expansion. Krugman says that all of this is irrelevant to our current situation, since inflation is not a
concern and the Fed's problem is that it can't get interest rates low enough. While cutting
unemployment benefits makes the unemployed even more desperate, it does nothing to create more
jobs.
But wait — what about supply and demand? Won't making the unemployed desperate put downward
pressure on wages? And won't lower labor costs encourage job growth? No — that's a fallacy of
composition. Cutting one worker's wage may help save his or her job by making that worker cheaper
than competing workers; but cutting everyone's wages just reduces everyone's income — and it
worsens the burden of debt, which is one of the main forces holding the economy back. And let's not
forget that cutting benefits to the unemployed, many of whom are living hand-to-mouth, will lead to
lower overall spending — a gain, worsening the economic situation, and destroying more jobs.
Krugman summarizes his argument by saying that the move to slash unemployment benefits, is both
counterproductive and cruel; swelling the ranks of the unemployed even as it makes their lives ever
more miserable. Like the War on Drugs, this "undeclared" War on the Unemployed has to stop, as it
is only exists because it has been able to fly under the radar because too many fellow Americans
unaware of what is going on and the pain that it is causing.
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This week Joel Berg who leads the New York City Coalition Against Hunger and is a Senior Fellow
at the Center For American Progress posted a piece on his blog explaining how SNAP (Supplemental
Nutrition Assistance Program, better known as food stamps) became part of the Farm BM, for those
of us who didn't know.
A long line of jobless and homeless men wait outside to get free dinner at New York's Municipal Lodging House
in the winter of 1932-33 during the Great Depression
During the Great Depression, Americans foraged through garbage cans for food and dug in public
parks to find roots they could eat. Parents reluctantly sent their children door-to-door to beg. Ninety-
five people were admitted to New York City's four largest hospitals due to starvation in 1931. Twenty of
them died. That same year, the Municipal Lodging House for the homeless provided 408,100 lodgings
and 1,024,247 meals. A year later, in 1932, it provided 889,984 lodgings and 2,688,266 meals, at a
time when the entire New York City population was only 6.9 million people. Relief agencies
nationwide lost their ability to prevent starvation. Local governments, expected to fund relief efforts
themselves, began running out of money to do so. In May 1932, the average relief grant in Philadelphia
(out of which people were expected to pay for food and all other basic expenses) was cut to $4.32 per
family per week, equaling about $62 per week in today's money. In New York City, the average weekly
relief grant fell to $2.39 (about $35 in today's money). Baltimore gave needy families an average of 8o
cents and Atlanta provided 6o cents per week for whites and less for blacks.
The nation was near the point of revolution. At times, armed men would go into stores in large groups
to demand credit and, when refused, take food anyway. The term "food riot" became popular in the
press. Adding fuel to the fire was the country's glut of unused food. Neither farmers nor factory
workers had the money to buy each others' products. Oklahoma union activist and editor Oscar
Ameringer wrote: "The farmers are being pauperized by the poverty of the industrial populations and
the industrial populations are being pauperized by the poverty of the farmers."
Today it seems obvious to most of us that government should have purchased some of the excess
agricultural products and distributed them to the hungry, but at the time, opposition to government
involvement in social welfare, as well as the belief in the unlimited abilities of American charities, was
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deeply ingrained in American thought. The idea of the government buying food and distributing it for
free seemed radical, particularly to the Republicans in charge of the nation. In 1931, when Democratic
leader William McAdoo suggested that surplus wheat be distributed to the unemployed, President
Herbert Hoover rejected the idea, saying, "I am confident that the hungry and unemployed will be
cared for by our sense of voluntary organization and community service." Ironically, Hoover had first
become nationally known in America for his effective leadership in providing aid to starving
Europeans following World War I, but he couldn't accept the reality that his beloved United States
needed that same type of help.
As America's crisis worsened, Hoover would not budge in his opposition to domestic relief. In a 1932
speech, he decried government aid, saying: "A cold and distant charity which puts out its sympathy
only through the tax collector yields only a meager dole of unloving and perfunctory relief." He was
clearly blind to the fact that millions of Americans on the verge of starvation would have been grateful
for any sort of food aid, no matter how unloving and perfunctory. Two days before the election of 1932,
which he lost in a landslide to Franklin D. Roosevelt, Hoover declared himself unable to "find a single
locality where people are being deprived of food or shelter." Hoover was the nation's first significant
right-wing hunger denier. Wealthy people who dominated the boards of charities complained that
providing food aid would promote dependency and that private charity was more efficient than
government aid. Even progressive social workers believed that food aid "was an antiquated form of
relief, inconsistent with modern social work practice and the dignity of the client."
Yet the severity of the crisis eventually sunk in for many of our nation's leaders, and necessity trumped
ideology, as even staunch Republican Congressman Hamilton Fish supported a proposal to have the
government buy excess wheat for distribution to the poor, saying, "It is a disgrace and an outrage that
this country of ours, with overabundance of food stuffs, should permit millions of our own people to
continue to be undernourished and hungry." Citing instances in which Congress had aided the victims
of disasters abroad, Fish argued that the "first function of government is to take care of its own people
in time of great emergency. " Permitting people to starve, he declared, was "creating a hotbed for
communism." When Roosevelt took office, the controversy over whether to support food aid versus
other kinds of aid remained unsettled. His agriculture department received widespread and withering
criticism for slaughtering and then discarding hogs in order to reduce supply. In response, FDR
ordered the department to start distributing the meat to the hungry.
Today's liberals tend to forget that FDR repeatedly opposed giving out free money and food without
requiring work (especially when they blasted Bill Clinton for supposedly betraying the New Deal
tradition by supporting welfare reform). Roosevelt said direct relief was "a narcotic, a subtle destroyer
of the human spirit." Instead of continuing to sponsor a "spiritual and moral disintegration
fundamentally destructive to the national fiber," he said, the government must find work for those in
need and able to work "We must preserve not only the bodies of the employed from destruction but
also their self-respect, their self-reliance and courage and determination. Therefore, the Federal
government must and shall quit this business of relief." A pragmatist who sometimes contradicted
himself in order to solve pressing national problems, Roosevelt also significantly expanded the efforts
— begun in the previous administration, against Hoover's will — to distribute free commodities to low-
income Americans. FDR included other goods in addition to wheat and significantly increased the
volume of surplus food purchased and distributed by the federal government.
FDR also supported creation of the first Food Stamp Program, in 1938. The program operated by
permitting people on relief to buy orange stamps equal to their normal food expenditures; for every
one dollar worth of orange stamps purchased, 5o cents worth of blue stamps were received. Orange
stamps could be used to buy any food; blue stamps could only be used to buy food determined by the
Department of Agriculture to be surplus. Over the course of nearly four years, the program reached
approximately 20 million people in nearly half of the nation's counties, and cost a total of $262 million
(about three billion dollars in 2006 dollars).
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So that is the story of how food aid was tied to farm aid from the start. Today, though many rural and
suburban people rely on federal nutrition assistance programs (such as SNAP), they're perceived as
urban programs. Thus, they've remained in Farm Bills in order to try to win votes from urban
members of Congress. House Republicans now want to separate SNAP from the Farm Bill in order to
make it easier to make cuts.
In Berg's opinion, farm bills should be classified as 'food bills" and SNAP should continue to be part of
them. Food producers and consumers are mutually dependent upon each other. When so many
Americans are low-income and hungry or food insecure, that limits the amount of money they can
spend on food, thus limiting income for food producers. When producers can't afford to stay on their
land or face environmental threats, it threatens the availability of nutritious, fresh food for New York
consumers. A true food bill would aid hungry Americans and small family farmers alike. This post is
adapted from his book AU You Can Eat: How Hungry is America
My personal beliefs differ from Joel Berg because I believe that the biggest problem with the Farm
Bills are that the lobbyist representing big farma often hold feeding the poor hostage, in favor of farm
subsidies that benefit big agriculture/farms. As a result -- although food producers are mutually
dependent upon each other -- farm bills are often skewed to the benefit certain produce (oranges,
wheat, milk, beef, chicken) and mega-large farm consortiums. And how to fix this I don't know how....
Other than for the government (local, state & federal) to do whatever it can to eradicate hunger and
food insecurity in America, separate from anything else.
******
Last week Nelson Schwartz wrote an op-ed in the New York Times — Big Companies Paid a
Fraction of Corporate Tax Rate - what many suspected - that the biggest, most profitable
American companies paid only a fraction of the taxes they would owe under the official corporate rate,
according to a study released on Monday by the Government Accountability Office. Using
allowed deductions and legal loopholes, large corporations enjoyed a 12.6 percent tax rate far below
the 35 percent tax that is the statutory rate imposed by the federal government on corporate profits.
The findings come amid rising criticism of the tactics that some big companies use to lower their tax
bills.
In May, the Senate Permanent Subcommittee on Investigations examined the practices of
Apple, in particular how the technology giant had used overseas subsidiaries to sidestep billions in
taxes. At a hearing in late May on Capitol Hill, Apple's chief executive, Timothy D. Cook, insisted that
the company had fully complied with tax laws and had paid all it legally owed, both here and abroad.
Senator Carl Levin, a Michigan Democrat who chairs the subcommittee, and Senator Tom Coburn, an
Oklahoma Republican, requested the report to study the issue. The report by the G.A.O., which is the
investigative arm of Congress, focused on companies with more than $3.0 million in assets and what
they paid from 2008 to 2010, although it did not address the practices of specific companies. Even so,
the findings, along with the earlier reports about Apple, could complicate the efforts to reform the
federal tax code's treatment of companies.
Chief executives argue that Congress needs to overhaul the corporate tax system because the rates in
the United States are well above those of other developed countries. They add that their companies
pay taxes around the world, so their federal rate doesn't offer a complete picture of their bill. But
legislators like Mr. Levin say the issue is much more complex. The report found that even when
foreign, state, and local taxes were included, the tax rate of large companies rose only to 16.9 percent of
total income, still well below the official 35 percent. "Some U.S. multinational corporations like to
complain about the U.S. 35 percent statutory tax rate, but what they don't like to admit is that hardly
any of them pay anything close to it," Mr. Levin said in a statement. "The big gap between the U.S.
statutory tax rate and what large, profitable U.S. corporations actually pay is due in large part to the
unjustified loopholes and gimmicks that riddle our tax code."
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At the same time, big companies are shouldering a smaller part of the overall tax burden than in the
past. As a percentage of federal tax revenue, corporate taxes have fallen to 9 percent from more than
3o percent in the 1950s. Overall, corporations paid about $242 billion in federal taxes in 2012,
compared to $1.1 trillion taxes paid by individual taxpayers. Mr. Coburn said that he favors closing
loopholes and eliminating tax breaks even as the overall rate is lowered. "An individual's or
corporation's tax rate shouldn't be dependent on their ability to hire a tax lobbyist,"he said in a
statement. "We would be better off with a code that eliminated these loopholes so we can lower rates
for both corporations and individuals." With Democratic Conservatives and Republicans defending
loopholes that favor companies that they are beholding to, eliminating loopholes is definitely not in
our near future.... But at least the truth is out in the open for all to see.... And when you hear that
corporate America is being overtaxed
Its a lie
If you read some of the earlier postings in today's Weekend Offerings, you know that hunger and
food insecurity is at an epidemic proportion in America with 15 million children going to bed hungry
each night, even though almost 5o million are receiving supplemental nutritional assistance with food
stamps, school lunch programs and private charity programs. At the same time, the poor in America
are stereotyped and demonized in an effort to justify huge cuts in food stamps and other crucial
programs for low-income Americans. Last week on Moyers & Company, Bill Moyers spoke with
Greg Kaufmann, poverty correspondent for The Nation, who said, "people are working and they're
not getting paid enough to feed their families, pay their utilities, pay for their housing, pay for the
healthcare... if you're not paying people enough to pay for the basics, they're going to need help
getting food," Kaufmann tells Bill. "There are a lot of corporations that want to be involved in the
fight against hunger. The best thing they can do is get on board for fair wages." And this probably
won't happen without collective bargaining and/or unions.
Bill Moyers, "food stamps were at the core of the monster farm bill that went down to defeat in the
House of Representatives last week. That bill would have cut food stamps by some $20 billion over
10 years, but that was too little for House Republicans and too much for House Democrats, although
Senate Democrats had already agreed to cuts of more than $4 billion."
Web Link: http://billmoyers.com/segment/greg-kaufmann-on-the-truth-about-american-povertyi
There are almost 48 million people using food stamps a day, and over recent years that's a 70 percent
increase. Kaufmann: I think, is the proliferation of low-wage work. People are working and they're
not getting paid enough to feed their families, pay their utilities and pay for their housing, pay for the
healthcare. We had 28 percent of workers in 2011 made wages that were less than the poverty line.
Poverty wages. Fifty percent of the jobs in this country make less than $34,000 a year. Twenty-five
percent make less than the poverty line for a family of four, which is $23,000 a year. So, if you're not
paying people enough to pay for the basics, they're going to need help getting food. And food stamps
expanded because we went through the greatest the worst recession since the Great Depression. And it
did what it's supposed to do. And now, you know, mostly Republicans are saying, "Why are there so
many people on food stamps?" You know, they're claiming the recession's over, but we know that
most people on food stamps are, if they're getting work, it's low-wage work that doesn't pay enough to
pay for food.
The farm bill that failed in Congress last week would've spent $743.9 billion on food stamps and
nutrition over the next ten years. Republicans wanted to cut that by some $2o billion over the same
period, ten years. Given that we're spending $75 to $78 billion a year now on food stamps, do they
have a case? Maybe so if you are comfortable saying two million people should be thrown off food
stamps, 200,000 low-income children should not have access to meals, to their meals in school. Hey,
they can make that argument all they want. I think it's out of sync with the values of this country.
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Over the next ten years food stamps are projected to be one 1.7 percent of federal spending according
to the Congressional Budget Office. And for those who are concern fraud is less than one cent on the
dollar of food stamp spending is lost to fraud, less than one cent on the dollar. Food stamp recipients
are often characterized as urban and welfare when the truth is Food Research and Action Center has
shown that the percentage of households in rural districts participating in food stamps is the same as
the percentage of households in urban districts. As Kaufmann points out, hunger in America is not
about shortage of food, it is about poverty. Over one over one in three Americans, over too million
Americans are living at just twice the poverty level — which is less than $36,000 for a family of three
— defining poverty at $18,000 for a family of three. This is crazy if you think about poverty as access
to the basics that everybody needs — food, housing, healthcare, education. You try to provide this on
$18,000 a year.
At the same, we have a vast inequality in America, whereby the richest 400 people on the "Forbes"
list made more from the stock market gains last year than the total amount of the food, housing and
education budgets combined. This is 400 people out of 312 million. And the Wal-Mart corporation
made $17 billion last year and US major corporations are sitting on $2 trillion in cash. And the only
reason that these companies can get away with this inequality is that tens of millions of people are
using government programs to get by. Or as Moyers and Kaufmann say, taxpayers are ultimately
subsidizing Wal-Mart, who actually have paid employees helping colleagues to sign up for food
stamps. Think about it
If you were like me in the early days of the Internet, you probably remember typing your search query
into AltaVisa which went live in 1995. Alta Vista was the Cadillac of search engines until Google came
along. It was created by researchers at Digital Equipment Corporation's Network Systems Laboratory
and Western Research Laboratory who were trying to provide services to make finding files on the
public network easier. Paul Flaherty was responsible for the original idea, and two key participants
were Louis Monier, who wrote the crawler, and Michael Burrows, who wrote the indexer. The name
Alta Vista was chosen in relation to the surroundings of their company at Palo Alto. Alta Vista was
publicly launched as an internet search engine on December 15, 1995 at altavista.digital.com.
United States
Web
Images
Video
Local
Shopping
News
More
Googlel
google
google search
Search.
At launch, the service had two innovations that put it ahead of other search engines available at the
time: it used a fast, multi-threaded crawler (Scooter) that could cover many more webpages than were
believed to exist at the time, and it had an efficient search-running back-end on advanced hardware.
As of 1998, it used 20 multi-processor machines using DEC's 64-bit Alpha processor. Together, the
back-end machines had 13o GB of RAM and 500 GB of hard disk space, and received 13 million
queries every day. This made Alta Vista the first searchable, full-text database of a large part of the
World Wide Web. Another distinguishing feature of Alta Vista was its minimalistic interface, lost when
it became a portal, but regained when it refocused its efforts on its search function.
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AltaVista's site was an immediate success. Traffic increased steadily from 3OO,OOO hits on the first day
to more than 8O million hits per day two years later. In 1995, when AltaVista made its debut, the
company said it was processing 2.5 million search requests a day. (Today, Google, processes 5.1 billion
searches each day.) The ability to search the web, and Alta Vista's service in particular, became the
subject of numerous articles and even some books. AltaVista itself became one of the top destinations
on the web, and in 1997 it earned US$5o million in sponsorship revenue. It was once one of the most
popular search engines, but it lost ground with the rise of Google and was purchased in 2OO3 by
Yahoo!, which retained the brand but based all AltaVista searches on its own search engine. On June
28, 2O13, Yahoo! announced that it would be shutting down AltaVista on July 8, 2O13.
What went wrong? Two things led to Alta Vista's eventual demise. First, there was Google, a search
engine everybody is familiar with today. In 1996, AltaVista became the exclusive provider of search
results for Yahoo!. In 1998, Digital was sold to Compaq and in 1999, Compaq redesigned AltaVista as
a web portal, hoping to compete with Yahoo!. Under CEO Rod Schrock, AltaVista abandoned its
streamlined search page, and focused on added features such as shopping and free email. In June
1998, Compaq paid AltaVista Technology Incorporated ("ATI") $3.3 million for the domain name
altauista.com - Jack Marshall, cofounder of ATI, had registered the name in 1994. Meanwhile, it
became dear that AltaVista's portal strategy was unsuccessful, and the search service began losing
market share, especially to Google. After a series of layoffs and several management changes,
AltaVista gradually shed its portal features and refocused on search. By 2OO2, AltaVista had improved
the quality and freshness of its results and redesigned its user interface. But by then it was too late as
Google was growing at warp-speed.
T.
AltaViste
The most powerful and useful guide to the Net
Ask Altairistarm a question. Or enter a few words in any language •
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Example: Where can I download mp3 files for instrumental music?
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And secondly, around the time Google came into existence, Alta Vista began changing hands, starting
with a sale to Compaq. In June 1999, Compaq sold a majority stake in AltaVista to CMGI, an internet
investment company. CMGI filed for an initial public offering for AltaVista to take place in April
2000, but as the internet bubble collapsed, the IPO was cancelled. It would eventually end up in
Yahoo's portfolio as part of a larger transaction (Yahoo purchased Overture Services, Inc. in 2003,
which owned Alta Vista at the time).
Fast forward to today and hardly anyone uses Alta Vista anymore. Last week, Jay Rossiter, executive
vice president of platforms at Yahoo, which owns Alta Vista, said that the search engine would be
closed on July 8. Its understandable that Yahoo would shut Alta Vista down, though one could argue
that the once popular search engine deserved better than to be lumped into a blog post announcing
several product closures. But then this is what happens when technology companies lose their
visionaries and vision. By the way
could this be the future of Apple
THIS WEEK's QUOTES
"Charity is a great thing, but it's not the way to end hunger. We don't fund our
Department of Defense through charity, you know. We shouldn't you know, see that
our kids are healthy through charity either."
Actor, Jeff Bridges from the new documentary film "A PLACE AT THE TABLE"
"Hunger in America is not about the shortage offood, it is about poverty."
Greg Kaufmann, poverty correspondent for The Nation
GREAT VIDEO
EVER!
This Video Is Amazing .... Log On Below >>>
Website: http://www.youtube.com/watch popup?vrAi4tPe80S6Q
THIS WEEK's MUSIC
For me the first great disco club with The Cheetah in New York and the undisputed pantheon of
disco clubs was Studio 54 also in New York. And although elsewhere around the world, Tramp in
London, Ministry ofSound also in London, Regines in Paris, Jimmy'z in Monaco, Byblos in St.
Tropez, Pacha in Ibiza, Cavo Paradiso in Mykonos, Jackie 0 in Rome, The New York City Club in
Johannesburg and Rctules in Johannesburg and Capetown and the home of house music, the famed
Paradise Garage in New York (named after the garage that once occupied the 84 King Street
EFTA01143187
space). It reign between 1976 and 1987 and proved to be hugely influential on budding nightlife
impresarios. Megaclubs like Ministry of Sound have cited the former New York dance spot as the
inspiration for their own wildly successful models.
At the time Roxbury opened, there had been a number of famous clubs in Los Angeles Pips, the Roxy
and Carlos & Charlie, but none captured the cache of clubbing in the 199os than Roxbury which
opened in 1990 and ran until 1997. Roxbury inspired the 1998 comedy film, A Night at the
Roxbury which was based on a recurring skit on television's long-running Saturday Night Live
called 'The Roxbury Guys." Saturday Night Live regulars Will Ferrell, Chris 'Caftan, Molly
Shannon, and Colin Quinn starred in the film.
Is owners Brad Johnson (whose father owned the legendary Seller in New York's Upper
Westside), Elie and Dimitri Samaha and (and former LA Laker) Norm Nixon and his wife (the
actress) Debbie Allen created the West Coast's premier celebrity playhouses, hosting newsmakers
such as Madonna, Prince, Kiefer Sutherland. Julia Roberts. Arsenio Hall. Eddie Murphy. Sly
Stallone, Mickey Rourke, Wayne Gretzky, Tom Cruise and the entire roster of The Los Angeles
Lakers. Although the dub claimed to have a non-discriminatory door policy, everyone inside seems to
be (to put it mildly) facially gifted. Men tend to look like the models in the C&R commercials (both the
before and the after), while the predominant female fashion influence is Julia Roberts in "Pretty
Woman" (the before and the after). The most important male fashion accessory is muscles and for
females, it's legs.
The dance floor is packed from the time it opened about to:3o, with couples turning the beat around
with a mix of Top 40, R&B and Hip Hop tunes from the 1970s, '8os and '9os. One nice touch: The
dance floor is dim, with no traditional disco lights. Weary dancers could rest up on the comfortable
overstuffed couches in the hallway alcoves, shoot a game of pool or prepare to do battle to get into the
VIP room. But the real action was the VIP room. Though the club may be packed with stars (one
Tuesday turned up Prince, Gerardo, Elle MacPherson, Charles Fleischer and New York club fixture
Nikki Haskell), they're hidden away from the hoi polloi and sometimes spirited in and out on a back
staircase or escorted in by the bouncers. I remember one evening when Brad Johnson asked me and
my cousin Jude, if a young Shaquille O'Neal could join our booth with his date the actress (21 Jump
Street) Holly Robinson. This week, I would like to share some of the music that Roxbury rocked.
Playlist
Night at the Roxbury theme song
http://www.youtube.com/watch?v=HocVKHcAyi
Lenny Karvitz - American Woman -- http://www.youtube.com/watch?v=gKgYCgjP K4
Janet Jackson - Nasty -
http://www.youtube.com/watch?v=ldi9677mj60
MC Hammer — U Can't Touch This -- httpliwwwyoutube.comiwatch?viqpn2oyEaxa
Young MC — Bust And Move -- http://www.youtube.com/watch?v=8Akd hAEeFE
M.A.R.S. - Pump Up The Volume -- http://www.youtube.com/watch?v=eGPhUr-T6UM
Tone Loc - Wild Thing - httpwwwwyoutube.comiwatch?v=387ZOGSKvSg
Notorious B.I.G. - Big Poppa
http://www.youtube.com/watch?v=phaJXp zMYM
Warren G - Regulateft. Nate Dogg - http://www.youtube.com/watch?v=1p1PyJca
Vanilla Ice — Ice Ice Baby -- http://www.youtube.com/watch?v=rog8ou-ZepE
EFTA01143188
Dr. Dre — Nuthin' But a G Thang
http://wwwyoutube.com/watch?v=thr5U8ZhlrY
Snoop Dogg — Drop it Like its Hot -- http://vAvw.youtube.comAvatch?v=RaCodgL9cvk
DJ Jazzy Jeff & The Fresh Prince — Summertime -- http:/Avviwyoutube.com/watch?v=Kr0tTbIbmVA
TLC - No Scrubs -- http://www.youtube.comAvatch?v=VyfLER3Z0-Q
Tyga — Bitch Betta Have My Money -- http://m.youtube.com/watch?v=cmWa2GyB5-M
N.W.A. - Express Yourself -- http://vAvw.youtube.com/watch?v=u3 I FO 4d9TY
Bobby Brown - Every Little Step -- http://www.youtube.com/watch?v=P0FKzPfsv1/44
Michael Jackson - Billy Jean -- littp://www.voutube.com/watch?v=Zi XLOBDo Y
I hope that you enjoyed this week's offerings and wish you and yours a great week
Sincerely,
Greg Brown
Gregory Brown
Chairman & CEO
GlobalCast Partners, LW
US:
Tel:
Fax:
Skvi
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