When we stop reeling from the overwhelming fact that our economic system just spun out of control (though it will probably come back) we’ve all got to ask ourselves the big questions: How did this happen? Did I personally contribute? Can I live my life in accordance with my values of environmental sustainability and still function in our capitalist system? Yeah, so I know that last question just sent 99% of readers clicking away to Perez Hilton…

If you’re still with me, here’s the thing that I’ve been thinking about: macroeconomics shows us that our capitalist system requires continual growth. Continual consumption of natural resources and environmental degradation as a result. Some authors even call it carbon-based growth to differentiate between a petroleum based economy and… something else. What else?? Here’s a chunky quote about our petroleum-based economy:

Research by the McKinsey Global Institute and McKinsey’s Climate Change Initiative finds that reconciling these two objectives means that “carbon productivity,” the amount of GDP produced per unit of carbon equivalents (CO2e) emitted, must increase dramatically. To meet commonly discussed abatement paths [to stop global climate change], carbon productivity must increase from approximately $740 GDP per ton of CO2e today to $7,300 GDP per ton of CO2e by 2050—a tenfold increase. This is comparable in magnitude to the labor productivity increases of the Industrial Revolution. However, the “carbon revolution” must be achieved in one-third of the time that economic transformation took in the Industrial Revolution if we are to maintain current growth levels while keeping CO2e levels below 500 parts per million by volume (ppmv), a level that many experts believe is the maximum that can be allowed without significant risks to the climate.

What this means is that it may be impossible to correct global warming using our current economic system. We need to examine our economic system in order to support sustainability, living within the means available to us without further damaging our environment. The financial meltdown, global climate change, they’re both symptoms of one REALLY BIG problem: capitalism without sustainability.

We kind of already knew that, but somehow no one seems to ever just say it outright. Back to the finance world, aka the witch’s brewpot of capitalism.

The “did I personally contribute” question is valid when we look at how we can change. Do you invest in mutual funds that in turn own stocks from companies you cannot support? How about your 401K? Those greedy-ass investment bankers who tanked our economy were leveraging something: YOUR money. Do the due-diligence and examine your investments to ensure they’re in line with your values. You may own Exxon stock and not even know it. Do you buy too much plastic on a daily basis? Lord knows I do, and it drives me crazy! I hate plastic, but even Trader Joes wraps their veggies in it! (yup, time to go write that email to TJs corporate office…) Okay, so we get it on the environmental impact of daily habits. We’re saving up for the Prius or better yet, the Aptera. But we still participate every day in an economic model that demands continuous expansion to sustain it’s health. We’re hurting now because of shrinkage. Everything we’ve been taught tells us this shrinkage is BAD. People are losing jobs and houses. We haven’t even BEGUN to see the impact on retirement savings that have now evaporated. Life is getting harder.

But the pain is necessary. Until we find a widespread and sustainable form of energy production (beyond resource depletion), the world cannot support a western lifestyle for everyone on earth. What does a sustainable economic model look like?

Maybe socialism, and definitely with a LOCAL emphasis. For us Americans, rugged individualists that we are, there’s always the pain-threshhold question associated with socialism: how much pain would you like to subject your neighbors to before you’ll pay more taxes to help them? How about someone else’s neighbors? How about rude people? How about lazy people who just lie and don’t work? Yup, gets us every time. We cringe at socialism. But I guess my argument is that it provides a cushion against economic contraction, which we need if we are going to try for zero-sum growth, meaning some periods of expansion balanced against some periods of contraction. We need to pull back from globalism and back to local self-sufficiency. My mind reels at how Luddite this starts to sound, but we really do need to stop consuming plastic crap from overseas, and support local economies. Green Party style.

Here’s a quote (my emphases added) from an excellent article on no-growth economics by Stephen Stoll in Har…:

“Our trouble lies in a simple confusion, one to which economists have been prone since the beginning of the Industrial Revolution. Growth and ecology operate by different rules. Economists tend to assume that every problem of scarcity can be solved by substitution, by replacing tuna with tilapia, without factoring in the long-term environmental implications of either. But whereas economies might expand, ecosystems do not. They change—pine gives way to oak, coyotes arrive in New England—and they reproduce themselves, but they do not increase in extent or abundance year after year. Most economists think of scarcity as a labor problem, imagining that only energy and technology place limits on production. To harvest more wood, build a better chain saw; to pump more oil, drill more wells; to get more food, invent pest-resistant plants. That logic thrived on new frontiers and more intensive production, and it held off the prophets of scarcity—from Thomas Robert Malthus to Paul Ehrlich—whose predictions of famine and shortage have not come to pass. The Agricultural Revolution that began in seventeenth-century England radically increased the amount of food that could be grown on an acre of land, and the same happened in the 1960s and 1970s, when fertilizer and hybridized seeds arrived in India and Mexico. But the picture looks entirely different when we change the scale. Industrial society is roughly 250 years old: make the last ten thousand years equal to twenty-four hours, and we have been producing consumer goods and CO2 for only the last thirty-six minutes. Do the same for the past 1 million years of human evolution, and everything from the steam engine to the search engine fits into the past twenty-one seconds. If we are not careful, hunting and gathering will look like a far more successful strategy for survival than economic growth. The latter has changed so much about the earth and human societies in so little time that it makes more sense to be cautious than triumphant.”

James Surowiecki of the New Yorker called the US economy the provberbial shark. If it doesn’t keep swimming it dies. That can’t be good.

originally posted on www.duhpookie.com

Big Government by WageLaborer

Obama wants to double the amount of US troops in Afghanistan and is pressuring NATO to supply more, also.

He insists that we must “win” in Afghanistan, but doesn’t say what “winning” is. When asked, the military commander states that he has no idea.

But, reading between the lines, as I have learned to do in this Orwellian society we live in, they are trying to establish a US friendly strong central government in Afghanistan.

How’s it working out for them? Not so well. Afghanistan is a decentralized tribal country, (much more than Iraq, where, although family ties are still strong, a strong central government existed before the US invaded and took it over.) Democracy Now had an interesting interview with an aid worker who told how US contractors built 41 courthouses and then tried to hand them over to the Afghan Justice Dept, who pointed out that they didn’t have staff, furniture or utilities to run them. The tribes have their own system of justice.

Every centralized government has gone through a period where they consolidated their power. Most people don’t like being run by tribal warlords. The US has its own stories of towns run by corrupt sheriffs in cahoots with the local elite, especially in the South. We have the story of the taming of the Wild West, with the same scenario - big government coming in and restoring justice corrupted by violent local thugs in power.

So Americans tend to think of Big Government as the arbitrator of justice. Federal troops escorting 5-year old African American girls to elementary school past jeering crowds of boorish white people. Starting with Teddy Roosevelt, the protection of some of the most beautiful parts of America, like Yosemite and Yellowstone, from private predation. The Supreme Court as the last chance for a fair trial.

Ironically, those Americans who don’t like Big Government tend to be the more politically conservative, especially in the South, where many are still angry that their tribes lost to the Feds 144 years ago. But these are the same ones who are especially enthusiastic about killing Afghans who resist having outside agitators coming in to their country and forcing centralized oppression on them.

Americans need to quit worrying about the tribal warlords in Afghanistan. What we have here is worse. We have corporate warlords who have captured our centralized government and are using its powerful structure to loot and oppress us.

The bank bailouts are the most publicized, but the giveaway of public land for private profit is just as outrageous. What about taxpayer subsidies to corporations who shut down American factories and move them to cheaper labor countries? What about the transfer of wealth from the poor to the rich in the last three decades? What about the relaxing of air and water pollution rules?

And the ongoing attack on our personal freedoms. The latest is the proposal to centralize and computerize our medical records, so that everything you tell your doctor, the results of your lab tests and xrays, etc., will be available to whoever has access to those records. In other words, thousands of people, including insurance companies and the FBI and the military.

And now you have to submit fingerprints, bodily fluids and background checks to get many jobs! You now have to show two forms of ID to get a job. You can’t travel out of the USA without a passport. You can’t buy a plane or train ticket, or check into a hotel, without a government issued ID.

Listen up, America. You can’t “export freedom” to other countries when you don’t have it here. Do you want to see our future? Look at Iraq. They now have checkpoints, fingerprints, retina scans, more prisons than they had before, and soldiers breaking into their houses without warrants.

The corporate warlords who have seized our government have the same plans for us. Let’s concentrate on regaining our own country and quit trying to conquer other people’s countries.

CRA requires banks with branches in disadvantaged communities stop discriminatory practices called redlining. Redlining means that no matter what the credit worthiness of a borrow is, if he or she lives within certain boundaries, banks summarily dismissed their loan applications. While redlining is technically illegal, banks continued to practice it anyway. CRA said that if you want to do business in a community, you need to find ways to responsibly invest in it. One way to do so is to find credit-worthy borrowers and provide them with mortgages. This worked very well for over 30 years.

Although the Act’s critics claim otherwise, CRA does NOT mandate that banks lend to disadvantaged borrowers who are not credit-worthy, nor did it lead to banks lowering their underwriting standards to comply with the law. According to an independent study of 2006 mortgage loan data conducted by the law firm Traiger & Hinckley LLP, CRA actually deterred banks from engaging in the kinds of risky and subprime lending that brought on the foreclosure crisis. Specifically, the findings show that:

1. CRA banks were significantly less likely than other lenders to make a high cost loan;
2. The average APR on high cost loans originated by CRA banks was appreciably lower than the average APR on high cost loans originated by other lenders;
3. CRA banks were more than twice as likely as other lenders to retain originated loans in their portfolios; and
4. Foreclosure rates were lower in metropolitan statistical areas with greater concentrations of bank branches.

Whether one agrees with CRA’s mandate that banks responsibly serve the communities in which they accept deposits or not, the data shows that CRA actually deterred irresponsible lending. Further, the Treasury Department and the FDIC have emphatically stated that CRA is in no way responsible for the situation we are in today.

Instead of blaming CRA, we should extend CRA provisions to the independent mortgage companies and bank affiliates from which at least 75% of subprime loans originated. To continue to mislead the public on the benefits of CRA is not only immoral, but it would lead us into situation in which more – not less – of the irresponsible lending that created our current meltdown takes place.

Cameras will be following the president-elect and his family every step of the way during the day — and you’ll be able to watch it live streaming on MTV.com. Here’s a look at where they’ll be for the ceremony, the parades — and of course the Youth Inaugural Ball and other balls throughout the evening.

» 8:25 a.m.: Obamas leave Blair House for prayer service at St. John’s Episcopal Church

» 8:35 a.m.: Prayer service

» 9:45 a.m.: Church service ends; Obamas depart for the White House

» 10:05 a.m.: Obamas arrive at White House for coffee with the Bushes

» 11 a.m.: Motorcade departs for the Capitol

» 11:30 a.m.: Bushes and Obamas proceed to platform on the West Front; California Senator Dianne Feinstein will issue the call to order and deliver brief welcoming remarks, followed by an invocation from Dr. Rick Warren and a performance from Aretha Franklin (who also sang at Bill Clinton’s first inauguration)

» 11:50 a.m.: Joe Biden is sworn in as vice president by Supreme Court Justice John Stevens

» 12 p.m.: Barack Obama is sworn in as president by Supreme Court Chief Justice John Roberts. Obama, with his hand on Abraham Lincoln’s inaugural Bible, will recite the same oath as his predecessors: “I do solemnly swear (or affirm) that I will faithfully execute the office of president of the United States and will, to the best of my ability, preserve, protect and defend the Constitution of the United States.” Musical performance from John Williams, Yo-Yo Ma, Itzhak Perlman, Gabriela Montero and Anthony McGill, followed by “Hail to the Chief” and a 21-gun salute

» 12:05 p.m.: Inaugural address, followed by a poem written and recited by Elizabeth Alexander and a benediction from Dr. Joseph Lowery. The national anthem will be performed by the U.S. Navy Band Sea Chanters

» 12:30 p.m.: Ceremony concludes

» 12:35 p.m.: Bush departs via helicopter; Cheney departs by limo

» 12:45 p.m.: Obama signs inauguration papers in the President’s Room

» 1:00 p.m.: Obama attends congressional luncheon

» 2:15 p.m.: Obama and Biden review troops at Capitol

» 2:30 p.m.: President Obama leads the parade from the Capitol along Pennsylvania Avenue to the White House

» 3:15 p.m.: Arrival at the White House

» 3:45 p.m.: Obamas and Bidens proceed to the reviewing stand; inaugural parade continues until 6 p.m.

» 7 p.m.: The official inaugural balls begin with the Neighborhood Ball at the Washington Convention Center, with performers scheduled to include Beyoncé. Mary J. Blige, Mariah Carey, Faith Hill, Jay-Z, Alicia Keys, Shakira, Stevie Wonder and others. Nick Cannon will DJ.

The event, expected to include the president and first lady’s first dance of the night, will be broadcast on ABC beginning at 8 p.m. From there, it’s on to other celebrations, including MTV’s Youth Ball.