Galindez writes: "For the first time in their race for nomination as the Democratic Party's candidate for president, all five of the major declared candidates shared the same stage Friday night. The presidential hopefuls came together at the Iowa Democratic Party's annual Hall of Fame Dinner, a gathering of more than 1,300 Iowa Democrats."
Democratic presidential candidates, from left, Bernie Sanders, Martin O'Malley and Hillary Rodham Clinton stand on stage during the Iowa Democratic Party's Hall of Fame Dinner, Friday, July 17, 2015, in Cedar Rapids, Iowa. (photo: Charlie Neibergall/AP)
Bernie, Hillary, and O'Malley Take Aim at the GOP
By Scott Galindez, Reader Supported News
19 July 15
or the first time in their race for nomination as the Democratic Party’s candidate for president, all five of the major declared candidates shared the same stage Friday night. The presidential hopefuls came together at the Iowa Democratic Party’s annual Hall of Fame Dinner, a gathering of more than 1,300 Iowa Democrats.
It was the first chance to gauge a single crowd’s reaction to all five candidates. As expected, Jim Webb and Lincoln Chafee rarely drew applause. It was my first time to see Chafee, and I came away still wondering why he had even entered the race. Both Chafee and Webb argued that they could work across the aisle and break the gridlock. What they don’t seem to understand is that’s not what voters of either party are looking for.
On the Democratic Party side, voters saw their high hopes evaporate when President Obama sought to work with a GOP Congress that was not interested in working with him. That has led Democrats to seek a candidate who will continue the fight beyond 2016. It is the reason so many were drawn to Senator Elizabeth Warren and so many are now backing the surging senator from Vermont, Bernie Sanders.
Chafee received some applause as he told the crowd about what he called his longtime commitment to many issues, but he spoke as if he were reading a laundry list, and there were no memorable sound bites in his lackluster speech. The candidates spoke in alphabetical order, which put the former governor and senator from Rhode Island first.
It was no surprise that the candidate with the most supporters in the room was the candidate who raised the most money in the first quarter. Former senator and secretary of state Hillary Clinton has the support of establishment Democrats at this stage. I have seen several Clinton stump speeches over the years, and I think her passionate address on Friday night was one of the best speeches she has delivered. Clinton focused her fire on the GOP, naming Trump, Walker, and Iowa governor Terry Brandsted by name. She drew attention to her differences from the GOP more than her differences from the other Democrats, which was the case for all the candidates.
Clinton took aim at Republicans who express skepticism about climate change by claiming “I’m not a scientist.” She said, “I am not a scientist either. I’m just a grandmother with two eyes and a brain, and I am not going to let them take us backwards.”
Clinton had the largest pre-dinner party. A few hundred supporters enjoyed pizza and a cash bar a few blocks away and then marched to the Des Moines Convention Center, where the award dinner was held.
Former Maryland governor Martin O’Malley held his pre-event party in a pub near the convention center. All of the campaigns were allowed to buy 200 seats at the dinner, while the rest of the 1300 seats were filled by donors who didn’t get their tickets from the campaigns. O’Malley’s section was enthusiastic when he took the stage and cheered him throughout his speech. There were signs that there is support for O’Malley’s message, but clearly Hillary and Bernie had more support in the room.
Before the event, Clinton and O’Malley supporters lined both sides of the street outside the convention center, chanting slogans at each other: Clinton supporters chanted “We believe that she will win” while O’Malley supporters shouted back his accomplishments as governor of Maryland.
Senator Bernie Sanders held a press conference with dozens of veterans prior to the dinner. Sanders, who served as chairman of the Senate Veterans Committee, is enjoying strong support from veterans. I’ll do a separate story on the event with veterans and the senator’s red state tour this weekend.
His supporters at the dinner were passionate from the opening bell. After the pledge of allegiance, a chant of “Bernie, Bernie” came from his section of tables. While I don’t think Webb or Chafee had 200 supporters at the dinner, both Clinton and Sanders had more than 200 supporters in the room.
While Clinton focused her fire on Republicans, Bernie had his sights set on billionaires. As he took the stage his supporters chanted his name, and by the end of the speech he had the whole room standing.
There were several points when Bernie drew the O’Malley supporters to their feet, especially on the issue of racial justice. Sanders was the only candidate who spoke about police violence against African Americans. He also drew comparisons between minority unemployment and incarceration, which drew a standing ovation.
His call for single payer healthcare and free tuition at public universities also were met with applause by the crowd of establishment Democrats. Following the event I saw an African American women in tears thanking Bernie for addressing police violence.
I know I said that the candidates didn’t mention each other by name, but that isn’t true. Former Virginia senator Jim Webb mentioned Bernie Sanders a few times. I wondered if Webb was trying to position himself to be Bernie’s running mate. Many in the crowd streamed out of the convention center during Webb’s remarks. He was very low key, and his concerns about the nuclear deal with Iran and his defense of the Vietnam War were met with silence. I have seen Webb a few times and haven’t seen any fire in his belly. I think he is definitely running for vice president and could be an option for Hillary.
After the dinner I asked Martin O’Malley if he still thinks Senator Sanders’ support is a protest vote. While he backtracked on that, he did sum up what seemed to be the underlying attitude of all the candidates toward each other: Respect.
During an office opening in Des Moines on Thursday night, Bernie’s Iowa director, Robert Becker, reminded hundreds of volunteers that in Iowa, more than in any other state, showing respect for the other candidates is important. He reminded the crowd that on caucus night they will need to sway other candidates’ supporters to join them in the second round after some campaigns don’t reach the 15% threshold. So it wasn’t a surprise that none of the candidates attacked each other on Friday night.
Scott Galindez attended Syracuse University, where he first became politically active. The writings of El Salvador's slain archbishop Oscar Romero and the on-campus South Africa divestment movement converted him from a Reagan supporter to an activist for Peace and Justice. Over the years he has been influenced by the likes of Philip Berrigan, William Thomas, Mitch Snyder, Don White, Lisa Fithian, and Paul Wellstone. Scott met Marc Ash while organizing counterinaugural events after George W. Bush's first stolen election. Scott will be spending a year covering the presidential election from Iowa.
Reader Supported News is the Publication of Origin for this work. Permission to republish is freely granted with credit and a link back to Reader Supported News.
Ellen Pao Isn't Harassed Because She's Female. It's Because She's a Feminist
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=30488"><span class="small">Jessica Valenti, Guardian UK</span></a>
Sunday, 19 July 2015 12:13
Valenti writes: "You'd be hard-pressed to find a female boss in Silicon Valley who hasn't faced some sort of harassment, but it's difficult to imagine that anyone has gotten more hate than former Reddit CEO Ellen Pao."
Ellen Pao has had a tough year. (photo: Robert Galbraith/Reuters)
Ellen Pao Isn't Harassed Because She's Female. It's Because She's a Feminist
By Jessica Valenti, Guardian UK
19 July 15
While high-powered Silicon Valley women like Sheryl Sandberg encourage women to take a seat at the table, Pao flips the table over
ou’d be hard-pressed to find a female boss in Silicon Valley who hasn’t faced some sort of harassment, but it’s difficult to imagine that anyone has gotten more hate than former Reddit CEO Ellen Pao. From racist “Chairman Pao” memes to hate mail and death threats, Pao has been on the receiving end of some of the worst the internet has to offer. Indeed, in her resignation note on the site, Pao wrote that some of what she’s seen on Reddit “made me doubt humanity,” and she urged users to “remember the human,” noting, “I have a family, and I have feelings.”
It’s clear, though, that what made Pao a target wasn’t solely her gender; She wasn’t just being attacked for being female, but for being a feminist. As Kaliya Young, founder of She’s Geeky, told the Guardian recently, “Ellen was at the center of a high-profile sexual discrimination suit versus a major VC firm and she was put in charge of the teenage boy section of the internet. What did you expect was going to happen? It was inevitable that they would turn on her.”
Now, Pao is far from the first notable female CEO in Silicon Valley to deal with sexism. When Marissa Mayer announced her pregnancy the same day she was appointed CEO of Yahoo, she was both criticized for saying she would only take a few weeks leave and for believing she could run a Fortune 500 while parenting. (After she gave birth, she was taken to task for banning telecommuting while building herself an office nursery.) And at Mayer’s first annual shareholders’ meeting for Yahoo, one guy took the microphone to ask Mayer a question and said, “I’m a dirty old man, and you look attractive, Marissa.”
And Facebook COO Sheryl Sandberg – who literally wrote the book on sexism in the workplace – kicked off her bestseller Lean In with an anecdote about a less explicit kind of sexsim: she was giving a presentation at a company when she asked where the women’s restroom was. A senior partner couldn’t give her the answer, because she was the only woman to have pitched the company in his time there.
Now, neither Sandberg nor Mayer were heading Reddit, a space so notorious for its noxious sexism and racism that the Southern Poverty Law Center called it the most hateful place on the internet. And both are white women, largely immune from the racist attacks that Pao endures.
But what’s also extremely relevant is that unlike Pao, their stance on feminism is a little bit more palatable. Mayer has distanced herself from the term, claiming that gender isn’t really an issue in tech. And while Sandberg is one of the most famous women fighting sexism, her push for equality is much more about working within the system then, well, suing it. While Sandberg is encouraging women to take a seat at the table, Pao is flipping the table over.
We need both styles of feminism – women taking a more cheerful, mainstream approach, and women taking names. But the less agreeable a woman’s activism, the more likely she is to get taken down for it.
As sociologist and former Reddit moderator Katherine Cross wrote at Feministing, “Outspoken women, especially non-white women like Pao, are instant targets if they publicly acknowledge the existence of prejudice, worse still if they purport to do something about it.”
There are lots of theories as to why Pao resigned/was pushed out - and harassment is just one piece of that puzzle. But if we want to create change in Silicon Valley, we need more women like Pao - leaders who are willing to put their asses, and jobs, on the line for equality.
Parry writes: "As with the dubious naval clash off the coast of North Vietnam in 1964, which helped launch the Vietnam War, U.S. officials quickly seized on the MH-17 crash for its emotional and propaganda appeal - and used it to ratchet up tensions against Russia.
The MH-17 crash site. (photo: Russia Insider)
MH-17 Mystery: A New Tonkin Gulf Case?
By Robert Parry, Consortium News
19 July 15
In 1964, the Tonkin Gulf incident was used to justify the Vietnam War although U.S. intelligence quickly knew the facts were not what the U.S. government claimed. Now, the MH-17 case is being exploited to justify a new Cold War as U.S. intelligence again is silent about what it knows, writes Robert Parry.
ne year ago, the world experienced what could become the Tonkin Gulf incident of World War III, the shoot-down of Malaysia Airlines Flight 17 over eastern Ukraine. As with the dubious naval clash off the coast of North Vietnam in 1964, which helped launch the Vietnam War, U.S. officials quickly seized on the MH-17 crash for its emotional and propaganda appeal – and used it to ratchet up tensions against Russia.
Shocked at the thought of 298 innocent people plunging to their deaths from 33,000 feet last July 17, the world recoiled in horror, a fury that was then focused on Russian President Vladimir Putin. With Putin’s face emblazoned on magazine covers, the European Union got in line behind the U.S.-backed coup regime in Ukraine and endorsed economic sanctions to punish Russia.
In the year that has followed, the U.S. government has continued to escalate tensions with Russia, supporting the Ukrainian regime in its brutal “anti-terrorism operation” that has slaughtered thousands of ethnic Russians in eastern Ukraine. The authorities in Kiev have even dispatched neo-Nazi and ultranationalist militias, supported by jihadists called “brothers” of the Islamic State, to act as the tip of the spear. [See Consortiumnews.com’s “Ukraine Merges Nazis and Islamists.”]
Raising world tensions even further, the Russians have made clear that they will not allow the ethnic Russian resistance to be annihilated, setting the stage for a potential escalation of hostilities and even a possible nuclear showdown between the United States and Russia.
But the propaganda linchpin to the West’s extreme anger toward Russia remains the MH-17 shoot-down, which the United States and the West continue to pin on the Russian rebels – and by extension – Russia and Putin. The latest examples are media reports about the Dutch crash investigation suggesting that an anti-aircraft missile, allegedly involved in destroying MH-17, was fired from rebel-controlled territory.
Yet, the U.S. mainstream media remains stunningly disinterested in the “dog-not-barking” question of why the U.S. intelligence community has been so quiet about its MH-17 analysis since it released a sketchy report relying mostly on “social media” on July 22, 2014, just five days after the shoot-down. A source briefed by U.S. intelligence analysts told me that the reason for the intelligence community’s silence is that more definitive analysis pointed to a rogue Ukrainian operation implicating one of the pro-regime oligarchs.
The source said that if this U.S. analysis were to see the light of day, the Ukrainian “narrative” that has supplied the international pressure on Russia would collapse. In other words, the Obama administration is giving a higher priority to keeping Putin on the defensive than to bringing the MH-17 killers to justice.
Like the Tonkin Gulf case, the evidence on the MH-17 case was shaky and contradictory from the start. But, in both cases, U.S. officials confidently pointed fingers at the “enemy.” President Lyndon Johnson blamed North Vietnam in 1964 and Secretary of State John Kerry implicated ethnic Russian rebels and their backers in Moscow in 2014. In both cases, analysts in the U.S. intelligence community were less certain and even reached contrary conclusions once more evidence was available.
In both cases, those divergent assessments appear to have been suppressed so as not to interfere with what was regarded as a national security priority – confronting “North Vietnamese aggression” in 1964 and “Russian aggression” in 2014. To put out the contrary information would have undermined the government’s policy and damaged “credibility.” So the facts – or at least the conflicting judgments – were hidden.
The Price of Silence
In the case of the Tonkin Gulf, it took years for the truth to finally emerge and – in the meantime – tens of thousands of U.S. soldiers and millions of Vietnamese had lost their lives. Yet, much of the reality was known soon after the Tonkin Gulf incident on Aug. 4, 1964.
Daniel Ellsberg, who in 1964 was a young Defense Department official, recounts – in his 2002 book Secrets – how the Tonkin Gulf falsehoods took shape, first with the panicked cables from a U.S. Navy captain relaying confused sonar readings and then with that false storyline presented to the American people.
As Ellsberg describes, President Johnson and Defense Secretary Robert McNamara announced retaliatory airstrikes on Aug. 4, 1964, telling “the American public that the North Vietnamese, for the second time in two days, had attacked U.S. warships on ‘routine patrol in international waters’; that this was clearly a ‘deliberate’ pattern of ‘naked aggression’; that the evidence for the second attack, like the first, was ‘unequivocal’; that the attack had been ‘unprovoked’; and that the United States, by responding in order to deter any repetition, intended no wider war.”
Ellsberg wrote: “By midnight on the fourth, or within a day or two, I knew that each one of those assurances was false.” Yet, the White House made no effort to clarify the false or misleading statements. The falsehoods were left standing for several years while Johnson sharply escalated the war by dispatching a half million soldiers to Vietnam.
In the MH-17 case, we saw something similar. Within three days of the July 17, 2014 crash, Secretary Kerry rushed onto all five Sunday talk shows with his rush to judgment, citing evidence provided by the Ukrainian government through social media. On NBC’s “Meet the Press,” David Gregory asked, “Are you bottom-lining here that Russia provided the weapon?”
Kerry: “There’s a story today confirming that, but we have not within the Administration made a determination. But it’s pretty clear when – there’s a build-up of extraordinary circumstantial evidence. I’m a former prosecutor. I’ve tried cases on circumstantial evidence; it’s powerful here.” [See Consortiumnews.com’s “Kerry’s Latest Reckless Rush to Judgment.”]
Two days later, on July 22, the Director of National Intelligence authorized the release of a brief report essentially repeating Kerry’s allegations. The DNI’s report also cited “social media” as implicating the ethnic Russian rebels, but the report stopped short of claiming that the Russians gave the rebels the sophisticated Buk (or SA-11) surface-to-air missile that the report indicated was used to bring down the plane.
Instead, the report cited “an increasing amount of heavy weaponry crossing the border from Russia to separatist fighters in Ukraine”; it claimed that Russia “continues to provide training – including on air defense systems to separatist fighters at a facility in southwest Russia”; and its noted the rebels “have demonstrated proficiency with surface-to-air missile systems, downing more than a dozen aircraft in the months prior to the MH17 tragedy, including two large transport aircraft.”
Yet, despite the insinuation of Russian guilt, what the public report didn’t say – which is often more significant than what is said in these white papers – was that the rebels had previously only used short-range shoulder-fired missiles to bring down low-flying military planes, whereas MH-17 was flying at around 33,000 feet, far beyond the range of those weapons.
The assessment also didn’t say that U.S. intelligence, which had been concentrating its attention on eastern Ukraine during those months, detected the delivery of a Buk missile battery from Russia, despite the fact that a battery consists of four 16-foot-long missiles that are hauled around by trucks or other large vehicles.
Rising Doubts
I was told that the absence of evidence of such a delivery injected the first doubts among U.S. analysts who also couldn’t say for certain that the missile battery that was suspected of firing the fateful missile was manned by rebels. An early glimpse of that doubt was revealed in the DNI briefing for several mainstream news organizations when the July 22 assessment was released.
The Los Angeles Times reported, “U.S. intelligence agencies have so far been unable to determine the nationalities or identities of the crew that launched the missile. U.S. officials said it was possible the SA-11 was launched by a defector from the Ukrainian military who was trained to use similar missile systems.” [See Consortiumnews.com’s “The Mystery of a Ukrainian ‘Defector.’”]
The Russians also challenged the rush to judgment against them, although the U.S. mainstream media largely ignored – or ridiculed – their presentation. But the Russians at least provided what appeared to be substantive data, including alleged radar readings showing the presence of a Ukrainian jetfighter “gaining height” as it closed to within three to five kilometers of MH-17.
Russian Lt. Gen. Andrey Kartopolov also called on the Ukrainian government to explain the movements of its Buk systems to sites in eastern Ukraine and why Kiev’s Kupol-M19S18 radars, which coordinate the flight of Buk missiles, showed increased activity leading up to the July 17 shoot-down.
The Ukrainian government countered by asserting that it had “evidence that the missile which struck the plane was fired by terrorists, who received arms and specialists from the Russian Federation,” according to Andrey Lysenko, spokesman for Ukraine’s Security Council, using Kiev’s preferred term for the rebels.
On July 29, amid this escalating rhetoric, the Veteran Intelligence Professionals for Sanity, a group of mostly retired U.S. intelligence officials, called on President Barack Obama to release what evidence the U.S. government had, including satellite imagery.
“As intelligence professionals we are embarrassed by the unprofessional use of partial intelligence information,” the group wrote. “As Americans, we find ourselves hoping that, if you indeed have more conclusive evidence, you will find a way to make it public without further delay. In charging Russia with being directly or indirectly responsible, Secretary of State John Kerry has been particularly definitive. Not so the evidence.”
But the Obama administration failed to make public any intelligence information that would back up its earlier suppositions.
Then, in early August, I was told that some U.S. intelligence analysts had begun shifting away from the original scenario blaming the rebels and Russia to one focused more on the possibility that extremist elements of the Ukrainian government were responsible, funded by one of Ukraine’s rabidly anti-Russian oligarchs. [See Consortiumnews.com’s “Flight 17 Shoot-down Scenario Shifts”and “Was Putin Targeted for Mid-air Assassination?”]
Last October, Der Spiegel reported that the German intelligence service, the BND, also had concluded that Russia was not the source of the missile battery – that it had been captured from a Ukrainian military base – but the BND still blamed the rebels for firing it. The BND also concluded that photos supplied by the Ukrainian government about the MH-17 tragedy “have been manipulated,” Der Spiegel reported.
And, the BND disputed Russian government claims that a Ukrainian fighter jet had been flying close to MH-17, the magazine said, reporting on the BND’s briefing to a parliamentary committee on Oct. 8, 2014. But none of the BND’s evidence was made public — and I was subsequently told by a European official that the evidence was not as conclusive as the magazine article depicted. [See Consortiumnews.com’s “Germans Clear Russia in MH-17 Case.”]
Dog Still Doesn’t Bark
When the Dutch Safety Board investigating the crash issued an interim report in mid-October, it answered few questions, beyond confirming that MH-17 apparently was destroyed by “high-velocity objects that penetrated the aircraft from outside.” The 34-page Dutch report was silent on the “dog-not-barking” issue of whether the U.S. government had satellite surveillance that revealed exactly where the supposed ground-to-air missile was launched and who fired it.
In January, when I re-contacted the source who had been briefed by the U.S. analysts, the source said their thinking had not changed, except that they believed the missile may have been less sophisticated than a Buk, possibly an SA-6, and that the attack may have also involved a Ukrainian jetfighter firing on MH-17.
Since then there have been occasional news accounts about witnesses reporting that they did see a Ukrainian fighter plane in the sky and others saying they saw a missile possibly fired from territory then supposedly controlled by the rebels (although the borders of the conflict zone at that time were very fluid and the Ukrainian military was known to have mobile anti-aircraft missile batteries only a few miles away).
But the larger dog-not-barking question is why the U.S. intelligence community has clammed up for nearly one year, even after I reported that I was being told that U.S. analysts had veered off in a different direction – from the initial blame-the-Russians approach – toward one focusing on a rogue Ukrainian attack.
For its part, the DNI’s office has cited the need for secrecy even as it continues to refer to its July 22 report. But didn’t DNI James Clapper waive any secrecy privilege when he rushed out a report five days after the MH-17 shoot-down? Why was secrecy asserted only after the U.S. intelligence community had time to thoroughly review its photographic and electronic intelligence?
Over the past 11 months, the DNI’s office has offered no updates on the initial assessment, with a DNI spokeswoman even making the absurd claim that U.S. intelligence has made no refinements of its understanding about the tragedy since July 22, 2014.
If what I’ve been told is true, the reason for this silence would likely be that a reversal of the initial rush to judgment would be both embarrassing for the Obama administration and detrimental to an “information warfare” strategy designed to keep the Russians on the defensive.
But if that’s the case, President Barack Obama may be acting even more recklessly than President Johnson did in 1964. As horrific as the Vietnam War was, a nuclear showdown with Russia could be even worse.
Investigative reporter Robert Parry broke many of the Iran-Contra stories for The Associated Press and Newsweek in the 1980s. You can buy his latest book, America’s Stolen Narrative, either in print here or as an e-book (from Amazon and barnesandnoble.com). You also can order Robert Parry’s trilogy on the Bush Family and its connections to various right-wing operatives for only $34. The trilogy includes America’s Stolen Narrative. For details on this offer, click here.
FOCUS: How Goldman Sachs Profited From the Greek Debt Crisis
Sunday, 19 July 2015 09:46
Excerpt: "Today, even as the bankers vacation in the Hamptons, millions of Americans continue to struggle with the aftershock of the financial crisis in terms of lost jobs, savings, and homes."
Economist, professor, author and political commentator Robert Reich. (photo: Richard Morgenstein)
How Goldman Sachs Profited From the Greek Debt Crisis
By Robert Reich, Robert Reich's Blog
19 July 15
he Greek debt crisis offers another illustration of Wall Street’s powers of persuasion and predation, although the Street is missing from most accounts.
The crisis was exacerbated years ago by a deal with Goldman Sachs, engineered by Goldman’s current CEO, Lloyd Blankfein.
Blankfein and his Goldman team helped Greece hide the true extent of its debt, and in the process almost doubled it. And just as with the American subprime crisis, and the current plight of many American cities, Wall Street’s predatory lending played an important although little-recognized role.
In 2001, Greece was looking for ways to disguise its mounting financial troubles. The Maastricht Treaty required all eurozone member states to show improvement in their public finances, but Greece was heading in the wrong direction.
Then Goldman Sachs came to the rescue, arranging a secret loan of 2.8 billion euros for Greece, disguised as an off-the-books “cross-currency swap”—a complicated transaction in which Greece’s foreign-currency debt was converted into a domestic-currency obligation using a fictitious market exchange rate.
As a result, about 2 percent of Greece’s debt magically disappeared from its national accounts. Christoforos Sardelis, then head of Greece’s Public Debt Management Agency, later described the deal to Bloomberg Business as “a very sexy story between two sinners.”
For its services, Goldman received a whopping 600 million euros ($793 million), according to Spyros Papanicolaou, who took over from Sardelis in 2005. That came to about 12 percent of Goldman’s revenue from its giant trading and principal-investments unit in 2001—which posted record sales that year. The unit was run by Blankfein.
Then the deal turned sour. After the 9/11 attacks, bond yields plunged, resulting in a big loss for Greece because of the formula Goldman had used to compute the country’s debt repayments under the swap. By 2005, Greece owed almost double what it had put into the deal, pushing its off-the-books debt from 2.8 billion euros to 5.1 billion.
In 2005, the deal was restructured and that 5.1 billion euros in debt locked in. Perhaps not incidentally, Mario Draghi, now head of the European Central Bank and a major player in the current Greek drama, was then managing director of Goldman’s international division.
Greece wasn’t the only sinner. Until 2008, European Union accounting rules allowed member nations to manage their debt with so-called off-market rates in swaps, pushed by Goldman and other Wall Street banks. In the late 1990s, JPMorgan enabled Italy to hide its debt by swapping currency at a favorable exchange rate, thereby committing Italy to future payments that didn’t appear on its national accounts as future liabilities.
But Greece was in the worst shape, and Goldman was the biggest enabler. Undoubtedly, Greece suffers from years of corruption and tax avoidance by its wealthy. But Goldman wasn’t an innocent bystander: It padded its profits by leveraging Greece to the hilt—along with much of the rest of the global economy. Other Wall Street banks did the same. When the bubble burst, all that leveraging pulled the world economy to its knees.
Even with the global economy reeling from Wall Street’s excesses, Goldman offered Greece another gimmick. In early November 2009, three months before the country’s debt crisis became global news, a Goldman team proposed a financial instrument that would push the debt from Greece’s healthcare system far into the future. This time, though, Greece didn’t bite.
As we know, Wall Street got bailed out by American taxpayers. And in subsequent years, the banks became profitable again and repaid their bailout loans. Bank shares have gone through the roof. Goldman’s were trading at $53 a share in November 2008; they’re now worth over $200. Executives at Goldman and other Wall Street banks have enjoyed huge pay packages and promotions. Blankfein, now Goldman’s CEO, raked in $24 million last year alone.
Meanwhile, the people of Greece struggle to buy medicine and food.
There are analogies here in America, beginning with the predatory loans made by Goldman, other big banks, and the financial companies they were allied with in the years leading up to the bust. Today, even as the bankers vacation in the Hamptons, millions of Americans continue to struggle with the aftershock of the financial crisis in terms of lost jobs, savings, and homes.
Meanwhile, cities and states across America have been forced to cut essential services because they’re trapped in similar deals sold to them by Wall Street banks. Many of these deals have involved swaps analogous to the ones Goldman sold the Greek government.
And much like the assurances it made to the Greek government, Goldman and other banks assured the municipalities that the swaps would let them borrow more cheaply than if they relied on traditional fixed-rate bonds—while downplaying the risks they faced. Then, as interest rates plunged and the swaps turned out to cost far more, Goldman and the other banks refused to let the municipalities refinance without paying hefty fees to terminate the deals.
Three years ago, the Detroit Water Department had to pay Goldman and other banks penalties totaling $547 million to terminate costly interest-rate swaps. Forty percent of Detroit’s water bills still go to paying off the penalty. Residents of Detroit whose water has been shut off because they can’t pay have no idea that Goldman and other big banks are responsible.
Likewise, the Chicago school system—whose budget is already cut to the bone—must pay over $200 million in termination penalties on a Wall Street deal that had Chicago schools paying $36 million a year in interest-rate swaps.
A deal involving interest-rate swaps that Goldman struck with Oakland, California, more than a decade ago has ended up costing the city about $4 million a year, but Goldman has refused to allow Oakland out of the contract unless it ponies up a $16 million termination fee—prompting the city council to pass a resolution to boycott Goldman. When confronted at a shareholder meeting about it, Blankfein explained that it was against shareholder interests to tear up a valid contract.
Goldman Sachs and the other giant Wall Street banks are masterful at selling complex deals by exaggerating their benefits and minimizing their costs and risks. That’s how they earn giant fees. When a client gets into trouble—whether that client is an American homeowner, a US city, or Greece—Goldman ducks and hides behind legal formalities and shareholder interests.
Borrowers that get into trouble are rarely blameless, of course: They spent too much, and were gullible or stupid enough to buy Goldman’s pitches. Greece brought on its own problems, as did many American homeowners and municipalities.
But in all of these cases, Goldman knew very well what it was doing. It knew more about the real risks and costs of the deals it proposed than those who accepted them. “It is an issue of morality,” said the shareholder at the Goldman meeting where Oakland came up. Exactly.
Ensler writes: "It is up to everyone to call out the behavior of perpetrators whether they be famous or not. We must, regardless of their status or fame or wealth or talent hold them to the same standards."
Eve Ensler. (photo: Brigitte Lacombe/TIME)
On Bill Cosby: Let the Mythical Daddy Die
By Eve Ensler, TIME
19 July 15
o one believed my father was a battering sex abuser. He was handsome, a corporate president. He was successful, charming, a man’s man. He wore tailored suits. He played golf. He drank martinis. He was celebrated at country clubs and knew the first names of head maitre d’s at the fanciest exclusive restaurants. He was arrogant and smug the way Bill Cosby is arrogant and smug. He had an air of superiority and contempt for those who he perceived to be weak or incapable of rising the way he had risen. He set himself up as the chief moral arbiter of right and wrong in the same way that Cosby asserted himself as public moralist on issues of family values and crime. He was righteous, particularly about honesty. He was obsessed with honesty. There were many times when he would beat my head against a wall or whip me with belts for lies he imagined I had told or would one day possibly tell. I never understood why he was so angry. I think I do now. He was raging because he was caught between two competing, demanding personas, one public, one private. He was raging because his whole life was one big seething contaminating lie. A lie that was supported and nurtured by the power that men have over women, adoring and terrified colleagues, and my dependent mother. A lie that got him countless free passes, second chances, and cheeks turned.
Like my father, Bill Cosby was allegedly one thing in public, Dr. Huxtable, and another in the dark or behind closed doors. (Cosby, of course, denies all of the allegations of rape and sexual assault. He’s never been criminally charged for any of these alleged crimes.)
I know something about having two fathers in one. I know something about this agonizing split between the man of moral fervor and the man who sexually and physically decimated my body, the man, who is a model of manners, integrity, and charm and the man of violence, control, and manipulation. I was raised in the center of this psychic chasm. My consciousness was formed in this traumatizing fracture. After years of listening to thousands of women, I know that I am not alone.
I cannot explain why these men did what they did. I’ve given way too many years analyzing their perverse psychology and I’ve exhausted every option. I no longer give a damn. Survivors weave our days making excuses and evolving theories for our perpetrators that steal our lives. In the end they did what they did because they could. They did what they did because their gender, status, wealth, talent, fame, power allowed them access and protection, their inflated sense of self gave them license, their overly enlarged egos endowed them with certain patriarchal rights. And they never feared the ramifications of their violent acts. Even now, after all that has been alleged, Bill Cosby continues to work and acts the victim. No one is taking away his Hollywood star, despite mounting evidence. The President says there is no precedent to revoke his Presidential honor.
I think of my own silence early on, and maybe it was disbelief that stopped my outrage. Or protection of a daddy I desperately needed. Or fear of exclusion, exile, loss. Or the horror and heartbreak of experiencing the death of the hero. My hero. Or making a decision early on that the rare moment of love was worth the nightmares.
I think we have to ask ourselves what have we learned from this. This event with Cosby feels heartbreakingly familiar. Over these last years I’ve found myself compelled to write about the sexual machinations of prominent men. There is a maddening frequency with which the sexual abuse of powerful men is unraveled. How many others are out there? Will we wait another 20 years for countless victims to accumulate? There is something much larger here being revealed about our culture.
It is shocking that Bill Cosby has been able to carry on for so long with the allegations that have been made against him, that his wife and others, the media, the community close to him all felt comfortable standing behind a man who was systematically destroying the lives of women. Have we come to fully accept a world where the elites are untouchables? Are we saying to our young men that as long as you are a rich and famous and successful daddy icon, you too can rape?
Over the last few days I can’t stop thinking about us, about the social structures that surround these men. The world — our world — that not only turns a blind eye to their behavior but in the end becomes complicit in supporting their abhorrent deeds. And there are the economic and social factors that coalesce to make our silence. How could my mother or I, both dependent on my father for money and resources, speak out against his terror? More than forty women have now described their experiences with Bill Cosby, allegedly coaxed into his drug lair early in their careers. How could they speak out and smear and embarrass the moral cuddly king of television, be the slayers of our collective fantasy, and what would that have done to their fledgling careers and lives?
Are we finally willing to do what is necessary to make women safe? I think of the hundreds of brave and broken women I have met — who have come forward with stories of abuse at the hands of men, some powerful and famous. Do we celebrate them? Do we treat them with dignity and respect and kindness? Do we believe them and honor them? No these women are sacked, stigmatized, and exiled, their heads carried on sticks to ensure no woman ever passed that way again.
It is up to everyone to call out the behavior of perpetrators whether they be famous or not. We must, regardless of their status or fame or wealth or talent hold them to the same standards. We must, as a community, break through our own fear and need to sustain and protect our daddy heroes while we sacrifice our women. We must be willing to dispel illusions and look squarely at these perpetrators and denounce their crimes. It cannot be done alone.
We can decide this is the catalytic moment where we finally come out of our collective denial and break our attachment. ?Where we stand unequivocally together and say we believe the women who came forward to accuse Cosby of rape. Where we create a climate where all women are safe and protected socially and economically when they tell the truth. This can be moment where we ensure a world where a father is defined by his wholeness, his tenderness, his honoring, and his care — not by his domination, manipulation, and sexual violence. And where women are valued and believed. It’s up to us.
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