Open Thread 10-25-15

Morning 99percenters!
Sunday morning news dump and music by Savoy Brown.

U.N. Report Calls on Governments to Protect Whistleblowers, Not Prosecute Them

The U.N. envoy charged with protecting free speech around the globe has declared that confidential sources and whistleblowers are a fundamental element of a healthy democracy and that governments must protect them rather than demonize them. The report by David Kaye, the United Nations special rapporteur on the promotion and protection of the right to freedom of opinion and expression, also sheds light on the punitive treatment of whistleblowers in the United States, most notably former NSA contractor Edward Snowden, who is living in Russia as a fugitive from the U.S. government.

In this video from Human Rights Watch, Edward Snowden describes how “a whistleblower almost has to become comfortable with the idea of becoming a martyr, because the probability of retaliation is so certain.”

ACLU lawsuit against NSA mass surveillance dropped by federal court
Judge TS Ellis III dismissed the suit because it relied on ‘subjective fear’ that National Security Administration collects information that is innately harmful

A federal district court has dismissed a lawsuit brought by the American Civil Liberties Union against the National Security Agency.

Lawyers for the plaintiffs argued that the surveillance program was innately harmful, despite the NSA’s silence on it in court. “The NSA’s mass surveillance violates our clients’ constitutional rights to privacy, freedom of speech, and freedom of association, and it poses a grave threat to a free internet and a free society,” said Ashley Gorski, a staff attorney with the ACLU national security project. “The private communications of innocent people don’t belong in government hands.”

The judge in the case, TS Ellis III, said the suit relied on “the subjective fear of surveillance”, because the NSA did not admit to having collected any of the information it was alleged to have collected by the ACLU.

Congressional Progressive Caucus Co-Chair Joins Chorus Questioning Legality of Drone Killing Program
Statement by Rep. Keith Ellison sparked by Intercept exposé on killing program

Sparked by an exposé on the Obama administration's drone war, co-chair of the Congressional Progressive Caucus Rep. Keith Ellison (D-Minn.) has echoed human rights groups and called into question the legality of the killing program.

Based on documents leaked to The Intercept by an anonymous intelligence source, The Drone Papers offers an unprecedented look at the global killing program.

As Common Dreams previously summarized,

The series of articles [...] follows months of investigation and uses rare primary source documents and slides to reveal to the public, for the first time, the flaws and consequences of the U.S. military's 14-year aerial campaign being conducted in Yemen, Somalia, and Afghanistan—one that has consistently used faulty information, killed an untold number of civilians, and stymied intelligence-gathering through its "kill/capture" program that too often relies on killing rather than capturing.

Let’s make the banks serve us: How the government subsidizes the super-rich, while we pay the overdraft fees
They get the bailouts. We pay for every overdraft. There's a really simple way to free the banks from the 1 percent
Michael Schulson

The United States has two personal banking systems. One of these systems is carefully regulated. It benefits from substantial government subsidies, and it offers extensive protections to consumers.

The other system serves the poor.

“One of the great ironies in American life is that the less money you have, the more you have to pay to use it,” writes Mehrsa Baradaran at the beginning of her new book, “How the Other Half Banks.” Baradaran, a law professor at the University of Georgia, is keying in on a deep social inequity: for millions of Americans, the main options for basic banking services are payday lenders and check cashers. These services charge exorbitant rates and fees. In many states, they’re barely regulated. They form an exploitative shadow market to the brick-and-mortar, federally-subsidized-and-guaranteed banks that serve more affluent Americans.

Baradaran is unconvinced that the private sector can offer good banking services to low-income Americans. Other than Wal-Mart, few companies are even trying. In “How the Other Half Banks,” Baradaran looks for another option — ideally, an institution with a national network of locations already in place and a commitment to public service.

Why Is Wealth/Income Inequality Soaring?

Why is wealth/income inequality soaring? The easy answer is of course the infinite greed of Wall Street fat-cats and the politicos they buy/own.

But greed can’t be the only factor, for greed is hardly unknown in the bottom 90%. The only difference between the guy who took out a liar loan to buy a house he couldn’t afford so he could flip it for a fat profit and the mortgage broker who instructed him on how to scam the system and the crooked banker dumping toxic mortgage-backed securities on the Widows and Orphans Fund of Norway is the scale of the scam.

The difference isn’t greed, it’s the ability to avoid the consequences or have the taxpayers eat the losses, i.e. moral hazard. The bottom 90%er with the liar loan mortgage and the flip-this-house strategy eventually suffered the consequences when Housing Bubble 1.0 blew up in spectacular fashion.

Moral hazard describes the difference between decisions made by those with skin in the game, i.e. those who will absorb the losses from their bets that go south, and those who’ve transferred the risks and losses to others.

US-Turkey "Buffer Zone" to Save ISIS, Not Stop Them
NATO's irregular forces face their supply lines being completely cut, that is, unless a "buffer zone" can be created to save them.

Russia's intervention in Syria has derailed US regime-change efforts aimed at Damascus. It also threatens America's secondary objective of dividing and destroying Syria as a functioning, unified nation-state. Long sought after "buffer zones" also sometimes referred to as "free zones" or "safe zones" still stand as the primary strategy of choice by the US and its regional allies for the deconstruction of Syria's sovereignty and the intentional creation of a weak, failed state not unlike what the US and NATO left within the borders of Libya since 2011.

And while the US seeks to sell its "buffer zone" strategy under a variety of pretexts - from protecting refugees to fighting the so-called "Islamic State" (ISIS/ISIL) - it is admittedly a tactic aimed instead at America's true objectives in Syria - the destruction of its government, the division of its people, and the eradication of its sovereignty.

ISIS is Clearly the Product of State-Sponsorship  

In 2012, it was clear that the region north of Aleppo and across the border into Turkey, had become one of two primary points (Jordan being the other) of staging and entry for NATO-backed terrorists operating in Syria. It was from across the border north of Aleppo and Idlib that NATO-armed, funded, and trained terrorists from Libya first flowed into Syrian territory and from where the initial 2012 invasion of Aleppo emanated.

#RiseUpOctober: 3-Day New York Event Focuses on Police Brutality

Thousands marched through the streets of Manhattan on Saturday to protest police brutality. A diverse, grass-roots coalition of activists and concerned citizens staged the three-day action, dubbed #RiseUpOctober.

Supported by such notable figures as scholar and academic Cornel West and actor Jesse Williams, the movement condemns a state-sanctioned system that they say endorses campaigns of “police terror” in poor communities and especially in communities of color.

Because of the hard work of the Black Lives Matter movement, victims such as Travyon Martin, Eric Garner, Tamir Rice and Sandra Bland have become household names. Coalition groups such as Stop Mass Incarceration are building on this growing political consciousness to expand the movement against “police terror” in communities of color.

Swimming With the Debt Sharks

Debt is one of the United States' most stringently enforced promises.

At least, that's true for those who cannot afford a high-powered legal team to fight it out in court. It's also true for the unfortunate many who don't work alongside revolving-door regulators who write and "enforce" the rules governing their once and future employers. And it's most true for non-corporate persons who cannot dispatch legions of lobbyists to secure billion-dollar bailouts and rewrite laws.

In the United States, all debtors are not created equal.

The depth of that inequality emerged after the crash of 2008 capsized the American dream. As billions of dollars worth of "promises" suddenly came due, it was quite obvious that the standards of enforcement for the captains of finance differed greatly from those applied to a multitude of drowning deckhands desperately clinging for life as their American dreams went underwater.

Water Remains Largely Marginalized in Climate Talks

United Nations - US Secretary of State John Kerry last week turned the spotlight on the "record number" of extreme weather-related events the world is witnessing these days.

With an eye on the upcoming climate change talks in Paris, he warned that in the South Pacific, entire islands are at risk, largely threatened by a sea-level rise.

In southeast Brazil, they're suffering through the worst drought in 80 years. In California, it's the worst drought in a century – plus wildfires.

In Malawi, there are record floods. And in the Arctic, whole villages are in danger, said Kerry, speaking at the Indiana University's School of Global and International Studies on Oct.15.

Here’s What It Will Take For Success at Climate Talks

Scientists agree: we need to reduce our greenhouse gas emissions drastically in the next decade if we are to avoid the worst ravages of climate change. World governments agree: the way to do that is to forge a global agreement at the climate talks scheduled for this November and December in Paris. Such an agreement would run from 2020 to 2030 and beyond, and encompass all the world’s economies, developing and developed, big and small.

With less than two months until that meeting convenes, major issues remain unresolved. Whether they can be settled in the short time available will determine whether Paris is a success — and whether the world can measure up to the major tasks ahead.

A measure of the urgency of the problem is the current refugee crisis in Europe, the Middle East and Africa. Millions of refugees fleeing from Islamic State militias, the civil war in Syria and other unrest have overwhelmed European borders, causing unprecedented turmoil. Several prominent commentators have warned clearly that humanitarian disasters like this are only a foretaste of what is likely as climate change takes hold in the coming decades.

Savoy Brown - Tell Mama

Savoy Brown - Wang Dang Doodle

Savoy Brown - Can't Get Next to You

Savoy Brown - Louisiana Blues

Savoy Brown - Hellbound Train

Savoy Brown - Street Corner Talking

Savoy Brown - All I Can Do

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Me again, it's deja vu all over again.

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gulfgal98's picture

I don't have much to add today. I might have more comments later after I do some reading.

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Do I hear the sound of guillotines being constructed?

“Those who make peaceful revolution impossible will make violent revolution inevitable." ~ President John F. Kennedy

I haven't had much to say lately either, real life beckons. Was driving down the highway yesterday with a light load on my truck and I heard a loud "Bang" when I went over a small bump. "What the hell was that?" Got home and checked it out, broken leaf spring. When it rains it pours.

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gulfgal98's picture

I (we) have been having internet problems lately. We get what I call "blips," which are annoying little (usually very short) interruptions in service here lately. It is very annoying if it happens as you are composing somethihusbang. Dash 1

Sorry about your truck. My husband's truck is 15 years old and they no longer make the version he has (six cylinder manual with a long bed) so he wants to keep it running as long as he can. Hopefully it will not cost too much to fix your truck.

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Do I hear the sound of guillotines being constructed?

“Those who make peaceful revolution impossible will make violent revolution inevitable." ~ President John F. Kennedy

I can handle myself, the hard part will be getting a new leaf spring, I'll probably have to get one at a junk yard. It shouldn't cost too much, it's a pain because I can't carry any load in the truck until it's fixed.

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and Tuesday Open Thread slots are open if anyone is interested.

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gulfgal98's picture

Maybe two people can share one slot and alternate weeks. Good

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Do I hear the sound of guillotines being constructed?

“Those who make peaceful revolution impossible will make violent revolution inevitable." ~ President John F. Kennedy

shaharazade's picture

If I'm busy or screw up technically due to being a idiot on the computer on Wednesday night then Shahryar does it and visa versa. It makes it easier if you have back up or take turns. Less pressure and it makes it more fun to post if it's every other week.

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mimi's picture

If I just can write one little thingy, even if it's from Germany or some other one-subject item that just crossed my eyes and mind, I could do it. But I always scared that I happened to have read something on a "neo-liberal" or msm media site, that you all think is terrible ignorant of me to not recognize, and I don't want to get people upset here with it. I just feel uncomfortable among you to write a piece other than a comment. I don't fit in and my quality of content and writing is more or less banal. If you want, I will try again. Don't think I can make a list of news item though or offering "great songs". Whichever day.

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pick a day. Try it again and if you run out of steam just let me know.

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mimi's picture

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mimi, much appreciated.

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shaharazade's picture

for that comment mimi. Your far from banal no matter what you write about and you fit in just fine. I've learned a lot from a different perspective by reading both your comments and posts. I'm into European politics and like hearing your take on the world as we find it. Reading articles that are off my beaten internet track is interesting. Don't worry about being PC or worry about your sources. I feel inadequate when it comes time to write an OT. I figure we have excellent news story posters and in a small community like this it's good to have a mix of voices. I now have Spiegel Online International on my bookmark list thanks to you. So just post whatever you feel like about whatever you want and fuck them if they can't take a joke. As for your tunes I love them they are most entertaining and really good. Well I will vote for your comment but only cause you need confidence in your fitting in here and writing abilities.

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mimi's picture

Blush

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gulfgal98's picture

My Open Threads are mostly very mundane. Actually, all we need is someone to post a header for each day. It is like opening up the meeting room. If you feel like writing more, then great. Smile

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Do I hear the sound of guillotines being constructed?

“Those who make peaceful revolution impossible will make violent revolution inevitable." ~ President John F. Kennedy

lotlizard's picture

and I'm sorry for writing one or more replies to you in the past that were a sort of thinly disguised, "How could anyone not know that such-and-such is owned by so-and-so?" or "Everybody knows that Dingsbums is on the kauderwelsch end of the political spectrum."

Everybody, please just ignore me when I get that way, and don't let it get you down, O.K.? I'm probably feeling needy or grumpy or even constipated at that particular moment and it always shows in my uptight style of writing. Smile

Anyway, thanks for putting up with me, folks!

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mimi's picture

please, I like it and learn a lot and am so happy to find someone, who is in the know about all things happening in Germany and everywhere else. That may be kauderwelsch, but to me it's pure joy to read. Smile

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lotlizard's picture

Now and then I get a craving for American food items like hot dogs (had one at the Book Fair), root-beer floats, or lately, Dunkin Donuts.

Well, last year they had to go and open a Dunkin Donuts at Frankfurt main station!

Since discovering it, my "inner child" feels irresistibly drawn to the pastry equivalent of the Chocolate Frosted Sugar Bombs from Calvin and Hobbes. Help!

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mimi's picture

sweets from Germany like a simple "Butterkuchen" (German Pastry from the North) or a real good Frankfurter Wuerstchen. We have two places where they sell those (in cans) in the DC area, but I can't afford to buy those I just lose my appetite if I know three bites of a good taste costs me way too much to make sense. And I miss German bread... Even the so-called German bakery here "assimilate" to US tastes when it comes to bread. Sigh. I don't understand why everything tastes differently here although it's the same kind of cake or sweet or bread. I mean, a good "Berliner Pfannkuchen" is pretty good too, and is pretty close to a jelly donut from Dunkin Donuts. May be in Frankfurt they don't make them as well as in Berlin and Hamburg, but somehow I can't imagine that. Smile

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cybrestrike's picture

Had a bit of a strange weekend so far, but everything is still intact so I can't complain too much. Went to a Halloween party last night dressed as a pirate--though that puffy shirt could be easily re-purposed into a Prince costume. Just need a wig and a purple jacket or coat.

Our little misadventures in the Middle East are going to bite us really bad.

Drones will be great to some people until a Republican sits in the White House.

If someone thinks that the constructed mayhem in Syria can be successfully exported to Iran, they've got another thing coming to them.

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argghh, matey. Agree on all points, it'll come back to bite us in the ass, big time, some day. The problem with that "biting us in the ass" scenario is, the PTB will use it to lock us down further. Maybe that's the plan, no?

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gulfgal98's picture

Went to a Halloween party last night dressed as a pirate--though that puffy shirt could be easily re-purposed into a Prince costume. Just need a wig and a purple jacket or coat.

Because we are now expecting a photograph of you as Captain Morgan or Prince, which ever you prefer to share. Blum 3

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Do I hear the sound of guillotines being constructed?

“Those who make peaceful revolution impossible will make violent revolution inevitable." ~ President John F. Kennedy

over at that place that you might recall, dailykos

we are seeing, in my view, the death of the ability to support the dem party and Hillary

the hits just keep going on and and on

they can't argue against horrible records

does anyone have a guess how many paid operatives there are who post on DK? Hillary? Dem Party? Other candidates? right wingers trying to twist the debate?

I know that most of the front pagers are dem supporters, so that answer is not something new

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thanks, I still use the bookmarks I used when doing The Evening Blues Weekend Edition.

I plead guilty to not visiting DKos much any more, I've been very busy with work and the BS there really turns me off, but I'll make an effort to stop by there more often.

AS far as paid operatives, the high UIDs dominating much of the comments tell the story, it's really not too hard to spot them.

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shaharazade's picture

I really do not think dkos Dem. loyalists reflect most of the rank and file registered Democratic party members. Hell they aren't even democratic/Democratic they might as well be Republicans on most issues and stances. Which is why the Democratic Party is bleeding voters. 'Seeming presidential' was what one thread was all about. lol. Their so caught up in the Kabuki fighting with the lunatic RW that they ignore the fact that other then being freaking theocratic fundies and Ayn Randian there isn't very much difference in what the Third Wayer Dems call the 'way forward'. both sides just amp up the anti-democratic rhetoric and keep the partisan kabuki show moving. It's all a matter of degrees at a time when people really want some damn representation and equality, economic, and their civil and human rights back. The culture war seems to grant both sides cover while they screw humans and the planet for the same owners of the place. Neither side has any interest in democracy or any of those self evident inalienable rights, they are an impediment to their global NWO.

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Last night a friend of mine asked me about why I write so much on blogs.
I hadn't really thought about it, but it suddenly occurred to me why: therapy.
I see so many things that frustrate me in the world, so many false memes, outright lies, atrocities, and so few people spend time seeing it and recognizing it.
If I didn't write about it I would end up ranting to my family and friends like a madman, and probably drive them away.

I'm guessing that is why a lot of other people go to DKos as well.
The problem is that most of them don't bother to spend the time keeping up on events and looking behind the headlines. They have their agenda and want to rant about it.
This makes them part of the problem rather than the solution.
And now that we entered campaign season they feel that their opinion matters, and latching onto a certain candidate will accomplish something. They would know better if they had been paying attention.

The political system is broken. The major parties are just different wing of the multi-nation corporate war party.
The only thing really being discussed are social issues (as opposed to foriegn policy, financial policy, government corruption, etc.) that do not disturb the status quo. And even those issues are never resolved, because if they were then the public's attention might turn to real issues.

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mimi's picture

when I was still working for the German TV studio, that I passed through the news offices in the morning, after a one and a half hour commute, during which I regularly listened to Democracy Now. Many of the stories I heard in the car made me so furious I had to rant and let my anger out on the next person I passed by in the office. People just looked at me "saying nothing" and shaking their heads or rolling their eyes (a little at least). I always wondered why I was the only one who couldn't keep their calm and had to let it out.

Usually then sitting down to work I had dailykos open in one window and scanned with one eye the incoming diaries during the day. I don't remember anymore when it started, but it got worse, because I found a lot of stuff over there not any more "healing", but "hurting". But I still value some stuff as "admirably good efforts" and informative.

I can't say that I believe it would be healing for me to try to write. It's very exhausting and usually takes me a lot to come up with something I would be able to post. After it's done, I don't feel that great. I think I need to do build something offline to feel good. I have developed some averse reactions to the intertubes and to videos and TV. I feel it robs me of real life.

I admired how much you write and just wonder how you can do it that fast.

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about writing an essay (I always hated the term "diary") is people commenting on the essay with the same buzzword and memes that I just took the effort to discredit. It makes me feel like I wasted my time.

In the end I know that I will change very few minds. No one ever does change their minds unless a) they are forced to by circumstances, or b) they are actively looking for answers.
What I mostly accomplish is to a) give ammo to the people who are already listening, and b) give myself a cathartic release that I don't have to unleash on the people around me.

The good thing about writing so many essays is that I can draw on them for new essays. Many of the facts from years ago are still relevant. I makes writing them much easier and faster. I find myself cutting and pasting more these days, especially when the status quo has prevented any repair of our broken systems.

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gulfgal98's picture

For a long time, I wondered how you did it. But now I understand. What a wonderful way you have to dissipate your own frustration while enlightening the rest of us. We all come out so much for the better.

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Do I hear the sound of guillotines being constructed?

“Those who make peaceful revolution impossible will make violent revolution inevitable." ~ President John F. Kennedy

mimi's picture

and build their archives with it. I am angry with myself to have started reading the EB so late in the game and if you can believe it, it had just something to do with the time it was posted and the non-descriptive title not showing what it actually was. Thank God, I retired and started reading in the early evening hours. It's amazing how many things I didn't read. When I realize how closely everybody here has been reading "over there", I can't believe it.

Write on, gj,
[video:https://youtu.be/_bzie21IW3Q]
or if you like this recording better:
[video:https://youtu.be/GDatvuBd65I]
Preved

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gulfgal98's picture

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Do I hear the sound of guillotines being constructed?

“Those who make peaceful revolution impossible will make violent revolution inevitable." ~ President John F. Kennedy

mimi's picture

Whoever that was, I liked what he/she had to say.
Give rose

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gulfgal98's picture

decided I could not watch it. Sad

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Do I hear the sound of guillotines being constructed?

“Those who make peaceful revolution impossible will make violent revolution inevitable." ~ President John F. Kennedy

enhydra lutris's picture

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That, in its essence, is fascism--ownership of government by an individual, by a group, or by any other controlling private power. -- Franklin D. Roosevelt --

thanks for stopping by. How's things in your neck of the woods?

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enhydra lutris's picture

white Pelicans up at the lake, which is always nice to see. My week to cook starts tonight, so I'll be even more busy, but it's fun.

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That, in its essence, is fascism--ownership of government by an individual, by a group, or by any other controlling private power. -- Franklin D. Roosevelt --

here in the Mississippi Flyway, we get huge flocks of migrating white pelicans that stop and rest on the many backwaters of the Illinois River, it's a beautiful sight. They are yuuuuuugge!!!

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link

Meanwhile, funding for IT systems was often inadequate – if only because such long-term investments come at the expense of short-term profits. In many banks, different parts of the business have different systems, and many banks have different systems in different countries. These have evolved over the years, step by step, one added to another. IT specialists talked about “patches”, to integrate new products into these myriad systems, and about “workarounds”, improvised solutions when an activity or product cannot be properly processed. There are systems used to run all these systems, and systems to run those, and so on.
“Your readers would be shocked if they realised just how crap the IT organisation is in many banks as well as corporations and government ministries,” said a man with a decade of experience in a software company. “Sometimes we get a glimpse, when a company is unavailable for days due to ‘computer problems’. Have you noticed how these cases always take longer than expected? This is not because repairs take long. Finding out what the problem is in the first place – root-cause analysis – is nearly always the most time-consuming. Nobody has a complete and in-depth overview.”
...
What happens to the companies who rely on that bank’s payment system? “It would make the panic during a bank run look innocent,” said one. He spoke of colleagues who retain paper copies of all their internet banking statements and confirmed a favourite quote from another IT specialist I interviewed: “The generation who built the computer systems when automation took off is now reaching retirement age. So there we are, called into a bank to solve a problem. They take us to a greying man sitting in the corner: ‘Please meet Peter, he is the only one left around here who still understands the systems’.”
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mimi's picture

from my German bank account to my US bank account. It used to be that I could just send an email or fax with the request. Since they had so many security break-ins, now I have to write a letter, send it with USPS to Germany, there it takes days to go through the system and and then I wait some more for the wire to pass the "US borders". Fees are high, service is slow and annoying. I dunno, I see so many things crashing in the future. Something is wrong with me...

I hope the US gets their post offices to provide basic banking services. We have a Postbank in Germany and apparently they work well. So, I wait for German Postbank to US Postbank transfers.

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lotlizard's picture

Takes about 5 business days. The fee is 10 euro so I try to avoid using it for anything less than 1000 euro — that keeps the fee to 1 percent or less.

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mimi's picture

costs to me. That's why I trust they are reliable and less expensive than other banks, which charge 25 euro. Well, if they would charge 25 euro, I couldn't buy much with my retirement check, may be a month worth of gasoline for my car. Hallelujah.

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This is the bullshit neoliberals feed their gullible base. See a pattern here?

"Department of Broken Promises: Obama Closes Door on NAFTA Renegotiation Wed, 04/22/2009

During the campaign Barack Obama's campaign deliberately led supporters to imagine he favored the reopening of the wildly unpopular North American Free Trade Agreement, which most agree has cost millions of jobs, driven down wages in the U.S. and Mexico, increased the gap between rich and poor and driven millions of Mexican farmers off the land, into cities and to the U.S. But reports from the Canadian press were confirmed by the White House yesterday. Obama has no intention of renegotiating NAFTA.

It's hardly a surprise any more when politicians redefine their campaign promises out of existence or break them outright. To the astonishment of nobody paying close attention to the trajectory of the Obama presidency the White House quietly admitted yesterday that it had no intention of opening up the wildly unpopular NAFTA, or North American Free Trade Agreement for revision or renegotiation."

http://www.blackagendareport.com/content/department-broken-promises-obam...

One more. This one I didn't know if I should laugh, hr it, or call for an intervention.
http://www.dailykos.com/story/2015/10/25/1439097/-Bernie-Sanders-Justifi...

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"Religion is what keeps the poor from murdering the rich."--Napoleon

LapsedLawyer's picture

Sweet jeebus, WTF?! That's what merits a whole diary over there now?

Wacko

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"Our society is run by insane people for insane objectives. I think we're being run by maniacs for maniacal ends and I think I'm liable to be put away as insane for expressing that. That's what's insane about it."
-- John Lennon

link

In theory, it shouldn’t be possible for a central bank to keep short-term interest rates below zero. Banks would have to pay the Federal Reserve to hold reserves. Consumers would have to pay banks to hold deposits. Banks and people can hold physical cash, which charges no interest. This is why economists see zero as the lowest possible rate. It’s just theory, though; real-world experience shows the actual lower bound is somewhere below zero.
Denmark’s key bank rate dipped below zero in 2012 and is at minus 0.75 percent. Economists recently surveyed by Bloomberg see negative rates in that country continuing at least into 2017. Switzerland has kept the rate at minus 0.75 percent since early this year, and Sweden’s is minus 0.35 percent. These countries have a different monetary goal from that of the Fed. Denmark and Switzerland have been working to remove incentives for foreigners to deposit money in their banks. Massive foreign inflows would drive their currencies to appreciate so much they would become seriously misaligned with the euro, the currency of their main trading partners. Sweden has been attempting to create inflation.

So far there has been no serious consequences for these negative rates. But should central banks really be operating in untested eperimental monetary policies?
It's insane.

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enhydra lutris's picture

"Phillips Curve" to set policy for decades now, and it isn't really anything but sounds like it should be true in a perfect market economy. The math behind most derivatives is flaky, making them also experiments, so why not?

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That, in its essence, is fascism--ownership of government by an individual, by a group, or by any other controlling private power. -- Franklin D. Roosevelt --

set off massive bank runs? Your money would literally be safer under your mattress. Of course if they added the negative interest to the currency itself, you could stimulate a short term spending spree as people try to unload their cash before it becomes completely worthless.

Fun times.

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They say that there's a broken light for every heart on Broadway
They say that life's a game and then they take the board away
They give you masks and costumes and an outline of the story
And leave you all to improvise their vicious cabaret-- A. Moore

Shahryar's picture

So we all knew that companies are buying houses, knocking them down, building McMansions, making a ton of money and changing the character of the neighborhoods.

Today I read that lots of renters are getting evicted because buildings are being sold and the new owners "want to remodel", which means either tear the thing down and sell to developers or do little then increase the rent 50% to new tenants. What's got me irate today is that the new owners are predominantly out of state buyers who see the opportunity for big profits.

We have a local city council member (Steve Novick) who ran as a leftie but always sides with the developers and demolishers. His bizarre argument has been that climate change will mean hundreds of thousands of people will flee to our city and we need these 80 unit buildings. And with that choice of words he's trying to shame us. "what? you don't believe in climate change?" ...that sort of thing.

But if the owners are from outside the city then this isn't about us preparing for the future. It's about speculators grabbing what they can. I'm confident that the city council is aware of what's going on. Thus they think it's the preferred way to go.

So...let's vote them out, right? But it's like any other political situation. Too many people aren't paying attention. The last they heard Novick was a liberal so they'll vote for him again.

As King David once said, "oy!"

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