Wednesday, September 14, 2011

Noam Chomsky And Ron Paul Agree on How the Military Is Bankrupting America

Is there hope for the Libertarians and the Progressives to see eye to eye on the key issue of defense spending? That would isolate the TeaParty (that doesnt follow Ron Paul) and the GOP Neocons (that adhere to the Bush-Cheney doctrine that WAR IS GOOD FOR THE ECONOMY)

Amplify’d from www.alternet.org

Noam Chomsky on How the Military Is Bankrupting Us and Why Corporate Interests Want to Destroy Public Programs


Noam Chomsky discusses US military adventurism abroad and domestic economic catastrophe.
September 13, 2011  |  


 








 




 


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Editor's note: The following is a transcript of a Noam Chomsky interview on Democracy Now! Chomsky covers a wide range of subjects, including the true cost of America's empire, the significance of Obama's recent jobs proposal, and the real reasons why corporate interests and conservatives are intent on demolishing wildly successful public programs like Social Security. 


President Obama sent his new jobs proposal to Congress on Monday with a plan to pay for the $447 billion package by raising taxes on the wealthy. Noam Chomsky says, "The healthcare system...the huge military spending, the very low taxes for the rich [and corporations]...those are fundamental problems that have to be dealt with if there’s going to be anything like successful economic and social development in the United States." As Republican presidential candidate, Texas Gov. Rick Perry, calls Social Security a "Ponzi scheme," and Democrats buy into the narrative that the program is in crisis, Chomsky notes that "to worry about a possible problem 30 years from now, which can incidentally be fixed with a little bit of tampering here and there, as was done in 1983, to worry about that just makes absolutely no sense, unless you’re trying to destroy the program."


AMY GOODMAN: Our guest for the hour is MIT professor Noam Chomsky. His latest book is called 9-11: Was There an Alternative? That last question, "Was there an alternative?," referring to the assassination of Osama bin Laden. Aaron?


AARON MATÉ: Well, Noam, you mentioned the changes in discourse between 10 years ago and today. And actually, this issue of the reasons behind 9/11 came up Monday night at the Republican presidential debate. Congress Member Ron Paul of Texas drew boos from the crowd and a rebuke from other candidates on the podium when he criticized U.S. foreign policy in discussing the roots of 9/11.



REP. RON PAUL: We’re under great threat because we occupy so many countries. We’re in 130 countries. We have 900 bases around the world. We’re going broke. The purpose of al-Qaeda was to attack us, invite us over there, where they can target us. And they have been doing it. They have more attacks against us and the American interests per month than occurred in all the years before 9/11. But we’re there, occupying their land. And if we think that we can do that and not have retaliation, we’re kidding ourselves. We have to be honest with ourselves. What would we do if another country, say China, did to us what we do to all those countries over there?



So, this whole idea that the whole Muslim world is responsible for this and they’re attacking us because we’re free and prosperous, that is just not true. Osama bin Laden and al-Qaeda have been explicit. They have been explicit, and they wrote and said that we attacked—we attacked America because you had bases on our holy land in Saudi Arabia, you do not give Palestinians a fair treatment, and you have been bombing—I didn’t say that, I’m trying to get you to understand what the motive was behind the bombing. At the same time, we had been bombing and killing hundreds of thousands of Iraqis for 10 years. Would you be annoyed? If you’re not annoyed, then there’s some problem.



AARON MATÉ: That was Republican Congress Member Ron Paul of Texas speaking Monday night at the Republican presidential debate. Noam Chomsky, your response?


NOAM CHOMSKY: I think what he said is completely uncontroversial. You can read it in government documents. You can find it in polls. Maybe people don’t like to hear it, but, as I mentioned before, it goes back to the 1950s. Actually, right after 9/11, the Wall Street Journal, to its credit, did a study of privileged Muslims, sometimes called "monied Muslims," people in the Muslim world who are deeply embedded in the U.S. global project—lawyers, directors of multinational corporations and so on, not the general population. And it was very much like what Eisenhower was concerned about, and the National Security Council, in the 1950s. There was a lot of antagonism to U.S. policy in the region, partly support of dictators blocking democracy and development, just as the National Security Council concluded in 1958.


Also, by 2001, there were much more specific things: very much a lot of anger about the U.S. backing for Israeli occupation of the Occupied Territories, settlements, the bitter oppression of the Palestinians, and also, something that isn’t discussed much here but meant a lot there—and remember, these are privileged Muslims, leaders —those who kind of carry out, implement the general U.S. economic and social policies in the region. The other thing, besides the support of Israeli crimes, was the sanctions against Iraq. This was 2001, remember. The sanctions against Iraq were brutal and destructive. They killed hundreds of thousands of people. Both of the international diplomats who administered the Oil-for-Food program, distinguished international diplomats—Denis Halliday, Hans von Sponeck, in sequence—both of them resigned in protest because they regarded the sanctions as genocidal. They were carrying out a kind of a mass slaughter of Iraqis. They were strengthening Saddam Hussein. They were compelling the population to rely on him just for survival. And these were major crimes of the 1990s. And privileged Muslims, monied Muslims, in the Saudi Arabia, elsewhere, were bitterly opposed to this, not because they hate our freedoms, because they don’t like murderous and brutal policies.


AARON MATÉ: Noam, before, you were quoting a CIA analyst saying that the U.S. had actually become Osama bin Laden’s biggest ally through being drawn into so many wars abroad, and talking about how all this engagement has undermined U.S. standing. What has this decade of war meant here at home for the domestic situation and how that relates to bin Laden’s goals of bleeding the United States?


NOAM CHOMSKY: Yeah, he was pretty explicit about that. He wanted to draw the United States into what intelligence agencies called a trap, which would inflame and incite hostility in the Muslim world, he hoped, help mobilize people for his cause—I don’t think that happened—but also bankrupt the U.S. at home. I mean, current estimates—there was a recent estimate, a study at Brown University, estimated the cost just of the two wars at about $4 trillion. If you count in the costs of, you know, homeland security and so on, probably doubles that. That’s pretty serious. Between the wars, the housing bubble and Bush’s tax cuts for the rich, that—it creates the economic crisis that we’re now in.


AMY GOODMAN: On Monday, President Obama sent his new jobs proposal to Congress. In a new challenge to Republicans, Obama said he would propose paying the $447 billion package by raising taxes on the wealthy. Around $400 billion would be raised by eliminating a number of deductions claimed by wealthy taxpayers. Obama discussed the bill in a White House speech.



PRESIDENT BARACK OBAMA: On Thursday, I told Congress that I’ll be sending them a bill called the American Jobs Act. Well, here it is. This is—this is a bill that will put people back to work all across the country. This is the bill that will help our economy in a moment of national crisis. This is a bill that is based on ideas from both Democrats and Republicans. And this is the bill that Congress needs to pass. No games, no politics, no delays. I’m sending this bill to Congress today, and they ought to pass it immediately.



AMY GOODMAN: Noam Chomsky, what is your assessment of President Obama, whether we’re talking about his new jobs plan or whether we’re talking about his foreign policy?


NOAM CHOMSKY: Well, I can’t say that I find it disappointing, because, quite frankly, I never expected anything. Actually, I wrote about it before the primaries, just based on his record on his website.


I think my—I should say, first of all, that this latest jobs plan is one of the better things he’s done. I don’t think it goes anywhere near far enough, but at least it has elements that are going in the right direction. There was, when the—during the lame-duck session, the serious question was whether—what to do with the Bush tax cuts. The Bush tax cuts were carefully designed so that, at the beginning, everyone got a little, and you had a feeling taxes were being reduced. But they were designed so that, as the 10-year period ended, it was overwhelmingly going to the very rich. Now, the population is strongly opposed to that. You take a look at polls during the lame-duck session, when this was coming up: very strong support for increasing taxes for those with incomes over, say, quarter-million dollars a year. Well, Obama didn’t push that. If he had appealed to the public, they, I think, could have overcome the opposition of the financial institutions, you know, the Republican—the new Republican congressional delegation and so on. But he didn’t even try. And that should be done.


Now, the current proposal goes partially in that direction by indirectly increasing taxes through elimination of deductions. But the tax code simply has to be revised. It’s become highly regressive. In fact, the share of GDP, you know, national income by—of taxes, is probably lower than it’s ever been, far lower than 20 or 30 years ago, particularly for the rich. All of that should be adjusted. There is a stimulus in the program, which is a good idea, but it’s much too small. And the concentration on deficit reduction, when the serious problem is massive unemployment, I think that’s a very serious error. You can understand why the banks and insurance companies, and so on, like it, but it’s completely wrong for trying to extricate ourselves from quite a serious economic crisis. The deficit itself, if you want to take it seriously—I don’t think it’s the major issue, by any means. In fact, I don’t even think it’s a serious issue, at least in the short term. But if you do want to take it seriously, it’s pretty easy to trace it to the roots.


Dean Baker, very good economist, has done the calculations which show that if the United States had a healthcare program similar to other industrial countries, which is not a utopian dream, not only would there be no deficit, but there’d be a surplus. And the military budget is probably half the deficit. It’s way out of line with anything needed, certainly for any defensive purpose, but for any justifiable purpose. Ron Paul, who you heard before, was quite right about that. The U.S. is spending about as much as the rest of the world combined almost on military spending, technologically very advanced, new destructive techniques developing far beyond what any other country has. First of all, it shouldn’t be done, on principle, but it also ends up being harmful to us, essentially for the reasons that Paul mentioned. And very expensive of course. That plus the hopelessly dysfunctional healthcare system -- those are fundamental problems that have to be addressed.


Now, that could have been addressed. At the time of the healthcare reform, depending on how the question was asked, either the large plurality, often a majority, of the population was in favor of some form of national healthcare, which would be incomparably more efficient and more humane. But Obama just dropped that. The public option remained as a possibility. That was supported by, I think, maybe almost two-thirds of the population. Obama just dropped it. So, everything is in the hands of the insurance companies. We continue to have roughly twice the per capita healthcare costs of comparable countries, some of the poorest outcomes. And it’s the only large, almost unregulated, privatized system. Yes, it’s highly inefficient; it’s also very inhumane—not to speak of tens of thousands of people without insurance or many more with not enough insurance. Well, that can be changed. It should be changed. If it could, the deficit issues, such as they are—I think they’re secondary—would largely disappear.


There’s a long-term debt problem. That’s a different matter. And we can trace that to its roots, too. Ronald Reagan, who was fiscally totally irresponsible, tripled the U.S. debt and shifted the U.S. very quickly from the world’s leading creditor to the world’s leading debtor. George W. Bush enhanced it with his fiscal policies, including the huge tax cut for the rich, the wars. And in the long term, that’s a problem. But the way to deal with that problem, in the long term, is with economic growth, appropriate economic growth, sensible economic growth. Well, that can be done, but it’s not going to be done through deficit reduction programs or tampering with entitlements, as is on the table, unfortunately.


So there were elements—and infrastructure development is significant, and Obama mentioned it. There’s small programs. He talked about work sharing, which is quite an important proposal. I don’t know if anything will be done. It was done in Germany, and it cut down unemployment very sharply, led to substantial economic growth, even through the recession. Those are options that could be pursued. They’re mentioned. They should be pushed harder. They should be expanded. But at least there are elements there that could turn into a constructive program—however, not until the core issues are handled.


One is enormous unemployment. That’s the worst problem, and it’s becoming almost permanent unemployment. Another is the deterioration of manufacturing, meaning offshoring of manufacturing. The only way that can be dealt with is by cutting back on the overvalued dollar, that would improve possibilities for exports. The healthcare system, which is grotesque—it’s an international scandal; the huge military spending; the very low taxes for the rich, by comparative standards, also corporations and so on—those are fundamental problems that have to be dealt with if there’s going to be anything like successful economic and social development in the United States.


AARON MATÉ: Noam, you mentioned entitlements, and obviously this is an issue that’s come up a lot in the deficit debate. Governor Rick Perry, the Republican presidential hopeful, has called it a Ponzi scheme. But even Democrats seem to buy into this narrative that it’s in crisis. Can you address that?


NOAM CHOMSKY: Social Security is not in any crisis. I mean, the trust fund alone will fully pay benefits for, I think, another 30 years or so. And after that, taxes will give almost the same benefits. To worry about a possible problem 30 years from now, which can incidentally be fixed with a little bit of tampering here and there, as was done in 1983—to worry about that just makes absolutely no sense, unless you’re trying to destroy the program. It’s a very successful program. A large number people rely on it. It doesn’t pay munificently, but it at least keeps people alive, not just retired people, but people with disabilities and others. Very low administrative costs, extremely efficient, and no burden on the deficit. The effort to try to present the Social Security program as if it’s a major problem, that’s just a hidden way of trying to undermine and destroy it.


Now, there has been a lot of opposition to it since the 1930s, on the part of sectors of extreme wealth and privilege, especially financial capital. They don’t like it, for several reasons. One is that for the rich, it’s meaningless. For anyone who’s had a fairly decent income, it’s a tiny addition to your retirement but doesn’t mean much. Another is, if the financial institutions and the insurance companies can get their hands on this huge financial resource—for example, if it’s privatized in some way or vouchers— that’s a huge bonanza. They’ll have trillions of dollars to play with, the banks, the investment firms and so on.


But I think, myself, that there’s a more subtle reason why they’re opposed to it, and I think it’s rather similar to the reason for the effort to pretty much dismantle the public education system. Social Security is based on a principle. It’s based on the principle that you care about other people. You care whether the widow across town, a disabled widow, is going to be able to have food to eat. And that’s a notion you have to drive out of people’s heads. The idea of solidarity, sympathy, mutual support, that’s doctrinally dangerous. The preferred doctrines are just care about yourself, don’t care about anyone else. That’s a very good way to trap and control people. And the very idea that we’re in it together, that we care about each other, that we have responsibility for one another, that’s sort of frightening to those who want a society which is dominated by power, authority, wealth, in which people are passive and obedient. And I suspect—I don’t know how to measure it exactly, but I think that that’s a considerable part of the drive on the part of small, privileged sectors to undermine a very efficient, very effective system on which a large part of the population relies, actually relies more than ever, because wealth, personal wealth, was very much tied up in the housing market. That was people’s personal wealth. Well, OK, that, quite predictably, totally collapsed. People aren’t destitute by the standards of, say, slums in India or southern Africa, but ver many are suffering severely. And they have nothing else to rely on, but the pittance that they’re getting from Social Security. To take that away would be just disastrous.

Read more at www.alternet.org
 

Tuesday, September 13, 2011

American Jobs Act - Not Quite the New Deal

Obama gave a speech with the right sense of urgency and the right right name, but fails to think big enough.



Here is the fact sheet.

Monday, September 12, 2011

China Investing in European Natural Gas

This could be seen as a hedge against the Russian gas monopoly and the massive European debt

Amplify’d from www.wallstreetjournal.com

China Closes In on European Gas

PARIS—GDF Suez SA is close to a deal in which China Investment Corp. would take a stake in the energy company's exploration-and-production business, marking yet another investment by Beijing in Western energy assets and boosting the French company's exposure to the energy-hungry Asian market.

Under the proposed deal, the Chinese sovereign-wealth fund would take a 30% stake in the exploration-and-production business for as much as €3 billion ($4.28 billion), a person familiar with the matter said.

GDF Suez could announce the deal, which its board has yet to approve and could still fall through, as early as Wednesday when the French company reports earnings.

The agreement also lays the groundwork for CIC possibly to invest with GDF Suez in future operations, such as electricity generation, across the Asian-Pacific region except China, the person said. CIC is subject to limits on investing in Chinese assets.

CIC also would help GDF Suez land contracts in China, the person said. CIC didn't respond to requests for comment.

[GDFCIC]

GDF Suez CEO Gérard Mestrallet sees a 'golden age' of natural gas.

CIC has been investing heavily in Western energy and resources since 2009 as a hedge against inflation and to meet the energy needs of the world's fastest-growing economy.

In March of last year, the fund invested $1.6 billion for a 15% stake in AES Corp., a Virginia-based power company. A few months later, CIC invested $416 million in Calgary, Alberta, oil-sands company Penn West Energy Trust and $200 million in Oklahoma City's Chesapeake Energy Corp.

The Chinese $410 billion sovereign-wealth fund earned an 11.7% return on its overseas portfolio last year as it deployed almost all of its capital and accelerated investments into high-risk assets.

Chinese energy companies also have been investing, or trying to invest, in Western assets recently. Cnooc Ltd. last month agreed to spend $2.1 billion for bankrupt Canadian oil-sands developer OPTI Canada Inc. In June, PetroChina Co. and Canada's Encana Corp. called off a $5.5 billion partnership to develop a large tract of natural gas when they couldn't agree on terms.

The proposed deal is part of GDF Suez Chief Executive Gérard Mestrallet's plan to sell roughly €10 billion in assets by 2013 to reduce debt, focus on organic growth and boost the company's presence in the Asia Pacific region.

GDF Suez's exploration-and-production business, which focuses largely on natural gas, accounted for €1.59 billion, or 1.9%, of the company's revenue last year.

The capital-intensive nature of locating and extracting oil and gas means that allying with a sovereign-wealth fund makes sense, analysts say, especially if GDF Suez is looking to lighten its debt load.

GDF Suez has exploration and production activities in Australia and Indonesia but the majority of the business is located in Europe and North Africa.

Mr. Mestrallet has said the world is entering a "golden age" of natural gas, spurred in part by the discovery of large fields of shale gas and fears over the viability of nuclear energy after the Fukushima power-plant disaster in Japan. Global consumption of natural gas could rise by more than 50% over the next 25 years, according to the International Energy Agency.

China is a huge market for natural gas as the country's electricity needs soar and Beijing looks to reduce the use of high-polluting coal. But GDF Suez has been reluctant to invest in electricity production on its own in China, concerned over the lack of stable regulatory and investment environments.

GDF Suez, born of a 2008 merger between French utility giants Suez and Gaz de France, is looking to sell assets in the next two years in part to reduce debt from a $2.25 billion deal in February to merge international assets with the U.K's International Power PLC.

The planned deal with CIC was first reported Monday in French daily newspaper Les Echos.

GDF Suez shares closed at €19.82 ($28.30), down 59 European cents, on Monday in Paris amid sharp declines world-wide.

—Eliot Gao and Lingling Wei contributed to this article.


Write to Max Colchester at max.colchester@wsj.com

[GDFCIC]
See more at www.wallstreetjournal.com
 

Italy Turns to China for Help in Debt Crisis

Amplify’d from www.cnbc.com

Italy Turns to China for Help in Debt Crisis

Published:
Monday, 12 Sep 2011 | 3:37 PM ET
By: Guy Dinmore, Financial Times

Italy’s center-right government is turning to cash-rich China in the hope that Beijing will help rescue it from financial crisis by making “significant” purchases of Italian bonds and investments in strategic companies.

Global Markets

According to Italian officials, Lou Jiwei, chairman of China Investment Corp, one of the world’s largest sovereign wealth funds, led a delegation to Rome last week for talks with Giulio Tremonti, finance minister, and Italy’s Cassa Depositi e Prestiti, a state-controlled entity that has established an Italian Strategic Fund open to foreign investors.


Italian officials were in Beijing two weeks ago to meet CIC and China’s State Administration of Foreign Exchange (Safe), which manages the bulk of China’s $3,200bn foreign exchange reserves. Vittorio Grilli, head of treasury, met Chinese investors in Beijing in August. Italian officials said further negotiations were expected to take place soon.

The possibility of Chinese investment comes at a critical moment for Italy, as markets demand increasingly high yields to buy Italian public sector debt, projected to reach 120 per cent of GDP this year, a ratio second only to Greece in the eurozone.

Mr Tremonti has written extensively in the past about his fears of China’s “reverse colonization” of Europe. But he has been driven to seek new alternatives as Europe prevaricates over strengthening its bail-out fund and the European Central Bank warns that its month-old bond-buying program cannot go on indefinitely. In a reflection of Italy’s refinancing problems, the treasury on Monday sold €11.5bn of short-term notes at higher yields.

European analysts were cautious over the outcome of talks. Despite Beijing’s numerous expressions of confidence in the creditworthiness of countries such as Greece and Portugal analysts say Chinese purchases of peripheral European debt have been relatively small.

How much of Italy’s €1,900bn of debt is already held by China is unclear, though one Italian official told the FT that Beijing held about 4 per cent.

Italy’s debt crisis has forced the government to consider possible sales of strategic stakes in companies such as Enel, the Italian power utility, and Eni, the oil and gas multinational.

Cassa Depositi e Prestiti is a founding member of the informal “long-term investors club” along with similar institutions in France and Germany. In July it launched its Italian strategic fund with an investment of €4bn that it plans to expand to €7bn with participation from other sources, including foreign institutional investors.

CIC was set up in 2007 with capital of $200bn and its assets under management now total about $410bn. It says it “maintains a strict commercial orientation and is driven by purely economic and financial interests” and that it is committed to “high professional and ethical standards in corporate governance, transparency and accountability.” China’s embassy in Rome had no immediate comment.

Additional reporting by Jamil Anderlini in Beijing
Read more at www.cnbc.com
 

Will the Trans-Pacific Partnership (TPP) Destroy or Rebuild America?

NAFTA definitely did some MAJOR damage to Mexico. Did it cause damage to the USA too?

Giant Sucking Sound Part 2? The NAFTA Of The Pacific Will Soon Allow Millions More American Jobs To Be Shipped Overseas


The United States is negotiating one of the biggest free trade agreements in history and there is barely a peep about it on the news.  Years ago, Ross Perot warned that if NAFTA was implemented there would be a "giant sucking sound" as millions of jobs left this country.  It turns out that he was right.  Starting on Tuesday, the next round of negotiations on the Trans-Pacific Partnership (also known as the "NAFTA of the Pacific") will begin in Chicago.  We have already seen the Obama administration push hard for free trade agreements with Panama, South Korea and Colombia and the administration is making the Trans-Pacific Partnership a very high priority.  Membership in the "NAFTA of the Pacific" already includes Brunei, Chile, New Zealand and Singapore.  The United States, Australia, Peru, Malaysia and Vietnam are scheduled to join.  Canada, Japan and South Korea are also reportedly considering membership.  So once this "free trade" agreement is ratified, will we hear another "giant sucking sound" as millions more of our jobs are shipped overseas?

Look, it is not really that complicated.  If you are a giant U.S. corporation, you can either make stuff here, or you can make stuff overseas where it is far, far less expensive to do so.


To greedy corporate executives, there are a lot of advantages to moving operations out of the country....


*It is legal to pay slave labor wages in many of these other countries.  After all, why pay an American worker 10 or 20 times as much as a worker on the other side of the globe?


*In many of these other countries you do not have to provide any health care for workers.


*In many of these other countries there are virtually no environmental controls to worry about.


*In many of these other countries there are virtually no labor standards to worry about.


*In many of these other countries you only have to deal with a fraction of the "red tape" that you have to deal with in the United States.


By merging our economies with the economies of societies that are far different from our own, we have created a "race to the bottom" that is incredibly destructive to the U.S. economy.


In Vietnam, one dollar an hour is considered to be a very good wage.


So how do you plan to compete against that?


These "free trade agreements" are direct assaults on the big, juicy paychecks of American workers.


If you do not know about the Trans-Pacific Partnership, you need to get educated.


The following is a basic introduction to the TPP from Wikipedia....


The Trans-Pacific Partnership (TPP), also known as the Trans-Pacific Strategic Economic Partnership Agreement, is a multilateral free trade agreement that aims to further liberalise the economies of the Asia-Pacific region; specifically, Article 1.1.3 notes: “The Parties seek to support the wider liberalisation process in APEC consistent with its goals of free and open trade and investment.”[1] The original agreement between the countries of Brunei, Chile, New Zealand and Singapore was signed on June 3, 2005, and entered into force on May 28, 2006. Five additional countries – Australia, Malaysia, Peru, United States, and Vietnam – are negotiating to join the group.


Apparently, one of the goals of the TPP is to reduce all trade tariffs among member nations to zero by the year 2015.  The proponents of "free trade" are absolutely thrilled.


We have all enjoyed the flood of cheap products from overseas.  It is nice to pay a little bit less for things.


But these cheap prices have come at a very high cost.  We are literally destroying the American economy.  If you walk into just about any store today and you start turning over products, you will find that almost all of them are made out of the country.


If our middle class jobs keep getting shipped overseas, our prosperity is going to vanish.  If the American people allow this to continue, the standard of living of American workers is going to continue to fall toward the level of workers in third world countries.


Arthur Stamoulis, the executive director of Citizen Trade Campaign recently had the following to say about why he is opposed to this new free trade agreement....


"They’ve shipped our jobs overseas. They’ve reduced the tax base, they’ve driven down the wages and benefits for the jobs that are left. We’ve had enough"


As you can see from the chart below, we have seen a massive decline in manufacturing jobs in the United States over the last few decades....



It is absolutely amazing that the Obama administration continues to tout more "free trade" agreements as a way to increase employment in the United States.


Sadly, nearly half the country is still going to run out and vote for the guy in the next election.


Between December 2000 and December 2010, 38 percent of the manufacturing jobs in Ohio were lost, 42 percent of the manufacturing jobs in North Carolina were lost and 48 percent of the manufacturing jobs in Michigan were lost.


So the answer is to ship even more of our jobs overseas?


Apparently the Obama administration actually believes that we don't want those jobs.  The following is what U.S. Trade Representative Ron Kirk told Tim Robertson of the Huffington Post recently....


Let's increase our competitiveness... the reality is about half of our imports, our trade deficit is because of how much oil [we import], so you take that out of the equation, you look at what percentage of it are things that frankly, we don't want to make in America, you know, cheaper products, low-skill jobs that frankly college kids that are graduating from, you know, UC Cal and Hastings [don't want], but what we do want is to capture those next generation jobs and build on our investments in our young people, our education infrastructure.


Can you believe that nonsense?  He believes that there are things that "we don't want to make in America"?


Why is nobody calling for him to resign immediately?


Manufacturing jobs have traditionally been high paying jobs that can support middle class families.


But now we are losing millions of those jobs and the Obama administration simply does not care.


Back in 1970, 25 percent of all jobs in the United States were manufacturing jobs. Today, only 9 percent of the jobs in the United States are manufacturing jobs.


America is being deindustrialized at warp speed and most Americans don't even understand what is happening.


Look, even if U.S. firms wanted to stay in the United States and try to compete, they face almost insurmountable obstacles....


*Many foreign nations deeply and directly subsidize national industries and the U.S. government lets them get away with it.  That puts our industries at a vast disadvantage.


*The United States has the highest corporate tax rate in the world.  That puts our corporations at a vast disadvantage.


*Many foreign nations do not require businesses to provide health care for their employees.  That puts our businesses at a vast disadvantage.


*Many foreign nations impose very little regulation on businesses.  That puts businesses in the United States at a vast disadvantage.  In the U.S., we have some of the most restrictive regulations in the world.


The truth is that even the "next generation jobs" and the "green jobs" that Obama keeps talking about are rapidly leaving the country.


For example, the third-largest producer of solar panels in the United States, Evergreen Solar, is leaving America.


Evergreen is shutting down its factory in Massachusetts, laying off 800 American workers and moving production over to China.


A recent New York Times article explained why Evergreen is making this move....


Evergreen, in announcing its move to China, was unusually candid about its motives. Michael El-Hillow, the chief executive, said in a statement that his company had decided to close the Massachusetts factory in response to plunging prices for solar panels. World prices have fallen as much as two-thirds in the last three years — including a drop of 10 percent during last year’s fourth quarter alone.


Chinese manufacturers, Mr. El-Hillow said in the statement, have been able to push prices down sharply because they receive considerable help from the Chinese government and state-owned banks, and because manufacturing costs are generally lower in China.


We are losing the "jobs of the future" and Obama is doing nothing about it.


Last year, more than half of all the solar panels in the world were made in China.


China is absolutely killing us on the global economic stage and Obama does not even seem to think that it is a problem.


The U.S. trade deficit with China in 2010 was 27 times larger than it was back in 1990.


Not only that, the United States now spends more than 4 dollars on goods and services from China for every one dollar that China spends on goods and services from the United States.


So don't listen to any of the nonsense that Obama is spouting about creating jobs.


Not that most of the Republicans are putting forward any good ideas either.


The reality is that our politicians have lied to us.  Globalism is absolutely destroying our economy.


Do you remember when the United States was the dominant manufacturer of automobiles and trucks on the globe?  Well, in 2010 the U.S. ran a trade deficit in automobiles, trucks and parts of $110 billion.


We are losing ground in almost every industry that you could name.  Even the "jobs of tomorrow" are mostly being created overseas.


Andy Grove, the former CEO of Intel, says that our advanced technology companies are creating far more jobs overseas than they are in the United States....


Some 250,000 Foxconn employees in southern China produce Apple's products. Apple, meanwhile, has about 25,000 employees in the U.S. That means for every Apple worker in the U.S. there are 10 people in China working on iMacs, iPods, and iPhones. The same roughly 10-to-1 relationship holds for Dell, disk-drive maker Seagate Technology (STX), and other U.S. tech companies.


When is someone going to wake up America?  If we are even losing "advanced technology" jobs, then what kind of jobs are going to be left?


In 2002, the United States had a trade deficit in "advanced technology products" of $16 billion with the rest of the world.  In 2010, that number skyrocketed to $82 billion.


Needless to say, that is not a good trend.


Our politicians promised us that the "global economy" would mean more jobs and more prosperity for us.


Well, that was obviously a giant lie.


Today, if you gathered together all of the unemployed people in the United States, they would make up the 68th largest country in the world.


If we allow all of this "free trade" nonsense to continue, our unemployment nightmare is going to continue to get worse and even more of our formerly great cities will end up looking like total hellholes just like Detroit does.


Sadly, virtually all of our politicians in both political parties are in favor of these "free trade" agreements.  In fact, most of them are pushing these kinds of agreements as one of the "solutions" to our problems.


The U.S. economy is being dismantled and deindustrialized right in front of your eyes.


If you plan on speaking out, you better do it now because it is almost too late to stop what is being done.


It is up to you America.

Read more at theeconomiccollapseblog.com
 

Naval Conflicts Escalating Amid Energy & Capitalism Crisis

Air land and sea, currencies, trade agreements, etc. The world is at war nominally and the real question is, how long before we recognize that capitalism needs rethinking - FAST

Amplify’d from www.straight.com

Gwynne Dyer: The real potential for naval conflicts around the world

By Gwynne Dyer, September 9, 2011

The Indian Navy revealed recently that one of its vessels, the amphibious assault ship INS Airavat, was hailed by a Chinese naval officer demanding to know why it was in Chinese territory—while it was actually off the Vietnamese coast heading for the Vietnamese port of Haiphong. And last week it was reported that a Chinese spy ship was discovered in India’s Andaman Islands earlier this year.

A quarter of a world away, in the eastern Mediterranean, the consequences of Israel’s seizure of a Turkish aid vessel heading for Gaza in May of last year continue to unfold. Israel steadfastly refuses to apologize for the deaths of nine Turks who were killed by Israeli commandos in the attack, and on September 8, Turkish prime minister Recep Tayyip Erdogan announced that future aid vessels to Gaza would be escorted by the Turkish Navy.

If this sort of thing goes on, it is plausible to imagine a point at which countries with real military power—Israel and Turkey, or India and China—start shooting at each other. Moreover, all these countries except Turkey have nuclear weapons, though it is hard to imagine them being used in a conflict at sea. On the other hand, it is the sea and its slippery boundaries that make such confrontations possible.

The thing about maritime frontiers that makes them so much more dangerous than land borders is that they are often ill-defined, and almost always invisible. There are lots of disputed land frontiers in the world, but everybody knows where the actual line of control is, and there are usually troops or border police around to make sure that everybody observes it.

You can attack a land border if you really want to, but it is a very big decision with incalculable consequences: a declaration of war, in effect. Even the most arrogant or paranoid governments will think long and hard before embarking on such an action, and generally they end up by deciding not to do it. Whereas at sea you can easily drift into a serious military confrontation that neither side intended.

Turkey recognized Israel in 1950, and in recent decades the two countries have been major trading partners and closely linked militarily. Only two or three years ago Israeli warplanes were still conducting military exercises in Turkey, and the latter was a major customer for Israeli weapons. But relations have cooled rapidly since Benjamin Netanyahu became prime minister of Israel, and the attack on the aid flotilla last year was the last straw.

Early this month Turkey expelled the Israeli ambassador, and Prime Minister Erdogan’s announcement that the Turkish navy will escort future aid convoys raises the prospect of actual military clashes between the two.

Erdogan cannot stand by and let any more Turkish citizens be killed, nor can he stop future convoys from seeking to break the Israeli blockade of Gaza. Israel’s refusal to apologize for killing Turkish citizens makes it politically impossible for him to defy Turkish public opinion on this. And yet if Turkish warships escort the next convoy, it’s easy to imagine an outbreak of shooting.

All Israel’s wars hitherto have been with poorly armed and badly led Arab armies in non-industrialized countries; a war with Turkey would be a very different matter, even if it remained a purely maritime conflict. But Israeli politics will not let Netanyahu back down either—and because it’s at sea, nobody really knows where the red lines are.

Israel attacked last year’s aid flotilla well beyond the limits of the blockade zone it had declared around Gaza, and might do so again. Israel would have local air superiority, but the Turkish warships would be on hair-trigger alert for an attack. This could end very badly.

Even that is small potatoes compared to the potential for a naval conflict in the South China Sea. China insists that virtually the whole sea is its territory, with claimed boundaries that skim the coasts of all the other countries that border the sea: Vietnam, Malaysia, Brunei, and the Philippines.

China bases its claim on its historic sovereignty over the clusters of low-lying islands in the middle of the sea, the Paracels and the Spratlys. But Hanoi says that Beijing never claimed sovereignty until 1940, and that the islands had actually been controlled by Vietnam since the 17th century. They were certainly under Vietnamese control until 1974, when China seized them by force, killing several Vietnamese soldiers in the process.

The Philippines also claims some of the islands, and all four Southeast Asian countries reject China’s claim to own the seabed rights practically up to their beaches. To make matters worse, there are now believed to be enormous reserves of oil and gas under the sea’s shallow waters.

Worst of all, the South China Sea is a maritime highway connecting Europe, the Middle East and South Asia with East Asia, and none of the other major powers is willing let it fall under exclusive Chinese control. That’s why an Indian warship was visiting Vietnam last July, and why the United States is selling more warships and helicopters to the Philippines.

It’s a slow-burning fuse, but this is the most worrisome strategic confrontation in the world today.

Read more at www.straight.com
 

Sunday, September 11, 2011

Was Karl Marx Right About Capitalism? #collapse #crisis #energy #revolution

What set of events would force the people to change the system? Will it be violent or peaceful? That may depend on our patience and tolerance for the change to occur. Otherwise there will be a violent revolution.

Amplify’d from blogs.hbr.org


Umair Haque


Umair Haque


Umair Haque is Director of the Havas Media Lab and author of The New Capitalist Manifesto: Building a Disruptively Better Business. He also founded Bubblegeneration, an agenda-setting advisory boutique that shaped strategies across media and consumer industries.





Was Marx Right?


8:15 AM Wednesday September 7, 2011  | Comments (582)


In case you've been on Mars (or even just on vacation), here's a surprising idea that's been making the rounds lately: there might have been something to Marx's critiques of capitalism after all.

Now, before you leap into the intertubes, seize me by the arm, perform a citizens' arrest, and frog-march me into the nearest FBI office, exclaiming "See this suspicious looking brown guy? He's a card-carrying communist!!" please note: I'm, well, not. I'm a staunch believer in capitalism (hence, the title of my book.)

Yet, I do think — and after reading the dismal, dreary headlines every day, not to mention checking the value of your 401K, house, job, economy, society, and future lately, I'd bet you do too — that prosperity as we know it might be lazily circling the glowing inner rim of the burbling event horizon of a massive supergalactic black hole. And when it comes to doing much about it (wave hello to your new friend, "double-dip"), well, the status quo's pretty much out of options, out of ideas, and running out of time (hey, is that a Congressional "super-committee" being stalked by lobbyists I see? Who came up with this brain-melter of an idea?).

Hence, indulge me for a paragraph or two. Now, please note: This is a hugely divisive topic, and by "was Marx right?" I don't mean "Communism is the glorious future of humankind, my brothers in arms!! (And I am your leader — bow!!)". For, of course, I think we've had plenty of compelling demonstrations that it wasn't. Rather, I mean: "Was there maybe a tiny mote of insight or two hidden in Marx's diagnoses of the maladies of industrial age capitalism?"

Let's take Marx's big critiques of industrial age capitalism, one by one (and with a grain of salt: since I'm far from a Marxist economist, it's entirely possible my quick, partial descriptions leave much to be desired).



Immiseration. Marx claimed that capitalism would immiserate workers: he meant that labor would be "exploited" — not just in a purely ethical sense, but in a narrower economic one: that real wages would fall, and working conditions would deteriorate. How was Marx doing on this score? I'd say middlingly: wages in many advanced economies — notably, the most purely capitalist in a financialized sense — have failed to keep pace with productivity; not for years, but for decades. (America's median wage has been stagnant for roughly 40 years.) In macro terms, labor's share of income has plummeted, while the lion's share of growth has accrued to those at the very top.

Crisis. As workers were paid less and less, capitalism would be prone to chronic, perpetual crises of overproduction — for they wouldn't have the means to purchase or invest in enough goods to keep the economy humming. As Marx put it, there was likely to be "poverty in the midst of plenty." How's Marx doing on this score? Not bad, I'd say: the last three decades have in fact been characterized by global crises of what you might crudely call overproduction (think: too little demand chasing too many disposable widgets, resulting in a massive global debt crisis, as vanishing middle classes took on more and more debt to compensate for stagnant real wages).

Stagnation. Here's Marx's most controversial — and most curious — prediction. That as economies stagnated, real rates of profit would fall. How does this one hold up? On first glance, it seems to have been totally discredited: corporate profits have broken through the roof and into the stratosphere. But think about it again, in economic terms: Marx's prediction concerned "real profit," not just the mystery-meat numbers served up by beancounters, and chewed over with gusto by "analysts." When seen in those terms, Marx might be said to have been onto something: though corporations book nominal profits, I'd suggest a significant component of that "profit" is artificial, earned by transferring value, rather than creating it (just ask mega-banks, Big Energy, or Big Food). I've termed this "thin value" and Michael Porter has described it as a failure to create "shared value." Replace "declining real profit" with "shrinking real value" and it's analogous to what Tyler Cowen and I have called a Great Stagnation (though our casus belli for it differs significantly from Marx's).

Alienation. As workers were divorced from the output of their labor, Marx claimed, their sense of self-determination dwindled, alienating them from a sense of meaning, purpose, and fulfillment. How's Marx doing on this score? I'd say quite well: even the most self-proclaimed humane modern workplaces, for all their creature comforts, are bastions of bone-crushing tedium and soul-sucking mediocrity, filled with dreary meetings, dismal tasks, and pointless objectives that are well, just a little bit alienating. If sweating over the font in a PowerPoint deck for the mega-leveraged buyout of a line of designer diapers is the portrait of modern "work," then call me — and I'd bet most of you — alienated: disengaged, demoralized, unmotivated, uninspired, and about as fulfilled as a stoic Zen Master forced to watch an endless loop of Cowboys and Aliens.

False consciousness. According to Marx, one of the most pernicious aspects of industrial age capitalism was that the proles wouldn't even know they were being exploited — and might even celebrate the very factors behind their exploitation, in a kind of ideological Stockholm Syndrome that concealed and misrepresented the relations of power between classes. How's Marx doing on this score? You tell me. I'll merely point out: America's largest private employer is Walmart. America's second largest employer is McDonald's.



Commodity fetishism.
A fetishized object is one which is more than a symbol: it's believed to have actually the power the symbol represents (like an idol, or a totem with magical properties). Marx claimed that under industrial age capitalism's rules, commodities became revered talismans, worshipped through transactional exchanges, imbued with mystical powers that give them inherent value — and obscuring the value of and in the very people who've worked labored over them in the first place. It's one of Marx's most subtle and nuanced concepts. Does it hold water? Again, I'll merely pointing to societies in furious pursuit of more, bigger, faster, cheaper, nastier, now, whether it's the retail temples of America's mega-malls, or London rioters stealing, not bread, but video games.

Marx's critiques seem, today, more resonant than we might have guessed. Now, here's what I'm not suggesting: that Marx's prescriptions (you know the score: overthrow, communalize, high-five, live happily ever after) for what to do about the maladies above were desirable, good, or just. History, I'd argue, suggests they were anything but. Yet nothing's black or white — and while Marx's prescriptions were poor, perhaps, if we're prepared to think subtly, it's worthwhile separating his diagnoses from them.

Because the truth might just be that the global economy is in historic, generational trouble, plagued by problems the orthodoxy didn't expect, didn't see coming, and doesn't quite know what to do with. Hence, it might just be that if we're going to turn this crisis upside down, we're going to have to think outside the big-box store, the McMansion, the dead-end McJob, the bailout, the super-bonus, and the share price.

The future of plenitude probably won't be Marxian — but it won't look like the present. And if we're going to trace the beginnings of better, more enduring, more authentic, more meaningful, fundamentally more humane paradigm for prosperity, perhaps it's worthwhile exploring — even when we don't agree with them — the critiques and prophecies of those who already challenged yesterday's.



NB: This is a divisive topic. Let's stay civilized, enlightened, and keep a sense of humor. Let's discuss the issues and ideas in the comments — not just defend ideologies by pointing fingers and calling one another names.

This discussion is about Marx's analysis of capitalism, not about communism. He sat in the British Library for decades, studying very dry, economic reports, he was trying to understand basic underlying mechanisms of capitalism.

He discovered how capitalism naturally moves through boom and bust cycles; how it is perpetually in crisis; how value is created by labor; how some capital must be destroyed to restore profit margins; how unemployment levels are used to control the price of labor; and so much more.

It is a description of a vast, complex system, it has nothing to do with communism or opinion, just as observing how gravity works and describing its laws has nothing to do with being on the left or the right.That's Mr Haque's focus in this article  - not a discussion of communism.

Marx managed to uncover, describe, and catalog fundamental characteristics of capitalism at a time when capitalism was still very young. That work is about trying to understand the nature of capitalism.

This is a partisan-free undertaking because having an accurate picture of capitalism is *essential* to whichever political party you subscribe to.

Unfortunately, we can't look at Marx's work in this area without triggering partisan responses from both left and right, which is a shame. And that became a problem for Marx too, during his time, as others took his work on analyzing the capitalist system and used it for their own ends. He once said of some French Communists, "If this is Marxism then I'm no Marxist."

It's time to look at Marx with fresh eyes. I highly recommend Francis Wheen's superb biography, where he makes a very strong case for a reexamination of his work.What bothers me hugely is that our economists and politicians are continually surprised by economic busts and try to avoid or mitigate them yet they are a fundamental characteristic of capitalism  -- they point fingers of blame and responsibility as if the busts can be avoided. They can't.

If you have a planned (communist) economy you might be able to avoid busts but not in a capitalist economy.

It's high time to rediscover, and celebrate, Marx's analysis of capitalism and recognize its fundamental cycles and integrate them into government plans so that we aren't continually surprised by events that are natural to our economic system. That's not Marxism, or communism, it's just plain common sense.
Read more at blogs.hbr.org
 

Friday, September 9, 2011

US Military Contractors Under Relentless Cyberattack, USG Reaction?

So what if Chinese state sponsored military run cyber attacks were identified? How would the USA react?

Amplify’d from www.reuters.com

U.S. defense firms face relentless cyberattacks

By David Alexander



WASHINGTON |
Wed Sep 7, 2011 6:18pm EDT



WASHINGTON (Reuters) - U.S. defense industries are facing relentless, sophisticated foreign attacks on their computer networks, a threat company leaders say poses a risk of significant damage and may require the government to take greater protective action.



Top U.S. defense contractors speaking at the Reuters Aerospace and Defense Summit said many of the attacks appeared to be state-sponsored and came from multiple countries, but they declined to point a finger at any particular government.

"Every defense company is constantly under attack. If anybody tells you they're not, it just means they don't know," said Northrop Grumman (NOC.N) Chief Executive Wes Bush. "It is a threat that is broad-based. It's not just from one source ... and it's just unceasing."

David Hess, the president of engine maker Pratt & Whitney, a unit of United Technologies Corp (UTX.N), said he suspected the attacks against his firm's network were coming from "foreign countries" but "none that I'd like to mention."

"I can say the attacks are sophisticated," he added. "It's not the result of some guy with sneakers in his cubicle hacking away at a computer screen."

Linda Hudson, president of BAE Systems Inc (BAES.L), said attacks were "a very real daily threat to what we do and something we spend a lot of our own money on."

The U.S. government has become increasingly concerned about security in cyberspace. Deputy Defense Secretary William Lynn said in July that a foreign intelligence service stole 24,000 files from a U.S. defense contractor earlier this year.

He revealed the theft as he unveiled a new Pentagon cybersecurity strategy that calls for cyberspace to be treated as an "operational domain" like air, land or sea where U.S. forces will practice and prepare to defend against attack.

Lynn said a recent estimate pegged economic losses from the theft of intellectual property and information from government and commercial computers at more than $1 trillion.

Lockheed Martin Corp (LMT.N) Chief Executive Robert Stevens, whose company thwarted a serious cyberattack in late May, said incursions faced by defense industries are "very persistent."

"They're very frequent and they have varying levels of sophistication, but the sophistication seems to be getting greater," he said. "The agility seems to be getting more adaptable, and the challenges are genuinely growing."

To explore ways to cope with the problem, the Pentagon and Department of Homeland Security launched the Defense Industrial Base Cyber Pilot, a program for sharing classified and sensitive data about cyberattacks.

Lynn said in August the program, which initially involved about 20 volunteer companies, had already stopped hundreds of attempted intrusions and would be expanded in the coming months to the rest of the defense industrial base, as well as to companies involved in critical infrastructure.

Northrop's Bush, whose company is one of several defense contractors involved in cybersecurity as a business, said he thought the Defense Department had been "very aggressively" addressing the issue of network security, making "a lot of good progress."

"But on a broader national level, I think where we're eventually going to need to end up, and this is something you often don't hear from industry, but I think we probably need a little bit more of a regulatory perspective brought to this," he said.

Bush said critical infrastructure industries, such as energy, are not set up like defense companies to deal with the threat of cyberattacks. And they are waiting on the sidelines, knowing they need to take action but not wanting to invest in security several times before getting the right solution, he

said.

"How does the federal government help those, particularly the critical infrastructure industries, know that they're doing the right things," he questioned.

"No single company can solve this problem by themselves. So it's a case, a natural opportunity, for the federal government to have a role in creating policies and approaches to help secure the cyber domain that we all depend on," Bush said.

BAE Systems' Hudson, whose company also offers cybersecurity services, said she didn't see the need for regulation of top-tier defense contractors, which are already deeply involved in protecting their networks.

For small contractors or critical infrastructure, she said, "there's been a lot of talk about requiring a certain level of support and security protection that in fact would generate a market for some of us who have those capabilities."

Read more at www.reuters.com
 

SoCal, AZ, MEX Power Outage: Glimpse of When the Circuit Breaks #peakoil #collapse #energy #crisis

So how is it possible that removing a single piece of equipment in AZ can affect power in Mexico? Isn't Mexico on a completely different grid? How is it possible that this affects AIRPORTS?



Isnt this a threat to national security?


UPDATE: Power Restored To Much Of The Region


Officials are warning, however, that the electrical grid is still quite fragile. Residents and businesses throughout the Southland are being asked to go easy on power usage to help reduce the strain.

9/9 7:30 a.m. UPDATE: Most of the nearly six million people in California, Arizona and Mexico have power again a day following an historic blackout.


Officials are warning, however, that the electrical grid is still quite fragile. Residents and businesses throughout the Southland are being asked to go easy on power usage to help reduce the strain.


Electricity came back in San Diego early Friday. Customers in Riverside and Orange counties were back on line late Thursday night. Click here to read more about the blackout in Riverside County.


Mexico's electrical utility said the lights are on for 1.1 million customers, or 97 percent of those who lost power. By Thursday night, power was also restored to all 56,000 customers in Yuma, Ariz.


San Diego was hit especially hard by the blackout, which began just after 3:30 p.m. Thursday and impacted all of San Diego Gas & Electric Co.'s 1.4 million household and business customers. It left residents sweltering in stifling temperatures and it halted some freeway and airport traffic.


The outage extended into southern Orange County, across California's inland deserts, as far east as Yuma and into Mexico. The region is home to 6 million people, though it was impossible to say exactly how many lost power. Mike Niggli, president and COO of San Diego Gas & Electric Co., estimated the number was well into the millions. (Click here to watch news conferences on the outage featuring Niggli.)


The failure occurred after an electrical worker removed a piece of monitoring equipment at a power substation in southwest Arizona, officials at Phoenix-based Arizona Public Service Co. said.


It was unclear why that mishap, which normally would have been isolated, sparked such a widespread outage. The company said that would be the focus of an investigation.


"This was not a deliberate act. The employee was just switching out a piece of equipment that was problematic," said Daniel Froetscher, an APS vice president.


It's possible that extreme heat also may have caused some problems with the transmission lines, Niggli said.


City schools, state universities and community colleges are closed today in San Diego County. Some beaches there are also closed because the outage caused a 3.2-million sewage spill. During the night, much of San Diego was in darkness, and all outgoing flights grounded at its main airport, Lindbergh Field. The airfield was open and had power Friday morning but authorities said some airlines may have cancelled flights.


There were no immediate reports of major injuries connected with the outage. Officials across the Southland have been on alert but no major problems were reported. Major looting and civil unrest were not reported.


There were reports of minor traffic accidents as the outage caused mayhem on the streets without stoplights during rush hour.


The blackout extended south of the border to Tijuana, Mexicali and other cities in Mexico's Baja California state, which are connected to the U.S. power grid, Niggli said. Police on both sides sent in re-enforcements to prevent looting and other crime in their cities, but none was reported.


Two reactors at the San Onofre Nuclear Power Station went offline after losing electricity, but officials said there was no danger to the public or workers. --Toni McAllister and the Associated Press contributed to this report.


9/9 UPDATE 12:30 a.m.: A massive power outage left nearly 6 million people in the Southern California, Arizona and Mexico without electricity Thursday, but slowly the lights are coming back on.


San Diego was hit hardest by the blackout that started around 3:30 p.m. (see attached map to view impacted areas).


The blackout extended east to Yuma, Ariz. where more than 56,000 people were temporarily without electricity; power was restored there about five hours later.


Power was restored to roughly 193,000 customers by 11 p.m. Thursday in about a dozen cities in San Diego and Orange counties, officials said. Nine of San Diego Gas & Electric Co.'s 115 substations were also back in service.


Click here to read about the power outage in Riverside County.


"We have a ways to go but were starting to see a bit of progress right now," said Mike Niggli, president of SDG&E.


Niggli said he expected a "very stead advance" around 2 a.m. through the middle of Friday afternoon, but it could take up to two days to fully restore the power in some areas, Niggli said. Click here to watch the news conferences with Niggli.


Officials said the massive blackout was likely caused by an employee removing a piece of monitoring equipment at a power substation in southwest Arizona. When a transmitter line between Arizona and California was disrupted, it cut the flow of imported power into the most southern portion of California, the power officials said. The extreme heat in some areas also may have caused some problems with the lines, Niggli said.


The power loss should have been limited to the Yuma and the power company was investigating why it spread to such a large area, including Mexico. Officials ruled out terrorism.


"Essentially we have two connections from the rest of the world: One  from the north and one is to the east. Both connections are severed," Niggli said.


The blackout caused gridlock in San Diego. All outgoing flights from San Diego's Lindbergh Field were grounded and police stations were forced to use generators to accept emergency calls across the area.


San Diego officials also announced schools would be closed Friday as a precaution. Public transportation in San Diego is also expected to be limited on Friday.


Two nuclear reactors at the San Onofre Nuclear Generating Station near San Clemente went offline after losing electricity, but officials say there was never any danger to the public or workers. San Onofre is Southern California’s largest source of electricity. Jointly owned by Southern California Edison, SDG&E, and the city of Riverside, the units can generate 2,200 megawatts of power.--Toni McAllister


9/8 UPDATE at 9:30 p.m.: During an 8 p.m. news conference hosted by San Diego County Board of Supervisors Chairman Bill Horn, officials said that power is slowly coming back online in Southern California but it could take up to three days for some areas to be fully restored. (Click here to view the 8 p.m. and a 10 p.m. news conference.)


Customers in Tijuana and Mexicali up through San Diego, Orange and Riverside counties have been affected by the blackout that began shortly after 3:30 p.m. Thursday.


In total, nearly 1.4 million ratepayers have been impacted, equating to millions and millions of people across the Southland without power, said SDG&E President Mike Niggli during the news conference.


Power restoration efforts will take place in phases, Niggli said.


There was no word yet on which areas would come back first, but some customers in Orange County and parts of North County San Diego are back up, SDG&E officials are reporting.


Riverside County is not expected to be back online until early Friday morning. Click here for more on Riverside County's outage.


The massive Southern California outage is believed to have been triggered by an employee removing a piece of monitoring equipment that was causing problems at a power substation in southwest Arizona, near Yuma, Niggli said. The power company, Arizona Public Service, is investigating why the outage wasn't contained to the Yuma area.


Niggli and Arizona Public Service offiicials say it will take some time before all questions are answered about what caused the widespread outage.


SDG&E officials acknowledge that extreme temperatures across the Southwest have increased power demand and that likely contributed to the failure. --Toni McAllister


9/8 UPDATE at 5:50 p.m.: A massive power outage hit three counties around 3:35 p.m. Thursday on one of the hottest days of the year, affecting people from south Orange County to Arizona and Tijuana. It halted phone service and knocked some radio stations off the air.


Some 1.4 million customers were without electricity, according to a spokesman for San Diego Gas & Electric Co.


San Diego, Orange and Riverside counties are affected.


(Click here for an update on Riverside County's outage.)


A spokeswoman for the San Diego Office of Emergency Services told KOGO radio that it was in a "level 3" emergency.


An SDG&E spokesman said the outage could last into Friday after a "large switching station" in Arizona was knocked out.


A "cascading event" overwhelmed the system, leading to "too many outages in too many places," he said at SDG&E headquarters. The San Onofre nuclear generating station was down.


The Escondido and Otay Mesa power plants were to be brought online first, "working from the inside out," the utility said.


"This was a fairly severe event," SDG&E said at its Kearny Mesa base. This could be an extended outage, the spokesman said. 


"Just chill out while the power is out," he said. He urged people to turn their air conditioning and other major appliances off in anticipation of the power being restored.


SDG&E said it would post updates on Twitter at twitter.com/sdge


"We don't know what happened to the [Arizona] line; all we know is that the line is out. We don't know exactly why it went out. We have no indication that there is an act of terrorism at this time."


A ham radio operator told KOGO radio at 4:40 p.m. that the Coachella and Salton Sea power plants have gone down. No confirmation yet from officials.


The San Diego Office of Emergency Services told KOGO radio that residents shouldn't use landline phones or cell phones.


Traffic accidents were reported in the Mission Valley area, and major backups were reported on local freeways as offices emptied early.


Many radio stations are out, but KOGO said it was running on a generator. Los Angeles is not affected. All three trolley lines are reported halted. Lindbergh Field halted departures but not arrivals. San Diego State University shut down.


The following was tweeted by @SDG&E:


"We understand power is out, we are working on the cause and solution. We do not have a restoration time yet."


Phones were jammed throughout the county, and KOGO was told that Ensenada and other Baja California cities lost power.


The California Highway Patrol reminded drivers to treat intersections with a flashing red light as stop signs. About 50 accident calls were pending "the last time I checked," a CHP spokesman told KOGO.


More on Patch as events unfold.


Adam Townsend contributed to this report.


9/8 ORIGINAL POST: A massive power outage felt from south Orange County to Arizona and even Tijuana hit around 3:35 p.m. Thursday, affecting landline phone service as well as radio transmissions.


A ham radio operator told KOGO radio at 4:40 p.m. that the Coachella and Salton Sea power plants have gone down. No confirmation yet from officials.


San Diego Gas & Electric Co. was not answering phone calls, but it tweeted that staff is working on finding the source of the problem.


The San Diego Office of Emergency Services told KOGO radio that residents shouldn't use landline phones or cell phones.


Traffic accidents were reported in the Mission Valley area, and major backups were reported on local freeways as offices emptied early.


Many radio stations are out, but KOGO said it was running on a generator. Los Angeles is not affected. All three trolley lines are reported halted. Lindbergh Field halted departures but not arrivals.


The following was tweeted by @SDG&E:


"We understand power is out, we are working on the cause and solution. We do not have a restoration time yet."


More on Patch as events unfold. --Adam Townsend contributed to this report.

Read more at lakeelsinore-wildomar.patch.com
 

Thursday, September 8, 2011

Internal Goldman Documents Predict Global Collapse of 2012

GS_StateOf the Markets