For lost Souls swimming in a Fish Bowl

Almost six years since the last time Moon of Alabama turned the sign at the door to 'Closed'. As time goes by.

But all the while I sit and think

Of times there were before

I listen for returning feet

And voices at the door”

― J.R.R. Tolkien

Any old timers looking for a way to stay in touch, feel free to leave a comment. Alternatively, head on over to LeSpeakEasy, which Okie kindly kept open over the years.
 

Heads we win, Tails you lose

The Australian Fair Pay Commission decided in their wisdom to not increase the minimum wage for the lowest paid 1.2 million workers in the country. Not even a measly dollar, or in their terms

“maintain the adult rates of pay in Australian Pay and Classification Scales (Pay Scales) at their current levels.”

Now, just how fair is that decision. Australia has an annual inflation rate of approx 3%, the CPI has risen by 4 points year on year to 166. In other words a wage freeze is effectively a wage reduction. To buy the same $500 of goods and services a week as this time last year you’d need today approx an extra $15. Without that bare minimum increase this ain’t no freeze, it’s a plain cut in real wages, taken from the already lowest paid workers. Happy days.

The reasoning given not to increase minimum incomes by the tiniest little bit is straight from the employers text book, the standard excuse quoted when a justification is needed for denying the lowest paid workers a pay rise, spiked with a little guilt trip for anyone disagreeing.

With economic times being as dire as they are, increasing the minimum wages would push the payroll expenses in some businesses to the point that they'd have to reduce their workforce, driving up the unemployment rate. So how dare you good for nothing commie support measures which would increase the unemployment rate?

Good question. Let me look to the former Goldman Sachs banker and now opposition leader for some guidance on this:

QUESTION: Is a freeze on minimum wage the correct decision?

MALCOLM TURNBULL: Look, I respect the decision of the Fair Pay Commission. They obviously have some…have got to weigh up the arguments, the arguments for an increase against of course the impact on employment and they’ve taken that decision. I think it’s a reasonable one and I certainly support it.

QUESTION: So are lower paid workers better off earning less and keeping their jobs then?

MALCOLM TURNBULL: Look, I think everybody is better off keeping their jobs.

This from the leader of the Australian Liberals (in comparative terms the Republicans, although in reality closer to US Democrats), the party with a history of giving preference to the big end of town over workers. The same old vanilla flavored junk phrases, learned of by heart during the many hours standing around lavish buffets with fellow champagne drinkers discussing the state of their hedge fund portfolios.

And so we hear that when times are lean we can’t increase wages coz it’ll drive up unemployment, in fat times we can’t because it’ll overheat the economy and put pressure on the Reserve Bank to raise interest rates. No matter which way the cookie crumbles, minimum wages have their name for a reason, they must be kept to a minimum.

In a fictional case of lets say a restaurant with 10 employees, 6 on minimum wages, increasing the payroll expenses by 3% would amount to approx $100 per week. Should a business with 10 employees really be in danger of going broke coz it doesn’t have the $100 pw, then quite frankly there is a good chance the firm would go down the gurgler of failed businesses anyway. That’s like the fuel price going up by 10c a litre. If you can’t sustain such a minimal cost increase without having to cut the number of employees, your biz had it coming. Lame excuse, to hold the workers with the least income responsible for bad management. Why not cut the owner’s and manager’s drawings and salary by $50 ea, and e voila, you got the cash to pay your 6 workers $15 a week more. How does that feel? All neo, all liberal? Now that’s what I call neo-liberalism.

Marines on diplomatic mission

US troops are spreading into Helmand, tasked with clearing the area of Taliban insurgents and supporters, which translates in that province roughly to wiping out a large chunk of its native tribal Pashtun population. At the same time as US forces by the thousands are being helicoptered into remote Afghanistan, Afghan politicians are traveling the country far and wide in the lead up to August’s elections.

As U.S. Marines launched a major offensive against Taliban insurgents in southern Helmand Province, the presidential campaign unfolding in more peaceful parts of northern and eastern Afghanistan last week seemed to be taking place on another planet.

Whether addressing rallies, chatting with voters in the street or receiving delegations of tribal leaders, candidates barely mentioned the violent insurgency that international experts fear could sabotage the Aug. 20 polling.

Instead, the presidential hopefuls stuck to themes they knew would resonate with Afghan audiences. They denounced civilian casualties by foreign forces and called for a negotiated settlement with the Taliban.

So, going by this article we can safely assume that Afghans in general are pissed off about the many civilian casualties and would prefer to come peacefully to some arrangement with the Taliban. What they will get instead is The Surge. Obama delivers the exact opposite of what the Afghan people are hoping for. How come I am not the least surprised?

McCrystal is said to be emphasizing the “protective” nature of the Marines mission, but who is he kidding? The Taliban are everywhere, they are everyone, they bloody well live there.

[...] They [US Troops] will have to overcome deeply entrenched suspicions of American aims in the region, and resentment over civilian casualties inflicted during previous U.S. operations. "This operation will cause even more insecurity," says Joma Khan, a 32-year old unemployed man in Lashkar Gah. "Because when people lose their family members or their houses gets destroyed, then they join Taliban."

Aware of the danger, McChrystal has made the protection of civilians the central tenet of his new approach to fighting the Taliban, even going so far as to limit the use of aerial bombardment to the most extreme circumstances - a turnabout for U.S. ground forces that have grown dependent on air support. McChrystal has also declared in a soon-to-be-released tactical directive that soldiers should hold their fire if there is even the slightest risk of a civilian presence in the target zone. "Suppose the insurgent occupies an enemy home or village and engages you from there, with the clear idea that when you respond you are going to create collateral damage," explains McChrystal. "He's going to blame that on you. Even if you kill the insurgents, what happens is you have made the insurgency wider. You are going to run into more IEDs. You are going to run into more insurgents, [and] at the end of the day you are going to suffer more casualties." [...]

Presumably the same people who believe this “we’ve come in peace” crap will also fall hook, line and sinker for Brig. Gen. Lawrence Nicholson’s feel good spiel:

[...] "We’re doing this very differently," Nicholson said, according to the Washington Post. "We’re going to be with the people. We’re not going to drive to work. We’re going to walk to work."

Nicholson emphasised this dual capacity of the Marines’ mission in Helmand: "We’re not going to measure your success by the number of times your ammunition is resupplied," he told officers. "You’re going to drink lots of tea. You’re going to eat lots of goat. Get to know the people." [...]

Marines without air support embedded in the Pashtun population, walking to work and on orders to drink tea with the locals, which planet is that guy living on? They are neither trained/programmed to be diplomats nor are they known to be nice people one can easily walk up to and have a leisurely chat with. These are schooled killers armed to their teeth good at intimidating and snuffing out lives. James Cogan’s view is imho the closest estimate I came across on how this ramp up in troop presence will play out.

The Obama administration has ordered the 2^nd Marine Expeditionary Brigade (2 MEB) into a potentially bloody offensive in the southern province of Helmand. The objective is the suppression of the ethnic Pashtun population, which is overwhelmingly hostile to the seven-and-a-half year US and NATO occupation of the country and rejects the legitimacy of the Afghan puppet government headed by President Hamid Karzai.

Early Thursday morning, 2 MEB began what has been described as the biggest airlift of marines since the Vietnam War. Code-named “Khanjar”—Pashtun for “strike of the sword”—the operation is the largest undertaken by the Marine Corp since it led the assault on the Iraqi city of Fallujah in November 2004. In all, some 4,000 marines and a 600-strong battalion of the Afghan Army are involved, supported by an array of jet fighters, unmanned drones and helicopter gunships.

An article in Friday’s New York Times by veteran war correspondent Carlotta Gall, who has worked in Afghanistan and Pakistan since 2001, made clear why Helmand has been targeted for the first major operation in Obama’s Afghan “surge”.

She wrote that the “mood of the Afghan people has tipped into a popular revolt in some parts of southern Afghanistan”. People have “taken up arms against the foreign troops to protect their homes or in anger at losing relatives in airstrikes”.

Gall noted: “The southern provinces have suffered the worst civilian casualties since NATO’s deployment into the region in 2006. Thousands of people have been displaced by fighting and taken refuge in the towns. ‘Now there are more people siding with the Taliban than with the government’, said Abdul Qadir Noorzai, head of the Afghan Independent Human Rights Commission...”

One man interviewed by Gall in June declared: “Who are the Taliban? They are the local people.” Another, whose house was bombed by US jets two months ago, said: “We Muslims don’t like them [the foreign troops]. They are the source of danger.” […]

The offensive has been timed to coincide with the initial stages of an assault by the Pakistani military into the tribal agency of South Waziristan. The ethnic Pashtun tribal agencies are largely controlled by Islamist movements with close links to the Taliban, who provide Afghan guerillas with safe haven and contribute their own fighters to the anti-occupation insurgency. […]

The marines in Helmand will duplicate the methods used by the US military in Iraq and they are well qualified to do so. Most of the 2 MEB units, and many of the officers and enlisted men, served one or multiple tours in Iraq’s western province of Anbar. The surge tactics were first tested in Anbar, a centre of Sunni Arab resistance to the US invasion. Over two years, the marines honed their counter-insurgency methods at the cost of thousands of Iraqi lives and the repression of the entire population.

Everyone in the newly occupied areas of Helmand—men, women and children—will be treated as potential insurgents. Bases will be established in towns and villages, from which US troops will use intimidation to identify resistance fighters. Afghans will face constant road-blocks, identity checks and searches. Men of fighting age will have to endure the most humiliating treatment. Local tribal leaders will be offered cash bribes to order their clans to collaborate with the occupation. If they refuse, they will be marked as Taliban sympathisers [...]…. Read the full text here.

For the people living there it’s a lose/lose situation, and I have a feeling that when US troops will be leaving Afghanistan at some point in the future, they’ll be just as popular amongst “the liberated” as they were in Vietnam on their day of departure or now in Iraq.

Ideas for New Beginnings

Debs on MoA's Open Thread makes a good point, suggesting we better get a move on with our deliberations on where we want to create a new blog/forum, what form it should be in, and once there is a consensus, proceed with setting up the new site.

As he rightly puts forward,

The person who takes on the co-ordination team leader role needs to be located in either europe or amerika so they are close to web servers and the like (there is only one not very fat pipe running in and out of where I live) and in time zones that don't clash with everyone else's when real time communication is necessary.

So, someone or a group of people has to grab the bull by the horns and start operation Moon Evolution. With my rather limited web design skills, apart from irregular posts, the only assistance I can offer is monetary.

What are your thoughts on how to get this project of the ground?
.

News & Views

Bankster Bailouts Of 2008/9 Exceed Over 200 Years Of Major Government Spending .... Biggest heist ever.

Honduras - Apparently the coup makers are not only out of bounds, they are out of their minds as well...

Also found via IncaKolaNews (above), In Honduras, a media crackdown.

Europe - This is disgusting: OSCE equates the Soviet Union with Nazi Germany. "Out of 385 assembly members, only eight voted against the resolution." More at Russia Today, with criticism including a quote from Greek Communist MP Kostas Alissandrakis who says the resolution is "not aimed against Stalin, who is long dead, but against Communism in general, and in the times of a crisis, when workers’ discontent is on the rise”. [hat tip to Alamet]

Moon over Palestine

Buenas Dias companeros, should you have come by here via Alabama's Moon, herzlich willkommen. Since Lespeakeasy was torpedoed by some rotten moron, should you feel like grabbing a chair and hang here till a better site is found, I'd be more than flattered to have your company. Chairs and lounges are meant to be comfy and the fridge is over there next to the slightly worn out turn table on the left and the coffee machine on the right. Grab a coldie or pour yourself a cuppa and share your thoughts.

In case you feel like authoring a post, and let’s face it, this place would certainly benefit from some smart people adding to the scrawny list of posts I managed to accumulate over the past three years, please contact me via my profile below on the left. Once I’ve added your e-mail to the recognised author list you should be able to publish new posts.

In the meantime, as some food for discussion. As you can see from the blogroll, the Palestinian issue is close to my heart. I occassionally donate money to benevolent organisations trying to help the beleaguered and suffering population in Gaza, such as the IRC or the Free Gaza movement. And the latter had its boat, loaded with humanitarian supplies, seized by USraeli forces. Via Uruknet:

Bethlehem - Ma'an - A top United Nations official in a statement on Friday denounced Israel's seizure of a humanitarian aid ship bound for the Gaza Strip earlier this week.

The UN official, Special Rapporteur for human rights in the Palestinian territories Richard Falk, denounced what he called the unlawful naval seizure by an Israeli gunboat on Tuesday.

"This Israeli action implements its cruel blockade of the entire Palestinian population of Gaza, in violation of Article 33 of the Fourth Geneva Convention that prohibits any form of collective punishment directed at an occupied people," Falk said.

The seized vessel was carrying medicine and reconstruction material to the blockaded people of Gaza, and was carrying a Nobel laureate and former US congresswoman when it was seized and towed to the Israeli port city of Ashdod. [...]

"Such a pattern of continuing blockade under these conditions amounts to such a serious violation of the Geneva Conventions as to constitute a continuing crime against humanity," the independent human rights expert added.

In a response to the official's remarks, Israeli Ambassador to the UN in Geneva Aharon Leshno-Yaar attacked Falk, saying he is "known for his bias against Israel and anti-Israel statements," and insisted that Israel is allowing aid into Gaza.

"Clearly the purpose of that ship was to create a buzz and serve as a propaganda vehicle against Israel," he reportedly added, according to Reuters.

The boat in question had been inspected in response to Israeli demands before departure by the port authorities in Cyprus to determine whether there were weapons on board. None were found, and Israeli authorities were so informed, according to the UN official and the Free Gaza Movement, which chartered the vessel.

Nonetheless, the 21 peace activists on the boat were arrested, held in captivity, and have been charged with "illegal entry" to Israel even though they insisted they had no intention of going to Israel. The group included an Irish winner of the Nobel Peace Prize, Mairead Maguire, and a former US congresswoman, Cynthia McKinney. [...]

In all seriousness, and Bernhard alluded to that in his posts, Israel’s behaviour of strangling its Palestinian neighbours into submission is almost on par with Nazi Germany’s Warsaw ghetto, a holding bin until the final solution can be enforced on any survivors. How can we, in full knowledge of whats going down, witness the atrocities dished out to the helpless people of Gaza and not feel like the Good Germans who all knew about the camps but didn’t act to stop their leaders crimes against their fellow humans?

p.s. Annie, should you read this, ever since I found out about your recent trip to Palestine have I been looking forward to reading your impressions of the tour and a first hand view on the situation there.

Greetings

Picking raisins

Capitalism & Socialism are portrayed as white v black, two irreconcilable concepts of ownership and class. By doing so, the debate on how to move forward is needlessly polarised, preparing the ground for dogmatists to take over the ship only to ram it against the next best iceberg. By us falling into that trap and not seeing how both systems are partially mutually inclusive we are becoming apostles of a nonsensical dualist approach, similar to the often heard notion of man v nature. Just as We are Nature, so is Capitalism Socialism.

A socialist system of government and ownership of assets still requires capital to operate, and a capitalist system still requires the state to also hold assets and provide a degree of non-productive social security to its people.

Both arrangements contain aspects which are to be endorsed and others which are not in the best interest of the people. Why not pick the raisins from both cakes instead of rigidly defending the taste of one and dismissing the other as uneatable? My idea of socialism is not based on people’s servitude to the state nor does it exclude the concept of profits or entrepreneurship, quite the opposite, effort must be rewarded. But I believe what constitutes effort needs to be redefined.

That a company CEO earns more than the lowest paid cleaner working for the firm is to be expected, but their earnings must be linked. I suggest a ratio of max 20:1, meaning that for the CEO to earn 1 million per year, the lowest paid employee must be on $50K. Should the CEO want to double his income, he must also double the lowest paid employee’s wages.

Private ownership of assets and companies is the way to go, however essential services, such as schools, public transport and hospitals should be state owned or controlled. Capital, eg investment funds and their private equity holders, are not in the business of looking out for thy neighbour, they plan for profit maximisation, which is ok for goods or services that are being sold, but the provision of goods and services to cover quintessential human needs, such as medical treatment, education of the people or commuting between places, should never be allowed to be driven by passion for profits. A society with enough foresight to avoid social unrests or even revolutions should be able to provide its less fortunate members with basic human requirements, such as housing, food and health care in a non-profit framework.

The flaw in the capitalist doctrine is that it is too one-sided in its approach to entitlements, to the point that puritans go as far as to argue against any benefits being handed out to the needy. Stiff shit, that’s social Darwinism for yer, better luck next time. Not recognising that capital itself is constantly asking for its entitlements, as it is also needy. Capital also asks for government handouts, it’s just not called "the dole" but "R&D Grants", "Subsidies" or "Bailouts". Capital is needy, of a peaceful and harmonious society in which it can operate and securely invest its profits, and when listening to business leaders you get the impression they feel entitled to that.

The state needs to be far more regulatory than what it is at the moment, ensuring that the excesses the capitalist component inevitably is drawn to are contained to a reasonable limit and are not running counterproductive to the well being of our fellow men. Free (as in unregulated) enterprise as we know it is the reason for surplus food & produce harvested in a pumper season being destroyed so as to keep the wholesale prices up in the US and Europe. Utter foolishness, and yet that’s what happens.

As Marx said, "From each, according to his ability; to each, according to his need." Apply this logic for example to the ever growing disparity between rich and poor nations. Year after year, the relatively few bobs which are given in Foreign Aid by donor nations more often than not disappear in bureaucratic channels or are embezzled by corrupt leaders in the recipient nations. Nobody seems to be accountable for the lack in progress, everybody points the finger at everybody else. There is neither a pragmatic and coordinated approach to FA nor an incentive for the donor nations to ensure long term improvements are achieved. Every five years or so world leaders meet at some posh retreat to discuss the plight of the countless people living in third world conditions, emerge with a communiqué in which they express their firm desire to half within the next few years the number of people dying of starvation, only to meet again five years later to lament how things have gotten even worse. What a bloody circus of fuckwits, drives me mad just thinking about them shits. But what’s even worse is that it is us who elected them in the first place, and when its election time again all their lies and incompetence are forgotten.

So here is my idea on how to tackle the wealth gap across the numbered worlds and improve on that equality thingy. All the world’s countries are grouped by size and ranked by wealth. From the resulting lists, the richest nation is paired with the poorest; the 2nd richest with the 2nd poorest, and so on, till lets say on a list of 100, the 49th is teaming up with the 51st. Now every rich country has one other country it is "responsible" for, which would imho allow for a more focused attitude to FA and over time would lead to better outcomes. If every affluent country would adopt a poor nation of similar size, and without ideological blinkers tried to assist in its humanitarian and economical development, via means ranging from student exchanges to technology transfer, the world would see friendships develop where there were none whilst at the same time causing the boat-lifting tide to rise.

To sum up, Churchill once said "The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries." I see it the exact other way round, the inherent vice of capitalism is the unequal sharing of miseries, the inherent virtue of socialism is the equal sharing of blessings. I hope this makes sense and doesn’t sound too rumsfeldish.

Turn on the megaphones

Although the following article concerns itself with civilian deaths in Afghanistan, I thought it is befitting the mass murder unfolding in Gaza.

Killing of 17 Afghan Civilians in US-led operation

Afghan President Hamid Karzai on Thursday condemned the reported killing of 17 civilians, including women and children, in a US-led coalition operation in eastern Afghanistan, the presidential palace said in a statement....

Unable to seek revenge independently, many Afghan men in southern and eastern Afghanistan have joined the Taliban ranks after losing members of their families in international military operations, according to Afghan officials.

At least 1,500 civilians were among the 4,000 people killed in the first eight months of 2008, according to United Nations officials in Afghanistan.

Just like Afghani men in many cases are joining the Taliban, not due to their firm believe in the Taliban's extreme Islamic dogma, but to enlist with the only force out there that is fighting the invaders that killed their loved ones, so will Hamas be strengthened by USrael's despicable attacks on Gaza's civilian population.

The way those fanatic Zionist assholes see it, the more civilians die in the onslaught the better, it means more enraged Palestinians, more olive groves and houses that can be annexed while whimpering about the raging Palestinians.

However, with all our focus on Gaza, it's also worth remembering that our troops, US and allied forces around the world are just as barbaric as the IDF's henchmen. Looking at the numbers quoted in the Uruknet article, 1500 civilians killed in 8 mths in Afghanistan, pretty much in the same fashion as their Muslim brothers in Palestine, leaves one in no doubt that our own governments, people we elected, are just as guilty as Livni or say, Shaul Mofaz, the Israeli Minister for Palestinian Deaths. One has to wonder if the Allies' strategic planning in Afghanistan isn't in line with Israel's strategy - antagonize the civilian population in order to create the conflict needed to justify ones presence.

So whilst I understand that people could do with a stiff drink in times like these, it should not be to help us forget our frustrations and to numb the anger, but to warm us up for the cold outside, where we will have to march till our feet start bleeding. Lets not succumb to the feeling of hopelessness and our insignificance. We are not powerless, quite the opposite, WE are the power, we are the people. Should enough of us make a stand, putting for a change our money where our mouths and keyboards are, marching hand in hand by the tens of millions against the system, show enough courage to engage in civil disobedience and withholding war taxes, we will make a difference. 10 million people giving $100 ea, and there is a billion dollars to fight this insanity. And when the money runs out in three months time, we do it all over again, until those fuckers learn that we are serious.

We, not Rudd or Obama, have to get the snowball rolling. Them two soggy face washers won’t, that much is clear from their telltale silence on the war crimes committed by our alleged ally. But how? I hear you ask. How can us plebs make a difference? Easy, all it takes is a conscience and a few spare minutes every so often.

Short from traveling to Palestine ourselves to oppose in Rachel Corrie’s spirit the atrocious crimes committed against nearly helpless people, we can do our bit from wherever we are, in multiple different ways. Donate to any organization that is dedicated to easing the Palestinian suffering, whilst at the same time boycotting any goods and services coming from Israel, or firms associated and in business with Israel.

Let’s not kid ourselves, we all bear in one way or another some responsibility for the misery that exists across the developing world. Our consumer choices play an intrinsic role in the lives of many desperate people. They remain faceless to us, and yet we influence their livelihoods every day we go shopping.

As we blindly spend our monies, it escapes us that by buying thoughtless we are squandering our enormous power. Not as one lone shopper who tries to make a difference, but collectively, as an ever growing number of people who are fed up with the way the system churns out victims.

There are ways you and me can convey our message of disgust to the Israeli government slash establishment. Changing our consumer habits, making sure that no hard earned cent of ours is making its way to this in large parts morally corrupt nation. Let your wallets and purses do the talking, speak out with your cheque books and credit cards.

If we want our voices to be heard, we must first stop whispering, turn on our megaphones. So, to start up, send your English-language article or letter to the editor of as many media outlets as fit in your e-mail composer's To: field.

Once you’ve send your letter to the editors, join the global Consumer BDS movement and Boycott, Divest and Sanction for Palestine.

Find out about which companies to boycott, such as the Arsenal Football Club and Johnson & Johnson. Next time you buy shampoo or baby products, read the label. Anything produced in Israel will have a barcode on it that starts with the three digits 729.

Read about which western brands and labels not to buy, like Maggi, Coca Cola or Nestle products. I know its hard, but it can be done. We all can do it. Write a letter to those firms Customer Care departments and let them know that you have stopped buying their products as they help to prop up or are in cahoots with the Israeli apartheid state.

Also, make sure you check out this list of products from illegal settlements in occupied Palestinian territory. And most importantly, please give generously to

• The Plant an Olive Tree campaign
• The Free Gaza Movement

or any other worthwhile cause you identify. Should you be able to afford it, make it a regular donation, regardless of when a new ceasefire will be negotiated. Without ever having been there myself, the images available tell the story - the damage inflicted on Palestine's people and infrastructure is so severe, that aid of any kind will be needed for decades to come. The Palestinian suffering will eventually disappear again from the media radar, it always does, until the next shocking incident brings it all back into the headlines. But the suffering there is not temporary like our news cycles, or shall I say attention span, it is ever present and seemingly permanent. In order for us to really make a difference, we best make any efforts of ours a longer term commitment.

Write, march donate, sponsor, purchase, participate, just do something. Remember - people, united, can never be defeated.

Any old way, no more time to waste, the people in Gaza and Afghanistan are counting on us, desperately.

New Year in Gaza, like the old

Seeing that it is still early in 2009, time to write my first post for the year. I know, I know, you've all been missing me badly, but as Benjamin Franklin once said, he that can have patience, can have what he will. Anyhow my esteemed readers, best wishes for the New Year. May this turn around the sun bring you & your loved ones inner peace and all the happiness you can handle.

It is however with sadness that I choose the topic for this year’s opening post, but as I write these lines, sitting at my computer, fully aware that I am witnessing today’s Nazis committing mass murder in our day, I can’t shake the feeling that by joining the line of bloggers expressing their grief about the casualties the Israeli dictatorship is raking up in Palestinian lands, I am wasting my and your time. Neither me writing this post nor you reading it will bring back the hundreds of innocent human lives lost so far in the latest episode of this seemingly never-ending drama. The same accounts for the fade of the survivors.

What a sorry affair this conflict around Palestine/Israel has become. It’s a game of Middle Eastern regional power politics being played, with Palestinian and Israeli civilians the pawns ordained to do the bleeding. Just by looking at the time-span this dispute has been allowed to go on for, we get an indication on how disingenuous and two-faced most parties involved really are.

Hamas, in a sense not unlike the Afghani Taliban, has become the genie that can’t be put back in the bottle. Palestine’s Islamic resistance movement, founded in the late eighties by Sheik Yassin, was initially welcomed if not cultivated and fed by US and Israeli clandestine services and their associated puppet regimes in the region. The idea was to help breed an inter-Palestinian rival to USrael’s public enemy number one at the time, Arafat’s PLO. Divide and conquer, tried, trusted, works every time.

Just like the many Arab dictatorships need Zionist Israel to provide the diversion needed to keep their own citizens under control, does Israel need Hamas and Fatah’s existence, their sporadic suicide bombs and mortar attacks. Without them, without the constant fighting, they’d have no more excuse to continue the illegal land grab they are engaged in, and are getting away with under the cover of war.

Instead of de-escalating the situation, Israel does the exact opposite – confining over a million Palestinian people to a penal ghetto, starving the locked up population of humanitarian aid and life’s basics – and then acts shocked when the ghetto inmates fling low-grade rockets at them, crying crocodiles tears and snivelling about the odd Israeli victim.

Israel is doing what it is for the same reason a dog licks its balls, because it can. They feel an itch and know that no-one cares enough to stop them. Israeli analysts have been studying the Palestinian resistance for more than half a century and by now have surely figured out that any military counter-insurgency measures against an opponent that actually lives in the warzone, is like punching your fist into a bucket of water - the moment you pull it out its back to how it was. My bet is that Israel's strategists know full well that the bloodshed will not bring about the end of Hamas, quite contrary, if anything their current onslaught will increase the groups popularity amongst the huddled up masses in Gaza’s basements. So why, if not to feed the flames, this gruesome Israeli military incursion?

Throughout all of this drama, Palestinians pretty much were, and are now, on their own. Their brothers in Egypt & the Arab league can’t come to the rescue, too convenient is the ever festering status of Palestine for Mubarak and his fellow totalitarian Arab leaders.

European powers, as always displaying no backbone when it comes down to standing up for the oppressed, are no hopers too. Merkel and her unconditional support for the Israeli murder spree is the prime example for what Palestinians can expect from the EU. Hollow words and a few shekels to rebuild the destroyed infrastructure - Israel needs new targets for future bombing raids.

And then there is Obama, already a write off, an AIPAC sleeper who got activated; his chief of staff, Rahm Emanuel, who felt himself so obligated that he had to serve his time in the Israeli Oppression Force and whose father it seems was a member of the Jewish terror group Irgun, forget the US admin, bastards the lot of them.

All Obama had to do was come out of his ivory tower and tell the Israeli leadership that if they continue with their atrocious war crimes against defenseless civilians, it will spell the end of any US weapons and logistics support. Not a single bomb would have been dropped on Gaza. He didn't, and hence carries some responsibility for the deaths and injuries inflicted on the Palestinian civilians.

One thing is for sure, and after 40 years of Israel’s continued illegal occupation of Palestinian land one can be fairly certain, the ruling elites across the world will not lift a finger to bring this conflict to an end. They will do what they do best, squabble amongst them in some fancy conference room, only to emerge with a declaration that nothing can be done, calling on both sides to be more friendly to each other. The slow but steady theft of Palestinian land will continue, and so will the suffering.

Should you be so inclined, please contribute to Gaza’s aid.

Every day a golden egg

When doing time in economics classes, I was taught that if I wanted to sell the item with the highest gross profit margin, I should sell cups of coffee. The substance needed costs about 2 cents to buy and you can sell it for $3 because you mixed it up with free water and kept it warm. Sell $3’000 worth and you’ll have $20 cost of goods sold, or in other words a profit margin of 99.33%, which equates to 14900% mark up.

That is indeed impressive. Not many retail items can claim such lucrative attributes, as a matter of fact I can think of only one other, bank fees.

Erwin Fletcher wants to put aside some money, build up a deposit so he can buy a family home. The idea is that every fortnight, shortly after Erwin's employer deposits the wages into his normal savings account, a certain amount, say $200 dollars, are transferred to a special saver account. So he goes to his bank branch and asks the staff to set up an automatic transfer every fortnight. No problems Sir.

It all goes well for months and months, but then one fortnight he did have only $180 in his regular account, just short of the $200 that is routinely debited. The bank charges him a $30 fee for not having had enough money in the account to do the transfer.

Let’s keep in mind that no bank employee had to move a finger. A computer tried to move money between accounts, but an IF statement in its program stopped the transactions as there weren't sufficient funds. What was the cost to the bank? Nil. But they charged Erwin $30 dollars. The fact that Erwin’s account did not have sufficient funds to be transferred did not inconvenience anyone. He didn’t borrow money from the bank or any third party. A computer program simply did what it was designed to do and not transferred an arranged sum.

The cost of this attempted transaction by the bank’s computer amounts to $0, sold to the customer for $30. Happening thousands of times a day across the nation. This, ladies and gentlemen, is one of the many rip off mechanisms the banks employ to make the obscene profits they are known for.

I guess it takes a banker to defend one, and so the Chief of all Australian bankers, Reserve Bank governor Glenn Stevens, had the following to say at last weeks hearing at the House of Reps committee on Economics:

"While I know, in some ways, people feel aggrieved that banks are highly profitable, there are other banks around the world that are bearing large losses and because of that, they're not in a position to make loans," Mr Stevens said.

"If you assess what's more preferable, the banks we have are far more preferable."

Whilst it is true that it is preferable to have banks which don’t make losses, apologists like Glenn Stevens translate this into banks must reap exorbitant profits.

The banks RBA governor Stevens is referring to, the ones who are currently under liquidity pressure, are not in dire straits because they failed to charge their customers enough bank fees, they are suffering big write offs due to their overpaid management teams not doing their homework and chose to invest borrowed money in crappy repackaged US housing loans, and are now called up on it.

And it’s not, as Stevens seems to imply, that only “other banks around the world” were sucked into the vortex of greed and are now bit by bit spat out at the other end with monster losses, there are potentially plenty of them right here at home. A couple of weeks ago I pointed in a post at the dilemma the Australian banking sector might be facing. According to some analysts, the risk exposure Down Under could be far greater than widely admitted, with the chances being moderately high that the current global liquidity crisis will also be forcing Australian banks to bring out their dead over the next two years.

Businesses, not unlike farmers, know that you gotta make hay while the sun shines, but banks, being masters in the art of cashing in, have figured out a way how to stuff their money sacks no matter which way the weather turns out. The only thing that could change that, is when asset prices are falling. And that is essentially what is happening in the US.

Our bankers know they are not immune to being caught in the global wave of balance sheet write offs due to the contracting US economy and its consequent deflating housing bubble. And so, with an approving RBA governor Glenn Stevens confirming this, Australian banks are already passing on their as yet unidentified but plausible losses to the customers in any shape or form they can. Be that with interest rate rises above the official rate or through ridiculous fees and charges just to have a computer program tell you how much money you allegedly have or don’t have.

Every time someone misses a mortgage payment or hasn’t got enough money in the account to cover an automatic transfer, the banks earn money, not even asking, they just deduct their fee out of your balance. What are the cows in the steeple aka the customers gonna do? Switch banks? They all do it. Massive sums are being raked in that way Australia wide:

Committee chairman Craig Thomson said annual bank profits had climbed to about $4 billion, up from about $1 billion five years ago.

That means quadrupled in 5 years, across the industry, all competitors in unison. Are there four times more customers in the world? No, banks making a packet is due to existing customers simply being milked more intensely. To get an understanding of the banks profit curves, I chose one of the larger banks, one with a pretty consumer friendly name, the Commonwealth Bank, the one that doesn’t like Mad Max koalas in its advertising, which in their eyes makes all the difference.

On the right is a graph I put together on how the CBA's net profits have developed over the past 10 years. And yes, this was your money once, at least if you are CBA customer.

According to the Reserve Bank’s March 07 Financial Stability Review, Australia’s 5 biggest banks made in 2006 a combined after tax profit of 24 Billion dollars. As a comparison, that is 10 times the amount of the federal government’s annual cash surplus, or close to being twice of what Australia spends on defense.

Profits are coming out of their ears, and yet, even in times when growing sections in the Australian housing market are experiencing some kind of mortgage stress, they have no scruples whatsoever to increase interest rates above RBA figures and mushrooming the earnings from fees & other charges.

The real idiocy about it is that banks are actually playing us all for fools and continuously get away with it. Supposedly their role is to be the middle men between the saver and the borrower. B deposits money with the bank, which A then loans, with the bank earnings being the difference between interest earned and paid. That however is not how the scheme is designed. I mean ask yourself, have you ever received a letter from your bank saying your deposited funds were unavailable for the time being because they lend it to someone else?

This is what someone who knows a little bit about the plot had to say:

"Banks lend by creating credit. They create the means of payment out of nothing."
- Sir Ralph Hawtrey, Secretary of the British Treasury during the 1930’s

This magic trick has a name, its called fractional reserve banking. How it works and what it means for Erwin Fletcher, is worth its own post. Hopefully I will get around to it in the not too distant future.

The George & Kevin Show

The Australian Prime Minister Kevin “Busy Beaver” Rudd is in Washington. He had a bit of a meeting with the US leader, George Bush Jr., and their mutual understanding was omnipresent. It came as no surprise then when both cowboys in their press conference seem to read from the same script. And true to his word, that his administration will be more “pro-active” in world politics, Kevin went straight for it:

Ahead of the NATO summit in Bucharest next week, Mr Rudd re-emphasised the need for the Europeans to play a bigger role in the more dangerous south of Afghanistan.

Let’s just get this straight. The Australian Prime Minister complains about the European troop commitment to the invasion / occupation of Afghanistan. I am not sure when it was the last time Kevin or his advisors had a glance at the troop numbers supplied by the 40 allied nations to ISAF, the NATO-led mission in Afghanistan, but here are some pretty recent figures:

To put these numbers in perspective, of the 39 countries contributing to ISAF, 75% are European who combined provide some 23’000 of the total of 43’000 allied soldiers that make up ISAF, that is more than half the boots on the ground. Looking at the 8 countries who contribute more personnel & resources than Australia, 6 are European. So why this constant blame game?

What is the aim of insinuating that if it weren’t for the lack of courage by the European contingent, there would have been more progress in NATO’s Afghan adventure?

Although it was the US administration which initiated the whole sorry affair that the war in Afghanistan has become, with 23’000 European troops their involvement exceeds the US contribution in terms of man power by 50%.

But then again, Kevin’s remark was not designed to mock the troop numbers of our European allies, but more likely to suggest that the ones that were there are underperforming. Something along the lines of Europeans are cowardly hiding in the “quiet North West” while the Mericans, Canadians & Australians have to do all the fighting in the “dangerous South East”.

According to a CNN count, as of March 28, 2008 there have been 777 coalition deaths – listed in order of casualty numbers:

Whilst the casualty numbers seem to imply indeed that US troops are paying a higher price than many of their European allies, European countries have lost more than 200 of their soldiers in the invasion / occupation of Afghanistan, which is more than a quarter of all allied casualties. Australia had to bemoan luckily only 4 thereof.

This ISAF map shows where the respective nations have deployed their troops. Should, as repeatedly requested by US officials and now not surprisingly Kevin Rudd, Europeans take on a greater role in the south eastern end of Afghanistan and move their units into those hard fought for areas, who would fill the void in the north west? With the Germans, Spaniards, Dutch, French & Italians all moving south, would the Mericans and Canadians move north, in effect swapping jobs with the Europeans? Sounds like rotating NATO troops along the lines of “Come on guys, you do the killing for a while, we’re due for a holiday.”

More from Kevin on that issue:

"We need to sign up a common script both military and civil on how we actually prosecute and succeed in this conflict," he said.

If I read that correctly then they don’t have yet a common strategy on how to succeed in Afghanistan. And that after 6 years!!! My o my, where will this end.

But then again, with two such mighty good leaders in place, I am almost certain we will have world peace in no time at all. Check out their credentials:

In what was often a jovial press conference, Mr Bush pegged Mr Rudd as a straight-shooter who was a strategic thinker and basically a decent guy.

And he was quick to agree that he too was befitting of the moniker "Man of Steel", a term he first bestowed on John Howard for his resolve in the war against terror.

Mr Rudd returned the favour by making the President an honorary Queenslander...

Queenslanders must be absolutely stoked with having George Bush as a fellow citizen. The man on whose orders some 100’000 Iraqis had to die will be proudly wearing the Maroons jumper Kevin has given him.

The Blues better watch out, George doesn't like loosing. Before you know it he'll spike NSW onto the axis of evil.

Finally, after all these numbers, sports & politics, and just to wrap this up, here a link to a site that cracked me up when I read it today, Vlads Daily Gloat, the radical Russian with a weakness for anything US American.

Be afraid, very afraid

Bells were ringing, the choir was singing, and Bishop-man deliverd the Easter lecture to his Christian flock. Let’s see what he had to say:

In his Easter message this weekend, the Anglican Archbishop of Sydney Dr Peter Jensen has warned of the occult.

The Archbishop is particularly concerned about people using the supernatural to contact deceased loved ones.

That’s right dear reader, one of the leading Christians in the country, with a pendant hanging from his neck showing a deceased person on a cross, during a festival celebrating the alleged resurrection of said dead person some 2000 years ago, tells his congregation that to believe someone could establish contact with people who passed away is very silly, supernatural, indeed witchcraft. Mwuahh ha, ha, ha, that is delicious.

A man whose whole professional reality is based on being able to communicate with a dead person, whose religion is based on the idea to promise a life after death, argues that we should be concerned about people trying to contact the deceased. The butcher telling shoppers not to make gravy.

The Archbishop then continued his sermon by sharing with his sheeple the initial finding of his investigation into the phenomenon of people evoking the spirits:

Dr Jensen told ABC radio's AM program there has been a surge of interest non-traditional religions.

"There's become a great deal more freedom than there used to be decades ago, with mind and spirit stuff; new age religions," he said.

"All the sort of stuff you see very prominently in book stores.”

Competition angst, that’s what this is, and as per Religion 101, competition needs to be stomped out. When operating in the holy industry, the standard weapon of choice to smear opposition is to pass judgment and brand them as sects, or as in Jensen’s case, new aged spirit stuff.

My hypocrisy meter almost maxed out when I took a reading on Jensen’s Easter message. Seemingly totally oblivious to the fact that his own religion was once upon a time considered an occult movement, with a guru gathering followers, which then set forth to convince others of their self-righteous claim to be the new, the one true religion, the Archbishop chooses to debase other people’s believe systems coz they aren’t quite as antique as his own.

It appears the priest’s line of reasoning is straight forward – The older an religion, the more believable and true it is. However, following his logic, we should all be converting to Hinduism, the religion with the oldest recorded roots, predating Sumerian, Egyptian and Babylonian cultures. By world religion standards, Christianity and Islam are new kids on the block, new age spirit stuff so to say.

But the Bishop kept the best part for last, where he reveals who his audience should blame for re-birthing this heretic past time of trying to get in contact with the dead. And the culprits are:

"But there's also been a large migrant intake into this country from people who haven't been impacted by Western cynical secularism, but culturally have a strong belief in the afterlife and in supernatural beings; in ghosts and spirits.

"And a surprising number of people therefore who are now living in Australia are quite concerned about, and fearful of I think, of this supernatural realm."

Uhh yeah baby, daft migrants with their unwashed believes engaging in voodoo majic, bringing with them from their homelands all those “occult” traditions the Christian missionaries weren’t able to extinct for good. For their good that is, because as most well read people would know, in the Christian life after death model there is nothing to be scared of. Apart from burning eternally in hell.

So, Archbishopman says don’t try to communicate with any souls in the after life, other than Jesus that is - you are allowed to talk to him. Believe in his father and you got nothing to worry about. Remember Adam and Eve, any indiscretion on this part and you won’t make it to heaven, sorry mate, flames on fire for you. Which probably explains why hanging out in your bookstore’s New Age section will lead you to nightmares.

Happy Easter

On wars, banks and love

For years I've been dreaming of going to war with some poor country rich in petroil, you know, making sure there will be enough juice for me and my fleet of cars, but with being stuck in our economic boom times, my work schedule simply didn't allow me to start one up. Now that I finally got to the point in my life where I could take some time off, I find out that I also need shit loads of money. According to latest developments, wars need to be paid for.

Iraq, Afghan wars costing $US3 trillion: experts

With the fifth anniversary of the start of the Iraq war just days away, its cost is becoming clearer.

Ahead of that anniversary, two prominent US economists have come up with a new estimate on the cost to the economy of the wars in both Iraq and Afghanistan. That figure is $US3 trillion ($3.22 trillion)….

The estimated cost so far of Australia's involvement in Iraq and Afghanistan is roughly $3 billion. But Robert Ayson, the director of studies at the Australian National University's Strategic and Defence Studies Centre, says he expects that figure to rise significantly.

Damn, trillions.... thats how many zeros? I'd be mighty surprised should my master card allow me that much. Not with the current global lending crisis anyway, so I guess my war/invasion of target country X has to wait a while, at least until I manage to save up enough dough for a deposit.

I hope you understand that I can't give you exact details about which nation I have in mind. Chances are the country's spies would find out about my invasion plans, their armed forces then propping up their defenses, which would make my job so much harder when its finally time to strike. I can reveal though that it is on an axis of sort, which makes it a very dangerous country.

Lucky here in Australia we had 11 consecutive years of Liberal Party rule, and as every privately schooled kid knows, a Lib government means fat times. So saving up the necessary deposit for my war should be a breeze, with business roaring and interest rates as high as they are. The Australian consumers are loaded, cashed up with real estate equity to a degree that they need to be restraint with rising interest rates. Rivers of honey and milk flowing everywhere.

We don't have no bubble, we won't get no trouble, oh yeah yeah yeah
Let the good times roll, Resources 'R Us
From aluminum to zinc, we got every thing, oh yeah yeah yeah

Wouldn't want to save up for my war chest anywhere else but in Oz, least of all places in the USA. Across the ocean the cogs in the economic wheels are creaking, creating this distinct grinding sound investors dread. It comes therefore as no surprise that Lady Prosperity decided she'll move out for a while.

The other noise thats starting to deafen US Americans is that of chicken coming home to roost. No point in pretending that their dilemma isn't home made, pissing against the wind requires that one changes pants from time to time. In the case of the US this means the entire financial system needs a new outfit, probably even a nappy change.

From riches to rags, the ol' classic. Once the most affluent nation in the known universe, today a banana republic where the Federal Reserve Bank has to resort to having helicopters hovering above Wall Street dropping cash on the nearly bankrupt. Providing massive loans to troubled financial institutions in return for nearly worthless mortgage securities.

Economist Professor Steve Keen, from the University of Western Sydney, made the following observations in an interview on the ABC's World Today:

ELEANOR HALL: What's your view? Is the United States already in recession?

STEVE KEEN: I'm sure it's in recession right now. It's a question of how deep it goes down, and I expect an extremely deep recession. And I'm noticing that quite a few commentators are now coming around to their view. They also suspect a severe recession to occur in America, and we have similar forces afoot in Australia.

We are benefiting from the highest terms of trade in our history at the moment. We're simultaneously running an enormous current account deficit, which is really a crazy combination.

So, we're very heavily reliant upon those prices remaining at unprecedented levels, and they will fall if there... actually there'll have to be a fall in those prices if America goes into recession, and then feeds through to China's demand for our resources and so on. That'll be very problematic for our currency and for our economy.

ELEANOR HALL: When will that hit, do you think?

STEVE KEEN: It's got to be in the next two years. Timing that's any more accurately than that is simply impossible because the whole timing depends upon when we turn around from accepting more debt to trying to pay our debt levels down.

Uhh Lordy, if I understand him right then Keen suggests that Australia will face a similar carnage to what the US is experiencing at the moment, all within the next two years. A world wide economic downturn, triggered by the unfolding US economic collapse, will reduce global demand enough to send commodity prices to lows not seen for quite some time, hitting Australia right in the export eye.

But lucky Australian families were smart enough to stash away their hard earned cash during the fat years, handing it over to people they didn't really know, but who have slick haircuts so expensive looking that who ever sported one had to be a financial mastermind. They tend to work in multi-story high rises, the biggest buildings in town, Australian banks and finance companies.

The really smart bank employees, who not just have expensive haircuts but also wear posh suits and swishy shoes, who have proper titles on their office doors, are normally found from the fourth floor up. They need to be high enough above ground to escape the blaring masses, coz when you make difficult financial decisions - like how to invest your clients’ money – you want to be able to concentrate as much as possible.

Those men and women are pedigree financial planners, making sure Australian retirement eggs and people’s savings are safe and sound. Just how secure Australian banks and their investments really are was illustrated in The Australian last week, when Adele Ferguson wrote a noteworthy assessment titled “Gambles in the balance”. Here an excerpt:

All the banks play the derivatives market. The latest Reserve Bank bulletin reveals that the banks' derivative exposure has more than doubled from $5.4 trillion in 2002 to $13.2trillion in December last year. Given the banks' total shareholder value is less than $100 billion, if even 1 per cent of these $13.2trillion derivatives contracts default because third parties get into trouble, the whole shareholder wealth would be wiped out and our banks could be broke.

To put it into perspective, Australia's annual gross domestic product is just more than $1 trillion and the total budget estimate for federal government expenditure in 2006-07 is $200 billion. Remember the Reserve Bank in its quarterly bulletin estimates that the total risk is $140 billion which, again, is more than the banks' total shareholder value.

What do you say to that? The global economy tanking and Australian banks up to their eyeballs exposed to risky debts. Great, a lose/lose situation. With banks leveraged to the degree they are, fat chance of them giving me the credit I need to pull off my planned invasion. On top of that, should the nation's economy really go as pear shaped as the author of the above article assumes it will, I wouldn't even be able to save up the needed deposit. How on earth am I ever meant to pay for my war?

The new Joint Fighter F-35 Lightning II costs around $200 million a piece, and my military adviser told me I need at least three of them. Plus plenty of cash for rockets, guns and bribery. All these figures confuse the hell out of me, so I made an appointment with my accountant.

We met last week in his office and discussed the plans and strategy. He was quite fond of my idea to kick of the invasion with a big bang, followed by more bangs, and promised me he would have a look into the costings of such an operation. Today he e-mailed me an excel spreadsheet with a recommended budget.

Far out brussels sprout, my jaw dropped to knee height when I opened it. The bottom figure, the one that is double underlined, had so many zeros I have to assume it is a trillion. And then, the comedian he is, he left me a footnote telling me that he reckons that with the current liquidity crisis and all I will have a hard time financing my war. As if I wouldn't know.

Where is Prescott Bush when you need him? He'd love to help me out, I am sure.