The public bank concept is gaining ground on the state level, attracting proponents across the political spectrum.( Ellen Brown)
In his analysis “Improvements and efficiencies in local government”, Eric B gives the impression that a few reforms here and there can make local and state governments work. He goes on to give a supposed balanced analysis by presenting snippets from both Rip off Rick and Virg Bernero comparing their approach to efficiencies in government. It is very similar to what you see in the MSM press today. I do agree do with Eric is that efficiencies have their place in the scheme of governing. But these are not normal times and normal solutions will not solve the problem.
Rip off rick surely has some scheme to cut municipal pensions, sell assets/privatize assets, and outsource union labor but I doubt he has much more than that. Is that what Michigan needs?
I think Eric missed the big picture in his article and here is why. Virg Bernero is the only candidate who understands that the root of the problem is the Wall Street banks. He is the only candidate offering a meaningful solution by proposing to create a state bank. That is no small item. Consider what Virg Bernero said in the press release announcing his intention to set up a state bank modeled after North Dakota's bank.
"Michigann's Small business Community is still struggling to grow and create jobsand incremental changes just aren't getting the job done," Bernero said. "Hundreds of job-creating projects are still on hold because Michigan businesses and entrepreneurs cannot get bank financing. We can break the credit crunch and beat Wall Street at their own game by keeping our money right here in Michigan and investing it to retool our economy and create jobs."
The simple fact is that without an honest banking system there can be no recovery for Michigan. Talking “improvements and efficiencies in local government “is an issue that is meant to distract us from the real problem that Michigan and many of its cities will face bankruptcy if revenues don't start to increase. Of courrse bankruptcy for Michigan and its cities is just what some want in order to carry out the agenda of destroying unions and their pensions and selling off public assests to private companies for a dime on the dollar.
Last May, Carl Levin tried to pass banking reform legislation know as the Volker rule. That reform legislation would have re-imposed restrictions first implemented by FDR. That would have been good for Michigan. His reforms were completely shut down by the Wall Street banks and involve the mysterious flash crash that some have called an act of domestic terrorism by Wall Street banks. Consider what Barry Ritholtz wrote concerning that market flash crash.
I don’t buy into the many conspiracy theories that continually seem to get resurrected, but I expect that this particular thesis, from Max Keiser, may very well have legs:
“May 6th was an unequivocal act of domestic financial terrorism in America. A day that will live in infamy.
To scare the lawmakers, themselves large owners of the very banks and stocks that they are supposed to be regulating, a financial Weapon of Mass Destruction was put to their head and they acquiesced.
As the inventor of the continuous double-auction, market-making technology (VST tech. US pat. no. 5950176) that is referenced 132 times by program trading and HFT patents since 1996, I can tell you that Goldman, JP Morgan and the gang simply pulled the ‘buys’ from their computer trading programs and manufactured a crash. And when the coast was clear, and it was clear the politicians were not going to vote for anything that would break up the ‘too big to fail’ banks; all the ’sells’ were pulled from the computers and the market roared back.
This is a Manchurian Candidate market where program trading bots start the ball rolling in whatever direction Wall St. wants the market to go – and then hundreds of thousands of day-traders watching Cramer on CNBC jump on the momentum bandwagon and commit the crime for the Wall St. financial terrorists, who then say, ‘It wasn’t us, it was ‘the market!’”
Amped Content goes on to note that coincidentally the day after the crash, the “break up the too big to fail banks” amendment was soundly defeated by a 61 to 33 margin in Senate. And, a deal was struck to eliminate key provisions from the audit of the Federal Reserve bill. And, Goldman was meeting with the SEC to work out a settlement in their case against them.
I am always reluctant to put much stock into these nefarious “coincidences” — but I have to admit that Max’ theory here is quite intriguing . . .
Virg Bernero is trying to accomplish the same thing as Carl Levin tried to do in a different way by creating a state bank. Nothing will ensure the safety of Michigan pensions and revitalize the economy like a state bank. A state bank can take deposits and lend to small businesses to create jobs and tax revenue. Wall Street banks are refusing to lend in Michigan even while they are the beneficiary of trillions of dollars of taxpayer bailouts.
So what is so special about North Dakota? It doesn’t have to rely on a recalcitrant Wall Street for credit. It makes its own. (The Christian Science Monitor)
Have you noticed that the one state that has a state bank, North Dakota, has a budget surplus and is adding jobs? Consider Ellen Brown’s excellent article on the move nationwide towards state banks.
Amanda Paulson, writing in The Christian Science Monitor, quotes Arturo Pérez, fiscal analyst with the National Conference of State Legislatures, which released its survey of state budget situations in December: "Unless you’re North Dakota, you’re probably a state that has had some degree of difficulty or crisis involving finances. It’s the worst situation states have faced in decades, perhaps going as far back as the Great Depression in some states."
“Unless you’re North Dakota,” that is—a state with a sizeable budget surplus, and the only state that is adding jobs when other states are losing them. A February 13 poll ranked that weather-challenged state first in the country for citizen satisfaction with their standard of living. North Dakota’s affluence has been attributed to oil, but other states with oil are in deep financial trouble. The big drop in oil and natural gas prices propelled Oklahoma into a budget gap that is 18.5 percent of its general-fund budget. California is also resource-rich, with a $2 trillion economy; yet it has a worse credit rating than Greece. So what is so special about North Dakota? The answer seems to be that it is the only state in the union that owns its own bank. It doesn’t have to rely on a recalcitrant Wall Street for credit. It makes its own.
Even some republicans are pressing the idea of state banks?
In Idaho, James Stivers, a Republican candidate for the State Senate, has also proposed a state bank to fill state coffers and protect the local economy. In the first indication of a political shift among grassroots Republicans, Stivers swept a closed-ballot preference poll at the GOP District 2 Central Committee meeting in Coeur d’Alene on February 13, winning the non-binding poll 10 to zero. Stivers declares:
An important part of sovereignty is the monetary authority. Currently, banks are allowed to multiply many times over the tax receipts deposited in their institutions. This special privilege is partly responsible for the ‘sucking sound’ in our local economies, as regional banks send their assets to central banks that are playing the derivatives markets of the world.
A state bank would restore this privilege to the people in a public trust and would give us the opportunity to back our deposits with the wealth from our public lands.
Virg Bernero understands this. Carl Levin understands this. The UAW understands this. There may be more, much more, to this story than is apparent on the surface.
UAW President Bob King on Friday urged JPMorgan Chase to "wake up" and "do the right thing" and halt foreclosures in Michigan and aid farm workers in North Carolina.
King's comments came as the United Auto Workers, church leaders and farmer laborers are withdrawing hundreds of millions of dollars from the New York-based bank in protest of Chase's decision not to implement a two-year moratorium on foreclosures in Michigan.
Don’t be fooled. The battle ground for economic reform is now at the state and local level. The contrast between the two candidates for Governor of Michigan is huge. Talking about fringe issues like efficiencies in government is a republican diversion in this election. You have to have revenues to be efficient with them. Rip off Rick understands this. That is why he does not want to debate. Public exposure is bad for him.
Virg Bernero sees the big picture. Has the right ideas at the right time and is the only acceptable choice for Governor.
OK, I have no idea what this actually means, and it's obviously WAY too early to be too encouraged, but this is certainly a long-overdue positive bit of news:
General Motors has just announced that they will no longer need the $2 billion in government funding that they had previously requested for March. The good news comes in tangent with the announcement that GM Canada has ratified a competitive agreement with the CAW.
GM states they no longer need the US funding due to an acceleration of company wide cost reductions and “pro-active deferrals of spending previously anticipated in January and February.”
Jack has spent many segments this week talking about and with the movers and shakers who are attending this week's Democratic National Convention in Denver. Folks like Democratic Party Chairman Mark, Brewer, former Michigan Governor James Blanchard, Local UAW President Robin Golden and 18-year old party delegate Jason Morgan.
Hear those clips and more from the world of politics, news and sports in our Audio Vault.
Monday, Jack covered labor unrest in and around Mid-Michigan.
First he spoke with Art Covert, president-elect of the MSU Graduate Employees Union, about Tuesday's proposed strike.
Next he talked to David Cole, chairman of the Center for Automotive Research in Ann Arbor, about the latest dealings between the UAW and General Motors.
UPDATE by Hazen Pingree: A source close to the negotiations has confirmed to me that the Clinton campaign is indeed giving serious consideration to a new vote in Michigan. An actual government-sanctioned primary isn't going to happen. What may emerge is a party-run primary with a large and expansive multitude of sites and opportunities for participation. Electronic voting could potentially be involved. Funding issues still need to be resolved and it's not yet clear what Obama's position will be. However, given his support for a new Michigan vote in the past it would be pretty lame if he backed away now (this coming from a diehard Obama backer).
It could be one hell of an exciting Michigan summer!
Results were too close to call in Texas early today, but even before Clinton won in Ohio, her campaign chairman, Terry McAuliffe, said he would welcome a second chance in both states (Michigan and Florida), where Clinton won what are, for now, meaningless primaries.
"We're all for a primary in both states because we can't go into a general election and say those votes didn't count," he said. "But do-overs cost millions of dollars. It's up to those states."
Michigan Gov. Jennifer Granholm, a Clinton supporter, said the victory in Ohio changes "the landscape a bit" and could open the door to a Democratic caucus -- not a primary -- in Michigan, though it would have to be privately funded and both candidates would have to agree.
Earlier this week, Obama campaign manager David Plouffe said of the Clinton camp "they keep moving the goalposts, but at some point you run out of field." Well...I guess this is one way to address that problem: make the field bigger.
I guess since I'm an Obama guy I should favor a caucus...but really I can live with a primary too. Just so long as it's not paid for with tax dollars and both candidates are on the friggin' ballot.
Who knows? Maybe we get to go the prom after all?
BTW, congrats are in certainly in order to Camp Hillary for their victories yesterday (even though the overall delegate count margin remains roughly the same) and for a hard-fought campaign. For Obamarama, here's hoping we get our groove back in Wyoming and Mississippi...
You won't
see either Barack Obama or Hillary Clinton in Michigan, but from all
appearances they are now locked in a spirited battle for our delegates.
What? I thought the Michigan "primary" happened a
month ago?
Well,
consider this...
On Monday, Hillary stumped
at a General Motors plant in White Marsh, Maryland. Flanked by Michigan
DNC member, GM lobbyist (and Hillary donor) Debbie Dingell, Hillary
declared that we're going to have the "strongest and best automotive
sector in the world" - ripped the South Korea free trade deal and
promised $22 billion in federal grants and bonds to help automakers
retool to build "green" vehicles.
Yesterday,
Barack stumped at a GM plant in Janesville, Wisconsin. In his
speech he ripped NAFTA and touted his
10-year, $150
billion plan to promote "green" manufacturing.
Interestingly,
Debbie Dingell was there too - and delivered a
kind quote to the Detroit News:
"It was
significant," said Michigan Democratic activist and GM Foundation head
Debbie Dingell, who attended Wednesday's speech and toured the plant
with Obama. "When he talks about these issues, he demonstrates that he
gets it."
Today, if media
reports are to be
believed, Hillary will be going to - you guessed it - another
GM
plant. This time in Lordstown, Ohio.
Gee,
I wonder if Ford's and Chrysler are getting envious?
If they're looking for input (see bottom of article), let's flood them with support / advice / examples / whatever might help them actually enact this. It certainly can't hurt. There is a strong automotive/Michigan economy-specific motivation for doing so too. Many believe that part of the reason the Big 3 won't mass produce fuel-efficient vehicles, especially plug-in electric hybrids, is the real or perceived notion that 'there is no viable market' to warrant a large scale production ramp up for such vehicles. This could be the hard proof they need. Probably not. But again, it can't hurt.
Please check out (and feel free to borrow from) the cheesy form letter below the copyright line at the end of the article. Then send an email to the address found in the article's last sentence.
The Office of Federal Procurement Policy Dec. 28 proposed new "green purchasing policies and affirmative procurement programs" for all government contracting mechanisms and acquisition strategies to protect the environment and conserve natural resources and energy through contracting (72 Fed. Reg. 73,904).
The letter would require agencies to give preference to green products and services, including alternative fuels and alternative fuel vehicles; bio-based products; Energy Star and Federal Energy Management Program (FEMP)-designated products; electronics registered on the Electronic Product Environmental Assessment Tool; low- or non-toxic hazardous chemicals or products; non-ozone depleting substances; recycled content and/or remanufactured products; renewable energy; and water-efficient products.
"Agency acquisition policies and programs shall enhance and, where appropriate, mandate the purchase and use of green products and services covered in this policy letter," OFPP Administrator Paul Denett says in the proposed letter.
The policies would implement a Jan. 26, 2007, executive order (Exec. Order No. 13,423) directing agencies to strengthen the management of environmental, transportation, and energy-related activities, as well as various environmental and energy policy statutes. The letter would supersede OFPP Policy Letter 92-4, "Procurement of Environmentally-Sound and Energy-Efficient Products and Services," dated Nov. 2, 1992.
The proposed policies would apply to all acquisition and contracting mechanisms, including service contracts, purchases made using government purchase cards and fleet cards, and purchases valued at less than the micropurchase threshold.
Green Affirmative Purchasing Program.
Additionally, OFPP would require that each federal agency develop and implement a comprehensive affirmative procurement plan for the acquisition of green products and services, also to be referred to as a "green procurement plan."
At a minimum, the plan would be required to:
•?state a preference for the acquisition of green products and services, and require the flow of this preference down to all agency contractors and subcontractors;
•?explain the green acquisition roles and responsibilities of contracting officials, program managers, product specifiers, purchase card holders, and program administrators;
•?promote the acquisition of green products and services internally within the agency and externally to source providers and other government agencies, including agencies at the state and local levels; and
•?provide annual compliance monitoring, corrective action, and/or auditing of the agency green procurement plan.
Further, agency green plans should address:
•?the development and use of templates for incorporating green purchasing requirements into solicitations and contracts;
•?the use of government E-procurement tools, such as FedBizOpps.com, to publicize green acquisition requirements; and
•?the use of past performance evaluations of contractor adherence to green acquisition priorities.
Green Acquisitions, Socioeconomic Programs.
Under the policy letter, agencies would be directed to first determine their specific performance requirements for products and services and, if they determine that a green product or service can meet those requirements, to give first consideration to mandatory and preferred sources in obtaining such green products or services.
Socioeconomic programs administered by nonprofit agencies employing people who are blind or disabled, namely the AbilityOne program under the Javits-Wagner-O'Day Act and the Federal Prison Industries' UNICOR program, are mandatory sources in accordance with the Federal Acquisition Regulation Subparts 8.6 and 8.7.
Small businesses, including small disadvantaged, women-owned, Native American, Alaska Native, Historically Underutilized Business-Zone, and service-disabled veteran-owned businesses, are preferred sources.
Additional Green Acquisition Requirements.
The OFPP policy letter also would require agencies to:
•?implement "automatic substitution policies" for the procurement of "functionally equivalent" green products and services in place of non-green orders for the same products and services ordered through central supply agencies such as the General Services Administration or the Defense Logistics Agency;
•?include requirements and preferences for the use of green products in all newly awarded services contracts, or in recompetitions of existing services contracts;
•?encourage the incorporation of requirements and preferences for the use of green products during modifications of existing services contracts; and
•?require GSA, DLA, and other contract supply agencies to supply "designated green products" and to "phase out any competing non-green products from their catalogs and on-line ordering systems."
Comments on the OFPP policy letter, "Acquisition of Green Products and Services," are due Feb. 26. Comments may be submitted by e-mail to "OFPPGreen@omb.eop.gov" ; subject line: "Proposed OFPP Policy letter."
Copyright 2008, The Bureau of National Affairs, Inc., Washington, D.C.
This is a fantastic proposal, not only for the country and planet, but possibly, hopefully, for places like Flint, Saginaw, Detroit and the rest of the industrial Midwest. If you saw any of the coverage of the recent Michigan Primaries, you know how badly we are hurting here. Many have suggested that green technologies are our only hope to reinvigorate the Automotive industry, to create green jobs here. With no other industry likely to come in to replace Automotive in any substantive way (we in Michigan have lost nearly 400,000 good jobs and great people since 2001), planet-friendly cars can and should (heck, must) be a real solution. Unfortunately, the Big 3 have been sluggish, even downright indignant towards the move to more fuel-efficient vehicles, particularly plug-in electric hybrids. I have a strong suspicion that what holds them back is the real or perceived notion that, 'there is no viable market' to warrant mass production of these products. Now I'm no 'government to the rescue' guy by any means, but this policy letter really can be part of the hard proof I think they need in order to take their foot off the brake, and produce these products at the level the people of Flint, America and the world need. Congratulations on this proposal. Let's make it happen!
According to a statement issued by the UAW, the contract passed overall with 56% in favor among production workers and 51% in favor among skilled trade workers.
In addition, 94% of office and clerical workers and 79% of engineering workers voted to approve the deal.
"Our members had to face some tough choices, and we had a solid, democratic debate about this contract," UAW President Ron Gettelfinger said in a statement. "Now we're going to come together as a union -- and now it's on the company to move ahead, increase their market share and continue to build great cars and trucks here in the U.S."
[I've been given permission by shirah to cross post this diary here in Michigan. Shirah originally posted it at DailyKos and unbossed.]
Well, the UAW continues to organize casino workers. I've reported on prior wins and campaigns, and I think one loss. The UAW now represents more than 6,000 gaming workers in Michigan, Rhode Island and New Jersey. Here is news on some of its most recent casino campaigns.
On Tuesday morning, while in Grand Rapids, Michigan, Elizabeth took time out of her busy schedule to show solidarity with American workers in two separate visits before heading out of town to the United Steel Workers' "Women of Steel" conference in Toronto (another example of solidarity). I was there with her for some of the morning, so let me tell you what happened.
(Some of the best framing I have seen regarding the budget crisis. - promoted by ScottyUrb)
The strike and budget showdown boils down to a clash of values: what kind of society to we want to live in?
This is really a battle of what kind of state Michigan will be. Low tax, low quality of life, the Mississippi of the north? Or will it make the transition to a post-industrial information economy, becoming the Massachusetts of the Midwest? We know which model the Republicans favor.
It's also a battle over what kind of economy we want. Do we want a Wal-Mart model or a GM model? A broad middle class or a few rich and powerful and insecure, impoverished drones below. Once again, we know what the Republicans want.
[Cross-posted at DKos (http://www.dailykos....) and written for non-Michiganders, but thought some here may find it interesting]
Here in the Mitten State (or Wolverine State), we've been getting slapped around for a while. In the late 1970's and early 1980's there was an exodus from the state as the U.S. auto industry hemorrhaged jobs and money. Things stabilized, eventually, and with the exception of a dip in the 1991 recession, the times were pretty good. When SUV sales took off, with concomitant massive profits for the Big 3, in the 1990's, Michigan was again awash in high wages and expanding auto plants. Overtime was commonplace. Auto workers were getting bonuses of several thousand dollars. Employers in the lower part of the state had trouble filling positions because employment demand was so strong. The Ford truck plant in Wayne, which made the Ford Expedition and Lincoln Navigator, grossed over $11 billion in 1998. [http://www.gladwell....] The State of Michigan was awash in money. So, how did the Great Lakes State invest this money?
Happy Hump Day! Lots of links this morning... enjoy!
Legislation/Budget
AP: Michigan governor signs law setting Jan. 15 presidential primary. The Governor did the right thing. Heck, even the folks in New Hampshire have come to the realization that our primary system is broken.
AP: Senate approves changes aimed at saving school health costs. "Republicans hoped the measure, one of their key cost-saving proposals, would break the stalemate over higher taxes and prompt a response from Democrats who control the House. The GOP wants any tax increase proposal to originate in the House. The state faces a potential government shutdown if a deal is not reached." The countdown to chaos continues.
K-Zoo Gazette: State work program gets good response. No Worker Left Behind is a hit. That's right... the same program Senate Republicans tried to cut funding for just two weeks ago.
Muskegon Chronicle: Threats are a sorry substitute for governance. "Here in Michigan, our state faces a tsunami of fiscal hurt should the funding pool on which our state government operates be drained any further. Our universities, schools, cities, public safety and health care services would all be at risk if legislators who live in the real world and serve real people don't ignore the belligerent bluster of ideologues like Drolet and the government-haters."
Ann Arbor News: Schools start off year with less money. "District cuts include limiting bus service, privatizing services, cutting teaching positions and increasing or instituting pay-to-play fees for athletics." Sorry kids, but this is what happens when Republicans refuse to raise the revenue that is necessary to fund education.
D-News: School's back: Readin' and writin' and belt-tightenin'. A similar article from the News. Here's what UM economist Paul Courant has to say: "The ability to fund education is crucial to the state's future to the extent that the economic problems hinder our ability to produce a work force that can compete in the global economy." Got that? Poorly funded schools = slower economic recovery. It's a simple equation.
Ann Arbor News: Paying tuition a battle EMU students to pay 8% more this semester. "It's difficult to put anything back into the economy when you graduate, because you're so focused on paying off your loans." Thanks for the hike, Mike!
Environment/Energy
Among the Trees: Sequestration a load of hoo-hah? Does sequestering carbon underground amount to simply sweeping the problem under the carpet? Eric's not the only one who thinks so.
Bay City Times: Environmental Film Festival highlights problems on Great Lakes while seeking ideas to solve them. This sounds like a really cool idea: "The films should focus on the Great Lakes region and address what people can do to help the environment. It can be a documentary, a cartoon, even a music video, as long as it gets the message across. Films, in DVD format, are due Dec. 15 and will be judged by a panel of local community leaders."
DEQ: Michigan Air Quality. There's an Ozone alert for Grand Rapids and Ludington today. The DEQ says to "Make clean air choices. Defer using gas-powered engines. Walk, bike, carpool or use mass transit if possible. Link errands into one trip. Conserve energy."
Great Lakes Guy: Ohio Gov. Strickland Unveils "Advanced" Energy Strategy. "Ohio Governor Ted Strickland earlier this week unveiled an 8-point strategic initiative to diversify his state's energy portfolio with renewable power, generate tens of thousands of jobs, and modernize Ohio's economy for the 21st century." Gee, wouldn't it be nice if we could get this done here in Michigan? Sen. Barcia's RPS legislation is still languishing in the Michigan Senate.
(A personal look at the ongoing contract negotiations - promoted by lpackard)
From the day you walk in you are told “save your money, you’ll be laid off before long.” While I never disputed the wisdom of saving money it takes a while to get used to being on pins and needles during times of “slow sales”, model eliminations or the always menacing contract year. An autoworker has a strangely unique set of worries. Sometimes it feels as if you are in the eye of a storm, you can see the storm around you and all you can do is wait to be swept up in it. I have no inside information on the actual contract talks themselves but I can give a voice to the frustrations, fears and hopes that many autoworkers go through nearly year-round for their entire career at GM especially at contract time.
Being a 3rd generation GM employee has prepared me for the mindset that any day I could walk into work and be told that I am being laid off. I have had our product outsourced to another country, had the company decide to do away with an entire name plate, and had no work due to strike. Recently we have even had the corporation decide to eliminate an entire shift and then within a month decide to put it back on after workers had already been moved to different departments, shifts and even plants. Needless to say anyone who has tried to get daycare arranged knows how long that can take, especially if you get moved to the night shift on 5 days notice. The day after I signed the papers for my first house I was laid off! Most auto workers will tell you that having these things in the back of your mind constantly takes a great toll. I count my blessings for the UAW who at every point of my life has provided for me; from infancy to adulthood and hopefully into old-age. Many would contend that this round of negotiations is about exactly that.
"Can you imagine either Carl Levin or Debbie Stabenow uttering these words to a a foreign automaker: "We are warriors on your behalf. I can assure you we will look after your interests"? That's what Sen. Trent Lott, the Mississippi Republican, told Toyota executives after they announced their new manufacturing plant would be built in Tupelo. Michigan's Democratic senators are rarely active in bringing econonmic [sic] development to the state, and would never declare themselves "warriors" on behalf of a company, particularly a non-union one. What would the UAW think. ..."
Being a "warrior" for a foreign company is creepy sort of rhetoric, I suspect. (What was Trent Lott thinking? ...Isn't he the guy who praised Strom Thurmond?) Asia-bashing is not good either, but Finley has really lost his touch if he thinks that being a "samurai", so to speak, for a Japanese auto company is really going to fly with people here.
Sandra Svoboda wrote a very interesting article in today's Detroit MetroTimes about Dave Bonior, his relationship with John Edwards, and the roll unions may play in the 2007-2008 Democratic primaries: http://www.metrotime...
Below are some excerpts, summaries and my commentary:
