Adair Turner: The Consequences of Money-Manager Capitalism – INET Economics

In the wake of World War II, much of the western world, particularly the United States, adopted a new form of capitalism called “managerial welfare-state capitalism.”

The system by design constrained financial institutions with significant social welfare reforms and large oligopolistic corporations that financed investment primarily out of retained earnings. Private sector debt was small, but government debt left over from financing the War was large, providing safe assets for households, firms, and banks. The structure of this system was financially robust and unlikely to generate a deep recession. However, the constraints within the system didn’t hold.

The relative stability of the first few decades after WWII encouraged ever-greater risk-taking, and over time the financial system was transformed into our modern overly financialized economy. Today, the dominant financial players are “managed money”—lightly regulated “shadow banks” like pension funds, hedge funds, sovereign wealth funds, and university endowments—with huge pools of capital in search of the highest returns. In turn, innovations by financial engineers have encouraged the growth of private debt relative to income and the increased reliance on volatile short-term finance and massive uses of leverage.

What are the implications of this financialization on the modern global economy? According to Adair Lord Turner, a Senior Fellow at the Institute for New Economic Thinking and a former head of the United Kingdom’s Financial Services Authority, it means that finance has become central to the daily operations of the economic system. More precisely, the private nonfinancial sectors of the economy have become more dependent on the smooth functioning of the financial sector in order to maintain the liquidity and solvency of their balance sheets and to improve and maintain their economic welfare. For example, households have increased their use of debt to fund education, healthcare, housing, transportation, and leisure. And at the same time, they have become more dependent on interest, dividends, and capital gains as a means to maintain and improve their standard of living.

Another major consequence of financialized economies is that they typically generate repeated financial bubbles and major debt overhangs, the aftermath of which tends to exacerbate inequality and retard economic growth. Booms turn to busts, distressed sellers sell their assets to the beneficiaries of the previous bubble, and income inequality expands.

In the view of Lord Turner, we have yet to come up with a sufficiently robust policy response to deal with the consequences of our new “money manager capitalism.” The upshot likely will be years more of economic stagnation and deteriorating living standards for many people around the world.

 

21-Day Vegan Challenge | Yoga Journal

A plant-based diet may be the secret to increased energy, better health, saving our planet, and becoming a more enlightened yogi. Here’s your roadmap for taking veganism for a test drive.

Ask the most well-respected nutrition researchers what the healthiest way to eat is, and they’ll give you a simple answer: unprocessed food, mostly plants. “All the research points to a plant-based diet—for your health and for the planet,” says David Katz, MD, director of Yale University’s Prevention Research Center and a leading expert on nutrition and health. Numerous studies show eating zero animal protein or significantly cutting back to only a few times a week, for example can help lower your risk for diabetes, heart disease, obesity, and cancer. “DNA does not determine your medical destiny—dinner does,” he says.

If that dinner includes meat and dairy, it may not be inherently unhealthy—a growing body of evidence suggests their saturated fat might not be as harmful as once thought. Nonetheless, plants are exponentially healthier, says Philip Tuso, MD, a plant-based nutrition expert with Kaiser Permanente Care Management Institute. “All the extra fiber, vitamins, minerals, antioxidants, and other phytonutrients you take in by swapping meat for plants have a healing and protective effect,” he says. In fact, eating a mostly vegan diet may even change the way your body reacts to meat if and when you do eat it: Studies suggest that when people who usually follow plant-based diets consume meat, their bodies don’t produce the same amounts of a chemical associated with heart disease, called TMAO, as omnivores’ bodies do.

The cost of the typical American diet goes beyond increased illness and subsequent health care dollars, however. It requires more than 1o times the energy, plus about 1oo times more water, to produce the same amount of meat protein as plant protein, according to studies on the true cost of farming. Mounting evidence suggests that every step of meat production, from feeding animals to processing meat, depletes resources, stressing an already- fragile environment. “Even if you could be healthy on an animal-based diet, it would be hard on a planet without enough water,” Katz says.

Here’s the thing: You don’t have to go hardcore vegan to reap a large helping of the environmental or health benefits, experts say. The key is to simply eat less beef, poultry, pork, fish, eggs, and dairy, and make the majority of your food plants, including plant-based proteins, such as beans and nuts, says Sharon Palmer, RD, author of Plant-Powered for Life and creator of our vegan meal plan. How you do that is up to you. Perhaps you have vegan days or weeks, eat vegan before 6 p.m. an idea promoted by The New York Times food columnist and cookbook author Mark Bittman, or follow a true Mediterranean diet, in which meat plays a small role. Whatever you choose, you’ll feel the difference almost immediately. “People who eat unprocessed, whole food and mostly plants have more energy. They feel better, they’re healthier, so they’re happier,” Katz says.

Why not see for yourself? Take our three-week vegan challenge, starting with the tasty and healthy recipes and tips on the following pages, then register online for more free recipes and support. For the full 21-day menu, sign up for our newsletters here. Whether you do it for a day, a week, 21 days, or forever, the proof will be in the dairy-free pudding.

See also 3 Ways Going Vegan Reduces Your Carbon Foot Print

via 21-Day Vegan Challenge | Yoga Journal.

Former Fed Bank Examiner Says Secret Tapes Show Fed Leniency : NPR

The Federal Reserve is among the most powerful institutions in the nation and also among the more private. But new audio tapes secretly recorded by a former employee provide a rare look into meetings involving officials from the Federal Reserve Bank of New York.In them, you hear officials considering how to oversee Goldman Sachs, and specifically, they discuss a financial transaction that one official describes as “legal but shady.”

Continued:

via Former Fed Bank Examiner Says Secret Tapes Show Fed Leniency : NPR.

▶ The Science of Climate Change – A Conversation with Dr. Patrick Moore – YouTube

Published on Sep 26, 2014

Why has there been an emphasis on the last hundred years when people speak about climate change? What are the untold benefits of increased CO2 levels? Is it true that there is a near scientific consensus on Climate Change? What are some examples of Climate Change advocate hypocrisy? Why did Dr. Patrick Moore leave Greenpeace? What does the science say about genetically modified organism GMO such as golden rice?

Stefan Molyneux speaks with one of the founding members of Greenpeace, Dr. Patrick Moore. For more information on Dr. Moore, please go to: http://www.ecosense.me

To buy “Confessions of a Greenpeace Dropout: The Making of a Sensible Environmentalist” please go to: http://www.fdrurl.com/PatrickMoore

The Geopolitics of World War III [Video] | Shift Frequency

The Geopolitics of World War III [Video] | Shift Frequency.

Lots of good posts on Gillian’s site – especially this one.

Shiftfrequency.com

 

 

There Are Now 52 Explanations For Pause In Global Warming | The Daily Caller

It’s been a busy year for climate scientists, who have been trying to explain why there has been no global warming for nearly two decades.The Daily Caller News Foundation reported in February there were eight mainstream explanations for the pause, but there are now a whopping 52 explanations for why there has been no warming trend for the last 215 months.

via There Are Now 52 Explanations For Pause In Global Warming | The Daily Caller.

3 Reasons to NOT Fight ISIS – Reason TV

Published on Sep 12, 2014

President Obama has effectively declared war on the Islamic State in Iraq and Syria, announcing that “we will degrade, and ultimately destroy, ISIS through a comprehensive and sustained counter-terrorism strategy.”

But here are three reasons we should not be fighting ISIS in the Middle East.

1. ISIS isn’t that powerful.

War hawks such as Sen. Dianne Feinstein (D-Calif.) claim that “the threat ISIS poses cannot be overstated.” That is itself an overstatement. The FBI and Homeland Security both say ISIS isn’t a credible threat to the American homeland. The group may be great at using social media to exaggerate its power, but estimates of its troop strength range between 10,000 and 30,000 and most analysts talk about a core group of a few thousand fighters.

2. It’s a regional conflict.

ISIS controls territory inside Iraq and Syria. But even President Obama concedes that ISIS does not currently pose a threat “beyond that region.”

Iraq and Syria—and their neighbors, including Turkey, Iran, Saudi Arabia, Jordan, and the Kurds—are the ones that must deal with this problem. Iraq’s army has more than one-quarter of a million U.S.-trained troops, the Peshmerga almost as many. Iran’s active forces number over half a million.

3. What counts as victory?

In announcing bombing runs and sending more American soliders to the Middle East, President Obama not only failed to call for congressional authorization, he neglected to discuss any sort of exit strategy. That’s a prerequisite for any responsible war plan. As important, his definition of success—we will “ultimately destroy” ISIS—is a goal nobody has ever achieved against any terrorist group.

Let’s be clear: The U.S. should do everything it can to defend its citizens and its interests.

But if the past dozen years have taught us anything—in Iraq and elsewhere—it’s that war is more complicated than our leaders ever want to admit. And it’s a lot easier to start wars than to win them—or even know when they’re over.

About 2 minutes.

Written by Nick Gillespie and produced by Meredith Bragg. Camera by Todd Krainin and Amanda Winkler.

Visit http://www.reason.com/reason.tv for downloadable versions and subscribe to Reason TV’s YouTube channel for automatic notifications when new videos go online.

Related reading: “Ending Evil vs. Defending the Country,” by Jacob Sullum.

The Truth About ISIS Beheadings: 9/11 Stefan Molyneux

Published on Sep 11, 2014

Sources: https://board.freedomainradio.com/top…

As the Iraqi civil war rages on, the Islamic State in Iraq and Syria (ISIS), or otherwise known as Islamic State in Iraq and the Levant (ISIL), has recently began to execute U.S. journalists through beheading, releasing gruesome recordings on internet. This has sparked a new wave of outrage throughout the world, and in his September 10 Address to the Nation, President Barack Obama vowed to “degrade and ultimately destroy” ISIS, outlining a war plan that involves air strikes and sending more troops to Iraq. On the 13th anniversary of the 9/11 attack, has the United States learned anything from the War on Terror, or is it doomed to repeat the same mistakes?

https://www.youtube.com/watch?v=h3iqoYSVoFs

 

Millionaire Politicians: Trading Influence for Cash – YouTube

 

The poverty rate in the United States has risen by about 33% since the year 2000, while the income gap between the top 1 percent earners and the rest has widened by 17 percent for the same period. How have those socioeconomic changes affected America’s politicians?

As it turns out, for the first time in history, more than 50 percent of U.S. Congress members are millionaires.

Furthermore, the median net worth in 2012 for all 535 members of Congress in office was a little over $1 million. The value of all their combined assets, minus liabilities, was about $4 billion, and many of them are in the nation’s top 1 percent richest people.

The top 25 wealthiest senators and representatives each have an estimated net worth of more than $35 million, with the richest – Darrell Issa (R-Calif) – topping the list with nearly half a billion dollars.

U.S. lawmakers earn a base annual salary of $174,000, not counting benefits, and many of them invest in Wall Street.

In 2012, the 10 most popular stock investments for members of Congress included the technological giant General Electric (1st), the bank Wells Fargo (2nd), Bank of America (6th), and JPMorgan Chase (7th).

Do politicians use their privileged position to engage in insider trading? As University of Chicago Professor Luigi Zingales points out, “Not only can members of Congress legally trade on confidential information; they do, despite the potential cost to their reputations.”

A 2004 study published in the Journal of Financial and Quantitative Analysis revealed that U.S. senators trading in stocks beat the market by 12 percent a year. “Since even the best hedge-fund managers find it hard to achieve comparable results, we must conclude that these senators either are better than hedge-fund managers, or that they benefit from privileged information,” writes Zingales. U.S. congressmen and their staffers also collect privileged information and sell it to hedge-fund managers for millions of dollars.

Peter Schweizer, the President of the Government Accountability Institute, wrote in his 2011 book Throw Them All Out: “Insider trading is illegal on Wall Street, yet it is routine among members of Congress. Normal individuals cannot get in on IPOs at the asking price, but politicians do so routinely. The Obama administration has been able to funnel hundreds of millions of dollars to its supporters, ensuring yet more campaign donations. An entire class of investors now makes all of its profits based on influence and access in Washington.”

Sources:
https://www.census.gov/hhes/www/pover…
http://topincomes.g-mond.parisschoolo…
http://www.nytimes.com/2014/01/10/us/…
http://www.bloomberg.com/news/2014-01…
https://www.opensecrets.org/news/2014…
http://www.opensecrets.org/pfds../ove…
http://www.opensecrets.org/pfds../ove…
http://globalpublicsquare.blogs.cnn.c…
http://www.walkerd.people.cofc.edu/40…
http://townhall.com/tipsheet/katiepav…
http://www.amazon.com/Throw-Them-All-…

Millionaire Politicians: Trading Influence for Cash – YouTube.

Keiser Report: Fast Food Tax Evasion E647 – YouTube

via Keiser Report: Fast Food Tax Evasion E647 – YouTube.

 

In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss Burger King, yet another company fleeing America for yet another ‘free’ healthcare nation, Canada. Meanwhile, back in America naked incidents are on the rise and, in Europe, suicide tourism rises four-fold. In the second half, Max interviews Trace Mayer about bitcoin, central banking and geopolitics.