All posts by TPPA = CRISIS

Hi, my name is Hans Hilhorst. I am just a private individual hoping to contribute to our debate about matters of Political Economy. I am not affiliated with or a member of any commercial entity, political party or organization of any kind. - All my life I have been interested in psychology and economics, the things that define human society. I have also always been an avid reader of everything remotely related to those topics and I have gained a fair bit of ‘research material’ and ‘empirical evidence’ during my career through the Neoliberal nightmare, or ‘User Pays’ as we call our brand of Neoliberalism down under. - My opinions are neither here nor there, they are mine alone. I share them merely to throw in my 5 cents, looking for common spirits and clear young minds, open to new thinking. I endeavor though to keep my contributions controlled and prefer to put forward those of the multitude of academics, scientists, thinkers, authors and whoever else of credible authority. Those who have done the research, spoken to the victims, walked in their shoes and dealt with the consequences of our economic and social policies. In this way I hope to show that the cry for urgent attention to our social economic policies is not just the sound of a leftist mob, but a well supported and professional crowd of experts from around the globe. - I wish to stir the debate on our economic direction. I think it has been lopsided. Not because we are biased or stupid, but because we have been deliberately misinformed, censored and deceived. - At this juncture in time we are truly faced with the consequences of our progress: Robot Domination! Will it be like SkyNet and Arnie’s goldmine or just a happy invasion of our workplaces, allowing us time for ‘the good life’, the beach, and reading. - Hans

New Zealand Capital Gains Lunacy. Ryman Healthcare: $362.9m profit, Zero Tax? – Anne Gibson. 

Ryman Healthcare this morning released its annual report to the NZX, showing it made $362.9 million annual pre-tax profit – but have not paid not a cent in tax.

Notes to the accounts showed New Zealand’s largest listed retirement business, with a market capitalisation of $4.1b, incurred a tiny $6.2m income tax expense.

But even that was deferred, meaning it didn’t need to be paid.

Under the item ‘current tax expense’, there appeared a bar, indicating no tax was paid for the March 31, 2017 year. The company’s statement of cash flows also showed no tax payments.

Yet Ryman’s applicable tax rate is the corporate 28 per cent, the accounts also showed. The accounts filed showed that if Ryman paid tax at the applicable 28 per cent, it would have incurred a $101,637,000 tax bill (last year $86,613,000).

But that was whittled down to zero.

Deborah Russell, Labour’s candidate for New Lynn and a former Massey University senior lecturer in taxation at the accounting school, said Ryman had done nothing wrong because as the notes to the accounts showed, its non-taxable income principally arose from fair value movement in investment property.

“So that’s capital gains. They’re not [so much] in the business of providing retirement accommodation as much as in the business of earning capital gains. Those are not taxed. It’s all perfectly legal and in fact, New Zealand tax law allows this at the moment. The issue is whether we should be taxing capital gains.

Wage earners might find Ryman’s tax situation unpalatable, she indicated.

“For wage and salary earners, all our income gets taxed but capital gains are earned over a time and they don’t get taxed. It’s all perfectly legal but what’s legal is not necessarily fair.”

Gordon MacLeod, Ryman chief executive, appeared in a Herald video at the latest results briefing, talking about the tax issue.

Asked why only an approximately $6m tax sum appeared in the accounts, MacLeod said: “It’s really simple, because we actually invested in so much development, so we have a really strong development pipeline.”

Jeremy Simpson, a senior equities analyst Forsyth Barr who specialises in property, said today the zero tax bill didn’t surprise him, it was known when the annual result was announced a few weeks ago and he also emphasised nothing was wrong.

“Because they’re such a big developer – one of the biggest in New Zealand – there’s a deduction associated with the development. If the Government decided to tax capital gains… but there’s no capital gains tax in New Zealand,” Simpson said.

Ryman was no different to fellow listed retirement businesses Metlifecare or Summerset in deferring its tax, he said, adding that New Zealand would be much the poorer if such big businesses were not developing new aged-care facilities.

The state was certainly not keeping pace with providing facilities for the rapidly ageing population, he said.

Asked of his opinion about Ryman paying no tax, Simpson said: “I’m absolutely OK with the tax situation. They’re been listed since 1999 and that’s the way the model works.

“No one is building new aged care facilities in New Zealand except the retirement village operators and we’re going to have a chronic shortage. If you start reducing the profitability…they’re using the profits from the retirement villages to subsidise building the care. If we didn’t have the retirement village operators building the care beds, we would be in a dire situation in New Zealand with regard to having enough care beds.”

Simpson emphasised that Ryman shareholders were liable to pay tax on the dividends they received.

“We have a situation in New Zealand where you only pay tax once. While Ryman doesn’t pay any tax, the shareholders do pay tax on the dividends so there’s still a tax take. Ryman also pays tax a lot of GST on their development.

“So there’s a bit more to it than the headline ‘they pay no tax’,” Simpson said.

A Ryman spokesman said: “Since listing, Ryman has paid 50 per cent of its underlying profit as dividends to shareholders, and those dividends are subject to resident withholding tax at 33 per cent with no imputation credits.

“In New Zealand, either the company pays tax or its shareholders do – but not at both levels.

“Ryman is currently not paying tax at a company level because of its very significant and growing investment in critical healthcare infrastructure for the elderly. In the last 10 years Ryman has built over 2000 care beds and 1000 assisted living units, providing great care options for thousands of New Zealanders,” the Ryman spokesman said.

“Half of Ryman’s build is centred around care provision and accordingly tax depreciation deductions are greater than what is allowed for accounting, because of the wear and tear in care centres that occurs each day. In addition, Ryman is able to deduct interest costs from bank debt in full – as can all other New Zealand companies. Ryman only incurs bank debt to fund development activities.

“Finally, a significant proportion of Ryman’s reported profits occur from fair value investment property gains, which are not subject to tax. This is because the gain is either unrealised from a paper valuation movement only, or relates to cash flows from resident capital sums – which are not taxable because we have a repayment obligation when the resident vacates their unit.

“On a broader level, Ryman pays significant amounts of GST which cannot be claimed back on the cost of developing independent living units for residents, and also creates an increasing PAYE take by creating additional jobs at the new villages we build every year – in total tens of millions per annum,” the Ryman spokesman said.

NZ Herald 

Brexit: Wrong then, wrong now, wrong in the future -The Guardian. 

In one of the several low points of her stunningly inept general election campaign, Theresa May warned that Jeremy Corbyn would be “alone and naked” in the Brexit negotiating chamber. This week, though, it is Mrs May herself who has been revealed as Brexit’s empress with no clothes. Everything about her performance in Brussels over the last two days has underlined both the larger national tragedy of Britain’s decision to leave the EU and the deepening personal failure of Mrs May’s attempts to deliver it.

The post-Brexit future of EU citizens in this country, and of our citizens in the EU are widespread concerns across our continent. The uncertainty reaches into thousands of homes and affects millions of lives, especially of young people. Mrs May’s insensitive handling of it is both characteristic and a glumly indicative example of a wider Brexit problem that stretches to every horizon.

Britain’s decision to leave the EU was lamentable when it was taken. It remains lamentable now. If it is ever carried out, it will still be lamentable in the future. That is not going to change.

……… The Guardian 

President Trump’s Lies to 21 June, the Definitive List – The New York Times. 

JAN. 21 “I wasn’t a fan of Iraq. I didn’t want to go into Iraq.” (He was for an invasion before he was against it.)JAN. 21 “A reporter for Time magazine — and I have been on their cover 14 or 15 times. I think we have the all-time record in the history of Time magazine.” (Trump was on the cover 11 times and Nixon appeared 55 times.)JAN. 23 “Between 3 million and 5 million illegal votes caused me to lose the popular vote.” (There’s no evidence of illegal voting.)JAN. 25 “Now, the audience was the biggest ever. But this crowd was massive. Look how far back it goes. This crowd was massive.” (Official aerial photos show Obama’s 2009 inauguration was much more heavily attended.)JAN. 25 “Take a look at the Pew reports (which show voter fraud.)” (The report never mentioned voter fraud.)JAN. 25 “You had millions of people that now aren’t insured anymore.” (The real number is less than 1 million, according to the Urban Institute.)JAN. 25 “So, look, when President Obama was there two weeks ago making a speech, very nice speech. Two people were shot and killed during his speech. You can’t have that.” (There were no gun homicide victims in Chicago that day.)JAN. 26 “We’ve taken in tens of thousands of people. We know nothing about them. They can say they vet them. They didn’t vet them. They have no papers. How can you vet somebody when you don’t know anything about them and you have no papers? How do you vet them? You can’t.”(Vetting lasts up to two years.)JAN. 26 “I cut off hundreds of millions of dollars off one particular plane, hundreds of millions of dollars in a short period of time. It wasn’t like I spent, like, weeks, hours, less than hours, and many, many hundreds of millions of dollars. And the plane’s going to be better.” (Most of the cuts were already planned.)JAN. 28 “Thr coverage about me in the @nytimes and the @washingtonpost gas been so false and angry that the times actually apologized to its dwindling subscribers and readers.” (It never apologized.)JAN. 29 “The Cuban-Americans, I got 84 percent of that vote.” (There is no support for this.)JAN. 30 “Only 109 people out of 325,000 were detained and held for questioning. Big problems at airports were caused by Delta computer outage” (At least 746 people were detained and processed, and the Delta outage happened two days later.)FEB. 3 “Professional anarchists, thugs and paid protesters are proving the point of the millions of people who voted to MAKE AMERICA GREAT AGAIN!” (There is no evidence of paid protesters.)FEB. 4 “After being forced to apologize for its bad and inaccurate coverage of me after winning the election, the FAKE NEWS @nytimes is still lost!” (It never apologized.)FEB. 5 “We had 109 people out of hundreds of thousands of travelers and all we did was vet those people very, very carefully.” (About 60,000 people were affected.)FEB. 6 “I have already saved more than $700 million when I got involved in the negotiation on the F-35.” (Much of the price drop was projected before Trump took office.)FEB. 6 “It’s gotten to a point where it is not even being reported. And in many cases, the very, very dishonest press doesn’t want to report it.” (Terrorism has been reported on, often in detail.)FEB. 6 “The failing @nytimes was forced to apologize to its subscribers for the poor reporting it did on my election win. Now they are worse!” (It didn’t apologize.)FEB. 6 “And the previous administration allowed it to happen because we shouldn’t have been in Iraq, but we shouldn’t have gotten out the way we got out. It created a vacuum, ISIS was formed.” (ISIS has existed since 2004.)FEB. 7 “And yet the murder rate in our country is the highest it’s been in 47 years, right? Did you know that? Forty-seven years.” (It was higher in the 1980s and ’90s.)FEB. 7 “I saved more than $600 million. I got involved in negotiation on a fighter jet, the F-35.” (The Defense Department projected this price drop before Trump took office.)FEB. 9 “Chris Cuomo, in his interview with Sen. Blumenthal, never asked him about his long-term lie about his brave ‘service’ in Vietnam. FAKE NEWS!” (It was part of Cuomo’s first question.)FEB. 9 Sen. Richard Blumenthal “now misrepresents what Judge Gorsuch told him?” (The Gorsuch comments were later corroborated.)FEB. 10 “I don’t know about it. I haven’t seen it. What report is that?” (Trump knew about Flynn’s actions for weeks.)FEB. 12 “Just leaving Florida. Big crowds of enthusiastic supporters lining the road that the FAKE NEWS media refuses to mention. Very dishonest!” (The media did cover it.)FEB. 16 “We got 306 because people came out and voted like they’ve never seen before so that’s the way it goes. I guess it was the biggest Electoral College win since Ronald Reagan.” (George H.W. Bush, Bill Clinton and Barack Obama all won bigger margins in the Electoral College.)FEB. 16 “That’s the other thing that was wrong with the travel ban. You had Delta with a massive problem with their computer system at the airports.” (Delta’s problems happened two days later.)FEB. 16 “Walmart announced it will create 10,000 jobs in the United States just this year because of our various plans and initiatives.” (The jobs are a result of its investment plans announced in October 2016.)FEB. 16 “When WikiLeaks, which I had nothing to do with, comes out and happens to give, they’re not giving classified information.” (Not always. They have released classified information in the past.)FEB. 16 “We had a very smooth rollout of the travel ban. But we had a bad court. Got a bad decision.” (The rollout was chaotic.)FEB. 16 “They’re giving stuff — what was said at an office about Hillary cheating on the debates. Which, by the way, nobody mentions. Nobody mentions that Hillary received the questions to the debates.” (It was widely covered.)FEB. 18 “And there was no way to vet those people. There was no documentation. There was no nothing.” (Refugees receive multiple background checks, taking up to two years.)FEB. 18 “You look at what’s happening in Germany, you look at what’s happening last night in Sweden. Sweden, who would believe this?” (Trump implied there was a terror attack in Sweden, but there was no such attack.)FEB. 24 “By the way, you folks are in here — this place is packed, there are lines that go back six blocks.” (There was no evidence of long lines.)FEB. 24 “ICE came and endorsed me.” (Only its union did.)FEB. 24 “Obamacare covers very few people — and remember, deduct from the number all of the people that had great health care that they loved that was taken away from them — it was taken away from them.” (Obamacare increased coverage by a net of about 20 million.)FEB. 27 “Since Obamacare went into effect, nearly half of the insurers are stopped and have stopped from participating in the Obamacare exchanges.” (Many fewer pulled out.)FEB. 27 “On one plane, on a small order of one plane, I saved $725 million. And I would say I devoted about, if I added it up, all those calls, probably about an hour. So I think that might be my highest and best use.” (Much of the price cut was already projected.)FEB. 28 “And now, based on our very strong and frank discussions, they are beginning to do just that.” (NATO countries agreed to meet defense spending requirements in 2014.)FEB. 28 “The E.P.A.’s regulators were putting people out of jobs by the hundreds of thousands.” (There’s no evidence that the Waters of the United States rule caused severe job losses.)FEB. 28 “We have begun to drain the swamp of government corruption by imposing a five-year ban on lobbying by executive branch officials.” (They can’t lobby their former agency but can still become lobbyists.)MARCH 3 “It is so pathetic that the Dems have still not approved my full Cabinet.” (Paperwork for the last two candidates was still not submitted to the Senate.)MARCH 4 “Terrible! Just found out that Obama had my ‘wires tapped’ in Trump Tower just before the victory. Nothing found. This is McCarthyism!” (There’s no evidence of a wiretap.)MARCH 4 “How low has President Obama gone to tapp my phones during the very sacred election process. This is Nixon/Watergate. Bad (or sick) guy!” (There’s no evidence of a wiretap.)MARCH 7 “122 vicious prisoners, released by the Obama Administration from Gitmo, have returned to the battlefield. Just another terrible decision!” (113 of them were released by President George W. Bush.)MARCH 13 “I saved a lot of money on those jets, didn’t I? Did I do a good job? More than $725 million on them.” (Much of the cost cuts were planned before Trump.)MARCH 13 “First of all, it covers very few people.” (About 20 million people gained insurance under Obamacare.)MARCH 15 “On the airplanes, I saved $725 million. Probably took me a half an hour if you added up all of the times.” (Much of the cost cuts were planned before Trump.)MARCH 17 “I was in Tennessee — I was just telling the folks — and half of the state has no insurance company, and the other half is going to lose the insurance company.” (There’s at least one insurer in every Tennessee county.)MARCH 20 “With just one negotiation on one set of airplanes, I saved the taxpayers of our country over $700 million.” (Much of the cost cuts were planned before Trump.)MARCH 21 “To save taxpayer dollars, I’ve already begun negotiating better contracts for the federal government — saving over $700 million on just one set of airplanes of which there are many sets.” (Much of the cost cuts were planned before Trump.)MARCH 22 “I make the statement, everyone goes crazy. The next day they have a massive riot, and death, and problems.” (Riots in Sweden broke out two days later and there were no deaths.)MARCH 22 “NATO, obsolete, because it doesn’t cover terrorism. They fixed that.” (It has fought terrorism since the 1980s.)MARCH 22 “Well, now, if you take a look at the votes, when I say that, I mean mostly they register wrong — in other words, for the votes, they register incorrectly and/or illegally. And they then vote. You have tremendous numbers of people.” (There’s no evidence of widespread voter fraud.)MARCH 29 “Remember when the failing @nytimes apologized to its subscribers, right after the election, because their coverage was so wrong. Now worse!”(It didn’t apologize.)MARCH 31 “We have a lot of plants going up now in Michigan that were never going to be there if I — if I didn’t win this election, those plants would never even think about going back. They were gone.” (These investments were already planned.)APRIL 2 “And I was totally opposed to the war in the Middle East which I think finally has been proven, people tried very hard to say I wasn’t but you’ve seen that it is now improving.”(He was for an invasion before he was against it.)APRIL 2 “Now, my last tweet — you know, the one that you are talking about, perhaps — was the one about being, in quotes, wiretapped, meaning surveilled. Guess what, it is turning out to be true.”(There is still no evidence.)APRIL 5 “You have many states coming up where they’re going to have no insurance company. O.K.? It’s already happened in Tennessee. It’s happening in Kentucky. Tennessee only has half coverage. Half the state is gone. They left.” (Every marketplace region in Tennessee had at least one insurer.)APRIL 6 “If you look at the kind of cost-cutting we’ve been able to achieve with the military and at the same time ordering vast amounts of equipment — saved hundreds of millions of dollars on airplanes, and really billions, because if you take that out over a period of years it’s many billions of dollars — I think we’ve had a tremendous success.” (Much of the price cuts were already projected.)APRIL 11 “I like Steve, but you have to remember he was not involved in my campaign until very late. I had already beaten all the senators and all the governors, and I didn’t know Steve.” (He knew Steve Bannon since 2011.)APRIL 12 “You can’t do it faster, because they’re obstructing. They’re obstructionists. So I have people — hundreds of people that we’re trying to get through. I mean you have — you see the backlog. We can’t get them through.” (At this point, he had not nominated anyone for hundreds of positions.)APRIL 12 “The New York Times said the word wiretapped in the headline of the first edition. Then they took it out of there fast when they realized.” (There were two headlines, but neither were altered.)APRIL 12 “The secretary general and I had a productive discussion about what more NATO can do in the fight against terrorism. I complained about that a long time ago and they made a change, and now they do fight terrorism.” (NATO has been engaged in counterterrorism efforts since the 1980s.)APRIL 12 “Mosul was supposed to last for a week and now they’ve been fighting it for many months and so many more people died.” (The campaign was expected to take months.)APRIL 16 “Someone should look into who paid for the small organized rallies yesterday. The election is over!” (There’s no evidence of paid protesters.)APRIL 18 “The fake media goes, ‘Donald Trump changed his stance on China.’ I haven’t changed my stance.” (He did.)APRIL 21 “On 90 planes I saved $725 million. It’s actually a little bit more than that, but it’s $725 million.” (Much of the price cuts were already projected.)APRIL 21 “When WikiLeaks came out … never heard of WikiLeaks, never heard of it.” (He criticized it as early as 2010.)APRIL 27 “I want to help our miners while the Democrats are blocking their healthcare.” (The bill to extend health benefits for certain coal miners was introduced by a Democrat and was co-sponsored by mostly Democrats.)APRIL 28 “The trade deficit with Mexico is close to $70 billion, even with Canada it’s $17 billion trade deficit with Canada.” (The U.S. had an $8.1 billion trade surplus, not deficit, with Canada in 2016.)APRIL 28 “She’s running against someone who’s going to raise your taxes to the sky, destroy your health care, and he’s for open borders — lots of crime.” (Those are not Jon Ossoff’s positions.)APRIL 28 “The F-35 fighter jet program — it was way over budget. I’ve saved $725 million plus, just by getting involved in the negotiation.” (Much of the price cuts were planned before Trump.)APRIL 29 “They’re incompetent, dishonest people who after an election had to apologize because they covered it, us, me, but all of us, they covered it so badly that they felt they were forced to apologize because their predictions were so bad.” (The Times did not apologize.)APRIL 29 “As you know, I’ve been a big critic of China, and I’ve been talking about currency manipulation for a long time. But I have to tell you that during the election, number one, they stopped.” (China stopped years ago.)APRIL 29 “I’ve already saved more than $725 million on a simple order of F-35 planes. I got involved in the negotiation.” (Much of the price cuts were planned before Trump.)APRIL 29 “We’re also getting NATO countries to finally step up and contribute their fair share. They’ve begun to increase their contributions by billions of dollars, but we are not going to be satisfied until everyone pays what they owe.” (The deal was struck in 2014.)APRIL 29 “When they talk about currency manipulation, and I did say I would call China, if they were, a currency manipulator, early in my tenure. And then I get there. Number one, they — as soon as I got elected, they stopped.” (China stopped in 2014.)APRIL 29 “I was negotiating to reduce the price of the big fighter jet contract, the F-35, which was totally out of control. I will save billions and billions and billions of dollars.” (Most of the cuts were planned before Trump.)APRIL 29 “I think our side’s been proven very strongly. And everybody’s talking about it.” (There’s still no evidence Trump’s phones were tapped.)MAY 1 “Well, we are protecting pre-existing conditions. And it’ll be every good — bit as good on pre-existing conditions as Obamacare.” (The bill weakens protections for people with pre-existing conditions.)MAY 1 “The F-35 fighter jet — I saved — I got involved in the negotiation. It’s 2,500 jets. I negotiated for 90 planes, lot 10. I got $725 million off the price.” (Much of the price cuts were planned before Trump.)MAY 1 “First of all, since I started running, they haven’t increased their — you know, they have not manipulated their currency. I think that was out of respect to me and the campaign.” (China stopped years ago.)MAY 2 “I love buying those planes at a reduced price. I have been really — I have cut billions — I have to tell you this, and they can check, right, Martha? I have cut billions and billions of dollars off plane contracts sitting here.” (Much of the cost cuts were planned before Trump.)MAY 4 “Number two, they’re actually not a currency [manipulator]. You know, since I’ve been talking about currency manipulation with respect to them and other countries, they stopped.” (China stopped years ago.)MAY 4 “We’re the highest-taxed nation in the world.” (We’re not.)MAY 4 “Nobody cares about my tax return except for the reporters.” (Polls show most Americans do care.)MAY 8 “You know we’ve gotten billions of dollars more in NATO than we’re getting. All because of me.” (The deal was struck in 2014.)MAY 8 “But when I did his show, which by the way was very highly rated. It was high — highest rating. The highest rating he’s ever had.”(Colbert’s “Late Show” debut had nearly two million more viewers.)MAY 8 “Director Clapper reiterated what everybody, including the fake media already knows- there is ‘no evidence’ of collusion w/ Russia and Trump.” (Clapper only said he wasn’t aware of an investigation.)MAY 12 “Again, the story that there was collusion between the Russians & Trump campaign was fabricated by Dems as an excuse for losing the election.” (The F.B.I. was investigating before the election.)MAY 12 “When James Clapper himself, and virtually everyone else with knowledge of the witch hunt, says there is no collusion, when does it end?” (Clapper said he wouldn’t have been told of an investigation into collusion.)MAY 13 “I’m cutting the price of airplanes with Lockheed.” (The cost cuts were planned before he became president.)MAY 26 “Just arrived in Italy for the G7. Trip has been very successful. We made and saved the USA many billions of dollars and millions of jobs.” (He’s referencing an arms deal that’s not enacted and other apparent deals that weren’t announced on the trip.)JUNE 1 “China will be allowed to build hundreds of additional coal plants. So, we can’t build the plants, but they can, according to this agreement. India will be allowed to double its coal production by 2020.” (The agreement doesn’t allow or disallow building coal plants.)JUNE 1 “I’ve just returned from a trip overseas where we concluded nearly $350 billion of military and economic development for the United States, creating hundreds of thousands of jobs.” (Trump’s figures are inflated and premature.)JUNE 4 “At least 7 dead and 48 wounded in terror attack and Mayor of London says there is ‘no reason to be alarmed!’” (The mayor was specifically talking about the enlarged police presence on the streets.)JUNE 5 “The Justice Dept. should have stayed with the original Travel Ban, not the watered down, politically correct version they submitted to S.C.” (Trump signed this version of the travel ban, not the Justice Department.)JUNE 21 “They all say it’s ‘nonbinding.’ Like hell it’s nonbinding.” (The Paris climate agreement is nonbinding — and Trump said so in his speech announcing the withdrawal.)JUNE 21 “Right now, we are one of the highest-taxed nations in the world.” (We’re not.)

New York Times 

No is not enough, defeating the new ‘shock politics’. Part 1: Trump Shock Therapy  – Naomi Klein. 

Shock Doctrine 

The term “shock doctrine” describes the quite brutal tactic of systematically using the public’s disorientation following a collective shock: wars, coups, terrorist attacks, market crashes, or natural disasters, to push through radical pro-corporate measures, often called “shock therapy.”

Trump and his top advisers are trying to pull off a domestic shock doctrine. The goal is all-out war on the public sphere and the public interest, whether in the form of antipollution regulations or programs for the hungry. In their place will be unfettered power and freedom for corporations. It’s a program so defiantly unjust and so manifestly corrupt that it can only be pulled off with the assistance of divide-and-conquer racial and sexual politics, as well as a nonstop spectacle of media distractions. And of course it is being backed up with a massive increase in war spending, a dramatic escalation of military conflicts on multiple fronts, from Syria to North Korea, alongside presidential musings about how “torture works.”

The goal? The “deconstruction of the administrative state” (the government regulations and agencies tasked with protecting people and their rights).

And “if you look at Trump’s Cabinet nominees, they were selected for a reason, and that is deconstruction.”

What’s happening in Washington is not the usual passing of the baton between parties. It’s a naked corporate takeover, one many decades in the making. It seems that the economic interests that have long since paid off both major parties to do their bidding have decided they’re tired of playing the game. Apparently, all that wining and dining of elected officials, all that cajoling and legalized bribery, insulted their sense of divine entitlement. So now they’re cutting out the middlemen— those needy politicians who are supposed to protect the public interest— and doing what all top dogs do when they want something done right: they are doing it themselves.

Up to now in US politics there’s been a mask on the corporate state’s White House proxies: the smiling actor’s face of Ronald Reagan or the faux cowboy persona of George W. Bush (with Dick Cheney/ Halliburton scowling in the background). Now the mask is gone. And no one is even bothering to pretend otherwise.

The Trump family’s business model is part of a broader shift in corporate structure that has taken place within many brand-based multinationals, one with transformative impacts on culture and the job market, trends that I wrote about in my first book, No Logo: Taking Aim at the Brand Bullies. What this model tells us is that the very idea that there could be— or should be— any distinction between the Trump brand and the Trump presidency is a concept the current occupant of the White House cannot begin to comprehend. The presidency is in fact the crowning extension of the Trump brand.

The fact that such defiant levels of profiteering from public office can unfold in full view is disturbing enough. As are so many of Trump’s actions in his first months in office. But history shows us that, however destabilized things are now, the shock doctrine means they could get a lot worse. The main pillars of Trump’s political and economic project are: the deconstruction of the regulatory state; a full-bore attack on the welfare state and social services (rationalized in part through bellicose racial fearmongering and attacks on women for exercising their rights); the unleashing of a domestic fossil fuel frenzy (which requires the sweeping aside of climate science and the gagging of large parts of the government bureaucracy); and a civilizational war against immigrants and “radical Islamic terrorism”(with ever-expanding domestic and foreign theaters).

A large-scale crisis— whether a terrorist attack or a financial crash— would likely provide the pretext to declare some sort of state of exception or emergency, where the usual rules no longer apply. This, in turn, would provide the cover to push through aspects of the Trump agenda that require a further suspension of core democratic norms— such as his pledge to deny entry to all Muslims (not only those from selected countries), his Twitter threat to bring in “the feds” to quell street violence in Chicago, or his obvious desire to place restrictions on the press. A large-enough economic crisis would offer an excuse to dismantle programs like Social Security. 

We don’t go into a state of shock when something big and bad happens; it has to be something big and bad that we do not yet understand. A state of shock is what results when a gap opens up between events and our initial ability to explain them. When we find ourselves in that position, without a story, without our moorings, a great many people become vulnerable to authority figures telling us to fear one another and relinquish our rights for the greater good.

There’s one thing I’ve learned from reporting from dozens of locations in the midst of crisis, whether it was Athens rocked by Greece’s debt debacle, or New Orleans after Hurricane Katrina, or Baghdad during the US occupation: these tactics can be resisted. To do so, two crucial things have to happen. First, we need a firm grasp on how shock politics work and whose interests they serve. That understanding is how we get out of shock quickly and start fighting back. Second, and equally important, we have to tell a different story from the one the shock doctors are peddling, a vision of the world compelling enough to compete head-to-head with theirs. This values-based vision must offer a different path, away from serial shocks—one based on coming together across racial, ethnic, religious, and gender divides, rather than being wrenched further apart, and one based on healing the planet rather than unleashing further destabilizing wars and pollution. Most of all, that vision needs to offer those who are hurting—for lack of jobs, lack of health care, lack of peace, lack of hope—a tangibly better life.

Trump, extreme as he is, is less an aberration than a logical conclusion, a pastiche of pretty much all the worst trends of the past half century. Trump is the product of powerful systems of thought that rank human life based on race, religion, gender, sexuality, physical appearance, and physical ability, and that have systematically used race as a weapon to advance brutal economic policies since the earliest days of North American colonization and the transatlantic slave trade. He is also the personification of the merger of humans and corporations, a one-man megabrand, whose wife and children are spin-off brands, with all the pathologies and conflicts of interest inherent in that. He is the embodiment of the belief that money and power provide license to impose one’s will on others, whether that entitlement is expressed by grabbing women or grabbing the finite resources from a planet on the cusp of catastrophic warming. He is the product of a business culture that fetishists “disruptors” who make their fortunes by flagrantly ignoring both laws and regulatory standards.

Most of all, he is the incarnation of a still-powerful free-market ideological project, one embraced by centrist parties as well as conservative ones, that wages war on everything public and commonly held, and imagines corporate CEOs as superheroes who will save humanity.

In 2002, George W. Bush threw a ninetieth-birthday party at the White House for the man who was the intellectual architect of that war on the public sphere, the radical free-market economist Milton Friedman. At the celebration, then US secretary of defense Donald Rumsfeld declared, “Milton is the embodiment of the truth that ideas have consequences.” He was right— and Donald Trump is a direct consequence of those ideas.

With US vice president Mike Pence or House speaker Paul Ryan waiting in the wings, and a Democratic Party establishment also enmeshed with the billionaire class, the world we need won’t be won just by replacing the current occupant of the Oval Office.

Naomi Klein

from her new book: No is not enough, defeating the new shock politics. 

Only Mass Deportation Can Save America – Bret Stephens, NYTimes. 

In the matter of immigration, mark this conservative columnist down as strongly pro-deportation. The United States has too many people who don’t work hard, don’t believe in God, don’t contribute much to society and don’t appreciate the greatness of the American system.

They need to return whence they came.

I speak of Americans whose families have been in this country for a few generations. Complacent, entitled and often shockingly ignorant on basic points of American law and history, they are the stagnant pool in which our national prospects risk drowning.

On point after point, America’s nonimmigrants are failing our country. Crime? A study by the Cato Institute notes that nonimmigrants are incarcerated at nearly twice the rate of illegal immigrants, and at more than three times the rate of legal ones.

Educational achievement? Just 17 percent of the finalists in the 2016 Intel Science Talent Search — often called the “Junior Nobel Prize” — were the children of United States-born parents. At the Rochester Institute of Technology, just 9.5 percent of graduate students in electrical engineering were nonimmigrants.

Religious piety — especially of the Christian variety? More illegal immigrants identify as Christian (83 percent) than do Americans (70.6 percent), a fact right-wing immigration restrictionists might ponder as they bemoan declines in church attendance.

Business creation? Nonimmigrants start businesses at half the rate of immigrants, and accounted for fewer than half the companies started in Silicon Valley between 1995 and 2005. Overall, the share of nonimmigrant entrepreneurs fell by more than 10 percentage points between 1995 and 2008, according to a Harvard Business Review study.

Nor does the case against nonimmigrants end there. The rate of out-of-wedlock births for United States-born mothers exceeds the rate for foreign-born moms, 42 percent to 33 percent. The rate of delinquency and criminality among nonimmigrant teens considerably exceeds that of their immigrant peers. A recent report by the Sentencing Project also finds evidence that the fewer immigrants there are in a neighborhood, the likelier it is to be unsafe.

And then there’s the all-important issue of demographics. The race for the future is ultimately a race for people — healthy, working-age, fertile people — and our nonimmigrants fail us here, too. “The increase in the overall number of U.S. births, from 3.74 million in 1970 to 4.0 million in 2014, is due entirely to births to foreign-born mothers,” reports the Pew Research Center. Without these immigrant moms, the United States would be faced with the same demographic death spiral that now confronts Japan.

Bottom line: So-called real Americans are screwing up America. Maybe they should leave, so that we can replace them with new and better ones: newcomers who are more appreciative of what the United States has to offer, more ambitious for themselves and their children, and more willing to sacrifice for the future. In other words, just the kind of people we used to be — when “we” had just come off the boat.

O.K., so I’m jesting about deporting “real Americans” en masse. Who would take them in, anyway? But then the threat of mass deportations has been no joke with this administration.

New York Times

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Jeremy Corbyn insists he ‘can still be PM’ and vows to fight Theresa May ‘all the way’ – Chloe Chaplain. 

Labour leader Jeremy Corbyn insisted he “can still be prime minister” as he vowed to fight Theresa May’s attempt to run a minority government “all the way”.

Labour won 262 seats in the General Election, up from the 232 secured by Ed Miliband in 2015, but the Conservatives remain the largest party in Parliament.

Mrs May today secured an outlined agreement with the DUP who she hopes will be able to prop up her minority in the Commons.

But Mr Corbyn said that, without an outright majority, Mrs May’s position is vulnerable and he has outline his intention to oppose the Queen’s Speech in an attempt to bring down her administration.

‘Very happy’: Mr Corbyn said he was pleased with the election result (Frank Augstein/AP)

He told the Sunday Mirror: “I can still be prime minister. This is still on. Absolutely. Theresa May has been to the palace. She’s now attempting to form a government.

“She’s then got to present a programme to Parliament. There’s a possibility of voting the Queen’s Speech down and we’re going to push that all the way.

“We have got a mandate to deal with issues of poverty, justice and inequality in Britain.  We want to end austerity and invest in this country and that’s what we’re going to do.

“Nearly 13 million people voted for us to do it. That’s why I’m here.”

Mr Corbyn said: “I don’t think Theresa May and this government have any credibility.

“The Prime Minister called this election on the basis she would need a stronger mandate to negotiate Brexit.

“Well look what’s happened. The parallels are with 1974. The Conservatives sought, as they have done this time, a ‘who governs Britain?’ mandate.

 Evening Standard