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  Date / Time: 10/31/2008 7:31 PM UTC

  The economic crisis and war?

  24 October 2008

  While the world's attention has been focused on the global economic crisis, the United States has continued to prosecute its neo-colonial war in Iraq and has expanded its military violence in Afghanistan and the adjoining border regions of Pakistan.

  Early Thursday morning, a US drone fired four missiles into a religious school, or madrassa, in a tribal area of Pakistan's North Waziristan, killing 11 people, according to Agence France-Presse. It was the latest in a series of US strikes into Pakistan, including at least one commando raid by Special Forces ground troops, launched since the beginning of September. That the US has embarked on a deliberate policy of spreading its war of occupation in Afghanistan into Pakistan was underscored by last month's revelation that President Bush signed a secret order in July authorizing the use of American ground troops in Pakistan.

  In Afghanistan itself, the US and its NATO allies have stepped up their attacks on military and civilian targets in an attempt to stem a widening war of resistance against foreign occupation. An overnight airstrike by US-led coalition forces in Khost Province in eastern Afghanistan killed nine Afghan soldiers, in an apparent "friendly fire" incident. The civilian toll from US air strikes has risen sharply in recent months, including an attack on an alleged Taliban compound last August that killed more than 90 civilians, a majority of them women and children.

  Human Rights Watch reports that American and NATO air strikes have killed some 500 Afghan civilians over the past five years, very likely a serious underestimation of the actual toll. As the New York Times reported on Thursday, "The latest air strike came as fighting in Afghanistan reached its highest level since late 2001," i.e., in the first months of the US invasion.

  The deteriorating US military and political situation in Afghanistan has become a focus of the presidential election, with Democratic front-runner Barack Obama taking the lead in pledging a major escalation of the US intervention. In a campaign speech in Virginia on Wednesday, Obama said he would order a surge of US troops, perhaps 15,000 or more, as soon as he gained the White House. "It's time to heed the call ... for more troops," he declared. "That's why I'd send at least two or three additional brigades to Afghanistan."

  Obama has brushed off as a "rhetorical flourish" statements made at a Seattle fundraising event by his running mate, Senator Joseph Biden, that within six months of Obama's inauguration, the new president would respond to a major foreign policy crisis by taking "incredibly tough" and unpopular decisions. Biden cited five possible flashpoints—the Middle East, Afghanistan, Pakistan, North Korea and Russia.

  That Biden's chilling remarks were no mere "rhetorical flourish" is substantiated by a lengthy article published in Thursday's New York Times by the newspaper's White House correspondent, David E. Sanger. Discussing the foreign policy positions advanced by Obama and his Republican opponent, Senator John McCain, Sanger points to key areas where Obama has articulated an even more aggressive posture than McCain.

  On Iran, for example, the McCain campaign has suggested that it would be willing to accept a deal that allowed Iran to produce uranium on its territory, while the Obama campaign told the newspaper that an Obama White House "would not allow Iran to produce uranium on Iranian soil, the same hard-line view enunciated by the Bush administration."

  Sanger notes that Obama has declared that "we will never take military options off the table" and that he would not give the United Nations "veto power" over a decision to hit Iranian nuclear facilities. Sanger goes on to say that US intelligence officials claim the "threshold" for a possible military strike—the point where Iran produces sufficient nuclear material to build a weapon—"may be crossed fairly early in the next presidential term."

  Obama has also suggested that the US should impose a blockade on Iranian imports of gasoline and refined petroleum products. Noting that the Bush administration has stopped short of proposing such a move, he writes, "A blockade, however, could constitute an act of war..."

  On Pakistan, Sanger writes, "it is Mr. Obama who has been far more willing than Mr. McCain to threaten sending in American troops."

  Obama, no less than McCain, speaks as a representative of the American ruling class, which will determine the foreign and military policy of the United States in accordance with what it perceives to be its global economic and strategic interests.

  The economic crisis, global in scope but centered in the decline of the world economic position of American imperialism, will inevitably drive that policy in an even more aggressive and belligerent direction, regardless of which capitalist party occupies the White House. The economic crisis injects into world affairs an ever-greater element of tension and conflict between rival imperialist and capitalist nations.

  Even more so than in the previous decade, the United States will seek, under conditions of financial turmoil and economic slump, to offset its economic decline by military means. It is necessary to learn the lessons of history. The last great world economic crisis—the Depression of the 1930s—set off escalating military conflicts that culminated in the holocaust of World War II.

  The 2008 elections, unfolding under conditions of deepening recession and escalating military violence, demonstrate the immense dangers posed by political illusions in Obama and the Democratic Party. Once again, the enormous anti-war sentiment of the American people has been preempted by being channeled behind the Democratic wing of American imperialism.

  Should Obama win the election, as appears increasingly likely, the struggle against militarism and war will be waged against his administration

  • Tags:
  • WAR IS GOD FOR USA ?
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• Date / Time: 10/31/2008 7:26 PM UTC

  US Federal Reserve cuts interest rates as recession deepens

  The Federal Reserve yesterday cut its benchmark federal funds interest rate by a half a percentage point to 1 percent. The rate reduction is the Fed's second this month and brings the official interest rate down to a record low first reached in 2003 and 2004.

  The volatile US share markets recovered some ground in anticipation of the rate cut, with the Dow Jones index closing 10.9 percent higher on Tuesday. But yesterday the Dow declined in late trading, falling 0.82 percent.

  New economic data released in the last two days provide further evidence that the US economy has entered a severe recession.

  The Conference Board released consumer confidence figures on Tuesday showing that its index plunged to 38.0, the lowest mark recorded since data was first kept in 1967. Consumer confidence was down from the 61.4 index rating in September, and considerably lower than what most analysts had anticipated. John Ryding at RDQ Economics described the October figures as "a shockingly weak reading."

  Also released Tuesday was the S&P Case-Shiller index on housing prices, which found that house prices across 20 surveyed cities fell by 16.6 percent in August compared with the same period in 2007. Houses in Las Vegas, Phoenix, Miami and San Francisco suffered the biggest declines of 25-30 percent. Goldman Sachs' economists predicted that house prices will fall further by an average of 15 percent nationally.

  A Wall Street Journal article yesterday stated: "The current downturn is shaping up to be worse than the recessions of 1990-91 and 2001 and the prolonged downturn that ended in 1982. Banks are cutting back on lending, consumers are spending less, companies are shedding jobs amid sinking profits, and the housing bust that triggered the slide persists."

  One indicator of the rising social distress being felt by broad layers of the population is the escalating credit card default rate. According to the New York Times, lenders wrote off $21 billion in bad credit card loans in the first six months this year. Analysts estimate another $55 billion could be lost in the next 18 months.

  Credit card companies have responded by targeting the victims of the recession. The Times reported: "Lenders are shunning consumers already in debt and cutting credit limits for existing cardholders, especially those who live in areas ravaged by the housing crisis or who work in troubled industries. In some cases, lenders are even reining in credit lines after monitoring cardholders who shop at the same stores as other risky borrowers or who have mortgages from certain companies."

  Mass layoffs are being announced every day. Appliance maker Whirlpool announced yesterday it would increase layoffs from the previously announced 2,000 to 5,000 by the end of 2009. The sackings, which will affect 7 percent of the company's total workforce, are driven by slowing sales as consumers delay replacing malfunctioning appliances. Whirlpool has cut production by 10 percent in the third quarter this year and will reduce output by a further 20 percent in the US and Europe in the fourth quarter by shutting plants.

  Other recently announced layoffs include: telephone company Qwest Communications, which is to cut 1,200 jobs; publishing giant Time Inc., which plans to dismiss 6 percent of its workforce; Doubleday Publishing, which has cut 10 percent of its staff; and newspaper publisher Gannett, which is also slashing 10 percent of its staff, on top of a 3 percent cut, affecting 1,000 workers, announced in August.

  Workers in auto-related industries remain among the hardest hit. Michelin's BFGoodrich is laying off up to 40 percent of its workforce at a tire plant in Woodburn, Indiana for at least eight weeks in response to lower demand from auto makers and customers. Similar cuts are reportedly planned at two other BFGoodrich plants in Alabama, affecting a total of 1,500 workers across the three factories.

  Tenneco, which produces auto emission and ride control systems, announced on Wednesday that it was cutting 1,100 jobs and closing five plants. About 500 salaried workers will be laid off and 600 hourly positions eliminated. The plant closures include one in Milan, Ohio, another in Evansville, Indiana and an engineering operation centre in Australia.

  North American auto sales fell by 15.5 percent in the third quarter on an annualized basis. General Motors' sales declined by 18.9 percent in North America over the same period, and 11.4 percent globally. The former industrial giant continues to lose hundreds of millions of dollars each month. On Monday, ratings agency Moody's downgraded GM's credit rating further into "junk" status. It is now just three rungs above the lowest possible rating.

  GM and Chrysler have reportedly resolved outstanding issues in their merger negotiations and are now seeking the necessary financing from the federal government. GM's chief executive Rick Wagoner has met with officials in Washington to lobby for a handover of public funds, modeled on the Bush administration's bailout of the financial sector.

  Reuters cited sources who said GM was seeking $10 billion, while the Treasury Department was reportedly considering $5 billion. According to the news agency, a bailout "could include capital injections and government purchases of bad auto loans." The Wall Street Journal said on Monday that the public money may be channeled through the Energy Department, by diverting a portion of the $25 billion in low-interest loans approved last month for the auto industry to build more efficient vehicles.

  A publicly-assisted financing operation for a GM-Chrysler merger would have a devastating social impact. The top executives responsible for running their companies into the ground will no doubt either retain their lucrative salary packages or be offered multi-million-dollar "golden handshakes" on their way out. Auto workers, on the other hand, will be asked to make even greater sacrifices and swallow further attacks on their jobs, wages, and conditions.

  An article in yesterday's Guardian gave some indication of the potential effect of a merger between the US auto giants: "The manufacturers employ 355,000 people directly but support an estimated 4.5 million further jobs in industries from steel to plastics, electronics and computer chips. The non-profit Centre for Automotive Research in Michigan has estimated that a failure of Ford or GM could take a toll of 2 percent on the gross domestic product and would jeopardize as many as 2 million jobs."

  The economic crisis is seeing merger proposals across a number of sectors. In the airline industry, Delta Air Lines and Northwest this week received Department of Justice approval for their planned union, which will create the world's largest airline company. Thousands more jobs will inevitably be lost in the sector as a result.

  The rapidity of the economic downturn has alarmed a number of economists who are now warning of a potential deflationary crisis. The Wall Street Journal cited the comments of former Federal Reserve governor Laurence Meyer: "The expected rise in the unemployment rate, paired with the rising threat of deflation, presents a risk that the [Fed] will have to ease even further, perhaps all the way to a zero federal funds rate."

  In yesterday's Financial Times, senior columnist Martin Wolf wrote: "[T]he idea that a quick recession would purge the world of past excesses is ludicrous. The danger is, instead, of a slump, as a mountain of private debt—in the US, equal to three times GDP—topples over into mass bankruptcy ... Globalisation would spread the catastrophe everywhere. Many of the victims would be innocent of past excesses, while many of the most guilty would retain their ill-gotten gains. This would be a recipe not for a revival of 19th-century laissez faire, but for xenophobia, nationalism and revolution."

  This extraordinary statement underscores just how conscious sections of the ruling elite are of the likelihood that a prolonged world economic crisis will trigger major social and political upheavals.

  • Tags:
  • USA cuts rates ? ma
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• Date / Time: 10/31/2008 7:23 PM UTC

  GDP, consumer spending contract as US plunges into recession

  By Patrick O’Connor
  31 October 2008

  Gross domestic product (GDP) figures released yesterday by the Commerce Department show that the US economy shrank by 0.3 percent on an annualised basis in the three months from July to September. With economists expecting even poorer GDP figures for the fourth quarter, the latest data confirms that the economy has now entered into severe recession.

  Negative GDP growth for the third quarter was driven by a 3.1 percent decline in consumer spending, the first such contraction since 1991 and the largest fall recorded since 1980.

  Consumer spending, partly fuelled by personal debt, has accounted for more than two-thirds of all economic activity in the last period. But mounting layoffs, home foreclosures, credit card defaults, the rising cost of living and the declining value of retirement savings have had a devastating impact on broad layers of the population. The Commerce Department reported an extraordinary 8.7 percent third quarter decline in disposable personal income—that is, income after taxes and adjusted for inflation. This is the largest fall ever recorded since figures were first kept in 1947.

  Disposable income in the second quarter had increased by 11.9 percent on an annualised basis due to tax rebates from the Bush administration's emergency economic stimulus package.

  Unsurprisingly, spending has declined together with incomes. In the three months up to October, purchases of non-durable goods—smaller purchases such as food and clothing items—plunged by 6.4 percent, the biggest decline since 1950. Spending on durable goods, such as cars and furniture, declined by 14.1 percent.

  Housing investment plunged 19.1 percent on an annualised basis. Also recorded in the GDP data was a decline of 1 percent in "real non-residential fixed investment," that is, business investment in capital items including machinery, vehicles, and computers. The New York Times described this as "a worrying sign of a new, potentially pernicious phase of the downturn."

  The third quarter 0.3 percent GDP decline was not as severe as had been anticipated. Stock markets lifted marginally yesterday, with the Dow Jones closing 2.1 percent higher. Goldman Sachs economists, however, warned their clients that the GDP report was "weaker than implied by the initial market reaction."

  The data would have been significantly worse had it not been for a narrower trade deficit caused by continuing export growth to Europe and Asia. This growth has since ceased and exports are in decline as the world economy follows the American into steep recession. Also preventing a sharper drop in third quarter GDP was federal government spending and investment, which was up 13.8 percent on an annualised basis, largely due to an 18.1 percent rise in military expenditure.

  The Wall Street Journal noted that the latest data indicated that the economy probably entered into recession "before the mid-September credit freeze," and that fourth quarter GDP growth could be as low as negative 4 percent.

  "The economy has taken a turn for the worse, big time," Allen Sinai, chief global economist for Decision Economics, told the New York Times. "Consumption literally caved in. It is a prelude to much worse news on the economy over the next couple of quarters. The fundamentals around the consumer are all negative, and there are no signs of any help anytime soon, from anywhere."

  Paul Ashworth, of London-based Capital Economics Ltd, told Reuters he expects the US economy to shrink by 1.5 percent in 2009 and remain stagnant in 2010. "Overall, we expect the level of GDP to shrink by a total of 2.5 percent, which would make this one of the worst recessions since the Great Depression," he said.

  Labor Department data showed 479,000 new jobless claims in the week ending October 25, steady from the week before. Economists generally regard a figure above 400,000 as an indicator of recession. Reuters added: "Analysts estimated so-called continued claims would be 3.74 million. It was the 27th straight week that claims were above three million in a sign that the ailing economy is making it harder for US workers to find employment."

  An estimated 760,000 jobs have been slashed this year, and the rate of layoffs is accelerating.

  Yesterday saw the following job cuts and corporate earnings announcements:

  * Credit card giant American Express is to lay off nearly 10 percent of its workforce, or 7,000 workers, as part of a restructuring plan aimed at reducing costs by $1.8 billion by the end of 2009.

  * Electronics and phone company Motorola reported a $397 million loss for the third quarter, largely due to falling mobile phone sales. It plans to sack an additional 3,000 staff.

  * Computer gaming company Electronic Arts will cut 6 percent of its workforce amid falling retail sales that delivered a net loss of $310 million for the quarter.

  * Photographics company Eastman Kodak released lower than expected quarterly profit figures and said it would eliminate an unspecified number of jobs in coming months.

  * Broadcaster CBS recorded a $12.6 billion quarterly loss after it wrote down the value of its media assets by $14 billion.

  * Paper and packaging company International Paper reported a 31 percent quarterly profit decline compared to 2007. The company laid off workers and closed plants earlier this year in Georgia, California, Ohio and Oregon, but warned that falling demand "could mean more capacity cuts."

  Job losses continue to mount in the devastated auto industry. Three Michigan-based auto suppliers made layoff announcements yesterday:

  * Visteon Corp., a Ford auto-parts spin-off, said yesterday it suffered a $188 million net quarterly loss. The company cut about 2,000 hourly and salaried jobs in the last three months, and plans to cut its salaried workforce by a further 800.

  * TRW Automotive Holdings Corp. posted a third-quarter loss of $54 million. CEO John Plant said the company would continue to "right size" its workforce. About 1,000 salaried positions are being cut, with the majority to take effect by the end of this week.

  * Citing "recessionary conditions in North America and increasing weakness in Europe," Lear Corp. reported a $98 million quarterly loss. The company said it aims to save $150 million over the next year through layoffs, but has not yet announced the number of jobs to be cut.

  Layoffs in the auto sector are set to massively escalate in the aftermath of a potential government-funded merger between General Motors and Chrysler.

  Kimberly Rodriguez of the accounting firm Grant Thornton LLP told the Wall Street Journal she expects such a merger to result in between 30,000 to 40,000 Chrysler job losses, with another 50,000 auto suppliers' jobs affected. The auto analyst predicted that 7 of Chrysler's 14 auto assembly plants would close and 19 of the company's 26 car models would be eliminated.

  If the merger deal failed to go through, Rodriguez said, Chrysler could collapse, in turn leading to bankruptcies of auto suppliers upon which GM and Ford also depend. "What you would have is a shutdown of the auto industry," she concluded.

  • Tags:
  • deepression in USA a
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• Original Air Date: 10/31/2008 6:30 AM UTC

  RELIGION CONTINUES 2

  30 MINUTES OPEN LINES FOR ALL...
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  • Tags:
  • RELIGION
  • ISLAMO FASHISM
  • IRAN WAR
  • CATOLICK
  • PROTESTANT
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• Original Air Date: 10/31/2008 4:00 AM UTC

  WHY RELIGION CAUSES DISUNITY AND WARS ?IF RELIGION TEACHES KILL IS NOT RELIGION?

  WHY STILL TODAY WE HAVE MANY RELIGIONS THAT ARE DIVIDED AND ALSO AGAINST EACH OTHERS, MORMON, PROTESTANT,CATOLIC , ISLAM RELIGION, WHO ORDERS JIHAD AGAINST USA?RADICAL ISLAM , WE WILL PLAY CLIPS OF THIRD JIHAD IN USA CANADA. HOME GROWN TERRORISM,HOW YOU CAN HELP US YOUR COUNTRY BY IDENTIFY THEM.WE DON'T LET SHARIA LAW IN USA? IF THEY THINK GETAWAY WITH MURDER WE WILL NOT LET THEM . LIKE DANISH WANTS TOO ROUND UP ALL MUSLIMS AND THEY WILL DECIDE WHO STAYS WHOM WILL DEPORTED TO THEIR COUNTRY OF ORIGIN? THEY ARE MAD AS HELL I DO NOT BLAME WHY DANISH WANTS THE DEPORTED THEM?HTTP://WWW.EUROPENEWS.DK ALSO WE PLAY CLIPS MOVIE RIGHT AT YOUR DOOR ? TELEPHONES ARE WELCOME WHEN WE OPEN TELEPHONE LINES..?THANKS A LOT.JESUS CAMP HAVE YOU SEEN IT ?
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  • Tags:
  • PROTESTANT
  • MORMANISM
  • RADICAL ISLAM IS SATANIC AS WELL
  • NO TO SHARIA LAW OF ISLAMO FASCISM
  • THIRD JIHAD IN US AND CANADA IS COMING ?
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• Date / Time: 10/31/2008 3:26 AM UTC

  Erica Jong Tells Italians Obama Loss 'Will Spark the Second American Civil War. Blood Will Run in th

  It seems that the final days of the presidential campaign have made Erica Jong and her friends more than a little anxious.

  A few days ago, Jong, the author and self-described feminist, gave an interview to the Italian daily Corriere della Sera, the choicest bits of which were brought to my attention by the reliably sharp-eyed Christian Rocca, the U.S. correspondent of Il Foglio, who published excerpts on his Camillo blog. Basically, Jong says her fear that Obama might lose the election has developed into an "obsession. A paralyzing terror. An anxious fever that keeps you awake at night." She also says that her friends Jane Fonda and Naomi Wolf are extremely worried that Obama will be sabotaged by Republican dirty tricks, and that if an Obama loss indeed comes to pass, the result will be a second American Civil War.

  Here's a translation of Jong's more spirited quotes to the Milan-based Corriere, as selected by Rocca.

  "The record shows that voting machines in America are rigged."

   

  "My friends Ken Follett and Susan Cheever are extremely worried. Naomi Wolf calls me every day. Yesterday, Jane Fonda sent me an email to tell me that she cried all night and can't cure her ailing back for all the stress that has reduces her to a bundle of nerves."

  "My back is also suffering from spasms, so much so that I had to see an acupuncturist and get prescriptions for Valium."

  "After having stolen the last two elections, the Republican Mafia…"

  "If Obama loses it will spark the second American Civil War. Blood will run in the streets, believe me. And it's not a coincidence that President Bush recalled soldiers from Iraq for Dick Cheney to lead against American citizens in the streets."

  "Bush has transformed America into a police state, from torture to the imprisonment of reporters, to the Patriot Act."

  She also laments that not all of America's men of letters share her devotion to Obama.

   

  "Tom Wolfe and John Updike are men of the right and Philip Roth is at this point a hermit who leads a monastic life in Connecticut, far from everything and everybody."

  Luckily, she said there is her and Michael Chabon, who, she says, have "taken the place of Susan Sontag and Norman Mailer respectively."

  They have the same political sensibilities, she said, but a better "sense of humor."

  • Tags:
  • obama loos
  • mass riots in street
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• Original Air Date: 10/30/2008 4:00 AM UTC

  ELECTIONES WHAT DO YOU THINK ? WILL WE HAVE ELECTIONES?WHY ILLEGAL ALIENS ARE VOTING ?

  ELECTION IS JUST ANOTHER WAY TO DOPE ALL OF US DO YOU THINK ELECTION IS FAIRLY DONE OR FRAUD IS INCLUDED?WHY THEN WE VOTE,FOR OBAMA OR MCCAIN?NON OF THEM CARE FOR ME AND YOU ...?DO THEY SEE MY BLOGS FOR NEWS AND INFO YOU NEVER FIND?WHY VOTING FOR ? DO WE HAVE DEMOCRACY?OR DICTATORSHIP? MASSIVE FORECLOSURE NEWS FROM CALIFORNIA?ARIZONA AND ALL STATES?LETS CHAT AND GET TO BOTTOM OF ISSUES THAT MATTERS TO YOU?PLEASE RATE MY SHOW AND CALL AS WELL, I LOVE HEAR FROM YOU and CALL MY SHOW AT 9PM PACIFIC TILL 11PM PACIFIC TIME. 13478849191 PRESS 1 OR #1 SO I CAN ABLE SEE YOU I LOVE TALK TO YOU ALL. I APPRECIATE ALL OF YOU PLEASE RATE MY SHOW AS WELL IF IS POSSIBLE.TRUTH WILL SET US ALL FREE . TRUTH IS OUT THERE.WE NEVER FORGET IT.?FAITH OF ELECTION IS DECIDE BY ILLEGALS ALIENS BECAUSE THEY HAVE RED CARPETS? OUR BELOVED COUNTRY IS GOING THROUGH A LOT OF HARD TIMES KEY IS UNITY IF WE UNITE THEY CAN NOT BRING TO US ANYTHING ELSE? REMEMBER BOYCOTT ELECTION SHOWS OUR UNITY, AND LIKE GANDHI THAT BROUGHT UK TO ITS KNEES? UNLESS THEY DOPE YOU THEN YOU VOTE?IF VOTING ON NOV 4 IS TREASON AGAINST PEOPLES REPUBLIC OF USA. BOYCOTT VOTING NOW LET STREETS BE EMPTY,UNITED WE STAND, DIVIDED WE ALL FALL? UP TO YOU NOW DECIDE?I AM TELING YOU IT LIKE IT IS ?YOU LIKE IT OR NOT ?
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  • Tags:
  • ELECTION MASSIVE FRAUD UNDER WAY
  • TROJAN HORSES WILL DECIDE WHOM WILL ELECT
  • DIE BOLD CAN MAKE BETTER MACHINE
  • DENMARK CANCELED ELECTRONIC VOTING?WHY?
  • WILL BUSH BE OUR MASTER FOR EVER?
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