Zambia Deserved Their Success At Afcon Finals

I take this opportunity to congratulate Zambia on their winning the African Nations Cup in dramatic fashion last weekend.

This is an achievement that we in Tanzania should also be proud of given that Zambia is one of our neighbours and a former member of the Council of East and Central African Football Associations (Cecafa). In fact, this is the first time a neighbouring country has won Africa’s biggest soccer prize. It was also a breath of fresh air into the competition hitherto dominated by north and west African countries.

This is also a lesson for our soccer administrators. Zambia’s success is the result of sacrifices and painstaking efforts to raise the profile of the game in the southern African country. Having visited Zambia in 2010, I was not surprised at all by the Copper Bullets’ triumph in the African Nations Cup final in which they defeated highly fancied Cote d’Ivoire – Didier Drogba and all – 8-7 in a penalty shootout.

Soccer administration is taken very seriously in Zambia. I was lucky enough to visit the imposing four-storey headquarters of the Football Association of Zambia, aptly named Football House, in Lusaka’s leafy and quiet suburb of Long Acres.

The moment you enter the building you come to the conclusion that FAZ is indeed serious in its endeavour to take Zambian soccer to new heights. The FAZ building is a far cry from the nondescript headquarters of the Tanzania Football Federation (TFF) at Karume Stadium in Dar es Salaam. Interestingly, FAZ built its headquarters with Fifa subsidy, which was also made available to TFF.

Unfortunately, while others are going out of their way to make their presence on the international stage felt, we in Tanzania are still viewing soccer administration, particularly at the national level, as a shortcut to wealth.

Whenever people are elected into top soccer administrative positions in Tanzania, it becomes a race against time to enrich themselves at the expense of the game. As long as this continues, qualifying for the African Nations Cup finals, let alone winning the tournament, will remain a pipe dream for Tanzania.

H.S. Karama,

Dar es Salaam.

Article source: http://allafrica.com/stories/201202160808.html

StatPro Revolution sees growth in Private Wealth and Registered Investment …

Private wealth managers and Registered Investment Advisors (RIAs) tout increased AUM growth, stronger internal operations and lower total cost of ownership as a result of adopting the cloud based portfolio analytics platform.

StatPro Inc. (AIM: SOG), a leading global provider of portfolio analytics and data valuation solutions, has seen increased demand for StatPro Revolution from private wealth managers and RIAs. The company reported that the two market segments together account for over 60% of StatPro Revolution’s client base in North America.

StatPro Revolution is a cloud based portfolio analytics and reporting platform that enables money managers always-on access to the granular drivers affecting their clients’ portfolio performance. In addition to incorporating institutional grade portfolio analytics, the platform also provides money managers with the means to distribute reports internally and externally, making communication with clients, prospects and employees easier than ever. Private wealth managers and RIAs have benefitted from the wealth of functionality, specifically access to risk metrics like portfolio stress-testing and Value at Risk calculations that the platform provides.

StatPro Revolution client, PlanStrong Investments, recently cited 15% growth in AUM over a 3 month period as a result of using StatPro Revolution to help sell their service. “With StatPro Revolution, our prospective clients have an easy to digest visual ‘test-drive’ of our investment solutions and strategies. The reports include vital information about distributions, re-investments and accurately calculate several metrics over a custom timeframe,” quotes Sr. Investment Analyst, Alex Bender.

“Using StatPro Revolution has profoundly changed the way that I’m able to run my business,” says Robert Regan, Jr. Managing Principal of Regan Investments, a Minnesota based RIA. “I think the convenience of having all of the data at our fingertips from anywhere in the world is a huge reassurance for us. I can be anywhere and have the ability to look at our clients’ portfolio performance and provide updates based on their request. I no longer have to spend hours computing Sharpe and Sortino ratios. The operational savings is an enormous bonus of the technology.”

The heightened market volatility since 2008 has had a tremendous impact on the investor/money manager relationship. Not only are money managers looking for investment vehicles that will generate positive returns for their clients but also access to the analytic tools that will provide them with the ability to assess the probability of future losses.

“Analytical and reporting tools play a vital role in the success of private wealth managers and RIAs,” says Andrew Peddar, CEO of StatPro North America. “StatPro Revolution fills a huge hole in the market for the type of analytics (like risk, attribution, contribution and stress testing) that were once prohibitively expensive. Our clients have learned quickly how to leverage the information that our product provides and distribute it to their advantage. We look forward to serving these markets with continuous innovation and at an affordable price.”

In order to fuel continued growth in the RIA market, StatPro will announce a new pricing structure for RIAs in the next few weeks. The product is currently available for $100 per portfolio/month.

Article source: http://www.bobsguide.com/guide/news/2012/Feb/16/statpro-revolution-sees-growth-in-private-wealth-and-registered-investment-advisor-markets.html

Jimmy Carter hails Occupy success

2012-02-16 12:02




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Atlanta – Former President Jimmy Carter said on Wednesday that Occupy organisers have created a “relatively successful” movement because they focused national discussion on wealth disparity despite lacking leadership and a unifying set of goals.

The Georgia Democrat said at an event in Atlanta that Occupy organisers have succeeded in forcing the media and Congress to realise the “chasm is getting greater than leaps and bounds” between the rich and the poor.

“It’s been relatively successful even acknowledging there’s no leadership, there’s no coherence and there’s no single list of issues they want to succeed,” the former president said of the movement started late last year in lower New York City to decry corporate influence in government and wealth inequality.

“That issue was basically ignored by the Congress and the news media a year ago,” he said. “I believe they’ve achieved putting that back on the agenda.”

The remarks came at a Duke University event that also featured his oldest grandson, Jason, who was elected to the Georgia Senate in May 2010.

The former president said his travels abroad since he lost the 1980 election helped him realise the US is “extra stingy” about sharing its wealth with developing nations, particularly when compared to European democracies that put an emphasis on foreign aid.

Effortless Zulu

Helping the less fortunate, he said, should be viewed as a moral obligation and not an act of charity.

“It dawned on me they were just as intelligent, they were just as ambitious, and their family values were just as good as mine,” he said. “It’s not a matter of superiority or generosity or handing out gifts to others who are less than you. They just haven’t had a chance in life.”

Jason Carter, who displayed the effortless Zulu he learned while working in rural South Africa for the Peace Corps, said his experience overseas helped shape his world view.

He suggested that those who talk about liberty purely as a financial issue have lost sight about what it means to respect human rights.

“We talk about freedom at the Georgia Legislature as a half a point in your income tax,” he said.

Article source: http://www.news24.com/World/News/Jimmy-Carter-hails-Occupy-success-20120216

Ex-NXIVM aide takes NXIVM to federal court

ALBANY -— NXIVM punishes whistleblowers and outspoken former associates by illegally using lawyers and litigation in conspiracies that violate civil rights, a new suit filed last week by one-time NXIVM business consultant Joseph J. O’Hara alleges.

O’Hara claims in a U.S. District Court case filed Feb. 9 in Albany that his constitutional rights have been repeatedly violated by NXIVM in a legal barrage fueled in part by $150 million in funds expended by the wealthy Bronfman sisters to finance NXIVM-related people and businesses. The suit names, among others, NXIVM’s leaders Keith Raniere and Nancy Salzman; its legal liaison, Kristin Keeffe; its two major boosters Clare and Sara Bronfman; and a host of lawyers who have worked with the self-improvement business based in Colonie, or its followers, over the years.

O’Hara, a 63-year-old Colonie attorney used by NXIVM as a consultant from October 2003 until he quit in January 2005, said he was the target of a conspiracy to hurt him, violating his right to privacy — through retaliatory strikes because he had become a whistleblower to federal and state agencies. The illegal acts he alleges include a conspiracy among defendants to have criminal charges brought against him in various jurisdictions. Those attempts, as well as several “baseless lawsuits” and other actions O’Hara said were an abuse of the legal system, cost him time and money. He seeks more than $10 million from the group. His suit is unusual as he accuses lawyers of doing more than advising and coaching clients, but of possibly assisting in unlawful acts, including conspiracy.

He makes allegations about NXIVM’s tax practices: “Based upon information and belief, the NXIVM/ESP-related business entities also do not issue W-2 Forms and/or 1099 Forms with respect to the various commissions and salaries that they pay to their respective staff — and/or with respect to the various nonbusiness related expenditures that they make on behalf of Raniere/Vanguard.”

Among the 15 lawyers sued are Stephen Coffey and Pamela Nichols of O’Connell and Aronowitz in Albany; John Bartolomei of Niagara Falls; and Scott Harshbarger of the Proskauer Rose law firm. Albany County District Attorney David Soares and Albany County are also sued for allegedly allowing Keeffe to set up as a legal intern to develop a criminal case against O’Hara.

None of the lawyers or representatives of defendants had a comment on the litigation, although Bartolomei said he thought the Bronfmans, his clients, were well-meaning. “Clare said she was given wealth in order to do good in the world with it,” Bartolomei recalled.

O’Hara said defendants may not have been served yet as that is being done by the U.S. Marshall’s Service. He noted in his filing that he may amend his action to include civil claims under the Racketeer Influence and Corrupt Organization (RICO) Act because he believes NXIVM engaged in a “criminal enterprise.” In his court complaint, he alleges that NXIVM is operated as a Ponzi scheme. He also alleges Keeffe obtained evidence about him gathered by Soares’ office or a grand jury and furnished it to Proskauer Rose, which inserted it in a suit against him.

O’Hara said Raniere, also known as Vanguard, “masterminded” the acts that were coordinated by Keeffe and funded by the Bronfman sisters. He claimed acts of consipiracy against him include illegal copying of confidential material from Soares’ office, hiring of private investigators to gather confidential material, illegal surveillance, illegally obtaining text messages and telephone conversations and spray-painting of the words “you will die in 7 days” at a New Baltimore construction site owned by O’Hara. Others facing similar harassment through litigation, O’Hara said, are former Raniere associates Barbara J. Bouchey; Toni F. Natalie; Frank Parlato Jr. and Yuri Plyam as well as cult-tracker Rick Ross.

jodato@timesunion.com518-454-5083@JamesMOdato

Article source: http://www.timesunion.com/local/article/Ex-NXIVM-aide-takes-NXIVM-to-federal-court-3334303.php

What Would Clint Eastwood Do?

The Barack Obama budget document just released is not a budget. It is a work of literature. It is Barack Obama’s published apologia for a second presidential term, in which—as the budget and its tax proposals make clear—he will reset the historic balance in America between the public sector and the private sector. This reset will require large wealth transfers—from individuals and companies to the government, and from the government back to the people.

The Obama budget is described everywhere as a “political document,” but it is more than that. Mr. Obama hasn’t assembled these ideas just to get elected. This budget is a statement of belief. It is a road map of where he wants the country to go.

This being so, it behooves us to revisit the most controversial political event of the past two weeks—Clint Eastwood’s Super Bowl commercial for the Chrysler car company.

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This ad was widely viewed as an argument for a second Obama term. It is undoubtedly true that the pro-Obama admen who created the commercial embedded a pro-Obama spin. Asked about this afterward, Clint Eastwood said simply: “I certainly am not politically affiliated with Mr. Obama.”

No sensible person would try to disagree. When The Man With No Name looks at you dead on, as he did Super Bowl Sunday, and says it’s halftime in America and the country will come roaring back, you know the man speaking those words wasn’t talking about his embrace of the vision in Barack Obama’s 2013 budget.

In terms of the nation’s animating ethos, these two American icons could not be further apart. Clint Eastwood was talking about an America heading back up—”roaring” forward in the unpredictable, astonishing way it has since at least the days of the Wild West. The Obama budget is about an America whose path will be guided by the government far into the future. He is announcing that in his second term, the days of the private Wild West in America will come to a close.

There is no better way to discover this intent than in the president’s tax proposals. Taxes are a nation’s Rorschach test. In taxes you discover how a nation wants to be known to others. The burden of taxation may say that a nation more than anything wants to produce (say, Malaysia), or taxes may say that what a nation most wants is to be thought of as fair (Belgium).

What Mr. Obama wants, with the symbolic billionaire Warren Buffett propped at his side, is a wealth tax that redefines the U.S.

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Regarding the nation’s purpose, Clint Eastwood and Barack Obama couldn’t be further apart.

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Mr. Obama wants to enact the Buffett Rule to ensure that every “millionaire” pays at least a 30% federal tax on some definition of income. He would raise taxes on married couples making $250,000. The tax on capital gains would rise to 30% from 15%, and he would return the estate tax to 45%.

No more certain sign exists that a nation has chosen to step off its historic upward path than the creation of wealth taxes. A nation imposes a wealth tax when it wakes up one day to conclude that it has become embarrassed, rather than proud of, its wealth, which is to say, its national success.

We are not talking here about the vast wealth that closed, crony economies direct toward a small plutocracy and no one else, though this rigged scam seems to be Barack Obama’s understanding of the modern American economy. The reality is that since its inception the U.S. has been an open, free economy that let wealth, including vast wealth, flow to dreamers, geeks and college dropouts whose unpredictable success multiplied into greater wealth for others.

Henry Ford’s automated car-assembly line spawned a galaxy of parts factories filled with workers. Apple’s little machines brought forth a universe of devices and applications.

The timing of such productive explosions is mysterious. The Obama wealth tax will smother and stifle this mysterious force.

France has the world’s most famous wealth tax. They call it “the solidarity tax,” which is the Gallic equivalent of the Obama “fair share.”

Today France is famous for the flight of its productive citizens to other countries. Spain abolished its wealth tax, but then-Prime Minister José Luis Rodriguez Zapatero, a Socialist, re-imposed it last September. What these countries, and much of Europe, have in common are high rates of youth unemployment.

Youth unemployment is the disturbing symptom of an economy no longer dynamic or “young” in the sense of creating new wealth to replace old wealth. The United States lately has also developed relatively high youth unemployment, which suggests the problem here isn’t fairness, but fatigue.

The Obama budget says one reason for its wealth taxes is to provide sufficient revenue to protect “the investments we need to grow the economy and create jobs.” He does the investing, and the economy grows.

The Obama budget is about national attitude. Before this presidency, the national attitude was indeed caught in the snarling, disgusted, refuse-to-lose tone of Clint Eastwood’s voice in that commercial. The new national attitude on offer is caught in the Obama voice: resentful, moody, looking for someone else to blame and then punish.

An American wealth tax will make us wimpy and whiny. That won’t be halftime. It will be the final whistle.

Write to henninger@wsj.com

Article source: http://online.wsj.com/article/SB10001424052970204792404577225392574755610.html

HAWAII’S BUSINESS LEADERS AT THE 5th ANNUAL HAWAII WEALTH SUMMIT

The Hawaii Wealth Summit is focused on sharing and networking – Stedman Graham and his fellow presenters will be revealing never before shared information on networking, powerful partnerships, marketing, and business growth.

FOR IMMEDIATE RELEASE

Honolulu, Hawaii, February 17, 2012 – Business leaders from across the state will be at the Hilton Hawaiian Village February 17, 18, and 19 (Bonus VIP ONLY day February 16) for the 5th Annual Hawaii Wealth Summit. There, they will be introduced to some of the world’s most successful people, including one of the most experienced, qualified, and successful business and real estate minds on the planet—Stedman Graham, CEO of S. Graham Associates in Chicago, bestselling author and Oprah Winfrey’s significant other. Attendees will be in for 3 days of mind-expanding training and once-in-a-lifetime networking.

In today’s faulting economy, business leaders need an edge to not just survive, but thrive. Connecting with the right people is that edge. Entrepreneurs’ businesses have been known to grow at accelerating speeds when surrounded by the right people, in the right environment. At the Hawaii Wealth Summit, business leaders will be put in the position to connect with key players who may change their businesses forever.

Networking with the faculty and other business leaders will help the attendees to break through barriers, open doors, and fill their phone book with the names of people they need to accomplish their goals just by picking-up the phone.

HIGHLIGHTS:

• Transform your business and life forever.
• Connect and partner with some of the world’s most influential people, power brokers, and business builders.
• Featuring Stedman Graham, author of ten books, including two New York Times best-sellers, You Can Make It Happen: A Nine-Step Plan for Success and Teens Can Make It Happen: Nine Steps to Success.

• Three days of mind-expanding training and once-in-a-lifetime networking.
The Hawaii Wealth Summit is focused on sharing and networking – Stedman Graham and his fellow presenters will be revealing never before shared information on networking, powerful partnerships, marketing, and business growth. Attendees will create lasting, lifelong relationships and learn information that will transform their income forever.

About Hawaii Real Estate Investors

The Hawaii Real Estate Investors is an affiliation of investors ranging from beginners to advanced; part-time enthusiasts to full-time professionals. Our purpose is to create an environment that fosters ethical investing, great networking, and learning in topics such as locating, buying, financing, renting, managing, maintaining, selling, and /or exchanging real estate for investment purposes.

Contact:
Randall Fujinaka
(808) 368-6548

Article source: http://www.prurgent.com/2012-02-16/pressrelease224575.htm

The imperial way: American decline in perspective, part 2

In the years of conscious, self-inflicted decline at home, “losses” continued to mount elsewhere. In the past decade, for the first time in 500 years, South America has taken successful steps to free itself from western domination, another serious loss. The region has moved towards integration, and has begun to address some of the terrible internal problems of societies ruled by mostly Europeanized elites, tiny islands of extreme wealth in a sea of misery. They have also rid themselves of all US military bases and of IMF controls. A newly formed organization, CELAC, includes all countries of the hemisphere apart from the US and Canada. If it actually functions, that would be another step in American decline, in this case in what has always been regarded as “the backyard”.

Even more serious would be the loss of the MENA countries – Middle East/North Africa – which have been regarded by planners since the 1940s as “a stupendous source of strategic power, and one of the greatest material prizes in world history”. Control of MENA energy reserves would yield “substantial control of the world”, in the words of the influential Roosevelt advisor AA Berle.

To be sure, if the projections of a century of US energy independence based on North American energy resources turn out to be realistic, the significance of controlling MENA would decline somewhat, though probably not by much: the main concern has always been control more than access. However, the likely consequences to the planet’s equilibrium are so ominous that discussion may be largely an academic exercise.

The Arab Spring, another development of historic importance, might portend at least a partial “loss” of MENA. The US and its allies have tried hard to prevent that outcome – so far, with considerable success. Their policy towards the popular uprisings has kept closely to the standard guidelines: support the forces most amenable to US influence and control.

Favored dictators are supported as long as they can maintain control (as in the major oil states). When that is no longer possible, then discard them and try to restore the old regime as fully as possible (as in Tunisia and Egypt). The general pattern is familiar: Somoza, Marcos, Duvalier, Mobutu, Suharto, and many others. In one case, Libya, the three traditional imperial powers intervened by force to participate in a rebellion to overthrow a mercurial and unreliable dictator, opening the way, it is expected, to more efficient control over Libya’s rich resources (oil, primarily, but also water, of particular interest to French corporations), to a possible base for the US Africa Command (so far, restricted to Germany), and to the reversal of growing Chinese penetration. As far as policy goes, there have been few surprises.

Crucially, it is important to reduce the threat of functioning democracy, in which popular opinion will significantly influence policy. That, again, is routine, and quite understandable. A look at the studies of public opinion undertaken by US polling agencies in the MENA countries easily explains the western fear of authentic democracy, in which public opinion will significantly influence policy.

Israel and the Republican party

Similar considerations carry over directly to the second major concern addressed in the issue of Foreign Affairs cited in part one of this piece: the Israel-Palestine conflict. Fear of democracy could hardly be more clearly exhibited than in this case. In January 2006, an election took place in Palestine, pronounced free and fair by international monitors. The instant reaction of the US (and, of course, Israel), with Europe following along politely, was to impose harsh penalties on Palestinians for voting the wrong way.

That is no innovation. It is quite in accord with the general and unsurprising principle recognized by mainstream scholarship: the US supports democracy if, and only if, the outcomes accord with its strategic and economic objectives, the rueful conclusion of neo-Reaganite Thomas Carothers, the most careful and respected scholarly analyst of “democracy promotion” initiatives.

More broadly, for 35 years, the US has led the rejectionist camp on Israel-Palestine, blocking an international consensus calling for a political settlement in terms too well known to require repetition. The western mantra is that Israel seeks negotiations without preconditions, while the Palestinians refuse. The opposite is more accurate. The US and Israel demand strict preconditions, which are, furthermore, designed to ensure that negotiations will lead either to Palestinian capitulation on crucial issues or nowhere.

The first precondition is that the negotiations must be supervised by Washington, which makes about as much sense as demanding that Iran supervise the negotiation of Sunni-Shia conflicts in Iraq. Serious negotiations would have to be under the auspices of some neutral party, preferably one that commands some international respect, perhaps Brazil. The negotiations would seek to resolve the conflicts between the two antagonists: the US-Israel on one side, most of the world on the other.

The second precondition is that Israel must be free to expand its illegal settlements in the West Bank. Theoretically, the US opposes these actions, but with a very light tap on the wrist, while continuing to provide economic, diplomatic, and military support. When the US does have some limited objections, it very easily bars the actions, as in the case of the E-1 project linking Greater Jerusalem to the town of Ma’aleh Adumim, virtually bisecting the West Bank – a very high priority for Israeli planners (across the spectrum), but raising some objections in Washington, so that Israel has had to resort to devious measures to chip away at the project.

The pretense of opposition reached the level of farce last February when Obama vetoed a UN security council resolution calling for implementation of official US policy (also adding the uncontroversial observation that the settlements themselves are illegal, quite apart from expansion). Since that time, there has been little talk about ending settlement expansion, which continues with studied provocation.

Thus, as Israeli and Palestinian representatives prepared to meet in Jordan in January 2011, Israel announced new construction in Pisgat Ze’ev and Har Homa, West Bank areas that it has declared to be within the greatly expanded area of Jerusalem, annexed, settled, and constructed as Israel’s capital, all in violation of direct security council orders. Other moves carry forward the grander design of separating whatever West Bank enclaves will be left to Palestinian administration from the cultural, commercial, political center of Palestinian life in the former Jerusalem.

It is understandable that Palestinian rights should be marginalized in US policy and discourse. Palestinians have no wealth or power. They offer virtually nothing to US policy concerns; in fact, they have negative value, as a nuisance that stirs up “the Arab street”.

Israel, in contrast, is a valuable ally. It is a rich society with a sophisticated, largely militarized, high-tech industry. For decades, it has been a highly valued military and strategic ally, particularly since 1967, when it performed a great service to the US and its Saudi ally by destroying the Nasserite “virus”, establishing the “special relationship” with Washington in the form that has persisted since. It is also a growing center for US high-tech investment. In fact, high tech and, particularly, military industries in the two countries are closely linked.

Apart from such elementary considerations of great power politics as these, there are cultural factors that should not be ignored. Christian Zionism in Britain and the US long preceded Jewish Zionism, and has been a significant elite phenomenon with clear policy implications (including the Balfour Declaration, which drew from it). When General Allenby conquered Jerusalem during the first world war, he was hailed in the American press as Richard the Lion-Hearted, who had at last won the Crusades and driven the pagans out of the Holy Land.

The next step was for the Chosen People to return to the land promised to them by the Lord. Articulating a common elite view, President Franklin Roosevelt’s secretary of the interior, Harold Ickes, described Jewish colonization of Palestine as an achievement “without comparison in the history of the human race”. Such attitudes find their place easily within the providentialist doctrines that have been a strong element in popular and elite culture since the country’s origins: the belief that God has a plan for the world and the US is carrying it forward under divine guidance, as articulated by a long list of leading figures.

Moreover, evangelical Christianity is a major popular force in the US. Further toward the extremes, End Times evangelical Christianity also has enormous popular outreach, invigorated by the establishment of Israel in 1948, revitalized even more by the conquest of the rest of Palestine in 1967 – all signs that End Times and the Second Coming are approaching.

These forces have become particularly significant since the Reagan years, as the Republicans have abandoned the pretence of being a political party in the traditional sense, while devoting themselves in virtual lockstep uniformity to servicing a tiny percentage of the super-rich and the corporate sector. However, the small constituency that is primarily served by the reconstructed party cannot provide votes, so they have to turn elsewhere.

The only choice is to mobilize tendencies that have always been present, though rarely as an organized political force: primarily nativists trembling in fear and hatred, and religious elements that are extremists by international standards but not in the US. One outcome is reverence for alleged Biblical prophecies, hence not only support for Israel and its conquests and expansion, but passionate love for Israel, another core part of the catechism that must be intoned by Republican candidates – with Democrats, again, not too far behind.

These factors aside, it should not be forgotten that the “Anglosphere” – Britain and its offshoots – consists of settler-colonial societies, which rose on the ashes of indigenous populations, suppressed or virtually exterminated. Past practices must have been basically correct, in the US case, even ordained by Divine Providence. Accordingly, there is often an intuitive sympathy for the children of Israel when they follow a similar course. But primarily, geostrategic and economic interests prevail, and policy is not graven in stone.

The Iranian “threat” and the nuclear issue

Let us turn finally to the third of the leading issue addressed in the establishment journals cited earlier, the “threat of Iran”. Among elites and the political class, this is generally taken to be the primary threat to world order – though not among populations. In Europe, polls show that Israel is regarded as the leading threat to peace. In the MENA countries, that status is shared with the US, to the extent that in Egypt, on the eve of the Tahrir Square uprising, 80% felt that the region would be more secure if Iran had nuclear weapons. The same polls found that only 10% regard Iran as a threat – unlike the ruling dictators, who have their own concerns.

In the United States, before the massive propaganda campaigns of the past few years, a majority of the population agreed with most of the world that, as a signatory of the Non-Proliferation Treaty, Iran has a right to carry out uranium enrichment. And even today, a large majority favors peaceful means for dealing with Iran. There is even strong opposition to military engagement if Iran and Israel are at war. Only a quarter regard Iran as an important concern for the US altogether. But it is not unusual for there to be a gap, often a chasm, dividing public opinion and policy.

Why exactly is Iran regarded as such a colossal threat? The question is rarely discussed, but it is not hard to find a serious answer – though not, as usual, in the fevered pronouncements. The most authoritative answer is provided by the Pentagon and the intelligence services in their regular reports to Congress on global security. They report that Iran does not pose a military threat. Its military spending is very low even by the standards of the region, minuscule, of course, in comparison with the US.

Iran has little capacity to deploy force. Its strategic doctrines are defensive, designed to deter invasion long enough for diplomacy to set it. If Iran is developing nuclear weapons capability, they report, that would be part of its deterrence strategy. No serious analyst believes that the ruling clerics are eager to see their country and possessions vaporized, the immediate consequence of their coming even close to initiating a nuclear war. And it is hardly necessary to spell out the reasons why any Iranian leadership would be concerned with deterrence, under existing circumstances.

The regime is doubtless a serious threat to much of its own population – and regrettably, is hardly unique on that score. But the primary threat to the US and Israel is that Iran might deter their free exercise of violence. A further threat is that the Iranians clearly seek to extend their influence to neighboring Iraq and Afghanistan, and beyond, as well. Those “illegitimate” acts are called “destabilizing” (or worse). In contrast, forceful imposition of US influence halfway around the world contributes to “stability” and order, in accord with traditional doctrine about who owns the world.

It makes very good sense to try to prevent Iran from joining the nuclear weapons states, including the three that have refused to sign the Non-Proliferation Treaty – Israel, India, and Pakistan, all of which have been assisted in developing nuclear weapons by the US, and are still being assisted by them. It is not impossible to approach that goal by peaceful diplomatic means. One approach, which enjoys overwhelming international support, is to undertake meaningful steps towards establishing a nuclear weapons-free zone in the Middle East, including Iran and Israel (and applying as well to US forces deployed there), better still extending to South Asia.

Support for such efforts is so strong that the Obama administration has been compelled to formally agree, but with reservations: crucially, that Israel’s nuclear program must not be placed under the auspices of the International Atomic Energy Association, and that no state (meaning the US) should be required to release information about “Israeli nuclear facilities and activities, including information pertaining to previous nuclear transfers to Israel”. Obama also accepts Israel’s position that any such proposal must be conditional on a comprehensive peace settlement, which the US and Israel can continue to delay indefinitely.

This survey comes nowhere near being exhaustive, needless to say. Among major topics not addressed is the shift of US military policy towards the Asia-Pacific region, with new additions to the huge military base system underway right now, in Jeju Island off South Korea and Northwest Australia, all elements of the policy of “containment of China”. Closely related is the issue of US bases in Okinawa, bitterly opposed by the population for many years, and a continual crisis in US-Tokyo-Okinawa relations.

Revealing how little fundamental assumptions have changed, US strategic analysts describe the result of China’s military programs as a “classic ‘security dilemma’, whereby military programs and national strategies deemed defensive by their planners are viewed as threatening by the other side”, writes Paul Godwin of the Foreign Policy Research Institute. The security dilemma arises over control of the seas off China’s coasts. The US regards its policies of controlling these waters as “defensive”, while China regards them as threatening; correspondingly, China regards its actions in nearby areas as “defensive”, while the US regards them as threatening. No such debate is even imaginable concerning US coastal waters. This “classic security dilemma” makes sense, again, on the assumption that the US has a right to control most of the world, and that US security requires something approaching absolute global control.

While the principles of imperial domination have undergone little change, the capacity to implement them has markedly declined as power has become more broadly distributed in a diversifying world. Consequences are many. It is, however, very important to bear in mind that, unfortunately, none lifts the two dark clouds that hover over all consideration of global order: nuclear war and environmental catastrophe, both literally threatening the decent survival of the species.

Quite the contrary. Both threats are ominous, and increasing.

• This is the second part of Noam Chomsky’s essay for TomDispatch; part 1 is published here

Article source: http://www.guardian.co.uk/commentisfree/cifamerica/2012/feb/15/imperial-way-american-decline-noam-chomsky

Adam Smith and Joseph Schumpeter on the Bifurcation of Society

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Adam Smith and Joseph Schumpeter on the Bifurcation of Society


By Rick Bookstaber

On the issue of the bifurcation of society and the widening income gap in the U.S., and the strains appearing from the factory system in China that have recently been highlighted, there is useful commentary that comes from a surprising quarter, or perhaps not surprising in itself, but in the view taken on the subject: Both Adam Smith and Joseph Schumpeter, defenders of capitalism as the source of “universal opulence”, see a road leading from capitalism to the disenfranchisement of the worker and the vaulting of the elite.

Adam Smith

Adam Smith is a social philosopher grounded in the search for what is moral and what provides man with the greatest good, with universal opulence. It is to this end that he promotes self-interest as the core of economic exchange, and division of labor as the core of efficient production. But he also admits to unintended consequences of human action and recognizes that government action is required to dampen these negative consequence.

Smith: Political influence

We have no acts of parliament against combining to lower the price of work, but many against combining to raise it. – Adam Smith, The Wealth of Nations

Smith recognizes that workers and employers would jostle for an advantage by using political influence, and he also recognizes that this would be an unfair fight, with the employers having stronger influence and, because they were a far smaller group, being better able to do their lobbying behind closed doors. This was already evident; as he points out, the law prohibited workers from unionizing but allowed employers to organize to keep wages low:

Particular acts of parliament, however, still attempt sometimes to regulate wages in particular trades, and in particular places. Thus the 8th of George III. prohibits, under heavy penalties, all master tailors in London, and five miles round it, from giving, and their workmen from accepting, more than two shillings and sevenpence halfpenny a-day, except in the case of a general mourning. Whenever the legislature attempts to regulate the differences between masters and their workmen, its counsellors are always the masters. When the regulation, therefore, is in favour of the workmen, it is always just and equitable; but it is sometimes otherwise when in favour of the masters.

Competition was stifled through legal restrictions on the freedom to sell commodities and to supply labor. The government legalized monopolies that gave exclusive rights to sell products, and to limit the supply of labor for some occupations through guilds. Smith repeatedly observes that self-interests would be promoted legislatively at the expense of the public whenever and wherever possible, and this would be more successfully accomplished by the wealthy and well-connected “masters” who could peddle their influence largely unseen: Masters…enter into particular combinations to sink the wages of labour….These are always conducted with the utmost silence and secrecy till the moment of execution; and when the workmen yield, as they sometimes do without resistance, though severely felt by them, they are never heard of by other people.

Smith: Regulation

...the clamour and sophistry of merchants and manufacturers easily persuade them, that the private interests of a part, and a subordinate part, of the society, is the general interest of the whole…everywhere finally paid by the landlords, farmers, and labourers.– Adam Smith, The Wealth of Nations

Adam Smith recounts many failings of the market: price fixing (“People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices.”); trade restrictions and duties extending from towns to international trade; and influence peddling to Parliament.

But it was not the gaming of the economic system, but rather the imposition of the factory system with the resulting long hours of monotonous labor that rose to the issue of greatest concern. Smith holds the view, later expounded by Marx, that men find their individuality and strongest link to society through their labor, and sees in the conditions of the worker a debilitating effect on intellectual and social vitality:

The man whose whole life is spent in performing a few simple operations . . . has no occasion to exert his understanding. . . . He naturally loses, therefore, the habit of such exertion, and generally becomes as stupid and ignorant as it is possible for a human creature to become. The torpor of his mind renders him, not only incapable of relishing or bearing a part in any conversation, but of conceiving any generous, noble, or tender sentiment, and consequently of forming any just judgement concerning many even of the ordinary duties of private life. . . . It corrupts even the activity of his body, and renders him incapable of exerting his strength with vigour and perseverance, in any other employment than that to which he has been bred. His dexterity at his own particular trade seems, in this manner, to be acquired at the expence of his intellectual, social, and martial virtues. But in every improved and civilized society this is the state into which the labouring poor, that is, the great body of the people, must necessarily fall, unless government takes some pains to prevent it.

Here Smith points to the need for government intervention: the alienation of the masses may be remedied if the “government takes some pains to prevent it”. In particular, Smith proposes universal public schooling, a proposal at variance with the view at the time that education would foment rebellion.

Joseph Schumpeter

Like Adam Smith, Schumpeter views capitalism in positive terms, as a force for improving society and making men better off. And like Smith he sees the emergence of a capitalist elite that will by their economic force ride over the mass of workers. (The growing pains of the Industrial Revolution with farmers and artisans displaced and then engulfed by the factory system was an object lesson that was still only a few generations old when Schumpeter began his academic career). Indeed, his view is that this ultimately will be the demise of capitalism and the rise of socialism. Thus he sees the same end for capitalism as does Marx, but through a path that is largely opposed to Marx’s: Not the failure but the success of capitalism, success that is concentrated on the innovative elite, will lead to social revolt.

Schumpeter: The elite

That lambs dislike birds of prey does not seem strange: but that is no reason for blaming the birds of prey for taking the little lambs. And if the lambs say among themselves, “These birds of prey are evil, and whoever is the least like a bird of prey, indeed whoever is its opposite, whoever is like a lamb ?would he not be good?” then there is no reason to find fault with this as an ideal, though the birds of prey may view it with some irony and say to themselves, “We bear no grudge against these good little lambs, we even love them: nothing is more tasty than a tender lamb.” – Nietzsche, On the Genealogy of Morality

Schumpeter’s view is rooted in the prevailing social philosophy of his day, a philosophy founded on that of Nietzsche, that supports the role of the elite: Society and capitalism depend on the elite, and the social and political environment should protect the status of the elite, nurture their activities, and even extend their influence in government policy. Schumpeter extolls the elite, the force for capitalist growth, while anticipating the effect of their success on the masses – the implications of the resentment of the many against the wealthy few.

Nietzsche’s theme of the elite he thus naturally pairs with another, that of “Ressentiment”: the resentfulness of the inferior for the superior, and the tendency of the many to devalue and even revolt against the successful. (A revolt that in its least disruptive and passive form Nietzsche sees taking the route of Christian faith – Nietzsche argues that Christian meekness and humility is a means for the weak and inferior to feel comfortable in their lot, even to feel morally superior to the elite). Schumpeter portrays Ressentiment as having an inescapable result; the success of the elite, especially levered by the capitalist system, leading to an increasing disparity with the masses still stuck in the status quo with their condition perhaps improving in absolute terms, but not, as is most important for the survivability of capitalism, in relative terms.

Thus, like Marx, Schumpeter argues that capitalism creates its own opposition. But according to Schumpeter, that opposition comes not from the existential impoverishment and alienation of the worker but from the resentment created by the successes of the very wealthy. It is in this way that Schumpeter, though through an argument in opposition to that made by Marx, comes to same conclusion, that capitalism sows the seeds of its own destruction:

Every social system is sensitive to revolt and in every social system stirring up revolt is a business that pays in case of success and hence always attracts both brain and brawn. It did in feudal times—very much so. But warrior nobles who revolted against their superiors attacked individual persons or positions. They did not attack the feudal system as such. And feudal society as a whole displayed no tendencies to encourage—intentionally or unintentionally—attacks upon its own social system as a whole.

Schumpeter: Education

Broadly speaking, conditions favorable to general hostility to a social system or specific attack upon it will in any case tend to call forth groups that will exploit them. But in the case of capitalist society there is a further fact to be noted: unlike any other type of society, capitalism inevitably and by virtue of the very logic of its civilization creates, educates and subsidizes a vested interest in social unrest. – Schumpeter, Capitalism, Socialism and Democracy

In contrast to Adam Smith, who advocated for universal education at the expense of the state as a means of lifting up those alienated by the enclosures movement in agriculture and the factory system in industry, Schumpeter sees non-vocational education as a spur to resentment and a threat to capitalism. “The man who has gone through a college or university easily becomes psychically unemployable in manual occupations without necessarily acquiring employability in, say, professional work.” University education “may create unemployability of a particularly disconcerting type” with graduates that are not well trained for any vocation, and end up with jobs and at salaries that they find beneath them. They become discontented, and “discontent breeds resentment” that in turn can lead to revolt. Schumpeter’s observations echo those of Voltaire and others in Adam Smith’s time who were concerned that education would lay bear their lot and thus magnify the discontent of the lower classes.

Note: This post heavily draws from The Mind of the Market.

About Rick Bookstaber

Rick Bookstaber is currently working in Washington as Senior Policy Adviser to the Financial Stability Oversight Council and Senior Policy Adviser at the SEC. Before the current stint, Rick worked at Bridgewater Associates, ran the Quantitative Equity Fund at FrontPoint Partners and was in charge of risk management at Moore Capital Management. In investment banking, Rick was in charge of firm-wide risk and a member of Salomon Brothers’ Risk Management Committee. Rick also spent ten years at Morgan Stanley, designing derivatives, doing proprietary trading, and concluding as the firm’s first market risk manager. Rick is the author of four books and scores of articles on finance including A Demon of Our Own Design. Bookstaber received a Ph.D. in economics from MIT.

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    Article source: http://www.creditwritedowns.com/2012/02/adam-smith-and-joseph-schumpeter-on-the-bifurcation-of-society.html

    It’s Time to Lead on Tax Equity

    One of the criticisms President Obama has faced is that he tends to wait patiently, sometimes too patiently for some, for the public to reach conclusions that seem so obvious. With the release of his proposed 2012-13 budget, the president is now continuing to use his influence to support what has now, finally, become a consensus opinion: our historically low tax rates on the very rich are unsustainable and are destroying our middle class. It’s now time for him to bang the bully pulpit, and time for Congressional Democrats to put aside their timidity and join the fight.

    Last October, I posted a blog entitled “What Took Them So Long,” in which I asked why it had taken so long for people to actually focus on America’s three decade-long trend toward financial inequality. After all, the slide had been constant and seemingly inexorable for so long. By last fall, the most fortunate 1% of Americans controlled 40% of the nation’s wealth and collected 24% of the nation’s income, about triple of what it was just 30 years ago. That share of income is the highest it has been since the Roaring 20s, and for the richest of Americans, that income is now often taxed at capital gains rates which are less than half of ordinary income, and about half of what the rates were when Ronald Reagan was president. The Democratic Congressional leadership and rank-and-file, so fearful of being accused of actually raising taxes, have been bullied into submission, and have gone along with the greatest redistribution of wealth in history.

    Since October, a lot has happened to bring the issue of tax fairness to the forefront, and to reveal a remarkable consensus of people accross the spectrum that our most fortunate citizens need to pay their fair share of taxes. It would be nice to think that the breadth of the consensus would inject Congress, and more specifically President Obama’s allies on Capitol Hill, with some backbone on this issue. Senate Minority Leader Mitch McConnell seems pretty convinced that the backbone deficit has not been cured, as he threatens to introduce the president’s budget himself, safe with the knowledge that Democrats would never support it. McConnell assumes that no Democrat would dare back raising taxes on “job creators” in an election year.

    Democrats should now have the guts, and the good sense, to call McConnell’s bluff. Over the last six months, it has been clear that noone really believes this “job creators” baloney. Look at what has happened: First, God love them, the “Occupiers” brought the debate to the forefront, helping people realize that “we are the 99 percent.” Around the same time, Warren Buffett reprised his earlier commentary about how he pays a lower tax rate than his secretary. Back in 2006, Buffett had noted that there was already class warfare in the United States, and, he noted, “my side’s winning.”

    More billionaires have joined Buffett. Just last week, venture capitalist billionaire Nick Hanauer, who made a fortune with Amazon, argued that the policies of ultra-low taxes on the mega-rich won’t boost economic growth or lower the jobless rate. To the contrary, a decade of historically low taxes on the rich had done just the opposite and continued the downward trend of the middle class. “We are systematically destroying our customer base in this country by undercutting the middle class,” Hanauer says. “If it was true that the rich and business were job creators, we’d be drowning in jobs today.”

    Why is Hanauer right? Why has the economy struggled even though the system is full of cash? Because the cash isn’t getting in the hands of Hanauer’s customer base — regular people who buy the things that a healthy economy makes, like refrigerators and ranges and air conditioners and cars. So, as I noted in my October blog, the stock of Tiffany’s has quadrupled since the spring of 2009, while business at Sears has been relatively flat. People who don’t need the cash or the credit have lots of it. People who buy refrigerators? Not so much. With relatively little demand, cash-rich companies have been hesitant to hire people to build more things that customers might not be able to buy. More tax cuts for rich people won’t solve this problem.

    Hanauer rejects the idea that he’s advocating higher taxes on the rich “because I’m a good person or because I love you. Let me just be very clear. I do not love you. I value you as a potential customer and we’ve rigged the economic system in a way to destroy my customer base.”

    The other development that has brought this inequity into focus has been the release of Mitt Romney’s tax returns (well, at least one tax return). Romney has now become a living, breathing example of the inequality, as he revealed that he paid federal taxes at a rate below 15%. Again, as I noted in October, those of us who work hard and have had some success — but who work for money, as opposed to having our money work for us — have a hard time understanding why the system rewards the governor’s efforts so much more than ours. As Hanauer noted last week, if you are a small businessman earning $350,000 a year, your tax rate is 35%, while hedge-fund guys pays 15%. It’s tough to get your arms around that.

    The Speaker of the House continues to tell us that we need to have lower tax rates for capital gains and for “carried interest,” because, without these gimmicks, the job creators won’t invest. This is hogwash. Mitt Romney didn’t turn down any investment opportunities in the 1990′s, when capital gains were taxed at 28%, because taxes were too high. Investors will invest when there is money to be made.

    Even more to the point, there is no equity in taxing people who invest at a lower rate than people who work for a living. In fact, it used to be that Republicans felt this way. It was recently noted that in the 1920s, Andrew Mellon, the Republican Treasury Secretary, forcefully argued that income from labor should be taxed at a lower rate than investment income. Mellon argued that wages are uncertain and limited by sickness or death; money will always make more money for people who have it in the first place.

    It’s not surprising that, in light of the debate over the last few months, sizeable majorities of just about every interest group believes that part of our long-term debt solution should be higher taxes on the people who can most afford them. Even a majority of Tea Partiers believe this.

    President Obama has included tax equity, and the basic tenets of the Buffett Rule, in the budget he has now sent to Congress. The Republican congressional leadership is convinced that the Democrats in both houses are too craven to do anything about in an election year. How refreshing it would be if Democrats actually had the President’s back on this.

    Article source: http://www.huffingtonpost.com/alan-fein/obama-democrats-taxes-wealthy_b_1274467.html

    Private Client Resources Named Most Innovative Provider Serving Private Banks

    b7317 PR Logo Newswire Private Client Resources Named Most Innovative Provider Serving Private Banks

    WILTON, Conn., Feb. 15, 2012 /PRNewswire via COMTEX/ –
    Private Client Resources, LLC (PCR), the premier provider of private wealth aggregation and data-driven solutions for wealth managers, advisory firms and family offices, was named “Most Innovative Private Bank Provider” in Private Asset Management (PAM) magazine’s 2012 awards, which identified leading investment professionals, wealth advisors and service providers operating within the private asset management industry.

    PCR was selected by an independent panel of industry experts, based on key criteria and performance indicators, including financial progress and stability, growth in clients and internal hires, client satisfaction and industry innovation.

    “This award reflects our never-ending pursuit of being best-in-class, helping private banks and other wealth management firms remove the obstacles of managing and operating client reporting, technology, data aggregation and integrated systems,” said Robert Fiore, President and CEO of PCR. “We are honored to be recognized as an innovator.”

    PCR increased assets on their system by more than 220 percent in 2011, fueled by new client acquisitions and the continued success of its existing clients.

    “Over 70% of wealth management businesses are running in-house aggregation and client reporting using software, spreadsheets and people. This is neither efficient nor scalable, and it’s a distraction to growing an advisory business. Private banks, family offices and advisors seek to spend most, if not all, of their effort growing assets. PCR provides the services and continual innovation that is allowing private wealth managers to exit secondary businesses like aggregation and client reporting and instead focus on their core business.”

    PCR’s Palette Platform(TM) delivers robust capabilities, including high-quality aggregated data, premium reporting, CRM, billing and more, while allowing users to access only those capabilities they want and need to support their business. The result is a completely pre-integrated and customizable platform that is used throughout the wealth management industry.

    The 2012 PAM Awards were hosted by Private Asset Management (
    www.pammagazine.com ) with winners selected from leading firms in the wealth management and advisory community based on their work with the high-net-worth community. The winners of this year’s PAM Awards were announced on February 7, 2012.

    For more information about PCR, please contact Jami Schlicher at 973-850-7309 or jschilcher@jcprinc.com.

    About Private Client Resources

    Private Client Resources (PCR) is a leading solutions provider to Private Banks, Family Offices and RIA firms. The firm’s private wealth aggregation and integrated reporting and systems, along with its custom solutions and services, deliver robust capabilities tailored to the needs of its clients. Wealth management professionals can enhance and grow client relationships through PCR’s innovative Palette Platform(TM), a proprietary, next-generation solution that includes high-quality aggregated data, premium reporting, intelligent dashboards, CRM and billing.

    Headquartered in Wilton, Conn., PCR is a value-driven service partner committed to positioning clients for sustained growth. For more information, visit
    www.pcrinsight.com .

    About the PAM Awards

    The PAM Awards are awarded annually by Private Asset Management, a financial services industry trade publication. The PAM Awards invites firms to compete for awards in several categories by providing answers regarding their business model, services offered, growth in client count and assets managed, countries of operation, service innovation, and performance. In addition, The PAM Awards permits firms to provide additional information of their choosing in support of their candidacy. A panel of independent industry experts selects the nominees and winners based on a number of qualitative and quantitative performance indicators. The PAM Awards do not release statistics on the number of firms competing. Nomination or receipt of a PAM Award is not necessarily indicative of any particular client’s experience or a guarantee that the firm will perform in the future as it did during the period evaluated by The PAM Awards.

    
            Contact: Jami Schlicher
                     JCPR
                     973-850-7309
                     jschlicher@jcprinc.com
    

    SOURCE Private Client Resources

    Copyright (C) 2012 PR Newswire. All rights reserved

    b7317 comtexsmall Private Client Resources Named Most Innovative Provider Serving Private Banks

    Article source: http://www.marketwatch.com/story/private-client-resources-named-most-innovative-provider-serving-private-banks-2012-02-15