Saturday, March 17, 2018

Economic ideologies have declared war
  Why Western Neoliberal capitalists fear socialist
  China's Xi and fear for capitalist Russia's Putin



In the Year of the Dog, as the chart below indicates there are the three largest countries. Russia is the largest in land area. China is the largest in population. The United States of America is the largest in Gross Domestic Product.

Also, in the 21st Century as indicated in the chart China has grown its Per Capita Gross Domestic Product by 969% while Russia's has fallen by 26%.

China and Russia are the two main competitors of the United States primarily because of their military strength and the shadow that casts over the rest of the world. So the leaders of those two countries are the subject of news stories, many of which are so speculative and inaccurate as to constitute fake news.

Of course, here in the United States all the press, all the pundits, are struggling to understand the thinking of President Donald Trump. Whether that's possible is up for debate.

Perhaps in this Year of the Dog Americans should better get to know the world's other two "Big Dogs", China's Xi Jinping and Russia's Vladimir Putin. Both have been the subject of some misleading news stories in the past week.

Xi and the Chinese Communist Party are supposedly about to make Xi the new emperor ...well, lifetime ruler... of China because of a proposal to end term limits.

And Putin supposedly is longing for a return of the Soviet Union.


Vladimir Putin

Last week, Putin made headlines in a media forum question-and-answer session:

    The head of state said as much answering questions during the Truth and Justice media forum organized by the Russian Popular Front.
    When asked which of the events that happened in Russia he wanted to change, Putin answered, "The collapse of the Soviet Union," while his answer to the question what historical period he would like to live in was the following, "Today." You see, all my ancestors in the past were peasant serfs, while I am the president," the head of state explained ironically.
    When asked whether he has a dream, which has not come true, the president said that his goal is clear. "I want our country to be successful, powerful, stable, balanced and looking ahead," he stressed.

In an analysis, a Washington Post article noted:

    Though a fringe idea in the West, regret about the collapse of the Soviet Union is not unusual in Russia — in fact, it is widespread. And with Russian elections just a week away, it's a factor still worth watching.
    The polling agency Levada Center has been asking Russians about their views on the collapse of the Soviet Union since 1992. The most recent numbers, from a survey conducted in November 2017, show that 58 percent of Russians regret the U.S.S.R.'s collapse, while just over a quarter do not.

The misunderstanding is that much of the American press represented Putin's statement as a desire to "reverse" the end of the communist state when his wistfulness is about the size of the former union and the loss of a number of its constituent states. More context is needed in order to understand Putin better. In an April 2005 state of the nation address Putin stated:

    I consider the development of Russia as a free and democratic state to be our main political and ideological goal. We use these words fairly frequently, but rarely care to reveal how the deeper meaning of such values as freedom and democracy, justice and legality is translated into life.
    Meanwhile, there is a need for such an analysis. The objectively difficult processes going on in Russia are increasingly becoming the subject of heated ideological discussions. And they are all connected with talk about freedom and democracy. Sometimes you can hear that since the Russian people have been silent for centuries, they are not used to or do not need freedom. And for that reason, it is claimed our citizens need constant supervision.
    I would like to bring those who think this way back to reality, to the facts. To do so, I will recall once more Russia’s most recent history.
    Above all, we should acknowledge that the collapse of the Soviet Union was a major geopolitical disaster of the century. As for the Russian nation, it became a genuine drama. Tens of millions of our co-citizens and compatriots found themselves outside Russian territory. Moreover, the epidemic of disintegration infected Russia itself.
    Individual savings were depreciated, and old ideals destroyed. Many institutions were disbanded or reformed carelessly. Terrorist intervention and the Khasavyurt capitulation that followed damaged the country's integrity. Oligarchic groups – possessing absolute control over information channels – served exclusively their own corporate interests. Mass poverty began to be seen as the norm. And all this was happening against the backdrop of a dramatic economic downturn, unstable finances, and the paralysis of the social sphere.
    Many thought or seemed to think at the time that our young democracy was not a continuation of Russian statehood, but its ultimate collapse, the prolonged agony of the Soviet system.
    But they were mistaken.
    That was precisely the period when the significant developments took place in Russia. Our society was generating not only the energy of self-preservation, but also the will for a new and free life. In those difficult years, the people of Russia had to both uphold their state sovereignty and make an unerring choice in selecting a new vector of development in the thousand years of their history. They had to accomplish the most difficult task: how to safeguard their own values, not to squander undeniable achievements, and confirm the viability of Russian democracy. We had to find our own path in order to build a democratic, free and just society and state.
    When speaking of justice, I am not of course referring to the notorious ”take away and divide by all“ formula, but extensive and equal opportunities for everybody to develop. Success for everyone. A better life for all.

As the table above indicates, Putin is struggling with those goals. If you read the rest of that speech, you'll see he was committed to capitalism. His view does not see democracy as a possibility without a full commitment to free market capitalism. But one has to ask him: "How's that working out for you?" As explained elsewhere:

    A recent report by Credit Suisse showed that Russia is the most unequal of all the world’s major economies. The richest 10% of Russians own 87% of all the country’s wealth, according to the report, compared with 76% in the US and 66% in China. According to another measure, by VTB Capital, 1% of the Russian population holds 46% of all the personal bank deposits in the country.
    Many Russians believe such rampant inequality – at least in part caused by corruption – might cause “kitchen grumbling”, but never serious political upheaval. However, last month the biggest protests to hit Russia for several years saw an estimated 60,000 people on the streets of nearly 80 cities. While the numbers are small as a percentage of the whole population, there is a sense that anger may be stirring.
    In the late 1970s, only 0.2% of people earned more than four times the average wage in the Soviet Union, according to official statistics. Of course, many complained that the Soviet elite lived a more luxurious life than the majority of the population, relying on the “grey economy” to access luxury products and other consumer goods that were unavailable to normal citizens, even if the differences in official salaries were not that high.
    But the levels of inequality that came about in 1990s Russia were far more dramatic and shocking. Capitalism turned out to be just how the Soviets had warned, with a few people requisitioning all the ladders and the vast majority left to be devoured by snakes. In the far north and east extremities of the country, where people had settled because the Soviet system paid high salaries, the market economy sent industrial towns into ruin, making whole regions impoverished.


In viewing this inequality problem and how to deal with capitalism, Putin expressed in his 2005 speech a view that Americans have a hard time understanding: "In those difficult years, the people of Russia had to both uphold their state sovereignty and make an unerring choice in selecting a new vector of development in the thousand years of their history."

While Putin is threading his way through a complex political, economic, and societal environment built upon a thousand years of history trying to achieve the goals he believes will create a better Russia, in China an unerring choice in selecting a new vector of development in their thousands and thousands of years of history is being made.


Xi Jinping

If the American press and pundits don't understand Trump or Putin, they are even worse at interpreting Xi Jinping. The latest headline story on China in The New York Times. a classic analysis by the Europe-oriented East Coast liberal press, Xi Sets China on a Collision Course With History, begins by telling us:

    There was always something different about China’s version of authoritarianism. For decades, as other regimes collapsed or curdled into dysfunctional pretend democracies, China’s held strong, even prospered.
    Yes, China’s Communist Party has been vigorous in suppressing dissent and crushing potential challenges. But some argue that it has survived in part by developing unusually strong institutions, bound by strict rules and norms. Two of the most important have been collective leadership — rule by consensus rather than strongman — and term limits.
    When the Communist Party announced this week that it would end presidential term limits, allowing Xi Jinping to hold office indefinitely, it shattered those norms. It may also have accelerated what many scholars believe is China’s collision course with the forces of history it has so long managed to evade.
    That history suggests that Beijing’s leaders are on what former Secretary of State Hillary Clinton once called a “fool’s errand”: trying to uphold a system of government that cannot survive in the modern era. But Mr. Xi, by shifting toward a strongman style of rule, is doubling down on the idea that China is different and can refashion an authoritarianism for this age.

It is at this point that anyone familiar with China says "ah, no, the only person on a fools errand recently was Hillary Clinton and the only national government that is on a collision course with the forces of history is that of the United States."

History offers many lessons, but how to govern well or poorly in the future is not one of them.

The five posts preceding this one provide a plethora of information we need to be aware of regarding the past and future of China. For instance, the following is a quote from one of them.

Xi could also note: “No one political system should be regarded as the only choice and we should not just mechanically copy the political systems of other countries. The political system of socialism with Chinese characteristics is a great creation.”

He could say this because he and those in his administration know that with the election of Donald Trump the United States has...
  • a Republican President who by a large margin lost the popular vote (for the second time since the year 2000);
  • a Senate in which 60 of the 100 Senators with 60% of the vote in the Senate represent less than 25% of the population, while 18 of the 100 Senators with only 18% of the vote in the Senate represent the majority of Americans, and despite the fact that more votes were cast for Democratic candidates than Republican candidates in the last three Senate elections, Republicans control the Senate;
  • a House of Representatives in which Democratic candidates received a nationwide plurality but the Republican candidates won a majority of the House seats; and
  • a nationwide justice system that randomly injures, kills, or imprisons large numbers of non-white American citizens without a trial, creating the highest incarceration rate in the world with about 22 percent of the world's prisoners in a nation that has about 4.4 percent of the world's population.
...leaving Americans with no ability at all to respond to Xi's "political system" challenge by claiming their government is a democracy - assuming democracy in any sense means majority rule based on the popular vote.

In other words, the Executive and Legislative branches of government of the United States of America are not run by officials who represent the majority of the popular vote. Further the American justice system clearly jails or kills citizens who are out of favor with the dominant minority running the government, imprisoning far more such persons than China.

So it is bemusing to those of us who don't hang around in high priced coffee houses on the East Coast to read interpretations of China's Xi by those who cannot wean themselves from their addiction to the morning apoplexy brought about by Trump tweeting.

A typical headline reflects how they think: Leader For Life: Xi Jinping Strengthens Hold On Power As China Communist Party Ends Term Limits. That headline is wrong, even based on the details of the story under it. And worse, it reinforces America's recent love affair with term limits.

We residents of the United States are the passengers on a Ship of Fools. Most of those passengers don't view their country in any real light - historically, economically, or politically.

Consider this discussion:

    With global markets shaken by President Donald Trump's surprise decision to impose strict tariffs on steel and aluminum imports, the president went into battle mode on Friday: "Trade wars are good, and easy to win," he wrote on Twitter.
    But the public show of confidence belies the fact that Trump's policy maneuver, which may ultimately harm U.S. companies and American consumers, was announced without any internal review by government lawyers or his own staff, according to a review of an internal White House document.
    According to two officials, Trump's decision to launch a potential trade war was born out of anger at other simmering issues and the result of a broken internal process that has failed to deliver him consensus views that represent the best advice of his team.
    On Wednesday evening, the president became "unglued," in the words of one official familiar with the president's state of mind.
    A trifecta of events had set him off in a way that two officials said they had not seen before: Hope Hicks' testimony to lawmakers investigating Russia's interference in the 2016 election, conduct by his embattled attorney general and the treatment of his son-in-law by his chief of staff.
    Trump, the two officials said, was angry and gunning for a fight, and he chose a trade war, spurred on by Commerce Secretary Wilbur Ross and Peter Navarro, the White House director for trade.

This style of petulant policy implementation is common in dictatorships and that it can happen in the United States is because Congress - you know, the branch of government closest to the electorate - turned the power over to the President simply because when needed they can't make complex quick decisions common to the 21st Century.

Wikipedia offers a characterization of authoritarian political systems by qualities which by striking out their words and adding new ones in italics we can make a point:
  • Limited political pluralism, that is such regimes place constraints on political institutions and groups like legislatures, political parties and interest, racial, ethnic, religious, and gender groups;
  • A basis for legitimacy based on emotion, especially the identification of the regime as a necessary evil to combat "easily recognizable societal problems" such as underdevelopment or insurgency anti-Americanism or immoral behavior;
  • Minimal social mobilization most often caused by constraints on the public such as suppression of political opponents and the press, and anti-regime activity;
  • Informally defined executive power with often vague and shifting powers, resulting in significant executive orders creating policy shifts not intended by the legislative branch;
  • Limiting economic and social mobility by favoring the wealthy and large corporations.
The obvious reality is that authoritarian qualities within the governments of the United States and China differ in types and degrees, but authoritarian qualities exist in both. (Most Americans believe that "authoritarian" refers only to some kind of "autocracy" which means "ruler of one" when, in fact, the terms are not synonyms both theoretically and in practice.)

So China is considering the repeal the two-terms term-limit rule for its leader and Westerners, particularly American and British "experts", bring up the specter of Mussolini, Stalin, and, of course, Chairman Mao.

Yeah...no, that's not the way government works in China. It's complicated because it's complex. It begins with the fact that we're talking about 1.4 billion people in a 21st Century environment.

Below is a graphic that attempts to explain "How the Chinese government works" from Xi Jinping as president beyond 2023 may be good for China – though the West won’t believe it by Tom Plate:


When something like a "two term limit" rule is evaluated, one has to puzzle over what is so magical about that rule that enamors American pundits. From George Washington through Harry S. Truman, American Presidents could serve as many terms as they could win. After Democratic President Franklin D. Roosevelt won four consecutive presidential elections, (Republican?) politicians decided limits might be a good idea.

Many of the Founding Fathers, including Hamilton and Madison, supported a lifetime appointment for Presidents selected by Congress, not some cobbled-together system involving an electoral college. And it was never proposed at the Constitutional Convention that Presidents be elected by the most unreliable, ignorant group in the system, the voters.

The Great Depression and World War II help explain why FDR served for so long. Facing a true national and international crises, a country might actually need to keep the same government in power for longer than usual. But logic never enters into the political debates in the United States.

Considering context is always important.

So consider the fact that U.S. Senator Joseph McCarthy came to national prominence in February 1950 after giving a speech in Wheeling, West Virginia, in which he claimed to have a list of 205 State Department employees who were members of the Communist Party.  McCarthy claimed the list was provided to and dismissed by then-Secretary of State Dean Acheson, saying that the "State Department harbors a nest of Communists and Communist sympathizers who are helping to shape our foreign policy".

And so in the midst of that silly anti-communist hysteria which constituted an attack on free speech and freedom of association guaranteed by the Constution, on February 27, 1951, the 22nd  Amendment, was ratified establishing a two-term limit for Presidents.

However, it didn’t completely end the debate over term limits. In 1987, The New York Times reported that President Ronald Reagan “‘would like to start a movement’ to repeal the constitutional amendment that limits Presidents to two terms.”

But let's return to the situation in China.

In reviewing the move to eliminate term limits we first need recognize the words of the man around whom the issue is focused. In the blog entry Xi Jinping's strategy for a 21st Century China: With thoughtful Chinese characteristics a President tends his plan for 1.4 billion people for 2020 ...and 2035 ...and 2049  posted October 23, 2017, (and reposted below in this blog) it was explained:

This past week's 19th National Congress of the Communist Party of China sets the agenda for the future of China beginning with that all-important three-hour “work report” speech by Xi.

To provide insight into President Xi's zeal to assure a strong future for his country, it is important to remember that on February 11, 2009, while visiting Mexico, then Vice-President Xi spoke in front of a group of overseas Chinese noting that China's task was to keep "its 1.3 billion people from hunger."

And regarding the 2008 financial crisis affecting the Atlantic oriented world filled with complaints about Chinese foreign trade: "There are some bored foreigners, with full stomachs, who have nothing better to do than point fingers at us. First, China doesn't export revolution; second, China doesn't export hunger and poverty; third, China doesn't come and cause you headaches. What more is there to be said?"

This week President Xi Jinping reaffirmed that Beijing will never seek hegemony or engage in expansion "no matter what stage of development it reaches" and that "China will never pursue development at the expense of others' interests and its development does not pose a threat to any other country."

Since the 18th CPC Congress in 2012, in which Xi assumed his current position, China's "two centenary goals" were to
  1. build a moderately prosperous society by 2020, one year before the Party's 100th anniversary in 2021, and 
  2. develop China into a "fully modernized, socialist nation" by the 100th anniversary of the People's Republic of China in 2049.
To accomplish the goals, the "Four Comprehensives" came into being:
  1. comprehensively build a moderately prosperous society (put forward at the November 2012 18th Party Congress),
  2. comprehensively deepen reform (put forward at the November 2013 3rd Central Committee Plenum),
  3. comprehensively and strictly govern the Party (put forward at the early October 2014 summary meeting of the Mass Line Campaign), and
  4. comprehensively advance the rule of law (put forward during the late October 2014 4th Central Committee Plenum).
Additionally,  the "Five Development Concepts" from the 13th Five Year Plan (2016-2020) of innovation, coordination, green, openness and shared development were to be implemented.

This week Xi offered in his report a plan to "build on the foundation created by the moderately prosperous society" by implementing "a further 15 years of hard work to see that socialist modernization is basically realized" from 2020 to 2035, and then from 2035 to the middle of the 21st century "work hard for a further 15 years and develop China into a great modern socialist country that is prosperous, strong, democratic, culturally advanced, harmonious, and beautiful."

But Xi warned that it would be "no walk in the park. It will take more than drum beating and gong clanging to get there." He noted how China had "taken a driving seat in international cooperation to respond to climate change," additionally noting: "Only by observing the laws of nature can mankind avoid costly blunders in its exploitation. Any harm we inflict on nature will eventually return to haunt us. This is a reality we have to face!"

Also noted about those in Xi's government in that same post:

China is facing challenges which if covered by balanced reporting in the U.S. would seem familiar to Americans. Today, nearing the end of the 19th Congress, the Minister of Education Chen Baosheng, Minister of Civil Affairs Huang Shuxian, Minister of Human Resources and Social Security Yin Weimin, Minister of Housing and Urban-Rural Development Wang Menghui, and Minister of National Health and Family Planning Commission Li Bin held a joint news briefing.

Minister of Human Resources and Social Security Yin Weimin noted that despite the 3.95% registered unemployment rate in China's urban areas at the end of September "raising the capacity to employ workers overall still faces large pressures."

"We need to create 15 million jobs per year," Yin said, singling out China’s more than 8 million new university graduates that enter the job market each year as one group in need of additional employment.

Yin also said the low unemployment rate in the face of an overall slowdown in the economy was largely due to the new internet economy and entrepreneurship, adding that the ministry would actively support startups to help them “thrive”.

He reported "We've helped 8.8 million people in strained circumstances find jobs," adding that the total number of rural migrant workers increased from 263 million in 2012 to 282 million in 2016.

Now that you have a general sense of the basic challenges that have been embraced by Xi and his team - keep the now 1.4 billion Chinese people from facing hunger by having a decent economy which produces 15 million jobs a year - it is important to understand one piece of the historical experience of Xi and his team as explained in the post Xi's team to lead a 21st Century China: They want for their grandchildren a prosperous, strong, democratic, culturally advanced, harmonious, and beautiful life posted October 27, 2017, (and reposted below in this blog):

For the first time at the end of a National Congress of the Communist Party of China (CPC), all seven Standing Committee members of the Political Bureau were born after the founding of the People's Republic of China in 1949.

All were born and raised in the People's Republic of China. That means that none of them were WWII veterans and none were part of the Revolution. Instead, all were impacted as children from 1958 to 1962 by Chairman Mao's Great Leap Forward and as teens by Chairman Mao's Cultural Revolution from 1966 until 1976....

To understand the meaning of this history to these seven men, one only need to look at the experience of President Xi Jinping.

After the founding of the Communist state in 1949, Xi's father held a series of posts, including propaganda chief, vice-premier, and vice-chairman of the National People's Congress. Xi was born June 15, 1953. Based on normal expectations, Xi's future looked bright.

But when Xi was age 10, his father was purged from the Party and sent to work in a factory in Luoyang, Henan. In May 1966, Xi's "high school years" were cut short by the Cultural Revolution, when all secondary classes were halted for students to criticise and fight their teachers. Xi was age 15 when his father was jailed in 1968.

In 1969, lacking the protection of his father, Xi was sent to work in Yanchuan County, Shaanxi, in Mao Zedong's Down to the Countryside Movement. After a few months, unable to stand rural life, he ran away to Beijing. He was arrested during a crackdown on deserters from the countryside and sent to a work camp to dig ditches.

In 1981, the Party declared that the Cultural Revolution was "responsible for the most severe setback and the heaviest losses suffered by the Party, the country, and the people since the founding of the People's Republic" Welcome to adolescence.

Read the Wikipedia entry on Xi for more details (and the Wikipedia entry on Peng Liyuan his folksinger wife who until 2007 was more well-known). Also, in 2007 when it became evident that Xi was being groomed to assume the duties of his current job, an article appeared in The Guardian which helps provide some perspective from a British point of view: Most corrupt officials are from poor families but Chinese royals have a spirit that is not dominated by money.

In my TIME magazine dated March 12, there is an article "China steps closer to despotism as Xi becomes leader for life" by Charlie Campbell. First of all, even the article doesn't report Xi became "leader for life." He is in the same situation that American Presidents George Washington through Harry S. Truman were and which Ronald Reagan sought - the political clout of having no two-term limit.

But the article does assert the charge of current autocratic rule and future possible despotism. And it relate a similar assertion in The Economist How the West got China wrong, a long article which begins "Last weekend China stepped from autocracy into dictatorship." The problem is The Economist is a unbridled advocate of Neoliberal economics. "Greed is good" could be its motto.


What Does 21st Century History Tell Us About Capitalism

To begin a discussion about the results of capitalism, we need to be clear about one thing. Capitalism is an ideology.

Ideology is a comprehensive set of normative beliefs, conscious and unconscious ideas, that an individual, group or society has. In societies that distinguish between public and private life, every political or economic tendency entails ideology, whether or not it is propounded as an explicit system of thought.  In those societies an ideology is narrower in scope than the ideas expressed in concepts such as worldview, imaginary, ontology, and religion.

An ideology is a coherent system of ideas, relying upon a few basic assumptions about reality that may or may not have any factual basis. Ideas become ideologies (that is, become coherent, repeated patterns) through the subjective ongoing choices that people make, serving as the seed around which further thought grows. Ideologies are neither necessarily right nor wrong. Believers in ideology range from passive acceptance through fervent advocacy to true belief.

An excessive need for certitude lurks at fundamentalist levels in politics and religions. Thus an ideologue is comparable to a religious fanatic. And abusers can hide in ideological garb.

Capitalism is an ideology. Neoliberals are fanatics. And abusers use the nearly religious appeal of capitalism to suppress those who would have society prohibit their theft from others or their abuse of employees.

Reconsider this quote:

    The richest 10% of Russians own 87% of all the country’s wealth, according to the report, compared with 76% in the US and 66% in China. According to another measure, by VTB Capital, 1% of the Russian population holds 46% of all the personal bank deposits in the country.

The first truth is that in the 1990's capitalism was given unregulated freedom in Russia. Naturally that resulted in the all too familiar corruption that we have yet to eliminate in the United States when the government did not jail the bankers. In Russia no regulations were put in place and the natural result of unregulated capitalism - rampant inequality - is worse there than in the United States.

The second truth is that in the 21st Century capitalism was given a opportunity in China and that resulted in the kind of corruption that we have yet to eliminate in the United States when the government did not jail the bankers.

China under Xi, on the other hand, has started jailing corrupt capitalists. And China defines that corruption at least partly on how far away the behavior of a capitalist is from that of Bill Gates' efforts to do good in the world , as well as partly on how company money is misused to the personal benefit of the capitalist in question.

Now Neoliberals have no quarrel with Gates. But in their minds evil is epitomized by China's or any government preventing a capitalist from using any money he/she can grasp for their own personal benefit no matter what the rules are. Government rules are unacceptable. Theft is merely frowned upon if it gets too obvious.


The Neoliberal Attack on China's Xi

Those Western Neoliberals have geared up the spin machine (the one that has allowed them to take over American government) to attack China's less than enamored view of inadequately regulated capitalists. They launched a direct attack on Xi who understands that "terming out" means his objectives could be ignored through stalling. (If you think this isn't true, keep in mind that those same Western Neoliberals found no need to attack Putin's messing with elections in the West. They'll leave that up to fuming Democrats.)

There are also the not-so-obvious Neoliberal attacks on Chinese lack of enthusiasm for capitalists that are harder to see. For instance, there is a broad attack by U.S. security officials on three companies involved in telecom and cloud computing technologies - ZTE, Huawei Technologies, and Broadcom Limited.

Of course there should be concern about the fact that most of our technology is manufactured by foreign companies, mostly in China. But that barn door was left open many years ago. As will be discussed below, you can't buy a smart phone that doesn't have many critical parts made in China.

The recent attack from within secret U.S. government agencies raises suspicions.

Consider the attack on Huawei. From July to September 2017, Huawei surpassed Apple and became the second largest smartphone manufacturer in the world after Samsung. The attack came about when AT&T agreed to start marketing their phones along with all the other phones they offer.

The problem for Neoliberals is that Huawei classifies itself as a "collective" and does not refer to itself as a private company. Huawei is an employee-owned company.  But a report by Georgetown's Center for Strategic and International Studies, an arm of the U.S. government defense and security organization, says "Huawei emphasizes its employee-ownership to distance itself from allegations of government control."

Unfortunately, that exact wording and much more in the report came from a 2010 article that appeared in an Australian publication ITnews. And in the article that statement is actually a quote from a Hong Kong activist/banker capitalist, not from independent research. The report on other pages of the report seemingly contradicts much of that ITnews opinion.

What's additionally troubling here is that no objections have been raised regarding Lenovo products, including their Motorola Mobility cell phone products, despite its founding and ownership ties to the Chinese Academy of Sciences, the national academy for the natural sciences of the People's Republic of China (PRC). No one seems to care that its founder was a delegate to the 16th National Congress of Communist Party of China and a deputy to the 9th and 10th sessions of the National People's Congress, China's highest legislative body.

And, of course, no problems exist with the iPhone and other Apple products manufactured by Foxconn which also manufactures  BlackBerry, Kindle, Nintendo, Nokia, PlayStation, Wii, and Xbox products.

Foxconn is the world's largest contract manufacturer of electronics, with factories in several countries, mostly in mainland China where it employs 1.2 million people and is its largest private employer and exporter.

Foxconn is a stock exchange listed company with a regularly reported record of employee mistreatment, apparently making it the ideal company in the eyes of Neoliberal dominated American government security organizations.

The world's largest mobile phone maker by unit sales, Samsung, handles it's own manufacturing. Samsung Electronics has mobile phone manufacturing facilities in the six countries of Vietnam, China, India, Brazil, Indonesia, and Korea. The two plants in Vietnam, a country run by the Communist Party of Vietnam, produce nearly 300 million units. Reportedly Samsung was looking to cut their production in the two factories in China with a capacity of 150 million phones because of high labor costs while expanding their production in India.

This past year Taiwan-based Wistron Corporation started to manufacture the iPhone SE in India for sales in India but have poor sales. Apple's plans to get special government treatment and tax concessions in India have failed so far.

The world's four remaining one-party socialist states officially espousing communism are China, Vietnam, Cuba, and Loas. The fact is most phones used in the United States are made in China and Vietnam.

What will make the U.S. government security attack more suspect is that Chinese smart phone and electronics manufacture Xiaomi is also entering the U.S. market through various carriers' marketing. So far, it has not run afoul of the U.S. government security apparatus.

Of course, it is a new company with Founder, Chairman and CEO Lei Jun, who is also Chairman of Kingsoft, Chairman of UCWeb Inc., and Chairman of YY.com and is worth $6.8 billion.

Xiaomi 's most recent round of funding generated $1.4 billion. The company's  11 Investors include Ratan Tata, Morningside Group, DST Global, IDG Capital Partners, Qualcomm Ventures, Temasek Holdings and a few others.

That included an additional investment from Russian physicist and financial guru Yuri Milner’s investment group DST Global. Through DST Global, Milner is also an investor in Facebook, Zynga, Twitter, Flipkart, Spotify, Zocdoc, Groupon, JD.com, OlaCabs, Alibaba, AirBnB, WhatsApp, NuBank, Wish and many others. Milner's personal investments also include a stake in 23andMe, Habito, Planet Labs and others.

Milner is a darling of the American capitalist establishment. In September 2017 Forbes included Milner to the list of 100 greatest living business minds. Milner was named one of the World's Greatest Leaders by Fortune magazine in March 2017, was listed in the "Titans" category of Time magazine's 2016 Time 100. Foreign Policy magazine included Milner on its "Power List" – an inaugural list of the 500 most powerful people on the planet in May 2013. Milner was included in Bloomberg Markets' 2012 50 Most Influential list. In Fortune's 2010 list of the world's fifty most prominent businessmen, Milner was ranked 46th. That same year Russian business magazine Vedomosti recognized him as "Businessman of the Year".

When he was a doctoral candidate in particle physics in Russia he became interested in venture investment strategy. He subsequently received an MBA at the Wharton School of the University of Pennsylvania, Donald Trump's alma mater. In 2011, Milner bought a $100 million home in Los Altos Hills, California which, The Wall Street Journal reported, was the most ever paid for a single-family home in the United States.

But back to Xiaomi's CEO Lei Jun, a delegate of the National People's Congress, who was named Businessman of the Year by Forbes in 2014. Not only is his Xiaomi not employee owned, it is everything a Neoliberal could admire. In a 2015 interview with the BBC, Xiaomi's Vice President of International, Hugo Barra, Google's former product spokesperson for the Android team, noted that the company working hours are 9.30 in the morning to 9.30 in the evening, and that's just the regular working hours, plus one hour for lunch.

Yeah, let's worry about those phones made by employee-owned Huawei and start promoting phones made by Chinese and Russian billionaire capitalist-owned employee abuser Xiaomi. What could go wrong?

The problem is there are no smartphones manufactured in the U.S.A. for American companies. Yeah, we've got a potential security problem.

Sunday, February 25, 2018

As the California Democratic Party crumbles (continued)
  California Democrats abandon key elections to
  monied interests per 2010 Prop 14 voter wishes


As of today, the desire by California voters to turn elections over to monied interests was ratified by the California Democratic Party.

Concerned California voters can always be described as "well meaning" when they enable solutions to political problems.

For instance, as part of Progressive era reforms the voters in California counties were given initiative powers in 1893, in 1898 San Francisco and Vallejo became the first cities to adopt the initiative process, and in 1911 a new Progressive majority in the legislature gained the adoption of the initiative, referendum, and recall processes at both the state and local levels approved by voters in a special election on October 10, 1911.

Further, the solution to the problem of "machine politics" in political parties in 1909 wasn't for the 2+ million Californians to get more involved, but rather it was to establish a direct party primary system.

Unfortunately, to understand what's happening you have to understand some California history and the people with the least imagination possible - Progressives. So this post will be long. And to make clear just how unlikely Progressives will anticipate the obvious, we'll begin by exploring the initiative process before taking up the process of nominating candidates for office.

When monied special interests discovered the initiative process

Monied special interests began to explore how to use the initiative process after the end of WWII as the population had increased five-fold since 1911.

A 1956 initiative regarding changes in the state regulation and taxation of oil and gas production was sponsored by one group of oil companies that sought to make their business more profitable and opposed by another group of oil firms that preferred the existing system. Campaign funds spent by both sides totaled over $5 million ($46 million in today's dollars). Almost as expensive was the gargantuan 1958 labor-capital conflict over a "Right to Work" (open shop) initiative sponsored by employers.

The California initiative process gave rise to a new breed of campaign professional: the paid petition circulator. With signature requirements doubling nearly every decade, citizen groups were unable to rely solely on volunteer effort. As early as World War I, Joseph Robinson was offering his organizing services to initiative proponents. His firm, which paid its employees a fee for each signature brought in, had a virtual monopoly on the petition business from 1920 to 1948 - a period during which, Robinson estimated, his firm was involved in 98 percent of the successful statewide initiative petition drives. And so monied interests took notice of the basic flaw in the Progressives' thinking.

California liberals discovered just how flawed the initiative process of letting voters be "lobbied" by expensive advertising was when two measures passed by voters in 1964. The first repealed the Rumford Fair Housing Act, which the legislature had passed, and Governor Brown had signed, in 1963. The second banned cable television. That measure was sponsored by theater owners who, fearing competition, advertised the initiative as guaranteeing "free television" and eliminating the specter of "pay television." (Both 1964 initiatives were later overturned by the courts as unconstitutional.)

California's most famous initiative was Proposition 13, approved by voters in 1978. Much like the 2017 income tax reform, the measure gave long-lasting significant tax relief to major corporations and wealthy land-owning families while giving limited-duration tax relief to middle-class homeowners. And yet, just like the 2017 income tax reform, Prop 13 remains enshrined for most middle-class voters despite the fact that the largest beneficiaries are corporations like Chevron which is  is saving over $100 million a year in property taxes statewide while the owners of recently purchased homes get no benefits.

And in a 2010 the voters approved Proposition 14 finally removing the parties from directly competing against special interest money in elections.


How the "top 2" primary will benefit monied interests

We know, in California at least, that the voters' solution to the problem of machine politics and monied interests in political parties is to give the monied interests more direct control over electing officials.

As explained above, the solution to the problem of "machine politics" in political parties in 1909 wasn't for the 2+ million Californians to get more involved, but rather it was to establish a direct party primary system. That system was modified - tweaked, really - several times by the voters over the years because there were always some dissatisfied voters. But it was basically replaced in 2010 by Proposition 14.

Proposition 14 was submitted to the voters as a proposal to amend Sections 5 and 6 of Article II of the California State Constitution relating to elections. It is officially known as the Top Two Primaries Act.

It was authored by Republican State Senator Abel Maldonado as Senate Constitutional Amendment 4 of the 2009–2010 Regular Session (Resolution Chapter 2, Statutes of 2009). It was based on a 2008 proposal drafted by the Independent Voter Project, an organization that has questionable financial ties related to Republicans Charles  Munger, Jr. and Vigo G. Niesen, Jr. It was passed in the State Senate by a vote of 27 to 12 and in the State Assembly by a vote of 54 to 20.

The proposition was publicly backed by Governor Arnold Schwarzenegger as part of a deal in which Maldonado agreed to support his proposed 2009–2010 state budget. It was opposed by political parties.

Maldonado was appointed Lieutenant Governor by Schwarzenegger in 2010. Schwarzenegger, who could have never been nominated in either political party, was elected outside the partisan primary system as a Republican when Governor Gray Davis was recalled in 2003.

With the 2010 adoption of the Top Two Primary pursuant to Proposition 14, all candidates running for an office are listed on one ballot, regardless of their party preference. A candidate’s party has no impact on how the election is conducted or who is allowed to advance to the General Election. Instead, candidates go on to a run-off election based solely on how many votes they receive in the Primary.

The two candidates who receive the most votes are "voter nominated" and qualify for the general election, hence the name “Top Two.”

A candidate nominated for a voter-nominated office at the primary election is the nominee of the people and not the official nominee of any party at the following general election. A candidate for nomination or election to a voter-nominated office shall have his or her party preference, or lack of party preference, reflected on the primary and general election ballot 

But that party preference designation is selected solely by the candidate and is shown for the information of the voters only. It does not constitute or imply an endorsement of the candidate by the party designated, or affiliation between the party and candidate, and no candidate nominated by the qualified voters for any voter-nominated office shall be deemed to be the officially nominated candidate of any political party.

This all sounds very democratic, no party shenanigans screwing with the interests of the brilliant voters? So how does this all mean that the voters have successfully turned elections over to monied interests?

The answer is simple. If the parties aren't actively backing candidates in the primary, the money will come from somewhere. Nonetheless, the California Democratic Party does endorse some candidates, so that has to mean something, right?


What happened in San Diego this weekend?

Looking at the list of the 2018 California Democratic Party (CDP) "endorsements", or many cases lack thereof, the first question is "does it matter?" Well, maybe.

A study was done on the 2012 Primary, the first Top Two, regarding the outcome of which the authors state:

    Depending on how we ran the analysis, we found an endorsement effect of somewhere between seven and 15 points.
    This isn’t necessarily an enormous effect. A particularly skilled or lucky candidate could beat the party’s preferred one, but not easily. What this study does show is that those who receive this one endorsement get a substantial advantage in the primary election, and this is an endorsement worth fighting for.

The problem is that this study was done on the first Top Two primary. The 2018 primary will be the third. The voters are getting used to the idea that partisan affiliations may not be very important or even undesirable.

And the curious thing is that the California Democratic Party has chosen to not endorse in key races where it could matter, as well as in some important races where it probably won't matter.

From the viewpoint of the press, the most important thing that happened in San Diego this weekend was the failure of the CDP to endorse incumbent Democratic U.S. Senator Dianne Feinstein. There was no endorsement for this position.

What the voters might find interesting is who has filed to run in the Top Two Primary for that seat:
  • Senator Dianne Feinstein, Incumbant, Democratic
  • State Senator Kevin de León, Democratic
  • Eugene Patterson "Pat" Harris, Democratic
  • Alison Hartson, Democratic
  • David Hildebrand, Democratic
  • John "Stuttering John" Melendez, Democratic
  • Douglas Howard Pierce, Democratic
  • Steve Stokes, Democratic
  • Michael Vincent "Cal Songmaker" Ziesing, Green
  • Derrick Michael Reid, Libertarian
  • Donald R. "Don" Adams, Republican
  • Gary Lynn Coson, Republican
  • Erin Cruz, Republican
  • John Anthony Estrada, Republican
  • Former Assemblyman David Hadley, Republican
  • Timothy Charles Kalemkarian, Republican
  • Caren Dianna Lancona, Republican
  • Jazmina Saavedra, Republican
  • Stephen James Schrader, Republican
  • Paul Allen Taylor, Republican
  • Jerry Leon Carroll, No Party Preference
  • Michael Eisen, No Party Preference
  • Tim Gildersleeve, No Party Preference
  • Charles Junior Hodge, No Party Preference
  • Richard Thomas Mead, No Party Preference
  • Lee W. Olson, No Party Preference
  • Clifton Roberts, No Party Preference
  • Ling Ling Shi, Unaffiliated
With that large a lineup, it seemed an endorsement might have helped. And, in fact, it might have had Kevin de León been able to get it. He received 54 percent of the vote, just short of the 60 percent threshold to capture the Democratic endorsement, while Feinstein received only 37 percent.

The thing is, both have been running since October. At the end of the year de León had raised about $500,000 while Feinstein had nearly $10 million on hand, including $5 million of her own money.  Also a Public Policy Institute of California poll released this month showed Feinstein leading among likely voters 46 percent to 17 percent.  Nearly two-thirds of respondents had never heard of de León or didn’t know enough about him to form an opinion.

The Party also did not endorse for the Governor, Lieutenant Governor, and Attorney General offices. Unlike the U.S. Senate seat, the Governor's race is not clear cut. Here is a list of who has filed for the seat with the CDP Convention delegate vote share for endorsement (again, 60% needed):
  • Lieutenant Governor  Gavin Newsom, Democratic, 39%
  • Treasurer  John Chiang, Democratic, 30%
  • Former Public Instruction Superintendent Delaine Eastin, Democratic, 20%
  • Former Los Angeles Mayor Antonio Villaraigosa, Democratic, 9%
  • Akinyemi Agbede, Democratic
  • David Asem, Democratic
  • Ramon Barajas, III, Democratic
  • Michael Robert Bracamontes, Democratic
  • Juan Bribiesca, Democratic
  • Ted Crisell, Democratic
  • Harmesh Kumar, Democratic
  • Former Manteca City Councilman Albert Mezzetti, Democratic
  • Amanda Renteria, Democratic
  • Klement Tinaj, Democratic
  • Former state Controller Steve Westly, Democratic
  • Christopher Carlson, Green
  • Veronika Fimbres, Green
  • Josh Jones, Green
  • Zoltan Istvan, Libertarian
  • Patrick Wheat, Libertarian
  • Nickolas Wildstar, Libertarian
  • Michael Bilger, No Party Preference
  • Andy Blanch, No Party Preference
  • David Bush, No Party Preference
  • Peter Crawford-Valentino, No Party Preference
  • Shubham Goel, No Party Preference
  • Grant Handlik, No Party Preference
  • Robert Jacques, No Party Preference
  • Analila Joya, No Party Preference
  • Joshua Laine, No Party Preference
  • Michael Podkomarka, No Party Preference
  • Timothy Richardson, No Party Preference
  • Boris Romanowsky, No Party Preference
  • H. Fuji Shioura, No Party Preference
  • Lindsey Neil Shortland, No Party Preference
  • Scot Sturtevant, No Party Preference
  • James Tran, No Party Preference
  • Frederic Prinz von Anhalt, No Party Preference
  • Gloria LaRiva, Peace And Freedom
  • Assemblyman  Travis Allen, Republican
  • Daniel Amare, Republican
  • Stasyi Barth, Republican
  • John-Leslie Brown, Republican
  • John Cox, Republican
  • Brian Domingo, Republican
  • Yvonne Girard, Republican
  • Rosey Grier, Republican
  • Cole Harris, Republican
  • Tulare County Supervisor Allen Ishida, Republican
  • Peter Y. Liu, Republican
  • Jacob Morris, Republican
  • Robert Newman, II, Republican
  • former Congressman Doug Ose, Republican
  • Laura Smith, Republican
  • John Zuber, Republican
Obviously, the California Democratic Party is meaningless in this contest. Every candidate is going to have to find his or her own funding, aka donors.

This situation extends further down the line.

As noted in the previous post, Party officials were concerned about too many candidates for certain previously Republican Congressional seats where the incumbent is not running. For instance in the 49th District where Congressman Darrell Issa is not running, the Party failed to make an endorsement - the only consolation is the along with the five Democrats, there are seven Republicans who have filed to divide up the vote on the other side. (There is also a Peace and Freedom Party candidate.) A similar situation exists in the 39th District.

In three other Districts - 1, 10, and 25 - where the incumbent Republican will be running the Democrats failed to endorse a candidate in the Primary.

In all of these cases, to end up in the top two Democrats will need to compete to find their own funding and supporters.

In five of the 80 State Assembly seats up for election, there was no endorsement, and in two others no Democrat has filed to run. In three out of 20 State Senate seats up for election there was no endorsement and in one no Democrat has filed.

Obviously, in all these election contests "outside" money could begin filling the vacuum left behind by an absent party. This was the year Democrats were going to reassert themselves nationally. But in California the Party is absent in the race for U.S. Senate, Governor, Lt. Governor, Attorney General, and numerous down-ballot contests.

In the previous post the prediction is made that it will take the 2018 election cycle and two more before the role of political parties in California as we know it will be eliminated. In the election of 2024, the State's voters will experience a new political system of competition.

Saturday, February 24, 2018

As the California Democratic Party crumbles...
  California's Democrats meet to create a winning
  year, only being anti-Trump may not be a panacea

This morning the California headline from Politico is Democrats fear California crack-up while the Los Angeles Times tells us California Democrats agree they have too many candidates for Congress. What to do about them is the problem.

Some 3,400 delegates to the 2018 California Democratic Party State Convention in San Diego will vote Saturday on endorsements for governor, U.S. senator, other statewide offices and the Board of Equalization.

The three-day convention began Friday with a series of caucus meetings, workshops  and panel discussions.

The delegates will adopt the 2018 party platform Sunday and ratify endorsements for congressional and legislative races made earlier at pre-endorsing conferences and endorsement caucuses.

It's a big deal. That Convention includes about 1,000 more delegates than attended the Republican National Convention in 2016. Those 3,400 delegates hope to have an impact on our government.

Unfortunately it's also a really big deal because California Democrats are confronted with the potential fallout of the "Top Two" primary system, such as too many candidates. How could you have too many candidates?

As the LA Times article explains:

    Democratic activists in Orange County threw an impromptu party with cake, party hats and singing after Republican Rep. Darrell Issa announced he was retiring.
    But the exhilaration over the opportunity to capture a Republican congressional seat quickly turned to political panic.
    There are so many Democrats running for Congress in some districts that they could split the votes in the June 5 primary and send two Republicans to the November election, thanks to California's top-two primary system. Democrats need 24 seats to reclaim the majority in the U.S. House — and are putting money and attention toward 10 California contests. In other words, every race matters.
    The volume of Democratic candidates is a particular problem in Issa's 49th Congressional District in San Diego and south Orange County.
    On a recent phone call with 300 local activists, organizers fretted over the entry of a fifth Democrat into the race and rumors about a sixth.

In that situation it is likely the Republicans will likely divide up 50%+ of the vote in the 2018 Primary Election but there are currently seven Republican candidates who have filed. One person has field as a Peace and Freedom Party candidates. And five Democrats have filed. So 13 have filed!

It is conceivable that none of those five or six Democrats will be on the General Election ballot. Far fetched? Not really. If one Democrat ran in the Primary, that Democrat would be on the General Election ballot. Five or six serious Democratic candidates would pretty much water down the vote.

As discussed here in May 2016:

    But don't stress. We Californian's figured out what "the establishment" is - POLITICAL PARTIES. And as usual we are as far out in front of the movement as we can be. There are no party primaries in California except for U.S. President, which we can't control, and for traditional county-level party central committees, which are quaint useless groups anyway.
    Now, it is true that California for over a century had many local and a few state "non-partisan" office elections in which no political party is indicated for any candidate. But on June 8, 2010, California voters approved Proposition 14, the Top Two Candidates Open Primary Act, which allows all voters to choose any candidate for a statewide or state and federal legislative office regardless of the candidate’s or voter’s political party preference.
    The goal was to get the parties out of the election system.
    It took a few years for things to begin to "adjust" to this change. But apparently by 2016 the voters have gotten what they want....
    ...There are 34 candidates for U.S. Senate this year. Before Prop 14, in a U.S. Senate primary a voter had to select from a few candidates seeking nomination in his/her party. Now they are confronted with 34 who don't have to report to any party members after getting elected.
    And it may relegate political parties to the landfill of history, which could be a serious problem.

Four months later it was further reviewed here:

    But the focus here is the potential demise of the two political parties. Guess what - Bernie Sanders doesn't belong to either party - effectively he is an independent who, to use the Pew Study phrase, "leans Democratic" like the Millennials. So Millennials could relate to him and they don't relate to the political parties.
    I'm a Californian. California is the first state to eliminate the partisan primary.
    Also here in California, Governor Jerry Brown is 78, Senator Dianne Feinstein is 83, Senator Barbara Boxer is 75, and our most famous member of Congress Minority Leader Nancy Pelosi is 76. The Chairman of the California Democratic Party former Congressman John Burton is 83.
    In California back in 2012, Millennials were 29% of the population, Gen-X'ers wer 21.8% of the population, Baby Boomers were 23.4% of the population, and the Silent Generation was 9.4% of the population. All people who hold power in the Democratic Party are of the Silent Generation.
    That is embarrassing - we have a non-representative government - literally a gerontocracy meaning per Wikipedia "a form of oligarchical rule in which an entity is ruled by leaders who are significantly older than most of the adult population."
    Folks in other states should get to know this logo: .
    Slowly that half of the Millennials who do not consider themselves part of either community known as the Democratic Party and the Republican Party will take control of who gets to be on the General Election ballots in California - the largest state in population with the largest number of electors in the Presidential Electoral College. At some time in the future the top two candidates for a statewide office will both not identify with a party.
    The California Democratic Party is only nominally in control of the election to replace the retiring U.S. Senator Barbara Boxer because both General Election candidates are Democrats. But their party affiliation predates the California Top Two Primaries Act.
    This is the first statewide election under the "top 2" system and the party system is starting to crack. The California Republican Party has essentially collapsed.
    The "top 2" system has forced a division within the Democratic Party that erupted publicly when Democratic President Barack Obama endorsed Democrat Attorney General Kamala Harris, a black woman. Her opponent Latino Democrat Congresswoman Loretta Sanchez' response should be a warning to the Democratic Party that the biggest controversy in the future will be the Party itself....

The following June it was noted here emphasis added:

    Democratic Senator Dianne Feinstein, who will be 85 next year at 2018 General Election time, is indicating she will run again. Should she win, she will be 91 when the term ends. But how that all plays out in our nonpartisan blanket primary system will be interesting.
    One possibility is that the Neoliberal political machine could disrupt the 2018 nonpartisan blanket primary for Feinstein's Senate seat, perhaps funding a run by a younger non-partisan candidate who could literally run on a platform challenging the power of the federal government now controlled by Republicans.
    Such an effort might not succeed in 2018. The California Democratic Party still has access to money and people on the ground.
    But Party Chairman John Burton retired this year and the process of replacing him has sown discord - about half of the active California Democrats are disgruntled that no real change has occurred. U.S. Senator Barbara Boxer retired and the contest to replace her has left an open sore, particularly among Southern California Hispanic Democrats. Governor Jerry Brown is termed out and will retire at the end of 2018. That will reduce the gerontocracy members of the party leadership to House Minority Leader Congresswoman Nancy Pelosi who is under attack at the national level and Senator Dianne Feinstein who is about as conservative as a California Democrat can get.
    So to repeat myself, here in Democratic California we are likely three general elections (seven years) away from Democratic voters and elected officials understanding the full impact of our nonpartisan blanket primary system. The traditional party system will be meaningless, leaving California Democrats, like California Republicans, with little partisan power within the state or nationally.
    What is not reported in the press is that Burton, Boxer, Brown, Pelosi, and Feinstein are essentially "Bay Area" white people while the vast majority of Californian's live south of the Tehachapi Mountains and are the majority of Californian's are not white.
    California Democrats have hidden the meaning of the geographical split. The Bay Area generally is far more inclined to cultural liberalism. Once the Southern California influence gains strength, Hollywood notwithstanding, at the national level the meaning of being a California Democrat will change. And it was California that gave Hillary Clinton here majority in the national popular vote when the California Democratic Party was controlled by a white gerontocracy.

This November we will vote in the first of those "three general elections" likely necessary before all "Democratic voters and elected officials [understand] the full impact of our nonpartisan blanket primary system."

What the 2018 California political process beginning this weekend will mean to future government policy is anyone's guess. But it will be interesting to this delegate to the 1964 California Democratic Council Convention held during the weekend of February 22, 1964 (yeah, that's 54 years ago). That too was a disruptive time. But political disruption doesn't guarantee a good outcome.

to be continued

Wednesday, February 21, 2018

The Anthropocene is not real
  How arrogance of human-importance has allowed
  climate scientists to trample chronostratigraphic
  science creating fake news for political purposes

Donald Trump did not invent the arrogance of self-importance endemic to humans, despite the fact that so many people find him irritating.

The truth is that human arrogance of self-importance is always irritating. Sometimes it's only about the self-importance of one person. Other times it becomes a group arrogance of self-importance. But it seems we are surrounded by an arrogance species-importance, of human-importance!


The Arrogance of Human Importance Infects Climate Scientists

During the last 20 years of the 20th Century, we began seeing climate change activists start to take on that group arrogance of self-importance. Then, beginning right at the Turn of the Century, a group of scientists within those climate change activists started embracing the arrogance of  human-importance using climate change as an argument.

This group of pop-science advocates are pushing the Earth's age along into what they call the "Anthropocene Epoch."

They bypass the stratigraphers (scientists who study rock layers) who, over many decades through careful extensive study and extensive debate within the International Union of Geological Sciences (IUGS), established the Earth’s time scale system.

When challenged, these pop climate science advocates offer the best pop-science answer ever as explained this 2013 Smithsonian article What Is the Anthropocene and Are We in It?:

    Many stratigraphers (scientists who study rock layers) criticize the idea, saying clear-cut evidence for a new epoch simply isn’t there....
    Some Anthropocene proponents concede that difficulty. But don’t get bogged down in the mud, they say, just stipulate a date and move on. ...Will Steffen, who heads Australia National University’s Climate Change Institute...says the new name sends a message: “[It] will be another strong reminder to the general public that we are now having undeniable impacts on the environment at the scale of the planet as a whole, so much so that a new geological epoch has begun.”
    To Andrew Revkin, a New York Times reporter (now blogger) who suggested a similar term in 1992 that never quite caught on (“Anthrocene”), it’s significant that the issue is being debated at all. ...He says. “We’re the first species that’s become a planet-scale influence and is aware of that reality. That’s what distinguishes us.”

In other words, ignore scientific method because science indicates that within one scientific field - climate science -we humans are important right now. 

Sometimes we humans need to step back from the arrogance precipice and acknowledge just how truly unimportant we are in the big picture.

Of course, I have to offer an admonishment to the reader - don't read further if  you have absolute beliefs that recognize a human superiority over the Earth and all its creatures or if your thing is Genesis 1:26-31 of the Bible which clearly expresses this arrogance:

    Then God said, “Let Us make man like Us and let him be head over the fish of the sea, and over the birds of the air, and over the cattle, and over all the earth, and over every thing that moves on the ground.”
    And God made man in His own likeness. In the likeness of God He made him. He made both male and female. And God wanted good to come to them, saying, “Give birth to many. Grow in number. Fill the earth and rule over it. Rule over the fish of the sea, over the birds of the sky, and over every living thing that moves on the earth.”
    Then God said, “See, I have given you every plant that gives seeds that is on the earth, and every tree that has fruit that gives seeds. They will be food for you. I have given every green plant for food to every animal of the earth, and to every bird of the sky, and to every thing that moves on the earth that has life.” And it was so.
    God saw all that He had made and it was very good. There was evening and there was morning, the sixth day.

At this point those of us who don't believe in human superiority over the Earth and all its creatures need to review some boring hard science.


About Geological Time Spans and Life

More than 99% of all species of life forms that ever lived on Earth are extinct. Although the number of Earth's catalogued species of lifeforms is between 1.2 million and 2 million, the total number of species estimates range from 8 million to as high as 1 trillion. The oldest physical traces of life date back 3.7 billion years. Consider this:


The current geological era, covering the period from 66 million years ago to the present day, is called The Cenozoic Era.

It is also known as the Age of Mammals by the arrogant because they think large mammals dominate it.

Apparently not existing in their world are arthropods, despite the fact that by nearly any measure, arthropods constitute the most successful Phylum in the Animalia Kingdom on the planet:
  • over a million arthropods species have been scientifically described as compared 5,416 species of mammals, 
  • arthropods make up more than 80% of all described living animal species, 
  • their evolutionary ancestry dates back to the Cambrian period of the Paleozoic Era, 
  • some arthropods, such as the gregarious German cockroach, have an elaborate social structure involving common shelter, social dependence, information transfer and kin recognition, and
  • some arthropods, unlike most animals, are very successful in dry environment habitats which likely will expand due to climate change.

They are spiders, insects, centipedes, mites, ticks, lobsters, crabs, shrimp, crayfish, krill, barnacles, scorpions and many, many others. A few are a direct threat to mammals (including humans) with their poisonous venom. Many are an indirect threat because they carry infectious disease-causing microbes. Many others are food sources.

But I've digressed, so let's return to the geologically-determined layers of time.

The continents moved into their current positions during this Cenozoic era. Cenozoic, means "new life," derived from Greek. The Cenozoic is divided into three periods: the Paleogene, Neogene, and Quaternary; and seven epochs: the Paleocene, Eocene, Oligocene, Miocene, Pliocene, Pleistocene, and Holocene.

Notice on that "clock" above at about 11:59 pm the "First Hominins" label with its yellow line adjacent to the midnight black line denoting the Formation of the Earth. That entire "time" width of the yellow line is represented on the table to the right. We are currently in the Holocene Epoch of the Quaternary Period of the Cenozoic Era which is 0.00000257% of the time the Earth has existed, or if you prefer 0.000031% of the time land plants and animals have existed on Earth.

And if you want to assert that modern humans are causing environmental changes that could destroy the Earth or life on Earth, consider this graph:


As noted on the graph, the Oxygen Crisis caused the most significant mass extinction in the history of the Earth. But don't get confused. It wasn't a shortage of oxygen to breath. It was the introduction of breathable oxygen in the atmosphere the killed off most existing life.

Yet somehow, life on Earth made it despite that toxic element oxygen, adapting to thrive in the presence of an oxygenated atmosphere.

It is not life as creatures back then would recognize. Instead, most recently it is you and me that resulted. Again, the time modern humans have existed on Earth cannot be accurately represented on the clock because it is so small and insignificant. Heck, even the time modern humans have existed relative to the existence of land plants and animals is also too small and insignificant to be relatively represented properly.

In other words, human existence is insignificant in the big picture. In terms of Earth time the Holocene Epoch of the Quaternary Period of the Cenozoic Era has not existed long enough to have even one named Stage/Age.

But these pop-science advocates say the Holocene Epoch ended because of human activity. Last year an article in Forbes declared Humanity Officially Started Ruining The Planet In 1965 -- Welcome To The Anthropocene Era and this month we're offered articles such as 'Loneliest tree' records human epoch telling us that nuclear testing in the 1950's was the defining moment because of Carbon-14 in a ring of a living tree.

How this relates to established rock layers isn't clear, but as these pop-science climate change activists tell us "don’t get bogged down in the mud" of established scientific method because there is a political agenda based on science that needs to be advanced.


Homo sapiens sapiens, Indirect Energy, and Climate Change

It is true that humans as a life species are starting to have a measurable impact on climate which may create a geological record comparable to that found in the beginning of an ice age. This started at the beginning of what generally is referred to by social scientists as the Industrial Age, when humans began using indirect energy sources to accomplish physical work and, more recently, mental tasks.

Archeology and anthropology scientists recognize a "Neolithic" age prior to the current age. It is a period of about a dozen millenniums. During this time the wide-scale transition of many human cultures from a lifestyle of hunting and gathering to one of agriculture and settlement made an increasingly larger human population possible. Archaeological data indicates that the domestication of various types of plants and animals happened at the beginning of the Holocene Epoch in separate locations worldwide.

Initially in this review of the Neolithic Age of the Holocene Epoch we need to acknowledge the following:
  • Tools in rudimentary form were used in the preceding Pleistocene Epoch by numerous members of the hominid family. But as we Homo sapiens sapiens now acknowledge, birds and other animals started using tools even earlier. The use of the wheel did not arise until the Holocene. Nonetheless, tools use is not what sets this age apart from the early Holocene Epoch.
  • Energy in the form of fire was "domesticated" in the Pleistocene period by Homo erectus beginning some 600,000 years ago. 
  • To achieve the transition to agriculture and settlement, humans first used their own bodies and subsequently those of domesticated animals for energy to create those Neolithic communities which rose to civilizations.
That last fact is what we must understand as the Neolithic Age direct use of energy - meaning humans first utilized their own bodily energy to get physical and mental work done, then started using the bodily energy of domesticated animals.

The indirect use of energy in the form of heat to create steam to drive engines for mechanical work did not begin until 400 years ago. It is only after that time that the use of internal combustion engines, electricity, nuclear energy, and other forms of energy not from living lifeforms became widespread to accomplish physical and, more recently, mental tasks.

In effect, we humans have moved on to a new age - what I would call the Energaic Age (see table to the right) in recognition of the impact of concentrated indirect uses of large quantities of energy sources.

In the process, which is only 400 years old, we see some unanticipated side effects that could destroy the current version of human civilization or, at maximum impact, end The Quaternary Period or The Cenozoic Era.

However, that is unlikely. We Homo sapiens sapiens are beginning to
  1. adapt to the inevitable impacts of climate change such as through the creation of barriers to the rising oceans while planning how to implement relocation of people over a long period and 
  2. alter the selection of energy sources we use to accomplish physical and mental tasks in order to prevent a catastrophic version of human induced climate change.
I am an aging member of the subspecies Homo sapiens sapiens living in the early stages of what I suggest we call the Energaic Age in the Holocene Epoch of the Quaternary Period. In my opinion if scientists want to maintain credibility they should quit trying to invent some "Anthropocene Epoch" just to separate ourselves from the ancient Sumerians for the purpose of communicating a political message.

Yes, over the next millennium there is a chance that something like a huge release of methane into the atmosphere from the melting Arctic permafrost could stimulate a New Oxygen Crisis. One can hope that sufficient mental tasks and physical work can be accomplished over the next two centuries to avoid such a New Oxygen Crisis.

In the meantime, I'm going to step outside and commune with some Sequoia sempervirens (redwood trees) which, since their relatives were around in the Mesozoic Era, can show my species how to survive. It helps maintain some sense of perspective on the chronological meaning of human existence.

Thursday, February 15, 2018

It's just another war we started
  About that Russian election interference problem,
  Americans doth protest too much, methinks

On occasion indignant Americans need to be called on their complaining, particularly when they protest too much either out of ignorance or to establish a lie as truth.

The United States is the only nation to use atomic weapons in a targeted attack against another nation. Of course, many say that is ancient history and related to ending a world war. So how about this.

In the 21st Century the United States became the nation that first engaged in cyberwarfare in a targeted cyberattack against the energy and defense infrastructure of another nation using a computer virus called STUXnet.

The details of the attack and how the STUXnet virus works is a long and complicated story. You can read more about it in the 2014 book Countdown to Zero Day: Stuxnet and the Launch of the World's First Digital Weapon written by Oakland, California, freelance journalist Kim Zetter who was a WIRED magazine senior staff writer at the time. In a 2014 WIRED article by Zetter introducing the book we were told:

    In January 2010, inspectors with the International Atomic Energy Agency visiting the Natanz uranium enrichment plant in Iran noticed that centrifuges used to enrich uranium gas were failing at an unprecedented rate. The cause was a complete mystery—apparently as much to the Iranian technicians replacing the centrifuges as to the inspectors observing them.
    Five months later a seemingly unrelated event occurred. A computer security firm in Belarus was called in to troubleshoot a series of computers in Iran that were crashing and rebooting repeatedly. Again, the cause of the problem was a mystery. That is, until the researchers found a handful of malicious files on one of the systems and discovered the world's first digital weapon.

Most Americans didn't follow the extensive discussion in the technical press and even the more mainstream press like Forbes in 2010, and like Donald Trump, didn't and won't read the book.

So, in 2016 Showtime Documentary Films released producer/director Alex Gibney's Peabody Award winning Zero Days which was the first time that the complete story of the phenomenon was captured on film. It was intended to be a call-to-action for countries and citizens to address the issue of cyberattacks and to start public discourse on what could happen if, and when, diplomacy fails.

Of course documentary films are not entertaining enough for most, so Gibney and HBO are working on a miniseries which maybe more Americans will watch. Gibney recently commented on the U.S. government engaging in a new kind of warfare against other nations in peacetime:

    It sent another kind of message, too, which is, the United States and Israel will use weapons and attack people first, and that sets a different kind of precedent for other countries, as well: Why shouldn’t we do the same? You can say that what we did with Stuxnet was an undeclared act of war—it was an attack on critical infrastructure in a time of peace. That sets a terrible legal precedent. Right now, the norm in cyber is, do whatever you can get away with. Well, if you’re an average citizen, that’s not a very comforting idea.

That is particularly true where people live in an open society and elect their government. Here in the United States there is a lot of complaining going on about the Russians interfering in our elections through a kind of cyberwarfare. Really? We in the United States are complaining? Being well-informed citizens of a democratic society already know we started the war. Sure we do.

And being such citizens  we know we each have given in extra funding to our local and state and federal officials annually at least as much as we spend on smart phones and related service protect us from cyberwarfare. We do this because we value secure elections more than anything. Sure.

We are already losing this war by our complaining.

But there an ongoing misuse of power related to this story.

Kaspersky Lab, one of the leading antivirus companies, has been the target of those who are revel in our war effort. Companies such as Kaspersky are judged in part on how many viruses they are first to detect, and Kaspersky was considered among the best. But with its success came controversy. Some accused Kaspersky of having ties with the Russian government—accusations the company has denied. As noted in the 2015 WIRED article by Zetter Kaspersky Finds New Nation-State Attack—In Its Own Network:

    Researchers at Kaspersky Lab in Russia have discovered yet another new nation-state attack attributed to members of the infamous Stuxnet and Duqu gang. But this time the perpetrators were hiding in plain sight—inside the security firm's own networks.
    Kaspersky wasn't the only victim of Duqu 2.0. Based on data the company collected from its customers, the attackers also struck a series of hotels and conference venues, each of them a location where members of the UN Security Council met in the past year to negotiate Iran's nuclear program. That program is a recurring interest for the attackers behind the Duqu code, which shouldn't come as a big surprise. The US and Israel reportedly were behind Stuxnet, but various researchers have long suspected that Israel alone was behind the Duqu code. The focused spying on the nuclear negotiations, from which Israel was excluded, would seem to support this theory.
    Additionally, the security firm Symantec, which obtained samples of Duqu 2.0 provided by Kaspersky, uncovered more victims of the targeted attack code among its own customers, and found that some of these victims were in the US—a fact that would be cause for even more concern if the attack were perpetrated by the US government.

When Stuxnet went wild and similar virus attacks started to appear widespread, Kaspersky started an investigation and soon concluded that the code was too sophisticated to be the brainchild of a ragtag group of black-hat hackers. Kaspersky Lab concluded that the sophisticated attack could only have been conducted "with nation-state support." The worm had infected a nuclear powerplant in Russia.

In 2015, Kaspersky Labs noted that the Equation Group had used two of the same zero-day attacks, prior to their use in Stuxnet, and commented that: "the similar type of usage of both exploits together in different computer worms, at around the same time, indicates that the Equation Group and the Stuxnet developers are either the same or working closely together".

The Equation Group, classified across the world as an advanced persistent threat, is the code name for the Tailored Access Operations (TAO) unit of the United States National Security Agency (NSA). Kaspersky Labs describes them as one of the most sophisticated cyber attack groups in the world and "the most advanced ... we have seen", operating alongside but always from a position of superiority with the creators of Stuxnet and Flame. Most of their targets have been in Iran, Russia, Pakistan, Afghanistan, India, Syria, and Mali.

Kaspersky Lab ranks fourth in the global ranking of antivirus vendors by revenue. It was the first Russian company to be included into the rating of the world’s leading software companies, called the Software Top 100 (65th on the list published in 2016). According to Gartner, Kaspersky Lab is currently the third largest vendor of consumer IT security software worldwide and the fifth largest vendor of Enterprise Endpoint Protection. Kaspersky Lab has been named a "Leader" in the Gartner Magic Quadrant for Endpoint Protection Platforms.

So of course Kaspersky literally became a target of the U.S. Congress and the Trump Administration, neither one of which has offered significant protection for the 2018 elections. The Equation Group could do that, though they would have to either be given more money or spend less time attacking foreign nations. In fact, a division of Equation Group would have to be repurposed for the defense of the United States. But our members of Congress would first have to acknowledge that the Equation Group exists and what it is doing.

In October 2012, U.S. defense secretary Leon Panetta warned that the United States was vulnerable to a “cyber Pearl Harbor” that could derail trains, poison water supplies, and cripple power grids. When (not "if") that happens, Americans will blame someone else. And the rest of the world will continue to puzzle over how we simultaneously could be so arrogant and so ignorant.

Wednesday, January 10, 2018

History Matters:
  The 2016 Bi-Partisan Attack on the Pacific
  States People, Beliefs, Economy, Defense

First published on the Pacific Progressive website January 10, 2018 

Why is it a "Pacific" Message???

The word "Pacific" is included in The Progressive Pacific Message because the beaches of the four Pacific States - Hawaii, Washington, Oregon, and California - are on the Pacific Ocean. This is a different orientation culturally resulting in:
  • a history based upon not being anywhere near the Atlantic Ocean,
  • an economy built upon Pacific trade routes,
  • a majority population that includes persons who identify themselves as Hispanics, Asian,  Indigenous, Black, and/or Mixed Race, and
  • for the second time in a century, inadequate defense preparation and activities because of an Atlantic-focused myopia.
In 2016 leaders and voters of both major political parties openly embraced a 21st Century...
  • attack on the human rights of the 51 million people of the Pacific States,
  • denial of the Progressive beliefs of the Pacific States majority,
  • assault on the economy of the Pacific States, and
  • failure to provide defense planning to protect the Pacific States.
Population by Race/Ethnicity



Additionally, the traditional Progressive Message that...
individual freedom is bound to the personal responsibility of all citizens to assure equitable communities
...still remains a dominant value in the Pacific States. Thus it is those in the Pacific States who are most likely to advocate for that Message.

Before exploring...
  1. how American Progressivism was lost and
  2. how to advocate for its restoration,
...in order to provide some shared context we will note what makes the Pacific States different and Progressive. History, geography, and economics matter far more than ideals.
  1. Consider that the Louisiana Purchase in 1803 passed in the House of Representatives by a vote of 59-57 because...
    1. the power of the Atlantic seaboard states would be threatened by the new citizens in the West, whose political and economic priorities were bound to conflict with with those of East Coast merchants and bankers, and
    2. the Atlantic seaboard voters (white male landowners) opposed the granting citizenship to the Catholic French and Spanish speaking residents, as well as free Black residents, of New Orleans as the treaty required.
    The Pacific State residents who in the 21st Century take a hard look at U.S. history and politics recognize that those attitudes took root westward as "pioneers" displaced the indigenous people until reaching the Intercontinental Divide. The 2016 Presidential Election turned on deportation proposals based on prejudices against religion, language, and skin color.
  2. Consider that California has a larger Hispanic population than 44 other states each have people (yes, total people, everyone in each of those states) and a larger Asian population than 25 other states have people; non-Hispanic white people and black people* (the 13 Colonies Races) together make up only 39% of California's population.
  3. Consider that in Hawaii non-Hispanic white people and black people* together (the 13 Colonies Races) make up only 20% of the population and that Asian residents make up 36% of the population.
  4. Consider the pie charts without the white and black segments, the 13 Colonies Races.*
  5. Consider that imports and exports at the 28 ports along the West Coast totaled over $630 billion in 2014, including smaller ones like Kalama , Washington (total 2014 trade $3.0 billion, top export Soybeans, top import Rolled iron and steel); and consider that the voters in states like Michigan which has a population that is 88% 13 Colonies Races have abandoned trade patterns and proposals that benefit such ports.
  6. Consider the terrorist threat that so worries those East of the Intercontinental Divide. The fact is the country with the largest Muslim population in the world is a Pacific Rim country. The country which provides the most crew members on merchant ships delivering goods - both necessities and fripperies - to the United is  home to the worlds 30th largest Muslim population (larger than Somalia) is a Pacific Rim Country that has been engaged in a war with the Islamic State East Asia (ISEA) for two decades in which U.S. troops participated from 2002 to 2015; most 13-Colonies-Race Americans are ignorant of these facts.
  7. Regarding a significant military threat, in addition to China and Russia which are both Pacific Rim countries, North Korea has had the ability to attack the Pacific States with missiles since the beginning of the 21st Century, first with submarines and by 2013 with ICBM's.
We will explore all these facts and more in the following posts. Admittedly it is a lot of information to take in, but without knowing this information one cannot understand the nature of the 21st Century U.S. political divide.

The Pacific States came with views west from San Francisco towards China, North from Seattle towards what was originally Russian Alaska, and South from San Diego towards Mexico. You can walk the Pacific Coast of the continent from the Southern tip of Chile to Alaska. You can sail from a harbor directly across an ocean to Japan,  North Korea, or China because it is the Pacific Ocean.  Yes, it is 2,827 driving miles from San Diego east to New York City. But, it's also only 2,819 driving miles from San Diego, California, to San Salvador, El Salvador. Here we are in the 21st Century and here are some troubling aspects of the worldview from the Pacific States:
  • The history of the Pacific States is ignored by Americans living east of the Transcontinental Divide who have a North Atlantic cultural orientation and who misrepresent their region's history.
  • The history derived from the 18th Century U.S. policies of slavery, religious bigotry, and genocide is misrepresented, literally resulting in discrimination and recriminations against Pacific State people who protest established U.S. politicians and institutions continuing those misrepresentations.
  • An extreme cultural separation from those east of the Transcontinental Divide exists resulting in continuing discrimination against Pacific State residents the majority of whom are descendants of indigenous peoples of the Americas and the Pacific and Asian immigrants.
  • The economies of the Pacific States are under attack from Americans who live east of the Transcontinental Divide.
  • The defense of the Pacific States, through both strategies in international relations and the military, ranges from secondary-in-importance to incompetent to non-existent.
The lack of a blunt, honest, full, and open discussion about the issues that particularly impact on the Pacific States and their people continues. A key goal of the Progressive Pacific Message is to force that discussion.

__________________________
*In a future post, we will explore the fact is that the 1790 Census counted white males and white females separately, plus all other free persons in a single category, and slaves in a single category. The United States Constitution Article 1 Section 8 also did not recognize indigenous people as being part of the new country. Before the Civil War most Black Americans were slaves but were included along with White in 1790 as a "13 Colonies Race." For purposes of allocating among the States seats in the House of Representatives, a slave was recognized by the United States Constitution Article 1 Section 8 as three-fifths of a person which endorsed the concept of black persons as less than persons, officially permitting white folks a point of reference - a black person is 60% of a real human. Today three U.S. States have majority populations that do not include their "13 Colonies Races" residents. Two are Pacific States and the other state is New Mexico.

Table of Contents
WHAT YOU NEED TO KNOW ABOUT
THE PROGRESSIVE PACIFIC MESSAGE
  1. Welcome to the Pacific Progressive Message
    1. Our Core Message
    2. The 70-Year Systematic Destruction of American Progressivism
    3. The Task Facing Progressives
    4. Statement of Obligations and Rights of People and their States
  2. History Matters: The 2016 Bi-Partisan Attack on the Pacific States People, Beliefs, Economy, Defense
    1. Why is it a "Pacific" Message???
  3. History Matters: The Significance of the Spanish Pacific in North American Historical Geography
    1. New Spain (1521-1849): The Real History of American States
    2. How the Spanish Created the 21st Century Pacific States Worldview
  4. History Matters: Conquering the Transcontinental Divide by Amplifying the Racial and Cultural Divide
  5. History Matters: Defending the Endangered Basic Human Rights of the People of the Pacific States
    1. It's not Roger Williams' American Dream
    2. About that Star Spangled Banner National Anthem
  6. Economics Matter, Stupid! Combating the Bi-Partisan Assault on the Enduring Economics of the Pacific States
  7. Wealthy Neoliberals Matter: How an Economic Ideology Took Control of U.S. State and National Legislative Agendas
    1. History Matters: Neoliberalism comes to America
    2. History Matters: The Loss of the Progressive Message in America
    3. History Matters: After Reagan, Neoliberals continue to win
    4. Organization and Drudgery Matter: The Neoliberal Advocacy Network
  8. The Future Matters: Restoring the Lost Progressive Message by Advocating for a Warm, Big-Hearted World
    1. Overcoming the Neoliberal strategy
    2. An Alliance does not equal assimilation or multiculturalism
    3. History Matters: To win it's State Party Politics, not Celebrity
    4. A Goal: Learn to use 21st Century technology to win

Wednesday, December 20, 2017

Democrats, about that tax reform bill
  The unseen Republican political strategy
  as Ryan says minds are going to change

Here's everything you need to know about the Republican tax bill (aka the Tax Cuts and Jobs Act of 2017), the most significant tax reform in 30 years.

In early 2018 the federal withholding tables will be scaled downward (see IRS notice). By March 2018 almost all middle class folks who draw a paycheck will see an increase in their take home pay resulting from that reduction in federal tax withholding. Let me repeat this for the Democrats and cocktail party liberals out there. By March 2018 almost all middle class folks who draw a paycheck will see an increase in their take home pay.

DEMOCRATS, QUIT TALKING ABOUT THAT TAX REFORM BILL!

Democrats are, and apparently will continue to be, telling those folks their extra take home pay will be reduced to nothing by 2027, or in some cases 2023, or 2025 or.... Well, it's complicated and it will be different strokes for different middle class folks.

And they'll be telling those folks, the majority of whom are personally in a-bit-to0-deep debt, that the federal government's debt is going to rise, by some number which no one knows.

And maybe those liberals will publish for each other to read some long working papers and brilliant magazine articles on the inequities of the tax bill.

In any event, the "pointed-headed intellectuals" will be telling each other how bad the tax bill is/was.

And they'll share that discussion with the middle class workers who will be puzzling how what they are being told relates to their reality - extra bucks in the paycheck. (Yeah, ok, their electronic payroll deposit.)

If asked about the possible disappearance of that extra take home pay, the Republicans will explain that if the Democrats in 2017 had just joined them in cutting taxes they could make the middle class tax cuts permanent - all it would require is a one time rule change. And they will explain that the voters could replace the Democrats with Republicans and that will get the job done.

And the middle class folks who might just vote for Democrats in 2018 because of morality issues will be asking those very same Democrats in 2020 if they're going make permanent the Republican tax cuts for the working folks. Because they know that almost every year income tax rule adjustments are approved and that sometimes, such as in the Economic Stimulus Act of 2008 when a bunch of extra tax rebates were sent out, the deficit issue is ignored by Democrats.

After all, the tax cuts for the rich and corporations (who donate to the Democrats as well as the Republicans) are permanent. Why would the Democrats in 2020 oppose that for the working folks?

So to summarize, all you need to know is that in 2018 most folks will take home more income because of the Republican tax cuts. By 2020 they will understand that it was the Democrats who made their tax cuts temporary - Donald Trump will tell them it is true. And it might be the simple truth.

(Note, the 2017 tax return most people will file in April 2018 - as well as January 2018 payments for those who pay taxes quarterly - will continue to follow the 2017 current tax code.)

Some will argue that it's not going to be that simple as various deductions change in the bill. Right? The LA Times offers this information for some real Californians:
The first thing you notice that the only loser in the the new tax bill lottery was the couple that owns a house. As explained by the Times:
    Maya Bader, 39, and her husband Matthew Pratt, 41, bought a new house last year. Between mortgage interest, property taxes and California income taxes, they took more than $58,000 in deductions....
    The plan allows taxpayers to deduct up to $10,000 in combined property and state income taxes....
    But Bader and Pratt, like many Californians who own homes and have good incomes, will still lose. They deducted more than $26,000 in state income and property taxes last year....
    They’ll also lose out on a deduction for interest paid on a home equity loan....
    Richer child tax credits will shave $4,000 off their tax bill.
With this explanation we can see the reality of who loses. Let's begin with income:



To begin with, to be a loser among these four examples, your household income must be in the top 14%. And to be a loser you apparently have to be unaware of the 2008 housing market bubble crash and go deeply into debt to buy a very expensive house.

The couple that rents itemized less deductions and, because the tax plan almost doubles the standard deduction and puts them in a lower tax rate, they will do better seeing their net income rise about $500 per month (compared to the $125 decrease on the homeowner couple). But that means that their federal tax will drop from almost $41,000 per year to almost $35,000 per year.

What is obvious to many Californians is that the federal government tax policy will stop subsidizing unjustified housing price inflation harming lower income folks in California urban areas.

Both higher earning couples in the Times story itemized. In the first part of 2019, as tax filing season gets underway, those taxpayers will be figuring out on their tax returns whether to take the standard deduction or to itemize. The losers will continue to itemize, but the couple with the highest income will probably stop itemizing.

Based on past statistics indicated in the chart below, just consider how few voters will be interested in all the BS in the press about various deductions. But then the press has to fill either space (print media) or time (video news):

Again, the new plan nearly doubles the standard deduction and alters the available itemized deductions (though it does away with the exemption system). So that percentage of taxpayers who itemize likely will go down making tax filing simpler for more people.

And for the Millennials who likely will have to live with much of this tax bill for 30 years, it may be a winner for those working and/or trying to get an education or training as explained by CNN Money.

Regarding all the other stuff in the tax bill, the average American knows that most of the rich and some corporations will do better. As they always do, along with their accountants and tax attorneys.

Really old people with memories know that it was a Democratic Congress that passed the Revenue Act of 1964 when the top tax rate on the relatively few rich folks that liberals carry on about was dropped by 20%, and that the Democrats controlled the House in 1982 when it was dropped by another 20%  and that the Democrats controlled both the House and Senate in 1988 when it was dropped by another 22%. Thus despite the warnings of Republican Dwight Eisenhower, the Democrats dropped the top marginal individual income tax rate from 91% in 1960 to 28% in 1988.

Since then it has gone back up -1991 to 31% and 1993 to 39.6% -  so now this big tax cut drops it all the way down to 37% from 39.6%.

What exactly again is the problem with this again, Democrats?

If anyone thinks the general public will understand and remember the intricacies of this tax bill in 2020, they are deluded. Let me offer a recent article on the bill from one of my sources of information on matters related to municipal issues which discusses complex special provisions in the Bill almost nobody in the general public knows about like "the brand new Base Erosion Anti-abuse Tax" (BEAT), the fact that "engineers and architects won a special exemption in the tax bill", and other matters.

Finally, while some corporations are big winners, some policy surprises lurk in this bill, maybe even for Donald Trump supporters, maybe even for Donald Trump who is never going read it. Consider this article The GOP tax bill is a massive victory for globalization. The possibilities when considered over the long term could mean economic opportunities for struggling California corporations such as Apple and those opportunities could accrue to California with the right incentives.

This is why we see the headline Speaker Paul Ryan: 'Minds are going to change' on Republican tax bill.

Of course, we all know that for any number of reasons before November 2020 the world's economy could be hit by a recession/depression or the U.S. could be hit with runaway inflation or...not. But one of the lesser-known aspect of the plan could create major economic growth: the provision that lets companies fully deduct their investments in plant and equipment in one year. When accelerated depreciation was introduced in the Economic Recovery Tax Act of 1981, according to Tax Foundation modeling the long term impact was an increase in the GDP by 2.69%.

The thing is, that tax bill is a winner for the Republicans and particularly the Koch Neoliberals who already dominate politics in America.

And the bill is a winner because it represents a dozen compromises, where Republicans have had to compromise with each other which resulted in such things as tuition waivers continued, employer tuition assistance remains non-taxable, some state and local taxes remain deductible, etc. No Democrats were involved in the compromises.

Right now the Koch Neoliberals are cheering the current liberal media/politicians sexual morality campaign because they understand that the very-repugnant-to-them Roy Moore received the following vote:

Nonetheless, in 2017 it's the Democrats who are putting at risk the most Congressional and legislative seats in the sexual morality campaign.

The Republicans understand that for American voters in 2020 it will be all about "the economy, stupid" meaning how much money the folks take home. And they will be taking home more money because of the Republicans.

That's because Republicans understand if you don't win, you have no power. For Democrats, it's about some complicated discussion among the indignant, not winning.