Risk Rap

Rapping About a World at Risk

Profit Us Maximus

The deal is closed.  American democracy has been sold. The US Constitution, discovered in a discount bin at a cheap dollar store at the Mall of America will now be fully privatized to serve the greater corporate interests of America.  The deal will enable the global fraternity of capitalists to finally unlock and fully realize the hidden value of an unencumbered American dream.  Profit-Us-Maximus  will replace E Pluribus Unum as the national slogan.  Undoubtedly it will appear on our national currency for the freedom of commercial interests and the uninhibited power of capital has triumphed.  Commercial interests have trumped “we the people”.  American liberty, a political currency once recognized as the worlds leading example of representative democracy has been severely devalued.

The Supreme Courts decision overturning laws that restrict corporate freedom of speech now allows corporations the unrestricted right to financially support candidates for public office.  This paves the way for an installation of  a more corporate friendly oligarchy to rule over the citizens of the worlds first and now defunct representative democracy.  The courts ruling in the Citizens United vs. the US Federal Election Commission overturned existing laws that prohibited corporations from exercising free speech.  The ruling now sanctifies the corporate purchase of air time to fund media campaigns that support or attack candidates running for public office.  The wisdom behind the overturned law was to protect the interests of citizens from a corporations ability to use its considerable capital resources to finance and influence the election of  political candidates favorable to their corporate interests.  That law is yesterdays newspaper.

The decision opens the possibility that the governance of our nation, states and townships will be administered by elected officials financed and paid for by corporate largess proffered with the proviso to do their bidding.  America risks becoming one giant company store.  Once free citizens endowed with the protection and empowerment of a Constitution and a Bill of Rights will become beholden to the whims of corporate paternalism.

If your a shareholder in one of the corporations this is a bullish market event and your equity position has surely appreciated in value.  The special dividend of political power born from purchased access to legislators will accrue favorable returns to investors in The United Corporate States of America.  No longer will senators hail from the great state of Georgia or the Live Free or Die State of New Hampshire.  It’ll be the senator from “Do No Harm” Google or “Have It Your Way” Burger King.

There will be a million unintended consequences resulting from this decision.  How government administers and delivers services and how institutions fulfill their social mission will drastically alter.  Institutions and functions that serve and support education,  military, roads and infrastructure, health care, consumer and  environmental regulations, labor protection laws and provision of social services will be transformed.  The very nature of the liberal nation state will change.

This decision will create conditions for the privatization of governmental assets and institutional service structure  to accelerate at mind numbing speed.  The New Jersey Turnpike can now be sold to a private equity firm from China.  Drilling and the exploitation of resources found on National Parks will proceed without prohibition.  Public schools will be offered on a Dutch Auction hosted on e-bay; attracting the participation of a well capitalized confederation of publicly traded Charter Schools.  The mission to acquire the listless brick and mortar carcass of a once  venerated public school system will commence.  The promise of the systems renewal with the breath  of a new life fired by entrepreneurial zeal and taxpayer support will create a new Dow Jones Index constituent,  Education Inc.   Many functions of government will be downsized and outsourced to sophisticated data processing and business process companies.  Military units will also be privatized, becoming mercenary divisions of corporate security firms.   This will enlarge their market opportunities because they will no longer be beholden to exclusively serving the needs of a single client, the USA.

As Keith Olbermann pointed out in his Special Comment concerning the Supreme Court decision, the parallels with Dred Scott Decision are ironic.  The decision ruled that Dred Scott was not a man, but merely a commodity to create wealth for a person with full rights of citizenship.   Now corporations are blessed with all the rights and privileges of a person and the rising ascendancy of their power will soon supplant the interests of individuals.  In so doing, the Supreme Court has once again proven itself to be an activist  political tool to protect the interests of political and economic elites.

We can at least be thankful that the Supreme Courts decision allows us to dispense with the charade of participatory democracy.  Rampant cynicism about the unfair influence of money on the political process has always been understood as a problem.  This has undermined the people’s trust in the electoral process.  It has  eroded a collective sense of political enfranchisement.  It has contributed to creating a pervading  malaise of ambivalence within the electorate.  The monied interests with fathomless pockets can now come out into the open and make their presence plain for all to see.   It remains to be seen how this will alter the structure of K Street.

A new business model for how money is dispensed to politicians will need to be considered .   Perhaps a new derivative  called  a PIMP, (Politician In My Pocket) should be considered.  A PIMP Exchange could be set up in Washington DC.  This future exchange would surely prosper and would propel Washington DC as the fast rising global financial center on  the come.    PIMP trading would be recognized as a fast growing emerging market.  The trading in PIMPs would attract capital from all over the world and may even rise to supplant the future pits in Chicago as the place “where the world goes to manage risk.”

The PIMP Exchange will add that much needed transparency on how the political influence market is performing and what the going price is to buy and sell politicians.  We should be grateful to the Supreme Court  Decision  that laid the judicial foundation that will finally shine light on this aspect of our political process.  Now that its out in the open its all above board.  No more under the table deals will be necessary.  This ruling and the PIMP Exchange makes it very easy to follow the money.  Perhaps legislation should be considered that require senators and congressmen to wear the corporate logos of their three largest sponsors.  If a corporation wishes to remain anonymous feeling that the  interests of their shareholders are better served they can continue to operate under the radar.  A Generic Omnibus  Politician In My Pocket or a (GO PIMP) will be  designed specifically for this purpose.

The laissez faire approach to freedom of speech unfortunately confers all the power to those with the deepest pockets.  “Politicians will be bought and sold by the gross”, according to Alan Grayson a congressman from Florida.  Mr. Grayson is proposing legislation to protect citizens rights from being trampled by an avalanche of corporate money.  The first amendment guarantees citizens that no one shall abridge or prohibit the free and open expression of ideas.  Unfortunately money speaks the loudest and facilitates access to media channels and distribution. The free and open internet provides an individual little protection.  The tussle in China between Google and the government is an instructive warning of what we can expect to occur as corporate control of the internet grows.  It is an indication of a growing rift born from competitive postures of power capitalist institutions.

Our birthright of liberty was orphaned by a pervading cynicism and the seeming ambivalence of citizens who cared little for the rights democratic republics confer and understood less about the responsibilities required to guard them.  The decision by the Supreme Court is a watershed event.  Our political culture has changed.  The United States model for governance is moving closer to the Chinese model of governance.  The state capitalism of the United States is is a mirror image replication of the Chinese model.  A ruling oligarchy of economic interests acting in concert with its hand picked governmental representatives is common to them both.

Did we awaken this morning to the sober realization that American’s best hope is a trust in a benevolent corporate paternalism?  Can we believe that the rule of unencumbered enlightened capitalists is the way to realize the promises of a post scarce society? Can we still believe in the promise that innovation and social progress  and our democratic impulses will continue to inform America’s historical evolution?  Has America and the rest of the world arrived at a tipping point, a harbinger of a dystopian future where property right trumps human rights and the hard edges of economic deprivation, class marginalization and political disenfranchisement are ills that continue to infect society.  We need a doctor.  We need a strong antibiotic to cure this disease metastasizing in the body politic.

You Tube Music Video: Tennessee Ernie Ford: 16 Tons

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January 22, 2010 Posted by | China, Civil Rights, corruption, culture, democracy, economics, elections, environment, Federalism, government, infrastructure, institutional, LGBT, military, politics, private equity, psychology, regulatory, taxation, war | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | 1 Comment

Buffalo Bob vs. Zbigniew Brzezinski

Today I woke late and loitered in bed a bit. I was flipping back and forth between Zbigniew Brzezinski on Morning Joe and Buffalo Bob on Good Morning America. Under normal circumstances I would not have flinched from my attention to ZB. He was-as usual- great this morning and spot on concerning the precarious world situation. But I caught wind that GMA was airing a tease for this evening’s 20/20 show. They were interviewing a Millennialist Buffalo Bob from the House of Yahweh Compound in Texas. This prophet was prophesying that nuclear war will break out in 6 days! Now that’s a tease. A must see. Sorry ZB.

After this great news and a quick review of this morning’s local paper, I wanted to rush to my computer to blog on a few news items. But pressing matters of commerce took precedence and I would have to pass on my daily pontification and as the day progressed the economic and political news seemed to deteriorate as the heat and humidity began to rise to uncomfortable levels.

The Record (the paper of record for Northern New Jersey) led with a headline about Continental Airlines rising financial difficulties and it’s need to cutback on flights, fleet and jobs. The slow economy and rising fuel costs are blamed. This is hardly a shock to anyone who follows business news. Ever since I can remember the airline industry has been in perpetual difficulty. It is really incomprehensible to me how a business straining its capacity to accommodate customers has never been able to create an industry that is consistently profitable. Not even close. What’s even more incredible is why investors put their capital at risk in a business that has proven its inability to make a profit. That includes legendary capitalists like Carl Icahn and Julian Robertson. The later the iconic founder of the Tiger Management hedge fund had to close the doors to this storied fund due to his oversize position in US AIR.

Does anyone remember, Braniff, Eastern Airlines, TWA and PAN AM? Great bands all now happily camped at the top of the corporate scrapheap.

Can anyone say sustainability? The airline industry as now constituted is a non-sustainable industry. As its contribution to the global carbon footprint needs to be accounted for as a cost of doing business and remediation funded through carbon credits or cap and trade futures it will become more so.

The next story from this morning’s paper to catch our attention was the reminder that the State of New Jersey’s unfunded pension liability is approximately $25,000,000,000. Though some might consider the sum a rounding error in the federal budget deficit or a small accounting oversight in a procurement over billing for Mr. Bush’s War, the deficit will need to be addressed through some hard measures and demonstrates the absolute fallacy of the wonderful effects of the pandering Republican mantra of tax cuts. Baloney! The bill comes due sooner or later and I suspect that I’ll be getting a dunning message very soon.

Maybe we can sell the NJ Turnpike, Rt. 80 and the Garden State Parkway to a group of Chinese Private Equity Funds. And while we’re at it, let’s throw in our public school system, township libraries and local police forces. I would feel very comfortable having the Red Army police the streets of my community and enforce the law for all ez pass violators.

Next story in today’s Record led the Local section. The Essex Street Bridge that spans Rt. 17 has been closed for some time. It has choked off access to local businesses and they may be forced to close. This is a story about eminent domain, crumbling infrastructure and the pressing need for business people to be mindful of facilities risk and to practice risk management to mitigate the negative effects of these events. Fortunately our firm offers small business managers the Profit | Optimizer which helps to anticipate and plan mitigation initiatives if these events occur.

The Labor Department employment report was released and indicated that unemployment was now 5.25%; the highest in many years. This slowdown is speeding up and I don’t perceive any sector leadership emerging that can begin to lead us out of this recession. This one could get ugly.

I had an appointment with a small manufacturer this afternoon. As I was returning from the call I learned that the DOW sunk 400 points as crude oil futures went limit up at $11 on the remarks of an Israeli transportation minister who hinted that an air strike on Iranian nuclear facilities by the Israeli Defense Forces may be unavoidable. I shook my head.

Maybe Buffalo Bob knew something that Zbigniew did not. Or maybe the GMA marketing department is really a kick ass organization.

Maybe we are on the eve of destruction?

Do you think we’ll make it to the year 2525?

Risk: airlines, facilities, market, nuclear war, religion, serenity, pension funds, labor

June 6, 2008 Posted by | Bush, commodities, community, faith, nuclear, pop, Sum2, sustainability, war | , , , , , , , , , , , , , , , , , , , | Leave a comment