Representatives Pocan and Ellison Introduce “Right to Vote” Constitutional Amendment

Saturday, 18 May 2013 11:25 By Brendan Fischer, PRWatch | Report

(excerpt)

The world is a rigged game. We found this out in recent months, when a series of related corruption stories spilled out of the financial sector, suggesting the world’s largest banks may be fixing the prices of, well, just about everything.

You may have heard of the Libor scandal, in which at least three – and perhaps as many as 16 – of the name-brand too-big-to-fail banks have been manipulating global interest rates, in the process messing around with the prices of upward of $500 trillion (that’s trillion, with a “t”) worth of financial instruments. When that sprawling con burst into public view last year, it was easily the biggest financial scandal in history – MIT professor Andrew Lo even said it “dwarfs by orders of magnitude any financial scam in the history of markets.”

That was bad enough, but now Libor may have a twin brother. Word has leaked out that the London-based firm ICAP, the world’s largest broker of interest-rate swaps, is being investigated by American authorities for behavior that sounds eerily reminiscent of the Libor mess. Regulators are looking into whether or not a small group of brokers at ICAP may have worked with up to 15 of the world’s largest banks to manipulate ISDAfix, a benchmark number used around the world to calculate the prices of interest-rate swaps.

Interest-rate swaps are a tool used by big cities, major corporations and sovereign governments to manage their debt, and the scale of their use is almost unimaginably massive. It’s about a $379 trillion market, meaning that any manipulation would affect a pile of assets about 100 times the size of the United States federal budget.

It should surprise no one that among the players implicated in this scheme to fix the prices of interest-rate swaps are the same megabanks – including Barclays, UBS, Bank of America, JPMorgan Chase and the Royal Bank of Scotland – that serve on the Libor panel that sets global interest rates. In fact, in recent years many of these banks have already paid multimillion-dollar settlements for anti-competitive manipulation of one form or another (in addition to Libor, some were caught up in an anti-competitive scheme, detailed in Rolling Stone last year, to rig municipal-debt service auctions). Though the jumble of financial acronyms sounds like gibberish to the layperson, the fact that there may now be price-fixing scandals involving both Libor and ISDAfix suggests a single, giant mushrooming conspiracy of collusion and price-fixing hovering under the ostensibly competitive veneer of Wall Street culture.

Newspaper Guild-CWA demands Justice Dept. return telephone records taken of AP reporters’ phone calls

 http://www.newsguild.org/node/3129

Hawaii’s Mauna Loa observatory, where record CO2 increases are being documented. Photograph: Richard Vogel/AP

For the first time in human history, the concentration of climate-warming carbon dioxide in the atmosphere has passed the milestone level of 400 parts per million (ppm). The last time so much greenhouse gas was in the air was several million years ago, when the Arctic was ice-free, savannah spread across the Sahara desert and sea level was up to 40 metres higher than today.

These conditions are expected to return in time, with devastating consequences for civilisation, unless emissions of CO2 from the burning of coal, gas and oil are rapidly curtailed. But despite increasingly severe warnings from scientists and a major economic recession, global emissions have continued to soar unchecked.

“It is symbolic, a point to pause and think about where we have been and where we are going,” said Professor Ralph Keeling, who oversees the measurements on a Hawaian volcano, which were begun by his father in 1958. “It’s like turning 50: it’s a wake up to what has been building up in front of us all along.”

“The passing of this milestone is a significant reminder of the rapid rate at which – and the extent to which – we have increased the concentration of greenhouse gases in the atmosphere,” said Prof Rajendra Pachauri, chair of the Intergovernmental Panel on Climate Change, which serves as science adviser to the world’s governments. “At the beginning of industrialisation the concentration of CO2 was just 280ppm. We must hope that the world crossing this milestone will bring about awareness of the scientific reality of climate change and how human society should deal with the challenge.”

The world’s governments have agreed to keep the rise in global average temperature, which have already risen by over 1C, to 2C, the level beyond which catastrophic warming is thought to become unstoppable. But the International Energy Agency warned in 2012 that on current emissions trends the world will see 6C of warming, a level scientists warn would lead to chaos. With no slowing of emissions seen to date, there is already mounting pressure on the UN summit in Paris in 2015, which is the deadline set to settle a binding international treaty to curb emissions.

Continue reading Global carbon dioxide in atmosphere passes milestone level →

College students today graduate with the terrible burden of an average of $25,000 in student-loan debt. That total increases with the rising costs of tuition, even at public colleges and universities, and by the actions of our own government in letting the rates for student loans rise. If nothing is done by July 1, the rates will rise again.

Such heavy responsibilities will hold graduates back for years to come. Instead of kicking students when they are down, we should end the student debt crisis. That is why we are enthusiastically endorsing the first bill introduced by Sen. Elizabeth Warren (D-MA), which would lower student loan interest rates for one year to 0.75 percent, the same rate at which the government loans money to the banks through the Federal Reserve discount window. Student loan interest rates will double to 6.8 percent on July 1 without action.

By linking the interest rates students pay to the interest rates big banks pay, the Bank on Students Loan Fairness Act would insure that every qualified student can afford the education that he or she has earned. Senator Warren was right on the money when she said, “In effect, the American taxpayer is investing in those banks. We should make the same kind of investment in our young people who are trying to get an education.”

We hope her colleagues in the Senate and the members of the House see how Senator Warren’s bill will brighten the future of millions of students while at the same time energize the U.S. economy.

Continue reading Sen. Warren Introduces Bill to Lower Student Loan Interest →