September, 22 2008, 04:02pm EDT
For Immediate Release
Contact:
Michelle Chan, 415-544-0790 ext. 14
Erich Pica, 202-222-0739
Friends of the Earth Opposes Bush's Trillion-Dollar Blank-Check Bailout
Government response to financial crisis must include fundamental structural reforms;
WASHINGTON
Friends of the Earth announced its
opposition to the Bush administration's proposed trillion-dollar bailout
of the financial system today, and called on elected officials to ensure that
any government action related to the financial crisis fixes deep structural
flaws in the financial system that have spawned not only the current financial
crisis but are also jeopardizing our planet's future.
Friends of the Earth President Brent Blackwelder had the
following statement:
"This financial crisis has exposed
the right-wing's anti-regulation philosophy as an abject failure.
This hands-off approach to managing the economy has resulted in greedy
corporate titans getting rich on the backs of working people. This same
philosophy is causing irreparable harm to the planet. And now we face a
trillion-dollar taxpayer-funded bailout. Enough is enough.
"Friends of the
Earth opposes the Bush administration's proposed blank-check bailout for
these wealthy financiers. What is needed is truly fundamental reform, not
this no-strings-attached proposal.
The government must impose oversight and re-regulation on the financial
system. The days of the fox guarding the henhouse, with corporate
lobbyists writing the laws that regulate their industries, must end. And we must consider
environmental impacts to be economic impacts as we move forward. While
the risks posed to the economy by the current financial crisis are indeed dire,
we also face long-term risks posed by the climate crisis. These problems
are intertwined, and reforms of the financial system must take this into
account.
"Reform must be conducted in a
just way that helps people on Main
Street more than it helps corporate fat cats on
Wall Street. Taxpayer funds taken from the treasury to prop up Wall
Street must be replaced so they can be used to fund other
necessary initiatives.
"It's ironic that when many
countries run into financial trouble, the International Monetary Fund imposes
serious economic restructuring, but President Bush and Secretary
Paulson now see no need for restructuring at all. They're
wrong, and their proposal should be rejected."
This unprecedented bailout not only imposes a hefty
monetary cost on taxpayers and future generations, but it represents enormous
opportunity costs. In response, Friends of the Earth is calling on
Congress to consider the following specific reforms, which adhere to the
principles stated above:
Any bailout
package should be just.
-
Financial
institutions should bear the brunt of the losses from this crisis; taxpayer monies
should be used to only cover the bare minimum to keep our banking system
functional.
-
The
government should acquire an ownership stake in the institutions that are
bailed out.
-
Bailing out Wall Street banks
without making proportionate efforts to keep American families in their homes
is unfair. Friends of the Earth supports organizations such as the Center
for Responsible Lending, National Community Reinvestment Coalition and the
National Council on Civil Rights, who are advocating Chapter 13 judicial
modification relief to keep homeowners from losing their homes.
-
In
addition, failing to hold executives accountable for the disastrous
consequences of their actions is unconscionable; those who were responsible
should be persecuted to the full extent of the law. In the future, fines
and penalties for financial and corporate malfeasance must be increased, and
executive compensation must be reigned in at all companies that are being
bailed out.
Any bailout package must be tied to a restoration of regulation and supervision
of the financial services industry.
-
Decades of deregulation have
allowed this industry to "innovate" new financial products,
structures, and vehicles at an astonishing rate without monitoring and
supervision. Friends of the Earth supports the call from Center for
Economic and Policy Research to require tradable instruments, such as credit
default swaps, to be standardized and traded on exchanges, which would subject
them to regulation and transparency.
-
Now is the time to ensure proper
oversight over the financial services sector, and tighten up rules on
accounting and offshore tax havens which allow clever financial engineering to
hide real risks and liabilities. It is time to bring hedge funds under
supervision; and no hedge funds (which have refused to even register with the
SEC) should be bailed out.
-
Congress must also reinstate the
Glass-Stegall Act, which paved the way for massive overleveraging among
financial institutions, increased the risk of conflicts of interest, and put
consumers real savings at risk.
Any bailout package
should include measures to cool down
speculative hot money flows and asset bubbles.
-
The Fed should take on a new role
of proactively preventing asset bubbles, and take measures to cool down overheating
parts of the financial markets.
-
As Friends of the Earth has
proposed since 1995, a Tobin-style tax (for example, 0.25 percent tax on stock
trading, and 0.02 percent tax on options, futures, swaps, and currency trading)
should be introduced to curb excessive speculation and promote longer-term
investing that serves the real economy. Tobin-style tax revenue could be
used to help pay for the bailout and address critical social and environmental
needs.
Government-owned financial institutions have
the ability and responsibility to foster an environmentally sound future.
-
AIG, as it becomes a federally
controlled entity, should cease underwriting fossil fuel energy projects
and focus on facilitating a clean energy transformation. The same principle
should apply to other new federal entities that are created via this bail
out. The National Environmental Policy Act should apply to such
entities.
-
In the future, Fannie and Freddie
Mac should institute a policy to require an increasing percentage of the
mortgages they purchase to be "green" (location efficient, energy
efficient, and/or sustainably designed). It should phase out purchasing
mortgages for development in flood plains and coastal hazard zones.
Friends of the Earth fights for a more healthy and just world. Together we speak truth to power and expose those who endanger the health of people and the planet for corporate profit. We organize to build long-term political power and campaign to change the rules of our economic and political systems that create injustice and destroy nature.
(202) 783-7400LATEST NEWS
Trustee Reports Show Medicare, Social Security Must Be Defended From Trump
"The future of these earned benefit programs depends on who is elected this fall—both as president and to Congress," said one campaigner.
May 06, 2024
Advocacy groups, congressional Democrats, and U.S. President Joe Biden's reelection campaign on Monday pointed to new government reports on Medicare and Social Security as proof that the key programs must be protected from Republican attacks.
The annual trustee reports show that Social Security is projected to be fully funded until 2035, a year later than previously thought, while Medicare is expected to be fully funded until 2036, five years beyond the earlier projection.
Former President Donald Trump, the presumptive Republican nominee to face Biden in November, "proposed cutting Social Security and Medicare every year he was in office, he's said repeatedly he would cut them, his allies openly plan to target them, and just this weekend he dismissed them as bribes," noted James Singer, a spokesperson for the Democrat's campaign.
"Let's be clear, Donald Trump will steal the hard-earned Social Security and Medicare benefits Americans have been paying into their entire lives and he'll use it to fund tax cuts for rich people like him," Singer warned. "President Biden keeps his promises. He has and will continue to protect Social Security and Medicare from MAGA Republican efforts to cut them—Donald Trump won't."
"No doubt we will hear cries from so-called 'fiscal conservatives' that Social Security is going 'bankrupt,' supposedly requiring Draconian measures—which couldn't be further than the truth."
Richard Fiesta, executive director of the Alliance for Retired Americans, said Monday that "current and future American retirees should feel confident about both Medicare and Social Security, which [are] stronger due to the robust economy under President Biden. But the future of these earned benefit programs depends on who is elected this fall—both as president and to Congress."
Fiesta highlighted that Biden's latest budget "calls for strengthening" the programs whereas Trump recently said that "there is a lot you can do... in terms of cutting" them and "the Republican Study Committee (RSC), which includes around 80% of House Republicans, stands ready to make cuts as well."
Nancy Altman, president of Social Security Works, similarly declared that "today's report shows that our Social Security system is benefiting from the Biden economy. Due to robust job growth, low unemployment, and rising wages, more people than ever are contributing to Social Security and earning its needed protections."
"That said, Congress should take action sooner rather than later to ensure that Social Security can pay full benefits for generations to come, along with expanding Social Security's modest benefits," she argued, noting various plans from Democrats in Congress that "are paid for by requiring millionaires and billionaires to contribute more of their fair share."
Unlike Democratic leaders in Washington, D.C., "Republicans want to cut benefits despite overwhelming opposition from the American people," Altman said of federal lawmakers and the former president. Additionally, "Trump plans to sharply restrict immigration. This would harm Social Security by reducing the number of workers paying in."
"The United States is the wealthiest nation on Earth at the wealthiest moment in our history. We can use that wealth to protect and expand Social Security, or to provide yet more tax handouts to billionaires," she concluded. "This report is a reminder that the next decade is a crucial one for Social Security's future. Americans should vote accordingly this November."
Max Richtman, president and CEO of the National Committee to Preserve Social Security & Medicare, also asserted that "Congress must act NOW to strengthen Social Security for the 67 million Americans who depend on it. We cannot afford to wait to take action until the trust fund is mere months from insolvency, as Congress did in 1983."
According to Richtman:
No doubt we will hear cries from so-called 'fiscal conservatives' that Social Security is going 'bankrupt,' supposedly requiring Draconian measures—which couldn't be further than the truth. Revenue always will flow into Social Security from workers' payroll contributions, so the program will never be 'broke.' But no one wants seniors to suffer an automatic 17% benefit cut in 2035, so Congress must act deliberately, but not recklessly. A bad deal driven by cuts to earned benefits could be worse than no deal at all.
We strongly support revenue-side solutions that would bring more money into the trust fund by demanding that the wealthy pay their fair share. Rep. John Larson (D-Conn.) has offered legislation that would do just that—by maintaining the current payroll wage cap (currently set at $168,600), but subjecting wages $400,000 and above to payroll taxes, as well—and dedicating some of high earners' investment income to Social Security. Rep. Larson's bill also would provide seniors with a much-needed benefit boost.
Larson was among the lawmakers who responded to Monday's Social Security report by demanding urgent action. The Democrat also called out his Republican colleagues for pushing cuts and trying to "ram their dangerous plan through an undemocratic and unaccountable so-called 'fiscal commission,'" which critics have dubbed a "death panel."
"The Social Security 2100 Act is co-sponsored by nearly 200 House Democrats and would improve benefits across the board while extending solvency until 2066, while Donald Trump and House Republicans continue their calls to slash Americans' hard-earned benefits!" Larson said. "By contrast, President Joe Biden and Democrats are working to strengthen Social Security, not cut it."
Co-sponsors of Larson's bill include Congressman Brendan Boyle (D-Pa.), ranking member of the House Budget Committee.
"Social Security is the greatest anti-poverty program in history, and ensuring its solvency for future generations has been one of my top priorities in Congress," Boyle said Monday, promoting the Medicare and Social Security Fair Share Act, his bill with Sen. Sheldon Whitehouse (D-R.I.). "Unfortunately, while Democrats and President Biden want to protect Social Security and Medicare, Republicans have made clear they want to tear them down."
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'War Criminals': IDF Strikes Rafah After Hamas Agrees to Cease-Fire
"Why?" asked Israeli lawmaker Ofer Cassif. "Because killing Palestinians is more important for the Israeli government than saving Israelis."
May 06, 2024
Israel on Monday launched long-awaited strikes on Rafah in the southern Gaza Strip despite Hamas publicly confirming it agreed to a cease-fire and hostage release proposal from Egyptian and Qatari mediators.
The Israel Defense Forces said on social media that "the IDF is currently conducting targeted strikes against Hamas terror targets in eastern Rafah," the city to which over a million Palestinians have fled since October 7, when Israel launched a retaliatory war that has already killed at least 34,735 people in Gaza and wounded another 78,108.
Earlier Monday, the IDF had dropped leaflets directing residents and refugees in that part of Rafah to relocate to a strip along Gaza's coast, ignoring warnings from the international community and humanitarian groups that a full-scale Israeli attack on the crowded city would further endanger civilians and relief efforts.
"It is obvious Netanyahu wants this genocidal war to continue indefinitely so that he can remain in power."
In addition to sparking outrage around the world, the Israeli government's Rafah attack and rejection of the Hamas-backed proposal was met with criticism from people across Israel. The Associated Pressreported that "thousands of Israelis rallied around the country Monday night calling for an immediate deal to release the hostages still held in the Gaza Strip."
Ofer Cassif, a member of the Knesset who was almost expelled by fellow Israeli lawmakers earlier this year for backing South Africa's ongoing genocide case against Israel at the International Court of Justice (ICJ), again called out his own government.
"Israeli tanks and infantry enter east Rafah while planes bomb from above, just hours after Hamas' decision to accept the hostages/prisoners exchange deal," Cassif said Monday. "Why? Because killing Palestinians is more important for the Israeli government than saving Israelis. War criminals!"
The office of Israeli Prime Minister Benjamin Netanyahu said Monday that "the War Cabinet unanimously decided this evening Israel will continue its operation in Rafah, in order to apply military pressure on Hamas so as to advance the release of our hostages and achieve the other objectives of the war."
Along with the prime minister, Israel's War Cabinet includes Defense Minister Yoav Gallant and Benny Gantz, former IDF chief of the general staff, along with three observers.
Netanyahu added that "while the Hamas proposal is far from meeting Israel's core demands, Israel will dispatch a ranking delegation to Egypt in an effort to maximize the possibility of reaching an agreement on terms acceptable to Israel."
Reutersreported that "an Israeli official said the deal was not acceptable to Israel because terms had been 'softened.'"
According to the news outlet, the first part of a three-phase plan that Hamas—which has controlled Gaza for nearly two decades—agreed to includes a 42-day pause in fighting, the release of 33 hostages held by the group and some Palestinians in Israeli jails, a partial IDF withdrawal, and free movement in the besieged enclave.
Phase two would be "another 42-day period that features an agreement to restore a 'sustainable calm' to Gaza, language that an official briefed on the talks said Hamas and Israel had agreed in order to take discussion of a 'permanent cease-fire' off the table," Reuters detailed. This phase also includes withdrawing most Israeli troops and Hamas releasing some soldiers and reservists.
The third phase would involve the exchange of bodies; reconstruction of Gaza overseen by Egypt, Qatar, and the United Nations; and ending the complete blockade on the strip, the outlet added.
Shortly before Israel's Monday night strikes on Rafah began, StĂ©phane Dujarric, a spokesperson for United Nations Secretary-General AntĂ³nio Guterres, said that the U.N. chief "reiterates his pressing call to both the government of Israel and the leadership of Hamas to go the extra mile needed to make an agreement come true and stop the present suffering."
Expressing concern about the then-imminent Israeli operation in Rafah, the spokesperson said that "we are already seeing movements of people—many of these people are in desperate humanitarian condition and have been repeatedly displaced. They search safety that has been so many times denied. The secretary-general reminds the parties that the protection of civilians is paramount in international humanitarian law."
Other U.N. officials have been warning of what an assault on Rafah will mean for the over 1.4 million Palestinians there, among them 600,000 children. So have humanitarian and political leaders, including U.S. Sen. Bernie Sanders (I-Vt.)—who on Monday urged President Joe Biden to stand by his earlier position that attacking the city was a "red line" and "end all offensive military aid to Israel."
Council on American-Islamic Relations national executive director Nihad Awad issued a similar call Monday evening, warning that "the Israeli government is hellbent on using American financial, military, and diplomatic support to ethnically cleanse what remains of Gaza and commit another massacre."
"President Biden must stand up to Benjamin Netanyahu and take concrete action to end the genocide now," Awad continued, nodding to the Israeli leader's legal trouble. The prime minister faces not only potential consequences on a global scale for what the ICJ has deemed a "plausibly" genocidal war on Gaza but also a corruption trial in his own country.
"It is obvious Netanyahu wants this genocidal war to continue indefinitely so that he can remain in power, avoid jail, and fulfill his racist, far-right Cabinet's demands for the complete destruction of Gaza and the massacre of its people," Awad said. "It is long past time for President Biden to end our nation's complicity in this 21st-century genocide."
Biden spoke with Netanyahu by phone ahead of the IDF strikes on Monday and "reiterated his clear position on Rafah," according to a White House readout. They also discussed the hostage negotiations, humanitarian aid, the Holocaust, and antisemitism.
Trita Parsi, executive vice president of the Quincy Institute for Responsible Statecraft, also suggested that the Israeli prime minister wants the bloodshed in Gaza to continue for personal reasons.
"Netanyahu does not want an end to the war because the moment the war ends, his political career ends as well. And his prison sentence will commence," said Parsi. "Yet, Biden has for seven months deferred to Netanyahu."
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The Pulitzer Prize Board avoided "naming the brave Palestinian journalists who did the reporting and filming and died in record numbers," said one journalist.
May 06, 2024
In recent years, the Pulitzer Prize Board has given special recognition to the journalists of Ukraine and Afghanistan for reporting from war zones, honoring their "courage, endurance, and commitment to truthful reporting" and their ability to tell their communities' stories under "profoundly tragic and complicated circumstances."
On Monday, no such recognition was given to Palestinian reporters in Gaza, at least 92 of whom have been among more than 34,000 Palestinians killed in the enclave since Israel began its bombardment in October.
The annual journalism and literature awards included a special citation for "journalists and media workers covering the war in Gaza"—but didn't differentiate between those around the world who have spent the last seven months telling the story of Israel's escalation from the safety of far-off countries, and those struggling to report on the destruction of their own home under the constant threat of Israel Defense Forces (IDF) attacks.
"The missing word is—is always—Palestinian," said Writers Against the War on Gaza (WAWOG). "Palestinian journalists and media workers deserve, if nothing else, this recognition; and half of them are dead."
Public health writer Abdullah Shihipar noted that in 2022, the board awarded the special citation to the "journalists of Ukraine." In 2021, it recognized "women and men of Afghanistan," saying that from "staff and freelance correspondents to interpreters to drivers to hosts, courageous Afghan residents helped produce Pulitzer-winning and Pulitzer-worthy images and stories."
This year, said Intercept journalist Jeremy Scahill, giving a special citation to "'media workers covering the war in Gaza' is a way to avoid naming the brave Palestinian journalists who did the reporting and filming and died in record numbers."
Many of those killed, Scahill added, might not have been had it not been for U.S.-made weapons sold to Israel.
The Pulitzer Prize for international reporting was awarded to The New York Times "for its wide-ranging and revelatory coverage of Hamas' lethal attack in southern Israel on October 7, Israel's intelligence failures, and the Israeli military's sweeping, deadly response in Gaza."
One of the Times' most explosive articles about Israel and Gaza, "Screams Without Words," about the alleged sexual assaults of Israeli victims of the October 7 attack, was not among those submitted for consideration. The article has come under scrutiny because of the anti-Palestinian bias expressed by one of the freelance reporters who worked on it, and questions about its veracity.
WAWOG, which has started a website titledThe New York War Crimes, posted on social media that the Times should have instead been awarded the Pulitzer for "manufacturing consent."
By honoring the Times for its international reporting this year, said City University of New York sociology professor Heba Gowayed, the Pulitzer Prize "lost any credibility it ever had."
The prize is administered by Columbia University, where students have been protesting for weeks against U.S. support for the IDF and against the school's investment in companies that contract with Israel.
Last week, the university called on the New York Police Department to forcibly remove student protesters from a school building; police told student journalists they would be arrested if they left Pulitzer Hall to report on the incident. Student journalists are reportedly still being barred from campus.
Columbia, said Jack Mirkinson of The Nation, announced the Pulitzers "at the exact same time it is clamping down on the press freedom of its own students. You couldn't make it up."
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