April, 18 2016, 10:00am EDT
For Immediate Release
Contact:
Sam Husseini, (202) 347-0020, (202) 421-6858
David Zupan, (541) 484-9167
Coup in Brazil?
The New York Times reports: "Dilma Rousseff Is Impeached by Brazil's Lower House of Congress," which states: "After three days of impassioned debate, the lower house of Congress, the Chamber of Deputies, voted to send the case against [President Dilma] Rousseff to the Senate.
The New York Times reports: "Dilma Rousseff Is Impeached by Brazil's Lower House of Congress," which states: "After three days of impassioned debate, the lower house of Congress, the Chamber of Deputies, voted to send the case against [President Dilma] Rousseff to the Senate. Its 81 members will vote by a simple majority on whether to hold a trial on charges that the president illegally used money from state-owned banks to conceal a yawning budget deficit in an effort to bolster her re-election prospects. That vote is expected to take place next month."
- MARK WEISBROT, via Dan Beeton, beeton@cepr.net, (202) 239-1460
Weisbrot is co-director of the Center for Economic and Policy Research and has written extensively about Latin America. He recently wrote the piece "Brazilian Coup Threatens Democracy and National Sovereignty," which states: "there is no evidence that [Rousseff] is linked to the 'Lava Jato' scandal, or any other corruption. Rather, she is accused of an accounting manipulation that somewhat misrepresented the fiscal position of the government -- something that prior presidents have done. To borrow an analogy from the United States, when the Republicans refused to raise the debt ceiling in the U.S. in 2013, the Obama administration used a number of accounting tricks to postpone the deadline at which the limit was reached. Nobody cared.
"The impeachment campaign -- which the government has correctly labelled a coup -- is an effort by Brazil's traditional elite to obtain by other means what they have not been able to win at the ballot box for the past 12 years."
- CECILIA MacDOWELL SANTOS, (415) 422-5624, santos@usfca.edu
Director of the Latin American Studies Program at the University of San Francisco, Santos is among the Latin America scholars to sign the petition "Brazilian Democracy is Seriously Threatened," which states: "The combat against corruption is legitimate and necessary to improve the responsiveness of Brazilian democracy. But in the current political climate, we find a serious risk that the rhetoric of anti-corruption has been used to destabilize the current democratically-elected government, further aggravating the serious economic and political crisis that the country is facing.
"Instead of retaining political neutrality and respecting due process, sectors of the Judiciary, with the support of major media interests, have become protagonists in undermining the rule of law. ... The violation of democratic procedure represents a serious threat to democracy. When the armed forces overthrew the government of President Joao Goulart in 1964, they used the combat against corruption as one of their justifications."
- MARIA LUISA MENDONCA, (510) 283-8374. marialuisam222@gmail.com
Mendonca is director of Brazil's Network for Social Justice and Human Rights. She is also professor in the international relations department at the University of Rio De Janeiro.
She highlights the role of social movements against the impeachment. For example, see the website of the MST, the Landless Workers Movement in Brazil, which features "Ten Facts that Brazil and the World Should Know," which states: "This is precisely why the request for impeachment constitutes a coup d'etat, because a president can only be removed if he or she is found to have committed a crime -- and as a crime did not occur, so far, Dilma's name has not been presented in any corruption investigations: not even the slightest suspicion against her exists.
"Unlike President Dilma, the politicians calling for her dismissal are corrupt and are as dirty as they come. Eduardo Cunha (PMDB-RJ) who, as chairman of the House is responsible for the impeachment process, has received more than 52 million Brazilian Rs. (BR$) from corrupt schemes undertaken in Petrobras, plus he has millions deposited in secret accounts in Switzerland and other tax havens. Of the 65 members of the Parliamentary Commission that will investigate the request for impeachment 37 (more than half!) are under the watchful eye of the Justice Department and are being investigated for corruption. If they manage to depose the president, in exchange they expect to see the charges against them for the fraud they have committed dropped."
A nationwide consortium, the Institute for Public Accuracy (IPA) represents an unprecedented effort to bring other voices to the mass-media table often dominated by a few major think tanks. IPA works to broaden public discourse in mainstream media, while building communication with alternative media outlets and grassroots activists.
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The Fed Accused of 'Playing With Fire' After Latest Rate Hike
"It shouldn't take a lot of courage to resist another interest rate hike when the economy is this fragile," said one critic.
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Progressive economists and other experts blasted Federal Reserve leadership on Wednesday for raising interest rates yet again despite concerns about recent bank failures and how the quarter-point increase will impact the U.S. and global economies.
"Once again, interest rate hikes are going to fall hardest on low-wage workers and the poor—the same people who have already been hurt the most by rising prices," tweeted University of California, Berkeley professor and former Labor Secretary Robert Reich. "Higher rates could also imperil more banks, and risk even more financial chaos. The Fed is playing with fire."
Fed Chair Jerome Powell told reporters Wednesday that although the Federal Open Market Committee "did consider" a pause on rate increases following the Silicon Valley Bank (SVB) and Signature Bank failures, officials ultimately decided to raise the federal funds rate to a range of 4.75-5%, the highest level since 2007.
"The Fed under Chair Powell made a mistake not pausing its extreme interest rate hikes," declared Sen. Elizabeth Warren (D-Mass.) a fierce critic of nine consecutive rate hikes since last March as well as the Fed's regulatory rollbacks that proceeded the bank collapses.
"I've warned for months that the Fed's current path risks throwing millions of Americans out of work. We have many tools to fight inflation without pushing the economy off a cliff," added Warren, who has repeatedly called for ousting Powell.
Patriotic Millionaires chair Morris Pearl—a bank bailout expert and former managing director at BlackRock—similarly contended that "the Fed's decision to keep pushing forward with rate hikes no matter the circumstances is a dangerous mistake."
Describing such hikes as "a blunt instrument," he stressed that high interest rates "are not well suited to the economic realities the country now faces—and will inevitably end up doing more harm than good."
Pearl continued:
In our modern economy, high interest rates are simply not an effective way to fight inflation. Rate hikes have disproportionately hurt just a few sectors, like housing, automobiles, and some banks and investors, while leaving many of the nation's largest employers relatively unscathed.
Rising interest rates do nothing to address a major cause of inflation, corporate price gouging, and actually make another long-term cause, lack of investment in new housing, worse. Instead, the Fed is betting that lowering employment and cooling wage growth is the best solution to inflation.
Higher interest rates may be a cure for inflation, but if they end up causing another banking crisis, or pushing the economy into a recession, the cure may be worse than the disease.
An analysis released Wednesday by Accountable.US explained that "SVB's failure was partly due partly to a 'plunge' in bond value and $1.8 billion in 'paper losses' amid the Fed's rate hikes. By the end of 2022, the Federal Deposit Insurance Corporation (FDIC) had warned that U.S. banks were 'sitting on $620 billion in unrealized losses' that may make their balance sheets appear healthier than they really are."
The watchdog group found that "at the end of 2022, the five biggest U.S. banks—JPMorgan Chase, Bank Of America, Citigroup, Wells Fargo, and U.S. Bank—reported a total of $233 billion in unrealized losses on held-to-maturity securities, including $54 billion in unrealized losses on Treasury securities. These same banks reported a combined $39.4 billion in unrealized losses on available-for-sale securities, including $12.7 billion in losses on available-for-sale U.S. Treasuries."
Liz Zelnick, director of economic security and corporate power at Accountable.US, warned Wednesday that "hiking interest rates, even if more slowly, will devastate Main Street and Wall Street alike by wiping out millions of jobs while sending Treasury securities into a downward spiral," acknowledging that the recent bank turmoil prevented an even bigger increase than 25 basis points.
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The Hill highlighted that ahead of Wednesday's announcement, influential figures such as economist Paul Krugman and analysts for Goldman Sachs—in a Monday letter to investors—had advocated for pausing rate hikes.
"Bank stress calls for a pause," wrote Goldman Sachs analysts. "Banking is not just another sector of the economy because financial intermediation is vital to every sector. As a result, addressing stress in the banking system is the most immediate concern and must take priority over other less urgent goals for the moment. We expect that policymakers and staff economists at the Fed will have the same view."
During his Wednesday press conference, Powell insisted that "our banking system is sound and resilient with strong capital and liquidity. We will continue to closely monitor conditions in the banking system and are prepared to use all of our tools as needed to keep it safe and sound."
While Powell also emphasized the Fed's commitment to learning from the recent SVB and Signature failures to prevent repeat events, both the bank collapses and a year of rate hikes have fueled calls for his ouster.
Asked by CNN's Jake Tapper on Wednesday whether she had ever directly told President Joe Biden that he should fire Powell, Warren said she wouldn't talk about private conversations "but what I will say is I've made it very clear as publicly as humanly possible that I didn't think that he should be reconfirmed as chair of the Fed. And I think he's doing a really terrible job."
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Thanks in part to opposition from the coalition, which sent its first letter to U.S. Energy Secretary Jennifer Granholm in September, the DOE rejected Holtec's first funding request in mid-November. The following month, however, Holtec announced it would apply for federal funding during a second round of allocations, prompting a second letter of opposition from the coalition.
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According to The Holland Sentinel: "Holtec has acknowledged there will be 'a number of hurdles' to reopening the plant even if funding is secured. Those include financial commitment from the state, procuring a power purchasing agreement, upgrading the switchyard, partnering with a licensed operator for the restart, rehiring qualified and trained staff, and maintenance and delayed capital improvements of the facility—the plant closed earlier than planned due to failure of a control rod drive seal."
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During the meeting, Kamps declared, "Over my dead body are you all going to get away with this."
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According to the report:
In general, the private equity industry's business model poses risks to the long-term sustainability of entities that the industry acquires. That is, in large part, because private equity purchases are typically financed with debt that is immediately transferred onto the books of the businesses acquired, thus leaving the acquired entities with debt burdens to manage.
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The risks posed by private equity investments in healthcare are particularly acute. After all, the services healthcare providers offer can spell the difference between life and death. Private equity has targeted segments of the healthcare industry since at least the 1990s, with many predictable outcomes. Among them, shocking lapses in safety have occurred, prices have risen faster than at non-private equity acquired entities, and patients have been subjected to price gouging schemes.
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"Thanks to a lack of transparency, we don't know everything about private equity's incursion into healthcare. But what we do know is shocking and immoral" said Kemp. "The damage that private equity has wrought on Americans' healthcare from cradle to grave, simply for profit, has become a life-or-death situation. Transparency and oversight are needed, stat."
The report suggests legislative solutions including Sen. Elizabeth Warren's (D-Mass.) Stop Wall Street Looting Act and Rep. Pramila Jayapal's Healthcare Ownership Transparency Act. The latter, according to Jayapal's office, "would require private equity firms and other financial interests to disclose ownership stakes in healthcare facilities including nursing homes."
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"We applaud Rep. Jayapal's ongoing effort to shine a light on the dangerous toll private equity vultures are taking on our health," Public Citizen president Robert Weissman said in a statement. "Adequate regulation of this predatory industry is acutely critical when it comes to the healthcare sector."
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