In the News Briefly
Due to Global Warming, tanker ships can now traverse the frozen arctic without an icebreaker. The 984 ft. Christophe de Margerie became the first tanker to complete the new Northern Sea Route as countries fight over arctic rights. And in late August a rowing team called Polar Row broke 11 world records by rowing a boat from Norway to desolate islands in the Arctic Ocean. Meanwhile, pine beetles are killing the stately pine forests of the Northeast. Previously the beetles never got north of Delaware because cold temperatures killed them off each winter. Recent winters have been much warmer so the beetle feast moves northward. And speaking of shrinking natural beauty, President Trump wants to end environmental protection for National Monuments in Utah, Arizona, New Mexico, California, and Maine. This would open these public lands up for mining and drilling by private developers.
Did you know that a gun is stolen in the U.S. every two minutes? Once stolen they are often sold in underground illegal markets and end up being used in violent crimes…Are you still using plastic bags? Human beings have created 9.1 billion tons of plastic pollution. It doesn’t degrade, and much of it accumulates in your local landfill and in oceans where it kills sea life. Kenya alone, for example, uses 100 million plastic bags per year. But the government of Kenya is fighting back: 4 years in jail or up to $38,000 in fines for those manufacturing or importing plastic bags….The top 25 best paid hedge fund managers earned over $11 billion in 2016. James Simons made $1.6 billion, Ray Dalio raked in $1.4 billion and Robert Mercer (big Trump backer) hauled in $125 million….Anti-Muslim hate and discrimination incidents in California have increased by 10% in the last year…Thomas Rutledge, CEO of Charter Communications makes $98 million a year. That is 2,617 times the average salary of American workers….Finally, MIT researchers have estimated that diesel cars in Europe will cause about 1200 premature deaths per year (diesel engines produce high levels of poisonous nitrogen oxide).
Business in the News. Japanese icon Toshiba is facing bankruptcy because of its disastrous foray into the nuclear power industry. Westinghouse, its troubled American nuclear power subsidiary, has already declared bankruptcy. After spending $9 billion, two nuclear power plants under construction in South Carolina have been abandoned. The projected tab escalated to $25 billion. Who said nuclear power is cheap? The nuclear “renaissance” appears to be over.
Speaking of companies taking a well-earned bath, Fox’s harassment settlements are going through the roof. The sexual harassment settlement for Roger Ailes cost Fox $40 million and the similar payout over the Bill O’Reilly case was another $25 million. Fox has also suspended longtime host Eric Bolling and fired top executive Jamie Horowitz on similar charges. In a recent court filing, Fox stated it spent $224 million last year on “employee transitions.” Corporate code language. Fox also told the court that these amounts would have no “material” effect on the company. But guess what industry is really hurting? It is the banking industry, according to Rob Nichols, president of the American Bankers Association. The beleaguered banks are pleading for “much-needed regulatory relief.” The Republicans in Congress have been quick to respond with measures to roll back financial reforms. David Lazarus of the LAT says Banks need relief? Really? Last year, U.S. banks reported a record annual profit of $171.3 billion. Only 4% of banks lost money, the lowest figure in 22 years. BOA earnings were up 40% in the first quarter of this year, and even troubled Wells Fargo reported a $5.5 billion profit for the same period. Lazarus calls all this the Oliver Twist tactic (“Please sir, I want some more!”).
The newspaper world was shocked on August 22 when the publisher and top editors of the Los Angeles Times were suddenly fired by Justin Dearborn, CEO of Tronrc which is the Chicago-based parent company of the LAT. The new publisher will be Ross Levinsohn, an executive from the Fox digital group. Jim Kirk of the Chicago Sun-Times will be the new executive editor. No one knows what this will mean for readers but the reasons given for the shake-up was not enough revenue coming in.
Supply Side Economics Fails Again. A familiar Republican mantra is tax cuts, tax cuts! They continue to argue with a straight face that it boosts economic growth (and they deny, also with a straight face, that the real reason is tax breaks for the rich). The Kansas experiment now tells the truth. With a conservative governor Brownback, a conservative state legislature, and the conservative Koch Brothers Inc., the state enacted sharp tax cuts back in 2011. The wealthy enjoyed the cuts, but the economic growth never came as they predicted. Misery followed. Spending on education was slashed so much that the state supreme court ruled that the neglect of education was unconstitutional. Grudgingly, the legislature enacted a tax increase and even overrode the governor’s veto. In the US Congress, no Republican has ever voted for a tax increase for 27 years. Will the Kansas experiment change their mind? Will Republicans now admit that Supply Side Economics is a hoax?
Can You Sue a Company? Banks are allowed class action lawsuits, but there is now pressure to prevent people from doing the same thing. The Republican House of Representatives recently passed a bill aimed at blocking class action law suits. Now the senate has to decide whether to protect corporations or to protect consumers. If you examine your “agreements” with your banks, credit cards, and even your doctors, notice that they are now requiring you to agree to mandatory arbitration. That is because corporations generally win arbitration cases, and it is tough for individuals to go up against teams of corporate lawyers (something you could do if you were allowed to join a class action lawsuit). Read more.
New Research on Heart Disease. A new drug that fights inflammation rather than cholesterol claims to greatly reduce the incidence of heart attacks, strokes, and possibly lung cancer. The NYT says that the “Findings Represent a Medical Milestone.” The new drug is intended for people with high levels of inflammation as measured by the C-reactive protein (CRP) blood test. The down side is that it is expensive and my affect the immune system.
Trump Pushes to Militarize Local Police Departments. Back in 2015, Pres. Obama blocked sale of military hardware to local police. He noted that a militarized police force gives people the feeling that the police are an occupying army rather than a local force. Trump has now rolled back this restriction so local police can now buy bayonets, rocket launchers, and armored vehicles designed for fighting wars. The Trump administration said that police need bayonets to help cut seatbelts in an emergency. Trump to Fully Restore Military Surplus Transfers to Police
Fascism, American Style is the title of a disturbing Op-Ed by Paul Krugman as he reflects on creeping acceptance of fascism and the pardon of convicted criminal white supremacist sheriff Joe Arpaio. Arpaio boasted of arresting Latinos and sending them to Tent City where conditions were brutal and temperatures often reached 145 degrees. He liked to call it his “concentration camp.” Krugman reminds us that when political criminals round up minority groups and send them to concentration camps it is usually called fascism. More troubling, says Krugman, are the Republicans in Congress who look the other way and tacitly support racist lawbreakers. He calls them collaborators.
Trump Hotel at Night. Lobbyists, Cabinet Members, and $60 Steaks. Reporter Katie Rogers visits the Trump Hotel in Washington which has become a power center for Republicans, lobbyists, foreign businessmen, and anyone seeking favors from the White House. Although the hotel is owned by American taxpayers (Trump leases it from the GSA) Trump has profited $20 million over the last 15 months. This violates the emoluments clause of the Constitution which forbids government employees from personally profiting from foreign governments. Money, $2500 bottles of champagne, and favors flow freely at this Republican gathering place which some now call the Swamp. Here is Katie’s report from the NYT plus a report from the Washington Post entitled “How the Trump Hotel Changed Washington’s Culture of Influence.” Another lengthy report describes the pitfalls of a president who splits time between his commercial empire and his day job. In his first four months in office, President Trump has visited his family-owned golf clubs 25 times. Read “Ethical Hazards Dot the President’s Fairways.”
Is Trump Unfit for Office? The 25th Amendment to the Constitution describes how presidents can be dismissed, but is it ever going to happen? Should it be a clinical judgment or a political decision? The issue came up when President Reagan was failing and when Nixon was facing impeachment. Two psychiatrists weigh in. Here is another piece from the LAT also questioning Trump’s mental fitness.
Why Do the Streets in France Run with Wine? Enough about Trump, now for some serious news. French winemakers in Languedoc are up in arms about cheap wine imported from Spain which gets relabeled as “French.” French winemakers commandeered huge tank trucks filled with Spanish wine and emptied them on highways! Mon dieu!
Choice Letters to the Editor
To the Editor (OCR):
There is a great contrast between George Washington and Donald Trump. George Washington never told a lie, and Donald Trump never tells the truth.
Edward Sussman, Fountain Valley
To the Editor (NYTimes):
I think we are all missing the boat. Donald Trump really does not want to be president. He wants his old life back. This president business is too much trouble. It interrupts his golf schedule. He will resign. All the better for us.
June Lee, Easton, CT
To the Editor (LAT)
Arpaio was not convicted for “doing his job. He was convicted for refusing to obey a court order to discontinue his patently racist and unconstitutional practice of racial profiling and illegal arrests.
Ken Levy, Los Angeles
To the Editor (LAT):
Arpaio deserved not only a pardon but a Medal of Freedom for his courageous effort to protect his constituents from illegal immigrants despite the efforts of the criminal alien lobby to demonize him.
Kemp Richardson, Santa Clarita
To the Editor (rejected by the LAT):
While Donald Trump has failed miserably on almost all of his campaign promises, there is one he is keeping: the pledge to drain the swamp. Gone are Steve Bannon, Anthony Scaramucci, Sebastian Gorka, Sean Spicer, Reince Priebus, Michael Flynn, and a host of others. Keep up the good work!
Roger Johnson, San Clemente