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The background art you see is part of a stained glass depiction by Marc Chagall of The Creation. An unknowable reality (Reality 1) was filtered through the beliefs and sensibilities of Chagall (Reality 2) to become the art we appropriate into our own life(third hand reality). A subtext of this blog (one of several) will be that we each make our own reality by how we appropriate and use the opinions, "fact" and influences of others in our own lives. Here we can claim only our truths, not anyone else's. Otherwise, enjoy, be civil and be opinionated! You can comment by clicking on the blue "comments" button that follows the post, or recommend the blog by clicking the +1 button.

Friday, May 4, 2012

Power, Illustrated

I’ve mentioned the ongoing struggle for dominance between corporations and governments (the preferred term is “sovereign states”) several times lately.  You might find the topic somewhat abstract and so what?, like talking about a struggle between giants somewhere in the Greater Magellanic Clouds  - interesting, but light years away.  So here are a few examples of what’s happening now, up close and personal.
Item: an old friend has a son of whom he is proud; the son, an aeronautical engineer working for a major airplane manufacturer whose planes we all fly on, has recently been appointed to a staff whose duty it is, working for the manufacturer, to review and certify the safety of airplane designs, on behalf of the FAA, (bold added intentionally.)  That is, the staff reviews their company’s design, and in the name of the FAA certifies that is acceptable as meeting all safety standards.  The rationale is that the FAA lacks the expertise and resources to conduct the required review.  As I interpret it, the FAA and the company have switched roles, with the FAA now serving as the public relations agent for the company, assuring the public (that’s you) that the product is ok.  Think about it the next time you fly.
Item: the Washington Post notes in an about federal workers column that the Agriculture Department is planning to privatize the inspection of poultry nationwide to save its resources in the face of budget cuts. So one private corporation will be inspecting and certifying another private corporation on behalf of the federal government to assure you that your chicken dinner is not only yummy but safe.  Meanwhile, new standards for food safety have been delayed for several years since their first announcement.  Supposedly it’s to clear up the wording of regulations; insiders say large food producers are privately protesting and stalling.  Doesn’t that make your chicken taste better and better?
Item:  a Federal Reserve Governor warns that the banking reform initiatives passed in 2010 as the Dodd-Frank Bill are fizzling due to private strong resistance from Wall Street banks, especially JPMorgan Chase and Goldman Sachs.  The resistance has grown stronger since 4 of the 19 large banks failed to pass the “stress tests” mandated for them by the legislation.  Resistance is also strong against the “Volcker Rule”, which prohibits banks from using more than 10 percent of customer deposits to “do business with” other banks on their own behalf.  As you recall, that rule is aimed at preventing banks from engaging in risky speculation with their customers money by, among other things, engaging in derivatives trading and “off-the-books” short-term transactions.
Item: I’ve noted before the way gas prices go up and up, even when supply is up and demand is down.  Defenders like Robert Samuelson say its justifiable because it’s a world market and, since everyone needs oil, the oil is ”price-inelastic.”  That’s obfuscatory language for monopolistic or oligopolistic pricing, i.e., charging regardless of the users’ ability or willingness to pay.  Do you recall how prices vary at stations on this side versus the other side of town?  Then why do prices in America, which has growing supplies, have to be up because demand is high in China?  Hmm.  Could it be because Exxon-Mobil is no longer an American corporation?
The struggle for dominance between corporations and sovereign states is not taking place in a galaxy far, far away.  The battlefields are at your grocery store, your airport, you gas station, your bank, and a thousand other places where you live.  When Supreme Courts award another victory to corporations, or corporate lobbyists stem another attempt at government regulation, it’s you that loses.  Think about it.

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