Best of the Week
Most Popular
1.Independent Scotland Will Disintegrate as Unionist Regions Demand Referendum's to Rejoin UK - Nadeem_Walayat
2.Bank of England Panic! Scottish Independence Bank Run Already Underway! - Nadeem_Walayat
3.Scottish Independence Referendum Result NO 55%, YES 45% - Vote Forecast - Nadeem_Walayat
4.Scotland Independence Result NO Win 55% to Yes on 45% - Nadeem_Walayat
5.US Dollar Forecast to Go Much Higher - David_Petch
6.Russian Union Of Engineers Accuses Ukraine Airforce In MH17 Crash - Raul_I_Meijer
7.The Emergence of the US Petro-Dollar - Gary_Dorsch
8.Don't Miss This Gold Buying Opportunity - Brien Lundinr
9.Silver Price: A Collapse and a Rally - DeviantInvesto
10.Silver Buyers Keep Stacking And Demand Higher Despite Falling Prices - 18th Sept 14 - GoldCore
Last 5 days
Singapore Becoming Global Gold Hub - Launches Kilo Bar Contract And Gold ATMs - 30th Sept 14
Germany Fights on Two Fronts to Preserve the Eurozone - 30th Sept 14
Turn the Tables on the Gold and Silver Market Manipulators - 30th Sept 14
U.S. 2014 Election Business as Usual - 30th Sept 14
Gold - Time to Buy the Dip? - 30th Sept 14
Urging Investors to Stay Liquid for the Coming Gold Stocks Boom - 30th Sept 14
The Japanese Deflation Myth and the Yen’s Slump - 29th Sept 14
Epic Investor Optimism that Can Be Reversed Only by a Huge Stocks Bear Market - 29th Sept 14
Russia’s Gokhran Buying Gold Bullion In 2014 and Will Buy Palladium In 2015 - 29th Sept 14
The End of Monetary Policy - 29th Sept 14
Here's What Rising Interest Rates Really Do to Your Shares - 29th Sept 14
Is a Credible Stock Market Top Forming? - 29th Sept 14
Silver Price At or Very Close to an Important Low - 29th Sept 14
Gold Price Very Close to an Important Low - 29th Sept 14
Nihilism And The Unknown Future - 29th Sept 14
Stock Market S&P, NAS Change In Trend? None Apparent, But A Caveat - 29th Sept 14
UK Saved From I.S. Threat But Scottish Independence Nightmare is Not Over! - 29th Sept 14
U.S. Aggression - Will Russia and China Hold Their Fire? - 28th Sept 14
Currency Wars and the Death of the Euro - Audio - 28th Sept 14
Obscure Maritime Law Practically “Guarantees” Profits for These Energy Companies - 28th Sept 14
Stock Market Primary IV Underway? - 27th Sept 14
Darwin And The Climate Apocalypse - 27th Sept 14
The Global Middle Class and Copper Consumption, A Stop Spike Event - 27th Sept 14
Can Money Save The Climate? - 27th Sept 14
Gold And Silver - PetroDollar On Its Deathbed? PMs About To Rally? No - 27th Sept 14
Debt and Inflation Consquences of American Fear - 27th Sept 14
U.S. and Global Confidence are in Divergence - So Are Stock Markets - 27th Sept 14
Are U.S. Cars About to Crash? - 27th Sept 14
Why the U.S. Created and Armed ISIS From Libya to Syria - 27th Sept 14
Stock Market vs the Developing Bear Market for Liberal Democracy? - 26th Sept 14
Stock Market Major Selloff Looms - 26th Sept 14
How My Charts Uncovered Two Big Stocks That Are Soaring Like Small Caps - 26th Sept 14
What Cycles Reveal About Stock Market Crash - 26th Sept 14
Gold Not A Safe Haven On Terrorism, Middle East Bombing, Russia ... Yet - 26th Sept 14
Valuing Gold and Turkey Farming - 26th Sept 14
Gold $1200 Underpinned by Physical Demand - 26th Sept 14
Inflate or Die! When Leverage Fails and Market Hope Turns to Fear - 26th Sept 14
Market Forecasts for Stocks, Gold, Silver, Commodities, Financials and Currencies - 26th Sept 14
Gold and Silver Bear Phase III Dead Ahead - 26th Sept 14
The Home Depot Breach Boils Our Blood – and It Should - 26th Sept 14
Why the Pundits are Wrong About Crude Oil Prices - 26th Sept 14
Where’s the Economic Growth? - 26th Sept 14
Stock Market Future Bull - 25th Sept 14
The Specter of Global Debt Default is Once Again Rearing its Head - 25th Sept 14
All Major Market Analysis and Forecasts Investor Open House has Started! - 25th Sept 14
Federal Reserve Policies Cause Booms and Busts - 25th Sept 14
Currency Wars Deepen - Russia, Kazakhstan Buy Very Large 30 Tons Of Gold In August - 25th Sept 14
Strong U.S. Dollar Pressures Gold - 25th Sept 14
10 Things That Affect Your Purchasing Power - 24th Sept 14
US Government - The World’s Largest Subprime Debtor - 24th Sept 14
Venezuela's Gold Appears To Be Still In Venezuela But For How Long? - 24th Sept 14
The Washington-Wall Street "Corruption Corridor" - 24th Sept 14
The Poison Eating at the Heart of Macroeconomics - 24th Sept 14
Gold And Silver Voodoo Analysis Price Forecasts - 24th Sept 14
Stock Market Decline Below Wave (iv) Low - 24th Sept 14
How Falling Oil Prices Could Trigger an "Unpredictable and Dangerous Mess" - 24th Sept 14
The Quick Slide From Hope to Despair As War Returns--If It Ever Went Away - 24th Sept 14
Hedge Funds Surpass 2007 Leverage; New Era of 'Permanent Investigations' Confirms Imminent Reversal - 23rd Sept 14
Home Healthcare Cuts Threaten 500,000 Jobs and Female-Owned Businesses - 23rd Sept 14
Silver, Gold, Debt and Taxes - 23rd Sept 14
A Post-Petrodollar Play for Triple-Digit Gains - 23rd Sept 14
Regime Uncertainty Weighs on U.S. Economic Growth - 23rd Sept 14
Bread, Circuses and Bombs - Decline of The American Empire - 23rd Sept 14
Has The Gold Price Drop Run Its Course? - 23rd Sept 14
Stocks Rally Following Janet Yellen's Conference and Scotland's Historic Referendum Result - 23rd Sept 14
Why Isn’t U.S. Housing Market A Bubble? - 23rd Sept 14
The Macro View and the Stock Market - 23rd Sept 14
Gold, the Fed and the Looming Stock Market Correction Q&A - 23rd Sept 14
Can Gold Act as a Safe Haven Again? - 23rd Sept 14
Tesco Super Market Giant Fast Disappearing Down a Financial Black Hole - 22nd Sept 14
Where China and Japan Are Investing Billions - 22nd Sept 14
Scotland YES 71% - Global Youth Intifada Moves On - 22nd Sept 14
U.S. Dollar: The Last Hurrah? - 22nd Sept 14
China Moves To Dominate Gold Market With Physical Exchange - 22nd Sept 14
One Giant Cluster Ponzi - 22nd Sept 14
The Millenial Cult Of Global Warming - 22nd Sept 14
Dubai Residential is NOT a Property Bubble But the Party’s Over - 22nd Sept 14
Stock Market Topping Process Update - 22nd Sept 14
Indian Stock Market BSE SENSEX The Encore Rally - 21st Sept 14
ISIS Fear-Mongering Ahead of Another US False Flag? - 21st Sept 14
Ecology Politics And Haeckel's Tree Of Meaning - 21st Sept 14
ASX200 Stock Market Index Set For New Highs - 21st Sept 14
Scottish Referendum Not Avoiding The Future - 21st Sept 14
Five Lessons Learned from the Scottish Referendum - 21st Sept 14
The Problem With UKIP And Other I I P's - 21st Sept 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

The Most Exciting Event in the History of Technical Analysis

Third World America: 'Fast-Tracking to Anarchy'

Politics / Social Issues Aug 26, 2010 - 03:20 AM GMT

By: Janet_Tavakoli

Politics

Best Financial Markets Analysis ArticleMy last post about Arianna Huffington's new book, Third World America: How Our Politicians are Abandoning the Middle Class and Betraying the American Dream talked about the Great Recession, the Great Bailout, and the Great Cover-Up of financial crimes.

Among the future consequences of not fixing our national problems will likely be an increase in social unrest and an increase in crime. A look at Chicago's problems may serve as a call to action for America's middle class. Chicago's city budget is in dire straits. That's also true of the state of Illinois, California, New York and other areas. In Chicago, the same mismanagement that deepened our fiscal crisis has caused a crisis in essential city services.


The police department provides just one example. Sunday's Chicago Tribune reported that in 31 days, there were 303 shot and 33 dead:

"Crime has been holding steady in Chicago in recent years. Through July, there have been 1,089 shootings in the city, a 2.4 percent decrease over last year."

According to the newspaper, it's a "typical" July. Yet there is nothing typical about it when you look beyond the numbers. The first problem is that the numbers are flat-out unacceptable in any year in any city in the U.S. It is inexplicable that citizens of Chicago have tolerated this situation in poorer neighborhoods for decades. The second problem is a new problem. Years of complacency by Chicago's middle and upper classes have brought the crisis to their doorstep.

In recent years, incompetent and ill-qualified people have been promoted to "leadership" positions. Hiring and exam giving has declined, and the police department is undermanned and demoralized. Even worse is the fragging officers take from politicians, unqualified people in police "administration," and from the local media.

Spiraling Out of Control: Open Season on Cops

The title of this post comes from "A City at War With Itself," a commentary written by Lt. John Andrews, a 25-year veteran of the Chicago Police Department:

Most horrific for Chicago is that in less than 60 days, Chicago has lost 3 of its police officers, killed by gunfire as victims of robberies. It seems no one is safe in our city anymore.

Chicago's homicide rate this year currently stands toe-to-toe with the total number of military forces killed in both Afghanistan and Iraq.

Thugs, gangs and renegade groups run the streets and neighborhoods, intimidating and victimizing the decent citizens of this city. They go mostly unchallenged and unchecked by a totally demoralized police force that is dangerously understaffed and still out-gunned on the streets.

Lt. Andrews describes in detail a police department demoralized by scandals and corruption. He names those who received promotions based on political pull rather than merit or suitability for responsibility. Moreover, police fear reprisals from political special interest groups when using necessary force:

When asked, most will freely tell you that they do not want to place themselves, their families and livelihoods at risk from a perceived Machiavellian police superintendent or other incompetent "bosses" that could lead them into legal trouble that would risk their liberty and freedom (jail).

Even during televised speeches at the recent funerals of police officers, public officials speak out of both sides of their mouths. On the one hand, they decry the apparent targeted shootings of police officers -- one of whom, Michael Bailey, was wearing his uniform after just coming off duty from a night of guarding the mayor's house -- and on the other hand, they say that of course, police must follow proper procedures and work within the law (and often pause for effect).

Of course, everyone agrees the police must follow proper procedures, but the subtext of the message delivered at an officer's funeral is repellant. These thinly-disguised campaign speeches suggest the police force needs to be careful not to bring these tragedies upon themselves. Perhaps they think police should round up suspects and put them in Monty Python's comfy chair.

If the goal is to help police officers follow proper procedures at all times, then politicians and the police superintendent have to staff the force with well-qualified recruits (this means creating a reasonable qualification exam), remove corrupt "leaders" by reversing ridiculous promotions, and promote qualified officers based on merit. The police force desperately needs manpower and both physical and leadership back-up. Officers confident that their authority is respected, their judgment is trusted, and their tools are equal to a dangerous and difficult job will produce better results than people who have been left hanging out to dry, while their colleagues are massacred.

Media Strafing

Local media has lost the plot. A couple of days ago, an off-duty police officer shot and killed an armed home invader who had kicked in his door. The officer reportedly lives on a block with five or six other police officers. The intruder allegedly has a history of wrongdoing and invaded a suburban home with another man. He posed as a cable worker and bound and gagged his victims. Yet, some news reports described the intruder as a "victim" and said the off-duty officer was not charged, as if charges should have even been an issue. According to comments posted at Second City Cop, WGN's televised news unwisely showed the police officer's home, identified his neighborhood, and zoomed in on his home address.

Mug Mile

Formerly "safe" and "upscale" neighborhoods have become the targets of "wildings." James Carlini, an editor for Wisconsin Technology News, gave an eyewitness account of his experience of Chicago's "land sharks" at the premier shopping district known as the Magnificent Mile, or Mag Mile:

Coming back to the John Hancock to pick up my car at around 9PM, I noticed several little bands of four to five juveniles walking around sizing up people as they walked down the streets. Luckily we were already in our car, but I could sense that these "gangsta wannabes" were up to no good.

There were some arrests made that night but very suspicious that there was no mention in the mainstream media. There have been incidences like this before but never a mention or a caution. Why? Afraid to report on the truth or were you told not to report on the truth?

One of Carlini's readers noted that Mayor Richard Daley seems to live in a bubble:

I think [Mayor Daley] should go out in the evening without his hit squad protecting him with the firearms he professes to hate so much. That would be six more highly-paid police officers who could patrol the downtown streets that you and I walk down -- unarmed.

Buy Back America

If nothing else good comes out of our crisis, perhaps it will serve as a wake-up call for the entire nation. It's time to put our shoulders to the wheel to solve our problems.

Doing nothing is not an option for America. Much of poor America, especially in our major cities, has been Third World America for decades. Soon the urban middle classes and even upper classes will become better acquainted with that world.

Washington's political corruption and mismanagement has the same roots as Chicago's. As Arianna points out, on a national level, we need "the mother of all reforms:"

"That is why the first step toward stopping our relentless transformation into Third World America has to be breaking the choke hold that special interest money has on our politicians." (Third World America, 172)

On a local level, Chicago will have to fix its own problems by breaking the choke hold of special interest groups. On a national level, it will take a Constitutional amendment requiring full public financing for political campaigns (for starters). Our politicians have shown us how willing they are to be owned by special interest groups that will buy votes, buy a campaign, or just buy them off. As Arianna explains: "If someone's going to own the politicians, it might as well be the American people."

Third World America will be published September 7 and is available here.

By Janet Tavakoli

web site: www.tavakolistructuredfinance.com

Janet Tavakoli is the president of Tavakoli Structured Finance, a Chicago-based firm that provides consulting to financial institutions and institutional investors. Ms. Tavakoli has more than 20 years of experience in senior investment banking positions, trading, structuring and marketing structured financial products. She is a former adjunct associate professor of derivatives at the University of Chicago's Graduate School of Business. Author of: Credit Derivatives & Synthetic Structures (1998, 2001), Collateralized Debt Obligations & Structured Finance (2003), Structured Finance & Collateralized Debt Obligations (John Wiley & Sons, September 2008). Tavakoli’s book on the causes of the global financial meltdown and how to fix it is: Dear Mr. Buffett: What an Investor Learns 1,269 Miles from Wall Street (Wiley, 2009).

© 2010 Copyright Janet Tavakoli- All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2014 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Rick
26 Aug 10, 12:05
The American Dream: Indentured Servants

There has been no such thing as the "American Dream". That's purely a fantasy wrapped up in any Horatio Alger tale. The sad reality is that only a very minute microcasm of the population has ever found any degree of success; the vast majority has unfortunately been banished to wilt on the vine.

On a second note, most of the Washington politicians have degenerated into the de facto prostitutes of special interests for several decades. All of this political cronyism has culminated to the point where we have essentially the wealthy and their indentured servants.


sc
26 Aug 10, 13:54
Anarchy

The french had something similar ,but then they called it aristocracy. Then they had a revolution ,perhaps the US should try it.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Free Report - Financial Markets 2014