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By Rachel Goldfarb, originally published on Next New Deal

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Nobel Economist Joseph Stiglitz Hails New BRICS Bank Challenging U.S.-Dominated World Bank & IMF (Democracy Now)

Roosevelt Institute Chief Economist Joseph Stiglitz says this bank will support the developing world's needs, and reflects fundamental shifts in global economic power.

Port Trucking Industry Rips Off Drivers, Responsible Employers, and Taxpayers (The Hill)

Roosevelt Institute Senior Fellow Richard Kirsch looks at the port truck drivers' strike in California as evidence of the need for stronger policy on independent contractors.

Help a City, Write Its Budget (Bloomberg View)

Roosevelt Institute Fellow Susan Crawford endorses participatory budgeting as one of the best ways to build strong civic engagement, and says technology can help.

The Economy’s Big Mystery: Why Workers are Disappearing From the Job Market (WaPo)

Zachary Goldfarb looks at two theories from the White House Council of Economic Advisors that attempt to explain the drop in labor force participation since the recession began.

Stop the Tax Inversions of Free-Riding Corporations (AJAM)

By failing to pass laws that prevent companies from reincorporating aboard to avoid taxes, David Cay Johnston says Congress is supporting their shirking of responsibility.

What Happens When Detroit Shuts Off the Water of 100,000 People (The Atlantic)

Rose Hackman writes that Detroit residents have been forced to pay bills beyond their means or turn to illegal means to access water. The UN has declared this a human rights violation.

States with Better 'Business Climates' Also Have Higher Inequality (CityLab)

A new study finds an unfortunate connection between policies that encourage business and economic growth and rising inequality, writes Richard Florida.

Originally posted to Daily Kos Economics on Fri Jul 18, 2014 at 05:18 AM PDT.

Also republished by Daily Kos.

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Comment Preferences

  •  BRICS - find the money (2+ / 0-)
    Recommended by:
    Sky Net, Odysseus

    The hoary old tale of an "alternative to the US Dollar" or "US dominated World Bank" is wearing a bit thin.

    <strong>Brazil is in the middle of an economic and political crisis following the debacle of the World Cup both in terms of completing infrastructure projects designed for them and the outcome for the national team. Money will have to be pumped into Rio to complete the Olympics venues in time.

    Russia is going through its own economic crisis brought about by the invasion and illegal annexation of Crimea. Russia is essentially a petro-economy with increasingly fewer customers in the shorter term. Longer term exports to places like China mean huge investments in infrastructure and pipelines going through sometimes hostile countries or regions - the extreme west of China for example is seeing a genocidal policy by the Han against the Uyghurs in much the same way they are seeking to eliminate the Tibetan culture and flooding the area with immigrants from the East.

    India has enormous potential and enormous problems. Not the least of which is the fortune that it is planning to spend on upgrading its rail system, including the introduction of high speed trains.

    China is having to spend huge amounts on tackling its air pollution. China is essentially bailing out the US economy by maintaining the exchange rate of the Yuan against the US dollar - some independence.  

    South Africa is probably the best placed in terms of both its natural resources and the emerging and established black middle class. Refugees from Zimbabwe are a continuing drain on both its economy and the jobs market - illegally working Zimbabweans are believed to be undercutting the pay and jobs of locals however that could be an urban legend similar to the accusations against Mexicans in the USA. Successive governments have failed in the promise to better the living conditions of the rural and urban poor. Pressure is on to start the land re-distribution hoped for by them.

    In short, few if any of the BRICS countries are in a position to provide the finance in order to bankroll the BRICS bank.

    "Come to Sochi, visit the gay clubs and play with the bears" - NOT a Russian advertising slogan.

    by Lib Dem FoP on Fri Jul 18, 2014 at 06:19:25 AM PDT

    •  BRICS (1+ / 0-)
      Recommended by:

      China alone has the money to finance the banks.  But I don't see why anyone would support it.  The funds are just going to go to countries that want to avoid the World Bank's requirements for transparency and environmental protection. The BRICS couldn't care less.  I doubt they'll find many takers, however.

      Cynicism is what passes for insight among the mediocre.

      by Sky Net on Fri Jul 18, 2014 at 06:25:35 AM PDT

      [ Parent ]

      •  Our Social Security Trust Fund is owed more than (0+ / 0-)

        ever this nation owed China. So who owes this money to the Trust Fund?

        Congress passing laws for tax evading corporations and the wealthy humans in America that used them because Richard Milhouse Nixon when President in 1969 put Trust Fund monies into the General Revenue sharing funds which financed America for decades. Stull might.

        The US needs Mexico's snake on its flag because that is what gets its way here. The snakes!

        We must do our best when times are at their worst! If Global Warming isn't true then let's party in the Parking Garages!

        by leepearson on Fri Jul 18, 2014 at 07:59:22 PM PDT

        [ Parent ]

      •  Huh? (4+ / 0-)
        Recommended by:
        koNko, Jesse Douglas, akze29, BYw

        The World Bank and IMF require transparency and environmental protection?  LMAO thanks for the laugh.  

        The BRICS bank is about these countries not getting screwed by the WB and IMF and losing control of their public infrastructure to our multinational corporations when they can't meet the ridiculous terms the WB and IMF force upon them.

        •  Yes, they do (0+ / 0-)

          Partly as a result of advocates over the years, the World Bank has certain safeguards in place, including for the environment.  It would be interesting if the BRICS Bank has anything similar.

          So what are the other onerous conditions that the World Bank puts on development projects?

          Cynicism is what passes for insight among the mediocre.

          by Sky Net on Sat Jul 19, 2014 at 12:39:19 AM PDT

          [ Parent ]

    •  Part of the interview with Stiglitz at the link (3+ / 0-)
      Recommended by:
      FarWestGirl, Odysseus, Sky Net

      was annoying:

      JOSEPH STIGLITZ: At the same time, Brazil has—the BNDES is a huge development bank, bigger than the World Bank. People don’t realize this, but Brazil has actually shown how a single country can create a very effective development bank. So, there’s a learning going on. And this notion of how you create an effective development bank, that actually promotes real development without all the conditionality and all the trappings around the old institutions, is going to be an important part of the contribution that Brazil is going to make.

      JUAN GONZÁLEZ: And how has that bank functioned differently, let’s say, than other development banks in the North?

      JOSEPH STIGLITZ: Well, we don’t know yet, because it’s just getting started.

      That's funny. "Brazil has actually shown" . . . nothing yet.
      •  BNDES Stuck at first hurdle (3+ / 0-)
        Recommended by:
        FarWestGirl, Mark Lippman, Odysseus
        Insufficient credit for Brazilian private companies will prevent the country's development bank BNDES from moderating loan disbursements this year as quickly as it would like, the bank's chief Luciano Coutinho told Reuters.

        The BNDES, which is the main source of long-term lending to Brazilian companies, has pledged to moderate the amount of subsidized loans it gives companies, hoping that private banks would increase their participation in the credit market.

        However, Coutinho said that overly cautious private-sector lenders have added pressure on the BNDES to keep providing credit to Brazilian companies, which he says are struggling to even get working capital.

        Also note that BNDES is not the "BRICS bank" and cannot even arrange enough credit for Brazilian companies. This week it signed a memorandum of agreement with the China Development Bank for the CDB to loan BNDES money.

        More to the point, there is no "BRICS Bank". What is emerging are a series of bilateral agreements mostly with China to mop up the dollar reserves that country has accumulated through its manipulation of its exchange rates.  In short, they are going to be in thrall to China and its leaders, exactly the scenario now playing out in much of Africa.

        "Come to Sochi, visit the gay clubs and play with the bears" - NOT a Russian advertising slogan.

        by Lib Dem FoP on Fri Jul 18, 2014 at 08:04:11 AM PDT

        [ Parent ]

      •  Go BRICS. End Dollar hegemony (0+ / 0-)

        For an idea that does not at first seem insane, there is no hope.
                    -- Albert Einstein:  far left, emo-prog, socialist.

        by Pluto on Fri Jul 18, 2014 at 07:40:11 PM PDT

        [ Parent ]

    •  It was funded on July 16th. (0+ / 0-)

      For an idea that does not at first seem insane, there is no hope.
                  -- Albert Einstein:  far left, emo-prog, socialist.

      by Pluto on Fri Jul 18, 2014 at 07:52:50 PM PDT

      [ Parent ]

      •  Never again will nations be forced to use Dollars (2+ / 0-)
        Recommended by:
        Unduna, sdkeller

        …to buy oil or hold US Treasuries.

        The USA and EU are in a epic brawl for resources and to save the US dollar from being marginalized to keep the current elite in power.  What we are seeing is the multi-polar world crashing on the 20th century winners.  

        This is what the conflicts in Ukraine, Iraq, Iran, and others including Gaza are really about.

        On July 16th, the BRICS countries made pacts and created a new world bank excluding USA and EU.  

        This is NOT titillating news and does not make it to prime time but is the biggest news event in the last decade, maybe even the last 50 years, because it is earth shattering for the financial systems and will have effects in every society worldwide

        For an idea that does not at first seem insane, there is no hope.
                    -- Albert Einstein:  far left, emo-prog, socialist.

        by Pluto on Fri Jul 18, 2014 at 07:57:04 PM PDT

        [ Parent ]

  •  Microsoft Will Slash 18,000 Jobs, 7/14/14 (2+ / 0-)
    Recommended by:
    ratcityreprobate, Pluto

    On Thursday, a week after former Microsoft CEO Bill Gates argued for amnesty and for an unlimited number of high-tech guest-worker visas, Microsoft announced it would slash 18,000 jobs.

    However, numerous nonpartisan scholars and studies have determined that there is a surplus – not a shortage – of American high-tech workers. Moreover, after a recent Census report found that "74% of those with a bachelor's degree in these subjects don't work in STEM (science, technology, engineering, math) jobs," the mainstream media may finally be catching on and taking away the high-tech industry's "free pass." CBS News, for instance, concluded that the Census data suggest the high-tech industry's contention that there is a shortage of American high-tech "is largely a myth."

    Ron Hira, a public policy professor at the Rochester Institute of Technology, has "said there are 50% more graduates than job openings in the STEM fields." Microsoft's announcement hammers home his point that the IT sector has often been "an area of social mobility," and removing the caps on high-tech guest-worker visas would take jobs away from American workers and make it more difficult to climb the economic ladder.

    "You've got people who come from working-class backgrounds who go into these sectors," Hira said on a conference call of scholars earlier this year that Sen. Jeff Sessions's (R-AL) office organized. "It's a way of getting into the middle class and the professional class, and that's being cut off."

    You Don't Happen To Make It. You Make It Happen !

    by jeffrey789 on Fri Jul 18, 2014 at 12:19:38 PM PDT

  •  Econimics, the non-science used for leading sheep (0+ / 0-)

    to slaughter!

    Print the money to let Americans live long and happy lives.

    $1600 a month to be applied for the serious lifestyle matters. $6 trillion annually circulates. We are off gold and have known it along with the rest of the world for over 40 years.

    Inflation is the elites tool like austerity to keep the downtrodden down and suffering.

    God never said there would always be the poor but rather a guy that got it in the Bible. God for sure didn't make money and say there will be the elite to oppress others.

    We must do our best when times are at their worst! If Global Warming isn't true then let's party in the Parking Garages!

    by leepearson on Fri Jul 18, 2014 at 07:48:12 PM PDT

  •  I wonder if Samantha Power Has anything to say ... (0+ / 0-)

    I wonder if Samantha Power

    Has anything to say about human rights in Detroit?

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