From the daily archives: Monday, November 24, 2008

Chris Hedges:

There are now 36.2 million Americans who cope daily with hunger, up by more than 3 million since 2000, according to the Food Research and Action Center in Washington, D.C. The number of people in the worst-off category—the hungriest—rose by 40 percent since 2000, to nearly 12 million people.

“We are seeing people we have not seen for a long time,” said the Rev. Jarret Kerbel, director of the Crisis Ministry’s food pantry, which supplies food to 1,400 households in Trenton a month. “We are seeing people who haven’t crossed that threshold for five, six or seven years coming back. We are seeing people whose unemployment has run out and they are struggling in that gap while they reapply and, of course, we are seeing the usual unemployed. This will be the first real test of [Bill] Clinton’s so-called welfare reform.”

The Crisis Ministry, like many hard-pressed charities, is over budget and food stocks are precariously low. Donations are on the decline. There are days when soup kitchens in Trenton are shut down because they have no food.

“We collected 170 bags of groceries from a church in Princeton and it was gone in two days,” Kerbel said. “We collected 288 bags from a Jewish center in Princeton and it was gone in three days. What you see on the shelves is pretty much what we have.”

The largess of Congress to Wall Street bankers and investors does not extend to the growing ranks of the poor. The U.S. Department of Agriculture’s Emergency Food Assistance Program donated $240 million in surplus food in 2003 to food banks and other programs. Those donations fell last year to $59 million.

States, facing dramatic budget shortfalls, are slashing social assistance programs, including Medicaid, social services and education. New Jersey’s shortfall has tripled to $1.2 billion and could soar to $5 billion for the next fiscal year. Tax revenue has fallen to $211 million less than projected. States are imposing hiring freezes, canceling raises and cutting back on services big and small, from salting and plowing streets in winter to heating assistance programs. Unemployment insurance funds, especially with the proposed extension of benefits, are running out of money. Governors such as Arnold Schwarzenegger in California and David A. Paterson in New York have called special legislative sessions to deal with the crisis.

If Barack Obama continues to turn to the elites who created the mess, if he does not radically redirect the nation’s resources to assist the working class and the poor, we will become a third-world country. We will waste gargantuan amounts of money we cannot afford on our military, our national security state and bloated corporations while we damn the middle and working class to the whims, idiocy and greed of an entrenched, corporate oligarchy. Obama’s appointments of Timothy Geithner as treasury secretary and Lawrence Summers as director of the National Economic Council are ominous signals that these elites remain entrenched.

read the rest: Truthdig – Starving For Change.

 

Kiss your future goodbye.  The biggest con in history goes for the gold:

Nov. 24 (Bloomberg) — The U.S. government is prepared to lend more than $7.4 trillion on behalf of American taxpayers, or half the value of everything produced in the nation last year, to rescue the financial system since the credit markets seized up 15 months ago.

The unprecedented pledge of funds includes $2.8 trillion already tapped by financial institutions in the biggest response to an economic emergency since the New Deal of the 1930s, according to data compiled by Bloomberg. The commitment dwarfs the only plan approved by lawmakers, the Treasury Department’s $700 billion Troubled Asset Relief Program. Federal Reserve lending last week was 1,900 times the weekly average for the three years before the crisis.

When Congress approved the TARP on Oct. 3, Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson acknowledged the need for transparency and oversight. Now, as regulators commit far more money while refusing to disclose loan recipients or reveal the collateral they are taking in return, some Congress members are calling for the Fed to be reined in.

[snip]

The money that’s been pledged is equivalent to $24,000 for every man, woman and child in the country. It’s nine times what the U.S. has spent so far on wars in Iraq and Afghanistan, according to Congressional Budget Office figures. It could pay off more than half the country’s mortgages.

Bloomberg.com: Fed Pledges Top $7.4 Trillion to Ease Frozen Credits.